Consumer credit has grown by five times in the last five years, according to the State Bank of Vietnam. The Financial Times newspaper noted that Vietnam’s consumer lending field remains ‘young’. Vietnam has great potential to develop the field thanks to the young population (70 percent of people are 15-64 years old) and the high economic growth rate (over 6 percent). It's easy to access consumer loans In late 2012, total consumer loans were VND230 trillion, accounting for 8 percent of total outstanding loans of the economy. By late 2017, the figure had reached VND1,100 trillion, or 4.8 times higher than 2012, accounting for 18 percent of total outstanding loans. As of December 31, 2018, the total assets of finance and finance leasing companies had reached VND167.822 trillion, up by 18.27 percent over the end of 2017, while their chartered capital had increased by 17.2 percent and regulatory capital by 39.4 percent. The consumer lending market includes … [Read more...] about Consumer credit: risks loom large
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BIDV was among the largest bond issuers in November, with VNĐ8.6 trillion. — Photo BIDV Rising medium- and long-term capital demands to meet stricter regulations on credit safety limits and capital adequacy early next year were putting pressure on commercial banks to issue bonds in the final months of the year, experts said. The latest report from Saigon Securities Incorporation (SSI) released on Monday showed that banks continued to issue bonds worth nearly VND14.15 trillion (US$615.17 million) last month, bringing the total in the first eleven months of this year to VND94 trillion. The issuance made banks the main player in the corporate bond market in the period, accounting for 45.5 per cent of the market’s total bond value. In November, BIDV was among the largest bond issuers with VND8.6 trillion. The bank issued bonds worth a total of nearly VND12.82 trillion in the first eleven months with terms from six to ten years and variable rates to increase long-term … [Read more...] about Banks rush to issue bonds ahead of capital requirement deadline
La Ngoc Khue, former Deputy Minister of Transport, said that a slower train is a far better option for the country at present, instead of the superfast train that comes with a very heavy budget burden. Khue said that a train speed of 350 kilometers per hour (kph) as proposed by the Ministry of Transport (MoT) is redundant. "As the TEDI-TRICC-TEDISOUTH consultancy consortium has estimated, actual demand in 2050 would only meet 40 percent of its capacity of 364,000 people a day. This means 60 percent of seats will not be occupied, while no cargo will be transported, a huge waste of capacity," he told VnExpress. Railways should have the capacity to transport cargo. The World Bank has noted that Vietnam’s logistics cost accounts for 21 percent of its GDP, twice that of Thailand. The main reason is that Vietnam is far too dependent on roads while existing railway routes carry a small fraction of the total volume, Khue noted. "Both China and Japan own the world’s … [Read more...] about A 350 kph train is fast, but where will it get Vietnam?
From November 18 to November 22, State Bank of Viet Nam had made a net cash injection of VND25 trillion ($1.09 billion) into the economy. — Photo vneconomy On December 2 the State Bank of Viet Nam issued 14-day bills worth VND18 trillion (US$782.6 million) at an interest rate of 4 per cent through open market operations. Earlier, from November 18 to November 22, it had made a net cash injection of VND25 trillion ($1.09 billion) into the economy. Experts estimate that around VND62.2 trillion has been pumped through the OMO channel in the last week of November by the central bank after eight straight months of withdrawing money. The injections indicated that the liquidity in the banking system had dried up over the last few months, and the central bank’s move has helped reduce lending interest rates on the inter-bank market, which had risen significantly. On November 26 interest rates on loans of up to one month were up by 0.7-1 percentage points from the previous day to a … [Read more...] about Central bank policies help replenish banking sector liquidity
Prices of condotels across the country have dropped by 8 per cent this year compared to 2018. Photo Batdongsan.com.vn HCM CITY — Prices of condotels have dropped by 8 per cent this year compared to 2018 following disruptions in the profit commitments made to buyers, according to real estate portal Batdongsan.com.vn. The website has released an overview of the real estate market this year, noting the “gloomy” signs in the condotel segment next year. “The year 2020 will be a tough one for the condotel segment as investors are losing confidence after the recent failure by a developer to commit to paying a huge yearly profit of 12 per cent to its customers,” it said. The average price of condotels nationwide dropped from VNĐ40 million (US$1,723) per square metre last year to only VNĐ35 million in the fourth quarter this year, a fall of 8 per cent year-on-year. The potential of the condotel segment is considered less attractive than … [Read more...] about Condotel prices fall amid failed profit commitments