Research and Markets, a leading source for international market researchand market data, has confirmed that Vietnam has become a preferreddestination for international financial investors.
In the "Vietnam Financial Sector Forecast to 2013" report, the companywrote: "Vietnamese financial market has rapidly expanded during the pastfew years and has gained great strategic importance at the globallevel. With the rapid liberalisation, privatisation and globalisation ofthe market, Vietnam has become a preferred destination forinternational financial investors. The key financial sectors banking andinsurance are attracting huge foreign investments as both of thesesectors represent highly untapped potential."
Accordingto the report, posted on website "www.researchandmarkets.com" on Jan.25, Vietnam's banking sector is transforming and ongoing deregulationswill fuel the sectors growth in the coming years.
Theresearch noted that most of the Vietnamese are still unbanked and usetraditional ways of saving their money and financing their needs. Thisrepresents a highly untapped and potentially lucrative market forexisting as well as new market players. The projected 29 percent CAGR(Compound Annual Growth Rate) of banking asset (during 2011-2013)further confirms industry's attractiveness.
The companyalso reported that Vietnam's insurance sector has expanded rapidlyduring the last few years and has witnessed increase in the presence offoreign players, which helped intensify the market competition andbenefit consumer the most.
The company said in the reportthat micro financing has huge potential in Vietnam as the demographicindicators have been supportive in nature with around 73 percentpopulation living in rural areas and about 54 percent of the nationalworkforce working in agriculture sector. As of now, total loansoutstanding in rural areas comprise only 17 percent of the total bankcredit and more than 80 percent of the rural population does not haveaccess to any kind of institutional financial sources./.