The state-owned Joint Stock Commercial Bank for Foreign Trade of Vietnam announced large cuts to its deposit rates on April 6. Vietcombank, as the bank is commonly known, said on its website that the cuts, the second in a month, has made its deposit rates among the lowest in the country. The minimum rate on deposits of less than a year is now 6 percent, down from 7.3 percent and 1.5 percentage points below the rate cap set by the State Bank of Vietnam. Nguyen Phuoc Thanh, the bank's general director, said the bank is set to trim loan rates to boost lending. Credit growth has been 4.56 percent in the year-to-date, and this is likely to rise to 12 percent for the whole year, he said. Deposits have grown steadily despite the previous cuts, he said, and the bank is "prepared" to cope with possible massive withdrawals due to the lower rates. Liquidity concerns It is acknowledged that any adjustment to interest rates by a public bank sparks off a trend. Vietcombank's move surprised … [Read more...] about Vietcombank deposit rate cut, bolt out of blue for rivals
Why issue bonds instead of stock
A miniature model of a Vietnam Airlines aircraft in a booking office in Ho Chi Minh City. The privatization of state-owned enterprises, including Vietnam Airlines, will help the government raise money for development, instead of issuing more bonds, expert Bui Kien Thanh argues. In the current situation, it is unreasonable to issue more bonds since the government's spending is already too large, and any increase in public spending on infrastructure will help create jobs only temporarily, economist Bui Kien Thanh tells Vietweek. Vietweek: There have been calls for the government to issue more bonds to raise money for public spending as a means to revive the economy. What do you think about it? Bui Kien Thanh: It is difficult to raise revenues this year. Though more than half the year has passed, we have reached only 40 percent of the year's revenue target. The revenues are not enough for spending, so there is an opinion that the government should more bonds. Meanwhile, we are facing … [Read more...] about Overspending government should not issue more bonds: economist
VietNamNet Bridge - The consumer price index (CPI) in the last three months saw the sharpest increases in comparison with the same periods of the past 20 years. High inflation is the result of a combination of factors … [Read more...] about Why has the inflation rate climbed to the peak of the last 20-years?
7M real estate FDI at nearly $1 billion New and additional foreign-direct investment (FDI) into real estate this year had reached $956.8 million by July 20, or 7.3 per cent of the total, according to the latest report from the Foreign Investment Agency (FIA) at the Ministry of Planning and Investment. It ranked second in terms of FDI attraction, following processing and manufacturing, which had $9.12 billion in new and additional capital and accounted for 70.5 per cent of all FDI. Total FDI into the country in the first seven months reached $12.94 billion, an increase of 46.9 per cent year-on-year. Thirty new projects were registered in the first seven months in real estate and five existing projects added capital. Japan's Mitsubishi Corporation and the Bitexco Group recently established a joint venture in which Mitsubishi will hold 45 per cent and Bitexco 55 per cent, with total investment estimated at 30 billion Japanese Yen ($290 million), to develop The Manor Central Park, a … [Read more...] about BUSINESS IN BRIEF 3/8
Trinh Hoai Giang Analyzing the stock market and the current influential factors, Trinh Hoai Giang, deputy general director of the HCMC Securities Corp. (HSC), said stocks could hardly soar from now to the year’s end as long as the macro-economy remained unstable. In a recent meeting with the Daily, the expert mentions factors that hinder the equity market from fast recovery. Excerpts: The Saigon Times Daily: There have been favorable macro-economic conditions like low inflation in May and June and deposit rates down five percentage points, yet the stock market was stagnant in the last two months. What is the reason for this in your opinion? Trinh Hoai Giang: I think the macro-economic signs are not as positive as seen on the surface. Specifically, it was forecast that this year’s inflation would not be high. Inflation will rise by 6-7% this year. This currently shows that prices are stable, but the chance of prices picking up again is unknown. Falling inflation is … [Read more...] about Stocks cannot advance in unstable macro-economy