[Update] Vietnam on Bloomberg, Reuters, WSJ

IMF Says Vietnam Should Focus on Inflation Over Rate Reductions

By Bloomberg News - Jun 4, 2012 6:01 PM GMT+0700

Vietnam’s central bank should prioritize containing inflation and be cautious about lowering interest rates further after reductions in the past three months, the International Monetary Fund said.

The government should focus on economic stability even if it means accepting “somewhat slower growth,” Sanjay Kalra, the IMF’s resident representative for the country, said in a statement today. Vietnam has a history of loosening monetary policy prematurely, and the rate cuts may cause price pressures to re-emerge in as little as three months, the World Bank said separately today.

Vietnam cut interest rates last week for the third straight month as policy makers stepped up efforts to bolster a struggling economy after inflation eased to the lowest since 2010. The economy expanded 4 percent in the first quarter, the slowest since 2009, and growth in the current three-month period may be as low as 4.4 percent, Deputy Minister of Planning & Investment Cao Viet Sinh said today.

“Risks to the outlook for 2012 include a loss of market confidence in the government’s policy orientation,” Kalra said at a conference in the central Vietnamese town of Dong Ha. “Government policies need to credibly prioritize stability.”

The central bank cut its refinancing rate to 12 percent from 15 percent between March and May and reduced its repurchase rate to 11 percent from 14 percent over the same period. Inflation slowed to 8.34 percent in May after reaching 23 percent last year, the fastest in Asia.

Inflation may ease to as low as 5 percent next quarter and range between 6 percent and 8 percent by the end of the year, according to a JPMorgan Chase & Co. report today. The central bank’s policy rates may be cut by as much as 300 basis points by the end of the third quarter, JPMorgan economists estimate.
While the three rate cuts came “earlier than expected for most market participants,” inflation has also slowed more rapidly than had been anticipated, the IMF said.
The State Bank of Vietnam will “steer interest rates on a declining path,” and may eliminate a rate cap on dong deposits, central bank Deputy Governor Le Minh Hung said in a statement distributed at the conference today. Inflation is “expected to be under control,” he said.

--Jason Folkmanis and Nguyen Dieu Tu Uyen in Dong Ha, Vietnam. Editors: Shamim Adam, Rina Chandran
To contact Bloomberg News staff for this story: Jason Folkmanis in Dong Ha, Vietnam at fo***@bloomberg.net; Nguyen Dieu Tu Uyen in Dong Ha, Vietnam at uy***@bloomberg.net
To contact the editor responsible for this story: Stephanie Phang at sp***@bloomberg.net

Vietnam’s PV Oil Said to Sell Bach Ho Oil to Petrobras, Arcadia

By Ramsey Al-Rikabi - Jun 4, 2012 3:43 PM GMT+0700

PV Oil Corp., Vietnam’s state-run oil-marketing company, sold as much as 900,000 barrels of Bach Ho crude loading to Arcadia Petroleum Ltd. and Petroleo Brasileiro SA, or Petrobras (PETR4), said two people with knowledge of the deal, declining to be identified because the information is confidential.

Additional cargoes were sold to unknown buyers, they said. Petrobras paid a premium of about $3.80 to $4 a barrel more than benchmark Minas crude, one of the traders said.

Details of the deal are as follows:

------------------------------------------------------------
Crude:       Bach Ho (Vietnam)
Buyers:      Petrobras, 300,000 barrels for June
             Arcadia, 600,000 barrels for July
Seller:      PV Oil
------------------------------------------------------------

To contact the reporter on this story: Ramsey Al-Rikabi in Singapore at ra***@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at ak***@bloomberg.net

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Vietnam Sells More Bach Ho; Dubai Oil Strengthens: Asia Crude
By Ramsey Al-Rikabi - Jun 4, 2012 5:19 PM GMT+0700
Vietnam’s PV Oil sold as much as 900,000 barrels of its Bach Ho crude for June and July loading in the second round of deals following the closing of the country’s only refinery.

The company sold 300,000 barrels to Petroleo Brasileiro SA, known as Petrobras (PETR4), and 600,000 barrels to Arcadia Petroleum Ltd., according to two traders who participate in the market. They declined to be identified because the information is confidential.

Brazil’s Petrobras paid a premium of about $3.80 to $4 a barrel more than benchmark Minas crude for a cargo loading around June 20, one of the traders said. That compares with 800,000 barrels of Bach Ho crude for July, which sold at a premium of about $6 a barrel to benchmark Minas oil.

PV Oil’s parent company, Vietnam Oil & Gas Group, shut the 131,000-barrel-a day Dung Quat oil refinery on May 15 until about June 15. Most of the oil processed at facility is Bach Ho.

Russia’s TNK-BP offered to sell 100,000 metric tons of East Siberia-Pacific Ocean crude, or ESPO, for loading July 13 to July 18, said two traders who participate in the market, declining to be identified because the information is confidential. The offer closes today.

PT Pertamina, Indonesia’s state-owned oil company, offered to sell 145,000 barrels of Geragai condensate for loading in July, according to a tender document obtained by Bloomberg News. Bids close June 7.
Dubai Timespreads

Dubai crude’s backwardation, when prices for prompt supplies are greater than future delivery, rose 1 cent. Swaps for July were $1.33 cents a barrel more than September, according to data from PVM Oil Associates Ltd., a London-based broker.

