Vietnam government to consider reducing ownership at state-run commercial banks
Vietnam is committed to opening the financial market to foreign investors, particularly in financial services.
Vietnam is committed to opening the financial market to foreign investors, particularly in financial services.
It is a rare combination where Vietnamese banks are growing fast and are quite profitable, said an expert at JP Morgan.
The total assets of commercial banks under state ownership accounted for 43.4% of the total of the banking sector, followed by joint stock commercial banks with 41.4%.
Experts said that a series of favorable conditions are encouraging local banks’ plans to sell shares to foreign investors for capital hike in a move to meet the Vietnamese central bank’s Basel II regulation.
Growing attractiveness of Vietnamese banks' shares is thanks to a positive revamp and strong outlook of the sector, particularly as Vietnam is accelerating global economic integration.
Vietnamese banks belong to a handful of examples that combine well two factors of high growth of profit and long-term stability.