return icon

More foreign bankers to set foot in Vietnam

VietNamNet Bridge - The ASEAN Economic Community (AEC), in which member countries will open up to 70 percent of their banks to foreign investors, is believed to pave the way for more and more bankers to seek business opportunities in Vietnam.

VietNamNet Bridge - The ASEAN Economic Community (AEC), in which member countries will open up to 70 percent of their banks to foreign investors, is believed to pave the way for more and more bankers to seek business opportunities in Vietnam.




Dr. Can Van Luc from the Bank for Investment and Development of Vietnam (BIDV) believes that many new banks will join the Vietnamese market by the end of 2015 or early 2016.

Vietnam, a member of AEC, will have to accept foreign ownership ratio of up to 70 percent in Vietnamese banks, much higher than the ceiling foreign ownership ratio of 30 percent applied to bankers from other regions. 

The foreign ownership ratio will be a maximum of 49 percent in insurance and securities companies.

“This is why I strongly believe that more foreign banks will come to Vietnam in 2016,” Luc said.

The Vietnamese finance & banking market received one more foreign member when Public Bank Berhard (PBB) from Malaysia, a joint venture bank with BIDV, shifted to become a 100 percent foreign owned bank.

The PBB’s decision has raised the number of operational foreign banks in Vietnam to six. There are also 43 foreign bank branches and 49 foreign bank representative offices now operational in Vietnam.

Infornet quoted Ms. Nguyen Thuy Duong, Partner of Ernst & Young Vietnam (EY Vietnam) as saying that number of foreign banks in Vietnam will be increasing after AEC is established by the end of the year.

“Foreign bankers are eyeing the Vietnamese market and they are just awaiting the official admission tickets,” she said.

An analyst noted that South Korean and Indian banks are attempting to penetrate the Vietnamese market.

According to Luc, the 70 percent foreign ownership ratio principle will be valid as soon as AEC forms. However, with the ASEAN Minus X principle, some less developed economies would follow specific integration process, which means that Vietnam may not have to accept the maximum 70 percent foreign ownership immediately.

This means that Vietnam can open its banks step by step, by 40 percent, 50 percent or 60 percent, depending on the government’s negotiations.

In fact, many foreign bankers have been trying to “take a shortcut” to Vietnam by buying shares of Vietnamese operational banks. However, no successful deals have been reported recently. 

According to Luc, many negotiations failed because the involved parties could not reach agreements on business valuation. This is partially because Vietnam still lacks independent business valuation firms. 

Luc also said it was necessary to simplify administrative procedures, emphasizing that complicated procedures will discourage investors, who want to wrap up deals quickly to avoid missing opportunities.

K. Chi



Vietnam contributes to resolution seeking ICJ’s act related to climate change

Trade Ministry signs cooperation deal with world leading fair organiser

The Trade Promotion Agency of Vietnam signed a memorandum of understanding with Messe Frankfurk Group on cooperation in trade promotion.

Over 500 individuals implicated in vehicle registration irregularities

Charges have been filed against 506 suspects for their alleged involvement in irregularities at multiple auto registration and inspection centers in the country, the Ministry of Public Security (MPS) said at a Government press conference.

Most of Vietnam’s outbound investments flow into Singapore in Q1

Vietnamese investors have injected nearly US$120 million into their projects overseas in the year to date, a sharp drop against the year-ago period, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

Millions of mobile phone numbers in Vietnam to be locked soon

After March 31, the owners of nearly two million mobile phone numbers cannot make calls or send text messages as their user data stored by telecom providers does not match the national population database.

Global minimum tax rate to impact FDI firms in Vietnam

At least 1,015 foreign direct investment (FDI) enterprises will be affected by the global minimum corporate tax when this policy comes into force early next year.


VN central bank to cut refinance rate in next quarter: UOB

Feature film shot in Vietnam to be released on Netflix

Beautiful scenes of Vietnam and its people can be seen in the first official trailer of the movie "Tourist's Guide to Love".

Vietnamese badminton stars leap up world rankings

Several of the nation’s top badminton players have made significant jumps in the world rankings, according to the latest information given by the Badminton World Federation (BWF).

Paintings by local contemporary artists exhibited in UK

An exhibition displaying artworks from leading contemporary Vietnamese artists opened on May 29 at D-Contemporary gallery in Mayfair, one of London's premier shopping and entertainment centres.

Da Nang’s boat race attracts locals, tourists

Thousands of people and tourists stood on both sides of the Han River to cheer for teams participating in Da Nang’s boat race 2023, which took place on the morning of March 29.

VN central bank calls for prioritising loans for rice industry

The State Bank of Vietnam (SBV) has instructed credit institutions in the Mekong Delta region to promote lending to rice producers and traders to help them have sufficient capital, especially in the winter-spring harvest in 2023.

Around 60,000 firms close in first quarter

Roughly 60,000 Vietnamese enterprises closed their doors in the first three months of this year, representing an on-year increase of 17.4 percent.

Green offices remain key theme in HCM City commercial real estate

A flight to quality will remain a key theme in the HCM City office market in 2023 as both foreign and domestic companies are setting ambitious net-zero targets to comply with environmental, social and corporate governance (ESG) regulations.

Vietnam expected to export 7 million tonnes of rice this year: Ministry

Vietnam is expected to ship about 6.5-7 million tonnes of rice abroad this year thanks to the return of markets like Indonesia, Bangladesh, and China, according to the Ministry of Industry and Trade (MoIT).