Năng lực cạnh tranh của các ngân hàng thương mại việt nam sau sáp nhập và mua lại (ma) tt tiếng anh

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM BANKING UNIVERSITY HOCHIMINH LE TRUC THUAN THE COMPETITIVENESS OF VIETNAMESE COMMERCIAL BANKS AFTER MERGER AND ACQUISITION (M&A) SUMMARY OF THE THESIS Major: Finance - Banking Code: 9.34.02.01 The scientific instructor: Assoc.Prof Dr PHAN DIEN VY HO CHI MINH CITY, 2020 February PUBLISHED SCIENTIFIC WORKS ▪ Restructuring the banking system: Results and roadmap for the new period; Finance Magazine - Term - March 2016 ▪ About banking M&A activities in Vietnam over the past time; Economics and Forecasting Report - No - April 2016 ▪ Improving the quality of merger activities of Vietnamese banks; Finance Magazine - Term - December 2018 ▪ Enhance the financial capacity of Vietnamese commercial banks after mergers and acquisitions (M&A); Journal of Industry and Trade - No - January 2019 ▪ Competitive advantage of Vietnamese commercial banks; Economics and Forecasts - No - February 2019 CHAPTER INTRODUCTION OF THE STUDY 1.1 The reason to choose a topic Vietnam officially became a member of the WTO in November 2006 and in April 2007 began to implement international commitments on opening of financial services market and competitive pressure in the banking sector head appearance and significant increase Recently, there have been many studies on the competitiveness of Vietnamese commercial banks, but most of these studies are limited to a commercial bank or Vietnamese commercial banks in general but not researched about commercial banks after M&A implementation Thus, the overall review of determining the factors affecting and measuring the impact level on the competitiveness of commercial banks after M&A in Vietnam is very important, meaningful and valuable High practical value Stemming from the practical and urgent demands of the banking system in Vietnam, especially in the context of international economic integration and globalization, the development trend of a managed economy of the Government indirectly through economic, financial - banking policies with the desire to research to find out solutions to improve the competitiveness of Vietnamese commercial banks after M&A, the author has chosen the topic "The competitiveness of Vietnamese commercial banks after the merger and acquisition" is their doctoral thesis 1.2 Objectives of the study Overall objective: Building a solution group to contribute to improving the competitiveness of Vietnamese commercial banks after M&A Specific objectives: - Analyze and assess the real situation of commercial banks after M&A to identify the factors that influence and quantify the impact level on the competitiveness of these commercial banks In order to see the achieved results, the shortcomings, limitations and causes of Vietnamese commercial banks after M&A? - Building strategic solutions groups for the period of 20202030 for commercial banks after M&A and vision for the future 1.3 Research questions: - Assessing the real situation of competitive capacity of Vietnamese commercial banks after M&A through which criteria? - Factors affecting the competitive capacity of Vietnamese commercial banks after M&A? - The degree of impact from the factors affecting the competitiveness of Vietnamese commercial banks after M&A? 1.4 Objects and scope of the study Objects of researching: The thesis will focus on studying the influencing factors and the level of impact on the competitive capacity of Vietnamese commercial banks after M&A Researching scope: - Regarding space: Researching typical commercial banks that have participated and succeeded in M&A deals in Vietnam including: SHB, HDBank, SCB, LPB, PVcombank, Sacombank, BIDV, Maritimebank - Regarding time: Secondary data is collected in the main period of the period of 2011-2018, including data available from financial statements and annual reports of Vietnamese commercial banks after M&A, SBV reports, World Bank reports, Bank supervision system reports Primary data was collected for months from 7/2018 to 12/2018 1.5 New contributions of the thesis Based on secondary data to analyze the current competitiveness situation of commercial banks after M&A in Vietnam, it shows that after conducting M&A, Vietnamese commercial banks include: LPB, SCB, SHB, HDBank, Pvcombank, Sacombank, BIDV, Maritimebank had an increase in targets, such as: Total assets, mobilized capital, outstanding loans, number of branches and transaction offices NPL ratio decreased, capital adequacy ratio (CAR) increased This shows that after M&A, the commercial banks have become healthier, stable business operations and achieved the operational safety goal of the State Bank, preventing bankruptcy of some weak commercial banks However, considering the ratios of ROA and ROE efficiency of commercial banks after M&A reached low and did not improve compared to the previous M&A, profit growth was slower than another commercial banks of the same size over the years It shows that the business performance of commercial banks after M&A has not improved significantly, the competitiveness is not better than before M&A and compared to other commercial banks of the same size Quantitative analysis showed similar results that the competitiveness of commercial banks after M&A is not much different between banks and the competitiveness of these