Banking & Finance

According to UOB, a number of external risks are posing challenges to Vietnam’s GDP growth prospects, including the Russia - Ukraine conflict leading to inflation risks; global supply chain disruptions; tight monetary policy globally; and lingering Covid-19 risks.

After more than two years of being “frozen”, the open market operations (OMO) channel was reopened by the State Bank of Vietnam (SBV) on June 21 with an offering of VND10 trillion ($430 million). This reveals that the central bank is ready to withdraw money from the market to support inflation control.

In its recently released Global Outlook Report for the third quarter of 2022, United Overseas Bank (UOB) said Vietnam’s economy continues to grow steadily amid greater external risks. It believes the State Bank of Vietnam (SBV) has the capacity to keep interest rates stable to support economic recovery.

The United States International Development Finance Corporation (DFC) is to provide a $200 million loan to SeABank to help it improve its financial capacity and better implement projects, focus on the credit gap, and resolve shortfalls between the financial needs of the market and available funds in the economy.

According to Mr. Patrick Lee, Chairman of Standard Chartered Bank Vietnam, with an increasingly important role in international trade and global supply chains and its position as a manufacturing hub, Vietnam has a great deal of potential for development and offers many attractive business opportunities. The prospects for its banking industry are also very good.

The VietNam Holding Limited Fund believes that “Made in Vietnam” products are making inroads in global markets. The fund also assessed that Vietnam’s stock market is becoming very attractive.