The real estate market is recovering strongly and attracting huge sums of money from banks, foreign investors and overseas Vietnamese.
In a TPP without the US, powerful member countries will benefit most, according to economist Nguyen Tri Hieu.
The central bank is gradually introducing a raft of regulations to enforce laws that require local lenders to incorporate environmental and social risk management into their lending criteria.
As Vietnam becomes more integrated into the world economy, banks looking to improve competitiveness and governance, especially in risk management, should apply Basel II standards.
VOV.VN - Vietnam’s economic restructuring program for the past 5 years brought about noticeable results. The progress has provided a basis for Vietnam to continue its restructuring plan until 2020.
The sharp appreciation of the US dollar after the news about the US election and the fall of the Chinese yuan to a 6-year low could create risks for Vietnam’s economy.
Deputy Prime Minister Vuong Dinh Hue has recently instructed relevant authorities to scrutinise the possible removal of the deposit interest rate cap on short-term deposits.
The State Bank of Vietnam (SBV) will continue to encourage the practice of mergers and acquisitions (M&A) as a solution to dealing with ailing credit institutions.
Many foreign banks have recently set up wholly-owned operations or opened new branches in Vietnam.
Though the bad debt ratio of the banking system has been reported to drop to below 3% of its outstanding loans, how to deal with the amount of bad debt stuck at the Vietnam Asset Management Company (VAMC) is still a troublesome job.
Japan has, for the first time, decided to provide ODA (official development assistance) to help Vietnamese buy houses.
Pressure from ensuring liquidity, meeting rising credit demands and purchasing Government bonds has caused commercial banks to hike their savings interest rates to attract depositors.
Information related to mergers and acquisitions (M&As) of credit institutions is awaited as the season of annual shareholders’ meetings is around the corner.
Debt-to-equity swaps may work in other territories as a solution to resolve soured debts, however, local experts do not recommend this method in Vietnam, despite the country’s towering bad debts.
The issue of cross ownership has hindered Vietnam’s banking industry over the last ten years, causing damage to and threatening the stability of the local banking system.
Though experts forecast a rise in lending interest rates in 2016, a central bank official believes it is feasible to keep the rates stable and reducing it slightly this year.
Interest rates will likely increase again this year, after remaining at the low levels of 2006 for the past few years, experts forecast.
The recent inclusion of the Chinese yuan (CNY) to the reserve currency basket of the International Monetary Fund (IMF) will not have any significant impacts on Vietnam’s economy, experts said, adding that it takes at least six months or even a year to see any impacts.
Experts forecast that the Trans-Pacific Partnership (TPP) will bring about sweeping changes within the Vietnamese financial market, however, thorough preparation is needed to maximize potential benefits.
Financial expert Dr. Nguyen Tri Hieu said to reach the regional level, a bank must have total assets of at least US$50 billion and equity of about US$5 billion.