Vietnamplus

Local credit institutions are enjoying a rise in bancassurance activities with more exclusive deals coming, according to industry insiders.

In the first quarter of this year, all local banks reported high profit growth amid the impact of the COVID-19 pandemic. However, the profit growth does not reflect the complete economic picture, according to banking insiders.

Thirty-seven commercial banks have confirmed the reduction of fees for fast interbank fund transfers following the move of the National Payment Corporation of Viet Nam (NAPAS) to halve the switching fees for local banks from March 25.

The Vietnamese Government may allow European financial firms to buy up to 49 percent of only two local commercial banks, Nguyen Thi Thu Trang, Director of the WTO Integration Centre at the Vietnam Chamber of Commerce and Industry, said on October 23.

Seeing the potential from a population of 96 million and the 2018 per capita GDP of 2,590 USD, Vietnamese banks are racing to develop retail markets.

The Government should help Vietnamese banks lure capital and experience from prestigious foreign banks so as to help local firms develop sustainably, experts said.

Several local banks are reportedly determined to list on stock markets in 2019 after delaying last year.

The State Bank of Vietnam (SBV) will rank credit institutions and foreign bank branches operating in the country in a move to ensure the safety of the banking system and protect legitimate rights of depositors.

The State Bank of Vietnam (SBV) has set a target to stop cross-ownership among credit institutions (CIs) by the end of 2020.

Healthy domestic banks should focus on improving the transparency in their audited financial statements to attract foreign investors as some banks have recently succeeded with the strategy, experts suggested.

Many banks have planned to set up more branches and transaction offices in the early days of the new year to seize new business opportunities.

Business performance of commercial banks is forecast to continue its upward trend in 2018 after making significant improvements last year, according to a State Bank of Vietnam (SBV) survey.

The Vietnam Banks Association (VNBA) and the US Institute of Internal Auditors (IIA) held a workshop in Hanoi on August 23 to update local banks on the new International Professional Practices Framework (IPPF) for application in Vietnam.

Commercial banks have performed well in the first half of 2017 (H1), and business results show that many have already met more than half their annual profit targets.

Since the beginning of this year the shares of many banks have appreciated significantly, with the increases ranging from 8 percent to even 80 percent.

Vietnamese shares on May 5 were mixed on the two local exchanges for a second day, while the southern market rallied for a third day.

The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) will pick up a 49 percent stake in VASCO after committing to inject 147 billion VND into the restructured carrier.

The maximum interest rate paid to individuals depositing USD in local banks will be zero percent per year from December 18, the central bank announced.

The banking sector needs to be more proactive in economic integration in anticipation of fiercer competition in both domestic and global playgrounds.

Commercial banks expect to attract foreign investment in their newly-established financial companies thanks to the profitable domestic consumer financial market.