Banking & Finance

According to the Ministry of Finance (MoF), when unusual fluctuations appear in gasoline prices, many countries around the world cut VAT and excise tax rates and even introduce subsidies to help citizens. However, for many reasons, Vietnam has only reduced environmental protection taxes.

The Ministry of Finance is seeking comments on a draft Decree on Special Preferential Import Tariffs for the implementation of the ASEAN - India Free Trade Agreement (AIFTA) in the 2022-2027 period. Under the draft, from December 31, 2021, all tariff lines in Vietnam’s normal track (NT) will fall to 0 per cent and items on the sensitive track (ST), including the highly sensitive list (HSL), will have tax reductions completed by December 31, 2023.

Vietnam plans to keep its public debt level to no more than 60 per cent of GDP by 2030 and external debt to less than 45 per cent of GDP. According to a Ministry of Finance report, the public debt to GDP ratio has decreased over time. As of the end of June 2021, the government’s debt was more than VND3.1 quadrillion ($133.8 billion), of which foreign loans were more than VND1.1 quadrillion ($47.5 billion).

Techcombank will hold an “Overseas Talent Roadshow” in Singapore and London during July, the first time a Vietnamese bank has conducted an international recruitment campaign seeking Vietnamese talent living and working abroad.

According to Mr. Pham Chi Quang, Deputy Director of the Monetary Policy Department at the State Bank of Vietnam (SBV), the central bank will increase the frequency of foreign currency sales to supplement supply and manage VND liquidity to support stability in exchange rates, foreign currency, and interest rates.

As interest rates continue to rise all around the world, the State Bank of Vietnam (SBV) has said it will continue to keep rates unchanged in order to help businesses restore production. However, securities companies such as HSBC, MBKE, and VnDirect have forecast that the central bank may have to increase rates by 0.5 points sometime in the third quarter.