Vietnam suffers from a culture and society of scams, fraud, fakes, corruption, nepotism.. generally people are still poor and are hungry to make a quick buck.. therefore the Vietnamese people should not be totally trusted!
Well you can say that Viettin and Vietcombank def have created a bad rep for the banks in Vietnam.
But it doesnt mean there arent trustable banks, Techcombank and MSB are 2 trustable ones and handle stuffs like any normal banks without making you lose money suddenly every now and then.
Funny cause TCB is literally backing the (current) infamous Vinfast, but I suppose Vinfast is only infamous to foreigners as opposed to its somewhat better reputation in Vietnam, so TCB’s images are also not affected in Vietnameses’ eyes
They made customers lose money, acted unprofessionally and have costed people thousands of dollars.
While Techcombank and MSB generallt havent gotten into any issues like them.
I work in Finance big chunk of my life. Don't trust banks. I can tell loads of sleazy things but I won't. But more to fear are the governments.
While the European Union for example claims no issues with cash you do need to be able to trace money. For example if you go to a bank you need to explain where the money comes from and that you paid taxes on it. Also when you want to get a larger amount of cash out of your bank you need to explain what you need it for.
Same goes here in Vietnam. I just opened a bank account and for example I can only deposit money in it I can prove where it comes from and that taxes are paid on it.
Government knows exactly who has money where it goes to and on what. At least a bank is profit driven so I know their motivation. Governments are not that clear.
That’s why you should try to get paid in USD if possible and get your money to an overseas bank. Even with all the bank scandals, interest rates are bad and inflation is as well.
Some of the “spend it now” is due to past inflation where it was over 20% per year.
See land and home prices.
It’s the only asset locals can own where ownership is held up by the system.
There is gold, but the government controls that market and people can steal it.
Your home is safe until the government decides that they need your land to develop a factory, airport, highway, power plant, etc. Then they seize your land, bulldoze your house and give you a 10th of what you paid for it in compensation.
The problem is, you can't trust a bank in East Laos.
If your saving is below 1B (40k$) , you are small fish and no need to worry ❤️
When your saving reach above 1B, now you're a target. Your information is sale to real estate agent, life insurance, stock brokers...
If you reach 5B-10B. Now you're a juicy target. Your cute cashier may scam you, or her boss in this local bank where you deposit may scam you. Many way from dub you to buy bonds in the name of "smart saving", or dub you that you deposit but instead it's going into their pocket, or worse they transfer your account.
Don't trust me, just Google Bank fraud in VN, or type this phrase: Lừa đảo ngân hàng tại Việt Nam. Thing may sock you
https://vi.m.wikipedia.org/wiki/%C4%90%E1%BB%95i_ti%E1%BB%81n_t%E1%BA%A1i_Vi%E1%BB%87t_Nam,_1985
you can use google translate cuz i don't know other foreign site about this
This is a dire situation in Vietnam, more than what people usually think. Your money in your bank account someone just disappear, without any trace. My approach is usually create a saving account, deposit in there and only leave $500 in main bank account.
But with that alone, you still have to put your trust on the Vietnam's banking system. So, if just somehow, the system is broken, that your money is not lost due to stolen, but due to system error. How can you recover from that.
This is one a main indicator of lacking technical skills in Vietnam nowadays. Unlike most banks in other countries, Vietnam's bank account is not linking to any international system, like SWIFT. I have a bank account in Netherlands, it is associated with SWIFT and have an IBAN account. So it is more safe and more reliable than a self developed one in Vietnam.
It's not as simple as you said
It's not exactly because they don't trust bank. The nearest concern Vietnamese have is "how easily can I access my money when I need to?" And historically, banks in Vietnam have not made it very easy. You used to have to go through hoops to get your money back, even if it is your money. And talking about loans, oh no, no way Jose, unless you're willing to pay a kickback amount equivalent to 5-10% or more of the total. People hate banks for that, because banks don't make it easy for people to access money.
Of course nowadays, things have changed a bit. Still, old ingrained habits die hard. I don't just mean people's habits; even bank habits sometimes are still lingering. Lots of bank places and bank people still treat people coming into their banks as "beggars coming to get our money" instead of "customers deserving our utmost respect". We can only hope it'll change more in the future.
As for the concern about safety of money, maybe the recent scandals do affect it a little bit, but I think it's pretty negligible. If access to money is easy enough (or perceived as easy enough), Vietnamese will trust their hard-earned money to much shadier places. Just look at the numerous examples of "vỡ hụi", "giật hụi" ("hụi" = local compact of lenders/borrowers contributing to/borrowing from a common pool, those terms mean a failure of those causing total loss of money), and yet people continue participating in those things, all because they cannot get the same straightforward access from a bank.
Above I was talking about regular people's attitude.
