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Banking & Finance

Lower lending rate goal facing challenges
Banking & Finance

Lower lending rate goal facing challenges

The State Bank of Vietnam (SBV) is working to cut lending interest rates to help businesses recover post-pandemic. According to Vietcombank Securities (VCBS), however, lending rates will be under upwards pressure in the near future, as inflationary pressures remain significant, but there is a need for higher credit growth during the economic recovery.
Banking & Finance

CAR targets set for commercial banks

Under the “Restructuring the system of credit institutions associated with bad debt settlement in the 2021-2025 period” project, which has been approved by Deputy Prime Minister Le Minh Khai, by 2023, the capital adequacy ratio (CAR) at commercial banks is to reach at least 10-11 per cent and at least 11-12 per cent by 2025.
Banking & Finance

Legal framework and tools to handle bad debts need improvement

A loophole left by Resolution No. 42 that will expire on August 15, 2022, will prolong the bad debt settlement process, affect the restructuring of the credit institution network, and discourage investors from participating in handling bad debts and mobilizing capital at home and abroad. Many National Assembly deputies have therefore agreed with a government proposal on extending the Resolution, but said it is necessary to complete the legal framework and develop a debt trading market.
Lower lending rate goal facing challenges

Lower lending rate goal facing challenges

The State Bank of Vietnam (SBV) is working to cut lending interest rates to help businesses recover post-pandemic. According to Vietcombank Securities (VCBS), however, lending rates will be under upwards pressure in the near future, as inflationary pressures remain significant, but there is a need for higher credit growth during the economic recovery.
Real estate corporate bond issuance up significantly

Real estate corporate bond issuance up significantly

Figures from FiinPro show that VND37.5 trillion ($1.6 billion) worth of corporate bonds were issued in May, of which the real estate group issued VND7 trillion ($301.8 million), up significantly from April.
Tax losses in cross-border digital services and e-commerce

Tax losses in cross-border digital services and e-commerce

Many analysts believe that tax collections from organizations and individuals conducting cross-border digital services and e-commerce is not commensurate with the huge revenue earned. According to the Ministry of Finance (MoF), each year Vietnam’s tax sector fails to collect 85 per cent of the tax owed by Facebook and Google alone.
CAR targets set for commercial banks

CAR targets set for commercial banks

Under the “Restructuring the system of credit institutions associated with bad debt settlement in the 2021-2025 period” project, which has been approved by Deputy Prime Minister Le Minh Khai, by 2023, the capital adequacy ratio (CAR) at commercial banks is to reach at least 10-11 per cent and at least 11-12 per cent by 2025.
Legal framework and tools to handle bad debts need improvement

Legal framework and tools to handle bad debts need improvement

A loophole left by Resolution No. 42 that will expire on August 15, 2022, will prolong the bad debt settlement process, affect the restructuring of the credit institution network, and discourage investors from participating in handling bad debts and mobilizing capital at home and abroad. Many National Assembly deputies have therefore agreed with a government proposal on extending the Resolution, but said it is necessary to complete the legal framework and develop a debt trading market.
New domestic individual securities accounts up sharply in May

New domestic individual securities accounts up sharply in May

According to the Vietnam Securities Depository (VSD), the number of new domestic individual securities accounts hit a record 476,000 in May; double the number in April. Such new accounts reached 1.4 million in the first five months; 2.5-times higher than in the same period last year and bringing the total to nearly 5.7 million.

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