The overall picture of the banking industry in 2020 and into 2021 has revealed both strengths and weaknesses. 

For many businesses, digital transformation is no longer an ambiguous concept, but a must. However, much still needs to be done to accelerate the process in Vietnam.

Bank officers' incomes, which include a monthly salary and bonus, have decreased significantly amid the Covid-19 crisis.

In the context of the digital economy, the financial institutions which pioneer the digitization process and run fast in the race will have long-term advantages over others.

Lower lending rates in the financial-banking market may not mean good things for the securities market, specialist Dao Phuc Tuong said.

Non-performing loans are still increasing despite slow credit expansion as the COVID-19 pandemic stretches many businesses to their limits.

The capital cost has never before been so low. In the interbank market, the VND overnight interest rate was 0.13 percent per annum on July 8, according to the State Bank of Vietnam.

Vietnam has seen a digital wave in the finance-banking industry, with many lenders investing significantly in digitisation, experts have said.

Applying drastic measures to cut costs and ease reliance on capital sources, commercial banks continued to make profits in the first half if the year, However, they have been warned of bad debts ahead.

According to Fitch Ratings, Vietnam is positioned to stand out among Asia’s frontier and emerging markets this year as a result of its economic resilience and success in bringing the novel coronavirus pandemic under control.

While the expansion of asset yields becomes more limited as the transition towards retail lending slows down and competition intensifies, the control of funding costs serves as a driver of interest income growth.

According to audited financial reports 2018 from 20 Vietnamese banks, the average monthly income of banking employees in 2018 were VND12.37 million-34 million (USD521.73-1,478).

Much is being done to take Vietnam's banking and finance sector into the digital age, according to industry insiders.