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BUSINESS
IN BRIEF 12/7
VCCI
accused of misusing state budget funds
On July 10, the
government inspectorate announced that the Vietnam Chamber of Commerce and
Industry committed wrongdoings when they made bank deposits totaling over
VND9.4 billion (USD448,000).
VCCI had been given
an amount of money from the budget to prepare for the APEC Summit 2006. After
the summit ended, the excess funds were over VND9.4 billion.
However, instead of
reallocating this money to the state budget, VCCI deposited it in order to
earn interest. "VCCI violated regulations when they withdrew the
interest in 2008, 2009 and 2010 for their own activities," according to
inspection results.
There were hundreds
of contracts and invoices worth tens of millions of VND that also violated
regulations.
In addition,
members of VCCI did not fulfill their duties. VCCI did not record the meeting
of ASEAN Business and Investment Summit on May 10, 2010.
Also, when VCCI's
headquarters is being built, they did not evaluate the plan in advance, and
instead they allowed Saturn Company become the project investor and signed
contracts with a number of contractors. According to regulation, Saturn
Company should only have been allowed to sign the contract as representative
of the investor.
The inspectorate
suggested the Prime Minister take stricter management measures over VCCI's
finances. VCCI was ordered to return to the over VND127 million of wrongfully
collected interest and illegal invoices to the state budget.
SBV
Governor: Big banks also to be restructured
Governor of the
State Bank of Vietnam (SBV) Nguyen Van Binh said that from now to the year's
end, the SBV will begin restructuring big commercial joint stock banks, as
was done with small banks.
Speaking at a
meeting to review the banking sector during in the first six months of this
year, Governor Binh said that bad debt in the banking system has gradually
improved.
Never before have
credit organisations in
According to the
governor, the SBV has been in the process of completing legal documents to
speed up the settlement of bad debt. To date, Vietnam Asset Management
Company (VAMC) has bought around VND50 trillion (USD2.4 billion) of bad debt
and plans to acquire between VND70 and VND100 trillion by the end of the
year.
Binh disclosed that
during the first half of this year, the banking sector’s credit growth was
estimated at 3.52%, and is expected to grow to about 7% in the second half.
The target set for
the sector was to reach a credit growth rate of between 12% and 14% for the
entire fiscal year.
Seminar
discusses investment opportunities in the US
A seminar in HCM
City on July 10 focused on assisting Vietnamese businesses improve their
understanding of American laws and increase their capacity to effectively
seek cooperative investment opportunities in the US.
During the seminar,
experts agreed that the US Foreign Investment Act has opened up the market to
allow for wholly owned foreign-invested companies with adequate safeguards to
enforce those rights in American courts.
Hoang Kim Son, Head
of Vietnam’s trade office in
Businesses should
co-ordinate with
Echoing Son’s
views, Vo Tan Thanh, Director of Vietnam Chamber of Commerce and Industry in
In addition, the
Construction
starts on
Construction on the
US$124 million Nam Lik 1 hydroelectric power plant got underway on July 9
following more than one year of design preparation.
Once fully
operational the facility of Posco Engineering & Construction Co.Ltd will
add a capacity of 65 MW to the power supply of Phonhong District,
Approximately,70%
of the total investment capital is sourced from a Thai Exim Bank official
development assistance (ODA) loan with the remaining 30% coming from
POSCO E&C, PTTI-a state-run energy corporation of Thailand, HEC, a
generation equipment supplier, and EDL, the utility authority of Laos.
The total value for
the engineering, procurement, and construction (EPC) contract is estimated at
US$81 million.
The
Build-Operate-Transfer project located 90 kilometres north of
With civil
infrastructure experience, POSCO E&C is focusing on hydropower plant
projects with the aims of building a green environment campaign across the
globe.
VSIPs – a
symbol of Vietnam-Singapore economic cooperation
Vietnam-Singapore
Industrial Parks (VSIPs) which have sprouted throughout the nation are a
reflection of the fruitful bilateral economic relations between the two
nations and the strong support of the countries’ leaders.
