Business News

Việt Nam needed to take action to come up with appropriate tax policies and adapt to the global minimum corporate income tax, a major pillar of the Organisation for Economic Co-operation Development (OECD)’s base erosion and profit–shifting (BEPS) framework.

Though banks have yet to release their Q4/2022 financial reports officially, industry experts assumed there would be a sharp division in the profit picture among banks, with a ‘comeback’ in the state lenders grouping.

Under a report released recently, Viet Dragon Securities Company (VDSC)’s analysts have said the interest income growth of the banking industry in 2023 will slow due to the impact of low credit growth and a decreasing net interest margin (NIM).

The most important funding channel for the Vietnamese economy today is still bank credit. The growth of this channel is currently the highest among funding channels in the market, bringing nearly VND1,400 trillion to the economy. The current support and difficulty sharing by commercial banks not only shows the loyal bank-business relationship, but also helps many banks build more trust, promote their brand names and affirm their responsibility to sustainable development and cooperation with customers.

Enterprises in HCM City were receiving the disbursement of loans after the State Bank of Việt Nam (SBV)’s move to lift the credit growth target by 1.5-2 percentage points for 2022 from its earlier target of 14 per cent, allowing banks to lend an additional VNĐ240 trillion (US$9.7 billion).

Under a document issued on Thursday, banks have been required to cut operating costs and unnecessary expenses, as well as administrative procedures, so as to have room for lending interest rate reduction to support the economic recovery and development.

Incoming remittances to HCMC are estimated to reach some US$6.8 billion this year, according to Nguyen Duc Lenh, deputy head of the State Bank of Vietnam branch in HCMC. Growth in remittance flows to the city in 2022 could be lower than the 2021 figure, but remained robust amid global economic headwinds and geopolitical uncertainties in some parts of the world, Lenh said.

Banks continue to increase their deposit rates to relieve liquidity constraints at year-end. On November 22, Hanoi-headquartered commercial lender Techcombank applied a new deposit interest rate chart, with the new rate inching up 30 basis points per year for six-month terms and beyond compared to the previous chart.