InvestyVIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE - Investy

VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE

VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE


Project Description

MAIN BUSINESS

  • Wholesale and retail bank services in domestic and global
  • Lending and investing, oversea remittance.
  • Trade of foreign currency and deposit, make payment and money transfer service.
  • Securities, financial leasing, insurance and other banking related activities.

MARKET POSITION

  • VietinBank is one of commercial joint stock banks which take the leading position in the scale of total asset and equity. On December 31, 2019, VietinBank has a total asset of more than VND1.24 million billion. The non-performing loans to the total credit loan balance is at 1.2%. In 2019, the pretax profit is over VND11,7 thousand billion. The capital adequacy ratio (CAR) is more than 9% while ROA and ROE reach 1% and 13.1 % correspondingly.
  • Besides, VietinBank has already its domestic network with 155 branches, nearly 1,000 transaction offices across 63 provinces and cities. In international market, VietinBank owns 02 branches in Germany, 01 subsidiary bank with 100% of its contributed capital in Laos and 01 representative office in Myanmar.
  • As the first bank of Vietnam opening its branch in the Europe, VietinBank has established and maintained its relationship with over 1000 agent banks in more than 90 countries and territories.

GROWTH STRATEGY

  • Becoming a modern and mutil-functional bank.
  • Taking priority to bank service and finance investment.
  • Mitigating credit risk to ensure debt rate under 2%.
  • Expanding its network to foreign markets.

PROSPECTIVES

  • Vietnam is implementing the socio-economic development plan in the period 2016-2020 under the context of participation in Asean Economic Community (AEC), Trans-Pacific Partnership Agreement (TPP) and Free Trade Agreements (FTA) with Eurasian Economic Union, Korea and Japan. The integration will create opportunities for the development of Vietnam economy and its banking sector. In addition, the State Bank of Vietnam continues to take measures to restructure banking system in combination with bad debt settlement in the period 2020-2025.

RISK

  • It is hard to remain the high development pace as the last years. Reduced interest rate in recent years influenced the bank operation since interest revenue occupies 90% of revenue structure.
  • The crisis and downed demand at export markets of Vietnam resulting in lower borrowings from domestic enterprises.
  • Face with a fierce competition in the Commercial Bank system due to no significant products in this sector.