The factors affecting the sustainable development of the financial sector in can tho city Vietnam

Currently, the global debate about financial reforms is very much ongoing. Recent developments, like the Euro crisis, the financial and economic crisis, dramatic cuts in public budgets etc., seem to suggest that the current set up of financial markets is no longer adequate in economic, social, and political terms, neither in a short-term nor in a long-term perspective, e.g.: the financial system increasingly dominates other parts of the economy; the financial crisis of 2007–08 led to a dramatic reduction in the credit available for individuals, businesses, and governments; the subsequent reduction in consumer spending, government expenditure and business investment has had a major impact on economic growth and employment. The objectives of this paper were not only to look into the relevant literature but also to find common ground regarding the sustainable development of the financial sector and reports the results of a survey of 300 persons working for the financial sector in Can Tho. In this paper, the researchers used analytical method of explore factor analysis to determining that are components of the sustainable development of the financial sector in Can Tho city, Vietnam. This paper conducted during the time from July 2015 to December, 2015.

The research result showed that there were 300 persons working for the financial sector in Can Tho who interviewed but 275 processed and answered 13 questions. The researcher had analyzed KMO test, the result of KMO analysis used for multiple regression analysis. Persons’ responses were measured through an adapted questionnaire on a 5-point Likert scale. Hard copy and online questionnaire were distributed among persons working for the financial sector in Can Tho City.

In addition, the regression analysis results showed that there were two factors, which included of factors following: Human resources (HR) and Political and economic environment (PE) actually affected the sustainable development of the financial sector with 5% significance level. The research results were processed from SPSS 20.0 software. The parameters of the model estimated by Least-Squares Method tested for the model assumption with 5% significance level.

The researcher had obtained the main objectives of this study were to:

The first objective, the researchers had to to identify and test factors affected the sustainable development of the financial sector in Can Tho City.

The second objective, the researcher had solutions to improve the sustainable development of the financial sector in Can Tho City.