Do orange justice – Talk Vietnam

Until now, no forex trading platforms had been licensed for operation in Việt Nam. — File Photo HÀ NỘI — Forex trading via investment platforms had not been licensed in Việt Nam, posing significant risks to investors, Deputy Governor of the State Bank of Việt Nam Đào Minh Tú warned. Tú said at the Government’s meeting on Tuesday in Hà Nội that the operation of forex trading platforms was currently illegal, adding that the trading of foreign currencies and derivatives must be provided by credit institutions and commercial banks licensed by the State Bank of Việt Nam. Until now, no forex trading platforms had been licensed for trading, he stressed, warning about risks when investing via these platforms. Recently, some organisations like Lion Group called for investments in forex through Fx Trading Markets with attractive interest rates of up to 300 per cent per year and commissions. Lion Group attracted around 40,000 investors nationwide. Tú urged people to be cautious with these appealing calls, adding that there were signs of in-transparencies and frauds. “The skyrocketing profits in the current situation are impossible and investors must be cautious before deciding to pour money in forex trading platforms,” Tú said. The Ministry of Industry and Trade also said that the business model of Lion Group or other forex trading platform was not compliant with the established regulations about multi-level marketing businesses. Relevant management agencies must introduce regulations for the operation of these models. Regarding payments, Tú said that there were more and more oganisations providing payment services along with the development of technologies, adding that the central bank always focused on ensuring safety and convenience in payment. He urged attention to be paid to protecting personal data to ensure security in conducting payment transactions. Tú stressed that bitcoin and other cryptocurrencies were not legal means of payment in Việt Nam. …

The Hanoitimes - Such comparison suggests that the development of the banking sector may have been too rapid compared to the size of the economy. Vietnam has the highest credit-to-GDP ratio among the lower middle-income countries and is at par with some of the OECD countries, according to the World Bank. Illustrative photo. These comparisons suggest that the development of the banking sector may have been too rapid compared to the size of the economy, stated the World Bank in a report titled “Finance in Transition”. Both economic theory and empirical evidence demonstrate that economic growth and financial markets development are closely interconnected. Such correlation is also apparent in the recent history of Vietnam, as the rapid economic growth reported over the past 25 years has been accompanied by a surge in banking credit from 17% of GDP in 1996 to over 130% in 2018. Such a rapid development of the banking sector, albeit beneficial, has arguably created some challenges that may prevent the emergence of a dynamic private sector. The first challenge is that the allocation of credit by banks has traditionally been biased toward the public sector, including SOEs, which accounts for a significant share of total credit in the banks’ portfolio. More recently, a disproportionate share of credit has been directed to real estate and housing, and to a lesser extent to durable consumer goods (for example, cars). These two categories have crowded out the credit available for private firms, particularly small and medium-sized enterprises (SMEs), which today represent only a marginal share of the credit market in Vietnam. The provision of long-term credit to firms is further constrained by the short nature of deposits (over 80% are one year or less) and by relatively high transactions costs due to the lack of information, weak collateral, and the poor functioning of the justice system. The second challenge is that the financial market is …

Risky to invest in forex trading plaforms: Deputy Governor

Vietnam’s credit-to-GDP ratio on par with OECD countries