City’s credit balances up 10.92 percent

On June 9, 2015, the Government issued Decree 55/2015/ND-CP on credit policies for agricultural and rural development in replacement of Decree 41/2010/ND-CP. Over the past two years, the banking sector of Soc Trang province has achieved positive results, speeding up agricultural restructuring and helping sustain agricultural development and realise the National Target Programme for New Rural Area Construction. Benefits for agriculture, farmers Over the past two years of executing Decree 55, outstanding loans for agriculture have been on the rise. As of March 31, 2017, outstanding loans for agriculture and rural development in Soc Trang province reached VND13,551 billion, 0.24 per cent higher than that at the end of 2016 and equivalent to 53 per cent of total outstanding loans. Two years with Decree 55, the credit balance for agriculture and rural development areas in Soc Trang province more than doubled. While pushing up credit growth, credit quality in the province is under control. The rate of bad debts to agricultural and rural loans according to Decree 55 is on the fall. Mr Pham Kim Hung, Deputy Director of the State Bank of Vietnam (SBV) - Soc Trang Branch, said, Decree 55 created new breakthrough steps for agricultural and rural development thanks to a lot of changes from the replaced Decree 41 and strong support from farmers. Remarkable new changes include a wider scope of borrowers and higher limits for unsecured loans, thus facilitating customers in agriculture and rural areas to access more bank credit. This was also…... [read more]

From early 2017 till now, many commercial banks have almost reached the lending growth cap set by the State Bank of Vietnam (SBV) and are now requesting SBV to set a higher credit growth limit to ensure more room for lending. SBV forecast to raise credit growth by 1-2% Tentative banks slow hi-tech agricultural credit package Creditors adjust growth forecasts Running out of lending room In the first half of 2017, Vietnam International Commercial Joint Stock Bank (VIB) has almost reached the lending growth cap of 16 per cent. Its outstanding credit balance was nearly VND75.7 trillion ($3.3 billion), an equivalent credit growth rate of 15.7 per cent. Most of VIB’s credit growth derives from retail loans, which rose more than 30 per cent compared to the end of 2016. Thus, while the cap for VIB was 16 per cent for the whole year, VIB’s credit growth has been 15.7 per cent in the first half. Han Ngoc Vu, general director of VIB, said that the bank proposed SBV to raise the credit growth limit. If the proposal is approved, VIB will have more room for lending, especially at the end of the year when the demand for borrowing usually increases. After the first six months of 2017, Vietnam Prosperity Joint Stock Commercial Bank (VPBank)’s credit growth rate was 12 per…... [read more]

Going on with stimulus policies Mr Dung assured NA deputies that Vietnam will fulfil the target of achieving a 5.2 percent GDP growth rate this year thanks to the past 10-month achievements and positive signs of the national and global economies during the last two months of the year. Though Vietnam’s GDP rate is rather high compared to other countries in the context of the global economic recession, the recovery remains slow going and the 5.2 percent rate is the lowest compared to the past few years, said Mr Dung. To meet the targets of obtaining the GDP rate of 6.5 percent in 2010 and 7-8 percent in the following years, Mr Dung said the government will continue with appropriate economic stimulus policies with a focus on restructuring the national economy, increasing the quality, efficiency and competitiveness of the economy, stabilising the macro economy, preventing a possible return of high inflation and ensuring social welfare. These policies will be introduced in December 2009. In addition, the government will issue a decree on credit policy to support agriculture and rural development in line with the Party Central Committee’s resolution. Tightening expenses Mr Dung affirmed that after the current NA session, the government will work with provinces and cities to implement a NA resolution on State budget allocations for 2010 as soon as possible. According to the PM, ministries, centrally-run sectors, provinces and cities must tighten their budget management, and prevent tax fraud and evasion, especially taxes on natural resources, real estate,…... [read more]

Nguyen Hoa Binh, Chairman of the Board of Directors of Vietcombank, revealed the information at the bank’s annual shareholders congress in Hanoi on April 23. Vietcombank will also continue divesting from other banks at the request of the State Bank of Vietnam, said Binh. “We will retain our stock at efficient banks such as Military Bank (MB) and Eximbank, and divest from others to make our investment more efficient,” he said. Binh also assured shareholders that the process of mergers and acquisitions (M&A) will definitely take place at Vietcombank, but did not disclose when it will happen. The bank is increasing its charter capital to prepare for the M&A process if time permits, he said. At the convention, shareholders agreed to raise the bank’s charter capital by an additional VND3.476 trillion this year to VND26.65 trillion. This year, Vietcombank plans to expand its total asset value by 11% to VND520.583 trillion, its credit balance by 13% to 309.975 trillion, and its pre-tax profit and provisions by 13.35% to VND10.500 trillion. The bank intends to open 16 more branches in Vietnam and other branches in Myanmar and Laos in 2014.... [read more]

Under the Government’s Decision No 390 on management of plans to curb inflation through capital investment restructuring and budgetary spending and collection in 2008, the MPI will set up 11 working groups in charge of examining the reduction of public investment by centrally-run ministries, provinces, cities and some units. They will begin their examination work from June 22-30. Groups from the Ministry of Transport (MoT), the Ministry of Agriculture and Rural Development (MARD) and the MPI will inspect projects using investment capital from the State budget and Government bond sources. In addition, the MPI will examine investment activities run by economic groups and State-run corporations such as their use of credit loans from banks and State capital sources managed by economic groups and projects relating to their business activities. These groups will also examine banks’ mobilization and use of capital sources, their credit balance, bad debts and loan provisions for enterprise-run projects and submit a detailed report on the real situation to the Government for consideration before making a final decision to reduce or increase capital investment in a number of projects.... [read more]

