Deputy Minister of Construction, Nguyen Tran Nam, speaks with DTiNews about rising prices and the domestic real estate market. Deputy Minister Nguyen Tran Nam Have price hikes in petroleum and electricity impacted the real estate market? Price increases will inevitably impact construction projects. Construction materials are greatly affected by the transport costs. Real estate prices will increase along with this trend. This is unavoidable. However, the important thing is there is still a strong realty market and people still buy and sell. Has the rise in prices of construction materials led to financial difficulties which have slowed down construction projects? Basically, construction materials remain abundant. Most construction materials are locally made, instead of being imported. Due to the material price hikes, customers will have to accept adjustments in the price of real estate. The rise in the price of construction materials is inescapable. So the real estate market … [Read more...] about Realty market exciting despite tightening monetary policy
Monetary policy rate
Young entrepreneurs have asked the State Bank of Viet Nam (SBV) to consider loosening monetary policy to inject more capital into the market and stimulate economic growth. Workers select dragonfruits for export at Hoang Hau Dragon Fruit Farm Co,Ltd in central Binh Thuan Province's Ham My Commune. The State Bank of Vietnam should consider loosening monetary policy to stimulate economic growth, young entrepreneurs said. The proposal was made at the meeting between the Vietnam Young Entrepreneurs Association (VYEA) and the SBV. The online news website baodautu.vn, quoted SBV Governor Nguyen Van Binh's immediate reply: "The current monetary policy is very open. Credit caps for most economic sectors have been lifted and banks have a lot of money. The question is whether companies are competent enough to meet borrowing conditions." Official figures showed that as of end-August, outstanding loans for agricultural and rural development increased by 6.1 percent while … [Read more...] about Young entrepreneurs urge State Bank to loosen monetary policy
The State Bank of Vietnam's head office in HanoiThe State Bank of Vietnam (SBV) late last week released Circular No 23 on adjusting the compulsory reserves that credit institutions have to pay, which takes effect in January 2016. The credit institutions put under the SBV’s special control will pay the compulsory reserves at minimum level of zero percent, commencing from the first quarter of 2016. As for the banks which are undergoing restructuring and the banks assigned by SBV to help weak banks restructure, SBV will make decisions on specific cases. The new circular was released as confirmation of the central bank’s commitment that big commercial banks will not be at a disadvantage when helping SVB restructure weak banks. According to Rong Viet Securities Research, Vietcombank, BIDV and VietinBank are likely to be covered by the new regulation, because they have joined the … [Read more...] about SBV adjusts compulsory reserves, a sign of 2016 monetary policy
SBV Deputy Governor Nguyen Thi Hong What did the banking sector do to complete the 2015 credit growth target? The SBV set out the credit growth target of 13-15 percent in 2015. Total means of payments increased by 13.55 percent by December 21, 2015 compared to the same period in 2014, while capital raise increased by 13.59 percent. Credit growth could reach an estimated 18 percent in 2015. Capital flows continued to be reasonably allocated, focusing on trading and production activities, especially in the government’s priority sectors, contributing to bringing practical effectiveness for the economy. The SBV implemented a flexible adjustment of monetary policy, contributing to improving the position of the Vietnamese dong in 2015. The SBV has also deployed solutions in order to promote monetary management, credit growth and banking activities since the beginning of 2015 and has created favorable conditions for enterprises, cooperatives and households in accessing capital, … [Read more...] about 2015 monetary policy: Improving position of Vietnamese dong
The consumer price index jumped by 2.22 per cent in June and 4.6 per cent from a year earlier, a seven-year high, the General Statistics Office (GSO) reported. — Photo thoibaonganhang.vn The rest of this year is likely to be a difficult period for the economy meaning challenges for the Government in achieving the targets set for the year. The problems include a weakening of the đồng against the dollar and rising inflation, interest rates and public debt, and the Government will be walking a tightrope in terms of monetary policy. The consumer price index jumped by 2.22 per cent in June and 4.6 per cent from a year earlier, a seven-year high, the General Statistics Office (GSO) reported. Inflation in the first six months of the year was up to 3.29 per cent. GSO experts attributed the sharp increase in inflation in recent months to the rise in prices of several major products and services. Of 11 major categories of goods and services, nine saw prices … [Read more...] about Trillion đồng question: to tighten monetary policy or not?