Foreign Banks Fleeing Viet Nam

Corruption and bad debt are two of the biggest problems. My ex-gf holds a high position in one of the bigger banks, she said the amount of fake paperwork is staggering.

What do you think that means potentially for the economy in general...
Lots of talk about the property bubble bursting...

michaellieptourists wrote:

What do you think that means potentially for the economy in general...
Lots of talk about the property bubble bursting...

They were only small players here, with very few branches or footprint in Vietnam. Agribank has something like 2400 branches.

"The decision stated that compensation for all insured individual deposits would be capped at 75 million dong (US$3,300) in the case of bankruptcy."

"Moreover, bankrupt banks must submit their assets to the tax department before settling with individual depositors. Financial analysts warn there is little to no security for depositors at banks with small charter capital."

US$ 3'300 is not that much. 
In my home country we get about US$ 100'000.

Which are the safest banks in Vietnam? 
The banks the Vietnamese government can never let go bankrupt (too big to fail)?

"Which are the safest banks in Vietnam? 
The banks the Vietnamese government can never let go bankrupt (too big to fail)?.."       (  )

   You cannot be that naive..?       

   Aside from (all) the prophets of gloom and doom telling the rest of us what we already know: the world economy collapse will happen...

  The only question is when.   So look at the 2008 total collapse in America where all ATM's and Banks closed.   Cyprus and Greece ring any (alarm) bells..?   India's removal of large denominations?   France & Portugal on the edge of collapse..?      The fast increase of China & Russia's  gold reserves..?   (etc)   I'm amazed too; at how fast we forget...

Try a little objective research.   It might scare you suitably...     

gobot wrote:

Article of interest to expats. "Fleeing" is hyperbole, and only offers speculation about why banks are leaving/divesting.

Foreign Banks Fleeing Viet Nam

Thanks fro the link.

It helps to understand why everyone buys gold. It seems banks are used more for liquid assets to pay periodic bills, but real savings are in gold or real estate.
And even real estate is dicey.

I suppose this is also one of the outcomes from a bureaucracy that is over dependent on paperwork.

Hi Gobot. Thank you for the Bank Information. Given your experience and insight to life in Vietnam I was hoping you might have some time to comment on some questions I have.

1.    How does the banking situation affect foreigners that are already living/retired in Vietnam? Assuming they are receiving pensions or other income streams and have Vietnam Bank accounts set up to live on what do you think they are going/can/should to do given the worst case scenario your article outlined (potential bank bankruptcy)?

2.    Do you have any personal recommendations for a person like me who is looking at the potential to retire in Vietnam? If I can’t establish a Vietnam banking platform to safely manage my pension income streams (UK to Vietnam) that I would need to live on, the prospect of retirement in Vietnam seems worrisome.

3.    In your opinion, Is Vietnam a Best Wait and See What happens in 2018 – 2019 – 2020 before retiring there?

I appreciate any personal thoughts and comments you may have

Best Regards
Kytain

Wxx3 wrote:

It helps to understand why everyone buys gold. It seems banks are used more for liquid assets to pay periodic bills, but real savings are in gold or real estate.
And even real estate is dicey.

Everyone has been buying gold since before the country was divided.  The 1M Northerners who volunteered to move South after the Geneva Conference all carried gold next to their bodies.  That tradition has yet to fade in a century (probably much longer, but I knew about those years either personally or through my parents who had firsthand knowledge, so I'll stay with that number.)

Real estate wasn't the Vietnamese way, not until tourists and foreigners became part of the landscape and rental properties became a way to make money.  Not that it's a good way, but everyone has thought it was.  Still, properties were purchased with gold, so gold is still the main asset and will continue until eternity.

Neither my bank nor my credit union in the united states shut down in 2008. I even got a mortgage for a house through my US bank.

lirelou wrote:

Neither my bank nor my credit union in the united states shut down in 2008. I even got a mortgage for a house through my US bank.

