VietNamNet Bridge - In order to keep the interest rate gap between the dollar and the dong attractive, the interest rates for dong have not been reduced.

The restructuring of three ailing banks, which the State Bank of Vietnam took over at zero dong, has begun. VND11 trillion is the amount of money that Ocean Bank, GP Bank and CB have to pay to depositors and use to expand their business.

VietNamNet Bridge - The State Bank of Vietnam (SBV) and the Ministry of Finance (MOF) are discussing a plan to withdraw overseas deposits of credit institutions to fund state investments.

VietNamNet Bridge - Though foreign banks have expanded their networks and presence in Vietnam, they still have a modest market share in Vietnam.

VietNamNet Bridge - In many people’s thoughts, restructuring banks means reducing the number of banks. How many banks will there be in Vietnam when the bank restructuring process is completed?

VietNamNet Bridge - The government has allowed the Vietnam Asset Management Company (VAMC) to buy bad debts with market prices in the primary market. However, the doors remain closed to the cash flow to the secondary market.

VietNamNet Bridge - Though the risk from exchange rate fluctuations continues, the Vietnamese stock market remains an attractive investment channel, analysts say.

VietNamNet Bridge - At least two financial institutions have predicted that the dong will continue depreciating against the US dollar.

VietNamNet Bridge - Big changes have happened to the Vietnamese banking sector over the last five years, with 2015 being the last year for the banking restructuring process, which began in 2011.

VietNamNet Bridge - The State Bank has not taken any drastic measures to force commercial banks to withdraw capital from other credit institutions, as requested. The aim was to reduce their ownership ratios to below 5 percent by the end of 2015.

VietNamNet Bridge - Vietnamese businesses are holding their breath waiting for the US FED’s decision to raise the prime interest rate increase, slated for September.

VietNamNet Bridge - Businesses and analysts have questioned the State Bank of Vietnam’s (SBV) statement that it would not devalue the dong any further until the end of 2015.

VietNamNet Bridge - Some private economic groups have shown their intention to join the bank restructuring process by injecting money into banks which are undergoing restructuring. 

VietNamNet Bridge - The time when Vietnamese businesses rushed to borrow US dollars to enjoy low interest rates is over.

The State Bank of Vietnam (SBV) has made a reasonable decision not to devalue the dong further as the continued devaluation will only benefit China, according to Dr. Bui Trinh and Dr. To Trung Thanh, experts on the Chinese economy.

Banks and businesses have begun selling dollars after an urgent meeting with SBV which affirmed that it would not adjust the dong/dollar exchange rate until the end of the year, and it would sell dollars to intervene in the market when necessary.

VietNamNet Bridge - If Vietnam devalues the dong sharply, regulatory agencies will find it difficult to implement the plan to slash medium- and long-term bank loan interest rates, and the public debt will become worse.

The State Bank of Viet Nam has said it would hold the exchange rate steady till the end of the year and also in the early months of 2016.

Dong A Bank, which was once of the best joint-stock commercial banks in Vietnam with advantages in card technology and retail banking, has gone downhill because of the gold trade.

VietNamNet Bridge - Analysts believe Merger & Acquisition (M&A) deals will be quiet for the rest of the year, while deals under negotiation will complete necessary procedures.