This affirmation
was made by Singapore Second Minister for Foreign Affairs Grace Fu at a
Singaporean Parliament on July 9.
Minister Fu was
asked a question by member of parliament R Dhinakaran about solutions taken
by the Vietnamese Government to support Singaporean firms operating in VSIPs
in Binh Duong and Quang Ngai provinces following recent social disturbances.
In response Fu said
that most businesses have resumed normal operations, adding that the
Vietnamese Government has taken numerous measures to stabilize the situation
in the disturbance-affected industrial zones.
Minister Fu
emphasized that the Vietnamese Government has also pledged to conduct a full
investigations and intensify necessary measures to deal with law-breakers and
extremists.
Fu assured
Singapore Parliament members the two governments are closely cooperating to
protect Singaporean investors’ interests in
Hai Duong
lures four more foreign businesses
The Hai Duong
province Industrial Parks (IPs) management board on July 10 granted foreign
investment licenses for the construction of four new manufacturing
facilities.
The four licensed
projects include the
In the coming time,
Hai Duong province will continue to focus on strengthening investment
promotion activities with large multinational groups, build trust among
investors and implement administrative reform to
facilitateforeigninvestment.In the first half of the year, the locality has
attracted over US$390 million in direct foreign investment (FDI), up 3.9
times against the same period last year. Some FDI businesses have increased
investment capital to US$88 million to expand production activities.
Hai Duong has so
far attracted 271 FDI projects capitalised at over US$6.2 billion which have
generated over 1.3 thousands jobs.
Fruit and
vegetable exports enjoy fertile growth
Fruit and vegetable
exports have outpaced the national average in recent times, making
agriculture one of the leading export sectors.
Fruit and
vegetables grossed US$658 million from exports in the first half of 2014, an
increase of 132% against the same period last year, meeting 54.83% of this
year’s plan.
Last year, their
export value hit nearly US$1.1 billion, US$200 million higher than the set
plan, and this year’s total export earnings are expected to surpass US$1.2
billion.
The Vietnam Fruit
and Vegetables Association (Vinafruit) reported that in the first six months
the country enjoyed a US$400 million trade surplus from fruit and vegetables.
In the European
market, with the exception of dragon fruits, exports of most fruits such as
pomelos, mangoes, rambutants are modest. Vegetable exports have rebounded but
their overall value is limited.
In late May, the
New Zealand Embassy in
The agreement opens
the door for shipments of high quality dragon fruits to enter
According to MARD’s
Agro-forestry Processing and Salt Industry Department, in the past year
Vietnamese fruit
and vegetables have been exported to more than 40 countries and territories,
including
To avoid these
risks, domestic businesses must have clear contracts, require bank payment
and know their partners well, MARD cautions.
The second largest
consumer of Vietnamese fruit and vegetables is
The third largest
partner is the
Despite quite high
growth in the first months, difficulties have arisen due to global
complications, especially following the recent
A possible
reduction in Chinese imports is likely to put the burden on the agriculture
sector to shift its emphasis to expand into other more high demanding
markets.
Vinafruit Vice
President Huynh Quang Dau said in order to reduce overdependence on the
Chinese market, businesses should master advanced technology and develop
large-scale material zones, enabling them to break into demanding markets
such as the EU,
Grant
Thornton:
Roughly 51% of
surveyed private investors revealed that they have plans to expand operations
in
The report on
private investment recently released by Grant Thornton
Grant Thornton
The report revealed
that private investors were interested in
In addition, real
estate is also drawing much attention from investors, particularly in M&A
activities.
At a Vietnam
Investment Forum (VIF) held recently in Ho Chi Minh City, domestic and
foreign experts said emerging markets, including Vietnam, are highly
appealing destinations for international investment capital inflows.
