Governor of the State Bank of Vietnam Le Minh Hung (Photo: VNA) Hanoi (VNA) – The State Bank of Vietnam (SBV) obtained a large amount of foreign currencies in the first half of 2019, pushing foreign exchange reserves recorded in the period to the highest level to date. The information was released by SBV Governor Le Minh Hung at a regular Government teleconference with 63 provinces and cities nationwide in Hanoi on July 4. Hung said fluctuations in the global market in the first six month were unpredictable but proactive and flexible measures had been taken to keep the domestic foreign exchange market stable. During the period, the reference exchange rate was adjusted by 1 percent, while the rate listed at commercial banks and inter-bank rate were adjusted by 0.3 – 0.4 percent. He stated the central bank has all necessary tools to effectively control the rate. He noted since the beginning of the year, the four commercial banks – Vietcombank, Vietinbank, … [Read more...] about Forex reserves reach highest level to date
Market year to date
Recap: 2018 proves a year to remember
Viet Nam News The year 2018 has been a highlight of Việt Nam’s efforts to realise a number of important objectives set out by the Government such as keeping inflation in check, boosting economic growth and improving national product quality and competitiveness. All these targets were accomplished to the backdrop of an increasingly complex international commerce scene. Key policies issued and implemented by the Government have helped bolster the economy’s ability to adapt and stabilise the macroeconomic environment to further the country’s socio-economic development. New President Newly-elected President Nguyễn Phú Trọng was sworn in to take office in October after being approved by the National Assembly. Trọng, who is also the General Secretary of the Communist Party of Việt Nam, will serve as the President for the 2016-21 tenure. Socio-economic development A PetroVietnam worker carries out maintenance at a facility in … [Read more...] about Recap: 2018 proves a year to remember
Investors should remain calm, says market regulator
Mid- and long-term prospects are still good, says the State Securities Commission As the VN-Index tumbles again and reaches the new low at 906 points, market regulators have issued advisory messages for investors. According to Tran Van Dung, the Vietnamese market still has tremendous potential in the mid- and long-term, and investors should not overreact to global volatilities. On July 3, the VN-Index lost 41 points to land at the 906 mark, continuing its losing streak. Can you explain the reasons for this ongoing fall? Since the end of last year, we have been worried about two risks that can have a double impact on the Vietnamese market: possible rate hikes by the US Federal Reserve and global trade tensions, especially between the US and China. Both of these risks materialised in June: On the 13th, the Fed announced a rate hike and more increases are set to follow within the year. At the same time, trade tensions between the US and China and Europe also had a negative impact on … [Read more...] about Investors should remain calm, says market regulator
Bancassurance to boost bank profits
Partnerships with insurance firms are expected to bring in a huge amount of cash for Vietnamese banks, who want to diversify their non-interest income. Bancassurance is expected to help banks in diversifying their profits Photo: Le Toan Graph: Huy Pham As Vietnamese banks look to expand their business beyond the usual credit activities, shaking hands with insurance firms seems to be a good option. The practice, called bancassurance, involves a bank distributing insurance products to its own network of customers and sometimes even developing a joint financial product with the insurer. The banks earn a commission every time their customers sign an insurance contract, adding to their income. According to SSI Research, Techcombank is currently the king of bancassurance in Vietnam, taking up 23.1 per cent of the market share for this distribution channel. The 2017 annual report of the bank shows that its annual premium equivalent for bancassurance products reached VND649 … [Read more...] about Bancassurance to boost bank profits
HCMC retail market grows strongly
HCMC retail market grows strongly Customers are seen shopping at a Co.opmart supermarket in HCMC. The HCMC retail market has grown strongly in the year's first half - PHOTO: THANH HOA HCMC - Goods retail sales in HCMC in the first half of the year are expected to grow 13% year-on-year to an estimated VND329 trillion (US$14.4 billion), accounting for over 65% of the city’s total goods and service retail revenue, Phap Luat newspaper cited a report by the municipal Department of Industry and Trade. The strong growth of the city’s retail market has created numerous opportunities for local producers and suppliers. Nguyen Phuong Dong, deputy director of the HCMC Department of Industry and Trade, said this year to date has not seen goods scarcity and price surge, except for the pork price that has increased to VND40,000-45,000 per kilogram over the past two months as farmers have scaled down pig farming. The department has implemented a price stability program and a … [Read more...] about HCMC retail market grows strongly
