Struggling to attract domestic funds, banks are rushing to seek foreign capital ahead of the central bank’s tightened policy on medium- and long-term lending early next year According to the State Bank of Viet Nam (SBV) regulations, short-term funds for medium- and long-term loans at banks will be reduced from the current 45 per cent to 40 per cent from January 1, 2019. Banks will also need more capital to meet a capital adequacy ratio (CAR) of 8 per cent in 2020 as per the SBV’s Basel II norms. To prepare for the regulations, besides increasing interest rates for long-term deposits to attract depositors, banks also have to find capital from foreign partners. Saigon Hanoi Commercial Joint Stock Bank (SHB) recently took a US$20 million loan for a term of five years from Russia’s International Investment Bank and a 20 million euro loan under a credit agreement framework with Russian International Bank for Economic Cooperation. According to SHB, the loans will help the … [Read more...] about Banks look abroad in rush for long-term capital
Chase increase credit limit
Public Bank Vietnam (PBVN), a wholly-owned subsidiary of Malaysia’s Public Bank Bhd, secured approval from the State Bank of Vietnam (SBV) in early July to open three additional branches and two more transaction offices this year in Hanoi, Ho Chi Minh City, and Da Nang, bringing its branch numbers in the country to 19. The move is in line with its aim of expanding its network and customer reach in Vietnam, and a growing number of other foreign players are also looking to capture the wealth of opportunities in the country’s banking sector, with South Korean banks leading the charge. South Korean lenders have been eagerly expanding their foothold in the country. Woori Bank received licenses from the SBV in June to open five more branches in northern and southern cities together with a transaction office in Ho Chi Minh City’s District 7. Shinhan Bank, meanwhile, opened four branches and transaction offices in Ho Chi Minh City and Hanoi in May, beefing up its … [Read more...] about Local banking appeal broadens
Mitsubishi plans to make electric cars in Viet Nam Japan’s Mitsubishi Corporation plans to invest in an electric automobile manufacturing factory in Viet Nam, said Executive Vice President Hiroshi Sakuma during a meeting with Vietnamese Deputy Prime Minister Vuong Dinh Hue in Ha Noi on Wednesday. At the meeting, Sakuma said his firm was evaluating the feasibility of the project and look forward to new regulations on environmental protection taxes to promote investment in the country. Hue said Viet Nam’s National Assembly would soon discuss and pass the Law on Environmental Protection Tax. There would be incentives commensurate with environmentally friendly products. The Mitsubishi Corporation is currently investing in two BOT (Build-Operate-Transfer) projects in Viet Nam, namely the Vung Ang 2 Thermal Power Plant (1,200 MW) and Vinh Tan 3 (1,980 MW) Power Plant. The corporation and Viet Nam’s Ministry of Industry and Trade signed an investment … [Read more...] about BUSINESS NEWS IN BRIEF 31/8
Probability of a bubble Vo Huynh Tuan Kiet Since its quick recovery in 2014, the Vietnamese real estate market has witnessed an unparalleled supply of new projects being constantly launched and with good net absorption. Along with the market’s traditional segments, new products have been introduced, such as second-home villas, condotels, and officetels. Since 2015, the Vietnamese government loosened its requirements for foreigners to buy and own properties in Vietnam, which helped attract more foreign investors to the market (Figures 1 and 2). Nonetheless, many experts and investors have cast doubts upon this rapid recovery, predicting underlying risks. These risks include an oversupply of high-end projects, the return of speculators, and falling market demand. The biggest concern would be another property bubble akin to the one that shook the market in 2007 and froze the property market until 2013. The market is still paying the cost of this previous bubble. As the … [Read more...] about Signs of another property bubble?
Oil spill response training held in Quang Ninh Some 200 people from oil exploiting and transporting companies and organisations in the northern province of Quang Ninh were provided with necessary knowledge and skills to respond to oil spills during a training course held in the locality on March 28. The course was jointly organised by the provincial Department of Natural Resources and Environment and the Vietnam Maritime Construction Investment Consultancy Joint Stock Company. Participants were equipped with measures to control oil spills, laws and regulations related to the issue as well as technical measures to clean up oil-contaminated areas and ways to manage environmental pollution after the oil spill. They also practised collecting oil from the spill in conditions of strong flows and big waves. There has been no serious oil spill case in Quang Ninh province since the beginning of 2017. Enhancing skills to prevent and tackle oil spills is necessary for the province as it is a … [Read more...] about Social News In Brief 28/3