SBV welcomes foreign investors in banking sector

May 11, 2016 | 10:00

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The State Bank of Vietnam (SBV) hopes to see more involvement by foreign investors in the restructuring of domestic banks.

Le Minh Hung, governor of the State Bank of Vietnam, made a statement today at the opening session of the Asian Banker Summit. “The SBV will apply international standards to banks in Vietnam and ensure fair competition, as well as the easy participation of foreign investors in the sector,” he said.

According to Hung, Vietnam has been integrating deeper into the world economy. The most recent and most important landmarks are the establishment of the ASEAN Economic Community and the signing of numerous trade pacts, the most notable of which is the Trans-Pacific Partnership Agreement.

“International integration is an opportunity, but it creates a lot of pressure on Vietnamese banks because they have to improve themselves, make themselves more efficient and more competitive,” Hung said. “The government has been improving its capacities in the inspection, supervision, and management of the banking sector and in building policies for the sector, as well as pushing the resolution of bad debts.”

The Asian Banker Summit is a platform for international business people to better understand Vietnam’s banking system and help Vietnamese banks find foreign partners. Cooperation with foreign partners is a chance for Vietnamese banks to not only attract capital, but also gain experience in governance and update themselves on technology in the field, which is very important in the context of Vietnam’s increasing global economic integration.

Addressing the event, Prime Minister Nguyen Xuan Phuc said that the Vietnamese government would continue the restructuring of its banking system, resolve bad debts, and make banks more efficient.

“The Vietnamese government commits to controlling inflation and ensuring macroeconomic stability, as well as to make sure that it is easy for all people to do business and that private companies become the real drivers of socioeconomic growth,” he told summit participants.

This is the second time Vietnam hosted the Asian Banker Summit. This year’s participants included 1,000 delegates from leading financial institutions and banks from about 30 countries in Asia and developed countries, including Standard Chartered, ANZ, and HSBC.