Amid complicated developments of the China-United State trade war and gloomy global economic growth, the Vietnam’s economy was a highlight among emerging economies. Macroeconomic stabilizing achievements in the period of 2016-2017 continued to be maintained with high growth, inflation being controlled, stable exchange rate and increasing foreign exchange reserves thanks to effort to reform and improve investment environment. Contributing to these successes, the financial system not only ensured its function to provide capital for the economy, support growth and effectively serve economic restructuring but also developed rapidly, healthily and securely. By the end of 2018, total asset of financial institutions in Vietnam was roughly VND11.4 quadrillion, or 203 percent of gross domestic product. The role of non-bank financial institutions in financial system improved with growth of total assets of non-bank financial institutions reaching an average of 25 percent per annum in the … [Read more...] about Financial market restructuring
Financial market
Draft Brexit deal ends Britain”s easy access to EU financial markets
The United Kingdom and the European Union have agreed on a deal that will give London's vast financial center only a basic level of access to the bloc's markets after Brexit. Flags flutter in the wind with the financial district in the background, in London The agreement will be based on the EU's existing system of financial market access known as equivalence — a watered-down relationship that officials in Brussels have said all along is the best arrangement that Britain can expect. The EU grants equivalence to many countries and has so far not agreed to Britain's demands for major concessions such as offering broader access and safeguards on withdrawing access, neither of which is mentioned in the draft deal. "It is appalling," said Graham Bishop, a former banker and consultant who has advised EU institutions on financial services. The draft text "is particularly vague but emphasizes the EU's ability to take decisions in its own interests. … This is code for the … [Read more...] about Draft Brexit deal ends Britain”s easy access to EU financial markets
Forum discusses solutions to expand capital-financial market
Deputy Prime Minister Vuong Dinh Hue speaks at the forum in Hanoi on August 21 (Photo: VNA) Hanoi (VNA) – Officials and experts talked challenges and solutions to expand the capital – financial market of Vietnam at a forum in Hanoi on August 21. Addressing the event, part of the Vietnam Economic Forum, Deputy Prime Minister Vuong Dinh Hue said it is necessary to look into the imbalance between the credit market and the capital market, between credit and other added services in banks’ credit activities, and between the short-term and long-term markets, particularly the bond market. He cited the figure of 53 percent of businesses operating unprofitably as of the end of 2016, saying that one of the reasons for this is the lack of capital. Many companies depend on bank loans to operate, so their financial expense is very high, plus other high expenses like market access and logistics costs, which hampered their business performance, the Deputy PM said. Deputy … [Read more...] about Forum discusses solutions to expand capital-financial market
RoK firms increase investments in Vietnam’s financial market
Woori Bank - Illustrative image (Source: Internet) Hanoi (VNA) - Institutions from the Republic of Korea (RoK) have increased their investments in Vietnam’s financial market significantly, expecting to make big gains thanks to the economic growth outlook. The investments are poured through the acquisition, capital contribution or comprehensive co-operation agreements with local financial companies and banks. Besides the two fully foreign-owned Shinhan Bank and Woori Bank in Vietnam, many other major RoK banks have also set up branches and representative offices in the country, such as KEB Hana, Industrial Bank of Korea, Kookmin, Busan and Nonghyup. Early this month, the Hana Financial Group was the latest case of the RoK’s financial institutions to expand business in Vietnam by acquiring a stake in the Bank for Investment and Development of Vietnam (BIDV), according to Business Korea. The Korean business portal quoted a local financial official that KEB Hana Bank was … [Read more...] about RoK firms increase investments in Vietnam’s financial market
VN firms seek investments from London financial market
A conference on financial investment promotion in Vietnamese enterprises was also held in London on March 7. (Source: VNA) London (VNA) – Vietnamese Ambassador to the UK Tran Ngoc An and representatives from the Ho Chi Minh Stock Exchange and Vietnamese businesses on March 7 attended the opening session of the London Stock Exchange, one of the largest stock markets in the world. This was one of the activities organised in the UK on March 7 and 8 to introduce Vietnam’s capital market and opportunities for financial investments in Vietnamese companies. A conference on financial investment promotion in Vietnamese enterprises was also held on March 7, during which the ambassador briefed participants on Vietnam’s economic achievements and potential. He stressed that with the determination of the Vietnamese Government, 2018 is expected to be a key year for the equitisation of major domestic enterprises, adding that the number of equitised firms in the year may … [Read more...] about VN firms seek investments from London financial market
