46
labor force and it is one of the regions with high
wages. But in times of crisis and recession, those
working in the financial sector is also the most
vulnerable group with the pressure of discharge
or wage cut. Even if it is not due to a decline in
business trends, the financial sector also has a
vicious cycle of labor mobility. It is the reduction
of low skilled labor to be replaced by skilled
labor, which is prone to the brain drain of skilled
workers in the competitive process. One of the
major challenges facing the banking system in
Vietnam is the retention of talents, avoiding the
shift of high quality human resources of Vietnam
to regional countries.
International economic integration has
contributed significantly to the expansion of the
financial services market in general and banking
services in particular in Vietnam. Besides the
opportunities, the process of integration in general
in the field of banking and finance in particular
has many potential risks and challenges, requiring
the banking system to constantly innovate and
improve the management capacity to not only
stand firm, but also to assert its position in the
region and internationally.
Identifying and making good use of
opportunities as well as responding effectively
to the challenge that CPTPP brings is a key
condition not only for commercial banks, but also
for the State Bank of Vietnam to actively respond
to many possible situations. As the pressure from
the international economic environment on the
outside has been increasing under the influence
of integration, it has created the foundation for
the sustainable development of the Vietnamese
banking sector.
References:
1. Ha Huy Tuan (2013), “Vietnam’s post-WTO banking systemneeds careful
steps,” Vietinbank: Human Resource Training and Development School;
2. KieuHuu Thien (2013), “The Challenges for the Sustainable Development
of Vietnam’s Commercial Banking System”;
3. Nguyen Hong Son, Tran Thi Thanh Tu et al. (2015), “Opportunities
and Challenges for the Vietnamese Banking System in the Context of
Integration,” Proceedings of the National Workshop on “ Association and
Vietnam Banking Sector in the context of integration “;
4. Nguyen Hong Son, Tran Thi Thanh Tu et al. 2014, “Post-restructure
banking system format,” Economic Forum Fall 2014 by the UNDP and
Economic Committee of Congress.
of their use of funds, exploit and apply more
effectively the advantages of the type of bank in
order to to expand market share in domestic and
international financial markets. International
integration forces the domestic banks to operate
on the principle of market, enhancing the
competitiveness that will boost the business
performance of local banks.
Challenges
In addition to these opportunities, Vietnamese
banks have faced many challenges as Vietnam
implements its commitments under the CPTPP.
Specifically:
Firstly,
the competition of the banking system
has been increasingly intense. The opening of
integration entails the involvement of a large
number of foreign banks with strong financial,
technology and management capabilities in the
domestic financial market, therefore, the fierce
competition between domestic and foreign banks
are hard to avoid. Foreign banks with strong
service quality and diversified services will attract
a large number of customers - foreign invested
enterprises and a large number of domestic and
foreign enterprises. This led to an increase in the
market share of foreign banks and a decline in the
market share of domestic banks.
Secondly,
domestic banks have faced the
tendency of increasing the foreign ownership
in commercial banks of Vietnam: the opening
the domestic market means increasing foreign
ownership in Vietnamese commercial banks. At
present, Vietnamese commercial banks have been
proactively offering shares to foreign institutional
shareholders, gradually increasing foreign
ownership. In the state-owned commercial
banks sector, Vietinbank has the highest foreign
ownership ratio of more than 28% (at the end of
2014). Foreign joint stock banks generally tend to
increase in large and medium banks such as ACB,
EIB, TCB, VIB, VPB, from 20-30 %. In particular,
ACB has a 30% foreign ownership ratio for the
period 2012-2014.s
Thirdly,
there has been the pressure to improve
the quality and the transfer of high quality
banking financial human resources to foreign
and regional organizations: In the development
period, the financial sector can attract a large
