Banking & Finance

According to the State Bank of Vietnam (SBV), credit in the economy as a whole in the last ten days of June increased 0.84 per cent, or nearly VND70 trillion ($2.98 billion). Credit growth in the first half of the year therefore stood at 9.35 per cent.

Securities companies expect increases in deposit interest rates to slow in the third quarter of 2022 because of low demand for capital mobilization. The pressure to raise deposit rates will increase by the end of the year, however, after the State Bank of Vietnam (SBV) opens up credit space for commercial banks and especially when the ratio of short-term capital for medium and long-term loans falls from 37 to 34 per cent, under a Decision from the SBV to take effect on October 1.

SSI Research has forecast that steel stocks will remain unattractive in the short-term, as valuations are under pressure from low profits and the possibility of continued volatility in steel prices.

The Viet Dragon Securities Company (VDSC) believes the USD/VND exchange rate is under considerable short-term pressure to increase but this pressure will ease by the end of the year. It forecasts a 2-2.5 per cent depreciation for the year as a whole.

A Circular from the State Bank of Vietnam (SBV) on allowing credit institutions to restructure debt repayment terms and exempt or reduce interest rates and fees in order to support customers affected by Covid-19 became effective on June 30. Banks actively setting up risk provisions has eased concerns over bad debts due to Covid-19.

The State Bank of Vietnam (SBV) has issued Circular No. 05/2022/TT-NHNN abolishing eleven legal documents concerning the banking industry, such as documents on inter-bank electronic payments and regulations on foreign currency trading by economic groups and State-owned corporations, among others, from August 15.