Expanding monetary policy in wake of Covid-19

The negative impact on the national economy, as well as all countries neighboring Vietnam, from the sudden spread of the Covid-19 epidemic, has led to suggestions of expanding monetary policies to make it easier for businesses to maintain growth.

No stimulus package against fear

Stimulus packages are launched by governments to increase demand and encourage people to consume and spend more.

Bancassurance will support growth in all banks

As credit growth becomes more tightly controlled, it leaves little room to improve the Net Interest Margin (NIM), as many banks are also increasing service fees for cross-selling activities. Among these, the insurance channel through banks or Bancassurance, is now becoming an important growth driver, especially in the Life-Insurance segment.

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Long-term vision required for all FDI projects

The year 2019 attracted many new foreign direct investment (FDI) projects, increasing the flow of capital. However, in the long run, medium and long term projects must all focus on better innovation, science, technology and higher quality of human resource.

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Lack of mechanism distorting P2P

Peer-to-peer lending (P2P) in Vietnam is getting more and more members, but this market is getting distorted by less active components.

Mr. Pham Xuan Hoe, Deputy Director of SBV Strategy Institute, spoke at a seminar on P2P legality.

Urgent need to regulate P2P model

Peer-to-Peer lending (P2P) is a loan providing model that contains significant risks because there is no protective legal framework governing its operations. 

The CenDeluex 5-star hotel project was expected to bring GTT up, but caused GTT to go down instead.

GTT - Victim of unrealistic ambitions

In its quest to become a large conglomerate, Thuan Thao Corporation (GTT) participated on HOSE trading floor with high hopes of raising vast amounts of capital, but contrary to its aspirations, GTT failed in its efforts due to its loss making projects which also led to GTT share value to fall to lowest level in the stock market.

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Worry about foreign capital domination in fintech companies

In recent years, intermediary payment companies have succeeded in attracting vast flows of capital from foreign investors. However, now the flow of capital in this field may slow down, as the State Bank of Vietnam intends to limit the maximum contribution by foreign investors in such organizations to a set 49% of the charter capital.

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Market shows many optimistic signs

Although the stock market in 2019 has fallen since 2018, in general it still maintains a long-term growth momentum. For the stock market to develop even further in depth, the new amended Securities Law passed by the National Assembly in November will be a strong premise.

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Less flow of foreign capital in 2020

Currently there is not a very high possibility of foreign investors pouring money into emerging markets and frontier markets. However, one thing is certain, foreign investors will be selective and choosy when investing, and some markets may be more preferable than others.

Expected channels for cash flow in 2020

Expected channels for cash flow in 2020

The year 2020 is forecast to be a difficult year, when most investors will have to face many serious challenges, despite some expected good opportunities coming in the course of the year.

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High GDP results could cause authorities to become smug

A recent review of the country’s GDP based on international standards showed excellent results over the 2010-2017 period, which will lead to positive effects, but could also cause relevant authorities to become too smug.

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Moody’s gives negative rating for Vietnam

On 18 December 2019, Moody’s, the international credit ratings organization, rated Vietnam as Ba3, which means negative, citing delayed debt repayment for such a low rating. The Ministry of Finance in Vietnam has now dubbed the ratings as “inappropriate” and “insufficient”.

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Exports from Vietnam face many challenges

According to recent data updated by the General Department of Vietnam Customs, in the first half of December, the country's export turnover reached more than USD 10 bn, bringing the total export turnover from the beginning of the year to 15 December 2019 at USD 251.66 bn.

PVX had built big projects such as Nghi Son Refinery and Petrochemical Plant.

PetroVietnam risks delisting

PetroVietnam Construction Joint Stock Corporation (PVX) is a familiar name to investors, because it used to be the best liquidity stock on the HNX. However, at present PVX has become a tragic obsession for many investors, with the stock price at only VND 1,000 and a high risk of delisting due to prolonged losses.