Banking & Finance

Moody`s expects Vietnam`s real GDP growth to remain one of the strongest in ASEAN, at 6.7% in 2018 and 6.5% in 2019.

Deposits at three major state-run banks stood at VND2,550 trillion (US$110.04 billion), accounting for 46% of total deposits at 28 banks, CafeF reported.

The future sale of 600 million shares to KEB Hana, if successful, will have a big positive impact on BIDV’s financial picture by improving its credit and profit growth potential.

The State Bank of Vietnam (SBV)’s timely intervention has been key to stabilize the VND in the context of global uncertainties.

Improving the transparency of Vietnam’s securities market is necessary due to rapidly increasing market capitalization in the context of further transition to the market economy and development of the private sector.

The rating action reflects Moody`s expectation that the strong economic growth evident in Vietnam will support the asset quality and profitability of the banks.

At the current market price of VND30,350 (US$1.3) per share, the planned shares of Bank for Investment and Development of Vietnam (BIDV) issued to KEB Hana Bank are worth VND18.3 trillion (US$735 million).

By the end of 2020, the ratio of cash transactions is expected to be reduced to below 10% and at least 300,000 point of sales (POS) are installed nationwide.

The State Bank of Vietnam (SBV)’s sale of USD has impacted the Vietnamese dong (VND)’s liquidity in the market, which could become more severe as demand for liquidity is growing in the remaining months of 2018.

Vietnam`s exchange rate policy has been managed on the basis of market mechanism.

The bank`s revenue during the period reached VND6.78 trillion (US$289.42 million), up 21.1% year-on-year.

As of September 2018, Techcombank` total asset value stood at VND311.79 trillion (US$13.36 billion), up 15.7% compared to the beginning of the year.

The National Assembly`s Finance - Budget Committee requested the government to ensure national financial safety by strictly implementing financial disciplines.

As of September 30, state-run Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank)`s total assets were valued at VND995.11 trillion (US$42.47 billion), down 3.9% compared to the beginning of the year.

Vietnam Prosperity Bank (VPBank)`s total asset value was reported at VND296.21 trillion (US$12.74 billion), up 17% year-on-year.

This is a major step for Vietcombank, Vietnam`s largest lender by market value, to increase its charter capital by nearly 3.6 trillion (US$153.4 million) to VND39.5 trillion (US$1.7 billion), local media reported.

Vietnam should focus on restructuring of state budget expenditures, increasing transparency and efficiency in state budget spending with people`s oversight, and avoiding tax evasion and unnecessary tax incentives.

The brokerage firm expected the credit growth of its Vietnamese bank universe to remain robust, at 16% median in 2018 (19% in 2017), followed by 15% in 2019.

In the coming time, Shinhand will focus on developing consumer finance in Vietnam, the government portal reported.

Vietnam`s foreign exchange reserves are sufficient to stabilize the exchange rate until the end of the year.