Market declines on fragile investor confidence

Shares declined on Tuesday after a brief recovery in the previous session when a number of heavyweight shares sank into the red on fragile investor confidence. Shares declined on Tuesday after a brief recovery in the previous session when a number of heavyweight shares sank into the red on fragile investor confidence.– Photo zing.vn The benchmark VN-Index on the HCM Stock Exchange went up 0.66 per cent to close at 771.06 points. The southern market index increased 0.53 per cent on Monday. On the Ha Noi Stock Exchange, the HNX-Index was down 0.2 per cent to end at 101.3 points. The northern market index dropped 0.64 per cent in the previous session. The slump of large-cap stocks in the main bourse in HCM City negatively affected investor sentiment. Two-thirds of the top 30 largest shares by market value and liquidity on the HCM Stock Exchange lost value while only ten advanced. Major market support such as banks, food-beverage, real estate and construction companies all tumbled. Real estate firms recorded the biggest loss yesterday with an average decrease of 1.52 per cent, data on vietstock.vn showed, with big names including VinGroup (VIC), Kinh Bac City Development (KBC), FLC Group (FLC), Phat Dat Real Estate Development (PRD) and Coteccons Construction (CTD). Seven of nine listed lenders on the two exchanges slipped while only one picked up. The four largest banks by market value –…... [read more]

Prime Minister Nguyen Xuan Phuc has called for an increase in credit growth to 21 per cent this year to help the country hit its economic growth target, potentially adding to concerns over the pace of new lending. The Prime Minister told a government meeting last weekend of the goal, emphasizing the importance of hitting the 6.7 per cent GDP growth target for the year. Data from the General Statistics Office showed that credit growth during the first half was 7.5 per cent compared to a year ago; the highest in six years. Meanwhile, State Bank of Vietnam (SBV) Governor Le Minh Hung said that credit growth at a pace of 9.06 per cent was seen as at June 30 compared to the end of 2016. In February, the central bank set a 2017 credit growth target of 18 per cent, and there has been no announcement that the official target has been increased. In July, the SBV sprang a surprise on markets by reducing the refinancing rate, rediscount rate, overnight electronic interbank rate, and the rate of loans to offset capital shortages in clearance between the central bank and domestic banks by 25 basis points. The cuts, which come three years after the previous move, reduced the refinancing rate to 6.25 per cent and the rediscount rate to 4.25 per cent and was aimed at stimulating the pace of economic growth towards the 6.7 per cent target for the year. Few would question whether there was room to cut…... [read more]

There is a new sense of urgency in Vietnam to equitize state-owned enterprises (SOEs) and use the money raised from public offerings to alleviate the government’s fiscal burden, HSBC said in a new report on the country's economic prospects for August. Equitization is the term Vietnam uses to describe the process of issuing shares to partially privatize state-owned businesses in which the government will still hold the majority stake. Vietnam’s policymakers, in recent statements, have framed the sale of SOEs as a means to both increase fiscal revenue and reduce government expenditure, the London-based lender said. Late last year, Prime Minister Nguyen Xuan Phuc signed off on a decision which pushes for further divestment of state capital in existing SOEs by eliminating or reducing the minimum level of ownership that the government holds in certain industries. The decision provided a clearer roadmap for equitization by saying that the state will equitize 137 SOEs and sell its entire stakes in 103 firms. The Ministry of Finance said in June that the country’s public debt, which includes central government debt, government-backed loans and local government debt, may reach the ceiling set by the legislative National Assembly of 65 percent of gross domestic product (GDP) from 2017-2018. Assuming that economic growth hits 6.7-7 percent this year, public debt will account for 64.8 percent of GDP, the ministry projected. Vietnam has set an economic growth target of 6.7 percent this year, but many experts call it too ambitious. Deputy Prime Minister Vuong Dinh…... [read more]

