At the annual Invest ASEAN 2026 investment conference held in Singapore, Vietnam recorded significant participation with the involvement of 14 local companies. This momentum coincides with renewed optimism regarding the country's economic landscape, with Maybank Investment Banking Group predicting a more dynamic easing of monetary policy in the second half of 2026.
Vietnam's economic stability is seen as improving as inflation is controlled and expected to hit below 5% towards the end of the year. In addition, the stability of the foreign exchange rate due to easing global oil prices and strong inflows of foreign direct investment (FDI) serves as a main catalyst for the State Bank of Vietnam (SBV) to implement more accommodative policies to support national economic growth.
Different from conventional approaches, SBV chose to optimize technical instruments to inject liquidity into the banking system. Strategic moves such as adjusting the ratio of short-term capital for long-term loans as well as flexibility in calculating the loan-to-deposit ratio (LDR) are considered effective in easing the burden on bank balance sheets, thereby providing more room for credit distribution to business actors.
The decline in deposit interest rates, which is predicted to reach 7% for a 12-month tenor by the end of this year, is expected to significantly reduce the cost of capital. The domino effect of this policy will not only be felt by the banking sector but is also projected to boost the performance of various industries, including retail, energy, and maritime logistics.
Overall, earnings per share (EPS) growth for listed companies is expected to grow in the range of 13-16% throughout 2026. This strong synergy between fiscal and monetary policy is an important foundation for Vietnam to maintain aggressive GDP growth momentum and strengthen the competitiveness of local companies amidst global economic challenges.
