Financial Markets

Exchange rate hits record highThe Saigon Times Daily A bank teller counts U.S. banknotes. The foreign exchange rate rose to a new high on August 13 – PHOTO: THANH HOA HCMC – The State Bank of Vietnam (SBV) today, August 13, raised the central exchange rate between the U.S. dollar and the Vietnamese dong to an all-time high of VND22,686 per dollar, reported the local media. The SBV Operations Center also sold a U.S. dollar at a record price of VND23,317. The exchange rate at Vietnam Export Import Commercial Bank and Bank for Foreign Trade of Vietnam was quoted at VND23,350 per U.S. dollar, the highest since the start of this year and up by VND10 compared with the price last week. Meanwhile, the buying price was VND23,270 per U.S. dollar. Vietnam Bank for Industry and Trade quoted the buying and selling prices of the U.S. dollar at VND23,269 and VND23,349, respectively. Saigon Thuong Tin Commercial Bank posted the highest prices---VND23,366 per U.S. dollar for … [Read more...] about Exchange rate hits record high

Financial Markets Banks call for credit growth limit increase The Saigon Times Daily Monday,  Aug 13, 2018,17:13 (GMT+7) Banks call for credit growth limit increaseThe Saigon Times Daily A bank teller holds piles of cash. Commercial banks have proposed the central bank increase credit limits - PHOTO: THANH HOA HCMC - In the first half of the year, many commercial banks almost reached the lending cap set for the whole year by the State Bank of Vietnam (SBV). They have now requested SBV, the nation's central bank, to set higher credit limits, reported Lao Dong newspaper. SBV had earlier set the credit growth target for 2018 at 17% but then set the maximum credit growth rate for banks at 14%. Most of the banks recorded credit growth rates of 9-12% in the first six months, with some banks even exceeding the quota to reach 16%. If the central bank agrees to increase the lending limit, the cap should not exceed 17% to ensure … [Read more...] about Banks call for credit growth limit increase

Ministry scraps BOT investment plan for Rach Mieu 2 BridgeBy Trung Chanh A view of the current Rach Mieu bridge which links Tien Giang and Ben Tre provinces - PHOTO: TRUNG CHANH CAN THO - The Ministry of Transport is considering using either the State budget or official development assistance (ODA) loans to build the Rach Mieu 2 bridge, instead of calling for build-operate-transfer (BOT) investment as previously proposed. At a working session between the Ministry of Transport and the government of Ben Tre Province on August 11, Minister Nguyen Van The noted that as Rach Mieu Bridge, which links the Mekong Delta provinces of Tien Giang and Ben Tre, is now overloaded, the building of Rach Mieu 2 Bridge is essential. According to The, compared to the Dai Ngai bridge project, which will connect Tra Vinh and Soc Trang provinces in the Mekong Delta region and has already been properly researched, the Rach Mieu 2 bridge project is making slow progress, with no formal studies in place … [Read more...] about Ministry scraps BOT investment plan for Rach Mieu 2 Bridge

Banks with high property credits may face surprise inspectionsThe Saigon Times Daily Guests have a look at the blueprint of a property project on display at a hotel in HCMC. SBV will conduct unannounced inspections at credit institutions with a high proportion of loans going to the real estate sector – PHOTO: TL HCMC – The State Bank of Vietnam (SBV) will conduct unannounced inspections at credit institutions with a high proportion of loans going to the real estate sector among their total outstanding loans, the local media reported, citing a newly issued directive of the central bank. According to Directive 04/CT-NHNN on missions of the banking sector in the second half of the year, banks offering large loans for securities and consumption purposes as well as build-operate-transfer and build-transfer projects will face the same type of supervision. SBV Governor Le Minh Hung noted that the central bank would impose strict penalties on those caught violating banking … [Read more...] about Banks with high property credits may face surprise inspections

Govt likely to stop granting licenses to new foreign banksBy Le Hoang Deputy Prime Minister Vuong Dinh Hue (5th L) and M&A experts at the Vietnam M&A Forum 2018 - PHOTO: LE HOANG HCMC – The Government will limit or even stop issuing licenses to new wholly foreign-owned banks but will allow foreign investors to acquire and restructure loss-making banks in Vietnam, Deputy Prime Minister Vuong Dinh Hue said at the Vietnam M&A Forum 2018 held in HCMC on August 8. At the forum, themed, “New thrust, new era,” jointly held by Dau Tu newspaper and AVM Vietnam Company, Deputy PM Hue noted that the country will continue restructuring the finance-banking sector, and State-owned enterprises. For the finance-banking sector, the Government plans to sell poor-performing banks, such as Construction Bank, Global Petroleum Bank and OceanBank, and part of the charter capital in Bank for Investment and Development of Vietnam and Bank for Foreign Trade of Vietnam to … [Read more...] about Govt likely to stop granting licenses to new foreign banks