Job Discussion Forums

[generalgiap]

I forgot to mention a new banking law in Vietnam.

Previously I transferred large amounts of USD up to 300,000 usd from my account in USA to my account in Vietnam. Changed the USD to Vietnamese Dong, and put in long term deposits, 14-19%, after finishing the long-term deposit, the bank would change to USD and I would transfer back to the States. This is no longer allowed, one can transfer the USD to Vietnam and change to Viet Dong put in long-term deposits but one cant change it back to a foreign currency, one is stuck with the Dong. I have long term deposits in Viet dong prior to the new banking law so I dont know the law regarding deposits made before the law. The bank has said no, but I will be meeting the bank director next week with my lawyer to see if there is a way around this. Where there is a will theres a way. All of the localised foreign banks have offshore accounts BVIs where they can transfer from there. Anyway, the party is over for the above. If anyone has any info on this issue, lets hear it asap.

[bentanddisfunctional]

[Belgrove]

[generalgiap]

Well, met with the GD and we verbally agreed, would not put in writing, on the following:

Money that has been transferred from abroad to my account in Vietnam prior to the new law can be transferred out of Vietnam, this is against the current banking regulations, but the bank will choose the currency, USD, British Pounds or Euros. They are doing this according to him because I am a good customer not because they have to. Also, money that is transferred after the new regulation can't be transferred out. On another note, I just transferred a large amount of USD out of the country, my salary that has been accumulated in my VND account. They stated in the future, that if I wanted USD, I would have to transfer my salary every month but if I wanted to keep the my salary in VND in my savings account which is now 14% interest, possibility that they may force me to transfer Euros in the future.

My lawyer told me that they can get around the new banking regulation because the money will not be transferred from Vietnam but from an offshore account. I think the offshore account is in Bora Bora

[tefl peasant]

As for banking and banks. Bad loans are inching up due to the mostly, bad real estate loans because of the flattening of RE.
--
Print
Vietnam Bank Bad Debts: Worryingly High


Bad debts in Vietnam's banking sector rose to 3.1% of the total outstanding loans as of August, 2011. High credit growth rate and poor credit quality are being blamed for the soar in bad debts.

The NPL ratio of the whole banking system as of August, 2011 rose to 3.1% from 2.16% at end-2010. Bad debts increased by 66.18% for state-owned banks, 44.29% for commercial banks, 59.23% for joint-venture and foreign banks.

The rise in bad debts mainly came from banks� high proportion of real estate loans. In many commercial banks, real estate projects accounted for 30-40% of their total outstanding loans and at some banks this figure was as high as 50%. As property slumps, banks become more exposed to bad debts.

http://stoxplus.com/News/59955/1/186/vietnam-bank-bad-debts-worryingly-high.stox

[spycatcher reincarnated]

As the link shows NPL (non performing loans) figures for countries like Vietnam are very very unreliable at the best of times.

In these present times the NPL figures in most industrialized countries should also be under very serious scrutiny. Governments, of industrialized nations, haven't been pushing the banks as they know what would happen if the truth came out.

If banks are audited seriously for their NPL's then they just need to roll them over. This is particularly easy to do in counties like Vietnam.

As bankers say: A rolling loan gathers no loss.

[The Mad Hatter]

I don't understand this conversation. Why would ESL teachers transfer upwards of $300,000 here to help support their English teaching job discussion?
Teachers normally make no more than $24,000 a year here. I do however,know of a similar story where an elderly woman tried to retire here, back in the better times, when it was El Dorado lifestyle here for ex-pats and the streets were like living room carpets of indochine. ANd she brought in about $400,000 via the large Hong Kong international bank, thinking it was a large international bank after all.(Name unmentioned ) Tried to buy an apartment, and settle in here for good. But when she eventually changed her mind when the reality set in , and wanted to transfer it out they the bank said no to it all. Eventually , after much wrangling and a long drawn out complaint process to the headquarters in Hong Kong she was able to, but this was five years ago. I simply can't see the veracity or plausibility of such scenario whereby an ESL teacher would either accumulate this much money, or need to bring it here, or even not be aware of this well known pitfall of bringing money in. Spurious fabrication.

[Oh My God]

[Belgrove]

MOD EDIT

A large pinch of salt is required when reading some posts.

Other posts provide great insight into life in Vietnam.

Some posts even offer insight into the mentality of some teachers.

A great forum, read everything, take it in and you'll learn a great deal about Vietnam and why many of us live here and love the place.

[Mr. Kalgukshi]

If there is one more comment here that addresses the messenger rather than the message, there will be a serious sanction imposed and this thread will no longer be available.

What is a serious sanction?

It is one that can include permanent banning along with all ISPs.

[snollygoster]

Yesterday I transferred a sum of money to a friend in Vietnam- Direct to my friend's trusty Vietcombank account. Transferred in US$.
Follow up phone conversation revealed Vietcom gave my friend 16245VnD per US$, and would not budge from that figure, despite my friend showing the bank the original transfer documents, (scanned and e-mailed for the purpose), and the official published exchange rates at the time.

Further enquiry from Vietcombank revealed that if the transfer was to go the other way, the exchange rate was considerably different. Bank wins both ways-account holder loses both ways.

[generalgiap]

Let's focus on reality, therefore, only basic math is necessary.

I have had long-term deposits in Vietnam for ten years. Let's say that one has a salary of 2,000 usd a month and can save 1000 month. 12,000 a year. The average interest has been 12% during the past ten years in Vietnam including the devaluation of the dong for my long term accounts. If one puts 12,000 usd a year, over ten years, one will have today, 273,000 usd in Dong. However, I have had many senior management EFL positions with a salary of 50,000 USD plus. I have deposited 24,000 a year over ten years and it's now worth 546,000 usd in dong. For example, I have a long-term deposit with 6 billion dong at 14% for 9 months, the dong has not devalued during the past 9 months, next week it will finish and I will get collect about 554 million dong in interest, not bad, and will sign up for another one. In addition, I dont plan on leaving Vietnam so I dont need another currency, but if I do, just wait for the time of year when there is little difference between the official and black market and change it. I also have many friend who can only save 500usd a month and have a large amount of money after 5-10 years due to the interest rates in Vietnam.
I also have friends who make 3000 usd a month that have not saved a penny in 10 years and are constantly asking to borrow money for their next beer.

I have transferred money from abroad to Vietcom bank and it's complete rubbish that they will not give one the official rate. More stories on daves.

Regarding how much money an ESL teacher can make or save depends on many factors, so lets deal with the real world or Alice in Wonderland, up to you.

Cheers

[generalgiap]

should have written 630 million dong in interest not 554 million.

[snollygoster]

it's complete rubbish that they will not give one the official rate
Maybe the friend, who is actually my mother in law is a liar-but strange how now after a friend who is a branch manager got involved, the rate changed to the correct rate.
All's well that ends well.

[generalgiap]

Thank you for confirming my statement that it never happened. Therefore, Snolly and I can both confirm that you will get the official exchange rate if you transfer money to Vietcom bank. Again, thanks for the clarification, unfortunately, I suspect there would have been nothing but silence if I did not post my opinion and ignorant individuals who do not have common sense would have believed it. No disrespect intended.

Cheers