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Tag Archive for ‘Forex’

Nowhere to hide

A darker picture about the banking system is emerging, analysts say, as some commercial lenders report sharp drops in profits or even losses. The time has come when banks can no longer hide their weaknesses, they add. Asia Commercial Bank reported losses of VND520.67 billion (US$24.9 million) in the third quarter, compared to a profit of VND658.6 billion the same period last year. According to the Ho Chi Minh City-based lender, often known as ACB, the loss was caused…

Dollar demand in Vietnam remains sluggish

The demand for foreign currency loans for the end of the year shopping season among enterprises has not risen much although the first month of the final quarter has passed. The inter-bank exchange rate has been stable at VND20,828 per dollar since the year’s beginning. Prices of the greenback quoted at banks have increased slightly […]

Vietnam to Audit 6 State Groups and 4 Banks in 2013

Vietnam’s State Audit is seeking the National Assembly’s approval to audit 6 state corporations and 4 banks in 2013, including EVN and Petro Vietnam. The list of the 6 corporations are: the Electricity of Vietnam (EVN), Petro Vietnam, the Vietnam National Coal – Mineral Industries Holding Corporation Limited (Vinacomin), Vietnam National Textile Garment Group (Vinatex), […]

Enterprises in Vietnam finding it hard to access US dollar loans

Unlike previous years, by the end of this year, instead of worrying changes in the dong/US dollar Forex rate, enterprises’ current concerns are difficulties in accessing US dollar loans. Dien Quang Hiep, director of Mifaco Co (in the southern province of Binh Duong), said this year, the dong/US dollar Forex rate has not had many changes, thus Mifaco bravely borrowed US dollar at banks to convert into dong to pay salary for workers.This is beneficial since the company has foreign currency income while the US dollar lending interest rate is only 5 percent/year, lower than the dong…

Pressure on Dong/USD Forex rate increases

Since mid-October, a number of institutional investors have begun to see the surging pressure on the dong/US dollar Forex rate. Looking at credit growth report of a number of large commercial banks can see foreign currency credit growth has reached 20-30 percent, which means that it exceeded the overall credit growth of up to 8-9 times. The reason was attributable to the stable US dollar lending interest rate at 5-8 percent/year while the Forex rate saw less fluctuation. In the second aspect, the transaction volume in US dollar on the interbank market in the first two weeks in October also…

Bidv’s bad debt ratio at 2.77pct as of Q3/2012

Commercial Joint Stock Bank for Investment and Development of Vietnam (Bidv) has recently announced its business performance in the third quarter of 2012 and five months since becoming a commercial joint stock bank (since May 1, 2012). Accordingly, in Q3/2012, due to a credit risk provision of nearly 1.65 trillion dong , Bidv’s pre tax profit was only over 200 billion dong , including 2.7 trillion dong worth of net interest income in Q3/2012 (from May 1 to September 30, it was 5.4 trillion dong ), services contributed 438.5 billion dong in Q3 and over 815 billion dong in five months, Forex trading activities made up 89 billion dong in Q3 and…

BAOVIET Bank offers lower interest rates for exporters

Information from Bao Viet Commercial Joint Stock Bank (BAOVIET Bank) said that the bank has recently launched a new credit product to support exporters who can earn foreign currency and commit to sell foreign currency for the bank. Particularly, when borrowing the dong according to this method, the borrowers will be given the lending interest rate in US dollar by BAOVIET Bank. Thus, instead of carrying out an interest rate of 13 percent per year, enterprises can borrow dong with the interest rate of 7.5 percent per year. According to this method, enterprises will be disbursed immediately when having contracts or export…

Vietnam ACB May Reap VND1.9Tln Pretax Profit in 2012: VCBS

Asia Commercial Bank (ACB) may reap a pretax profit of VND1.892 trillion this year, Vietcombank Securities said in a report. In 9M/2012, the HNX-listed lender earned a profit of VND896 billion, sinking 57.3% over the same period in 2011. The lender’s 9M weaker business result was due to its Q3 net loss of VND496 billion, resulting from a loss of VND1.144 trillion from gold and forex trading and a 198% on year upsurge in loan loss provision in the quarter. VCBS noted that in Q4, ACB would continue to mobilize gold from the local people to offset the gold shortage…

Foreign exchange rate maintains stability in Vietnam

Foreign exhange rate maintains stability Thien Ly (VNS) The State Bank of Viet Nam has kept the dong-dollar exchange rate at below VND20,828 for nearly 11 months, and it is predicted to remain stable for the rest of the year. The rates listed at banks have also been around VND20,800 for buying and 20,830 for selling except for a slight increase in September because of a spurt in gold prices. The stable foreign exchange rates are testimony that the SBV’s monetary policies have sustained investors’ confidence in the dong. The stability is also attributed to the close oversight of the market…

Vietnam Banks Fail To Meet Rising Demand For Dollar

HCM CITY (VNS)—The annual year-end spike in demand for foreign currency has set in, but it is unlikely that foreign currency loans by banks will expand sharply as a result. Companies usually require foreign currency at this time of the year, the peak business season due to a clutch of festivals, to pay for imported goods and services. The stable exchange rates, and massive differences between interest rates on dong and loans in the greenback have also added to the demand for dollar loans. Independent analysts said the forex rate would…