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VIB to announce dividend payment plans at its upcoming AGM

After six years of implementing strong and extensive strategic transformation, Vietnam International Bank (VIB) has marked important milestones in its journey to becoming the leading retail bank in Vietnam.

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Average profit growth of 57 per cent/year

VIB's annual profit growth, 2016-2022.
VIB’s annual profit growth, 2016-2022. Photo from VIR.

The intense focus on retail banking has helped VIB create a scale advantage. The business models of auto loans, home loans and credit cards showed their effectiveness, allowing the bank to gain a leading market share in many retail segments.

A customer-centric strategy has helped VIB attract and serve over four million customers and increase customer engagement.

The positive business results from 2022 contributed to the overall efficiency in the six years of transformation (2017-2022), making VIB one of the leading banks in asset size growth, revenue growth, effective cost management and tight risk control. VIB’s profit has grown at a compound annual growth rate of 57 per cent per year over the past six years.

A leader in scale growth

VIB's growth rate compared to the Top 10 listed banks, 2017-2022.
VIB’s growth rate compared to the Top 10 listed banks, 2017-2022. Photo from VIR.

With Vietnam’s economy among the most dynamic in the world, the substantial increase in demand for investment and financial services in recent years has created conditions for retail banks such as VIB to maintain a positive growth rate in the past six years and into the future.

Sustainable business performance

VIB's business performance compared to the Top 10 listed banks, 2017-2022.
VIB’s business performance compared to the Top 10 listed banks, 2017-2022. Photo from VIR.

VIB has recorded its return on equity (ROE) ratio at over 30 per cent for three consecutive years thanks to its focus on retail and effective operating model.

Attractive dividend payout ratio

VIB's dividend payout, 2017-2022.
VIB’s dividend payout, 2017-2022. Photo from VIR.

With its ROE among the market’s highest, VIB maintained the highest dividend payout ratio at 40 per cent in 2020, and 35 per cent in 2021. The bank is expected to pay dividends at 35 per cent in 2022.

The bank’s Board of Directors has proposed that the 2022 dividend be paid 15 per cent in cash and 20 per cent in shares. VIB’s leaders expect a dividend policy to be developed so that the bank can pay annual cash dividends to shareholders starting in 2023.

The bank with the lowest concentration risk in the market

VIB's outstanding balance, 2017-2022.
VIB’s outstanding balance, 2017-2022. Photo from VIR.

VIB’s outstanding retail loans account for up to 90 per cent of its total loan portfolio. Of the total, up to 91 per cent of loans are secured by assets, while the remainder is mainly credit card loans. Meanwhile, the outstanding balance of corporate bonds equals less than 1 per cent of the bank’s total credit balance.

As a result, for five consecutive years, the ratio of provision expenses to VIB’s outstanding loans was only 30-50 per cent of the average of other Top 10 listed banks. This is considered one of the crucial factors that have helped VIB achieve profitability and a high ROE ratio.

Ranked No.1 across several metrics

 

VIB has been ranked by the State Bank to be the top bank when it comes to capital, profit, asset quality, liquidity quality and sensitivity management criteria.

A pioneer in card and technology trends

 
Vie, VIB's AI virtual financial expert.
Vie, VIB’s AI virtual financial expert. Photo from VIR.

Continuing sustainable growth momentum in 2023

VIB has marked essential milestones on its journey to becoming the leading retail bank in Vietnam during the first six years of its 10-year strategic transformation period from 2017 to 2026.

 

In a document sent to the AGM, VIB’s Board of Directors outlined the goals for the five-year period from 2022 to 2026, including attracting 10 million customers and achieving an annual compound growth rate of 20-30 per cent each year, thereby sustainably increasing market capitalisation for shareholders.

VIB leaders said they believed the bank would achieve its objectives for 2023 and complete the 10-year transformation goal thanks to its creativity and persistence in large-scale transformation activities, excellent operating model, advanced corporate culture, and its staff’s capability and enthusiasm.

Source: VIR

Source: https://e.nhipcaudautu.vn/companies/vib-to-announce-dividend-payment-plans-at-its-upcoming-agm-3351185/

Business

Vietnam climbs to 10th on emerging global markets index

Vietnam has been ranked 10th out of the world’s top emerging markets in 2023 with regards to overall competitiveness by Agility, a global leader in supply chain services, infrastructure and innovation.

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In Southeast Asia, Vietnam is behind Malaysia, Indonesia and Thailand, but ahead of the Philippines, Myanmar and Cambodia. China and India were first and second in the overall rankings.

Vietnam ranked 11th in 2022. The index ranks countries for overall competitiveness based on their logistics strengths, business climates and digital readiness, factors that make them attractive to logistics providers, freight forwarders, air and ocean carriers, distributors and investors.

According to Agility, nearly 70% of global logistics executives say they are bracing for a recession amid higher costs, slowing demand, and ongoing supply chain disruption arising from China’s battle to contain Covid-19, Russia’s war in Ukraine, and the impact of climate change.

Ninety percent of the 750 industry professionals surveyed for the 2023 Agility Emerging Markets Logistics Index also said their shipping, storage and other logistics costs remain well above pre-pandemic levels of early 2020.

“Carriers and shippers are feeling the effects of higher energy prices, tight labor markets and broader inflation even though freight rates have fallen and ports have cleared cargo backlogs,” said Agility vice chairman Tarek Sultan.

“Three years after the start of the pandemic, there is still a lot of volatility in supply chains. Now there’s fresh uncertainty as consumers and businesses pull back on spending and hiring,” he added.

