Overall study of service export of Vietnamese commercial banks

INTRODUCTION

1. The necessity of the topic

One of the limitations and challenges in Vietnam's economic development, international trade development and service export in recent times is that the economic structure, export structure in general, and export service product structure in particular have been slow to shift towards modernity. The economic structure has been slow to shift towards a modern market economy in the past 15 years (1995-2010). In the GDP structure, the proportion of the service sector has not increased but has tended to decrease from 44% in 1995 to 38.1% in 2000 and has only fluctuated at 38%-39% in the 4 years after joining the WTO (2007-2010); in which, the contribution rate of financial institutions to GDP has only fluctuated at 1.8%-2.0% during the period 1995-2010. In the export structure, the proportion of services in export value has decreased from 14.56% in 1990 to 9.17% in 2009 and only accounted for 8.97% in 2010, contrary to the general development trend of the world (in the export structure of the world in the same period, the proportion of services increased from 18.53% to 21%). In the structure of exported service products, the proportion of high value-added product groups (such as Banking and Finance, Insurance, Post and Telecommunications...) only fluctuated at 5%, while banking and finance services accounted for only 3%. It is noteworthy that in the method of exporting services, the method of commercial presence and movement of natural persons only accounted for about 5%, which means that we have not taken full advantage of the opportunities to access the world market from WTO integration, integration of FTAs opened to develop service business beyond national borders. Meanwhile, in the domestic banking service market, the market share of State-owned commercial banks has continuously decreased (in the deposit market, it decreased from 77% in 2000 to 59.3% in 2007, and to about 55% in 2010. In the lending market, it decreased from 78.7% to 60.1% and 55% respectively during the same period).

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According to the export development project for the period 2006-2010, the Government has set a target of achieving an average growth rate of 16.3%/year in the country's service export turnover. At the same time, the Government also approved the project to develop the Vietnamese banking industry until 2010 and orientation to 2020 with 11 groups of solutions.

need to be organized and implemented. One solution is to "speed up the international integration process in the banking sector".

According to Vietnam's general commitment when joining the WTO for service sectors, it is basically the same as the Bilateral Trade Agreement with the United States (BTA). First of all, foreign companies are not allowed to be present in Vietnam in the form of branches, unless we allow it in each specific sector. In addition, although foreign companies are allowed to bring in managers to work in Vietnam, at least 20% of the company's managers must be Vietnamese. Finally, we allow foreign organizations and individuals to buy shares in Vietnamese enterprises, but the ratio must be appropriate to the level of market opening in that sector. For banks, we only allow foreign banks to buy up to 30% of shares. Specific commitment for banking services: Vietnam agrees to allow the United States to establish a 100% foreign-owned subsidiary bank no later than April 1, 2007. In addition, foreign banks are allowed to establish branches in Vietnam, but those branches will not be allowed to open sub-branches and will still be subject to restrictions on mobilizing deposits in Vietnamese Dong from Vietnamese individuals within 5 years from the date of our accession to the WTO. We will still maintain restrictions on purchasing shares in Vietnamese banks. This is a particularly significant restriction for the banking industry.

Thus, the banking sector will be almost completely open to receiving deposits and other payables from the public; lending in all forms, including consumer credit, mortgage credit, factoring and trade finance...etc. Therefore, we must prepare resources to compete with foreign banks, and at the same time find a suitable direction for Vietnamese commercial banks, in which the service export orientation of Vietnamese commercial banks is a direction that needs to be considered.

In that context and to overcome the above-mentioned difficulties and challenges, it is very important to study and find solutions to promote the export of services of Vietnamese commercial banks, contributing to increasing the export of services, shifting the structure and improving the quality and efficiency of service export. Therefore, it is very necessary to study the overall export of services of Vietnamese commercial banks.

2. Objectives and research tasks of the thesis

2.1. Research objectives of the thesis

General objective: Research, propose orientations and solutions for developing service exports of Vietnamese commercial banks by 2020.

Specific objectives:

- Analyze and systematize basic theoretical issues related to service export of commercial banks.

- Analyze and evaluate the current status of service export of Vietnamese commercial banks after implementing service trade commitments in the WTO.

- Proposing directions and some solutions for developing service exports of Vietnamese commercial banks by 2020.

2.2. Research tasks of the thesis

The research task of the thesis is to find answers to the following research questions:

- First: The necessity of researching and developing service exports of Vietnamese commercial banks?

- Second: The importance of service export of commercial banks?

- Third: Factors affecting service export of commercial banks?

- Fourth: The current situation of service export of Vietnamese commercial banks?

- Thursday: What hinders the service export of Vietnamese commercial banks?

- Sixth: What solutions to develop service exports of Vietnamese commercial banks?

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3. Research object and scope

Research object: Theoretical and practical issues on service export of Vietnamese commercial banks in the context of international economic integration.

Research scope:

- Spatial scope: General research at the micro level and specific research on service export of some Vietnamese commercial banks including: Joint Stock Commercial Bank for Foreign Trade of Vietnam

Vietnam Bank for Investment and Development; Saigon Thuong Tin Commercial Joint Stock Bank.

- Time scope: Research the current situation from 2005 to 2010, propose recommendations until 2020.

4. Research methods

During the research process, the author uses dialectical and logical methods in generalizing and analyzing the problem, and at the same time uses statistical analysis; synthetic analysis; system theory...etc. to analyze and interpret the practice. The topic also applies the research results of related scientific works to deepen the thesis of the topic.

- Statistical method: The topic uses appropriate statistical data to serve the analysis of service export activities of some Vietnamese commercial banks and their effectiveness in each period.

