wiki globe

Posts Tagged ‘capital’

Capital to spend equivalent $10 million for Lunar New Year welfare

In Uncategorized on January 12, 2011 at 7:04 am

The Hanoi People’s Committee has decided to spend nearly VND200 billion (US$10 million) on purchasing gifts to help the vulnerable groups in society.

Hanoi authorities will spend VND20 billion to help the poor during the Lunar New Year holidays. (File photo)

The Tet gifts will be given to the poor, lonely seniors and welfare beneficiary families; in order that they too can enjoy a happy Lunar New Year, which begins on February 3.


Nguyen The Hung, deputy director of Hanoi Department of Labor, Invalids and Social Affairs, said the department is making every effort in ensuring that no person goes hungry, during the Tet holidays.


During the Tet holidays, more than 730,000 people will be offered gifts. These will include 1,000 old men, over the age of 100, and over 148,000 poor families.


Furthermore, the People’s Committee will use subscriptions in order to help disabled people enjoy the Tet holidays. Additional money will be given to orphans and the poor.


The capital will also give gifts worth VND100,000 to each drug addict; and each cadre will receive gifts worth VND200,000 each in rehabilitation centers.

Source: SGGP

PetroVietnam’s capital withdraws to hit stock market, experts say

In Uncategorized on January 8, 2011 at 4:28 am

The oil and gas giant PetroVietnam’s capital withdrawals will effect the stock market in short-term and give a boost to some of its subsidiaries opportunities, financial experts said.

An investor watches share prices updated on a big screen at a HCMC-based brokerage (Photo:Minh Tri)

The Vietnam Oil and Gas Group, known as PetroVietnam, early this year began to withdraw its capital in its subsidiaries, which are not in the group’s core businesses.


The state-owned oil and gas giant also announced it would cut 51 percent of its holdings in the member companies specific in the group’s key fields


The move came from the state-owned gasoline supplier’s attempt to restructure its business model, of which the group will focus on mining and refining oil, according to PetroVietnam’s deputy general director Nguyen Ngoc Su.


The plans come at a time when market developments have facilitated the State’s withdrawal of investment in listed companies such as PetroVietnam Finance (PVF), Phu My Fertilizers (DPM) and Petroleum Technical Services Corp (PVS), baobariavungtau website quoted Su as saying.


The deputy director said PetroVietnam has “basically completed” their plan on restructuring and renewing its subsidiaries, with 14 units being equitised. So far, PetroVietnam has successfully auctioned more than 313 million shares, bringing in VND17,54 trillion (US$986.4 million).


Financial experts said PetroVietnam’s capital withdrawals would affect the slumping stock market, as well as share prices of its listed subsidiaries. However, selling shares in the firms not specific in core businesses will help the oil and gas group to regain a large amount, which will be reinvestments in current projects.


Stock analysts said oil stocks are among the market’s gainers in both short and long term. Listed enterprises specific in mining oil and renting rigs remain in black during the global economic turmoil, and will be the first ones growing sharply when the economy recovers, analysts said.


At present, two subsidiaries of the group including PetroVietnam Technical Services Joint Stock Corp. (PVS) and PetroVietnam Drilling and Well Services Joint Stock Company (PVD) are achieving healthy earning so far this year.


The former made a pretax profit of VND780 billion ($39 million) from a revenue of VND15 trillion in the first ten months of the year. The core businesses’ growth rate of PVS this year rose to over 20 percent year-on-year. PVS closed 2.84 percent lower at VND20,500 on the Ho Chi Minh Stock Exchange on Saturday.


PetroVietnam Joint Stock Finance Corporation (PVF) will likely to achieve thousands of billions of Vietnam dong from exporting crude oil, while PetroVietnam Insurance Joint stock Corp. (PVI) is providing insurance services to a large amount of clients, which are PetroVietnam Group’s subsidiaries and partners.


“There are 25 oil and gasoline firms listing on both exchanges in Ho Chi Minh City and Hanoi. They have a great chance of earning big bucks as local consumer demand for oil this year remains high and the global crude oil price is increasing,” said a director of a HCMC-based brokerage.

Source: SGGP

PetroVietnam’s capital withdraws to hit stock market, experts say

In Uncategorized on January 8, 2011 at 4:27 am

The oil and gas giant PetroVietnam’s capital withdrawals will effect the stock market in short-term and give a boost to some of its subsidiaries opportunities, financial experts said.

(Photo:Minh Tri)

The Vietnam Oil and Gas Group, known as PetroVietnam, early this year began to withdraw its capital in its subsidiaries, which are not in the group’s core businesses.


