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Transcript of finance & business news 30 June 2017 - HKBAV 2017-06-30¢  Intellasia 30 June 2017 3 /...

  • 30 June 2017

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    finance & business news

    FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Reference exchange rate goes down 1 VND 1 SBV may consider lifting credit growth targets: Analysts 2 Over 980 million USD worth of G-bond mobilised in June 2 Two bank capital channels temporarily cease 2 Resumption of suspended projects could erase bad debt in

    property sector 3 Is banks' interest rate raise a trend? 4 Policy credits for Mekong Delta remain modest 5 Vietnam Report lists 2017's top 10 commercial banks 6 Life insurance market share fluctuate in 2017 7 Citi's Korea Desk supports Korean corporations in Vietnam 7 Six nominated for Sacombank board 8 VIB has completed the purchase of a foreign bank branch 9 Kienlongbank shares officially listed 9 GDP grows 5.73pct in first 6 months 9 Vietnam's growth target slowly slipping away 10 Put resources to good use to attain 8-9pct growthexpert 10 CPI up 4.15pct in six months 11 Fiscal discipline indispensible to close Vietnam's budget deficit 12 Vietnam's foreign trade surges 14 Exports remain the 'exit' for economic growth in the second

    half of 2017 15 HCM City agro-forestry-fishery output reaches VND7.13

    trillion in Jan-Jun 16 Son La mangoes irradiated for export to Australia 16 Vietnam's fertiliser imports surge in H1 16 VN to import petrol for next five years 17 Vietnam spends $376 million on fruit imports from Thailand 17 Processing & manufacturing leads in FDI 18 Southern VN attracts major FDI 18 Dong Nai's registered capital hits record 19 Thanh Hoa Province led in FDI attraction 19 Tough talk over pay raise in 2018 19 PM pledges all possible support to workers 20 CIEM encourages equitisation 20

    City urged to boost competitiveness 21 The next Silicon Valley? Where to place Vietnam on the

    global startup map 22 VAMA optimistic about auto sales 24 Funds needed for hi-tech agriculture 25 Vietnamese consumers among most demanding on e-commerce 26 Convenience stores seek ways to differentiate themselves

    from rivals 26 Online tourism market still big enough for Vietnam's OTAs 27 Condotel growth is not normal: experts 28 China firms eye opportunities in VN 28 Vietnamese firms promote trade in South Africa 29

    BIZ NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Business Briefs Jun 30, 2017 30 Financial stocks lift local markets 30 Investor caution pushes turnover down 31 HCM City to review master infrastructure plans 31 Fourth bridge to Thu Thiem in the offing 32 Visa invitation and guarantees go online 33 Ministry pushes app based taxi management to localities 33 Tourism plans in Mekong Delta called too ambitious 34 City IT sector salaries balloon 34 Pet breeding a popular business in Ben Tre Province 35 Vietnam rides on Samsung's coattails 36 HCM City to help firms join Samsung's global supply chain 36 Savills Hotels to host 'Meet the Experts' series in

    Hanoi & HCM City 37 Heineken Vietnam backs sustainable growth 38 Mystery company may continue gobbling up failing steel giant 38 Taxi-Uber clash rasies questions 40 IBM Institute, UBIS University cooperate in management training 40 CAAV head picked as new ACV chair 41 First co-working space for all startup activities opens 41 200 businesses join in high-quality Vietnamese goods fair 42


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    FINANCE Reference exchange rate goes down 1 VND


    The State Bank of Vietnam set the daily reference exchange rate for VND/USD on June 30 at 22,431 VND, down 1 VND from the day before. With the current trading band of +/-3 percent, the ceiling rate for commercial banks dur- ing the day is 23,103 VND and the floor rate 21,759 VND per USD. The opening hour rates at commercial banks saw a slight drop, with Vietcombank and Vi- etinbank cutting both their rates by 5 VND. At Vietcombank, the buying rate was listed at 22,700 VND and selling rate 22,770 VND, while Vietinbank bought the greenback at 22,690 VND per USD and sold at 22,770 VND. Meanwhile, BIDV kept its rates unchanged from June 29, buying at 22,705 VND and sell- ing at 22,775 VND per USD.

