Blue Modern Business Operation Management Company Presentation.pdf

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1. GROUP B - K26CLCNHA
ANALYSIS THE LEVEL
OF COMPETITION IN
VIETNAM'S FINANCIAL
SERVICES - RETAIL
BANKING MARKET

2. GROUP
MEMBERS
ABOUT OUR COMPANY
1.Ngô Phương Nhi (leader)
2.Nguyễn Ngọc Vân Hà
3.Nguyễn Trần Minh Đức
4.Trịnh Minh Dương
5.Trịnh Xuân Sơn

3. I. INTRODUCTION
II. COMPETITIVE STATE IN VIETNAM’S
RETAIL BANKING MARKET
III. SWOT MODEL
IV. CONCLUSION
TABLE OF CONTENT

4. OVERVIEW OF THE RETAIL BANKING
AND FINANCIAL SERVICES MARKET
IN VIETNAM
1.
2. THE IMPORTANCE OF THE RETAIL
BANKING AND FINANCIAL SERVICES
MARKET IN VIETNAMSSION
I. INTRODUCTION

5. 1.OVERVIEW OF THE RETAIL
BANKING AND FINANCIAL
SERVICES MARKET IN VIETNAM
Retail banking services, including financial products for individuals and households, are
gradually becoming an important factor in the development strategies of many banks.
CONSUMER LOANS
DIGITAL AND ONLINE
BANKING SERVICES
PAYMENT ACCOUNTS AND
CREDIT CARDS
SAVINGS SERVICES
These services serve customers'
daily transaction and payment
needs. 
Banks provide savings
products with attractive
interest rates to attract
individual depositors. 
Home loans, car loans, unsecured
loans, etc. to meet the financial
needs of individuals.
Retail banks are promoting the development of e-
banking, mobile banking, and online payment
products to meet the needs of modern customers.

6. 01
02
03
04
05
PROVIDING
BASIC
FINANCIAL
SERVICES
PROMOTE THE
DEVELOPMENT OF
TECHNOLOGY AND
DIGITAL BANKING
CREATING JOBS
& PROMOTING
THE
DEVELOPMENT
OF RELATED
INDUSTRIES
ENSURING
NATIONAL
FINANCIAL
STABILITY
ENCOURAGE
PERSONAL
FINANCIAL
MANAGEMENT
AND REDUCE
BAD DEBT
2.THE IMPORTANCE OF
THE RETAIL BANKING
AND FINANCIAL SERVICES
MARKET IN VIETNAM

7. 1. MARKET STRUCTURE AND MAIN COMPETITORS
II. COMPETITIVE STATE IN
VIETNAM'S RETAIL
BANKING MARKET
2. ANALYSIS OF THE LEVEL OF COMPETITION IN THE
VIETNAMESE RETAIL BANKING MARKET

8. 1. MARKET
STRUCTURE
AND MAIN
COMPETITORS
Vietnam currently has 48 banks, including
2 Joint Venture Banks, 9 100% foreign-
owned banks, 30 Joint Stock Commercial
Banks , 4 State-owned Banks, 2 Policy
Banks, and 1 Cooperative Bank.
STATE-OWNED COMMERCIAL BANKS
Vietinbank, Vietcombank, BIDV, Agribank
DEFINE
TPBank, Sacombank, HDBank, Techcombank,
LPBank, etc.
PRIVATE JOINT-STOCK
COMMERCIAL BANKS
Vietnam-Russia Bank, Vietnam-Thailand Bank
JOINT VENTURE BANKS
100% FOREIGN-OWNED BANKS
Shinhan Bank, HSBC, Standard Chartered, etc.

9. CLASSIFICATION
48 BANKS: 3 GROUPS
State-owned commercial banks
Have significant or full state ownership, including 7 banks.
4 largest commercial banks:
Vietnam Bank for Agriculture and Rural Development (Agribank): 51.615 tỷ đồng
Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank): 53.700 tỷ đồng
Bank for Investment and Development of Vietnam (BIDV): 57.004 tỷ đồng
Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank): 55.891 tỷ đồng
These are large joint-stock commercial banks with substantial charter capital and total assets,
typically ranking among the top banks in Vietnam, including 11 banks. Example:
Vietnam Prosperity Joint Stock Commercial Bank (VPBank): 79.339 tỷ đồng
Military Commercial Joint Stock Bank (MB): 52.870 tỷ đồng
Vietnam Technological and Commercial Joint Stock Bank (Techcombank): 70.450 tỷ
Asia Commercial Bank (ACB): 44.666 tỷ đồng
This group includes smaller joint-stock commercial banks, wholly foreign-owned banks,
and joint-venture banks.
An Binh Commercial Joint Stock Bank (ABBank)
Bao Viet Commercial Joint Stock Bank (BaoViet Bank)
Bac A Commercial Joint Stock Bank (Bac A Bank)
Vietnam Public Commercial Joint Stock Bank (PVcomBank)

