Vietnam Banking Sector to Have CAGR of 22% by 2013: RNCOS

Vietnam’s banking sector has huge potentials for further growth with banking assets predicted to have compound annual growth rate (CAGR) of 22% in 2009-2013, Vietnam News Agency said, citing a report by the U.S. market research company RNCOS.

 

Most of the Vietnamese are still unfamiliar with banking services and use traditional ways of saving money and financing their needs, RNCOS explained for its prediction on higher growth of the sector.

 

RNCOS said in the report “Vietnam Financial Sector Forecast to 2013” that the country’s banking sector remains underdeveloped compared to others in the regional economies like India and China despite unprecedented growth in the recent years.

 

Similar to the banking sector, the insurance sector has expanded rapidly over the past few years with the total annual premium growing at a CAGR of over 20% between 2002 and 2008, the report said.

 

Despite the fast expansion, the insurance sector is still left with ample of unexplored opportunities like professional liability insurance, export credit insurance, energy price insurance.

 

Vietnam has become an attractive destination for international financial investors due to the rapid growth, privatization and rapid integration into the global economy, it added.

 

The report is an outcome of in-depth research and detailed study of the Vietnamese financial sector and its various products and services.

 

The report analyses all the factors which are critical to the success of banking and insurance industry of the country. It also identifies the key industry trends, including opportunities and challenges, serving global banking players, investors and financial service providers in planning their business strategies. (VNA)