.jpg)
Currency and interest rate fluctuations have had a detrimental impact on garment and textile exports.
Investors and homebuyers are enduring several adversities with increase in interest rate of loans due to the fact that banks become more cautious in real estate lending.
The soft drink and non-alcoholic beverage corporation Tan Hiep Phat seems to use most of its business profit for personal financial activity in which a big cash flow has been circulated through banks to attain interest rate difference for its owner and his relatives.
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has sold collaterals for debt collection, but 90 per cent of this amount is deferred for seven years at an interest rate of 7.5 per cent per annum.
The government has just required an additional 0.5 per cent decrease in interest rates of loans to support enterprises as well as stabilize credit growth.
Promoting credit growth and reducing the interest rate by 0.5 per cent are the measures to reach the economic growth target of 6.7 per cent.
Prime Minister Nguyen Xuan Phuc (PM) has urged the State Bank to continue managing the monetary and credit policy towards a reduction of lending interest rate and increase of outstanding credit balance up to 20 per cent or more.
FED has decided to raise the prime interest rate by another 0.25-1.25 percent per annum, raising the concern that the foreign direct investment (FDI) flow to Vietnam will slow down.
The social insurance fund’s remaining amount approximates VND500 trillion (US$22.03 billion), 95 percent of that has been invested by buying Government bonds with the average interest rate of 7.04 percent a year.
