This year, major international organizations forecast that the world economy will continue its downward trend, of which developed economies will have a growth rate of 0.3 percent lower than last year and emerging economies will keep the same growth rate of last year of about 4.7 percent. However, Vietnam's economy is still forecasted to be optimistic, with GDP up 6.6 percent to 7 percent. Sai Gon Giai Phong Newspaper recently had an interview with Ms. Ta Thanh Binh, head of the Securities Market Development Department under the State Securities Commission. SGGP: In your opinion, what are highlights of 2018? Ms. Ta Thanh Binh: Last year, the Vietnam’s securities market experienced several fluctuations due to complex economic, financial and monetary situation in the world. However, the country’s securities market was still able to achieve and maintain impressive results amid the situation. By the end of 2018, the Vietnam’s benchmark VN-Index was at 892.54 points, down … [Read more...] about Securities market needs improvement to attract investment
When will money market rates increase
Viet Nam News In 2018, the State Bank of Việt Nam (SBV) maintained active and flexible management of the exchange rate to keep the domestic market stable in the face of international pressure. SBV Deputy Governor Nguyễn Thị Hồng speaks to Vietnam News Agency about this issue. How did the SBV manage an efficient monetary policy in 2018? The State Bank actively and flexibly governed monetary policy in 2018 when the world economic and political situation faced many challenges and unusual fluctuations. At the same time, the SBV also coordinated closely with fiscal policy and other macroeconomic policies to stabilise the macro economy, control inflation and support economic growth at a reasonable level. Therefore, the average inflation in 2018 continued to be controlled at 4 per cent as the target. The bank had several consecutive years of efficiently managing monetary policy, meaning it made an important contribution to successfully controlling inflation. The … [Read more...] about Exchange rate in 2018 stable despite pressure
Global uncertainties, such as the impacts of the Fed’s rate hikes and the spiralling US-China trade war, have triggered questions about whether the lending interest rate in Vietnamese dong will increase and in what direction foreign exchange rates will move. The Vietnam News Agency talks with economic expert Vu Dinh Anh about his forecasts for the developments of the financial markets in the remaining months of this year. Could you comment on the recent developments of the money market? The money market from the beginning of this year has seen stable developments. Major indicators such as money supply, deposit growth, credit growth, interest rates and foreign exchange rates have all seen stability in the period. The foreign exchange rate is one macroeconomic indicator which has drawn significant market attention recently, given the Fed’s rate hikes and the spiralling US-China trade war. The foreign exchange rate is largely relevant to the openness of the Vietnamese economy. … [Read more...] about Domestic market faces global uncertainties
Vietnam’s e-commerce websites are still receiving heavy investment to develop despite big losses, but when will these projects stop losing? The Vietnamese e-commerce market is one of the leading markets in the region for investment. According to Nielsen, the annual growth speed of the e-commerce market is 22% and is expected to hit US$10 billion in annual revenue by 2022 from the current US$4 billion. The Vietnamese e-commerce market shows huge potential for development and receives great attention from new investors. In a recent report by Topica Founder Institute, e-commerce attracted US$83 million of foreign investment through 21 deals. Startup SEA (used to be Garena, which was termed as a unicorn in Asia), ranked first among investors pouring capital into Vietnamese startups in 2017. SEA spent US$64 million acquiring 82% of the shares in Foody, a food delivery website and app. CyberAgent Ventures, a Japanese venture investment fund, continues its activities in Vietnam. In … [Read more...] about When will Vietnam’s e-commerce players stop “burning money”?
Viet Nam News “Everyone, I will sell rose bouquets tomorrow in celebration of International Women’s Day. Those who are looking to give flowers to their girlfriends or classmates, please come to support me in front of Gate A of Hải Phòng University.” So wrote 26-year-old Trần Thị Hoa in one of her last Facebook posts on March 6. Early on the morning of March 7, Hoa and her friend Trần Thị Trang rode on motorbike to the flower market Đằng Hải in Hải An District in the northeastern port city of Hải Phòng. Not born to wealthy families, the pair intended to buy flowers and utilise their craft skills to make elaborate bouquets, aiming to make some money to cover their study and living expenses. On that fateful morning, Cao Huy Hoàng was driving a container truck for an export-import company along his usual route. Stopped at a red light, he saw that two trucks ahead of him were already occupying … [Read more...] about Road accidents: When will the pain end?