Vietnamese banks get their money from multiple places. In the past (long past), they could only get money from the government, or big governmental entities. That's why money supply was so tight, and why it's so hard for regular people to withdraw/borrow money.
Nowadays, they also get money from small businesses, and some regular people too. They probably will get more money deposit still, if they can improve their service. But my guess is that they don't need it, or they don't appreciate it that much. If/when bank competition becomes more cut-throat, and they have to compete for every nickels from every Tom, Dick or Harry (or rather, every Dậu, Tuất or Hợi), I'm sure they'll find ways to boost the rate of people putting all their money in banks.
That may be some way off though, because Vietnamese banks have severe limit on foreign ownership (see https://www.mayerbrown.com/en/insights/publications/2024/03/vietnams-new-banking-law-for-foreign-investors-five-key-takeaways). For the most part, banks in Vietnam are still owned by Vietnamese and bank business conducted in Vietnamese ways. So the rate of changing will be rather slow (but hopefully steady and continuous).
Because the VCP fucked the Vietnamese economy up several times in the past, therefore a lot of Vietnamese can no longer trust the cash they are holding and the bank is nothing better.
Plenty of cases where funds were withdrawn criminally. Most of the times were by banking personnel but there were no recourse for the victim. If I had cash, I'd buy gold too.
People who do not understand are often afraid of new things, and the woman in the story does not represent all Vietnamese people. Many cases of losing money come from ignorance and being scammed.
It's like someone who is afraid of plane crashes, so they will never fly.
The fact that there are 13.5 million billion VND deposited in the banking system at the end of 2023.
I work in a bank and know a lot of people lack knowledge in finance and technology. They are like sheep waiting to be slaughtered.
Protect yourself, and don't click any suspicious links or receive any suspicious phone calls.
When people in society pool all their money together, everyone is taking a risk but on the long run everyone benefits.
Imagine how much unrecognized talent there is in Vietnam, simple because people don't trust each other to borrow/lend. All the businesses that could be opened, the homes that could be bought, or students who could be in college if they had financial aid.
Because it's incredibly unstable and not worth investing the precious little money they have into it. You can't afford take risks like that if have a low income and are on or below the breadline, like many Vietnamese are.
There's stablecoins, you have no idea what you're talking about
I've been sending money back home using USDC, a USA backed crypto. I send him usdc every month to my newphew who is tech literate, and he uses a fiat-usdc off ramp to convert it to Dong
Only a 0.6% fee, 100% safe
It's becoming so useful that he managed to convinced local Buddhist temple to accept usdc for donations for overseas donations
Vietnam already has one of the highest number of crypto wallets in the world. Its useful as a store of value for now since every other application hasn't been legalised yet.
I think its also more of a generational thing as most Vietnamese crypto people I know are below 45 years old. The rest prefer gold or real estate for their wealth.
Y’all 3rd. It’s India, USA, then Vietnam. But still I don’t hear anyone talk about it so maybe like you said it’s silent for those in the know / invested
Banks fail on a cadence eveywhere. In the west that cadence is multiple generations so people have forgotten that banks closed and their savings dissapeared but their debts were transfered to other banks.
There is no way the US government doesn’t backstop banks beyond FDIC. We have seen it multiple times with all the bank failures, the government always backstops the banks so people don’t lose their money. The last big bank failures, people who had millions in failed banks were on inconvenienced due to a delay in getting their money. This is to ensure there is no run on banks.
if one bank or a minor hiccup happens, yes you are insured. actually you are insured almost eveywhere ( every country Ive lived in has a similar law).
however this kind of insurance is historically recent. we don't know what would happen in a big crash like we had in the previous cycles. maybe people will be granted their nominal value of what they had up to 250K, but maybe the nominal value would have lost its economic energy.
in a big crash there has to be losses, so someone has to take the hit.
it is similar to inflation. people from 3rd world countries were aware of it and already hedging against it, because it is part of their family history (there are anecdotes, they live it on a day to day basis). for dwellers of developed nations, the inflation post 2019 has been a bit of a quick surprise.
That’s why they love gold
Gold standard making a comeback.
Vietnam suffers from a culture and society of scams, fraud, fakes, corruption, nepotism.. generally people are still poor and are hungry to make a quick buck.. therefore the Vietnamese people should not be totally trusted!
[удалено]
That’s my experience!
Trương mỹ Lan and her billions of dollars fraud. Death penalty!
Well you can say that Viettin and Vietcombank def have created a bad rep for the banks in Vietnam. But it doesnt mean there arent trustable banks, Techcombank and MSB are 2 trustable ones and handle stuffs like any normal banks without making you lose money suddenly every now and then.
You're aware of what happened with SCB last year, right?
SCB isnt one of those trustable one, thats all.
