Bustling M&A deals in banking industry at year beginning
Right from the beginning of 2023, many banks have announced their plans for merge and acquisition (M&A) deals and capital increase.
Last week, the Board of Directors of the Vietnam National Petroleum Group (Petrolimex) approved a plan to divest capital from PG Bank, which means the bank will have a chance to seek a new strategic shareholder to increase its capital after 12 years.
Earlier in January, the Sumitomo Mitsui Banking Corporation (SMBC) was likely to complete capital divestment from Eximbank. Meanwhile, VPBank is working to sell 15% of its stake to a foreign partner. Once the deal finishes, it will be one of the banks with largest equity in the system.
In a directive issued earlier this year, the State Bank of Vietnam (SBV) no longer banned banks from paying cash dividends. Accordingly, this year, many banks are preparing to pay cash dividends such as VPBank, TPBank, VIB and ACB.
In its Directive 01/CT-NHNN, the SBV also encouraged banks to pay cash dividends in shares to increase charter capital, improve financial capacity and credit supply to the economy, and stabilise market interest rates.
Currently, VPBank is leading the system in terms of charter capital with over 67 trillion VND (2.84 billion USD). However, the ranking is likely to change with many new records to be set after the capital-raising race this year.
VPBank’s first rival will be Vietcombank, which plans to issue over 2.7 billion shares to increase its charter capital to 75 trillion VND (3.2 billion USD), becoming the leader in Vietnam's banking industry in terms of chartered capital.
In recent years, Vietnamese commercial banks have actively increased their capital and improved their financial capacity, but compared to their peers in the region, the capital buffer of Vietnamese banks is still thin. On the other hand, while countries in the region have applied Basel 3 or a part of Basel 3 standards, Vietnam has just met Basel 2 standards.
According to experts, the upcoming increase in charter capital is crucial for banks in developing healthily, expanding business activities, and increasing resilience in a volatile economy.
Chairman of BIDV's Board of Directors Phan Duc Tu said that by the fourth quarter of 2022, the capital adequacy ratio (CAR) of the Big 4 group was only 9.04%, while that of the joint stock commercial banks was 12.92%. This level is very low compared to other countries in the region, he said, citing the ratio of the Philippines was 16.29%; Singapore 17.2%; Malaysia 18.3%; Thailand 19.3%; and Indonesia 23.3%)./. VNA
Canadian traveler says she spent less than $100 a day in HCMC
A Canadian female traveler says she spent only VND1.6 million, or $67, on accommodation, entertainment, meals and travel for one day in HCM City.
Universities fail to attract students in some majors
Although few candidates enroll and the entrance score is very low, many training majors of many universities still fail to admit enough students while the actual demand for human resources in this field is in great shortage.
Japanese travelers love to visit Da Nang, experience Vietnamese culture
Yoshinori Yakabe, Japanese Consulate General in Da Nang, said Japanese travelers love to experience ecological tours and learn about culture when they come to Vietnam.
After 7 years of study, young doctors earn less than VND5 million a month
Citing low income as one of the reasons behind the brain drain from the public to the private sector, the Ministry of Health (MOH) believes this is causing problems in the health sector.
VIETNAM BUSINESS NEWS MARCH 29/2023
Foreign investment from ASEAN important to Vietnam: HSBC
Defence Minister meets with RoK Prime Minister in Seoul
Prime Minister of the Republic of Korea (RoK) Han Duck-soo hosted a reception in Seoul on March 29 for Vietnamese Minister of National Defence Gen. Phan Van Giang.
Ninth National External Information Service Awards launched
The ninth National External Information Service Awards was launched in Hanoi on March 29.
Vietnam draws over 2.69 million foreign tourists in Q1
Vietnam welcomed more than 2.69 million foreign tourist arrivals in the first quarter of 2023, 29.7 times higher than that of the same period last year, the General Statistics Office (GSO) has reported.
Doha Cup 2023: Vietnam's U23 football team return home with "empty hand"
Vietnam’s U23 team left Doha Cup 2023 with an "empty hand" after a close loss to their Kyrgyz rivals on March 29 (Vietnam time).
VIETNAM NEWS HEADLINES MARCH 29/2023
Government issues details on aid for ethnic minority housing, land reclamation
GDP growth of 3.32% in Q1 nears lowest level in 13 years
Vietnam’s gross domestic product (GDP) grew by 3.32% in the first quarter of the year, higher only than the growth rate of 3.21% recorded in the first quarter of 2020 in the 2011 to 2023 period, according to the General Statistics Office.
Four Japanese banks to provide US$300 million for Vietnamese renewable energy
Four Japanese banks are set to co-finance a total of US$300 million to provide credit lines to power producers using renewable energy in the nation as part of efforts to help the growing country in its decarbonising process.
15 short stories by Vietnamese writer published in RoK
A collection of 15 short stories written by local author Nguyen Huy Thiep were introduced to Korean readers by Wisdom Publishing House in March.
Hanoi’s ancient pagoda in the red-silk cotton tree season
In March, red-silk cotton trees bloom, showing off their beauty at the thousand-year-old Thay Pagoda in Quoc Oai district in Hanoi.
VN Government calls for broad-based measures to help realty sector
The Vietnamese Government has recently urged ministries to take measures to help the realty sector get back on track and sustain its healthy growth.