Major banks to lower lending rates

Photo taken of customers at a branch of Vietcombank in Hà Noi

Major banks lowered their lending interest rates following official calls to ease business operations and assist the market. Prime Minister Nguyễn Xuân Phúc and the State Bank of Việt Nam (SBV) had called for the rate cuts, before Phúc took part in a dialogue with enterprises in HCM City yesterday. Trần Bắc Hà, Chairman of the Bank for Investment and Development of Việt Nam (BIDV), said his bank cut rates for short-term loans by 0.5 percentage points, and adjusted the rates for medium to long-term loans to no more than 10 per cent per year yesterday. The adjustments will apply for loans related to production and business activities. Hà said the bank would speed up mobilising medium and long-term capital to ensure credit security, and closely control property and securities loans and other areas with high risks in the coming months. It would try to diminish VNĐ500 billion to VNĐ600 billion (US$22.2 million to $26.7 million) in operational costs in 2016, he said. The Bank for … [Read more...]

Vietinbank looking for more M&A opportunities

Vietinbank serves its customers in Ha Noi. Tha bank seeks M&A to expand its business. — Photo vietinbank.vn

The Viet Nam Bank for Industry and Trade (Vietinbank) will continually look for merger and acquisition (M&A) opportunities with other banks to expand its reach and market share. Vietinbank Chairman Nguyen Van Thang said at the bank's shareholders meeting on Tuesday that in future M&As in the banking industry would be indispensable and Vietinbank would scrutinise more such deals if and when it sees a good business opportunity. Vietinbank General Director Le Duc Tho also announced that Vietinbank expected to conclude a long awaited merger with PG Bank before September. At the shareholders meeting last year, Vietinbank approved a merger plan with PG Bank. However, the merger has so far not been completed due to complicated procedures, as the State holds majority stakes in both Vietinbank and PG Bank. At the meeting on Tuesday, Vietinbank reported a pre-tax profit of VND7.345 trillion (US$326 million) last year, up 0.6 per cent against the previous year. The bank's … [Read more...]

VietinBank may acquire more banks

Thao Nguyen Leaders of VietinBank unveiled the plan to take over more banks at a shareholder meeting on April 26. VietinBank chairman Nguyen Van Thang told the general meeting that the bank would consider merging with other banks if opportunities come. At the general meeting last year, VietinBank shareholders approved a merger deal with PGBank and a share swap at a 1:0.9 ratio. The ratio means a share of PGBank would be exchanged for 0.9 share of VietinBank. PGBank has total chartered capital of VND3 trillion with 40% owned by Vietnam National Petroleum Group (Petrolimex). Last year, PGBank earned VND52.2 billion in pre-tax profit, equivalent to one-third of the 2014 figure. The bank said in the 2015 financial report that its profit went down as it set aside a sum to prepare the merger, in addition to high risk provisions. At on April 26’s meeting, VietinBank announced pre-tax profit of over VND7.3 trillion last year, up 0.6% from a year earlier, and the bad debt … [Read more...]

VN enterprises war against foreign goods

The Vietnam market with a strong purchasing power and young population is an attractive destination of foreign retailers.

VietNamNet Bridge - While foreign firms are massively coming to Vietnam to open hypermarkets and modern shopping centers, local enterprises are trying to occupy the remaining gaps of the market. Mr. Ho Hiep, a resident in Go Vap District, Ho Chi Minh City, said that in a radius of 3km around his house on Le Duc Tho Road, there are eight supermarkets and hypermarkets, not to mention dozens of convenient stores. Since late 2014, many supermarkets and large shopping centers have been inaugurated in this district. Many others are opening in early 2016. In 2015 HCM City welcomed many new commercial centers and large supermarkets covering the downtown area to the suburbs. After the joint venture Mapletree of Singapore and Saigon Co-op put SC VivoCity Vietnam into operation in District 7 in April, SSG launched Pearl Plaza with a similar model in the Van Thanh - Binh Thanh urban area. Next, Vincom Mega Mall also opened to visitors in Thao Dien, District 2, just 1 km from Pearl Plaza. The … [Read more...]

