VietNamNet Bridge – Governor Le Minh Hung of the State Bank of Vietnam (SBV) has called for foreign investors to participate in the restructuring of the banking system.

A panel discussion at the 33rd General Meeting and Conference of the Asian Bankers Association (ABA) in Quang Ninh Province last Friday – Photo: VCB News

Vietnam will press on with the reform of its legal system and improve its business environment to make business conditions more favorable for foreign investors, he said at an event last Friday.

At the 33rd General Meeting and Conference of the Asian Bankers Association (ABA) in Quang Ninh Province, Governor Hung said the restructuring of local credit institutions had been underway for the past five years, and that the central bank is doing a report on this restructuring scheme in the next five years (2016-2020).

“In the upcoming drastic reform, I would like foreign investors to participate more in the restructuring process,” he said.

In the process of reform and integration, positive changes have taken place in the banking system. Outstanding achievements such as improved legal and institutional frameworks, better supervision and management, and increased embrace of international standards have helped stabilize the macro economy, curb inflation and support growth.

Speaking at the event, Nghiem Xuan Thanh, chairman of Vietcombank and vice chairman of ABA, said: “Globalization has made countries more economically interconnected than ever, bringing both opportunities and challenges for banks across Asia, one of the fastest growing regions.”

The annual conference of ABA this year picked a practical theme “Asian Banks: Towards Global Integration” to give you the latest updates on trends, prospects, opportunities, challenges and helpful suggestions for regional banks to get better prepared for international integration, Thanh said.

Daniel Wu, chairman of ABA, and president and CEO of Chinatrust Financial Holding Co Ltd, said a lot of banks would be interested and eager to take part in the restructuring of the banking system in Vietnam.

Local banks currently have huge demand for new capital, especially when they are on the path to meeting Basel II standards, Thanh noted. From the experience of Vietcombank, he suggested that to attract foreign funds, local banks should first make their data transparent, set out strategic orientations and ensure profitability for foreign investors.

SGT