The financial sector of Vietnam has undergone significant changes over the recent 25 years. More and more liberal rules for the establishment of the banks and the insurance companies and more open access for foreign investors to the market led to a significant increase in the number and diversity of the financial institutions operating in the country. As a consequence, many new financial products and possibilities have been offered to Vietnamese individual and corporate customers.
However, despite the rapid growth, Vietnamese financial sector is still characterized by a relatively high degree of underdevelopment and exhibits weaknesses. In the nearest future, the intensification of consolidation processes in the Vietnamese banking and insurance sectors, as well as the further expansion of foreign financial entities, can be expected. In the longer term, factors such as the large population, low labor costs, proximity to other fast-growing markets, low level of banking and insurance penetration should be a driving force behind the further development of the Vietnamese financial sector.