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Transcript of finance & business news 12 December - HKBAV ... Intellasia 12 December 2017 2 / 44 FINANCE...

  • 12 December

    finance & business news

    FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Reference exchange rate down 5 dong 1 VND weathers Fed rate hike 2 Exchange rate to reach 23,000 VND/USD in 2019 2 A large amount of money has been pumped back to the

    market by SBV 3 People still choose consumer loans despite 'huge' lending rates 3 Banks' bad debts and the two-colour picture 4 ANZ upbeat about Vietnam's prospects 6 Vietcombank earns 342b dong from the sale of capital at

    Saigonbank and CFC 6 VietinBank wins Vietnam Outstanding E-Banking Award 2017 7 Vietnamese bankers to stand trial in connection with $400m

    fraud case 7 Experts: VN economy promising next year 8 World Bank forecasts Vietnam's GDP growth of 6.7pct 9 WB reaffirms continued support for Vietnam 9 City sets aside VND40 trillion for 2018 public investment 10 Vietnam: 90pct of farm products exported in raw form 11 Chinese veggies cause public concern 11 Food management a top concern 12 Nearly 245,000 autos sold in Jan-Nov 12 Vietnam's oil exploitation exceeds set plan 13 Doubts persist over E5 fuel sales 13 Vietnam fuel distributors to shift to ethanol blend this week 14 eTax services started in two northern provinces 15 Cyber law balances security, information freedom 15 AmCham objects to requirements on data centers in Vietnam 17 Busting out newest tech to aid Vietnam's turn towards the sun 17 Why US investors are hesitant to invest in Vietnam? 19 Vietnamese electronics industry in desperate need 20 Government regulation offers golden opportunity for local auto

    production 21 Big data the future of supply chain management and logistics 22 33pct of farming cooperatives efficiently operate: Ministry 23 More Chinese investors relocate manufacturing to Vietnam 23

    BIZ NEWS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Business Briefs 12 December, 2017 24 Shares opens week in negative zone 24 All indexes lose ground 25 Experts: Selling pressure seen easing 25

    Vietnam plans to raise over $570 million through IPOs in energy firms 26

    Thai Beverage bids on 25 per cent of Sabeco 26 Can Tho sees tourist arrivals up but few stay 27 iPhone X sells out in HCM City 27 Vietnamese goods enjoy promotion gains 28 Vietnamese people spend nearly 13tr dong eating out

    every month 29 Recruitment in 2018: manufacturing, wholesale and

    construction to record lightening growth speed 30 Bulgarian wines to be presented in Hanoi 30 Hanoi metro trial run delayed again 31 Hanoi police close down railway cafes 31 Foreign tourists spending in Vietnam remains low 31 Mountain market a hub for ethnic traders 32 Illegal sand mining damaging HN dyke 32 Nat'l project seeks to improve coffee quality, develop

    premium brand 33 Thaco opens region's largest bus factory in central Vietnam 33 FPT IS becomes IBM's platinum partner 34 USG Boral increases investment in Vietnam 35 Lazada returns with wilder Online Revolution 35 Shenzhou completes textile and apparel production chain

    in Vietnam 36 JC&C reinforces presence in Vietnam 37 GE to drive wave of solar investment in Vietnam 37 Vast opportunities for financial metasearch platform 39 Vietnam Airlines' member ranks second in global network 40 Vietnam Airlines offers promotional tickets for New Year 41 Vietjet honoured as most popular airline 41 Operator of Thu Duc Agro Market frets over waste 41 Sakura Vietnam introduces new brand identity 42 PetroVietnam surpasses 11-month targets 42 InterContinental Danang wins 'World's Leading Luxury

    Resort' award 43 Forum connects Vietnamese startups in US and VN 43 Goods supply-demand matching conference attracts 2,800

    companies 44 Expo-Russia Vietnam to enhance bilateral economic links 44

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    FINANCE Reference exchange rate down 5 dong

    12/DEC/2017 INTELLASIA| VIET BAO

    The State Bank of Vietnam (SBV) set the daily reference dong/US dollar exchange rate for December 12 at 22,450 dong/US dollar, down five dong from the previous day. With the current trading band of +/- 3 percent, the ceiling rate applied to commercial banks during the day is 23,123 dong/US dollar and the floor rate is 21,777 dong/US dollar. The opening hour rates at major commercial banks were relatively stable. Vietcombank kept the exchange rate at the same level compared to the previous day at 22,675 dong/US dollar and 22,745 dong/US dollar.

