Financial structure and economic growth: the case of Vietnam

Vo, Xuan Vinh; Nguyen, Huu Huan; Pham, Duy Khanh

doi:10.1007/s40821-016-0042-8

“…Furthermore, the regulatory limit on foreign investors holding cap not exceeding 30% stake are considered the significant obstacles making foreign banking investors struggling with taking their own strategic business in Vietnam banking market (Vo and Nguyen, 2018a;2018b;Vo and Chu, 2019;Vo et al, 2016;Vo, 2009;2015a;2015b;2016a;2016b;2016c;2016d;2018a;2018b). This situation is likely the same as Chinese banking market since most foreign banking investors have sold out their investments (Li et al, 2015) as the foreign bankers look acquiring banks in emerging countries like Vietnam as their good deals for short term strategies.…”

Section: Foreign Bank Entrants' Expectations and Reality In Vietnam's...mentioning

confidence: 99%

Foreign bank penetration in Vietnam following Vietnam’s accession to the WTO: matching expectations with reality

Huong¹

2022

Preprint

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Vietnam continuously liberalizes the financial market as a requirement for its accession to the World Trade Organization in 2007. This paper discusses the foreign investors’ expectation and their experience when penetrating into Vietnam’s market. The role of the foreign entrants is also assessed. By synthesizing and analyzing relevant research and reports, several important insights are discovered. Firstly, the presence of foreign investors and banks improves market competition, efficiency, and stability. Wholly and partly foreign-owned banks provide the spillover effects in management quality, in the introduction of world standard banking products and services, and in the application of information technology. Secondly, by looking into the foreign owned banks, it is found that the banks’ foreign investors are not likely to play an influential role in managing the banks they invested in. The motive of the investors to control the invested companies leads to their decision of holdings withdrawing.

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“…Furthermore, the regulatory limit on foreign investors holding cap not exceeding 30% stake are considered the significant obstacles making foreign banking investors struggling with taking their own strategic business in Vietnam banking market (Vo and Nguyen, 2018a;2018b;Vo and Chu, 2019;Vo et al, 2016;Vo, 2009;2015a;2015b;2016a;2016b;2016c;2016d;2018a;2018b). This situation is likely the same as Chinese banking market since most foreign banking investors have sold out their investments (Li et al, 2015) as the foreign bankers look acquiring banks in emerging countries like Vietnam as their good deals for short term strategies.…”

Section: Foreign Bank Entrants' Expectations and Reality In Vietnam's...mentioning

confidence: 99%

“…Thus, a small shock in the global market may cause detrimental effects to the local banking market (Batten and Vo, 2009;2015;2019;Vo, 2009;2015;Vo and Phan, 2017). As a focal point integrated in the dynamic ASEAN bloc with extensive trade network Nguyen and Vo 2017;Vo, 2016;Vo et al, 2016), Vietnam has witnessed a great achievements in financial and banking system development. This is the result of the country's experience of a sharp reformation, a prudential banking system adoption and a sensible financial liberalizing pace.…”

Section: Introductionmentioning

confidence: 99%

Foreign bank penetration in Vietnam following Vietnam’s accession to the WTO: matching expectations with reality

Huong¹,

Vo²,

Hien³

et al. 2022

JIEM

0

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Vietnam continuously liberalizes the financial market as a requirement for its accession to the World Trade Organization in 2007. This paper discusses the foreign investors’ expectation and their experience when penetrating into Vietnam’s market. The role of the foreign entrants is also assessed. By synthesizing and analyzing relevant research and reports, several important insights are discovered. Firstly, the presence of foreign investors and banks improves market competition, efficiency, and stability. Wholly and partly foreign-owned banks provide the spillover effects in management quality, in the introduction of world standard banking products and services, and in the application of information technology. Secondly, by looking into the foreign owned banks, it is found that the banks’ foreign investors are not likely to play an influential role in managing the banks they invested in. The motive of the investors to control the invested companies leads to their decision of holdings withdrawing.

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“…Money market, banking and stock market variables were used. Banking system and the stock market have a very important role for the economic development (Vo et al 2016). Ten variables were used and for the purposes of this study, they were reduced to a single measure through principal component analysis.…”

Section: Theoretical Background: Financial Sector Developmentmentioning

confidence: 99%

Trade Credit Policy: Revisiting Targeting of Trade Payables and Receivables in Brics Listed Firms

Mugova¹,

Kwenda²

2020

EJEF

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The study investigates if firms in BRICS countries pursue a target optimal level of trade credit policy. Trade payables levels may not always at the desired levels and firms take time to adjust from real to target levels. The level of financial sector development may influence firms’ speed and cost adjustment. Employing a dynamic panel data model estimated with the difference and system Generalized Method of Moments estimation techniques on a panel of 3353 listed BRICS non-financial firms, the study established that in pursuit of growth opportunities firms have a deliberate trade credit target levels. Firms pursue a target optimal level of trade payables and trade receivables and firm size affects creditworthiness and access to capital markets, which influences speed of adjustment from current to desired levels of trade payables. Investment in trade receivables require access to capital for additional funding and poorly developed financial sectors makes it costly to adjust towards optimal credit level. Different levels of financial sector development affect access to alternative sources capital which influences optimal trade credit policy.

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Financial structure and economic growth: the case of Vietnam

Cited by 23 publications

References 12 publications

Foreign bank penetration in Vietnam following Vietnam’s accession to the WTO: matching expectations with reality

Foreign bank penetration in Vietnam following Vietnam’s accession to the WTO: matching expectations with reality

Foreign bank penetration in Vietnam following Vietnam’s accession to the WTO: matching expectations with reality

Trade Credit Policy: Revisiting Targeting of Trade Payables and Receivables in Brics Listed Firms

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