Vietnam’s trade in January-April soared by 15.2% year-on-year to US$238.88 billion, according to the General Statistics Office (GSO).

GSO data put exports in the first four months of the year at US$123.64 billion, up by 15% over the same period last year. Of the total, 21 export items generated revenue of over US$1 billion each, and they accounted for 86.4% of the total export revenue.

Imports also surged by 15.4% year-on-year to US$115.24 billion. There were 20 import items registering a spending bill of US$1 billion each, and making up 78.9% of the total import spending.

The country earned a trade surplus of US$8.4 billion in the period.

The U.S. was Vietnam’s top export market, with US$34.1 billion, followed by China with US$18 billion and and European Union with US$16.4 billion.

On the other hand, China maintained its position as Vietnam’s largest supplier, with an estimated value of US$41.6 billion.

Housing Law, Real Estate Business Law likely to take effect from early July

The Ministry of Justice has announced a review of the draft National Assembly resolution allowing the 2023 Housing Law and the 2023 Real Estate Business Law to take effect from July 1.

The National Assembly passed the Real Estate Business Law and the Housing Law during its sitting in November last year, and both laws were originally scheduled to come into force on January 1, 2025 to coincide with the effective date of the amended Land Law.

The Government wants the amended Land Law, which was passed by the National Assembly in January this year, to take effect from July 1.

According to the draft resolution just announced by the Ministry of Justice, the Government has proposed allowing the Housing Law and the Real Estate Business Law to take effect ahead of the originally scheduled date.

The Housing Law contains several groundbreaking provisions contributing to the goal of refining institutional frameworks and policies, enhancing management efficiency, and promoting housing development.

Meanwhile, the Real Estate Business Law has numerous innovative provisions to enhance decentralization and administrative reforms, ensuring consistent management from the central to local levels, and establishing tools for managing the real estate market.

In early April, the Prime Minister requested the relevant ministries and agencies to draft guidelines for the implementation of the amended Land Law, the Real Estate Business Law, and the Housing Law to ensure sufficient conditions for the early enforcement of these three laws.

Four- and five-star hotels to boom in Hanoi as tourism rebounds

The positive recovery in the tourism sector has led to a shift in the hospitality property market towards four and five-star hotels.

Savills forecasts that the five-star hotel segment will account for 76% of future supply in Hanoi, with the four-star segment making up the remainder. Most of the new projects are located in the city center.

"There are no plans to open any more three-star hotels in the next three years," said Matthew Powell, Director of Savills Hanoi.

Furthermore, the closure of low-quality supply has contributed to the repositioning of   Hanoi's hotel market, explaining the significant decline in the three-star hotel segment, he added.

According to Savills' research, Hanoi's total hotel supply at the start of 2024 was approximately 11,120 rooms from 67 projects, a 1% decrease from the previous quarter. However, the city has added two new four-star hotels and a further four new five-star hotels, resulting in an 8% increase in supply compared to the same period last year.

Last year, Hanoi welcomed the reopening of several five-star hotels such as Movenpick, and upcoming openings include Hilton and Fusion. Other notable five-star projects include Lotte's L7 West Lake Hanoi, Dusit Tu Hoa Palace, The Ritz Carlton, Four Seasons, Waldorf Astoria Hanoi and Fairmont.

He added that the recovery in tourism has helped boost the hotel market. From the beginning of the year to date, Hanoi, one of the major tourist cities, has received 6.5 million visitors, up 11% year-on-year. Of these, international arrivals reached 1.4 million, an increase of 40%, while domestic visitors totalled 5.1 million, an upturn of 5%.

The increase in tourist arrivals has created significant opportunities for the hotel industry, especially as the numbers are still only at 87% of what they were in 2019, before the pandemic, indicating the potential for further development.

Matthew Powell says the tourism industry is showing signs of picking up. Hotel room occupancy in markets such as Hanoi and Ho Chi Minh City reached 65% in the first quarter of this year, up 1% on a quarterly basis and 7% year-on-year.

