Banking & Finance

According to Viet Dragon Securities (VDSC), with lending rates on the rise, tightening credit space may push rates even higher in the second half of the year. The State Bank of Vietnam could adjust its credit growth target to make it more in line with actual needs, and credit growth for the year as a whole could reach 16 per cent.

The CPI in August increased just 0.005 per cent over July, 3.6 per cent compared to December 2021, and 2.89 per cent year-on-year. According to the General Statistics Office, increases are due to rising prices for essential consumer goods and services. Domestic gasoline prices have, however, been cut since July.

At a national conference on removing difficulties during the implementation of the 2 per cent interest rate support program, held on August 26, banks no longer proposed increasing the credit growth limit. Instead, difficulties raised this time mainly related to the identification of beneficiaries and lending conditions.

According to FiinGroup, credit increased strongly in the first half of the year but the average completion of annual profit plans for 2022 in the banking industry stands at just 51.5 per cent. Twenty-six of the 27 listed banks have set a target of after-tax profits growing more than 33 per cent, but their ability to complete plans is relatively low without additional credit lines.

A series of problems are holding back the disbursement of public investment capital in the provinces of Working Group No. 6. Minister of Finance Ho Duc Phoc has expressed concern that it may be difficult to meet the targeted VND500 trillion ($21 billion) in disbursement this year.

On August 26, the PVcomBank Fund Management Joint Stock Company (PVCB Capital), in cooperation with the Fincorp Joint Stock Company (Fincorp), signed a cooperation agreement to deploy the Fplatform digital transformation solution for asset management in Vietnam.