Total assets of credit institutions and foreign banks in Vietnam by the end of the first quarter of this year inched down 0.72 per cent to VND12.48 quadrillion (US$521.76 billion) compared with the end of last year.

Vietcombank’s completion of the sale of shares to foreign investors in early 2019 and BIDV’s action in late 2019 are expected to help attract foreign banks to Vietnam.

The completion of the sale of Vietcombank stake to foreign buyers in early 2019 and of BIDV at the end of last year may bode well for a comeback of foreign banks to Vietnam in 2020.

Credit has been growing steadily in the last nine months, helping commercial banks make fat profits.

VietNamNet Bridge - The sale of business divisions can be seen as a move by foreign banks to restructure their operations and focus on core business fields to improve business efficiency.

VietNamNet Bridge - In the last two years, Vietnam saw many foreign finance institutions leaving Vietnam or scaling down their investment.

VietNamNet Bridge - The number of 100 percent foreign owned banks in Vietnam has increased by twofold in the last two years to nine.

The lack of a common voice among managers, the changes in business strategies, and the weak role on the board of directors are some of the reasons foreign shareholders have left Vietnamese banks.

VietNamNet Bridge - The year 2017 saw a number of foreign investors leaving their Vietnamese partners and divesting from banks they once made every effort to develop.

VietNamNet Bridge - Two foreign bank names are in the list of top 10 taxpayers – HSBC and Shinhan Bank Vietnam. And both have strong retail banking divisions.

 Both foreign and domestic banks are racing to develop retail sale strategies in Vietnam, the 93-million-people country-a fertile land for banking retail business.

VietNamNet Bridge - Analysts believe that the current conditions for the establishment and operation of a Viet Kieu-invested bank in Vietnam are more favorable than 25 years ago.

VietNamNet Bridge - Though foreign banks have expanded their networks and presence in Vietnam, they still have a modest market share in Vietnam.

VietNamNet Bridge - More and more foreign bankers are flocking to Vietnam, while the existing bankers have been trying to expand their business in the country.

 VietNamNet Bridge – Decree 96 supplements some new violations including those related to the regulations on shares and stocks; fees for provision of services; trustee, fiduciary and interbank activities; payments, cash management and treasury;

 While local banks may prefer a foreign CEO, some foreign banks are now eyeing Vietnamese CEOs.

VietNamNet Bridge – Despite many barriers, foreign banks have been prospering in Vietnam, dominating many service market segments.

 Oman lifts ban on Vietnam poultry imports; Seafood exports reach $7.9b in 2014; Mobile devices market set for holiday pickings; Two more foreign banks to open branches in Vietnam; Low inflation leaves room for interest rate cuts

 VietNamNet Bridge – The health of the local banking system is falling, which is evident in its capital adequacy ratio (CAR) drop.