I believe it's a bit of exaggeration on Bazza's part. 

The real estate bubble burst, Lehman Brothers went bankrupt, Merrill Lynch, Freddie Mac and Fannie Mae had to be rescued, but not all, not half, not even a quarter of banks and ATMs were closed.  It was a very bad few weeks for real estate people and the banks that supported them.  For the rest of the country, life was more exciting around the water cooler but that's just about it. 

Spouse and I lost quite a bit on our home because we bought it high and sold it low a couple of years later, but that's life.  At least we found a buyer who loved and wanted our home.  It could've been worse; we could've still carried the mortgage to this day on an overvalued property.

Nor do I remember my local bank or ATMs ever closing down. After the bank bailout..I did move my accounts over to a credit union.

Amen

Ok, but beware the Ides of March.

History does not repeat itself...     

Kytain wrote:

Hi Gobot. Thank you for the Bank Information. Given your experience and insight to life in Vietnam I was hoping you might have some time to comment on some questions I have.

1.    How does the banking situation affect foreigners that are already living/retired in Vietnam? Assuming they are receiving pensions or other income streams and have Vietnam Bank accounts set up to live on what do you think they are going/can/should to do given the worst case scenario your article outlined (potential bank bankruptcy)?

2.    Do you have any personal recommendations for a person like me who is looking at the potential to retire in Vietnam? If I can’t establish a Vietnam banking platform to safely manage my pension income streams (UK to Vietnam) that I would need to live on, the prospect of retirement in Vietnam seems worrisome.

3.    In your opinion, Is Vietnam a Best Wait and See What happens in 2018 – 2019 – 2020 before retiring there?

I appreciate any personal thoughts and comments you may have

Best Regards
Kytain

At least in my regard, the safety of the banks or not, really does not change anything.
My pensions are USA based, as are my assets, banks, etc.
Nothing will change. I will probably open a bank account next year, but will only keep a month of expense money, at most a couple thousand USD.
I will not buy real estate.

Basically, I love Vietnam and the people, but there is not reason to keep significant assets here. It's like a black-hole, you can bring it in, but don't plan on taking it out.

gobot wrote:

Article of interest to expats. "Fleeing" is hyperbole, and only offers speculation about why banks are leaving/divesting.

Foreign Banks Fleeing Viet Nam

Which begs the question:

Even if I could have my SSA and V.A. Disability Compensation checks direct deposited in VN, why would I, especially with that virtually-worthless account insurance program against loss?

For myself, as long as I arrive and continue to remain in (and out) of VN on a series of non-resident visas, I'll maintain a banking/residence address with family/friends in Southern California as I continue my "extended world tour".

My Charles Schwab account will continue to be accessible in the local currency, ATM fee free (refundable monthly) without foreign transaction fees.

I wonder if ATM fees and exchange rates will become more expensive as the demand for access and conversion of foreign funds through ATM's increases?

Gordy

Bazza139 wrote:

"Which are the safest banks in Vietnam? 
The banks the Vietnamese government can never let go bankrupt (too big to fail)?.."       (  )

   You cannot be that naive..?       

   Aside from (all) the prophets of gloom and doom telling the rest of us what we already know: the world economy collapse will happen...

  The only question is when.   So look at the 2008 total collapse in America where all ATM's and Banks closed.   Cyprus and Greece ring any (alarm) bells..?   India's removal of large denominations?   France & Portugal on the edge of collapse..?      The fast increase of China & Russia's  gold reserves..?   (etc)   I'm amazed too; at how fast we forget...

Try a little objective research.   It might scare you suitably...     

People like you who call the dissenting as naive and stupid and see yourself as omniscient are usually called narcissists.
I don't call people like you (who seem to deposit the money in the mattress) as paranoid either.
This has something to do with decency or respect for people with a different view.
But you can't expect too much from someone who rarely makes a reasonable whole sentence and often gives incomprehensible comments that don't help anyone.

