Recently, Vietnam has recorded a significant development in the economy, the financial sector in particular. The Vietnam financial sector has been making first steps toward modernization by its transition from traditional banking to electronic banking activities. The launching of e-banking products and services is considered as a significant milestone of the banking industry, which brings numerous benefits to both clients and financial institutions. Through the industrialization 4.0 orientation, the e-banking services have played a critical role in helping the financial institution to stay competitive by adapting to the recent changes in the financial market.
This study undertakes an insight into the development of the financial sector in Vietnam with its transition to the growth and the implementation of electronic banking services. Throughout the research, the primary goal is to discover the reasons behind the decision to launch e-banking services of the banks and then investigates the challenges that might involve during the e-banking service implementation process.
The results of the paper show that the critical motivations for a bank to implement e-banking services are to create more values for its customers via enhancing customer experience, improve customer satisfaction as well as with aims to expand the market. Along with its benefits brought by e-banking services, financial institutions also deal with variety of challenges which come from both internal and external factors such as customer awareness, under-developed infrastructure level, operational risks, etc…. In the end, this research also provides some recommendations for the banks to implement e-banking activities better in the Vietnamese context.

Table of Contents
ABSTRACT ii
ACKNOWDLEGEMENT iii
CHAPTER 1 1
INTRODUCTION 1
1.1 Research Background 1
1.2 Statement of Research Problems 3
1.3 Thesis Objectives and Research Questions 4
CHAPTER 2 6
LITERATURE REVIEW 6
2.1 OVERVIEW OF THE FINANCIAL DEVELOPMENT IN VIETNAM 6
2.1.1 Political System 6
2.1.2 Joining WTO Membership 6
2.1.3 Financial Sector Reforms 7
2.1.4 Economic Factors 9
GDP Growth Rate 9
Inflation 10
Technological factors 11
2.1.5 Banking Sectors in Vietnam 12
Structure of the banking system 12
2.2 GROWTH AND DEVELOPMENT OF ELECTRONIC BANKING IN VIETNAM 14
2.2.1 Overview of Electronic Banking Services 14
Electronic Fund Transfer at Point of Sale (EFTPOS) 15
Automated Teller Machine 15
Telephone Banking 16
Internet Banking 16
Credit card 17
Debit cards 17
2.2.2 E-banking services in Vietnam 17
CHAPTER III 21
METHODOLOGY 21
3.1 Data Collection Method 21
3.2 Research Scope 22
CHAPTER 4 24
FINDINGS 24
4.1 Motivations for implementing the E-banking services in Vietnam 24
4.1.1 Motives from clients 24
Enhance the availability to access banking services. 24
Cost Efficient 24
Time-Saving 25
Safety 26
Better Financial Management 26
4.1.2 Motives from the financial institutions 27
Cost-Saving 27
Market transparency- Gain competitive advantage 27
Cross-selling Ability 27
4.2 Challenges in implementing e-banking services. 28
Operational Risk – Security 28
Reputational risk 30
Human Resources Competency 31
Traditional Banking Service 32
Infrastructure Level 32
CHAPTER 5 34
SUMARY, CONCLUSIONS AND RECOMMENDATIONS 34
5.1 Summary 34
5.2 Recommendations for Vietnamese Financial institutions. 37
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