Hiệu quả hoạt động kinh doanh của các ngân hàng thương mại cổ phần việt nam tt tiếng anh

MINISTRY OF EDUCATION AND TRAINING - THE STATE BANK OF VIETNAM BANKING ACADEMY OF VIETNAM NGUYEN THI LE HUYEN BUSINESS PERFORMANCE OF JOINT-STOCK COMMERCIAL BANKS IN VIETNAM Major: Banking and Finance Code: 34 02 01 SUMMARY OF PHD THESIS HANOI – 2020 THE DISSERTATION WAS COMPLETED AT BANKING ACADEMY OF VIETNAM Supervisors: ASSOC PROF DR KIEU HUU THIEN ASSOC PROF DR NGUYEN THI BAT The dissertation will be defensed at the Dissertation Board of Banking Academy of VietNam At Date .Month Year 2020 The dissertation could be found at: - Library of Banking Academy of Vietnam - National library of Vietnam INTRODUCTION THE NECESSITY OF THE DISSERTATION TOPIC In Vietnam, the issue of the business operation efficiency of commercial banks has always received certain attention from researchers, policy makers, and the bank itself In recent years, there have been many authors researching on this issue; however, most studies only used single financial indicators, instead of systematizing into groups of indicators to measure the performance of operating activities of commercial banks Besides, there are no studies that combine traditional approaches (through analysis of financial indicators) and modern approaches (both DEA and SFA) to measure the efficiency of operating activities of the Vietnam commercial bank system in the period 2013-2018 (the period that marked the development of banks after the crisis in 2012 and was an important restructuring period of the Vietnamese banking system) and at the same time to put the measured efficiency into the factor analysis model, finding out the factors that impact significantly on the operating performance of commercial banks in that period Realizing the urgency and the applicability of this topic into practice, PhD candidate decided to choose “Business performance of joint-stock commercial banks in Vietnam” as a research topic for the doctoral thesis The author hopes that the research results of this thesis will, together with scientists, managers, and policy makers, contribute to improve the efficiency of business activities of Vietnamese commercial banks LITERATURE REVIEW Regarding the performance of commercial banks' business activities, there have been many domestic and foreign pieces of research on this issue Some studies have used the traditional method through normal financial indicators, others used modern methods with input and output variables to evaluate the performance of commercial banks 2.1 Overview of world research  Studies using non-parametric method (DEA) In the world, the non-parametric method mainly uses data envelopment analysis (DEA) technique and is commonly applied to evaluate the performance of commercial banks with different measurement variables There are many studies around the world using the DEA model to measure the performance of a bank's operating activities, such as Fukuyama (1993); Brockett et al (1997); Luc Laeven (1999); Per Nikolai D Bukh et al (1995); Miller and Noulas (1996); IhSan Isik & M Kabir Hassan (2002); Olena Havrylchyk (2006); Chang-Sheng Liao (2009); Piyush Kumar Singh & V.K Gupta (2013); A.R & Srinivasan, M.R (2014)  Studies using parametric method (SFA) In addition to the studies using the non-parametric DEA method, the SFA parameter method is also commonly used in evaluating the performance of the bank's operating activities In the world, using SFA method to measure the performance of the bank's business activities can be mentioned as: Nathan and Neave (1992); Miller and Noulas (1994); Kwan and Eisenbeis (1996); Fan and Shaffer (2004); Xiaoqing Fu and Shelagh Hefferman (2009)  Studies using a combination of the non-parametric method (DEA) and the parametric method (SFA) There are studies using the combination of DEA and SFA such as: Ferrier and Lovel (1990); Arunava Bhattacharyya et al (1997); Cevdet Denizer et al (2007)  Overview of researches on analyzing the factors affecting the bank's business performance Research by Chang and Chiu (2006); Pasiouras et al (2007); Ji-Li Hu, Chiang-Ping Chen and Yi-Yuan Su (2006); Gwahula Raphael (2013); Sehrish Gull et al (2011); Samangi Bandaranayake and Bohhath Jayasinghe (2013) 2.2 Overview of Domestic research  Studies using non-parametric method (DEA) Researches on the bank's operating efficiency using traditional methods are mainly domestic ones Most of these studies basically make use of qualitative methods - measuring the efficiency of banking operations through financial and non-financial indicators Several examples could be listed such as Research of the author Le Thi Huong (2002); Le Dan (2004); Ta Thi Kim Dung (2016)  Studies using parametric method (SFA) In Vietnam, the study using SFA method can be mentioned as: