Remittances to Việt Nam could fall due to US policies
Overseas remittances to Việt Nam are expected to decline mainly due to global factors.
A report from the Hồ Chí Minh Securities Company shows that bank interest rates have risen by 0.46 percentage points for short-term loans since the end of last year to 7-9 per cent and to 9-12.5 per cent for medium- and long-term loans.
The State Bank of Việt Nam has shown it is determined to continue with a tight monetary policy for the rest of the year with its decision to refuse to increase bank’s credit limits to constrain inflation and strictly control lending to high-risk sectors.
The HCM City Real Estate Association has recently proposed that the central bank should allow lenders to use 45 per cent of their short-term deposits for long- and medium-term loans next year instead of 40 per cent as it has mandated.
According to the General Statistics Office, as of September 20 the banking sector’s credit growth was 9.52 per cent, much lower than the 11.02 per cent rate recorded a year earlier.
Although Việt Nam’s balance of trade in the first eight months of the year stood at a surplus of US$2.8 billion, analysts warn about it returning to a deficit in the coming months.
According to the Việt Nam Real Estate Brokers Association last year around 23,000 units of condotels, or condo-hotels, were offered for sale, and 65-70 per cent of them were snapped up. However, demand for condotels seems to be falling.
Though the interest rates on government bonds with maturity terms of one to 15 years have increased in recent times, there seems to be little appetite for them among investors.
According to statistics from the State Bank of Việt Nam (SBV), as of May, State-owned banks’ combined equity was VNĐ252.472 trillion (US$10.83 billion), down 0.86 per cent.