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Fresh CEO rush shakes up Vietnam’s banking arena

April 15, 2021 by www.vir.com.vn

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

Vietnam GDP growth to reach 8.1% in 2021: Goldman Sachs

September 18, 2020 by hanoitimes.vn

Goldman Sachs expected exports to be Vietnam’s major driving force for economic recovery.

In 2020, Vietnam’s GDP growth is set to slow to 2.7% and rebound to 8.1% next year, according to the US-based investment bank Goldman Sachs.

Forecast for Vietnam’s GDP growth.

Goldman Sachs’ 2.7%-GDP growth forecast for Vietnam in its first ever macro-economic report on the country, one of the fastest growing economies in Asia, is lower than that of the World Bank (2.8%), but higher than ADB’s 1.8%.

While Vietnam’s economy growth slowed to 3.8% and 0.4% in the respective first and second quarters, the US bank expected GDP growth to quickly recover in the third quarter, mainly thanks to public investment, retail’s revenue and exports.

Notably, Goldman Sachs expects exports to be Vietnam’s major driving force for economic recovery. In the first eight months of 2020, Vietnam’s trade surplus reached an all-time high of US$13.5 billion, representing a 150% increase compared to the same period of last year (US$5.47 billion)

The bank’s report pointed to three major advantages contributing to a growing export turnover.

Firstly, Vietnam holds significant advantage in regional supply chains as the country is located in close proximity with China.

The labor cost in Vietnam is also considered competitive, which remains at half of China’s. For example, the minimum wage in major cities such as Hanoi or Ho Chi Minh City is regulated at US$190 per month, significantly lower than the US$360 in Shanghai. Meanwhile, the minimum wage in other cities in Vietnam and China were estimated at US$132 and US$220 per month, respectively.

According to Goldman Sachs, these factors led to a shift in production of firms in the fields of textile and footwear from China to Vietnam, especially during the US – China trade war. Since 2010, the FDI investment capital that was initially bound to China, South Korea, Japan or countries in ASEAN have now flowed to Vietnam.

Meanwhile, the fact that Vietnam is currently member of a number of free trade agreements (FTAs) with major trading partners could shield the country from growing protectionism globally. For instance in 2019, at the peak of the US – China trade tension, Vietnam’s exports had not been much impacted, which eventually led to a record trade surplus of US$11.12 billion that year.

In the future with the presence of the EU – Vietnam Free Trade Agreement (EVFTA), Goldman Sachs expects Vietnam’s exports to continue growing.

Secondly, Vietnam’s structure of export products with a focus on hi-tech items would continue to be a major plus point for Vietnam. Since 2015, export turnover of products such as smart phones and electronic appliances have exceeded that of traditional items like textile or footwear.

In the January – August period, Vietnam’s export turnover of electronic products increased by 6.3% year-on-year amid the Covid-19 pandemic, accounting for 70% of total exports.

Thirdly, Vietnam’s long-standing trade partnership with China is also an advantage, as the latter would be among a handful of economies with a positive economic growth this year.

It is worth mentioning that China is currently Vietnam’s largest buyer.

In its baseline scenario, Goldman Sachs expects Vietnam’s exports to reach US$180 billion by the end of 2021, assuming the world would gradually contain the pandemic and the development of Covid-19 vaccine remains on track.

US hands over training facilities to Vietnam coast guard

April 18, 2021 by e.vnexpress.net

A ceremony marking the handover was held April 9 at the offices of the 3rd Regional Coast Guard in the southern province of Ba Ria – Vung Tau.

Attending the ceremony were Vietnam Coast Guard commander Lieutenant General Nguyen Van Son, U.S. Consul General Marie Damour and other officials, the U.S. embassy said in a Facebook post Saturday.

Lt. Gen. Son said that Vietnam highly appreciated the U.S. gesture and considered the event “an important milestone of the Vietnam-U.S. partnership,” helping Vietnam improve its law enforcement capacity at sea.

The cooperation between the coast guards of both countries has strengthened in recent years.

