Dialogue aimed at acknowledging the challenges facing enterprises and workers and seeking solutions to help overcome the difficulties in economic recovery.
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.
The State Bank of Vietnam (SBV) believes that inflationary pressure is tending to increase. The 2022 figure is expected to exceed 4 per cent, posing challenges in control efforts next year. Cutting lending interest rates will also face difficulties, due to deposit rates and the USD/VND exchange rate both tending to increase.
The heat of inflation does not appear to be too significant in Vietnam, with the World Bank (WB) forecasting a rate of around 3.8 per cent for this year. However, factors such as fluctuations in energy prices, the end of policies supporting lower taxes, rising prices for public services, and higher wages will make controlling inflation more difficult.
Mr. Hiroshi Funaki, Chairman of Vietnam Holding Limited, said that despite the gloomy prospects for the global economy, Vietnam is considered an attractive investment destination with positive growth prospects. Several banks have recently raised their 2022 growth forecasts to nearly 7 per cent. Inflation, meanwhile, is predicted to reach 3.5-4.0 per cent for the year.