Impacts of liberalization of Vietnam's banking sector | |
| Author | Ho Thuy Ai |
| Call Number | AIT RSPR no.SM-10-07 |
| Subject(s) | Free trade--Vietnam Banks and banking--Vietnam |
| Note | 53 leaves : ill. |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-10-07 |
| Abstract | Vietnam’s entry to the World Trade Organization (WTO) in January 2007 marks an important stage in the nation’s financial liberalization process. Although there are many studies on the impact of liberalization in Vietnam’s banking sector, findings are still limited in qualitative analysis without being s upported by statistical data. This might lead to subjective conclusions based on outward phe nomena rather than precise evaluation. By using accounting data of eighteen Viet namese banks in the period 2003-2008 to test hypotheses on their performance under the pres sure of increased foreign presence, the research contributes to literature on the topic with statistical evidence. Analysis result shows that there is not much change in domestic banks’ income structure after January 2007. In other words, Vietnamese banks still depend greatly on traditional activities such as lending and borrowing, rather than on modern operations. It is also proved that domestic banks’ operating expenses are still under control while their profitability decreases. Additionally, in contrast with the argument on fiercer competition between foreign banks and local banks in case of liberalization, there exists a cooperative trend between them when Vietnam gradually loosens its restrictions on foreign entry. The competition seems to be more dramatic among local banks, i.e. the State-owned commercial banks versus joint stock commercial banks. Beside critical findings, the research depicts an overall picture of liberalization process in the sector and salient characteristics of Vietnamese banks which are important to explain the analysis results. Last but not least, al ong with addressing the research’s limitations, some suggestions on further studies are also recommended so that the topic can be done more comprehensively in long run. |
| Year | 2010 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-10-07 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Winai Wongsurawat |
| Examination Committee(s) | Huynh Trung Luong;Venkatesh, Sundar |
| Scholarship Donor(s) | Thailand (HM King) |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2010 |