Banking & Finance

According to SSI Research, rentals at industrial parks are expected to continue to rise at 8-20 per cent in the immediate future. Businesses with land available for lease therefore have an advantage over new industrial parks approved for planning, which may take 2-3 years to come into operation.

The pressure to issue government bonds to fund public investment projects is not overly high so interest rates should increase slowly. However, according to some analysts, rates may increase faster as the pace of public investment disbursement increases from now to the end of the year.

Of the four main capital injection channels in the real estate market, issuing corporate bonds is being narrowed and this leads to huge financial risks. Minister of Construction Nguyen Thanh Nghi has proposed restructuring real estate credit, avoiding risks but also creating favorable conditions for loans to projects that are legal and effective.

The Ministry of Finance (MoF) is expected to submit to the government and the National Assembly Standing Committee a proposal to cut the environmental protection tax on gasoline and also the preferential import tax on gasoline from 20 to 12 per cent, and to offer solutions to regulate prices relating to gasoline to control inflation.

Capital flows through exchange-traded funds (ETFs) into Vietnam have reached a net value of $109.3 million since the beginning of June. Analysts said that rising inflation in the US and signs of the US Fed increasing interest rates have resulted in money being withdrawn from stock markets, including in Vietnam, causing ETF flows to slow.

In the latest report on macro-economic and foreign exchange policy from the US Department of the Treasury, the US continues to recognize that Vietnam is not a currency manipulator. The Department also appreciates the management of monetary and exchange rate policies by the State Bank of Vietnam in recent times.