Credit institutions headquartered in these financial centers will not be bound by restrictions on to foreign ownership or foreign investment conditions when providing services there or across borders.

Hanoi is advancing its efforts to integrate technology into urban management by expanding the pilot program for cashless parking payments throughout the city.

One of the key priorities for the banking sector is to support small and medium-sized enterprises (SMEs), as they generate a large number of jobs and contribute significantly to the economy.

The rating actions follow Moody`s upgrade of Vietnam`s sovereign rating to Ba3 from B1, and change in the outlook for the sovereign`s rating to stable from positive on August 10.

Assuming Vietnam`s top three state-run banks can maintain their respective growth rate of 5 - 10% in the next eight years, their total assets would be over VND1,500 trillion (US$63.95 billion), equivalent to those currently in Asia`s top 100 banks.

Vietnam is expected to have at least 2 - 3 commercial banks in Asia`s top 100 largest banks in terms of assets and 3 - 5 banks listed in foreign stock markets by the end of 2025.

The Vietnamese banking authority may have to sell more foreign currency if the US dollar keeps appreciating.

The focus is on amending and removing a regulation on setting conditions for granting permits for the establishment and operation of joint stock commercial banks.

Consumer finance has ample room for growth in Vietnam, however, it is necessary to improve the policy framework to make the sector more attractive to foreign investors, experts said.

"It is not a bad idea to be conservative and cautious and retain some cash," said the Viet Dragon Securities Company (VDSC) in its latest investment strategy report.

The Ministry of Planning and Investment (MPI) considered the target of "having 12 - 15 commercial banks meet Basel II standards by 2020" as feasible.

Vietnam`s state budget revenue is estimated to reduce by some VND30.15 trillion (US$1.32 billion) this year as the country has to remove multiple tariffs under signed free trade agreements (FTAs), according to the Vietnam Customs.

The central bank-run Vietnam Asset Management Company (VAMC) plays a vital role in solving bad debts in the banking system, according to the State Bank of Vietnam`s representative.

Higher revenue levels were also able to offset bad debt charges and mitigate the impact of credit costs on bottom-line profitability, stated the Moody`s Investors Service.

Exchange rate management should be considered as part of a broader policy to increase the resilience of the economy and stabilize macroeconomic condition.

The Vietnamese lender saw its after-tax profit increase to an all-time high of VND4.15 trillion (US$178.3 million) during the first half of 2018, according to the bank`s quarterly consolidated financial statement.

After the central bank signaled it will cease intervention in the local forex market, local commercial banks promptly raised the USD/VND exchange rate by nearly 1%.

The SBV`s current reserve fund of nearly US$64 billion is expected to ease pressure on foreign currency supply in the market, according to a commercial bank`s representative..

As of June 30, Vietcombank`s total assets were valued at VND977.6 trillion (US$42.7 billion), down 5.6% compared to the beginning of the year.

Vietnamese shares settle July 18 at a higher note for the fifth consecutive gaining day, as local investors stepped in to buy amid eased concerns over trade tensions, traders said.

The introduction of Resolution 42, which provides special pilot treatment of bad debts at credit institutions, played an important role in VAMC`s recent positive performance.

A non-cash economy is one of the main pillars to build an e-government, which should be the government`s priority in the coming time.

Vietnam`s market is fast becoming an attractive investment destination for foreign banks.