Committee urged to focus proposals on macro economy, financial market
Prime Minister Phuc presents the third-class Labour Order to the National Financial Supervisory Committee. (Source: VNA) Hanoi (VNA) – Prime Minister Nguyen Xuan Phuc has asked the National Financial Supervisory Committee to coordinate with competent ministries and agencies to give proposals to the Government and the PM on major economic issues, especially those regarding the macro economy and financial market supervision. Addressing a ceremony marking the 10th anniversary of the committee in Hanoi on March 6, PM Phuc said the committee should focus on analysing the situation, particularly potential risks to the financial market, and activities of the banking, stock, insurance and real estate markets. He urged the committee to propose suitable policies and solutions, including risk identification tools and criteria assessing the safety of the financial system, given the fact that many countries in the world have effectively applied the early warning system of … [Read more...] about Committee urged to focus proposals on macro economy, financial market
Vietnam seeks to learn from foreign stock markets
The Vietnamese stock market is an important medium- and long-term capital mobilization channel for the economy, attracting the participation of many foreign investors and organizations.According to an analysis by the National Financial Supervisory Commission (NFSC) in its latest report on Vietnam’s economy, the net buying value of foreign investors on the stock market was estimated at US$343 million in November. In the first 11 months of the year it reached US$1.77 billion, a six-fold increase compared to the same period in 2016.Deputy Minister of Finance Tran Xuan Ha said the size of the Vietnamese stock market has not met its potential. The Ministry of Finance and the State Securities Commission of Vietnam plan various measures to promote the restructuring of the domestic stock market, such as improving the quality of listed shares, restructuring securities companies towards enhancing financial capacity and service quality, and unifying the stock market. Cooperation with … [Read more...] about Vietnam seeks to learn from foreign stock markets
Even with a stable market, FX hedging is advised
It’s better to hedgeHedging the foreign exchange (FX) risk arising from transactions in foreign currencies is not a new practice for many multinational companies, investors, exporters, and importers in Vietnam. When it comes to choosing a bank to handle large-scale transactions to support the merger-and-acquisition, investment, and business activities for these institutions, the capability and creditability of the party that carries the risk make a difference.ANZ Vietnam has emerged as a market leader with large FX volume trading with clients. The bank is a major participant in the local FX market, where it provides an extensive range of foreign exchange solutions to its clients, including spots, forwards, swaps, and options.“We have active dialogues with our clients to understand their risks and identify the suitable product that can help them hedge their currency exposure at reasonable costs, and we work with them to ensure that the transaction follows regulatory … [Read more...] about Even with a stable market, FX hedging is advised
Korean group told to focus on financial investment in Vietnam
Deputy PM Hue told his guest that Vietnam always welcomes RoK investors, including Keb Hana, to invest in a financial market in the country, adding that the group can also get involved in the restructuring of banks.The Vietnamese Government's decision to expedite the restructuring of the banking-financial systems in 2018 is seen as a good opportunity for financial groups such as Keb Hana, Hue said.The Deputy PM extolled the cooperation between Keb Hana and the Bank for Investment and Development of Vietnam (BIDV) while mentioning great potential for their stronger partnership in Fintech and mobile payment in Vietnam. Vietnam is seeking to develop its infrastructure through public-private cooperation forms, and hopes that Keb Hana can make direct or indirect investment in this area, he noted.Chairman Kim Jung Tai applauded the stable and constantly improved business environment in Vietnam and revealed that his group will invest directly or make investment via funds … [Read more...] about Korean group told to focus on financial investment in Vietnam
Korean group urged to focus on financial investment
Deputy PM Hue told his guest that Vietnam always welcomes RoK investors, including Keb Hana, to invest in a financial market in the country, adding that the group can also get involved in the restructuring of banks.The Vietnamese Government's decision to expedite the restructuring of the banking-financial systems in 2018 is seen as a good opportunity for financial groups such as Keb Hana, Hue said.The Deputy PM extolled the cooperation between Keb Hana and the Bank for Investment and Development of Vietnam (BIDV) while mentioning great potential for their stronger partnership in Fintech and mobile payment in Vietnam. Vietnam is seeking to develop its infrastructure through public-private cooperation forms, and hopes that Keb Hana can make direct or indirect investment in this area, he noted.Chairman Kim Jung Tai applauded the stable and constantly improved business environment in Vietnam and revealed that his group will invest directly or make investment via funds … [Read more...] about Korean group urged to focus on financial investment