16 public sector banks

A customer uses QR code for payment at Con market in the central city of Da Nang. — VNA/VNS Photo Van Dung The State Bank of Viet Nam (SBV) has requested banks, branches of foreign banks, and providers of intermediary payment services to take steps to continue promoting cashless payments and the implementation of the national digital transformation programme. The move is also set to help with the plan on developing the application of resident data and electronic identification and authentication to serve national digital transformation for the 2022 - 25 period, with a vision to 2030. In its Document No 3956/NHNN-TT, the SBV asked banks, foreign banks’ branches, and intermediary payment service providers to continue considering and offering preferential programmes and policies on payment and intermediary payment service fees to customers, and exempt account maintenance fees as well as cash withdrawal fees for the customers entitled to the social security policy. They were told … [Read more...] about Central bank demands stronger promotion of cashless payment

Since its establishment in Vietnam in 1992, Deutsche Bank has steadily forged a remarkable 30-year legacy of expansion and development, solidifying its position as a driving force propelling the ASEAN banking sector forward. Today, its presence in Vietnam remains instrumental, playing a pivotal role in the group's burgeoning influence across the vibrant Asia-Pacific region. It has witnessed a doubling of its revenue over the past two years. Deutsche Bank offers a wide range of corporate and investment banking solutions to multinational companies, domestic conglomerates, and financial institutions in Vietnam. This multifaceted spectrum of services encompasses asset management, foreign exchange, capital arrangement for businesses, and an array of advisory solutions. Since 2017, Deutsche Bank has successfully mobilised over $1 billion in annual funding, including loans and equity capital, for Vietnamese enterprises. The bank has also solidified its position by arranging capital and … [Read more...] about Deutsche Bank expands investment in Vietnam

Latest figures from the central bank show that in late February the on-balance sheet non-performing ratio of the banking system stood at 2.91 per cent, an increase compared to 2.46 per cent in late 2016, 1.49 per cent in late 2021 and most recently, 2 per cent in late 2022. However, according to a State Bank of Vietnam (SBV) assessment, several sorts of debts have the potential to be turned into bad debts in the future, such as investment into corporate bonds for debt restructuring, hard-to-collect receivables, among others. “If such debts were considered, the non-performing loans (NPLs) ratio of the system might reach 5 per cent of total outstanding balances,” said SBV Governor Nguyen Thi Hong. One positive point is that credit institutions have been taking practical measures to ensure operational safety through boosting their loan loss reserve (LLR) funds for their bad debts . Accordingly, credit institutions have maintained a fairly high LLR ratio approximating … [Read more...] about How bad debts influence lending rates

The State Bank of Vietnam (SBV) last week announced additional adjustments to a series of key interest rates, effective from May 25. This move marks the third round of interest rate decreases within a span of less than three months, signifying its resolute efforts in lowering the interest rate landscape, aimed at providing vital support to businesses and stimulating overall economic growth. The SBV’s rate reduction moves cater specifically to existing customers, Photo: Le Toan The recent decision to lower interest rates has garnered praise from industry experts and leaders who believe it to be an appropriate and well-timed move. Le Quang Vinh, deputy CEO of Vietcombank, deemed it a sound decision that is well-aligned with the current economic landscape. “Looking ahead, we anticipate that lending rates will correspondingly decrease as deposit interest rates uniformly decline,” Vinh said. Pham Nhu Anh, CEO of MB, recognises the difficulties faced by the market in … [Read more...] about Rate reductions deemed well-timed

BVBank The move, outlined in Decision No.1001/QD-NHNN issued by the SBV on May 26, states that the new English abbreviation for the bank will be BVBank, replacing its previous designation. The adoption of the new abbreviation is in line with the bank's objective of having a concise, easily recognisable, and memorable name. This change aims to enhance the convenience of communication between BVBank and its customers, aligning with its customer-centric approach encapsulated in its slogan Starting with YOU. By securing the approval of the SBV, BVBank has taken a significant step towards becoming more customer-oriented, as it seeks to provide improved products, services, and overall benefits to its clientele. Furthermore, the new name also boosts the bank's international identity, positioning it for greater recognition and presence in global markets. The update reflects its commitment to establishing a strong and cohesive brand image on the international stage. Looking … [Read more...] about BVBank builds stronger identity with new name