Chinese arrivals are still considered to be below pre-pandemic levels. However, inbound tourism is more diverse in terms of nationalities, with visitors from Japan, Malaysia, Australia, Thailand, Cambodia and the US.

The growth in Indian arrivals has been particularly spectacular. Flights from major Indian cities to Vietnam have increased significantly and there are plans to introduce more direct flights to meet the growing demand from Indian tourists.

Vietnam's unique advantages are drawing the interest of luxury hotel chains, thereby expanding opportunities for the recovery and growth potential of the tourism and resort real estate sector.

Jan-April job growth impressive in Hanoi

Some 73,300 Hanoi workers found jobs in the first four months of the year, reaching 44.4% of the annual plan, an increase of 13.4% compared to the same period in 2023.

According to the Hanoi Department of Labor, Invalids and Social Affairs, the city placed 27,700 workers in jobs in April 2024, up 60.1% month-on-month and 38.2% year-on-year.

In the same period, the Hanoi Center for Employment Services provided job counseling and placement services to 1,800 workers and supported dozens of vocational training students.

Between January and April, the city paid unemployment insurance for 19,400 people, amounting to VND623 billion ($24,523).

Nguyen Tay Nam, Deputy Director of the Hanoi Department of Labor, Invalids and Social Affairs, said that in the coming period, the department will intensify the dissemination of labor-related laws to workers and employers to meet the requirements of international commitments on labor for the period 2023-2030.

In particular, a conference will be held in Hanoi to provide legal knowledge on labor and social security to 12 secondary schools, colleges, and universities in the city.

"The labor market is predicted to face shortages this year and next. Therefore, the city will continue to apply job creation measures," Nam told The Hanoi Times.

He added that the Hanoi Department of Labor, Invalids and Social Affairs is developing a labor market information system, strengthening the application of information technology, and undertaking digital transformation to employ 165,000 workers by 2024.

Other effective solutions include strengthening the links between labor supply and demand in the market, collection and updating of labor market information, review and assessment of demand by sector and field, organization of training programs to develop the skills of the workforce, and prompt response to the needs of the labor market.

The department also plans to provide employment opportunities for 20,000 people in 2024 by holding 230 job transaction sessions through online, specialized, mobile, and direct recruitment forms.

"Every year, we organize a Vocational Education Connection Day, which has helped people gain access to training institutions and companies, leading to employment opportunities," Nam said.

Hanoi vocational schools have a training target of about 235,000 people (26,000 at the college level, 29,000 at the intermediate level, and 180,000 at the basic level and through courses of less than three months). The proportion of trained workers is expected to reach 74.2%, of which 54% will be graduated or certified.

"In addition to domestic policies to support job creation, encouraging the sending of workers overseas through employment contracts is also one of the strategies to create jobs," the deputy director said.

He stressed that Hanoi continues to explore and develop new markets in Europe and America while consolidating traditional markets by taking measures to prevent contract violations and illegal workers. This year, the city will send 4,000 workers overseas, especially to markets with high and stable incomes such as Japan, South Korea, and Taiwan.

Vietnam enjoying stronger power as world’s 35th largest economy

The improvements in living standards and national economy prove that Vietnam has achieved impressive results 49 years after its unification.

The date of April 30, 1975 marked one of the most important milestones in the history of Vietnam since it could then stand in the world as one peaceful and independent nation.

Sadly, at the end of that year, the national economy encountered various obstacles as negative effects of the war. Not identifying a suitable development model, Vietnam did make some basic mistakes in the first 10 years after independence.

Relying much on the advantages of natural resources and existing economic conditions, Vietnam at that time did not enjoy favorable conditions because of objective reasons in the world. The centrally planned economy in the Soviet economy then began to display signs of crisis, while the US and some European countries applied economic embargo against Vietnam.

