Nine years after the issuance of a Government decision that set out preferential credit policies to provide more financial support for Vietnamese firms in the supporting industry, few have been able to make use of said policies, industry insiders have said.
The State Bank of Vietnam (SBV) said it will closely monitor interest rates offered by credit institutions and take measures to strictly handle violations of the law, including cutting credit growth targets.
Banks have increased their interest rates on certificates of deposit (CDs), bringing them in excess of 10 percent per year with the aim of mobilising long-term capital.
VNDirect Securities Corporation (VNDS) expects its post-tax profit to grow 31 percent year on year in 2019 to 487 billion VND (20.9 million USD), attendees heard at the firm’s annual shareholder meeting on April 18.
Experts have predicted that the State Bank of Vietnam (SBV) will hike the VND/USD exchange rate by 1.5-2 percent in 2019 to stabilise the macro-economy and facilitate exports.
The yield of Government bonds (G-bond) has continued to decline and hit seven-month lows as the US Federal Reserve (Fed) seems unlikely to hike interest rates and the domestic monetary market has shown positive movements.
Member states of the Association of Southeast Asian Nations (ASEAN) should prioritise progress on regional initiatives to cope with major economic headwinds in the context of increasing US-China trade tensions, according to eastasiaforum.org.
Analysts believe banking credit growth will ease off next year, but since lending activities will mainly be focused on the economy, growth will not be affected.
Indonesia probably enjoyed an economic growth rate of 5.15 percent last year, the fastest pace since 2013 and higher than the 5.07-percent rate in 2017, a recent poll forecasts.
Member countries of ASEAN need to give priority to promoting ASEAN Economic Community 2025 (AEC2025) and concluding Regional Comprehensive Economic Partnership (RCEP) negotiations to deal with economic headwinds in 2019, according to a recent article on the website https://www.eurasiareview.com.
The net value of foreign capital flowing into Vietnam’s equity market in 2018 hit 2.8 billion USD, according to State Securities Commission Vice Chairman Pham Hong Son.
Analysts and securities firms are hoping Vietnamese shares will perform better in 2019, but there are still many challenges that will clearly weigh on market sentiment.
According to the General Statistics Office, as of September 20, the banking sector’s credit growth was 9.52 percent, much lower than the 11.02 percent rate recorded a year earlier.
Increases in environmental protection taxes on petroleum from the beginning of next year would weigh heavily on inflation, especially as fuel prices rise worldwide, according to the Vietnam Institute For Economic and Policy Research (VEPR).
Standard Chartered Bank expects Vietnam’s rapid growth of 7 percent year-on-year in 2018, higher than its previous forecast of 6.8 percent, with all domestic engines firing together.
The derivatives market has grown strongly over the last three months as investors switch from stocks to derivatives to avoid short-term risks on the stock market.
Thailand’s economy saw an increase in external demand but domestic demand was not “sufficiently strong”, according to a minutes of the Bank of Thailand (BoT)’s latest policy meeting.
Vietnamese shares plummeted as investor confidence was dampened by worries over the increasing pace of the US central bank’s interest rate hike this year.
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