Banking & Finance

Sixteen commercial banks have agreed to cut their lending interest rates from July 15, 2021, to the end of the year, with customers saving an estimated VND20.61 trillion ($906.11 million). In which, four State-owned commercial banks committed to a dedicated support package of VND4 trillion ($175.81 million) to reduce interest rates and service fees.

The value of foreign investors’ portfolios in Vietnam’s stock market has increased 6.5-fold over the course of the past decade, to $50 billion. According to Mr. Andy Ho, CEO of VinaCapital Group, when Vietnam is upgraded from MSCI Frontier Markets to MSCI Emerging Markets, interest among foreign investors will increase at least 100-fold compared to now.

Data from SSI Research shows that the State Bank of Vietnam’s purchase of foreign currency from commercial banks has injected some VND60 trillion ($2.64 billion) into the market, helping reduce the interbank interest rate.

International Financial Reporting Standards 17 (IFRS 17) will become effective from January 1, 2023 and have a comprehensive impact on the business activities of insurance companies. Vietnamese insurers must begin preparations now to keep pace with market changes and compliance requirements.

Many people have withdrawn money from banks over the past year after deposit rates hit a record low. According to Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu, if rates remain too low then people will switch to real estate investments or gold purchases. This can lead to some degree of economic instability. A number of banks have slightly increased their interest rates.

The State Securities Commission of Vietnam (SSC), in collaboration with the Luxembourg Aid & Development, has launched the website http://nhadautu.srtc.org.vn, which helps investors improve their understanding of securities and the stock market and recognize cheating and fraud as Vietnam’s stock market grows steadily.