BANKING SYSTEM IN VIET NAM

BANKING SYSTEM IN VIET NAM
1. History & overview

4. Co-operation

2. Regulations & future
perspectives

3. Ranking &
networking


1, History of banking system

1951-1954

1955-1975

1975 – 1985

1986 up to now


Banking structure in Viet Nam
State bank
( Central bank of
Viet Nam )

Social Policy
Bank of
Vietnam

StateOwned
Commercial
Banks
(SOCBs)

Joint Stock
Banks
(JSCBs)

Wholly
foreignowned
banks

Joint venture
banks

Credit union


Social Policy
Bank of
Vietnam

State-Owned
Commercial
Banks (SOCBs)

Joint Stock Banks
(JSCBs)

Joint venture banks

Wholly foreignowned banks

1.
Definitio
n

a non-profit
bank offering
full range of
financial
services to the
poor at
preferential
terms and
subsidized rates

State-own
majority
governmentowned
institutions that
the government
had initially
established to
fulfill a
specialized
lending function.

a comparatively
small capital and
deposit base and
they have a more
diversified
shareholding
structure than
SOCBs

banks which are
established by fund
of Viet Nam’s Banks
and Foreign banks.

limited-liability
companies, as distinct
from corporations,
partnerships (limited
or general), and
proprietorships
organized by foreign
nationals and
capitalized with
foreign funds

2.
Number
of banks

1

5

33

5

5

Agribank, CTG,
BIDV and
VCB ,MHB

Military
Commercial Joint
Bank (MBB),
Vietnam Export
Import Commercial
Joint Stock
Bank( Exim) , Asia
Commercial Bank
(ACB) …….

Indovina Ban,
Shinhavina Bank,
VinaSiam Bank , VID
Public Bank ,
Vietnam-Russia JV

HSBC ANZ Bank,

Standard Chartered
Bank, Shinhan Bank,
Hong Leong Bank

3. Bank


BANKING LAW SYSTEM

The Law of
State Bank
(66 terms)

The Law of
Credit Unions
(163 terms)


TAX LAWS
•
•
•
•
•
•

INCOME TAX
VALUE ADDED TAX
EXCISE TAX
TARIFF

TECHNOLOGY TRANSFER TAX
FOREIGN WITHHOLDING TAX


EXAMINATION
&
REFORMATION

PROFESSIONAL
INSPECTORSHIP

CONSISTENCY
WITH OTHER
LAWS

FREQUENCY

RISK

REFERENCE

APROPRIALITY

TREND

COMBINATION

SOLUTION

SUPPORT

Ranking and System


Ranking


System
Central Bank
( Stated Bank of
Vietnam)

State-owned
banks

Stated-own
commercial

Commercial
bank

Joint Stock

Credit Union

Joint Venture

Wholly foreignown

Cross-Ownership in Vietnam


Stated-own commercial bank network
•
•
•
•

Vietcombank
BIDV
Viettinbank
Agribank


4. Collaboration in banking
system in Vietnam


Branches of Foreign Banks


Role of foreign
banks in Vietnam

● In other countries


Role of foreign banks in Vietnam

● In Vietnam
- There are 7 wholly-owned foreign banks and
50 foreign bank branches in Vietnam
- About 70-80 percent of the profit made by
foreign banks comes from services, while credit
makes up 10-15 percent
→ Outstanding advantages over domestic
banks
- More than 50 percent of VIP clients are foreign
invested banks’ clients.


Trade agreements facilitate foreign ownership and investment

● Trade agreements:
➢Trans Pacific Strategic Economic Partnership
(TTP)
➢Association of Southeast Asian Nations
(ASEAN)
➢Free Trade Agreement with different
countries


Vietnam- a destination of foreign
investment in South East Asian
●Only 20% of moremarket
than 90 million citizens in
Vietnam hold bank accounts
●3% of the population have credit cards

→ Opportunity for retail banking activity
development in Vietnam
●SME and rural areas have had challenges to
access bank investment and loan
●GDP growth of around 6% to 7%
●Low wage costs