Top 5 companies operating in finance, insurance and banking in Vietnam

After six years joining in WTO, Vietnamese banking system has achieved positive results in its management, organization, human resource development and services quality. Although commercial banks are facing problems caused by the Global finical crisis; they are spending much attention improving their operations. Reviewing top five commercial banks operating in Vietnam would be helpful for us to understand at a glance this sector.

1. Agribank

Established in 1988, Agribank is well known as the largest commercial bank in Vietnam, according to VNR500. It targets are to serve farmers and agriculture sector in general. Now, it has a total asset of 617.859 Billion VND, chartered capital of 29.605 Billion, total capital of 540.000 Billion VND and total outstanding loans of 480.000 Billion VND. In term of human resource, there are 40.000 employees working for 2300 branches and transaction offices in this bank. Agribank also has business relations with 1043 foreign banks in 92 countries. In additional, it is also the best bank getting and operating international projects, especially projects of World Bank, ADB, AFD and EIB. In the development process, Agribank aims to sustainable development in order to support its clients to prosper. This goal is going to be achieved by comprehensive solutions, including the restructured bank project, which will be reviewed for approval by the Government. 

2. Vietinbank

This bank was opened in the same year of Agribank, after its split out of Vietnam National Bank in 1988. It is the second most gigantic commercial bank in Vietnam with total capital of 503.500 Billion VND.  It is proud of the first commercial bank, which has already established a branch in Europe. It also has business relations with 900 banks and financial institutions in more than 90 countries and regions around the world. In Vietnam, Vietinbank has a large nationwide network with 1 head office, 150 branches and over 1000 transaction offices. Vietinbank is planning to become a well-known finance and banking group in Vietnam and worldwide, as well. In 2013, Vietinbank was at 328 of the top 500 brand names of the banking business, rated by The Banker Magazine. 

3. Vietcombank

Established earlier than Agribank and Vietinbank, Vietcombank was launched in 1963 in order to support international trade. After 50 years working, Vietcombank is the third biggest commercial bank in Vietnam. Its total capital is of  84.600 Billion VND. There are 14000 employees working for over 400 branches and transaction offices in this bank. It also has business relations with 1700 international banks in over 120 countries and regions around the world. With an effort in developing new products and services, combined with a good start for the working plan in the next years, Vietcombank is expected to become the number 1 commercial bank in Vietnam, according to the Governor of State Bank Vietnam, Mr. Nguyen Van Binh.

4.BIDV

Vietinbank was established in 1957 with the name of the bank for development of Vietnam at that time. With more than 50 years working, it is the fourth largest commercial bank with total asset of 484.785 Billion VND. There are 18.546 employees working for 118 branches and 458 transaction office nationwide. Vietinbank aims to become one of the top 20 banks, which provide high quality service, and the most trust services in the South East Asia in 2020.

5.ACB

Established in 1993, ACB is known as the fifth biggest commercial bank in Vietnam. Its total capital is of 176.308 Billion VND in 2012. It has four subsidiaries and 342 branches and transaction offices national wide. At the present, ACB is following two main business strategies such as diversification and expansion. The expansion strategy is represented via system expansion, cooperation promotion and merger and acquisition. The diversification strategy is implemented by creating and developing new subsidiaries in various relevant fields such as stock security, financial activities, loan management, etc.,

These top five commercial banks are contributing significantly to Vietnamese economy in the role of the immediate financial institutions. With the advantages and disadvantages of joining WTO, it is necessary to restructure and reform these banks towards efficiency and effectiveness. 

Do you want to know further about this industry? Get back to us and read the next articles!

Tourism business in Vietnam

Author: Hoa Nguyen, MBA.,MA.

Vietnam has a huge potential for tourism development because of its opulent natural resources, distinctive paddy culture and history values, as well. There are seven important tourism areas with different advantages and core values created by different natural resources and culture in Vietnam. 

First, Midland and mountainous area in the North of Vietnam, which include 14 provinces, is well known for ecotourism and culture - explored tourism products since ethnic minorities with diversified cultures almost live there. In this region's culture, Hung Vuong worship, which is well known with different rituals, has been recognized as the world intangible culture heritage. 

Second, Hong River Delta and the North East coastal region, which comprise of  Ha Noi capital and 10 provinces and cities, is possible in providing Maritime and Marine tourism, culture and history explored tours, urban explored and MICE tourism. With Thang Long Royal Citadel, "Phong Nha - Ke Bang" National park and many intangible culture heritages such as Giong Festival , Lim festival, and so on, this area has the most opulent culture resources in Vietnam. 

Third, The North Central Region, which consists of 6 provinces, can provide ecotourism, culture and history discovered, Maritime and Marine tourism, as well. This area is famous for many historical monuments such as Ho dynasty rampart; Hue Royal ex-capital.   

Fourth, The Coastal of  South Central Region, which includes Da Nang city and 7 provinces, is potential for urban explored tours, MICE, culture and history explored tourism, resorts and islands sightseeing. This region is not famous for excellent tourism attractions, but it is also famous for diversified cultures, including "Chăm - pa" culture. 

Fifth, Tay Nguyen region consists of 5 provinces, where almost ethnic minorities live and create their excellent culture. "Cồng Chiêng" culture is the most well known there and it has been recognized as one of the world culture heritages by UNESCO. This area can provide ecotourism and culture explored tours for visitors. 

Sixth, The South East region includes Ho Chi Minh city and 5 new emerging cities. This region shall succeed with urban explored and MICE tourism, culture and history explored, resorts and islands tours. 

Seventh, Mekong Delta region, which is well known for orchards and waterways culture, can provide ecotourism, culture explored and MICE tourism. This region consists of 13 provinces and is also famous for "Đờn ca tài tử Nam Bộ", one of intangible culture heritages of Vietnam recognized by UNESCO in 2013. 

"Quan Ho singing in Lim festival" 

With seven important areas, which can provide valuable and unique tourism products, Vietnam tourism shall  achieve its development goals if the development strategy in tourism to 2020 is implemented efficient  and effective manners. In additional, according to the decision no 2473/QĐ - TTg announced by Prime Minister, Tourism Development Strategy to 2020, a vision to 2030 encourages international cooperation in tourism in order to foster Vietnamese tourism development in the global market. With the well off natural, cultural resources, tourism business in Vietnam is expected to get profitable values for investors if they provide the competitive products combined with advanced management techniques. What will happen in the future? You will have your owned answers !

"Cồng Chiêng festival"