The Vietnamese banking sector has set a goal that at least one bank be ranked among Asia’s top 100 by late 2020.

This is one of the contents of the government strategy for Vietnam’s banking sector by 2025 and vision towards 2030.    

Under the strategy, at least 2-3 banks need to be named in the list by late 2025. It also to have 3-5 banks listed on foreign stock exchanges during the period.

The strategy is intended to make the State Bank of Vietnam responsible for monetary policy, inflation, support for macro-economy stability, and sustainable growth.

During the 2018-2020 phase, local banks will continue focusing on the restructuring process of weak banks, settling bad debts to ensure that the bad debt ratio stays under 3%.

From 2021 to 2025, efforts will be made to enhance competitiveness, transparency, and compliance with international standards in the management and operation of credit organisations.

Deputy Prime Minister Vuong Dinh Hue recently said that the Vietnamese government was speeding up the restructuring of the country’s credit institutions. He added that for commercial banks, the government encouraged mergers and acquisitions as Vietnam had too many small banks.

The government plans not to licence any more wholly foreign-owned banks in Vietnam, instead encouraging foreign banks to buy weak domestic banks, he added.

Lao Dong/Dtinews