banks is generally not high Based on primary data to measure the impact of factors on the competitiveness of commercial banks after M&A in Vietnam and the regression equation as follows: Competitiveness = 0.287 * Financial capacity + 0.262 * Technology capacity + 0.320 * Prestige of the bank + 0.281 * Service fee + 0.266 * Quality of service + 0.193 * Transaction network + 0.287 * Power executive management force The regression analysis results show that the factor "Bank's reputation" has the strongest influence with the coefficient β = 0.320; the factors "Financial capacity" and "Executive management capacity" with the same coefficient β = 0.287; The fourth influencing factor is "Service fee" with coefficient β = 0.281; The fifth influencing factor is "Service quality" with coefficient β = 0.266; The sixth influence factor is "Technology capacity" with coefficient β = 0.262; The lowest affecting factor is "Transaction network" with coefficient β = 0.193 The thesis has introduced solutions to improve the competitiveness of Vietnamese commercial banks after M&A, namely: Enhancing financial capacity; Improve technology capacity; Improve management and administration capacity; Improve quality serving; Promote customer care; Improve the quality of human resources; Expand and diversify banking services; Enhance the position and reputation of the bank; Develop an appropriate trading network system CHAPTER THEORETICAL BASIS AND RESEARCH OVERVIEW 2.1 Theoretical basis for merger and acquisition 2.1.1 Concept of merger and acquisition According to Mallikajiunappa, T and P Nayak, “Acquisition is an effective control action of a company for assets (buying assets, buying shares, gaining control through the board of directors) of another company that doesn't need an organizational or organizational unity According to Ransariya, Shailesh N., “Merging is an abbreviation of the words that make up Merger itself: M - Mixing (mixing), E - Entity (entity, subject), R- Recourse for (resources for), G- Growth (growth), E-Enrichment (enrichment), RRenovation (innovation) An acquisition can be defined as an act of obtaining effective control of one company over another company's assets without the need for any combination of other companies” 2.1.2 Commercial bank concept after merger and acquisition According to the Regulation on merger, consolidation and acquisition of credit institutions (Issued together with Circular No 04/2010 / TT-NHNN of February 11, 2010 of the Governor of the State Bank of Vietnam): Merger of a credit institution: is a form whereby one or several credit institutions (hereinafter referred to as a merged CI) merges into another credit institution (hereinafter referred to as the merging CI) by transferring all assets, legal rights, obligations and interests to the merged CI and at the same time to terminate the existence of the merged CI Consolidation of credit institutions: is a form whereby two or a number of credit institutions (hereinafter referred to as consolidated credit institutions) are merged into a new credit institution (hereinafter referred to as the consolidated credit institution) by transferring all assets and rights , legal obligations and interests to the merged CI, and ending the existence of the merged CI Acquisition of a credit institution is the form whereby a CI (hereinafter referred to as the acquiring CI) purchases all assets, rights, obligations and lawful interests of another CI (hereinafter referred to as the acquired CI) After the acquisition, the acquired CI becomes a subsidiary of the CI In the scope of the thesis, the author introduces the concept of commercial banks after M&A according to Circular 04/2010 / TT-NHNN, to select commercial banks and limit the scope of the thesis 2.1.3 Methods of merging and acquiring commercial banks According to the M&A deals in the world, there are the following common methods of implementing M&A in banks: Voluntary negotiation; Collecting stocks in the stock market; Bidding; Buy an asset; Entice dissatisfied shareholders 2.2 Theoretical basis of competitiveness of commercial banks 2.2.1 Concept of competition of commercial banks The author gives his own opinion on the competition of commercial banks is the competition between commercial banks on products and services provided to survive and develop to expand market share, improve the prestige and advantages of commercial banks The school aims to increase more profits 2.2.2 Types of competition of commercial banks Based on the participants in the competitive market, there are types: Competition between banks and non-bank financial institutions; Competition among domestic banks and foreign banks; Competition between state-owned banks and joint stock commercial banks Based on the morphology and nature of competition in the market, competition is divided into categories: Perfect competition; The competition is not perfect Based on the scope of economic industry, there are types of competition: intra-industry competition; Competition among industries 2.2.3 Features of bank competition Products have little difference; Price competition in banking activities is also quite limited; The scope of autonomy in competition of commercial banks is also more limited than businesses; Competition of commercial banks is under the sensitive influence of international financial markets; Banking 11 CHAPTER MODELS AND RESEARCH