Thursday, April 10, 2008
VietinBank-the new brand name of Incombank from 15 April

The new brand name of Viet Nam Bank for Industry and Trade will be changed from Incombank to VietinBank in all branches nationwide from 15 April, said the Bank at a press conference in Hanoi today, 10 April.

The renaming of the Bank aims to meet the new opportunities and challenges of the renewal process and international economic integration of the nation. Its legal name which had from 1988 will not change.

The Bank logo is a special design of the “VietinBank” letters and a symbol of the rising Earth embracing an ancient coin. The VietinBank brand logo expresses the union of the Heaven and the Earth, Yin and Yang (two complementary principles of Chinese philosophy) as a stable and perfect composition. The overall image of the symbol expresses a brightening dawn with a rising sun and an orbit movement, representing the motions and harmony of the Heaven and the Earth in the universe.

The core brand identity system has been designed based on the values of VietinBank brand name, representing the specific nature and spirit of products and services offered by the Bank.

One of the leading commercial banks in Viet Nam, after 20 years of operation, VietinBank has developed and reached great achievements in all business fields, making considerable contribution to the efficient implementation of monetary policy, enhanced economic growth, and improving competitiveness given Viet Nam’s international economic integration. The Bank operates in 56 out of 64 provinces and cities of the nation with 3 main transaction centers, 138 branches and over 700 transaction and saving offices.

Moreover, with the target of becoming a modern and universal financial group, VietinBank has correspondent banking relationships with more than 800 banks in 80 countries and territories worldwide.

By the end of 2007, total assets of VietinBank were 175 trillion VND, accounting for 15% of total assets of the whole banking system, total mobilized funds increased by 18.4%, and total loans and investments increased by 22.6%. Especially, the non-performing loan ratio remained at a low level of 1.02% (lower than the regulated 3% set by the State Bank of Viet Nam). (CPV)

Reports and forecasts good for…?

Thursday, April 10, 2008
On April 7, when the stock market was on the rise after a long time of sliding, the Hong Kong and Shanghai Banking Corporation (HSBC) released a report with pessimistic forecasts about the world’s stocks, including Viet Nam’s. The report has raised questions about the consistency of HSBC’s reports about Viet Nam’s market.

In its report released in early January 2008 about investment strategies for the first quarter of 2008, HSBC, as an investor, did not put high expectations on Vietnam’s market. High risks from inflation and high stock prices were the two factors that made the group decide to lower its investment ratio in Vietnam from 2% to 0.5%. However, the report still predicted that the VN Index would hit 1,100 points by the end of 2008.

The report was named: “Pan-Asian Equity Strategy: Snakes and Ladders”.

In the first quarter of the year, the group continuously released reports about Vietnam or reports that mentioned Vietnam’s situation. On February 29, 2008, HSBC, for the first time, added Vietnam to the list of recommended Asian investment addresses (referred to as ‘OverWeight’).

The report said that Vietnam’s stock market was in the final stage of its period of decline, advising investors to buy stocks at that moment, especially technologies stocks.

The report was named: “Al-Asia Insight”.

In “Vietnam Monitor” (the latest volume was released on April 2, 2008), the group reiterated its prediction that the VN Index would hit the 1,100 point threshold.

As such, through the end of the first quarter of 2008, HSBC’s viewpoint about Vietnam’s stock market was always consistent, though the market frequently fluctuated during that time.

Abrupt about-face

However, in its Q2 report released on April 7, HSBC forecast that the VN Index would only hit 600 points instead of 1,100 points by the end of 2008, and 750 points instead of 1,300 in 2009.

There was no big change in the team that made the series of reports. The team of the February 29 report was Garry Evans, Steven Sun, Akane Nishizaki, Jacqueline Tse, Vivek Misra, and Leo Li. All except Vivek Misra contributed to the report released April 7.

Reports good for…?

In early January, when the VN Index hovered around 900 points, HSBC gave an optimistic prediction that the VN Index would be 1,100 points by the end of 2008. After that, the index began sliding continuously sliding, under 870 points, 850 and then 800.

At the end of February, HSBC advised investors to buy stocks, but the market dropped even further, bottoming out below the 500-point threshold, at 496.64 points, on March 25.

Its latest report, released on April 7, HSBC advised investors to reduce share purchases. However, investors did not do as advised. Foreign investors still purchased big volumes. On April 9, foreign investors purchased nearly 1/3 of the total trading volume at the HCM City Stock Exchange. (VNN)Vietnam Business Finance - http://www.vnbusinessfinance.com
Thursday, April 10, 2008
Reports and forecasts good for…?

On April 7, when the stock market was on the rise after a long time of sliding, the Hong Kong and Shanghai Banking Corporation (HSBC) released a report with pessimistic forecasts about the world’s stocks, including Viet Nam’s. The report has raised questions about the consistency of HSBC’s reports about Viet Nam’s market.

In its report released in early January 2008 about investment strategies for the first quarter of 2008, HSBC, as an investor, did not put high expectations on Vietnam’s market. High risks from inflation and high stock prices were the two factors that made the group decide to lower its investment ratio in Vietnam from 2% to 0.5%. However, the report still predicted that the VN Index would hit 1,100 points by the end of 2008.

The report was named: “Pan-Asian Equity Strategy: Snakes and Ladders”.

In the first quarter of the year, the group continuously released reports about Vietnam or reports that mentioned Vietnam’s situation. On February 29, 2008, HSBC, for the first time, added Vietnam to the list of recommended Asian investment addresses (referred to as ‘OverWeight’).

The report said that Vietnam’s stock market was in the final stage of its period of decline, advising investors to buy stocks at that moment, especially technologies stocks.

