New payment mode for G-bonds launched

The launching ceremony of the new payment mode for trading of Government bonds through the State Bank of Viet Nam on Tuesday. — Photo tinnhanhchungkhoan.vn The new payment mode for transactions of Government bonds through the State Bank of Viet Nam (SBV) instead of through a commercial bank was launched in Ha Noi on Tuesday. According to Duong Van Thanh, general director of the Vietnam Securities Depository Centre (VSDC), payment via the commercial bank mode, as done previously, is only suitable for a small- or medium-sized G-bond market. It is not preferable now when the market develops to a new high level with fast rising transaction value. In the first half of this year alone, the listing value of the G-bond market reached VND979 trillion (US$42.93 billion), equal to 18 per cent of Viet Nam’s GDP. Average transaction value in a session in H1 was VND7.7 trillion, 21 times higher than in 2009, while the payment value in the market also rose 586 per cent against 2010 to VND1.2 quadrillion. With the rising value in the G-bond market, payment for transactions of G-bonds should be made through the central bank to ensure safety and ease in the payment of G-bond transactions, Thanh said. According to the Ministry of Finance, this is a breakthrough in the modernisation of the bond trading system in accordance with international practices. It also helps accelerate the process of international integration of the market, creating a prerequisite for…... [read more]

The new payment mode for transactions of Government bonds through the State Bank of Viet Nam (SBV) instead of through a commercial bank was launched in Ha Noi on Tuesday. The launching ceremony of the new payment mode for trading of Government bonds through the State Bank of Viet Nam on Tuesday. According to Duong Van Thanh, general director of the Vietnam Securities Depository Centre (VSDC), payment via the commercial bank mode, as done previously, is only suitable for a small- or medium-sized G-bond market. It is not preferable now when the market develops to a new high level with fast rising transaction value. In the first half of this year alone, the listing value of the G-bond market reached VND979 trillion (US$42.93 billion), equal to 18 per cent of Viet Nam’s GDP. Average transaction value in a session in H1 was VND7.7 trillion, 21 times higher than in 2009, while the payment value in the market also rose 586 per cent against 2010 to VND1.2 quadrillion. With the rising value in the G-bond market, payment for transactions of G-bonds should be made through the central bank to ensure safety and ease in the payment of G-bond transactions, Thanh said. According to the Ministry of Finance, this is a breakthrough in the modernisation of the bond trading system in accordance with international practices. It also helps accelerate the process of international integration of the…... [read more]

The value of M&A deals has strongly increased, particularly during the 2009-2011 period. The market saw 295 deals worth US$1.14 billion done in 2009, and 245 transactions valued at US$1.75 billion, conducted in 2010. In 2011, a total of 266 M&A deals raised US$4.7 billion, in total value a year-on-year increase of 135%. Last year, the M&A market was worth a total of US$4.95 billion from 157 deals, a rise of 5.3%t in value compared to the previous year. Despite the decrease in the number of deals, the large transactions helped keep the market value at a stable level. Thailand’s Siam Cement Group acquired 85% of Prime Group’s shares worth US$240 million in the same year. The first six months of this year also saw various M&A deals, particularly an impressive deal of the largest commercial property company in Vietnam, VinGroup, which collected US$470 million from selling one of its commercial centres to its Vietnamese partner VIPD. Recently, foreign investors showed their greater interest in Vietnam’s M&A market, particularly Japanese investors. Vietnam’s market in 2013-2014 still creates opportunities for both foreign investors and domestic enterprises with an increasing trend of transferring from foreign direct investment (FDI) to indirect investment through M&A, forecast specialists in the field. Nguyen Quang Thuan, General Director of Stoxplus Financial Media Corporation, predicts that the M&A market will be much more dynamic in property, food and drink, cement, finance and banking. “Our database shows that there are presently 10 M&A food and drink deals in the…... [read more]