And for your information, not everyone learns nothing from their economic failures.
There are countries that have done the housework and have e. g. increased the legally required equity (equity) in order to better protect the customers.

Times have changed. The central banks intervene differently than in the past. They can turn the interest rate screw or launch government bonds to prevent the impending collapse.

Governments cannot afford to let systemically relevant institutions go bankrupt. That is why they are rescued or taken over by the state.

There are certainly countries with high levels of corruption and populist regimes that are isolated in the world.
Maybe these countries cannot easily overcome a financial crisis.
I'm not sure if Vietnam is one of them.
Therefore my question about the most safe (or systemically relevant) banks.

PS:
Already 20 years ago there were those who predicted a collapse of the world economy and advised to secure themselves with gold.
But diversification is the solution.
No one's ever said you must have all your money in Vietnamese banks.

I agree with everything you wrote...

Thank you for helping others to look in the mirror     

               (Bn, Br)      ..as in Quora...

I just saw this article online.   Perhaps things are as bad as they seem.

https://e.vnexpress.net/news/business/e … 17492.html

Kytain wrote:

Hi Gobot. Thank you for the Bank Information. Given your experience and insight to life in Vietnam I was hoping you might have some time to comment on some questions I have.

I am no expert expat just an opinionated one.

1. How does the banking situation affect foreigners that are already living/retired in Vietnam? Assuming they are receiving pensions or other income streams and have Vietnam Bank accounts set up to live on what do you think they are going/can/should to do given the worst case scenario your article outlined (potential bank bankruptcy)?

I just shared the article as a FYI. I don't know whether the banks are in a dire state or not. Look at the article linked by @danhask: Fitch bureau is upgrading VN banks. Too much fake news and click bait these days. I am not too worried about big banks caving because I assume they are mostly owned by the government or rich people with lots of government influence.

2. Do you have any personal recommendations for a person like me who is looking at the potential to retire in Vietnam? If I can’t establish a Vietnam banking platform to safely manage my pension income streams (UK to Vietnam) that I would need to live on, the prospect of retirement in Vietnam seems worrisome.

There are two kinds of expats on this forum. Me and at least two others in this thread are Americans with low fee checking accounts who keep their fortunes in the US. Retirement or other income is direct deposited. We use ATMs here for daily expenses, and haven't needed to use local banks. I highly recommend this simple approach for a new expat. The second kind of expat happily uses Vietnamese banks, and are getting around 7% interest in their VND accounts. The dong is loosely pegged to the USD, maybe losing 1 or 2 percent, so these depositors are coming out ahead. Note that people who are getting paid working in VN (like teachers) have to have VN bank accounts.

3. In your opinion, Is Vietnam a Best Wait and See What happens in 2018 – 2019 – 2020 before retiring there?

Nah! Don't use this article for an excuse, you procrastinator!    Really, Vietnam is booming. I don't know your situation, have you been here? All prospective expats must visit and stay for at least a month anyplace you are thinking about moving. In SE Asia they should try at least VN, Thailand, Philippines, maybe Laos. Poorer countries will require a bigger adjustment. I've been to 26 countries, there was something special about Saigon, that's why I am here. But Vietnam isn't for everyone, lots of tourists hate it and don't come back!

Andy Passenger wrote:

...
This has something to do with decency or respect for people with a different view.
But you can't expect too much from someone who rarely makes a reasonable whole sentence and often gives incomprehensible comments that don't help anyone.

Andy, sorry but give yourself some more time to see and appreciate where the Bazza man is coming from. He isn't so interested in the play by play, the rules violations, the player interviews. He is the color man in the booth, looking at the big picture, analyzing from 10,000 feet, and making some jokes. 

@Kytain

I think everyone has to find out for themselves what's best for them.

