Us government i bonds

Clients waiting outside a branch of the Silicon Valley Bank in Santa Clara, California on March 13. (Photo: XINHUA/VNA) HCM City (VNS/VNA) - The Silicon Valley Bank (SVB) collapse by itself will end up being neutral for Vietnam’s stock market and economy, Michael Kokalari, chief economist at investment fund VinaCapital , has said in a report. “Furthermore, we see no substantial risk that the dynamics which negatively impacted SVB and certain other regional US banks could significantly impact the profitability and/or solvency of banks in Vietnam.” It was widely reported that latent losses on SVB’s securities portfolio coupled with a drop in deposits at the bank were the main factors that led to its rapid insolvency, it said. Vietnamese banks also held Government bonds on their balance sheets, and the prices of 10-year Vietnam Government bonds (VGBs) had dropped by around 15% since mid-2021 and yields surged. However, VGB holdings only accounted for around 6% of listed … [Read more...] about Silicon Valley Bank collapse not to impact VN: VinaCapital

Samples of corporate bonds issued by companies. — Photo vneconomy.vn Commercial banks that underwrite and sell corporate bonds have to buy them back if investors so demand, the central bank has said. It followed a meeting with voters (members of the public) the State Bank of Viet Nam (SBV) held in HCM City amid the ongoing bond market troubles. Besides asking for underwriting banks to take responsibility for redeeming bonds, the voters also urged the SBV to tighten inspection of credit institutions to ensure they comply with regulations while investing in bonds. The SBV recently raided 11 banks and fined a number of them for violating regulations related to bond purchases. Under current regulations, banks must have an internal credit rating system and can only buy bonds if their bad debts ratio is below 3 per cent. For bonds sold in the domestic market, when issuers cannot pay in full and on time the bond principal and interest, they must negotiate with bondholders … [Read more...] about Banks underwriting bonds should buy back bonds: central bank

Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Commercial banks that underwrite and sell corporate bonds have to buy them back if investors so demand, the central bank has said. It followed a meeting with voters (members of the public) the State Bank of Vietnam (SBV) held in Ho Chi Minh City amid the ongoing bond market troubles. Besides asking for underwriting banks to take responsibility for redeeming bonds, the voters also urged the SBV to tighten inspection of credit institutions to ensure they comply with regulations while investing in bonds. The SBV recently raided 11 banks and fined a number of them for violating regulations related to bond purchases. Under current regulations, banks must have an internal credit rating system and can only buy bonds if their bad debts ratio is below 3%. For bonds sold in the domestic market, when issuers cannot pay in full and on time the bond principal and interest, they must negotiate with bondholders for extending the term … [Read more...] about Banks underwriting bonds should buy back bonds: Central bank

Many bond issuers begged regulatory authorities to assist them. In response, the government issued Decree No.08/2023/ND-CP on private corporate bonds on March 5 to alleviate the pressure on bond issuers this year. Bui Thi Thu Nga Banking and finance, Account manager BowerGroupAsia Vietnam Decree 08 postpones a number of new standards until January 2024, giving the market time to adjust and opening space for bondholders and bond issuers to negotiate. It amends Decree No.153/2020/ND-CP from December 2020, and Decree No.65/2022/ND-CP from September last year. After assessing the former and the case of Tan Hoang Minh, the government endorsed the latter to impose stricter management mechanisms on the trading of private bonds. Decree 65 set higher qualifications for individual investors, compulsory credit ratings in some circumstances, a shorter period for distributing bonds, and prohibitions extending the term of bonds issued before September 15, 2022. Most of the … [Read more...] about Clearing up the liquidity issue through amendments

The Silicon Valley Bank (SVB) collapse by itself will end up being neutral for Vietnam’s stock market and economy, Michael Kokalari, chief economist at investment fund VinaCapital, has said in a report. Clients waiting outside a branch of the Silicon Valley Bank in Santa Clara, California. — AFP/VNA Photo “Furthermore, we see no substantial risk that the dynamics which negatively impacted SVB and certain other regional US banks could significantly impact the profitability and/or solvency of banks in Vietnam.” It was widely reported that latent losses on SVB’s securities portfolio coupled with a drop in deposits at the bank were the main factors that led to its rapid insolvency, it said. Vietnamese banks also held Government bonds on their balance sheets, and the prices of 10-year Vietnam Government bonds (VGBs) had dropped by around 15 per cent since mid-2021 and yields surged. However, VGB holdings only accounted for around 6 per cent of listed banks’ … [Read more...] about Silicon Valley Bank collapse not to impact Vietnam: VinaCapital