Gov’t asked to help automakers overcome difficulties
The concerns were raised after the businesses received a Government document instructing relevant ministries and agencies to build technical barriers to control the quality of imported vehicles. Businesses recommended that the Government maintain stable long-term policies for them to assure future investment in Vietnam. Auto businesses are concerned about Vietnam’s future policy orientation with regard to the auto industry, which they think will affect their business strategy. Photo: thanhnien.vn The request was sent to the Government after an inter-sector auto inspection team worked with 17 auto importers and locally-assembled manufacturers to solve issues while implementing the Government’s decree on car manufacturing, assembly, importation and warranty offering - a move that came into effect from January 1, 2018, and tightened car imports. Enterprises must now receive vehicle type approval (VTA) certification when importing cars from the authorities of … [Read more...] about Gov’t asked to help automakers overcome difficulties
Binh Thuan seeks to woo Russian tourists
Binh Thuan seeks to woo Russian touristsDao Loan By Dao Loan - The Saigon Times Daily HCMC – Many hotels and resorts in the south-central province of Binh Thuan are offering price discounts to attract Russian travelers who have suspended or aborted their travel plans due to the strong devaluation of the rouble against the U.S. dollar. The Binh Thuan Tourism Association has called for hotels and resorts to lower their prices by at least 10% for guests, particularly from Russia. In addition to this, a number of local hotels and resorts have launched their own promotions. Nguyen Van Khoa, chairman of the association, said many hotels and resorts such as Oriental Pearl, Sea Horse, Muine De Century, The Cliff, Muine Bay, Ocean Star, Pandanus, Rock Water Bay, Park Diamond, Muine Ocean, Blue Ocean, Little Muine, Dynasty, Sea Gull, Ca Ty and Minh Hung have agreed to partner with travel agencies to cut prices. Some hotels earlier reduced their prices but failed to draw back Russian guests … [Read more...] about Binh Thuan seeks to woo Russian tourists
Market predicted to seesaw this week
Market predicted to seesaw this weekPhuong Thao By Phuong Thao - The Saigon Times Daily HCMC - Securities firms have predicted the market would seesaw in a narrow range this week or drop slightly on profit taking. Last Friday, profit takers were quite active but bids were strong enough to help the VN-Index close up 0.74% at 589.35. Meanwhile, trading value improved by 25% from the previous session thanks to sizeable put-through transactions accounting for 27% of the total trading value, including 5.5 million shares of VIC and 5.1 million shares of GMD. Large-caps such as VNM, BVH, GAS, VIC and FPT made the biggest contribution to the VN-Index’s gain. Viet Capital Securities Company said that talks on Vinamilk's (VNM) upcoming bonus share issuance at 5:1 ratio emerged, which was the major reason behind the ticker’s positive performance. "We talked to Vinamilk and found out that the ex-dividend date would be August 15 as proposed in a public filing back in May," the firm said … [Read more...] about Market predicted to seesaw this week
SOE equitization to fuel M&A activity
SOE equitization to fuel M&A activity Phuong Lan By Phuong Lan - The Saigon Times Daily HCMC - Experts forecast equitizing hundreds of State-owned enterprises (SOE) between now and next year as ordered by the Government will lead to stronger merger and acquisition (M&A) activity in Vietnam. The M&A activity is also supported by State business groups and corporations required to divest from non-core business areas, including banking, real estate and securities investments. Experts said at Vietnam M&A 2014 Forum organized by the Ministry of Planning and Investment in HCMC last week that SOEs will provide the market with a huge amount of capital via their divestments of non-core investments and equitization, and these are great opportunities for investors. John Ditty, head of Advisory KPMG Vietnam and Cambodia, said equitizing State corporations, including MobiFone, Vietnam Airlines and Vinatex will spur the M&A market and open opportunities for private investors to … [Read more...] about SOE equitization to fuel M&A activity
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