Christine p katziff corporate general auditor bank of america financial center

Illustrative photo. Bad debt risks The second quarter financial statements of commercial banks state that the total amount of bad debts on the balance sheet at VPBank stood at VND20,625 bln, up 27 percent compared to the beginning of the year, bringing the bad debt and loan ratio on the bank consolidated report to increase sharply from 4.57 percent to 5.25 percent . VietBank was also in the group with a bad debt ratio exceeding the prescribed threshold at 3.99 percent. Although the remaining banks still kept the bad debt ratio at 3 percent, it was clear that bad debts are now showing signs of further increasing. At Vietnam International Commercial Joint Stock Bank (VIB), the total bad debt at the end of June stood at around VND5,428 bln, a 16.2 percent increase compared to the beginning of the year. In this, Group 4 debt increased 32 percent to VND2,125 bln, and Group 5 debt increased 67 percent to VND2,210 bln. In the first six months of the year, Group 4 debt at TPBank … [Read more...] about Banks avoiding further bad debt risks

In long term, transforming the higher education system will be key to boosting Vietnam’s productivity and helping achieve its goal of becoming a high-income country by 2045. Vietnam’s GDP growth is forecast to surge from an estimated 2.6% in 2021 to 7.5% in 2022, with backing from resilient manufacturing and a robust rebound in services. Overview of the event. Photo: Nguyen Tung Country Director for the World Bank in Vietnam Carolyn Turk revealed the figures at the launch of its bi-annual economic outlook for Vietnam titled “Taking Stock: Educate to Grow” today [August 8]. According to Turk, the global economy has been experiencing a series of very large and negative shocks, including ongoing Covid-19-related disruptions and supply shocks associated with the Russia-Ukraine conflict. In this context, Vietnam’s economy has shown “relative resilience and staged a strong rebound after last year’s Covid-19 induced slowdown,” Turk said. Vietnam’s economic … [Read more...] about Vietnam’s GDP growth set to expand by 7.5% in 2022: World Bank

Sacombank wins five awards from Japanese international card organisation JCB. — Photo courtesy of the bank Sacombank has won five awards from Japanese international card organisation JCB for 2021 for Leading Licensee in New Products and Solution, Leading Licensee in Merchant Sales Growth, Leading Licensee in Merchant Sales, Leading Licensee in Balance of Credit Card, and Leading Licensee in Credit Card Retail Spending Volume. It is for the sixth year in a row the bank has been honoured with these awards. It is highly appreciated for its continuous implementation of new business initiatives, launching impressive card payment products, staying ahead of technology trends, and improving the customer experience. The bank has in collaboration with JCB launched Sacombank JCB Platinum Debit card, the Japanese company’s most advanced payment card line in Viet Nam with outstanding privileges and incentives. Cardholders are entitled to free use of VIP lounge services at more than 60 … [Read more...] about Sacombank wins 5 JCB card awards

A customer at an HDBank transaction office. Vietnam’s policy rate is expected to rise 50 basis points to 4.5 per cent by end-2023. (Photo: VNA) Hanoi (VNS/VNA) - Capital account restrictions largely insulate interest rates in Vietnam from global monetary tightening and the country’s policy rate is expected to increase 50 basis points to 4.5% by end-2023, according to Fitch Ratings. Under a report on the impact of rising interest rates on Asia-Pacific (APAC) banks released this week, Fitch said annual credit targeting remains a centrepiece of the State Bank of Vietnam's (SBV) monetary policy framework, and the refinancing rate is not a primary policy lever. Moreover, strong foreign investment inflows underpin the dong's resilience, which has depreciated by only 2% year-to-date by end-July 2022, making it the second-best performing currency in APAC behind only the Hong Kong dollar. According to Fitch, Vietnam’s rates are driven chiefly by economic activity and inflation. … [Read more...] about Monetary stance points to only mildly higher interest rates in VN: Fitch Ratings

As BNPL allows consumers to spread the cost over multiple instalments and attracts those who cannot, or would not, purchase goods or services by paying the price in full, these conditions create the ideal opportunity for BNPL service providers. Bui Ngoc Hong-Partner, LNT & Partners Despite the opportunity, the BNPL landscape in Vietnam remains slow-moving. This is partly due to the fact that Vietnam does not have a clear legal framework regulating the method. Even the sandbox scheme for fintech activities still remains in the legislative pipeline. In addition, even if a BNPL platform owner cooperates with traditional bank lenders, the parties need to deal with a significant gap between the strict regulatory web the traditional lenders are subject to, and the fintech providers’ need to “move fast and break things”. For those reasons, BNPL ventures find it hard to enter the Vietnamese market, unless they are equipped with suitable investment structures. In BNPL … [Read more...] about Clearing the way to legal support for BNPL services

General Department of Vietnam Customs’ data showed that the bilateral trade reached US$1.03 billion in the first four months of 2022 (up 15 percent from the same period of 2021), including US$689.13 million worth of Vietnamese exports (up 19.2 percent) and US$342.16 million worth of Vietnamese imports (up 7.3 percent). Tra fish exports are projected to surge by a whopping 97 percent year-on-year in the first five months of 2022, reaching US$1.1 billion Nguyen Thi Hoang Thuy, Head of the Vietnam Trade Office in Sweden, concurrently in Denmark, Norway, Iceland, and Latvia, said Nordic enterprises generally bought Japonica rice from Spain, Italy, Japan and the US, and were excited to discover they could import a similar product with similar quality from Vietnam at a one-third to one half less. Foreign trade accounts for 50-60 percent of the Nordic bloc’s gross domestic product (GDP). Despite their small population, Nordic countries made an impressive import value … [Read more...] about Vietnamese exports to Nordic markets thrive