BIDV, Vietnam's biggest bank by assets, has approved the issuance of 400,000 bonds to raise VND4 trillion ($170.5 million), of which VND3 trillion ($127.88 million) are in 7-year bonds and VND1 trillion ($42.62 million) in 10-year bonds. Previously, the State Bank of Vietnam had allowed BIDV to issue a maximum of VND20 trillion ($852.59 million) worth of bonds this year. Similarly, Vietcombank, the third largest bank in the country by assets, has successfully raised VND550 billion (23.44 million) through the issuance of individual bonds at VND100,000 ($4.26) per bond. The bonds mature in six years, and carry a 7.4-percent annual interest rate. Among many other banks that have raised capital through bonds in 2018 is VietinBank, which has successfully completed a second bond issue this year, raising VND450 billion ($19.18 million) from 2-year bonds with fixed 6-percent interest. Last July, VietinBank, the country’s second largest lender by assets, … [Read more...] about Vietnamese banks issue bonds galore as credit demand rises
Vietcombank ho chi minh city branch
BNP Paribas accompanies banking development in Vietnam
(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
BUSINESS IN BRIEF 22/6
VN Central Bank asks banks to rectify hotline issues The State Bank of Viet Nam (SBV) has asked banks to provide enough switchboard operators and improve technical infrastructure to process complaints efficiently. The SBV said it found through monitoring that the hotlines of some banks were not operating effectively, making it very difficult for customers and cardholders to request assistance in emergency cases. This has been a cause for concern and has been reported in different forms of mass media. In order to ensure the quality of services, the State Bank has required banks to address the issue to promptly receive and handle the inspection and complaints of customers. Banks must take the initiative in explaining and promptly responding to opinions expressed on mass media regarding the quality of card payment services to avoid pulling down consumer trust in the quality of payment services offered by banks and the development of non-cash payment regulations by the … [Read more...] about BUSINESS IN BRIEF 22/6
Eximbank embattled after scandals
Eximbank has lost a great deal of trust from customers and shareholders, as some demand the board to step down Loss of reputation At last week’s annual general shareholders meeting, shareholders of Eximbank expressed their disappointment at the bank’s recent crises. According to the investors, the troubled bank has tainted its long-standing reputation by allowing dishonest staff members to steal depositors’ money over a prolonged time period. In particular, Chu Thi Binh lost VND245 billion ($10.8 million) of her savings in two years, and six customers in the central province of Nghe An saw VND50 billion ($2.2 million) of their deposits evaporate. Another customer recently accused the bank of stealing three taels of gold. “How can you ask shareholders now to pay for your serious oversights?” a furious shareholder asked the board. Another investor wanted the board members to resign and take full legal responsibility for the cases. Shareholders are also … [Read more...] about Eximbank embattled after scandals
BUSINESS IN BRIEF 1/5
Superdry looking at good prospects in Hanoi As fast-fashion branches are developing stably in Hanoi due to avid interest from young consumers, diversified designs, and reasonable prices, the latest branch entering the Vietnamese market—UK-based Superdry may not need to worry about purchasing power after its successful opening today. In the morning of April 21, the Superdry fashion store in Hanoi welcomed hundreds of visitors and shoppers to celebrate its official opening day. People, especially young people, excitedly lined up to buy their first Superdry productsin the Hanoi store and win attractive gifts from the retailer. Besides, the opening ceremony attracted famous actors and models, including stylist Hoang Ku, and models Huu Vi and Cao Minh Thang. Numerous people stated that before Superdry arrived to Vietnam, they had to order products online from overseas. They were enchanted by the exciting contemporary brand which focuses on high-quality products that fuse vintage … [Read more...] about BUSINESS IN BRIEF 1/5
