Vietnam needs over 31 million US dollars to modernize banks, including the construction of an inter-bank electronic payment system, local newspaper Saigon Liberation reported Tuesday.

Over 26.4 million dollars are needed to build the system, and 5 million dollars to upgrade information technology and communication networks of the State Bank of Vietnam. Up to 80.3 percent of the money will come from foreign loans.

Local banks in Vietnam are competitively weak and likely to lose their market share to foreign rivals during the international economic integration process, local experts said, noting that Vietnamese commercial banks are much less competitive in terms of capital, manpower, technology, management, service and market.

Besides, technologies used in the banks are outdated, making them unable to establish highly effective risk management systems,internal payment systems and inspecting and auditing systems, the experts said.

Now, Vietnam is home to the state bank, one policy bank, five state-owned commercial banks, 36 commercial joint stock banks, four joint-venture banks, 28 branches of foreign banks, five finance companies and nine finance leasing firms.

Source: Xinhua