The State Bank of Vietnam predicts remittance flows to Vietnam to reach some US$13-14 billion this year, much lower than the previous estimate by the World Bank at US$16.7 billion.

Real estate firms are seeking new sources of capital as commercial banks have tightened lending.

The State Bank of Vietnam has said it would continue to direct credit institutions to control credit in potentially-risky areas such as real estate and securities, especially Build-Operate-Transfer and Build-Transfer transport projects.

Several local banks have reduced their interest rates in recent days, going against the banking sector’s general year-end trend of increasing rates to boost earnings.

Vietnam’s forex reserves had reached $73 billion, equal to the value of 14 weeks of imports, as of October 31.

Vietnam’s credit growth is projected to fall below the 14% target set for this year by the State Bank of Vietnam (SBV), due to lower-than-expected lending to businesses in the industry, construction and telecommunications sectors.

The number of companies which listed shares or are planning to list shares in 2019 remains very modest.

Regulators are working to finalise the sandbox for healthy market development, accelerating economic growth that will help Vietnamese fintech companies bloom.

It is expected that kieu hoi (overseas remittance) will continue to flow into Vietnam, especially HCM City, which receives 50 percent of total remittances.

The warning about risks of funding BOT (build-operate-transfer) projects given two years ago is becoming a reality.

Q3 finance reports show that a series of banks had unsatisfactory results in foreign exchange trading or took losses.

As of present, just 40% of citizens in Vietnam have bank accounts. However, 90% of daily transactions are conducted in cash, while the rate goes up to 99% for transaction worth under VND100,000 (US$4.34).

The slow growth comes mainly from state-owned banks, which have become more stringent on their loan disbursements.

Outstanding loans to the real estate sector have been increasing steadily although Vietnam has been keeping tight control over lending.

The time to apply standards in accordance with Basel II is nearing and commercial banks are rushing to raise chartered capital.

The Government will continue to tighten credit in the real estate industry.

Commercial banks are rushing to issue bonds to balance short-term and long-term capital, and ensure their capital adequacy ratio.

With great advantages being held by foreign banks, Vietnamese banks find it difficult to compete.

Large banks as well as smaller ones are seeking foreign investors in today's competitive market.

The level of dollarization of an economy is based on the ratio of foreign currency deposits to total money supply (M2), or total deposits; and the ratio of outstanding foreign currency loans to M2, or total outstanding loans.