Việt Nam News

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.

Farmers in Đồng Tháp Province’s Lai Vung District are expected to supply 80 per cent less pink mandarin, a specialty fruit for Tết (Lunar New Year) festival, compared to the previous last Tết, which falls on January 25. 

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.

The closing of many online retail websites by both foreign and domestic companies has shown that despite having key advantages like market size of US$13 billion by 2020 and an annual growth rate of 30 per cent, Việt Nam’s e-commerce market remains highly competitive.

The foreign exchange market is witnessing an unusual phenomenon: the đồng is not just steady against the US dollar but also 0.16 per cent up from its rate at the end of late 2018.

With the financial year drawing to a close, banks are busy selling mortgaged properties to resolve bad debts, recovering capital.

To take effect on January 1, the new Circular No 22 issued by the State Bank of Việt Nam focuses on two changes that will tighten banks’ lending to the property sector.

The central bank’s decision to lower the interest rates by 0.2-0.5 percentage points on November 19 is a happy augury for businesses.

Japan’s Watabe Wedding Corporate recently signed an agreement with Empire Group Việt Nam to organise wedding ceremonies for 1,000 Japanese couples in the latter’s Cocobay Complex in Đà Nẵng in the next three years, and the figure is expected to increase to 16,000 in the next 10 years.

One thing that stands out in many banks’ third quarter reports is the sharp drop in profits from foreign exchange trading activities.

Training modern staff with technology has become a strategy of many enterprises, according to Benjamin Bruce Davidson, an expert from Mercuri Group, which provides sales consulting training worldwide.

After increasing steadily in recent times, deposit interest rates at most banks are standing at rather high levels.

On October 10, the HCM City Development Joint stock Commercial Bank (HDBank) announced that its shareholders had approved a plan to buy a maximum of 5 per cent of its 981 million shares being traded on the market, equivalent to 49 million shares.

Banks with a relatively good performance and financial situation can easily adopt Basel II standards whereas it is difficult for those facing financial difficulties.

The banking sector is waiting for the State Bank of Việt Nam to allow the use of electronic know your customer/client (e-KYC).

From October 1 lenders including banks will not be allowed to provide medium- and long-term foreign currency loans to businesses to pay for imports. Many market observers said this is the State Bank of Việt Nam’s final step in its fight against dollarisation.

The money market is seeing the first signs of loosening though the State Bank of Việt Nam has yet to make a decision on reducing benchmark interest rates.