State of Vietnamese Banks 2023: Setting foundation stones for building the best-in-class banks

Summary

The State of Vietnamese Banks 2023 report provides a comprehensive analysis of Vietnam’s banking sector as it lays the groundwork for building best-in-class banks. Focusing on the evolving landscape, the report examines how Vietnamese banks are responding to economic headwinds, shifting credit demand, and regulatory changes. It explores the impact of slowed economic growth, the State Bank of Vietnam’s credit growth targets, and the role of overseas investment in strengthening capital adequacy. Key topics include the rise in non-performing loans, the absence of a regulatory framework for digital-only banks, and the sector’s ongoing digital transformation—highlighting developments in mobile banking, e-KYC, QR code payments, and virtual assistants. The report also investigates the potential of buy now pay later (BNPL) services, open banking, and fee-based income as new growth avenues. Detailed case studies of leading banks such as BIDV, VietinBank, Vietcombank, Techcombank, and Vietnam International Bank illustrate best practices in digital banking, SME services, and customer engagement. The report addresses critical questions: How are Vietnamese banks adapting to economic and regulatory pressures? What strategies are being used to drive digitalisation and financial inclusion? How can banks capitalise on emerging trends like BNPL and open banking? What are the prospects for the sector in 2024 amid inflation and global uncertainties? This report is essential for banking professionals, investors, and technology providers seeking to understand the challenges and opportunities shaping the future of banking in Vietnam.