(VEN) - Aymar De Liedekerke Beaufort, who heads BNP Paribas in Vietnam, explained why the country was attractive to foreign banks, and how his bank has contributed to the nation’s growth. Bamboo Bike Cycling in Mekong Delta (CSR event of BNP Paribas Ho Chi Minh City Branch in 2017) Having been in Vietnam since 1989, what do you think about the development of the banking industry in the country? Tremendous efforts have been made by the State Bank of Vietnam over the past few years to improve the quality of the balance sheets of many commercial banks. The Vietnamese banking industry has therefore become healthier and is a key player in supporting Vietnam’s gross domestic product (GDP) growth. Credit growth is something we carefully look at and BNP Paribas Vietnam’s credit growth mirrored Vietnam’s significant 18 percent Credit Growth in 2017. The Vietnamese banking industry is very well positioned to implement and follow Basel II … [Read more...] about BNP Paribas accompanies banking development in Vietnam
Trade investments in balance sheet
Economic growth will likely hold up fairly well in the near term
With growth moderation likely in the second half of the year for exports, agriculture, and construction—and with continued contraction in mining—GDP growth for the whole year is now seen slightly lower than earlier forecast. As inflation is on an upward trend and unlikely to change course in the near term, inflation forecasts for this year and next are revised up. The current account surplus is forecast to narrow more than foreseen in April.Photo: tapchitaichinh.vnUpdated assessmentVietnam posted 7.1% GDP growth in the first half of 2018, up from 5.8% in the same period in 2017 (Figure 3.4.44). On the demand side, rising income lifted private consumption growth to 7.2% from 7.0% a year earlier. Private investment remained robust, supported by high credit growth and strong foreign direct investment (FDI).Exports of goods and services rose by 15.7% by volume in the first half of the year from 14.4% a year earlier. Strength in exports, domestic private consumption, and … [Read more...] about Economic growth will likely hold up fairly well in the near term
BUSINESS IN BRIEF 13/9
The 7th international exhibition on technology, equipment and solutions for electricity transmission and distribution (Electric & Power Vietnam 2018) opened in Ho Chi Minh City on September 12. Especially, it is organised in parallel with an international exhibition on renewable energy called “Renewable Energy Vietnam 2018”, contributing to promoting the development trend of electricity in the world. The exhibitions attracted 180 entities from 22 countries and territories across the world, including six groups of international booths supported by international associations such as the Indian Electrical & Electronics Manufacturers’ Association, and Germany’s Federal Ministry for economic Affairs and Energy. The events see big brands in energy and technology industry such as the East Sea Energy Environment Group, the Song La Technical Equipment Co., Ltd, and the Solar Energy. According to BT Tee, General Director of UBM Vietnam, the … [Read more...] about BUSINESS IN BRIEF 13/9
Tesla unveils Shanghai factory plans amid US China trade row
The Shanghai deal marks the biggest overseas foray yet for Tesla, which is looking to expand into global markets AFP/WANG ZHAO Musk said the plant, which has been in the works for a year, would eventually have an annual production capacity of 500,000 cars, and he hoped it would be "completed very soon." The announcement of the new Tesla venture comes as US companies face pressure from US President Donald Trump to keep manufacturing jobs at home, and as Beijing and Washington spar over terms of a trade in a fight that only last weekend significantly hiked the price of imported Teslas sold in China. Analysts noted that the announcement included no details about how much the plant would cost or how it would be financed. China already is the world's biggest electric car market and is expected to grow further due in part to favorable government policies for the environmentally-friendly vehicles. "Shanghai will be the location for the first Gigafactory outside the United States," Musk … [Read more...] about Tesla unveils Shanghai factory plans amid US China trade row
BUSINESS IN BRIEF 29/4
VN firms cosy up to Asia-Pacific partners Construction begins on TAFiCO’s second production line Maybank Kim Eng Securities ups capital Masan Group shareholders approve ambitious sales targets Honeywell opens first Asian cyber-security centre in Singapore Vinafood II starts trading on UPCoM Vinafood II was officially started trading on unlisted public company market (UPCoM) and registered to list 114.8 million shares with the code VSF, yesterday. Reference price on the first trading day was VND 10,100 per share, yesterday. In 2018, Vinafood II said it plans to speed up trade promotion program to food products, exploit large-scale trade markets such as China and Africa. Vinafood II’s representative affirmed this year sees its strong demand for exports. As per plan, Vinafood II will try the diversification of rice export markets, not to depend on the existing ones. It targets to … [Read more...] about BUSINESS IN BRIEF 29/4
