The banking and finance sector in Vietnam has plenty of room to develop, however, there is a lot happening already. In this section, we look at banking and finance regulations in Vietnam, lending, finance, and monetary and fiscal policy.

Gelex Electric: Vietnam Stock Overview

Huong Nguyen August 28, 2024

Of note, in August 2024, 300 million shares in Gelex Electric were officially listed on the Ho Chi Minh Stock Exchange under the ticker GEE. Previously, the stock had been traded on the Unlisted Public Company Market…

Vietnam’s VinPearl issues new US dollar bonds in Singapore at 9.25 percent

the-shiv August 28, 2024

Vinpearl is a prominent tourism and entertainment conglomerate in Vietnam. Its well-known for its resorts, amusement parks, and cable cars. The company is also a part of Vietnam’s biggest conglomerate, VinGroup. Over the last few years, Vingroup has been struggling to develop its electric car arm, VinFast. The subsidiary reportedly lost US$2.4 billion last year with heavy losses continuing into 2024.

Vietnam Stock Market Indexes: Ultimate Guide 2024

the-shiv August 23, 2024

Vietnam stock market indices are many and varied. Each gives a unique glimpse into how Vietnam’s stock markets are performing both in isolation and in the context of the wider world. This overview of each of these key Vietnam stock market indexes should provide a broad understanding of those key indexes and how they are compiled. Changes to the index can also be followed via the Vietnam Stock Market Tracker.

Vietnam Stock Review: Techcombank

Huong Nguyen August 22, 2024

In 2023, pre-tax profit and total operating income went on to decline by 10.5 percent and 1.2 percent year-over-year, respectively, mostly due to rising interest costs on deposits outpacing income from lending. This was common among many banks that had aggressively mobilized capital at high interest rates in late 2022 but subsequently struggled to lend after the housing bubble bursting in October of that year. That said, 2023 was a better year, with the stock price rising 45 percent from November 2022 to December 2023.

Delistings grow for Vietnam’s key stock exchange

the-shiv August 22, 2024

Delisted stocks are moved to the Hanoi Stock Exchange or Unlisted Public Companies exchange, but trading on these platforms can be risky. Due to limited information and a smaller trading pool, they can be more susceptible to speculation and price volatility. This can make it challenging to accurately assess a company’s value and increase the risk of investment losses.

Two Vietnam stocks in, two out in frontier markets index review

the-shiv August 14, 2024

MSCI has removed Vietnam’s EVN Finance and Petrovietnam Nhon Trach shares from its Frontier Markets Index as part of its August Index Review. On the flip side, it has added Vietnam’s Binh Duong Water and Nam A Bank to the index. Of note, Vietnam’s stock market indexes have been in the news a lot lately as the country pushes for an upgrade from a frontier to an emerging market. There are, however, a number of obstacles still standing in the local bourse’s path before an upgrade can be made.

Insurance in Vietnam: Industry Overview 2024

the-shiv August 13, 2024

Vietnam’s insurance industry has grown rapidly in recent years. As incomes have risen and Vietnam’s middle class has begun to accumulate valuable assets, the need for insurance has become readily apparent. This rapid rise of insurance products in Vietnam, is also partially attributable to several types of insurance being compulsory by law. This includes for motor vehicle owners and businesses in the construction sector.

The Vietnam Stock Exchange: Ultimate Guide 2024

the-shiv August 12, 2024

Stock trading in Vietnam is a relatively new phenomenon. As a result, there are only a few products, with trading on Vietnam’s key stock exchanges generally limited to the basic buying and selling of stocks and bonds. That said, reforms are being passed frequently and Vietnam’s key stock exchanges are slowly moving to be more in line with international stock market standards.

Elevated Vietnam banking bond issuances continue in July

the-shiv August 10, 2024

Of note, back in 2022, the construction sector dominated bond issuances, accounting for about 52.30 percent of bonds issued by the end of July that year. Banking on the other hand accounted for just 2.17 percent. At the end of July this year, however, banking accounted for 67.2 percent of the bonds issued whereas construction accounted for just 2.8 percent.

Banking in Vietnam: Industry Overview 2024

the-shiv August 8, 2024

Banking in Vietnam is evolving and in many ways putting banking in Vietnam at the forefront of consumer banking product development. That said, the banking industry in Vietnam is among the most heavily regulated sectors. Not only that, core tenets of international banking often do not apply in this rapidly developing nation. With this in mind, it is fairly safe to say that, when it comes to banking in Vietnam, the country is carving out a unique path of its own.

