Research and Markets, a leading source for international market research and market data, has confirmed that Vietnam has become a preferred destination for international financial investors.

In the "Vietnam Financial Sector Forecast to 2013" report, the company wrote: "Vietnamese financial market has rapidly expanded during the past few years and has gained great strategic importance at the global level. With the rapid liberalisation, privatisation and globalisation of the market, Vietnam has become a preferred destination for international financial investors. The key financial sectors banking and insurance are attracting huge foreign investments as both of these sectors represent highly untapped potential."

According to the report, posted on website "" on Jan. 25, Vietnam's banking sector is transforming and ongoing deregulations will fuel the sectors growth in the coming years.

The research noted that most of the Vietnamese are still unbanked and use traditional ways of saving their money and financing their needs. This represents a highly untapped and potentially lucrative market for existing 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 company also reported that Vietnam's insurance sector has expanded rapidly during the last few years and has witnessed increase in the presence of foreign players, which helped intensify the market competition and benefit consumer the most.

The company said in the report that micro financing has huge potential in Vietnam as the demographic indicators have been supportive in nature with around 73 percent population living in rural areas and about 54 percent of the national workforce working in agriculture sector. As of now, total loans outstanding in rural areas comprise only 17 percent of the total bank credit and more than 80 percent of the rural population does not have access to any kind of institutional financial sources./.