Dr Marc Faber, a
well-known financial strategist, forecast that foreign investment in
More
seafood businesses to ship products to Argentina
The National Food
Safety and Quality Service of Argentina (Senasa) will consider increasing the
number of Vietnamese seafood processors eligible for exporting products to
The National
Agro-Forestry-Fisheries Quality Assurance Department of Vietnam (NAFIQAD) and
Senasa recently signed a memorandum of understanding on agro-fisheries
export, opening opportunities for Vietnamese seafood processors.
The MoU regulates
that each shipment of Vietnamese seafood to
The Vietnam
Association of Seafood Exporters and Processors (VASEP) says in the face of
shrinking markets in the EU and US, having the new market will help seafood
businesses maintain production and boost exports.
Vietnam Customs
statistics show that
Meanwhile,
In South America,
Vietnamese seafood has just penetrated
H1 auto
sales of VAMA members up strongly
The Vietnam
Automobile Manufacturers’ Association (VAMA) estimated its member firms sold
nearly 55,000 units in the first half of this year, a whopping increase of
27% compared to the same period last year.
VAMA’s preliminary
statistics showed the volume of autos sold by its members rose 32% to 10,853
units last month, including 7,192 passenger cars and 3,661 commercial cars.
Notably, Truong Hai
Auto Corporation (Thaco) reported sales of nearly 3,500 units last month, up
48% year-on-year. With this result, the local assembling firm took up 32.1%
of the market share and June was the fifth month in a row that Thaco had taken
the lead in auto sales on the local market.
Other members of
VAMA also posted strong June increases, including Ford
Among the nearly
55,000 units sold in the January-June period, Thaco accounted for over 17,850
units, increasing by 40% over the same period last year and accounting for
32.5% of the market share of VAMA.
Given the measures
the Government has adopted to beef up economic growth, VAMA forecast the auto
market in the second half of this year will increase by 11% compared to the
first half and 140,000 units would be delivered to customers this year, up
27% year-on-year.
HCM City
deputies still concerned over economic growth in H2
Despite positive
improvements in the first half of this year, HCMC is still coping with a host
of challenges in the second half, said Nguyen Thi Quyet Tam, chairwoman of
the HCMC People’s Council.
Tam raised the
concern given the adverse impacts of China’s illegal placement of its oil
drilling rig in Vietnam’s waters in the East Sea at the 14th session of HCMC
People’s Council which opened on July 8 morning.
At the opening day
of the session, deputies urged local authorities to have timely and effective
solutions to help small and medium-sized enterprises overcome tough times.
Tam said the city’s
economy continued recovering in the first six months of this year with stable
gross domestic product (GDP) growth and better budget collections.
However, many
challenges loom large in the second half due to a slow aggregate demand
increase, sluggish credit growth and high bad debt. Many enterprises have
been struggling with difficulties while workers have seen their incomes
contracting.
Moreover, the city
government had yet to efficiently address social issues related to
environmental pollution, flooding, hospital overloads and
poorer-than-expected health check-ups and treatment services, Tam said.
According to the
HCMC People’s Committee, the city’s GDP in the January-June period reached
VND379 trillion, up 8.2% year-on-year and higher than the same periods of
2012 and 2013.
The city’s imports
were more than US$12.4 billion in the period, down 2.2% year-on-year. Imports
of many materials for garment and textile sector, insecticide, steel and
machines will be impacted by the
Complicated
developments in the
However, the
challenges would bring about opportunities for local enterprises to diversify
markets and improve their competitiveness. Now is the right time for firms to
change import markets to enjoy tax incentives of bilateral and multilateral
trade agreements, including the Trans-Pacific Partnership (TPP) which is
expected for conclusion soon.
HCMC will also
focus on development of material sources to raise value of key products such
as apparel, high-quality furniture and fine arts. The city will propose the
Government set up technical barriers to reduce unnecessary imports.
Retail
sales up over 10% in H1
The total retail
sales of goods and services reached nearly VND1,440 trillion in the first six
months of this year, a year-on-year increase of 10.73%, according to figures
of the Ministry of Industry and Trade.
