1. An overview on Vietnam Banking System and Credit Policies
Seminar
An overview on Vietnam Banking System and Credit Policies
Speaker: Associate Professor Truong Quang Thoâng
The University of Economics HCM city

2. The number of Banks 1991-2012 State-Owned Banks Joint-Stock Banks
1991
1993
1995
1997
1999
2001 05 06 07 08 09 10 11 12
State-Owned Banks 4 5
Joint-Stock Banks 41 48 51 39 37 34
Foreign Banks 8 18 24 26 29 31 43 47 49 50
Joint-Venture Banks 1 3
Total 9 56 74 84 83 75 78 80 89 94 98 96

3. Lending Shares
2000
2001
2002 03 04 05 06 07 08 09 10 11
12 (e)
State-Owned Banks
77%
79%
80%
73%
65%
59%
58%
54%
51%
53%
Joint-Stock Banks 9%
10%
11%
12%
15%
21%
27%
32%
35%
34%
Foreign and J-V Banks
Others 2% 5% 6%

4. Deposit Shares
2000 01 02 03 04 05 06 07 08 09 10 11
12 (e)
State-Owned Banks
77%
80%
79%
78%
75%
69%
59%
57%
49%
45%
43%
44%
Joint-Stock Banks
11% 9%
10%
13%
16%
22%
30%
32%
41%
46%
47%
Foreign and J-V Banks 8% 7%
Others 1% 2%

5. Growth and… crisis 2006 2007 2008 2009 2010 2011 M2 Growth 34% 46% 20%
29%
33%
12%
Credit Growth
25%
50%
28%
32%
14%
CPI
7.1%
8.3%
23.1%
5.9%
10%
18.6%
% FX Rate
0.9%
0.7%
1.2%
4.7%
9.1%
10.10%
Import Deficit (in billion USD)
-5.1
-14.2
-18.0
-12.9
-12.6
-9.8
Source : Vũ Quang Việt (2013)

6. Investment vs Savings 2006 2007 2008 2009 2010 2011 Investment/GDP (1)
37%
43%
40%
38%
39%
33%
Saving
/GDP (2)
28%
26%
23%
24%
Difference (1) and (2) 9%
17%
16% 8%
Source : Vũ Quang Việt (2013)

7. The highest bad debts rate ever recognized…
Graphic: Bad Debt Rate Over Years
On 7/6/2012, for the first time ever, the Governor of the SBV recognize that the “real” bad debt rate is 8,6% equivalent to 202 thousand of billions VND. 
About the newly- established Vietnam Asset Management Company (VAMC)

8. Have interest Groups been controlling banking activities?
As recognized by the Governor, there are some banks controlled by 1, 2 group(s) of shareholders; and there are some banks where of loan outstandings have been granted to the benefices of these groups of interest.

9. Cross-ShareHoldings Among Vietnam Banks
Source: Nguyễn Đức Mậu, Nguyễn Xuân Thành (2012)

10. M&A Business and the “Failure” of the so-called Restructure Plan
Source: Nguyễn Đức Mậu, Nguyễn Xuân Thành (2012)

11. Interest Rates Evolution during 2012-2013
Good or bad in 2013? : May banks, with liquidity surplus, but do not lend …

12. Some Institutional Concerns
Commercial Banks vs Investment Banks ?
The fact that non-bank business invest in shares on bank(s) and vice versa.
The fact that a bank invests in shares on other bank(s).
Group Interest, business ethics and the need of a “Code of Conducts” in banking area.
Looking back to the Decree 141/2006 on bank capital increase and its impacts… .

13. Thank You