Techcombank pioneers automatic depositing

Wednesday, May 21, 2008
Automatic Teller Machines (ATM) that enable customers to securely deposit money into their account and have it automatically credited have been successfully launched in Viet Nam.

Viet Nam Technological and Commercial Joint Stock Bank (Techcombank) have collaborated with Germany-based Wincor Nixdorf group to pioneer the new service for the country.

Techcombank Deputy General Director Le Xuan Vu said the launch was part of the bank’s effort to provide its customers with convenient, time-saving banking services.

Wincor Nixdorf Asia Pacific Marketing Director Karsten Kemma echoed the banks statement, saying the project was an important move for the Vietnamese banking sector.

The machines can currently accept 50,000 VND and 100,000 VND notes. (VNA)

Korea Times: Viet Nam Fund Investors Sustain Big Loss

Wednesday, May 21, 2008
Investors in Viet Nam equity funds are having sleepless nights as the Vietnamese bourse has dropped around 60% from its peak last year. Analysts advise investors to keep in mind that investment in emerging markets such as Viet Nam entails risk.

Funds investing in the Vietnamese bourse have been popular here from around 2006, following the launch of such funds by Korea Investment Trust Management Corporation and others. Seoul funds investing in the Vietnamese bourse total over 1.8 trillion won, which is equivalent to about 10% of the total market cap there.

The Vietnamese stock market, however, dropped nearly 60% from its peak last year. This contrasts with other global equity funds, which are slowly recovering from the U.S. subprime mortgage woes. Many of the Vietnamese funds have recorded over a 30% loss from the beginning of this year.

The concern is especially augmented following the release of a report by Daiwa Securities. The report points out that Viet Nam's macroeconomic fundamentals have deteriorated dramatically over the past half-year. ``With inflation at 21.4% year-on-year for April, and the 12-month rolling sum of the trade deficit soaring to $21 billion, Viet Nam needs a bout of severe austerity to restore stability, in our view,'' it said.

``Given the absence of palatable policy choices, we think Vietnam will be obliged to turn to the International Monetary Fund (IMF) for assistance within the next few months. Until it does so, we suggest investors be zero-weighted in Viet Nam.''

The Vietnamese government pulled up the interest rate to subdue inflation, which caused tight liquidity on the stock market.

However, there seems to be few options for investors.

Most of the Vietnamese funds here are closed-end funds, from which investors cannot withdraw money. Such closed-end funds are often listed on the exchange, but few people are willing to buy them.

Park Hyun-chul, a fund analyst at Meritz Securities, said the outlook isn't good for this year. ``On top of the inflation, other economic indices are bad. The government lowered the GDP growth target by 2 percentage points. And the trade deficit concern is growing.''

He said the Vietnamese government isn't as competent as other governments in coping with such economic problems. ``It's like the Korean bourse in the 1960s and 70s. It has huge growth potential, but the capital market falls behind economic growth.''

Still, analysts advise that investors should wait and see instead of withdrawing money. ``The fund was sold closed-end as they determined that the long term growth potential is good despite the risk,'' Park said.

Goldman Sachs estimated the real GDP to grow 7.3% this year, which is solid compared with other emerging countries.

Park said turmoil like this can happen in any emerging market. The problem is that investors have little information about markets like Viet Nam. ``There is cognitive dissonance among fund investors. They only take the attractive points, and ignore risky factors. Emerging markets entail risk. It is even more so with frontier market funds.'' (KoreaTimes.co.kr)

Building materials maker announces Q1 profits

Wednesday, May 21, 2008
Da Nang Construction Building Materials and Cement Co (DXV) earned VND216.3 billion (US$13.5 million) revenue in the first quarter of the year, a reduction of 4.74 per cent against the same period last year.

Building materials sold smoothly due to rising demand in the building industry.

Telecom explains why shares are bottoming out

Wednesday, May 21, 2008
The Ha Noi Securities Trading Centre has received a full account from Telecommunication Technical Service (TST) explaining the downward trend of its shares in five consecutive trading sessions from April 29 to May 5, 2008.

The shares continued hitting floor prices attributed to the common downward trend of the stock market.

Investors can visit the company web site: www.tst.com.vn to get information about its business activities.

Foreigners Net Buyers Of VND57.7 Billion Of Shares

Wednesday, May 21, 2008
Foreign investors were net buyers of VND57.7 billion ($3.6 million) of Vietnamese stocks Wednesday, out of a total VND112.7 billion traded, the Ho Chi Minh Securities Trading Center said.