They were all trustable.... until they weren't.
Funny cause TCB is literally backing the (current) infamous Vinfast, but I suppose Vinfast is only infamous to foreigners as opposed to its somewhat better reputation in Vietnam, so TCB’s images are also not affected in Vietnameses’ eyes
https://tuoitre.vn/khach-hang-keu-mat-58-ti-ngan-hang-msb-noi-cong-an-dang-dieu-tra-20240327102155039.htm Seeding for MSB?
I'd say scb
I'm out of the loop. What happened to these banks?
They made customers lose money, acted unprofessionally and have costed people thousands of dollars. While Techcombank and MSB generallt havent gotten into any issues like them.
Yet
Remember this moment in a few months time when the news about MSB finally hits the market.
Havent it already hit the news once?
I work in Finance big chunk of my life. Don't trust banks. I can tell loads of sleazy things but I won't. But more to fear are the governments. While the European Union for example claims no issues with cash you do need to be able to trace money. For example if you go to a bank you need to explain where the money comes from and that you paid taxes on it. Also when you want to get a larger amount of cash out of your bank you need to explain what you need it for. Same goes here in Vietnam. I just opened a bank account and for example I can only deposit money in it I can prove where it comes from and that taxes are paid on it. Government knows exactly who has money where it goes to and on what. At least a bank is profit driven so I know their motivation. Governments are not that clear.
That’s why you should try to get paid in USD if possible and get your money to an overseas bank. Even with all the bank scandals, interest rates are bad and inflation is as well.
Some of the “spend it now” is due to past inflation where it was over 20% per year. See land and home prices. It’s the only asset locals can own where ownership is held up by the system. There is gold, but the government controls that market and people can steal it.
Your home is safe until the government decides that they need your land to develop a factory, airport, highway, power plant, etc. Then they seize your land, bulldoze your house and give you a 10th of what you paid for it in compensation.
But compare it to any other asset. At least you have a chance. How many projects have been delayed due to holdouts?
The problem is, you can't trust a bank in East Laos. If your saving is below 1B (40k$) , you are small fish and no need to worry ❤️ When your saving reach above 1B, now you're a target. Your information is sale to real estate agent, life insurance, stock brokers... If you reach 5B-10B. Now you're a juicy target. Your cute cashier may scam you, or her boss in this local bank where you deposit may scam you. Many way from dub you to buy bonds in the name of "smart saving", or dub you that you deposit but instead it's going into their pocket, or worse they transfer your account. Don't trust me, just Google Bank fraud in VN, or type this phrase: Lừa đảo ngân hàng tại Việt Nam. Thing may sock you
East Laos, lol
It's a self-deprecating name meaning that Vietnam is just a small country next to Lao.
It's just one the countless aspects of VN being a very low trust society.
a lot of people know what happened in 1985, so everybody know what's bank meaning
What happened in '85?
https://vi.m.wikipedia.org/wiki/%C4%90%E1%BB%95i_ti%E1%BB%81n_t%E1%BA%A1i_Vi%E1%BB%87t_Nam,_1985 you can use google translate cuz i don't know other foreign site about this
This is a dire situation in Vietnam, more than what people usually think. Your money in your bank account someone just disappear, without any trace. My approach is usually create a saving account, deposit in there and only leave $500 in main bank account. But with that alone, you still have to put your trust on the Vietnam's banking system. So, if just somehow, the system is broken, that your money is not lost due to stolen, but due to system error. How can you recover from that. This is one a main indicator of lacking technical skills in Vietnam nowadays. Unlike most banks in other countries, Vietnam's bank account is not linking to any international system, like SWIFT. I have a bank account in Netherlands, it is associated with SWIFT and have an IBAN account. So it is more safe and more reliable than a self developed one in Vietnam.
It's not as simple as you said It's not exactly because they don't trust bank. The nearest concern Vietnamese have is "how easily can I access my money when I need to?" And historically, banks in Vietnam have not made it very easy. You used to have to go through hoops to get your money back, even if it is your money. And talking about loans, oh no, no way Jose, unless you're willing to pay a kickback amount equivalent to 5-10% or more of the total. People hate banks for that, because banks don't make it easy for people to access money. Of course nowadays, things have changed a bit. Still, old ingrained habits die hard. I don't just mean people's habits; even bank habits sometimes are still lingering. Lots of bank places and bank people still treat people coming into their banks as "beggars coming to get our money" instead of "customers deserving our utmost respect". We can only hope it'll change more in the future. As for the concern about safety of money, maybe the recent scandals do affect it a little bit, but I think it's pretty negligible. If access to money is easy enough (or perceived as easy enough), Vietnamese will trust their hard-earned money to much shadier places. Just look at the numerous examples of "vỡ hụi", "giật hụi" ("hụi" = local compact of lenders/borrowers contributing to/borrowing from a common pool, those terms mean a failure of those causing total loss of money), and yet people continue participating in those things, all because they cannot get the same straightforward access from a bank.
