Banking & Finance

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.

The Fintech Challenge Vietnam has been useful input into developing an enabling legal framework for the fintech ecosystem development in Vietnam.

Vietnamese law does not allow multilateral international financial institutions such as IFC to use red book, or land use rights certificate, for collateral loans.

As of present, just 40% of citizens in Vietnam have bank accounts. However, 90% of daily transactions are conducted in cash, while the rate goes up to 99% for transaction worth under VND100,000 (US$4.34).

The cooperation framework would support mobilizing capital from the private sector and developing financial markets for infrastructure development, in turn helping Vietnam realize its priorities in the field in near future, said a Vietnamese vice finance minister.

The slow growth comes mainly from state-owned banks, which have become more stringent on their loan disbursements.