Banking & Finance

Remittance, along with foreign direct and indirect investment and official development assistance, is a major source of Vietnam’s foreign currency supply.

The public capital must be allocated based on market principles, said an expert.

Encouraging FDI firms to list locally would help supervise their performance as the companies would be managed by not only local authorities but also investors, shareholders, and the local stock exchanges.

As of November 15, the country's state budget revenue reached VND1,299.4 trillion (US$56.18 billion), equivalent to 92.1% of the year's estimate.

Instead of a daily transaction limit, Vietnam’s central bank would set up a monthly limit of VND100 million (US$4,284) for e-wallet users.

For banks in Vietnam, data governance is an important step to realize the vision of becoming a leading data-driven bank, said a PwC expert.

Vietnam’s fintech firms secured two of the top three largest funding deals in ASEAN in 2019.

For the time being, the government would redefine functions and responsibilities of each stock exchange, ensure no overlapping in operations.

After the parliament disapproved a plan to use state funds to raise registered capital, state-owned banks will have to look for foreign investment to increase capital.

The large market and great potential of the non-cash payment sector in Vietnam explain why investors keep pouring money into payment technology firms, though the firms continue making losses.

This expansion was due mainly to a 4% on-quarter growth in government bonds to US$51 billion as the central bank increased issuance of bills.

The move aims to support local businesses which are hampered by high borrowing costs.

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.

Most Vietnamese banks are still struggling to comply with the banking authority’s regulations related to digital transformation, particularly those concerning the management of third-party risks.

The National Assembly agreed on allocating VND115.4 trillion (US$4.97 billion) for debt payment and VND220 trillion (US$9.47 billion) for development investment.

This is the first acquisition by a foreign financial institution of a considerable stake of a Vietnamese bank in many years.

Experts are upbeat about the Vietnamese insurance industry’s health in the coming years, forecasting it would maintain an annual double digit growth rate.

In 2019, the combined value of Vietnam’s top 50 most valuable brands reached over US$9.3 billion, according to Forbes Vietnam’s ranking.

The move reflected Pyn Elite Fund’s view of Vietnam’s positive economic outlook and the robust profit growth of listed companies, as well as its belief in the continuous modernization of Vietnamese financial market.