Business News

The national consumer price index (CPI) in July grew by 0.45 per cent month-on-month, fueled by higher prices of food, foodstuff and electricity, the General Statistics Office (GSO) said on last week. This figure represents an increase of 2.06 per cent compared to the same period last year. The July core inflation increased 0.36 per cent from last month and 4.11 per cent from the same period last year.

Despite the US Federal Reserve raising interest rates by a quarter of a percentage point last week, domestic interest rates continue to decline. As of July 19, the interbank interest rate was 0.39 per cent for the overnight term, reminiscent of rates seen at the outset of the COVID-19 pandemic.

Dau Anh Tuan, deputy secretary general of the Vietnam Chamber of Commerce and Industry (VCCI), spoke at a meeting on July 28 regarding recycling costs and extended liabilities in Vietnam, saying "It is not feasible for manufacturers and importers to carry out their responsibilities efficiently without proper recycling cost norms."

In particular, new orders declined just slightly in July, despite some indications that demand was stabilising. However, manufacturers indicated that overall demand was still weak, especially in export markets. New export orders have declined far faster than that rate of new business, highlighting the specific difficulties internationally.

Many banks have been stepping up bond buybacks before maturity, but experts are concerned the work can affect the banks’ ability to supply capital for the economy and boost credit growth in the remaining months of this year.

In its report released last week on the banking industry, Vietcombank Securities (VCBS) projected that the pre-tax profit of the industry will witness a growth of approximately 10 per cent in 2023. However, this growth rate is notably lower than the average growth rate of nearly 35 per cent observed in the previous year.

To improve transport connectivity with neighbours such as Bình Dương and Long An provinces and HCM City, it plans to invest in key projects such as the 57km Bàu Bàng (Bình Dương) – Mộc Bài (Tây Ninh) rail link and upgrading and widening Road DT789.

Fitch Ratings generally views the authorities' commitment to combating the emerging property-financing bubble as a positive factor for financial stability, although a lax regulatory approach is likely to have contributed to the prior rise in non-compliant underwriting practices among some developers' bond issuers over 2018–2021.