M&A deal-making will probably increase at a steady pace in the second half of 2020, led by the upcoming mega deal of Vietnam’s leading brewer Sabeco.

Vietinbank (CTG) has approved a plan to sell 50 percent of its holdings in the bank’s financial arm Vietinbank Leasing Company Limited.

Vietnam is committed to allowing credit institutions of the European Union (EU) to hold up to 49% shares at two joint stock commercial banks in Vietnam when the European Union-Vietnam Free Trade Agreement (EVFTA) takes effect.

By March 17 noon, most of the commercial banks in Vietnam had lowered their interest rates on savings accounts with terms of less than 6 months after the State Bank of Vietnam (SBV) announced its policy rate cut a day earlier.

Credit growth of the banking system in the first two months of this year reached only 0.06 percent, slowing significantly against the 1 percent rate in the same period last year, due to impacts of the COVID-19 epidemic.

The Government has decided to allow Vietcombank and Vietinbank to increase their charter capital by 10 trillion VND (434.8 million USD) in the first quarter of this year, Deputy Prime Minister Vuong Dinh Hue said last month.

Total assets of commercial banks under state ownership accounted for 42.7% of the total in the banking sector, followed by joint stock commercial banks with 41.6%.

The International Finance Corporation (IFC) investor group is now no longer a major shareholder of the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), after selling more than 55.7 million shares of the bank.

2019 witnessed low credit growth rate.

The circular lists cases that credit institutions are granted a reserve requirement waiver or a lower reserve requirement ratio.

Fitch analysts were upbeat about continued strong economic growth in Vietnam, which makes near-term stress unlikely and underpins their stable outlook for the banking sector.

Vietnam is committed to opening the financial market to foreign investors, particularly in financial services.

Despite high costs, domestic banks are issuing more chip cards that meet EMV standards to replace magnetic strip cards in order to improve security and meet the central bank’s regulations.

The total assets of commercial banks under state ownership accounted for 43.4% of the total of the banking sector, followed by joint stock commercial banks with 41.4%.

The International Finance Corporation (IFC) remains a major shareholder of Vietinbank with a nearly 6.5% stake.

Vietnamese banks are following their corporate clients by expanding abroad. 

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

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

The Asian Banker continues to honour the 500 strongest banks in the Asia-Pacific in 2019 with some familiar names from Vietnam.