If you really want stay in Vietnam for the rest of your life (you'll have to live in vietnam for a few months before you see if it's right for you), then I think a Vietnamese bank account make sense.
Especially if you want buy a car or properties, then it is advantageous to have a Vietnamese bank account.
Please also note that Vietnamese banks offer savings books with up to 7% interest rates.
The link from danhask shows that Agribank, Vietinbank and the ACB are rated positive from the Fitch and Moody’s.
According this link http://english.vietnamnet.vn/fms/busine … mbank.html from June 2017, Moody's downgraded the Sacombank (I have a Sacombank account  )
But acccording to this link http://bizhub.vn/banking/restructuring- … 1252.html, also Sacombank seems to be doing its homework.
Therefore, I don't think there is a big risk if you have an account with one of these banks.

You can also rent a safe deposit box at a bank and deposit some gold there.

Before you move to Vietnam, I'd look for a good bank in UK for your needs.
I don't know about taxes in UK. In my case, I don't must pay anymore taxes after I give notice of departure to my home country.
So I'll have my monthly pension transferred to the bank account in my home country. Then I can transfer money to the Vietnamese account as needed.
The UK bank should support emigre, should offer bank transfer to Vietnam and should have low fees.

You should also have a international credit cards with no foreign transaction fee (google or ask other expats).
I use the DKB Visa Card (incl. a German checking account) which pay back the currency exchange fees, but not anymore the foreigner ATM fees (e.g. VND 60'000).
But for example, the HSBC does not charge any ATM fees when I withdraw with the DKB Visa Card.
Also the ATM withdraw limit is a problem. Some here told that they can only withdraw VND 2 million or 5 million.
I think you must find out which card is best for which ATM.
I can withdraw with the DKB Visa Card VND 6.8 million Dong at a HSBC ATM.
Or with my Sacombank Visa Card, I can withdraw 10 million at a Sacombank ATM.

Additional do a UK bank account, a Vietnamese bank account and a international credit card,  you can also use WesternUnion for tranfering cash to Vietnam in case of emergency.

I personally use all the above mentioned possibilities and are not worried about my money. Next to the bank accounts in my home country and in Vietnam, I use also the German checking account from the Visa card.

Another point which you should also consider, if you have your money on a Euro or £ account, the exchange rate is very important. Check the exchange rate for the last 6 months. You will see, that the time you transfer money to Vietnam (or withdraw from an ATM) is essential. With the exchange rate you can loose more money than with the bank transfer fee.

Thank you very much Gobot. Your comments and advice are warmly received.

I have been to Vietnam for extended periods of time over the last 3 years. I have also had the opportunity live and travel to many countries. I am seriously looking to retire in Vietnam. It is a wonderful country and the people are lovely.

Best Regards
Gary

Thank you Andy for your insight and advice. I have booked a flight to Vietnam this coming May and am going to try and open a Vietnamese bank Account. I was hoping you could help with some questions before I depart..

1.    Do you know which banks offer safety deposit boxes? Do you know how much they cost?

2.    I am going to try and open a bank account with Vietcombank, VIB, HSBC or Saccom Bank. I am
       planning to take the following documents with me:
-    PROOF OF U.S. INCOME (U.S. NAVY AND SOCIAL SECURITY PENSION STATEMENTS)
-    PROOF OF UK INCOME (UK PENSION STATEMENT)
-    6 MONTHS U.S. WELLS FARGO BANK STATEMENTS CONFIRMING PENSION DEPOSITS
-    6 MONTHS UK BARCLAY BANK STATEMENTS CONFIRMING PENSION DEPOSITS
-    A COPY OF MY NET ANNUAL U.S. AND UK INCOME STATEMENT
-    COPY OF UK AND VIETNAMESE MARRIAGE CERTIFICATES – I MARRIED MY VIETNAMESE WIFE IN
        2017
-    COPY OF MY WIFE’S LEASE AGREEMENTY – MY WIFE AND I STAY IN HCM EVERY YEAR IN HER 
        RENTED HOUSE

3.    Can you suggest any other documentation I may need?

4.    Do you think it is possible to open a U.S. dollar and a VND account with a bank?

5.    Should I try to open a checking and savings account or just a savings account?

6.    Do banks issue ATM cards with mobile application and/or online management capabilities?

Thank you very much for your time and consideration

Best Regards

Gary

Hi Gary

I did it all with the help of my girlfriend (today's wife).
Although there are people in the larger bank branches who speak English quite well, I recommend to bring someone who speaks Vietnamese.

