Saigon Bank subject to BOE issuing time extension

Tuesday, June 10, 2008
The State Bank’s Governor has issued Decision 1279/QD-NHNN which will allow the Saigon Joint Stock Commercial Bank (SCB) to extend the issuance of par value termed bonds worth VND 3 trillion until July 4th, 2008.

Interest rates in Vietnamese Dong were fixed in the Decision 16/2008/QD-NHNN issued on May 16th, 2008 by the State Bank’s Governor.

Any adjustments will be publicly reported to the State Bank by SCB.

Previously, SCB’s termed bonds were issued following Decision 07/2008/QD-NHNN of the State Bank on March 24th, 2008.

EuroCapital securities broker joins HOSE

Tuesday, June 10, 2008
Ho Chi Minh Stock Exchange (HOSE) on June 5 recognised the trading membership status of EuroCapital Securities Joint Stock Co on the southern bourse. Earlier, EuroCapital became Hanoi Securities Trading Centre (HaSTC)'s member from May 15.

EuroCapital addressed at Floor 2, Thanh Cong Tower at 25 Lang Ha, Hanoi's Ba Dinh Dist with a chartered capital of 150 billion dong will have full ranges of securities sector such as securities brokerage, securities investment consultancy, securities self trading, securities depository and corporate finance consultancy.

At present, the company has been providing enough utility trading services like online transactions via internet, making orders trading via telephone, supplying account information via SMS and online shareholders management.

DongA Bank signs cooperation deal with Binh Phuoc Post Office

Tuesday, June 10, 2008
Eastern Asia Commercial Joint Stock Bank (DongA Bank or EAB)'s Binh Phuoc transaction office recently signed the contract of automatic telecom cost payment with Vietnam Post and Telecommunication Group (VNPT) through EAB multi-functional card connected with Binh Phuoc Provincial Post Office.

Through the contract, once registering the automatic telecom cost payment service, customers can pay for cost of fixed telecom provided VNPT, cost for VinaPhone mobile phone service and internet on their EAB accounts.

Tougher rule on foreign currency speculation

Tuesday, June 10, 2008
On June 5, the State Bank of Viet Nam announced the forex rate of 16,117 dong/US dollar but the black market (that is a market consisting of all commerce on which applicable taxes and/or regulations of trade are being avoided) recorded the forex rate being pushed to 18,400 dong per US dollar, higher 14% than SBV's level.

Last Friday the central bank also confirmed that the changes in forex rate of the informal market in some recent days were mainly for technological factor and speculation. Especially several foreign currency exchange agents of credit institutions in Hanoi and HCM City hiked the US dollar price to seek profit, causing damages for people.

Therefore, SBV announced it would combine with authorities to check and deal strictly with violations on the forex rate regulations and adjust the foreign currency exchange activities under current laws.

Accordingly, foreign currency exchange agents of credit institutions are only allowed to purchase US dollar cash from individuals and disallowed to sell US dollar to the customers. The whole collected US dollar volume must be sold to commercial banks.

In addition, foreign currency flows such as FDI, overseas remittance, foreign tourists are the large supply of US dollar to support the appreciation of the dong against the greenback. Thus, SBV said, the forex rate will continue to be monitored flexibly based on the market's supply and demand within the amplitude of+/-2% under the prime minister's direction.

Prior to such a move, the central bank had signalled forex stabilisation on May 27 when the forex rate reduced by some 800 dong on May 28 compared to all-time high level.

However, right after that the forex rate presented complicated movements with strong upward tendency of some 500-700 dong a US dollar. Particularly, on June 5, the forex rate announced by the central bank was 16,117 dong a US dollar while the rate in the free market was pushed to 18,400 dong a US dollar, rising by 14% against the announced rate.

Given explanation for the phenomenon, the Bidv chair Tran Bac Ha said that this showed not only the gap between supply and demand of US dollar in investments and official payments but also negative affects of rumours and speculations. So there is needed to have strong intervention.

According to Ha, the first reason causing the sudden change in dong/US dollar forex rate is the increasing foreign currency demand of importers mainly in fields of petroleum, steel, pharmaceuticals, luxury consumption goods that are not subject to be given priorities in banks' foreign currency supply strategy.

On the other hand, some foreign institutions released non-luminous assessments about Vietnamese economy in general and dong/US dollar exchange rate as well, so people and enterprises were urged to reserve US dollar despite of monetary market regulators' positive intervention.

SBV needs to have stronger intervention measures in supply of US dollar to commercial banks. With the current US dollar reserve, the central bank totally has enough ability to intervene the market, Ha confirmed. (TBKTVN)

Moody's praises Techcombank

Tuesday, June 10, 2008
The global well-known credit rating agency Moody's on June 4 released the latest report in which Techcombank still was highly appreciated in terms of domestic financial strength, especially the ability to maintain a good transparency in the difficult context at present.

This was shown clearly by the bank's ratio of lending and total capital in dong being kept at 82%-the safest level in Vietnam's banking system at this time, which could be reduced to 80% within this week.

