Vietnam has an exceptionally high GDP growth rate, but the prosperity has not spread across the country. GDP per capita in the two biggest cities, Ho Chi Minh City and Hanoi, reached $2000 in 2007 and 2010, respectively, in each case marking the first boom in real estate. Since then, GDP per capita has increased by 13% per year in both cities...
Robust economic growth, the easing of restrictions on foreign bank ownership and increasing technological sophistication have added to the dynamism of the Vietnamese banking sector in recent years, as the industry puts the mini-crisis of 2012 behind it.
When mentioning Vietnam’s capital market, most investors think of the VN-Index and the privatisation of state-owned enterprises, forgetting a promising fixed-income market. Vietnam’s debt market is larger than the equity one, and debt financing remains a major source of funds in Vietnam. Unlike equity market, the fixed-income market offers...
How is the Vietnamese banking sector adjusting to the Basel II recommendations and regulations?
Non-performing loans (NPLs) continue to be a challenge for Vietnam’s banking sector following the banking crunch of 2012. The government and the State Bank of Vietnam (SBV) have made the issue a priority. A key step was the creation of the Vietnam Asset Management Company (VAMC) in 2012. NPLs built up thanks largely to poor lending practices...
Strong economic growth and demographic change are catalysing the rapid expansion of Vietnam’s insurance sector, with premiums growing at double-digit rates and likely to do so for some years to come. Thanks to successive liberalising reforms since the 1990s, a range of foreign insurers and investors are benefitting from this growth, and competition looks set to grow as new entrants eye the...
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