Impact of the EU-Vietnam free trade agreement on activities of Vietnamese commercial banks

Abstract

The EU-Vietnam Free Trade Agreement (EVFTA) has been implemented and took effect from
August 1, 2020. Since the Agreement was signed, changes have been made in many areas of the economy.
In the banking sector, the Agreement poses many opportunities as well as many challenges for Vietnamese
commercial banks. By using qualitative research methods, through collecting data from expert consultations,
analyzing and synthesizing information, the article studies the main provisions of the EVFTA Agreement
related to the field of the banking and finance sector, assessing the impacts of the EVFTA on attracting
foreign direct investment, risk management, digital transformation, income, costs, products and services for
the operation of Vietnamese commercial banks, thereby giving some recommendations on improving risk
management capacity, enhancing technology, security, diversifying products to meet customer needs to take
advantage of positive impacts and reduce the negative impacts from the Agreement.