Topic: bank

Two major foreign banks offer varying projections for Vietnam's economic performance in Q1 and 2024, highlighting the interplay between domestic momentum and external uncertainties.

Comprehensive framework to create opportunities to develop sustainable financial products under international standards.

The Central Institute for Economic Management (CIEM) has said the lack of a legal foundation for fintech and the circular economy raises concerns about risks and negative consequences. It is therefore necessary for Vietnam to accelerate the testing of a sandbox mechanism in the banking sector.

After the State Bank of Vietnam (SBV) raised the ceiling interest rate for deposits under six months to 6 per cent per annum, many banks increased their rates from October 25. The highest is at SCB, at up to 9.3 per cent per annum. Analysts have forecast that interest rates will continue to increase over the closing months of the year due to exchange rate pressure and inflation.

Mr. Michael Kokalari, Chief Economist at VinaCapital, said the valuations of Vietnamese bank stocks are currently quite low compared to expected earnings growth of at least 30 per cent in 2022 and 20 per cent in 2023. In the long term, the banking sector will continue to be attractive due to high margins, well-controlled asset quality, low mortgage and retail penetration, and rising earnings.

The Vietnam Posts and Telecommunications Group (VNPT)’s VNPT Money has launched a feature for transferring and receiving money using VietQR codes with 36 banks on the Napas system. This service will increase the coverage of touchless payments via Mobile Money. There are now nearly 1 million Mobile Money users.

Liquidity in the banking system has risen in recent times, helping to cool interbank interest rates. The overnight interbank interest rate has fallen from more than 8.35 per cent per annum to 7.72 per cent. According to the Vietnam Interbank Market Research Association (VIRA), liquidity is forecast to be less of an issue but still not abundant.

Citi has won the Best Corporate Bank award at the 2022 Asiamoney Best Bank Awards for Vietnam.

At the end of the session on September 6, the interbank interest rate for VND loans was 5.44 per cent per annum for an overnight term, only slightly lower than the last peak of 5.56 per cent per annum in February 2016. Liquidity in the system is still tight and interbank interest rates continue to increase despite the State Bank of Vietnam’s intervention.

On August 30, 2022, in Ho Chi Minh City, HDBank and DEG co-organized a “German Desk Networking Event”, looking back on the one-year journey of German Desk cooperation. Through the German Desk, the German Government and DEG have provided support packages and financial solutions to businesses for sustainable economic development. HDBank has also provided commercial banking solutions for German businesses in Vietnam as well as Vietnamese businesses exporting to Germany and other European countries.