I've never had any problems with banks, lawyers, post office, administrations, etc., but I can't say how much the presence of my wife has contributed to it.

I only know the Sacombank and the VietcomBank.
At the Sacombank I (and my wife) have a bank account and the VietcomBank we needed for a temporary blocked account when we withdrew from a real estate transaction.
In my opinion, all transactions are very transparent and safe.
Without your passport you have no chance to do anything.
All major cash or bank transfer transactions are carefully checked by a kind of department head at the bank counter.

To open a current acount at Sacombank, I only needed the passport, the visa (3-month tourist visa), a Vietnamese address, a phone number (Vietnamese) and an email address (I think if you (I think if you draw a salary in Vietnam other rules apply). I choosed the Combo-2 packet with VISA card and e-banking (English, also for mobile phone) for about 24k Dong a month.
I think the e-banking has a high safety level (TAN code send to phone, password can't copy/past, etc.).
I think you can unlimitted transfer money from a foreign bank account to the Vietnamese bank account.
Because my bank in my home country doesn't support VND, I transfer CHF with an OUR transaction (OUR – the payer (you) pays all the fees including fees of other banks applied to this transfer). The money is automatically converted to VND by a "correspondent bank" during the transaktion. The costs are CHF 24 independent of the amount.
The VISA payment limit is 50 million a day.
The e-banking money transfer is limitted to 500 million a day.
You can open an USD and a VND current account at Sacombank.
Transfer money from the Vietnamese bank account to a foreign bank is complicate. You have to justify every major transaction.
Same when a Vietnamese citizen want transfer a higher amout of money from his Vietnamese bank account to your Vietnamese bank account (because you are a foreigner). The bank don't accept this (I have experienced this with Sacombank and VietcomBank). Maybe if the Vietnamese citizen exact can justify the transaction. But it will be not easy.

Sacombank has also saving account, but I don't know more about that.
But I recommend to open a safe book (really a hardcopy document) at Sacombank. They give between about 4 and 7% interest, depending on how often you want withdraw the interest.

VietcomBank provide also an English e-banking. But I don't know more about that.

Sacombank at 266-268 Nam Ky Khoi Nghia, Phuong 8, Quan 3, have safety deposit boxes. The smalled box (about A4 size with a hight of about 8cm) is about VND 1.5 million a year. I don't know about the costs from the other box sizes.
I have rent the safety deposit boxes on the name of my wife (at that time my girlfriend).
But it should also be possible for foreigner.

Thank you again Andy. Lots of food for thought. A couple of questions

1. With respect to managing future international transfers from my U.S. and UK banks to my Vietnamese bank  - The U.S. uses a Routing number. The UK use an IBAN number. DO VIETNAM BANKS USE EITHER OF THESE TYPE OF NUMBERS OR SOMETHING DIFFERENT?

2. How long ago did you open your Vietnamese bank accounts?

Best Regards
Gary

Hi Gary

1. I don't know anything about U.S. Routing Numbers.
Vietnamese banks don't have IBAN. Just a bank account number.
You should know the SWIFT or BIC code of the Vietnamese bank and sometimes the branch name.

2. About half a year ago.

There's some misinformation here. All the banks and ATMs did NOT close during the 2008 economic slowdown in the US.

And a total global financial collapse? That's some amazing stuff you're reading (or smoking.)

Thank Andy

Gary

Grrrr,....Yogi has woke up from hybernation.
What’s this ,,ya’s talkin about why the foreign banks are leaving.

It’s simple, they came here for strategic placement...ie , incase things “took off” they are already here, boots & tootsies on the ground , contacts in place , ready to jump in and make money.   

