CENTRAL BANK URGES COMPLIANCE WITH FOREX RULES
The HCMC branch of the State Bank of Vietnam (SBV) has told local banks and foreign bank branches to strictly comply with foreign exchange regulations after the trading band of the Vietnamese dong currency was widened from 3% to 5% on either side of the central exchange rate.
BANKING, REAL ESTATE NOT IDEAL OPTIONS FOR SHORT-TERM INVESTORS
By the end of this year, oil and gas, transportation, insurance, retail, and hydropower sectors will see positive signals, while the banking and real estate sectors are not ideal options for short-term investment, said experts from DNSE Securities Company.
VIETNAM’S CENTRAL BANK HIKES INTEREST RATES AFTER FED MOVE
The refinancing rate – which the central bank applies to short-term loans for commercial banks – rises to 5% per year from 4% while the rediscount rate, applicable to valuable papers, inches up to 3.5% per year from 2.5%. The 4% refinancing rate and the 2.5% rediscount rate had been in force since October 2020.
MARKET DOWN SLIGHTLY ON RISK-OFF SENTIMENT
The market’s breadth was in a negative zone with 262 stocks declining, while 184 stocks inched up. However, liquidity improved compared to the previous session, of which matching value on the southern bourse increased by 1 per cent to over VNĐ10.1 trillion (US$431 million).
NEW REGULATIONS ON IMPORTING CARS AND MOTORCYCLES FOR NON-COMMERCIAL PURPOSES
The General Department of Taxation (GDT) recently requested tax departments in centrally-run cities and provinces to enhance tax administration for cars and motorcycles permitted to import or temporarily imported for non-commercial purposes.
FINANCE MINISTRY SETS TARGETS FOR BANKING SYSTEM
Ministries and agencies will have to report their results to the MoF’s Department of Banking and Financial Institutions before November 15 every year so the department can compile the results to send them to the SBV before November 30 every year.
PEOPLE PREFER BANK DEPOSITS AMID GLOBAL UNCERTAINTIES
Nguyễn Phương Thảo, a salesperson in a Hà Nội-based logistics company, said in the past two years, when the savings interest rate at banks dropped sharply due to the pandemic, she used her idle money to invest in the securities market and got a decent profit.
CHEAP CAPITAL SOURCES AT MOST BANKS DECLINE IN Q2
Focusing on increasing CASA – or the proportion of demand deposits out of total deposits – has been one of the top targets of many banks in recent years as it is a cheap capital source that helps banks have low input capital costs. Currently, demand deposits have very low interest rates of only 0.1 per cent per year.
