Lower lending rates in the financial-banking market may not mean good things for the securities market, specialist Dao Phuc Tuong said.

The State Bank of Vietnam (SBV) has asked banks to further reduce operating costs in the remaining months of the year in order to continue lowering interest rates to support COVID-19 affected firms and individuals.

In light of the unpredictable developments relating to the Covid-19 pandemic, many banks in Vietnam are attempting to raise capital but most of their plans have been delayed,

Not all commercial banks will list their shares on the bourses by the end of the year as required by the government.

The capital cost has never before been so low. In the interbank market, the VND overnight interest rate was 0.13 percent per annum on July 8, according to the State Bank of Vietnam.

Vietnam has seen a digital wave in the finance-banking industry, with many lenders investing significantly in digitisation, experts have said.

Domestic activities have returned to normal, but Vietnam’s major partner economies are still affected by the Covid-19 pandemic.

Domestic banks are expected to face increasing competition, especially as European banks will be able to access the Vietnamese market when the European Union-Viet Nam Free Trade Agreement (EVFTA) takes effect.

A number of banks have announced plans to auction off their collateral assets in an attempt to speed up bad debt recovery.

According to Fitch Ratings, Vietnam is positioned to stand out among Asia’s frontier and emerging markets this year as a result of its economic resilience and success in bringing the novel coronavirus pandemic under control.

A string of Vietnamese banks, particularly state-owned lenders, are facing capital shortfalls but upcoming tie-up deals with foreign investors could give the financial sector some much-needed momentum.

Moody's Investors Service has placed the long-term ratings and assessments of three Vietnamese finance companies and two Vietnamese banks on review for downgrade.

Fitch Ratings has revised the outlook on the long-term issuer default ratings (IDRs) of two State-owned banks and a wholly foreign-owned bank in Vietnam to Stable from Positive,

Moody's Investors Service has placed the long-term ratings and assessments of three Vietnamese finance companies and two Vietnamese banks on review for downgrade.

The fourth industrial revolution (Industry 4.0) has a great impact on the human resources of the banking sector, according to the general director of Viet Nam Prosperity Joint Stock Commercial Bank (VPBank).

Moody's Investors Service on Thursday took rating actions against 18 banks in Việt Nam, following its confirmation of Việt Nam's Ba3 sovereign rating and change of the sovereign rating outlook to negative a day earlier.

Vietnamese banks are following their corporate clients by expanding abroad. 

For Vietnam, the issue is not the lack of money to pay debt, but the inefficient coordination among government agencies, a point that Vietnam must improve on.

Large banks as well as smaller ones are seeking foreign investors in today's competitive market.

Personal deposits saw the first decline of VND14 trillion (US$603.08 million) in July, after growing in six consecutive months.