10. 2. ANALYSIS OF THE
LEVEL OF COMPETITION
IN THE VIETNAMESE
RETAIL BANKING MARKET
Personal deposits are a stable source of capital
and always account for a large proportion of the
total mobilized capital of commercial banks.
According to data from the State Bank of Vietnam,
by the end of September 2024, the total deposits
of individual customers at credit institutions
reached nearly VND 6.96 million billion, an
increase of 6.5% compared to the end of 2023.
⇒ People continue to trust and choose banks as a
place to store and generate profits for their savings.
However, the growth rate of personal deposits has
tended to slow down in recent years.
PERSONAL DEPOSIT MARKET

11. 2.1. PEROSNAL DEPOSIT BALANCE
TOP 15 STRONGEST BANKS IN VIETNAM (BRAND FINANCE)
Agribank
BIDV
Vietinbank
Vietcombank
Sacombank
ACB
Techcombank
VPBank HDBank
MB
LPBank
VIB
SeABank
TPBank
MSB
0
200
400
600
800
1000
1200
1400
> 500 trillion VND 200 - 500 trillion VND
< 200 trillion VND
Source: Authors compiled from annual reports of banks in 2023
Banks with high personal deposit balance
(>500 trillion VND)
Agribank leads in personal deposit
balance, reaching VND1,338,796,416
million. BIDV and VietinBank are second
and third, respectively ⇒ Large state-
owned commercial banks, with extensive
networks and high reliability, attract large
amounts of deposits from individuals.
Banks with average deposit balance (200 -
500 trillion VND)
These banks have good deposit
mobilization strategies, focusing on the
individual customer segment, especially
the middle-class and small business
customer groups.
Unit: trillion VND

12. Agribank
BIDV
Vietinbank
Vietcombank
Sacombank
ACB
Techcombank
VPBank HDBank
MB
LPBank
VIB
SeABank
TPBank
MSB
0
200
400
600
800
1000
1200
1400
> 500 trillion VND 200 - 500 trillion VND
< 200 trillion VND
2.1. PEROSNAL DEPOSIT BALANCE
TOP 15 STRONGEST BANKS IN VIETNAM (BRAND FINANCE)
Source: Authors compiled from annual reports of banks in 2023
Banks with low deposit balance (<200 trillion
VND)
Private banks are smaller in size, focusing
on retail and individual customer services
but have not achieved the same
widespread popularity as large banks.
Unit: trillion VND

13. EVALUATION
State-owned commercial banks (Agribank, BIDV, VietinBank, Vietcombank)
have a distinct advantage in mobilizing individual deposits due to their high
reputation, stable interest rate policies, and extensive branch networks.
Large private banks (Techcombank, VPBank, Sacombank, ACB) are
attracting deposits thanks to their attractive interest rate
strategies, digital services, and flexible customer policies
Smaller banks (MSB, TPBank, LPBank, SeABank, VIB) need to continue to improve
their services, expand their customer base, and increase their competitiveness
with larger banks
⇒ The retail deposit market is still dominated by large state-owned
banks, but private banks are gradually expanding their market share
thanks to flexible strategies.

14. 2.2. Personal credit market share in the
Vietnamese market in 2023
Source: Vietcombank's 2023 banking industry report
Retail credit continues to be the main growth
driver of banking system credit Vietnam.
The proportion of retail credit of listed banks
has increased from 34% in 2016 to 47% of
total outstanding debt at the end of 2022.
Home loans are the main growth driver in
2022. At the end of 2022, outstanding home
loans increased 31.1%, more than 2 times
faster than the credit growth of the whole
system, accounting for more than 14.5% of
total credit growth outstanding debt.
In the long term, the young population
structure and the rapidly growing middle class
will continue to contribute to the expansion
scale of retail credit products: Home loans, Car
loans and Consumer credit use.

15. 0.0 0.5 1.0 1.5 2.0 2.5 3.0
Techcombank
HDBank
LPBank
MB
ACB
Vietcombank
SeABank
VIB
NamABank
MSB
Up to date 30/9/2024 Up to date 31/12/2023
2.3. TOP 10
BANKS WITH THE
HIGHEST ROE
INDEX
Source: Wichart
HDBank surpassed LPBank to claim the top
position, with an ROE of 25.71%,
LPBank moved ahead of VIB, ACB, and MB to
secure the second position with an ROE of
25.1%
The 2023 champion, ACB, dropped to third
place with an ROE of 21.75%
MB ranked fourth with an ROE of 21.47%
On the other hand, Nam A Bank improved its
ranking by surpassing Vietcombank
The remaining positions in the Top 10 were
occupied by Sacombank, BIDV,
Vietcombank, VietinBank, and VIB.

