Topic: 2022

The government issued Decree No. 59/2022/ND-CP on electronic identities and authentications on September 5. The Decree applies to Vietnamese agencies, organizations, and citizens, and foreign organizations and individuals operating or residing in Vietnam. It takes effect from October 20.

On September 6, at the regular government meeting, Prime Minister Pham Minh Chinh noted 12 outstanding results in socio-economic development over the past eight months, such as vibrant trade and services, rapid recovery in all industries, investment capital from society continuing to increase, business development achieving positive results, and public debt and government debt continuing to decline, etc.

Though the number of customers using Mobile Money services has reached nearly 2 million, a 440 per cent increase since the end of 2021, growth has slowed in recent months. The Ministry of Information and Communications (MoIC) is striving for monthly growth to hit 20 per cent, for 3.5 million customers using Mobile Money services by the end of this year.

Data from the State Bank of Vietnam shows that as of the end of August, total credit at credit institutions in Ho Chi Minh City stood at over VND3.1 quadrillion ($132 billion), up 0.4 per cent compared to the end of July and 11 per cent compared to the end of 2021.

Mirae Asset Securities believes that interest rates will increase in the second half of 2022 to stabilize exchange rates and control inflation, which will affect industries and companies using a high degree of financial leverage. It is also optimistic about companies involved in industrial park (IP) development.

Vietnam’s tourism sector witnessed a clear recovery in the first eight months of 2022 though more is needed to return to pre-pandemic levels.

Real estate posted the least effective business results in the second quarter of 2022 of eleven industries, with many listed companies seeing negative market capitalization growth. Total revenue in the second quarter by listed real estate companies was down 58.4 per cent year-on-year while net profits were down 51.3 per cent.

Many new policies on labor and wages come into effect in September, such as a regulation on a two-day holiday for National Day, regulations on working time and rest periods for employees who operate, maintain, or repair gas distribution pipelines and gas works, and a pilot on work and vocational guidance and training for inmates outside of prison.

Vietnamese startups raised a total of $1.5 billion in investment last year, according to Nextrans Vietnam. Fintech (financial technology) led the way in venture capital (VC) funding, accounting for 26.6 per cent of the total, revealing the confidence shown in its prospects. There were seven leading fintech startups named by Fintechnews: VNLife, M_Service, Sky Mavis, Trusting Social, Timo, Finhay, and Nano Technologies.

Bond issuances by real estate enterprises have been declining in recent times. According to the Vietnam Bond Market Association (VBMA), there were only eight individual corporate bond issuances in August, and only one was by a real estate company. One real estate enterprise issued bonds in July.