Banking & Finance

Deposit rates rose an average of 3 basis points in the first quarter of 2022 compared to the fourth quarter of 2021. Average lending rates fell 8 basis points. VDSC Securities estimates that average growth of total net interest income in the banking sector was 21 per cent in the first quarter, with total operating income up 36 per cent and pre-tax profit 70 per cent.

On April 29, the last trading session of the month, the market strongly surpassed the first T+3 round, rising 1.17 per cent or 15.81 points. April, however, was still the worst month in two years for the VN-Index, which lost 8.4 per cent of its value. The fact that stocks gained just as the market is to take a four-day break shows investor expectations that trading trends will continue into May.

To improve Vietnam’s corporate bond market, the Minister of Finance has made three requests: review and amend regulations relating to corporate bond offerings and transactions; inspect the private placement of bonds at securities companies and enterprises; and closely supervise private corporate bond issuances.

Vietnam’s economy is clearly recovering and gross regional domestic product (GRDP) and retail sales are both increasing around the country. According to the General Statistics Office, the total retail sales of consumer goods and services in the first quarter rose 4.4 per cent year-on-year. The business expansion plans of some retailers will also make the market more active, opening up opportunities for retail real estate stocks to break out.

There is rising demand for USD due to the trade balance being in deficit and from many foreign enterprises transferring profits back to their parent company at the end of the fiscal year. In response, the State Bank of Vietnam (SBV) has offered USD in three-month terms for the first time since 2018 to support liquidity.

After nearly two years, domestic money flows are returning to their pre-pandemic trajectory. In particular, individual savings into the banking system have increased rapidly, while businesses have gradually withdrawn funds to put into production and business activities. Analysts say that this is the clearest sign yet of economic recovery.