Banking & Finance

Vietnam’s stock market fell from 1,500 points at the beginning of 2022 to 1,074.52 points on October 6, and foreign capital has continued to be withdrawn. However, VinaCapital analysts still have a positive assessment of the prospects for Vietnamese stocks and believe now is a good time to accumulate stocks.

Referring to the fact that Vietnam’s stock exchange became a member of the Association of ASEAN Stock Exchanges (ASEAN Exchanges) on September 30, the Ministry of Finance said that by participating in ASEAN Exchanges, the stock exchange can access information and experience in stock market management and institutionalize regional cooperation, to promote the integration of stock markets in the region.

Credit institutions continue to expect that deposit and lending interest rates will increase in the fourth quarter. A survey by the State Bank of Vietnam found that 59-61 per cent of credit institutions expect an average interest rate increase of 0.37 percentage points in the quarter.

According to FiinRatings, factors affecting the profits of securities companies include liquidity risk, proprietary trading, interest rates, and exchange rates.

A recent report from the Agribank Securities Company (Agriseco) noted that the banking sector will face challenges maintaining profit growth in 2022 and 2023 at levels recorded in 2020 and 2021. Growth has declined amid insufficient space for credit growth, while Net Interest Margins (NIM) face pressure from rising deposit rates as lending rates prove difficult to increase.

Under a recently-issued government Resolution, the State Bank of Vietnam needs to implement prudent and firm monetary policy, ensuring the flexibility to control inflation and stabilize the macroeconomy. In particular, it should be ready to sell foreign currencies when necessary to intervene and stabilize the market.