Banking & Finance

The State Bank of Vietnam (SBV) is researching a decree on a controlled trial mechanism for financial technology (fintech) activities in the banking sector, for submission to the government for promulgation this year. The central bank will also focus on helping credit institutions and foreign bank branches in Vietnam receive foreign aid and concessional loans to finance projects on the green classification list.

According to estimates from SSI Research, VietinBank is expected to post the highest profit growth among Vietnamese banks in the second quarter of 2022, of 68 per cent, followed by the Military Commercial Joint Stock Bank with 64 per cent.

Dr. Can Van Luc, Chief Economist at BIDV and Head of the BIDV Training and Research Institute, told the “Improving the legality of bad debts after the end of the Resolution 42 pilot” seminar, organized by VnEconomy on July 13, that Covid-19 remains unpredictable and the Russia - Ukraine conflict, China’s growth slowdown, rising prices, higher interest rates, and growing financial risks count among the factors affecting bad debts in Vietnam in 2022 and subsequent years.

While the idle funds of the population going to banks continues to increase sharply, deposits by economic organizations are showing signs of falling. According to analysts, the decline in deposits by the latter is a good thing, proving that the economy is actually recovering. Money is again returning to the economy through production and business activities and not stagnating at banks.

Mr. Tran Quan, General Director of the State Treasury, has called for the quick completion of processes on spending control and automated payments. Coordination with commercial banks is needed to expand budget collections and electronic payments, while information technology applications should be promoted and the State Treasury modernized to become a Digital State Treasury by 2030.

The price of many strategic materials under pressure from global uncertainties remains the greatest “unknown” that may “shake” the control of inflation over the second half of the year. According to analysts, however, there is still ample opportunity to keep inflation at below 4 per cent.