Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
WorldOctober 1 2014

Vietnam looks to state bank overhaul to stem NPL problem

Mired in the fallout of global financial crisis, Vietnam’s banking sector is now entering a new phase, with the government prioritising the restructuring of state-owned banks as it strives to tackle high NPL levels and stabilise the economy. 
Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
Vietnam looks to state bank overhaul to stem NPL problem

In the beginning there was just one bank in communist Vietnam, and that bank was the central bank, the State Bank of Vietnam (SBV). Now there are about 40 state-owned, partly state-owned and private banks. The country’s banking sector is undergoing a major restructure with improved governance standards. The issue of high non-performing loans (NPLs) is being tackled and there has been an influx of foreign investment.

The first big initiative in Vietnam’s banking sector came in 1988 when the SBV hived off four former divisions, turning them into AgriBank (for agriculture), VietinBank (for industry), VietcomBank (for trade) and Bank for Investment and Development of Vietnam, or BIDV (for infrastructure), similar to China's model of state banking.

To continue reading, join our community and benefit from

  • In-depth coverage across key markets
  • Comments from financial leaders and policymakers worldwide
  • Regional/country bank rankings and awards
Activate your free trial