The State Bank of Vietnam (SBV) has revised up the credit growth target for the domestic banking system by 1.5-2 percentage points from its previous target of 14 percent, allowing it to pump an additional VND200 trillion (US$8.4 billion) into the local economy. According to a report by SSI Securities Corporation, the SBV’s expansion of the credit growth cap to 15.5-16 percent raises the country’s total credit for this month to VND400 billion ($16.7 million). According to experts, the revision will help businesses, and the economy as a whole, amidst a soaring thirst for capital. The central bank has yet to announce exactly which banks will be eligible to increase their credit limits. As of the end of October, Vietnam’s credit growth sat at 11.5 percent, allowing for just 2.5 percent credit growth for the final two months of the year – a modest amount given the massive demand. In response to the announcement, the director of a company in Binh Tan District, Ho Chi Minh City … [Read more...] about Vietnam’s central bank raises credit growth cap, pumps $8.4bn into economy
Beard growth by month
Deputy governor Dao Minh Tu said an increase of 1.5-2 percentage points of the earlier quota of 14% means another VND240 trillion (US$10.17 billion) would enter the economy. As of Thursday credit growth for the year was 12.2%, which means 1.8% remains unused, and this would be added to the increased quota, he said. "This offers banks relatively large room to provide funds to businesses and the economy." Banks that have liquidity and plans to reduce credit interest rates would get priority, he said. The central bank sees it needs to impose credit growth restrictions on lenders with high interest rates, he said, adding that banks that have not reached the cap do not need a quota increase for now. After the central bank raised the credit cap on December 5, BIDV has been allowed to lend an additional VND27 trillion, and Vietcombank, VND5 trillion. Tu said the central bank did not increase the cap earlier since macro indices and liquidity at several banks were not ideal. The … [Read more...] about SBV says banks with low interest rates to get higher credit growth caps
Vehicles on a road in Manila, the Philippines (Photo: AFP/VNA) Hanoi (VNA) – Driven by pent-up demand from consumers, the Philippine economy is forecast to grow 7.2% in 2022 before tapering off to an average of 5.7% in 2023, according to a report released by the World Bank on December 6. The Philippines Economic Update said this year’s forecast rides on the momentum of a 7.7% growth rate in the first three quarters of 2022, buoyed by the removal of remaining restrictions on people’s mobility and business operations and the recovery of incomes and jobs. The latest project is higher than the 6.5% forecast issued by the WB in September. The report said the economy stays resilient despite an external environment full of challenges, noting that it is also facing an internal challenge which is high inflation, standing at an average of 5.4% over the last 10 months and hitting 7.7% in October. The WB update revised the GDP growth forecast for 2023 down to 5.7% from the … [Read more...] about WB upgrades Philippines’ 2022 growth forecast to 7.2%
Pham Ba Oai, Director of the Thanh Hoa Province Department of Industry and Trade, said that in the first nine months of 2022, the province’s industry prospered, with its index of industrial production (IIP) growing 16.2 percent over the same period last year, and most manufacturing industries increasing contributions to the province’s gross regional domestic product (GRDP). Notably, province-based manufacturers have created intensively processed products using high technology and adding high value, while many large-scale projects have been put into stable production. Testing an industry promotion project Oai said industry promotion projects helped rural industrial establishments apply advanced technology and equipment, improve productivity and product quality, reduce employment and product costs, use raw materials efficiently, and minimize environmental pollution. Thanh Hoa is currently focusing on trade promotion, market research, and construction of advanced … [Read more...] about Thanh Hoa Province boosts industrial growth
To celebrate its 10 th anniversary, multi-category platform for secondhand in Greater Southeast Asia Carousell Group released the Carousell Recommerce Index (10 th Anniversary Edition), revealing the sustainability impact its collective community has made buying and selling secondhand items. Launched in Vietnam in 2013, Cho Tot is the leading Re-commerce platform in Vietnam with more than 10 million monthly users buying and selling in 60 categories Re-commerce refers to the selling and buying of previously-owned products, including both new and used in condition. The report covers data from nine of Carousell Group's brands across Southeast Asia, Hong Kong and Taiwan markets — Carousell, Cho Tot, Laku6, Mudah.my, OneKyat, One Shift, Ox Luxe, Ox Street, and Refash. Since its inception in 2012 as a mobile-first app to make selling and buying underutilised items easier, Carousell has grown from a C2C classifieds marketplace into a multi-category platform for secondhand … [Read more...] about Carousell Group and Cho Tot reveals impact of secondhand market
Infographic by HSBC Since the advent of US-China trade tensions, Viet Nam has been one of the biggest beneficiaries in terms of both trade and FDI diversion, boosting its export share in the US market in particular. As a result, Viet Nam has become increasingly vulnerable to a US economic slowdown. In its recent 'Vietnam at a glance' report, HSBC said Viet Nam has been hit hard by a global trade slowdown, seeing the first meaningful year-on-year decline in its exports in two years. In particular, the decline has been led by an economic slowdown in the US, Viet Nam’s largest export destination. After over two years of booming trade, the “pay-back” time has come. Global orders have been falling sharply, taking a toll on Asian exporters. Viet Nam is no exception, and it has been on the front line in terms of feeling the pain. In November, the country saw the first meaningful year-on-year decline in its exports in two years, with broad-based weakness. In particular, shipments of … [Read more...] about HSBC: Is an export winter approaching?