OVERVIEW 01 Politics 06 Overview

OF 02 Environment
and social
07 Megatrend
08 Risks

VIETNAM'S 03 Technology 09 solutions

BANKING 04
Law
10 opportunities

SECTOR 11 In-text citation

05 Global effects
& reference
 Our Team:Firefl y

Truong Hong Nguyen Thanh Hoa Mai Luu Ly

majorHanh
: Business Analytics major : Information System major : Information System
Ha Noi university of science Ha Noi university of science Ha Noi university of science
and technology . and technology . and technology .
 PROBLEM 2
PROBLEM 1
Decree 13 on personal data protection is likely to
Financial rules seek to support borrowers and banks strengthen banks' obligations for maintaining consumer
during economic downturns and promote digital information.
change.

PROBLEM 3
New laws on the use of demographic databases,
personal identity, and eKYC in banking operations are
projected to support the growth of commercial banks.

POLITIC PROBLEM 4

S Many supporting measures are implemented to

alleviate difficulties in the bond and real estate
markets, hence preserving bank credit availability
 ECONOM
PROBLEM 1 PROBLEM 2
Y PROBLEM 3 PROBLEM
4
Despite growing SBV (State Bank of During the economic
Profits slow down and
savings interest rates, Vietnam) crisis, most commercial
diversify
customer deposit implements banks had a significant
growth remained multiple measures, increase in bad debt ratios,
slow in the face of including lowering indicating a decline in
economic instability. policy rates to client payment capability.
untangle credit
bottlenecks.
 ENVIRONMENT AND
SOCIAL
PROBLEM

Banks are progressively incorporating ESG(Environment-Social-

Governance) concerns into their lending activities and internal
governance, with many developing a full ESG management
framework and have significant opportunities to generate substantial
revenue related to ESG
 TECHNOLOGY

PROBLEM 1 PROBLEM 2
Open banking allows third-party financial service
AI will drive the evolution of the banking business in
providers to have open access to consumer banking,
the future years
transactions, and other financial data from banks and
non-bank financial institutions via APIs.

PROBLEM 4
PROBLEM 3

Digitalization in customer
Commercial banks are boosting their use of AI to
acquisition and customer
streamline procedures and enhance the client
experience is strongly boosted
experience.
 PROBLEM 1

The upcoming Law on Credit Institutions 2024 is projected

to reduce operational issues, ushering in a key period of
regulatory development and financial efficiency.

LAW
PROBLEM 2

Circulars 22 and 06 have updated Circulars 41 and 39 to

accord with government socioeconomic goals while ensuring
the survival of credit institutions for better financial
stewardship.

PROBLEM 3

The new regulation to govern Controlled Testing in banking

intends to stimulate innovation by opening up three pilot
sectors.
 GLOBAL
EFFECTS
PROBLEM PROBLEM 2 PROBLEM
1 3
Global economic growth has Economic suffering has Vietnam consumer
slowed, the Russia-Ukraine been increasingly obvious finance market remains a
conflict has dragged on global as industrial production and fertile land that attracts
commodity prices, pushing exports suffered a prolonged foreign investment to
global inflation to its highest decline owing to weak fuel growth potential
internal and external
level in more than 40 years
demand amid global
uncertainty.
 OVERVIE
W
Vietnam's banking business has both possibilities and
problems. Although the State Bank has made several
attempts to encourage credit and aid in economic
recovery, the unpredictable macroeconomic situation,
along with changes in rules and consumer behavior,
has resulted in a turbulent business climate.

Presented By :Truong Hong Hanh

 MEGATREND

Financial and banking operations are impacted by the challenging economic climate brought forth by
international sanctions against Russia and the unrest in Ukraine. Credit risks have escalated, leading to a rise
in non-performing loans in both nations, a reduction in lending capacity, and an increase in interest rates.
When it comes to giving credit, banks have grown more cautious. Business activity and foreign direct
investment have decreased as a result of the financial crisis' impact on investor and depositor confidence.
Furthermore, inflation and currency depreciation might have an impact on the financial stability of local
institutions.
SOLUTIONS
Implementing strategies such as ensuring business efficiency, promoting capital
mobilization, cutting costs, and unblocking credit flows can indeed help improve
the situation described. By enhancing business efficiency, companies can better
navigate the challenging environment created by international sanctions and
economic instability. Promoting appropriate capital mobilization growth can
strengthen the financial position of businesses and banks, enabling them to
withstand credit risks and bad debts. Cost-cutting measures can help mitigate
financial pressures and support sustainable operations. Unblocking credit flows can
stimulate economic activity and support businesses in overcoming obstacles.
 OPPORTUNITIE
S
Consumer finance: Opening the financial Technology will enable
This sector still has a market will provide banks to save costs,
lot of room for several chances for improve operational
growth, particularly collaboration and learning efficiency, and develop
for digital financial from overseas banks. new goods and services.
goods and services.
 In-text citation Reference

