FOREWORD

This is one of a series of studies on Competitiveness and the Impact of Trade in Services
Liberalization in Viet Nam, conducted in the framework of the project “Capacity Strengthening to
Manage and Promote Trade in Services in Viet Nam in the Context of Integration” (or “Trade in
Services” Project - VIE/02/009), which is currently being funded by the United Nations Development
Programme (UNDP), and implemented by the Department of Trade and Services of the Ministry of
Planning and Investment (MPI).

This study presents an overview of the banking sector in Viet Nam, including its reform process since
1990; the legal and policy environment applicable to the sector, and the liberalization commitments
undertaken so far by the country. It provides an analysis of the competitiveness of Viet Nam’s banking
services in the context of recent global sector integration developments; and the possible impact of
further liberalization of banking services from two different angles: impact on the sector itself, and on
the economy, including social impacts. The report also presents a set of recommendations, including
recommendations for improving the legal and policy framework; developing a strategy for the sector;
and improving governance and banking operations.

The study was conducted by a team from MCG Management Consulting Ltd. (Viet Nam), composed
by Dr. Le Xuan Nghia (team leader), Mr. Vu Quang Thinh, Mrs. Dang Nhu Van, and Mrs. Pham
Ngoc Linh. During the research, the team received important contributions from Dr. Nick Freeman
and Dr. Andreas Hauskretch. Mr. Truong Van Doan, now Vice Minister of MPI, was the National
Director of the Project, as well as Dr. Ho Quang Minh, now General Director of the MPI Foreign
Economic Relations Department; while Mr. Thai Doan Tuu and Mr. Bui Diem acted as Deputy
National Project Director and National Project Manager, respectively. Dr. María Cristina Hernández,
Senior Technical Advisor to the Project, conceived the study and assisted the team at various stages
of the research. Useful comments and inputs came also from Mr. Thomas Rose, from the World
Bank (Washington).

Acknowledgements are also due to Mr. Richard Jones, independent consultant, for his substantial
improvements to the final report and for the excellent editing work; to Mrs. Do Thi Nguyet Nga,
Programme Officer UNDP Viet Nam, for her support in the publication of this report; as well as to all
the representatives from government agencies, banks and financial institutions that provided
information and data for the research and that participated in consultative workshops to discuss
various drafts of the report.

Nguyen Chi Dzung

Director General, Department of Trade and Services
National Project Director, VIE/02/009 – Trade in Services
Ministry of Planning and Investment