2. hello!
WE ARE
GROUP 1
We are going to give
presentations about
Viet Nam financial
institutions.
Nguyễn Hoàng Vĩ
Nguyễn Thái Bảo
Hoàng Khánh Linh
Lê Ngọc Diệp
3. THE OUTLOOK of FINANCIAL
MARKET IN VIET NAM
FINANCIAL INSTITUTIONS (FIs)
FIs in VIET NAM
THE SOLUTIONS FOR VIET
NAM
9. “An establishment that focuses
on dealing with financial
transactions, such as
investments, loans and deposits
10. Let’s review some types of FIs
Commercial bank
◎ Trade currency
◎ Provide banking
services. Such as: take
deposits, loans,
investments
Finance company
◎ Raise capital by issuing
bonds, stocks, short-
term value papers
◎ lending
Leasing finance
◎ Leasing is the active
medium & long-term
credit
◎ Lease machinery,
equipment, movable,...
Credit union
Mobilize capital from members
Only make loans to members
Non-profit activities
Thrift institution
Mobilize capital by receiving
deposit
Make loans
Insurance
As financial intermediaries with
regular activities and mainly
premium income to form
insurance funds, using fund to
compensate it for the loss insured
the risky and insured.
11. Let’s review some types of FIs
Pension fund
◎ Raising capital: Wages and income
of workers periodically.
◎ Use capital: Payment of pensions
after employees retire
◎ Managed by state or private
Mutual fund
◎ Raising capital by issuing Fund
certificate and use such funds to
invest in securities
◎ Close fund and open fund
Money market mutual
fund
◎ Invest in the monetary market
13. Capital raising Capital using Other activities
Commercial bank Deposit
Credit granting,
investments
Providing
payment services
Thrift institution Deposit Mortgage loans
Providing
payment services
Insurance
company, pension
Premium
invest in safe
security
Finance company
Bond, stock, short-
term paper
Consumer credit
granting
Mutual fund, MMMF Fund certificate
invest in securities,
instruments
14. THE FUNCTIONS OF COMMERCIAL BANK
Capital deposit Commercial Loans Capital
suppliers Bank needers
✘Credit intermediary
✘Payment intermediary
✘Make money function
18. Legal Capital
Commercial bank 3000 billions
Development, policy
bank
5000 billions
Foreign bank 15 millions dollar
Finance company 500 billions
Leasing finance
company
150 billions
Life insurance
company
600 billions
Non-life insurance
company
300 billions
23. According to Circular 22/2011/TT-NHNN, Circular 22 would cancel the
ratio of credit granted from funds mobilized stipulated in Circular 13 is not
more than 80% for banks and 85% for non-bank credit.
No Type of credit institution Ratio of granted credits to
mobilized capital
1 State-owned commercial banks 96.74
2 Joint stock commercial banks 79.45
3 Joint venture banks, foreign bank branches 67.29
09/2015 (sbv.com.vn)
24. Interest income and non-interest income
Interest income from lending is mainly the core revenue, represents 70 to
80% of net income
26. ✘ Cross-ownership increases the difficulty for the measurement of bad
debt
✘The rise in cross-ownership also reduces competition of banks.
27. Bank system of Viet Nam currently
✘Over 90% of the share capital of the bank is now short-term funds,
Average mobilized capital term tends to shorten while the average loan
term is longer.
www.themegallery.com
31. Place your screenshot here
On July 20th 2000,
the Ho Chi Minh City
Securities Trading
Center was officially
put into operation
and executed the first
trading session on
July 28th 2000 with
2 types of listing
stocks.
Stock exchange
32. Place your screenshot here
x the HNX has organized
share auctions, Government
Bond biddings to mobilize
capital for the State budget.
x the HNX has operated
three secondary trading
markets on a modern
technological structure,
including listed stock market,
Government Bond market,
and UPCOM
36. estate investment fund Management company
Vietnam Property Holding
(VPH)
Saigon Asset
Management
Bao Tin Real Estate Fund Bao Tin Capital
Vietnam Property Fund
(VPF)
Dragon Capital
Indochina Land Holdings Indochina Capital
Aseana Properties Ireka Corporation Berhad
Vietnam Real-Estate
Development Fund
Korea Investment Trust
Management
…. ….
41. Finance company Authorized capital
Post and
Telecommunication
Finance Company
Limited
500 billions VND
Rubber Finance
Company
1089 billions VND
Maritime Bank
Finance Company
Limited
500 billions VND
EVN Finance Joint
Stock Company
2500 billions VND
…. …..
42. Leasing finance company Authorized capital
VINASHIN Finance Leasing
Company Limited
300 billions VND
Kexim Vietnam Leasing
Company
282 billions VND
Asia Commercial Bank
Leasing Company Limited
200 billions VND
Industrial and Commercial
Bank of Vietnam Leasing
Company Limited
800 billions VND
…. …..
43. Financial leasing
company
Some companies are
almost over and focus on
processing non-
performing loan
Almost firms don’t
know this service Loss in a long
time
They has become
feeble and has to face
up to dark future
44. INVESTIGATION OF AMONG 1000 COMPANIES FROM EVERY FIELD
WHY
????
20% - don’t
know about
this service
70% - they know very
few about FLC or never
learn about FL service
before
The others even
think of financial
leasing similar to
installment
financing
46. Non-life insurance
✘Nowadays, there are some big life
insurance companies. Such as: PVI,
Bao Viet, Bao Minh, PTI, Samsung
vina, PJICO,…
✘In the first 6 months of 2015, the
sale of the non-life insurance
market is 15.329 billion
✘PVI gains the highest sale, 3.342
billion dong, increasing 3.37%.
47. life insurance
✘1996, (Bao Viet) is permitted
to establish by Finance
Ministry.
✘Nowadays, there are some
big life insurance
companies. Such as: Bao
Viet, Prevoir,...
✘The life insurance
companies occupy the high
total premium & market
share, that include: ....
51. Ways to strengthen FIs in US
One
Associations of insurance and
banking operation in American
States issued many strict laws of
opening the financial intermediary
Two
The FIs’ s record is checked monthly.
They must make some necessary
informations available for the public
Three
The FIs are limited about assets
that they can hold
The government bans them doing
some risky operations
Four
The government protects the
capital suppliers to avoid the loss
when FIs go bankrupt
Five
The government reduces the
branches of FIs
The bank is banned to open new
branch in some state of US
Six
The government also reduces the
competition among FIs by
managing the saving interest rate