Photo: Vnexpress. According to a survey released by Visa International and AC Nielsen, most Vietnamese still prefer to borrow money from family or friends than a lending institution. 58% of respondents indicated that they simply do not have enough money to warrant opening a bank account: only 50% of respondents in Hanoi and 31% in Ho Chi Minh City have bank accounts. 8% said they were aware of debit cards and 91% were aware of ATM cards. 28% claimed awareness of credit cards. Only 2% of those interviewed had ever taken a loan from a financial institution. Respondents thought gold and foreign currency were the safest investments. Stuart Tomlinson, country manager for Visa’s Vietnam, Cambodia and Laos operations, said that generally speaking, people will open savings accounts before applying for credit cards. He added that there was the misconception in Vietnam that it is very complicated to borrow from a bank and that interest rates charged by the banks are steep; and said … [Read more...] about Vietnamese reluctant to borrow money from bank?
Borrowing money from bank
The Vietnam Chamber of Commerce and Industry (VCCI) and Bac Ha International University will host a seminar themed "Capital Solutions for Vietnamese SMEs: From Bank Views" in Hanoi on April 6, 2012. This is part of the "Supporting small and medium sized enterprises to control corporate finance to enhance capital productivity in production and business" project. It aims to create an opportunity for businesses to express their difficulties in accessing loans, particularly from commercial banks, to listen to the latest information on lending policies from banking experts, get advice, borrowing techniques and methods, and common errors in borrowing money from banks. Military Bank introduced a preferential credit package worth VND10,000 billion for exporters to the gathering. Keynote speeches include "Vietnamese businesses in post-WTO accession: Opportunities and challenges in effective capital mobilisation and use" presented by senior economist Le Dang Doanh; "Limitations of … [Read more...] about “Capital Solutions for Vietnam SMEs: From Bank Views” in Hanoi on April 6, 2012
VietNamNet Bridge - The government has instructed the State Bank of Vietnam to work with relevant ministries to design a mechanism to lend money from national foreign exchange reserves to the government to serve spending. Borrowing money from foreign exchange reserves was a solution put forward at the April government meeting. The resolution released after the meeting said the lending of money from the national foreign exchange reserves aims to provide more capital for investment development and to ensure the nation’s financial and monetary security. The idea of borrowing money from the foreign exchange reserves was put into discussion amid a warning about the lack of money for government spending in 2015. In fact, the Ministry of Finance (MOF) fulfilled 34.5 percent of the yearly tax collection plan in the first four months of the year, an increase of nine percent in comparison with the last year’s same period. However, the revenue from crude oil exports, which … [Read more...] about Government plans to borrow money from nat’l foreign exchange reserves
VietNamNet Bridge - Believing that foreign invested enterprises (FIEs) are the potential borrowers, Vietnamese banks cannot approach the clients. Hoang Van Thanh, Chief Accountant of CFT, a Japanese owned copper wire company, said CFT has borrowed capital from a Japanese bank at the interest rate of one percent per annum. Therefore, there is no reason for the company to borrow money from Vietnamese banks which always require much higher interest rates. The representative of YKK, a 100 percent Japanese invested enterprise that makes garments materials, said the company only has to pay 0.5 percent per annum in interest rate for the foreign currency loan from the holding company. Le Hoang Son, Director of the Bien Hoa Industrial Zone branch of Vietinbank, admitted that the bank fails to approach the foreign clients in Dong Nai province. Most of the foreign invested enterprises borrow money from the banks designated by the holding companies. In other cases, enterprises only accept … [Read more...] about FIEs refuse to borrow money from Vietnamese banks
Big Vietnamese commercial banks are going to issue international bonds in 2012. Sacombank’s Board of Directors has said it was going to submit to the shareholder’s meeting the plan to issue 200 million dollars worth of five-year international bonds. These would be unconvertible bonds with no mortgaged assets. Foreign currency capital mobilization going slowly Sacombank plans to issue international bonds in the second or third quarters of 2012 at the market interest rates to be fixed at the time of issuance, which would be listed on the Singaporean Stock Exchange. If the bank’s bond issuance gets the nod from the government, Sacombank would become the fourth bank in Vietnam which plans to issue international bonds in 2012. Prior to that, Vietcombank revealed the plan to issue one billion dollar worth of 10-year international bonds. ACB also planned to issue 100 million dollars worth of bonds. Meanwhile, Vietinbank alone seeks two billions dollars worth of capital … [Read more...] about Banks rush to borrow money from foreign sources