Why real estate investment banking

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

Pham Viet Tuan-Associate, Indochine Counsel Many of the negative risks arise because of the complicated Vietnamese land laws, which prevent not only foreign investors but also local developers from developing projects. This article will give some hints on how they could properly tackle issues related to land in property project development through the contribution of land. In the Vietnamese real estate market, it is common for a property developer to have land but not the budget or experience/resources needed to develop the project. In this case, such developers might seek other ways to conduct their business plan. Some solutions may be to secure a loan facility from a bank; to cooperate with other developers who have experience/resources in the project development; or to call for financial aid from funds, and foreign/local investors or to issue bonds in the capital market. Each solution has its pros and cons. From a foreign perspective, project land is essential to project … [Read more...] about Making better decisions in real estate

"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 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 percent in 2020 to 50.5 percent last year, on its way to the bank’s target of 55 percent by 2025. Techcombank’s net interest margin (NIM), a measure of the difference between the interest received by the bank and the amount paid out to lenders, also increased 69 basis points to 5.6 percent during the year. "Together, these improving metrics, along with our effective cost management, translated into an excellent profit before tax … [Read more...] about Techcombank eyes seat at top Southeast Asian banking table

Aiming to become one of the top 10 banks in ASEAN, Vietnam’s Techcombank is prioritizing sustainable growth over the long term, even as the bank delivered another year of sizzling hot growth in 2021. The rate of 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 lender 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 percent in 2020 to 50.5 percent last … [Read more...] about Vietnam’s Techcombank is on track for seat at top table of ASEAN banks

Masan workers on a production line. MSN stocks hit ceiling prices on Thursday, backing market reversal. — Photo vietnambiz.vn As bulls and bears entered a tug-of-war, the benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) rose by 0.88 points, or 0.07 per cent, to 1,241.64 points. The market’s breadth stood considerably negative as advancers were dwarfed by decliners. Notably, 294 stocks advanced while 519 declined. The market’s liquidity was low with only 460 million stocks traded on the southern bourse, equivalent to around VND11.6 trillion (US$502 million). Buying forces were not strong enough to lift blue chips. The 30 biggest stock tracker VN30-Index lost 2.86 points, or 0.22 per cent, to end at 1,283.55 points. In the basket, decliners outnumbered advancers by 18 to eight. Among ten stocks propping up the market, Masan Group (MSN) was the largest gainer, hitting the ceiling prices. Other stocks that fueled market reversal included Duc Giang Chemicals (DGC), … [Read more...] about Market edges up slightly due to bull-bear tug of war

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

Vietnam experiences a strong recovery Sanjay Kalra, group head and lead economist of the ASEAN+3 Macroeconomic Research Office (AMRO) said, “The Vietnamese economy is expected to grow at 6.3 per cent this year and 6.5 per cent in 2023 and inflation is projected to remain contained. This positive outlook rides on strong external demand, a recovery in domestic consumption, and healthy investments inflows bolstered by an appropriate macroeconomic policy stance.” Thanks to the easing of restrictions and domestic containment measures, the aggregate output gap is expected to narrow significantly by the end of the year. The recovery is, nevertheless, uneven across sectors. While both the manufacturing and service sector outputs have surpassed their 2019 levels, the service sector still has pockets of distress, especially in the tourism, hospitality, and logistics sectors. Consumer price inflation is projected to remain contained under 3.5 per cent as the authorities plan to utilise … [Read more...] about Vietnam experiences a strong recovery amidst external headwinds