Techcombank, on the other hand, capped a positive earnings for the first quarter of VND2.5 trillion ($108.7 million) despite the market volatility – a nearly 20-per-cent increase compared to last year. It was also one of a few banks recording upbeat performance in Vietnam, but still maintaining sound operational safety ratios. Techcombank’s foreign investors include Norges Bank – the central bank of Norway which also manages the Norwegian government’s pension fund. However, it is still too early to say if Norges Bank would further inject capital into Techcombank, as they “do not comment on single investments,” Line Aaltvedt, manager of Communications and External Relations at Norges Bank, told VIR. … [Read more...] about Upcoming EVFTA to fortify lenders
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Bochmann: COVID-19 has completely halted tourism activities, not only in Vietnam but pretty much the whole world. I don’t think that people outside the tourism industry completely understand how big the disruption is and how many people this affects. It’s not just hospitality workers in hotels and travel/tour operators (which number in the thousands), but also the families that rely on them to fill their rice bowls at home. For every hotel worker, travel/tour operator, there are also about four merchants, suppliers, farmers, shop owners, and drivers that rely on tourists to come to Vietnam and holiday or conduct business meetings, conferences, and exhibitions. … [Read more...] about How should Vietnam prepare for post-pandemic tourism recovery?
According to the NA-assigned targets, Vietnam’s GDP growth rate in 2020 will be 6.8% while inflation will be kept below 4%. However, the unexpected outbreak of COVID-19 in more than 200 countries around the world has made this goal a major challenge which, as assessed by the Government, is difficult to be achieved. Given that fact, the proposal to adjust the growth targets is necessary and consistent with objective reality, looking directly at the socio-economic situation and forecasting the international and domestic situation in the near future. Under the Government’s updated scenario, the country’s GDP will grow by about 4.5% in 2020. The Government has also set a higher growth target of 5.4% in the event of a favourable global situation, with the disease being put under control and the global market recovering. Meanwhile, the consumer price index (CPI) for the whole year will rise by 4% on average; total state budget revenue will see a reduction of VND163 trillion … [Read more...] about BUSINESS NEWS HEADLINES MAY 30
Furthermore, the risk from sour loans are substantial. Although lenders are much stronger now since they have built up capital under acute regulatory scrutiny such as Basel II, many are still wondering if the buffers will be big enough. Specifically, some lenders, such as Agribank, Kien Long Bank, and Viet Capital Bank, are still nowhere to be found in the Basel II race. … [Read more...] about Consumers risk higher defaults amid lending sector fluctuation