Economies of scale, profitability, and developing a comprehensive service proposition remain major challenges in Vietnam’s growing retail banking industry. A long-term sustainable future will depend on how banks execute a right risk-reward balance

Economies of scale, profitability, and developing a comprehensive service proposition remain major challenges in Vietnam's growing retail banking industry. A long-term sustainable future will depend on how banks execute a right risk-reward balance.

Vietnam’s banking sector has taken significant steps to comply with Basel II requirements. However, more measures are needed to create an effective and integrated risk management framework in the banks.

Despite current economic challenges, Vietnam’s banking sector has promising longer term potential due to its relatively young and increasingly affluent population.