BANKING SYSTEM IN VIET NAM

1. History &
overview

2. Regulations &
4. Co-operation 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 )

State-
Wholly Joint
Social Owned Joint Stock
foreign- venture Credit
Policy Bank Commercia Banks
owned banks union
of Vietnam l Banks (JSCBs)
banks
(SOCBs)
 Social Policy State-Owned Joint Stock Banks Joint venture banks Wholly foreign-
Bank of Commercial (JSCBs) owned banks
Vietnam Banks (SOCBs)

1. a non-profit State-own a comparatively banks which are limited-liability

Definitio bank offering majority small capital and established by fund companies, as
n full range of government- deposit base and of Viet Nam’s Banks distinct from
financial owned they have a more and Foreign banks. corporations,
services to the
poor at institutions that diversified partnerships (limited
preferential the government shareholding or general), and
terms and had initially structure than proprietorships
subsidized rates established to SOCBs organized by foreign
fulfill a nationals and
specialized capitalized with
lending function. foreign funds
2. 1 5 33 5 5
Number
of banks
3. Bank Agribank, CTG, Military Indovina Ban, HSBC ANZ Bank,
BIDV and Commercial Joint Shinhavina Bank, Standard Chartered
VCB ,MHB Bank (MBB), VinaSiam Bank , Bank, Shinhan Bank,
Vietnam Export VID Public Bank , Hong Leong Bank
Import Commercial Vietnam-Russia JV
Joint Stock
Bank( Exim) , Asia
Commercial Bank
(ACB) …….
BANKING LAW SYSTEM

The Law of
The Law of
Credit
State Bank
Unions (163
(66 terms)
terms)
 TAX LAWS
• INCOME TAX
• VALUE ADDED TAX
• EXCISE TAX
• TARIFF
• TECHNOLOGY TRANSFER TAX
• FOREIGN WITHHOLDING TAX
EXAMINATION PROFESSIONAL CONSISTENCY
& INSPECTORSHIP WITH OTHER
REFORMATION LAWS

FREQUENCY RISK REFERENCE

APROPRIALITY TREND COMBINATION

SOLUTION SUPPORT
Ranking and System
Ranking
 System

Central Bank
( Stated Bank
of Vietnam)

State-owned Commercial
Credit Union
banks bank

Stated-own Wholly
Joint Stock Joint Venture
commercial foreign-own
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