Credit Growth Hits Years-High in Jan-May
Total outstanding loans at banks in Vietnam in the first five months of this year grew 5.48% from the end of 2015 and 17.6% from a year earlier. This is the highest rate for the same period over the past several years.
Lending in foreign currency declined 5.96% from end-2015 as the central bank tightened conditions on forex lending.
Vietnam Property Market Set for Growth: Expert
The Vietnamese real estate market is poised for strong growth in the next 15 years, but the government should prevent speculation to avoid a bubble and improve human resources and infrastructure to attract foreign developers as the country integrates, said Sigrid Zialcita, managing director of Cushman & Wakefield, Asia – Pacific.
The Asia Pacific real estate market will grow the highest globally at 5.2% this year. Vietnam, Indonesia and the Philippines will lead ASEAN
’s growth, the Vietnam News Agency quoted him as saying at Property Report Congress Vietnam 2016 in HCM City.
Gazprom Neft Drops Plan to Acquire Stake in Dung Quat Refinery
Russian giant Gazprom Neft has quit a plan to buy a 49% stake in Binh Son Refining and Petrochemical Company Ltd, the operator of Dung Quat oil refinery, the sole operational facility of its kind in Vietnam.
Gazprom is not satisfied with the conditions proposed by the Vietnamese side, said the group’s Chairman Alexandr Dyukov, adding that the firm will consider resuming the purchase plan when Vietnam meets its requirements.
Vietnam on Radar of South Korea’s State Pension Fund
South Korea’s national pension fund, the world’s third largest with more than $446 billion in assets, will initiate a push for investment in undervalued assets in emerging markets, including in Vietnam, to broaden its portfolio in pursuit of higher return, said Chief Investment Officer Kang Myoun-wook.
Vietnam’s central province of Binh Dinh pledges to grant the highest preferences to Taiwanese investors in the province, said Ho Quoc Dung, chairman of the provincial People’s Committee, at a meeting with 100 Taiwanese firms on June 11.
The provincial authorities expects Taiwanese investors to put money in a wide range of sectors such as road, seaport, airport, hi-tech, banking-finance as well as trade, tourism and telecommunications.
Duty-free Business Changes Proposed
Supervision of imported food products sold at duty-free shops might no longer be needed and firms will assume full responsibility for product quality and safety, according to a government draft decree on duty-free business issued for public comment.
According to the proposed decree, imported food products for sale in duty-free shops will not fall under the regulations on food hygiene and safety checks, according to VNA.
Vietnam’s Poor Governance Is a Danger to Equity Market
Vietnam’s low ranking in corporate governance could scare off investors in the stock market, said Phan Duc Hieu, deputy director of the Central Institute for Economic Management (CIEM), at a conference held by International Finance Corporation (IFC
) and Deloitte Vietnam.
Under the World Bank’s ASEAN corporate governance scorecard, Vietnam ranked the lowest among six regional countries of Indonesia, Malaysia, the Philippines, Singapore and Thailand between 2012 and 2014, he added.
Vietnam Tops Productivity Growth in ASEAN
Vietnamese workers have substantially improved their productivity levels in the last 15 years, VNA reported, citing ICAEW’s latest ‘Economic Insight: South East Asia’ event launched in Hanoi on June 10.
Priyanka Kishore, ICAEW economic advisor and Oxford Economics lead economist, said, “Vietnam’s productivity grew at an impressive 4% per year in the last 15 years and should accelerate to 5% in the next five years, outpacing its neighbors.”
Vietnam Finance Ministry to Accelerate SOE Privatization
The Ministry of Finance has planned to boost the equitization of state-owned enterprises (SOEs) through rating the publicity and transparency of the enterprises’ financial statements, a finance ministry official said.
Deputy General Director of the ministry’s Corporate Finance Department Dang Quyet Tien said that his department is working with securities exchanges and other relevant agencies to be able to implement the plan this year.
Italian Furniture Exhibition to Open Soon
Famous Italian furniture brands will present around 200 of their products at the Italian Legacy exhibition, at a 10-day exhibition, beginning on June 16, at Daewoo Hotel in Hanoi.
Through the event, the first of its kind organized in Vietnam, visitors can understand more about the Italian furniture industry and view products from famous designers, including Colombostile, Medea, Carpanelli, Rozzoni, Luigi and Minotti.
Telstra, Australia’s largest telecommunications company, has become the latest player to join a long list of foreign firms who are striving to nap up a strategic stake in MobiFone Corporation, Vietnam’s second-biggest mobile operator, according to local media reports.
The list also includes Sweden’s Comviq, Norway’s Telenor, Malaysia’s Axiata, Singtel, Deutsche Telekom, Orange (formerly France Telecom) and Vodafone.
Thai retailer Central Group expects its sales in Vietnam to expand by two-digit rates per year after taking over French grocer Big C, Tos Chirathivat, chief executive officer of the group, was quoted by Nation Multimedia as saying.
Central Group acquired a majority stake in Big C Vietnam in April this year from Casino Group for some $1.04 billion. After the takeover, the group recorded total sales revenue of Bt40 billion ($1.13 billion) in Vietnam.
Combined assets of joint venture and foreign banks in Vietnam were calculated at 801.51 trillion dong ($35.6 billion) at the end of April, representing a 1.82% on-month decline, according to data from the State Bank of Vietnam.
Total assets of the whole Vietnamese banking system edged up 0.3% month-on-month and 2.84% from December 2015 to $334.5 in April.