Covid-19 could act as a catalyst for Vietnam to speed up the digital transformation it has already embarked upon.
Public health challenges have thrown Vietnam’s banking system into gyrations, pushing lenders to become more risk averse and brace for a wave of defaults, amidst efforts to cut interest rates from the central bank to offset the economy.
With the EU being among the largest importers of Vietnam’s timber products, a fresh decree on legal assurance has marked an important step towards the full implementation of the Forest Law Enforcement, Governance and Trade Voluntary Partnership Agreement between Vietnam and the EU.
After years of sluggish growth, Vietnam’s corporate bond market has blossomed. Issuances grew at a compound annual growth rate of 40 per cent between 2012 and 2019, and outstanding issuances amounted to around 11.5 per cent of Vietnam’s GDP – the fourth-highest in ASEAN, and further gains are likely.
Commercial banks are trying to boost individual consumer loans, especially to home and car buyers, since credit growth had slowed due to low capital demand from businesses.
A survey found that 81% of manufacturing and processing enterprises expected stability and even improvements in performance in the final quarter of the year.
The domestic-invested sector's exports are expected to expand 20.2% year-on-year to US$71.83 billion between January and September.
Core inflation comes at 2.59% year-on-year in the first nine months of 2020.
Amid the health crisis, Vietnam is boosting economic and policy reforms for sustainable development. Nguyen Dinh Cung, member of the Advisory Group of the government, talked about the importance of such reforms and what they require for success.