finance business news 14 December - hkbav. material industry must go green: deputy PM 19 Dental...

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Transcript of finance business news 14 December - hkbav. material industry must go green: deputy PM 19 Dental...

  • 14 December

    finance & business news

    FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Reference exchange rate down 7 VND 1Maximum credit growth in 2017 forecasted at 18-19pct 1HCM City to issue bonds next Monday 2SBV seeking comments on amendment to gold management

    decree 2Industry 4.0 brings e-payment options to VN 3Customs signs agreement with banks for e-tax payment 4IFC launches RPT governance course for VN banks 5Digital banking grows to support new customers 5Revenue growth of insurance market in 2017 estimated at 22.1pct 7OCB loosens foreign room to 23.66pct and issues 19.5m

    bonus shares 7ANZ recommends customers to complete transactions

    before the transfer to Shinhan from December 15th-18th 8Vietnam among fastest growing e-commerce countries 8ADB lifts growth prospect of VN to 6.7pct 9Australia renews commitment to support Vietnam's economic

    reform 9China to become second largest importer of Vietnam shrimp 10Steel prices seen rising further 11HCM City concerned over sand and cement shortages 11PM hails business community for Vietnam's impressive growth 12Foreign investors suggest improvements to Vietnamese

    taxation policy 13Creativity key to growth promotion 13Government highlights new opportunities for investors 14More consistent foreign arbitration rules needed for investment 16Vietnam leads in salary increases in Asean 17Productivity key to escaping mid-income trap 17Vietnam listed among top six most-attractive retail markets 19Building material industry must go green: deputy PM 19Dental tourism rapidly grows in Vietnam 20What will foreign investors do with strong Vietnamese brands? 22Private investor allowed to operate airport 22

    Mekong Delta has much room for food processors 24Food industry attracting Japanese interest 24Japan's plastics giants partner with local firms 25Vietnam promotes tourism in India 26VN-Russia business relations boom 27

    BIZ NEWS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Business Briefs 14 December, 2017 27Shares fall on market volatility fears 28VN Index & HNX-Index lose ground 29Sacomreal to boost capital by 30 per cent 29Thai Bev: No commitment made to bid for Sabeco stake 30Carlsberg moves closer to Habeco deal in Vietnam 31ACV prepares for colossal divestment 31Vinaconex to divest from five subsidiaries by end of the year 32E-commerce websites have to be registered 32Sales of construction steel surged 58pct in Nov 33US oncology software launched in Vietnam 34Experts find downtown vehicle restriction scheme unconvincing 34Solutions to Cai Lay tollgate to be submitted at weekend 35Worker efficiency must make a leap 36Ministry to monitor M&A deal between MWG and TAG 38Rail giant makes move to logistics 38Which giants are dominating Vietnam telecommunication

    market? 40TCC Group launches MM Mega Market Thang Long 40Samsung and LG Lead Vietnamese Economy 41Loss-making ethanol plant may resume operation 42Vietnam Airlines looking for spares and spare services 43Former national rubber group officials prosecuted 43Vietnam Retail Forum reviews 10-year retail market growth 44Conference confers private investment in green growth 44Forum calls for improvement of business environment 45Japan shares experience in developing food industry 45Organic agricultural production forum to draw 400 delegates 46

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    NANCEReference exchange rate down 7 VND


    The State Bank of Vietnam set the daily reference VND/USD exchange rate at 22,443 VND/USD on December 14, down 7 VND from the rate on December 13.With the current trading band of +/- 3 percent, the ceiling rate applied to commercial banks during the day is 23,109 VND and the floor rate 21,770 VND/USD.The opening hour rates at major commercial banks stayed stable.BIDV kept both rates unchanged from the previous day at 22,680 VND/USD (buying) and 22,750 VND/USD (selling).Vietinbank also maintained the same rates as on December 13 at 22,675 VND (buying) and 22,745 VND/USD (selling).The rates listed by Eximbank stayed unchanged from the first day of the week (December 11) at 22,660 VND/USD (buying) and 22,750 VND/USD (selling).Meanwhile, Vietcombank raised both rates by 5 VND, buying the greenback at 22,680 VND/USD and selling at 22,750 VND/USD.