METHODS OF THESIS 3.1 Research models Based on the standard form of linear regression equation, the research model of the thesis is built in the form: Y = β0 + β1 * X1 + β2 * X2 + β3 * X3 + β4 * X4 + β5 * X5 + β6 * X6 + β7 * X7 Inside: - Dependent variable Y = Competitiveness - β0 is the blocking coefficient, β1 → β7 is the slope in the relationship between the independent variable Xi to the dependent variable Y - Independent variables: X1, X2, X3, X4, X5, X6, X7 with: X1 is the Financial Capacity of the Bank X2 is the Bank's technological capability X3 is the Prestige of the Bank X4 is the Bank's Quality of Service X5 is the Bank's Transaction Network X6 is the Bank's governance and management capability X7 is the Bank Service Fee 3.2 Process of researching 12 (1) The qualitative research phase: to build and adjust the scales to design the questionnaire (survey sheet) for quantitative research (2) Quantitative research phase: This is the stage conducting the survey, collecting data from reality to test the scale and research model 3.3 Data and data collection methods 3.3.1 Primary data Primary data sources were collected by the method of surveys and surveys through questionnaires for senior, middle leaders, officials and employees of commercial banks after M&A in Vietnam (SHB, HDBank, SCB, LPB, PVcombank, Sacombank, BIDV, Maritimebank) The formulation of the questionnaire is based on research concepts, combined with qualitative research methods through expert methods and indepth interviews 3.3.2 Secondary data The secondary data source for analyzing the competitive status of Vietnamese commercial banks after M&A is collected from the SBV's reports of the Banking supervision system and from the financial statements and annual reports of Main commercial banks of Vietnam after M&A in 2011-2018 3.4 Research Methods 3.4.1 Qualitative research methods 13 The qualitative research method is the process of codifying from individual documents and data to build a scale for model variables In this study, the author conducted an overview from domestic and foreign documents in combination with the use of expert method to build draft scales for independent and dependent variables of the model then combined with the use of in-depth interviews with the subjects to be surveyed are officials and employees of commercial banks after M&A in Vietnam (SHB, HDBank, SCB, LPB, PVcombank, Sacombank, BIDV, Maritimebank) to adjust the draft scale to suit the actual context of the banking industry in Vietnam and to serve the design of the questionnaire (Questionnaire) used for quantitative research 3.4.1.1 Professional solution The expert method is used by the author to build and adjust the draft scales for the independent and dependent variables of the model from which to build the official scale for quantitative research Based on the overview from previous domestic and foreign studies on factors affecting the competitiveness of commercial banks in general, the author drafted his own outline to interview with experts 3.4.1.2 In-depth interview method The objective of the in-depth interview method is to adjust the content of draft scales designed from the results of the abovementioned expert method to complete the official scale used for quantitative research 3.4.2 Quantitative research method 14 Quantitative research methods are used to quantify the relationship between variables in the research model and test the research hypotheses obtained from theory through the use of statistical analysis tools The quantitative research process is divided into phases: preliminary quantitative research and official quantitative research 3.4.2.1 Preliminary quantitative research The author conducted a preliminary quantitative study to check the reliability of the scales, thereby eliminating the inappropriate observable variables (if any) from which to build a complete system of scales official quantitative research 3.4.2.2 Official quantitative research The official quantitative research process in this study is done by Pearson correlation analysis and regression analysis Regression analysis is the finding of the dependent relationship of a variable, called a dependent variable or other variables, called independent variables, in order to estimate or predict the expected value of the secondary variable belongs to knowing the value of an independent variable 15 CHAPTER RESEARCH RESULTS OF THESIS 4.1 Situation of competitiveness of commercial banks after M&A in Vietnam 4.1.1 Overview of the situation of merger and acquisition of Vietnamese commercial banks ▪ The situation of merger and acquisition of Vietnam commercial banks in the period of 1997-2003 ▪ The situation of merger and acquisition of Vietnam commercial banks in the period of 2004-2010 ▪ The situation of merger and acquisition of Vietnam commercial banks in the period of restructuring the system of credit institutions (2011-2015) ▪ The merger and acquisition phase commercial banks restructuring the banking system (2016 - 2020) ▪ Performance of Vietnamese commercial banks after M&A 4.1.2 Situation of competitiveness of commercial banks after the merger and acquisition in Vietnam 4.1.2.1 About financial capacity The average point of the scale Financial capacity ranges from 3.32 to 3.52 points After the M&A activity, the financial capacity of Vietnamese commercial banks tends to increase, new 16 