A number of banks at the end of July reported significant increases in H1 profits on strong credit growth despite pressures from the coronavirus pandemic.
The COVID-19 pandemic not only creates challenges for banks, but also pushes them to foster digital transformation to survive, experts have said.
Tran Tuan Anh, director of a three-star hotel in HCM City’s District 1, said hopes of a business revival after earlier waves of COVID-19 were contained have vanished with the latest outbreak, and bankruptcy looms.
Local credit institutions are enjoying a rise in bancassurance activities with more exclusive deals coming, according to industry insiders.
Given abundant liquidity and low demand for credit, banks are offering attractive loans during the year-end period.
LienVietPostBank has said it will complete the transfer of its LPB shares from the unlisted Public Company Market (UPCoM) to the Ho Chi Minh Stock Exchange (HoSE) in the fourth quarter of this year.
Banks, especially State-owned banks, are expected to increase their capital significantly this year as they are allowed to retain profits or pay dividend in shares instead of cash as previously.
Vietnam’s early efforts to weather the COVID-19 storm have helped its economy to reopen much sooner than others, with many sectors that have suffered badly from the outbreak – from retail to finance –now recovering with poise.
The Ministry of Finance has slashed administration fees in numerous sectors to help the economy get back on its feet when the COVID-19 pandemic eases.
Many travel firms affected by Covid-19 are struggling to access loans with low interest rates from the Government’s credit package as banks have denied their applications out of concern over their ability to repay the debt
Though the unofficial value of the VND has now fallen about 3 percent against the USD, the rate is still a smaller depreciation than that seen by most of Vietnam’s regional peers and is expected to stabilise around that level.