Banking & Finance

To support businesses affected by Covid-19 since 2020, the Ministry of Finance has implemented a number of solutions to exempt and reduce taxes, fees, charges, and land rentals worth a total of more than VND477 trillion ($21 billion). The ministry is also collecting comments on a draft decree extending the deadline for paying VAT, corporate income tax, personal income tax, land rentals, and water surface rentals in 2022.

The State Bank of Vietnam (SBV) has said it will introduce five groups of solutions to further promote non-cash payments. Notable solutions include perfecting the legal framework, amending and supplementing a number of laws and decrees related to banking activities; building and promulgating a mechanism for the controlled testing of fintech activities in the banking sector; developing modern payment services; and developing infrastructure, upgrading the inter-bank electronic payment system.

SSI Research maintains a positive view of Vietnam’s banking industry in 2022. In the first quarter, the industry posted stable pre-tax profit growth thanks to three factors: strong credit growth, stable net interest margins (NIM), and bad debt and restructured loans being well-controlled. It is expected that pre-tax profit in 2022 will increase 24-25 per cent.

The benefits from meeting International Financial Reporting Standards 9 (IFRS 9) are clear, especially in opening the door to integration into the international capital market. Due to many obstacles and a lack of resources, however, only a few banks in Vietnam have actively implemented the standards.

The profit targets of listed companies in 2022 differ greatly. While some have targeted figures three or four times higher than in 2021, others expect profits to decline. Construction is the leading group in terms of revenue and profit plans in 2022, thanks to expectations of benefiting from the government’s promotion of public investment. Following are real estate and banking. The petroleum, chemical, steel, and food groups expect to post declines in revenue and profits.

The government bond and corporate bond segments are both growing rapidly and had boosted Vietnam’s local currency bond VET online - VET Chuyên mục khác Tiêu đề [8] ADB: Government bonds and corporate bonds growing quickly market to $91.5 billion by the end of December. Annual growth is up to 25.5 per cent, according to the Asian Development Bank (ADB).