The state-owned oil and gas giant also announced it would cut 51 percent of its holdings in the member companies specific in the group’s key fields


The move came from the state-owned gasoline supplier’s attempt to restructure its business model, of which the group will focus on mining and refining oil, according to PetroVietnam’s deputy general director Nguyen Ngoc Su.


The plans come at a time when market developments have facilitated the State’s withdrawal of investment in listed companies such as PetroVietnam Finance (PVF), Phu My Fertilizers (DPM) and Petroleum Technical Services Corp (PVS), baobariavungtau website quoted Su as saying.


The deputy director said PetroVietnam has “basically completed” their plan on restructuring and renewing its subsidiaries, with 14 units being equitised. So far, PetroVietnam has successfully auctioned more than 313 million shares, bringing in VND17,54 trillion (US$986.4 million).


Financial experts said PetroVietnam’s capital withdrawals would affect the slumping stock market, as well as share prices of its listed subsidiaries. However, selling shares in the firms not specific in core businesses will help the oil and gas group to regain a large amount, which will be reinvestments in current projects.


Stock analysts said oil stocks are among the market’s gainers in both short and long term. Listed enterprises specific in mining oil and renting rigs remain in black during the global economic turmoil, and will be the first ones growing sharply when the economy recovers, analysts said.


At present, two subsidiaries of the group including PetroVietnam Technical Services Joint Stock Corp. (PVS) and PetroVietnam Drilling and Well Services Joint Stock Company (PVD) are achieving healthy earning so far this year.


The former made a pretax profit of VND780 billion ($39 million) from a revenue of VND15 trillion in the first ten months of the year. The core businesses’ growth rate of PVS this year rose to over 20 percent year-on-year. PVS closed 2.84 percent lower at VND20,500 on the Ho Chi Minh Stock Exchange on Saturday.


PetroVietnam Joint Stock Finance Corporation (PVF) will likely to achieve thousands of billions of Vietnam dong from exporting crude oil, while PetroVietnam Insurance Joint stock Corp. (PVI) is providing insurance services to a large amount of clients, which are PetroVietnam Group’s subsidiaries and partners.


“There are 25 oil and gasoline firms listing on both exchanges in Ho Chi Minh City and Hanoi. They have a great chance of earning big bucks as local consumer demand for oil this year remains high and the global crude oil price is increasing,” said a director of a HCMC-based brokerage.

Source: SGGP

Foreign lenders rush to raise registered capital

In Uncategorized on January 8, 2011 at 4:26 am

While local lenders gained a one-year extension for the deadline to raise their registered capital, foreign-owned banks are on a rush to increase the capital in accordance with the Law on Credit Institutions.

A foreigner waits outside an ATM booth in Ho Chi Minh City (Photo:Minh Tri)

Prime Minister Nguyen Tan Dung has approved the proposal requiring local lenders to raise registered capital levels to VND3 trillion (US$153.9 million), by Dec. 31, 2011, the State Bank of Vietnam said on its website last week.


Commercial lenders took a breath of relief on the fact that the central bank extending the deadline to raise registered capital by one year to ease pressure on banks having difficulty meeting higher requirements.


Foreign-owned banks, meanwhile, are in a race to either reduce the outstanding credit or add more capital in an attempt to meet the new requirement, experts said.


According to the Law on Credit Institution, foreign banks are not allowed to offer a loan which is worth 15 percent higher than its registered capital.


A Vietnam branch of a foreign bank said in spite of its registered capital of $15 million only, it could support projects worth $50 million thanks to the mother bank’s large capital.


But according to the requirement of raising registered capital levels, they can loan around $1-2 million only.


The State Bank of Vietnam early this week granted permissions to three foreign lenders to raise their capital.


Among those banks are Taiwan-based Hua Nan Commercial Bank increasing its registered capital to $65 million from $15 million, Taiwan-based Chinatrust Commerical Bank raising to $50 million from $15 million and Japan’s Mizuho Corporate Bank to $133.5 million from $15 million.


An official of Korea Exchange Bank said the bank will surely have to raise capital as 60 percent of its clients borrowed more than $4 million for each. 


Financial experts said foreign lenders with high foreign currency liquidity have an edge over local banks. Therefore, asking them to raise capital will prompt to a shortage of foreign currency, the expert warned.


“Borrowers struggling to get foreign currency loans from foreign banks will switch to local lenders, pilling up pressures on the country’s foreign currency supply,” an economist said.


“The National Financial Supervisory Commission proposed the government to set up credit limits for foreign banks, instead of their branches in Vietnam,” said Dr. Le Xuan Nghia, vice chairman of the commission.