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    Vietnam finance & business 14 December

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    Maximum credit growth in 2017 forecasted at 18-19pct


    Credit of the banking system has been significantly accelerated in the past month, ac-cording to the report of the National Financial Supervisory Commission (NFSC). Spe-cifically, as of the end of November 2017, the total credit was estimated to increase 2.8 percent from October and 15.3 percent from the beginning of the year. This figure is a little bit lower than the growth rate of 15.6 percent in the same period of 2016.In terms of structure, changes continue to happen as the proportion of medium and long-term loans of the entire system tend to slightly decrease while short-term loans tend to increase. Specifically, medium and long-term credit accounts for 53.8 percent of the total credit (compared to 55.1 percent at the end of last year). Meanwhile, the proportion of short-term credit rose to 48.7 percent from 44.9 percent at the end of 2016.Bao Viet Securities Company (BVSC) said it is likely that commercial banks are reduc-ing short-term capital for medium and long term loans in line with the roadmap in the revised Circular 36/2014/TT-NHNN on safety ratio limit in the operation of credit or-ganisations. It is forecasted that this trend will continue in 2018 when the ratio of short-term capital for medium and long-term loans decreased to 40 percent only instead of 50 percent in 2017.With the 11-month credit growth of 15.3 percent as aforementioned, BVSC said it is likely that this year's maximum credit growth will be just 18-19 percent, meaning that the banking system will not use up the increased room (about 21-22 percent).This stems from many reasons. First, it is very likely that the capital absorption ability of current businesses is limited and the economy only requires credit to swell 15-18 percent/annum which is a moderate level without causing too much risk of potential bad debt. Second, some banks such as VIB, ACB, HDBank, MBB, etc. want to strength-en their lending but right in the first two quarters of the year, the "quota" had almost been used up.Third, banks having the largest capital scale in the system such as Vietcombank, BIDV, and Vietinbank are facing difficulties in capital, the Capital Adequacy Ratio (CAR) of these banks is also approaching nine percent. Therefore, if capital in the near future does not increase, the credit development of these banks will surely face difficulties and at least cannot grow strongly.With the aforementioned reasons, BVSC once again forecasts that the credit growth for the entire year 2017 is likely to reach the level equal to 2016.

    HCM City to issue bonds next Monday


    The HCM City government intends to issue VND2 trillion of municipal bonds next Monday to raise capital for its urgent and key infrastructure projects, the news website reports.In a document sent to the finance ministry, the municipal government says it will issue debt next Monday, and receive money from buyers on the following day.These bonds will have tenors of 10, 15, 20 and 30 years. Investors' needs and market conditions are taken into account to decide on the size of each type of debt.Upon the first debt issuance, extra bonds may be issued later to ensure sufficient cap-ital from bond sales, and help increase the liquidity of the secondary market.The municipal government urges the finance ministry to come up with a bond coupon range prior to the issuance date.The local government issued VND9 trillion of bonds between 2014 and 2016. The bond term of 15 years last year carried a coupon of 7.55 percent per annum.The city is in dire need of investment capital for a slew of big-ticket infrastructure projects such as Metro Line No. 1 linking Ben Thanh Market in District 1 and Suoi Tien Park in District 9. If slow disbursement continues, this project would be at risk of sus-pension or fall behind schedule. City-to-issue-bonds-next-Monday.html

    SBV seeking comments on amendment to gold management decree


    The State Bank of Vietnam (SBV) is collecting comments on a draft amendment to De-cree No. 24 from 2012 on gold trading management, with the proposed elimination of business conditions for producing gold jewellery and fine arts being the prominent feature.Along with the goal of continuing to manage the gold bar market, the amendment aims to simplify administrative procedures and reduce business conditions.

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    Vietnam finance & business 14 December

    Enterprises that manufacture gold jewellery and fine arts need only meet the establish-ment conditions in the law to be registered. Other rules on certificates of production and technical facilities will be eliminated.Some 5,800 enterprises hold certificates for gold jewellery and fine art production but problems exist in the operation of these types of enterprises, according to the SBV, with administrative procedures needing to be simplified.For gold bar trading activities, the SBV also suggests reducing regulations on proce-dures for adjus