Banking & Finance

At a conference on credit management held by the State Bank of Vietnam (SBV), credit institutions evaluated credit control as a useful tool that is suitable for conditions in Vietnam. Current capital demand is significant, so it is not possible to have all of it coming from the banking system and it is necessary to develop other channels such as securities, bonds, public investment, and FDI.

Analysts at the Vietnam Socio-Economic Forum 2022 on September 17 said that although the country’s eight-month CPI is relatively low, fluctuations have been significant and inflationary pressure and risks are increasing. Vietnam’s M2 money supply growth and M2 / GDP ratio are quite high compared to other countries in the region.

At an investment seminar with the topic “Transforming yourself with the market”, held on September 16, analysts said securities remain an attractive investment channel. As of the end of the second quarter of this year, there was about VND70 trillion ($2.95 billion) in cash lying idle in securities accounts, with investors waiting for favorable opportunities to return to the market.

The government has issued Decree No. 65/2022/ND-CP amending and supplementing regulations on the private offering and trading of corporate bonds in the domestic market and sales in the international market. The Decree strengthens the responsibilities and obligations of issuers. The purpose of issuing bonds is to implement investment programs and projects or to restructure the debts of enterprises.

The Asia Commercial Bank (ACB) has received an award as the “Listed company with the best investor relations (IR) in 2022”. The award honors businesses that have contributed to building a transparent and fair stock market and aims to maximize the value of listed companies through effective IR activities.

Liquidity pressure is increasing in Vietnam’s banking system. The maturity of USD sales contracts caused a corresponding amount of VND to be withdrawn, pushing up the interbank interest rate. In September, savings interest rates were raised to a new high at many banks, the highest being 8.8 per cent per annum at ABBank. The bank said requirements include deposits being at least VND1.5 trillion ($63.23 million) on a 13-month term, with interest received at the end of the period.