Vietnam economy growth

The jump came despite the fourth wave of Covid-19 because the State Bank of Vietnam made monetary policy more flexible and directed banks to focus on funding manufacturing and reduce lending to sectors with high risks, its deputy governor, Dao Minh Tu, said Monday. Average loan interests in April fell by 0.3 percentage point from December, he added. The central bank has also directed banks to delay debt payment or lower or scrap interests on customers affected by the Covid-19 pandemic to help their business recover. Nearly 676,700 customers have seen the interests of their debts removed or reduced with a total outstanding loan of nearly VND1,278 trillion. The bank will continue to pursue a flexible monetary policy until the end of the year keep inflation under control and support an economic recovery. The pandemic has boosted demand for online payment. In the first four months internet payment value surged 31 percent year-on-year. … [Read more...] about Vietnam’s credit growth doubles

First-quarter low growth seeks solutions The nation's economic growth in the first half of the year was at a rate lower than that targeted in the wake of the COVID-19 pandemic hurting production and business activities. The government is mulling over new solutions to drive the economy forwards, with some international forecasts still proving upbeat. Based on economic performance in the first five months of this year, the government has just reported to the National Assembly Standing Committee its fresh forecast that the economy’s total GDP in the first six months of this year will be nearly VND4 quadrillion (US$174.4 billion), up about 5.8% year-on-year, or 0.42 percentage points lower than the target of 6.22% as set out in the Resolution No.01/NQ-CP released on January 1 on the key tasks for the implementation of the socioeconomic development plan and state budget estimates for 2021. The 5.8% rise will also be 0.12 percentage points lower than the government’s … [Read more...] about VIETNAM BUSINESS NEWS JUNE 19

The State Bank of Vietnam (SBV) is facing a delicate balance of curtailing excessive lending to real estate developers while reducing imminent Covid-19 risks to the sector, according to HSBC. Referring the property sector as an increasing source of growth for Vietnam, the bank in its latest report noted real estate activity in the country accounts for 8% of the GDP, while the ratio in ASEAN is between 5% and 15%. “The memory of a housing bubble of 2007-12, which ultimately led to a prolonged banking crisis, looms large in the collective conscience. Even after a gradual recovery in the banking sector, real estate loans continue to account for a large proportion of bank balance sheets,” noted the HSBC. While some banks do not have a specific classification on loans to the real estate sector, balance sheets of the “Big-4” SOE banks [Vietcombank, Vietinbank, BIDV, Agribank] reveal a key linkage with the associated construction sector, stated the bank. As the real estate market … [Read more...] about Delicate balance needed to address Vietnam’s property risks: HSBC

Vietnam’s digital economy presents chances for investors, start-ups The newswire techwireasia.com on June 16 ran an article saying that Vietnam has been steadily growing its highly promising digital economy, presenting multiple opportunities for investors, startups, and businesses alike. The author wrote that in recent years, the Southeast Asian region has been seeing rapid and sustained efforts and investment into various digital economy initiatives by both the public and private sectors. Tech giants have been creating waves, most recently the Tokopedia-Gojek merger, and earlier, Grab pushing for a US listing with a valuation of over 40 billion USD. Estimates by Google, Temasek, and Bain & Co predicted that the Vietnamese sector could grow to 52 billion USD by 2025, which comes up to about a sixth of the massive 300 billion USD regional digital economy pie. According to the article, backed by a stable political climate, progressive economic policies, and … [Read more...] about VIETNAM BUSINESS NEWS JUNE 18

The country’s economic growth in the first half of the year is expected to remain lower than expected due to the pandemic affecting production and business. However, whether the economy can ensure its growth target for the whole year remains in question, with some international forecasts still proving upbeat. While COVID-19 has been a blow, the Vietnamese economy is looking at great prospects in the coming years. Photo: Le Toan Minister of Planning and Investment Nguyen Chi Dung has reported to the government a fresh scenario for economic growth for the first half of 2021, based on positive performance of the economy in the first five months in defiance of difficulties caused by the health crisis. The Ministry of Planning and Investment (MPI) forecast that the economy will likely grow 5.8 per cent on-year in the first six months, or 1.31 per cent lower than the target of 7.11 per cent set in the government’s Resolution No.01/NQ-CP released on January 1 on key tasks … [Read more...] about Positive factors in place for economic growth in 2021