    FINANCE

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    Vietnam finance & business 12 December

    Intellasia 12 December 2017 2 / 44

    At BIDV, the greenback price was listed at 22,680-22,750 dong/US dollar (buying-sell- ing), unchanged from yesterday. The rate decreased five dong at Vietinbank, trading at 22,675 22,745 dong/US dollar.

    VND weathers Fed rate hike

    12/DEC/2017 INTELLASIA| VIR

    The local currency has managed to stay healthy against the greenback so far, while overseas remittances are forecast to be on par with last year. The secret behind the dong's strength and the dynamics influencing remittance flows for the year are ex- plained by Barry Weisblatt, head of Research at Viet Capital Securities JSC, to VIR's Trang Nguyen. What is your view on the dong's performance against the USD throughout 2017? Do you think the central bank has done well in keeping the dong stable so far this year? Yes, the State Bank of Vietnam (SBV) has done well in keeping the dong stable against the USD this year, resulting in a 0.19 per cent appreciation in the interbank FX rate year to date (YTD). The policy of allowing daily fluctuations in the central rate, which was first introduced at the beginning of 2016, has proven effective in removing speculative pressures. At the same time, zero USD interest rates have helped to lower demand for the greenback. However, SBV has also received help from external agents. The dollar has been globally weak, with the Dollar Index Spot (DXY) declining 9 per cent YTD, indicating that in fact, the dong should be even stronger. There have also been strong foreign currency flows coming to Vietnam. Robust ex- ports have resulted in a trade surplus of $2.8 billion through November. Disbursed for- eign direct investment (FDI) is up 11.9 per cent year-on-year (YoY) at $16 billion and there have been strong foreign inflows into the bond market (net inflows of around $750 million) and the stock market (net inflows of more than $1.1 billion), as well as from state divestment. These have helped SBV to build up foreign reserves to $46 bil- lion. Should we expect any further forex fluctuations towards the end of the year? Are there other pressures on the dong that we need to watch out for in December? Thanks to the above reasons, the dong has been very stable during November, which did not happen in the past few years. The recent significant inflows from FDI and the state divestment process, as well as remittance inflows, should continue to support the value of the dong in the last month of the year, despite of a likely Fed hike in Decem- ber. In fact, previous Fed hikes this year had really no impact on the dong or for that matter other currencies. We do not expect anything different this month. However, as usual, the strong demand for the USD during the end of the year would put some pressure on the dong. In addition, exports might rise at a slower speed, while imports should increase at a higher pace due to rising demand before the New Year and Lunar New Year (we expect a small deficit in December). But the impacts on the dong should be very small compared to the previous years. It is possible that the dong might go flat by the end of this year against the end of last year. What is your opinion on the apparent slowdown of remittance flows in the first 11 months of the year? What do you forecast to be the total Vietnam receives this year? Remittances are very difficult to forecast as people send money for a variety of differ- ent reasons. I do think there has been a fundamental shift over recent years from over- seas Vietnamese sending home money to support their relatives to remittances in search of attractive investments. Remittances to Vietnam had a strong drop in 2016 to $9 billion from the $13.2 billion in 2015, which ended the steady growth trend lasting since 2010. It could be due to the zero-interest rate policy on USD deposits which has been applied by SBV in late 2015, or the Fed hikes in 2016. According to SBV, the remittances reaching HCM City in the first 10 months hit $3.9 billion and is estimated to reach $5.2 billion (+6 per cent YoY) in 2017. HCM City usu- ally accounts for around 60 per cent of total remittances in Vietnam. We estimate total remittances in the 2017 financial year to stand around $9 billion, relatively stable com- pared to 2016. While the zero-interest rate policy on USD deposits and Fed hikes could have some impacts on remittance inflows in 2017, rising inflows to production busi- nesses and the real estate sector should help remittance flows remain stable and healthy in the coming year. Currently, 72 per cent of remittances went to production activities, around 22 per cent to real estate, and only 6 per cent for personal spending. http://www.vir.com.vn/vnd-weathers-fed-rate-hike.html

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    Vietnam finance & business 12 December

    Exchange rate to reach 23,000 VND/USD in 2019

    11/DEC/2017 INTELLASIA| BIZLIV

    Report of ANZ Vietnam on the Vietnamese economy in 10 years showed that the na- tional foreign exchange (forex) reserves are at a r