Volume traded totaled 2.6 million shares, with foreigners accounting for 62% of the total, according to the stock market operator. (Dow Jones)

Finance minister: VN won’t sacrifice stock market

Wednesday, May 21, 2008
Shares are selling at any price, and the VN Index dropped dramatically to below 450 points, the deepest low since November 2006. Meanwhile, Minister of Finance Vu Van Ninh still affirms that Viet Nam will not sacrifice the stock market to restrain inflation.

The bad performance of the stock market makes people worried that it will collapse in a day or two. What are your thoughts on the market?

Share prices are decreasing, but if you consider the P/E index, you can see the investment opportunities: I mean the prices will recover. Many enterprises have revealed information about their business results, which shows that they still could get good profit despite the difficulties. In general, the factors show that the market remains full of potential.

The problem lies in the fact that investors, especially small individual investors, have become easily puzzled, trying to sell shares in big quantities, which has made the market worse.

I can say that our stock market is full of potential, especially long-term investment opportunities. Foreign investors also think this way, which explains why they still keep buying.

How much longer can domestic investors, the small individual investors as you said, stand the market’s falls?

It depends on investors’ capabilities. Investors who make investments with borrowed capital will meet with big difficulties while investors who make investments with their own money will not bear the pressure of paying debts.

Some analyses say that most of the capital injected in securities comes from loans.

It is really difficult to talk about sources of capital as we don’t have reliable statistics about that.

The government has been taking a series of drastic measures to rescue the stock market. Why has the market not shown any signs of recovery?

As I said above, the market is being influenced by many factors. In fact, the measures can only have certain impacts on the market, while they can’t rule the market.

We have injected money to rescue the stock market, but it seems that that measure has not brought the desired effects. Surely the state cannot continuously pour money into the market.

The state’s intervention in the stock market aims to calm investors down. Don’t think that the state needs to spend money to buy all shares to rescue the market.

Regarding the suggestion to widen the daily trading bands, I don’t think this is the thing we need to do now. If we do that, the market will drop more sharply.

How do we harmonise the tasks of restraining inflation and rescuing the stock market? Which task is the top priority? Will we have to sacrifice one of the two to gain the other?

Fighting inflation is the top priority task nowadays, as inflation has impacts on the national economy as a whole. However, the stock market plays a very important role in the national economy. Viet Nam will not sacrifice the stock market to restrain inflation.

Of course, when we take some measures, the measures will affect the stock market. But we aren’t sacrificing the stock market as this would bring about bad consequences.

What additional measures will the government take to rescue the market?

The most important thing we need to do is to make investors calm down. If investors are not cooperative, no measure can help. (VNN)

Capital jumping from stock market to banks

Wednesday, May 21, 2008
With the expected interest rates of 14-15% per annum, making bank deposits proves to bring satisfactory profit with no risks. That explains why money is leaving the falling stock market for banks.

Thanh went to the securities company on Ly Thai To street in Hanoi early this morning to draw VND100mil out of his securities transaction account. Thanh said that he would make a demand deposit at a bank, which, after the removal of the ceiling interest rate scheme, now offers a satisfactory interest rate.

When asked why he would not make a fixed-term deposit to enjoy a higher interest rate, Thanh said that he would withdraw the money to invest in other channels when the stock market showed signs of recovery.

VND deposit interest rates are now 14-15% per annum for 6-12-month term deposits. The demand deposit interest rate is also very high, at 9% per annum, while some banks even offer 11%. Some banks are trying to please their clients by offering very short-term deposits. VP Bank, for example, pays 11.04% per annum for 1-week term and 11.52% for 2-week term deposits.

While banks are delighted with the news about the removal of the ceiling interest rate scheme, the stock market has little to cheer about. The VN Index decreased in the week’s first two trading sessions. It seems that nothing can help stop the slide of the stock market.

The removal of the ceiling interest rate of 12% has been described by many experts as a ‘life preserver’ for banks, but a shock to the bourse.

Dr Ton Tich Quy, Deputy Director of the Securities Research and Training Centre under the State Securities Commission, said that investors will draw back capital from the stock market and make deposits at banks, which will make the stock market fall further and longer.

In the medium term, Quy said, enterprises will meet difficulties in mobilising capital. A lot of enterprises will have to cancel their plans to issue shares. The stock market is not only the playing field of 300,000 investors: it always impacts the OTC market. When the official market fell, the OTC market froze, causing the IPO plans of many enterprises to fail.