Nguyen Van Thang: Youngest bank president is new member of Party’s Central Committee

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VietNamNet Bridge - He is the youngest president of a large commercial bank and one of the youngest members of the Communist Party Central Committee newly elected for a 12-year term. He was born in 1973. In early 2014, VietinBank’s shareholders were worried as Pham Huy Hung, who was then the chair of the board of directors and considered the ‘soul’ of the bank, was about to retire. They argued about who would take the office as the new president of the bank. The answer was found at the 2014 annual shareholders’ meeting held on April 29, where Nguyen Van Thang was appointed the new president to replace Hung, while Le Duc Tho was appointed as the new CEO to replace Nguyen Van Thang. "In a flat world, young people don’t need to wait to get experience, but they can practice themselves and get expertise from the business environment, communication, books and internet,"Nguyen Van Thang, President of VietinBank The appointment satisfied VietinBank’s … [Read more...]

Social News 19/2

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Underground section of Metro Line No.1 ready in 2019 The 2.6-kilometer underground track of Metro Line No. 1 in HCMC from the central station near Ben Thanh Market to Ba Son Shipyard will be completed in February 2019, contractors said. According to the HCMC Management Authority for Urban Railways (MAUR), Package 1B comprises the underground section, two underground stations and a 1,315-meter tunnel. The four-storey station near the Opera House will be 40 meters deep and contractors are working on this 190-meter-long station round the clock. Contractors of the package said one of the major problems with construction of the underground track is the relocation of underground infrastructure facilities whose layout plans are nowhere to be found. Therefore, relocation work is time-consuming. However, the contractors are pinning high hopes that the underground section and stations could be finished in February 2019. MAUR said the 17-kilometer-plus elevated track of Metro Line No. 1 … [Read more...]

Two killed as tipper truck crashes into crowd after descending bridge in Vietnam

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A fatal accident occurred in Ho Chi Minh City on Wednesday as a tipper truck crashed into a crowd after descending a bridge, killing two people and injuring several others. At around 11:15 am, a truck coming off the Truong Dai Bridge in Go Vap District lost control, ramming into a crowd gathered at a market on Le Duc Tho Street, Go Vap District. Two people in the crowd, a man and a woman on their motorbikes died on the sport after being hit and dragged by the truck. The tipper truck continued to barrel through more people and vehicles before finally stopping in front of a vegetable shop owned by Nguyen Minh Hoc. Hoc said several people were browsing his products at the time of the accident. As soon as he spotted the oncoming truck, the shopkeeper Hoc quickly warned his customers of danger and pulled several others into his store. "As the truck came to a stop, I looked around and saw many people and motorcycles lying on the ground," Ho said. At least four victims were … [Read more...]

Banks to raise capital to meet Basel II standards

HA NOI (VNS) — Large local banks, which are chosen by the State Bank of Viet Nam (SBV) to apply Basel II governance standards, are trying to increase capital to meet the standards. Under the SBV's plan, ten commercial banks will officially apply international bank management standards in accordance with Basel II governance standards from this month. The selected banks are the biggest and most prestigious ones in Viet Nam, and they include the Bank for Investment and Development of Viet Nam (BIDV), Viet Nam Bank for Industry and Trade (VietinBank), Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank), and Viet Nam Technological and Commercial Joint Stock Bank (Techcombank), in addition to Southeast Asia Commercial Joint Stock Bank (ACB), Viet Nam Prosperity Bank (VPBank), Military Commercial Joint Stock Bank (MB), and Maritime Bank. The other banks were Sacombank and Viet Nam International Commercial Joint Stock Bank (VIB). The banks, which will pilot capital … [Read more...]

