Banking & Finance

Capital for build-operate-transfer (BOT) traffic projects is much sought after while access to bank credit continues to be difficult. Transport companies therefore need to find other sources of capital, especially corporate bonds. Bonds issued by BOT enterprises with a term of over ten years may be considered by foreign investment funds.

Real estate has taken the lead in the value of corporate bond issuances. As of October 15, the value of corporate bonds issued this year by the real estate group stood at more than VND148 trillion ($6.48 billion), accounting for 37 per cent of such issuances.

Remittances to Ho Chi Minh City in 2021 are expected to be 10 to 12 per cent higher than in 2020. This is an impressive figure given the pandemic and a major source of support for Vietnam’s balance of payments.

Despite predicted increases, many companies posting positive business results and profits have seen their stock price fall, with banking, securities, and steel stocks being examples. Conversely, the stock price of some companies with declining profits or losses and a gloomy outlook have increased significantly.

The decline in blue-chips on Vietnam’s stock market continued on the morning of October 25, taking the VN30-Index down to below the reference point. The market remained positive, however, with many groups, especially oil, construction, and insurance, gaining ground, while pillar stocks pushed up the VN-Index.

Many credit institutions in Vietnam have cooperated with and received technical support from international financial institutions to develop regulations on environmental risk management when granting credit. Green growth and sustainable development have therefore become trends and goals for every country to aspire to, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu told a seminar on promulgating a Circular guiding environmental risk management in the credit granting activities of credit institutions.