But , things have changed.   It certainly took off, but the cash that got it off the ground has limited future.    FDI , Oil money will eventually drawback .   The SOEs here are in financial strife, the employees and directors are stripping the joint of money and pissing off.   

You’ve got bank employees on death row.   Govt officials lined up behind them looking at long prison sentences for embezzlement.  It ain’t pretty.     

You’ve got a property boom funded by mainly a shitload of borrowed money & shady ill gotten gains.   There’s not much “ sweat money” funding it.  It’s what they call funny money.   But it won’t be funny when the bubble pops.....and they all do. 😳

I’ve said before, Industry 4 will knock the guts out of the place in the not too distant future.    Think about it,,,property bubble pops, the banks that funded it have poop running down their legs,  Industry 4 wipes out most of the assembly work in the factories, the Chinese are Damming the Mekong, that’ll stuff agriculture,  the Dong will be shakey,....Tourism is all they’ve have , and the prime minister here has already admitted that at the APEC conference.    Booms don’t last .

Remember the Asian financial crises in 1992.    Land in Tokyo was “worth” USD$750,000 a square metre.   That was about 30 years ago, it’s WAY less than that now.   It happened to the Japs , it can happen here.   

The banks sense that.  They like to make money for the shareholders of which I am a shareholder & former employee of one of those banks that left.   When they see smoke, they don’t wait for the fire to start.

So they’ve bailed out before the shitstorm hits.  I worked for one of those mobs for 30+ years.  They don’t like flogging a dead horse.

They’re a bit like dogs really.  (Yogi likes dogs by the way)

Ya see, if you watch a dog when it sees something ,,,,it will look at it, sniff it , turn it’s head to one side & quickly figure out if it can’t eat it, or ***  it ....it will piss on it & walk away looking for another opportunity.

That’s why the banks left. 

And with that ,,,  Yogi bids y’all farewell.    He’s having a change of turf. 

Adios.

Hi Yogi, pretty straight forward view on your part. Given your insight to banking and the fact you are living in Vietnam, how do manage you financial needs and wants.

1. Do you have a Vietnamese Bank Account (checking and/or savings)? If yes, who do you bank with? If no, do you just use ATMS?

Cheers
Kytain

@Bazza 139
"Ok, but beware the Ides of March.
"History does not repeat itself..."

As a historian by training I can say that history doesn't repeat itself -- but it often rhymes!

As for foreign banks bailing out, my 400-dong worth is that the foreign franchises -- and ANZ, CBA, HSBC etc are all franchises -- are being bought out by Korean or Japanese or whatever banks. My wife's ANZ account suddenly became Korean Shinhan, and the switch was terribly managed with blocked ATM cards etc.

Even before the buyouts, I couldn't transfer money from my Malaysian HSBC account to/from Vietnam without a red invoice. HSBC still exists here, but it rendered my Malaysian HSBC account useless after we moved to Vietnam. I couldn't even deposit cash into an HCMC HSBC branch to top up my Malaysian credit card.

It's a slightly different story if you have an official job here with salary deposited into your account. I understand that the government plans to liberalise things a bit to bring banking into line with ASEAN practice. But this is Vietnam, and plans and implementation are often guesswork.

Sorry I can't be of more help...

@Andy Passenger   -   I have both Sacom Bank and VietinBank, with the bulk of our interest bearing VN Dong being in VietinBank.  We are living off interest alkone.   How do you think they are really doing - I remember when VietinBank and Vietcom bank were VietincomBank back in the early 2000's, they split up.   I know its all a crap shoot but if you had more than 4Billion Dong in one or the other, is it insured??   I must say this article has me thinking.........yes, we have done well in the interest game, is it time to pull out??   a Bird in the Hand you know???

Only thinkers think.  The minions & drones..?

..become victims of their intelligence...