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    Vietnam finance & business 30 June 2017

    SBV may consider lifting credit growth targets: Analysts


    The central bank may consider lifting credit growth targets for several banks to sup- port economic growth, according to Bao Viet Securities. Bao Viet Securities analysts said in a report that there was immense pressure on the government to loosen monetary policy as Vietnam was determined to achieve the GDP growth target of 6.7 per cent for the full year, however, the fiscal policy was struggling with disbursement of public investment. Until the end of May, disbursement of public investments reached VND88 trillion, only equivalent to 30.6 per cent of the full year's estimate, according to the General Sta- tistical Office. Bao Viet Securities said when fiscal policy did not support growth well, pressure would intensify on the monetary policy. Lifting credit growth targets for several banks might be an option to consider, the analysts said. When the monetary policy was loosened, the liquidity of the banking system would be increased, which would create favourable conditions for government bond issuance. The State Treasury, to date, has completed more than 70 per cent of the bond issuance plan of 2017. The General Statistical Office revealed that credit growth reached 7.54 per cent in the first six months of this year. The central bank set credit growth target at 18 per cent this year. analysts_287235.html

    Over 980 million USD worth of G-bond mobilised in June


    The Hanoi Stock Exchange (HNX) raised 22.3 trillion VND (980.8 million USD), down 6.3 percent from the previous month, during 16 auctions in June. The five-year bonds have an annual interest rate between 4.90 and 5.05 percent, down 0.15 percent from May, while the seven-year bonds were auctioned at an interest rate of 5.18-5.33 percent per annum, down 0.14 percent. The annual interest rates for 10-year and 15-year bonds were 5.65-5.79 percent and 6.3 percent respectively. Meanwhile, the bonds with 20 years and 30 years have respective coupon rates of 6.67- 7 percent and 7.1-7.5 percent, respectively. On the secondary market, the total volume of outright trading reached 912.5 million bonds, or over 97.8 trillion VND (4.30 billion USD), up 5.9 percent in value over the last month. The trading volume through repurchase agreement (repo) was more than 917.8 million bonds, or 90.3 trillion VND (3.97 billion USD), up 0.3 percent in value against last month. million-usd-worth-of-gbond-mobilised-in-Jun/ 114081.vnp

    Two bank capital channels temporarily cease


    Before the 2017 Traditional New Year holiday, banking activities were at peak season of payment. The State Bank had continuously injected capital to support the system's disposable funds. On the one hand, a large amount of capital was injected. On the other hand, the regu- lator still signalled the willingness to withdraw money if there was abundance, through the issuance of T-bills, though the volume got lesser and gradually stopped over the past five months. In other channel, after mediating almost all of the capital injected to support the afore- mentioned period, the State Bank is still offering mortgaged loans in the open market, though the outstanding loans from credit organisations have gradually decreased to only 50 billion dong as of mid-June. And in about one recent week, though the regulator has been steadily offering the cap- ital support of one trillion dong per session, no credit institution relied on this channel. The loan balance as of June 27 continued to be equal to zero. Regarding the regulation of monetary policy and the open market operation, the issu- ance of T-bills of the State Bank is to purchase or sell valuable papers with credit or- ganisations, thereby, directly affecting the system's disposable funds and liquidity. These are also the channels and tools that support the "alignment" of the money supply for interest rates and exchange rates.

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    Vietnam finance & business 30 June 2017

    In addition, the regulator also used other tools such as refinancing, adjustment of the required reserve ratio, etc. However, since 2011, the compulsory reserve tool has not had any adjustment; the capital refinancing is also quite blurred in information, which has been partially implemented but limited via special bond channel of the Vietnam Asset Management Company (VAMC). The two major channels including mortgage loan on the open market and issuance of T-bills are still the mainstream and are more flexible. And, as of June 27, both channels suspended in the transaction balance. Accordingly, it can be inferred that the disposable fund status of credit organisations in general is generally rather balanced and stable. Even, in another channel, the capital of credit organisations is also a favourable factor for the issuance of government bonds, contributing to the budget balance, through high successful rate of bidding activities since the beginning of this year, and creating favourable