Vietnam to Further Open Banking Sector

Vietnam to Further Open Banking Sector

Vietnam Deputy Prime Minister Vu Khoan has announced a statement asking the State Bank of Vietnam (SBV), the country’s central bank, to open the country’s banking sector even further as Vietnam joins the World Trade Organization (WTO), expected at the end of this year.

The central bank has been asked to map out plans for the sector to further integrate into the world economy, Mr. Khoan said. The bank must develop a solid outlining plan to be able to bring out appropriate policies in coming years.

The Deputy Prime Minister asked the central bank to particularly focus on expansion of local commercial banks nationwide before the government fully opens the market for foreign banks in the near future.

Vietnam now has five State-run commercial banks, 38 joint stock commercial banks, four joint venture banks, 29 foreign bank branches, and 44 foreign bank representative offices.

Five existing State-owned banks are now holding 80 per cent of the country's commercial loan market share. Foreign-invested banks hold 10 per cent, while local commercial banks, in which the state only has a partial stake, hold the remainder.

Youth