In 2017, the U.S. Coast Guard handed over the Hamilton-class (the second-largest class of vessels in the U.S. Coast Guard) USCGC Morgenthau cutter to the Vietnam Coast Guard under their Excess Defense Articles (EDA) program. The ship was then commissioned for the Vietnam Coast Guard and renamed CSB 8020.

The U.S. has also sold a total of 24 Metal Shark high-speed patrol boats and is overhauling the USCGC John Midgett, another Hamilton-class vessel, to hand it over to Vietnam.

At a press conference in Hanoi, outgoing U.S. Ambassador Daniel Kritenbrink had remarked that security cooperation was developing strongly between the two countries, especially between the two militaries.

He said that Vietnam and the U.S. have worked together to implement a United Nations resolution on North Korea and to promote a common stance on the East Sea. The U.S. has assisted Vietnam in building its defense capacity, especially maritime capabilities, and supported Vietnam in sending peacekeeping personnel to South Sudan.

Referring to East Sea disputes, Kritenbrink had stressed that the U.S. always stood by its partners and allies in building an international order based on rules, and opposed ” the provocative actions of China with the other countries in the region.”

Four Thu Duc City bridges unable to bridge the gap

April 18, 2021 by e.vnexpress.net

Construction of Thu Thiem 2 Bridge spanning the Saigon River to link District 1 with the then District 2, which has now become a part of Thu Duc City, had started back in 2015. The bridge connects with Thu Thiem New Urban Area in Thu Duc City spans 1.4 kilometers long in total and comprises six lanes.

Construction of the Thu Thiem 2 Bridge spanning the Saigon River to link District 1 with District 2 (now part of Thu Duc City) started in 2015. The 1.4 kilometers long, six lane bridge would connect with the Thu Thiem New Urban Area.

Built with a cost of nearly VND3.1 trillion ($134.9 million), the project was originally scheduled to complete in 2018. As of last year, work on the project was 70 percent complete but construction on certain sections in District 1 continues to face delays since some of the required land belongs to the Ministry of National Defense.

Being built at a cost of nearly VND3.1 trillion ($134.9 million), the project was originally scheduled for completing in 2018. As of last year, work on the project was 70 percent complete but construction on certain sections in District 1 continues to face delays since some of the required land belongs to the Ministry of National Defense.

The cable-stayed bridge, with the main tower rising 113 meters high and leaning towards Thu Thiem and the artistic lighting design, has been expected to work as an architectural highlight on the Saigon River. Once completed, it will help connect the city’s heart of District 1 with Thu Thiem New Urban Area and ease traffic congestion at the intersections of Ton Duc Thang-Nguyen Huu Canh streets and Ton Duc Thang-Le Thanh Ton streets in District 1.Aside from the land clearance roadblock, the project has also faced issues in verifying both project volume and value with investor Dai Quang Minh Real Estate Investment JSC. For now, related agencies and departments are in the process of negotiating with the investor, as required by the Department of Transport earlier last month.

The cable-stayed bridge, with its main tower rising 113 meters and leaning towards Thu Thiem, is supposed to become an architectural highlight on the river with an artistic lighting design. Once complete, it will help connect the downtown HCMC with the Thu Thiem New Urban Area and ease traffic congestion at the intersections of Ton Duc Thang-Nguyen Huu Canh streets and Ton Duc Thang-Le Thanh Ton streets in District 1.

The bridge as seen from the side of Ton Duc Thang Street in District 1. It is expected that on April 15, work would resume on the bridge after the city authorities have worked with Dai Quang Minh and related parties to tackle all issues for the project so that it could be completed in 2023.

The bridge as seen from Ton Duc Thang Street in District 1. Work resumed on Thursday on the bridge after city authorities worked with Dai Quang Minh and others to tackle all issues so that the project can be completed in 2023.

In 2016, work started to build Nam Ly Bridge on Do Xuan Hop Street at the cost of VND857 billion to replace an old one that has been become degraded and way too small for the rising demand. Passing Rach Chiec Canal, the bridge is 450 meters long, 20 meters wide and was initially slated for completion in 2018 but by 2019, only 39 percent had been finished and the project has been put on hold ever since to wait for clear site.