We all reap the harvest of the seeds we have sown

Not that I want to sow any seeds of paranoia, but I'm rather surprised that no-one has yet linked the withdrawal of foreign banks from Vietnam to China's increasing belligerence in the region - which became more noticeable around the same time as the orange clown won the recent US election, vowing to 'put America first' and declaring that other countries in the region needed to pay more for America's protection. 
Fortunately, he seems to have quietened down on that front in more recent times but, to my knowledge at least, the 'threat' has never been withdrawn.
China's National People's Congress is running for the next two weeks, during which time it's expected to rubber stamp an extended term of office for the president.  Make of that what you will...

is it safe to put vnd for saving in the sacombank?

I believe that the forum subject is about 'foreign banks fleeing VN' NOT associated with local VN banks.

Dr. G wrote:

I believe that the forum subject is about 'foreign banks fleeing VN' NOT associated with local VN banks.

I think that gabot posted this link to inform the expats about possible turbulences in the Vietnamese financial system. And this also includes domestic banks.

Andy Passenger wrote:

Dr. G wrote:

I believe that the forum subject is about 'foreign banks fleeing VN' NOT associated with local VN banks.

I think that gabot posted this link to inform the expats about possible turbulences in the Vietnamese financial system. And this also includes domestic banks.

Agree, it's all interrelated.

Unbelievable to read how some people fret about opening a bank account in Vietnam due to the supposed instability of the banks.  If all you're doing is receiving some spending money from abroad and paying a few bills, your risks are rather minimal I would've thought and if I understand correctly up to $3300 is covered by insurance anyway.

Nevertheless it may make sense to go with a big state owned bank like Agri, Vietcom, Vietin or BIDV. I don't imagine these will ever be filing for bankruptcy.
And if you have lot in term deposits, use several of the more stable banks?

Also I don't believe it is true that you cannot withdraw VND to send back overseas, especially if you're a foreigner. I think you just need to be able show that the money either came in from overseas originally, or that it was lawfully earned in Vietnam and properly declared/taxes paid. Depositing cash into your account could cause problems as it will be hard to show where that money came from.

While there may be more (perceived) risk of saving money in Vietnamese banks, I do wonder if that is really the reality when taking everything into account. The fact remains that if you'd put money into a VND term deposit at 7-8% one year ago, you'd have 7-8% more VND now and the USDVND exchange rate hasn't moved in that period. That means 7-8% more USD.  While the VND may eventually (be allowed to) drift lower due to an inflation differential, many emerging market currencies are also forecast to, gradually over time, strengthen against the established hard currencies of the world (in real terms). This will be in line with the maturing of the respective economies and generally these countries becoming more competitive and expensive than they currently are.
Another thing to bear in mind is that as economies grow briskly, real interest rates tend to be much higher to keep a lid on investment and prevent overheating. As economic growth peters out, rates are cut to the bone to try to goose the economy, rates become negative in real terms and saving becomes a way to guarantee the loss of purchasing power over time.

I think it is also likely that capital controls will be lifted gradually over time. A fully exchangeable currency would help Vietnam in the long run and make it a more credible investment destination, and with ever-increasing ASEAN integration it will be hard to avoid.

Obviously diversification is king, I would certainly not put my entire life savings in VND.

I found opening a bank account to be a breeze and looking at one of the posts above where someone was preparing to bring a long list of documents made me chuckle. All I needed was my passport (and the visa therein) and the process was very straightforward. I received my internet banking codes within 15 minutes or so via SMS on my nominated number and paid my first bill via internet banking an hour or so after walking into the bank!

My partner is a top level manager at one of the larger VN banks and I can tell you that her thoughts are that the two are very much unrelated and that there is another major reason why foreign banks, e.g., CBA - Australia et al, are pulling out of VN - unrelated to local banks structures, as such except that those foreign banks which may be have some level of fiduciary or operational relationship with local banks may have given consideration to the ineffectiveness of 'some' locals bank as contributing to their decision to withdraw from VN. I understand, however, that there are other more prominent reasons for foreign bank closing down operations, here.