Banking & Finance

FiinRatings released a report on September 20 assessing the impact of Decree No. 65/2022/ND-CP, which amends and supplements a number of articles in Decree No. 153/2020/ND-CP on offering and trading corporate bonds issued privately in the domestic market and offering corporate bonds in the international market. According to analysts, after Decree No. 65 is issued, corporate bond issuances will develop in a more healthy manner.

Based on the appreciation of the USD in the world market and new credit growth limits from the State Bank of Vietnam (SBV) for commercial banks, the Vietcombank Securities Company (VCBS) has forecast that the VND will depreciate by 3-4 per cent this year. It also forecasts that deposit rates will continue to increase this year, by 1-1.5 per cent.

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.