The national economy at that moment just based on state-owned companies and cooperatives, whereas private enterprises could not develop, and the market was not recognized, severely damaging the driving force for national growth, especially in the aspect of agriculture and cottage industry. The peak of economic crisis in Vietnam came in the 1983-1985 period, when inflation was at 700 – 800 percent, and citizens regularly endured food shortage.

Aware of the seriousness of the situation, in December 1986, the Party decided to apply a comprehensive reform so that the country can escape its socio-economic crisis.

General Secretary of the Party Nguyen Phu Trong summarized this reform in the comment that the 6th National Congress of the Party in December 1986 presented an in-depth analysis of the current state of the country, along with the lessons learnt from other nations. Following the mottos of ‘realizing the truth, assessing the truth, and stating the truth’ as well as ‘innovating the thinking’, the National Congress was able to introduce a comprehensive reform plan for the country, which is a milestone on the path to transition to socialism in Vietnam.

Party General Secretary Trong stressed that this reform plan was able to answer the demands of the country at that time, displaying bravery and creative thinking of the Communist Party of Vietnam. This paved the way for a new period in the country’s development.

Being steadfast in its appropriate reform plan, Vietnam was able to escape the socio-economic crisis, to break the embargo, and to overcome negative obstacles of the regional as well as international financial crisis during the 1997-1998 period. Even the recent Covid-19 pandemic, considered a harsh test of national governance capabilities, could not stop Vietnam from blooming vibrantly.

The updated statistics from the International Monetary Fund (IMF) reveal that the Vietnam's GDP scale in 2023 reached US$433.3 billion, occupying the 5th position in the Southeast region and becoming the world’s 35th largest economy. The national GDP scale this year is forecast to reach $469.67 billion.

Vietnam's GDP per capita has also grown quite impressively since the years of innovation until now. In 1975, this figure was VND232 (US$80 at that time). In 2008, it increased to around $1,000, helping the country leave the list of poor and under-developed nations to enter the better list of low-middle-income developing nations. In 2023, the GDP per capita was $4,284 USD, which is one more step for Vietnam to fulfill its goal of becoming a high-middle-income country by 2030 and then high-income one in 2045.

According to General Secretary Nguyen Phu Trong, the reform process, including the development of a socialist-oriented market economy, has obtained meaningful achievements, boosting the national growth and contributing to advancing the status of Vietnam in the world stage.

He then reminded that Vietnam should not just satisfy with the accomplishments so far. In fact, the gap between Vietnam and other countries in the world is still rather large. The global GDP per capita in 2021 was $12,314 while Vietnam’s figure in that year was merely $3,717 USD, which is less than a third.

More importantly, the proportion of old people in the country is now over 13 percent. This could mean a risk of ‘being old before turning rich’ is quite high. It is necessary to apply more changes and innovations to perfect the economic institution and improve institution implementation for an even stronger and more prosperous Vietnam.

According to the Center for Economics and Business Research (CEBR) – an independent economy prediction and analysis organization from the UK, the Vietnam’s economic scale will enjoy a breakthrough in the next 14 years. In particular, maintaining an average growth rate of 6.7 percent in the 2024-2028 period and then 6.4 percent in the following 9 years means that Vietnam will have become the world’s 24th largest economy by 2033.

At that time, its economic scale will be $1,050 billion. Thanks to the advantage of large and young population, in 2038, Vietnam will have a GDP scale of $1,559 billion to surpass other economies in the ASEAN region and earn the 21st position here as well as entering the list of top-25 economies in the world.

Draft decree on DPPA completed and under review

The Electricity Regulatory Authority under the Ministry of Industry and Trade said the draft decree on direct power purchase agreement (DPPA) has been completed and sent to the Ministry of Justice for evaluation and review.

After receiving comments from the Ministry of Justice, the Ministry of Industry and Trade will complete the draft and submit it to the Government for approval within this month.

In late April, the Government agreed to the Ministry of Industry and Trade’s proposal to build and issue the decree on DPPA following a simplified procedure.

The draft raises two options for direct power purchase between generators and large customers. The first option is through separate transmission lines and the second option is through the national grid.

