Karnataka gr vi development corporation

Fresh CEO rush shakes up Vietnam’s banking arena, photo Le Toan

In February, Shinhan Bank Vietnam named Lee Taekyung, former CEO of Shinhan Bank Cambodia, as new CEO of the local franchise. With 29 years of experience under his belt, Taekyung has been in charge of various positions of strategy, planning, risk management, and marketing, among others.

He previously took the helm as head of the Global Business Division of Shinhan Bank Korea and gained working experience at Shinhan Bank America and Shinhan Bank Cambodia. In the latter, Taekyung doubled the size of the bank, including assets, profits, the number of branches, and employees in just two years.

“In the ever-evolving financial landscape, customers’ needs will change quickly. We must be a bank that keeps pace with customer changes with customer-oriented value as the top priority,” he noted. “Vietnam is the most important country globally for Shinhan Financial Group, and we sincerely appreciate all of the customers. Shinhan Bank Vietnam will continue to expand corporate social responsibility activities in Vietnam and contribute more to society.”

Standard Chartered Vietnam also appointed a new CEO in February. Michele Wee, a seasoned banker with over 25 years of industry experience, joined Standard Chartered in 2011 as global head of E-commerce Sales to build a business distribution channel for the bank’s Financial Markets (FM) clients.

Prior to her appointment as CEO in this country, she was the head of FM for Singapore, Australia, and Brunei, in which she was responsible for the development and execution of these markets’ FM strategy.

“Vietnam is an important market for our global network with significant opportunities to develop our businesses with universal banking capabilities. My key focus will be on providing valuable support and benefits to our clients, regulators, and the communities, building on our unrivalled local knowledge and international expertise,” Wee said.

She takes over the reins from Nirukt Sapru who was appointed as CEO for Vietnam, Laos, and Cambodia in 2013, and in 2015 took on the expanded role as the regional CEO for ASEAN and South Asia cluster markets including Australia, Brunei, Nepal, the Philippines, and Sri Lanka.

Last year, the Vietnamese subsidiary of Deutsche Bank appointed Huynh Buu Quang, former CEO of Maritime Bank (MSB), as its acting CEO. Quang had served as the CEO of locally-invested bank MSB for four years. He has 25 years of experience in the banking and financial sector and had previously held senior positions at HSBC.

Deutsche Bank’s Asia-Pacific CEO Alexander von zur Muehlen said, “With Vietnam a key growth market for our bank in ASEAN, we are delighted to have an individual of Quang’s calibre and experience leading the next phase in the expansion of the local franchise.”

In the region, Deutsche Bank AG has a long track record in providing corporate finance and advisory solutions to Vietnamese corporates, leading a number of notable capital market transactions. The bank’s expertise in loans and structured finance is also well known. Since 2017, Deutsche Bank has raised more than $1 billion in debt, loan and equity capital annually for Vietnamese corporates. The German lender confirmed its commitment in Vietnam to support higher trade flows from Europe, which are expected to increase following the recently ratified EU-Vietnam Free Trade Agreement.

Specifically, major Thai bank Kasikornbank received approval from the State Bank of Vietnam to open its Ho Chi Minh City branch in February. Kasikornbank aims to serve Thai business customers and clients of all shapes and sizes who have invested in Vietnam, as well as local retail customers. It targets lending of 10 billion baht ($318 million) in its first year of operation while also investing in startups with the aim of scouting advanced digital technologies for increased business opportunities.

“Kasikornbank has used the knowledge gained from services offered at its two representative offices in Hanoi and Ho Chi Minh City in order to upgrade the representative office in Ho Chi Minh City to a bank branch. It will focus on offering services to Thai, Chinese, Japanese, and South Korean companies wishing to expand their businesses in Vietnam for international trade and investment, as well as local entrepreneurs, especially those conducting business with Thai corporate customers of Kasikornbank,” the bank stated.

Elsewhere, Mizuho Financial Group, one of Japan’s largest financial groups, appointed managing executive officer of its banking unit Masahiko Katoas the new CEO of the bank in February.

