Banking & Finance

With an interest rate support package of VND40 trillion ($1.75 billion) for businesses approved by the National Assembly (NA), the amount of credit with preferential interest rates flowing into the market may total VND2 quadrillion ($87.72 billion). As this sum is significant, the banking sector must adopt suitable policies to avoid any negative consequences.

According to a 2022 market outlook report from Yuanta Securities Vietnam (YSVN), capital increases as well as rises in foreign share ownership at banks will boost stock prices in the banking sector this year, especially State-owned banks such as BIDV, VietinBank, and Vietcombank.

The draft socio-economic recovery package and investment package for infrastructure totals VND113 trillion ($4.9 billion), of which VND103 trillion ($4.5 billion) will be invested in the North-South Expressway. Stocks of industry groups are therefore set to benefit, including construction material enterprises, construction businesses, and real estate businesses.

There were 964 domestic corporate bond issuances in 2021 with a total value of nearly VND600 trillion ($26.47 billion), and four issuances to the international market with a total value of more than $1.4 billion. The commercial banking group led in issuance value, with VND223 trillion ($9.83 billion), followed by the real estate group.

Revenue from the equitization of and divestments by State-owned corporations contributed VND1.4 trillion ($61.81 million) to the State budget in 2021, or just 3.5 per cent of the plan. This year, it is expected that divestments by six large firms, including FPT Corporation and the Hanoi Beer - Alcohol - Beverage Corporation (Habeco), will bring in VND20 trillion ($883.1 million).

The proportion of foreign transactions in Vietnam’s stock market has continually fallen sharply and currently stands at just 6 per cent of liquidity, while in late 2017 and early 2018 it was 20 per cent. Total net selling by foreign investors in 2021 was VND62.6 trillion ($2.7 billion).