Identifying risks of Vietnam financial system in the financial integration context

Abstract

The financial system, characterized by the presence of financial institutions and financial markets (including money
market, banking credit market and stock market) plays an important role in mobilizing and allocating funds efficiently
in the economy. Along with the trend of globalization and financial freedom, Vietnam financial system has gradually
participated in international financial markets in order to further improve the ability to mobilize and allocate resources
which will contribute to promote sustainable economic growth. However, parallel to this process, Vietnam financial
system also faces many risks as financial insecurity resulting from crisis; financial monitoring risk and other risks
directly affect the operation of financial institutions and financial markets. This article will identify above risks with
specific evidences, thereby giving some policy recommendations to limit the negative impacts from the participation of
international financial markets in future.