Investment banking in real estate

A customer makes a deposit at a bank in Binh Duong Province. — VNS Photo Many banks have increased deposit interest rates by 0.1-0.6 percentage points amid the growing demand for funds. Last year the average interest rates on bank deposits for six months and 12 months were 4.7 per cent and 5.5 per cent, down half a percentage point from 2020, Bảo Viẹt Securities said. The State Bank of Viet Nam said in 2021 rates were at their lowest level in five years. But rates, especially at small- and medium-sized banks, have increased sharply since the beginning of this month. Currently the peak rates are 6.5-7.4 per cent. NamABank offers the highest rate for online savings even for small amounts. Customers depositing money via its e-banking application for 16-36 months can get 7.4 per cent interest. For 12 months it is 6.4 per cent. Sai Gon – Ha Noi Commercial Joint Stock Bank (SHB) has increased rates by 0.2-0.4 percentage points. For 36 months the rate is 0.4 percentage … [Read more...] about Banks hike deposit interest rates on demand for funds, inflation

Le Thi Bao Tran, a young white-collar worker in Ho Chi Minh City, has spent the past eight years moving between rented rooms, doing her best to save up enough money to purchase a home of her own. Like other young, white-collar workers who have moved to Ho Chi Minh City to pursue their careers, Tran hopes to eventually purchase a home in the city, but the rising cost of real estate has kept that dream out of reach. A lifelong dream Tran spent her college years moving between rental apartments in Binh Thanh District. At one point, she shared a tiny 10-square-meter apartment with a friend for just VND1.1 million ($47) per month, including utilities. During the dry season, the apartment would heat up like an oven, and the putrid smell from a nearby garbage dump would waft through the windows. "If you closed the door, you could hardly breathe. If you opened the door, you still couldn’t breathe because of the horrible smell," she shared. Things were not much better in the … [Read more...] about Young Vietnamese turn to mortgages, installment plans to secure dream homes

At a Saturday conference in Harvard University on Vietnam's development strategy in the 21st century, Prime Minister Pham Minh Chinh said Vietnam's economy has expanded into the fourth largest economy in ASEAN and among the world's top 12 economies with the largest scale of commerce. The country also takes part in 15 active FTAs, he said. Economist David Dapic said Vietnam taking part in FTAs was a major success. Millions of farmers have moved on to work in factories as a result. But the fact that most materials for production are imported from China is a weakness, he added. When the Covid-19 pandemic broke out, borders were closed and there was commercial tension, Vietnam's exports were affected, Dapic said. Vietnam's trade turnover with the U.S. may reach $100 billion this year. Such a figure might be small for the U.S., but Vietnam should take note to remain in constant communication and avoid being accused of currency manipulation, he advised. Nguyen Thi Hong, head of the … [Read more...] about Avoid unworthwhile investments, try estate taxes, Vietnam advised

Techcombank is on track to be among the top ASEAN banks Techcombank’s rise within the Vietnamese banking industry was highlighted last year when it became the first non-state-owned bank to join Vietnam’s billion-dollar profit club. “Even in the very tough environment we are seeing, our employees have maintained a high quality and reliable service for our customers and this is helping us to deliver stellar performance year after year,” said Jens Lottner, CEO of Techcombank. Last year, the bank continued to reduce costs while focusing on building deposits in its current accounts and savings accounts (CASA), which Lottner described as a “stable and cheap” source of funding. Techcombank’s CASA ratio, which reflects the percentage of the bank’s total deposits that are CASA, jumped from 46.1 per cent in 2020 to 50.5 per cent last year, well on its way to the bank’s target of 55 per cent by 2025. Techcombank’s net interest margin, a measure of the difference between the interest … [Read more...] about Techcombank on track for a seat among the top ASEAN banks

The prime minister held meetings with executives of US major financial corporations such as KKR, Visa, S&P, and Citigroup over future cooperation in the financial sector. The comprehensive partnership between Vietnam and the US would create favorable conditions for investment activities. Prime Minister Pham Minh Chinh and CEO of KKR Joseph Bae (l). Photos: VGP Prime Minister Pham Minh Chinh stressed the view during meetings with executives of US financial corporations on May 16. Joseph Bae, the CEO of Kohlberg Kravis Roberts (KKR), said the investment fund is looking to expand its presence in the fields of real estate, infrastructure, digitalization, and technologies in Vietnam. According to Bae, KKR is one of the largest private equity managers in the world with assets of US$470 billion. So far, the corporation has invested over $1 billion in three companies in Vietnam. Bae said Vietnam remains an attractive investment destination with favorable … [Read more...] about The Vietnam-US comprehensive partnership facilitates investment activities: PM

