Foreign Banks Hold 20 per cent Vietnams Credit Market Share
Foreign and joint venture banks are holding about 20 per cent of Vietnam’s market share while domestic banks are occupying a large credit market share of about 80 per cent, the State Bank of Vietnam says.
This indicates that the WTO accession has not impacted much Vietnam’s banking system yet.
However, competition between domestic and foreign banks is increasing significantly, leader of a joint stock bank said.
Under the country’s WTO commitments, foreign banks will be treated as the same as domestic banks from January 1, 2011.
At present, foreign lenders are actively participating in Vietnam monetary market thru buying shares in local joint stock banks.
Foreign banks will be predominant over local banks with their advantages in modern, high technology and diversified products.
As the end of June 2008, foreign and joint venture banks saw their asset growing 33 per cent and outstanding loan rising 50 per cent from Dec of 2007, much higher than the banking system’s average growth rates of 8 per cent and 20 per cent, respectively.
Foreign banks have now accounted for 9.3 per cent of total outstanding loans in both Vietnam dong and US dollar, but for 29.5 per cent of total USD loans in the banking system.
Some foreign players such as Standard Chartered, HSBC and ANZ are planning to expand their network in Vietnam. (SBV)
Vietnamese
