The Hanoitimes - State firms that have completed the privatization process are expected to float shares on local bourses and create space for more foreign investors to invest in the local stock market. A finalization of legal framework is needed to address issues during the process of privatization and divestment of state capital at state-owned enterprises (SOEs) in the 2021 – 2025 period, according to Deputy Prime Minister Truong Hoa Binh. The progress of SOEs privatization remains slow, meeting 28% of the target so far. The Ministry of Finance is tasked with instructing the State Securities Commission (SSC), the country’s stock market watchdog, to ensure SOEs that have completed the privatization process float shares on local bourses and create room for more foreign investors to invest in the local stock market. Meanwhile, the Ministry of Planning and Investment is responsible for summing up suggestions and concerns from the business community to report to Prime Minister Nguyen Xuan Phuc for appropriate supportive measures. Deputy PM Binh also requested the Ministry of Natural Resources and Environment to review existing land-related regulations that are hindering the privatization process and causing difficulties for some SOEs to determine their own values. The privatization process is expected to speed up at Vietnam Cement Corporation (VICEM) and Housing and Urban Development Corporation (HUD) under the management of the Ministry of Construction, as well as for the Vietnam Bank for Agriculgure and Rural Development (Agribank) under the State Bank of Vietnam. In a recent report from the Ministry of Finance, of the total of 128 SOEs due to undergo privatization during the 2017 – 2020 period, only 37 have completed the progress as of July 2020, or 28% of the target. From 2016 to July 2020, 177 SOEs had their privatization schemes approved with total asset value of VND443.5 trillion (US$19.1 billion), of which the state capital …
Agribank
Vietnam banks record highest increase in brand value: Brand Finance
The Hanoitimes - With five new banks included in this year’s Brand Finance Banking 500, the total number of Vietnamese banks in the global top 500 banks in brand value hits nine. Vietnam banks recorded the highest increase in brand value, at 146%, according to Brand Finance’s latest Banking 500 report. Source: Brand Finance Report. Notably, Vietcombank climbed by 99% year-on-year in 2020 to US$0.8 billion in brand value, the second highest growth rate by percentage globally. Since the Vietnamese government introduced its strategy to boost accountability and strength of the banking sector, including more stringent capital requirements and greater transparency, customer perception has improved, stated the report. “Growing confidence in the sector – reputation measures have improved 8% in Brand Finance’s research – has translated into higher revenues and a more positive outlook from equity analysts,” added Brand Finance. In 2019, there were only four Vietnamese banks, namely Vietcombank, BIDV, VietinBank and VPBank in the list, this year’s ranking included another five banks in Agribank, Techcombank, MB Bank, ACB and Sacombank, taking the number of Vietnamese bank in the global top 500 banks in brand value to nine. Compared to last year’s report, Vietcombank’s ranking improved from 325th to 207th, BIDV from 307th to 276th, VPBank from 361st to 280th, while only VietinBank moved down from 242nd to 277th. The rankings of the five new banks in this year list was 190th, 327th, 386th, 420th, and 422nd, respectively. For the first time since 2009, the total brand value of the world’s 500 largest banks has declined year on year – from US$1.36 trillion in 2019 to US$1.33 trillion this year. China’s ICBC retained its top spot as the world’s most valuable banking brand, breaking the US$80 billion mark. Chinese banks continue to occupy the top four of the Brand Finance Banking 500 2020 ranking. Meanwhile, five US banks are in the top 10, …
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Vietnam government to raise registered capital at major state-run banks in Q1
The Hanoitimes - All four major state-run banks, including Vietcombank, Vietinbank, Agribank and BIDV, are expected to qualify for Basel II standards in 2020. The Vietnamese government plans to raise registered capital of two major state-run banks Vietcombank and Vietinbank by around VND10 trillion (US$432.32 million) right in the first quarter of 2020, according to Deputy Prime Minister Vuong Dinh Hue. Illustrative photo. In case of Agribank, the lender’s taxable profit in 2020 would be used to increase its registered capital, Hue informed at a meeting with senior leaders of Hanoi-based Military Bank (MB Bank) on January 30. Hue suggested MB Bank consider solutions to increase the bank's registered capital. It is one of the first three banks in Vietnam qualified for requirements on capital adequacy ratio (CAR) under Basel II standards. In a meeting last December, Hue expected all four major state-run banks, including Vietcombank, Vietinbank, Agribank and BIDV, to qualify for Basel II standards in 2020. By the end of 2020, all commercial banks are required to qualify for Basel II standards, a condition for local lenders to expand their respective credit growth limit and increase registered capital. To date, only 16 out of 38 local banks are able to meet the Basel II standards. As of present, the respective CAR of Vietcombank, BIDV, Vietinbank and Aribank is approaching the minimum requirement of around 8% for Basel II, while the total assets and outstanding loans at these four banks account for nearly 50% of the total in the country’s banking system. Meeting with President of global private equity firm Warburg Pincus Timothy F.Geithner on December 17, 2019, Hue revealed the government would consider reducing its ownership at these banks to 65% by 2025. The move would be part of the government’s efforts to open the financial market to foreign investors, particularly in financial services, in compliance with Vietnam’s …
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