The ministry’s
figures released last week showed retail sales in June inched up by 1.7%
against the previous month, owing to the growing revenue from the hospitality
sector and buoyed by better electronics retail sales due to the World Cup.
The increase in
retail sales last month mainly came from the hospitality sector in coastal
provinces as they were in the high season of summer travel, said the Local
Market Department under the ministry.
According to the
department, retail sales rose slightly due to the current economic slump, as
consumers tightened their spending.
In addition, the
purchasing power has been reducing in recent months compared to the beginning
of this year, said enterprises.
Only electronics
products experienced a steep increase in the months before the FIFA World Cup
football tournament currently taking place in
Meanwhile, sales of
cell phones and mobile devices edged down, said FPT Shop recently.
If the electronics
sector is faring well due to the World Cup, mobile phones sales stood on the
opposite side, said Nguyen Bach Diep, general director of FPT Retail, the
owner of the FPT shop system.
Experts
scrutinise slow pace of bad debt resolution
Banking experts are
looking at ways to more effectively tackle the country’s bad debt situation.
State-owned Vietnam
Asset Management Company (VAMC) was reported to begin selling its bad debt
stocks in the first part of the third quarter.
According to Can
Van Luc, the director of the Bank for Investment and Development of Vietnam
(BIDV)’s staff training centre, bad debts are likely to be sold indirectly to
investors through intermediaries in the initial stage.
One investment fund
representative was quoted as saying, “In respect to selling debts to foreign
investors, the VAMC should hold public auctions to directly present its
products to investors instead of selling through middlemen, as no investor
wants to buy debts through an intermediary.”
But while
advocating that debts should be sold in complete transparency, some experts
say that
“
In a report
released in early July, HSBC Vietnam experts expressed their concern over the
efficiency of how the VAMC is handling the bad debts it has bought up.
“Overall, banking
sector reform has been sluggish and the bad debt situation has yet to be
tackled in a comprehensive way. With taking immediate action, how will
Economist Le Xuan
Nghia has suggested giving VAMC more rights in tackling bad debts,
“Otherwise, the process will continue to be slow and
Since being
established in July last year, the VAMC has been proactive in buying
non-performing loans from banks.
Buy early July this
year it had bought more than VND50.7 trillion ($2.4 billion) in NPLs and is
readying to buy another VND1.2 trillion ($57 million) from state giant
VietinBank.
However, at this
point the VAMC has only succeeded in selling and rectifying around VND996
billion ($47.4 million) of bad debts.
According to VAMC
chairman Nguyen Quoc Hung, the organisation has developed a list of debts
that may appeal to foreign investors and around 10 potential overseas buyers
have expressed interest.
But not a single
transaction has yet to be made because of a lack of guiding documents and
authorities being too slow in completing legal procedures due to their fears
of the risks associated with the process.
Also, foreign
investors have reportedly valued the debts they want to buy at only about 30
per cent of the original value, which has made the VAMC reluctant to sell.
The nation’s global
market share for garment and textile products has expanded steadily over the
years and is expected to rise further in the coming time thanks to free trade
agreements (FTAs), said Le Tien Truong, deputy general director of Vietnam
National Textile and Garment Group, or Vinatex.
Speaking at a
recent seminar introducing Vinatex’s initial public offering (IPO) in HCMC,
Truong said
Though major
markets such as the
Quoting data of the
Office of Textiles and Apparel (Oxeta) of the U.S. Department of Commerce,
the Vietnam Textile and Apparel Association (VITAS) said that
Between January and
April, apparel imports from
Oxeta’s data showed
that apparel imports from
For
In terms of export
growth rate,
Meanwhile,
The figures
indicated that
In addition, the
Vietnam-EU FTA expected to be concluded late this year and take effect in the
second half of 2015 will help
In a notice sent to
shipping lines and customers, Saigon Newport, the operator of
Many exporters have
chosen
The congestion at
the port is believed due to authorities tightening control on overloaded
trucks transporting containers to and from
Le Hong Viet,
deputy chief inspector of the city’s transport department, said at a meeting
on July 8 that the number of overloaded vehicles had dropped significantly.