Ha Huy Thang, Chief Accountant of Petrolimex, said that his company has cancelled its plan to issue shares to existing shareholders due to the falling stock market.

Thang said that if the company needs capital, it can only borrow money from banks or issue corporate bonds.

However, as the lending interest rates are now very high, businesses have to think carefully before accessing bank loans, and they seem to be borrowing money to implement short-term projects only. Meanwhile, in order to issue bonds, businesses have to have short-term and feasible plans.

However, the removal of the ceiling interest rate scheme is being applauded by securities investors.

An investor at FPTS trading floor, said that the macroeconomic stability, which originates from banking stability, will support the stock market in the long term. “As the lending interest rate is capped at 18%, businesses will not have to borrow money at over 20% as previously. The prices of commodities will stop escalating, and pressure on inflation will be eased,” the investor said.

Sharing the same view, Phuong Thao, an analyst with Sacombank, said that the stock market will be influenced in the short term as investors may draw back money. However, in the long term, only the restraint of inflation and macroeconomic stability can help the stock market develop well. Thao said that the market will not rise again rapidly and sharply, but slowly and steadily.

General Director of SJC Securities Company Huynh Anh Tuan thinks that the stock market may continue sliding in the immediate time, but he said the most important thing now is the liquidity of the market.

“The stock market now relies on the demand of foreign investors,” Tuan said.

The VND deposit interest rate increases, according to experts, will help ease the pressure on banks to sell mortgaged shares. Banks now do not have to sell shares as the problem of low liquidity has been resolved.

However, Tuan said that banks will need a week or two at least to settle their capital problems. (VNE)

High interest rates may make banks ‘unprofitable’

Wednesday, May 21, 2008
Bank interest rates have witnessed a new record high of 16.92% per annum. With the interest rate, banks will struggle to make profit as the maximum lending interest rate is capped at 18% per annum.

Barrier removed, banks raise interest rates at will

On May 20, VIB Bank and Military Bank announced new interest rates with the highest rate of 15%. Meanwhile, SeABank, which always leads in the interest rate race, has offered the interest rate as high as 15.6% per annum.

As such, the peaks of interest rates have been set up and then overturned continuously in the last two years.

The first record high was 14% per annum, and then 15% per annum, which is now being offered by many joint stock banks. Meanwhile, state owned banks now mostly apply the interest rate of 13.8% per annum. However, the state owned banks, sooner or later, will have to raise interest rates to 14-15% per annum; otherwise, they will not be able to mobilise capital as depositors will make deposits at joint stock banks.

However, it was quite a surprise that a branch of a state owned bank, Agribank’s Dong Anh branch, not a joint stock bank, countered with a new record interest rate, 16.92% per annum for 18-month term deposits, very close to the ceiling lending interest rate of 18% per annum.

Meanwhile, on May 20, the State Bank of Vietnam released a lot of documents on strengthening inspections of banks’ operations and fining banks that violate the current interest rate regulations. The Governor of the State Bank of Vietnam has requested directors of central bank branches to supervise the capital mobilisation of local banks, threatening to punish banks that offer abnormal interest rates (deposit interest rates nearly equal to lending interest rates).

Interest rates high, banks cannot make profit

In order to compete with other banks in mobilising capital, commercial banks have been rushing to raise deposit interest rates. However, experts have warned that banks will not make profit if they keep overly high rates.

According to Tran Xuan Huy, General Director of Sacombank, with the average deposit interest rate now is 14% per annum (1.166%/month) for 6-12 month term deposits, and maximum lending rate of 18%, banks will get the margin of 4% per annum (0.33%/month). However, banks will not ‘swallow’ all that 4%. They have other expenses as well (business premises, staff salaries).

Sacombank’s maximum lending interest rate will be 18%, but the bank will offer the ‘soft rate’ of 16-17% per annum for loyal clients.

The General Director of a small bank said that his bank is now offering 15.3% on 6-month term deposits, which means he can get the margin interest rate of 2.7% per annum, which he will use to pay for expenses, including premises and staff salaries, which are all on the rise.

