Banking & Finance

Vietnam is still in a monetary easing period due to the negative impact of Covid-19. However, by increasing money supply, the Vietnam Dong (VND) will depreciate, to the detriment of foreign investors in the country. Import-export businesses also need to take into account the risks when exchange rates change.

The wave of returning FDI in foreign investment data for Vietnam in the first eight months of the year shows that the capital flow is more positive after a difficult year due to Covid-19, creating opportunities for the stock market.

According to a report from the Ministry of Finance, the total premium revenue of insurance companies as of the end of August was estimated at VND133.04 trillion ($5.8 billion), up 16.96 per cent compared to the same period of 2020.

Bank stocks are becoming more attractive as their prices are down 15 per cent from their peak. According to VnDirect, the stock market is an attractive investment channel and will continue to be so into 2022.

Abundant liquidity, extensions to the debt restructuring period, and a switch to buying foreign currency by the State Bank of Vietnam (SBV) have been assessed by the Bao Viet Securities Company (BVSC) as actions towards adding Vietnam dong (VND) to the market to support the economy, especially as businesses are facing a lot of difficulties due to the pandemic.

There were 52 corporate bond issuances in August, an increase of more than 40 per cent year-on-year, in which banking continued to lead in value accounting for 41.6 per cent of the total. Issuances in the first eight month totaled 490, with VND308.5 trillion ($13.6 billion) in value.