Banking competition in Vietnam: Are there many differences between measures?

Abstract:

The study aimed to measure the factors affecting banking competition in Vietnam through competitive efficiency is proposed by (Bolt & Humphrey, 2010, 2015a, 2015b). Through secondary data collected from 19 commercial banks in Vietnam in the period 2011-2021, with data processing method through SFA method to estimate competitive efficiency indicators. Then, using the D-GMM model for both the competitive efficiency method and the Lerner index to examine the correlation between the two measures. The research results show that there is still a small difference between the two measures, which is reflected in the existence of three factors with inconsistent results including the ratio of equity to total assets, market capitalization market and banking market share. The research results also suggest that factors such as Net Profit to Total Assets Ratio, Bank Size, Annual GDP Growth Rate, Annual Inflation Rate, Market Concentration Index, Revenue Fees and credit risks have an impact on banking competition in Vietnam.