STOCK MARKET 2021: POSITIVES AND RISKS
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?
CENTRAL BANK TARGETS CREDIT GROWTH OF 12 PERCENT 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.
INSURANCE INDUSTRY: VAST ROOM FOR GROWTH
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%.
STOCKS ADVANCE AMID STRONG CASH FLOW
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.
DRIVERS OF FUTURE CONSUMPTION IN ASEAN
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.
BANKS RAISE FOREIGN OWNERSHIP RATIO TO IMPROVE FINANCIAL STRENGTH
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.
VIETNAM TO ALLOW BANKS TO USE FOREIGN E-WALLETS FOR INT’L PAYMENTS
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.
HCM CITY BANKING SECTOR TO CONTINUE SUPPORTING BUSINESSES HIT BY PANDEMIC WOES
Nguyễn Hoàng Minh, deputy director of the SBV’s HCM City branch, said the central bank is working with local authorities, the HCM City Union of Business Associations and other agencies to ease funding difficulties faced by businesses.
