As per the report, the fifth-group debts – seen as the worst non-performing loans – accounted for a high portion of overall bad debts among the local lenders.

A large part of the bad debts was from loans given to the property sector. A local bank even reported the value of realty loans shot up to 70% of its total outstanding loans as of the end of last year.

Another report by the branch showed that Vietnam Bank for Agriculture and Rural Development, or Agribank, has the highest ratio of bad debts, at over 15% out of the four state-owned commercial banks.

Meanwhile, the average ratio of non-performing loans of commercial joint stock banks in the city was 2.59%.

In contrast, commercial joint stock banks whose headquarters are located outside HCMC posted the figure at more than 26%. Also, finance companies in the city suffered a 16.97% ratio for the non-performing loans while that of finance leasing ones was 23.31% as of end-November in 2011.

However, people credit funds at the end of November last year had only a ratio of bad debts at 5.46%.

The city’s credit institutions reported their total bad debts in the primary market servicing residents and organizations at 3.85% at the end of last year’s November. The statistics by the HCMC Branch pointed out that most banks enjoying low profits or mired in losses or high bad debt rates are due to having been involved in real estate-related loans.

The central bank affirmed that credit activities of the banking system this year will continue facing unexpected risks as uncertainties of the property market and local enterprises remain unpredictable. Therefore, the branch urged local banks to closely supervise bad debts and give out appropriate solutions.

Also, the branch requested its members to handle and minimize arising bad debts as well as ensuring the bad debt ratio at the level of less than 5% to the total outstanding balances.

In addition to credit risks caused by rising bad debts, the branch proposed credit institutions strictly manage term risks. “It is very difficult to adjust the structure of short-term deposits in sync with long-term loans and thus the capital usage at small commercial lenders has been burdened with heavy pressure for fear of term risks,” the branch explained in its report.

Recent statistics from the branch revealed that total debts relating to non-productive sectors including consumer credits, real estate loans and loans for securities as of September 30 last year made up 18.57% over total outstanding balances, down 0.03% from the beginning of the same year.

The total mobilized deposits in the city as of December 31 last year reached VND888.9 trillion, up 10% year-on-year while the credit growth at the year’s end was estimated at 6.3% against 2010.

The Saigon Times Daily

Gold buyers in this file photo queue up at a gold shop of Bao Tin Minh Chau Co. in Hanoi - Photo: Thanh Thuong

Locals on Wednesday still rushed to buy gold to wish for good luck on the occasion of the God of Wealth Day, the tenth day of the Lunar New Year.

According to local folklore, the God of Wealth returns to heaven on the tenth day of the first lunar month every year. Vietnamese people consider this the God of Wealth Day, thus often buy gold to wish for good luck and prosperity.

Saigon Jewelry Holding Co. (SJC)’s headquarters recorded busy retail trading, but few customers bought more than five taels. A tael is equal to 1.2 troy ounces.

Truong Cong An, vice head of jewelry sales department of SJC, said some 700 taels were sold in Wednesday morning alone, equal to the sales volume of the entire previous day. Most citizens bought from five candareens to two maces. A candareen is one tenth of a mace, ten of which make up one tael.

In addition, owners of many gold shops also went to SJC’s headquarters to exchange one-tael gold bars for smaller bars to resell to their customers.

Nguyen Thi Cuc, deputy general director of Phu Nhuan Jewelry Co. (PNJ), said there was a drastic surge in demand on Wednesday, mostly for small gold bars and rings. The retail sales volume accounted for some 60% of the total gold amount that PNJ sold on Wednesday.

Cuc said her company had prepared a large amount of lightweight gold bars to satisfy people’s demand.

Meanwhile in Hanoi, Bao Tin Minh Chau Jewelry Co. said many branches of the company witnessed queues of customers waiting for their turns to buy gold. Unlike HCMC, Hanoi’s citizens preferred rings to gold bars, crowding at the areas around Bui Thi Xuan and Tran Nhan Tong streets.

SJC on Wednesday quoted gold prices at VND45 million per tael for buying and VND45.3 million a tael for selling, dipping VND30,000 over the day before.

The Saigon Times Daily

On the Hochiminh Stock Exchange, trading volume remained unchanged compared to Tuesday with 39.2 million shares changing hands but value rose 22% to VND622.5 billion.

Losers slightly outnumbered gainers by 133 to 109, including 44 stocks hitting the ceiling prices and 44 others plunging to the floor prices. Most blue-chips closed in positive territory with MSN and VCF being notable exceptions.

