The banking and finance sector in Vietnam has plenty of room to develop, however, there is a lot happening already. In this section, we look at banking and finance regulations in Vietnam, lending, finance, and monetary and fiscal policy.

VN-Index up 6 points to 1,143.7 at close October 10

the-shiv October 11, 2023

The VN-Index gained 6 points yesterday to close at 1,143.7, VN Express is reporting. Foreign firms, however, sold more than they bought, withdrawing US$11.6 million from the local bourse. Foreign investor trades on HOSE October 10 VND (billions) US$ Bought 865 35,425,470 Sold 1,149 47,056,491 Change -284 -11,631,021 Most popular

Crunch-time approaching for Vietnam’s stock market status upgrade goal

the-shiv October 10, 2023

The Investor is carrying an op-ed by Can Van Luc, chief economist at Hanoi-based BIDV bank, in which he points out that time is running out to make the reforms necessary to see the Ho Chi Minh City Stock Exchange (HoSE) upgrade to an ‘emerging market’ before 2025, the time

Consumer deposits in Vietnam banks continue to increase despite low-interest rates

the-shiv October 9, 2023

At the end of July, consumer deposits in Vietnamese banks were up 8.93 percent over the end of 2022 reaching their highest level ever, Doanh Nhan Vietnam is reporting. This is despite deposit interest rates being on a downward trend. The publication says this is due to a lack of

VN-Index closes out the week at 1,128.5 points

the-shiv October 7, 2023

The VN-Index has finished the week at 1,128.5 points, slightly up on Thursday’s close, VN Express is reporting. Though an improvement this is still well below its September peak at just over 1,245 points. Foreign investor trades on HOSE October 6 VND (billions) US$ Bought 904 6,237,600 Sold 768 5,299,200

Pushback on Vietnam bond market reforms resurfaces

the-shiv October 6, 2023

The HCM City Real Estate Association (HoREA) has made overtures to the government to push back the effective date of reforms to the bond market due to take effect from January 1, 2024, Vietnam News is reporting. These reforms were outlined in Decree 65 and came into effect in September

Vietnam bond market shows signs it may be thawing

the-shiv October 6, 2023

More than VND 100,000 billion (US$690 million) worth of corporate bonds were issued in the third quarter of 2023, Doanh Nhan Saigon is reporting. This is almost triple the value of bonds issued in the second quarter which suggests the bond market may be recovering. The article, however, does note

Foreign investment in Vietnamese stocks lowest in three years

the-shiv October 6, 2023

On October 5, foreign traders bought just VND 384 billion (US$2,649,600) worth of stock on the Ho Chi Minh City Stock Exchange, the lowest investment of foreign capital in a day since August 2020, VN Express is reporting. The VN-Index closed at 1,113.9 points. Foreign investor trading activity, October 5

Foreign trading on the HOSE, October 4

the-shiv October 5, 2023

The VN-Index closed slightly higher on Wednesday at 1,128.67 points, VN Express is reporting. It is still, however, well down for the week and the lowest it has been since July. Foreign investor trading activity, October 4 VND (billions) US$ Bought 1,374 9,480,600 Sold 1,186 8,183,400 Change 188 1,297,200 Most

New short-term capital lending regulations come into force this week

the-shiv October 5, 2023

New regulations from the State Bank of Vietnam that limit the short-term capital (i.e. the money in everyday accounts) to 30 percent of the cash used for medium and long-term loans down from 34 percent, has come into effect, Vietnam News is reporting. Note: Vietnam’s banking sector is still developing

Vietnam has its first voluntary carbon emissions exchange

the-shiv September 30, 2023

On Friday, Vietnam’s CT Group launched a subsidiary called the ASEAN Carbon Credit Exchange, which Vietnam Plus has reported, will be Vietnam’s first carbon exchange. Light on details as to how it would actually work, the publication outlines key drivers for its development, namely the EU’s Carbon Border Adjustment Mechanism

Total t-bills issued by State Bank of Vietnam hits US$3.7 billion

the-shiv September 29, 2023

The State Bank of Vietnam issued another tranch of t-bills yesterday to the tune of VND 20,000 (US$819.7 million), VN Express is reporting. This brings the total value of bills issued this month to US$3.7 billion.

Calls to allow greater devaluation of the Vietnamese dong

the-shiv September 29, 2023

Dr Huan Huu Nguyen, from the Ho Chi Minh City University of Economics, has told Donah Nhan Vietnam that the VND should be allowed to fluctuate within a greater range and that Vietnam should accept a short-term devaluation. Currently, the dong operates in a trading band of 5 percent either

IMF report pushes fiscal over monetary policy to boost Vietnam’s economy

the-shiv September 28, 2023

The IMF has released the results of its Vietnam Staff Report for the 2023 Article IV Consultation which pushes for more spending to boost the economy in light of limited room to adjust monetary policy. Key takeaways: The IMF noted that high growth rates over the medium term could be

State Bank of Vietnam issues more treasury bills, total hits US$2 billion

the-shiv September 27, 2023

The State Bank of Vietnam completed its fourth bond issue in the past two weeks to the tune of another VND 20 trillion (US$829 million), Donah Nhan Vietnam is reporting. This brings the total value of bonds issued since the start of last week to VND 50 trillion (US$2 billion).

Vietnam state media confirms T-bills issued to support local currency

the-shiv September 27, 2023

If there was any doubt as to why the State Bank of Vietnam has been issuing treasury bills, this article in state media outlet Vietnam News should clear it up. “The SBV has also been making its own moves to address the rising exchange rate including the recent issuance of

Mixed views on whether State Bank of Vietnam will cut interest rates again this year

the-shiv September 26, 2023

Doanh Nhan Vietnam has compiled a range of views on whether or not the State Bank of Vietnam (SBV) will or even can reduce interest rates before the end of the year. Speculation is varied with UOB and MB Securities predicting further cuts and Rong Viet Securities, Maybank Securities, and

State Bank bills issued last week actually worth more than US$1.2 billion

the-shiv September 26, 2023

Whereas it was reported last last week that the State Bank of Vietnam had issued US$411 million in treasury bills, it turns out this was the final of three bill issuances last week collectively totalling just shy of VND 30,000 trillion (US$1.2 billion), Doanh Nhan Vietnam is reporting. This should

Securities firms urge calm as VN-Index plunges

the-shiv September 26, 2023

VinaCapital and Dragon Capital, two of the biggest trading firms in Vietnam, have urged other investors to stay calm and not react to rumours, after the VN-Index lost 40 points or 3.34 percent of its value on Monday, VN Expres is reporting. For context: Rumours spread Friday that several members

More on the US$411 million of treasury bonds issued last week

the-shiv September 24, 2023

The Investor is carrying an article with interviews with several economists regarding the US$411 million treasury bond issuance last week. Can Van Luc, chief economist at state-controlled bank BIDV, said it was normal to keep interbank interest rates at appropriate levels. Le Xuan Nghia, a member of the National Financial

Vietnam GDP growth forecast lowered to 5.8 percent: ADB

the-shiv September 24, 2023

The Asian Development Bank lowered its forecast for Vietnam for 2023 to 5.8 percent from 6 percent which it forecast earlier in the year in its Asian Development Outlook September 2023, The Investor is reporting. Key reasons for the downgrade listed in the report include Vietnam’s manufacturing output shrinking by