Vietnam has recently been listed among the world’s 10 best countries for expatriates in a recent survey by the bank HSBC.

After recording its slowest pace in more than three year last month, Viet Nam’s inflation is forecast to hit only 2.7 per cent in 2019 after standing at 3.5 per cent last year.

A lot of people from China, South Korea, even Japan are buying resort properties in Vietnam, which is considered a sign of an attractive market to investors.

However, to convert its much-touted supply chain potential, Vietnam needs to build more visibility and credibility amongst international firms.

The need to ease policy rates in the near-term is unlikely, given the country’s still-robust growth and heightened foreign direct investment.

VietNamNet Bridge - Concerns were once raised when a number of foreign partners decided to divest from Vietnamese banks, but banks’ financial reports show satisfactory business performances.

Foreign investors are rushing to pour money into Vietnam’s banks which see a brighter future as the warming of the real estate market will help them collect debts from mortgaged loans.

VietNamNet Bridge - Though foreign CEOs are commonly seen in privately run commercial banks, few banks where the state holds the controlling stake employ foreigners.

VietNamNet Bridge - Two foreign bank names are in the list of top 10 taxpayers – HSBC and Shinhan Bank Vietnam. And both have strong retail banking divisions.

VietNamNet Bridge - The divestment of a number of foreign strategic investors from Vietnamese banks is a sign that foreign technology doesn’t always help.

VietNamNet Bridge - After separating from HSBC, Techcombank plans to spare no room for foreign investors, and VP Bank, which has been prospering in the last four years, is no longer eager to seek foreign partners.

VietNamNet Bridge - Phan Minh Ngoc, an economist, analyses the indexes to show the health of Vietnamese banks.

Some large foreign banks operating in Vietnam have recently scaled down their business or withdrawn capital from Vietnamese banks. What is happening with the banking sector?

VietNamNet Bridge - FE Credit is leading the consumer finance market with $1.4 billion worth of loans provided in 2016, accounting for 48 percent of market share. 

Economic growth based on natural resource exploitation and a cheap labor force has reached the critical point. Economists say Vietnam has no choice but to follow a sustainable development strategy.

VietNamNet Bridge - The increased demand for capital and bank services has attracted more foreign banks to Vietnam, which is putting pressure on domestic bankers.

 VietNamNet Bridge – The HSBC Global Research team has expressed concern over Vietnam’s recent move to loosen credit to stimulate private sector and government spending.

VietNamNet Bridge - Vietnamese clients of HSBC and BIDV have lost tens of millions of dong after having their international payment accounts hacked. 

 Europe's largest lender, HSBC, is imposing a hiring and pay freeze across the bank globally in 2016, two sources familiar with the matter told Reuters.

 VietNamNet Bridge – The Government has set an economic growth target of 6.7 per cent for 2016, which HSBC, in its latest Vietnam at a Glance report, believes is feasible since export growth has rebounded to double digits reflecting new investment.