The difference between oil delivered in one month compared with three months, known as the timespread, has widened 21 percent during the last month from $1.10 on May 4, a sign that demand from refiners is increasing.

The July Brent-Dubai exchange for swaps, which measures the European marker grade’s premium against the Middle Eastern oil, dropped 7 cents to $2.90 a barrel, according to data from PVM. The August EFS was down 14 cents to $2.89.

Oman for July delivery slid $3.53 to $95.18 a barrel at 12:30 p.m. on the Dubai Mercantile Exchange.

Eight Dubai partial cargoes were sold today, according to a survey of traders who monitor the Platts pricing window. Royal Dutch Shell Plc was the only buyer, paying $95.15 a barrel for four 25,000-barrel lots from Phibro LLC, two from Glencore International Plc and one from Mercuria Energy Trading SA. Shell bought the eighth from Mercuria at $95.10.

To contact the reporter on this story: Ramsey Al-Rikabi in Singapore at ra***@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at ak***@bloomberg.net

PRESS DIGEST - Vietnam newspapers - June 5

HANOI, June 5 | Mon Jun 4, 2012 10:07pm EDT

(Reuters) - These are some of the leading stories in the official Vietnamese press on Tuesday. Reuters has not verified these stories and does not vouch for their accuracy.

FINANCIAL NEWS:

SAIGON GIAI PHONG

• State-run Agribank, Vietnam's largest lender by assets, said it will extend a 10 trillion dong ($478.8 million) lending package to support the export sector, with an annualised interest rate of 12 percent for a six-month loan, the lowest rate in the domestic market now.

ECONOMIC AND GENERAL NEWS:

VIETNAM NEWS

• Vietnam's consumer price index in June is forecast to edge up between 0.1 percent and 0.2 percent from May, the Industry and Trade Ministry's market management board said.

QUAN DOI NHAN DAN

• Vietnamese and Danish officials are investigating after Demark reported irregulari-ties in the use of official development assistance funds from Denmark in several Vietnam projects, Foreign Minister Pham Binh Minh said.

HANOI MOI

• Vietnam's economy is expected to grow 4.5-4.6 percent in the second quarter from a year ago, making it hard to achieve an annual target of 6.0-6.5 percent, the Planning and Investment Ministry said.

LAO DONG

• Nearly 172,000 people had registered for unemployment insurance in the first four months of 2012, up 70 percent from the same period last year, the Labour Ministry said.

($1 = 20885.0000 Vietnam dong)

(Reporting by Hanoi Newsroom; Editing by Gopakumar Warrier)

PRESS DIGEST - Vietnam newspapers - June 6

HANOI, June 6 | Tue Jun 5, 2012 9:57pm EDT

(Reuters) - These are some of the leading stories in the official Vietnamese press on Wednesday. Reuters has not verified these stories and does not vouch for their accuracy.

FINANCIAL NEWS:

VIETNAM NEWS

• The Vietnamese dong fell to below 21,000 per dollar on Tuesday as banks were buying the foreign currency to balance previous oversales while some companies also sought to buy the U.S. currency for debt repayments, bankers said.

ECONOMIC AND GENERAL NEWS:

VIETNAM NEWS

• Vietnam is currently listed among the countries facing water shortages, with the average amount of water use at 3,850 cubic metres per person per year, below the sufficient level of 4,000 cubic metres, the Food and Agriculture Organisation said.

TUOI TRE

• While the debt ratio in Vietnam is currently under control, the risk is high for debt obligation in state-owned enterprises and the financial sector, the World Bank said in a report to the mid-term Consultative Group meeting on Tuesday.

THANH NIEN

• Ho Chi Minh City would need 46 trillion dong ($2.2 billion) to build four elevated roads to help ease traffic, with funds for site clearance totalling 15 trillion dong, the city's Transport Service said in a report to the municipal government.

(Reporting by Hanoi Newsroom; Editing by Gopakumar Warrier)

Vietnam 5-Year Bonds Gain as Interbank Rates Slide; Dong Weakens

By Bloomberg News - Jun 6, 2012 2:19 PM GMT+0700

Vietnam’s benchmark five-year bonds rose for a fifth day on speculation falling money-market rates are boosting demand for government debt. The dong weakened.

The overnight interbank deposit rate declined 15 basis points to 1.22 percent, the lowest level since June 2009 when Bloomberg started compiling the data. The measure, which was at 11.81 percent at the end of 2011, has fallen more than 300 basis points in the last month.

“Liquidity in the money market is good, supporting the trend lower,” said Tran Kieu Hung, a Hanoi-based fixed-income trader at Bank for Investment & Development of Vietnam.

Five-year bond yields fell two basis points, or 0.02 percentage point, to 9.53 percent, according to a daily fixing rate from banks compiled by Bloomberg. That’s the lowest since May 21.

The dong dropped 0.3 percent to 21,005 per dollar as of 2:11 p.m. in Hanoi, according to data compiled by Bloomberg. The State Bank of Vietnam set its reference rate at 20,828, unchanged since Dec. 26, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate.

To contact the reporter on this story: Nick Heath in Hanoi at nh***@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at sh***@bloomberg.net

Vietnamese stocks rise, eyes on macro data, earnings

(Updates with market close, foreigner trading, comments)

HANOI, June 6 (Reuters) - Vietnamese stocks closed up on Wednesday on speculations of a cut in fuel prices and interest rates, while investors were waiting for details on the country's economic growth and corporate earnings, a broker and an analysts said.