In the first four months of this year, there were as many as 5,200 vehicles
violating load control rules, but the number decreased to only 98 in June.
In May, the city’s
transport department collected comments from several port operators on
placing a weigh station inside ports but the idea faced disagreement from
certain companies, saying it would lead to cargo congestion. In addition, if
a truck is forced to unload part of the cargo, it has to pass through customs
procedures, complicating the port operation.
Upon such comments,
the transport department urged all the ports to commit to closely check the
vehicles to prevent the overloaded ones.
Massive central
highway project to soon be underway
Great efforts are
being taken to finish first phase construction on the billion-dollar Ben
Luc-Long Thanh expressway project by late this year.
The consortium
building the highway project consists of
The 57-kilometre
long highway is expected to pass through Ben Luc and Can Giuoc district in
the southern province of Long An, then Ho Chi Minh City and finally Nhon
Trach and Long Thang districts in the southern province of Dong Nai.
The J2 package
spans 4.7km and consists of a bridge crossing the
The $143 highway is
designed for vehicles to travel at speeds up to 80km/h in the first phase,
and up to 100km/h once fully complete.
There are a number
of reasons why the Ministry of Transport (MoT) and developer Vietnam
Expressway Corporation (VEC) hope for the J2 package to be complete prior to
schedule. It was set at 32 months in the contract.
The first reason is
the employment of Cienco 4, which is regarded as one of the transport sectors
best performers in recent years.
For Hanoi’s beltway
3 project, Cienco 4 completed the project 263 days ahead of schedule while
Sumitomo Mitsui, which has 16 years operating in Vietnam, finished its part
454 days ahead of the deadline.
The Sumitomo
Mitsui-Cienco 4 consortium will contribute human resources, equipment and
finance for joint implementation of the bidding package, instead of each
contractor building a separate road section, as seen in some previous
projects.
“This method will
maximise the advantages of both sides as Sumitomo is strong in finance and
technology while Cienco 4 has a skilled and disciplined workforce,” said
Cienco 4 general director Le Ngoc Hoa.
The consortium will
have around 20 days to make preparations before starting work on this package
by the end of this month.
The Ben Luc-Long
Thanh expressway project is one of the most sizable in terms of capital ever
implemented in the central region.
Of the total
projected investment of more than $1.6 billion for the project’s first phase,
$636 million will come from the Asian Development Bank as a loan, another
$635 million will be lent by the Japanese government through the Japan
International Co-operation Agency, and the remaining $337 million will be
Vietnamese government reciprocal capital.
Part of the southern
key economic zone, the Ben Luc-Long Thanh expressway is regarded as highly
attractive to investors.
The project’s
consultancy unit,
“We are busy
finalising bidding procedures and ensuring sufficient capital is available
for the project to begin in its entirety late this year,” said VEC’s general
director Mai Tuan Anh.
The expressway is
part of beltway 3, which links the western and eastern southern region and
routes to major ports including Hiep Phuoc and Thi Vai-Cai Mep. It may also
link up with Long Thanh international airport.
The expressway may also
connect with the still-on-paper Ho Chi Minh City-Vung Tau highway, shaping
part of the southern economic corridor under the Greater Mekong Subregion
spanning from
Rent-A-Port
inks Quang Ninh MOU
The memorandum of
understanding (MOU) was signed late last month during an investment promotion
conference held by the local authorities. The two companies will work closely
with the local authorities to complete administrative procedures to push the
project forward.