Nguyen Thu Nga (2018)  Studies using a combination of the non-parametric method (DEA) and the parametric method (SFA) In Vietnam, the combination of research methods has studies by Nguyen Viet Hung (2008); Lieu Thu Truc and Nguyen Thanh Danh (2012)  Overview of researches on analyzing the factors affecting the bank's business performance Research by Nguyen Viet Hung (2008); Nguyen Minh Sang (2013); Tran Huy Hoang and Nguyen Huu Huan (2016); Nguyen Thi Thu Thuong (2017); Nguyen Thi My Linh and Nguyen Thi Ngoc Huong (2015) 2.3 Research gap Through an overview of the research related to the topic of the thesis, especially the studies in Vietnam (Appendix 8), the author found that there exist some research gaps as follows: First, there is no comprehensive study on business performance of the system of jointstock commercial banks in Vietnam Studies on business performance of commercial banks have a quite diverse research scope, focusing on objects such as the Vietnam commercial banking system, a group of representative banks, commercial banks in a province, and Vietnam Joint Stock Commercial Banks after M&A or a specific bank Particularly at the level of the thesis, only research by Nguyen Thu Nga (2017) has evaluated the business performance of the group of joint-stock commercial banks in Vietnam However, the author only focuses on researching the relationship between credit risk and business performance of commercial banks through the use of financial indicators and the SFA method Not going into depth analysis of the main factors that affect the operations of the Vietnamese commercial banks Second, there are very few studies on business performance of the system of joint-stock commercial banks in Vietnam in the period 2013-2018 The business performance of commercial banks has always received great attention from researchers Therefore, throughout the period from 2002 to now, there have been many studies on this issue However, in the 2013-2018 period, there are not many studies evaluating the performance of joint-stock commercial banks in Vietnam The studies, if any, only focus on evaluating the efficiency of operating activities but have not analyzed the factors that affect the performance of the bank's operating activities Meanwhile, the period 2013 - 2018 marked the development of banks after the crisis in 2012 and was an important restructuring period of the Vietnamese banking system, so the study of the performance of the banking system Vietnam commercial banks in this period have a very important meaning Third, the method of measuring the efficiency of business activities of commercial banks in the research is not comprehensive Many domestic and foreign researchers have sought to combine both traditional (through financial indicators) and modern approaches (through building an effective frontier) to most accurately measure the performance of operating activities of the bank In Vietnam, most studies only use one of two approaches (traditional or modern) to evaluate the performance of a bank's operating activities Some studies combine financial ratios and one of two modern approaches - SFA or DEA (Nguyen Thu Nga, 2017; Dang Thi Minh Nguyet, 2017) The comprehensive combination between the traditional approach and both modern approaches (DEA and SFA), only research by Nguyen Viet Hung (2008) However, in the traditional approach, the author Nguyen Viet Hung has not clearly and detailed system of measurement indicators Fourth, there are not many studies to clarify the factors and the impact of these factors on the performance of the bank's business operation Factor analysis is the second stage in the research process, helping to evaluate which factors affect the performance of business operations of commercial banks during the study period In Vietnam, the authors use many models to analyze the effects of factors on the performance of commercial banks' business activities However, most of the studies are done in terms of scientific articles, with limited capacity, making the analysis and clarification of the direction and impact level of subjective and objective factors are not specific Besides, some studies only put subjective factors into the factor analysis model, making some recommendations for stakeholders to lack a solid foundation Fifthly, there is no study to select the dependent variable, which is measurement efficiency by DEA (VRS) model The selection of the dependent variable is very important and has a great influence on finding the influencing factors and its influence on the efficiency of banking operations In particular, choosing the measurable efficiency in stage as the dependent variable in the factor analysis model will bring the most accurate results Some authors chose variables such as ROA, ROE, cost efficiency (CE), technical efficiency (TE), as the dependent variable in the factor analysis model in phase According to the author's point of view, using the results of the DEA (VRS) model as the dependent variable to create data logic for the study DEA (VRS) is the effect of joint-stock commercial banks in terms of size change, making comparisons among joint-stock commercial banks of the same size Doing this research work, the author tries and hopes that the thesis will compensate for the aforesaid "gaps" of published research works Research objectives and questions 3.1 Overall objectives The overall goal of the topic is to assess the current status of the performance of the business activities of Vietnam's joint-stock commercial banks and propose solutions to improve the business performance of joint-stock commercial banks in Vietnam 3.2 Detail goal - Systematizing the theoretical basis of the efficiency of business activities of commercial banks, methods of measuring the business performance of commercial banks by traditional and modern approaches and factors affecting the performance of commercial banks' business activities - Analyzing and assessing the current status of the performance of business activities of joint-stock commercial banks in Vietnam in the period of 2013 - 2018 by different approaches Analyzing the factors affecting the business performance of Vietnam's commercial banks - Proposing solutions and recommendations to improve the business performance of joint-stock commercial banks in Vietnam in the period 2020 - 2030 3.3 Research question To achieve the proposed research objectives, the thesis focuses on answering the following questions: What methods the business performance of commercial banks is assessed and measured by? What factors affect the business performance of commercial banks? What has been achieved in the current status of the business performance of joint-stock commercial banks in Vietnam in the period 2013 - 2018? What problems still exist and why? Which solutions should joint-stock commercial banks in Vietnam take to improve the efficiency of business activities in the coming time? Object and scope of the study 4.1 The study object The thesis studies the efficiency of business activities of Vietnam's commercial banks Study overview - Concept - Factors affecting the efficiency of business operations of commercial banks - Model of analysis of factors affecting business performance of commercial banks Analysis of factors affecting the efficiency of business activities according to the Tobit regression model Research gap Theoretical basis on business performance of commercial banks Actual status of business performance of 29 Vietnam Joint Stock Commercial Banks in the period of 2013 2018 Methods of evaluating the business performance of commercial banks: - Traditional approach method -Modern approach method Evaluate the effectiveness of business activities: -Traditional approach: groups of indicators to measure efficiency -Modern approach method: + Non-parametric PP (DEA) +Parametric PP (SFA) Evaluate achieved results, limitations and cause Proposing solutions and recommendations Figure 1: Research model framework Source: Author design 4.2 Scope of the study - About content: The dissertation focuses on research on the efficiency of business activities of Vietnam commercial banks with specific contents: + Measure the business performance of commercial banks + Analyzing the factors affecting the business performance of joint-stock commercial banks in Vietnam + How to improve the efficiency of business activities for joint-stock commercial banks in Vietnam? - About space: The thesis studies the business performance efficiency of 29 joint-stock commercial banks in Vietnam - About time: The thesis studies the business performance of joint-stock commercial banks in Vietnam over years from 2013 to 2018 Research design 5.1 Framework of research model of the thesis The research model framework of the thesis is described by the author according to diagram 5.2 Research data source Research data includes 29 joint-stock commercial banks in Vietnam 5.3 Research Methods The thesis uses a combination of qualitative research methods and quantitative research methods New contributions of the thesis 6.1 Theoretical contributions + Synthesize and complete the system of indicators measuring the efficiency of business operations of commercial banks, including groups of indicators: (1) Group of indicators measuring the efficiency of capital use; (2) Group of indicators measuring the efficiency of using assets; (3) Group of indicators measuring the efficiency of labor use; (4) Group of indicators to measure cost control effectiveness; (5) Group of indicators measuring the effectiveness of risk prevention; (6) Group of indicators measuring