Banking & Finance

Vietnam’s economy will reach the “new normal” in 2022 but three macro risks remain for the country’s stock market: inflationary risks, risks from the Chinese stock market, and the impact of any “taper tantrum”.

The legal framework allowing credit institutions to use electronic technology for credit activities still exhibits shortcomings. Regulations allowing credit to be extended via electronic methods remain general in nature, which can create difficulties and lead to legal disputes between banks and customers.

In looking at the prospects for Vietnam’s economic recovery, many analysts and securities companies such as Mirae Asset and KB Securities believe now and into 2022 is a good time to buy oil and gas stocks.

Vietnam’s current account surplus has steadily increased in recent years thanks to strong trade growth. There has been a tendency this year, however, for the current account to be in deficit and increase. According to HSBC, the negative impact of the services deficit on the current account will linger, though it is unlikely to be overly much.

The Ministry of Finance (MoF)’s Price Management Department has said that inflation is expected to be only 1.9 per cent this year but pressure will come into play next year due to a range of unusual factors. While the country’s economic stimulus package supports economic growth, it also puts pressure on inflation.

There were 826 corporate bond issuances in the first eleven months of 2021 with a total value of over VND495 trillion ($21.5 billion), of which the real estate industry led with over VND187 trillion ($8.1 billion), or 38 per cent. Banking followed, with nearly VND170 trillion ($7.4 billion). There were also four bond issuances to international markets with a total value of over $1.4 billion.