The State Bank of Vietnam is predicted to continue maintaining a loose monetary policy with low interest rates, even as the global economy is showing positive signs.
The stock market ended 2020 with diverse notes, from the selloff in Q1 which sent the VN-Index down to 660 points, the lowest in four years, to the recovery and strong rally, especially in Q4 despite the strong impact of Covid-19 on the global economy. What is the driver for the market confidence in 2021?
The State Bank of Vietnam (SBV) targets a credit growth rate of 12 percent in 2021, equivalent to the growth of 12.13 percent last year, according to SBV Deputy Governor Dao Minh Tu.
Total insurance premiums were estimated at VND184,662 billion in 2020, representing a year-on-year growth of 15%, according to the Ministry of Finance. Non-life insurance premiums were projected at VND57,102 billion, up 8% over 2019, while life insurance premiums were forecast at VND127,560 billion, up 19.6%.
Despite the profit taking pressure, the VN-Index of the Hochiminh Stock Exchange continued its upward spiral and gained 12.08 points at the close on January 5, buoyed by active cash flow.
ASEAN is the world’s third most populous economy and is projected to become the fourth largest economy by 2030. By then, domestic consumption, which powers roughly around 60 percent of ASEAN’s gross domestic product (GDP) today, is expected to double to 4 trillion USD.
Việt Nam’s finance and banking is still attracting foreign investors, but experts said the low ownership ratio of 30 per cent capped for foreign investors was a barrier.
The State Bank of Vietnam is drafting a circular regarding cashless payments which might allow domestic commercial banks and domestic intermediary payment companies to co-operate with foreign intermediary payment companies to provide international payment services.