Banking & Finance

Chairing an April 22 conference on developing a safe, transparent, and efficient capital market to stabilize the macro-economy and ensure major economic balances, Prime Minister Pham Minh Chinh affirmed that the government will strictly handle violations in the market to protect the interests of investors and businesses and will support its fast and sustainable development.

In a meeting with the Deputy Governor of the State Bank of Vietnam (SBV), Mr. Pham Thanh Ha, Mr. Zafer Mustafaoglu, Director of the World Bank (WB)’s Department of Finance, Competition and Innovation in East Asia - Pacific, affirmed that it stands ready to support the SBV to develop a modern, inclusive, and resilient financial and banking sector, and supports the central bank in digital transformation, perfecting a legal framework on green credit and banking, and joining the Network for Greening the Financial System (NGFS).

Banking stocks are highly regarded by experts, analysts, and most securities companies thanks to the expectation of solid profit growth in 2022. Yet these stocks have begun to take a downwards turn. According to experts, banking stocks grew quite well in the first half of 2021 but there is no longer any momentum. And most leading banks have run out of foreign ownership space.

Along with network expansion, many banks in Vietnam are focusing on developing human resources, especially highly-qualified human resources, to respond to technology 4.0. According to figures from the State Bank of Vietnam (SBV), 95 per cent of credit institutions have been developing and implementing digital transformation strategies.

Prime Minister Pham Minh Chinh has directed relevant ministries, branches, and agencies to immediately take measures to ensure the security and safety of financial and securities market operations. In particular, the Ministry of Finance (MoF) and the State Securities Commission of Vietnam (SSC) must publish and provide official and truthful information and request that enterprises disclose information in accordance with the law.

In just the first two months of 2022, individual savings deposits in banks reached VND159 trillion ($6.91 billion), higher than the VND158 trillion ($6.86 billion) recorded in 2021 as a whole. According to analysts, this “unusual” movement was mainly due to commercial banks raising their deposit interest rates. The slowdown in other investment channels, such as real estate, securities, and corporate bonds, also resulted in cash flow returning to the banking system.