Banking & Finance

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.

This is good news for Vietnam, which wants foreign investors to retain profits in Vietnam for re-investment in the country.

The number of fintech companies have increased rapidly in Vietnam in recent years as the industry has high growth potential while the government encourages cashless transactions.

Japanese experts have addressed challenges to help Vietnam boost its financial market.

As of present, eight out of 17 banks subject to Basel II implementation have met the target.

The growth rate was less than half of the 14% target set for 2019.