Already on the way to recovery after a crisis in 2012, Vietnam’s banks now face further challenges in the shape of the increased competition that integration of the Asean Economic Community will bring about.

Vietnam’s third trip to the international bond markets in a decade became one of the most oversubscribed Asian bond offerings ever.

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. 

The Greater Mekong Delta sub-region of Cambodia, Laos, Myanmar, Thailand and Vietnam has been posting stellar growth figures in recent years, and looks set to continue this trend. However, each country within the region has its own social, political and economic hurdles to overcome. Stefania Palma reports.

The relatively small economies of Vietnam and Cambodia are punching above their weight in terms of growth in The Banker’s latest Association of South-east Asian Nations ranking. Meanwhile, Singapore’s banks retain their dominance in the ranking in terms of Tier 1 capital. 

The Vietnamese government's campaign against inflation promises to rivet international attention on the country’s economic stability and development path in the run-up to the Asian Development Bank annual meeting in Hanoi in early May. 

Bank lending is being used as a direct and often blunt lever by which to manage Vietnam's economy, proving a critical first defence against the global economic slump. But the medium-term consequences of over-interference may be another bubble, warn analysts. Writer Michelle Price

Vietnam's large unbanked population and its growing middle class present a major opportunity for local and foreign banks alike, who see vast potential in the country's underdeveloped retail banking and consumer finance sectors. Writer Michelle Price