Banking & Finance

Total capital expenditure in the 2016 – 2020 period would exceed the target of VND2,000 trillion (US$86.45 billion), accounting for 27 – 28% of total spending.

This part reviews outstanding internal and external economic events of Vietnam in the past year.

By the end of 2020, all commercial banks are required to meet Basel II standards, a condition for local lenders to expand their respective credit growth limit and increase registered capital.

Compared to the end of 2016, Vietnam’s foreign exchange reserve to date has doubled.

Experts have pointed out a number of hindrances to SOE privatization, including weak corporate governance, valuation methods and restricted foreign ownership.

ANZ Vietnam's Long-Term Foreign Currency IDR is capped at the Vietnamese Country Ceiling, which is ‘BB’ now.

Vietnam’s economic growth continues to be driven by the resilient foreign sector and robust domestic consumption.

Under the prime minister’s plan on restructuring the stock market and the insurance market until 2020, with a vision towards 2025, all commercial banks are required to float shares before 2020.

This is the second consecutive year that Vietnam’s economy expands over 7%, following a 10-year high GDP growth of 7.08% in 2018.

This would be a second consecutive year that Vietnam’s economy expands over 7%, while low inflation makes such economic growth more significant.

A major proportion of bank loans are provided for the business community, particularly the private sector and individuals.

Fitch analysts were upbeat about continued strong economic growth in Vietnam, which makes near-term stress unlikely and underpins their stable outlook for the banking sector.

Such comparison suggests that the development of the banking sector may have been too rapid compared to the size of the economy.

The number of small enterprises upgrading to mid-sized and from mid-sized to large ones is very low, while the capital accumulation process among private companies has not been up to standard.

Delay in paying government debts was due to the lack of seriousness of related government agencies in following the instruction of the prime minister.

Ant will not control more than 50% of eMonkey, but is expected to have significant influence and provide technical expertise to the e-wallet

The negative outlook on the rating mirrors the negative outlook on Vietnam's sovereign rating, given the government's commitment to MDP's power project.

Moody's rating actions on the 18 banks are driven purely by the sovereign rating action, and do not reflect a weakening of the banks' standalone financial profiles.

The finance ministry reiterated that the government is always serious about meeting commitments to timely debt payments with development partners and international financial institutions.

The negative outlook reflects some ongoing risk of payment delays on some of the government's indirect debt obligations.