Lending interest rates have room to be reduced further due to the support of positive factors including the recent Government resolution that requires the State Bank of Vietnam (SBV) to strive for lowered interest rates. According to data from the National Financial Supervisory Commission, deposits from economic organisations and individuals have increased since January this year, which was up 0.5% compared to the end of 2017. Meanwhile, the average deposit interest rates in Vietnamese dong for over 12-month terms hovered around 6.55% per year in the first two months of this year, up 0.03 percentage point compared to the end of 2017. Several joint stock commercial banks pushed their long-term interest rates higher, including Viet Capital Bank, with the long term interest rates listed at 8.3% per year for 13-month term deposits, up 0.3% compared to the end of 2017 and 8.5% per year for 15-month term deposits. The slight increase in long-term deposit rates in the first months of this … [Read more...] about Interest rates expected to be lowered
Specific Policies For Specific MarketBy Quang MinhIn developed countries, few people hold on to gold due to its low liquidity and complicated transaction procedures, and only professional investors make transactions in large quantity. In Vietnam, on the other hand, in line with the current legislation, gold trading is quite favorable, except for material gold import and export and gold bar production, which are strictly controlled by the State Bank. Jewelry gold trading and fashioning are conditional business, but they do not require a certificate. A registration at a local Department of Planning and Investment is enough for organizations and individuals to conduct this business.While the world gold market is developing professionally, with new forms such as physical gold trading, exchange-traded funds (ETFs), investments through accounts, gold derivatives or stocks of gold mining companies, gold trading in Vietnam just began in 2008. Transactions in the local market are mostly buying … [Read more...] about Specific Policies For Specific Market
Agribank, Vietcombank, Vietinbank, BIDV and VPBank will reduce lending interest rates by 0.5 per cent a year for prioritised economic sectors, such as small and medium domestic businesses. Financial expert Nguyen Tri Hieu answered Viet Nam News questions on the matter.What is your take on this incentives application?I think this prioritised lending-rates reduction is a positive action to encourage development by commercial banks following the Prime Minister’s and the State Bank of Vietnam’s instructions to support enterprises in accessing capital at the most reasonable cost to promote economic growth.I applaud their effort in helping businesses grow for the year ahead, which is a common determination across the banking sector, starting with the SBV’s 2018 socio-economic development plan. The 0.5 per cent reduction may seem small, but it will have significant impact on small-and-medium-sized enterprises (SMEs) whose chief capital flow comes from commercial banks, so … [Read more...] about Silver lining to interest-rates blues
Shoppers test out different mobile devices at a Viettel store on Ngoc Khanh Street, Hanoi (Photo: VNA) Hanoi (VNA) - Vietnam’s much vaunted digital access and advantages that arise fromit could run out of steam unless it is renewed and made more substantial,experts have said.The majority of Vietnamese mobile users are becoming more and more active inaccessing digital content on the mobile platform, and the country is seen as a risingstar in the Southeast Asian and Asia-Pacific mobile applications markets.However, some tech experts are unsure that this trend can be maintained.Tran Khanh, a legal representive and Director of Hanoi-based tech company TOPSInternational JSC., said that Vietnamese people like newtechnology and conveniences, and therefore, both young and old generations arehooked on their smartphones.Late last month, the Facebook Official Gaming Agency in Vietnam,Adsota, released its 2017 report on the country’s mobile … [Read more...] about Vietnam’s app market needs to stay on its toes: experts
Viet Nam’s much vaunted digital access and advantages that arise from it could run out of steam unless it is renewed and made more substantial, experts say. Shoppers test out different mobile devices at a Viettel store on Ngoc Khanh Street, Ha Noi.The majority of Vietnamese mobile users are becoming more and more active in accessing digital content on the mobile platform, and the country is seen as a rising star in the Southeast Asian and Asia-Pacific mobile applications market.However, some tech experts are unsure that this trend can be maintained.Tran Khanh, legal representive and Director of Ha Noi-based tech company TOPS International Jsc., told Viet Nam News that Vietnamese people like new technology and conveniences, and therefore, both young and old generations are hooked on their smartphones.Late last month, the Facebook Official Gaming Agency in Viet Nam, Adsota, released its 2017 report on the country’s mobile advertising market and monetisation of … [Read more...] about VN app market needs to stay on its toes: experts