Market and Competitor Analysis
Week 4 November 2014
Market and Competitor Analysis
Weekly Updated
ISSUER OF THE ANALYSIS:
Strategic Research & Analysis
Strategy and Corporate
Development/Finance & Strategy
Division
Address: Level 20,
TechcombankTower, 191 Ba Trieu,
Ha Noi
Tel: +84 4 3944 6368
Link to Weekly reports
Intranet\Chiến lược & Phát triển\Phân
tích chiến lược
Hoàng Quốc Đông
Director of Strategic Research & Analysis
Email: donghq@techcombank.com.vn
Tel: +844 39446368, Ext. 1243
Lưu Trung Nguyện
Analyst
Email: nguyenlt2@techcombank.com.vn
Ext: 1244
Strategy and Corporate Development
Jul 2014
OVERVIEW
 OCB deployed consumer credit package for individual customers
with interest rate of 9.99%/year fixed in 3 months. This is credit
package with the longest fixed interest rate period in the current market.
Previously, VIBank is a bank deploying a credit package with the
longest fixed interest rate period and applying the interest rate of
0.68%/month and fixed in 30 months. With these movements, it is
likely that banks are anticipating that the level of deposit interest rate
will remain stable at the low level in next 2-3 years.
 Banks continued to lower deposit interest rate in this week.
Vietcombank has the lowest deposit interest rates while VPBank
remains the highest deposit rates among G12 banks. This action came
after GSO’s announcement of CPI in November 2014. Accordingly,
CPI reduced by 0.27% against October but increased by 2.08% against
year-end 2013 and increased by 2.6% against the same period of last
year. SBV apparently has more rooms to lower interest ceiling in the
future.
 Vietinbank currently accounts for 15-17% market share of
Vietnamese remittances. It is statement of Vietinbank CEO in a
speech to the media recently. Now, Vietinbank has established a global
money transfer company, named Vietinbank - Global Money Transfer
from the beginning of 2012. Therefore, Vietinbank, Vietcombank,
Sacombank and DongABank are four banks that own money transfer
companies and account for approximately 80-90% of market share.
 Sacombank became the second bank in Vietnam after LienVietPost
Bank signing agreement of promoting payment of border trading
between Vietnamese and Chinese enterprises. While Sacombank
chose Bank of China (BOC), LienVietBank selected Agriculture Bank
of China as a partner deploying in all 3 provinces including Lang Son,
Lao Cai, and Mong Cai – Quang Ninh. China continuously maintained
the position as the largest commercial partner of Vietnam in the recent
10 years. It is likely that this is the key driver promoting Vietnamese
and Chinese banks to proactively looking for cooperation opportunities
recently.
 BIDV and Vietinbank are two banks leading in outstanding
housing loans subsidy of the Government. In another development,
recently, SBV allowed JSCBs to participate in this credit package to
accelerate the disbursement when many new objects will be allowed to
borrow this credit package. Accordingly, JSCBs will have 30 days since
November 25th to register with SBV
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Week 4 November 2014
Jul 2014

DEVELOPMENTS OF MARKETS AND POLICY

Vietinbank currently The amount of Vietnamese remittances in 2014 is estimated to be around USD
accounts for about 17% 12.1 billion, increased by about 10% against 2013. It was the statement of CEO
market share of oversea of VietinBank, which currently accounts for 15-17% market share of remittance.
remittance In particular, remittances to Vietnam through commercial bank system in HCM
city estimated at USD 4.4 billion in 11 months of 2014.

Remittances to Vietnam over years - Vnd' bn

12.1
11
10
9

2011 2012 2013 2014E

Credit growth in Hanoi is On November 27 2014, Hanoi Statistics Department announced the report on
lower than growth rate of Economic and Social in November 2014 with notable contents as follows:
the whole system - Total capital mobilized by credit institutes in Hanoi in November estimated
at VND 1.15 million billion, increased by 1.9% against October and by
10.2% against December 2013. In particular, deposit from residents and
economic organizations increased respectively 1.9% against October and
9.1% against the end of 2013.
- Total outstanding loan in November estimated at VND 1,006 trillion,
increased by 2.8% against October and by 6.4% against December 2013. In
which, short-term loans increased by 2.8% and decreased by 0.5% while
medium and long-term loans increased by 2.8% and 19.4%.
BIDV and Vietinbank are On November 20th, SBV issued documents about refinancing of housing loans
leading in the outstanding subsidy in October 2014 in accordance with the provisions of Resolution
housing loans subsidy No.02/NQ-CP. Accordingly, SBV approved to refinance housing loans subsidy
according to the credit for 5 commercial banks: Vietinbank, Agribank, Vietcombank, BIDV and MHB
package of VND 30,000 with the detailed information as follows:
billion of SBV
Unit: VND billion
Outstanding
Total refinancing
housing loans Refinancing
Banks amount as
subsidy value in October
announced

