Vietnam Bans SOEs from Investing in Sensitive Sectors, Trade Gap Widens to $4 Billion

Tuan Minh

16:51 15/10/2015

BizLIVE - The Vietnamese government has banned state-owned firms to invest in five non-core business lines. The country's trade deficit widened in September as domestic firms' demand for materials rose. 

Vietnam Bans SOEs from Investing in Sensitive Sectors, Trade Gap Widens to $4 Billion

The Vietnamese government has banned state-owned firms to invest in five non-core business lines.

Vietnam SOEs Banned from Investing in Realty, Banks and Securities
The Vietnamese government has issued a decree prohibiting state-owned enterprises (SOEs) from investing in five industries namely real estate, banking, insurance, securities and investment fund, starting the upcoming December.
The government also requires SOEs to withdraw already-done investments in those businesses.
The move comes after many state-run giants have reported losses from their investments in non-core investments.
TPP to Help Augment Vietnam-Japan Economic Relations: Deputy PM Hai
The recently-concluded Trans-Pacific Partnership agreement will help Vietnam and Japan foster bilateral economic relations, especially in supporting industries and the agriculture, said Deputy Prime Minister Hoang Trung Hai at the Vietnam-Japan Economic Forum in Hanoi on Wednesday.
Vietnam expects the Japanese government and business community to continue beef up investment in Vietnam, with a focus on six sectors namely electronics, agricultural machinery, agro-seafood processing, shipbuilding, environment, energy efficiency, and automotive manufacturing.
Vietnam Posts Trade Deficit of $4 Billion in Jan-Sept
Vietnam’s exports increased 9.2% year-on-year to $120.22 billion in the nine-month period while imports soared 15.6% to $124.25 billion, resulting in a trade deficit of $4.03 billion, the department said in a filing on October 15.
Foreign-invested enterprises posted a trade surplus of $8.55 billion while domestic companies incurred a trade gap of $12.55 billion in the nine-month period.
Vietnam Treasury Raises 101.55 Trillion Dong from Bond Sales YTD
The State Treasury of Vietnam sold 2.78 trillion dong out of 2.5 trillion dong worth of government bonds at an auction on the Hanoi Stock Exchange on October 14.
The treasury has raised a total of 101.55 trillion dong from bond sales in the year to date, versus a plan to issue 250 trillion dong worth of debt this year.
Vietnam Jan-Sept Credit Growth Hits 3-year High
Total outstanding loans of the Vietnamese banking system at the end of September grew 12% from December 2014, the highest growth rate for the comparable period in the past three years, Maritime Bank Securities Co. or MSBS said.
Moody’s Assigns First-Time B2 Ratings to ABBank
Moody’s Investors Service has assigned first-time ratings to An Binh Commercial JS Bank (ABBank): B2/Not Prime global local and foreign currency issuer ratings, B2/Not Prime local and foreign currency deposit ratings, and a b3 standalone baseline credit assessment (BCA).
The outlook on the long-term issuer and deposit ratings is stable.
Moody’s has also assigned a Counterparty Risk Assessment (CR Assessment) of B2(cr)/Not Prime(cr) to ABBank, with 20% held by Malayan Banking Bhd (Maybank).
StanChart-Invested Asia Commercial Bank Posts Profit of 1.1 Trillion Dong in Jan-Sept
Ho Chi Minh City-based Asia Commercial Bank (ACB), with 15.42% owned by Standard Chartered Plc, earned a pretax profit of 1.09 trillion dong ($48.75 million) in the first three quarters this year, including provisions for credit risks, said General Director Do Minh Toan.
At the end of September, the bank’s total lending grew 12.8% from December 2014, outpacing mobilization which expanded 8.5%. The lender brought its bad debt ratio down to 1.7% at the end of last month and plans to unload one trillion dong in spoiled loans to VAMC to lower the ratio to 1% by the year-end.