Vietnamese banking system in the context of ASEAN economic integration

Abstract

This paper enlightens the main features of ASEAN Banking Integration Framework (ABIF) and the requirements for
Qualified ASEAN Banks (QABs). Using Moody’s evaluation method and Bankscope database for banking systems in 7
ASEAN countries, the paper compares Vietnamese banking system with the rest of the region on asset quality, capital
adequacy, profitability and liquidity aspects. The results show that Vietnamese banks are relatively low-developing,
and will face fierce competition from foreign banks on their home market. Measuring the effects of integration appears
essential for the regulators and banks in seeking appropriate and prompt solutions to these challenges and in seizing
valuable opportunities to obtain sustainable and efficient development.