Banking & Finance

The relaxation of foreign ownership ceiling to 49 percent is needed to help banks meet requirements in the country’s integration and be able to compete with international peers.

Vietnam is one of the most inspirational success stories in Asia, with strong economic growth and tremendous potential for development, a CIMB official said.

The program supports several government reforms to strengthen, deepen, and broaden the outreach of Vietnam’s formal finance sector.

The pressure for domestic securities companies will increase along with the expansion of foreign-owned securities ones.

Asian shares rallied today and Vietnamese peered followed suit.

State budget revenues as of November 15 reached VND1,160.1 trillion (US$49.82 billion), equivalent to 87.9% of the year`s estimate.

The participation of foreign investors has helped domestic insurers enhance their insurance capacity through training, legal framework and operation of products.

Vietnam is working to ease the foreign ownership limit to attract overseas capital, restricting foreign ownership in banking at 30%, any single foreign investor restricted to 20%.

The Japanese bank plans to expand preferential loans to Vietnam, especially in infrastructure development, and commits to a long-term business in the country.

Growing mobilization rate could lead to an increase of 0.5 - 1 percentage point per year in lending rates in the remaining months of 2018, depending on each bank.

The figure was boosted mainly by the 5.2% on-quarter and 14.7% yearly expansion in the government bond market to US$49.0 billion.

Retail banking and financial services contributed largely to positive business performance of Vietnamese banking sector in the first half of 2018.

The State Bank of Vietnam (SBV) expects to put an end to cross-ownership in the banking system by 2020.

It is expected that around VND391 trillion (US$16.76 billion) of credit could flow into the economy in the last quarter of 2018, which will be enough to meet the entire demand of the economy in the remaining months.

The funding has been channeled to 165 programs and projects across the country, mostly in the government-prioritized fields namely infrastructure, climate resilience, and renewable energy, according to the government’s portal.

Moody`s expects Vietnam`s real GDP growth to remain one of the strongest in ASEAN, at 6.7% in 2018 and 6.5% in 2019.

Deposits at three major state-run banks stood at VND2,550 trillion (US$110.04 billion), accounting for 46% of total deposits at 28 banks, CafeF reported.

The future sale of 600 million shares to KEB Hana, if successful, will have a big positive impact on BIDV’s financial picture by improving its credit and profit growth potential.

The State Bank of Vietnam (SBV)’s timely intervention has been key to stabilize the VND in the context of global uncertainties.

Improving the transparency of Vietnam’s securities market is necessary due to rapidly increasing market capitalization in the context of further transition to the market economy and development of the private sector.