Credit Risk Management In The Context Of Post WTO- the case of Vietnam Bank for Industry and Trade

Table of Contents

CHAPTER 1: INTRODUCTION1

Background1

Objectives13

Scope of the Study14

CHAPTER 2: LITERATURE REVIEW15

Globalisation and the WTO15

WTO challenges: Vietnam in the first two years as WTO member (2007 -2008)21

Policies in banking and financial sector in facing with WTO challenges25

CHAPTER 3: METHODOLOGY31

Research design31

Questionnaires32

Interview33

Text and document analysis34

CHAPTER 4: DATA PRESENTATION36

Competitiveness of Micro Finance sector in Vietnam44

Challenges and Opportunities to the microfiancne sector52

Related industries to microfinance services56

Competitiveness of MFls59

CHAPTER 5: DATA ANALYSIS AND DISCUSSION63

CHAPTER 6: CONCLUSION75

CHAPTER 7: RECOMMENDATIONS78

Development Strategy78

Legal Framework79

REFERENCES81

Credit risk management in the context of post WTO- the case of Vietnam Bank for Industry and Trade

CHAPTER 1: INTRODUCTION

Background

The discussions over the economic services affirmation (FSA) in the WTO will open the banking part of Vietnam to foreign engagement, which in some examples will help make deeper banking markets and reinforce banking institutions. Domestic economic restructures have the promise to playa function in scarcity alleviation. But the I ink between economic restructure and scarcity alleviation is not a clear-cut one. The poor generally do not transact in the types of markets involved. The financial and foreign banks in most situations are reluctant to step into the casual lending part as s shopping centre traders and country manufacturers are advised to be dodgy borrowers. At the identical time, privatization of public banks may leverage their communal goal and omit the deprived clients. In this consider, innovative microfinance can be a pattern of economic development that assists competently to scarcity alleviation (VietNamNet 2006). Vietnam became one of the 150th constituent of World Trade Organization (WTO) during the year November'06. This happening brands a milestone for trade liberalization, rigid affray, privatization method, and more engagement of foreign bureaus in the country's market. WTO members will need Vietnam to undertake amendments to its trade and economic principle regime to obey with WTO requirements. In the context of economic services, "liberalization" mentions to both household economic deregulation and the unfastening of the finances to worldwide trade and capital flows. It furthermore mentions to the departure of government intervention through privatizing state-owned banks, setting free key charges for example interest rates to be very resolute in the market, and alleviating limits on traverse -sectoral undertakings to permit banks, protection, investment businesses to go in each other's sub -sectors. (Goel 2007)

Thus, with WTO firm promises, there will be possibilities and promise harmful influences on get access to country borrowing and economic service. The poor are likely only little participants in the rise, but will often bear considerably in the bust. Several preceding researches demonstrated that household economic liberalization, through giving up command of interest rates and eliminating borrowing grants, has not converted into high grade of savings, but declined get access to of the poor to country borrowing (Mosley 1999a), 'Micro-macro Linkages in Financial Markets: The Impact of Financial Liberalization on Access to Rural Credit in Four African Countries', Journal of International Development 11, pp.367 -84.) If these likely consequences are not specifically advised and addressed, ...