Business News

Despite the government coming to the aid of banks and vulnerable businesses in the past year, the latest COVID-19 wave has rendered some debt restructuring and payment scheduling by the country’s central bank less effective than expected.

While the number of retail stock brokerage accounts in Vietnam only equates to around 3 per cent of the country’s population, VinaCapital believes Vietnam is still at the very beginning of a multi-decade development of its stock market.

Many banks have reduced or even waived fees for interbank transfers and ATM withdrawals for the rest of the year following similar cuts by the National Payment Corporation of Việt Nam to support customers hit by the latest COVID-19 outbreak.

A number of banks at the end of July reported significant increases in H1 profits on strong credit growth despite pressures from the coronavirus pandemic.

The Tax Policy Department under the Ministry of Finance is drafting a proposal on tax reduction to support individuals and businesses affected by the COVID-19.

The Viet Nam Bank for Social Policies has begun accepting applications from businesses for interest-free loans to fund furlough and salary payments, its deputy director, Bui Van Son, said.

The General Department of Taxation under the Ministry of Finance asked local tax departments to focus on inspecting tax declaration documents from enterprises and individuals involved in real estate to identify those who at high risk of tax avoidance so inspections can be carried out.

Most banks have agreed to cut the lending rate for enterprises hard hit by the COVID-19 pandemic from this month until the end of this year. This consensus was reached during a meeting of 16 banks with the State Bank of Việt Nam on Monday.