IFC’s report entitled Climate Investment Opportunities in Cities analyses cities’ climate-related targets and action plans in six regions, identifying opportunities in priority sectors such as green buildings, public transportation, electric vehicles, waste, water, and renewable energy. It highlights the innovative approaches that cities already use – such as green bonds and public-private partnerships – to attract private capital and build urban resilience. Investment potential in cities in East Asia-Pacific and South Asia, accordingly, are estimated at $17.5 trillion and $2.5 trillion across the six priority sectors, totalling $20 trillion to 2030. It says with its plans, policies, and projects, the Asia-Pacific region has the highest climate smart investment potential of any region in the world, with by far the biggest opportunity in green buildings, estimated at $17.8 trillion by 2030. With more than half of the world’s population currently living in … [Read more...] about $20 trillion climate investment opportunities found in Asian cities
Asian bond markets initiative
ADB welcomes PHP1 billion bond under ASEAN+3 Multi-Currency Bond…
“We hope that this pilot bond will pave the way for similar bond issues going forward,” said ADB Chief Economist Mr. Yasuyuki Sawada. “Vibrant local currency bond markets provide valuable alternative sources of funding for companies while borrowing in local rather than foreign currencies strengthens the overall stability of the domestic financial sector.”The AEON Philippines’ bond, offered in two tranches will mature in 2021 and 2023, respectively. AEON Philippines, a financing firm, is part of the AEON Group of Companies through Japan-based bank holding company AEON Financial Service Co., Ltd. The company will use the proceeds to provide tricycle loans and personal loans, as well as financial services for the purchase of consumer products such as home appliances, furniture, electronics, and other consumer products, focusing particularly on the unbanked population and those with limited access to financial services.“We welcome the first … [Read more...] about ADB welcomes PHP1 billion bond under ASEAN+3 Multi-Currency Bond…
Asian markets cautious after US volatility
Asian markets were cautiously higher on Wednesday (Oct 10), after a volatile session for US equities and as yields on Treasury bonds retreated from a seven-year peak. Asian stocks began Wednesday mixed after initial gains for Japanese shares fell back. (Photo: AFP/Martin Bureau) Tokyo edged up, ending a four-day losing run on bargain buying despite the higher yen's dampening impact. "After four days of falling ... Japanese shares are in a good place for bargain-hunting buys," Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary. Hong Kong added 0.1 per cent while Shanghai closed 0.2 per cent higher, both moving back into positive territory for a second day after Monday's sell-off. There were also gains in Mumbai, with markets leaping 1.5 per cent after closing at a six-month low on Tuesday, and aviation stocks seeing a boost after domestic media reports that New Delhi may reduce a jet fuel tax. "(Indian) markets will continue to be volatile in the … [Read more...] about Asian markets cautious after US volatility
The bright outlook for Techcombank
Barry Weisblatt, head of research at Viet Capital Securities What is your outlook for the Vietnamese banking sector? We are generally quite positive in our outlook for the Vietnamese banking sector. 18 per cent credit growth was quite solid in 2017 and was not the kind of window dressing we have seen in previous years where growth accelerates in the last two weeks of the year to reach the SBV’s target but, rather, was stable throughout the year. Moreover, we are seeing a shift into retail lending, which is having several positive impacts. First, the higher yields on retail assets helped keep net interest margins (NIMs) of the banks we cover stable at 2.99 per cent despite rising funding costs. Second, we are seeing non-interest income (NOII) make a more significant contribution to banks’ bottom lines. NOII increased from 12 per cent of Total Operating Income (TOI) for our coverage universe to 18 per cent in just two years due to triple-digit increases at some banks. Much … [Read more...] about The bright outlook for Techcombank
Thailand plans regional infrastructure fund
At the 7th Ayeyawady – Chao Phraya – Mekong Economic Cooperation Strategy (ACMECS) Summit in Hanoi (Photo: VNA) Bangkok (VNA) – Thailand plans to take the lead in creating a regional fund with its neighbours, including Cambodia, Laos, Myanmar and Vietnam, to back infrastructure and other development projects. Arthayudh Srisamoot, deputy permanent secretary of Thailand's Ministry of Foreign Affairs, said Thai Prime Minister Prayuth Chan-ocha is expected to propose the idea to the leaders of the five countries at the 8th summit of the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) in Thailand on June 16. The fund will be operational by 2019, he said, adding that Thailand is set to contribute a substantive initial figure. It will raise money through the stock and bond markets by issuing debt for projects such as in power generation as initiated by ACMECS. Contributions from financial institutions and countries outside the ACMECS framework are … [Read more...] about Thailand plans regional infrastructure fund