Green economy presents challenges to Vietnam Many challenges remain However, the National Financial Supervisory Commission (NFSC) says, the aggregate supply and demand remains unsteady. The Index of Industrial Production (IIP) in the past seven months increased by 4.8 percent, about half the 8.8 percent growth recorded in the same period last year. Most criteria of aggregate demand are low. Total retail sales and services only rose by 18.7 percent against last year’s growth rate and the trade deficit in the reviewed period was around US$58 million 0.09 percent of total exports. This is the lowest level so far compared to the average level of US$9 billion recorded in previous years. Imports of livestock feed and other materials for production were down 6.9 percent from a year earlier. The State Budget saw domestic sector collections reaching only 47.4 percent and import-export business contributions just 38.3 percent of the projected levels. Contributions from crude oil earnings by July 15 was just 49.9 percent, much lower than the 60.1 percent level in the same period last year. This shows it is quite difficult for the state to keep its spending and deficit levels below 4.8 percent in 2012 as expected. There are no promising signs of credit growth. Although the State Bank of Vietnam has adopted several measures to lower interest rates to help businesses access bank loans, the credit situation remains in a fix. By July 25, the credit balance were 0.1 percent compared to a year earlier. Temporary drop in inflation…... [read more]

The article highlighted the results the Vietnamese economy achieved in 2014 such as continued macroeconomic stability, controlled inflation, relatively high growth and positive signs in key sectors, recovery of industrial production, notably in the processing and manufacturing industries, improved trade balance leading to high trade surplus. Credit balance was higher than the level recorded in previous years while the monetary and foreign exchange market stayed stable. In addition, obstacles have been gradually removed for businesses, thus helping stabilize people's lives, it noted. However, the article also touched upon challenges facing the Vietnamese economy- low-paced economic restructuring, high public debt and irrational structure and difficulties in the development of the support and key industries. The goals and orientations set by the Vietnam Government coupled with new signs of the world economy will create more opportunities for Vietnam to boost deeper integration into the global economy, paving the way for businesses to bolster export – import for stronger economic growth in the time ahead, it said.... [read more]

The Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) earned profits of an estimated VND8.25 trillion, fulfilling 104% of the plan set by the general meeting of shareholders. In his speech at the event, Nguyen Van Thang, Vietinbank Chairman of Board of Directors, said that as of December 31st, the bank’s total merged assets were estimated at VND947 trillion, up 22% from the previous year; total mobilized capital reached VND862 trillion, up 21% and capital mobilized from inhabitants and economic organizations increased more than 30%. Also in 2016, total outstanding credit balance posted VND720 trillion, a year-on-year rise of 18%, fulfilling the set target. Credit structure witnessed positive transfer with credit for the prioritized fields growing 22.4%, higher than the common credit growth of the whole system. By the end of 2016, the bank continued to effectively manage the quality of assets with a bad debt ratio of less than 1%. Mr. Le Duc Tho, General Director of Vietinbank said that in 2017, the bank set a target of a 15-17% rise in total assets and a 18% increase in outstanding credit. In addition, it strives to control the quality of debts, manage the bad debt ratio, and ensure profit growth in order to achieve or exceed the year’s plan set by the general meeting of shareholders./. BTA... [read more]

Bank for Foreign Trade of Viet Nam (Vietcombank) earned VND8.212 trillion (more than USD360.17 million) in pre-tax profits by the end of 2016, up 23.4% against last year or up 2.7% from the year’s plan. These figures were released in the bank’s recent conference to summarize business activities in 2016 and carry out tasks for 2017. As of December 31st, 2016, capital mobilization reached VND598.867 trillion, up 19.4% from the previous year or fulfilling 104% of the year’s plan. Of this, capital mobilized from businesspersons rose by 15.5%, while that from small and medium-sized enterprises increased by 51.3%. Outstanding credit balance saw positive growth at VND469.800 trillion, a 18.9% rise over a year earlier or 101.6% of the year’s plan. In 2016, Vietcombank pioneered recovering and completely settling debts from Vietnam Asset Management Company (VAMC), with a bad debt ratio of 1.44%, down 0.4% from last year. A leader of the bank said that in 2017, Vietcombank set targets of achieving an 11% rise in total assets, an 18% increase in credit, a 15% increase in capital mobilization, a 12% rise in pre-tax profits (equivalent to VND9.2 trillion), and bad debt ratio of less than 1.5%./. BTA... [read more]

The Hanoitimes - The State Bank of Vietnam (SBV) has devised a credit package worth 50 trillion VND for high-tech and clean agriculture production, which has been assigned to the Bank for Agriculture. Hi-tech agriculture needs proper credit package Mr. Dao Minh Tu, Deputy Governor of the State Bank of Vietnam (SBV) said the SBV has lowered interest rates for agriculture loans over the past several years. Accordingly, the rate dropped from 20 percent per year in 2011, to 12 percent per year in 2013. This year the rate stands at the lowest ever - 6.5 to 8 percent per year, he noted. Since November last year, the Agriculture and Rural Development Bank (Agribank) has been preparing 50 trillion VND to serve individuals, households, collectives and enterprises producing hygienic, safe food, he added. Such individuals and other entities can get loans at interest rates of zero to 1.5 per cent per year. Three years ago, the State Bank of Vietnam assigned Agribank to lend loans on a pilot basis to enterprises applying advanced technology in agriculture. So far 28 enterprises with 31 projects in more than 22 provinces and cities have been selected to join the programme. In addition, in the recent time, some key banks have been interested in funding to the agricultural sector, especially high-tech agriculture. For example, the proportion of agricultural loans accounts for about 9-10% of total loans of Vietcombank. The BIDV's rate of agricultural credit balance of total loans rose from 5.82% in 2010 to…... [read more]