Vietnamese banks embrace international integration

This has created great pressure on domestic banks in Vietnam. However, Vietnamese banks have shown improved performance in the face of greater competition. 

Czech Petr Necas has worked for many international financial corporations in a variety countries. At the moment he is the Chief Strategy and Corporate Development Officer at Techcombank.

There are about 16 banks with international financial experts on their management and 12 banks having international strategic shareholders. This is seen an improvement in the management of the Vietnamese banking system, including human resources and application of new technology. For instance, the inter-bank electronic payment system has created tighter links between100 credit institutions, going some way towards meeting consumer demand for faster transactions and payments.

Vietnam has 83 wholesale and 97 retail banking products, and an interconnected ATM system which is attempting to promote non-cash payments. Vietnam has officially participated in the ASEAN Economic Community, and therefore the payment system needs to focus on links with other international organisations.

According to leading finance publication, The Banker, there are about 11 Vietnam banks ranked in the top 1,000 banks internationally. The State Bank has provided positive changes in the financial infrastructure, and improved transparency in the banking system. This has helped Vietnam’s banks to improve their competitiveness and boost further co-operation with foreign partners.