Research On The Reform Of Vietnam's State-owned Commercial Banks

Vietnam started reform and open-door process in the mid-1980s. Together with economic reform and opening, Vietnam's banking system which plays a major role in providing funds to all of Vietnam's economic sector also entranced to reform. Banking reform, especially State-owned Commercial Banks( SOCBs) reform is also looked for primary task. Although Vietnam's government gived vigorous support to SOCBs and helped them become the biggest commercial banks in Vietnam, SOCBs exposed a lot of problems in market economic mechanism. For example, low financial capacity and operating management , serious non-performing loans etc. What is the reason of bad status of SOCBs? Financial banking international intergration makes the advantages for the development and innovation of Vietnam's commercial banks, but also brings a lot of challenges to Vietnam's commercial banks, especially weak banks. SOCBs's operating ability is poor and lack of competitiveness now. If they don't reform as soon as possible, whether their leading role in Vietnam's banking can still grasp in a short time. From these points, I researched the reform of SOCBs, in-depth knowledged practical situation of SOCBs, and got hold the reform components at each stage. Through reviewing the historical reform background and analyzing the contents of reforming, this paper pointed out the achievements which SOCBs reform has gained and the existing problems, and then thought over to find solving these problems. Finally, giving suggestions to the reform of SOCBs in the next stage. Besides,Vietnam should study the reform experience of foreign countries to help Vietnam's SOCBs reforming fewers be in difficulty and gain more acheivements. In researching process, I used comparative method to compare the economy and banking reform of China and Vietnam. The similarities in economic structure made the common points in banking system of two countries. For example, the banking system transformed from unity mode to secondary mode, two countries separated policy lending from commercial lending activities in SOCBs restructuring to help SOCBs have more own operational rights. From the common points of banking systems between two countries, Vietnam's SOCBs reforming can study China in reform experiences. In addition, this paper also researched the acheivements of China's SOCBs reforming , thereby took out the the reform experiences of China, combined to the national condition in Vietnam and the practical situation of SOCBs's operating. And then made ideas to the next stage reforming of SOCBs in Vietnam.