The strong recovery of tourism has helped businesses in the industry prosper. However, risks such as economic recession, high interest rates and interest expenses still affect corporate profits.

Inactive cash showed signs of shifting to securities as banks continue to reduce deposit interest rates to below 8% per year, expanding the liquidity of the stock market.

The latest deposit interest rates at the four major banks have simultaneously decreased to the lowest level in one year.

Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong has suggested sectors and localities take more measures to remove difficulties facing small- and medium-sized enterprises (SMEs), stressing that policy solutions are needed to help businesses access capital.

Prime Minister Pham Minh Chinh chaired a meeting between permanent Government members and the executive committee of the Vietnam Association of Small and Medium Enterprises (SMEs) in Hanoi on July 6 to seek solutions to challenges facing SMEs.

The United Overseas Bank (UOB) has lowered its 2023 economic growth forecast for Vietnam from 6% to 5.2%, and forecast that Vietnam will continue to cut regulatory interest rates in the third quarter this year to stimulate its economy.

The State Bank of Vietnam (SBV) has sent a document to credit institutions and branches of foreign banks and SBV in provinces and centrally-run cities regarding the reduction of interest rates.

Standard Chartered Bank forecasts Vietnam’s second quarter GDP growth to have slowed to 1.5% year-on-year (from 3.3% in the first quarter), posing downside risks to its 6.5% growth forecast for 2023. However, a rebound is expected in the second half of the year.

The stock market has reportedly shown positive response to recent interest rate cuts.

The State Bank of Vietnam (SBV) has cut regulatory interest rates for four consecutive times since the beginning of this year, in the context that world interest rates continue to rise and stay at a high level.