Several local banks have reduced their interest rates in recent days, going against the banking sector’s general year-end trend of increasing rates to boost earnings. Savings rates were reduced by 0.1-0.2 percentage points by ABBank, Saigon-Hanoi Bank (SHB), VPBank and Techcombank.— Photo vietnamnet.vn On Monday, Saigon Commercial Bank (SCB) cut its 24-month savings rate by 0.2 percentage point to 7.55 per cent per annum. Ban Viet Bank (VietCapitalBank) in early November curbed savings rates by 0.1-0.2 percentage point for accounts with terms of less than 12 months and more than 24 months. But the bank raised rates for 15-month accounts by 0.2 percentage point to 8.5 per cent per annum. At Eximbank, savings rates for 15-month and 18-month accounts were also cut by 0.2 percentage point to 8.1 per cent per annum. Savings rates were reduced by 0.1-0.2 percentage points by ABBank, Saigon-Hanoi Bank (SHB), VPBank and Techcombank. The banks’ third-quarter financial … [Read more...] about VN banks lower savings rates but base rate could still be high
Hedging exchange rate risk
Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst for capital. But there are risks. A report of the State Securities Commission (SSC) showed that VND60 trillion worth of corporate bonds were issued in the first half of the year. Meanwhile, according to Military Bank Securities, the figure is VND70 trillion. Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst for capital. But there are risks. The high bond interest rate is what analysts find worrying. Kim Chi Real estate firms switch to bonds due to less bank loans Bond issuance is becoming an ideal channel for real estate firms to raise capital as credit policies for property development are gradually being tightened, experts said. Strong desire for M&A deals in real estate Foreign investment flows into Vietnam’s property sector through merger and acquisition transactions have been reported to be on a strong … [Read more...] about What’s behind real estate firms’ race to issue corporate bonds?
Ben Thanh-Suoi Tien metro project has completed about 70 percent of the work volume, expected to be done by the end of 2021 (Photo: SGGP) The announcement was made by deputy chairman of the city People’s Committee Vo Van Hoan on the sideline of a conference on technology application in reducing traffic accidents in the city yesterday. Despite the capital reduction, Mr. Hoan affirmed that the project’s construction progress and quality will be ensured. According to Mr. Hoan, the first metro line was scheduled to be built within five years but it has lasted for nearly ten years. The project’s implementation has seen some problems for taking place during a long phase amid unclear legal basis and shortage of practical experience. VND3.4 trillion is the total money saved after the city eliminating unnecessary factors and items from auctioning and bidding, Mr. Hoan said. After the Politburo gave opinions about the projects, the Government has assigned the city to … [Read more...] about Total investment of HCMC’s first metro line reduces by VND3.4 trillion
HCMC has cut unnecessary costs to lower the investment capital for its first metro line by VND3.4 trillion (US$146.5 million) to VND43.6 trillion. Workers at an underground section of the first metro line project in HCMC. The investment required for the project has been reduced by VND3.4 trillion On the sidelines of a conference on traffic safety on November 13, HCMC Vice Chairman Vo Van Hoan said the municipal government would submit the plan on investment reduction to the municipal People’s Council so that the council can issue a resolution to allocate the reciprocal capital for the project at its meeting at the end of this year. Hoan stated that the total investment has been greatly reduced, but this will not affect the quality of the project. The project is 75% complete, so all major variables have been identified and there are few chances of additional costs arising. In principle, the Government will disburse the capital as soon as the city adjusts the investment … [Read more...] about HCM City’s metro project costs cut by US$146.5 million
Commercial banks’ purchase of real estate corporate bonds is considered indirect lending to real estate firms, experts say. Corporate bond rush The interest rates for the following years will be calculated by the average interest rate of three banks plus 4.8 percent. The bond interest rates of 10-14.5 percent per annum have caught special attention from the public because they are double bank deposit interest rates. However, the real interest rates bond holders can receive won’t be that high after they pay fees to banks. The HCMC Infrastructure Investment JSC issued VND200 billion worth of bonds with the interest rate of 11 percent for the first year. The interest rates for the next years will be calculated by the TP Bank’s one-year deposit interest rate plus 3.5 percent. Risks Kim Chi What's behind real estate firms’ race to issue corporate bonds? Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst … [Read more...] about VN banks told to be careful with corporate bonds