The government would sell banks it has acquired to foreign investors based on the Law on Credit Institutions, he told a forum on mergers and acquisitions held in HCMC on Wednesday. On the list are Oceanbank, Vietnam Construction Bank, and Global Petro Commercial Joint Stock Bank. Many investors have expressed interest in this new policy, he said. The restructuring of the financial-banking industry has helped reduce its bad debts from 10.08 percent in early 2016 to 6.9 percent last June, and the government continues to encourage the acquisition of small banks and credit institutions by large banks. “The number of credit institutions in Vietnam is still too high and we need to restructure the system,” Hue said. The government plans to let the Vietnam Bank for Agriculture and Rural Development (Agribank), the only 100 percent state-owned lender, launch an initial public offering next year. The Bank for Investment and Development of Vietnam JSC (BIDV) and Joint Stock Commercial … [Read more...] about Vietnam clears decks for foreign acquisition of weak banks
Private banking industry
Credit Suisse named Vietnam’s Best Investment Bank for ninth time
Credit Suisse has been named Vietnam’s Best Investment Bank at the Euromoney 2018 Awards for excellence and best international investment bank at the FinanceAsia 2018 Country Awards, both for the ninth time. Euromoney also recognised Credit Suisse as Asia’s Best Investment Bank for the first time. Credit Suisse received the coveted title for the ninth time in Vietnam Commenting on the awards, Helman Sitohang, Credit Suisse CEO for Asia Pacific, said: “These accolades are a testament to Credit Suisse’s position as the trusted bank for entrepreneurs in Asia Pacific. I am delighted that we are the only bank over the last two years to have been recognised as the Best Investment Bank, Financing House and Wealth Manager in Asia. These strengths are core to delivering holistic advisory and solutions that meet the wealth and corporate interests of clients in the region. Our clients’ confidence in Credit Suisse is reflected in these awards, and … [Read more...] about Credit Suisse named Vietnam’s Best Investment Bank for ninth time
Banks post impressive profit growth in H1 2018
Many banks have reported impressive profit growth in the first half off 2018, compared to the same period last year, thanks to the high credit growth and the improvement from the retail banking segment. Nghiem Xuan Thanh, chairman of State-owned Vietcombank, said that by the end of June, his bank surpassed half of the profit target set for the year. In the first half of this year, Vietcombank’s pre-tax profit rose to more than VND7.72 trillion (US$340 million), up 52.7 per cent year-on-year and equivalent to 55.2 per cent of the bank’s annual target. Vietcombank’s other financial indicators of net interest margin (NIM), return on average asset (ROAA) and return on average equity (ROAE) also improved sharply against 2017. Accordingly, VCB’s NIM reached 2.76 per cent, ROAA 1.24 per cent and ROAE 22.71 per cent. Pham Manh Thang, deputy general director of Vietcombank, said that taking into account Vietcombank’s business performance in the first six months and … [Read more...] about Banks post impressive profit growth in H1 2018
Clean-up makes VN banks attractive to foreign investors
In December Hồ Chí Minh Development Joint Stock Commercial Bank (HDBank) had sold stakes to more than 76 foreign investors before listing.— Photo ndh.vn Since last year there has been a churn in the banking sector with some foreign investors selling their stakes in local banks and others buying in. France’s BNP Paribas, HSBC and Australia’s Commonwealth Bank have been among those pulling out. ANZ sold its retail banking division to Korea’s Shinhan Bank and Standard Chartered Bank sold its entire 8.75 per cent stake in Asia Commercial Bank. Analysts said foreign banks are merely pulling out to invest in more profitable markets. Some pointed out that Asian banks which enter Viet Nam seem to be more successful than their western counterparts. They attributed this to their better understanding of the local market and business culture. But even in the case of western funds, the flow is not one-way: Just this month Viet Nam Technological and Commercial … [Read more...] about Clean-up makes VN banks attractive to foreign investors
Clean-up makes Việt Nam banks attractive to foreign investors
In December Hồ Chí Minh Development Joint Stock Commercial Bank (HDBank) had sold stakes to more than 76 foreign investors before listing.— Photo ndh.vn by Thiên Lý Since last year there has been a churn in the banking sector with some foreign investors selling their stakes in local banks and others buying in. France’s BNP Paribas, HSBC and Australia’s Commonwealth Bank have been among those pulling out. ANZ sold its retail banking division to Korea’s Shinhan Bank and Standard Chartered Bank sold its entire 8.75 per cent stake in Asia Commercial Bank. Analysts said foreign banks are merely pulling out to invest in more profitable markets. Some pointed out that Asian banks which enter Việt Nam seem to be more successful than their western counterparts. They attributed this to their better understanding of the local market and business culture. But even in the case of western funds, the flow is not one-way: Just this month … [Read more...] about Clean-up makes Việt Nam banks attractive to foreign investors
