Concluding Discussion

Abstract

This study has explored the difficulties of transition in Vietnam, and emphasized the lengthy process of institutional change. Old structures and old competence are to be transformed into new structures and new skills. Rules are to be changed, agents are to learn and adapt. Despite the reorganization of the state banks, the poor operation of the financial market has remained a major cause for the prevailing capital shortages. The emerging entrepreneurship relies on self-finance and informal financial sources. The Vietnamese save in gold or foreign exchange, and rely on cash transactions. This final chapter discusses some of the findings of the Vietnamese bank transition, by explicitly utilizing the concepts of coordination and motivation costs, and closes with some aspects of the two main themes brought forth in the study: incomplete decentralization and unclear rules.