REVIEW
of
FINANCE -
Feb. 2018
45
Specifically:
Opportunities
(i) Opportunities to expand and develop
overseas markets for Vietnamese banks:
International economic integration in general and
participation in joint-stock banks in particular has
opened up opportunities for Vietnamese banks
approaching the market overseas. Integration
creates favorable conditions for domestic credit
institutions to expand their activities to foreign
markets through the provision of services within
the framework of commitments, especially cross-
border trade and provision .
(ii) Opportunity to receive new training,
consultancy and training support from banks
and foreign financial institutions: International
integration creates opportunities for linking of
domestic banks with foreign banks. Linking with
foreign banks helps local banks to have good
conditions to enhance their ability to prevent
and handle risks through technical assistance
and technical assistance in applying banking
technology, management and development of
new products.
The scrutiny in business is also the opportunity
for domestic banks to lift to a new height. Opening
the banking market in line with bilateral and
multilateral commitmentswill be a good condition
to attract direct investment in the financial
sector, at the same time banking technologies
and advanced management skills is absorbed by
domestic banks through business cooperation.
The involvement of foreign investors in domestic
banks is an important factor in improving the
level of business management in domestic banks.
(iii) Vietnamese banks are engaged in a level
playing field with high professionalism. When
implementing integration commitments, the
intervention of the State intervenes in business
operations of banks will be reduced and the
protection will be limited. This context makes
it possible for Vietnamese banks to be more
active in their businesses, and at the same time,
banks have the opportunity to demonstrate
their capabilities and qualifications. Domestic
banks are forced to specialize more deeply in
their operations to rapidly access and develop
new banking services, improve the efficiency
enable participants to have full discretion in the
future.
Participating countries also set out principles
for the formal recognition of the importance of
legal procedures to encourage the provision
of insurance services by licensed suppliers and
processes to achieve this goal. In addition, the
CPTPP also mentions specific commitments on
portfolio management, electronic payment card
services and the transfer of information for data
processing purposes. However, the CPTPP also
mentions the exceptions in protecting the financial
autonomy of CPTPP participants, in which they
will be given the initiative to take measures
to reinforce the CPTPP financial stability and
consistency of its financial system. This includes,
but is not limited to, exceptional provisions
that Member States consider prudently and the
exceptions to non-discriminatory measures in
the process of establishing and implementing
monetary policy or other policy.
Opportunities and challenges
for the banking industry
Internationalexperienceshowsthatcompetitive
and open financial and banking systems are one
of the preconditions for effective development
and economic growth. This is also the reason
that the trend of international integration of the
banking industry has become more popular
and widespread. In addition to the undeniable
benefits of accessing capital, technology transfer,
professional experience, etc., the integration
trend posed no less a challenge to the banking
sector in the process of adjustment and reform
towards a stable and sustainable banking system.
Capital supply from the capital market
Capital supply from the credit credit institutions
FIGURE 1: THE PROPORTION OF CAPITAL SUPPLY
TO THE ECONOMY 2012-2017
Source: General Statistic Office
