VIETNAM BANKING INDUSTRY
   Banking operations in the first months of 2019 achieved many remarkable results. Credit has gradually been controlled more strictly, as of the first 9 months of 2019, credit reached 8.4% – approximately over the same period of 2018. The situation of deposit interest rates as well as lending interest rates was relatively stable. Thanks to Resolution 42, the debt collection rate has increased greatly and the bad debt ratio in the economy has been reduced.
   As of 8 months of 2019, the total assets increased by 6.77% compared to the end of 2018. The CAR index went on a downward trend from 13.22% (2014) to 12.14% (2018) and 12.9% ( August, 2019). Besides, according to the data of the State Bank, by the end of August 2019, the total equity and charter capital of the whole system had slight fluctuations compared to the end of 2018, relatively increased by 7.44% and increased by 2.7%. The liquidity of the banking system remained relatively stable.
   2019 is forecast to be a difficult year because of many fluctuations from the world as well as internal market of Vietnam’s banking industry. The intrinsic nature of the banking system still has many unsolved problems in the short term. Besides, there are also abnormal fluctuations from the global financial market under the impact of the US-China trade war and FED’s monetary tightening schedule. In addition, the pressure from the CTPPP agreement for banks is also growing when foreign investors participate more deeply and intensely, compete fiercely with domestic banks.

Abbreviations
Report summary
   1. Business environment
1.1 International context
1.1.1 Overview of the world economic situation
1.1.2 Evolution of the world economic situation
1.2 Domestic context
1.2.1 Domestic macroeconomic overview
1.2.2 Situation
1.3 Policies of ministries, branches and the government
1.3.1 Objectives of macroeconomic policies in 2018
1.3.2 Policies of ministries, departments and the government
1.3.3 Policies of the State Bank
1.3.4 Impact of Trade Agreement
   2. Assessing the performance of the banking industry
2.1 Operations of world banking system in the world
2.1.1 Outstanding policies of central banks over the world and in the region
2.1.2 Evolutions of some currencies in the world
2.1.3 Interbank interest rate movement of some countries in the world
2.2 Some basic indicators of Vietnam’s banking industry
2.2.1 Mobilization and lending
2.2.2 Interest rates and exchange rates
2.2.3 Balance of payments
2.2.4 Total means of payment
2.3 Operation of the Vietnam Central Bank
2.3.1 Interest rate
2.3.2 Exchange rate
2.3.3 Open market
2.3.4 Reserve requirement
2.4 Operation of Vietnamese commercial banking system
2.4.1 Overview of banking operations
2.4.2 Develop the bank’s network and payment system
2.4.3 Forecast
   3. Typical banks
Appendix

Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank)
Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank)
Bank for Investment and Development of Vietnam (BIDV)
TienPhongBank (TPBank)
Asia Commercial Bank (ACB)
Vietnam Maritime Joint – Stock Commercial Bank (MSB)
Vietnam International Commercial Joint Stock Bank (VIB)
The Vietnam Technological and Commercial Joint Stock Bank (Techcombank)

