Financial Markets

Vietnamese credit card market offers potential for banksThe Saigon Times Daily A credit card is used for payment - PHOTO: THANH HOA HCMC – Despite recent enormous growth, the local credit card market still offers potential for local commercial banks, Tuoi Tre Online newspaper reported. According to the State Bank of Vietnam, as of the third quarter of last year, 147.3 million bank cards had been issued, an increase of 20 million cards year-on-year. Of these, there had been only 4.6 million credit cards conducting transactions valued at nearly VND50 trillion, a 50% surge over the one year-ago period. Banks have rushed to issue credit cards with preferential policies, as part of a race to lure more customers to increase their market shares. According to financial experts, the development of tourism and online shopping has fueled Vietnamese consumers’ demand for payments via credit cards. In addition, banks can earn large profits from credit card services due to … [Read more...] about Vietnamese credit card market offers potential for banks

Major banks go ahead with deposit rate cut plansThe Saigon Times Daily A bank teller counts Vietnamese banknotes – PHOTO: THANH HOA HCMC – Some major commercial banks have adjusted down their annual deposit rates for certain tenors by 10-30 basis points after a hike in the middle of 2018, according to VnEconomy news sites. A report from Techcom Securities Company Limited shows that the Asia Commercial Bank (ACB) has lowered the rate by 10 basis points for deposits of one month to 5.1%, while hiking the deposite rate for the three-month tenor by 10 basis points to 5.4%. Meanwhile, VietinBank has slashed interest rates for deposits of six and 12 months by 30 basis points. The bank also adjusted up the interest rate for savings of 24 months by 10 basis points to 6.8%. Additionally, the local market has seen the Bank for Investment and Development of Vietnam (BIDV) revising down its deposit rate for the five-month tenor by 30 basis points to 5.2%. The deposit rate … [Read more...] about Major banks go ahead with deposit rate cut plans

Banks warn against online transaction fraudThe Saigon Times Daily Customers are seen withdrawing money at an ATM in Hanoi. Local banks warn bank customers of possible online fraud during Tet - PHOTO: VNA HCMC – Local banks have issued warnings against online transaction fraud to their customers, since such trickery practices as stealing banking passwords when customers withdraw money at ATMs or make online payments are substantially common during the Tet Holiday, Nguoi Lao Dong Online reported. Asia Commercial Bank, commonly known as ACB, has sent warning notices via email to their customers, asking them to secure their banking personal information against swindlers. According to the bank, customers should stay highly vigilant against entering one-time passwords and usernames to their bank accounts on fake banking websites. There are several fake websites that pretend to be banks’ official ones or international money transfer channels to trick bank customers to … [Read more...] about Banks warn against online transaction fraud

REE raises VND2.318 trillion from fixed rate bondsBy Hung Le Employees are at work inside a factory of Refrigeration Electrical Engineering Corporation – PHOTO: REE HCMC - Standard Chartered Bank (Vietnam) Limited (SCB Vietnam) on 29 January announced that it has successfully placed Refrigeration Electrical Engineering Corporation’s (REE) inaugural VND2.318 trillion fixed rate bonds. The issue, worth an equivalent US $100 million, was guaranteed by Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank rated AA internationally by S&P.  The VND2.318 trillion fixed rate bonds are priced at an interest rate of 7.00% p.a. for a 10-year maturity term. REE is a listed business group in Vietnam primarily operating in the fields of real estate development and management; mechanical and electrical engineering services; manufacturing, assembling and sales of Reetech air-conditioner systems, as well as power and water utility … [Read more...] about REE raises VND2.318 trillion from fixed rate bonds

Central bank approves Mizuho purchase of Vietcombank sharesThe Saigon Times Daily The headquarters of Vietcombank – PHOTO: VIETNAMPLUS HCMC – The governor of the State Bank of Vietnam has just issued a decision approving Japan-based bank Mizuho to buy more shares of Bank for Foreign Trade of Vietnam (Vietcombank) to maintain the former’s stake at 15%, VietnamPlus reports. Vietcombank said the regulatory approval had been given following the bank’s issuance of shares under private placement for the Japanese partner, which had already made payment for the deal. Under the deal, Mizuho purchased an additional amount of over 16.66 million shares. Apart from this deal, another investor named GIC has purchased over 94.44 million shares of Vietcombank, equivalent to a 2.55% stake, according to the news outlet under the Vietnam News Agency. With the new share issues, Vietcombank has spurred its chartered capital to VND37.1 trillion, or roughly US$1.6 billion. … [Read more...] about Central bank approves Mizuho purchase of Vietcombank shares