The report was named: “Al-Asia Insight”.

In “Vietnam Monitor” (the latest volume was released on April 2, 2008), the group reiterated its prediction that the VN Index would hit the 1,100 point threshold.

As such, through the end of the first quarter of 2008, HSBC’s viewpoint about Vietnam’s stock market was always consistent, though the market frequently fluctuated during that time.

Abrupt about-face

However, in its Q2 report released on April 7, HSBC forecast that the VN Index would only hit 600 points instead of 1,100 points by the end of 2008, and 750 points instead of 1,300 in 2009.

There was no big change in the team that made the series of reports. The team of the February 29 report was Garry Evans, Steven Sun, Akane Nishizaki, Jacqueline Tse, Vivek Misra, and Leo Li. All except Vivek Misra contributed to the report released April 7.

Reports good for…?

In early January, when the VN Index hovered around 900 points, HSBC gave an optimistic prediction that the VN Index would be 1,100 points by the end of 2008. After that, the index began sliding continuously sliding, under 870 points, 850 and then 800.

At the end of February, HSBC advised investors to buy stocks, but the market dropped even further, bottoming out below the 500-point threshold, at 496.64 points, on March 25.

Its latest report, released on April 7, HSBC advised investors to reduce share purchases. However, investors did not do as advised. Foreign investors still purchased big volumes. On April 9, foreign investors purchased nearly 1/3 of the total trading volume at the HCM City Stock Exchange. (VNN)

Viet Nam banks see profit growth slowing in 2008

Thursday, April 10, 2008
Two of Viet Nam's top three lenders by assets expect their profit growth to slow sharply in 2008 as the government takes measures to battle double-digit inflation.

State-run BIDV, Viet Nam's second-largest lender by assets, said on Thursday it planned to curb lending and expects annual gross profit growth to slow to 49% after surging 82% last year.

Total assets of the Hanoi-based BIDV, or the Bank for Investment and Development of Viet Nam, reached 211.6 trillion dong ($13.3 billion) at the end of March, 3.5% up from the end of last year, Chairman Tran Bac Ha told a news conference.

Ha said the bank is targeting a 23% rise in total assets this year from 204.51 trillion dong at the end of 2007.

Earlier on Thursday, Vietinbank's Chairman Pham Huy Hung told Reuters that the bank, Viet Nam's third-largest lender by assets, expects its profit growth to slow to between 50% and 60% this year after jumping nearly 84% last year.

The State Bank of Viet Nam, or the central bank, has told banks to cap lending at 30% this year and it tightened money supply in the first quarter as inflation hit 19.3% in March from a year earlier, the highest in more than 12 years.

BIDV's Ha said that though annual credit growth has been set, lending to export companies which deal with seasonal agricultural products can rise beyond the central bank's cap during a season.

"We have therefore proposed the government and the central bank to adjust the credit growth up to 35%," he said.

IPO CANDIDATES

Ha said the Finance Ministry was working on a timetable for the initial public offerings of major state-owned firms this year, but that BIDV had no plans to change the timing of its IPO.

"We wish and have reaffirmed to the government that we want to do it within this year," Ha said.

BIDV, one of five state-run commercial banks which the government initially ordered to sell shares to the public in 2007 and 2008, has hired U.S. investment bank Morgan Stanley to advise on the IPO.

Vietinbank has said it planned to come out its initial public offering this year, pending government approval. (Reuters)

Thursday, April 10, 2008

Foreigners Net Buyers Of VND227.8 Billion Of Shares

Foreign investors were net buyers of VND227.8 billion ($ 13.3 million) of Vietnamese stocks Thursday, out of a total VND447 billion traded, the Ho Chi Minh Securities Trading Center said.

Volume was 9.05 million shares, with foreigners accounting for 40.6%, said the stock market operator. (Dow Jones)

BIDV 2007 Pretax Profit VND2.1 Trillion Vs VND650 Billion

The state-owned Bank for Investment and Development of Viet Nam (BIDV) made a pretax profit of VND2.1 trillion last year, more than double 2006's VND650 billion, a bank official said Thursday.

At the end of 2007, the unlisted Hanoi-based bank had total assets of VND201.38 trillion, up from VND158.16 trillion, said BIDV Deputy General Director Phan Thi Chinh.

Its outstanding loans rose 34% on year to VND131.98 trillion, she said, adding that bad debts accounted for 3.98% of its total debts, down from 9.6% in 2006.

BIDV's return on assets - as per international financial reporting standards - was 0.89% last year, compared with 0.4% in 2006, while its return on equity was 25.01%, up from 14.23%.

In the first quarter of this year, the bank made a pretax profit of VND754 billion - or 25% of its target for this year.

BDIV General Director Tran Bac Ha said the bank is aiming for its outstanding loans to rise 25.4% on year in 2008.

Ha added that BIDV has asked the government to lower its corporate income tax rate to 25% next year onwards from the current 28%.

He said that BIDV plans to hold an initial public offering in 2008, and the Ministry of Finance will set the date. (Dow Jones)

SHB and LILAMA IC ink capital assistance contract

Thursday, April 10, 2008
Sai Gon-Hanoi Commercial Joint Stock Bank (SHB) branches in Danang and Ho Chi Minh City on April 9 inked a capital assistance contract with LILAMA IC in Danang city.
SHB in Danang will act as a capital supplier for LILAMA IC’s projects in Ho Chi Minh City.
The two branches of SHB will also create favourable conditions for LILAMA IC’s staff to apply for bank loans for procurement of essential facilities including cars, house construction as well as other SHB services.