A branch of SHB Bank. Many banks are cutting their annual profit targets due to the impacts of COVID-19 (Photo: VNA)
Hanoi (VNS/VNA) - Many banks in Vietnam havereduced their profit target for 2020, and plan to support companiesseverely impacted by the COVID-19 pandemic.
Besides, the State Bank of Vietnam (SBV) issued instructionson 31 March to banks to cut costs and bonus payments and not pay dividends incash.
Nam A Bank has reviewed its 2019 performance and 2020plans, and said it now targets pre-tax profit of only 800 billion VND (34 million USD) in 2020,13.5 percent down from last year.
But it plans to keep some other targets unchanged. Thebank said it would seek to achieve the credit target it set based on theState Bank of Vietnam’s credit growth quota.
It is set to lower lending interest rates by 2 percentagepoints, with businesses in agriculture, hospitality and import-exportbenefiting the most from this.
It has also unveiled a 1 trillion VND (42.5 million USD) loan package forindividual customers at an interest rate of 9.9 percent.
Hoang Viet Cuong, deputy general director of the lender, saidit is meant to enable borrowers to revive production and get their lives backto normalcy.
Bad debts this year would not exceed 3 percent, the bank said.
Sai Gon – Hanoi Commercial Joint Stock Bank (SHB)also plans to cut its 2020 profit target, adding that it would be by at least 1trillion VND.
It also plans to reduce operation costs. Its executives havevolunteered a 50 percent wage cut until the pandemic ends, while departmentheads are amenable to 10-30 percent cuts.
The bank has earmarked 25 trillion VND for loans with manypreferential offers including a 2 percentage point interest rate cut. Italso plans to restructure customers’ loans.
It is expected that more banks will announce changes tostrategies and interest rate cuts to support clients in the coming days.
A report from the National Statistics Office said the creditgrowth this year has been only 0.68 percent, 1.22 percentage points downyear-on-year.
Deposit growth has fallen to 0.51 percent from 1.72 percent,it added./.
The volume of corporate bonds issued during February has reduced remarkably compared to the previous month due to the negative impacts of the COVID-19 epidemic on the stock market.
The Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and the Vietnam Bank for Agriculture and Rural Development (Agribank) will provide credit packages worth 60 trillion VND (2.5 million USD) and 100 trillion VND respectively to support customers amid the COVID-19 pandemic.
Incomplete statistics show that businesses have enjoyed cuts of at least 100 trillion VND (4.25 billion USD) to support them amid the COVID-19 pandemic.
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A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
A branch of SHB Bank. Many banks are cutting their annual profit targets due to the impacts of COVID-19 (Photo: VNA) 