Supposing that a bank mobilised VND2bil at 14% per annum (1.166%/month), it would have to pay VND23.32mil/month of interest to depositors, and make compulsory reserves of VND220mil to the state bank, which means that the bank would have VND1.78bil for re-lending at 18% per annum at maximum (1.5%/month). As such, the bank would get the net profit of VND26.7mil/month on VND2bil worth of capital after tax and paying salaries. However, it is possible that the bank would incur losses as it might have to spend money on other expenses. Moreover, it might not re-lend the entire VND2bil.

Dodging laws?

Experts have warned that commercial banks may dodge the laws to lend at interest rates higher than 18% per annum.

In fact, before the ceiling interest rate scheme was removed, banks lent at 20% on average, and sometimes 24% per annum. Now, while banks raise the deposit interest rates by 4-6% per annum, they have to lower the lending interest rates by 4-6%. This will put big difficulties on banks, prompting them to collect fees and surcharges in order to ensure turnover and normal operations. (VnMedia, VietNamNet, TBKTVN)

May 21, VN-Index continues drop, market trade rises

Wednesday, May 21, 2008
Today the Ho Chi Minh City Stock Exchange (HOSE) continued falling, marking the 13th consecutively decreasing session. The VN Index dropped another 7.49 points or 1.66% to close at 441.75 pts with the total matching order trade of over 5,221,800 shares and fund certificates worth 239 billion dong. After 13 declines, the VN Index lost 80.61 points in total.

Among 151 shares and three fund certificates being listed on the southern bourse, the stock market saw two shares increasing, six others stood still, six with no trades and 140 shares decreasing.
Two gainers were SSC and NHC by adding 500 dong to 29,400 dong and 27,900 dong per share.

Six shares with no trades were BTC, COM, PAC, SJ1, VFC and VIS.
DPM stood at the first place in trading volume with 429,010 shares being transferred and followed by SSI with 222,400, ANV with 142,720, DPR with 141,340, HPG with 103,620, VHG with 103,390 and others with below 100,000 shares like FPT, ITA, PVD and HRC.

Foreign investors bought 69 share codes and two fund certificates with the total volume of 3,193,020 units. Of which, BBC reached the biggest trading volume with 851,940 shares, followed by PPC with 330,930, DPM with 312,670, SSI with 220,860, PVD with 154,210 and ANV with 138,140 shares being traded.

Like previous sessions, the Hanoi Securities Trading Center (HaSTC) today May 21 still kept decreasing impetus on the stock market by falling another 2.46 points or 1.82% to end at 132.75 pts with the total market trade of 933,940 shares worth nearly 32 billion dong.

Amongst 137 listed shares on the northern bourse, the stock market recorded eight shares increasing while 89 others decreasing, six shares stood still and 34 shares with no trades.
Eight shares increasing were NVC, S99 and VC3 bounced 800 dong, LTC jumped 500 dong, CTB leaped 400, BTH and CJC up 200 and DHI added 100 dong per share.

Six shares stood still including BCC, DAC, DST, KBC, PPG and XMC.
MIC was the biggest loser when losing 2,800 dong and followed by ACB lost 1,700, VSP—1,600, BVS—1,500, RCL and SCJ—1,400 and NTP and VDL slipped 1,100 dong per share.

ACB reached the biggest trading volume with 196,800 shares and followed by TBC with 104,800 and PVI with 67,600 shares.

VietinBank to sign strategic agreement with VEC

Wednesday, May 21, 2008
The Bank for Trade and Industry of Viet Nam (VietinBank), formerly Industrial and Commercial Bank of Viet Nam (Incombank), announced that it is to sign a strategic cooperation agreement with the Viet Nam Express Highway Development and Investment Co (VEC) on May 20 in Hanoi.

Under it, VietinBank and VEC will jointly carry out development plans to exploit the two signatories' potentials effectively. First, the two signatories would co-build investment projects to exploit services along the two sides of highways to submit to the government.

According to VietinBank's representative, the bank will create the best conditions for VEC to approach and use its banking services and products

Mai Linh Group targets 3.68tr dong revenue in 2008

Wednesday, May 21, 2008
Mai Linh Group (MLG)'s shareholders' meeting held on May 19 passed this year's business plan with 3.68 trillion dong in revenue, of which the Mai Linh Group Joint Stock Co's revenue could be 1.118 trillion dong and 176 billion dong in profit within this year.

This year, the company also plans to list shares in Ho Chi Minh Stock Exchange (STC) in August and increase its fleet to 8,300 cabs and coaches.

Last year, the whole Mai Linh Group made a revenue of 2.403 trillion dong, rising 100.08% against 2006. Of which, Mai Linh Group Joint Stock Co contributed 699 billion dong, increasing 85.22% from 2006.

