BANKING SYSTEM IN VIET NAM

BANKING SYSTEM IN VIET NAM History & overview Co-operation Regulations & future perspectives Ranking & networking 1, History of banking system 1951-1954 1955-1975 1975 – 1985 1986 up to now Banking structure in Viet Nam State bank ( Central bank of Viet Nam ) Social Policy Bank of Vietnam StateOwned Commercial Banks (SOCBs) Joint Stock Banks (JSCBs) Wholly foreignowned banks Joint venture banks Credit union Social Policy Bank of Vietnam State-Owned Commercial Banks (SOCBs) Joint Stock Banks (JSCBs) Joint venture banks Wholly foreignowned banks Definitio n a non-profit bank offering full range of financial services to the poor at preferential terms and subsidized rates State-own majority governmentowned institutions that the government had initially established to fulfill a specialized lending function a comparatively small capital and deposit base and they have a more diversified shareholding structure than SOCBs banks which are established by fund of Viet Nam’s Banks and Foreign banks limited-liability companies, as distinct from corporations, partnerships (limited or general), and proprietorships organized by foreign nationals and capitalized with foreign funds Number of banks 33 5 Agribank, CTG, BIDV and VCB ,MHB Military Commercial Joint Bank (MBB), Vietnam Export Import Commercial Joint Stock Bank( Exim) , Asia Commercial Bank (ACB) …… Indovina Ban, Shinhavina Bank, VinaSiam Bank , VID Public Bank , Vietnam-Russia JV HSBC ANZ Bank, Standard Chartered Bank, Shinhan Bank, Hong Leong Bank Bank BANKING LAW SYSTEM The Law of State Bank (66 terms) The Law of Credit Unions (163 terms) TAX LAWS • • • • • • INCOME TAX VALUE ADDED TAX EXCISE TAX TARIFF TECHNOLOGY TRANSFER TAX FOREIGN WITHHOLDING TAX EXAMINATION & REFORMATION PROFESSIONAL INSPECTORSHIP CONSISTENCY WITH OTHER LAWS FREQUENCY RISK REFERENCE APROPRIALITY TREND COMBINATION SOLUTION SUPPORT Ranking and System Ranking System Central Bank ( Stated Bank of Vietnam) State-owned banks Stated-own commercial Commercial bank Joint Stock Credit Union Joint Venture Wholly foreignown Cross-Ownership in Vietnam Stated-own commercial bank network • • • • Vietcombank BIDV Viettinbank Agribank Collaboration in banking system in Vietnam Branches of Foreign Banks Role of foreign banks in Vietnam ● In other countries Role of foreign banks in Vietnam ● In Vietnam - There are wholly-owned foreign banks and 50 foreign bank branches in Vietnam - About 70-80 percent of the profit made by foreign banks comes from services, while credit makes up 10-15 percent → Outstanding advantages over domestic banks - More than 50 percent of VIP clients are foreign invested banks’ clients Trade agreements facilitate foreign ownership and investment ● Trade agreements: ➢Trans Pacific Strategic Economic Partnership (TTP) ➢Association of Southeast Asian Nations (ASEAN) ➢Free Trade Agreement with different countries Vietnam- a destination of foreign investment in South East Asian ●Only 20% of moremarket than 90 million citizens in Vietnam hold bank accounts ●3% of the population have credit cards → Opportunity for retail banking activity development in Vietnam ●SME and rural areas have had challenges to access bank investment and loan ●GDP growth of around 6% to 7% ●Low wage costs ... Vietcombank BIDV Viettinbank Agribank Collaboration in banking system in Vietnam Branches of Foreign Banks Role of foreign banks in Vietnam ● In other countries Role of foreign banks in Vietnam...1, History of banking system 1951-1954 1955-1975 1975 – 1985 1986 up to now Banking structure in Viet Nam State bank ( Central bank of Viet Nam ) Social Policy Bank of Vietnam StateOwned Commercial... Commercial Joint Bank (MBB), Vietnam Export Import Commercial Joint Stock Bank( Exim) , Asia Commercial Bank (ACB) …… Indovina Ban, Shinhavina Bank, VinaSiam Bank , VID Public Bank , Vietnam-Russia