VietNamNet Bridge - Thousands of households in the Thach Khe iron mining area in Thach Ha district of Ha Tinh province have endured tough lives for the last 10 years. They have no land for cultivation and no jobs, while water sources have become polluted. Most of them have incurred big debt.  Phan Trong Dao, 62, in Long Tien hamlet, said many years ago when the iron mining project kicked off, he was promised VND100 million to leave.  Dao then decided to borrow money to buy land in another area for resettlement. In 2010, he bought 500 coffee plants, a rice field and a small house in Eakar district of Dak Lak province, worth VND200 million. However, in early 2011, he heard that the mining project was suspended. The financial support of VND100 million did not come as promised. Since Dao could not arrange money, he had to pay back the house and the field to the seller. Thousands of households in the Thach Khe iron mining area in Thach Ha district of Ha Tinh province have endured tough lives for the last 10 years. They have no land for cultivation and no jobs, while water sources have become polluted. Most of them have incurred big debt.  “The investor told me to remove the graves of my relatives in Dong Xiem area to Con Hat Chung cemetery and promised to compensate for the removal. I borrowed money and built a new grave at a cost of VND70 million. But I…... [read more]

On August 17, VPBank will be officially listed on the Ho Chi Minh City Stock Exchange (HoSE). Including this, there are at least four major bank listings in 2017, and so far, this trend has shown no signs of stopping. RELATED CONTENTS: VPBank making its debut on HoSE Higher credit growth could increase listed banks’ profits Brokerages, finance-banking firms lift stock market VPBank’s stock (VPB) has been heating up on the OTC platform in preparation of the official listing. With the official listing price of VND39,000($1.72) per share, investors have been racing to buy VPB shares on the OTC market at the price VND36-38,000 ($1.58-1.67). Since the end of 2016, VPB’s price has almost quadrupled, from VND10,000 ($0.44) to 38,000 ($1.67) per share. If the reference price of VND39,000 ($1.72) is kept when officially listed, VPB will have a capitalisation value of VND52 trillion ($2.29 billion). This makes VPB the number one bank stock in terms of price and fourth in terms of capitalisation value. Banking sector bussiness results in 2016 Recently, bank stocks have been growing well and attracted special interest from investors. Early this year, Vietnam International Commercial Joint Stock Bank (VIB) joined the stock market with a reference price of VND17,000 ($0.75) per share, which has subsequently grown to VND22,000 ($0.97). Similarly, LienVietPostBank’s LPB also…... [read more]

The Government has released Decree 94/2017/ND-CP stating that the State will hold the monopoly in the production and trading of 20 goods and services.  illustration photo Accordingly, 20 goods and services will be subjected to State monopoly as follows:   1. Goods and services used for defense and security purposes; 2. Production, trade, import-export and transit transport of industrial explosives; 3. Production of gold bars; 4. Export-import of material gold for making gold bars 5. Issuing state lottery; 6. Import of cigarettes and cigars (exclusive of duty-free stores); 7. Management, export-import, purchase, sale, storage and preservation of goods named in the national reserves list; 8. Money printing and minting; 9. Issuance of Viet Nam’s postal stamps; 10. Production, export-import, purchase, sale, transport and storage of fireworks and supply of related services; 11. Transmitting and controlling the national power grid; construction and operation of multi-purpose hydropower plants and nuclear power facilities of special socio-economic importance; 12. Public services ensuring navigation safety (operation of lighthouses and public navigational passages); 13. Management and operation of coastal information facilities; 14. Services related to fly control, aviation information and aviation search & rescue; 15. Management and exploitation of national and urban railway infrastructures invested by the State, exclusive of maintenance services; 16. Management and exploitation of inter-provincial, inter-district irrigation and water supply systems for agriculture, and sea…... [read more]

According to the National Financial Supervisory Commission, many supporting factors in both the domestic and international markets could help an interest rate cut until the year-end. According to the National Financial Supervisory Commission, many supporting factors in both the domestic and international markets could help an interest rate cut until the year-end.- Photo kinhtedothi.vn Firstly, the commission said, the pressure from the exchange rate is not too large, as the US dollar has devalued by more than 7 per cent since early this year, and the chance to raise interest rates this year from the US Federal Reserves is less than 50 per cent. Secondly, inflation is more likely to stay below the National Assembly’s target of 4 per cent. Thirdly, the country successfully issued 75 per cent of the Government bonds planned for the entire 2017, and the G-bond yield decreased by 0.2 percentage points to 0.3 percentage points compared with the end of June, and 1 percentage points compared with the same period in 2016. Hence, it would facilitate the reduction of interest rates in the banking sector. According to the commission, thanks to the positive movements in interest rates when the deposit interest rates are stable, lending has so far grown positively. Credit growth by the end of July 2017 was 9.3 per cent, compared with the end of 2016. The lending structure by currency also continued to remain stable…... [read more]

