Banking & Finance

During the first quarter, budget revenue collection reached VND391 trillion (US$16.75 billion), equivalent to 25.9% of the year's plan and up 1.8% year-on-year.

These actions stem from the sharply lower - albeit positive - growth that Vietnam faces from the Covid-19 pandemic.

During the two-month period, deposits from economic institutions in Vietnam’s banking system declined 4.84% against the end of 2019 to VND3,770 trillion (US$161.08 billion).

VinaCapital estimated Vietnam’s GDP growth would decline by three percentage points this year to 4% from 7.02% in 2019.

The banking authority has worked with relevant ministries and branches in launching direct carrier billing service.

The gauge, which has been in a bear market since 2018, is trading at about 11 times estimated earnings for the next year, less than the five-year average of 14 times.

Vietnam’s informal sector, accounting for an estimated 25 – 30% of GDP, is among the groups hardest hit by the pandemic, but not included in GDP calculation.

Vietnam central bank is ready to intervene in the foreign exchange market in case of necessity.

In addition to stimulus packages, the government is scheduled to issue a comprehensive resolution detailing drastic measures to help spur economic growth.

Enterprises should be provided with sufficient credit and utmost support to stay float, said Prime Minister Nguyen Xuan Phuc.

The rating showcases the strong medium-term macroeconomic outlook, contained government debt burden as well as favorable external finances compared to peer countries.

The relief package is estimated at VND180 trillion (US$7.63 billion).

Fitch also lowered Vietnam's GDP growth projections to 3.3% in 2020 from 7.0% in 2019, on account of the pandemic.

An upgrade is unlikely, given the review for downgrade.

The package, which is specified in a draft decree, is set to become effective immediately upon the approval of Prime Minister Nguyen Xuan Phuc.

As impacts of the Covid-19 pandemic are growing, the figure represents a six-fold increase from the initial proposal of VND30 trillion (US$1.27 billion).

Vietnam's headline inflation averaged 5.6% year-on-year in the first quarter, but has been gradually decreasing since last December.

If the pandemic is contained within the first half of 2020, Vietnam's growth should rebound to 6.8% in 2021 and remain strong over the medium and long-term, according to ADB.

Prospects of foreign investment will dim in 2020, given the impact of the coronavirus outbreak on investment sentiment globally, and this will make it more difficult for Vietnamese banks to raise external capital.

Transaction activities in the stock market are considered essential services which must stay operational in all circumstances, stated the country’s stock market watchdog.