Banking & Finance

The stock market fell significantly in the second quarter of this year. Kis Securities believes that profits at securities companies in the closing months will be equal or slightly down year-on-year. It also touched on three factors affecting the securities industry from now to the end of 2022: the implementation of the KRX system, the redistribution of corporate bonds, and uncertainties over an upgrade to the local stock market.

The Law on Prices and the legal framework on valuations have now been implemented for a decade. From recent mistakes relating to valuation activities and the quality of appraisers, it is clear that, if not corrected, these will be further corrupted, distorting prices in economic transactions, abetting wrongdoings, and causing losses of State budget and property.

In order to consolidate and improve the quality of appraisal services and contribute to limiting negativity in the management and use of assets, avoid wasting social resources, and ensure similarity among services, the Ministry of Finance is actively collecting comments on its draft revised Price Law. Many regulations have attracted conflicting opinions, however.

Mirae Asset Securities has forecast that bad debt ratios at banks may increase in the closing months of 2022. A recent increase in the bad debt ratio is due to grace periods in debt restructuring coming to an end.

Dr. Can Van Luc, Chief Economist at BIDV, has said there are many positive factors enabling the State Bank of Vietnam (SBV) to open up credit space in September. These include liquidity in the banking system being fully under control. Medium and long-term capital flows are stronger, and the proportion of short-term and medium-term capital has improved markedly.

Analysts believe that positive points in the revised Law on the Insurance Business include the removal of limits on investment in stocks and corporate bonds and the granting of permission to invest in trust funds. The revised law also allows foreign investors to own up to 100 per cent of charter capital in insurance or reinsurance companies.