The State Bank of Vietnam (SBV) on August 6 announced its decision on cutting some policy rates with immediate effect, the second time this year following the adjustment on March 16.
Financial firms extended loan dues for more than 223,000 borrowers whose outstanding loans stood at VND151 trillion (US$6.49 billion) by May 25, according to the State Bank of Vietnam.
Banks cut interest rates for loans worth more than VND1.12 quadrillion (US$49 billion) of nearly 322,190 borrowers affected by the COVID-19 pandemic as of May 11, a State Bank of Vietnam (SBV) report showed.
Many commercial banks have unveiled preferential credit packages for both individual and corporate customers.
The State Treasury of Vietnam raised VND4.2 trillion (US$180.69 million) from G-bonds at an auction held by the Hanoi Stock Exchange (HNX) on May 20.
Vietnam’s credit growth is forecast to slow to only 8% in 2020 from 13.7% last year due to a sharp slowdown in economic activity amid the COVID-19 pandemic.
Commercial banks are expected to lower lending interest rates after getting more support to cut input costs from the State Bank of Vietnam (SBV)’s agencies this week.
Gold prices on global markets have made strong gains in the past two months, but investors with short-term appetite seem uninterested in gold.
VOV.VN - The State Bank of Vietnam would hold its benchmark refinancing and discount rate at 6.25 per cent and 4.25 per cent, respectively, along with its 14 per cent credit growth target to be kept for the remainder of 2019, Fitch Solutions analysts have predicted.
Vietnamese banks are struggling to recover overdue car loans since many customers mortgage vehicles bought using bank loans.
Banks, enterprises and depositors are all concerned about what will become of deposit and lending interest rates.
Interest rates for VND deposits would remain stable or even decline over the next few months, analysts from Saigon Securities Inc. (SSI) forecast.
Nguyen Thi Phuong, who has worked at the Thang Long Industrial Park in Hanoi’s outskirts district of Dong Anh for years, said her family of three would enjoy a stable life if not for housing.
Interest rates for VND loans have increased in the past two months after holding steady in the first half of the year.
Many commercial banks have recently increased deposit interest rates, but experts forecast that the rise will last only a short time and won’t have a domino effect on lending rates.
Vietnam has been advised to carefully consider whether to borrow official development assistance (ODA) loans in the future.
Consumer finance has ample room for growth in Vietnam, however, it is necessary to improve the policy framework to make the sector more attractive to foreign investors, experts said.
The Hanoi Stock Exchange (HNX) raised VND2.3 trillion (over US$98.7 million) at the latest auction of Government bonds (G-bonds) issued by the State Treasury on August 1.
Remittance inflows to the southern largest economic hub of Ho Chi Minh City in the first six months of 2018 was estimated to reach US$2.45 billion, up nearly 20% from the same period last year, Sai Gon Giai phong reported.
Deputy Prime Minister Vuong Dinh Hue has urged the Government’s Steering Committee for Price Management to seek measures in order to minimize external impacts on domestic prices, thus keeping CPI growth below 4% in 2018.