Starting November 2, foreign investors will no longer be required to pre-fund 100% of their transactions, promising the removal of a major roadblock for Vietnam's market upgrade process.
Vietnam has incurred green, social, and sustainability (GSS) debts of US$1.5 billion in 2021, almost five times the $0.3 billion in the previous year, and maintaining steady growth for the third consecutive year.
The cut would lead to an estimated decline of VND1.4 trillion (US$60.3 million) in state budget revenues per month.
Such a move would help ensure transparency and openness in banking operations while staying in line with Basel II standards and other international practices.
The banking sector stands ready to provide sufficient capital for economic development.
Compared to other ASEAN countries, inflation pressure in Vietnam is still relatively contained.
The Government needs a financial tool to control the prices of strategic commodities, including petroleum products, to avoid a sudden rise in prices and impact on people’s lives.
The Vietnamese Government continues to exercise monetary policies to contain inflation, stabilize macro-economic conditions, and support economic recovery.
Since 2020, Vietnam has faced four outbreaks of Covid-19, for which the government has mobilized resources to help businesses and people overcome the impacts of the pandemic.
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.