By Celine Luu

Chubb Life Vietnam always stands ready to provide timely and practical support to the community

Since opening its first office in the country in 2005, Chubb Life Vietnam has focused on creating a positive impact and sustainable development for the communities in which it operates. The company now employs over 40,000 employees and agents, in over 140 offices across Vietnam and makes an important contribution to the development of the country’s education system.

To date, Chubb Life Vietnam and the Chubb Charitable Foundation have contributed over VND30 billion ($1.3 million) to the construction of nine new schools in Central Vietnam. The company has also funded new educational equipment to schools and awarded scholarships to support thousands of underprivileged students in their schooling.

To date, Chubb Life Vietnam and the Chubb Charitable Foundation have contributed over VND30 billion ($1.3 million) to the construction of nine new schools in Central Vietnam.

“We are proud to receive the Certificate of Merit from the Minister of Education and Training of Vietnam as part of our continuous effort to support the communities we live and work in,” said Lam Hai Tuan, chairman and country president of Chubb Life Vietnam. “With our goal of sustainable development, Chubb Life Vietnam not only focuses on maintaining exceptional business performance but also strives to create long-term value for our customers and their communities. This award is a great recognition and encouragement to our employees’ unwavering effort to support Vietnam’s future generation.”

Lam Hai Tuan added: “I want to take this opportunity to thank the Ministry for their support and recognition of our work helping to ensure a brighter future for the younger generation.”

Chubb Life Vietnam always stands ready to provide timely and practical support to the community. When a series of rainstorms hit Vietnam’s central region in October 2020, the company donated 15,000 warm coats to children in the affected area through the “Chubb Life Vietnam – Am Tinh Mien Trung ” initiative. Not only did this provide much needed material aid, but it also comforted students and allowed them to get back to their study with ease.

Chubb is the world’s largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to a diverse group of clients.

Chubb Life is the international life insurance division of Chubb. In Vietnam since 2005, Chubb Life launched its fund management company (Chubb Life Fund Management Co., Ltd.) in 2013. The company offers a range of life protection, health, savings, and investment-linked insurance solutions through its agents and its wide network of offices.

By Anh Duc

In early 2020, Pham Thanh Bien, who works in Bac Thang Long Industrial Zone (IZ) in Hanoi, sought to buy land in Hai Boi commune of Dong Anh district. The landlord had set the price of VND25 million per square meter, which Bien rejected. At that moment, apartments at Kien Hung project in Ha Dong district were priced at VND16 million per square meter.

In January 2021, when he returned to meet the landlord, the land plot was still available, but the price had surged to VND50 million per square meter. The price of Kien Hung apartments moved up to VND19 million.

Bien then made a decision to buy an apartment as he thought the prices would rise further.

The land price hike in Hanoi broke out after the news about the Red River subdivision planning. A real estate broker in Dong Anh district said there were transactions in which the prices of the same land plots increased by VND5 million per square meter within days.

According to the Vietnam Association of Realtors, the land price has increased by 10 percent in the last month on average. In some areas, the prices have doubled or tripled in the last 1-2 months.

The land fever is not only seen in Hanoi, but in many other cities and provinces as well because of information about infrastructure project development.

The land prices increase when the stock market is hot. Real estate stocks are the most hunted, acting as the ‘pillar’ of VN Index.

Together with industrial zone stocks which have been on the rise over the last two years, real estate stocks are also rising quietly. Some of them have reached the historic peak area.

PDR shares of Phat Dat Real Estate Development JSC, for example, reached a new peak of VND68,000 per share on April 13. The price of the shares has been increasing for the last nine months and is now at the highest level since it began listing.

DIG of the DIC Corporation and the shares belonging to Becamex family, including TDC and IJC, have also been increasing for a long time.

IJC, which has seen big benefits from the real estate wave, was traded at over VND27,000 per share on April 13.

Major realtors are all quietly accumulating land in their long-term development plans for the next decade. The six real estate firms with large land banks reportedly own 27,673 hectares of land for project development, an increase of 15 percent over 2019.

Analysts say that the price increases of real estate shares have close relations with the land bank realtors have. The companies with large land banks have long-term advantages amid the land scarcity. The business results of the firms in 2020 were highly satisfactory because of bright prospects in the long term.