In the previous week, the winning rate of bonds offered on the primary market was 86.3%, the bond auction’s organiser, the Hanoi Stock Exchange (HNX), said. The deals included three-year bonds worth VND3.9 trillion, five-year bonds amounting to VND2 trillion, VND303 billion-worth ten-year bonds and 15-year bonds-worth VND1.237 trillion. The three-year bonds, the most attractive item at the auction, were all offloaded. Ninety five percent of the 15-year bonds were also sold out, while the quantity of the five-year bonds and ten-year bonds sold was 50% and 30%, respectively. The annual coupon rate for ten-year bonds fell slightly by one basis point to 6.94%, while yields for bonds of three years, five years and 15 years were unchanged at 5.55%, 6.4% and 7.65%, respectively. In the primary market, as of April 15, the Government issued VND100.8 trillion-worth G-bonds and Government guaranteed bonds, including bonds worth more than VND87 trillion issued by the State Treasury, VND13 trillion-worth bonds issued by the Vietnam Development Bank and bonds worth VND600 billion issued by the Bank for Social Policies. Meanwhile, the transaction liquidity on the secondary market improved, with an increase in transaction value of 27.5% compared to last week’s figure, to reach VND22.4 trillion. Each day, average trading reached VND4.5 trillion. Outright transactions accounted for 56%, mainly on the three-year bonds, while the repo transactions accounted for 44%. Foreign investors sold bonds worth VND31.4 billion in the week. On April 20, the treasury offloaded another VND9.8 trillion-worth of bonds, including three-year bonds-worth VND3.9…... [read more]

Director of the State Securities Commission (SSC)’s Market Development Department Nguyen Son made the announcement at a seminar held by the SSC on February 4. He attributed the decline to a strong slump in domestic share prices and foreigners’ accelerated sales amid the world financial and economic turmoil, especially sales of Government bonds and shares that had high liquidity. According to Son, foreigners’ transaction value on the domestic market averaged at US$300 million per month last year and mounted to US$880 million in October when net sale values by overseas clients expanded. But the capital value withdrawn from Vietnam was insignificant, he said, explaining that slumped liquidity on the local exchange hindered investment outflow. Some capital was shifted to other investment channels such as real estate as foreign investors adjusted their investment portfolios. The total value of deposits in foreigners’ domestic securities investment accounts is now about US$400 million, a figure that was considered good in the current atmosphere, Son said. Son warned that accelerated sales by foreigners would put further pressure on exchange rates. Following a seminar held to discuss economic conditions, hosted by the National Assembly’s Economic Committee last month, interest and exchange rate policies were important tools to regulate the flow of foreign indirect investment into the economy in general and the stock market in particular. Experts also suggested the Government consider issuing domestic bonds in foreign currencies since foreign capital had fallen and banks and enterprises might see redundancy of idle capital in the next few…... [read more]

The two-day event is co-organised by the Department of Financial Informatics and Statistics under the Ministry of Finance and the International Data Group. This is the 6th year the event has been held, creating a venue for suppliers and users of information and communication technology (ICT) in the financial sector to convene and discuss the needs for ICT applications in the financial system. In addition, it is a platform for introducing, sharing and accessing the latest ICT solutions from leading local and foreign ICT corporations, that support the informatics process in financial management. During previous years, the ICTF has the following themes: Storage and Security, ICT Solutions for E-Tax and E-Custom systems, ICT application in the Stock and Assurance sector, ICT application in the development of financial services, and building the foundations of E-Finance. ICTF conferences, which are professionally organised to international standards, are useful for exchanging and seeking ICT solutions when upgrading the financial systems. This year’s conference focuses on enhancing ICT systems to satisfy demands from the government and the public in the next few years, as well as improving the communications infrastructure. It will also explain applications required in e-business and the development of databases for the public financial sector. With the aim of ”Building the Foundations for E-Finance”, the conference will cover service models and payment methods in e-finance transactions, value added services, routine applications based on ICT infrastructure and modern telecommunications. Speaking at the event, Dang Duc Mai, Director of the Department of Financial Informatics…... [read more]

Speaking at a conference on facilitating export to the US via e-commerce held in Hanoi on March 30, Dung stressed that the application of technology, especially information technology, will help businesses save time and money to deal with today’s fiercely competitive environment. It is necessary to apply e-commerce to make use of opportunities offered by economic integration, he added. Mr Dung revealed that VCCI has consistently supported businesses to apply e-commerce import-export activities. Analyzing the benefits of e-commerce, Nguyen Duy Khiem, Head of the American Market Department under the Ministry of Industry and Trade, said that e-commerce helps producers and distributors access goods supply sources. Via e-commerce, businesses can cooperate and seek trade partners for themselves. Timothy Leung, Director of the Alibaba.com group, said that e-commerce plays an important part in business operations today. Developed countries account for more than 90 percent of the world’s total e-commerce transaction value. Like other developing countries, Vietnam has not yet met requirements for e-commerce in import-export activities. E-commerce is an effective channel for importers and exporters to penetrate a large playing field that enables millions of consumers to buy products everyday, he stated.... [read more]

