Banking and Capital Market
In the capital market, lending and borrowing activities, especially lending remained active in 2017. Accordingly, credit growth reached 18.24% at the end of the year, not met the target of 21% set by the Government. The deposit growth was much lower, reaching 14.98%.
The SBV issued Decision No. 1424/QĐ-NHNN, decreasing 0.25% per annum for fund rates and 0.5% per annum with interest rates in many economic sectors. Accordingly, all commercial banks adjusted lending interest rates to create opportunities for enterprises to access capital and reduce borrowing costs, which would boost production and business activities.
Regarding the monetary market, Vietnam’s credit at the end of 2017 was 135% of GDP, higher than other developing countries.
In the foreign exchange market, the application of new exchange rate regime of the SBV, which bases on a basket of eight reference currencies, made the central exchange rate no longer highly depend on the fluctuation of the US dollar.
In modern days, Vietnam’s commercial banks has been improving services, diversifying products and services, and strengthening the application of hi-tech to meet customers’ demands and to enhance their competition.
Vietnam’s top five banks by authorized capital
|Rank||Bank||Date of update||Authorised capital||Website|
|In VND, billions||In USD, billions|
(NOTE: Exchange rates as of 30 March 2018. Source: vn.exchange-rates.org. 1 USD = 22,781VND