Under the draft, the Ministry of Industry and Trade opted for the second option.

The ministry pointed out that choosing this option will encourage investments in renewable energy projects, create jobs, reduce intermediary operation costs and increase efficiency in electricity usage.

In terms of society and environment, it will allow customers to proactively choose power supply sources and have more control over the power sources and associated services.

It also encourages the use of electricity from renewable energy sources to contribute to the goal of reducing carbon emissions and protecting the environment.

Specifically, the second option will not cause any change in the existing legal system and there will be no administrative procedures to arise from the implementation of DPPA.

Direct power purchase through the national grid will also help prevent the complicatedness in management and will not require huge investment in the infrastructure system.

The mechanism will encourage investment in renewable energy, generate jobs, contribute to promoting economic growth as well as reduce risks thanks to the diversification of supply sources.

The DPPA is a long-waited mechanism with a number of investors and international organisations expecting its issuance as an impetus to the development of renewable energy and attraction of foreign investment into Việt Nam.

Trần Việt Hoà, Director of the Electricity Regulatory Authority, previously said that under the draft, the power purchase can be conducted through separate transmission network but must comply with the existing regulations on planning, investment, electricity operation safety and fire prevention as well as other relevant regulations.

Regarding the option of conducting via the national grid, the participant renewable energy generators must have the capacity from 10MW, and large customers must use electricity for product from a voltage level of 22kV and an average consumption of 500,000 kWh per month.

Ministry asks to increase electricity supply by 4.4 billion kWh this year

The electricity supply will rise by 4.4 billion kWh to 310.6 billion kWh, by increasing both domestic production and imports in an effort to ensure sufficient power for the economy, according to a new electricity supply plan for 2024 which the Ministry of Industry and Trade announced recently.

The ministry said that the Vietnamese economy was recovering rapidly in the first quarter of this year, resulting in higher demand for electricity. Statistics showed that Vietnam Electricity (EVN) commercial electricity output reached 62.66 billion kWh in the quarter, up by 11.42 per cent against the same period last year.

Thus, the electricity supply plan must be adjusted to meet the rising demand.

Under the new plan, the ministry asked electricity supply to be increased by 4.4 billion kWH compared to the previous plan, to 310.6 billion kWh.

For the dry season from April to July, Việt Nam needs to prepare a total of 111.468 billion kWh, an increase by 2.3 billion kWh compared to the previous plan.

Provinces and cities with higher electricity demand for industrial production include Quảng Ninh (up 44.65 per cent), Tây Ninh (up 27.09 per cent) and Bình Định (up 24.28 per cent).

Some have higher electricity demand for services like Khánh Hoà (up 38.87 per cent), Quảng Nam (up 33.11 per cent), Đà Nẵng (up 28.5 per cent) and Kiên Giang (up 23.89 per cent).

Electricity for daily activities is also predicted to increase by 13.71 per cent on persistent heat.

The EVN has developed two scenarios of electricity supply for the dry season, including increasing electricity imports from China and Laos.

The EVN said that it has prepared for the electricity supply plan of 310.6 billion kWh this year, an increase of 10.4 per cent over last year. There is also a plan for a sudden increase in electricity demand in which the supply will increase by 11.4 per cent over last year to reach 313.4 billion kWh.

Besides increasing transmission from the central region to the North and storing water in hydropower reservoirs, the EVN also plans to use diesel – fired generators to increase electricity supply in emergency situations.

The EVN is also discussing to increase electricity imports from China by 700 million kWH to 1.8 billion kWH in 2024.

EVN also proposed the Ministry of Industry and Trade work with Yunnan Province’s authorities on increasing the electricity volume sold to EVN via 220kV transmission line to 2.5 billion kWh in 2024-25 and to 9 billion kWh after 2025.

In addition, the EVN is working with Lao partners to increase electricity imports to Việt Nam through Nghệ An and Quảng Trị.

Focus will be on completing the three circuit 500kV transmission line from Quảng Trạch to Phố Nối and power grids projects to increase electricity imports from Laos. 

