10. Nguồn: NHNN
Surplus on both current account and capital account,
Trade balance shift to surplus period 10
(4.00)
(2.00)
-
2.00
4.00
6.00
8.00
10.00
2011 2012 2013 2014 2015 2016 2017
Balance of Payment, % GDP
Overall Balance Current Account Balance Capital Account Balance
11. YIELD CURB FLATTERED AND DOWNWARD
11
5.58
6.14
6.36
6.66
7.56
7.74 7.81
3.05
3.40
4.00
4.40
5.10
5.39
3
4
5
6
7
8
9
2N 3N 5N 7N 10N 15N 20N 30N
2016 2017 28/02/2017
• Government can borrow at low costs for long term!
• Low yields may not last long risks for banks.
13. MACROECONOMIC ENVIRONMENT: TAIL WIND
Firm recovery of economy since 2012 which powered
mainly by non-state and foreign invested sector
Inflation is well anchored; interest rate is stable
and on the down trend; risks of exchange rates are
minimized;
Foreign reserves increased sharply to around 13
weeks of import (3/2018); Sovereign risks keep
declining
SBV Creditability on maintaining inflation and
supervision banking sector is improving
Productivity of credit improving
Increasing capital inflows
Better economic performance around the world 13
14. MACROECONOMIC ENVIRONMENT: HEAD WIND
Trade protectionism higher uncertainty
Risk of reverse capital flows?
Process of reversing monetary policy has started in US,
EU, China and others
High performance in stock markets in the world in 2017
may need big correction in 2018
Dilemma: high demand for investment in
infrastructure > Budget deficit?
Credit/GDP is already high, and credit growth can
not be too expansive.
Large capital inflows may ignite bubbles in real
estate and stock market and inflation in non-
tradable sector 14
17. WHY BANKS PERFORM WELL IN STOCK
MARKET IN 2017
17
They are getting safer
Favorable macroeconomic environment
Better management and supervision
NPL decreasing
They are more profitable
Vietnam is bank-based economy and growing fast high
demand for credit more opportunity for making profit
Economic recovery help many NPL get resolved
Demand for new financial services increasing rapidly
They are more efficient
With credit growth constrained, credit has been allocated
more efficiently
Many expensive lessons in management have been learnt
They are dynamic: diversifying services
18. CHANGES IN BANKING SECTOR
18
Corporate lending face constraints
Most of enterprises in Vietnam are newly established or
small ones low profile to access to corporate credit
Tightening process of lending and supervision
Shift to Retail banking
High demand from newly established and small and
micro enterprises
Consumption increases due to positive expectation of
economic performance and wealth effects
On supply side: IT and big data suppliers such as CIC
and StoxPlus helps banks manage risks by providing
more insightful information on potential clients
There is more room: The consumer credit in 2017
accounted for less than 17% of total credit.
19. CHANGES IN BANKING SECTOR
19
Credit growth should be consistent with GDP
growth (nominal) competition in credit providing
will be higher
Applying Basel II require more capital and slowing
down credit
Need expanding fee-based services
Middle class rapidly expanding
By 2020 middle and upper class in Vietnam would
reach around 33 mil people (Boston Consultant group)
to 44 mil. (Nielson). Higher demand for other
financial services and insurance.
20. CHANGES IN BANKING SECTOR
20
• Legal side
• MOF and SBV issued inter-ministry circular 86 in
2014 providing legal base for banks to render life
insurance service for insurance firms.
• SBV now drafting circular to guide banks providing
bancassurance services.
• Opportunity for bancassurance is expanding
21. ONGOING MONETARY POLICY
Prudential monetary policy
Pro-active sterilization in context of large capital inflow
Keep close eyes on credit growth, especially on real
estate sector and stock market
A big correction in stock market may cause bad shock to the
economy as the memory of 2008 has not faded out
Prioritized target: keep inflation under 4%
Flexible exchange rate to buffer external shock, if any
Encouraging banks to diversify services to lessen
proportion of credit-based income
Closely cooperated with MOF in conducting fiscal policy
and managing G-bond market
21