Banking & Finance

Data from the State Bank of Vietnam (SBV) shows that after eight consecutive quarters of growth, individual deposits to banks had declined as of the end of June. Experts cite two reasons: the amount of idle funds held by businesses and individuals no longer being so abundant, and credit sources becoming limited as banks have hit their lending limits.

Food prices increased 2.3 per cent year-on-year in August; the highest rise since November 2020 and the fourth consecutive month of higher prices. Transport services increased 8.94 per cent year-on-year in the month; the lowest level since April. The Bao Viet Securities Company (BVSC) has forecast that annual inflation will come in at around 3.1-3.5 per cent.

The Ministry of Finance has reported that reductions to floor levels in environmental protection taxes for gasoline, oil, and grease will cut State budget revenue this year by more than VND33 trillion ($1.4 billion).

Foreign investors posted an unexpected net withdrawal in the first session of the new month on September 5. There remain many stocks going against the trend and attracting strong capital inflows, however, such as steel and chemical fertilizer.

In place for a decade, the Law on Deposit Insurance will be revised to match changing circumstances and international practices, helping Deposit Insurance of Vietnam (DIV) participate more effectively in the process of restructuring credit institutions and better protecting depositors.

Figures from VnDirect show that the VN-Index increased 6.3 per cent in August; higher than most countries in the region. It has, however, fallen by 14.4 per cent since the beginning of the year, but this has still surpassed the MSCI emerging market index.