People's deposits in banks reach record highs; bond interest rates rise.

VietNamNet•27/11/2023

- People's deposits into banks reach a new record.

By the end of September, the amount of deposits from the public in the banking system reached its highest level ever. In September alone, people deposited an additional 15,935 billion VND into the banking system. This increase represents a significant improvement compared to the 43,723 billion VND in August, the 43,723 billion VND in July, the 35,300 billion VND in June, and the 14,700 billion VND in May (according to Dan Tri newspaper).

- Corporate bond issuance interest rate: 10.5%/year

According to the Vietnam Bond Association (VBMA), in the first 17 days of November, businesses issued 8 private bond tranches with a total value of over 13,776 billion VND. The interest rates of the bond-issuing businesses ranged from 6-10.5% per year (according to Thanh Nien newspaper).

- Vietnamese government bond yields increased across all maturities.

According to a newly released report by the Asian Development Bank (ADB), Vietnamese government bond yields increased across all maturities between September 1st and November 10th due to rising inflation and the Federal Reserve's decision to maintain high interest rates for a longer period (according to Nguoi Lao Dong newspaper).

- The Prime Minister requested the State Bank of Vietnam to learn from its experience in managing credit growth.

Prime Minister Pham Minh Chinh has just signed a directive on managing credit growth in the remaining months of 2023. The Prime Minister requested the State Bank of Vietnam (SBV) to learn from the experience of managing slow credit growth in 2022. (See more)

- The Prime Minister criticized ministries, departments, and localities for being slow in "spending money".

On the morning of November 27th, Prime Minister Pham Minh Chinh chaired an online meeting of the Government Standing Committee with ministries, central agencies, and localities to review and assess the situation and urge the acceleration of public investment disbursement in 2023. The Prime Minister stated that, in addition to the achievements, 21 out of 52 ministries and central agencies and 30 out of 63 localities have not yet fully allocated the capital plan assigned by the Prime Minister, totaling nearly 16,200 billion VND (according to Dan Tri newspaper).

- The Ministry of Construction has stated its position on the North-South railway project, which involves an investment of over 70 billion USD.

Minister of Construction Nguyen Thanh Nghi has sent a document to the Ministry of Transport (MOT) providing feedback on the proposed investment plan for a high-speed railway on the North-South axis. The Minister of Construction agrees with the construction plan for the North-South high-speed railway according to scenario 3, double track, 1,435mm gauge, design speed of 350 km/h, and investment capital of over 70 billion USD. (See more)

sugar rate 1209.jpg — High-speed rail is a convenient mode of transportation in developed countries. (Photo: Vu Diep)

- Ownership of apartments is unlimited; mini-apartments are granted ownership certificates.

Mini-apartment units are eligible for land use right certificates (ownership documents) under land law, and can be sold or leased. This is one of the notable new points in the amended Housing Law, which was passed by the National Assembly today and will take effect from January 1, 2025. (See more)

- Bac Ninh, the 'industrial hub,' is estimated to experience negative growth, a rare occurrence after a decade.

Bac Ninh's Gross Regional Domestic Product (GRDP) growth is estimated at -6.18% in 2023. This is unprecedented in decades of socio-economic development for this "industrial hub" in the North. (See more)

Tourists spent nearly 800 billion VND on tickets to visit Ha Long Bay in 2023.

According to the Ha Long Bay Management Board, given the current situation, revenue from ticket sales for Ha Long Bay could reach 800 billion VND, while the target set by Quang Ninh province for 2023 is approximately 790 billion VND (according to Lao Dong newspaper).

- One company announced a Tet bonus of up to 200% of salary.

On November 26th, Changshin Vietnam Co., Ltd. (Vinh Cuu District, Dong Nai Province) announced annual salary increases and Tet (Lunar New Year) bonuses for its employees. Despite difficulties with orders, the company still awarded Tet bonuses for the Year of the Dragon 2024, with the highest bonus reaching 200% of basic salary and performance-based salary. (See more)

- Banks are appraising the value of nearly 500 billion VND in debt owed by the "gold tycoon" for sale.

Agribank Branch 4 is announcing a valuation fee for the entire debt of Duc Tien Gemstone and Jewelry Trading Joint Stock Company to determine the starting price for the public auction of this "gold tycoon's" debt. According to Agribank, Duc Tien's debt has an outstanding balance of up to 485 billion VND. (See more)

- The new Chairman, Vu Thanh Hue, owns 14% of LPBank Securities shares.

Ms. Vu Thanh Hue, Chairwoman of LPBank Securities Joint Stock Company (LPBS), recently purchased an additional 1.25 million LPBS shares, increasing her ownership stake from 9% to 14%. Ms. Hue was appointed Chairwoman of the LPBS Board of Directors for the 2023-2028 term, effective August 28, 2023, replacing Ms. Nguyen Thi Bich Hong (according to An Ninh Tien Te).

Senior leaders of TNS Holdings resign en masse.

TNS Holdings Trading and Service Joint Stock Company (stock code: TN1) has just announced that it has received resignation letters from senior leaders for personal reasons. Specifically, TN1 received resignation letters from Ms. Nguyen Thu Trang from her position as a member of the Board of Directors and Chairman of the Board of Directors; from Mr. Nguyen Viet Son from his position as a member of the Board of Directors and Vice Chairman of the Board of Directors; and from Mr. Phan Anh Son from his position as a member of the Board of Directors (according to An Ninh Tien Te).

- The chairman's family received over 160 billion VND in dividends over two years.

Song Hong Garment Joint Stock Company (code: MSH) has just announced an interim dividend payment for 2023 in cash at a rate of 25%. After two years, the family of the Chairman of the Board of Directors will receive more than 160 billion VND. (See more)

- Apax English chain owner delisted: Why is Shark Thủy in trouble?

Apax English – once the largest English language center chain in Vietnam, owned by Shark Thủy – is mired in debt, facing delayed bond payments, teacher salaries, and student tuition fees… This crisis led to Apax Holdings' delisting and the departure of its leaders. (See more)

Today, November 27th, gasoline and oil prices on the international market may continue to fall, following the downward trend from last week. Over the past week, world oil prices experienced their fifth consecutive week of decline.

The central exchange rate increased by 20 dong on November 27th. The USD price at commercial banks decreased slightly today, closing at 24,045-24,430 dong/USD (buying - selling). The global USD price also declined.

On November 27th, the stock market saw the VN-Index fall by 7.55 points to 1,088.06 points. The banking sector continued to exert downward pressure, causing the VN-Index to recoup all the gains made during the recovery session at the end of last week. Market liquidity plummeted to its lowest level in about a month.

Gold prices on the international market today, November 27th, continue to rise, remaining above $2,000 per ounce. The price of SJC gold increased by 100,000 VND per tael for buying, while the selling price remains at 72.32 million VND per tael.

Interest rates on 12-month online deposits have uniformly fallen below 6% per annum. Currently, the highest interest rates for 12-month deposits are offered by HDBank and BaoVietBank, both of which are applying 5.9% per annum for online deposits.

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