Foreigners sold 80.85 billion dong ($3.85 million) worth of stocks and bought shares valued at 33.27 billion dong on the Ho Chi Minh Stock Exchange, the exchange said.

VN INDEX

Up 1.28 percent at 426.39 points.

Volume of shares traded: 91.50 million.

Value of shares traded: 1.75 trillion dong.

Largest gainers , largest losers

HNX INDEX

Up 0.27 percent at 73.78 points.

Volume of shares traded: 36.07 million.

Value of shares traded: 349.64 billion dong.

Largest gainers , largest losers

Analyst comments

Chau Thien Truc Quynh, head of retail brokerage, Viet Capital Securities:

"The stock market gained due to speculations of a fuel price cut and interest rate slashing plus a rise on global markets.

"Trading volume rose steeply, mainly due to put-through transaction value of Sacombank . This was a positive signal that helped improve the sentiment.

"The gain is unsustainable and the market may continue moving sideways to consolidate from now until the end of this month, waiting for quarterly earnings and positive macro news."

Doan Thi Anh Nguyet, analyst, Saigon-Hanoi Securities:

"The market rose as investors bought on dips around the Fi-bonacci 50 percent level after a sharp fall from the peaks set in May at 490 points on HOSE (the main market) and 88-90 points in the Hanoi exchange.

"The bottom-fishing also came from the government's bold moves and a credit growth rate picking up.

"Supply of cheap goods has dried up. Investors are expecting clear signals from macro-economy and aggregate demand."

($1=20,980 dong)

(Reporting by Vu Duy; Editing by Ho Binh Minh and Anand Basu)

((Hanoi newsroom)(+844 xxxx-xxxx)(email: du***@thomsonreuters.com))

Keywords: MARKETS VIETNAM STOCKS/

(C) Reuters 2012. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters.

TEXT-S&P ratings

TEXT-S&P:Vinacomin rtg unaffected by sovereign rtg action

Wed Jun 6, 2012 6:10am EDT

(The following statement was released by the rating agency)

June 06 - Standard & Poor's Ratings Services said today that its rating and outlook on Vietnam National Coal and Mineral Industries Holding Corp. Ltd. (Vinacomin; BB-/Negative/--) are not affected by the sovereign rating action on Vietnam (BB-/Stable/B; axBB+/axB). Standard & Poor's recently revised the sovereign rating outlook to stable from negative.

We are not revising the outlook on Vinacomin because the rating and outlook on the company primarily reflect its stand-alone credit profile of 'bb-'. We believe there is a "low" likelihood of extraordinary government support in the event of financial distress, as defined in our criteria for rating government-related entities. Our view is based on the "limited" importance Vinacomin's creditworthiness represents to the government.

We continue to believe there is a one in three chance the rating on Vinacomin could be lowered in the next 12 months if the company's operating cash flows weaken because of increasing domestic sales at government-regulated prices. Vinacomin will have to rely more on debt to fund its significant capital expenditure program if cash flows weaken. This could lead the company's credit protection measures or liquidity to deteriorate. A debt-to-EBITDA ratio of more than 4x on a sustained basis would indicate such deterioration.

RELATED CRITERIA AND RESEARCH

-- Vietnam Outlook Revised To Stable From Negative; 'BB-/B' Sovereign Ratings Affirmed, June 6, 2012

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TEXT-S&P ratings - Vietnam (Socialist Republic of)

(The following statement was released by the rating agency)

June 06 -

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Ratings -- Vietnam (Socialist Republic of) ------------------------ 06-Jun-2012

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CREDIT RATING: BB-/Stable/B Country: Vietnam

Primary SIC: Sovereign

Mult. CUSIP6: 92670L

Mult. CUSIP6: Y9374Q

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Credit Rating History:

Local currency Foreign currency

19-Aug-2011 BB-/B BB-/B

23-Dec-2010 BB/B BB-/B

---

Issues:

