Banking & Finance

The banking sector should continue to support and remove difficulties facing individuals and businesses, promote the recovery and development of production and business, and further cut lending interest rates, especially for priority sectors, and direct capital flows into production and business, Deputy Prime Minister Le Minh Khai told a conference on the tasks in 2022 for the banking sector on December 29.

Overseas remittances to Vietnam hit $12.5 billion in 2021. According to State Bank of Vietnam (SBV) Vice Governor Dao Minh Tu, remittances mainly flow through credit institutions, with 70 per cent, and the remainder through remittance companies, with 28 per cent, and post offices with 2 per cent. They contributed to supporting the growth of the stock market and the real estate market.

The securities sector grew significantly in 2021, proving that existing institutions in the stock market are suitable for the high and sustainable development of Vietnam’s economy.

At a ceremony to announce the ten most outstanding stock market events in 2021, Mr. Tran Van Dung, Chairman of the State Securities Commission (SSC), spoke of the market growth posted recently. Though foreign investors net sold by a record amount in 2021, of about $2.3 billion, their portfolio value increased, to $53 billion.

Customs revenue exceeded the target in 2021 and reached VND370 trillion ($16.23 billion), an increase of 19.2 per cent compared to 2020. The sector has set a target of VND352 trillion ($15.42 billion) in revenue in 2022.

A new credit package from the World Bank (WB) aims to encourage policy reform under two pillars: support economic recovery through tax and financial support for the growth of businesses; and contribute to greening trade policies, promoting e-government, and increasing the use of renewable energy. The WB is optimistic that Vietnam’s pace of reform will be accelerated in the time to come.