Each year, the President of the Federal Reserve Bank of San Francisco (FRBSF) travels on a “fact-finding” trip to Asia. These trips advance two of the Bank’s broad objectives: serving as a repository of expertise on economic, banking, and financial issues relating to the Pacific Rim and building ties with policymakers and economic officials there. The knowledge gained and the contacts developed during these trips provide valuable input to understanding trends affecting the Twelfth District, carrying out responsibilities in banking supervision, and conducting monetary policy and promoting the stability of financial markets. This Asia Focus report is based on President Janet Yellen’s observations of developments in the Vietnamese banking sector made during her visit to the country in November 20071. This trip represents the first time Federal Reserve officials have visited Vietnam since normalization of bilateral relations in 1995.