In 2016, work began on the Nam Ly Bridge on Do Xuan Hop Street at the cost of VND857 billion. It was to replace an old one that had degraded and was too small to meet rising traffic demand. The 450m long, 20m wide bridge over the Rach Chiec Canal was to be completed in 2018, but in 2019, just 39 percent of the work had been done. The project has been put on hold since, awaiting site clearance.

Building materials turn rusty on the half-finished bridge.

Building materials rust on the half-finished bridge.

Wild grass grows all over barriers set around the foot of a bridge span that. Locals have even place several signboards to advertise their products and service on those barriers.

Wild plants grow around barriers set at the foot of a bridge span. Locals have begun using them to advertise various products and services.

Areas beneath the bridge have been turned into landfills.Tardiness in compensating affected households has led the problems in clearing site for the rest of the project. It is because the HCMC’s Department of Natural Resources and the city administration have yet to approve the compensation costs. For this issue, the authorities of Thu Duc City have proposed higher authorities to soon approve the compensation, promising that once that approval is made, Thu Duc will offer clean land plots for the project within six months.

Some areas beneath the unfinished bridge resemble landfills.

Six kilometers from Nam Ly, Tang Long Bridge on La Xuan Oai Street has been built since 2017 to span 680 meters across the Trau Trau Canal to replace an old, downgraded one nearby.

Six kilometers from Nam Ly, the Tang Long Bridge on La Xuan Oai Street is another one that has been languishing after work began in 2017. The 680 meters long bridge over the Trau Trau Canal is meant to replace an old, downgraded one nearby.

Costing VND450 billion, it is set to be completed in 2019 but by far, just more than 30 percent is done and the rest is being stuck at the step of clearing site.The issue of this project is related to adjustment in the geological border for the project that was made by the authorities of District 9 before the district was merged with districts 2 and Thu Duc to become Thu Duc City earlier this year. Now, the project’s management board said if Thu Duc City continues the job that District 9 has started and hands over the clear site soon, the bridge could be completed in 12 months.

The VND450 billion bridge was to be completed in 2019, but so far, only around 30 percent of the work has been done, site clearance proving to be the stumbling block, yet again.

Long Dai Bridge across the Tac River, a tributary of the Dong Nai River, was built in March 2017 at the cost of VND353 billion and for completion in two years. By now, its progress has reached just more than 50 percent as all the construction work has stopped since December, 2018.

Work on the Long Dai Bridge across the Tac River, a tributary of the Dong Nai River, began in March 2017. Built at a cost of VND353 billion, it was to be completed in two years. But two years after the original deadline, the bridge is far from completion with around 50 percent of the work remaining unfinished. Construction work on the bridge stopped in December, 2018.

The lateness in site clearance has been blamed for disagreement in compensation level. Thu Duc City came to life on Dec. 9 after the National Assembly greenlighted its establishment as a city within a city in HCMC. The new city was formed by merging three eastern districts - 2, 9 and Thu Duc. Spreading across 211 square kilometers, it houses more than a million people and is expected to contribute 30 percent of the city’s economic growth and 7 percent for the nations per year. Thu Duc is also expected to function as an innovative urban area encompassing the hi-tech park in District 9, the university precinct in Thu Duc District, and the new urban area and financial center on Thu Thiem Peninsula in District 2, helping fulfill HCMC’s plans to become a smart city.

The delay in site clearance has been blamed on disagreements over the compensation.

VietinBank Securities bags $90 million syndicated loans from international banks

April 16, 2021 by www.vir.com.vn

International lenders signing the credit facility to support VietinBank Securities

VietinBank securities has received additional funding support with the recent signing of $60 million of syndicated loans, following a $30 million facility just a month ago.

