In July 2000 Vietnam’s first stock exchange was established. By the year 2005, the number of companies that are on exchange list had reached twenty eight. The total market capitalization was 270 million U.S. dollar. Vietnam opened an over-the-counter exchange in March 2005. This was known as the Hanoi Securities Trading Center. The main purpose of the second exchange is to hasten the process of equity i.e. partial privatization of state-owned enterprises. These exchanges are very small. Officials have decided that by the year 2010 they will expand their mixed market capitalization to ten percent of GDP i.e. gross domestic product.
Vietnam’s prime minister declared that the foreign share ownership limit would arise from 30% to 49 % in September 2005. Some of the banks in Vietnam suffer from low public confidence and also managerial and regulatory weakness. Some other problems were there such as non-compliance with the Basel capital standards, high levels of non-performing loans, and the absence of international auditing.
From the year 1992 Vietnam’s banking system has comprised of a mixture of joint-stock, foreign banks, state-owned and joint-venture. In Vietnam the state-owned commercial banks predominate. They always suffer from high levels of non-performing loans. Most of the loans are to state-owned enterprises.
In September 2005 Vietnam determined to make equal all five state-owned banks. In addition to this Vietnam also plans to promote the transparency of its financial system. This was done by setting up a credit-rating agency and also performance standards for joint-stock banks.
In Vietnam three hundred to four hundred automated teller machines i.e. ATMs have been installed. At about 350,000 debit cards are in circulation. Since April 2008, U.S. dollar was equivalent to about 15,984 Vietnamese dong or D.
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