The move is part of the government’s effort to accelerate economic restructuring and build resilience to climate change while protecting the environment.

The 2024 growth rate is considered positive amidst global uncertainties and domestic challenges such as natural disasters.

Stable macroeconomic fundamentals, ongoing institutional reforms, and favorable monetary policies will be positive for corporate earnings.

Considering Vietnam’s finance and banking market lucrative, many financial institutions have enlarged their projects in the country based on their sharpened competitiveness in strategic business areas.

In August, Vietnamese government signed a loan agreement worth US$150 million, taking the total number of loan agreements in eight months to 10 with a value of US$1.13 billion.

Vietnam recorded budget overspending of VND1.7 trillion (US$72.69 million) by the end of August, compared to a year-to-date deficit of VND6 trillion (US$257.45 billion) recorded 15 days earlier.

The purposes are to extend the maturity of government bonds and diversify investors in the government bond market, stated the Ministry of Finance (MoF).

As Vietnamese banks were given credit quota since the beginning of the year, only Tien Phong Bank (TPBank) and Ho Chi Minh Development Bank (HDBank) have filled up their credit quota.

The use of illegal foreign electronic wallets is considered a form of tax evasion, causing losses to the state budget.

The total capital shortfall of Fitch-rated banks could increase to US$6.5 billion if they were to also raise their allowance coverage to 5.0% of gross loans and Vietnam Asset Management Company (VAMC) special bonds, from 2.3% at end-2017.

This would result in a state budget deficit of VND222 trillion (US$9.53 billion), or 3.6% of GDP, VnEconomy reported.

Despite the credit growth limit, it is vital to ensure sufficient capital for business and manufacturing with stable interest rates, stated Mai Tien Dung, minister and chairman of the Government Office.

State budget revenues as of August 15 reached VND814.2 trillion (US$34.93 billion), equivalent to 61.7% of the year`s estimate.

As of the end of June, Vietnam`s bad debts accounted for 2.09% of total outstanding loans, down from the rate of 2.46% recorded on December 31, 2016 and below the 3% target set by the National Assembly.

In order to maintain the competitiveness of export products, the exchange rate still needs an adjustment at a moderate level.

Forbes Vietnam compiled the list based on the contribution of each brand to company`s business performance.

The upgrade of the local securities market from frontier to emerging markets relies on the development potential of Vietnam`s market and macro policies, according to the head of the stock market watchdog.

According to economists, some banks could struggle with liquidity in a certain period under the current credit growth limit, especially in a peak period by the end of the fourth quarter.

In 2018, Ho Chi Minh City Stock Exchange (HoSE) sets revenue target of VND789 billion (US$33.91 million) and a pre-tax profit of VND473 billion (US$20.33 million).

The rating actions follow Moody`s upgrade of Vietnam`s sovereign rating to Ba3 from B1, and change in the outlook for the sovereign`s rating to stable from positive on August 10.

Assuming Vietnam`s top three state-run banks can maintain their respective growth rate of 5 - 10% in the next eight years, their total assets would be over VND1,500 trillion (US$63.95 billion), equivalent to those currently in Asia`s top 100 banks.

Vietnam is expected to have at least 2 - 3 commercial banks in Asia`s top 100 largest banks in terms of assets and 3 - 5 banks listed in foreign stock markets by the end of 2025.

The Vietnamese banking authority may have to sell more foreign currency if the US dollar keeps appreciating.