While the EVFTA and CPTPP have paved the way for Vietnamese enterprises to penetrate the world market, high taxes and interest rates have blocked their path. High interest rate, big losses While the EVFTA and CPTPP have paved the way for Vietnamese enterprises to penetrate the world market, high taxes and interest rates have blocked their path. In the woodwork industry, Truong Thanh Corporation (TTF) is a well known name. In 2019, TTF plans to obtain revenue of VND1.234 trillion, higher than 2018, but the profit would still be minus because of loans worth hundreds of billion of dong for which it has to pay high interest rates. These include loans from Agribank with interest rate of 10.5 percent and from VDB 11 percent. TNG Investment & Trade, one of Vietnam’s leading private textile and garment companies, is facing similar problems. It's finance report in the first five months of the year showed that the total capital was VND3 trillion, including VND1.3 trillion … [Read more...] about Taxes, loan interest rates burden VN enterprises
Illustrative image (Photo: Internet) Kuala Lumpur (VNA) – Malaysian police have arrested thousands of loan sharks and cracked down on financial scammers since 2010, said an official. Director of the Commercial Crimes Investigation Department Mohd Zakaria Ahmad said on November 14 that over 5,600 cases involving more than 1,100 people and loans worth over 34 million USD have been discovered. According to him, such crime is increasing in Malaysia with 849 being arrested in the first 10 months of this year, compared to 465 last year. Statistics showed that financial scams caused a loss of 8.38 million USD last year. However, the figure spiked to 13.6 million USD with over 4,200 cases during January – October. As many as 20 scam gangs have so far been smashed this year./. VNA … [Read more...] about Malaysia cracks down on loan sharks, financial scammers
The credit growth rates of state-owned banks are decreasing, but rising at joint stock banks. Vietinbank reported a 3.2 percent credit growth rate in the first nine months of the year as reported in its Q3 finance report. The State Bank will maintain a more reasonable credit growth rate, lower than 14 percent – the target for this year. So, it won’t be a big surprise if the real credit growth rate is 12 percent or 13 percent this year. Agribank’s credit growth rate in the first nine months of the year was also low, just a bit higher than the small growth rate in Q2. Agribank said that if it cannot raise the charter capital, it won’t be able to provide capital to businesses from mid-2020, because the capital adequacy ratio will not meet the requirements. Thanh Lich Bank loans to BOT, BT infrastructure projects in Vietnam worth $4.72 billion Bank loans for build-operate-transfer (BOT) and build-transfer (BT) infrastructure projects by the end of … [Read more...] about Credit growth rises at joint stock banks, falls at state-owned banks
On February 23, the State Bank of Vietnam (SBV) officially issued Document No.1126/NHNN-TTGSNH directing domestic credit institutions (CIs) and branches of foreign-owned banks to enhance security throughout transactions, especially ones relevant to savings accounts at local branches. Dr Le Xuan Nghia, a Vietnamese economist, pointed out that in case Basel II was properly applied, the overall operations at Vietnam-based banks would be carried out more efficiently, eliminating clients and shareholders’ concerns over deposit security. Economist Nguyen Tri Hieu asserted that the fact that banks failed to enhance deposit security alerted the public to the rather loose restrictions on the current financial system. Previously in June 2016, the West Lake branch of BIDV failed to trace a client’s savings’ which mounted up to roughly VND32 billion ($1.4 million). The current scandal was caused by the loss of VND245 billion ($10.8 million) in the savings of a client named Chu … [Read more...] about Deposit security to seize top spot on upcoming bank AGM agendas
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?