Việt Nam continues successful economic story. — VNA/VNS Photo BERLIN — Credendo Group’s offices in Germany and Austria have published a study to evaluate the level of risk in Việt Nam, which emphasises that the Southeast Asian country is continuing its successful economic story after its good performance in controlling the COVID-19 pandemic. The article quotes the latest country study of Credendo, saying that Việt Nam has been one of the few highly resilient countries during the unprecedented COVID-19 shock. The swift, strict and very effective containment of the virus after the outbreak in neighbouring China largely explains this, it says, noting that an early travel ban, testing and wide-scale contact tracing on top of the containment measures have helped keep the virus under control. While most countries were severely hit and hindered by the economic impact of the virus, Việt Nam’s economy continued to operate at a good albeit slower pace despite an initial high level of business disruption, it says. Credendo's study shows that in 2020, Việt Nam had exceptional economic performance while advanced and emerging economies in all the world’s regions have suffered a record recession. The study says for Việt Nam, the global demand slump was more than offset by the strong global demand for medical products, electronics and computers resulting from the COVID-19 crisis. Hence, exports of goods grew last year. Increased public investments in infrastructure also played a significant role in supporting economic activity. A more accommodative monetary policy – including the State Bank of Việt Nam’s policy interest rate cut from 6 per cent to 4 per cent – brought an extra stimulus. According to Credendo, Việt Nam remains largely immune to the further waves of the virus that are currently affecting many parts of the world. Hence, the Vietnamese authorities will take time to vaccinate the population. Việt Nam is confidently looking ahead to …
Countries gdp growth
Credit market share of private banks rise
Techcombank's credit market share increased 86 basis points in the past five years. — Photo nhipcaudautu.vn Private banks have posted significant growth in credit market share in the past five years. According to statistics from Viet Dragon Securities Company (VDSC), 26 listed banks by the end of 2020 increased their total credit market share to 71.3 per cent from 65.4 per cent at the end of 2015. Of which, the group of private banks, whose credit market share is more than 2 per cent each, posted a 3.5 per cent growth in credit market share in the period, VDSC statistics showed. In which, MBBank ranked first with an increase of 90 basis points, followed by Techcombank and VPBank with rises of 86 and 78 basis points, respectively. The three banks also had compound annual credit growth of more than 20 per cent while their capital adequacy ratios also topped the list. Sacombank was the only bank to lose credit market share with a reduction of 2 basis points. VDSC’s statistics also showed banks made a strong shift to corporate bonds in 2020 so as to spur credit growth in the year when loan demand was affected adversely. The contribution rate of corporate bonds to banks’ credit growth in 2020 ranged from 20-38 per cent. According to VDSC, Viet Nam's economy has been heavily dependent on credit. Therefore, to maintain the country’s GDP growth rate of 6-8 per cent in the coming years as projected, VDSC estimated the credit growth of the banking industry to stay at double digits. VDSC forecast credit growth of the banking industry this year would be 13.1 per cent on average. Major private banks, including Techcombank, MBBank, VPBank and ACB, are expected to maintain their credit growth higher than the industry’s average rate. The State Bank of Viet Nam (SBV) targeted a credit growth rate of 12 per cent this year, equivalent to the growth of 12.13 per cent last year. However, it said the goal was not a fixed figure, as it might adjust it if necessary. …
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Credendo: Viet Nam continues successful economic story beyond a contained pandemic
Viet Nam continues successful economic story. — VNA/VNS Photo Credendo Group’s offices in Germany and Austria have published a study to evaluate the level of risk in Viet Nam, which emphasises that the Southeast Asian country is continuing its successful economic story after its good performance in controlling the COVID-19 pandemic. The article quotes the latest country study of Credendo, saying that Viet Nam has been one of the few highly resilient countries during the unprecedented COVID-19 shock. The swift, strict and very effective containment of the virus after the outbreak in neighbouring China largely explains this, it says, noting that an early travel ban, testing and wide-scale contact tracing on top of the containment measures have helped keep the virus under control. While most countries were severely hit and hindered by the economic impact of the virus, Viet Nam’s economy continued to operate at a good albeit slower pace despite an initial high level of business disruption, it says. Credendo's study shows that in 2020, Viet Nam had exceptional economic performance while advanced and emerging economies in all the world’s regions have suffered a record recession. The study says for Viet Nam, the global demand slump was more than offset by the strong global demand for medical products, electronics and computers resulting from the COVID-19 crisis. Hence, exports of goods grew last year. Increased public investments in infrastructure also played a significant role in supporting economic activity. A more accommodative monetary policy – including the State Bank of Viet Nam’s policy interest rate cut from 6 per cent to 4 per cent – brought an extra stimulus. According to Credendo, Viet Nam remains largely immune to the further waves of the virus that are currently affecting many parts of the world. Hence, the Vietnamese authorities will take time to vaccinate the population. Viet Nam is confidently looking ahead to continue the country’s …
