Vietnamplus

Enterprises are hoping for more policies to help them overcome financial difficulties, maintain operations and to take advantage of post-pandemic recovery opportunities.

In 2021, corporate bond yields were at their lowest level in history at just 7.86 percent a year. The interest rate may have created a bottom and will support corporate bond yields inching up in 2022.

The State Bank of Vietnam (SBV) has flexibly operated monetary policy tools to maintain liquidity for the banking system, contributing to stabilising and recovering credit growth in the context of unpredictable impacts of the COVID-19 pandemic.

Private banks have posted significant growth in credit market share in the past five years.

Banks will have to set aside money for potentially unrecoverable COVID-19 affected loans from this year, according to an amended circular drafted by the State Bank of Vietnam (SBV).

The World Bank approved a 93-million-USD credit for the Cambodia Land Allocation for Social and Economic Development Project III (LASED III), it said in a press statement last week.

Experts have forecast bank credit growth in the second quarter to reach 3.5-4 percent, much higher than the rate in the first quarter.

Low demand for capital due to COVID-19 has caused bank credit in the first half of April to drop 0.5 percent compared with the end of March, according to the State Bank of Vietnam (SBV).

Despite being slow, credit growth of the banking system in March recovered compared with the first two months of this year.

Nearly 9.6 trillion VND (417.3 million USD) worth of bad debts were handled each month from August 15, 2017 to August 31, 2019, or 4.7 trillion VND higher than that during the 2012 – 2017 period.

The real estate market has slowed in the first months of 2019, which experts attributed to limited bank credit sources for the market.

Amid widespread expectations that the central bank will continue to pursue its tight credit policy, especially to risky areas like real estate, in 2019 property developers are looking at other sources for funds.

With banks tightening credit to the property sector, developers should look at the stock market for capital, experts told a workshop on “Potential and opportunities for investment in property stocks on November 30.

Business conditions related to the establishment and operation of joint stock commercial banks and non-bank credit institutions in Vietnam will be eased under a draft circular from the State Bank of Vietnam (SBV).

Many banks throughout the country need to recruit more employees for their newly opened branches this year or to replace staff members who quit their jobs before the Lunar New Year (Tet) holiday.

The World Bank’s Board of Executive Directors has approved a credit package worth 155 million USD to strengthen the research, teaching and institutional capacity of three autonomous universities and improve the management of Vietnam’s higher education system.

With credit growth accelerating in the first quarter, many commercial banks may become more demanding in selecting lending customers.

The International Finance Corporation (IFC), the private equity arm of World Bank group, has sanctioned an additional 80 million USD credit package to Vietnam Prosperity Bank (VPBank).

Cambodia is among the countries that have improved their business environment, according to the World Bank’s latest report.

The State Bank of Vietnam announced on September 7 that credit rose 9.09 percent from the end of 2015 as of August 23, most of them poured into production and priority fields set by the government.