Want to be in the loop?
POSITIVE SIGNS FROM VIETNAM’S BANKS AS CREDIT RANKING RISES
The world’s leading credit rating firms have ranked Vietnamese commercial banks at higher positions this year, reflecting the success of monetary policy and efforts made by commercial banks.
Moody's Investors Service on August 14 upgraded the ranking of 14 Vietnam’s commercial banks. Prior to that, the world's leading credit rating agency lifted the national credit rating from B1 to Ba3 on August 10.
Moody's said that the rating improvement was gained on the basis of the strong growth potential of Vietnam’s economy, with the backing of an increasingly effective use of labor force and capital.
It also said the rating upgrading reflected improvement in the banking system.
Fitch Ratings in May 2018 upgraded the Long-Term Default Ratings (IRDs) and revised the Support Rating Floors of three state-invested banks, namely VietinBank, VIetcombank and Agribank, from B+ to BB-.
Prior to that, the agency lifted Vietnam’s credit rating from BB- to BB.
Explaining the move, Fitch Ratings said Vietnam is building policies aiming for macroeconomic stability. The measures to ensure more flexible exchange rates and focus on curbing inflation have helped attract FDI and maintain a high economic growth rate.
Vietnam’s forex reserves have improved continuously thanks to the application of a new exchange rate mechanism in early 2016, aiming for a more flexible exchange rate, large surplus of current accounts and FDI attraction.
Brand Finance, when releasing the list of 500 most valuable bank brands in the world in early 2018, named three Vietnam’s banks – VietinBank, BIDV and Vietcombank.
Moody’s upgraded the outlook of Vietnam’s banking system from stable to positive, while Bloomberg commented that Vietnam dong was one of the most stable currencies in Asia.
The Doing Business Report 2018 of the World Bank put Vietnam in the 29th position out of 190 surveyed countries in Getting Credit index. This represented a 3-notch improvement compared with the year before.
The State Bank of Vietnam has been praised for its timely actions and reasonable moves to regulate loan interest rates, and ensure a stable exchange rate, factors that help protect investors’ confidence in Vietnam’s investment environment.
Despite the uncertainties in the global market (interest rate hike in the US and trade tense among countries), the exchange rate and forex market in Vietnam remained stable with good liquidity and smooth transactions. All the lawful demands for foreign currencies were satisfied by the banking system.
By the end of August, the loans disbursed for agriculture and rural development had increased by 12 percent over the end of 2017, while the loans to fund exports had risen by 7.43 percent.
The 18th edition of Vietnam International Textile & Garment Industry Exhibition (VTG) concurrent with Vietnam International Textile & Apparel Accessories Exhibition (VitaTex) will run on November 21-24 at Saigon Exhibition & Convention Center (SECC) again.
1. Tightening monetary policy to control inflation 2. Bad debt rises, are bank shares still attractive?3. New trends in Vietnam's rice exports 4. Stable growth predicted for steel consumption until year's end 5. Tax collection from tech-based business activities faces difficulties ----and more news
1. Equipment and accessories supply-bid extend2. Redundancy module supply-bid denial3. Water equipment and materials supply-bid extend4. Clean room supply and installation5. Audio equipment and projector supply----and more news
The Ministry of Industry and Trade has forecast that Viet Nam’s total export revenue will grow 10-12% to hit a record of US$ 239 billion for the whole year 2018, much higher than the set target of US$ 214 billion.
Viet Nam has become the 7th country to approve the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), a move that is not only expected to bring about real economic benefits but also boost institutional reform underway.
With 434 votes of favor (equivalent to 89.48%), the 14th National Assembly on November 12 passed a medium-term public investment plan for the 2016-2020 period and a resolution on adjustments to the medium-term public investment plan.