Vietnam to limit 2008 loan growth to 30 pct-report

Vietnam to limit 2008 loan growth to 30 pct-report

Vietnam's central bank aims to limit growth in bank loans to 30 percent in 2008 after a jump of 37.8 percent last year, the official Hanoi Moi newspaper reported on Wednesday.

Bad debt in the banking sector was cut to 2 percent of loans by the end of 2007 from 2.65 percent a year earlier, it said, citing central bank figures released at an industry meeting on Wednesday. The central bank, the State Bank of Vietnam, said it wanted to slow down lending to help ensure a sustainable pace of economic growth and to control inflation, which hit 12.63 percent in December, the highest since December 1995. In a statement issued on Tuesday, the central bank said its monetary policy this year would aim to keep exchange rates stable and help control inflation. The non-convertible Vietnamese dong eased just 0.08 percent last year against the dollar, after a fall of 1.4 percent in 2006. The government aims for 9 percent economic growth this year after an 8.48 percent expansion in 2007, the highest in just over a decade. (Thanh Nien news)

Hanoi property market to remain overheated in 2008: experts

Hanoi property market to remain overheated in 2008: experts

People standing in a queue to buy apartments in HCMC late last year Following a year-end surge in property prices in Hanoi, analysts are bullish on the sector in 2008.

Heavy speculation in the last few weeks of last year saw land prices shooting up, even doubling in some areas compared with 2006 prices. Le Xuan Truong of property agency BDS said prices would trend upward for “at least the next two years”. Dang Hung Vo, former deputy minister of natural resources and environment, feared that the speculation in property this year would be much worse than in 2006. He said money supply was increasing and going mainly into real estate. “The high inflation rate will also see investors opt for gold and land,” he added. The price of a square meter at the luxury apartment block The Manor in downtown Hanoi is around US$1,900-2,200, double the price that the builder sold it for last year. Heavy buying near construction projects in residential areas in Ha Tay, Vinh Phuc, and Bac Ninh provinces saw land prices rise sharply in the last two weeks. Analysts said besides the two percent capital gains tax on property that takes effect next year, the Ministry of Finance was not planning to slap any other tax on property transactions despite the prime minister's order. Vo said only taxes could put an end to the speculation and restore calm in the market. Reported by Tuyet Nhung (Thanh Nien News)

Local lenders battle to recruit staff

Local lenders battle to recruit staff

New banks and operational lenders’ branches have caused a huge demand for qualified staff, industry sources said.

“The number of employees in Ho Chi Minh City-based banks was about 14,000 in 2006. Last year’s [2007] figure was 2-3 times higher as around 1,000 bank branches were put into operation,” the State Bank of Vietnam, HCMC branch director Ho Huu Hanh said. At present, there are five state-owned banks, 34 joint-stock, five joint-venture, and 34 branches of foreign lenders. But the central bank has reportedly approved the establishment of four new lenders, FPT, Bao Viet, Lien Viet, and PetroVietnam, some sources said. One of the four was reportedly recruiting a chief executive with a monthly salary of US$15,000. Similarly, despite not being operational, Vietnam Industry Bank was seeking a chief executive with a monthly salary of VND100 million ($6,257), an official of the central bank revealed. Nguyen Quoc Sy, vice chief executive of the newly-founded Western Bank in HCMC, said, “Local lenders have been in a battle for employees since last year. There is a shortage of high-position staff and even regular employees. “Until recently the director of a local bank’s branch was required to be at least 40 years old. But the requirement has been reduced to 30 due to the lack of qualified employees, creating chances for young people.” Sy said salaries and bonuses were crucial factors to keeping staff. “Salaries and bonuses for people working in the banking sector are increasing the fastest compared with other fields,” he added. Reported by Thanh Xuan