RoK’s Lotte Card injects 68 million USD into Vietnamese unit

Lotte Card Co., Ltd, No.5 credit card issuer in the Republic of Korea, said on May 2 that it has funneled 93.7 billion KRW (68 million USD) into its Vietnamese unit - Lotte Finance Vietnam - to expand its business in the Southeast Asian country.

This is the largest capital increase since the card issuer began its business there in 2018, which indicates that the firm will accelerate expansion in the nation as business there has stabilised to a sustainable level.

A Lotte Card official said that the firm aims to become a financial company with a strong foothold in Vietnam based on a stable business structure.

Lotte Card acquired Techcom Finance Co.,Ltd, a Vietnamese consumer finance service provider six years ago to make inroads into the market.

The Korean firm developed its own credit ratings model, and established a risk-based pricing system to offer customers in Vietnam interest rates tailored to their credit ratings.

Besides, it expanded a buy now, pay later (BNPL) service, a type of short-term financing that allows customers to make purchases and pay for them at a future date, often without interest./.

Banks adjust timelines for raising capital

Several Vietnamese banks are strategically positioning themselves to raise capital and court potential investors to expand their market reach.

Techcombank chairman Ho Hung Anh outlined the bank’s strategy for expansion last week, maintaining a foreign ownership limit (FOL) cap at 22 per cent to accommodate additional share issuance to new strategic partners.

“We are actively searching for a strategic partner, and anticipate a premium share issuance price that would benefit all Techcombank shareholders, leveraging this as a strategic advantage,” said Hung Anh.

He cited the precedent of VPBank’s successful capital boost with its strategic shareholder SMBC as a template for Techcombank’s approach.

Meanwhile, Tran Hung Huy, chairman of ACB, stressed a focus on internal growth over mergers and acquisitions in line with shareholder interests, leading to the decision to forgo merger and acquisition (M&A) activities this year.

“Despite potential partnership interests in its subsidiary ACB Securities, we are opting to internally raise capital for development first,” said Huy. “ACB will be open to capital raising opportunities if suitable cooperative prospects arise in the future.”

ABBank, at this year’s AGM, did not table any M&A propositions or private offerings to foreign investors. Yet, chairman Dao Manh Khang acknowledged the need for substantial strategic moves such as dealmaking or attracting new shareholders to achieve a future valuation of $3 billion.

Elsewhere, state-owned lender Vietcombank has progressed with its plan for a private issuance to foreign investors, a process initiated in 2019 yet still pending completion. This includes an intended sale of 307.6 million shares, of which 46.1 million are earmarked for Japan’s Mizuho Bank, with the remainder offered to other investors. Vietcombank is currently in the process of engaging advisory services to facilitate this issuance.

BIDV also adjusted its timeline, rescheduling its capital increase to 2024. The lender had previously planned to issue an additional 455 million shares either through a public offering or private placement. Although details of the offering remain undisclosed, the bank has long-standing intentions for a private issuance to foreign investors that have yet to come to fruition.

At HDBank, information sourced from Bloomberg indicated an exploration of a $500 million capital-raising initiative via a share sale.

Hoang Thanh Tung, director of HDBank’s Investor Relations, stated, “We are preparing for strategic partnerships, reserving around 10 per cent of the FOL for a potential capital increase. Our capital sale to strategic investors can proceed when market conditions and the right partner align.”

Nam A Bank’s CEO, Tran Ngoc Tam, noted discussions with foreign strategic partners to identify suitable investors, aiming to use the full 20 per cent FOL to draw additional international capital. “Listing shares is a pivotal step in attracting global investors and consolidating Nam A Bank’s position as a premier retail joint-stock bank in Vietnam,” Tam noted.

Conversely, SHB chairman Do Quang Hien assured shareholders of plans to finalise foreign investor share sales in 2024, following through on the previous AGM’s approval for a capital increase through share issuance to foreign and strategic investors.

