At Sacombank’s annual general meeting held on June 5 its permanent vice chairman Phạm Văn Phong said that in 2019 the bank’s pre-tax profit increased by 43.2 per cent to VNĐ3.2 trillion (US$137.5 million), which was 21.4 per cent above the target.
Will consumer loans remain a money-spinner for banks post-COVID-19? This was a question recently posed by market observers after witnessing the pandemic’s big economic impact on individuals and households, dragging down demand for personal loans.
Việt Nam attracted US$12.33 billion worth of foreign direct investment in the first four months of 2020, a year-on-year decrease of 15.5 per cent due to the impact of the COVID-19 pandemic, according to the Foreign Investment Agency.
The COVID-19 pandemic is a huge challenge for businesses irrespective of sector and size in all regions and countries, including Việt Nam.
Last year, VinaCapital’s flagship fund, Vietnam Opportunity Fund (VOF), invested US$25 million in a private hospital operator, Tâm Trí Medical Joint Stock Company.
The State Bank of Việt Nam has said it will not cap foreign ownership of companies in the payment services industry in its draft decree to replace Decree No.101.
Companies’ annual general meetings are likely to be delayed this year with many saying they have not yet set a date, banks have taken advantage of the situation to expand their online services to mitigate its effect on their business.
On February 7, the banking sector’s outstanding loans fell by 0.38 per cent for the year, while overdue debts and non-performing loans showed signs of rising.
Amid the fourth industrial revolution many property developers in Việt Nam are seeking to adopt digital technology both for enterprise management and in their projects.
Property industry insiders said the State Bank of Việt Nam’s decision to tighten credit would mean pain in the short term for developers but help the sector develop sustainably over the long term.
Large mergers and acquisitions deals, an explosion in digital banking and the listing of several banks’shares on the stock market are among the key events expected this year in the financial sector.
A report by securities firm SSI on the financial and monetary market says deposit interest rates are likely to be cut by 0.5- 1 percentage point this year, and lending interest rates would also be cut by at least 0.5 percentage points as required by the Government.
With the financial year drawing to a close, banks are busy selling mortgaged properties to resolve bad debts, recovering capital.
