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Transcript of finance & business news 18 May 2017 2017. 5. 18.¢  Intellasia 18 May 2017 3 / 66...

  • 18 May 2017

    finance & business news

    FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Reference exchange rate goes down 2 VND 1 New regulations influencing banking operations in 2017 2 Banking system's liquidity positive after months 3 SBV to reconsider the ratio of short-term capital for medium

    and long-term loans 3 Bad debt settlement remains slow 4 How much do banks spend on information security? 5 VN proposes Apec initiative to facilitate e-commerce 6 Conference helps exporters improve e-commerce 6 Banks recruited over 1,000 new employees in Q1 7 AIA and HSBC form new bancassurance partnership 7 Vietinbank becomes settlement unit in derivatives market 8 Central Bank approves BIDV bond issue of $900 million 9 Apec 2017: Long-term infrastructure investment discussed 9 Apec ministers to seek clarity on trade in Hanoi 9 SOM 2 discusses Apec priorities 10 Vietnam's inflation cooling gradually HSBC 11 State budget faces deficit as fuel import tax cut down 11 Vietnam's fuel association calls for tax hikes as zero import

    duty nears 12 EVFTA to boost IP development: expert 12 Vietnam proposes four initiatives to boost Apec financial

    cooperation 14 Vietnam among Asia's growth leaders 14 FDI's link to growth disparity 15 Rice exports expected to face tough competition 17 Vietnam warned about cement oversupply, narrower

    export markets 17 Are private businesses in Vietnam private ones? 18 Economists warn of Vietnam's growing trade deficit

    towards Korea 20 China emerges as Vietnam's largest fragrant rice importer 21 Japan becomes largest importer of VN's shrimps 21 Deputy PM puts emphasis on expressway project 22 HCM City still prone to inundation as many flood control

    projects undone 23 Homes unpossessable for foreign owners made public 24 Deputy PM puts emphasis on expressway project 24 Vietnam's first smart city communications platform launched 25 $18.15 million disbursed for Cat Linh Ha Dong railway project 26 Thai Nguyen spends 840 billion VND on agricultural restructuring 26 Government instruction bans overlapping inspections at firms 27 Expert sees no need for SME support law 28 Businesses appreciate government Resolution 35 on

    developing enterprises 28 Barriers to business hard to dismantle 29 How to develop private equity in Vietnam 30 PM conference with businesses seeks development measures 31 Government to focus on reducing costs of doing business 32 Vietnam business leaders losing battle to become competitive 34

    Tax, customs policies remain roadblocks to enterprises 35 Change is coming 35 No escape 38 'Secret payments' and red tape holding back Vietnamese

    companies 41 Vietnam cleaning up its business environment survey 42 Vietnam's convenience store market not easy to exploit 42 Region eyes global cashew cooperation 43 Central coastal provinces eye sustainable shrimp farming 44 M&A in real estate hikes early in year 45 Vietnamese, German businesses seek partnerships through

    digitalisation 46 Vietnamese, Indonesian localities boost partnership 46 Oman wants to boost investment in Hanoi 47 Major travel firms forecast strong summer tour bookings 47 Eyes on the smartphone prize 48

    BIZ NEWS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Business Briefs May 18, 2017 50 Market flat but turnover soars 50 Stocks trade lower on profit-taking, oil prices 51 Plastic company leaders to sell 27pct ownership 52 TLG to pay off residue dividend 52 US firms encouraged to join smart city project 52 HCM City backs Tan Son Nhat airport expansion 52 PV Gas licensed to build $1.27 billion gas pipeline 53 Zalora, Robins-Fashion and Beauty merge 53 Local firm to make unbaked construction materials from

    ashes, cinders 54 Mobiistar unveils 2 'selfie' smart phones 55 Chinese low-cost airline opens air route to HCM City 55 Vinamilk imports more than 2,000 cows from the US 55 Misumi automates production 56 Peugeot Scooters aims to diversify Vietnam's premium

    scooter segment 57 La Casta: Western charm in the Western gate of Hanoi 58 A New Wing Takes Flight in Hoi An's Old Town 58 Central Field to open in Q3 59 Can Tho's new air route subsidy plan stirs controversy 59 City to help Laos call for investment 61 Da Nang to investigate real estate violations 61 Over 200 firms to attend screen and digital printing tech expo 61 Vietnam International Motor Show to introduce new car models 62 Major auto brands confirm presence at 3rd Vietnam