- Analysis and synthesis method: Based on the assessment of the current status of service export of Vietnamese commercial banks, the topic will provide general assessments of the entire service export activities of Vietnamese commercial banks.

The research methodology of the topic is dialectical materialism and historical materialism. Specific methods include: Expert method; comparison; investigation method, ...

- Expert method: Consult with theoretical and empirical experts in the industry to have an overview when analyzing and evaluating service export activities of Vietnamese commercial banks.

- Comparison method: Service export of Vietnamese commercial banks is compared with some large banks in the world in terms of applicability to achieve optimal results.

- Investigation method: The topic applies observation methods, investigates domestic and foreign experts, and businessmen in the fields of finance and banking to collect information and data to serve the topic.

5. Overview of domestic and foreign research situation

Currently, there have been a number of studies related to the issue of exporting domestic and foreign services. Through the process of research and study, I have some comments and assessments on these studies as follows:

- Documents on services and service exports of the WTO and other organizations,... (List of detailed documents in the References). Regarding these documents, the research content mainly focuses on the theory of services, the role of services in a country's economy. New studies only focus on the impact of international economic integration opening the service market on the competitiveness of service sub-sectors in a country. The content of service exports, especially banking service exports, banking service export strategies, analysis of theoretical bases for a country exporting banking services, market assessment as well as general orientations and solutions to develop a country's banking service exports, has not been mentioned.

- National Project on "Improving the competitiveness of Vietnamese goods and services: service sector", a ministerial-level project of the National Committee for International Economic Cooperation, Ministry of Trade; "Improving national competitiveness" of the Central Institute for Economic Management and the United Nations Development Program, Project Vie 01/025. 2003: The Project and the Project only focused on assessing the competitiveness of Vietnamese service businesses, comparing them with businesses in the same industry in countries in the region and the world. From there, analyze strengths, weaknesses, opportunities, challenges and propose specific solutions to improve the competitiveness of Vietnamese service businesses.

- Export promotion strategy until 2010 of the Ministry of Trade (now the Ministry of Industry and Trade). In this Strategy, the content and new solutions mainly mention promoting the export of goods, especially some items in which Vietnam has competitive advantages. Regarding the banking service sector, the strategy has also mentioned, however, it has mainly introduced the banking service sector, without any assessment, orientation and specific solutions for the export of banking services.

- Thematic research on development strategies of some Vietnamese service industries: Telecommunications, Finance, Maritime Transport, Air Transport, Tourism and Banking by the Ministry of Planning and Investment: The new research only focuses on examining the development strategies of some major service industries in Vietnam, currently most of Vietnam's service industries have their own strategies. From there, through this research practice, the Ministry of Planning and Investment aims to build a comprehensive strategy for the development of Vietnam's service industries. Currently, this research is still being implemented.

- Research report No. 03: Impact on Banking services after Vietnam joins WTO is within the framework of Project fsp 2000-148, supporting Vietnam's international economic integration of the National Committee for International Economic Cooperation funded by the French Republic. The report compared the operations of domestic credit institutions and foreign credit institutions. However, the report mainly only assessed the impact on Banking services in the Vietnamese market.

- Doctoral thesis: Promoting Vietnam's service export when it becomes a member of the World Trade Organization (WTO). The thesis has some general assessments of the service sector, service export activities according to each export method, but the thesis does not go into a specific service sector but only generalizes the export activities of the entire service sector. To develop service export, it is necessary to propose specific solutions for each service sector.

From the above analysis, I decided to choose the research topic "Service Export of Vietnamese Commercial Banks" to deeply study the service export of Vietnamese Commercial Banks when Vietnam is a member of the World Trade Organization. This topic does not overlap with any of the above research works.

6. New points of the thesis

New contributions in terms of academics and theory:

- Studying the activities of Vietnamese commercial banks (CBs) as an export enterprise, the thesis has provided a comprehensive view of the nature of goods and services of this type of export, according to which all activities

All services provided by commercial banks to customers must be considered service activities. This perspective, on the one hand, allows a more accurate understanding of the role of commercial banks in the economy, and on the other hand, helps to evaluate the contribution of commercial banks in the export sector in accordance with international standards.

New findings and recommendations drawn from the research and survey results of the thesis:

- Based on the survey, identification and analysis of service export activities of commercial banks, the thesis has shown that the three main methods of service export of Vietnamese commercial banks are cross-border service provision (method 1), service consumption abroad (method 2) and commercial presence (method 3); for method 4 (presence of natural persons), most Vietnamese commercial banks have not been able to implement it.

- In order to find a new direction for Vietnamese commercial banks, the thesis points out that the business strategies of large Vietnamese commercial banks in the period 2011-2015

– In 2020, it is necessary to prioritize exports to increase scale and market share, aiming to form a financial group.

- In the system of synchronous solutions to develop service exports of Vietnamese commercial banks, the thesis emphasizes the priority of research to supplement export services according to each export method, especially supplementing export services according to method 4 (presence of natural persons) to diversify services associated with all export methods.

- In order to evaluate and analyze the service export of Vietnamese commercial banks, the thesis recommends adjusting the statistical and monitoring regulations associated with each export method, ensuring compliance with international standards. This is one of the tools to encourage export development in accordance with commitments in the World Trade Organization.

7. Structure of the topic

Topic name: "Service export of Vietnamese commercial banks"

Regarding the structure: In addition to the introduction, conclusion, table of contents, appendices and list of references, the thesis is structured into 3 chapters:

Chapter 1: General theory on service export of commercial banks

Chapter 2: Current status of service export of Vietnamese commercial banks

Chapter 3: Directions and solutions for developing service exports of Vietnamese commercial banks