The ratio for US dollar stood at 77%, showing that Techcombank could maintain transparency in line with the balance direction for both US dollar and the dong.

Also, Moody's praised Techcombank's capacity of limiting bad debt ratio that was estimated at 2.4%. (DTCK)

PG Bank launches saving product with flexible principal withdrawal

Tuesday, June 10, 2008
Petrolimex Gasoline Commercial Joint Stock Bank (PG Bank) recently launched the saving product with flexible principal withdrawal for short-term deposits of individual customers.

Particularly, deposits worth less than 100 million dong will get the yearly interest rate of 10%, 100-500 million dong at 10.5%, 500 million dong to below one billion dong at 11.2%, 1-2 billion dong at 11.5% and over 2 billion dong at 12.3%.

Customers can keep close track of the balance and manage their capital source via the bank's service E-Banking.

The PG Bank's dong deposit rate being applied from June 3 is 15.3% per year and 7.5% per annum as for US dollar.

Hapaco's Jan-May profit reaches 39.371b dong

Tuesday, June 10, 2008
Hai Phong Paper Joint Stock Co (Hapaco - coded HAP) recently reported that in May it reached the revenue of 39.371 billion dong and 1.681 billion dong in profit, bringing the total figures during the first five months of the year to 159.693 billion dong and 33.44 billion dong respectively.

The company's EPS was 2,310 dong per share. This month Hapaco's revenue could be 40 billion dong.

Another firm in the same field namely Hai Au Paper Joint Stock Co (coded GHA) also announced business result in May with 8.389 billion dong in revenue and 495 million dong in profit, bringing the total pre tax profit during the first five months of the year to 3.17 billion dong and EPS was 2,460 dong per share.

Who will be strategic shareholders of MobiFone?

Tuesday, June 10, 2008
Unstopped slump of the stock market did not affect to the desire of the world's leading telecommunication groups to become strategic shareholders of Viet Nam's MobiFone-the first mobile telecom service provider making equitisation.

A source from MobiFone said that without an exact equitisation schedule, but there were many foreign partners seeking investment opportunities in MobiFone. Le Ngoc Minh, the local firm's director revealed that foreign partners include Comvik, Vodafone, France Telecom, NTT Docomo, SingTel, and T-Mobile.

In the ceremony to launch one search-the first search service via cell phones in Vietnam-provided by Yahoo and MobiFone, the commerce director of VodaFone Asia region, Phil Patel said he could not reveal any information on its strategy for MobiFone.

At this time, the weightiest partners from Russia and Middle East who also paid much attention to MobiFone's equitisation have not yet showed up, added Minh. (TN)

JPMorgan's Fernandez Says Foreigners Buying Vietnamese Stocks

Tuesday, June 10, 2008
David Fernandez, head of emerging markets research at JPMorgan Chase & Co. in Singapore, comments on Vietnamese stocks. Fernandez spoke in a Bloomberg Television interview today.

The VN Index, a measure of 151 companies on the Ho Chi Minh City Stock Exchange, fell 1.61% to 373 today, the lowest since Feb. 23, 2006. The benchmark has lost almost 60% from the start of the year on concern the government will raise interest rates to quell inflation of 25.2%, the fastest since at least 1992.

On inflation and stocks:

``The inflation data are probably close to peaking. You could probably still end the year at closer to 20%.

``For equities in Viet Nam, everyone agrees that the past couple of years have been an extremely frothy time, with valuations just at levels that were unreasonable.

``Talking to our investors, who continue to want to get exposure, if you look at the foreign numbers, foreigners continue to be buyers in this market. These are buyers who are dedicated to Viet Nam, who are there for the long term.

``I would look at other asset prices as an indicator as to whether the worst is over.''

On the Viet Nam dong:

``The market had started to price in that there would be an immediate and very sharp devaluation. Meetings I had with the government last week indicate that there's no plan to do that. There's no pressure on the balance of payments for Viet Nam to devalue the dong.

``The first thing is to make sure markets understand that there is no plan to devalue the dong. Viet Nam has run very large current account surpluses, they need to intervene more aggressively to show the market they're serious.'' (Bloomberg)

Tan Tao Declines to 17-Month Low as Board Member Sells Shares

Monday, June 9, 2008
Tan Tao Investment Industry Corp. (ITACO), an operator of industrial zones in Viet Nam, fell to its lowest in 17 months after a board member sold shares.

The stock fell 1,000 dong, or 1.5%, to 67,000 as of 10:35 a.m. local time, the lowest since Jan. 11, 2007. The company has lost 39 percent this year. Viet Nam's benchmark VN Index declined 1.3% to 379.12.

Nguyen Trong Dung, a member of the supervisory board, started selling 2,000 shares today to reduce his holding to 5,324, according to a statement posted on the Ho Chi Minh Stock Exchange's Web site late June 6.

Tan Tao has a market value of 7.8 trillion dong, making it the eighth-biggest company on Vietnam's main bourse, according to data compiled by Bloomberg. (Bloomberg)