Banking & Finance

An update from the Vietnam Bond Market Association (VBMA), the Hanoi Stock Exchange (HNX), and the State Securities Commission (SSC) puts the total value of bonds redeemed before maturity at VND28.833 trillion ($1.2 billion) in September, up 199 per cent over the same period last year. The total value of bonds bought back by businesses in the first nine months of 2022 was VND142.209 trillion ($5.9 billion), up 67 per cent year-on-year.

The State Bank of Vietnam (SBV) has officially adjusted the credit limit for four banks - Vietcombank, HDBank, MB, and VPBank - in a bid to support weak credit institutions under government policy. An additional VND83.5 trillion ($3.49 billion) will be injected into the economy following the move. The credit growth limit at 18 banks has now reached 13.6 per cent.

Liquidity in the banking system has risen in recent times, helping to cool interbank interest rates. The overnight interbank interest rate has fallen from more than 8.35 per cent per annum to 7.72 per cent. According to the Vietnam Interbank Market Research Association (VIRA), liquidity is forecast to be less of an issue but still not abundant.

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from 1,500 points at the beginning of 2022 to 1,074.52 points on October 6, and foreign capital has continued to be withdrawn.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.