The finance, banking and insurance sector attracted US$141.94 million in foreign direct investment in March, according to the latest data from the Ministry of Industry and Trade. This included just 1 new project valued at US$2 million.
Breakdown by activity:
- No capital increases were reported for existing projects.
- 2 shareholding adjustments accounted for US$140 million, representing nearly the entire monthly total.
Vietnam’s banking and finance industry is a complicated beast. Vietnam’s growing economy has seen demand for banking, finance, and insurance services soar. However, the banking industry is also often used as a lever for managing the economy with pressure applied by the government to lower interest rates and to lend more, sometimes to the detriment of their long term sustainability.
See also: Banking in Vietnam: Industry Overview