The developers have
also agreed to provide documents proving financial capability “as soon as
possible” and submit a feasibility study for the project to the local
authorities for approval within this year, the MOU stipulated. The
development underscores Rent-A-Port’s commitment to Quang Ninh. It completed
its feasibility study, targeting the Mac Dynasty Lagoon area in Quang Yen
district. The committee previously approved 490 hectares that would include
an industrial park and a seaport valued at around $120 million.
In April, Rent-A-Port
and consultancy and engineering firm Ecorem submitted their study to the
local authorities.
Ecorem looked at
3,710ha to select the best location for the project. It proposed expanding
the scale to 1,000ha but so far the committee has only approved an initial
500ha. If the expansion is approved, the first phase would take place between
2016 and 2020 and cost $412 million.
This is Rent-A-Port
and InfraAsia’s second port and industrial park complex project in
Rent-A-Port and
InfraAsia – in association with Belgim International Port Engineering &
Management – started investing in the Dinh Vu Industrial Park in 1997. The
first phase of the project is entirely occupied and the developer is starting
on the second phase, which will cover 377ha. According to Rent-A-Port, nearly
50 per cent of the second phase is already occupied. The project has
attracted 53 projects so far with the total investment capital of $3 billion.
Foreign investors in the zone include Bridgestone, Shin-etsu, Chevron, Toyota
Tsusho, and JX Nippon.
Positioned on the
border of China’s Guangxi province and bordering Vietnam’s Lang Son, Bac
Giang and Hai Duong provinces and Haiphong, Quang Ninh is emerging as the
north of Vietnam’s third major industrial hub after Hanoi and Haiphong. It is
also home to the nation’s largest coalmine, 11 industrial parks and two
economic zones. The Vietnamese government is preparing to establish a special
economic zone in the province to further bolster the local economic growth.
Southern
hub promoting supporting industries – hi tech links
The city’s
Department of Industry and Trade, HEPZA (the industrial zone watchdog) and
Saigon Hi-Tech Park (SHTP) signed separate deals last Friday to carry out a
plan to accomplish this goal. SHTP, which is already home to the $1.04
billion Intel chip factory, and HEPZA will join forces to take measures under
the leadership of the city government.
The signing was
part of a workshop held by the municipal People’s Committee to call for more
investment into the two sectors. City deputy chairman Le Manh Ha told media
at the vent that the southern economic hub has not borne much fruit in terms
of developing support industries serving hi-tech over the past 10 years.
Now the city’s
government has set aside
Yasuzumi Hirotaka,
managing director of the Japan External Trade Organisation’s
Hirotaka listed six
main reasons for
At the seminar,
corporate representatives said
SHTP management
board chief Dr. Le Hoai Quoc said most of its corporate tenants were using
products provided by foreign suppliers, mainly from Japan, Korea, Taiwan,
Malaysia, Thailand and Singapore. At the billion dollar Intel project, the
American giant divides materials into direct and indirect. At present, Intel
is focusing on buying only materials produced in Vietnam, but so far has only
been able to source 10 per cent of what it needs while importing the rest.
“Intel is facing
difficulties in seeking qualified suppliers here. Because what they want to
buy are indirect materials and the number of orders isn’t stable. Therefore
local suppliers do not want to invest in new equipment and technology to only
supply Intel. For direct materials, Intel still has no long-term plan for
local orders,” Quoc added.
According to SHTP,
so far Intel has disbursed $280 million into its
The $100 million
Jabil
Quoc said Jabil
GE Aviation
eyes
The world’s largest
jet engine maker GE Aviation, an operating unit of
David Joyce,
president and CEO of GE Aviation told VIR that GE Aviation was “actually
looking at putting some of our work in GE’s operating energy facility in
Joyce referenced
the
With GE Aviation’s
plan turning into a reality,
European aircraft
maker Airbus announced this April that Nikkiso Vietnam, a Vietnam-based
Japanese company, would produce and supply composite interior parts and outer
panels to retrofit planes to meet new Sharklet specs. Production was
implemented under a sub-contract with the Korean Air Aerospace Division, the
sole supplier of Sharklet for Airbus. Airbus said that when production
commenced before the end of the year, about 50 Vietnamese employees would
work directly for Airbus through the Nikkiso contract.
