The growth rate is far away from the credit growth target of 14% set by the government for this year.
The State Bank of Vietnam (SBV) sought to further cut interest rate in an effort to boost the country's economic recovery, said its deputy-governor Nguyen Thi Hong in an SBV's press conference held by yesterday in Ha Noi.
The hotel industry is facing arguably its greatest challenge as the impacts of COVID-19 keep away foreign visitors from the country.
PVN accounts for about a third of the country's refined product output and supplies gas for power plants that make up about 15% of Vietnam's power generation.
For nearly three decades, Vietnam has made use of official development assistance from foreign partners, thereby accelerating socioeconomic development in areas like infrastructure, science and technology, and human resources. However, strict regulations, high interest rates, and other constraints are some of the reason why ministries are beginning to look for domestic alternatives.
Credit institutions are being encouraged to implement consumer credit packages and preferential rates as an effective way to stimulate spending sprees and help the domestic economy tide over the storm.
Though the deposit interest rates of commercial banks have been reducing, people are still putting their money into banks amid the pandemic.
Fitch Rating is still maintaining its growth forecast for Vietnam at 2.8% in 2020 and 7.5% in 2021, despite the Covid-19 resurgence in late July.
Despite lingering risks, fears of an economic downturn, and low interest rates, there has been a windfall of corporate bonds issuance, with property providers and financial institutions the most active.
In addition to a weakening US dollar, the ample supply of dollars thanks to Vietnam’s record trade surplus is a major factor that could keep a stable USD/VND exchange rate.