Statistics show Vietnam has 71 foreign credit institutions with 48 representative offices. Their total asset this year reaches more than VND420 trillion, increasing 30.8 percent year-on-year and making out of 11.25 percent of the banking system’s total asset.


They mobilized nearly VND364 trillion, a year-on-year increase of 33.8 percent, and loaned more than VND230 trillion in the first ten months of the year. 

Source: SGGP

New treatments set to boost capital market’s liquidity, officials say

In Uncategorized on December 16, 2010 at 10:09 am

Many regulations will be released to boost Vietnam’s bond market, which has a healthy growth rate and a low liquidity, officials said.

A woman watches share prices updated on a computer screen at a HCMC-based brokerage (Photo:Minh Tri)

Deputy financial minister Tran Xuan Ha said it was necessary to set up tax exemptions for bond trading and focus on boosting the market’s liquidity. The Ministry of Finance released regulations on issuing bonds with large amounts and buying back bonds to increase the debts’ liquidity.


The ministry also speeded up the equitization and submitted plans on gradual sales of the state-owned shares to the government.


Statistics shows that bonds worth VND100 trillion (US$5 billion), mainly treasury bonds, were issued this year. However, only commercial banks were the buyers. Economists said the bond market’s liquidity was very low in the last 10 years.


The Asian Development Bank said in its recent report that Vietnam’s corporation bond market grew fastest among other countries in the region in the third quarter of 2010.


Corporation bond’s growth rate this year rose 51.9 percent year-on-year, almost double of the government bond’s 25.5 percent. However, in the third quarter of the year, corporation bond’s issue value fell 68 percent year-on-year, while government bond’s issue value dropped 43.6 percent year-on-year.


Despite its fast growth rate, Vietnam’s bond market with $15 billion in unpaid bonds at the end of September remains small compared with other countries in the region. Of the amount, government bonds are worth $14 billion.


Recovering stock market
Both stock markets in Hanoi and Ho Chi Minh City roared back last week as the investor confidence was restored. The daily trading volume at the two bourse reached an average amount of more than VND2 trillion ($100 million).


Analysts said the increasing trading volume showed investors pumped more money into market. Some brokers warned the stock market was overheated as many shares rose by the daily trading band of 5 percent for many days.


The Hanoi-based brokerage FPT expected the market would make corrections, as investors would take profits from the current winning streak.


However, financial experts said the market is often bullish at yearend. Foreign investors continued to be sellers recently, but they dumped penny shares only to restructure their portfolio, experts noticed.

Source: SGGP

Deadline for banks to raise capital pushed back a year

In Uncategorized on December 16, 2010 at 10:02 am

Prime Minister Nguyen Tan Dung has accepted a proposal from the State Bank of Vietnam to extend the deadline for banks to raise their chartered capital to VND3 trillion (US$141.7 million) by one year to December 31, 2011, said the bank on December 14.

Transaction conducted at an Asia Commercial Bank branch in Ho Chi Minh City.

The proposal was sent to the Government when it was found that commercial banks faced a looming December 31 deadline to meet stricter minimum capital requirements.


Earlier, the central bank had been adamant that if they failed to meet the deadline, banks would face closure, or be forced into mergers with other institutions. The bank said that the deadline was ‘hard-and-fast’ as the banks had had four years to prepare for the capital increase.


The Government issued Decree 141/206/NĐ dated on November 22, 2006, requiring banks to raise their chartered capital to at least VND3 trillion by December 31, 2010.
 
The Decree was aimed at eliminating any weak banks and strengthening the financial capacity and security of the banking system. 
 
The banking system has quickly developed during the past years of renovation. However, most of banks are small-sized and may be vulnerable to the ups and downs of the market.
 
Additionally, objective reasons like the global financial crisis and economic downturn have prevented foreign partners from pouring money in the banking system and the Vietnamese banks themselves from raising capital through issuing shares.
 
Besides, the Government has required the State-owned enterprises to focus on their main business lines, so they have withdrawn money from banks, causing difficulties for the banks.


By the end of October, all 22 commercial banks not yet in compliance had received the Central Bank’s approval to increase registered capital from an average of nearly VND1.6 trillion ($75.57 million) to an average of VND3.5 trillion ($165.32 million).
 
Eleven of these banks had received the State Securities Commission approval to raise additional funds by offering shares. However, because of the gloomy state of the market during the last several months, these plans were derailed.


The State Bank previously extended deadlines for commercial banks to meet higher capital requirements. Commercial banks were required by law to registered capital of at least VND1 trillion (US$47.23 million) by the end of 2008, but only 28 banks had met the requirement by the deadline. Another 10 managed to meet it only as late as the end of 2009, with the central bank granting permission for delaying the compliance.