Rating Rating Date

US$228.243 mil step up Brady's Bond bnds due

03/12/2028 BB- 23-Dec-2010

US$290.1 mil step up brady bnds due 03/14/2016 BB- 23-Dec-2010

US$24.552 mil fltg rate brady bnds due

03/13/2028 BB- 23-Dec-2010

US$750 mil 6.875% bnds due 01/15/2016 BB- 23-Dec-2010

VND500 bil 7.15% bnds due 06/13/2012 BB- 19-Aug-2011

VND100 bil 9.15% bnds due 06/20/2012 BB- 19-Aug-2011

VND500 bil 7.25% bnds due 06/27/2012 BB- 19-Aug-2011

VND500 bil 7.35% bnds due 07/04/2012 BB- 19-Aug-2011

VND600 bil 7.40% bnds due 07/11/2012 BB- 19-Aug-2011

VND400 bil 7.38% bnds due 07/16/2012 BB- 19-Aug-2011

VND1.57 tri 7.42% bnds due 07/24/2012 BB- 19-Aug-2011

VND400 bil 7.40% bnds due 07/30/2012 BB- 19-Aug-2011

VND200 bil 7.45% bnds due 08/14/2012 BB- 19-Aug-2011

VND100 bil 7.80% bnds due 09/07/2012 BB- 19-Aug-2011

VND100 bil 8.80% bnds due 10/01/2012 BB- 19-Aug-2011

VND500 bil 7.90% bnds due 10/16/2012 BB- 19-Aug-2011

VND935 bil 7.85% bnds due 10/19/2012 BB- 19-Aug-2011

VND700 bil 7.86% bnds due 10/23/2012 BB- 19-Aug-2011

VND800 bil 7.87% bnds due 10/31/2012 BB- 19-Aug-2011

VND400 bil 8.00% bnds due 11/07/2012 BB- 19-Aug-2011

VND1.2 tri 8.30% bnds due 11/14/2012 BB- 19-Aug-2011

VND100 bil 8.30% bnds due 11/20/2012 BB- 19-Aug-2011

VND100 bil 8.50% bnds due 11/28/2012 BB- 19-Aug-2011

VND50 bil 8.55% bnds due 10/04/2013 BB- 19-Aug-2011

VND200 bil 8.55% bnds due 11/01/2013 BB- 19-Aug-2011

VND200 bil 8.36% bnds due 12/13/2013 BB- 19-Aug-2011

VND700 bil 7.04% bnds due 03/21/2014 BB- 19-Aug-2011

VND500 bil 7.20% bnds due 04/04/2014 BB- 19-Aug-2011

ND700 bil 7.30% bnds due 04/18/2014 BB- 19-Aug-2011

VND100 bil 8.80% bnds due 03/18/2015 BB- 19-Aug-2011

VND50 bil 8.80% bnds due 04/13/2015 BB- 19-Aug-2011

VND160 bil 8.95% bnds due 03/28/2016 BB- 19-Aug-2011

VND105 bil 9.10% bnds due 05/17/2020 BB- 19-Aug-2011

VND100 bil 9.20% bnds due 06/15/2020 BB- 19-Aug-2011

VND90 bil 9.20% bnds due 06/30/2020 BB- 19-Aug-2011

VND50 bil 9.25% bnds due 08/25/2020 BB- 19-Aug-2011

VND50 bil 9.25% bnds due 09/08/2020 BB- 19-Aug-2011

VND200 bil 9.25% bnds due 12/21/2020 BB- 19-Aug-2011

VND130 bil 9.25% bnds due 03/09/2021 BB- 19-Aug-2011

VND300 bil 9.25% bnds due 04/05/2021 BB- 19-Aug-2011

VND100 bil 9.25% bnds due 04/06/2021 BB- 19-Aug-2011

VND80 bil 9.25% bnds due 04/18/2021 BB- 19-Aug-2011

VND50 bil 9.25% bnds due 07/17/2021 BB- 19-Aug-2011

VND500 bil 9.25% bnds due 07/31/2021 BB- 19-Aug-2011

VND30 bil 8.90% bnds due 09/12/2021 BB- 19-Aug-2011

VND100 bil 8.50% bnds due 10/06/2021 BB- 19-Aug-2011

VND250 bil 9.00% bnds due 10/13/2021 BB- 19-Aug-2011

VND25 bil 9.00% bnds due 10/17/2021 BB- 19-Aug-2011

VND100 bil 9.00% bnds due 10/18/2021 BB- 19-Aug-2011

VND100 bil 9.00% bnds due 11/15/2021 BB- 19-Aug-2011

VND100 bil 9.00% bnds due 11/28/2021 BB- 19-Aug-2011

VND150 bil 9.00% bnds due 11/30/2021 BB- 19-Aug-2011

VND150 bil 9.00% bnds due 12/12/2021 BB- 19-Aug-2011

VND200 bil 9.00% bnds due 01/17/2022 BB- 19-Aug-2011

VND430 bil 8.70% bnds due 12/05/2012 BB- 19-Aug-2011

VND700 bil 8.70% bnds due 12/12/2012 BB- 19-Aug-2011

VND700 bil 8.68% bnds due 12/18/2012 BB- 19-Aug-2011

VND2.6 tri 8.65% bnds due 12/19/2012 BB- 19-Aug-2011

VND700 bil 8.65% bnds due 12/26/2012 BB- 19-Aug-2011

VND1.5 tri 8.68% bnds due 12/26/2012 BB- 19-Aug-2011

VND250 bil 8.50% bnds due 01/15/2013 BB- 19-Aug-2011

VND1.05 tri 8.50% bnds due 01/17/2013 BB- 19-Aug-2011

VND400 bil 8.50% bnds due 01/29/2013 BB- 19-Aug-2011

VND250 bil 8.50% bnds due 01/31/2013 BB- 19-Aug-2011

VND80 bil 8.50% bnds due 02/21/2013 BB- 19-Aug-2011

VND55 bil 16.00% bnds due 08/12/2013 BB- 19-Aug-2011

VND300 bil 14.20% bnds due 10/29/2013 BB- 19-Aug-2011

US$1 bil 6.75% 10-year benchmark size global

bnds due 01/29/2020 BB- 23-Dec-2010

VND20 mil 11.50% bnds due 04/27/2015 BB- 19-Aug-2011

VND170 mil 12.10% bnds due 03/22/2013 BB- 19-Aug-2011

VND600 mil 11.25% bnds due 05/17/2013 BB- 19-Aug-2011

VND100 mil 9.00% bnds due 06/18/2012 BB- 19-Aug-2011

VND550 mil 9.80% bnds due 07/06/2013 BB- 19-Aug-2011

VND1 mil 9.80% bnds due 07/08/2013 BB- 19-Aug-2011

VND10 mil 10.80% bnds due 12/15/2012 BB- 19-Aug-2011

