Several Vietnamese banks were gearing up expansions to foreign markets to tap increasing overseas investment by Vietnamese businesses. Most recently, the Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank) opened its wholly-owned Vietcombank Laos in Vientiane early this week. Six Vietnamese banks have established a presence in Laos, including Military Bank (MB), Vietcombank, Saigon-Hanoi Bank (SHB), Bank for Investment and Development of Viet Nam (BIDV), Vietnam Bank for Industry and Trade (Vietinbank) and Saigon Thuong Tin Bank (Sacombank). According to Pham Manh Thang, deputy director of Vietcombank, Vietcombank Laos will provide services for Vietnamese businesses looking to invest in Laos, those already operating in the country, as well as others. Vietcombank also has offices and branches in Paris (France), Moscow (Russia) and Singapore, as well as the Vietnam Finance Company Limited (Vinafico) in Hong Kong. Vietcombank plans to open a branch in Australia and … [Read more...] about Vietnamese banks have eye on foreign markets
Vietnamese banks
Vietnamese banks expect profits to rise 18.6 percent
A newly-released central bank survey on business trends among Vietnamese banks found 72.6 percent saying their business situation had improved from the second quarter, with 15.8 percent reporting significant improvement. The survey, which was conducted in September, showed that over half, 56.8 percent, of the banks surveyed said that they have hired more staff in the third quarter, higher than the 46 percent in the second quarter. But 26.6 percent of them said they still need more staff and 61.5 percent planned to hire more people in the last quarter. The banks project lending to grow the most, followed by payments and deposits. Over 88 percent expect profits before tax to grow 18.6 percent on average from last year, higher than last year’s expectations of 13.6 percent. They expect capital mobilization on average will grow by 5.8 percent in the last quarter and 15.3 percent for the whole year, higher than last year’s 14.9 percent. The banks also forecast their … [Read more...] about Vietnamese banks expect profits to rise 18.6 percent
Vietnamese banks’ shares a better investment than foreign banks: VDSC
An analysis by Việt Dragon Securities Corporation has found that Vietnamese banks’ shares are a better investment than shares of foreign banks. - File PhotoViet Nam News VDSC also said that in Việt Nam, the banking sector might see merger and acquisition deals in the next few years to enable weak banks to meet Basel 2 standards. — VNS … [Read more...] about Vietnamese banks’ shares a better investment than foreign banks: VDSC
Fitch Ratings: Vietnamese banks showing improvements but challenges remain
Vietnamese banks will continue to capitalise on higher earnings and a strong economy to reduce the legacy of bad debt exposure. - Photo ACBViet Nam News HÀ NỘI — Fitch Ratings expects Vietnamese banks to sustain their improving operating trends in the second half of 2018 (H2) on the heels of better credit quality and profitability, and broadly stable funding and liquidity in the first half. “We expect these banks to continue to capitalise on their higher earnings and the strong economy to reduce legacy bad debt exposures,” Fitch noted in a report released on Wednesday. That said, deposit competition is unlikely to become overly intense in the short term - given that the loan/deposit ratio of Fitch-rated banks is not excessive at 89.7 per cent at end-June 2018, compared with 89.3 per cent at end-2017. … [Read more...] about Fitch Ratings: Vietnamese banks showing improvements but challenges remain
Most Vietnamese banks maintain reasonable credit growth in face of credit quota
The Hanoitimes - As Vietnamese banks were given credit quota since the beginning of the year, only Tien Phong Bank (TPBank) and Ho Chi Minh Development Bank (HDBank) have filled up their credit quota. Many banks maintained reasonable credit growth as of June, which is in line with their guidance and granted limits, stated a recent report by Viet Dragon Securities Company (VDSC). Meanwhile, others have pushed lending, with credit growth exceeding 10%, even reaching their lending cap. The remaining credit growth allowance for those in the second half of the year is very limited. Banks with highest credit growth rates in the January - June period are TPBank with 15%, HDBank (14.5%), which already reached their quota (both at 15%), followed by LienVietPost Bank (13.3%) and Orient Commercial Bank, or OCB, (12.2%). These four banks have set very high credit growth targets for the entire year, at 20%, even 40% as in HDBank's case, which are much higher than initial quota … [Read more...] about Most Vietnamese banks maintain reasonable credit growth in face of credit quota