Banks diversify income sources to reduce dependence on credit

Bank tellers and customers in Hanoi (Photo: VNA)Banks have been promoting a target of diversifying income sources to reduce dependence on credit.The financial statements in Q1 2022 of many banks published recently showed that besides the rapid growth of credit, revenue from services contributed significantly to the banks’ positive business results in the period.Typically, in Q1 2022, the Commercial Joint Stock Bank for Foreign Trade of Vietnam ( Vietcombank ) gained 2.58 trillion VND of net profit from services and 1.52 trillion VND of net profit from foreign exchange trading.For Vietnam Technological and Commercial Joint Stock Bank ( Techcombank ) and Saigon Thuong Tin Commercial Joint Stock Bank ( Sacombank ), the service revenue in Q1 2022 reached 1.79 trillion VND and 1.53 trillion VND, up 35 percent and 83 percent compared to the same period of last year, respectively.Many other private joint-stock banks such as Vietnam Prosperity Commercial Joint Stock Bank (VPBank), HCM City Development Commercial Joint Stock Bank (HDBank), Military Commercial Joint Stock Bank (MB), Asia Commercial Joint Stock Bank (ACB), Vietnam International Commercial Joint Stock Bank (VIB), Maritime Commercial Joint Stock Bank (MSB) and Saigon Hanoi Commercial Joint Stock Bank (SHB) also recorded many positive results from service activities in Q1 2022.MB, for example, saw an increase of 4.8 percent to nearly 1.12 trillion VND in the profit from services thanks to a large contribution from bancassurance channel. The bank’s profit from foreign exchange trading grew by 98 percent to 467 billion VND.Meanwhile, MSB also achieved more than 335 billion VND of net profit from service activities in Q1 2022, up nearly 175 percent over the same period of 2021, mainly thanks to the segments of credit cards, insurance services and payment activities.For VIB, the non-interest income was 650 billion VND, contributing 16 percent to the bank’s total operating income.Among the service activities of banks, bancassurance channels accounted for a fairly large proportion in Q1 2022 and contributed considerably to the service revenue structure of many banks. The income is expected to further increase next time.Vice-chairman of Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank) Pham Doan Son said the bank is negotiating with its partners about bancassurance as the insurance contract between the bank and Dai-ichi Life expires in May 2022.Banking expert Nguyen Tri Hieu said that diversifying revenue sources is one of the targets that many banks have focused on for the past few years, especially in the past two years when the traditional source of revenue from credit activities has slowed and posed higher risks due to the pandemic.“Increasing revenue from services has helped banks operate more healthily and sustainable, and minimise risks. The change will also contribute to gradually realising targets set out in the development strategy of the banking industry,” Hieu said./.

June 03, 2022 13:17 UTC


President Ho Chi Minh-inspired cultural space discussed

A meeting to discuss a President Ho Chi Minh-inspired cultural space is held in HCM City on June 2. (Photo: VNA)- A meeting to discuss a President Ho Chi Minh-inspired cultural space was held in HCM City on June 2, discussing the influence of the late president’s ideology, morality and style among local women.In her remarks at the event, Deputy Director of the municipal Department of Culture and Sports Nguyen Thi Thanh Thuy said the Ho Chi Minh-inspired cultural space in the southern city includes special values that cannot be seen elsewhere. It is not just about monuments of the late leader, or literary and art works about him, but a combination of various factors such as the lifestyle, demeanour and morality of people learning from him, she said.Ngo Van Luan, deputy head of the municipal Party Committee’s Department of Mass Mobilisation, emphasised the city named after the late President holds great responsibility in preserving and promoting cultural heritages left by the leader to provide people with a deeper understanding about the leader.He urged local women’s unions to develop intangible and tangible cultural space s about the president, such as small libraries, photo exhibitions and quizzes. Women’s unions must also promote the campaign of building Vietnam ese women of the new era in association with the drive on studying and following the ideology, morality and style of President Ho Chi Minh ./.

June 02, 2022 18:45 UTC


Vietnam treasures traditional friendship, multifaceted cooperation with Austria

- Vietnam attaches importance to strengthening its traditional friendship and multifaceted cooperation with Austria, said Minister of Foreign Affairs Bui Thanh Son on June 1.Son made the statement during his phone talks with Federal Minister for European and International Affairs of the Republic of Austria Alexander Schallenberg.As Vietnam and Austria are celebrating the 50th anniversary of their diplomatic relations in 2022, the two sides expressed their pleasure with the positive developments in the bilateral relationship, with delegation exchanges and high-level meetings continuously maintained.Currently, Austria is among the 10 largest trading partners of Vietnam in the European Union (EU) with two-way trade turnover in 2021 reaching nearly 3.5 billion USD. Bilateral connections in science - technology, culture and development cooperation between the two countries continue to record positive progress.In order to make the Vietnam-Austria cooperation more dynamic, practical and effective in the coming time, Son and Schallenberg agreed to maintain delegation exchanges and meetings at all levels, and coordinate in organising activities to celebrate the 50th anniversary of diplomatic relations The two sides will strengthen trade-investment promotion activities, and expand cooperation in fields of Austria’s strengths and Vietnam’s needs such as renewable energy, climate change response, waste treatment and processing industry.They also agreed to closely coordinate to successfully organise the upcoming session of the Vietnam-Austria Joint Committee on Economic-Trade Cooperation, while taking advantage of opportunities and benefits brought by the EU-Vietnam Free Trade Agreement (EVFTA).Minister Son suggested that the Austrian Government raise a voice to urge the Austrian Parliament to early ratify the EU-Vietnam Investment Protection Agreement (EVIPA).The two sides affirmed to continue to work closely and support each other at multilateral forums and organisations such as the United Nations, the Asia-Europe Meeting (ASEM) and ASEAN-EU./.

June 01, 2022 21:20 UTC


ASEAN countries discuss response to food security concerns

Illustrative image (Source: VNA)- The International Food Policy Research Institute (IFPRI), in collaboration with the Southeast Asian Regional Centre for Graduate Study and Research in Agriculture (SEARCA), on June 1 organised a forum themed “Transforming the Food System in ASEAN post COVID-19: Responding to Food Security and Inclusiveness Concerns”.The forum was part of the Agricultural Transformation and Market Integration (ATMI) in ASEAN countries: Responding to food security and inclusiveness concerns” programme funded by the International Fund for Agricultural Development (IFAD).The programme, which mainly targets Cambodia, Laos, Myanmar and Vietnam, is designed to strengthen the institutional capacity of ASEAN member states, facilitate the integration of smallholders in agriculture, participate in the market and formulate and implement policies to support inclusive transformation and market integration. SEARCA Director Glenn B. Gregorio said that with rapid development and transformation of food systems, ASEAN countries have made significant progress towards achieving the Sustainable Development Goals (SDGs) on ending hunger and food insecurity and malnutrition.However, challenges remain, including some worsening during the COVID-19 pandemic. Therefore, he stressed the need to synchronise food transformation models in each country.Speaking at the forum, Director of Vietnam’s Institute of Policy and Strategy for Agriculture and Rural Development Tran Cong Thang said that Vietnam has a developed agricultural sector that plays an extremely important role, especially during the pandemic.Agricultural transformation is leading to an improvement in the quality of agricultural products, he said, adding that exports hit a record high of 48.6 billion USD last year.However, the country still faces several shortcomings such as the quality of farm produce yet to meet international standards and low incomes for farmers.Therefore, the Government approved the Strategy on Sustainable Agricultural and Rural Development for the 2021-2030 period, with a vision to 2050./.

June 01, 2022 17:23 UTC


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