Market of banking services of Vietnam: review, estimation and problems of development

Abstract

The article reviews the state of the banking services market in Vietnam, characterized by the growth of deposit and credit services, the development of plastic cards and electronic banking services market. The following main problems of the development of the Vietnamese banking services market were revealed: the traditional nature of banking services, the lack of banking product versatility; difficulties in applying information technologies in practical banking activities; the problems of creating channels for the distribution of services, the lack of modern marketing strategies and the appropriate skills of bank staff; insufficiency and imperfection of the legislative system regulating banking services. Recommendations are offered for solving the outlined problems by the government and the State Bank of Vietnam as well as by commercial banks. The government should introduce regulatory norms on the mandatory availability of terminals to provide large business entities with plastic cards operation, support implementation of projects by Vietnamese banks, create an encouraging competitive environment in the banking system. The State Bank of Vietnam should continue to improve the legal environment for non-cash payments in general and card services, in particular. It is also necessary to update the regulatory function for debt, deposits and other banking services restructuring. Commercial banks of Vietnam should develop precise strategies for the development of banking services corresponding to their actual state; set up departments dealing with market survey and customer needs; develop the human capital of banks; strengthen coordination with the Ministry of Public Security in preventing cybercrime and ensuring the security of payment transactions. The conclusion is that the state of the banking services market in Vietnam is not optimal. There is a need for a strategic collaboration between the state and commercial banks in Vietnam in order to improve the market.