Vietnam Central Bank Says Inflation Above Target but Under Control as Banks Plan $7 Billion in Share Sales
The rise in annual inflation to 5.08 percent in September, from 4.89 percent in August, has put pressure on Vietnam's monetary policy management for the rest of the year, but prices remain under control, central bank deputy governor Pham Thanh Ha said on October 7, according to Reuters. The year's inflation target is 4.5 percent.
Higher prices for imported fuels, driven by the Iran war, are a key factor for export-reliant Vietnam. Ha also said banks' total lending had risen 11.59 percent from the end of last year.
A separate Reuters analysis the same day reported that Vietnamese banks are planning nearly $7 billion in share sales, likely the country's largest-ever wave of lender capital raisings, as a fast-growing economy fuels demand for capital. Foreign ownership rules have been eased in recent months, offshore borrowing ceilings raised, and three local lenders allowed to lift foreign ownership limits to 49 percent.
The central bank guarding inflation while banks expand capital captures Vietnam's current economic condition: growth is running fast, and money and prices are chasing it. For businesses in Vietnam, credit is becoming easier to obtain, though costs and currency movements demand closer attention.
Published by GSM · USA (original Chinese edition)
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