VND100 mil 9.20% bnds due 07/23/2012 BB- 19-Aug-2011

VND1 mil 10.60% bnds due 06/21/2013 BB- 19-Aug-2011

VND2 mil 11.02% bnds due 05/27/2013 BB- 19-Aug-2011

VND500 mil 12.00% bnds due 03/10/2013 BB- 19-Aug-2011

VND250 mil 11.40% bnds due 04/26/2013 BB- 19-Aug-2011

VND1 mil 11.15% bnds due 06/10/2015 BB- 19-Aug-2011

VND300 mil 10.40% bnds due 09/09/2015 BB- 19-Aug-2011

VND900 mil 10.95% bnds due 06/07/2013 BB- 19-Aug-2011

VND950 mil 10.40% bnds due 07/06/2015 BB- 19-Aug-2011

VND500 mil 11.50% bnds due 04/19/2015 BB- 19-Aug-2011

VND2 mil 10.90% bnds due 06/10/2013 BB- 19-Aug-2011

VND500 mil 11.40% bnds due 04/19/2013 BB- 19-Aug-2011

VND1 mil 10.55% bnds due 06/24/2015 BB- 19-Aug-2011

VND1 mil 9.78% bnds due 09/30/2013 BB- 19-Aug-2011

VND1 mil 11.33% bnds due 05/13/2015 BB- 19-Aug-2011

VND300 mil 9.80% bnds due 08/02/2013 BB- 19-Aug-2011

VND750 mil 10.80% bnds due 10/11/2020 BB- 19-Aug-2011

VND1 mil 11.05% bnds due 06/15/2015 BB- 19-Aug-2011

VND850 mil 10.80% bnds due 10/18/2020 BB- 19-Aug-2011

VND1 mil 11.20% bnds due 06/08/2015 BB- 19-Aug-2011

VND3 mil 10.29% bnds due 10/18/2015 BB- 19-Aug-2011

VND1 mil 9.68% bnds due 10/11/2013 BB- 19-Aug-2011

VND2 mil 11.00% bnds due 01/25/2015 BB- 19-Aug-2011

VND2 mil 9.65% bnds due 10/18/2013 BB- 19-Aug-2011

VND200 mil 11.33% bnds due 06/01/2015 BB- 19-Aug-2011

VND1 mil 11.20% bnds due 05/27/2015 BB- 19-Aug-2011

VND100 mil 9.00% bnds due 07/08/2012 BB- 19-Aug-2011

VND900 mil 11.50% bnds due 04/26/2015 BB- 19-Aug-2011

VND2 mil 11.25% bnds due 05/13/2013 BB- 19-Aug-2011

VND1 mil 10.30% bnds due 07/08/2015 BB- 19-Aug-2011

VND2 mil 10.08% bnds due 06/24/2013 BB- 19-Aug-2011

VND500 mil 11.30% bnds due 06/07/2020 BB- 19-Aug-2011

VND3 mil 10.95% bnds due 06/21/2015 BB- 19-Aug-2011

VND10 mil 10.80% bnds due 12/18/2014 BB- 19-Aug-2011

NONE CP prog auth amt VND44.9 bil B 03-Jun-2002

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TEXT-S&P ratings - Vietnam Joint Stock Commercial Bank for Industry and Trade

(The following statement was released by the rating agency)

June 06 -

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Ratings -- Vietnam Joint Stock Commercial Bank for Industry and Tra 06-Jun-2012

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CREDIT RATING: B+/Stable/B Country: Vietnam

---

Credit Rating History:

Local currency Foreign currency

15-Mar-2012 B+/B B+/B

---

Issues:

Rating Rating Date

US$250 mil 8.00% nts due 05/17/2017 B+ 15-Mar-2012

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TEXT-S&P ratings - Bank for Investment and Development of Vietnam
Wed Jun 6, 2012 5:31am EDT

(The following statement was released by the rating agency)

June 06 -

---

Ratings -- Bank for Investment and Development of Vietnam --------- 06-Jun-2012

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CREDIT RATING: B+/Stable/B Country: Vietnam

Primary SIC: Commercial Banks

---

Credit Rating History:

Local currency Foreign currency

08-Dec-2011 B+/B B+/B

23-Dec-2010 BB-/B BB-/B

22-Jul-2010 BB/B BB/B

---

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TEXT-S&P revises otlk on two Vietnam banks after sovereign action

Wed Jun 6, 2012 5:34am EDT

(The following statement was released by the rating agency)

June 06 - Standard & Poor's Ratings Services today revised the outlooks on Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and Bank for Investment and Development of Vietnam (BIDV) to stable from negative. At the same time, Standard & Poor's affirmed its 'B+/B' issuer credit ratings on both the banks. We also revised the ASEAN scale ratings on BIDV to 'axBB/axB' from 'axBB-/axB'.

We revised the outlook on the two banks following a similar sovereign rating action on Vietnam (BB-/Stable/B; axBB+/axB) earlier today.

The ratings on Vietinbank and BIDV are one notch above the banks' respective stand-alone credit profiles, reflecting: (1) the banks' "high systemic importance" in Vietnam's banking system; and (2) our assessment of a "highly supportive" government, which qualifies for a one-notch rating uplift from the banks' stand-alone credit profile of 'b'.

