Banking & Finance

ACBS Securities has forecast that under the most optimistic scenario, the VN-Index moves into a range of 1,800-1,900 points by the end of 2022, up 44.5 per cent since May 31. Even in the most pessimistic scenario, with uncertainty clouding the global market, the stock market could still be around 1,450 points by the end of the year.

The State Bank of Vietnam (SBV) is working to cut lending interest rates to help businesses recover post-pandemic. According to Vietcombank Securities (VCBS), however, lending rates will be under upwards pressure in the near future, as inflationary pressures remain significant, but there is a need for higher credit growth during the economic recovery.

Figures from FiinPro show that VND37.5 trillion ($1.6 billion) worth of corporate bonds were issued in May, of which the real estate group issued VND7 trillion ($301.8 million), up significantly from April.

Many analysts believe that tax collections from organizations and individuals conducting cross-border digital services and e-commerce is not commensurate with the huge revenue earned. According to the Ministry of Finance (MoF), each year Vietnam’s tax sector fails to collect 85 per cent of the tax owed by Facebook and Google alone.

Under the “Restructuring the system of credit institutions associated with bad debt settlement in the 2021-2025 period” project, which has been approved by Deputy Prime Minister Le Minh Khai, by 2023, the capital adequacy ratio (CAR) at commercial banks is to reach at least 10-11 per cent and at least 11-12 per cent by 2025.

A loophole left by Resolution No. 42 that will expire on August 15, 2022, will prolong the bad debt settlement process, affect the restructuring of the credit institution network, and discourage investors from participating in handling bad debts and mobilizing capital at home and abroad. Many National Assembly deputies have therefore agreed with a government proposal on extending the Resolution, but said it is necessary to complete the legal framework and develop a debt trading market.