Eximbank (EIB) took the lead for liquidity, rising 1.4% against the previous day to VND15,000 on the volume of 2.5 million shares. Becamex Infrastructure Development Co. (IJC), the second most actively traded stock, hit the ceiling price of VND9,400 with 1.9 million shares changing hands.

Foreign trading was down but the investors were still on the buying side. They accounted for 16.1% and 7.6% of the market’s buying and selling value respectively.

The Hanoi market fell back on strong profit taking with turnover slumping 20% to VND238 billion. The HNX-Index dropped 0.12 point, or 0.2%, from the day earlier to 60.47.

There were 95 stocks advancing versus 151 falling stocks, of which 36 stocks went up to the ceiling prices and 52 stocks dropped to the floor prices. Foreigners were net buyers with 3% of the buying side and 2.2% of the selling side.

HCMC Securities Corp. (HSC) in its daily report said the market’s early correction on Wednesday was met by buying energy suggesting that the rally was still very much intact. A lack of participation earlier in the rally ensured that a lot of investors had been left out and on balance they would be looking for any weakness as a chance to participate.

“Yesterday offered just such a chance and despite a sea of red ink during the second phase, most stocks closed in positive territory. In the short term, we may see some further upside although of course, selling pressure will also increase from now as we can see in the increasing volumes seen in the past two trading days,” HSC said.

The Saigon Times Daily

The categorization will be carried out this year, according to the ministry’s report on restructuring State-owned enterprises and securities and insurance firms.

The first group will consist of insurance companies with guaranteed solvency and profitable business. Enterprises in this group will be reinforced and maintained, allowed for expansion in line with efficient business schemes, but they will be closely inspected and supervised to ensure compliance with the law.

Group two will include enterprises with guaranteed solvency, but struggling with high operational costs, high compensation rates and no profit in two consecutive years. Management agencies will evaluate the efficiency and reduce operational expenses for this group’s members.

Meanwhile, those on the verge of losing solvency, with margins of solvency lower than the minimum level, will be gathered in group three. These companies need financial assessment, investment restructuring, and debt settlement, and parts of their insurance policies can be transferred to other firms.

The last group will comprise insolvent companies, which will be put under special control and applied the solutions in accordance with the Law on Insurance Business. During the special control period, if enterprises failed to overcome their difficulties, they would be forced to merge into other firms or take court receivership under prevailing laws.

Insurance enterprise restructuring will be in line with the restructuring of credit institutions, State-owned enterprises, and stock market to be deployed in the 2012-2015 period as mapped out by the finance ministry.

The finance ministry is making a detailed scheme for submission to the Prime Minister for approval in this quarter. The Government will focus on restructuring insurance companies, together with securities and fund management firms, in 2012 and 2013.

Regarding the scheme, the Government will set tougher conditions for insurance business establishment. Initially, companies with equity lower than statutory capital are asked to supplement capital to meet the regulatory requirements.

In addition, the Government has requested State groups and corporations to divest their capital in insurance industry, enhancing administrative and operational capabilities of insurance companies based on three pillars: financial security, risk management, and information disclosure.

Moreover, in the 2012-2014 period, export credit insurance and agricultural insurance will be piloted, along with the addition of new products and services.

According to the finance ministry, there are currently 39 insurance enterprises nationwide, including 28 non-life insurance companies, 11 life insurance companies and 12 insurance brokerage companies.

The Saigon Times Daily

Nearly 33 percent of respondents predict no major changes in the national economy in 2012. Around 7.6 percent believe that the national economy will get worse and up to 95.6 percent are pessimistic about inflation which will remain at a double-digit rate. Therefore, nearly 30 percent of the businesses will not recruit more employees while 7 percent of the businesses say they will cut staff this year.

Nearly 44 percent of respondents say they do not expect revenue growth in 2012, while 12 percent are worried about a decrease in revenues. However, 65.2 percent of the surveyed businesses still foresee profit growth. Around 28.5 percent think their profit will remain unchanged whereas 6.3 percent of them are worried about decreased profit.

In the survey, 74.5 percent of the businesses say that they continue to face difficulties in accessing capital for business and production activities. Accordingly, 26.7 percent choose to borrow money from banks, 28.2 percent to seek business partners, 14.4 percent to borrow trade credit, 13.4 percent to conduct finance leasing business, 10.9 percent to issue shares and 6.4 percent of issue bonds.

VOVNews

Sacombank Jewellery Company bought gold at VND45.1 million and sold at VND45.4 million as of 10:05 am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND45.25 million and sold at VND45.35 million as of 11:50 am Vietnamese time.

