Foreign banks optimistic about Vietnam's economy

Standard Chartered Bank is optimistic about Vietnam's economy and sees many growth opportunities in the country.

This is so despite challenges for Vietnam this year that include inflation, loss of confidence in value of currency and trade deficit, according to General director of Standard Chartered Bank Vietnam, Louis Taylor.


Sharing his viewpoint on Vietnam's economy in general and its financial and currency markets in particular this year, Taylor said SCB has listed a group of countries called the "seven-percent group", of which members are the countries expecting to obtain economic growth of seven percent or more in the next 10 years. This is an impressive growth rate and Vietnam is a member of that club.

That also means SCB has seen opportunities to develop in Vietnam, of course, along with issues such as inflation, the loss of confidence in value of currency and trade deficit.

However, SBC believes that Vietnam would be one of the three Asian economies achieving higher economic growth in 2011.

Regarding the opportunities for banking operations, Taylor said the number of bank accounts in HCM City grew by 400 percent from 2006 to 2010. The growth rate of 400 percent in bank account number, with nearly 20 millions bank accounts in 2010 compared to over five million bank accounts in 2006, has shown the huge potential for the development of the sector.

Foreign banks operating in Vietnam started receiving completely equal treatment since early this year. Talking about advantages of SCB Vietnam in developing banking and financial products, Taylor said in Vietnam, domestic banks hold more than 90 percent of market shares in several market segments. SCB would not develop its system of branches nationwide with over 200 branches as domestic banks do in order to serve customers. It is because customers are being well served by domestic banks.