Banking & Finance

SSI Securities has assessed that food and beverage (F&B) stocks will recover and grow in 2022 thanks to the recovery of the economy, changes in consumer preferences, and the development of new modern trade channels. Certain stocks, however, will recover to below pre-pandemic levels, SSI added.

The State Bank of Vietnam (SBV) will continue to restructure the network of credit institutions and keep credit conditions tight, strictly controlling loans for risky endeavors such as real estate, securities, build-operate-transfer (BOT) projects, and corporate bonds. It will also focus on promoting digital transformation and non-cash payments and perfecting documents on banking activities.

At a press conference on the banking sector’s tasks in 2022, the State Bank of Vietnam (SBV) revealed that credit growth as of December 31, 2021 increased 13.53 per cent compared to 2020. The SBV will tighten control over credit going to high-risk endeavors such as real estate, the stock market, and corporate bonds. Credit growth is expected to reach 14 per cent this year.

The Nova Consumer Group Joint Stock Company plans to conduct an initial public offering (IPO) of 10.9 million shares worth nearly VND474 billion ($20.86 million). It will then become the first company to IPO this year. The proceeds will help strengthen its financial capacity to develop its food product chain.

Vietnam’s stock market is booming in both quantity and quality, but foreign investors are forecast to continue to be net sellers in 2022, possibly selling up to $200 million. They could also net buy by $500 million, however, under a scenario of Vietnam’s GDP increasing 6.6 per cent next year.

With an interest rate support package of VND40 trillion ($1.75 billion) for businesses approved by the National Assembly (NA), the amount of credit with preferential interest rates flowing into the market may total VND2 quadrillion ($87.72 billion). As this sum is significant, the banking sector must adopt suitable policies to avoid any negative consequences.