Banking & Finance

Preparing financial management skills for students is part of efforts to contribute to Vietnam’s increasingly diverse commerce scenarios.

Vietnam’s economic growth is projected to moderate to 6.6% in 2019, driven by credit tightening, slower private consumption and weaker external demand.

Statistics from 17 stock-exchange listed banks in Vietnam in the first quarter show a continued uptrend following positive business performance of the sector in 2018.

What investors see and find most captivating about Vietnam`s banking system is that there is an untapped opportunity.

The banking growth model of rapid credit growth to the corporate sector will transform in the one which focuses more on household lending and fee income as corporates tap into the bond and equity markets.

Difficulties remained for enterprises, particularly SMEs, in accessing banks’ credit and financial services.

The need to ease policy rates in the near-term is unlikely, given the country’s still-robust growth and heightened foreign direct investment.

The extent of internet penetration and the percentage of smart phones and social media users in the country is higher than the global average and countries with similar development level, said experts.

Foreign banks have so far gained positive business performance in the Vietnamese market and their results are estimated to be better than Vietnamese banks with the same scale in capital and total assets.

Most banks reported a better business environment and higher business results in the January – March period against the same period last year.

Vietnam recorded a budget surplus of VND66 trillion (US$2.84 billion) in the first quarter, indicating a sharp improvement from a budget surplus of VND18.48 trillion (US$797.02 million) in the same period of 2018.

Due to the increasing number of Japanese companies expanding in Vietnam as well as growing domestic consumption, Vietnam becomes more attractive as an investment destination for Japanese corporations.

The decision was made taking into consideration the GDP growth target of 6.8% in 2019 and inflation rate below 4%, set by the National Assembly and the government.

Tokyo-based J Trust will contribute capital and support the bank in terms of technology and financial operations.

As for poorly-performing banks, prestigious foreign banks should be permitted to buy up to 100 per cent of the banks’ charter capital.

The finance ministry`s proposal is part of the government’s efforts to encourage business households to formalize and become enterprises.

Vietnamese consumers are embracing digital payments as a faster and more convenient way to pay, with consumers using their credit and debit cards more often for in store and online purchases.

VISA expects to become a credible partner for Vietnamese government in facilitating e-payment transactions in Vietnam, according to the company’s CEO.

Vietnam’s e-payment market is growing impressively as the number of Vietnamese people making mobile payments in stores this year has grown the fastest globally by 24 percent.

The total assets of state-owned commercial banks accounted for 44% of the total in the banking sector, followed by joint stock commercial banks with 41%.