CREDIT GROWTH FAR FROM YEAR-END TARGET DESPITE FALLING INTEREST RATES
During a bank-business connectivity meeting in Thái Nguyên Province on Wednesday, Deputy Governor Phạm Thanh Hà revealed that as of September 29, the total credit for the entire economy reached nearly VNĐ12.7 quadrillion (US$531.2 billion), marking a 6.92 per cent increase since early this year.
HONG KONG TO HELP ELEVATE VIỆT NAM'S STOCK MARKET POTENTIAL
When Christina Bao, Co-Head of Sales & Marketing at the Hong Kong Exchanges and Clearing Limited (HKEX), came to Việt Nam for a conference, Việt Nam News reporter Ly Ly Cao took the opportunity to speak to her about solutions to enhance the country’s stock market and how Hong Kong can support Việt Nam in the upgrading process.
INTEREST RATE CUT EXPECTED TO STIMULATE DEMAND FOR HOME LOANS
According to a report by the State Bank of Vietnam (SBV), people's demand for home loans and home repairs decreased by 1.12 per cent in the first half of this year, while the loans increased by up to 31 per cent last year.
LENDING RATE LAG STILL CAUSING BANK UNEASE
There has been a decline in savings interest rates in recent weeks. From August 23, Agribank continued to reduce deposit interest rates from 0.5 to 0.3 per cent to support individuals and businesses. Since the beginning of the year, Agribank’s deposit interest rate has decreased up to 4.5 per cent.
LOW CREDIT GROWTH, REDUCING PROFIT PUT PRESSURE ON BANK PROSPECTS IN 2023
The outlook for the banking industry this year will not be as bright as previous years due to low credit growth and reducing profit, experts forecast. In a recent report, VPBank Securities Company (VPBankS) forecast that pre-tax profits of the entire banking industry will slow in 2023 with a growth rate of about 10-12 per cent.
TAX AUTHORITIES TO CUT AT LEAST 20 PER CENT OF COMPLIANCE COSTS RELATED TO BUSINESS ACTIVITIES
The General Department of Taxation (GDT) has said that it guaranteed to reduce and simplify at least 20 per cent of regulations and cut at least 20 per cent of compliance costs related to business activities and eliminate unnecessary regulations by 2025.
MORE ROOM FOR IT STOCKS TO GROW FURTHER
In the first half of the year, the revenue of digital technology enterprises was more than VNĐ1.44 quadrillion (US$59.6 billion), down 10.35 per cent year-on-year and reached 38.87 per cent of the 2023 plan, according to a report by the Ministry of Information and Communications.
COMMERCIAL BANKS CONTINUE TO CUT DEPOSIT INTEREST RATES
In line with this trend, Military Bank (MB) has revised its rates downward by 0.1-0.2 percentage points per year as of 15 August 2023. Significantly, the 12-month term interest rate at MB has fallen to a mere 6.1 per cent per annum. This represents the lowest deposit rate within the banking system, and is even lower than the interest rate for the equivalent term at the four largest State-owned commercial banks: Vietcombank, VietinBank, BIDV, and Agribank.
