Commercial bank

People shop at Borough Market in London, Britain July 19, 2023. REUTERS/Anna Gordon/File photo

LONDON  – British business confidence declined in September as optimism about the economic outlook faded, a survey showed on Friday, adding to signs of a slowdown in the economy.

The Lloyds Bank Business Barometer, which surveys around 1,200 companies across the economy, fell to 36 percent from August’s 18-month high of 41 percent.

While painting a less downbeat picture than other indicators like the S&P Global PMI, the decline in the Lloyds barometer fitted with other signs of a slowing economy – something the Bank of England highlighted as it left interest rates on hold last week.

READ : Bank of England halts run of interest rate hikes as economy slows

Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said the BoE’s decision – taken after the survey was conducted – could underpin business confidence in the coming months.

“Although the economic environment remains uncertain with inflation and interest rate pressures playing their part, the recent decision by the Bank of England…is likely to help businesses feel more upbeat about the future,” he said.

More details about the recent performance of Britain’s economy are due at 0600 GMT when the Office for National Statistics publishes comprehensive growth data for the second quarter.

While Lloyds said its gauge of pricing expectations inched higher in September, hiring intentions cooled. The proportion of companies planning to raise salaries also fell, although remained around the average for the year.

The survey was conducted Sept. 1-15.

The T-bill issuance shows the central bank’s determination to stabilise the rising exchange rate. — VNA/VNS Photo

The State Bank of Vietnam (SBV) continues its strategy of issuing Treasury bills (T-bills) as part of its ongoing effort to manage surplus capital within the banking system.

On Wednesday, the SBV offered 28-day treasury bills worth VNĐ20 trillion (US$833 million) through an auction.

As a result, nine out of 12 participants won the bid at an interest rate of 0.65 per cent, higher than the 0.58 per cent on the previous day and 0.49 per cent in the beginning of the week.

Also on September 27, the central bank revealed the outcomes of its latest 28-day T-bills auction, which amounted to VNĐ20 trillion and was conducted through the interest-bidding method. Nine out of 11 participants won the bid, with an interest rate of 0.58 per cent a year.

This means that the central bank withdrew VNĐ20 trillion from the banking system on Tuesday.

It has also successfully auctioned a total of VNĐ30 trillion on 28-day T-bills in three consecutive sessions, which were September 21, 22, and 25, without any transactions on the open market.

Thus, over the last five trading sessions, the SBV has net withdrawn about VNĐ70 trillion from the banking system through the T-bills channel.

T-bills are short-term debt securities with maturities typically ranging from a few days to one year. Issued by the State Treasury of Vietnam, T-bills serve as a means for the Government to raise short-term funds to finance its operations.

According to economic experts, SBV’s continuous issuance of T-bills after more than six months of suspension (since March 10, 2023) is aimed at stabilising the USD/VNĐ exchange rate and addressing the issue of excess capital.

The central bank doubling the issuance volume after three exploration sessions with a volume of VNĐ10 trillion per session, while raising the interest rate, also indicates that the SBV will take more aggressive measures to drain the liquidity system.

According to SSI Securities Corporation (SSI), the SBV’s move to reissue T-bills can be seen as a way to adjust the short-term liquidity situation in the system. This is a common activity of central banks and does not mean that the SBV has reversed monetary policy.

The domestic exchange rate has increased sharply following the bullish trend of the DXY index (a measure of the strength of the US dollar against a basket of six major currencies) in the international market.

Commercial banks have reported a 3.3 per cent appreciation of the USD earlier in the month, compared to the same period in the previous year. This has led to the USD being valued at VNĐ24,500-24,600.

Many experts believe that the central bank will withdraw liquidity from the interbank market to reduce exchange rate pressure in the near future, and also continue to carry out policies to lower interest rates and push up credit. — VNS

The index closed 1.4 points lower after gaining 15.9 points Wednesday.

Trading on the Ho Chi Minh Stock Exchange (HoSE), on which the index is based, dropped 12.6% to VND15.9 trillion ($651.77 million).

The VN30 basket, comprising the 30 largest capped stocks, saw 18 tickers fell.

SSB of Southeast Asia Commercial Bank (SeABank) dropped 4.8% and STB of Ho Chi Minh City-based lender Sacombank fell 3.3%.

VRE of retail real estate arm Vincom Retail closed 2.5% lower and SAB of brewer Sabeco declined by 2.3%.

Ten blue chips gained, led by PLX of fuel distributor Petrolimex with a 3.3% increase.

Foreign investors were net sellers to the tune of VND509 billion, mainly selling STB of Ho Chi Minh City-based lender Sacombank and GMD of logistics company Gemadept Corp.

The HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, fell 0.57% while the UPCoM-Index for the Unlisted Public Companies Market dropped 0.33%.

Two weeks ago, the government held a forum to help make the first steps to shape the market of high-efficiency energy-consuming equipment by 2030. The move is made amid the rising pressure to alleviate power outages and achieve the net-zero goal by 2050.

More options looked at for energy-efficiency goals, photo VNA

The event, on developing the high-efficiency energy-consuming market from policy to implementation, was organised by the Office of the Steering Committee for Energy Efficiency under the Ministry of Industry and Trade (MoIT).

One measure discussed was promoting the use of high-efficiency energy-consuming equipment and gradually eliminating outdated technological products. Meanwhile, low-efficiency energy-consuming equipment such as storage water heaters and infrared hobs is prohibited to import, produce, and sell in Vietnam, according to a decision made in May.

Dang Hai Dung, deputy chief of the Office of Sustainable Production and Consumption under the MoIT said, “The ministry has oriented a synchronous implementation of technical standards and technology. Following this direction, energy efficiency and technology standards need to be revised, updated, and improved in line with the level of technological development locally, thereby keeping up with regional and world standards.”

The government wants to achieve 8-10 per cent energy savings of total national energy consumption by 2030.

According to the MoIT, one of the key tasks set by the government is an energy efficiency conversion programme of vehicles and energy-using equipment. The goal is that by 2030, Vietnam will save cumulative consumption of about VND10 trillion ($480 million), equivalent to reducing 34 million tonnes of carbon emissions. This means saving about 6,000GWh/year, equivalent to two 500MW coal-fired power plants.

“Commitments to reduce emissions are having an impact on industrial enterprises, including foreign-led ones,” commented Ma Khai Hien, vice director of the Energy Conservation Research and Development Center.

“Currently, energy demand and consumption in Vietnam’s industrial sector accounts for 54 per cent of total national energy consumption, with an increasing trend continuing until 2030. Businesses can use greenhouse gas inventory measures and energy efficiency conversions to save energy and reduce emissions. Only then can they meet the suitable requirements for global trade,” Hien said.

He further suggested that Vietnamese companies can seek financial support from international financial organisations and green finance funds in the global market.

Vietnam has been implementing energy saving solutions for more than 10 years. Nguyen Thi Lam Giang, former deputy director in charge of the MoIT’s Department of Energy Saving and Sustainable Development said that most of the tactics have been management solutions or actions that do not require investment, or require low investment levels.

“Given that industrial firms lack financial resources, it is hard to implement solutions requiring large investments and technology conversion to save energy. It is not easy for firms to access loans from the commercial banking sector because these projects are often evaluated as high risk,” Giang said.

It is hoped that MoIT support will partly promote investment in Vietnam’s energy efficiency market. Do Thanh Thang, power and grid sales director of Schneider Electric Vietnam, said, “Enterprises need clear policies and roadmaps for developing the high-efficiency energy market. To meet market demand, businesses need to continuously innovate and introduce new energy-saving products at a reasonable price while optimising the production process to save energy.”

By Ky Anh