He highlighted the importance of M&As in the banking sector, noting the bank’s pioneering role in aligning with government directives through its merger with Habubank, which suffered from longstanding troubles.

“The merger was a challenging process, particularly in terms of debt resolution, but SHB has now successfully completed the integration and transformation. SHB has contributed to major national projects and is now one of Vietnam’s largest banks in terms of scale,” Hien said at last week’s AGM.

Discussing the plans for transferring stakes to foreign investors, Hien emphasised the delicate balance in negotiations, striving to meet the requirements of both parties while prioritising shareholder and bank interests. “Quick stake transfers can be made at lower prices, but they can dilute shareholder value. Our strategy for transfers is focused on long-term sustainability, targeting at least the medium term,” he explained.

First Van Don-Jeju charter flight scheduled for August

The first charter flight linking Van Don International Airport in the northern province of Quang Ninh and Jeju Island in South Korea will take place in August.

Quang Ninh Tourism Association Chairman Nguyen The Hue said Quang Ninh and Jeju have signed an agreement on tourism development.

The two agreed to operate one charter flight a month between August and January next year. If there was interest, the two localities could increase flight frequency on the route.

Hue added that South Korean tourist demand to visit Vietnam, especially Ha Long Bay, was significant. Jeju Island Tourism Association is committed to ensuring the flow of tourists to Van Don by air. However, the Vietnamese also needed to secure interest in visiting South Korea.

Quang Ninh is considering various measures to support tourists getting to Van Don Airport, including waiving fees for attractions, such as entrance tickets to Ha Long Bay.

In late April, the Jeju Island Tourism Association and ten major South Korean travel companies visited Van Don International Airport and some tourist sites in Quang Ninh.

South Korea is among Quang Ninh's key tourism markets. Some South Korean businesses are building a tourist shopping area in Ha Long City's Bai Chay Ward.

450 exhibitors to promote products at Ho Chi Minh City export fair

The Ho Chi Minh City export forum and trade fair (HCM City Export 2024) will be held from May 8 to 11 at the Saigon Exhibition and Convention Centre in District 7.

The fair is anticipated to help local exporters connect with both domestic and foreign partners and importers, according to the organisers HCM City’s Department of Industry and Trade at a press conference on May 3.

A total of 450 booths of Vietnamese and foreign businesses will exhibit key export items, including food and beverages, farm produce, handicrafts, textiles and garments, footwear, rubber and plastics, and electronics.

Furthermore, local manufacturers will have the opportunity to learn about global market trends to improve their product quality to international standards, the organisers said.

The fair is expected to attract roughly 20,000 visitors, with around 80% of them being importers, traders, supermarkets, and retail chains in major markets such as the United States, Europe, Southeast Asia, China, Japan, and the Republic of Korea, along with representatives of e-commerce platforms.

The event will feature activities like an export forum focusing on green growth and a conference on global market trends and solutions to help exporters tackle problems.

Moreover, businesses will have the chance to take part in B2B matchmaking sessions to meet with potential partners and investors from around the world.

Leather and footwear exports grow steadily despite mounting pressure

Vietnamese leather and footwear exports during the opening four months of the year rose by 5.7% year on year to US$6.542 billion, according to statistics from the Vietnam Leather, Footwear and Handbag Association (LEFASO).

Most notably, the nation’s footwear products and bags accounted for a large market share in its major export markets, such as the United States (41.7% and 45.4%, respectively), the European Union (28.6% and 27.1%), China (11% and 3%), and Japan (6.3% and 11.3%).

Phan Thi Thanh Xuan, general secretary of the LEFASO, revealed that among major importers of Vietnamese leather and footwear products, China represents a potential market with a high growth rate.

This is also an important market that can help the leather and footwear industry to fulfil its annual export target, Xuan stressed.

Moreover, the industry has taken full advantage of incentives from new-generation free trade agreements (FTAs), such as the EU-Vietnam Free Trade Agreements (EVFTA) and the Comprehensive and Progress Agreement for Trans-Pacific Partnership (CPTPP) to boost exports, she added.

