Articles worth reading
Image : At least 20 dead, 17 hurt in Ecuador bus crash

At least 20 dead, 17 hurt in Ecuador bus crash

person Orange Themes access_time Jan 14,2017

Yahoo News At least 20 people died and 17 were injured when a school vehicle collided with a bus in southwestern Ecuador, President Rafael Correa said Saturday. "There are 20 people killed... and 17 injured," he said in his weekly address. The

Image : Boko Haram attacks hinder aid delivery in southeastern Niger - agencies

Boko Haram attacks hinder aid delivery in southeastern Niger - agencies

person Orange Themes access_time Dec 01,2016

By Kieran Guilbert DAKAR (Thomson Reuters Foundation) - A spate of attacks by Boko Haram in southeastern Niger in recent months is hindering the delivery of aid to more than 200,000 people forced from their homes, aid agencies said on Thursday.

Latest blog articles

Moody’s: Domestic demand supports Vietnam’s growth outlook

access_time Sep 06,2016 chat_bubble_outline 150 views

Vietnam’s (B1 stable) credit profile is supported by its robust economic growth and diversified economy, according to Moody’s Investors Service.


Moody’s: Domestic demand supports Vietnam’s growth outlook



These credit strengths are balanced against accelerating credit growth, wide fiscal deficits and an increasing government debt burden. At the same time, while the operating environment for the banking sector has stabilised, capital levels remain inadequate and asset quality is still weak.

Moody’s conclusions were mentioned in its just-released annual credit analysis of Government of Vietnam - B1 Stable. The report elaborates on Vietnam’s credit profile in terms of Economic Strength: High (-); Institutional Strength: Low; Fiscal Strength: Low (+); and Susceptibility to Event Risk: High, which are the four main analytic factors under Moody’s Sovereign Bond Rating Methodology.

Over the last two years, GDP growth in Vietnam has picked up to above 6.0%, which stands in contrast to slower growth across much of the region as well as among rating peers. Moody’s forecasts real GDP growth to remain around 6.0% in the next two years.

According to Moody’s, stronger domestic demand has prompted healthier demand for imports. As a result, the current account surplus has declined and Moody’s forecasts a small surplus of 0.6% in 2016. Nevertheless, with the central bank’s new exchange rate mechanism, Moody’s still expects the balance of payments to be in a healthy surplus with a net accretion of foreign exchange reserves.

Fitch: Growth attracts foreign capital for Vietnam banks

On the same day, Fitch Ratings also released a report on Vietnam’s banking sector, saying that Vietnam’s strong economic performance is helping the country attract much-needed foreign capital into its banking system.

According to Fitch, banks are likely to need additional capital as they respond to the phasing-in of Basel II capital adequacy standards by end-2018, while trying to meet demand for rapid credit growth.

GIC, a Singapore sovereign wealth fund, signed a memorandum of understanding on Monday to buy a 7.7% stake in Vietcombank, Vietnam’s largest bank by market capitalisation.

The deal follows the recent purchase of a 5% stake in a much smaller bank, TienPhong Bank, by the International Finance Corporation.

This injection of foreign capital is a positive trend and comes at a time of strong economic growth, which has helped to stabilise asset quality.

“We forecast real GDP growth of 6.2% in both 2016 and 2017. Healthy economic growth plus a recovery in the real estate market are likely to lead to a slower NPL formation, at least in the short term,” Fitch said, adding that liquidity and funding conditions should continue to be supported by local-currency stability and benign inflation.

Fitch’s outlook for the banking sector was revised to stable from negative in December 2015 to reflect these conditions.

Nevertheless, Vietnam’s banks are still facing a range of structural problems, not least of which is weak capitalisation. Published capital-adequacy ratios (CAR) are low and under-reporting of NPLs suggests that true capitalisation is even weaker. Capital buffers are likely to come under pressure over the next couple of years.

Ten banks have been designated by the central bank to move to Basel II, with full adoption expected by end-2018, and Fitch believes that the banks’ CARs would be pushed lower by the shift to a more conservative regime.

Those banks with CARs close to the 9% regulatory minimum will need more capital. Vietcombank, for example, had a CAR of just 9.7% under the Basel I regime at end-June 2016 and Basel II is likely to have been one of the key motivations for its deal with GIC.

Rapid credit growth is also creating a need for more capital. Private-sector credit grew by an average of 16.4% per year during 2010-14 and rose by 17.3% in 2015. Another pick-up is likely in 2016, with the official target for the year set at 18-20%.

Fitch warned that rapid credit growth poses a risk to Vietnam’s medium-term financial stability, particularly since the credit/GDP ratio - at 110.5% in 2015.

A sustained rise in foreign appetite for Vietnam’s bank equity would be a positive development because the banking sector has significant recapitalisation needs, Fitch said.

VNS

The Latest at CES: What should brands do with shopping data?

LAS VEGAS (AP) -- The Latest at CES gadget show in Las Vegas (all times local):10:15 a.m.Retailers and brands are collecting a lot of data on their shoppers. But how should they use that knowledge to sell more stuff?Jamie Gutfreund, global chief marketing officer at ad agency Wunderman, says retailers need to look beyond making a hard sell and find ways to make shoppers feel special.Gutfreund spoke at a panel Thursday on how retailers and brands should navigate a changing landscape. It's part… chat_bubble_outline Read More...

Coal piles up as VN firms prefer imports

VietNamNet Bridge – According to statistics from the General Customs Department, as of December 15 Viet Nam had imported a total 13 million tonnes of coal worth US$860 million during the year, more than four times the targeted 3 million tonnes. Why did coal purchases increase so sharply?Market observers said global coal prices fell strongly due to a sharp fall in demand caused by the prolonged economic downturn and general switch to less polluting fuel.But coal production in many countries… chat_bubble_outline Read More...

UN chief Ban Ki-moon bids colleagues, staff farewell

UNITED NATIONS (AP) — Ban Ki-Moon joked to hundreds of diplomats and U.N. staff as he left United Nations headquarters Friday for the last time as secretary-general that he feels "like Cinderella — tomorrow at midnight, everything changes."Flanked by the presidents of the General Assembly and the Security Council, the native South Korean thanked U.N. workers for their hard work and commitment over the course of his 10-year tenure, which ends at midnight Dec. 31."Tomorrow night on the eve of the… chat_bubble_outline Read More...

Haiti council says presidential vote redo to be held Nov. 20

PORT-AU-PRINCE, Haiti (AP) — Authorities in Haiti have issued a new timetable for the country's repeatedly postponed presidential election.The Provisional Electoral Council announced Friday that Haiti's presidential vote will be held on Nov. 20. A second round would be held Jan. 29.There were 27 candidates vying to lead Haiti for the next five years in an election redo set for Oct. 9. But balloting was suspended due to the destructive passage of Hurricane Matthew.Council chief Leopold Berlanger… chat_bubble_outline Read More...

NATO chief urges West to keep pressuring Russia over Ukraine

BRUSSELS (AP) — NATO Secretary General Jens Stoltenberg is urging Western allies to maintain diplomatic pressure and sanctions on Russia until it respects the peace agreement in Ukraine.After talks with NATO and Ukraine foreign ministers, Stoltenberg told reporters Wednesday of a "massive increase in cease-fire violations" in the conflict-torn east of the former Soviet republic. He said hundreds of explosions are sometimes reported daily, including many caused by heavy weapons banned under the… chat_bubble_outline Read More...

folder_open Assigned tags

Comments

Loading...

Trends in Singapore

Trends in Indonesia

Trends in Philippin