Platelet donors at the National Institute of Hematology and Blood Transfusion in Hanoi. They receive just over US$30 for every 500ml of platelets donated. Some of them even ignore doctor’s recommendation and go for platelet donations as often as three times a month, risking adverse health problems. Platelets, also called thrombocytes, are a component of blood whose function is to stop bleeding by clumping and clotting blood vessel injuries, according to Phu Chi Dung, director of Ho Chi Minh City Blood Transfusion and Hematology. A donor can lose up to 20% of their platelet counts after each donation, Dung said. Donated platelets are used in transfusions for cancer patients who suffer from low platelet count as a side effect of their treatment, and to help patients survive major surgeries or serious injuries by replacing those lost during bleeding, according to the American Red Cross. Frequent faces at platelet donation room It was 8:00 am at the six-story blood transfusion center of Cho Ray Hospital in Ho Chi Minh City, and 25 people, most of whom still in their 20s, were already lining up outside the platelet donation room. Another group of 15 people could be seen inside the room, with cords running from their arms to centrifuge machines that separate platelets from their blood. Cho Ray Hospital is among only three medical institutions in Ho Chi Minh City where platelet donations can be done, with the other two being…... [read more]

Japan's economy grew 1.0 percent in the April-June period, notching up its sixth straight quarter of growth and its longest economic expansion in over a decade, government data showed Monday. The growth in Japan's GDP -- 4.0 percent at an annualized rate -- blew past market expectations for a 0.6 percent rise, and was well up from a 0.4 percent expansion in the first quarter, according to figures from the Cabinet Office. The world's number three economy has been picking up steam, mainly on the back of a surging exports including smartphones parts and memory chips, with investments linked to the Tokyo 2020 Olympics also giving growth a boost. But the latest GDP figures were driven by robust domestic demand and capital spending, which offset a quarterly decline in exports. Private consumption picked up 0.9 percent in the second quarter -- individual spending accounts for more than a half of Japan's GDP. The labor market is tight and business confidence is high but efforts to lift inflation have fallen flat despite years of aggressive monetary easing by Japan's central bank. The latest reading nonetheless means Japan's economy has had its best string of gains since 2006, during the tenure of popular former prime minister Junichiro Koizumi. Monday's figures are good news for the current prime minister Shinzo Abe -- whose brief and underwhelming first term as Japan's premier came directly after Koizumi. A string of short-term leaders followed before Abe swept back to power in late 2012 on a…... [read more]

Vietnam's prime minister has called for an increase in credit growth to 21 percent this year to help the country hit its economic growth target, state media reported on Monday, potentially adding to concerns over the pace of new lending. Prime Minister Nguyen Xuan Phuc stated the goal at a meeting of top officials at the weekend, where he emphasized the importance of hitting the 6.7 percent annual economic growth target, Vietnam News Agency and other state outlets said. In February, Vietnam's central bank set a 2017 credit growth target of 18 percent, and there has been no announcement that the official target has been increased. The central bank cut its refinancing rate by 25 basis points to 6.25 percent in July If the prime minister's goal becomes an official target, this could make further interest rate cuts more likely, said ANZ economist Eugenia Victorino. "But then the quality of credit growth and the quality of growth overall in the economy may be at risk," she said. The July rate cut came just days after the International Monetary Fund voiced concerns about credit growth and said rates should stay on hold. Vietnam is still suffering the fallout from a 2011 banking crisis, caused by excess lending into sectors such as real estate. But the government is also hard pressed to meet its 2017 growth target after the economy grew at an annualized rate of 5.73 percent in the first half. Growth of 6.21 percent last year fell short of…... [read more]




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