[Round-up] Foreign Biz Advance Interest in Vietnam, Banking Sector Aimed

Tuan Minh

18:04 09/12/2015

BizLIVE - Foreign businesses have attended a number of forums held in Vietnam and overseas to explore investment opportunities. Russian and Taiwanese banks are targeting the country’s banking sector.

[Round-up] Foreign Biz Advance Interest in Vietnam, Banking Sector Aimed

Russian and Taiwanese banks are targeting Veitnam's banking sector.

International Investment Bank Looks to Beef up Investment in Vietnam
International Investment Bank (IIB) is looking to increase its presence in Vietnam by providing loans for local banks to help widen financial access of small- and medium-businesses, and syndicated loans for infrastructure, trade and manufacturing projects in Vietnam, said SBV Governor Nguyen Van Binh.
IIB is moving to finance major projects in Vietnam, particularly in the infrastructure and energy sectors. In addition, it plans to issue bonds in Vietnam to raise funds for projects in the Southeast Asian country, he added.
Vietnam-Switzerland Business Forum Held in Geneva
Vietnam’s Permanent Mission to the UN, the World Trade Organization (WTO) and other international organizations organized the Vietnam-Switzerland Business and Investment Promotion Forum in Geneva on December 7.
The forum aimed to create a network of cooperation between Vietnamese businesses and their Swiss counterparts when economic ties between the two countries have been enhanced.
A number of Swiss firms such as Holcim, Nestle, Generali Insurance, ABB and Syngenta, have gained reputation in the Southeast Asian nation.
Vietnam, Belarus Foster Economic Ties
Over 30 Belarusian businesses operating in agriculture machinery, mining equipment, automobile components, farm products, and beverage sectors attended a business forum in Hanoi on Tuesday.
The forum, which was held by the Vietnam Chamber of Commerce and Industry and the Belarusian Chamber of Commerce and Industry, provided space for businesses to seek long-term partnerships and investment opportunities.
South Korea Investors Flock to Vietnam Southern Province
South Korean investors are steadily pouring funds into the southern province of Binh Duong, making South Korea the third largest among countries and territories currently investing there.
In the first seven months of 2015, many South Korean-based companies visited Binh Duong to explore the investment climate. South Korean investments in the province during the period reached $134.2 million, a provincial official said.
Among them, Castec Vietnam pledged $14.4 million for an auto and electronic components project, while NPC Toda registered to spend $30 million producing plastic products. Remote Solution Vietnam has injected $10 million to manufacture remote control devices and antennas in the province.
Foreign Expert Urges Vietnam to Revamp Energy Sector
Electricity tariffs in Vietnam could be lower if the country develops renewable energies and promotes liberalization alongside, said Prof. Andreas Polk from the Department of Business and Economics, Berlin School of Economics and Law, at a seminar in Hanoi on December 8.
Citing German experiences on reform of the competitive power market, the expert said that electricity tariffs in the European country were sharply reduced between 40% and 50% from 2007 to 2013 as it operated in the competitive power market, facilitating participation of several businesses.
Vietnam Railway Company Raises $3.15 Million from IPO
Saigon Railways, one of the biggest subsidiaries of state-owned Vietnam Railways, raised 72.2 billion dong ($3.15 million) from selling 7.21 million shares, or a 14.33 stake, at its initial public offering on Monday.
According to the Ministry of Transport-approved plan, Saigon Railways will sell another 14.33% stake to strategic investors and 11.34% to its employees, cutting the state holding in the firm to 60%.
The State Bank of Vietnam (SBV), the country’s central bank, is selling forex to local banks to meet their demand, the Saigon Times newspaper cited an executive of a major commercial bank as saying.
The executive did not specify the amount the SBV is selling, but noted that the demand was not high.
Vietnam’s exports are expected to grow by 10.1% from 2021 to 2030, little changed from 2015 – 2020, according to HSBC’s latest report.
Vietnam’s export growth in the 2021-2030 period will be uplifted by (i) strong FDI inflows, which have helped Vietnam diversify its export based and gradually move into higher value sectors, (ii) the large, young, growing and increasingly skilled workforce, (iii) rapid trade liberalization, and (iv) improved macroeconomic fundamentals.
Taiwanese banks and insurers will be able to acquire up to a 100% stake of privately owned Vietnamese banks, The China Post reported, citing Financial Supervisory Commission Chairman Tseng Ming-chung.
The Vietnamese government promised to allow Taiwanese investors to own 30% of state-owned banks and 100% of local privately owned banks, paving the way for Taiwanese banks to extend their reach into the Southeast Asian market, Tseng said after returning from a trip to Vietnam, the first one ever by the head of Taiwan’s financial regulatory agency.
The State Bank of Vietnam (SBV), the country’s central bank, could lower the required reserve ratio (RRR) for banks that are involved in the ongoing overhaul of the banking system.
According to Circular 23/2015, the SBV will consider cutting the RRR on a case-by-case basis for banks that are carrying out restructuring plans or participate in the revamp of weak credit institutions. Circular 23 will enter into force on January 28, 2016.
Vietnam could run a trade deficit of $4 billion this year, equivalent to 2.4% of the total trade value, according to the Ministry of Industry and Trade.
Vietnam is forecast to rake in $164 billion-$164.5 billion from exports in 2015, rising 9.3%-9.5% from a year earlier, below the 10% target set by the National Assembly (NA), the country’s supreme legislative body. Its imports, meanwhile, are forecast to increased 13.5% year-on-year to $168 billion.