Banking & Finance

The Ministry of Finance (MoF) has proposed extending the excise tax on domestically-produced and assembled cars for another two months from the October to November tax period. The total excise tax to be extended is about VND4.4 trillion ($194.16 million).

It is necessary to adopt consistent and comprehensive financial orientations and solutions to help Vietnam’s economy overcome the shocks from the pandemic, restore production, and develop sustainably, according to Deputy Minister of Finance Vo Thanh Hung. The aim of the financial strategy for the 2021-2030 period will be to reform and improve the quality of financial institutions towards consistency, transparency, and integration.

Covid-19 has increased the risk of default for businesses mobilizing capital at high interest rates but without a clear or viable business plan. Many types of bonds issued in Vietnam lack a credit rating, and some are not backed by collateral or have a pay guarantee.

The State Bank of Vietnam (SBV) will expand credit growth limits on banks in the fourth quarter, based on capital and risk management capacity.

With low interest rates on corporate bonds, banks have taken advantage of restructuring old debts and issuing new bonds as well as increasing bond purchases ahead of time to meet the State Bank of Vietnam (SBV)’s capital ratio regulations.

MB Bank and international payment provider UnionPay will issue the first UnionPay international non-physical debit card in Vietnam, allowing users to pay for goods and services via QR Codes or non-contact payments.