Vietnam News Network

Vietnam News: Local, National, Business, Sport, Entertainment and Technology

Trade XRPUSD, Bitcoin and Cryptocurrencies

BUY & SELL XRPUSD | View XRPUSD News & Updates


Buy Sell XRPUSD, Bitcoin and Cryptocurrencies

Vietnam economy affected by Vinashin’s misfortune   2010-12-27 - Viet Nam Net

Vietnam’s national credit rating degraded. The positions of big banks also degraded in Moody’s or Standard & Poor’s ratings. The plans to issue international bonds of some corporations are affected because of Vinashin scandal.

 

The Chair of an investment fund told VNExpress.net that the Vinashin scandal broke out only recently but the financial circles anticipated it a long time ago.

 

He said in 2008, Vinashin’s international bonds were traded in the market with annual dividend of 24-27 percent, which showed the very high risk. Now because of Vinashin case, Vietnam’s cost for mobilizing international capital (both government and businesses) will rise.

 

Economist Bui Kien Thanh said that banks that issue international bonds will face biggest difficulties. Dividends for their bonds will see high increases because investors see them as more risky.

 

Deputy general director of a big commercial bank noted that Moody’s and Standard & Poor’s credit ratings for some Vietnamese banks like the Bank for Investment and Development of Vietnam (BIDV), Technological and Commercial Bank (Techcombank), Bank for Foreign Trade of Vietnam (Vietcombank) are lower at the request of these banks.

 

He said that their evaluations reflect the common situation of the Vietnamese banking sector, not individual cases.

 

An official from BIDV said that not only banks but also companies which plan to issue international bonds will have to pay more after Vinashin failed to pay international bond debt the first time.

 

Among local businesses which may be affected from the degraded credit rating (mainly due to Vinashin scandal), Hoang Anh Gia Lai group is the first name. This group has just decided to issue $200 million of international bonds.

 

Hoang Anh Gia Lai group’s Chair Doan Nguyen Duc said the group invited a credit rating firm to calculate the costs for the upcoming international capital mobilization.

 

Vinashin scandal not only makes the cost for raising foreign capital of Vietnamese firms increase but also makes the prices for its international bonds higher. An expert said that the dividend for Vinashin bonds in 2009 was 20 percent/year but this year it is over 20 percent.

 

However, experts said that Vinashin scandal doesn’t mean that its bonds can’t be sold or Vietnamese firms can’t raise foreign capital.

 



Other news

Markets skittish over inflation   2010-12-27

Markets skittish over inflation   2010-12-27

Developments spring up on outskirts of town   2010-12-27

Banks fall short of profit targets   2010-12-27

BUSINESS IN BRIEF 27/12   2010-12-27

Rushing to buy cars to avoid higher tax   2010-12-27

Vietnamese goods submerging supermarkets, counterfeit goods flooding traditional markets   2010-12-27

The US investment in Vietnam and the third investment wave   2010-12-26

BUSINESS IN BRIEF 26/12   2010-12-26

Two biggest cities keep one-digit CPI in 2010   2010-12-25

Markets react with indifference to news of double-digit inflation   2010-12-25

Real estate prices too high for most   2010-12-25

Call to upgrade trade agencies   2010-12-25

Bangladesh eyes cement imports from Viet Nam   2010-12-25