BUSINESS IN BRIEF 24/4
Leaders of Ho Chi Minh City recently held a meeting with foreign-invested (FDI) businesses, calling on them to work side by side with the southern metropolis of Vietnam toward the goal of fast and sustainable development. The event on April 21 drew representatives of foreign businesses’ associations and nearly 200 FDI companies in HCM City. Secretary of the municipal Party Committee Nguyen Thien Nhan said over the past years, HCM City has made efforts to improve investment climate, step up administrative reforms, streamline procedures, increase transparency and boost IT application in the settlement of administrative procedures to enhance the attractiveness to foreign investment. As a result, the city attracted 6.6 billion USD in FDI in 2017, surging over 90 percent from the previous year. In the first quarter of 2018 alone, the figure stood at 1.37 billion USD, compared to 5.8 billion USD of the entire country. However, he said, HCM City is also facing an array of challenges … [Read more...] about BUSINESS IN BRIEF 24/4
ASEAN Finance Ministers’ Meeting opens in Singapore
Scene at the 22nd ASEAN Finance Ministers Meeting in Singapore (Photo: VNA) Singapore, (VNA) – ASEAN Finance Ministers began their 22nd meeting in Singapore on April 6. The meeting was attended by representatives from the ASEAN Secretariat, International Monetary Fund, World Bank, Asian Development Bank, ASEAN +3 and Macroeconomic Research Office. The Vietnamese delegation to the event was led by Deputy Finance Minister Tran Xuan Ha. Chairing the function, Singaporean Finance Minister Heng Swee Keat said in his opening remarks that the ministers meet at a time of optimism for the regional economies. He quoted the International Monetary Fund data which show the ASEAN economy grew by 5.1 percent in 2017 and is expected to outstrip most other regions in 2018. However, the minister warned that the region is still facing challenges, including rising protectionism and trade tensions, which without good management can affect the bloc’s growth. He said in the context, … [Read more...] about ASEAN Finance Ministers’ Meeting opens in Singapore
Asia stocks back from the brink as Wall Street bounces
Asian share markets were trying to find their footing on Wednesday as a semblance of calm returned to Wall Street where major indices bounced into the black after days of deep losses. Analysts said distressed selling by leveraged funds looked to have run its course for the moment, allowing volatility to abate a little, though the prospect of monetary tightening across the globe remained a challenge for the long term. “The removal of stimulus in a measured way is a perfectly reasonable proposition, although it has yet again caught the unprepared by surprise,” said analysts at AMP Capital. “Given rates are going to rise in the Atlantic economies over the coming months, we may see further jitters.” In early trade, MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS had crept up 0.5 percent, recouping some of Tuesday’s 3.5 percent fall. That had been its biggest daily drop since August 2015. Australia's main index rallied 1.1 … [Read more...] about Asia stocks back from the brink as Wall Street bounces
BUSINESS IN BRIEF 9/1
Vingroup, T&T to develop urban railway projects in HanoiThe government of Hanoi City has proposed the Prime Minister allow Vingroup and T&T Group to develop three urban railway projects which the city plans to complete by 2025, Tuoi Tre newspaper reports.The two domestic investors will use their capital to make pre-feasibility studies for these projects.When the projects were announced, many investors expressed interest in Hanoi. However, only Vingroup and T&T Group have registered to take part.Both of them proposed implementing the projects in the build-transfer (BT) format. Particularly, Vingroup registered to build the 38.4-kilometer metro line No. 5 which connects Van Cao and Hoa Lac and metro line No. 2 from Tran Hung Dao to Thuong Dinh with a length of 5.9 kilometers. Meanwhile, T&T Group is keen on metro line No. 4 connecting Me Linh, Sai Dong and Lien Ha, and measuring 54 kilometers in length.The two investors said they would use their own finances to study the … [Read more...] about BUSINESS IN BRIEF 9/1
ASEAN nations mull using own currencies for intra-bloc trade
ASEAN nations mull using own currencies for intra-bloc tradeConsensus reached on ASEAN credit guarantee investment facility By Hong Phuc - The Saigon Times DailyHANOI – ASEAN central bankers sat down together in Hanoi on Wednesday to discuss an initiative to use Southeast Asian currencies for intra-bloc trade payment.The participants centered their talks on the viable payment models for intra-bloc trade that are in place in a number of countries and regions in the world, according to statements from Vietnam’s ministries of foreign affairs and finance.ASEAN central bankers highlighted the positive impacts of using the ASEAN countries’ currencies for trade payment on the region. This will spur trade and investment activity, reduce risks associated with the foreign currencies now in use for trade payment, cut transaction costs, step up development of regional financial markets, and encourage investment of currency reserves in regional financial markets, they said.More … [Read more...] about ASEAN nations mull using own currencies for intra-bloc trade