Thao Nguyen Most small banks have revised up rates for deposits from 12 months by 0.3-0.5 percentage point against the previous month and by one percentage point versus early this year to have more money to meet demand of corporate borrowers. Global Petroleum Bank (GPBank) and Vietnam Construction Bank (VNCB), which are both undergoing restructuring, have quoted the 12-month rate at 7.3% per annum, 0.7 to one percentage point higher than other lenders. Meanwhile, Vietcombank, ACB and Eximbank have offered 12-month rates of around 6-6.5% per annum. According to a banker in Hanoi, enterprises have more demand for long-term capital while banks have focused on mobilizing short-term capital for a long time. Therefore, his bank has increased deposit rates for tenors over 12 months to over 7% per annum to supplement capital for medium and long-term lending. Currently, this lender has applied medium and long-term lending rates from 9-11% per annum. Banks in HCMC have also revised up … [Read more...] about Banks seen in race to hike long-term interest rates
Long term investment rates
Long-term deposit rates still high Thanh Thuong By Thanh Thuong - The Saigon Times Daily HCMC – Local banks on Monday cut interest rates of short term deposits by one percentage point while leaving the long term rates unchanged. Interest rates for terms of less than 12 months have fallen from 9% to the highest level of 7.8% annually at Asia Commercial Bank, while other lenders such as Vietcombank, VietinBank and Eximbank have quoted deposit rates of one to nine months at the highest 8% a year. Meanwhile, interest rates of long term deposits have still remained unchanged at the lenders, ranging from 10.5% to 11.5% per annum, and there have been no signs that they will plummet. The highest rate of 11.5% is for the 13-month tenor. Those deposits with rates surpassing the ceiling level have also been revised down by one percentage point for new deposits from today. A teller of a bank branch in Dong Nai Province said rates of short term deposits worth more than VND500 million … [Read more...] about Long-term deposit rates still high
Salaries are a long-term investment (19-04-2008) Nguyen Thi Lan Huong, deputy director of the Institute of Labour, Science and Social Affairs, discussed the impacts of inflation on salaries and unemployment with Dau tu (Viet Nam Investment Review). The Government has decided not to adjust the employment target set for this year. How does the current climate of rising inflation affect employment? Inflation influences firms' input and output. For those companies whose output value is higher than the cost of inputs, the business still makes a profit and labourers and company owners are not affected by inflation. But for those whose revenue is lower than their cost of production, they have at least two options to help them cut costs: sack employees or keep them on at a lower salary. In fact, at the moment it's hard to reduce workers' salaries. Alternatively, enterprises can increase wages but not at the rate of inflation. This means workers have less money but are still employed. Many … [Read more...] about Salaries are a long-term investment
As forecast earlier by economists, 2012 was indeed a difficult year with negative effects on Vietnam’s economy and businesses. Could you tell us what were the difficulties of businesses in last year? According to VCCI surveys in 2012, all indexes on business activities have declined, especially profit per product, overall turnover and unsold stock. Among difficulties, access to capital was the biggest for businesses in 2012. The VCCI survey shows that the percentage of businesses borrowing credit decreased from 54.45 percent in 2011 to 49.23 percent in 2012, and 3 percent of those borrowing credit from the "black market" at much higher interest rates compared to commercial banks. Small and medium sized enterprises (SMEs) faced even bigger difficulties. Their debts make up 35 percent of the total. Collateral remains the main hurdle compelling them to seek unofficial capital resources. The survey also shows that 65.3 percent of businesses feel lower interest rates have … [Read more...] about Helping Businesses in Long-term Investment
VietNamNet Bridge - The sickly stock market has been testing stock investors' patience for many months. Other stock markets have recovered but when will Vietnam's stock market bounce back? Becoming shareholders of the enterprise which is leading Vietnam's gas industry, the key industry in Vietnam's national economy which decides the development of other industries such as power, fertilizer and steel, is really the dream of many investors. Andy Ho, Investment Director of VinaCapital, said that becoming the "owners" of state-owned general corporations is a golden opportunity which does not come regularly. … [Read more...] about Stock market: are there any opportunities for long term investments?