the effectiveness of management and administration + Clarify the factors affecting the business performance of commercial banks and selecting the appropriate factors in the context of the Vietnam Joint-Stock Commercial Bank system in the analysis model 6.2 Practical contributions + The thesis is the first comprehensive study using both approaches: traditional approach (through financial indicators) and modern approach (through effective border construction) to measure and evaluate the performance of the operating activities of jointstock commercial banks in Vietnam in the period 2013-2018 As for the modern approach, the thesis combines both DEA and SFA methods to apply the advantages of these two methods The results of the study help to comprehensively evaluate the operating efficiency of the Vietnamese commercial banks' system in the period 2013-2018 + The dissertation uses the estimation technical efficiency by the DEA method (TEVRS) as the dependent variable in the Tobit regression model to analyze the factors affecting the business performance of the Vietnam Joint-Stock Commercial Bank This way of implementation helps to accurately assess the factors affecting the efficiency of operating activities of joint-stock commercial banks in Vietnam in the period 2013-2018 + Based on the current status of the operating activities and the trend and the level of the impact of factors on the efficiency of the operating activities of the Vietnam Joint Stock Commercial Bank system, the thesis has evaluated the results, limitations, and causes of the limitations of efficiency results of business activities of the Vietnam Joint-Stock Commercial Bank system + Proposing groups of practical solutions for joint-stock commercial banks in Vietnam and some recommendations suitable to relevant agencies to improve the efficiency of business operations of the system of commercial banks in Vietnam in the coming time The results of the thesis would be a reference for bank administrators to evaluate the efficiency of operating activities and find out solutions to improve the efficiency of operating activities of the unit At the same time, the thesis is also a reference source for the authorities at all levels to build a system of policies to support the development of jointstock commercial banks in Vietnam in particular and the Vietnamese banking system in general Structure of the thesis In addition to the introduction, conclusion, list of references, and appendices, the structure of the thesis includes chapters: Chapter 1: Theoretical basis on business performance of commercial banks Chapter 2: Current status of business performance of joint-stock commercial banks in Vietnam Chapter 3: Solutions to improve the business performance of joint-stock commercial banks in Vietnam 18 b Capital adequacy ratio (CAR) The statistical results show that all banks have CAR> 9% In general, large banks have lower CARs than small banks Table 2.11: Capital adequacy ratio of 29 joint-stock commercial banks in Vietnam 2013-2018 Unit: % Year Number of banks Maximum value Minimum value Average value Standard deviation 2013 29 9.04 37.30 14.93 5.660 2014 29 9.05 37.50 14.09 5.511 2015 29 9.07 24.53 14.45 4.300 2016 29 9.09 23.59 13.74 3.830 2017 29 9.10 22.16 12.78 3.058 2018 29 9.58 19.00 12.31 2.178 Source: Author's SPSS statistics from Vietnam Joint-Stock Commercial Bank's Annual Report 2.2.1.6 Effective administration a The growth rate of total assets Table 2.12: The growth rate of total assets of 29 joint-stock commercial banks in Vietnam 2013-2018 Unit: % Year Number of banks Maximum value Minimum value Average value Standard deviation 2013 29 0.00 112.23 23.04 25.323 2014 29 0.00 60.42 17.85 13.931 2015 29 0.00 53.86 15.29 13.788 2016 29 0.00 46.77 19.86 11.711 2017 29 4.20 42.49 19.63 7.929 2018 29 0.00 37.87 11.84 7.653 Source: Author's SPSS statistics from Vietnam Joint-Stock Commercial Bank's Annual Report b Debt growth rate Table 2.13: Debt growth rate of 29 joint-stock commercial banks in Vietnam 20132018 Unit: % Year Number of banks Maximum value Minimum value Average value Standard deviation 2013 29 0.00 108.20 22.51 26.979 2014 29 0.00 66.35 20.27 17.829 2015 29 0.00 49.02 24.96 12.420 2016 29 2.51 67.58 25.98 13.680 2017 29 3.12 51.19 22.60 9.679 2018 29 0.00 39.81 15.11 9.036 Source: Author's SPSS statistics from Vietnam Joint-Stock Commercial Bank's Annual Report 19 c Net income growth rate Table 2.14: Net income growth rate of 29 joint-stock commercial banks in Vietnam 2013-2018 Unit: % Year Number of banks Maximum value Minimum value Average value Standard deviation 2013 29 0.00 125.10 16.78 31.026 2014 29 0.00 336.99 26.07 63.333 2015 29 0.00 112.90 22.77 26.695 2016 29 0.00 73.74 22.19 17.056 2017 29 0.00 56.96 24.42 16.552 2018 29 0.00 84.10 24.50 22.316 