Banking & Finance

Mr. Hiroshi Funaki, Chairman of Vietnam Holding Limited, said that despite the gloomy prospects for the global economy, Vietnam is considered an attractive investment destination with positive growth prospects. Several banks have recently raised their 2022 growth forecasts to nearly 7 per cent. Inflation, meanwhile, is predicted to reach 3.5-4.0 per cent for the year.

Deputy Minister of Finance Nguyen Duc Chi has said that the State Securities Commission (SSC) is reviewing the provisions of the Law on Securities and guiding documents in order to address the inadequacies and problems. The Ministry of Finance (MoF) will continue to complete the strategy for the development of the stock market to 2030, for submission to the government for approval, which aims to develop the market sustainably and increase the application of technology in management and administration.

The Hanoi Stock Exchange (HNX) has reported that the VN30-Index lost 11.48 per cent in September compared to August, but trading on the derivatives market in the month rebounded after a sharp decline in August. At the end of September, the number of derivative trading accounts stood at more than 1.1 million, up 1.88 per cent compared to the previous month. The proportion of foreign investor transactions accounted for 1.66 per cent of the total, down against August.

The Ministry of Finance has said that of the five revenue sources that exceeded estimates in the first nine months, the collection of house and land taxes did so by 18.4 per cent and the collection of personal income taxes by 8.8 per cent. However, many analysts believe that budget revenue from land is still quite low compared to many other countries.

At the launch of a money transfer service between Mobile Money and bank accounts on October 6, Deputy Governor of the State Bank of Vietnam Pham Tien Dung said that after eleven months of pilot implementation, as of the end of August there were about 2.2 million Mobile Money users in the country, of which 68 per cent were in rural or remote areas. He said a goal has been set of 10 million people using Mobile Money by 2023.

Capital demand for green growth is quite large and long-term, so the burden of provision should not be put solely on the shoulders of the banking sector. According to Deputy Governor of the State Bank of Vietnam Pham Thanh Ha, “In the 2021-2030 period, to realize green growth, the government will focus on promoting resources from commercial loans and private investment such as green credit and green corporate bonds.”