M&A in banking sector: pros and cons At a recent conference in Hanoi, Nguyen Anh Tuan, head of the M&A Vietnam Forum 2012 organising board, said the country now ranked 8th among nations which witnessed the busiest M&A activities in the Asia-Pacific region, adding that the total M&A transaction value of the region, excluding Japan, reached US$ 92.4 billion. Quoting data from researchers including Thomson Reuters, IMAA and AVM, Tuan said M&A activities in Vietnam grew on average 30 percent per year in recent years, becoming a remarkable investment channel for both local and foreign enterprises. According to the researchers, the country had 345 M&A deals worth a combined US$1.7 billion in 2010. M&A values increased sharply by 135 percent last year, totaling a record US$ 4.7 billion with over US$2.6 billion from foreign investors. In terms of quantity, 77 percent of last year's transactions involved local firms, proving the activities were busy among domestic players despite their small values. In terms of deal values, foreign investors represented 66 percent, a ratio showing that they tended to buy quality companies in Vietnam. Tuan said M&A is expected to grow at over 30 percent per year in the coming time, with consumer goods, banking and finance and real estate forecast to continue to be the most attractive sectors. Japan was leading foreign countries whose enterprises had carried out M&A activities in Vietnam, he noted, with highlighted deals including Mizuho becoming a strategic partner of Vietcombank and Unicham buying a 95-percent stake…... [read more]

VietNamNet Bridge - Fintech is not an easy playing field for startups, but the firms have been growing rapidly with capital from investment funds. Payoo has reported that the total transaction value in 2015 exceeded the $1 billion threshold. Other payment intermediaries such as Nganluong, MoMo, VTCPay and 123Pay estimated the transaction value of $50-150 million a year, mostly in payments for telecom fee, e-commerce, digital content services and online games. Fintech firms have been growing so rapidly that they have outdistanced commercial banks in some payment fields. A report of the Electricity of Vietnam (EVN) HCMC Branch about electricity bill collection agents showed that Payoo has seen transaction value increasing rapidly in recent years, with value in 2015 increasing by 89 percent over 2014. In August 2016, the payment value through agents accounted for 44 percent of its total payment value (900,000 bills with total value of VND2.98 trillion). Fintech is not an easy playing field for startups, but the firms have been growing rapidly with capital from investment funds. Payoo led the partners with the value accounting for 8.36 percent, leaving ABBank, another partner behind with 4.27 percent, Sacombank 2.6 percent and Vietcombank 2.43 percent. The figure, in analysts’ eyes, means that cooperation between Japanese NTT Data and Vietnamese VietUnion, which owns Payoo, has been successful. With the one shop payment, Payoo is now leading the utilities services thanks to the large integrated network which connects banks, finance companies, insurers, service providers and retailers such as Aeon, Lotte,…... [read more]

Hanoi (VNA) – The Securities Journalists’ Club has announced top 10 events in Vietnam’s stock market in 2016. 1. 20-year hallmarks of the securities sector: On November 28, 2016, the State Securities Commission hosted a ceremony celebrating the 20th anniversary of the securities sector’s traditional day and received the Independence Order, second class. Over the past two decades, Vietnam has developed a well-functioning securities market with more than 1,000 public enterprises listed on the Hanoi Stock Exchange (HNX) and the Ho Chi Minh Stock Exchange (HSX or HOSE). The market capitalisation of all listed companies hit over 70 billion USD, attracting 1.6 million domestic and foreign investors. Upwards 2 quadrillion VND has been raised for national and corporate development and nearly 4,000 firms have launched initial public offerings via the market. 2. Year of “black swan” and unexpected shocks: Vietnam’s securities market 2016 suffered unexpected external shocks that left powerful repercussions, including the shutdown of China’s stock market on April 1, the UK’s exit from the European Union on June 24, and the US presidential election result on November 9, which led to sell-off by investors. Two of the worst hits were on June 24 and November 9 when the benchmark VN-Index slumped 5.47 percent and 3 percent, respectively. Thanks to solid market fundamentals, it later recovered. 3. From IPO to trading platform – “record” short path: On November 1, 2016, the Finance Ministry’s Circular 115/2016/TT-BTC officially took effect. Accordingly, within 20 working days from the deadline for making payment…... [read more]




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