Banking & Finance
G-bond market sees strong growth in 8M
Government bond issuance reached VND238.7 trillion ($9.04 billion).
Vietnam Today
Prime Minister outlines strategic direction for implementation of fiscal, monetary policy
In his official dispatch No. 159/CD-TTg, dated September 7, PM Pham Minh Chinh sets forth directions for coordination of fiscal and monetary policies.
Banking & Finance
Construction of HMC City International Financial Center to start in September
The $7 billion center is expected to serve as a hub for banking, asset management, capital markets, fintech, and derivatives trading.
VDSC: Operating interest rate may fall if Q3 growth is negative
Rong Viet Securities (VDSC) expects that credit growth will slow further due to Covid-19. If GDP growth is negative in the third quarter, the State Bank of Vietnam (SBV) may continue to cut the operating interest rate.
Return on corporate bonds of interest to individual investors
The proportion of individual investors buying corporate bonds has fallen sharply in recent years. Some still do so, however, if only because of the more attractive interest rates compared with bank deposits. The corporate bond market is forecast to continue growing in the time to come.
VnEconomy conference: Banks not responsible for bond repayments
Banking expert Mr. Nguyen Tri Hieu told VnEconomy’s online “Development of the corporate bond market: Balancing the advantages of issuers and investors” conference that banks are just service providers, receiving service fees from issuers without being responsible for whether business can repay the bond principal and interest. That means the risk to investors is significant if the issuing company defaults.
Textile stocks heading upwards
Textile stocks have grown handily since July thanks to strong profits being posted for the second quarter from rising demand in the US and EU. This group of stocks is, however, facing many challenges and earnings growth is expected to slow in the second half of 2021.
Banks raise issues with loan restructuring
Covid-19 has resulted in banks accumulating more bad debts. Since June 10, 2020, outstanding loans at 14 credit institutions have totaled about VND600 trillion ($26.25 billion). Under current regulations (Circular No. 03), this debt balance is not restructured. Banks have identified 12 issues in the implementation of Circular No. 03 and suggested they be amended immediately or a new circular issued.
Not all stocks to rise in 2H
Experts have predicted that cash flows won’t go into every stock in Vietnam during the second half of 2021, adding that only stocks that are able to maintain growth in the context of the pandemic and when the economy recovers will benefit. Other experts are concerned that stock prices are too high. But “high” or “low” remains subjective and depends on profit growth expectations. There are many investors who buy or sell based simply on emotions.