Banking & Finance

The Ministry of Finance (MoF) has proposed that initial registration fees for electric vehicles be cut by 50 per cent, to boost sales. The number of electric vehicles in Vietnam remains quite modest, and the country has just one auto maker producing them - VinFast.

The International Finance Corporation (IFC) has completed the acquisition of 6.29 per cent of HDI Global’s holding in the PVI Joint Stock Company, with the ambition of making it a leading insurance company in Southeast Asia. The two strategic partners now hold more than 51 per cent of PVI’s charter capital and over 54 per cent of voting rights.

The State Bank of Vietnam cut operating interest rates three times last year, but according to Deputy Governor Dao Minh Tu, now is not the right time to make further cuts. The reason is that the central bank is already implementing a range of synchronous solutions, such as lowering interest rates and structuring loans.

The lack of easy access to cheap bank credit has pushed up demand for capital mobilization via corporate bond issuances. Because corporate bond interest rates are still quite high compared to bank deposit rates, the bond market is forecast to continue to grow strongly in the second half of 2021.

Active funds saw a net withdrawal of $191.6 million in the first seven months of 2021, while exchange-traded funds (ETFs) saw a net withdrawal of nearly $700 million. Vietnam is still receiving the most foreign capital in Southeast Asia. August ETF inflows, however, are likely to be weaker than in July. Some experts believe that this is due to the risk of inflation and the ongoing pandemic.

The tax sector will strengthen the solutions available to prevent tax losses, such as applying information technology and artificial intelligence to limit tax evasion and transfer pricing. Starting from this month, collections are being conducted via e-commerce platforms, which are responsible for providing and sharing information with tax authorities.