Banking & Finance

Based on FiinPro’s forecast for after-tax profit growth of 38 per cent in 2021 and 27 per cent in 2022, Vietnamese stocks will be valued at 18.2 times 2021 profit and 14.3 times 2022 profit. This shows that the outlook for 2021 profit is already reflected in the stock price while the market valuation remains attractive with a one-year outlook.

The value of corporate bond issuances by consumer goods enterprises in October stood at VND7.284 trillion ($320.48 million), accounting for 21 per cent of the total value and putting it in second place, surpassing the banking group but behind the real estate group.

To help businesses resume production, the Ministry of Finance (MoF) has proposed temporarily waiving late payment penalties on the underpayment of corporate income tax (CIT) in the first three quarters of the year.

The Vietnam Maritime Commercial Joint Stock Bank (MSB) will sell its entire stake in its consumer finance subsidiary FCCOM in order to focus on the retail, individual consumer, and small and medium-sized enterprise (SME) segments. The sale is expected to bring in $100 million and be conducted next year.

Many of the business plans set by the Vietnam Asset Management Company (VAMC) for 2021, such as buying bad debts with special bonds, buying debts at market value, and conducting debt recovery efforts will be difficult to complete given the lingering effects of Covid-19.

Credit risks are tending to rise and are putting pressure on bad debt levels. Controlling and handling bad debts continue to be a huge challenge for Vietnam’s banking sector. Analysts have said that the country needs to speed up the handling of bad debts and adopt comprehensive solutions.