Banking & Finance

The State Bank of Vietnam has issued a regulation stating that banks are allowed to buy bills and certificates of deposit (CODs) with a remaining term of less than 12 months in order to unify the transaction term between banks and the time limit for banks to discount with customers. Foreign bank branches will not be allowed to buy convertible bonds.

The total transaction value of government bonds in July was down by more than a quarter compared to June. The first auction to buy back government bonds, however, was successful.

Amid weak credit demand due to prolonged social distancing measures and abundant sources of VND from mature foreign currency contracts, interbank interest rates are forecast to decrease slightly. The balance of payments improved due to stable domestic foreign currency supply and demand and falls in exchange rates.

The Delta variant of Covid-19 has dealt a severe blow to the recovery efforts of Vietnam’s aviation sector. Airlines are struggling to maintain liquidity and are borrowing additional working capital to overcome the difficulties.

Banking analysts have said that Vietnam’s banking sector has improved its resistance to risk, especially bad debt risk, following restructuring.

Foreign investors net bought by some VND4.94 trillion ($215.15 million) on the Ho Chi Minh Stock Exchange (HoSE) during July.