Putting exchange rate volatility and inflation under control results in money supply growth slowing, thus piling pressure on interest rates. However, economic recovery and credit growth are key factors for deposit interest rates to rise to new levels. Deposit interest rates are expected to hit new highs in Q3 2024 before they stabilize. Deposit rates to rise to new highs According to the State Bank of Vietnam (SBV), as of the end of June 2024, credit in the economy reached nearly VND14.4 quadrillion, up by 6% against the end of last year. Specifically, credit had expanded by 4.45% in the year to June 24, 2024, before it rose by more than 1% in the last week of June. This was a sharp increase in loans compared to a mere 0.26% in Q1 2024. Credit grew faster in the second half of Q2 2024, especially after the Government set a credit growth target of 5-6% in the first half of this year. Capital mobilization by credit institutions fell by 0.57% in Q1 2024 but edged up by 1.5% by June 24. This is the lowest capital mobilization growth in recent years. Thus, the gap between credit growth and capital mobilization growth […]
Putting exchange rate volatility and inflation under control results in money supply growth slowing, thus piling pressure on interest rates. However, economic recovery and credit growth are key factors for deposit interest rates to rise to new levels. Deposit interest rates are expected to hit new highs in Q3 2024 before they stabilize. Deposit rates to rise to new highs According to the State Bank of Vietnam (SBV), as of the end of June 2024, credit in the economy reached nearly VND14.4 quadrillion, up by 6% against the end of last year. Specifically, credit had expanded by 4.45% in the year to June 24, 2024, before it rose by more than 1% in the last week of June. This was a sharp increase in loans compared to a mere 0.26% in Q1 2024. Credit grew faster in the second half of Q2 2024, especially after the Government set a credit growth target of 5-6% in the first half of this year. Capital mobilization by credit institutions fell by 0.57% in Q1 2024 but edged up by 1.5% by June 24. This is the lowest capital mobilization growth in recent years. Thus, the gap between credit growth and capital mobilization growth […]
Putting exchange rate volatility and inflation under control results in money supply growth slowing, thus piling pressure on interest rates. However, economic recovery and credit growth are key factors for deposit interest rates to rise to new levels. Deposit interest rates are expected to hit new highs in Q3 2024 before they stabilize. Deposit rates to rise to new highs According to the State Bank of Vietnam (SBV), as of the end of June 2024, credit in the economy reached nearly VND14.4 quadrillion, up by 6% against the end of last year. Specifically, credit had expanded by 4.45% in the year to June 24, 2024, before it rose by more than 1% in the last week of June. This was a sharp increase in loans compared to a mere 0.26% in Q1 2024. Credit grew faster in the second half of Q2 2024, especially after the Government set a credit growth target of 5-6% in the first half of this year. Capital mobilization by credit institutions fell by 0.57% in Q1 2024 but edged up by 1.5% by June 24. This is the lowest capital mobilization growth in recent years. Thus, the gap between credit growth and capital mobilization growth […]
In an interview with The Saigon Times, Dr. Nguyen Quoc Viet, deputy director of the Vietnam Institute for Economic and Policy Research (VEPR), discusses...
Given geopolitical turmoil and weakened domestic consumer demand, Vietnam’s export sector’s recovery is at risk of stalling. This challenging economic landscape makes it hard...
As monetary policy tools are nearly exhausted, fiscal policy needs expanding to spur growth as more challenges are on the horizon. Boosting public investment...
HCMC – The Government should exercise caution against expansionary monetary and fiscal policies to ensure tapping Vietnam’s economic potential without fueling inflation in the...
Government agencies are discussing how to launch a sufficiently large stimulus package to help the economy recover and develop after Covid-19. In the current...