Deposits at banks modest due to low interest rates A person arranges stacks of Vietnamese banknotes. Capital has been poured into other sectors rather than banks due to their low deposit rates According to the Department of Credit for Economic Sectors under the State Bank of Vietnam, in the first quarter of this year, the deposit growth reached only 0.54%, well below the credit growth of 2.93% and the average deposit growth of 2.28% in the first quarter of the past seven years, Lao Dong newspaper reported. At present, the rate for savings of less than six months is 3%-4%. Meanwhile, tenors of six to less than 12 months and over 12 months enjoy a rate of 3.5%-5.5% and 4.6%-6%, respectively. Although some banks have revised up their deposit rates by 0.1-0.4 percentage points, the banks’ average deposit rate in the first quarter remained some 2 percentage points lower than that in the same period last year. If the trend continues, the banking system’s liquidity will no longer be ample this year, according to Bao Viet Securities Company. Meanwhile, the General Statistics Office stated that capital had been injected into other sectors, with life insurance premium soaring 11%. Meanwhile, the securities market mobilized nearly VND55.6 trillion, surging 42% over the same period last year. Pham Lam, vice chairman of the Vietnam Association of Realtors, attributed land fevers over the past few months partly to residents’ idle money and their expectations of higher prices of real estate products. According to Dao Minh Tu, deputy governor of the central bank, as of mid-March, banks’ outstanding loans for the property sector grew 2.13%, higher than the current credit growth of 2.04%, despite the central bank’s close control over credit for the sector. Market rebounds, VN-Index returns to 1,250 point-level Shares settled higher on Wednesday, reversing their morning course on recoveries of materials and banking stocks. The benchmark VN-Index …
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Race for digital transformation: now or never
The rules of the game in the future will be "quick fish eats slow fish". Even “giants,” without timely performing digital transformation, may lose ground to “rookies” that are young and agile in the 4.0 technological revolution. "With the current working method, it is very difficult for our company to effectively control the performance of sales staff," said Jung In Jeong, sales director of Miwon Vietnam. When employees quit, they take a large number of customers with them, which greatly affects the company. Miwon has had to seek a Vo Quang Nhan, from R.E.P Biotechnology Co., Ltd., said that after two years of applying management technology, the company has had a significant change. The customer conversion rate has increased by 20%, while the problem-solving time is now only 1-2 hours. The number of points of sale doubles every day. Market staff realized that the new way of working helped them to better control their daily work and boost sales. Thanks to digital transformation, many businesses have overcome difficulties caused by Covid-19. Fabbi, a rookie in the technology inudstry, generated US$4 million in revenue in 2020 by taking advantage of the epidemic to provide digital transformation solutions to major partners in Japan. Digital trends Digital transformation is an inevitable trend. Similarly, MobiWork successfully developed the MobiWorks DMS distribution management solution, fully meeting the needs of monitoring, automation and sales activities. This is a solution to digitize the entire business process in the distribution system, helping businesses have a more intuitive and accurate view of the market, customers and their competitors. According to a survey by Vietnam Expo, despite the impact of the pandemic, the demand for trade is still increasing. Therefore, the fair Organizing Committee has implemented new forms of trade while calling on organizations and businesses to promote domestic trade and export. Chairman of the …
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VN-Index falls as selling pressure weighs market
Trading at JSC Bank For Investment and Development of Vietnam (BIDV)'s office. The bank shares plunged nearly 2.2 per cent on Thursday. — Photo www.bidv.com.vn Viet Nam’s stock exchange ended mixed on Thursday as the benchmark VN-Index reversed course to finish lower while the HNX-Index continued its rally. On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index declined by 8.62 points, or 0.69 per cent, to 1,247.25 points. The index rose slightly 0.15 per cent in the morning trade. The market breadth was negative with 294 stocks dropping while 141 stocks climbed. The market’s liquidity remained high as nearly 806.5 million shares were traded, worth over VND20.6 trillion. The index successfully tested the support territory of 1,225 – 1,232 points and rebounded at the end of Wednesday’s trade. The move is expected to help the index continue to rise and head toward the resistance zone of 1,275 – 1,300 points in the short-term, Bao Viet Securities Company said in a daily report to customers. “However, during this period, the market is likely to be dominated by some large-cap stocks, along with a strong division between groups of stocks,” the securities firm added. April futures contracts expired yesterday and the event might have a huge impact on large-cap stocks in the VN30 basket. The VN30-Index, which tracks the 30 biggest stocks in HoSE, fell 0.51 per cent to 1,284.2 points. Of the VN30 basket, 24 stocks declined while only five increased. Stocks from banking, materials, utilities, information technology, retail, transportation and logistics posted poor performance on Thursday. Of which, top five stocks weighing the market were Vietcombank (VCB), JSC Bank For Investment and Development of Vietnam (BID), Investment And Industrial Development Corporation (BCM), Techcombank (TCB) and Vietnam Rubber Group JSC (GVR). VCB posted the biggest loss in market capitalisation, down 1.22 per cent. The losses were limited by gains in material stocks and real …
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