Interesting. How do banks have money to loan then? Do they not want people to deposit money?
Above I was talking about regular people's attitude. Vietnamese banks get their money from multiple places. In the past (long past), they could only get money from the government, or big governmental entities. That's why money supply was so tight, and why it's so hard for regular people to withdraw/borrow money. Nowadays, they also get money from small businesses, and some regular people too. They probably will get more money deposit still, if they can improve their service. But my guess is that they don't need it, or they don't appreciate it that much. If/when bank competition becomes more cut-throat, and they have to compete for every nickels from every Tom, Dick or Harry (or rather, every Dậu, Tuất or Hợi), I'm sure they'll find ways to boost the rate of people putting all their money in banks. That may be some way off though, because Vietnamese banks have severe limit on foreign ownership (see https://www.mayerbrown.com/en/insights/publications/2024/03/vietnams-new-banking-law-for-foreign-investors-five-key-takeaways). For the most part, banks in Vietnam are still owned by Vietnamese and bank business conducted in Vietnamese ways. So the rate of changing will be rather slow (but hopefully steady and continuous).
Because the VCP fucked the Vietnamese economy up several times in the past, therefore a lot of Vietnamese can no longer trust the cash they are holding and the bank is nothing better.
That's why I use a British bank, can trust them
Plenty of cases where funds were withdrawn criminally. Most of the times were by banking personnel but there were no recourse for the victim. If I had cash, I'd buy gold too.
There's distrust in mostly everything here
People who do not understand are often afraid of new things, and the woman in the story does not represent all Vietnamese people. Many cases of losing money come from ignorance and being scammed. It's like someone who is afraid of plane crashes, so they will never fly. The fact that there are 13.5 million billion VND deposited in the banking system at the end of 2023. I work in a bank and know a lot of people lack knowledge in finance and technology. They are like sheep waiting to be slaughtered. Protect yourself, and don't click any suspicious links or receive any suspicious phone calls.
When people in society pool all their money together, everyone is taking a risk but on the long run everyone benefits. Imagine how much unrecognized talent there is in Vietnam, simple because people don't trust each other to borrow/lend. All the businesses that could be opened, the homes that could be bought, or students who could be in college if they had financial aid.
Why viets don’t talk about crypto ?
Because it's incredibly unstable and not worth investing the precious little money they have into it. You can't afford take risks like that if have a low income and are on or below the breadline, like many Vietnamese are.
There's stablecoins, you have no idea what you're talking about I've been sending money back home using USDC, a USA backed crypto. I send him usdc every month to my newphew who is tech literate, and he uses a fiat-usdc off ramp to convert it to Dong Only a 0.6% fee, 100% safe It's becoming so useful that he managed to convinced local Buddhist temple to accept usdc for donations for overseas donations
Vietnam already has one of the highest number of crypto wallets in the world. Its useful as a store of value for now since every other application hasn't been legalised yet. I think its also more of a generational thing as most Vietnamese crypto people I know are below 45 years old. The rest prefer gold or real estate for their wealth.
Y’all 3rd. It’s India, USA, then Vietnam. But still I don’t hear anyone talk about it so maybe like you said it’s silent for those in the know / invested
Banks fail on a cadence eveywhere. In the west that cadence is multiple generations so people have forgotten that banks closed and their savings dissapeared but their debts were transfered to other banks.
In the US there is FDIC. If banks fail, your account will be insured by the government up to 250k. There is nothing like that in Vietnam.
There is no way the US government doesn’t backstop banks beyond FDIC. We have seen it multiple times with all the bank failures, the government always backstops the banks so people don’t lose their money. The last big bank failures, people who had millions in failed banks were on inconvenienced due to a delay in getting their money. This is to ensure there is no run on banks.
if one bank or a minor hiccup happens, yes you are insured. actually you are insured almost eveywhere ( every country Ive lived in has a similar law). however this kind of insurance is historically recent. we don't know what would happen in a big crash like we had in the previous cycles. maybe people will be granted their nominal value of what they had up to 250K, but maybe the nominal value would have lost its economic energy. in a big crash there has to be losses, so someone has to take the hit. it is similar to inflation. people from 3rd world countries were aware of it and already hedging against it, because it is part of their family history (there are anecdotes, they live it on a day to day basis). for dwellers of developed nations, the inflation post 2019 has been a bit of a quick surprise.
2008 was a big crash, and the FDIC raised the cap from 100k to 250k.
Fact: VN had something familiar, insured is the famous 75M (3K$) now increases to 125 (5K $)