Prime Minister Pham Minh Chinh (right) had a meeting with Joseph Bae, Co-Chief Executive Officer of the private equity firm Kohlberg Kravis Roberts in New York on May 16. — VNA/VNS Photo Duong Giang Prime Minister Pham Minh Chinh met with leaders of global investment firm Kohlberg Kravis Roberts (KKR) and Visa Group in New York and held phone talks with the Deputy Managing Director of the International Monetary Fund (IMF) during his trip to the US. At a meeting with Joseph Bae, Co-Chief Executive Officer of KKR, on May 16 (US time), the PM asked the firm to share its experience and offer proposals to Viet Nam. Joseph Bae expressed KKR's wish to expand its operation in real estate, infrastructure, digital transformation, food, consumer goods and technology in Viet Nam, noting that the firm had invested more than US$1 billion in three Vietnamese companies. Viet Nam is an attractive market for investors with incentives rolled out by the Government, along with its favourable … [Read more...] about PM meets leaders of investment firm Kohlberg Kravis Roberts, Visa Group in New York

The State Bank of Vietnam (SBV) and other credit institutions have taken the initiative to advance solutions to assist private individuals and enterprises to weather difficulties and stabilise their production by restructuring, reducing, and exempting interest costs, delaying the payment of debts, and reducing service costs. Customers can enjoy preferential lending rates with credit packages from BAC A BANK After social distancing caused by the health crisis, many localities nationwide have gradually resumed their normal activities. The economy is showing signs of recovery and there are rising demands for capital. The SBV reported that as of late December, the economy’s credit increased by 14.6 per cent on-year. In line with this, BAC A BANK has launched a special credit programme titled Receiving preferential loans – Realising your life goals applicable to loans with collateral. With a total value of up to $217 million, the programme will be implemented until the end … [Read more...] about BAC A BANK offers fresh credit programmes

At a meeting with Joseph Bae, Co-Chief Executive Officer of KKR, on May 16 morning (U.S. time), Chinh asked the firm to share its experience and offer proposals to Vietnam. Joseph Bae said KKR wishes to expand its operation in real estate, infrastructure, digital transformation, food, consumer goods and technology in Vietnam, noting that the firm has invested more than USD 1 billion in three Vietnamese companies. Vietnam is an attractive market for investors with incentives rolled out by the government, along with its favorable geographical location, and young, dynamic population, he noted. The Southeast Asian nation is also the destination for many added value services, Joseph Bae added. Chinh lauded KKR’s investment in the private sector in Vietnam, and welcomed its plan to expand investment in the country, stressing that the firm’s investment focuses match Vietnam’s priorities. He told Joseph Bae that Vietnam lured investments worth USD 1.3 billion in startups last year, … [Read more...] about Prime Minister meets representatives of investment funds, groups in New York

The capital market, digitalization, energy transition, climate change, and strategic infrastructure are key potential fields for Warburg Pincus to focus on in Vietnam. Vietnam’s business environment and macroeconomic conditions have become more stable and favorable for foreign investors, said CEO of global private equity firm Warburg Pincus Charles Kaye at a meeting with Prime Minister Pham Minh Chinh on May 15. Prime Minister Pham Minh Chinh and CEO of global private equity firm Warburg Pincus Charles Kaye. Source: VGP Kaye said investors are concerned about the four major issues, including the capabilities of local companies, macro-economic stability, infrastructure, and the authorities' responsiveness. In this regard, Kaye said Vietnam could do more in infrastructure development as one of the measures to improve the business environment. The CEO also revealed a plan to expand the equity firm investment portfolio in Vietnam’s real estate market and … [Read more...] about Vietnam’s business environment favorable for foreign investors: Warburg Pincus

A view of HCM City. Many banks have temporarily ceased lending to the property sector. — Photo vneconomy.vn Deputy Governor of the State Bank of Viet Nam, Dao Minh Tu, announced at the Government’s March press conference that credit growth in the first quarter of the year had been 5.04 per cent, much higher than the 2.16 per cent rise in the same period last year. He described it as a “quite positive result” that showed the economy had made a significant recovery with people’s lives and businesses returning to normal thanks to the Government’s effective measures against the COVID-19 pandemic. According to a report by the SBV’s HCM City office, credit growth in the country’s main economic hub was estimated at 3.65 per cent in the first quarter. The positive performance has encouraged many banks to set high goals for the full year. At its annual general meeting on March 16, VIB approved a growth target of 30 per cent, much higher than the cap of 14 per cent set by the central … [Read more...] about Not lending to property sector will have mixed effects: analysts