Vietinbank 1,032 893 140

Agribank 336 230 36
Vietcombank 740 677 63
BIDV 1,471 1,384 87
MHB 45 45 0.2

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Banks continued to lower According to SBV, in the week of from November 10th to November 14th, some
deposit interest rates large commercial banks decreased slightly their deposit interest rates for less
than 12 months terms. There are some details as follows:
- Vietcombank adjusted down by 0.1%-0.5%/year for terms of less than 12
months; VietinBank reduced by 0.2%/year for terms of 12-36 month;
Sacombank adjusted down by 0.1%/year for terms of 6-18 months; Maritime
Bank decreased by 0.1%-0.2%/year for almost all terms; VPBank decreased
by 0.1%/year for terms of 1-6 months
- Currently, deposit interest rate in VND is commonly 0.8-1%/year for
demand deposits or less than 1 month term deposits; 5-5.5%/year for 1
month term and less than 6 months term deposits; 5.7%-6.8%/year for 6
months and less than 12 months terms deposits; 6.8%-7.5%/year for more
than 12 months terms.
- Meanwhile, deposit interest rates in VND are commonly at rate ceiling of
0.25%/year for deposits of organizations, 0.75%/year for deposits of
residents, as regulated by SBV.

Update on deposit interest rate in VND of banks (24/11/2014)

Interest rates classified by terms
No. Banks Ticker Demand 1 2 3 6 9 12
account month months months months months months
1 BIDV BIDV 0.80% 4.30% 4.50% 5.00% 5.30% 5.40% 7.00%
2 Vietinbank CTG 0.80% 4.50% 4.50% 5.00% 5.50% 5.50%
3 Vietcombank VCB 0.80% 4.00% 4.50% 4.90% 5.30% 5.40% 6.20%
4 ACBank ACB 4.70% 4.70% 4.90% 5.60% 5.80% 6.40%
5 Eximbank EIB 0.30% 4.78% 4.78% 4.88% 5.58% 5.80% 6.38%
6 Military Bank MBB 0.30% 4.30% 4.50% 5.00% 5.30% 5.70% 7.00%
7 Sacombank STB 0.30% 4.75% 4.80% 4.90% 5.40% 5.70% 6.10%
8 Techcombank TCB 0.30% 4.80% 4.95% 4.95% 5.55% 5.80% 6.50%
9 Maritimebank MSB 4.60% 4.80% 5.00% 5.50% 5.80% 6.50%
10 VIBank VIB 5.00% 5.00% 5.00% 5.50% 5.50% 6.50%
11 VPBank VPB 0.50% 5.40% 5.40% 5.50% 5.90% 6.20% 7.00%
Source: SBV’s website

INFORMATION ON PROGRAMS, PRODUCTS, NETWORK…OF TCB AND COMPETITORS

From now until June 30th 2015, ACB deploys lending program “Sensitive in 24
hours” with main contents as follows:
- Object: Individuals customers
- Loan purpose: To supplement capital for production and business operations
in the holiday and New year
- Interest rates:
+/ Interest rate in the first year = 7%/year in the first 3 months; 9.5% in the
following months
+/ Interest rate in the second year = 13-month saving interest rate of ACB +
margin of 3%/year
+/ Interest rate in the third year = 13-month saving interest rate of ACB +

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margin of 3.5%/year
+/ Interest rate in the remaining years = 13-month saving interest rate of
ACB + margin of 4%/year
- Loan amount: Minimum of VND 300 million/loan
- Lending period: Maximum of 84 months
- Lending methods are flexible according to demand (providing line of credit,
installment loans, supplying overdraft limit)
- Other incentives:
+/ Reducing 50% of domestic transaction fees for customers opening new
credit accounts
+/ Free annual fee in the first year for customers opening credit cards
On November 20th 2014, in Lang Son, Sacombank and Bank of China (BOC)
signed cooperation agreement in providing payment of border trading services
for import and export enterprises in Vietnam and China. Accordingly,
Sacombank and BOC will apply the online payment of border trading method
for fast processing of payment as well as closing border trading between two
parties. Representatives of Sacombank implementing these transactions are
Lang Son Branch and Quang Ninh branch; representative of BOC are Bang
Tuong branch and Dong Hung branch
From November 26th to December 31st 2014, Eximbank deployed promotion
program “Deposit with preferential interest rate” with the main contents as
follows:
- Promotional products and services: Normal VND deposits, saving deposits
or saving deposits with interest rate selection, 3-month term, receiving
interest rate at maturity and deposit amount of minimum VND 100 million
- Objects: Individual customers depositing VND new capital (VND new
capital can be understood as an increase of VND deposit amount of
customers compared with deposit balance of all terms in Eximbank on
November 19th 2014)
- Promotional forms: Giving bonus interest rate of +0.4%/year adding directly
to interest rate of saving and deposit accounts participating the program
Other banks Recently, ABBank cooperated with the Chinese International cooperation
agency (JICA) to deploy “Medium and long term lending support to SMEs
program” with the main contents as follows:
- Objects: SMEs registered business under the provision of law, having
charter capital of up to VND 20 billion or the average annual number of
employees does not exceed 300 people based on the professions
- Loan limit: Maximum 85% of value of investment project
- Interest rate: Reducing maximum 4.0%/year compared with current lending
rate of ABBank
- Loan tenor: Up to 10 years
- Grace period of principal: Maximum 2 years
Recently, OCB revised credit package “OCB – Borrowing quickly and cheaply”
which has been deployed since the early November 2014. Accordingly, for
above-48-month loans, OCB will apply the interest rate of 9.9%/year and fixed

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in 3 years. Therefore, this is a lending program with the longest fixed interest
rate in the current market

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