The bank is collecting feedback on its draft circular to replace the current version with stricter conditions for receiving short-term foreign loans to ensure a national debt limit. The draft will allow Vietnamese businesses to access short-term foreign loans for paying debt, but not for potentially risky purposes like trading stock and real estate. This is because once the stock and real estate market grows way above its intrinsic value, there would be a high chance of creating an asset bubble, causing economic instability. The central bank plans to ban the use of short-term foreign loans to buy projects or stakes in them, since mergers and acquisitions involve long-term investment and commitment. It also plans to ban companies using short-term foreign loans to acquire projects or stakes in projects, as mergers and acquisitions are long-term activities. Short-term loans could result in liquidity risks if used for medium- and long-term purposes, it explained. Companies may … [Read more...] about Central bank limits foreign loans for trading stock, real estate
Congressman urge government inquiry into real estate competition
Do Chi Cong, member of EuroCham and general director of SB Invest According to the United Nations World Tourism Organisation (UNWTO), Southeast Asia will become the fourth largest tourist attraction in the world, with Vietnam also developing a green and sustainable pathway over the next ten years. In your opinion, what is the core element of green tourism? Green tourism advocates for minimal detrimental impacts on the local environment, biodiversity protection, renewable energy, the promotion of natural and cultural heritage, environmentally-friendly products, and the active participation of local communities. Green tourism is the key to responsible and sustainable development and respecting natural elements. Minimising negative environmental impacts and creating a healthy environment are all at its core. Thus, to be recognised as a green tourism product, all tourism services such as tours, hotels, restaurants, and golf courses must meet the above criteria. As an … [Read more...] about Prospects for green tourism real estate development
Developers clamour for legal clarity, Illustrative image (Photo: VNA) Nguyen Manh Ha, vice chairman of the Vietnam Real Estate Association, said that tourism real estate needs to break down barriers to development as soon as possible, in order to move alongside the general economic recovery. “Currently, mechanisms and policies for resort real estate are unclear, especially in terms of new types of real estate such as condotels, officetels, and second-home villas in resorts,” Ha said. The legal framework has not kept pace with the reality of hospitality and resort real estate development, thus partly hindering the growth momentum of these types of property, Ha added. They are not given a right use certificate, known as a red book in Vietnam, because they are built on land plots permitted for developing tourism property only, and not for residential projects. Doan Van Binh, chairman of CEO Group, said that supply is scarce not only in Vietnam but worldwide due to the impact of … [Read more...] about Developers clamour for legal clarity
Lenders reinforcing presence with bond issuance, Photo Shinhan Bank Vietnam Shinhan Bank Vietnam last week successfully issued bonds totalling VND2.8 trillion ($121.7 million), with a tenor of two years. CEO Kang Gew Won explained to VIR, “This is the first time that Shinhan Bank Vietnam has issued bonds in the Vietnamese market. This offering reinforces Shinhan Bank’s long-standing relationship with Vietnam. Our bank will use these proceeds from the bond sale to expand the bank’s credit activities, diversify its capital sources, serve its business objectives, and also ensure the bank’s long-term development.” On April 20, Shinhan Bank Vietnam also formally announced the use of the liquidity reserve ratio and net stable capital ratio in liquidity risk management, in accordance with Basel III standards. In recent times, the bank has been continuously assigned a BB rating by Standard & Poor’s, with a “Positive” outlook. Prior to Shinhan Bank, HSBC Vietnam became the … [Read more...] about Lenders reinforcing presence with bond issuance
Kenneth Atkinson-Vice chairman, Vietnam Tourism Advisory Board However, there is no separate body of law governing condotels and in most locations where they have been constructed it is clear that such developments cannot be issued with pink books for individual units, so ownership ultimately rests with the developers, with a lease term not extending beyond 50 years (70 years can be permitted). In addition, many buyers have been lured by guaranteed returns of 8-12 per cent for the 10 years. Warnings of potential future problems sounded from 2017, but due to the cyclical nature of tourism and potential disruptions to inbound tourists, these were largely ignored and we have already seen failures of such projects like Cocobay and other developers now unable to meet their guaranteed return commitments and for certain several more to come. Now, we have around 240 tourism real estate projects and over 114,000 condotel units, and Vietnam has the largest pipeline of tourism-related … [Read more...] about Taking the right approach to the condotel legislation conundrum
Vietnam’s positive outlook rides on strong external demand, a recovery in domestic consumption, and healthy investment inflows. Vietnam’s economic prospects would remain bright with the GDP growth expected to expand at 6.3% in 2022 and 6.5% in 2023. Overview of the meeting between AMRO's representative and the State Bank of Vietnam. This preliminary assessment was made by the ASEAN+3 Macroeconomic Research Office (AMRO) after its Annual Consultation Visit to Vietnam from May 3-18, 2022. The mission was led by AMRO Group Head and Lead Economist, Sanjay Kalra. AMRO Director, Toshinori Doi, and Chief Economist, Hoe Ee Khor participated in the policy meetings. The discussions focused on the recovery of the Vietnamese economy from the pandemic and made policy recommendations to further support the recovery while maintaining macroeconomic stability and creating conditions for sustainable and inclusive growth over the medium term. According to Kalra, “such a … [Read more...] about Vietnam’s economic outlook remains bright: AMRO
The sell-off in the Vietnamese stock markets has been consistent with what has been occurring in global markets. — Photo vov.vn The sell-off in the Vietnamese stock markets has been consistent with what has been occurring in global markets, though selling pressure was exacerbated by many new retail investors dealing with margin calls for the first time and a crackdown on firms that borrowed money to buy stocks. None of this is however likely to have much impact on Viet Nam’s economic growth or on the aggregate earnings of listed companies, Michael Kokalari, VinaCapital’s chief economist, assured. “In Q1 earnings surged by around 30 per cent year-on-year, and we expect the earnings of all of the companies listed on the Ha Noi and HCM stock exchanges to surge by nearly 30 per cent this year.” Viet Nam’s benchmark VN-Index sold off 11 per cent last week and was down 21 per cent in the year to date at the end of last week after being nearly flat until March end, he said. … [Read more...] about Why the stock market sell-off when VN’s economy is strong?