BUSINESS IN BRIEF 15/4
Saigon Co.op to open 50 more convenience stores Saigon Co.op, the country’s leading retailer, will open an extra 50 Cheers in convenience stores in HCMC in partnership with NTUC FairPrice of Singapore this year, said Nguyen Thanh Nhan, general director of Saigon Co.op. At a 2017 review meeting of Saigon Co.op last week, Nhan said Cheers stores would sell household and consumer goods and operate 24/7. In HCMC, there are already two Cheers stores. Besides Cheers, Nhan said this year Saigon Co.op would open 19 more Co.opmart supermarkets, two more Co.opXtra stores, 150 more Co.opSmile shops and at least one more Co.opmart hypermarket in a high-end residential area. To maintain its position as Vietnam’s leading retailer, Saigon Co.op must focus on expanding the retail network, diversifying products and developing logistics, said Nhan. Saigon Co.op is expected to achieve a 10% increase in total revenue. A report released at the meeting showed that in 2017 Saigon Co.op made some … [Read more...] about BUSINESS IN BRIEF 15/4
Hoa Lam Corporation sells LIM II Tower for $61.4 million
Vietnam Thuong Tin Commercial Joint Stock Bank (Vietbank) plans to spend VND1.4 trillion ($61.4 million) acquiring LIM II Tower in Ho Chi Minh City’s District 3 from Hoa Lam Corporation, according to the bank’s documents prepared for its 2018 shareholders’ meeting. If the plan is approved, an acquisition deal between Vietbank and Cho Dui Co., Ltd., a member of Hoa Lam Corporation and developer of LIM II Tower, shall be concluded in the second half of the year. Hoa Lam Corporation sold LIM 2 tower with $61.4 million Tran Thi Lam, chairwoman of Hoa Lam Corporation, is the wife of Duong Ngoc Hoa, chairman of Vietbank. LIM II Tower is constructed on an area of nearly 2,200 square metres. The building consists of 18 levels, including four floors for commercial business, 13 floors of office space, a rooftop, and three basements for parking and other facilities. The 6,255sq.m basement can accommodate about 120 cars, providing safety and convenience for clients. The … [Read more...] about Hoa Lam Corporation sells LIM II Tower for $61.4 million
BUSINESS IN BRIEF 26/3
HCM City to host food ingredients expo The 2018 Food Ingredients Vietnam to be held in HCM City in May will showcase a large variety of food and beverage ingredients and natural ingredients. The exhibition has attracted more than 140 exhibitors from many countries and territories, Rungphech (Rose) Chitanuwat, business director of UBM Asia, the organiser, said. The expo would also feature international conferences and professional seminars, and link up businesses, she said. With more than 93 million people, of whom more than half are under 30 years of age, Việt Nam is one of the most promising food and beverage consumption markets in the region, and has a diverse range of raw materials for food and beverages, she said. Speaking at a press conference in HCM City on March 22 to introduce the expo, Ly Kim Chi, chairwoman of the Food and Foodstuff Association of HCM City, said the country’s food and beverages sector has enjoyed strong growth in recent years. The market is … [Read more...] about BUSINESS IN BRIEF 26/3
BUSINESS IN BRIEF 14/1
Pepper growers concern about falling pricesPepper growers are entering the harvest season of 2018 in the southeastern region of Vietnam, concerning about price fall and output reduction because of pests and diseases.Traders now pay VND65,000-66,000 a kilogram of pepper, accounting for half of the price in the same period last year.Long lasting rains last year created conditions for pests and diseases to attack pepper crop, resulting in output drop this year.According to statistics, high pepper prices in previous years sent farmers to expand farming area to 40,100 hectares in Ba Ria-Vung Tau, Dong Nai and Binh Phuoc provinces in 2017. The area far exceeds the plan of 12,800 hectares by 2020 of the Government.That has broken supply and demand balance causing continuos price reductions for the last two years. Enterprises develop fast in number, efficiency low: economic survey 2017Data from economic survey of HCMC 2017 showed that although the number of enterprises quickly develops, their … [Read more...] about BUSINESS IN BRIEF 14/1
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