Vietnamese financial market has rapidly expanded during the past few years and has gained great strategic importance at the global level. With the rapid liberalization, privatization and globalization of the market, Vietnam has become a preferred destination for international financial investors. The key financial sectors ‘banking’ and ‘insurance’ are attracting huge foreign investments as both of these sectors represent highly untapped potential.
As per our new research report “Vietnam Financial Sector Forecast to 2013”, Vietnam’s banking sector is transforming and ongoing deregulations will fuel the sector’s growth in the coming years. The research identified that most of the Vietnamese are still unbanked and use traditional ways of saving their money and financing their needs. This represents a highly untapped and potentially lucrative market for existing as well as new market players. The projected 29% CAGR growth of banking asset (during 2011-2013) further confirms industry’s attractiveness.
At the insurance front, the sector has expanded rapidly during the last few years and has witnessed increase in the presence of foreign players. The insurance sector expansion has been primarily a consequence of growing presence of foreign players, which intensified the market competition and benefitted consumer the most. Further, growth in insurance premium has been phenomenal with total annual premium falling in double digit bracket during 2005- 2010.
Likewise, micro financing has huge potential in the country as the demographic indicators have been supportive in nature with around 73% population living in rural areas and about 54% of the national workforce working in agriculture sector. As of now, total loans outstanding in rural areas comprise only 17% of the total bank credit and more than 80% of the rural population does not have access to any kind of institutional financial sources.
“Vietnam Financial Sector Forecast to 2013” provides detail information, reliable statistics, comparable data, and prudent analysis of the Vietnamese financial sector. It provides deep insight into each of the banking and insurance parameters like, assets, loans, deposits, payment instruments, and life insurance, and non-life insurance market. Most importantly, the report presents future outlook for each of the important aspects (assets, loans, deposits, insurance premium etc) considering the effects of the global economic crisis on base drivers, opportunities, and challenges faced by the financial sector.