Banking sector sees bright prospects
As Viet Nam struggles under the weight of its bad debts, it has improved its legal framework to handle the situation. By issuing a resolution (42/2017/QH14), the first-ever on the settlement of non-performing loans (NPLs), it has adopted a pragmatic solution to handle bad debts. CEO of HSBC Bank Viet Nam, Pham Hong Hai, spoke to Viet Nam News reporter Nguyen Linh Anh about the effectiveness of the resolution.Last year the Government issued a resolution on the settlement of non-performing loans to pilot the settling of the bad debt of credit institutions. Do you think it can thoroughly deal with bad debt in future?Resolution 42 demonstrates the determination of Viet Nam Government to resolve the long standing NPL issue. The resolution provides ways to remove several legal barriers dealing with NPLs and debt collaterals at banks. Resolution 42 also helped change the mindset of some borrowers who were less collaborative with banks in resolving bad debts.They now understand banks have the … [Read more...] about Banking sector sees bright prospects
Central bank to up inspection: PM
At the January 9 meeting to review last year’s performance and prepare for implementing tasks in 2018, the PM also instructed the banking industry to boost the restructuring of ailing credit institutions. Besides ensuring the consumer price index of below 4 percent, the SBV must also further cut lending interest rate and boost consumer lending this year, Phuc said. He also required the central bank to create favourable conditions for local commercial banks to enhance financial status and operational efficiency, aimed at having a Vietnam bank, either State-owned or private, at the regional level soon. The Prime Minister has so far entrusted two deputy prime ministers of Vuong Dinh Hue and Trinh Dinh Dung as well as the SBV to scrutinise the forecast for the real-estate market after 2019 to help the Government actively have suitable policies for the market. The SBV also needs to soon have regulations to manage the cryptocurrency as instructed by the Government, Phuc … [Read more...] about Central bank to up inspection: PM
Central bank must enhance inspection: PM
Prime Minister Nguyen Xuan Phuc on Tuesday required the State Bank of Viet Nam (SBV) to enhance inspection and supervision to ensure the safety of the banking system and increase the confidence of people in the system in 2018.At yesterday’s meeting to review last year’s performance and prepare for implementing tasks in 2018, Phuc also instructed the banking industry to boost the restructuring of ailing credit institutions.Besides ensuring the consumer price index of below 4 per cent, the SBV must also further cut lending interest rate and boost consumer lending this year, Phuc said.He also required the central bank to create favourable conditions for local commercial banks to enhance financial status and operational efficiency, aimed at having a Viet Nam bank, either State-owned or private, at the regional level soon.The Prime Minister has so far entrusted two deputy prime ministers of Vuong Dinh Hue and Trinh Dinh Dung as well as the SBV to scrutinise the forecast for the … [Read more...] about Central bank must enhance inspection: PM
Banking sees good growth
Banking sees good growthDung calls for banks to boost lendingBy Hong Phuc - The Saigon Times DailyHANOI, HCMC – The banking industry has made good growth this year despite internal and external challenges, said the State Bank of Vietnam in a conference on 2009’s tasks for the banking sector in Hanoi on Tuesday.The total amount of outstanding loans in the whole system has increased by 21%-22% compared with late 2007, with credits for the local private sector increasing the fastest, central bank governor Nguyen Van Giau said.Credits for the local private sector surges 35%-37% while that for State-run enterprises rises by 12%-14%.The central bank said loans for exporters regardless of economic sector has increased by 35%-37%, while capital for production and agriculture sectors has increased by 34%-36% and 30% respectively. Anti-poverty programs The overall money supply, according to the central bank, has risen by 16%-17% this year. Besides, the inter-bank rate average ups … [Read more...] about Banking sees good growth
Applying robust risk management to the banking industry: Thailand’s case study
Participants to the seminar “Managing Distressed Assets: Learning from the Past, Progressing toward the Future” jointly organized by Viet Nam Asset Management Company (VAMC), and Thailand’s KASIKORNBANK (KBank). Photo: VGP The information was provided at the seminar “Managing Distressed Assets: Learning from the Past, Progressing toward the Future” which was co-organized by Viet Nam Asset Management Company (VAMC), and Thailand’s KASIKORNBANK (KBank) with the main objective to seek for effective solutions to help improve the overall performance of banking sector in Viet Nam by leveraging Thailand’s experience in dealing with the Asian financial crisis in 1997 as the case studyA representative of VAMC said non-performing Loans (NPLs) at commercial banks has been kept under control at around 3% as reported (excluding those unsettled bad debts sold to VAMC, and problem loans at credit institutions). With the … [Read more...] about Applying robust risk management to the banking industry: Thailand’s case study