‘Kings of land’

BHS Group President Nguyen Tho Tuyen believes that the land price will keep rising. When the supply drops, foreign investors will flock to the market with deals worth up to billions of dollars in Hanoi and HCM City. Meanwhile, the number of F0 investors is believed to be much higher than the 30 percent announced by some analysis firms.

According to JLL, the firms with large clean-land banks will have better advantages. The projects with good legal status will be pricier than others.

Vinhomes’ land bank (HOSE, VHM) reached 16,200 hectares as of the end of 2020. The land bank of the enterprise is believed to be the largest in the market. Of the 16,200 hectares, 60 percent is ready for concentrated development in Hanoi and HCM City.

The other firms which have large land funds include Novaland, Hung Thinh Land, LDG Investment, Nam Long and Phat Dat.

Becamex IJC (HOSE, IJC), with 215 hectares in Binh Duong alone, and C.E.O (HNX, CEO), with hundreds of hectares of clean land, especially in Phu Quoc and Van Don, and DIC Corp (HOSE, DIG) with large land area in the south are also very rich in land.

Of real estate stocks, CEO of C.E.O Group is one of a few shares which still have not seen a price hike, which is attributed to Covid-19. However, with the large clean-land bank of hundreds of hectares in hot areas such as Ha Nam, Phu Quoc and Van Don, price increases are expected.

Major realtors are all quietly accumulating land in their long-term development plans for the next decade. The six real estate firms with large land banks reportedly own 27,673 hectares of land for project development, an increase of 15 percent over 2019.

Vinaconex is planning an additional 5,000 hectares of land for 2021-2025. Khang Dien has increased capital for its two subsidiaries in a plan to expand the land bank in district 2 in HCM City. Meanwhile, Novaland continues to seek land in provinces, and Vinhomes is considering developing new projects in a number of cities and provinces.

BVSC and VNDirect Securities both predict that the real estate M&A market will be bustling in 2021.

Do Thanh

Novaland Investment Group’s head office in Nguyen Du Street, District 1, Ho Chi Minh City. — Photo vinhomecitys.com

Some analysts from securities firms expected that the market’s bullish trend will continue this week, while others were more cautious and see a downward trend dominating the market.

The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) fell 8.54 points, or 0.68 per cent, in Friday’s trade to 1,238.71 points. The index hit a record high of 1,255.87 points on Wednesday.

For the week, the index still rose slightly by 0.57 per cent, while foreign investors net sold a value of over VND2.4 trillion.

Analyst from Saigon – Hanoi Securities JSC (SHS) said that the third straight weekly gain of the market and a new record in liquidity showed investors’ big interest during this period. However, based on Elliott Wave Theory, the index was likely at the end of wave 5 last week and is about to turn to corrective waves with a closest target being around 1,135 points.

Therefore, a downward trend might influence the market this week, SHS added.

The index struggled and strongly fluctuated around 1,250 points, but failed to break through the level in the last session. The market breadth, besides some blue-chip stocks in real estate sectors and steel stocks, was negative last week.

Tran Xuan Bach, a senior stock analyst from Bao Viet Securities Company, also expected that the market might continue to be weighed by selling pressure this week.

“The VN-Index still receives support from the zone of 1,225 – 1,232 points in some early sessions this week,” Bach wrote in a daily report to customers.

“The market is likely to be influenced by some large-cap stocks, as well as a strong division of stock groups during this period.”

Meanwhile, analysts from Viet Dragon Securities Corporation (VDSC) were more optimistic about the market as large cash inflows into the market in the last session limited the losses.

Sharing the positive view, MB Securities JSC (MBS) said that the last session’s steep fall has boosted cash flows into the market for bottom fishing, creating a notable recovery.

On the technical front, the upward trend, which has extended over the last two months, will continue with the support territory in the short-term being 1,220 points, MBS added.

The HNX-Index on the Ha Noi Stock Exchange (HNX) also declined 1.02 per cent on Friday to 293.11 points. For the week, the index fell 0.23 per cent.

Real estate stocks posted outstanding performance last week as it went against the market’s trend in most sessions. Followed by material stocks.

