Banking & Finance

Minister of Finance Ho Duc Phoc has said that Vietnam’s financial market is developing towards striking a balance between the money market and the capital market and between the stock market and the bond market, making an important contribution to restructuring public debt.

Prime Minister Pham Minh Chinh has asked the Ministry of Finance to review and amend inadequate existing regulations, strengthen sanctions on violations of the law on the stock market to protect investors, and urgently introduce measures to upgrade Vietnam’s stock market from frontier market to emerging market status.

Chairing an April 22 conference on developing a safe, transparent, and efficient capital market to stabilize the macro-economy and ensure major economic balances, Prime Minister Pham Minh Chinh affirmed that the government will strictly handle violations in the market to protect the interests of investors and businesses and will support its fast and sustainable development.

In a meeting with the Deputy Governor of the State Bank of Vietnam (SBV), Mr. Pham Thanh Ha, Mr. Zafer Mustafaoglu, Director of the World Bank (WB)’s Department of Finance, Competition and Innovation in East Asia - Pacific, affirmed that it stands ready to support the SBV to develop a modern, inclusive, and resilient financial and banking sector, and supports the central bank in digital transformation, perfecting a legal framework on green credit and banking, and joining the Network for Greening the Financial System (NGFS).

Banking stocks are highly regarded by experts, analysts, and most securities companies thanks to the expectation of solid profit growth in 2022. Yet these stocks have begun to take a downwards turn. According to experts, banking stocks grew quite well in the first half of 2021 but there is no longer any momentum. And most leading banks have run out of foreign ownership space.

Along with network expansion, many banks in Vietnam are focusing on developing human resources, especially highly-qualified human resources, to respond to technology 4.0. According to figures from the State Bank of Vietnam (SBV), 95 per cent of credit institutions have been developing and implementing digital transformation strategies.