At the regular government press in May which was held on June 2nd, the government said that the socio-economic situation in May 2020 has recorded many positive changes. The problem of resuming domestic market with strong vitality has been launched, large tourist centers have welcomed numerous domestic tourists. Airlines and tourism industry which suffered badly from the Covid-19 pandemic have returned for fairly bustling operation. Another good thing is that many provinces and cities have very high determination in development, striving to complete and exceed the State plans in 2020.
In May 2020, 10,700 new businesses were established, up by 36.1 percent over April. The number of businesses returning to operation increased by 10.5%, the number of businesses suspending operation to wait for dissolution procedures decreased by 14.5%, and the number of businesses completing dissolution procedures fell by 4.8%.
In May and in the first five months of the year, the macro economy continued to be kept stable. Operating interest rates declined, and monetary policy was implemented flexibly and proactively. The Consumer Price Index (CPI) in May 2020 decreased by 0.03 percent compared to the previous month. In the first five months of 2020, the average CPI is 4.39 percent over the same period of last year.
The monetary market and credit market were basically stable, while foreign exchange market operated efficiently and smoothly. As of May 20th, the capital mobilisation growth was 1.85%, and credit growth was 1.32 percent compared to the end of 2019. In May, the State Bank of Vietnam (SBV) continued to lower operating interest rates, ceiling deposit rate and ceiling lending rate for priority areas in order to share difficulties with businesses.
The stock market of Vietnam was more exciting thanks to the basically controlled Covid-19 pandemic in the domestic, and the return of production and business activities to a new normal state.
The capital mobilisation growth of 1.85 percent compared to the end of 2019 means that nearly 200 trillion dong were newly deposited into the system in the recent time. Thus, although interest rates fell for two consecutive times in March and May, the input capital flows of banks still maintained good growth momentum. Moreover, compared to the credit growth, the deposits at banks still increased at a significantly higher rate.
Thanks to the good source of capital inflows, the liquidity of the system has been quite abundant in the recent time. On the interbank market, banks are borrowing at the lowest rate in the past five years, reaching less than 0.5 percent per annum for overnight and one-week terms.
