with maintaining high growth and macroeconomic stability, people's living
standards have improved significantly, including strong increase in income and
the demand for banking services. In the context of international economic
integration, the activities of credit institutions in Vietnam’s banking sector
has fundamentally altered both the quantity and quality. Accordingly, the
income structure of credit institutions (CIs) has a more reasonable transition
towards declining revenue from banking and credit operations and increasing
revenues from banking service activities.
the banking systems, the local banking sector has two tiers. The first tier is
SBV being responsible for conducting monetary policy and for supervision and
regulation of the banking system. The second tier includes commercial banks,
financial companies, credit co-operatives, people's credit funds, and insurance
companies. This Section focuses only on the commercial banks which consist of
State-run banks, joint stock banks, joint venture banks, foreign bank branches,
and foreign bank ROs.
Among all, foreign banks wishing to establish a presence in Vietnam has a choice of
four types, including joint venture banks, wholly foreign owned banks, foreign
bank branches and foreign bank ROs. All the applications for and registrations
in relation to those types are subject to the jurisdiction of SBV.
in terms of insurance sector in Vietnam, it has experienced an impressive
growth over the recne years. As a potential market, the insurance sector has
also grown rapidly in terms of market size. The number of companies has been
increasing. Forms of ownership in both life and non-life insurance are diverse.
In all three areas of human insurance, property insurance and civil liability
insurance, the competitiveness of the company is taking steps to better meet
the of customers’ needs.
insurance market has emerged with new products with combination of savings and investment
protection, such as insurance tariffs for personal accident using ATM cards,
insurance of livestock and poultry feed production… The growth in sales of
Vietnam's insurance is relatively high compared to that of the world and the
securities services, up to now, after nearly 20 years of operation, Vietnam
stock market has gained number of achievements. The systems of security
organization have developed rapidly in size and business capability, the
network of branches and transaction offices spread across major provinces and
cities in the country, providing easier access to the stock market.
According to foreign investors’ evaluation,
Vietnam is a potential land for financial services – banking and insurance
development. Also, financial - banking and insurance development potential in
Vietnam is still large; especially for banks and companies who are capable of
providing diverse channel transactions. Besides, the managing direction of Vietnam State Bank and Government's policies
have become increasingly open and to support the market through promotion of
economic activities and improve people’s living standard.