Vietnam’s banking sector should seek measures to regulate cryptocurrency and other digital assets, and mitigate the ‘dark side’ of technological advances, Prime Minister Nguyen Xuan Phuc requested on Tuesday. During these times of fast technological development, local banks should put those tasks on top of their agenda, in addition to continuously cutting lending interest, controlling inflation and resolving bad debts, the premier said during a meeting to kick-start the banking sector’s 2018 action plan in Hanoi. “The Fourth Industrial Revolution has brought about new issues such as cryptocurrency, which in turn creates new challenges for monetary policymakers, so the banking sector should proactively address these problems,” PM Phuc underlined. He recommended that the banking sector should soon develop a set of measures to regulate bitcoin, a digital currency that uses cryptography for security, and other electronic currencies and assets. “Banks should also boost the development of modern applications to catch up with the Fourth Industrial Revolution and ensure security, limit risks that come along with technology,” the PM added. In October 2017, the State Bank of Vietnam outlawed cryptocurrency as a means of payment, while the amended Vietnamese Penal Code, taking effect on January 1, also criminalizes the issuance, supply and usage of cryptocurrency. A woman accesses her account on a bitcoin ATM in Ho Chi Minh City. Photo: Tuoi Tre Resolving bad debts At Tuesday’s meeting, the prime minister also hailed the banking sector for their joint effort in several impressive economic performances Vietnam made last year, including a… [Read full story]
Vietnam’s banking sector has huge potentials for further growth with banking assets predicted to have compound annual growth rate (CAGR) of 22% in 2009-2013, Vietnam News Agency said, citing a report by the U.S. market research company RNCOS. Most of the Vietnamese are still unfamiliar with banking services and use traditional ways of saving money and financing their needs, RNCOS explained for its prediction on higher growth of the sector. RNCOS said in the report “Vietnam Financial Sector Forecast to 2013” that the country’s banking sector remains underdeveloped compared to others in the regional economies like India and China despite unprecedented…... [read more]
ABA Chairman Daniel Wu speeks at the 33rd ABA Meeting and Conference held in Quang Ninh Province (Photo coutersy of Vietcombank)Quang Ninh (VNA) – The banking sector is committed to continuous improvements in customer service, applying advanced technology and enhancing its operational, financial and managerial competencies, said Le Minh Hung, Governor of the State Bank of Vietnam. Addressing an Asian Bankers Association (ABA) Meeting and Conference in northern Quang Ninh province on November 11, Hung said that in context of intensifying international integration, globalisation and trade liberalisation, Vietnam has constantly tried to renew its banking sector.... [read more]
NDO – Prime Minister Nguyen Xuan Phuc has urged the banking sector to pay adequate attention to communication work and public trust building, which he said, are of extreme significance to favouring its regulation work and ensuring the success of its policies. The government leader made the request at a conference held by the State Bank of Viet Nam (SBV) in Ha Noi on January 5 to deploy its tasks for 2017.He praised the banking sector’s outstanding contributions to the country’s positive outcomes across the fields in 2016, with the nation’s foreign exchange reserves hitting a record high of US$41…... [read more]
Vietnam’s banking sector needs to be reformed amid economic recovery and investment inflow surge despite its high growth over the past years, specialists said at a conference titled “Financial and Banking Reform.” The two-day conference was co-organized by the Vietnamese Ministry of Finance and Euromoney magazine under Euromoney Institutional Investor PLC (UK) in Hanoi on Nov 30. Most participants at the conference urged Vietnam to accelerate the reforms in banking and finance sector from next year. Dominic Scriven Obe, director of Dragon Capital Group Limited, said Vietnam needs to finish and issue the Law on State Bank of Vietnam and the Law…... [read more]
The Investors Service Moody’s has just released its assessment on credit rating of Vietnam as B1, meaning the country’s credit profile condition is relatively stable with moderate chance of default. This was supported by the country’s robust economic growth and diversified economy, said Moody’s. Vietnam, however, is susceptible to event risk, which is driven by banking sector risk. While the sector's operating environment has stabilized, there remain inadequate capital levels and high asset quality risks. The acceleration of loan growth by 25 percent in 2015, from 16 percent in 2014 also contributed to the weaknesses of Vietnam’s banking system. As of June,…... [read more]
