Banks announce encouraging business results for first half of 2009, forcasting that the fulfilment of their yearly business plans is within reach. Maritime bank’s pre-tax profit was reportedly VND 473 bln, or 26% of its average chartered capital. Vietcombank’s managers forecast that pre-tax profit would reach VND 2,400 bln in the first six month of the year. Meanwhile, Eximbank has reported a breakthrough in profit in June which could help the bank obtain VND 900 bln in pre-tax profit. An Eximbank leader said that one of the advantages of the bank was profuse and cheap capital which has helped it develop its credit. Interest from loans accounted for a big proportion of the total profit of banks in the first six months of the year, at an average around 60%. This proves to coincide with the banks’ policies on strengthening credit set earlier this year.
Foreign banks expanding services in Vietnam: To date, the SBV has licenced only five foreign finance and banking groups to set up 100% foreign-owned entities in Vietnam. ANZ Bank and HSBC, in particular, are undertaking a major expansion of their retail network. ANZ bank and HSBC have already shifted to operate as 100% foreign-owned banks incorporated in Vietnam instead of foreign bank branches. StandChart will change its mode of operation in July. The two other banks are preparing to do the same. Just a short period since changing its operating model, HSBC Vietnam has opened six transaction offices in Hanoi and offices in Hanoi and HCM City. It plans to open one more branch in HCMC by the end of the year and in Binh Duong Province on July 1. HSBC sees Vietnam as a market with great potential. On June 15, ANZ opened its first transaction office in the South Saigon urban area, the second office opened in Vietnam since the bank shifted to work as a 100% foreign-owned bank. ANZ plans to open six new offices in June, including three in Hanoi and three in HCMC.
IMF urges Vietnam to tighten monetary policy: It said Vietnam was weathering the global financial crisis relatively well but would need to adjust policies to keep the economy on an even keel. The IMF advised monetary operations to “rein in dong liquidity and through an accelerated phasing out of the current interest rate subsidy schemes.” In addition, the IMF said an adjustment in policy rates may be needed if credit expansion continues to accelerate. “In this context, we would urge the State Bank of Vietnam to lift the cap on lending rates, which is hindering bank operations, as soon as possible”, the IMF said. It said Vietnam’s current stimulus plan could potentially raise the government’s financing requirement to 12.5% of GDP in 2009, which would be difficult to fund without adding pressure on the balance of payments. The IMF recommended the government’s financing requirement, including drawdown of deposits, be limited to 8.5% of GDP.
Banks to lend USD 77.5 mln for building first petroleum bonded warehouse. The State-owned Van Phong Petrol Bonded Warehouse Co. Ltd got a USD 77.5 mln credit line from a consortium of banks to build Vietnam’s first petroleum bonded warehouse in Khanh Hoa Province. It signed an agreement June 8 with the Petrolimex Group Commercial Stock Bank, Saigon Commercial Bank (Sacombank), Vietinbank, Military Bank. The warehouse, to be built in Van Phong Bay, will have a capacity of 500,000 cubic meters, and cost USD 125 mln to build.
