Slow credit growth may hurt profits of banks

Posted September 29, 2015 By stoccato
Although banks have achieved more than half of their pre-tax profit target set for 2010, however many banks are now much worried about slow credit growth, which may affect their profits.
Chair of the Foreign Trade BPN, said that at the end of August 2015, it earned a pre-tax profit of 3 trillion dong, after setting up a prevention of risks. Its pre-tax profit target for this year was set at 4.5 trillion dong, according to Binh, the bank is likely to achieve this goal. But if compared with the pre-tax profit levels achieved last year at approximately 5 trillion dong, then its profit plans for this year was rather modest.

Read the remainder of this entry »


CII to issue bonds to Goldman Sachs

Posted August 5, 2015 By stoccato
The HCM City Infrastructure Investment Joint Stock Company (CII) will issue convertible bonds worth US$15 million to Goldman Sachs Investment Partners, raising the total value of bonds issued for this investor to US$40 million.
Le Vu Hoang, general director of CII, said the company would seek approval from an extraordinary general meeting set for January 13, 2011 to issue US$15 million worth of convertible bonds, on top of an earlier transaction of US$25 million.

Read the remainder of this entry »


Funds raise concerns over tax rules

Posted July 14, 2015 By stoccato
Representatives of investment funds raised concerns over the nation’s tax regimes in a recent meeting in New York, saying that income tax regulations were hindering them from promoting investment.

Current tax policy discouraged investors to put money into private equity funds and also limited the accessibility of capital in these funds, they said.

Foreign individual and organisational investors (along with domestic individual investors) are imposed a tax of 0.1 per cent on every fund transaction, while domestic organisations are only required to pay a tax of 25 per cent on actual capital gains and domestic individual investors only 20 per cent.

Read the remainder of this entry »


Stocks fell by midday on Tursday, with positive news on inflation and a fuel price cut failing to revive buying interest, a broker and an analyst said on Thursday.

The government estimated that inflation fell below 10 percent in May for the first time since October 2010, which could give the central bank more room to ease policy to boost flagging growth.

On Wednesday, a state-run newspaper reported the government cut retail petrol prices for the second time this month.

Read the remainder of this entry »

Credit institutions have at least five years of operation before making a merger.

The proposal was included in a recent draft circular on the restructuring of credit institutions, for which the central bank is seeking opinions from relevant agencies and individuals before approval.

The proposal also requires credit institutions to submit a feasibility plan for any mergers, have a minimum chartered capital after merger equivalent to the authorized capital and meet other ratios as defined by the laws to ensure healthy operation.

Read the remainder of this entry »


Sun Life forms venture with PVI

Posted February 27, 2015 By stoccato
Sun Life Financial Inc said Thursday it would form a joint venture with Vietnam’s PVI Holdings that will allow Sun Life to sell insurance products in the South Asian country.

Sun Life, Canada’s No. 3 life insurer, said it will own 49 percent of the new entity, PVI Sun Life. Financial details of the transaction were not disclosed.

“The company aims to become a market leader in the sector,” Sun Life said in a statement. It expects the joint venture to commence operations before the end of the year, subject to regulatory approval.

PVI Holdings is a Hanoi-listed subsidiary of state oil and gas group Petrovietnam, and is the leading non-life insurer in Vietnam.

Toronto-based Sun Life is active in at least five Asian countries and has targeted growth in the region under new Chief Executive Dean Connor.


Developer refuses to file bankruptcy

Posted December 11, 2014 By stoccato

Investment General Corporation (SHN) will not file for voluntary bankruptcy despite being short of cash and burdened with a high bad debt ratio, said CEO Dinh Hong Long at the company’s shareholders meeting this week.

SHN has been on the verge of bankruptcy since the beginning of this year, when information leaked that the company would unlikely recover debt due from Beta BQP Joint Stock Co worth a total of VND238 billion (US$11.3 million).

Read the remainder of this entry »


Vietnam may cut dong deposit

Posted November 20, 2014 By stoccato
Vietnam’s central bank may cut the ceiling rate on dong deposits by another 2 percentage points to 9 percent later this year to help boost lending and spur economic growth, a state-run newspaper said on Friday, as policymakers across Asia eye fresh stimulus to combat the global downturn.

Another rate cut in the pipeline would help ease corporate difficulties in accessing bank loans, after Vietnam’s economic growth slowed to an annual pace of 4 percent in the first quarter of 2014, the slowest since 2009.

The downward adjustment would be the last in 2012, the central bank was quoted by the ruling Communist Party-run Nhan Dan (People) daily as telling bankers at a meeting on Thursday.
Read the remainder of this entry »


VietinBank to sell shares to Nova Scotia

Posted October 17, 2014 By stoccato

VietinBank , Vietnam’s top partly private lender by assets, aims to conclude talks to sell a 15 percent stake to Canada’s Bank of Nova Scotia in the second quarter of 2011, a state-run newspaper said on Friday.

VietinBank has been accelerating talks with the Canadian bank so that “in Q2 2011 the bank will officially become a shareholder of VietinBank”, Chairman Pham Huy Hung told the central bank-run Banking Times newspaper in an interview.

Read the remainder of this entry »


Stocks crumple amid investor cautiousness

Posted September 2, 2014 By stoccato
Benchmark VN-Index extended its losing streak to four consecutive trading sessions on October 3 as investors sold off shares to avert risks amid growing uncertainties.
The index of 296 companies and five mutual funds listed on the Ho Chi Minh City Stock Exchange tumbled 1.28 percent, or 5.48 points, to close at 422.12 points. It slid 2.88 percent last week, rose 2 percent last month but shed 1.14 percent last quarter.

Read the remainder of this entry »