An overview of the NA's fifth session. (Photo: VNA) Hanoi (VNA) – National Assembly (NA) deputies will continue their ongoing fifth session on May 30 discussing important matters, including a draft Law on Electronic Transactions (revised) and a draft resolution on pilot special policies for the development of Ho Chi Minh City. The draft Law on Electronic Transactions (revised) has seven chapters and 54 articles. Compared to the current version, the bill has 31 new and nine amended articles, while erasing a number of regulations in five and eliminating three articles. During the morning discussion, NA deputies will decide the investment policy for the project to construct road from National Highway 27C to Road 656 in Khanh Hoa province which links to Lam Dong and Ninh Thuan provinces, as well as the adjustment of the investment policy for Ka Pet reservoir in Ham Thuan Nam district of Binh Thuan province. In the afternoon, they are scheduled to listen to a proposal and a … [Read more...] about NA deputies continue to discuss draft laws, resolutions on May 30

Vietnamese e-wallet MoMo has partnered with Apple to introduce Apple Installments, which allows users to own Apple products through flexible payment plans ranging 6-24 months. The US tech giant launched an online store in Vietnam in May. Optimism rises for fintech development opportunities, illustration photo/ Le Toan Do Quang Thuan, senior deputy director in charge of financial services at MoMo, said, “As we seamlessly integrate into the online Apple Store, we present Vietnamese users with an unparalleled range of payment options. It’s a gateway to unlocking their dreams of Apple ownership while maintaining a firm grip on their financial equilibrium.” The landscape has become increasingly competitive in Vietnam, driving innovation and advancements in digital payment solutions. Breaking new ground in the Vietnamese market, MoMo is also the first local partner to offer cashless payment options for YouTube Premium. The strategic collaboration brings added convenience … [Read more...] about Optimism rises for fintech development opportunities

A Vietcombank employee talks to a customer at its office. The bank's shares surged by 1.5 per cent yesterday, lifting the VN-Index. — Photo courtesy of Vietcombank The Vietnamese stock market inched higher on Tuesday, extending its rally for the second day in a row. However, gains were capped by strong net selling activities by foreign investors. The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) rose 3.07 points, or 0.29 per cent, to close the day at 1,078.05 points. It climbed more than 11.2 points, the biggest intraday gain in two weeks, on Monday thanks to the investor's improving risk appetite. Tuesday's rally helped push the index closer to the resistance level of 1,080 points, and may further test the zone of 1,085 - 1,090 points, according to ASEAN Securities Company. Similarly, analysts from Yuanta Securities (Vietnam) Company said that the benchmark was likely to retest the resistance zone of 1,080 - 1,085 points, and the market would continue its … [Read more...] about Market extends gain on positive sentiment

Vietnam has more than 12,000 newly-established enterprises with a total registered capital of 103.7 trillion VND (4.44 billion USD) in May. (Photo: VNA) Hanoi (VNA) – Vietnam had more than 12,000 newly-established enterprises with a total registered capital of 103.7 trillion VND (4.44 billion USD) in May, according to the General Statistics Office (GSO). These figures were sharply down by 24.2% and 32.9% in the number of newly registered enterprises and the registered capital respectively from the previous month, reflecting a downward trend in the business climate among individuals and enterprises as difficulties and risks facing the economy may last long. Besides, 33,000 enterprises returned to operation, down 7.4% over the same period last year, bringing the total number of newly established enterprises and those returning to operation in the five months period to nearly 95,000, a fall of 3.7% compared the same period last year. On average, nearly 19,000 businesses were … [Read more...] about Newly established firms decrease 24% in May

VNG Corporation has recently unveiled its audited separate and consolidated financial statements for 2022, which were conducted by EY. The audit report has shed light on detailed information, particularly concerning the tax-deductible loss incurred by Zion JSC, a subsidiary of VNG with a 69.98 per cent ownership stake. Established in 2005, Zion operates ZaloPay, a mobile payment application developed to meet both personal and business payment needs. Alongside Momo, AppotaPay, VNPay, and other competitors, ZaloPay has gained significant popularity and boasts a loyal user base. VNG has reported that ZaloPay has established partnerships with 39 banks and over 5,000 partners, with a remarkable 51 per cent monthly user activity growth throughout 2021. According to information available on the ZaloPay website, the e-wallet has successfully collaborated with renowned banks including Vietcombank, VietinBank, Sacombank, BIDV, Eximbank, SCB, BVBank, and international card organisations … [Read more...] about VNG reveals increased losses