Banking & Finance

There have been improvements in Vietnam’s budget transparency compared to previous years.

The Government’s efforts have resulted in a modest rise of 0.09% in the average interest rates against early 2021.

The main objective of the project is to ensure all banks adopting the Basel II standards have a capital adequacy ratio (CAR) of at least 10-11% by 2023, and eventually to 11-12% by 2025.

This is the golden time for Vietnam to make breakthroughs in development as countries around the world are facing high risks of inflation.

False rumors, concern over the capital flow, and high inflationary pressure have led to the recent market downtrend.

High market liquidity, information transparency, and expanding foreign ownership limits are expected to further attract foreign investors.

An open policy would keep the country's economic stability amid growing global uncertainties.

The taxation authority estimated that once the whole population turns to e-invoices, the total number would be 6.5-7 billion invoices per year or 400-500 million per month.

The new system will allow the introduction of new products and services to the local stock market.

The Ministry of Finance estimated the total amount of tax relief totals around VND122-125 trillion ($5.26-.54 billion) in 2022.

The validity extension of the resolution is of particular significance due to rising bad debts during the pandemic.

Vietnam has outperformed major regional indices, making the market nearly quadrupled in size compared with the start of 2012 and the trading exceeding $1 billion a day.

This has been the third extension of excise tax compliance due date for local cars since 2020, with an expected amount subject to a tax break of VND20 trillion ($US$863 million).

The prime minister held meetings with executives of US major financial corporations such as KKR, Visa, S&P, and Citigroup over future cooperation in the financial sector.

As of the end of April, Vietnam’s stock market has over 5.2 million securities accounts, of which retail investors make up 98.9%.

The ministry considered this an urgent solution for businesses, which should take effect immediately from the date of signing to the end of 2022.

The stability of the VND-USD exchange rate helped Vietnam attract substantial attention from investors in the region, such as Thailand, Taiwan, and Singapore.

The CPI in the first half of 2022 is estimated to expand by 2.5% year on year, significantly lower than the 4%-threshold.

Vietnam’s e-commerce startup Tiki is expected to be Shinhan Financial’s first strategic partner in the Southeast Asian country.

The banking sector will continue providing support for its customers affected by the pandemic, including ongoing efforts to restructure debt payments and waive and cut interest rates.