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  • 6 October 2017

    finance & business news

    FINANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Reference exchange rate up 2 VND 1 Interbank rates continue to bottom in the last two weeks 2 'King' shares still remain 'hot' 2 Bancassurance hard to boom 3 Positive signals from bad debt treatment 4 SME transparency a must for loans: experts 5 Banks' moves to avoid overusing short-term funds for long-term

    loans 6 NPL regulations are not enough 7 Vietnam bad debt management firm ready to meet 2017 target 8 Foreign investors shun properties with bank debt 9 UOB launches Business Banking service for SMEs 10 Prudential seeks sale of Vietnam consumer finance unit

    for up to $150 million: sources 11 Vietnam-EAEU FTA gives boost to economic, trade ties 11 HSBC raises growth forecast to 6.6pct 12 VN's 2017 growth to quicken: World Bank 13 Wood, timber product exports to hit 8 billion USD 14 Can Tho to begin exporting rice to Iran 15 Vietnamese seafood exporters now put high hopes on

    Korean market 15 Seafood exporters fear new US, EU regulations on illegal fishing 16 Vietnamese instant coffee faces US recall over mislabeling 17 VN-Eurasian trade surges 18 EVFTA to bring in Hungarian meats 19 Thua Thien Hue: offshore fishing fares well 20 Petrol price drops slightly after five hikes 20 New law to improve civil compensation 20 Textile association opposes wage hike 21 Boom foreseen in green construction in VN 22 HCM City plans major tourism boost 23 Da Nang draws up sea-based economic development strategy 23 Ninh Thuan lures investment in renewable energy 24

    Vietnam, Japan cooperate in countering fake goods 24 Regional hub for German investors 25

    BIZ NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Business Briefs 06 October, 2017 27 VN shares fall on intraday profit-taking 27 VN Index & HNX-Index lose ground 28 Nearly 1 billion additional shares listed on UpCoM 29 IDICO sells out at IPO 30 Strategic investors hold kedy to IDICO's future 31 Rong Viet Securities' 9M pre-tax profit up 86.3pct 31 VNPT sets 2019 target for IPO 32 PV Power increases shares sold to public 33 More people choose Vietnamese goods 33 Poor infrastructure, services hamper growth of sea travel 34 High-end hotels see drop in occupancy rate as 2-, 3-star

    hotel supply increases 34 Vietnamese smart cities start with infrastructure 35 Aviation authority investigate customer data leak 37 Japanese car chair factory launched 37 Lotte expands Vietnam ops 38 First foreign-owned petrol station opens 39 First Code Academy seeking franchisees in Vietnam 39 Hanoi taxis protest Grab, Uber with bumper stickers 40 Fewer Hanoi-HCM City flights but fares stable 41 VN Airlines adds flights for Apec 42 Thailand launches Bangkok Phu Quoc flight route 42 Becamex Binh Phuoc draws 40 million USD in nine months 42 PetroVietnam's 9-month results exceed assigned plans 43 Leading Thai logistics group JWD to expand into Indonesia,

    Vietnam 43 Exhibition on printing-packaging runs in HCM City 43 HCM City set for biennial international woodwork fair 44

    FINANCE Reference exchange rate up 2 VND

    06/OCT/2017 INTELLASIA| VNA

    The daily reference exchange rate for VND/USD was set at 22,470 VND per USD on Oc- tober 6, up 2 VND from the previous day. With the current trading band of/-3 percent, the ceiling rate applied to commercial banks during the day is 23,144 VND and the floor rate 21,796 VND. Major commercial banks continued making changes to their rates, with Vietcombank and Vietinbank increasing their rates from October 5. Vietcombank raised its buying rate by 25 VND to 22,715 VND, and its selling rate by 35 VND to 22,695 VND from a day ago. Vietinbank listed its buying rate at 22,695 VND and selling rate 22,765 VND per USD, both up 5 VND. Meanwhile, BIDV set its selling rate at 22,690 VND and its buying rate at 22,760 VND, both down 5 VND from October 5. https://en.vietnamplus.vn/reference-exchange-rate-up-2-vnd/119066.vnp

    FINANCE

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    Vietnam finance & business 6 October 2017