Vietstock. (2023, February 10). Góc nhìn đầu tư 2023: Ngành Ngân hàng vững
Góc nhìn đầu tư 2023: Ngành Ngân hàng vững bước vượt qua khó khăn
bước vượt qua khó khăn | Vietstock. Vietstock. https://vietstock.vn/2023/02/goc-
states Global economic growth has slowed down, the prolonged Russia-
nhin-dau-tu-2023-nganh-ngan-hang-vung-buoc-vuot-qua-kho-khan-582-
Ukraine conflict has pushed world commodity prices skyrocketing, causing
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global inflation to reach its highest level in more than 40 years, forcing
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central banks around the world to accelerate monetary tightening policies.
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Bức tranh ngành ngân hàng trong nửa cuối năm 2023.(2023). NFSC.
https://nfsc.gov.vn/vi/dinh-che-tai-che/buc-tranh-nganh-ngan-hang-trong-nua-cuoi-nam-
Bức tranh ngành ngân hàng trong nửa cuối năm 2023.(2023) states profits 2023/#:~:text=%E2%80%9CC%C3%A1c%20ng%C3%A2n%20h%C3%A0ng%20ghi
slow down and diversify,Bad debt and potentially risky debt continue to %20nh%E1%BA%ADn%20l%C6%B0%E1%BB%A3ng%20kh%C3%A1ch%20h
increase, Interest rates cool down. %C3%A0ng
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 In-text citation Reference

Vietnam Banking Report 2024. (n.d.) states “ Wholesale deposits plunged as

enterprises struggled with high lending rates amidst economic slowdown”, “Banks
actively diversify their funding structure by raising capital from alternative sources to
ensure liquidity and comply with SBV's prudential ratios”, “Bad debt ratios soared
across most commercial banks revealing deteriorated payment capacity of customers
during the economic downturn”, “Open Banking is an inevitable innovation trend in
the banking industry in the age of digital transformation”, “Open Banking attracts the Vietnam Banking Report 2024. (n.d.).
investments of Vietnamese banks due to its immense potential to drive financial https://fiinresearch.vn/Store/ReportDetails?id=210775
innovation”, “AI is the driving force behind the development of the banking industry
in the coming years”, “AI brings opportunities for the banking industry to improve
efficiency, enhance customer experience, and manage risk”, “Vietnamese Government
accelerates greening investment capital for sustainable development goals”, “
Amended laws with the early interventions serve to mitigate systemic risks and foster
the sustainable advancement of the Vietnamese economy”.
 In-text citation Reference

Vietnam Banking Report 2023. (n.d.). states “ SBV implements

multiple measures, including lowering policy rates to untangle credit
bottlenecks”, “Customer deposit growth remained sluggish in the face of
economic turbulence despite rising saving interest rates”, “ Banks are
required by SBV to keep lending rates at moderate levels to support the post
pandemic recovery”, “ Banks increasingly place ESG factors at the heart of
credit activities and internal governance, tending to develop a
comprehensive ESG management framework”, “Vietnam consumer finance
market remains a fertile land that attracts foreign investment to fuel growth
potential”, “The key regulations in the financial sectors aim at assisting both
borrowers and commercial banks during economic downturn and promoting
Vietnam Banking Report 2023. (n.d.).
the digital transformation”, “ Decree 13 on personal data protection is
https://fiinresearch.vn/Store/ReportDetails?id=192942. Hong Duc Publisher
expected to enhance banks’ responsibilities in managing customers
information”, “ New policies on the application of population databases,
personal identification and eKYC in banking operations are expected to
benefit the development of commercial banks’, “ Resolution 33 NQ-CP was
released to reduce two main bottlenecks of the real estate market - legal
framework and capital”, “Economic hardship has become more visible as
industrial production and exports saw persistent plunge due to weak
domestic and external demand amid global uncertainties”. “ Inflation and
foreign exchange rate remained stable, giving room for further easing
monetary policy”