So far, Mai Linh Group has launched its network to 52 provinces nationwide and plans to expand its service distribution network to Cambodia, Laos, Russia and the US in the upcoming time.

Southern seed firm posts 7.8b dong profit in Q1

Wednesday, May 21, 2008
Ho Chi Minh Stock Exchange listed firm, Southern Seed Joint Stock Co (coded SSC) recently reported the business result during the first quarter of this year with 41.28 billion dong in net revenue from sales and services provision, rising 19.4% against 2007 and 7.8 billion dong from after tax profit, up 3.57% on 2007.

The company specialises in researching and producing seeds, seed export and import sectors and agriculture materials.

This year, the firm targets 177.163 billion dong in revenue and 25.518 billion dong from after tax profit. SSC also plans to invest 13.485 billion dong and US$5 million in projects within this year.

Closing the trading session on May 19, SSC-coded shares jumped 500 dong or 1.79% to 28,400 dong per share with 32,370 shares being transferred.

Vinh Son-Song Hinh hydropower firm posts 102b dong profit in Q1

Wednesday, May 21, 2008
Vinh Son-Song Hinh Hydropower Joint Stock Co (coded VSH) recently announced that in the first quarter of this year it gained 144.942 billion dong in net revenue from sales and service provision, up 56.55% yoy and 102.072 billion dong from after tax profit, rising 71.78% year-on-year.

Last year, the company made a revenue of 370.16 billion dong and 254.38 billion dong from after tax profit.

With a capacity of 66MW and a yearly output of 230 million kWh, Vinh Son hydropower plant is the first large scaled hydropower plant in the central and highland areas of Viet Nam.

Seminar urges firms to list shares overseas

Wednesday, May 21, 2008
More enterprises should try to list shares overseas as a more effective channel for raising capital, says Nguyen Ngoc Canh, head of International co-operation under the State Securities Commission (SSC).

Speaking at a conference yesterday in Ha Noi entitled A Step into Globilisation Through IPOs and Listing, Canh admitted, however, that Vietnamese firms are facing many difficulties in listing on foreign stock exchanges due to their inexperience on the domestic stock market and a lack of information about regional stock exchanges.

This was why many domestic firms with statd plans to list offshore, including Vinamilk and Saigon Securities Inc., have not yet carried out those plans, he said.

An enterprise seeking to list offshore normally would also expect to spend eight months to a year completing a typical listing process, in addition to pre-listing preparations.

"Nevertheless, we are confident that Vietnamese companies will explore and seek various means to tap into international capital for funding as well as a platform to expand and integrate into the international business community," said Alvin Chew, executive director of the Singapore-based financial advisory firm ICH.

Due to political, cultural and business affinity, Vietnamese enterprises have tended to list shares on regional stock exchanges, such as in Singapore. Foreign enterprises currently represented about 38 per cent of listed shares on the Singapore Stock Exchange, with a market capitalisation of US$165.24 billion.

"This number suggests that the Singapore Exchange is a very good destination for domestic firms seeking to list abroad," Canh said. "The firms themselves must follow listing procedures strictly in order to make the listing process as quick as possible." (VNS)

Baker Kinh Do to loosen its waistband

Wednesday, May 21, 2008
At its annual meeting last Friday, the HCM City Stock Exchange-listed Kinh Do Corp (KDC) aprroved an investment portfolio for this year totalling VND1.488 trillion (US$93 million).

Of that, VND160 billion will be invested in Kinh Do Binh Duong, one of its member companies. Another VND277 billion will be put into other food companies, according to chairman Tran Kim Thanh.

Meanwhile, real estate investment will account for VND1.051 trillion. It includes capital contributions to three apartment and office projects in HCM City.

This year the bakery North Kinh Do and ice cream maker Kido will be merged into KDC.

KDC will target a turnover of VN1.6 trillion and a gross profit of VND270 billion, compared to last year’s figures of VND1.238 trillion and VND222 billlion, respectively.

Of the turnover, exports to more than 30 markets will be almost $10 million, up by $4 million over last year.

Thanh expects to increase the number of distributors from 130 in 2007 to 180 nationwide. Company products will be available at 75,000 retail shops, 25,000 more than last year.

Meanwhile, North Kinh Do (NKD), listed on the Ha Noi Securities Trading Centre, plans to put VND50 billion ($310,000) into business expansion this year.

