Recommendation for improving the financial market – Experiences from Japan1. The current Japanese financial system – challenges and solutions1.1. General assessment of the current Japanese financial systemDespite the global financial crisis of 2008, the Japanese financial market is stable. The business loan market is improving after a poor signal during 2008-2009. But the risks of long-term financial instruments, for example bonds, tend to increase. In particular, the effect of the 2008 crisis led to an appreciation of the yen of approximately 67% against the GBP and 75% against the South Korean won. As a result, Japanese export goods such as electronic devices have become more expensive, leading to a decline in net exports. Car sales reached a new low since 1974.1.2. ChallengesThe challenges of the Japanese financial system do not arise for the first time but have been added over the years.- Japanese financial institutions must ensure the stability of the base profit, promote business through active risk management and control.- Financial institutions must have countermeasures to deal with the market risks that come with holding bonds. An easy to understand point is that holding unsecured bonds can affect profits and bank losses mainly come from holding bonds that exceed the profits made from major business activities over the previous two years. Japanese financial institutions are expected to raise capital through recapitalization and profit. accumulation.- Finally, financial institutions should prepare solid foundations for the management of the function of financial intermediary. For Japan's long-term economic development, financial institutions need to re-identify their potential growth rate and provide financial services efficiently.1...... middle of paper ...... moreover, a currency freely convertible can reduce direct government intervention in exchange rate management policy and, in terms of exchange rate management, facilitates it to be more effective. REFERENCES1.BOJ (2009) “Financial System Report”. Tokyo: Department of Financial Systems and Banking Examinations, Bank of Japan.2.BOJ (1996) “Main Economic Indicators of Japan”3.Le Vinh Danh – Monetary Policy and Macroeconomic Adjustment of the Central Bank in Developed Countries4.Draft, NUMR (2006) » The current state and problems of financial and accounting systems in Japan, China and Korea. Nagasaki: Graduate School of Economics, Nagasaki University, Frum on issues surrounding business in East Asia. Websites1. Bank of Japan: http://www.boj.or.jp2. State Bank of Vietnam: http://www.sbv.gov.vn3. General Statistics Office of Vietnam: http://www.gso.gov.vn