However, the industry is predicted to face numerous challenges ahead due to new stringent regulations set by foreign importers, Xuan said.

For example, the EU has set forth a series of regulations on ecological products, extended producer responsibility, supply chain traceability, and carbon emission reduction for imported products.

"If we want to successfully engage in the global supply chain, there is no other way we must abide by these requirements,” Xuan emphasised.

Gerwin Leppink, an expert at the Wrap Organization, also said to further penetrate the US and EU markets, Vietnamese businesses are required to comply with all of the Customs and Border Protection’s regulations.

According to Xuan, to meet these stringent requirements, firms must work to renovate technology and enhance management skills.

She also underlined the need to promptly grasp information and devise specific plans on green transition and digital transformation in a bid to reduce costs.

Currently, the EU’s Carbon Border Adjustment Mechanism (CBAM) looks set to represent a challenge for Vietnamese leather and footwear products in the coming time as the sector is widely considered to cause a lot of carbon emissions during the production process.

There is a high possibility that CBAM will be applied to the leather and footwear industry by 2030, meaning that Vietnamese leather and footwear businesses are required to draw up concrete plans in terms of technology and management to meet these strict regulations, Xuan noted.

PM tells MPS, SBV to tackle cross-ownership at banks

Prime Minister Pham Minh Chinh has directed the Ministry of Public Security (MPS) to work with the State Bank of Vietnam (SBV) to address cross-ownership and manipulation within the banking sector.

Directive No. 14, signed on May 2 by the PM, outlines monetary policy management tasks in 2024, aimed at mitigating irregularities and group interests in the banking sector.

Cross-ownership occurs when one bank holds shares at another, often leading to shareholder groups acquiring majority control, enabling manipulation of bank operations beyond regulated limits.

The PM stressed the importance of preserving the stability and financial security of the banking system.

The directive also emphasizes the need to remove obstacles to production and business, spur growth, and maintain macroeconomic stability.

The SBV is tasked with monitoring global and domestic economic conditions to effectively manage monetary policy, with a focus on managing credit growth to ensure macroeconomic stability and banking safety.

Enhanced oversight of credit disbursement by financial institutions, particularly in the gold market and trading enterprises, is highlighted.

The PM has tasked banks with actively implementing credit growth solutions, directing credit towards production, business, priority sectors, and growth drivers while rigorously controlling credit in risk-prone areas to ensure safety, effectiveness, and liquidity risk control.

Efforts to reduce costs and lower interest rates to reasonable levels are emphasized to benefit businesses and citizens.

Moreover, the Ministry of Finance has been instructed to promptly review and refine regulations related to securities and corporate bonds, and develop the stock market into an effective long-term capital mobilization channel for businesses.

The Ministry of Construction will closely coordinate with relevant ministries, sectors, and localities to implement measures under the Social Housing Development Project, aiming to construct one million social homes.

The Ministry of Natural Resources and Environment should focus on improving the land information system and connecting it with the real estate information system and market in collaboration with the Ministry of Construction.

SBV wants bank deposit incentives banned

The State Bank of Vietnam (SBV), the central bank, has proposed prohibiting banks from offering depositors of Vietnamese dong those incentives contradicting regulations.

The proposed ban is aimed at improving transparency and regulation in the banking sector by specifying interest rates for deposits in Vietnamese dong made by both organizations and individuals at banks and foreign bank branches.

According to the proposal, banks would be mandated to publicly disclose deposit rates at authorized transaction points and on their electronic information platforms. Moreover, they would be strictly forbidden from providing deposit incentives that violate banking rules.

THe draft regulation also requires banks to adhere to maximum interest rates for deposits in Vietnamese dong, as determined by the SBV and varying by period and credit institution type.

These proposed measures are applicable to banks and foreign bank branches operating in Vietnam under the law on credit institutions, except for policy banks. Furthermore, the regulations extend to organizations and individuals depositing funds at banks.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes