Under the amended Law on Credit Institutions, effective from July 1, 2024, commercial banks in Việt Nam are required to reduce the ownership ratios of organisations, shareholders, and related parties.

The State Bank of Vietnam has issued a directive urging credit institutions to accelerate credit growth from the early months of 2024, a pivotal step toward propelling economic growth.

The regulation under the amended Law on Credit Institutions was recently passed by the National Assembly and will take effect from July this year.

Many people have complained that they have had to take out insurance policies from banks in exchange for bank loans.

The appearance of Generative AI (artificial intelligence) has helped many finance companies and banks make great strides in customer service, operations, and new business models.

The settlement of bad debts will face many difficulties this year as there are no legal regulations related to repossessing collateral assets, industry insiders said.

According to the Ministry of Labor, War Invalids and Social Affairs (MoLISA), Vietnam sent around 155,000 workers abroad in 2023, an increase of 8.55% compared to 2022, the highest number ever.

Since the beginning of the year, numerous banks have launched attractive credit packages with low interest rates, some even as low as 0% per year, easing the financial burden for customers seeking additional capital.

Financial leasing has high potential in Việt Nam’s dynamic economy with more than 800,000 enterprises and more than 5 million business households.

According to financial statements of banks, the total net profit from securities investment of 12 banks in Q4 2023 increased by 195 per cent to more than VNĐ5.6 trillion, while trading securities also brought in more than VNĐ300 billion.

High demand during the Tet shopping season has prompted commercial banks to introduce credit offers worth hundreds of billions VND for consumers, said industry experts and insiders.

The USD/VND exchange rate has seen notable developments in the first month of 2024 when it increased significantly in both official and free markets.

A moderate exchange rate movement is forecast for this year.

Emerging trends in digital payment, artificial intelligence (AI) and sustainable development present both opportunities and challenges that could impact banks in Vietnam this year, according to experts.

Banks are set to continue their practice of paying stock dividends this year in order to bolster their capital and attract cash flow, driven by positive prospects.

The increasing risk of bad debt forces banks to sell secured assets, especially real estate, at discounts.

Ha Sy Dong, a National Assembly deputy from Quang Tri, said the State Bank of Vietnam (SBV) needs to be given more power to react promptly and effectively to banking incidents such as the one related to SCB.

Deposit interest rates at four major banks of Vietnam were adjusted sharply, down by 0.4% per year from the previous listings, bringing the rate to 1.8% per year at the lowest.

It is anticipated that there will be significant changes in the scale of the banking sector’s charter capital this year.

The average annual growth in the number of transactions via QR code has reached 471.13% since the payment method's introduction in 2018.