The Great Bank Branch Shutdown: Over 100 SCB Offices Close Their Doors; VNG Appoints New Leader

This week's notable news includes SCB bank's decision to close multiple branches, VNG appointing a new CEO, a surge in grocery shopping as people prepared for an incoming storm, the recovery of 2.4 trillion dong mistakenly given as benefits to veterans, and a temporary suspension of pension payments in provinces affected by Storm No. 3.

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SCB Bank Continues to Shut Down Many Branches

Saigon Commercial Joint Stock Bank (SCB – stock code: SCB) has ceased operations of 6 more branches in Ho Chi Minh City.

Specifically, from August 28, SCB Bank has terminated the operations of Nhat Tao Branch of Tan Phu Branch, Nguyen Son Branch of Tan Binh Branch, Pho Quang Branch of Tan Binh Branch, Phu Nhuan Branch of Phu Dong Branch, Nguyen Anh Thu Branch of Hoc Mon Branch, Nguyen Duy Trinh Branch of Ben Thanh Branch, and Hung Vuong Branch of Hai Phong Branch.

Saigon Commercial Joint Stock Bank has closed nearly 100 branches since the arrest of Truong My Lan.

Previously, on August 26, SCB also announced the termination of operations of a branch in Hai Phong.

According to statistics from the Vietnam Bankers Association (VNBA), from June 2023 to the present, SCB has ceased operations of 107 branches in many provinces and cities across the country.


VNG Appoints New Acting CEO

On September 7, VNG Joint Stock Company (stock code: VNZ) announced changes in its senior management.

Accordingly, Mr. Kelly Wong, Vice President of VNG, was appointed as the Acting CEO of VNG.

The VNG Board of Directors affirmed that they would closely coordinate and support Mr. Kelly Wong in his new position, ensuring the stable and efficient operation of the company’s activities.

VNG Joint Stock Company has changes in senior management.

Previously, VNG’s semi-annual management report for 2024 stated that the CEO of VNG was Mr. Le Hong Minh. At the beginning of 2023, Mr. Le Hong Minh stepped down as Chairman of the Board of Directors of VNG.

Mr. Le Hong Minh, born in 1977 in Hanoi, majored in finance and banking at Monash University (Australia). In 2001, Mr. Le Hong Minh decided to return to Vietnam to build his career, starting as a credit officer at Vina Capital Company.

In 2003, he and a few friends decided to open a gaming arcade with some additional services. In 2004, Mr. Le Hong Minh and his associates founded Vinagame Joint Stock Company, and in 2009, they changed the name to VNG Corporation as it is known today.

According to VNG, business and operational activities are still going as usual. “The company is actively cooperating and complying with all requirements from the authorities. VNG is committed to making every effort to ensure stable business operations and the legitimate rights and interests of partners, shareholders, and related parties,” the VNG statement said.


Hanoi: Supermarkets See 30-Fold Increase in Food Sales Ahead of Incoming Storm

On the evening of September 6, the Ministry of Industry and Trade inspected the stockpile of essential consumer goods at two large supermarkets in Hanoi, Winmart Royal City and Big C Thang Long, ahead of the incoming Super Storm No. 3.

Supermarkets assured continuous supply and no price gouging. Photo: Can Dung.

Mr. Nguyen Minh Tuan, Director of Big C Thang Long Supermarket, said that they had increased their stock by 300%, focusing on essential product groups such as vegetables, meat, and fish…

“However, since the morning of September 6, the number of customers coming to the supermarket has increased suddenly, about 20-30 times more than usual. Especially during the period from 12:00 to 15:00, the number of customers coming to the supermarket increased sharply, and shoppers focused on buying essential products such as vegetables, meat, fish, eggs, and fruits…,” said Mr. Nguyen Minh Tuan, assuring that there would be no price increases during this time and that people should not worry.

Ms. Nguyen Kieu Oanh, Deputy Director in charge of the Hanoi Department of Industry and Trade, said that in any situation, the system of supermarkets and traditional markets always ensures a sufficient supply of food and foodstuffs to meet the essential needs of the people.


Recouping Over 2,400 Billion VND in Wrongfully Paid Benefits to Veterans

The Ministry of Labour, Invalids and Social Affairs responded to a proposal by Hanoi voters regarding policies to support veterans.