banks after the restructuring process have improved the operational efficiency and increased the competitiveness to contribute to the development of the land economy country 4.1.2.2 Regarding technological capacity The average score of technological capacity is from 3.29 to 3.67 points The technological capacity of Vietnamese commercial banks after M&A has not been highly appreciated 4.1.2.3 About the reputation of the bank The average score of the rating scale of a bank's credit is from 3.31 to 3.70 Although the bank's reputation increased significantly after M&A activities, customers were not really satisfied and appreciated the bank's products and services At the same time, the brand value of commercial banks is not highly appreciated 4.1.2.4 About bank service fees The average point of the evaluation scale of the Bank's service fee is from 3.37 to 3.59 In order to compete successfully in the market, many commercial banks have free many types of services From this, the content of the survey "The electronic banking service fee applied at the Bank is reasonable" only reached a low level of 3.37 points However, most bankers assess that the card service fee applied at banks is reasonable (the content reaches 3.57 points) 4.1.2.5 About the quality of service 17 Average score of the evaluation scale of service quality from 3.30 to 3.65 The content "Bank always committed to providing services to customers with good quality" only reached 3.44 points and the content "Procedures of simple banking" only reached 3.30 points This is because the level of technology application in the bank's business activities is not synchronized, the professional qualifications of the bank staff are still weak and not meet the complexity of the list of banks products and services 4.1.2.6 About the transaction network Average point of the evaluation scale of the trading network from 3.26 to 3.43 The transaction network of commercial banks after M&A is limited, which does not create favorable conditions for customers to access various types of banking services From here, directly affect the competitiveness of commercial banks after M&A 4.1.2.7 About executive management capacity Average score of the evaluation scale of executive management capacity from 3.34 to 3.66 With the current governance and management capacity, commercial banks after M&A are still facing big risks, greatly affecting the economy This fact requires each and every commercial bank itself after M&A to constantly improve its governance and management ability to compete not only with other domestic commercial banks but also with international credit institutions in the context 18 of integration International economy and the explosion of technology revolution 4.0 4.1.3 General assessment of the current competitiveness of Vietnamese commercial banks after the merger and acquisition 4.1.3.1 These achievements ▪ After the M&A activity, the financial capacity of Vietnamese commercial banks tends to increase ▪ Business activities are always effective and especially ensure high system security ▪ Phần Market share and trading network system is constantly developing and expanding ▪ The brand and reputation of banks after M&A are gradually being increased in the Vietnamese banking system ▪ Products and services have been oriented to the trend of ebanking development ▪ After M&A activities, Vietnamese commercial banks have focused on technology investment to apply and develop modern banking services to gradually replace traditional banking services in order to improve competitiveness with banks foreign goods and other commercial banks 4.1.3.2 Limitations and reasons ▪ Technology application at banks has not been updated and synchronized, banks only pay much attention to deploying technology application in developing new and modern products 19 and services without paying attention Using technology software in administration and management ▪ Changes in competitiveness are not commensurate with the amount of investment capital, there are no positive changes such as products that are not diverse, flexible, technological and management capacity The operation has not yet achieved the optimal efficiency and lack of experience when operating in an international environment making the investment efficiency low ▪ Although capital and assets scale increased after performing M&A activities, the business efficiency of these commercial banks is still not high, this is a great pressure in the requirement to improve competitiveness as well as pressure of shareholders and affirm the prestige of the bank in the market ▪ The strategy of products and services in particular and the competition strategy in general, which has been implemented, has not been really tight, resolute and effective ▪ Lack of support from state authorities 4.2 Analysis of factors affecting the competitiveness of commercial banks after the merger and acquisition in Vietnam 4.2.1 Results of assessing the reliability of the scale Cronbach's Alpha coefficient of all survey scales is greater than 0.7, the lowest is the measurement scale of the dependent variable "Competitiveness" with Cronbach's Alpha coefficient = 0.755 This shows that the survey data is completely reliable 20 4.2.2 Results of exploratory factor analysis (EFA) Bartlett's test results show that the variables in the population are correlated with each other (Sig = 0.000