Banking & Finance

The Ministry of Finance (MoF) aims to increase total State budget expenditure by VND2.6 quadrillion ($114 billion) in the 2021-2025 period, while keeping the proportion of GDP at 28 per cent, as in the 2015-2020 period.

The Ministry of Planning and Investment expects total State budget capital to reach VND516.7 trillion ($22.64 billion) in 2022, an increase of 8.3 per cent compared to the 2021 plan.

Credit growth did not increase in July or in the first half of August, while people seem to have deposited less and less money into banks in recent years.

Tax revenues from the 23 localities that contribute 70 per cent of total State budget revenue have fallen substantially due to social distancing and suspended production. The General Department of Taxation will therefore promote tax collections on commercial business activities through e-commerce and digital platforms.

There are differing opinions about a new draft circular from the State Bank of Vietnam (SBV) tightening regulations on corporate bond purchases, with many saying such measures would affect the rights of credit institutions to participate in the corporate bond market. It appears, however, that the SBV will move forward with the draft.

Interbank interest rates have come down due to the small number of loans and abundant liquidity. Low interest rates show that the economy is not yet in a period of recovery.