Most local banks reported their business performance for 2018 during the opening month of the new year. Despite the central bank’s tightened monetary policy, Vietnam’s banking sector closed last year on a strong financial footing after overall pre-tax profit surged around 40 per cent year-on-year as local banks’ intensified their efforts to resolve bad debts, with double-digit earnings growth and rising income from services. The State Bank of Vietnam (SBV) recently set a credit growth target for 2019 of 14 per cent, focusing on priority fields to ensure risk control and support economic growth. The restructuring of credit institutions and the settlement of bad debts have had a positive effect and created a positive outlook for the local banking sector this year. The SBV will also continue to set credit growth quotas for each bank, depending on its health, to regulate overall credit growth and support government targets. Profits high In mid-January, Vietcombank … [Read more...] about Room remains for credit growth
Calculating year over year growth
Economist Vo Tri Thanh At the end of 2018, Viet Nam’s Gross Domestic Product (GDP) – one of the primary indicators used to gauge the health of a country’s economy – was announced by Vietnam General Statistics Office, beating forecasts made by many international institutions. Earlier, the International Monetary Fund (IMF) predicted the country’s 2018 GDP growth rate would stand at 6.6 per cent in its October report titled ‘Asia at the Forefront: Growth Challenges for the Next Decade and Beyond’. The Australia and New Zealand Banking Group’s Research Unit lowered its projection by 0.2 percentage points to 6.5 per cent. Though more optimistic, the Asian Development Bank (ADB) still cautiously adjusted its growth forecast from 7.1 per cent to 6.9 per cent for 2018. In fact, the 2018 figure reached an amazing growth rate of 7.08 per cent, the strongest growth Vietnamese people have seen in 10 years. However, whether the country is able to … [Read more...] about High growth in 2019: Realistic or optimistic?
Quality growth increases The highlight of the economic picture of Vietnam in 2018 was the quality of growth. If in previous years, the economy grew mainly thanks to credit expansion, the exploitation of crude oil and minerals, 2018 had a clear change when the GDP increased by 7.08% - a record level since 2008, while credit growth and crude oil and mineral exploitation are at the lowest level. According to data from the National Financial Supervisory Commission, the credit growth rate in 2018 was below 15%, sharply lower than the growth rate of more than 18% in 2017. Credit capital flow invested more into production, business, and creating motivation for economic growth. "Analysts have expressed concern when the high growth rate of Vietnam in the previous years was associated with credit intensity. But in 2018, without high credit growth, Vietnam's GDP continues to rise and has even had its highest increase. This is a positive signal, because it would be unsustainable if the credit … [Read more...] about Dynamic, creative, determined to implement socio-economic objectives 2019
Congress talks transforming finance in digital age The 48th World Chief Financial Officers (CFO) Congress opened in Ho Chi Minh City on November 15, focusing discussion on transforming finance in the digital age. In his opening speech, Nguyen Ngoc Bach, Chairman of the Vietnam CFO Association and head of the organising board, said the event, held for the first time in Vietnam, is a great opportunity for business leaders to gather, exchange and directly share their knowledge and practices, their intensive financial management skills with experienced finance leaders from other continents. “International financial experts will talk new trends and provide insights into the future of the financial sector and the challenges that business leaders and financial professionals are facing in this technological era,” he said. Nguyen Thien Nhan, member of the Politburo and Secretary of the HCM City Party Committee, said Vietnam and HCM City in particular are focusing on implementing … [Read more...] about BUSINESS NEWS IN BRIEF 17/11
Norwegian solar companies seek cooperation opportunity in Vietnam A group of Norway’s leading solar companies attended a Norwegian Solar Seminar in Hanoi on October 15 to look for cooperation opportunities with local partners in the solar energy sector. The event is co-organized by Royal Norwegian Embassy and Power Engineering Consulting Joint Stock Company 1 (PECC1), under the Electricity of Vietnam (EVN) with the attendance of Norweiginan Ambassador designate, Ms Grete Lochen, Commercial Counsellor Mr Harald Naevdal, General Director of EVN PECC1 Mr Pham Nguyen Hung, representatives from the Ministry of Industry and Trade, and over 70 participants from the EVN and its subsidiaries, independent power plant owners, construction companies, private investors from Vietnam and Laos, suppliers and consultants and other stakeholders. At the seminar, an energy consultant of the World Bank presents an overview of Vietnam’s solar energy, highlighting the achievements of … [Read more...] about BUSINESS NEWS IN BRIEF 19/10