Meanwhile, Bao Tin Minh Chau Jewellery Company quoted price at VND45.25 million for buying, and VND45.35 million for selling at 11:00 pm Vietnamese time.

Gold advanced to highest level in eight weeks, gaining alongside equities and other commodities, as global manufacturing improved, weakening the dollar and boosting demand for alternative investment.

Spot gold rallied as much as 0.5 per cent to $1,751.97 an ounce and traded at $1,750.15 at 9:32 am in Singapore. Commodities advanced, fueled by favourable purchasing managers’ data in China, Europe and the US.

Manufacturing grew from the US to India and China, fueling optimism that global recovery is weathering the debt crisis in Europe and driving a rebound in stocks and commodities including copper and oil. India and China are the world’s largest bullion consumers.

Bullion for April delivery gained 0.2 per cent to $1,753 an ounce on the Comex in New York. Spot gold so called 14 day relative-strength index was at 72.15 today.

SGGP

Analysts believe that with the new strict regulations on the import procedures, the automobile market in 2012 would have no room for unofficial car imports, while the market would witness the establishment of massive official authorized dealers.

The Circular No 20 alone has made automobile dealers feel distressed. Meanwhile, the decision by the Hanoi and HCM City local authorities to increase the car ownership registration tax by five percent since January 1, 2012, has “put more oil into the fire,” which has made the business of private car dealers frozen.

However, it was lucky enough that most of them have sold the car they imported prior to the day the Circular No 20 took effect. In late 2011, people rushed to buy cars in order to avoid the higher car ownership registration tax, which became valid on January 1, 2012.

The disappearance of the independent car dealers on the market would spell that the import car market would be dominated by the official sales agents of automobile manufacturers. Both domestic automobile joint ventures, such as Mercedes-Benz, Honda, Mitsubishi, Ford, Isuzu, and official distributors for foreign manufacturers such as BMW, Audi, Porsche, Subaru, Chrysler, Renault, Citroen, Hyundai, would not have to compete with the car dealers, who were once redoubtable rivals.

The representative of a car showroom, an official sales agent on Cau Giay Street, said that the number of car buyers soared in December 2011.

“By December 22, the sales had soared by 150 percent in comparison with the month before,” Minh, the accountant of the showroom, said.

Distributors said the best sellers are the ones priced between 500 million dong and 700 million dong, including Cerato, Lacetti, Fiesta and Kia Morning. At the sale agent of Truong Hai Automobile Corporation on Pham Hung Road, reporters saw five successful transactions, while three of them chose domestically assembled Kia Morning.

Analysts have also noted the establishment of more and more official authorized agents. A lot of the sales agents of domestic automobile manufacturers such as Toyota, Honda, Truong Hai, Vina-Mazda, Hyundai Thanh Cong have been set up recently.

Commenting about the growing tendency, Dinh Manh Chi, Director of Subaru Hanoi, the official distributor of Subaru cars in the north, said that this is an inevitable tendency, because this is the only way for enterprises to do business after the Ministry of Industry and Trade closed the border gates to the car imported by independent trade companies.

Khanh, a customer in HCM City, said he is looking for an imported Hyundai Avante. However, he has not found any car. He has been told that the model has not been imported any more after the new circular took effect. Meanwhile, Hyundai Thanh Cong only distributes Avante of the old generation. Therefore, he is considering buying Hyundai Sonata of Thanh Cong.

It is expected that more and more authorized dealers would be set up in 2012. Renault just opened its second showroom in HCM City in January. Mercedes Benz is planning to open a new showroom in Phu My Hung urban area.

VietNamNet, VnMedia

About 36 percent of surveyed businesses express pleasure at their current business operation in Vietnam, while 26 percent are still pessimistic.

More than 47 percent are expected to see a middle-term increase in their trade revenue and 27 percent want to maintain their current business operation. Only eight percent voice concern over the negative impact of Vietnam’s inflation rate.

Regarding recruitment place in 2012, 40 percent of respondents say they will employ more workers, 39 percent want to maintain their current staff level, and 14 percent will reduce the number of employees in Vietnam.

The Chairman of the European Chamber of Commerce in Vietnam (EuroCham), Alain Cany, said the index reflects the confidence of EuroCham members in Vietnam’s business prospects. However, he said European businesses are still worried about the country’s equitisition process and macro-economic stability.