List of Figures:
Figure 1: Economic growth and commodity prices, 2010-2020e
Figure 2: Global economic growth, 2011-2019f
Figure 3: Economic growth in ASEAN, 2013 – 2020f
Figure 4: GDP of ASEAN countries, 2018
Figure 5: Global inflation rate and in some economic regions, 2012 – 9M/2019
Figure 6: Inflation rate in some countries and in the region, 2014 – 2019e
Figure 7: Economic growth rate (%), 2014 – 9M/2019
Figure 8: The proportion of Vietnam’s GDP by economic sector,
2014 – 9M/2019
Figure 9: Total retail sales of consumer goods and services, 2014 – 9M/2019
Figure 10: Overall consumer price index and commodity groups in CPI basket, 9M/2016 – 9M/2019
Figure 11: Some macroeconomic indicators of Vietnam, 2014 – 9M/2019
Figure 12: Some macroeconomic indicators, 9M/2016 – 9M/2019
Figure 13: Value of foreign direct investment, import and export of goods, 2014 – 9M/2019
Figure 14: Growth of foreign direct investment, import and export of goods, 9M/2016 – 9M/2019
Figure 15: Interest rate movement according to FED Funds Rate, 2008 – 9/2019
Figure 16: Interest rate of Japan Central Bank, 2008 – 9/2019
Figure 17: Interest rate of European Central Bank ECB, 2008 – 9/2019
Figure 18: Interest rate of PBOC bank, 2008 – 6M/2019
Figure 19: USD Index, 1/2015-9/2019
Figure 20: Interest rate movements of the world interbank market, 2014 – 9/2019
Figure 21: Total means of payment, mobilization and credit balance, 2014 – 7/2019
Figure 22: Credit ratio compared to mobilized capital (LDR), 8/2016-9/2019
Figure 23: Structure of credit outstanding, 7/2019
Figure 24: Average interbank VND/USD exchange rate, 2016 – 9/2019
Figure 25: Average deposit and lending rates, 2012-2018
Figure 26: Marginal interest income ratio, 2012 – 2019f
Figure 27: Balance of payments, 2011 – 2018e
Figure 28: Total means of payment, 2014 – 7/2019
Figure 29: Structure of total payment means, 2014 – 7/2019
Figure 30: Operating interest rate of SBV, 1/2010-9/2019
Figure 31: Exchange rate management behavior of the State Bank, 2016 – 9/2019
Figure 32: Interest rate – term of pledge and treasury activities
on OMO market, 2014 – 2018
Figure 33: Required reserve ratio by type of credit institution and currency
Figure 34: Credit growth in the first 6 months, 2014-2019
Figure 35: Current situation of consumer loans, 2015 – 2018
Figure 36: Interbank interest rates, 2012 – 9/2019
Figure 37: Property system, ROAA and ROAE of commercial banking system,
2014 – 2018e
Figure 38: Some indicators of the whole system are classified by types of
credit institutions, 6/2019
Figure 39: Comparison of ROA criteria of credit institutions of
some countries, 2014 – 2018e
Figure 40: Comparison of ROE criteria of credit institutions of
some countries, 2014 – 2018e
Figure 41: Indicators to ensure liquidity according to credit institutions, 8/2019
Figure 42: NPL ratio, 2012 – Q2/2019
Figure 43: Provision for credit losses, 2013 – 2018e
Figure 44: Minimum capital adequacy ratio, 2012 – 2018e
Figure 45: Network structure by type
of bank, 2016
Figure 46: Structure of transaction points by region, 2016
Figure 47: Ability to contact transaction points, 2016
Figure 48: Bank access rate, 2018
Figure 49: Development of payment equipment, Q2/2014 – Q2/2019
Figure 50: Development of payment system, Q2/2014 – Q2/2019
Figure 51: Non-cash payment, Q2/2015 – Q2/2019
Figure 52: Total asset, 2017 – 2018
Figure 53: Debt ratio, 2017 – 2018
Figure 54: Self-financing rate, 2017 – 2018
Figure 55: Deposits and loans to customers, 2017 – 2018
Figure 56: Bad debt ratio, 2017 – 2018
Figure 57: Net interest income, 2017 – 2018
Figure 58: Net profit from service activities, 2017 – 2018
Figure 59: Profit from forex trading, 2017 – 2018
Figure 60: Profit from securities trading activities
investment, 2017 – 2018
Figure 61: Risk reserve ratio, 2017 – 2018
Figure 62: Profit after tax, 2017 – 2018
Figure 63: Profit rate, 2017 – 2018
Figure 64: NIM, 2017 – 2018

List of tables
Table 1: The world’s basic commodity price index, 2017 – 2019f
Table 2: Value of economic growth, 2014 –9M/2019
Table 3: Growth of retail sales of consumer goods and services,
9M/2018 – 9M/2019
Table 4: Price of some items, 6M/2018-6M/2019
Table 5: Interest rate of Fed Funds Rate, 2008 – 9/2019
Table 6: BOJ interest rate, 2008 – 9/2019
Table 7: ECB interest rate, 2008 – 9/2019
Table 8: PBOC interest rate, 2008 – 6/2019
Table 9: Exchange rate of some currencies in the world June 28, 2018-June 28, 2019
Table 10: Interbank interest rates in some world markets, 2014 – 9/2019
Table 11: Some performance indicators of the banking industry, 2014 – 7/2019e
Table 12: Credit outstanding for the economy, 2014 – 7/2019
Table 13: International payment balance, 2014 – Q2/2019
Table 14: Structure of total payment means, 2014 – 7/2019
Table 15: Some interest rate policies announced by the State Bank, 2014 – 9/2019
Table 16: Open market operations and auction of SBV bills, 2014 – 2018
Table 17: Required reserve ratio
Table 18: Some indicators of banking system, 2014 – 8/2019
Table 19: Bancassurance in Vietnam, 2017 – 2018