Joint stock bank unveils new service
HCM CITY — The joint stock Asia Commercial Bank (ACB) announced on Wednesday that it will begin its US dollar/VN Dong option service by the end of this month.
The option is a market-risk hedging instrument. ACB will offer its customers the exclusive right to buy or sell a fixed sum of the convertible currency, paying in Viet Nam Dong within a specified time at a set price. The term will range from one week to six months.
It is one of the first two banks to get permission from the State Bank to offer the service, the other being the joint stock Techcombank.
The customers, limited to individuals or economic institutions operating in Viet Nam, will have to pay fees for the right, which will be negotiated between the bank and its customers.
Buyers will have to present certificates in accordance with existing foreign currency management regulations.
Truong Van Phuoc, head of the State Bank’s Foreign Exchange Management Department suggested ACB should let its customers to decide the fees and use the method of matching orders of sales and purchases to reduce risks.
Also on Wednesday ACB launched its factoring and ‘Call Center 24/7’ services.
For the factoring service, the bank will pay corporate customers who sell goods the money that would be paid by the goods buyers, charging the customers a fee and then recovering the money from the buyers.
ACB has now a list of around 100 company customers who will use this service. They are sellers of cars, motocycles, foods, electronic appliances, chemicals, costmetics, and telecommunications and construction materials.
Meanwhile the ‘Call Center 24/7’ will allow customers to call 8247247 ‘round the clock to get service information, receive consultation, place orders for the payment of bills, and register for cards issued by the bank.
ACB, one of the leading joint stock banks of Viet Nam, enjoyed a gross profit of VND110 billion for the first four months in 2005, up from VND72 billion during the same period last year.
HSBC talks risk
In other banking news, the Hongkong and Shanghai Banking Corporation organised a seminar on risk management solutions on Wednesday. During the one-day event, Todd James, an expert on global markets and treasury training for the bank, spoke about solutions involving interest rates and foreign exchange options.
Viet Nam News, May 14, 2005
