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.

Deputy Governor of the State Bank of Vietnam Dao Minh Tu has said July 7 is the deadline for e-wallet owners to complete the identity verification.

The State Bank of Vietnam (SBV) is expected to further take monetary easing measures to support the country’s GDP growth target of above 5 per cent this year in light of a weak economic outlook, experts forecast.

The recent interest rate cuts by the State Bank of Vietnam (SBV) have little impact on the Vietnamese stock market.

Given the weak economic outlook in Vietnam, Fitch Solutions expects further easing measures to be applied over the rest of 2020 as the country is still targeting real gross domestic product (GDP) growth above 5%.

With fewer concerns about currency and external stability, Vietnam’s central bank is likely to be more comfortable with delivering interest rate cuts to support growth.

The State Bank of Viet Nam (SBV) has issued licences to two non-banking organisations to provide intermediary payment services.

The government of Vietnam is moving ahead with a plan to put mobile money into use to reduce social contact and cash circulation.

Banks are ready to seize business opportunities in the coming months as the COVID-19 pandemic has been basically controlled in Vietnam and domestic production and business are expected to accelerate soon.

Credit institutions in Viet Nam settled more than VND26.94 trillion (US$1.17 billion) of non-performing loans (NPLs) in the first quarter of this year.

The central bank of Vietnam had previously cut the benchmark interest rates by 0.5 – 1 percentage point in March.

Experts say investors should target investment channels with high liquidity such as savings accounts, gold and dollars, and wait patiently for opportunities with stocks.

Deputy Governor of the State Bank Dao Minh Tu said at a conference between the Prime Minister and ministries’ leaders that state-owned banks will have to sacrifice 30-40 percent of profit to help businesses cope with Covid-19.

The State Bank of Viet Nam's branch in HCM City has set up a hotline (028) 38.211.230 to provide assistance to enterprises, especially for those badly affected by the COVID-19 pandemic.

The State Bank of Vietnam (SBV) has withdrawn the licences of the representative offices of Kookmin from South Korea and Commonwealth Bank of Australia.