Released on: June 6, 2008, 12:20 am

Press Release Author: Shushmul Maheshwari

Industry: Financial

Press Release Summary: Bank loans in Vietnam are projected to grow at a CAGR of
15.22% by 2011 due to increasing privatization and allowance of foreign ownership,
says RNCOS report.

Press Release Body: A new market research report, “Booming Financial Sector in
Vietnam (2007-2011)”, by RNCOS forecasted that the total Vietnamese bank loans
will grow at a CAGR of 15.22% from 2007 to 2011, thanks to the increasing confidence
in banking sector, and growing privatization and foreign participation.

According to the report, in future, demand for bank loans is likely to increase due
to emerging private sector, though insufficient supply of financial services
doesn’t seems to fulfill this demand. Moreover, most of the bank loans are
directed towards State-Owned Enterprises (SOEs) as about 70% of banking assets are
covered by four largest SOCBs (State-Owned Corporate Banks) with implicit and
explicit government support for State-owned Enterprises (SOEs). But the scenario of
financial services is expected to improve during 2007-2011 due to government efforts
to increase access to bank finance, especially for small- and medium-sized private
enterprises, and to adopt new lending policy in place of its conventional practice
of directed policy lending.

The Vietnamese government is also making State-Owned Banks (SOBs) partially
privatized, which allows them to sell their shares in the market and increase their
funds instead of depending upon the state funds. The government is also allowing
upto 15% foreign ownership in equitized commercial banks. The first phase of this
process mandates the banks to hike their CAR to the international standard of 8%
through government bond issues, money raised by banks themselves through issues and
bonds, and funds from the World Bank.

“Booming Financial Sector in Vietnam (2007-2011)” provides updated
analysis on the thriving Vietnamese financial sector and various products and
services provided by it. The report provides detailed overview on various
opportunities critical to the success of banking and insurance industry of the
country. Moreover, rational forecast on bank assets, deposits, loans, insurance
premium and payment cards helps the global banking players, investors and financial
service providers in planning their business strategies.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://rncos.com/Report/IM541.htm
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