Construction banks

Vung Tau city in Ba Ria-Vung Tau province (Photo courtesy of the provincial People’s Committee) HCM City (VNA) - The southern coastal province of Ba Ria - Vung Tau has asked the Government to allocate capital from the central budget to speed up progress of national key projects in the province over the next five years. Of the 16 major public-invested projects , three of the most important projects are the Bien Hoa – Vung Tau expressway , Phuoc An Bridge and 991B Road, according to the provincial People’s Committee. Nguyen Van Tho, Chairman of the provincial People’s Committee, said the three national key projects would connect the southern key economic region with the Cai Mep – Thi Vai deep water port, a key port in the region. “The port system can receive large container vessels of up to 200,000 deadweight tonnage (DWT) and is capable of international goods transport, which allows direct export to the EU and the US without transshipment, reducing logistics costs and improving the competitiveness of Vietnamese goods,” he said. The expressway, connecting Bien Hoa City in Dong Nai and Ba Ria City in Ba Ria - Vung Tau, is expected to be completed and opened to traffic by 2025. The province said it had asked the PM to approve the pre-feasibility study for the first phase of the project, which will be implemented under the build-operate-transfer (BOT) investment model. To build the expressway, around 34.2km of the road will be built in Dong Nai and 19.5km in Ba Ria-Vung Tau. The project requires an estimated investment of 23.07 trillion VND (995.5 million USD), according to the provincial People’s Committee. The province proposed that 9.95 trillion VND should be sourced from the State budget to fund site clearance and construction of the section in the province, and that 13.125 trillion VND should come from the private sector. The developer of the project will mobilise the remainder from its own budget and bank loans. To recover …

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Deposits at banks modest due to low interest rates A person arranges stacks of Vietnamese banknotes. Capital has been poured into other sectors rather than banks due to their low deposit rates According to the Department of Credit for Economic Sectors under the State Bank of Vietnam, in the first quarter of this year, the deposit growth reached only 0.54%, well below the credit growth of 2.93% and the average deposit growth of 2.28% in the first quarter of the past seven years, Lao Dong newspaper reported. At present, the rate for savings of less than six months is 3%-4%. Meanwhile, tenors of six to less than 12 months and over 12 months enjoy a rate of 3.5%-5.5% and 4.6%-6%, respectively. Although some banks have revised up their deposit rates by 0.1-0.4 percentage points, the banks’ average deposit rate in the first quarter remained some 2 percentage points lower than that in the same period last year. If the trend continues, the banking system’s liquidity will no longer be ample this year, according to Bao Viet Securities Company. Meanwhile, the General Statistics Office stated that capital had been injected into other sectors, with life insurance premium soaring 11%. Meanwhile, the securities market mobilized nearly VND55.6 trillion, surging 42% over the same period last year. Pham Lam, vice chairman of the Vietnam Association of Realtors, attributed land fevers over the past few months partly to residents’ idle money and their expectations of higher prices of real estate products. According to Dao Minh Tu, deputy governor of the central bank, as of mid-March, banks’ outstanding loans for the property sector grew 2.13%, higher than the current credit growth of 2.04%, despite the central bank’s close control over credit for the sector. Market rebounds, VN-Index returns to 1,250 point-level Shares settled higher on Wednesday, reversing their morning course on recoveries of materials and banking stocks. The benchmark VN-Index …

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Trading at JSC Bank For Investment and Development of Vietnam (BIDV)'s office. The bank shares plunged nearly 2.2 per cent on Thursday. — Photo www.bidv.com.vn Viet Nam’s stock exchange ended mixed on Thursday as the benchmark VN-Index reversed course to finish lower while the HNX-Index continued its rally. On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index declined by 8.62 points, or 0.69 per cent, to 1,247.25 points. The index rose slightly 0.15 per cent in the morning trade. The market breadth was negative with 294 stocks dropping while 141 stocks climbed. The market’s liquidity remained high as nearly 806.5 million shares were traded, worth over VND20.6 trillion. The index successfully tested the support territory of 1,225 – 1,232 points and rebounded at the end of Wednesday’s trade. The move is expected to help the index continue to rise and head toward the resistance zone of 1,275 – 1,300 points in the short-term, Bao Viet Securities Company said in a daily report to customers. “However, during this period, the market is likely to be dominated by some large-cap stocks, along with a strong division between groups of stocks,” the securities firm added. April futures contracts expired yesterday and the event might have a huge impact on large-cap stocks in the VN30 basket. The VN30-Index, which tracks the 30 biggest stocks in HoSE, fell 0.51 per cent to 1,284.2 points. Of the VN30 basket, 24 stocks declined while only five increased. Stocks from banking, materials, utilities, information technology, retail, transportation and logistics posted poor performance on Thursday. Of which, top five stocks weighing the market were Vietcombank (VCB), JSC Bank For Investment and Development of Vietnam (BID), Investment And Industrial Development Corporation (BCM), Techcombank (TCB) and Vietnam Rubber Group JSC (GVR). VCB posted the biggest loss in market capitalisation, down 1.22 per cent. The losses were limited by gains in material stocks and real …

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