16. Up to date 30/9/2024
Up to date 31/12/2023
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Techcombank
HDBank
LPBank
MB
ACB
Vietcombank
SeABank
VIB
NamABank
MSB
2.4. TOP 10
BANKS WITH THE
HIGHEST ROA
INDEX
Source: Wichart
The ROA (Return on Assets) ratio has shown a
recovery compared to the end of 2023.
The top three banks are Techcombank,
HDBank, and LPBank, with ROA over the past
four quarters at 2.67%, 2.37%, and 2.36%
respectively.
Techcombank continues to lead the industry in
ROA (since Q1/2024)
During this period, HDBank and LPBank
surpassed MB and ACB
Meanwhile, MB and ACB saw their ROA decline
by 0.18 and 0.14 percentage points,
respectively

17. 2.5.ANALYSIS THE
COMPETITION OF BANKS
IN THE RETAIL MARKET
State-owned commercial banks – Market leaders
Dominant in retail banking due to scale and reputation
Advantage in security and trust, especially in uncertain
banking conditions
Lower lending rates and service fees compared to
private banks
Larger private banks – Strong competitors
Rapid growth with high service quality
Higher interest rates on deposits, flexible credit options,
faster disbursement
Proactive sales and customer-centric strategies
Smaller banks – Niche players facing challenges
Specialize in specific sectors (e.g., agriculture, FDI
enterprises)
Struggle with brand trust, funding, and competition
from larger banks
Regulatory interventions impact financial stability (e.g.,
SCB under special control)

18. 2.6.NON-BANK FINANCIAL INSTITUTIONS COMPETITORS
A Non-Bank Financial Institution (NBFI) refers to a financial entity that provides financial
services such as lending, investment, insurance, and asset management but does not
have a full banking license and cannot accept demand deposits from the public.
Some kinds of NBFIs:
Finance companies 
Leasing companies 
Insurance companies 
Investment funds 
Securities firms 
Fintech companies

19. Retail banks NBFIs
Loan approval process Strict, time-consuming Quick, minimal paperwork
Customer base Focus on creditworthy individuals
Serve a broader range of
customers
Financial products Standardized and regulated Diverse and customizable
Interest rates & Fees
Lower interest but higher service
fees
Higher interest but lower
transaction costs
Technology & User experience Developing but less flexible Advanced, mobile-first approach
Bank account requirement Required for most services
Not necessary for many
transactions
Advantages of NBFIs over retail banks

20. EXAMPLES FOR EACH ADVANTAGE
Simplified procedures and faster loan disbursement
FE Credit, Home Credit, and HD Saison approve loans within 24 hours, while banks may take several days
or weeks
→ Quick and hassle-free loan approval, suitable for urgent financial needs
Greater accessibility for underserved customers
Retail banks primarily serve individuals with stable incomes and good credit histories
NBFIs cater to a broader customer base, including:
Self-employed individuals and gig workers
Students and young adults without credit history
Small businesses and informal sector workers
→ Expanding financial inclusion by providing services to customers who may not qualify for bank
loans, especially individuals with no credit history, irregular income, or lower financial literacy

21. EXAMPLES FOR EACH ADVANTAGE
More flexible financial products
Retail banks offer standardized financial products with strict requirements
NBFIs provide a wider range of financial solutions tailored to specific customer needs
Consumer installment loans: Companies like Home Credit and HD Saison offer flexible payment
terms for electronics, motorbikes, and household appliances.
P2P Lending: Platforms like Tima and VayVND provide peer-to-peer lending services without
traditional bank intermediaries.
Buy Now, Pay Later (BNPL): Fintech firms like Kredivo and MoMo offer short-term credit options
for online purchases.
→ Customizable financial products that suit various customer segments
Lower transaction costs
Digital wallets (MoMo, ZaloPay) offer free money transfers and bill payments
Fintech lenders provide small loans with minimal processing fees

22. EXAMPLES FOR EACH ADVANTAGE
Advanced technology and user-friendly digital services
Retail banks are improving their digital services but still face regulatory constraints
NBFIs leverage AI, big data, and automation to enhance customer experience and streamline financial
services
Toss (a fintech company from South Korea, now operating in Vietnam) uses AI-based risk assessment
to offer microloans and financial advisory services through an intuitive mobile app. Unlike banks,
which require customers to visit branches or submit paperwork, Toss automates the process via an
AI-driven platform.
Reduced dependence on traditional banking infrastructure
NBFIs operate independently, allowing financial transactions without a traditional bank account
→ Expanding financial access to unbanked and underbanked populations
MoMo enables customers to top up their digital wallet using cash at convenience stores, eliminating
the need for a traditional bank account

23. Pressure to increase
capital and maintain
capital safety
Competition in attracting
cheap capital (CASA)
Risk and bad debt
management
Competition from non-
banks
Potential market
S W O T
Potential market
Digital transformation and
technology
Government supportive
policies
Increasing in human’s
demand
Wide branch network
Strong brand reputation
Advanced digital
services
Diverse financial
products
A stable customer base
High operating costs
Complex procedures
Underdeveloped digital
experience
Lack of product
differentiation
III. SWOT MODEL

24. Key drivers of this competition include digital transformation,
demand for personalized services, and the rise of sustainable
finance.
The market has become more competitive with the emergence of
fintech companies and digital payment platforms.
Banks must continuously innovate, leverage technology, and
adopt flexible customer strategies.
The level of competition in the retail banking market is quite
intense, as most commercial banks, regardless of size, aim
to target the retail segment.
The retail banking market share is still dominated by the
four large state-owned commercial banks.
CONCLUSION
IV.
IV.

25. 3 March, 2025
THANK
YOU
LICERIA & CO.
FOR YOUR ATTENTION