It has been opining that Japan’s banks are currently the biggest competition for Vietnam banking business in the domestic market, but the competitions come from newly established market of ASEAN nations are really wary.? Accordingly, most of the banks in Vietnam considered Japanese banks as the main competitors, followed by financial institutions from Europe. This mainly stems from the thought that threeJapanese banks has already beenpartneringstrategicallywith the largest banks in Vietnam. However, it appears that Vietnam has many potential for retail banking, andthis is not the strength of Japanese banks.? With the ASEAN Economic Community, there will be other eligible banks participating in the market; experts of E&Y warn that financial institutions in Thailand, Malaysia and Singapore shall be thelargest threats. ASEAN banks will be active in the M&A in banking in Vietnam when local bank undergo through restructuring. When bad debt is still the biggest concerns, Vietnam banks are still full of potential.? A recent survey reveals 94% of Vietnam banks expect better results in the near future.