On April 15, a consortium of major international lenders operating in Vietnam – Woori Bank Vietnam (Bac Ninh Branch), Taipei Fubon Commercial Bank Vietnam, and Cathay United Bank Vietnam – has inked an agreement to facilitate $60 million for the additional financial needs of VietinBank Securities.

In particular, Woori Bank Vietnam (Bac Ninh Branch) specifically provided $50 million, while Taipei Fubon and Cathay United provided $10 million altogether.

Last month, a group of four Taiwanese lenders – the Union Bank of Taiwan, Taichung Commercial Bank Co., Ltd.’s Labuan branch, Taishin International Bank, and Huanan Commercial Bank – also rolled out a $30 million syndicated loan with a 12-month tenure for VietinBank Securities.

“We firmly believe that $90 million of high-profile syndicated loans would bring about more additional capacity for us to increase our foothold in Vietnam’s equity market and access to more potential customers,” noted Ho Thi Thu Hien, chairwoman of the board at VietinBank Securities.

On the same note, Lee Myoung Ho, Woori Bank Vietnam (Bac Ninh Branch) director and chief representative, applauded the brokerage’s vast potential and how the syndicated loans could pave the way for the company to bolsters its strength thanks to the competitive capital.

“Woori Bank is one of the largest South Korean banks with extensive years of experience in providing top-notch financial services. With our vast experience, we believe in VietinBank Securities’ strong standing and impressive performance in the past year,” he told VIR .

The deal is envisaged to lay concrete foundations for the company to boost its activities related to international loan advisory and financing arrangements.

At the signing ceremony, VietinBank Securities also connected businesses in various areas, such as Novaland Group, Minh Phu Seafood Group, Viet Hung Industrial Investment JSC, Louis Agro Group JSC, and other enterprises.

As one of the eldest, most experienced seven brokerage companies in the country, VietinBank Securities – as a part of state-owned lender VietinBank – has a proven customer-centric approach, with a wide range of tailored financial services such as underwriting-capital raising, mergers and acquisitions advisory, and asset management, to name a few.

By Luu Huong

Vietnamese businesses look to further optimize opportunities from CPTPP

April 18, 2021 by en.qdnd.vn

Among 14 free trade agreements (FTAs) Vietnam has signed, the CPTPP is a new generation FTA with high standards and the highest level of facilitation. Vietnam has been forecast to be one of the members that benefits the most from the deal.

However, the country has experienced challenges in optimizing the FTA because of its modest level of development and competitiveness.

Due to US-China trade tensions and the impact of COVID-19, the global economy fell into crisis last year with interrupted supply chains. Vietnam also suffered an economic downturn. Therefore, after two years of implementation, the benefits from the CPTPP are still to be seen.

Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), said that positive results in the two years of implementation include the reform of institutions and administrative procedures.

Explaining the modest benefits so far, Loc said major reasons include the poor competitiveness of Vietnamese enterprises, market instability, and the low capacity of State agencies.

Meanwhile, Nguyen Cam Trang, Vice Director of the Import-Export Department at the Ministry of Industry and Trade, said the CPTPP has helped promote Vietnam’s exports.

However, its market share and export growth to the six partners that have implemented the CPTPP have been low.

She noted that Vietnam’s market share is 3.1 percent in Japan, 1.9 percent in Australia, 1.6 percent in New Zealand, 1.3 percent in Mexico, 1.1 percent in Canada, and 1 percent in Singapore.

Growth in exports to CPTPP markets was 12.2 percent in 2018, 13 percent in 2019, and 12.02 percent in 2020, Trang added.

She said that, in the future, State agencies should enhance their capacity to implement the CPTPP while continuing to complete legal policies, strengthen communications regarding the deal, support macro-, small-, and medium-sized enterprises to improve their capacity, encourage investment in material production, and design measures to reduce logistics costs.

Businesses should also be more active in seeking opportunities from the deal, while changing their mindset and exploring demand in CPTPP markets to design suitable business strategies and plans, she added.

A survey by VCCI showed that about three-quarters of businesses said they will adjust their business plans to optimise the opportunities from the CPTPP and other FTAs.

Source: VNA