    International Motorshow 62 Event connects businesses exporting products to China 63 Construction and building materials expo opens in Hanoi 63 Vietnam finishes third in Southeast Asia race for tourist dollars 64 Young Vietnamese leaders attending Australia-Vietnam Young

    Leadership Dialogue 64 WannaCry virus attacks 1,900 computers in VN 65 Shim to serve second term as Samsung Vietnam CEO 66

    Intellasia Tel: +844 2213 2244FINANCE Reference exchange rate goes down 2 VND

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    Vietnam finance & business 18 May 2017



    The State Bank of Vietnam set the reference VND/USD exchange rate at 22,368 VND/ USD on May 18, down 2 VND from the day ago. With the current +/- 3 percent VND/USD trading band, the ceiling exchange rate is 23,037 VND per USD and the floor rate is 21,698 VND per USD. Major commercial banks made slight changes to their rates. Vietcombank listed its buying rate at 22,650 VND/USD and its selling rate at 22,720 VND/USD, up 5 VND. Meanwhile, BIDV cut its buying and selling rates by 5 VND to 22,645 VND and 22,715 VND, per USD. Techcombank retained its buying and selling rates at 22,630 VND 22,720 VND/USD.

    New regulations influencing banking operations in 2017


    Unlike conventional businesses, each business of banks is based on a series of regula- tory documents, processes and regulations. Internal banking regulations are closely related to legal documents. When the law changes, the internal processes of banks must also change. Basic changes from the Civil Code 2015 The Civil Code 2015, which came into effect on January 1st 2017, has immediately af- fected the banking system. Let's looking at a case where a bank lends capital to a business to invest in a system of machinery and equipment. As soon as the customer buys the machinery system, the bank and customer have signed contract for mortgage and registration of secured transaction. If in the past, the privilege of handling secured assets certainly belonged to the bank, the bank now cannot be subjective because there is a new provision in the Civil Code 2015 that changes this issue. That is a security measure called "title retention on assets", which appears next to the familiar security measures such as mortgage, pledge, guar- antee, and guarantee on collateral deposit, etc. The retention of tile on assets allows the seller to retain the ownership of the assets un- til the payment is complete. Assuming that the parties use "title retention on assets" and register the secured transaction in advance, the mortgage contract of the bank will rank second in order of preference. Not only has the "retention of title", "lien on assets security has also been added as a measure to ensure the completion of the obligations in civil transactions. Thus, these changes require the banking system to undertake studies to update and use the new securities in loan security operation or detect risks and make management solutions. The Civil Code 2015 also has a number of new points, such as the more open authori- sation mechanism. Previously, the authorisation could only be done once, but now it can be reauthorised several times with statutory conditions. The regulations on legal entities such as individuals, legal persons, and households have been changed. Notably, the new regulations on the lending contract, interest rate (ceiling interest rate of the contract), overdue interest rate and penalty rate are all new- ly regulated in the Civil Code. These regulations will have direct impact on the system of banking operations such as account transaction, capital mobilisation, lending, and guarantee, etc. New guidelines of the State Bank of Vietnam (SBV) Not only being affected by the new regulations of the Civil Code, banking business is also subject to a series of new professional regulatory documents. SBV has issued nu- merous circulars regulating the banking operations. Some circulars will have immedi- ate impact on the banking sector such as Circular 39/2016/TT-NHNN. From March 15th 2016 onwards, all lending activities of banks, which used to be im- plemented on the basis of the Lending Regulation No.1627 over the past 16 years, must be changed based on the provisions of Circular 39/2016/TT-NHNN. Some circulars will take effect later in the middle of the year such as Circular 35 on in- formation security for internet banking services (effective from July 1st 2017) and Cir- cular 41/2016/TT-NHNN, which will effect from January 1st 2020. However, if studied thoroughly, banks should be aware of the deadline of Circular 41, which turns out to

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    Vietnam finance & business 18 May 2017

    be not as long as it is seen. The ratios and capital safety limits for banks under the guid- ance in the Circular need to be urgently studied and prepared. Banks which lack of in- itiative in coping and implem