RELATED CRITERIA AND RESEARCH

-- Vietnam Outlook Revised To Stable From Negative; 'BB-/B' Sovereign Ratings Affirmed, June 6, 2012

-- Vietnam Banking Outlook: Banking Sector Reforms Could Herald Greater System Stability In 2012, March 12, 2012

-- Banks: Rating Methodology And Assumptions, Nov. 9, 2011

Business Briefs June 6

06-Jun-2012 Intellasia | | 1:46 PM

• Da Nang Securities Joint Stock Co (DNSC) has decided to hike its chartered capital from 50 billion dong to 60 billion dong, following the licence No 87/GPDC-UBCK dated May 30, 2012 that was issued by the State Securities Commission (SSC) regulating about adjustment in the company’s business registration licence No 29/UBCK-GPHDKD dated December 18, 2006.
• The available statistics shows that in the recent three consecutive trading session, from June 1 to 5, the volume of STB-coded shares being traded via negotiation transactions reached over 93.643 million units, with total value of over 2.341 trillion dong.
• Representative of ministry of industry and trade revealed that Vietnam Textile and Garment Group (Vinatex) would delay its initial public offerings (IPO) that was scheduled to take place in late 2012 because at present, the group has only submitted documents for the ministry for selecting the company to calculate the enterprise value.
• Tan Viet Securities Inc (TVSI) announced that from June 4, 2012, the company would lower the lending interest for borrowers.
• Vietnam Dairy Products Company has offloaded over one million shares of Vegetable Oil Packing Co. (VPK) to reduce its ownership from 17.7 percent to 4.8 percent.
• Da Nang Securities Company has spurred its chartered capital to 60 billion dong.
• Saigon Fuel Company (SFC) has announced June 12 as the ex-dividend date to pay 2012 first round dividend in cash for shareholders at 8 percent.
• Vietnam Securities Investment Fund (VFMVF1) has announced its net asset value per unit by May 31 at 15,664 dong, inching up by 86 dong against the previous week.
• Cho Lon Securities Company has sold over 320,000 shares of Tan Binh Import – Export Company (TIX), a 1.3 percent stake in the enterprise.
• Vneco 8 Electricity Construction Joint Stock Company has applied to trade 1.8 million shares on the Hanoi Stock Exchange.
• MB Securities Company has offloaded over three million shares ofVinaconex – PVC Construction Investment Co (PW) to reduce its holding from 14.5 percent to 4.3 percent. Meanwhile, Ocean Commercial Bank has sold five million PW shares, a 16.6 percent stake in the enterprise.
• Vinaconex Compound Stone Joint Stock Co (HNX-listed VCS) has lately announced that the main reason that led to the slump of 50 percent in Q1 pre-tax profit was the merger of Vicostone with Style Stone Joint Stock Co when raising its holdings to 99.9 percent.
• In the annual general meeting (AGM), the shareholders of Song Da 3 Joint Stock Co (coded SD3) have approved the 2011 business results. The company decided not to pay 2011 dividend to the existing shareholders.
• The northern bourse-listed An Giang Coffee Joint Stock Co (coded AGC) has lately released the Q1 business results.
• The southern bourse-listed Sao Ta Food Joint Stock Co (coded FMC) has lately released the business results of May 2012.
• Hoa Binh Construction and Real Estate Trading Joint Stock Co (coded HBC) has won three bidding packages worth over 900 billion dong.
• Pham Quoc Thai, vice general director of Ba Ria Thermo Power Joint Stock Co (coded BTP) has announced that by the end of May, thermo power plant is estimated to have produced over 300,000 MWh.
• Duong Van Khen, chief accountant of Phuoc Hoa Rubber Joint Stock Co (coded PHR) has lately released that in May, the company has sold 1,435 tonnes of latex with average sales price of 77.7 million dong per tonne. Accumulatively, after the first five months of 2012, the company reported selling 9,366 tonnes of latex, bringing in revenue of about 700 billion dong.
• Pomihoa Steel Co Ltd has lately submitted application for withdrawing from Kyoei Vietnam Steel Co Ltd, a joint venture between Japan’s Kyoei Steel Group and Pomihoa Steel Co Ltd for building the new steel mill in Ninh Binh province.
• Viglacera Dong Trieu Joint Stock Co (coded DTC) has recently announced to finish capital withdrawal of 2.5 billion dong in Clinker Viglacera Joint Stock Co. After DTC’s existing shareholders refused to purchase in 651,722 shares in the latest share issuance to raise the chartered capital, DTC has completed offloading shares of Clinker Viglacera Joint Stock Co to Viglacera Corp at price of 10,000 dong per share.
• The management board of Dong A Painting Joint Stock Co (coded HDA) has lately approved for raising chartered capital by double, from 22 billion dong to 45 billion dong.
• PetroVietnam Fertiliser and Chemicals Corp has announced to supply some 130,000 tonnes of urea fertiliser this month to meet the crop demand and cool down the price.
• AEON Vietnam Co Ltd has been licensed to develop the AEON- Binh Duong Canary shopping centre project with an investment of $95 million. The project will cover 62,000 square meters in the Canary complexin Binh Duong Province’s Thuan An Town.
• Ha Tay Trading Joint Stock Company has introduced The Sun Garden, an apartment project located in Hanoi City’s Ha Dong District. The 35-floor building worth 355 billion dong will be kicked off in this quarter and apartments will be handed to customers in the third quarter of 2014.
• Industrial Chemicals Co, Toyota Tsusho Vietnam and Taiwan-based Formusan Union Chemical yesterday started work on the plant producing surface active substances (LAS) in an area of 1.5 hectares in Dinh Vu Industrial Park, Hai Phong City. Having an investment of $6.6 million and an annual estimated capacity of 24,000 tonnes of products, the plant will provide material for detergent production and go into operation next March.
• Dung Quat Shipbuilding Industry Company on Sunday handed over a 104,000- tonne ship, the largest and most modern locally-built vessel in the last five years, to PetroVietnam Transportation Corporation (PV Trans.
• District 5 Public Services Company and Hung Thinh Real Estate Company have launched the sale of the 155 Nguyen Chi Thanh apartment project at prices starting from 1.5 billion per unit.
• Saigon- Hanoi Commercial Bank has launched iDiamond package. that increases daily limit of Internet banking transactions to a maximum of l billion dong. Customers depositing money at the bank from now to July 25 will have chances of winning a Children Care insurance productofPjico and bank accounts for kids.
• Asia Commercial Bank has offered ATM money withdrawal fee exemptions for Visa cards issued in Vietnam and Europe and Master cards issued in Vietnam.
• ANZ Bank has adjusted lending interest rates for home-related loans to between 13.65 percent and 14.52 percent per annum.

