Banking & Finance

According to Mr. Michael Kokalari, VinaCapital’s Chief Economist, the conditions and business practices in the Chinese and Vietnamese real estate markets are not the same, so the chance that the Evergrande debt crisis in China will affect Vietnam is negligible.

With the difficulties facing businesses being primarily due to a lack of cash flow, it is necessary to introduce a rapid and large-scale interest rate stimulus package. It is also possible to use foreign currency reserves to revive businesses instead of issuing bonds, experts told the “Brave, creative and responsible enterprises against the pandemic” online forum held on October 11.

As of October 7, credit in the entire banking sector had increased only 7.42 per cent compared to the end of 2020. From January 23, 2020 to the end of September, the total amount of interest exemptions and reductions to support businesses was VND27 trillion ($1.2 billion).

It is difficult to inspect, examine, and collect tax debts due to ongoing social distancing measures. There had been only 46,752 such inspections carried out this year as of the end of September, or 51 per cent of the plan.

The State Audit Office of Vietnam will conduct 168 audits in 2022. Among others, there will be 17 audits at the State Bank of Vietnam, nine in State economic groups, and seven at commercial banks and other financial and credit institutions.

Forty-two corporate bond issuances were conducted in September, mobilizing VND29.734 trillion ($1.3 billion). The real estate group attracted VND8.394 trillion ($369.56 million) in private placements with high interest rates. Experts, however, have warned that this may be the beginning of a “Vietnamese Evergrande”.