44
(representing 13.5% of the global economy) are still
trying to restore the TPP agreement. In 11/11/2017,
11 countries have agreed to rename TPP into the
Comprehensive Partnership for Transboundary
Partnership (CPTPP). The CPTPP holds most of
the content of the TPP, but in the 8,000 pages of the
original agreement, there are 20 clauses suspended,
mostly related to intellectual property.
For the financial services sector in the CPTPP,
although it requires the provision of many
opportunities for market access and cross-border
investment, it ensures that the CPTPP countries
have the capacity to operate the market and
financial institutions as well as implementing
emergency measures in case of crisis. Like the
WTO or other FTAs, the CPTPP also provides for
national treatment; most favored nation treatment;
market access and some specific provisions on
the provision of cross-border financial services.
However, according to the content of the finalized
negotiations in the area of financial services,
a service provider of a CPTPP may provide
financial services in the market of another CPTPP
if the Local companies operating in this market
are allowed to provide such services. Member
States of the CPTPP must issue exceptions to
certain rules in the two appendices attached to the
CPTPP and in accordance with the conditions of
each country: (i) Participants must be obliged not
to impose any additional sanctions in the future,
nor to comply with liberalization agreements in
future activities; (ii) Measures and policies that
OPPORTUNITIES AND CHALLENGES OF THE BANKING
INDUSTRY INTHE CONTEXT OF VIETNAM JOINING CPTPP
TRAN THI KIM CHI, MA.*
In recent years, the banking sector in Vietnam has made strong changes and stepped deeper into
the process of international integration. That Viet Nam has successfully concluded a series of free
trade agreements, especially the Trans-Pacific Strategic Economic Partnership (now the Trans-Pacific
Partnership and Trans-Pacific Partnership Agreement) ) has opened new opportunities and challenges for
the banking system of Vietnam. On the analysis of the banking and financial provisions that Vietnam has
promised in the CPTPP, the article assesses the opportunities and challenges that the banking sector will
face as Vietnam embraces commitments under the CPTPP.
Keywords: State bank, commercial bank, CPTPP, WTO, AEC
Received: December 22
nd
, 2017
Revised: January 4
th
, 2018
Accepted for publication: January 5
th
, 2018
Commitment to financial and banking
integration in CPTPP
Over the years, especially in the period from
2011 to now, the banking sector of Vietnam has
made breakthrough innovations, go deeper into
the process of international integration, especially
when a series of trade agreements (FTA) were
signed. In addition to being a member of the
World Trade Organization (WTO), joining the
ASEAN Economic Community (AEC) and joining
the Trans-Pacific Strategic Economic Partnership
(TPP) have opened up many opportunities for the
banking system of Vietnam.
TPP was signed in February 2016, with 12
participating countries including Australia, Brunei,
Canada, Chile, Japan, Malaysia, Mexico, New
Zealand, Peru, Singapore, USA and Vietnam. The
TPP was originally described by the United States
as a “gold standard” for all free trade agreements.
This document is not limited to tariff reductions,
but also includes the removal of a number of non-
tariff barriers and requires members to adhere
to high regulatory standards in areas such as the
Labour Law, environmental protection, intellectual
property and public expenditure. However, shortly
after taking office in January 1977, President
Donald Trump announced hiswithdrawal from the
TPP. Before this move, the remaining 11 members
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