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. 

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