Analysts said inflation has hit many economies around the world, with the situation going from bad to worse, and Việt Nam is no exception with an inflation storm expected in the near future.
BUSINESS BEAT
Experts have suggested the Government, the Ministry of Industry and Trade, the Ministry of Finance and localities need to think more carefully about the plan to jointly restructure the NSRP to reduce the adverse impact of the plant’s production problems on the market.
Faced with the likelihood of inflation, banks have to increase their deposit interest rates to ensure positive real interest rates to prevent depositors from withdrawing their money and investing it in other assets like securities and real estate.
If a large part of the credit is pumped into the securities market, it can be a big problem for the banking system and the whole economy once the stock market bubble breaks out.
In a survey done in August by the Board for Private Economic Development Research, 46 per cent of 21,000 enterprises polled said their financial resources would only enable them to maintain operations for three months or less.
The COVID-19 pandemic is considered to be one of the key reasons for the surge in deposits by companies.
BUSINESS BEAT
