Banking & Finance

Hanoi is an important gateway for businesses to tap opportunities in Vietnam’s fast-growing cities in the north.

Contrary to the strong fluctuation of deposits from economic organizations, individual deposits increased steadily in the January – June period.

The State Bank of Vietnam is drafting up regulations to cap foreign ownership at the maximum of 30% of 49% at fintech payment companies, including both direct and indirect ownership.

The stable outlook for Vietnam`s banking system reflects the country`s robust economic performance, which will support asset quality and profitability.

Vietnam is making efforts to tighten control over Chinese goods seeking to be designated Vietnamese-made items.

Strong growth of the corporate bond market in the January – June period has laid solid foundation to gradually form a capital channel in mid- and long-terms for enterprises.

Most of such loans are from foreign invested companies, especially large-scale FDI companies, accounting for 76% of total foreign debt incurred by enterprises in Vietnam.

Experts suggest the foreign ownership limit should be 49% to make the country’s finance and banking sector more attractive to foreign investors.

Vietnam should remain cautious to avoid being dragged into a currency war, if any, and refrain from devaluing the local currency.

The USD/VND exchange rate as of late July was almost unchanged from the end of last year, so the central bank still has "room" to manage against the CNY’s fluctuation.

Many projects guaranteed by the government have been in difficult financial situation and cannot service debt.

The two countries have huge potential for cooperation in banking supervision, payment facilitation, cross-border transaction, and minimizing risks in banking operation in digital era, said the Governor of the Bank of Thailand.

As of July 15, the revenue collection reached VND777.7 trillion (US$33.54 billion), equivalent to 55.1% of the year`s estimate.

Though the corporate bond market really needs to be developed in order to reduce the dependence of the economy on commercial banks, corporate bond issuance must be transparent and secure.

South Korea investors are predicted to hold a pioneering role in investing in finance, technology, real estate, and consumer finance in Vietnam.

If the FED lowers the interest rate by the end of this month as expected, the move would have a minimal impact on the monetary policy of Vietnam’s central bank.

State budget revenue collection by the central government posted a five-year high at 51.5% of the estimate.

Together with the capital hike, foreign banks are also promoting their in-depth development in the Vietnamese market.

Vietnam ranked first in the world for helping foreign workers save money, with 72 percent saying that moving to Vietnam helped them save more and another 72 percent stating that they have more disposable income in Vietnam than they did in their home country.

The consumer sector has benefited from Vietnam`s sustained strong economic growth and increasing affluence.