Business Beat

Ten major banks, including Vietcombank, HDBank, MB, Vietinbank, BIDV, VIB and VPBank, have nearly reached their credit growth limits.— VNA/VNS Photo According to the General Statistics Office, as of September 20 the banking sector’s credit growth was 9.52 per cent, much lower than the 11.02 per cent rate recorded a year earlier. Analysts fear such a low rate means it will be difficult to achieve the full-year target of 17 per cent set by the State Bank of Viet Nam (SBV), especially when many major banks have almost used up their credit quotas. They said according to current regulations, SBV sets a credit growth limit for each commercial bank depending on the bank’s health at the beginning of the year with credit growth limits ranging from 12 to 14 and 16 per cent. This is done to control credit growth for the entire banking system and to support Government targets. Ten major banks, including Vietcombank, HDBank, MB, Vietinbank, BIDV, VIB and VPBank, have nearly … [Read more...] about Bank system’s credit growth target unlikely to be reached

The remittances come to Viet Nam mainly through four channels – banks, currently accounting for 72 per cent, economic organisations, customs agencies, and the postal system. — Photo vnexpress.net Overseas remittances to Viet Nam are expected to decline mainly due to global factors. Analysts said they include US President Donald Trump’s anti-immigrant policies, the US Federal Reserve’s policy of raising interest rates and the US-China trade war. Statistics from the United Nations Development Programme show that 60 per cent of the remittances to Viet Nam comes from the US while Europe accounts for around 20 per cent. Other major sources are China, South Korea and Japan. The remittances come to Viet Nam mainly through four channels – banks, currently accounting for 72 per cent, economic organisations, customs agencies, and the postal system. Overseas Vietnamese living in the US, Canada, Germany and France account for the most remittances. HCM City is … [Read more...] about Remittances to Viet Nam could fall due to US policies

Although Viet Nam’s balance of trade in the first eight months of the year stood at a surplus of US$2.8 billion, analysts warn about it returning to a deficit in the coming months. —VNA/VNS Photo Duong Chi Tuong Although Viet Nam’s balance of trade in the first eight months of the year stood at a surplus of US$2.8 billion, analysts warn about it returning to a deficit in the coming months. In August, there was a deficit of nearly $100 million. Analysts said signs of returning to a deficit had begun, showing in the second quarter when export growth began to slow down. In the first quarter, exports grew at 22 per cent, but it has been downhill since then, with growth falling to 19 per cent by April-end and 16 per cent by the end of June. In July, alone export growth was estimated at 15 per cent. The analysts said running a trade deficit in the last few months of the year is a normal phenomenon since many enterprises’ demand for imported raw materials increases at … [Read more...] about Viet Nam likely to return to trade deficit

According to the Viet Nam Real Estate Brokers Association last year around 23,000 units of condotels, or condo-hotels, were offered for sale, and 65-70 per cent of them were snapped up. — Photo thegoldenankhanh.vn According to the Viet Nam Real Estate Brokers Association last year around 23,000 units of condotels, or condo-hotels, were offered for sale, and 65-70 per cent of them were snapped up. However, demand for condotels seems to be falling. Ho Chi Minh City-based DKRA Viet Nam said in the first quarter of this year around 2,100 units came into the market with their locations ranging from Da Nang City to Phu Quoc Island, but only 850 were sold. Phu Quoc Island and Ba Ria-Vung Tau Province are the two places with the highest demand, though even there sales does not exceed 40 per cent. It is 26 per cent in Khanh Hoa, home of Nha Trang; 22 per cent in Binh Dinh; and 9 per cent in Da Nang. Market observers said the tourism sector had seen rapid growth in recent years with the … [Read more...] about Supply overhang threatens condotel market

In July, for instance, only 42.3 per cent of the bonds offered at auctions were bought, representing a 6 percentage point fall from June. — Photo tapchitaichinh.vn   Though the interest rates on government bonds with maturity terms of one to 15 years have increased in recent times, there seems to be little appetite for them among investors. In July, for instance, only 42.3 per cent of the bonds offered at auctions were bought, representing a 6 percentage point fall from June. Market observers said that since April, most auctions of government bonds, jointly issued by the treasury and the Viet Nam Bank for Social Policies have been tepid. And there are no signs of improvement. If the situation continues, it would affect not only issuers and the market but also investors themselves, they said. In July, the coupon rates on government bonds of various terms that were successfully auctioned were up by 0.02-0.35 percentage points. In August, the rate on 10-year bonds also moved … [Read more...] about Government bonds lose their sheen