The central bank has instructed commercial banks to maintain credit growth in these sectors within safe limits.— Photo zing.vn Huynh Quang Khanh invests in real estate by leveraging credit. Seventy per cent of his investment comes from banks. He has borrowed VND1 billion at an interest rate of 9.5 per cent from a bank in Tan Phu District and also asked some of his relatives to borrow on his behalf from that bank. Khanh, 54, of HCM City’s Tan Phu District, said he was told by the lender that the interest rate had been increased to 12 per cent. “I am looking to sell some of my land to reduce the loans because I am afraid the interest rates would continue to rise and I will be unable to afford,” he said. While Khanh complains about the increase in the rates, Nguyen Cong Tang of Thu Duc District is unhappy that a bank refused to lend him 70 per cent of the value of a house he wants to buy. He said in the past the bank was always ready to lend him the money but now … [Read more...] about Banks begin tightening screws on property credit
Over the past three years, the manipulation of voting rights or shareholder activism among leaders in the board of directors in Vietnam-based commercial banks was among the most debatable issues brought up at the banks' annual general meetings (AGM). AGMs aimed at appointing new leaders of banks as to create a fair voting environment On April 20, Sacombank (HSX: STB ) scheduled to hold its AGM to evaluate the 2017 financial year. The AGM will appoint two members of the bank's board of directors (BoD) for the term 2017-2021, one of whom would be an outside director. Previously, Kieu Huu Dung, permanent vice president of the BoD at Sacombank, handed in his resignation due to personal reasons, which was later approved by the bank's BoD. Notably, Dung was elected as a member of the bank's BoD for the term of 2017-2021, leaving three years befire his term would have ended. As announced by Sacombank, the proposal of dismissing Kieu Huu Dung as a permanent member of the BoD would … [Read more...] about Shareholder activism tops banks’ AGM agendas
Vietnamese prosecutors have brought charges against a former State Bank of Vietnam deputy governor for his dereliction of duty in overseeing a loss-making commercial bank, resulting in hefty losses for the lender. Dang Thanh Binh, deputy governor of the central bank from 2005 until his retirement in 2014, was charged for negligence that resulted in a series of high-profile scandals and massive losses at the erstwhile TrustBank. The charge was filed by the People’s Supreme Procuracy on Thursday, according to a source close to Tuoi Tre (Youth) newspaper. In 2012 TrustBank was sold to a group of investors led by Pham Cong Danh who rebranded it as the Vietnam Construction Joint Stock Commercial Bank (VNCB). However, under his leadership, VNCB suffered losses of more than VND9 trillion (US$402 million), forcing a bailout by the State Bank of Vietnam. Danh was sentenced in 2016 to 30 years behind bars for his role in the VNCB scandal and the bank was again rebranded, this time as … [Read more...] about Ex-deputy governor of Vietnam’s central bank prosecuted for role in $400mn loss
The Ho Chi Minh City People’s Court on February 7 decided to return the dossier of the case “deliberately violating State regulations on economic management causing severe consequences” at the Vietnam Construction Bank (VNCB, now Construction Bank – CB), and requested further investigation. Pham Cong Danh (L), former VNCB Chairman and former Chairman of the Member Council and General Director of Thien Thanh Group, at the trialAccording to the jury, during the over-one-month trial, defendant Tram Be, former Vice Chairman of the Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), affirmed that he had met and discussed with defendant Pham Cong Danh, former VNCB Chairman and former Chairman of the Member Council and General Director of Thien Thanh Group, and ordered Phan Huy Khang, former General Director of Sacombank, to make procedures for lending money to Danh.Tram Be said he had not known the real purpose of Danh’s borrowing and had not acted for … [Read more...] about Court requests further investigation into Construction Bank case
To date, the Ho Chi Minh City Department of Taxation has yet to enforce tax payments from Uber B.V because the company has yet to open a bank account in Vietnam. Speaking at the regular monthly government press conference organised on February 2, Deputy Minister of Finance Nguyen Thi Mai stated that the tax department faces difficulties in collecting tax arrears from Uber B.V.Thus, the General Department of Taxation will review regulations and guide the Ho Chi Minh City Department of Taxation on collecting Uber B.V’s tax arrears.Previously, by the December 23 deadline, Uber only paid VND13.3 billion ($585,665) of the VND66.68 billion ($2.94 million) of tax arrears, thus the department decided to take enforcement measures.Accordingly, after receiving approval from the People’s Court of Ho Chi Minh City, the city Department of Taxation requested five banks—Vietcombank, Eximbank, Sacombank, ACB, and VietinBank—to facilitate enforcement against Uber. … [Read more...] about Vietnam fails to enforce tax payments from Uber B.V?