Business News

Lending interest rates will drop sharply in the second half of 2023 as capital costs of commercial banks are falling, analysts forecast. In a recent report, VnDirect’s analysts said they believe lower lending rates will be the factor that promotes the recovery of consumption and private investment in the coming quarters.

Mergers and acquisitions between domestic and international real estate developers were down in the first half of the year, but could be a future bright spot with Vietnam boasting attractive economic fundamentals and investors biding their time.

According to the latest report by the World Bank, Vietnam’s economy is expected to grow by 4.7 per cent in 2023, with a slow recovery to 5.5 per cent in 2024 and 6 per cent in 2025. After registering 8 per cent real GDP growth in 2022, Vietnam’s economic growth decelerated sharply in the first half of 2023, reflecting a global slump and weaker domestic demand.

1. Support crafted to simplify and unify business prospects
2. New resolution intended for robust economic growth
3. Decoding factors affecting Vietnam's economic recovery
4. Vietnam to develop new energy-based development engine
5. Binh Phuoc targets 20pct of GRDP from digital economy
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1. HCM City proposes foreign currency accounts for overseas Vietnamese
2. Citizen database helps reduce credit default risks
3. Economy improves but challenges remain: official
4. Success stories not hard to find at venture capital funds
5. Legal tweaks could unlock potential
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As firms are facing many difficulties and the capital absorption of the economy in the first half of 2023 hit the lowest level in the past 13 years, the Government has urgently required the banking industry to further reduce interest rates and pump capital into the economy.

The deputy PM said improper application of methods or the use of subjective, non-transparent, and inaccurate data inputs employed during the valuation process has often resulted in inaccurate pricing and caused revenue losses to the State budget. Additionally, the complexity of valuation methods and the lack of comprehensive and reliable land price databases in the market also contribute to inconsistent results.

As of July 20, total newly-registered capital, additional capital, and capital contributions and share purchase by foreign investors stood at nearly 16.24 billion USD, up 4.5 per cent compared to the same period of 2022 and 8.8 per cent compared to the first half of the year.