Investors from the EU will have opportunities to own higher stakes in Vietnamese banks than those from other countries under Vietnam’s commitments in the EU-Vietnam Free Trade Agreement (EVFTA).
Twelve out of 40 commercial banks have so far cleared all their non-performing loans (NPLs) kept at the Vietnam Asset Management Company (VAMC).
Thirteen commercial banks and securities firms will be allowed to join the debt market or Government bonds (G-bonds) market in Vietnam this year.
Though the fiscal year 2019 is yet to end, early reports suggest major commercial banks in Vietnam will enjoy big fat earnings this year.
Vietnam International Bank (VIB) has become the first bank in Vietnam to complete the three pillars of Basel II, which are minimum capital, supervisory review and market discipline.
Rising medium- and long-term capital demands to meet stricter regulations on credit safety limits and capital adequacy early next year were putting pressure on commercial banks to issue bonds in the final months of the year, experts said.
Vietnamese banks are struggling to recover overdue car loans since many customers mortgage vehicles bought using bank loans.
Many banks have issued a large amount of bonds to raise capital in a move to meet high demand during year-end’s peak lending season and prepare to meet the State Bank of Vietnam (SBV)’s regulations on tightening the use of short-term funds for long-term loans from early next year.
A workshop was held in Ho Chi Minh City on November 2 to discuss measures to further promote the development of Vietnam’s supply chain financing market in the digital age.
Many banks have reported good business performance in the first nine months of the year thanks to decreasing provision costs and rising income from services.
Vietnamese fintech companies can expect a raft of foreign financial institutions seeking a relationship with them, as the latter have found this route a promising one to access the underbanked population of the country.
Since early 2018, domestic banks have mulled over charter capital hike plans and sought shareholders’ approval for mergers and acquisitions in a bid to improve their competitiveness and expand their growth scale.
High-quality vaccines are available to people on low income with a zero percent interest rate on instalment payments.
Many banks have reported impressive profit growth in the first half of 2018, compared to the same period last year, thanks to the high credit growth and the improvement from the retail banking segment.
After years of receiving low dividend payout rate by banks, shareholders of many banks are now happy with the high rates announced at this year’s annual general meetings (AGMs) of shareholders.
Commercial banks are expecting the revenue from fees and retail banking services to become their main income sources this year, as a result of rising market demands.
The financial sector is ranked first in priority of investment in Vietnam for the World Bank Group’s private investment arm IFC in 2018, according to Kyle Kelhofer, IFC country manager for Vietnam, Cambodia, and Laos.
E-banking, the latest trend in the Vietnamese banking system, has not completely been able to replace conventional banking customs although the majority of baby boomers (those born in 1945-1960) and generation X (1961-1980) show insignificant interest in modern banking services.
Maximum credit growth this year is forecast to be just 18-19%, meaning that the banking system will not use up the increased room of 21%.
Two foreign bank names are in the list of top 10 taxpayers – HSBC and Shinhan Bank Vietnam. And both have strong retail banking divisions.