Source: SGGP

Banks get extra year to raise charter capital

In Uncategorized on December 16, 2010 at 9:32 am




Banks get extra year to raise charter capital


QĐND – Wednesday, December 15, 2010, 21:6 (GMT+7)

Commercial banks have one more year to comply with stricter new minimum capital requirements.

The Prime Minister on Dec.4 set a new deadline of December 31, 2011, for banks to comply with the requirement that they maintain a minimum charter capital of 3 trillion VND (141.71 million USD).

He has instructed the State Bank of Vietnam to work with related agencies to amend Decree No 141, which sets the deadline at the end of this month.

The State Bank had earlier vowed that the deadline was hard-and-fast, since banks had had four years to prepare for compliance, and warned that banks failing to meet the deadline would face closure or forced merger or acquisition.

However, the process of increasing charter capital had been complicated for many banks by the global financial crisis, the withdrawal of investment by State shareholders, and a gloomy domestic securities market, said the head of the State Bank’s supervisory and inspection department, Duong Quoc Anh.

“The fact that the Government has discouraged State-owned economic groups from investing in non-core business lines and instructed these groups to revoke such investments has caused big trouble for a number of financial institutions,” Anh wrote on the State Bank website.

State-owned garment maker Vinatex, for instance, recently sold an 11-percent interest in Navibank, one of the banks unable to meet the new requirements.

In prior proposals to the Government, the central bank had insisted on the higher charter capital requirements in order to improve the security and capacity of the nation’s banking system.

By the end of October, 22 commercial banks not yet in compliance had received State Bank approval to increase registered capital from an average of nearly 1.6 trillion VND (75.57 million USD) to an average of 3.5 trillion VND (165.32 million USD). Eleven of these banks had received State Securities Commission approval to raise additional funds by offering shares.

The State Bank has previously extended deadlines for commercial banks to meet higher capital requirements. Commercial banks were required by law to register capital of at least 1 trillion VND(52 million USD) by the end of 2008, but only 28 banks had met the requirement by the deadline. Another 10 managed to meet it only as late as the end of 2009, with the central bank granting permission for the delayed compliance.

Source: VNA/ Photo: LDO


Source: QDND

Anti-UN unrest spreads to Haiti capital

In Uncategorized on November 19, 2010 at 3:27 am

State Bank pours more capital into interbank system

In Uncategorized on November 15, 2010 at 2:31 pm

Hospitals to be relocated to outer suburbs in capital plan

In Uncategorized on October 24, 2010 at 4:05 pm




Hospitals to be relocated to outer suburbs in capital plan


QĐND – Saturday, October 23, 2010, 23:12 (GMT+7)

A detailed plan is being developed to move Ha Noi hospitals to outer suburbs as part of the capital’s construction plans, a conference between the People’s Committee and the Ministry of Health heard on Thursday.


“City authorities will try their best to facilitate the relocation of the hospitals,” said deputy chairman of the Ha Noi People’s Committee, Phi Thai Binh.


The city is set to become a hub of high-quality healthcare under plans being reviewed by the Government.


t present, there are 72 hospitals in the city, 32 managed by the ministries of health, public security, national defence, construction and transport, and 40 others run by the Department of Health. Half of these health centres are in four inner districts: Hoan Kiem, Ba Dinh, Dong Da and Hai Ba Trung. The conference concluded that hospitals should be treated according to their function. Those that treat infectious or viral diseases and produce large amounts of medical waste will be shifted from populous areas to suburban areas and the abandoned buildings will be turned into medical research centres.


Additional facilities will be built elsewhere for hospitals with no room for expansion. All new hospitals managed by the city’s Health Department must be built at least 25km from central Ha Noi and near State- and district-level hospitals to ensure that technology can be transferred efficiently.


Ha Noi hopes to build five multi-functional medical complexes in the future on a total area of 600 hectares in the Gia Lam, Long Bien, Soc Son, Son Tay and Phu Xuyen districts. The quality gap between district and provincial hospitals and State-level hospitals is causing State hospitals to be overcrowded with patients.


Key hospitals, including Bach Mai Hospital, the National Obstetric and Gynaecological Hospital and the Viet Nam National Hospital for Paediatrics in Ha Noi, overbook their hospital rooms and do not have enough beds to meet demand.


During the first six months of the year, Bach Mai hospital, one of biggest hospitals in the country, has operated at 47 per cent above its capacity level.


A survey conducted by the Institute of Health Strategy and Policy in 2007 showed that State hospitals, particularly obstetrics and children’s hospitals, were unable to meet demand.


Source: VNS/VNN


Source: QDND