The State Bank of Việt Nam (SBV) will likely continue its tightened monetary policy in the remaining months of the year after its decision to strictly control lending to high risk sectors in the third quarter didn’t adversely affect the country’s economic growth, according to experts.
From January 1, 2018 to September 5, 2018, the total import-export tax revenue through e-tax payment of the customs sector reached VND191,145 billion, accounting for 95% of the total revenue to the State budget.
Việt Nam’s stock market capitalisation increased 13 per cent against the end of last year, reaching nearly VNĐ3.97 quadrillion (US$169.5 billion) by the end of August. This value was equivalent to 79.2 per cent of the country’s gross domestic product (GDP), according to the Ministry of Finance.
The draft Law on Tax Administration (amended) adds a lot of new regulations to meet tax reform requirements to further help taxpayers. Mr Cao Anh Tuan, Deputy General Director of the General Department of Taxation, said, the draft law increases rights and facilitations for taxpayers. Specifically, taxpayers will know the time limit for tax refund, the value of unrefunded tax and legal reasons for unrefunded tax.
“The lack of transparency hardly creates confidence while credit is built on trust. Insufficient trust plus the lack of collaterals and an unfeasible business projects causes credit institutions to say 'No' to small and medium-sized enterprises (SMEs),” said Dr Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), at the Forum on Solutions to Boost Fund Sources for SMEs recently held by the Business Forum Newspaper in Hanoi.
Manufacturing and construction are likely to remain the fastest-growing sectors. The forecast is highlighted in the bank’s recently published Global Focus report for the third quarter of 2018 entitled “Fattening tail risks”.
Việt Nam’s insurance industry achieved high year-on-year growth of 24.35 per cent in the first half of 2018, helping total revenue to reach more than VNĐ58.65 trillion (US$2.55 billion).
Most of the local banks have further tightened credit for the real estate sector by raising the annual interest rates for home loans by one to two percentage points compared with earlier this year, leading the sector to slow down, reported Sai Gon Giai Phong newspaper.