PRESS DIGEST - Vietnam newspapers - June 8

HANOI, June 8 | Thu Jun 7, 2012 10:21pm EDT

(Reuters) - These are some of the leading stories in the official Vietnamese press on Friday. Reuters has not verified these stories and does not vouch for their accuracy.

FINANCIAL NEWS:

THOI BAO KINH TE VIETNAM

• Vietnam should strive to curb state budget deficit this year below 4.8 percent of gross domestic product as targeted by the National Assembly, said Phung Quoc Hien, head of the assembly's financial and budgetary committee.

ECONOMIC AND GENERAL NEWS:

VIETNAM NEWS

• Japanese companies are extremely interested in investing in Vietnam via mergers and acquisitions, following falling demand at home due to population decline, said Onji Yoshimitsu, chief executive of Japanese M&A advisory firm Recof Corp, at a forum in Ho Chi Minh City.

NHAN DAN

• Vinafood 2, Vietnam's top rice exporter, is expected to win the supply of another 20,000 tonnes of the grain to the Philippines after it had won a tender for 100,000 tonnes of 25 percent broken rice, priced at $400 per tonne.

THOI BAO KINH TE VIETNAM

• Vietnamese rice businesses are concerned that the harvest of low-quality summer-autumn paddy will peak in the Mekong Delta in July and August while exporters have not secured many deals of low-quality grain so far this year, industry officials said.
• Vietnam's mergers and acquisitions in the first quarter rocketed 207 percent from a year earlier to $1.5 billion, mainly via share issues to foreign investors, VinaCapital's statistics showed.

DAU TU

• It is very tough to attain an annual growth of 6.0-6.5 percent this year while a 5-6 percent growth is more feasible if the government amends measures to balance the target of curbing inflation and pushing growth, National Assembly delegates said.

(Reporting by Hanoi Newsroom; Editing by Gopakumar Warrier)

Vietnam Cuts Fuel Prices

Vietnam Cuts Fuel Prices to Tackle Inflation, Growth
By Bloomberg News - Jun 8, 2012 2:48 PM GMT+0700

(Corrects percentage change in gasoline price in first paragraph of story published June 7.)

Vietnam cut fuel costs for the third time in a month, lowering gasoline by 3.5 percent, as policy makers pass on lower world prices to domestic consumers in a bid to contain inflation and counter slowing economic growth.

The cost of 92-RON gasoline, the most commonly used fuel grade in Vietnam, was lowered to 21,900 dong ($1.04) a liter from 22,700 dong, the Ministry of Finance said in an e-mailed statement. Diesel was reduced to 20,500 dong per liter from 21,200 dong. Fuel oil was reduced to 18,250 dong per kilogram from 18,900 dong, while kerosene was lowered to 20,400 per liter from 21,100 dong. The new prices took effect from 2 p.m. today, according to the statement.

Crude prices have fallen 5.3 percent since May 23, when Vietnam last cut petroleum prices, amid concerns that Europe’s debt crisis and weaker-than-expected Chinese manufacturing could dent demand. Lower fuel costs may help aid an economy that grew at 4 percent in the first quarter, the slowest pace since 2009. Vietnam’s inflation rate slowed to 8.34 percent in May from 23.02 percent in August 2011.

“We saw Vietnam’s growth slowing very sharply,” Singapore-based Vishnu Varathan, market economist at Mizuho Corporate Bank, said by telephone. “Trying to relieve the pressure on consumers as well as business can only be a good thing.”

Brent crude, used to price more than half the world’s oil, rose as much as 20 percent this year, amid speculation that Western sanctions aimed at halting Iran’s nuclear program will disrupt Middle East shipments. Brent for July settlement fell as much as $1.02 to $99.62 a barrel on the London ICE Futures exchange as of 3:50 p.m. in Hanoi.