Three year ago,
Nikkiso
Meanwhile, last
year, Japan’s Mitsubishi Heavy Industries, after four years manufacturing
flaps for Boeing aircraft in Hanoi’s Thang Long Industrial Park, decided to
expand its production capacity for aircraft components, aiming to supply more
spare parts to Boeing. The new factory will produce components for the Boeing
777 jumbo jet that are currently made at the Mitsubishi Heavy Industries’
Nagoya Aerospace Systems Works.
Mitsubishi Heavy
Industries built their first factory in
Korean Aerospace
Industries Ltd,
Headquartered in
In October last
year, the national flag carrier Vietnam Airlines signed a $1.7 billion deal
to purchase 40 GEnx engines from GE Aviation to power its fleet of Boeing 787
Dreamliners scheduled for delivery in 2015. The value of the deal was said to
be the largest in two decades of GE’s operations in
“The delivery
streams are set and we are very excited about that order,” Joyce told VIR.
In a similar move,
a representative of CFM International, a 50-50 joint venture between GE and
GE Aviation has
announced that the firm would participate in the Farnborough Airshow in the
The July 19 and 20
this year will witness the best ever Farnborough yet. A feast of new
activities will deliver what promises to be a day out like no other.
Celebrating 100
years of Aviation History, witness a hearty selection of the great and the
good, stemming back from WW1 and spanning through to modern day
technology. The 4 ½ hour flying display will be bumper to bumper of
non-stop action and guaranteed to get your pulses racing.
And it doesn’t stop
there, our on the ground entertainment offers the newly introduced
Farnborough Airshow Live, the interactive and informative live stage
show with fun and colourful presenting, competitions and interviews.
Major banks
post strong H1 results
Three major
Vietnamese joint stock banks have posted or are expected to post strong
business results for the first half of 2014.
TPBank reported its
profits of VND263 billion ($12.3 million) in the first half of this year,
coming to 60 per cent of its annual target. The total credit grew by 8.8 per
cent, of which lending to businesses and individuals rose by 16.3 per cent,
while deposit by individuals and organisations grew by 4.5 per cent. Its bad
debt ratio was a low 1.66 per cent, down 0.3 percentage points against the
beginning of the year.
TPBank is one of
only a few banks recently approved to against set up new branches. Over the
past six months it has opened five new locations, including two in
Meanwhile,
Vietcombank (VCB), Vietnam’s third largest joint stock bank in terms of total
assets, has been assessed by Bao Viet Securities (BVS) to have made VND912
billion ($42.8 million) in net profit in the second quarter this year, up 5
per cent on year.
BVS assessed VCB’s
income from lending grew by 8 per cent and it estimated the bank’s total
lending rose by 3-3.5 per cent by the end of Q2. It said Vietcombank’s total
deposits have gone up 7.5 per cent so far this year and its net interest
margin (NIM) has also increased.
BVS said projected
that for the whole year, Vietcombank’s revenue and net profits will reach
VND17.317 trillion ($810 million) and VND4.439 trillion ($207 million), up 12
per cent and 2 per cent on-year.
BIDV, Vietnam’s
largest joint stock bank in terms of total assets, posted pretax profits of
VND2.5 trillion ($110 million) in the first five months of this year. The
bank’s total deposits grew by 3.3 per cent to VND431 trillion ($20.2
billion), while the total lending went up by 2.3 per cent to reach VND396
trillion ($18.6 billion). BIDV’s bad debt ratio is under 2 per cent.
By the end of the
year, BIDV plans to increase its total deposits and lending by 13 per cent,
reach pretax profits of VND6 trillion ($281 million), to keep its bad debt
ratio under 3 per cent, and issue a dividend of at least 9 per cent.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Bảy, 12 tháng 7, 2014
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