Banking & Finance

Business results posted by banks for the first quarter increased compared to the previous quarter but fell short of expectations. According to the latest survey from the Monetary Forecasting and Statistics Department at the State Bank of Vietnam, 90 per cent of banks expect pre-tax profits to grow in 2022 compared to 2021, down 5 percentage points from the previous survey. Six per cent of banks have forecast a decline in profits this year.

The State Bank of Vietnam (SBV) is collecting comments on a draft decree for a controlled trial mechanism for fintech (financial technology) activities in the banking sector. The decree will create an incentive mechanism for businesses to provide or cooperate in providing banking and financial solutions under an innovative business model. Credit institutions and fintech companies will be able to test fintech solutions without a legal framework in a controlled environment, with mechanisms in place to prevent risks.

According to the General Department of Taxation, thanks to improvements in services and the recovery of business, total State budget revenue in the first quarter of 2022 reached nearly VND390 trillion ($17.18 billion), up 5.3 per cent over the same period of 2021. The budget will forego revenue of more than VND20 trillion ($881.9 million) due to reductions in environmental protection taxes on petrol and oil from April 1. The tax sector will therefore need to make every effort to complete its budget tasks in the second quarter.

On March 30, Deputy Prime Minister Le Minh Khai directed the implementation of measures to ensure the stock market operates stably, safely, smoothly, openly, transparently, and sustainably. It is also necessary to review mechanisms and policies and complete the legal framework relating to handling violations in the securities sector.

The Ministry of Finance has proposed extending four periods, from June to September, for the payment of special consumption taxes on domestically-manufactured or assembled cars, with such support costing up to VND11.4 trillion ($497.23 million) in total.

According to the General Statistics Office (GSO), as of the end of March, credit growth in the entire economy reached 4.03 per cent; much higher than the 1.47 per cent increase recorded in the same period last year. Meanwhile, the State Bank of Vietnam continues to keep operating interest rates unchanged, creating favorable conditions for credit institutions to continue reducing lending rates and support economic recovery.