Mon, 27 Jun 2022

HANOI, May 25 (Xinhua) -- Vietnam is expected to make a stronger economic recovery in 2022 with GDP growth at 5.5 to 6 percent, but inflation may stand at 3.8 to 4.2 percent, said a report released on Wednesday.

The country will enjoy higher GDP growth and keep inflation under 4 percent in 2023, according to a report on Vietnam's financial market in 2021 and its 2022 outlook issued by the Bank for Investment and Development of Vietnam and the Asian Development Bank.

The financial market maintained a positive growth momentum partly thanks to a stable macroeconomy, Vietnam News Agency cited the report as saying.

In the banking sector, the pre-tax profit of 29 commercial banks that accounted for 80 percent of the market surged nearly 32 percent in 2021, while their operating costs were reduced by 15 percent.

The stock market saw the benchmark VNIndex go up 35.7 percent, and the market capitalization increased by 48.4 percent. The number of trading accounts reached a record 1.5 million.

The insurance market recorded revenues of 217 trillion Vietnamese dong (9.4 billion U.S. dollars) in 2021, up nearly 19 percent from the previous year.

The report pointed to emerging risks in the banking market such as rising potential bad debts, an increase in financial crimes, the downward adjustments in the stock market, and market manipulation.

This year the banking industry's profit is expected to grow by 20 to 25 percent year on year and the insurance market will sustain its growth. The stock market is forecast to be more stable and healthier with necessary adjustments, the news agency reported.

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