Green Economy
UK launches new climate and green finance partnerships with Vietnam
The initiatives aim to accelerate Vietnam’s energy transition and sustainable development agenda.
Investment
Ministry proposes special mechanism for North-South Expressway expansion
Under the medium-term public investment plan for the 2026–2030 period, the Ministry of Construction has organized the preparation of a pre-feasibility study to widen sections of the Eastern North-South Expressway.
VET Exclusive
UK supports Vietnam’s economic transformation through its financial services sector
As a Comprehensive Strategic Partner of Vietnam, the UK is supporting the country's economic transformation through its financial services sector, as well as through investment, expertise, innovation, and long-term institutional cooperation.
USD/VND exchange rate tipped to rise
After a period of stability, the USD/VND exchange rate has recently begun to fluctuate by a wide margin. It is currently at a relatively high level compared to the beginning of the year, when the foreign currency status in the system was negative. United Overseas Bank (UOB) has forecast that the USD and other exchange rates will continue to rise in Asia as the US Fed increases interest rates in the year to come.
Banks raising deposit rates
In addition to interest rates starting to rise because of the year-end liquidity season, banks have also increased their deposit rates to boost the channel’s appeal compared to other investment channels.
Risks for stock market in 2022
Vietnam’s economy will reach the “new normal” in 2022 but three macro risks remain for the country’s stock market: inflationary risks, risks from the Chinese stock market, and the impact of any “taper tantrum”.
Laws creating difficulties in electronic-based credit
The legal framework allowing credit institutions to use electronic technology for credit activities still exhibits shortcomings. Regulations allowing credit to be extended via electronic methods remain general in nature, which can create difficulties and lead to legal disputes between banks and customers.
Oil & gas stocks growing in appeal
In looking at the prospects for Vietnam’s economic recovery, many analysts and securities companies such as Mirae Asset and KB Securities believe now and into 2022 is a good time to buy oil and gas stocks.
Current account deficit may linger
Vietnam’s current account surplus has steadily increased in recent years thanks to strong trade growth. There has been a tendency this year, however, for the current account to be in deficit and increase. According to HSBC, the negative impact of the services deficit on the current account will linger, though it is unlikely to be overly much.