To contact the reporters on this story: Nick Heath in Hanoi at nh***@bloomberg.net; Nguyen Kieu Giang in Hanoi at gi***@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at ak***@bloomberg.net

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Vietnam to Cut Deposit Rate Cap to Spur Economic Growth
By Bloomberg News - Jun 8, 2012 12:01 AM GMT+0700

Vietnam’s central bank will cut the dong deposit rate cap by two percentage points next week as policy makers attempt to revive the economy and encourage more lending to businesses.

The cap will be 9 percent from 11 percent currently and will take effect June 11, State Bank of Vietnam Governor Nguyen Van Binh told the National Assembly yesterday. The reduction will support companies and is in line with easing consumer price gains that are at their lowest since 2010, Binh said. Declines in borrowing costs still don’t “meet the needs of businesses,” he said.

A slowdown in the Vietnamese economy is hurting companies amid a credit crunch after the central bank raised borrowing costs last year to fight what was then the fastest inflation in Asia. Gross domestic product grew 4 percent in the first quarter, the slowest since 2009, and the pace of expansion for the full year may be as low as 5.2 percent, Deputy Minister of Planning & Investment Cao Viet Sinh, said in an interview this week.

“The central bank is trying to reduce the funding cost of banks, hoping that banks will pass on the benefit to the ultimate consumer,” said Prakriti Sofat, a Singapore-based economist at Barclays Plc. “The move will likely encourage more consolidation in the banking sector, in line with what the central bank wants, since weak banks may find it difficult to source funding.”

Vietnam’s move to spur growth coincides with China’s cut yesterday of its interest rates for the first time since 2008.
Access to Funds

Companies are still finding it hard to access cheap funds from banks, Nguyen Thi Kim Ngan, deputy chairwoman of the legislative body, said yesterday. Current lending rates are currently as high as 18.5 percent, according to a central bank statement on its website June 6.

The central bank lowered its refinancing rate, discount rate and repurchase rate by one percentage point in each of the last three months.

The Vietnamese government asked the central bank to speed up lending-rate cuts after consumer-price gains eased, according to a resolution on the government website May 10. Inflation slowed to a 21-month low of 8.34 percent in May. Binh forecasts consumer prices will rise 0.2 percent in June from May and the year-end inflation rate will be 7 percent to 8 percent.

“If this is followed by cuts in other policy rates, it might be interpreted that the government is over-concerned about stimulating growth,” said Kevin Snowball, the Ho Chi Minh City- based chief executive of PXP Vietnam Asset Management. “If this is not followed by cuts in other policy rates, then it creates more of a net interest margin, which may encourage banks to make more loans.”

The central bank has injected about 180 trillion dong ($8.6 billion) into the economy, Binh said, calling it a “huge” amount.

“Liquidity in the banking system has improved significantly,” he said.

To contact Bloomberg News staff for this story: Nguyen Kieu Giang in Hanoi at gi***@bloomberg.net

To contact the editor responsible for this story: Stephanie Phang at sp***@bloomberg.net

Vietnam to lower key rates on June 11-c.bank

HANOI, June 8 | Fri Jun 8, 2012 6:05am EDT

(Reuters) - Vietnam's central bank said on Friday it will cut the refinance rate to 11 percent, the discount rate to 9 percent and the deposit ceiling to 9 percent next week, the fourth time it has eased policy this year to help accelerate economic growth.

The new rates, due to take effect from June 11, come as inflation is moderating and the banking system's funding situation is improving, the central bank said in a statement one day after China announced surprised rate cuts to combat faltering growth.

The previous refinance rate was 12 percent, the discount rate 10 percent and the ceiling on dong deposits 11 percent.

(Reporting by Ngo Thi Ngoc Chau and Ho Binh Minh; Editing by Kim Coghill)

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UPDATE 1-Vietnam cuts key rates for 4th time this year as inflation cools

Fri Jun 8, 2012 6:38am EDT

(Adds context)

(Reuters) - Vietnam's central bank said on Friday it will cut key policy rates by up to two percentage points next week, the fourth time it has eased policy this year to help spur flagging economic growth.

Effective on Monday, the refinance rate will be cut to 11 percent from 12 percent, the discount rate to 9 percent from 10 percent and the ceiling on dong deposit rates to 9 percent from 11 percent, the State Bank of Vietnam said in a statement one day after China announced surprised rate cuts to combat faltering growth.

The lower rates come as inflation is moderating and the banking system's funding situation is improving, the statement said.

Vietnam's inflation rate, which was among the highest in Asia last year, has fallen below 10 percent for the first time since October 2010, with prices in May rising 8.34 percent in May from a year earlier.

As price pressures eased and the global economic outlook worsened, the central bank has quickened the pace of its policy easing. It last cut rates on May 28.

The government has shifted its priorities from inflation to stimulating growth after gross domestic product expanded by 4 percent in the first quarter, the slowest rate in three years, analysts said.

Around 53,800 businesses in Vietnam went bankrupt or ceased operating last year, up nearly 25 percent from 2010, while another 14,000 ceased operations in the first quarter of this year, up by 9 percent from the same period last year, the National Assembly's economic committee said in a report on May 18.

The banking system has ample funds but businesses, facing a cash squeeze, cannot get loans due to worries about bad debts and high inventories, state media has quoted Le Xuan Nghia, a member of the National Monetary Advisory Council, as saying.

(Reporting by Ngo Thi Ngoc Chau and Ho Binh Minh)