Vietnam banking sector 2010’ outlook is positive after most local banks closed the year 2009 with higher-than-expected results and target higher profits for 2010.
In 2010, State Bank of Vietnam plans a credit growth of about 25 percent, much lower than 2009's real figure of 37.73 percent. However, banking profit of 2010 is predicted to mainly come from non-credit activities along with the better development of the stock market, which could bring in more profits from investments.
Dang Van Thanh, chair of Sacombank confirmed that in 2010, the bank tries to increase total assets to 150 trillion dong, pre-tax profit to 2.6 trillion dong, up 63 percent against 2009 after reporting a pretax profit of VND1.901 trillion last year.
Vietinbank targets a pretax profit of VND4 trillion, total assets to rise 25% to VND300 trillion, capital raising up 30%, total outstanding debts up 30%, medium and long term loans rates under 42%, bad debts under 2% for the year 2010. In 2009, the bank earned a pretax profit of VND3.018 trillion (US$163.320 million).
Bank for Investment and Development of Vietnam (Bidv) with plans to privatize this year, targets its credit growth at 18-20% this year after reaching nearly VND300 trillion total assets in 2009.
In 2010, many local lenders planned to expand network and increase the competitiveness with foreign banks. Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank), for example, will bring the number of branches and transaction sites to 100 by this year end.
Ly Xuan Hai, general director of Asia Commercial Bank (ACB) expressed optimistic because the global economy has underwent the most difficult period with the 2010 global economic growth forecasted at 4 percent.
However, banks also face some challenges of which liquidity seems to be the most worried issue for banks, said Nguyen Duy Hung, general director of VietBank. The State Bank of Vietnam, the country’s Central Bank, on January 6 pumped VND15 trillion via the open market to help increase the banks’ liquidity. (SBV)
Vietnamese
