Vietnamese people are overpaying to own a same amount of gold as their international peers, said an expert.

Vietnam’s economy was adversely affected by the COVID-19 pandemic in 2020, along with natural disasters and the impact of trade conflicts.

The U.S. Department of Treasury’s decision to label Vietnam as a “currency manipulator” is not satisfactory given the country’s real conditions.

The US Treasury Department’s labelling of Vietnam as a currency manipulator is biased, as it is only based on US standards and lacks suitable consideration as well as recommendations from international organisations, according to experts.

The State Bank of Vietnam has asked the Vietnam Asset Management Company (VAMC) to come up with a plan to establish a debt exchange and submit it to the competent agencies for approval.

The inflation in 2020 is forecast at 3.3%, significantly lower than the target of 4% set by the government.

It is now easier than ever to borrow money through apps, but paying back the debts can be difficult since interest rates can be 700-1,400 percent per annum.

Individual investors are increasingly buying real estate bonds and land rather than depositing money in banks, which have reduced interest rates on deposits.

Despite a credit slowdown in the first half of 2020, some private commercial banks have still asked the State Bank of Vietnam (SBV) for a credit growth expansion to prepare for a peak lending season expected at the end of the year.

Peer to peer lending (P2P Lending) will become legal in Vietnam after a draft decree on fintech management is compiled.

The dollar price has decreased since the second half of March, with the dong/dollar exchange rate in the interbank market falling to VND23,200 per dollar last week.

Along with implementing better provisions against credit risks, commercial banks are stepping up the sale of mortgaged assets to collect debts.

Though demand for loans was low in the first five months of the year, commercial banks were able to implement 40-50 percent of their business plans.

A large amount of cash released in quantitative easing packages by central banks will be an abundant source of capital for the domestic stock market in the near future.

Credit demand in Vietnam is expected to stay low in the foreseeable future as the Covid-19 pandemic continues to be complicated globally, said a central banker.

Some credit institutions (CIs) that have not yet completed their restructuring roadmap will have to speed up the process to meet the State Bank of Vietnam (SBV)’s deadline this year.

The State Bank of Vietnam (SBV) has deployed a financial package worth VND16 trillion to support enterprises impacted by the coronavirus pandemic, 

Many commercial banks are proposing the central bank to extend credit growth limits as they have nearly reached the allowed threshold.

As of May 29, Vietnam’s credit growth was only 1.96% compared with late 2019 under impacts of the Covid-19 pandemic, the Credit Department announced at a press conference held by the State Bank of Vietnam (SBV) Friday.

Transactions via mobile devices recorded a year-on-year surge of 198% in volume and 210% in value last year.