Country Attractiveness Report(Banking in China vs. Vietman)

In: Business and Management

Submitted By ovs79
Words 2993
Pages 12
Country Attractiveness Report
Alex V Sukhodolov
Business in Asia
Date: 04-19-2014

Executive summary
Recent trends on borrowing and payment system for instance, in salary payment, debt payment, mortgage borrowing and payment as well as other loan services, more and more industries and institutions are dependent on banks more than ever before. This high dependability on banks is in fact making this banking industry highly competitive and concentrated as discussed below. As these industries take their time to analyze the merits and demerits of each bank in the industry and which is likely to benefit them more, the banks on the other hand strive to make their business attractive to those potential customers. What will result is onset of competition that will increase the innovativeness of the banks as each struggle to attract the highest number of industries in form of customers.
Attractiveness in Banking Investment
Introduction
The recent years have seen a rise in large and well-established banks in developed economies. This has raised concerns on the effects such banks will have on the countries’ economy. Many economists are of the view that large banks may have a negative impact on a country’s economy as well as the borrowers. As such, there have been debates on whether or not large banks should be broken up into small banks that have less market power. Scholars from Vietnam and China advocated for the need to break up banks in order to reduce taxpayers and depositors’ risk and enhancing the bank’s leverages level. There are various benefits relating to breaking up banks. As such, China and Vietnam might be right in listening to the claims that large banks should be broken up. This paper will examine this claim in detail by examining whether Vietnam and China banking sector are in trouble or not. This is a fact that…...

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