Shareholders at its annual meeting held in HCM City last Saturday assented to let the money go to a new production line and a storehouse for finished product.

Five new bakery shops in Hanoi will open this year to bring its network in the capital to 14. North Kinh Do will also contribute additional capital to the food and beverage company Tribeco-Mien Bac to hold 15 per cent of the company.

This year KDC is eyeing a turnover of VND700 billion, a year-on-year increase of 25 per cent. Of that, the company should rake in VND79 billion in net profits, 10 per cent higher than last year.

Shareholders of KDC and NKD may receive the same dividends as last year: 18 per cent in cash and another 22 per cent in equity.(VNS)

Banks shift business orientation

Wednesday, May 21, 2008
Difficulties caused by State Bank of Viet Nam's lending tightening up policies affecting to the banking sector's operation are getting more serious. Due to this, banks market share in two specifications of lending and capital mobilisation subject to the wholesale business has been narrowed gradually. In order to ensure revenue and profit targets approved by shareholders meetings, banks are speeding up boosting retail banking services.

Asia Commercial Joint Stock Bank (ACB) by the year early announced that it targeted the service growth of over 35% in 2008. Through gold trading floor, the bank earns a trading fee of one billion dong a day excluding interest rate of loans provided to gold traders. ACB reported that it would boost the retail services along with wholesale in the context that the market appears many obstacles for lending and capital mobilisation. Thus, ACB spent 1.1 trillion dong to invest and develop retail services in this year with the estimated revenue of 465 billion dong from service provision.

To gain the above target, ACB plans to expand the network to 204 branches and transaction offices by opening additional 93. During the past two-years, ACB's revenue from service provision always contributed 30% of total figure of the group. Currently, the bank has launched many retail finance services namely Home Banking, internet Banking, Phone Banking and others. ACB also pays much attention to individual customers after selling additional stake to the strategic partner of Standard Chartered (bringing the foreign bank's size in the local lender to 15%) with the target to become the leading retail bank in Vietnam in the future.

Tran Xuan Huy, Sacombank's general director revealed, his bank will increase the revenue from service provision by 15-20% against 10-15% growth of 2007. Up to the end of April 2008, Sacombank posted 58 trillion dong in total deposits, only rising by 20% from the year early and 40 trillion dong in outstanding loans, up 17%. Not only Sacombank but also most banks have to witness the narrowed market share of lending according to SBV�s lending limiting regulation.

On the other hand, domestic banks� market share in fields of lending and capital mobilisation is predicted to face a fierce competition in the near future with forthcoming 100% foreign owned banks, which force local banks to enhance retail banking services. According to Huy, Sacombank's strategy is to reach the allowable lending growth of 30%, growth of revenue from foreign currency business at 30% and that of retail banking services at 30%. Moreover, the local bank is going to obtain license to set up a card joint venture with ANZ.

Similarly, revenue from service provision also accounts for 15% to total revenue of Eximbank, reported the deputy general director Dao Hong Chau. Within this year, the bank is determined to focus on business of gold, foreign currency and import export payment that is targeted to grow by 40% and higher year-on-year.

EAB�s general director Tran Phuong Binh stated that international payment is always to be the key service to develop the corporate customers. EAB this year targets to reach the value of import export payment of US$2.4 billion, up 20% yoy and payment of overseas remittance at US$1.2 billion, and pre-tax profit of eight trillion dong, growing 76% against 2007. (DTCK)

Sacombank hikes deposit rates

Wednesday, May 21, 2008
From May 19, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) increased the interest rate of dong deposit with a term of over six months to 14% per annum and of the US dollar deposit with a term of over five months to 7% a year.

Accordingly, the monthly for dong deposit with more than six months is 1.167% a month and less than six months is 13.5-13.8% meaning 1.125-1.150% a month. As for depositors of 50 million dong and higher, they will receive a plus interest rate of 0.005-0.025% for each term.

US dollar deposit rate with a term of over six months is hiked to 7% pa and of below six months is 6.5-6.9% per annum. For deposits of more than US$5,000, the bonus interest rate is 0.05-0.25%.

On May 16, Sacombank made the debut of Sacombank Financial Group including five member companies and six strategic partners with a total chartered capital of over 5.2 trillion dong, total asset of 79.915 trillion dong and a workforce of 6,500 employees up to the end of Q1.