    Interbank rates continue to bottom in the last two weeks

    06/OCT/2017 INTELLASIA| BIZLIVE

    The interbank rates generally tended to level off and stay at low level in the last two weeks, reaching 0.68 percentage points (pp.) on overnight term, 0.82pp on one-week term, 0.96 pp. on two-week term, and 1.48 pp. on one-month term. The market liquidity of commercial banks remained abundant although the State Bank of Vietnam (SBV) did not strongly inject capital into the system via Open Market Op- eration (OMO) channel. According to experts of MB Securities Company (MBS), the interbank interest rate lev- el will continue to be low and will tend to level off at bottom level in the next weeks before rising again in the end of the year, when the demand for credit increases. Despite sending many messages about policy easing, SBV did not inject much cash into the system via OMO channel. The increase of money supply and credit in the first nine months of the year was fairly positive, reaching respectively 9.59 percent and 11.02%. The maintenance of USD at low level and the return of trade deficit in Vietnam in Au- gust and September has reduced the pressure on VND. In the first three quarters, Vi- etnam only recorded a trade deficit of 442 million USD. The deposit interest rates of banks in the recent time have remained fairly stable with no major changes in the last two weeks. The mobilisation growth in the first nine months of the year reached 10.08%, lower than the 11.76 percent recorded in the same period of 2016, making it very difficult to lower interest rates, if SBV does not signifi- cantly inject money into the system. According to MBS, in general, the interest rates will slightly increase in the end of the year due to the high demand for credit growth and the needs to shift short-term funds to long-terms of commercial banks. The deposit rates in VND are currently ranging from 0.8-1 percent for non-term depos- its and one-month term, 4.5-5.4 percent per annum for deposits with terms from one month to less than six months, 5.4-6.5 percent per annum for deposits with terms from six months to less than 12 months, and 6.4-7.2 percent per annum for deposits with terms from 12 months and more. The USD deposit rate of banks is 0 percent per annum for deposits of individuals and organisations. Meanwhile, the lending rates are popular at 6-6.5 percent per annum for priority areas on short terms, while state-owned banks apply medium and long-term lending rates at 9-10 percent per annum for priority areas. Normal business and production activi- ties enjoy lending rates of 6.8-9 percent per annum on short terms and 9.3-11 percent per annum on medium and long terms. For the group of good customers with healthy and transparent financial situation, short-term lending rates are from 4-5 percent per annum. The USD lending rates are popular at 2.8-4.7 percent per annum on short terms, and 4.7-6.0 percent per annum on medium and long terms.

    'King' shares still remain 'hot'

    06/OCT/2017 INTELLASIA| DAU TU CHUNG KHOAN

    Bank shares are proving its power and regaining the much attention of investors. According to experts, there are many factors that determine the price of a stock, includ- ing external effects such as the supply and demand differential, the market context and, in particular, the internal factors of the business. It is evidenced that VPB-coded share has been bought up very strongly by the investors, even hitting 37,00038,000 dong/share, three times higher than that at the beginning of the year. Nguyen Duc Vinh, VPBank's general director, said that the three key factors that have contributed to the success of VPBank over the past years are as follows: firstly, accu- rately identifying goals, persistence and focus on determined targets. Secondly, the team has a consensus. Thirdly is the best combination on the market. "Seven years ago, we identified VPBank's path is retail, serving the majority, including those who have little or no access to banking services," Vinh said. So far, this strategy is working quite positively. After VPBank went public, a newcomer that is expecte to contribute significantly to the attractiveness of the group of "king" shares is LienVietPostBank (coded LPB) with the maiden trading session on UPCoM being slate on October 5. The reference price on the first trading session is 14,800 dong each. According to the statistics of VNDirect Securities Co, at the end of 2016, LienVietPost- Bank ranked 13/35 commercial banks in Vietnam in terms of total assets. Remarkably, with the strong growth of profitability in 2016 and the first quarters of 2017, LienViet-

    Intellasia 6 October 2017 2 / 44

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    Vietnam finance & business 6 October 2017

    PostBank has risen to the third largest non-state shareholding commercial bank in terms of ROA and ROE, with the first and the second belonging to VPBank and Tech- combank. In addition, this is one of the few banks with significantly improved NIMs with 2.9 per- cent in 2014, 3.1 percent in 2015 and 3.5 percent in 2016. The LienVietPostBank's depos- it rates are among the lowest in the market due to the good liquidity (low loan to deposit ratioLDRaround 72 percent at the end of 2016) thanks to the advantage of cheap capital sources. However, when talking about the plan to list shares on UPCoM market, Nguyen Duc Huong, Chair of LienVietPostBank only emphasized, the