Vietcombank sold the dollar at VND23,660, down 0.08% from Monday. Techcombank lowered its rate by 0.02% to VND23,680. Eximbank maintained the greenback at VND23,670. The State Bank of Vietnam set its reference rate up 0.01% at VND23,605. The dollar remained stable on the black market at VND23,550. The dollar depreciated against the dong by 0.29% since the beginning of the year. Globally the U.S. dollar fell on Tuesday as receding fears of a full-blown banking crisis slowed demand for so-called safe haven assets, Reuters reported. But the yen rallied, despite traditionally also being a safe haven, with analysts pointing to a pick-up in flows ahead of the end of Japan's fiscal year on Friday. The dollar fell as low as 130.51 yen, and was last off 0.29% at 131.2 as the Japanese currency rose. That undid some of the dollar's 0.64% jump against the yen in the previous session, which tracked a large rise U.S. government bond yields. … [Read more...] about Dollar hits 7-week low

PM Pham Minh Chinh chairing the VBF 2023, highlighting the role of the business community in fostering green growth in Vietnam. Photo: Nhat Bac The high-level session of the Vietnam Business Forum (VBF) took place today on March 19, chaired by Prime Minister Pham Minh Chinh. With the theme “Business community in partnership with the government in fostering green growth,” the VBF also marked its 25 th anniversary. At the opening of the forum, Minister of Planning and Investment Nguyen Chi Dung highlighted that economic recovery and development in the direction of green and sustainable growth was a top priority for every country. The common goal is to achieve economic prosperity, environmental sustainability and social equity; towards a green and carbon-neutral economy while contributing to limiting global temperature rises. "For Vietnam, green growth is not only an inevitable choice but also an opportunity to become a pioneer in the region, catching up with the … [Read more...] about Vietnam aims to lead region’s development on green growth

Pham Hong Son, vice chairman of SSC, delivered a speech at the event on Tuesday in Ha Noi. — Photo courtesy of JICA The capacity of the State Securities Commission (SSC) and three stock exchanges in market management and supervision has been enhanced as a result of a collaboration project with the Japan International Cooperation Agency (JICA), an SSC leader said on Tuesday. From April 2019 to March 2023, the technical cooperation project “Capacity Building on Improving Fairness and Transparency of Vietnamese Equity Market” aims at ensuring publicity and transparency, strengthening market surveillance and inspection, supervision of market intermediaries, listing and public offerings in line with international standards, and raising awareness on investor protection among listed companies. With the intention to cooperate with counterparts to develop the best practices for the stock market, the project conducted a detailed initial survey on the Vietnamese market, grasped issues and … [Read more...] about Vietnamese stock market’s publicity and transparency improved

Vietnam considers the US as one of its most important partners and welcomes the US to support a strong, independent, and prosperous Vietnam. Vietnam aims to enhance the Comprehensive Partnership with the US, focusing on mutually beneficial outcomes that generate employment opportunities and growth for both nations. Overview of the meeting. Photos: Nhat Bac “Such an effort would contribute to supporting global and regional stability, cooperation, and development while promoting peace and harmony.” Prime Minister Pham Minh Chinh stressed the remarks during a meeting with a delegation of the US-ASEAN Business Council (USABC) today [March 22]. At the meeting, Chinh welcomed a delegation of over 50 large US enterprises to visit and work in Vietnam, coinciding with the 10th anniversary of the Vietnam-US Comprehensive Partnership (2013-2023). The Prime Minister expressed gratitude to the US Government and businesses for their support in providing vaccines and … [Read more...] about Vietnam continues to push for stronger ties with US: PM

This was one of the events to celebrate the 50th anniversary of the establishment of Vietnam-Japan diplomatic relations and 30th anniversary of Japan’s Official Development Assistance (ODA) to Vietnam. Nearly 150 participants from related ministries and agencies, as well as Vietnamese and Japanese companies attended the seminar. In the event, after the presentation by the State Securities Commission (SSC) and discussions on the said strategy, JICA’s consultant team - Japanese experts from Daiwa Institute of Research, and other institutions including Japan Exchange Group and Nomura Research Institute - provided reviews of the Project and policy recommendations for the new development strategy of Vietnam’s securities market. Notably, the seminar welcomed a keynote speech from the Commissioner of Japan Financial Services Agency (JFSA) about “Japan's efforts to develop the securities market,” which could lay many lessons learnt for Vietnamese stakeholders. This Technical Cooperation … [Read more...] about JICA supports the upgrade of Vietnam’s equity market