In mid-March, the World Bank said that Vietnam’s economic expansion might ease to 6.3% in 2023 from a robust 8% last year, reflecting domestic and external headwinds.

“Vietnam has the fiscal space to implement measures to boost growth, unlike many other countries,” said Carolyn Turk, World Bank country director for Vietnam.

“Effective implementation of priority public investments is key to support growth, both in the short-term and in the longer term. Also, fiscal and monetary policies must be synchronized to ensure that support to the economy and macroeconomic stability are achieved effectively,” she added.

Source: The Investor

Source: https://e.nhipcaudautu.vn/economy/vietnam-climbs-to-10th-on-emerging-global-markets-index-3351497/

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Hoa Phat Group eyes diversification with urban development

Steel giant Hoa Phat Group wants to build several major urban areas 300-500 hectares in size in the next 10 years as part of its diversification plans.

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The company is looking for potential locations, it said in a recent report.

Last year its subsidiaries bid for construction of projects in the northern provinces of Hung Yen, Phu Tho and Bac Giang.

One of them is the 262-hectare Bac Pho Noi Urban Area in Hung Yen with malls, offices, apartment buildings, and villas.

The first phase of the project is set to cost VND6.5 trillion ($276.30 million), and basic infrastructure is now complete.

Though Hoa Phat has been involved in property development for 21 years, its activities were mostly in Hung Yen and Ha Nam Provinces and involved a total area of 1,100 hectares.

It also has four small apartment projects in Hanoi.

Last year property, mostly industrial complexes, fetched it revenues of VND1.43 trillion, or 1% of its total revenues, and 3% of its profits.

It plans to expand its Yen My 2 industrial complex in Hung Yen this year, and have a total of 10 industrial complexes within a decade.

Source: VnExpress

Source: https://e.nhipcaudautu.vn/companies/hoa-phat-group-eyes-diversification-with-urban-development-3351524/

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Northern Vietnamese province exports first fresh sugarcane batch to US

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Hoa Binh Province in northern Vietnam on Sunday held a ceremony to ship the first batch of fresh sugarcane totaling 17.3 metric tons stateside after six months of negotiations.

The provincial Department of Agriculture and Rural Development on Monday said it joined hands with the People’s Committee of Lac Son District and companies to hold the ceremony.

With the support of the Plant Protection Department under the provincial Department of Agriculture and Rural Development, local firms have met U.S. technical requirements.

The fresh sugarcane was collected, processed and packaged by Tien Ngan Trading Investment Co. Ltd.. Apart from the sugarcane, 10 sugarcane juicers were also sent stateside.

Speaking at the ceremony, vice-chairman of the Hoa Binh People’s Committee Dinh Cong Su expected the province to improve its initial achievements to expand the markets for many other agricultural products.

The export of sugarcane to foreign markets and the expansion of production will contribute to the development of the province’s sugarcane sector, Su said.

According to director of the provincial Department of Agriculture and Rural Development Nguyen Huy Nhuan, sugarcane holds high potential for export. 

Over the past few years, Tien Ngan Trading Investment Co. Ltd. has shipped nearly 100 metric tons of sugarcane to the European Union and South Korea.

The provincial Department of Agriculture and Rural Development will continue to create the most favorable conditions for local enterprises trading agricultural products to expand their markets, Nhuan added.

According to a report by the department, Hoa Binh exported its first 120 kilograms of sugarcane to Japan in 2019. 

The volume has increased sharply since then to reach 5.7 metric tons in 2020, 74 metric tons in 2021, and 300 metric tons last year.

In addition to Japan, the product has been supplied to South Korea, the United Kingdom, and the European Union.

More fresh sugarcane batches will be exported to South Korea this month.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Hoa Binh Province in northern Vietnam on Sunday held a ceremony to ship the first batch of fresh sugarcane totaling 17.3 metric tons stateside after six months of negotiations.

The provincial Department of Agriculture and Rural Development on Monday said it joined hands with the People’s Committee of Lac Son District and companies to hold the ceremony.

With the support of the Plant Protection Department under the provincial Department of Agriculture and Rural Development, local firms have met U.S. technical requirements.

The fresh sugarcane was collected, processed and packaged by Tien Ngan Trading Investment Co. Ltd.. Apart from the sugarcane, 10 sugarcane juicers were also sent stateside.

Speaking at the ceremony, vice-chairman of the Hoa Binh People’s Committee Dinh Cong Su expected the province to improve its initial achievements to expand the markets for many other agricultural products.

The export of sugarcane to foreign markets and the expansion of production will contribute to the development of the province’s sugarcane sector, Su said.

According to director of the provincial Department of Agriculture and Rural Development Nguyen Huy Nhuan, sugarcane holds high potential for export. 

Over the past few years, Tien Ngan Trading Investment Co. Ltd. has shipped nearly 100 metric tons of sugarcane to the European Union and South Korea.

The provincial Department of Agriculture and Rural Development will continue to create the most favorable conditions for local enterprises trading agricultural products to expand their markets, Nhuan added.

According to a report by the department, Hoa Binh exported its first 120 kilograms of sugarcane to Japan in 2019. 

The volume has increased sharply since then to reach 5.7 metric tons in 2020, 74 metric tons in 2021, and 300 metric tons last year.

In addition to Japan, the product has been supplied to South Korea, the United Kingdom, and the European Union.

More fresh sugarcane batches will be exported to South Korea this month.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20230321/northern-vietnamese-province-exports-first-fresh-sugarcane-batch-to-us/72180.html

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