Finance

Finance
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State Backs Local Banks, Curbs Inflation, And Ensures Supply For Tet

Posted byNguyen Ayi

State Backs Local Banks, Curbs Inflation, And Ensures Supply For Tet

By Joe Fotalattee

To maintain the ability of credit institutions to make payments, particularly at the end of the year when demand for funds frequently peaks, the State Bank of Vietnam is willing to offer liquidity, according to its deputy governor, Dao Minh Tu.

According to Vietnam News, Tu stated at a meeting last week that “the central bank will ensure liquidity for all commercial banks, including small ones, under all circumstances.”.

According to him, the current monetary policy ensures capital availability, liquidity, and inflation control for this year and the following year. Credit institutions must adhere to operational safety indicators adhere to the SBV’s requirements, per Tu’s orders.

After recent interest rate hikes caused a credit crunch in the real estate and financial markets, the central bank increased the credit growth cap for banks by two percentage points from its earlier target of 14 percent. The policy change allows banks to lend VN240 trillion more (US$9.7 billion) to businesses.

To support businesses, sixteen commercial banks have agreed to cut interest rates by 0–3 percentage points annually, or about VN3–5 trillion. Agribank, Vietcombank, VietinBank, and BIDV were among them, as were a few smaller institutions like SHB, HDBank, and SeABank.

Authorities have created intricate plans to guarantee goods for cities with dense populations and high consumer demand, like Hanoi, Danang, and Ho Chi Minh City.

The Hanoi Department of Industry and Trade’s acting director, Trần Thị Phương Lan, told Vietnam News that the forecast calls for an increase in shopping demand ranging from 15% to 30%, depending on the item, from the end of 2022 through the Lunar New Year in 2023.

With the help of 32 production, trading, and supply companies, Hanoi has a program to increase … Read more

FinanceNewsTech
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Big Tech Pays Its Vietnam Tax Bills

Posted byNguyen Ayi

Apple, Google, Microsoft, Tik Tok, Meta (Facebook), and Netflix—account for 90% of revenue on Viet Nam’s e-business on cross-border digital platforms, handing over hundreds of millions of USD in taxes to the government. In particular, Facebook and Google each paid VND 1,748 billion and VND 979 billion.

Forty-two foreign service portals have registered, reported, and paid taxes using Vietnam’s portal over the past eight months.

They were from various nations and areas, including the U. S. Singapore, Hong Kong (China), the Netherlands, the Republic of Korea, Australia, Ireland, Lithuania, and Switzerland.

Foreign service providers contributed US$ 82 billion of the $3,444 billion in taxes collected through the portal. Vietnamese companies paid the remaining VND 1,544 billion.

In 2021, Viet Nam’s e-commerce market increased by 53% to US$ 21 billion, placing the country’s Internet economy third in Southeast Asia in terms of value.

FinanceNews
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Overseas Remittances Crucial To Vietnam Economy

Posted byNguyen Ayi

Overseas Remittances Crucial To Vietnam Economy

by Joe Fotalatte

According to data from the State Bank of Vietnam branch in the southern city, the number of overseas transfers coming into Ho Chi Minh City during the first nine months of the year is estimated at US$4.78 billion.

In nine months, HCMC received remittances worth $4.78 billion from abroad.
The bank noted that this is a remarkable figure despite the COVID-19 pandemic, high inflation, and the global economic downturn.

The number of remittances increased steadily through each quarter, and despite a slight decline year over year, they significantly boosted domestic investment, production, and consumption.

When the economy is recovering quickly, this source of funding is crucial for fostering socioeconomic growth locally, stabilizing the foreign exchange market, and luring foreign direct investment into the city.

Remittances to the city totaled US$6.6 billion last year, which was more than half the country’s total of US$12.5 billion.

Finance
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The Crypto Collapse Is In Its Early Days

Posted byNguyen Ayi

The Crypto Collapse Is In Its Early Days

By academic Joe Fotalattee

Media outlets have a duty to their audience to be open and honest about the realities of the crypto Ponzi scheme.

Since reaching an all-time high last year, the most well-known and established cryptocurrency, Bitcoin, has declined by more than 70%.

Due to the demise of the FTX cryptocurrency exchange, cryptocurrencies suffered a significant loss. When FTX was at its peak, its founder was one of the ten youngest billionaires in the world. It has now dramatically destroyed investor wealth as it imploded into bankruptcy.

Crypto lacks any organizing structure or tangible products. Cryptocurrency demand had reached a fever pitch, perhaps evoking memories of the tulip bulb craze. That bubble is now bursting.

In the middle of the sixteenth century, Dutch tulip bulbs sold for six times the average person’s yearly salary. It seems unbelievable now that anyone would have paid that much for a single tulip bulb. But at the time, market speculators controlled the price, and tulips’ worth was determined more by sentiment and rumors than by the flowers themselves.

Better Investments:

  • In Vietnam, savings accounts can produce 7%. It is insane to gamble with your hard-earned money when interest rates in savings accounts are as high as good investment returns.
  • E-Wallets based on currency: The Golden Pocket of Momo offers 6% up to 100 million VND, and is linked to a real bank account.
  •  Index funds on foreign stock markets
  • Gold/Silver: precious metals do well in currency crisis
  • Savings accounts with foreign banks like Shinhan, Citi Bank, and HSBC provide more security if the local banking system encounters difficulties. There will be some closures of small Vietnamese banks if there is a financial crisis.
  • Cashews or Tulips: at least they are edible. Cryptocurrency has no
… Read more
CrimeFinanceNews
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Counterfeiting, Drug Trafficking, Terrorism…STOP!

Posted byNguyen Ayi

Anti-Money Laundering Measures Proposed.

by Joe Fotalatte

Money Laundering Measures Proposed.

If you make transactions with a value of more than VND 300 million per day without legitimate reasons, you may get the attention of Vietnam government regulators. 

Tuoi Tre reports the government’s draft decree outlines several articles in preparation for a law on anti-money laundering. Regulators would monitor suspicious transactions, inactive accounts, and e-wallets.

The draft targets businesses and people who deal in gambling, those who play games on the internet, telecommunications networks, and in casinos and lotteries. The industry would be required to identify customers of transactions over 60 million VND per day.

Cash transactions are also proposed to be regulated, including transactions of gold, silver, and gems with a value of VND 300 million or more per day. Businesses and individuals engaged in the precious metals and gems trading industry would be required to identify their customers.

Lawmakers hope to halt transactions through reporting if there is any suspicion it is connected to illegal activities, terrorism, or the financing of terrorism.