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The likely gross domestic product growth rate of 6.8 percent and improved business climate are among the highlights of Vietnam’s economy in 2018, experts said.

Many commercial banks raised deposit interest rates in recent months, triggering worries about the increasing pressure on the lending rates.

The likely gross domestic product (GDP) growth rate of 6.8 percent and improved business climate are among the highlights of Vietnam’s economy in 2018, experts said.

Deputy Prime Minister Vuong Dinh Hue called on Singapore’s Clermont Group to share its experience with and provide consultations for Vietnam in building and developing an ecosystem for fintech and digital banking.

After reviewing their business performance over the third quarter, most commercial banks announced positive results with double-digit growth. However, the amount of bad debt is also on the rise.

The Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) opened a new branch in the Lao capital of Vientiane on November 28, the second Lao branch the bank has opened since 2015.

The Vietnam Debt Asset Trading Corporation (VDATC), in collaboration with the Asian Development Bank, will organise the 4th International Public Asset Management Company Forum (IPAF) from November 14-15.

More commercial banks expect their credit growth limits to be expanded this year after Techcombank became the first to get the nod to do so from the State Bank of Vietnam (SBV) recently.

The Vietnam Bank for Agriculture and Rural Development (Agribank) has announced that it is likely to reach the highest-ever profit growth rate by the end of the year.

Governor of the State Bank of Vietnam (SBV) Le Minh Hung was questioned on the pace of handling bad debt and banks with bad performances during the question-and-answer session on November 1 at the 14th National Assembly’s ongoing sixth session.

The State Audit of Vietnam (SAV) will audit 25 State-owned enterprises and financial organisations in 2019. They include the State Bank of Vietnam, 21 economic groups and corporations and three banks and credit institutions.

Consumer finance companies have been cutting credit growth to focus more on tightening internal governance and selecting solvent customers to target a safer and healthier development.

Vietnam’s finance and banking sector has reduced its ratio of non-performing loans from 17.2 percent in 2012 to 6.7 percent at the end of June 2018.

Vietnam’s finance and banking sector has reduced its ratio of non-performing loans (NPLs) – including both NPLs owned by credit institutions and the Vietnam Asset Management Company – from 17.2 percent in 2012 to 6.7 percent at the end of June 2018.

The Government is directing ministries and agencies to raise capital for State-owned commercial banks through the use of dividends or share sales this year, Deputy Prime Minister Vuong Dinh Hue said at a recent meeting.

Many commercial banks have recently increased deposit interest rates, but experts forecast that the rise will last only a short time and won’t have a domino effect on lending rates.

The State Bank of Vietnam (SBV) needed to speed up the settlement of non-performing loans (NPLs) to bring down the bad debt ratio of the entire banking system, including both NPLs owned by credit institutions and the Vietnam Asset Management Company (VAMC), to below 3 percent by 2020.

Settling non-performing loans (NPLs) has been easier since the application of Nation Assembly’s Resolution 42 a year ago, but detailed guidance is still needed to make the use of the regulation smoother, industry insiders said.

The Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank) has revised down many business targets for 2018, citing different reasons for this decision.

The Vietnamese Government plans to reduce the cash payment proportion to less than 10 percent by 2020 and 8 percent by 2025, which can be done by expanding the network of automatic teller machines (ATMs) and points of sale (POS) nationwide.