Foreign bankers reconsidering local partnerships
More than a decade after Vietnam tried to increase the efficiency of local banks without disrupting the human capital and knowledge embedded in existing structures, under a policy of “strategic partnerships”, divestitures of minority stakes in important local banks by several foreign investors last year put an end to the hotly-debated policy. Despite the shifts in mission among these foreign lenders, with their long-term commitments reportedly remaining unchanged, consecutive divestments by foreign banks in a single year raised many questions, especially when the easing of restrictions on foreign bank ownership and the positive track taken towards resolving bad debts added to the dynamism in Vietnam’s banking sector over recent years. Illustrative photo Different tastes Vietnam has seen a growing number of foreign banks withdraw from its under-banked economy, the latest indication that all might not be as well as bankers often claim. Last July, the … [Read more...] about Foreign bankers reconsidering local partnerships
Domestic lenders reclaim financial trust
Reclaiming the crownIn recent months, stocks of Vietnamese banks have earned significant attention thanks to their renewed appeal with foreign investors.Most recently, Ho Chi Minh Development Bank – HDBank – raised $300 million from international investors, after selling shares to existing investors through the book-building method.The $300 million HDBank deal was the second-largest ever in the Vietnamese banking sector, just below Vietcombank’s $460 million deal in 2007. The number of registered purchases tripled the amount of shares on offer, similar to the heavily-subscribed deal of VPBank last May. Following the share sale, HDBank made its debut on the Ho Chi Minh Stock Exchange last Friday, hitting the price ceiling on the first trading day.Late last year, the Holland-based PYN Elite Fund spent $40 million on 4.99 per cent of TPBank’s shares, making its first foray into the domestic banking sector. Last October, Vietnam Opportunity Fund (VOF), managed … [Read more...] about Domestic lenders reclaim financial trust
Gov’t figures out key tasks for 2018 (part I)
The following is the first part: STT Tasks Line ministries Coordinators Deadlines I Enhancing macro-economic stability, controlling inflation, ensuring major balances of the economy, accelerating fast and sustainable growth 1 Comprehensively and flexibly regulate monetary tools to stabilize the monetary market, contributing to control inflation and create favorable conditions for credit organizations to reduce lending rates The State Bank of Viet Nam … [Read more...] about Gov’t figures out key tasks for 2018 (part I)
Vietnamese Businesses Lose More If Brand Equity Is Undervalued
Brand is an intangible asset of a business, plays an important role in success and helps the business create distinct values. In the world, brand valuation has existed for nearly 50 years. In Vietnam, however, brand valuation is only spontaneous and parties concerned agree on transactions without sticking to international financial standards. Urgent need Mr Vu Ba Phu, Director of the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade, said, brand valuation is now a necessary activity and a priority for each enterprise. Brand valuation according to financial standards is very important, helping reduce budget loss to the State Budget in the course of equitisation and mergers and acquisitions. Even franchising also needs to have brand value recognised to further grow up. The United States-based McDonald's or Australia-based Gloria Jeans are prime examples of brand value, which account for more than 70 per cent of the company’s total … [Read more...] about Vietnamese Businesses Lose More If Brand Equity Is Undervalued
Fitch downgrades Vietcombank, ACB on strong credit growth
By Thu Thuy - The Saigon Times Daily HCMC – Bank for Foreign Trade of Vietnam (Vietcombank) and Asia Commercial Bank (ACB) have seen their rating downgraded to ‘D/E’ from ‘D’ by the international credit rating agency Fitch, which cited risks related to strong credit growth.Fitch in its statement says that the downgrade reflects Vietcombank’s substantially weakened balance sheet arising from excessively strong loan growth and fragile underlying loan quality. Furthermore, Fitch believes Vietcombank’s individual rating remains under pressure, due to increasing risk of high credit costs arising from underlying weak loan quality and limited capitalization. Also, Fitch expects Vietcombank, along with other local banks, to continue facing a difficult environment, particularly given the Vietnamese Government’s weakening ability to manage inherently volatile market conditions when needed. Vietcombank reported loan growth of 26% in 2009, which … [Read more...] about Fitch downgrades Vietcombank, ACB on strong credit growth