VietNamNet Bridge – Some economists say commercial banks now make “super profit” when keeping the input and output interest rate margin at six percent. Meanwhile, banks have denied this.

Since commercial banks have lowered the interest rates, depositing has become less attractive in the eyes of investors.

VietNamNet Bridge – Vietnam lacks the medium size businesses which can act as the bridge connecting enterprises and join the global supply chain.

The Governor of the State Bank of Vietnam has decided to delay the implementation of the Circular No. 02 guiding the provisioning against the risks in credit activities.

While the profits from the credit activities decreased significantly in 2012, the proportion of income from the investment in government bonds tends to increase.

Despite the successive interest rate reductions, the interest rates in Vietnam are still the highest in the region.

Commercial banks have been told by the State Bank to lower the deposit interest rate to 7.5 percent per annum. However, if they do, they would not be able to attract deposits.

Commercial banks have quietly reduced the deposit interest rates because of the low demand for loans. Investors have been in a divided mind as to where to pour money to since all the investment channels remain unattractive.

Issuing local authorities bonds proves to be the only solution for localities now to cover the local budget deficit. However, this may be a big threat, according to experts.

VietNamNet Bridge – The tentative suggestion on requiring via-bank payment for the transactions of valuable products, to many people, is just “trifle,” and raises no worry to them, because they believe they can play tricks to dodge the laws.

Commercial banks keep offering high interest rates to attract more deposits from the public. The business circle affirms it is thirsty for capital, while workers complain about modest Tet bonuses. Where has the cash gone, then?

VietNamNet Bridge – The Vietnamese banking system experienced a stormy year 2012. However, no collapse or disaster occurred.

The State Bank of Vietnam successfully eased the interest rates in 2012 in order to make it easier for businesses to access bank loans. However, there is always the other side of a coin.

The biggest obstacle for finance institutions to expand consumer finance services is the government’s policy which does not give support to the sector.

Whether Vietnam can settle bad debts or not will decide how the Vietnam’s national economy performs in 2013. Meanwhile, it’s still unclear where the money to settle the bad debts comes from.

Experts believe that consumer finance would witness a boom in 2013, when there are all favorable conditions for the market to develop.

Commercial banks have launched a series of promotion campaigns, inviting people to loans at preferential interest rates. However, their invitation has not been replied to.

The best thing of the 2012 is the stabilization of the dong/dollar exchange rate. The worst is the bad business performance of commercial banks.

The Ministry of Agriculture and Rural Development (MARD) has raised the doubts about the sum of 38 trillion dong disbursed to catfish farmers reported by the State Bank of Vietnam (SBV).

Not only commercial banks, but some enterprises have also set up the divisions in charge of collecting debts.