According to Dr. Matthias Duhn, EuroCham executive director, the debt crisis in the Euro zone has affected investors’ decisions in Asia. Many investors are keen on the Southeast Asian market, including Vietnam. Therefore, he said, Vietnam should sharpen its competitive edge to attract more investors.

VOVNews

Zuckerberg, in a letter to investors, outlined what he said were the core values of Facebook and said it “was not originally created to be a company.

“It was built to accomplish a social mission — to make the world more open and connected,” the Facebook chief executive on Wednesday said in the letter accompanying the filing with the US Securities and Exchange Commission (SEC).

“There is a huge need and a huge opportunity to get everyone in the world connected, to give everyone a voice and to help transform society for the future,” he said.

Facebook said it will list on Wall Street as “FB” but did not set a date for when it would begin trading or specify whether it would be on the Nasdaq Stock Market or the New York Stock Exchange.

Gartner technology analyst Michael Gartenberg said he did not expect Facebook’s stock market debut to have much of an impact on the average user.

But the extra cash would give Facebook a warchest to roll out more features and make it difficult for others to compete, he said.

“Facebook going public doesn’t have that much implication for the vast majority of Facebook users unless they plan on buying shares — when they can finally get their hands on them,” Gartenberg said.

“Google didn’t change for users for the most part when it became public,” he said. “It grew. It expanded out to other services.”

At $5 billion, Facebook’s initial public offering would be the largest ever by a technology company, eclipsing the $1.9 billion raised by Internet search giant Google when it went public in 2004 at a valuation of $23 billion.

Facebook’s $5 billion fund-raising target is only preliminary, however, and can be increased based on investor interest. Initial estimates were Facebook would seek to raise $10 billion and it may still decide to increase the offer.

The Palo Alto, California-based company reported net income of $668 million last year, up from $372 million the previous year.

Revenue nearly doubled to $3.7 billion in 2011 with most of it coming from targeted advertising gleaned from personal information shared by the hundreds of millions of users of the platform.

“The company is more profitable than we had expected,” said Kathleen Smith of Renaissance Capital, an IPO investment adviser.

“It just goes to show how not only is social media and social networking not a passing fad it also seems to be pretty profitable,” added Gartenberg.

Facebook’s revenue of $3.7 billion last year, however, was slightly lower than estimates which had pegged it at $4.27 billion.

Facebook, the leading social network in all but six countries, notably China and Russia, said it has over 845 million users including 483 million who log in daily.

Facebook’s value has been estimated at $75 billion and $100 billion.

A market capitalization of $100 billion would put Facebook on a par with McDonald’s ($101 billion), well ahead of Boeing ($55 billion) but behind Apple ($426 billion) and Google ($189 billion).

Zuckerberg, whose net worth has been estimated at $17.5 billion by Forbes magazine, is the largest individual shareholder in Facebook and controls 57 per cent of voting shares, according to the SEC filing.

But he was not the highest paid.

Sheryl Sandberg, who was lured away from Google four years ago to serve as Facebook’s chief operating officer, made more than $30.5 million last year while vice president of engineering Mark Schroepfer pulled in $24.7 million.

Zuckerberg’s total package was $1.49 million.

Gartenberg said Facebook’s IPO would be the largest by a technology company in 2012 by far but others contemplating going public will be closely watching how it fares.

“There are a lot of other companies on the sidelines that are no doubt sitting and waiting to see just how well the market receives Facebook,” he said.

Facebook shares are not expected to begin trading for several months.

Career-oriented social network LinkedIn went public in 2011 and promptly doubled its value.

Online daily deals site Groupon and social games titan Zynga were up 7.5 per cent and six per cent respectively on Wednesday over their IPO price.

AFP

Fred Hochberg, President of the Export-Import Bank (Ex-Im Bank) of the United States (left)

Fred Hochberg, President of the Export-Import Bank (Ex-Im Bank) of the United States and other high-ranking leaders of the bank will pay a visit to Vietnam from February 5-8.

The three-day visit aims to seek opportunities for financial support for US high-quality goods and services in Vietnam.

Accordingly, the delegation of the US finance organization will meet with Vietnam’s trade partners and Government officials to introduce financial support programmes from Ex-Im Bank.

In its strategy, Ex-Im Bank is seeking new markets apart from Vietnam such as Mexico, Brazil, India, Indonesia and South Africa.

The bank is focused on regenerated energy, construction, agricultural machinery, medical technology, and aviation.

In 2011, Ex-Im Bank provided over US$40 billion in financial support for US exports to other countries over the world.

VOVNews