This Vietnamese Dong Tracker records the latest news and developments with respect to the local currency. It includes the current prices as well as State Bank of Vietnam monetary policy and open market operations including treasury bill issuances and interbank lending.

Vietnam central banks raises credit growth limit/target for 2025 to 16 percent

the-shiv January 2, 2025

Of note, whereas Vietnam in the first instance introduced credit growth limits to stymie out of control inflation, it has since reorientated credit growth policy to facilitate economic growth. This is seeing private debt rise rapidly along with bad debts as banks push lending on to consumers rather than due to growing demand.

Vietnam sees significant decline in new financial, banking, and insurance FDI in November

the-shiv December 23, 2024

Year-to-date (YTD), the sector has attracted a total of 6 new projects with US$122.1 million in newly registered capital, reflecting a decrease in investment activity compared to previous months.

State Bank of Vietnam increases credit limits for some of banks to meet 15 percent target

the-shiv November 30, 2024

This is an interesting decision with broad uncertainty around what might happen with respect to the US dollar when Trump assumes the presidency in January, though most economists are expecting a stronger dollar. Bad debts among Vietnam’s banks have also been rising and the country’s US dollar reserves have fallen below the IMF recommended three months worth of imports.

Bank at centre of Vietnam fraud case cuts withdrawal limits

the-shiv November 27, 2024

Saigon Commercial Bank, which was put under ‘special administration’ by the State Bank of Vietnam in October of 2022, has announced it will be limiting withdrawals to VND 10 million or about US$393 a day. This is down from VND 100 million or US$3,930 a day…

Vietnam FDI in finance, banking, and insurance doubles in capital

the-shiv November 18, 2024

Year-to-date, the sector has attracted six projects with a cumulative registered capital of US$121.42 million. The rise in capital highlights increased interest in Vietnam’s financial services landscape, as international investors recognise the potential for expansion in banking, insurance, and financial services…

Vietnam bank deposits reach new high in August

the-shiv November 18, 2024

Notably, withdrawals of said deposits could be problematic in that outstanding loans in Vietnam, as of the end of October, exceeded the volume of bank deposits by roughly 3.7 percent. This was reportedly putting liquidity pressure on banks which has become an ongoing theme in Vietnam’s banking industry this year. The issue, however, looks to be on the credit growth end rather than with respect to deposits…

Australia’s Commonwealth Bank off-loads another 10 percent of Vietnam’s VIB

the-shiv October 29, 2024

This comes after it was announced back in June that the Australian bank would be divesting from the company which VIB’s board of directors reportedly only learned about after the State Bank of Vietnam approved the move. The Commonwealth Bank held a 20 percent stake in the bank at the time.

Vietnam bank lending out pacing deposits creating ‘significant’ liquidity pressure

the-shiv October 24, 2024

The Founder of Integrated Financial Solutions, banking consultant Le Hoai An, has told the Vietnam Investment Review that bank lending outstripping new deposits by about 3.7 percent is putting liquidity pressure on Vietnam’s banks. He also notes that a fall in business bank deposits suggests businesses are becoming more heavily reliant on capital from banks…

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.