Specifically, Hanoi voters requested the Ministry of Labour, Invalids and Social Affairs to strengthen inspection and supervision and strictly handle individuals and organizations that take advantage of their positions and powers to falsify the profiles of veterans, wounded soldiers, and sick soldiers for personal gain.

Paying benefits to veterans. Photo: BDVN.

Responding to the voters’ proposal, the Ministry of Labour, Invalids and Social Affairs said that according to the synthesis of reports from localities nationwide, after inspections and examinations of the profiles of beneficiaries of policies for those with great contributions to the revolution, by the end of 2023, the authorities detected 24,590 cases of erroneous benefit payments. The ministry requested the localities to urgently rectify and refund to the state budget an amount of over 2,400 billion VND.

“Cases of fraud and forgery to enjoy benefits have been strictly handled. The termination of benefits for these subjects has reduced the state budget expenditure by over 400 billion VND per year,” said the Ministry of Labour, War Invalids and Social Affairs.


Temporary Suspension of Pension Payments in Provinces Affected by Storm No. 3

On September 6, the Vietnam Post and Telecommunications Corporation (VNPT) announced that to ensure the safety of people and property, it would temporarily suspend operations in areas most affected by Storm No. 3, including the provinces of Quang Ninh, Hai Phong, Thai Binh, Nam Dinh, and Ninh Binh.

Pension payments in some provinces affected by Storm No. 3 will be further delayed.

Post offices in these provinces will be temporarily closed and will not organize delivery services during the storm’s landfall (tomorrow, September 7). Areas at risk of flooding, landslides, or other unsafe conditions will also temporarily suspend all activities. The time to resume operations will be announced based on the actual situation after the storm passes.

After receiving instructions from the local authorities, the units will work with the Social Insurance Agency and the People’s Committee to agree on the time of payment and notify each beneficiary.

Previously, according to the announcement of Vietnam Social Security, because the period of payment of pensions and monthly social insurance benefits for September coincided with the National Day holiday, the payment schedule was postponed until after the holiday.


Updates on the Inspection of 2 Banks and 4 Gold Enterprises

In response to a proposal by the Ho Chi Minh City National Assembly Delegation, the list of inspected units includes: Tien Phong Commercial Joint Stock Bank (TPBank), Vietnam Export Import Commercial Joint Stock Bank (Eximbank), Saigon Jewelry Company Limited (SJC), Doji Gold and Gems Group Joint Stock Company, Phu Nhuan Jewelry Joint Stock Company (PNJ), and Baotin Minh Chau Limited Company.

According to Decision No. 324 dated May 17, 2024, the inspection contents include inspecting the observance of the provisions of law on gold business activities; inspecting the observance of the provisions of law on anti-money laundering; and inspecting the observance of the provisions of law on accounting regime, issuance and use of invoices and vouchers; on declaration and performance of tax obligations. The inspection period is from January 1, 2020, to May 15, 2024.

According to the plan, the inspection will last for 45 days, but so far, the results of the inspection of the above six units have not been announced.

The State Bank is still inspecting gold business units.

In addition, the State Bank also affirmed that it would continue to implement other solutions to stabilize the gold market. Accordingly, the unit will continue to take necessary measures as prescribed to control the difference between domestic and world gold prices at a reasonable level as directed by the competent authorities.


Who is the Highest-Paid Female CEO in Vietnam?

In the report “Income of General Directors and Boards of Directors at Public Companies in Vietnam in 2023” published by FiinGroup and FiinRatings, the average income of general directors of listed companies in Vietnam in 2023 was 2.5 billion VND/person.

Kinh Bac Urban Development Corporation (stock code: KBC) is the highest-paying company. In 2023, Ms. Nguyen Thi Thu Huong, General Director of KBC, was the highest-paid person among listed companies, with nearly 17 billion VND, equivalent to more than 1.4 billion VND/month. This figure far surpasses the income of leaders in other companies, including commercial joint-stock banks.

According to the reviewed consolidated financial statements for the second quarter, KBC General Director Nguyen Thi Thu Huong earned more than VND 6.4 billion in the first six months of this year, equivalent to more than VND 1 billion/month, which is about VND 400 million/month lower than the previous year.

Ms. Nguyen Thi Thu Huong, General Director of KBC, is the highest-paid person among listed companies.

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