VietNamNet Bridge - Domestic banks are struggling to compete with foreign banks, which are powerful in online payment technology, and with businesses applying online payment methods.

VietNamNet Bridge - When the ASEAN Economic Community takes effect, Vietnam will have to allow up to 70 percent of foreign ownership ratio in Vietnamese banks.

Banks in the last three years have rushed to provide retail banking services, encouraged by the increased spending of middle-class income earners. Fifty-three percent of the 95 million population are of working age.

 The State Bank of Vietnam (SBV) Operation Centre adjusted the reference exchange rate between the Vietnamese dong (VND) and the USD up by 90 VND on the morning of December 15.

VietNamNet Bridge - While economist warn that state-owned enterprises’ debts will pose a threat to national financial security, SOEs say that the big debts have been unavoidable.

 The State Bank of Viet Nam (SBV) will reduce the reserve requirement ratio for banks that take part in the restructuring of the banking system.

VietNamNet Bridge - BT (build, transfer) is an attractive investment mode because the regulatory law is unclear. With BT, projects can be implemented after the two sides reach agreement. 

VietNamNet Bridge - Only commercial banks which have successfully reduced bad debt ratios to below 3 percent of their total outstanding loans will be allowed to open new branches.

The irrecoverable debts of 12 Vietnamese commercial banks by September 30, 2015 had reached VND23.522 trillion, which accounts for 65 percent of bad debts, representing a 15 percent increase from the 50 percent reported in mid-2015.

 VietNamNet Bridge – The Civil Code (revised), adopted by the National Assembly on November 24, states that negotiated interest rates must be controlled under 20 per cent per year, excluding loans stipulated in other laws.

VietNamNet Bridge - Commercial banks are sprinting to sell shares of other banks they are holding, so they will not be fined as warned by the State Bank (SBV).

While foreign finance institutions believe that Vietnamese bank shares prices are the most expensive in frontier markets, Vietnamese shareholders are distressed that bank share prices have not increased as expected.

VietNamNet Bridge - Many commercial banks in Vietnam are controlled by families. The concentration of power could be a danger if the owners abuse the power.

VietNamNet Bridge - The bank restructuring process has been going on for four years, but the proposals on tax incentives for banks are still pending.

Vingroup has spent huge sums of money to take over Maximark, while KIDO Group has decided to invest in Rong Viet Securities Company. Meanwhile, VTV national TV has announced it will withdraw capital from subsidiaries.

The number of commercial banks cut from 42 to 34 in the last four years when the banking system underwent a restructuring process, considered ‘major surgery’. No bank went bankrupt. 

VietNamNet Bridge - Legislative bodies have praised the State Bank of Vietnam’s (SBV) move to buy three weak banks at zero dong, but said the remedy should not be abused.

Many commercial banks, which have or plan to make merger and acquisition (M&A) deals in their restructuring process, have asked for the state’s financial support, saying that tax reductions will help them overcome difficulties.

VietNamNet Bridge - The Central Institute of Economic Management (CIEM) said that government debt of VND30 trillion to the State Bank of Vietnam (SBV) put pressure on monetary policy.

VietNamNet Bridge - Commercial banks are planning to take over finance companies to implement plans to develop consumer credit.