Bad debts continue to skyrocket at most Vietnam banks

the-shiv August 8, 2024

Of 29 of Vietnam’s biggest banks, 27 had recorded an increase in bad debt at the end of June, Mekong ASEAN has reported. Between them there was VND 46,719 billion or US$1.86 billion in bad debts, an increase of 20.8 percent compared to the end of 2023. Of note, back

Vietnam’s VinHomes jumps on buyback news but foreigners exit stock en masse

the-shiv August 7, 2024

Foreign investors, however, followed their own path, using the increased local demand to net-dump 1,935,886 shares worth around US$72 million. This has further diminished foreign ownership in the firm–at the start of last year foreign investors held about 24.30 percent of Vinhomes shares, that number has since come down to just 15.08 percent. ..

Vietnam’s Financial Sector for Foreign Firms 2024

the-shiv August 6, 2024

Vietnam’s financial sector accounted for about 4.09 percent of Vietnam’s GDP in 2023 this was down from 4.76 percent in 2022. From banking to insurance to bonds to stocks financial services and financial products have expanded rapidly in the last decade. There is, however, lots of room for the sector to grow and tangents still to develop.

Vietnamese dong undervalued by 33.3 percent: Economist Big Mac index

the-shiv August 6, 2024

Of note, since the start of the year, the Vietnamese dong has only devalued against the US dollar by about 4.5 percent since January 1. This has been on the back of efforts by the State Bank to keep the local currency from devaluing further against the US dollar by issuing treasury bills and burning through its US dollar and gold reserves…

Former head of Vietnam’s FLC Group sentenced to 21 years in jail for fraud

the-shiv August 6, 2024

Prior to Quyet’s arrest, FLC had been a major real estate developer in Vietnam. The company had properties all over Vietnam as well as an airline–Bamboo Airways–with Quyet at one point reportedly a US dollar billionaire. Well known in Vietnam–idolised by some for his business savvy–his arrest drew a lot of media coverage and his trial has too.

Vietnam credit growth reaches 6 percent to June

the-shiv July 26, 2024

Of note, last year, credit growth limits languished for the better part of the year. In October, however, when it became clear that the same 14 percent credit growth target would not be hit, Vietnam’s banks embarked on some very aggressive marketing campaigns. Rising bad debts in the first six months of this year, however, could suggest there were some quality issues with these loans.

Vietnam bad debt hits 6.9 percent

the-shiv July 25, 2024

Of note, pursuant to amendments to Circular 39 made in June, loan applications for less than VND 100 million or about US$4,000 no longer need to detail a plan for the borrowed funds. Also back in November and December of last year, to meet annual credit growth targets, Vietnam’s banks embarked on some pretty aggressive lending campaigns that saw credit growth jump considerably but in what looked like mostly consumer loans. It could be that some of these loans are now turning bad…

What Does a Devalued Yen Mean for Vietnam?

Mark Barnes July 24, 2024

Earlier this year the Japanese yen hit a 38-year low against the greenback and it’s currently sitting about 15 percent lower now than it was at the start of the year. Similarly, the Vietnamese dong took a big fall but has been propped up by the State Bank which has by extension kept the local currency higher against the Yen too. This article looks at what that might mean for Vietnam…

Korean ratings firm enters Vietnam’s credit rating market

the-shiv July 23, 2024

This is part of a wider push to improve the quality of Vietnam’s corporate bond market after a number of high profile cases of fraud were revealed. For example, in 2022, Hanoi-based developer of luxury apartment projects, Tan Hoang Minh, was alleged to have defrauded investors of up to VND 10 trillion though corporate bond issuances…

Finland’s PYN Elite fund names embattled Vietnam Airlines stock pick of the month

the-shiv July 13, 2024

The fund doesn’t really give any clear reasons for making this call but does note that the government gave the airline an extension on a US$160 million loan. It should be noted, however, that this was to avoid insolvency with the airline currently operating on negative equity. It also should have been delisted from the HoSE years ago, however, the government intervened to stop that from becoming a reality. In light of this, naming Vietnam Airlines as the stock of the month is an interesting decision to say the least…