ACB launches new saving products

Wednesday, May 21, 2008
Asia Commercial Joint Stock Bank (ACB) recently has launched two products namely Overnight Saving and Demand Deposit in the dong with progressive interest rate based on day-end balance.

With Overnight Saving, depositors with the account balance of 500 million dong and higher will receive an interest rate of 10.80% per annum. The interest rate will be calculated every 24 hours as from the depositing time, which will be added to principal.

Regarding the second product, with the day-end balance of below five million dong, depositors will receive an interest rate of 3% pa, over five million dong at 4.8-7.8% pa.

LienViet Bank to open two more branches

Wednesday, May 21, 2008
The State Bank of Viet Nam (SBV)'s governor recently approved the Lien Viet Commercial Joint Stock Bank (LienViet Bank) to open two branches in Hanoi and HCM City.

In particular, LienViet Bank's HCM City branch is located at No 2A Nguyen Thi Minh Khai, HCM City's Dist 1 and Hanoi branch at No 50 Kim Lien S trillion in Hanoi's Dong Da Dist.

Recently, LienViet Bank signed comprehensive cooperation agreements with two big domestic partners namely Dong Thap Petroleum Trade Co (Petimex) and the Bank for Agriculture and Rural Development (Agribank)'s Insurance Joint Stock Co (AIBC).

Vinpearl to issue 1tr dong corporate bonds

Wednesday, May 21, 2008
Vinpearl Trade and Tourism Joint Stock Co (coded VPL) recently announced a plan issuing corporate bonds.

Accordingly, the firm would sell one trillion dong of corporate bonds for the first phase of 2008 to domestic and foreign organisations to mobilise capital for the company's projects like the project of building villa area and Dam Gia golf course in Hon Tre Island in Khanh Hoa province's Nha Trang City and other realty projects in Hanoi and HCM City.

These bonds have terms of three-years and five years. Of which, the company would issue 500 billion dong of three-year corporate bonds with the coupon rate of 15% per annum (issued on May 6, 2008 and matured on May 6, 2011) and 500 billion dong of five-year corporate bonds with the coupon rate of 16% per annum (issued on May 6, 2008 and matured on May 6, 2013).

The interest will be paid yearly on May 6.

Reportedly, Vinpearl JSC reached 479.7 billion dong in total revenue from business and finance activities and 82 billion dong from after tax profit last year

Techcombank signs e-ticket deal with Pacific Airlines

Wednesday, May 21, 2008
Techcombank yesterday reported that it successfully launched the airfare payment service for Pacific Airlines via internet Banking (F@st I-Bank) and SMS (F@stMobiPay).

Pacific Airlines will base on successful payment information of customers and send air tickets through their email, fax or letter as registering. In case customers do not receive tickets, the carrier will refund the airfare to customers' account.

Hoa Phat Group to list 8.26m extra shares

Wednesday, May 21, 2008
The Ho Chi Minh Stock Exchange (HOSE) yesterday May 19 approved Hoa Phat Group Joint Stock Co (coded HPG) to list 8.26 million additional shares at 10,000 dong par worth 82.6 billion dong in total on the southern bourse.

In the first quarter of this year, HPG gained 2.307 trillion dong in revenue and 451 billion dong from after tax profit and EPS was 3,416 dong per share.

Ending the trading session on May 19, HPG-coded shares were traded at 57,000 dong per share, falling 1,000 dong or 1,72% with 207,630 shares being traded

Western Bank to pay 11% dividend to shareholders

Wednesday, May 21, 2008
Western Commercial Joint Stock Bank or Western Bank recently reported that last year it earned over 30 billion dong in net profit from business, growing by 202% year-on-year.

The profit has been allocated as follows: 5% for the supplementary fund of chartered capital, 10% for risk prevention fund and the remainder (22 billion dong) will be paid for a dividend of 11% to shareholders.

Techcombank gets go-ahead to issue bonds

Wednesday, May 21, 2008
State Bank of Viet Nam's governor on May 15 issued the Decision No 1093/QD-NHNN approving Viet Nam Technological and Commercial Joint Stock Bank (Techcombank) to issue bonds with a total value of five trillion dong with the coupon rate matched with the market level in 2008.

Techcombank must comply with SBV's current regulations and legal documents relating to bond issue to foreign institutions and individuals.

Additionally, the decision also rules that Techcombank's bond issue in 2008 must be under the regulation on credit institutions' valuable papers for domestic capital mobilisation enclosed with Decision No 07/2008/QD-NHNN dated March 24, 2008.