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TopThe Recent Development Of The Banking Sector In Vietnam
The past ten years have seen the introduction of products, techniques and systems that have transformed the banking sector. To analyse the customer satisfaction rating of Vietnamese banks’ electronic banking services, it is necessary to put in context the evolution in the banking sector.
The transformation of the Vietnamese economy to a market economy commenced with reforms in the mid-1980s. The ‘Doi Moi’ reforms produced economic growth in the late 1980s and early 1990s. However, the banking reforms were limited, merely separating commercial banking from central banking, and as state-owned commercial banks emerged, they continued to be state managed.
The Government later considered that the banking sector should be completely reformed through the equitization of domestic banks and through direct investment by foreign banks. It considered that reforming the banking sector and allowing foreign banks to incorporate would lead to competition and thereby development of the banking sector.
The opportunity was WTO accession. Besides allowing some foreign banks that had been operating in Vietnam prior to WTO accession to incorporate there, following accession, the Government allocated five licenses to foreign banks to incorporate in Vietnam. The five foreign banks that were granted licenses are HSBC - United Kingdom, Standard Chartered Bank - United Kingdom, ANZ Bank - Australia, Shinhan Bank - South Korea, and Hong Leong Bank - Malaysia. These banks were obliged to modernise the banking sector, through products, technological processes and management development.