Banking Sector To Remain Intact

July 2008 | Economic Analysis

BMI View: We continue to see opportunities for foreign investors in the Vietnamese banking sector in spite of the recent macroeconomic turbulence. We find it likely that some of the smaller domestic banks will collapse on the back of increased defaults among debtors and insufficient capital, but that the general health of the sector will be maintained. The current strains on the banking sector and the possibility that the government will relax foreign investment restrictions may in fact provide foreign investors with an unprecedented opportunity to enter the Vietnamese market.

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