Two killed in deadly HCM City road accident

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At least two people were killed and many others injured after an accident involving a truck on February 17 in HCM City. Multiple motorbikes hit by the truck According to the witness, one of three trucks carrying construction materials on Le Duc Tho Street crashed into the motorbikes ahead after sliding down a steep slope. About eight motorbikes were hit. Three motorbikes were dragged under the truck while the truck continued on to hit two pedestrians standing by a market. The scene of the accident A witness said, "We yelled and called out but it kept on running and hitting bystanders. It was horrible. We then called taxis to bring the injured people to hospital as soon as possible. The truck driver claimed that the truck’s brakes had stopped working, but then he ran away." Go Vap District police were sent to the scene to regulate traffic and investigate the incident. … [Read more...]

Truck hits motorbikes, kills 2

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Deputy PM orders stricter measures to ensure road safetyAccidents kill 22 on first day of TetTrain derailed after colliding truckTwo die in truck collisionTruck driver killed after collision with train HCM CITY (VNS) — At least two people, including a woman, were killed and three others injured after a truck carrying building materials hit seven motorbikes here this afternoon on Le Duc Tho Street. The motorbikes had been travelling in the same direction as the truck when the accident occurred. The truck driver immediately fled the scene after the crash. The accident brought traffic to a standstill. The motorbikes had to be destroyed as a result of the damage. Local police are investigating the case. — VNS … [Read more...]

HCM City drainage channels disappearing

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Ho Chi Minh City’s canals, drains and waterways are being filled up or clogged, making the city increasingly susceptible to flooding during rains. A lack of public awareness and poor city management have been blamed for the problem. The Opal Riverside project is encroaching on city drainage channels HCM City has over five kilometres of channels and canals used for drainage. However, 54 of 110 channels and canals managed by the city Urban Drainage Company have been completely or partially filled up. As a result, the city is easily flooded when it is rain. According to the locals, ever since Cau Cut Canal was narrowed due to new housing and illegal rubbish tipping, the streets of Le Duc Tho, Cay Tram and Pham Van Chieu have often experienced flooding. Real estate investors are encroaching on storm channels and canals for new projects. Rapid urbanisation rate is destroying the city storm drainage capacity. The Dat Xanh Corporation’s Opal Riverside project has also raised … [Read more...]

Heavy trucks to be banned from 30 streets at rush hour

HA NOI (VNS) — Certain specific vehicles will be banned from entering 30 streets in Ha Noi at three rush-hour slots during the 12th National Congress of the Communist Party of Viet Nam. The congress is scheduled to take place between January 21 and January 28 at the National Convention Centre in Ha Noi. The three rush-hour slots are from 6am to 8:30am, from 11am to 2pm, and from 4pm to 6pm. Trucks with loading capacity of over 500kg, and coaches, will be banned from entering the streets of Pham Hung, Thang Long Boulevard, Do Duc Duc, and Tran Duy Hung, in addition to Nguyen Chi Thanh, Khuat Duy Tien, Nguyen Trai, and Tran Phu. The other streets that have banned access to those vehicles are To Huu, Le Van Luong, Hoang Minh Giam, and Hoang Quoc Viet, in addition to Kim Ma, Lieu Giai, Van Phuc, and Van Bao. Nguyen Thai Hoc, Tay Son, Le Truc, and Tran Phu, along with Hung Vuong, Chu Van An, Hoang Dieu, and Doc Lap, will also not allow access to trucks and coaches. Along with … [Read more...]