Of which, Vingroup JSC (VIC), Novaland Investment Group Corporation (NVL) and Hoa Phat Group (HPG) contributed the most to help the market cap losses. These stocks climbed 16.29 per cent, 4.73 per cent and 4.46 per cent, respectively.

On the contrary, top three stocks influencing the market’s trend were Vietnam Rubber Group JSC (GVR), JSC Bank For Investment and Development of Vietnam (BID) and Vietnam Dairy Products JSC (VNM).

In general, Viet Nam’s stock market was not so positive last week despite the benchmark increasing slightly as selling pressure spread to all sectors and foreign investors net sold a value in the trillions of dong. — VNS

Illustrative photo

JOURNALIST: – Sir, do you think the USA will return to renegotiate the terms for the CPTPP deal with other countries?

Dr. VO DAI LUOC: – The question of whether the USA will return to the CPTPP deal or not is a matter of great concern, not only for countries that are members of the CPTPP but also for other ally countries of America. I think that although the US President Joe Biden wants to rejoin the CPTPP right now, there is also an overwhelming leaning towards multilateral Free Trade Agreements (FTAs). So in the short term, the US may not be able to renegotiate to rejoin the CPTPP. The reason is that the more Free Trade Agreements develop, the less are the chances of the US once again rejoining the CPTPP.

For instance, at present many countries are benefiting much more from FTAs because of more capital flow, and better markets, labor, and technology. However, voters in developed countries, like the US, believe that they are at a disadvantage because large corporations will lean towards the developing countries to take advantage of cheaper labor, growing markets, and preferential tax policies.

Former President Donald Trump launched the concept of fair and free trade, which is also how he sympathized with voters and had the support of his voter base. However, that which is fair is also not easy to do. Hence, although President Joe Biden wants to renegotiate the CPTPP for benefits to the US, it is unlikely he can do it at this time. The US still has many unresolved domestic issues that need to be tackled before thinking of rejoining the CPTPP, such as consent of congress on issues related to businesses and labor.

– Sir, will China be able to rejoin the CPTPP, given that its leaders have repeatedly expressed their will to do so?

– China has officially declared that they want to rejoin the CPTPP, but it is still a far cry from wanting and actually realizing. First of all, there are terms in the CPTPP that can be considered progressive, but also binding. If China wants to participate, they will have to reform very strongly, especially in their policy towards current state-owned enterprises (SOEs). The Chinese SOE block is too strong, and the Chinese SOE support and protection policy is also too huge. Therefore, the question arises if China will reform this policy to conform to the terms of the CPTPP. Besides this, there are also intellectual property rights and labor issues to upgrade.

Such reforms in China are not easily implemented, especially the policy of economic development, for which the Chinese prefer a very nationalistic approach. Therefore, in my opinion, both China and the US will not be able to participate in the CPTPP in coming time.

– Sir, there is also an opinion that the Regional Comprehensive Economic Partnership (RCEP) plays a key role in China, so they will put pressure on the US to return to the CPTPP soonest. What is your opinion on this?

– RCEP associates have long-term strategic interests with China and neighboring countries. This is also believed to be a factor that motivates the US under the leadership of President Joe Biden to rejoin the CPTPP. Besides, this agreement is the best tool for the US to deepen economic relations with the region. In fact, the US can still maintain flexibility in that it seek a narrower agreement with CPTPP member countries on topics such as digital trade, the environment, and climate change, or on the sale and purchase of medical equipment and other essential products. Such an agreement will help build trust and serve as a starting point for the US to rejoin the CPTPP.

– Sir, what are the trends in US trade policy under President Joe Biden?

– I think that the trade policies will still serve the long-term strategies of the US. It will be a reassertion of their position as a world leading power, and show control over emerging nations that threaten America’s superpower status, of which China is number one. The US trade policy under President Joe Biden may be both competitive and controlling, though it must also clearly define a restructuring of relationship on the basis of mutual benefits.

On a broader scale, the US wants to reestablish its own set of rules, rather than reestablish new global governance, including in trade. Although this global governance model is in context of a current multilateral world, the US still maintains its superpower status across the world, as well as over its core interests. The problem is how the new rules will be introduced by President Biden, which are still unclear, and only time will tell.

– Thank you very much.

Luu Thuy (interviewer)