Banking & Finance

The Asian Development Bank (ADB)’s Asia Bond Monitor report released on September 14 shows that the local currency bond market rose 8.1 per cent in the second quarter of 2022 compared to the previous quarter and reached $99.5 billion. It grew 31.6 per cent year-on-year in the first eight months.

Figures from 26 of Vietnam’s 27 listed banks reveal plans to grow after-tax profits by up to 33 per cent in 2022. However, analysts believe banks will have to manage plans smartly given that net income margins (NIM) are becoming smaller.

Mr. Don Lambert, Head of the Private Sector Development Department at the Asian Development Bank (ADB) in Vietnam, told the “Development of the corporate bond market - Trust and responsibility” seminar on September 13 that Vietnam’s capital market has developed rapidly and is expected to grow further in the future. He also said that the development of credit rating agencies and the bond market are not synchronized and the country needs more of the former.

At a seminar on the development of the corporate bond on September 13, analysts said the market has grown 30-35 per cent annually in recent years. If such growth can be maintained, the total market size will reach VND11.2 quadrillion ($473.68 billion) in the next six years, thus easing capital pressure on banks and credit institutions.

Sharing his views on controlling credit growth in the context of inflationary pressure, Mr. John Andre, a researcher and senior lecturer at a number of universities in Vietnam, said that one of the purposes of credit control is to improve credit quality and ensure the operational safety of the banking system. Vietnam’s credit/GDP ratio is currently at a high level and tending to increase.

The Ministry of Finance has said that total State budget revenue reached VND106 trillion ($4.48 billion) in August, a fall of VND46 billion ($1.94 billion) compared to July. Revenue increased in the first eight months, however, by 19.4 per cent year-on-year and posted a surplus of more than VND250 trillion ($10.56 billion).