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☆ Vietnam mounts ‘unprecedented’ $24 billion rescue for bank engulfed in giant fraud, documents show
▼ + stars: | 2024-04-17 | by ( ) www.cnbc.com time to read: +5 min

Foreign reserves were around $100 billion at the end of the year, according to the central bank. The central bank did not reply to requests for comment about the rescue effort. The finance ministry referred a question to the central bank. The central bank placed SCB under its supervision to stem a run on the bank sparked by the October 2022 arrest of real estate tycoon Truong My Lan. That was up from 478 trillion dong at the end of October, according to the SCB document that was sent to the central bank.

Persons: Truong My, Truong, Lan Organizations: AFP, Getty, Stock Commercial Bank, Reuters, ASEAN, Research, SCB, State Bank of, Bank Locations: Ho Chi Minh City, Vietnam, Saigon, State Bank of Vietnam's, People's

☆ Vietnam to extend VAT cut until year-end to prop up slowing economy
▼ + stars: | 2023-06-24 | by ( ) www.reuters.com time to read: +1 min

HANOI, June 24 (Reuters) - Vietnamese lawmakers on Saturday approved a government plan to extend a reduction in value added tax (VAT) on goods and services until the end of this year to boost domestic consumption and production, as its export-driven economy faces headwinds from slowing global demand. The VAT cut to 8% from 10%, which has been in place since early last year, is not applicable to such services and products as banking, finance and real estate. "The move will boost consumption, and hence supporting business and production activities," Minister of Finance Ho Duc Phoc said in a report to the National Assembly last month. A VAT cut is expected to boost domestic consumption to compensate for the sharp fall in exports. It last cut the refinance rate to 4.5%, the discount rate to 3.0% and the electronic interbank rate to 5.0% on June 19.

Persons: Finance Ho Duc Phoc, Khanh Vu, Toby Chopra Organizations: Finance, National Assembly, State Bank of, Thomson Locations: HANOI, State Bank of Vietnam

☆ Vietnam central bank plans loan restructuring for struggling businesses
▼ + stars: | 2023-04-24 | by ( ) www.reuters.com time to read: +1 min

HANOI, April 24 (Reuters) - Vietnam's central bank will restructure loans for some businesses facing difficulties, including delaying loan repayments, the government said, as it seeks to shore up a slowing economy. Several companies in Vietnam, a regional manufacturing hub, have been struggling amid weakening global demand, with exports falling 11.9% in the first quarter of this year. Vietnam's economic growth slowed to 3.32% in the January-March period, against a 5.92% year-on-year expansion in the fourth quarter of 2022. Chinh at a weekend meeting with the central bank also called for commercial banks to cut lending interest rates to support businesses and households. The central bank last month cut several policy rates to support growth amid global uncertainty.

☆ Vietnam plans tighter limits on stakes in banks in blow to foreign investors
▼ + stars: | 2023-03-17 | by ( Phuong Nguyen | ) www.reuters.com time to read: +3 min

Currently, the combined stake of foreign investors in a bank cannot exceed 30%, while the cap for stakes in companies in many other sectors is set at 49%. The central bank said its proposed changes would reduce risks of market manipulation. A Bangkok-based fund manager who declined to be named as he was not authorised to talk to media, said the lower cap would impact foreign investors more as their holdings were more often closer to the current maximum. Analysts said tighter caps on banks' stake holders and borrowing could exacerbate liquidity challenges in Vietnam, at a time when the country's property developers are under pressure. The central bank also cut interest rates this week to spur growth and reduce pressure on debtors.

☆ Vietnam central bank buys dollars to shore up foreign reserves
▼ + stars: | 2022-12-27 | by ( Khanh Vu | ) www.reuters.com time to read: +2 min

The State Bank of Vietnam (SBV) also said it will manage monetary policy in a flexible way to keep inflation at 4.5% next year, aiming to "stabilise the monetary and foreign exchange markets to ensure the safety of the banking system". Lending by Vietnamese banks rose 12.87% as of Dec. 21 from the end of last year, the SBV said in a statement. Tu said the SBV was buying dollars to boost its foreign exchange reserves, but provided no details. Vietnam does not provide regular disclosure on the size of its foreign exchange reserves. The central bank early this month raised its 14% cap on credit growth for the banking system this year by 1.5 to 2.0 percentage points, following a credit crunch in the property sector and its financial markets.

☆ EXCLUSIVE Vietnam may widen dong trading band again to conserve FX reserves - source
▼ + stars: | 2022-10-26 | by ( ) www.reuters.com time to read: +4 min

HANOI, Oct 26 (Reuters) - Vietnam is preparing to loosen its tight leash on the dong currency, including possibly widening its trading band with the U.S. dollar again, in order to conserve its shrinking currency reserves, a source with direct knowledge of the matter said on Wednesday. The State Bank of Vietnam (SBV) has intervened to defend the currency, although it rarely discloses FX reserves data or the amount of dollars spent. Widening the band, which would allow the market to drive the currency lower without triggering so much FX reserves selling, was one possibility, the source said. Other measures to cushion the dong, without exhausting FX reserves, were also being discussed, he said, without providing further details. The source said the SBV was trying to conserve its dollars as the country's FX reserves had sunk to the International Monetary Fund's recommended level, which is at least three months of imports.

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