Hanoi issues travel ban on 30 streets for Party congress

Hanoi authorities on Wednesday announced that they would ban large vehicles from traveling on more than 30 streets between January 20 and 28, to ensure security for the 12th National Party Congress. The congress is scheduled to take place at the National Convention Center. According to the police, from 6 a.m. to 8:30 a.m., 11 a.m. to 2 p.m. and 4 p.m. to 6 p.m. from January 20-28, trucks carrying 500 kilograms of cargo or more and buses carrying at least 25 passengers will be banned from entering Pham Hung Street and part of Thang Long Boulevard near the center. Other streets included in the ban are Do Duc Duc, Tran Duy Hung, Nguyen Chi Thanh, Khuat Duy Tien, Nguyen Trai, and Tran Phu. The other streets that have banned access to those vehicles are To Huu, Le Van Luong, Hoang Minh Giam, Hoang Quoc Viet, Kim Ma, Lieu Giai, Van Phuc, and Van Bao. Nguyen Thai Hoc, Tay Son, Le Truc, and Tran Phu, along with Hung Vuong, Chu Van An, Hoang Dieu, and Doc Lap, will also not allow access to … [Read more...]

Public express beliefs in the success of upcoming Party Congress

Party leader Nguyen Phu Trong speaks at the closing ceremony. (Photo: VNA)

(VOVworld) - The 14th plenum of the 11th Party Central Committee closed in Hanoi on Wednesday. After three days of working, members of the Party Central Committee reached consensus on the signing and ratification of the Trans-pacific Partnership Agreement, continuing to complete personnel preparations for the 12th National Party Congress and a list of nominations for key leadership posts of the Party and State of the 12th tenure. The Central Committee generally agreed with the Politburo’s proposal on the tentative lists of the Presidium, the Secretarial Delegation, and the Commission for Investigating Eligibility of delegates attending the 12th Party Congress. Party leader Nguyen Phu Trong delivered a key note at the closing ceremony affirming that the meeting was a success and completed preparations for the 12th National Party Congress as scheduled. The plenum continued to receive great attention from the public nationwide. Nguyen Thanh Ly from Buon Ma Thuot City, Dak Lak … [Read more...]

Trucks, coaches banned from 30 Hanoi streets

A traffic police is on duty in a street of Ha Noi. — Photo hanoimoi.com.vn

Certain specific vehicles will be banned from entering 30 streets in Ha Noi at three rush-hour slots during the 12th National Congress of the Communist Party of Viet Nam. The congress is scheduled to take place between January 21 and January 28 at the National Convention Centre in Ha Noi. The three rush-hour slots are from 6am to 8:30am, from 11am to 2pm, and from 4pm to 6pm. Trucks with loading capacity of over 500 kilogrammes, and coaches, will be banned from entering the streets of Pham Hung, Thang Long Boulevard, Do Duc Duc, and Tran Duy Hung, in addition to Nguyen Chi Thanh, Khuat Duy Tien, Nguyen Trai, and Tran Phu. The other streets that have banned access to those vehicles are To Huu, Le Van Luong, Hoang Minh Giam, and Hoang Quoc Viet, in addition to Kim Ma, Lieu Giai, Van Phuc, and Van Bao. Nguyen Thai Hoc, Tay Son, Le Truc, and Tran Phu, along with Hung Vuong, Chu Van An, Hoang Dieu, and Doc Lap, will also not allow access to trucks and coaches. Along with those … [Read more...]

Trucks, coaches banned from 30 streets

A traffic police is on duty in a street of Ha Noi. — Photo hanoimoi.com.vn

Party Central Committee to finalise 12th Congress preparationsMore young people will be in the Party Central Committee HA NOI (VNS) — Certain specific vehicles will be banned from entering 30 streets in Ha Noi at three rush-hour slots during the 12th National Congress of the Communist Party of Viet Nam. The congress is scheduled to take place between January 21 and January 28 at the National Convention Centre in Ha Noi. The three rush-hour slots are from 6am to 8:30am, from 11am to 2pm, and from 4pm to 6pm. Trucks with loading capacity of over 500 kilogrammes, and coaches, will be banned from entering the streets of Pham Hung, Thang Long Boulevard, Do Duc Duc, and Tran Duy Hung, in addition to Nguyen Chi Thanh, Khuat Duy Tien, Nguyen Trai, and Tran Phu. The other streets that have banned access to those vehicles are To Huu, Le Van Luong, Hoang Minh Giam, and Hoang Quoc Viet, in addition to Kim Ma, Lieu Giai, Van Phuc, and Van Bao. Nguyen Thai Hoc, Tay Son, Le Truc, and … [Read more...]

Flexible fx rate mechanism stabilises market

Le Duc Tho,

On Monday, the State Bank of Viet Nam (SBV) began applying a daily-adjusted "central rate" instead of maintaining a fixed reference rate for a long period of time. This was the first time the central bank had done so and Le Duc Tho, General Director of the Viet Nam Bank for Industry and Trade (VietinBank), talked to Vietnam News Agency reporter Thuy Ha about the change. What is the difference between the new central rate and the old one? The central rate is defined based on three factors: average exchange rate moves in the inter-bank foreign currency market; exchange rate developments related to the currencies of countries that are involved in Viet Nam's trade, investment and financing to a major extent; and macroeconomic balances and the goals of monetary policies. The fluctuations of one or all these elements will affect everyday operations of the central rate. Formerly, when we used an average inter-bank rate which stayed relatively stable during a period of time, the pressure … [Read more...]

Objectives of daily exchange rate policy

VGP – The State Bank of Viet Nam said on Monday its daily exchange rate, applicable the same day, aims to elevate the VND value and prevent USD hoarding. It will also facilitate VND/USD transactions and encourage people to bank their savings in VND, said Vice Governor of the State Bank of Viet Nam Nguyen Thi Hong. The central bank also said it will still maintain the trading band for VND/USD transaction of -/+ 3%. The new mechanism will provide basis for credit organizations and branches of foreign banks to decide buying and selling rate between VND and USD in stead of fixing a rate for a period of time. VietinBank General Director Le Duc Tho said the new exchange rate mechanism is a necessary step conducive to the market and international integration process./. By Quang Minh … [Read more...]

Hanoi roads to be closed off for Party congress drill

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The grey line indicates the road part to be closed in Hanoi on January 5, 7 and 9 for the Party congress preparation. Photo credit: VnExpress Hanoi will close off some streets in Tu Liem District on January 5, 7 and 9 as security drills continue for the national Party congress to be held at the end of the month. A statement from the city traffic police said parts of Le Duc Tho and Le Quang Dao Streets from the Le Duc Tho – Nguyen Hoang Circle to Me Tri – Le Quang Dao intersection will be closed to traffic from 6 a.m. to noon. This section runs in front of the My Dinh National Convention Center where the drill will be performed. On nearby roads too vehicles will have to stop to make way for military and police vehicles, it said. A similar drill was held Sunday morning with around 5,200 officers from the military and the Ministry of Public Security taking part with more than 200 armored and other specialized vehicles. The 12th Party congress, a quinquennial event, will … [Read more...]

Phu Tho Investment Promotion Conference: Connecting Government with Investors

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The Phu Tho Provincial People’s Committee in cooperation with the State Bank of Vietnam (SBV) recently held Conference on Investment Promotion of Phu Tho Province 2015. Under the chairmanship of Politburo Member, Deputy Prime Minister Nguyen Xuan Phuc, Head of the Northwest Steering Committee, the conference attracted more than 500 delegates who were government officials, representatives from central agencies, embassies, international trade organisations, economic experts, entrepreneurs and investors in Vietnam and the world. Addressing the opening session, Mr Hoang Dan Mac, Secretary of the Phu Tho Provincial Party Committee and Chairman of Phu Tho Provincial People’s Council, said, situated in the heart of the region, standing in the northwest gateway to Hanoi, serving as a bridge for Northwest provinces and Red Delta provinces, and lying on Haiphong - Hanoi - Kunming Economic Corridor, Phu Tho province gathers all favourable conditions for economic and commercial … [Read more...]