For more than a quarter century, Vietnam has been evolving from centralized state economy to a decentralized market economy. In the banking sector, there is relatively a high demand for strategic overseas partners to support management and technology. The banks in Vietnam suffer from problems of under capitalisation, and increasing cross-ownership among banks. One can expect the industry to face significant challenges primarily related to implementation of Basel-II and other international as well as local regulations.
Despite the challenges and difficulties, the industry has tremendous potential. Currently, banks in Vietnam are restructuring through mergers and acquisitions and retail banking is being bolstered.With a 60 percent of Vietnamese under the age of 35, customer group demand more convenient, consistent and accessible financial services. Hence banks will require more technological investment to engender new products and competiveness. Social media, mobile, analytics, and cloud technology would be a future trend to add value for retail investors. Further on, the next step for banks in Vietnam will have to function with in the new ASEAN Economic Community and keep up with regional integration in the next five years.
The Asian Banker’s inaugural Future of Finance, Vietnam will highlight innovative developments taking place in the Vietnamese banking landscape and display best practice examples from the region.
Click here to learn more about the event and register.
Hanoi | January 12, 2017