Source: Author's SPSS statistics from Vietnam Joint-Stock Commercial Bank's Annual Report 2.2.2 Measuring the operating efficiency of the system of joint-stock commercial banks in Vietnam according to modern approach  Selection of research variables Table 2.15: Variables in the analysis Unit: billion dong Variable input Variable output - Interest expense (X1) - Non-interest expenses (X2) - Interest income (Y1) - Non-interest income (Y2) Source: Author proposed  Describe the variables used in the study Figure 2.16: Interest expenses and operating costs of joint-stock commercial banks in Vietnam 2013-2018 20,000 15,000 4,265 3,731 10,000 3,099 2,042 2,207 2,556 5,000 6,121 5,935 6,329 7,815 2013 2014 2015 2016 9,645 11,549 Chi phí lãi 2017 2018 Chi phí hoạt động Source: Author's calculation with the support of SPSS 22.0 software 20 Figure 2.17: Interest income and non-interest income of joint-stock commercial banks in Vietnam 2013-2018 12,000 10,000 2,446 8,000 1,734 6,000 Thu nhập lãi 1,275 928 988 3,135 3,576 4,240 5,030 2013 2014 2015 2016 4,000 2,000 1,090 6,264 7,202 2017 2018 Thu nhập lãi - Source: Author's calculation with the support of SPSS 22.0 software 2.2.2.1 Measuring the business performance of Vietnam joint-stock commercial bank system by non-parametric method (DEA) a Measuring banks' business performance in a model of constant efficiency with DEA (CRS) Table 2.17: Measuring the business performance of 29 Vietnamese joint stock commercial banks according to the unchanged efficiency model by DEA (CRS) No Bank 2013 2014 2015 2016 2017 2018 Average MB 1,000 1,000 0,898 0,808 0,806 0,735 0,875 VPbank 0,588 0,604 0,783 0,980 0,995 1,000 0,825 Vietcombank 0,707 0,725 1,000 0,785 0,773 0,876 0,811 BacA bank 0,731 0,781 0,756 0,762 0,892 0,781 0,784 BIDV 0,766 0,905 0,623 0,703 0,811 0,881 0,782 Techcombank 0,526 0,737 0,834 0,830 0,820 0,821 0,761 LienViet 0,769 0,599 0,865 0,813 0,769 0,667 0,747 SGB 0,804 1,000 0,708 0,622 0,680 0,619 0,739 OCB 0,845 0,682 0,692 0,659 0,688 0,763 0,721 10 Vietinbank 0,751 0,748 0,729 0,713 0,733 0,642 0,719 11 VietA bank 0,546 0,461 1,000 0,694 0,818 0,793 0,719 0,593 0,616 0,724 0,658 0,894 0,652 0,689 12 Tienphong bank 13 SHB 0,457 0,680 0,718 0,674 0,675 0,699 0,650 14 PGbank 0,455 0,577 0,578 0,698 0,685 0,677 0,612 15 VIB 0,524 0,611 0,574 0,548 0,632 0,753 0,607 21 16 BaoViet 0,710 0,532 0,565 0,630 0,716 0,453 0,601 17 NamAbank 0,399 0,594 0,677 0,598 0,584 0,598 0,575 18 ACB 0,474 0,513 0,612 0,616 0,574 0,646 0,573 19 Kienlong 0,726 0,619 0,594 0,478 0,532 0,432 0,564 20 ABBank 0,480 0,552 0,578 0,587 0,570 0,512 0,547 21 Eximbank 0,522 0,560 0,610 0,563 0,495 0,456 0,534 22 Seabank 0,437 0,381 0,480 0,663 0,627 0,580 0,528 23 HDbank 0,144 0,372 0,565 0,597 0,652 0,719 0,508 24 Sacombank 0,650 0,619 0,540 0,291 0,340 0,403 0,474 25 SCB 0,446 0,494 0,695 0,491 0,241 0,298 0,444 0,482 0,435 0,408 0,375 0,466 0,441 0,434 26 Vietcapital bank 27 MSB 0,469 0,446 0,361 0,501 0,331 0,431 0,423 28 NCB 0,394 0,402 0,469 0,367 0,470 0,399 0,417 29 PVcombank 0,292 0,140 0,111 0,230 0,294 0,232 0,216 0,741 0,793 0,784 0,734 0,772 0,800 0,771 0,585 0,606 0,659 0,633 0,653 0,623 0,626 0,601 0,625 0,672 0,643 0,665 0,641 0,641 Joint-stock commercial banks have dominant state ownership Joint-stock commercial banks not have dominant state ownership Average technical efficiency of joint stock commercial banks Source: Author's calculation results with the support of R software Table 2.17 shows that with the assumption of constant efficiency according to scale, commercial banks effectively use inputs and optimize output in the period 2013-2018 is MB (2013, 2014); VPbank (2018); Vietcombank (2015); SGB (2014); VietAbank (2015); These banks have an efficiency score of and are on the efficiency frontier In addition, other joint-stock commercial banks in the sample all have efficiency scores 70% Table 2.22: Results of the Cobb-Douglas random margin production function Effective interest income Effective non-interest income Variable Significance Significance research Coefficients Standard Coefficients Standard level level (Coef.) error (Coef.) error (P-value) (P-value) Ln Interest -0.2972 0.3398 0.382 -0.2384 0.2286 0.297 expense Ln Operating 1.2608 0.3928 0.001 1.1576 0.2536 0.000 costs Sigma_u 0.2942 0.6298 Sigma_v 0.2135 0.6241 Source: The author analyzes data collected from 29 Vietnam Joint Stock Commercial Banks The analytical results show that the interest expense factor has a negative impact on interest and non-interest income but has no statistical significance (P> 5%) In terms of operating costs, this factor has a positive impact on the bank's operating efficiency, in particular its positive impact on the output factors such as interest income (coef 1,2608), and revenue non-interest import (coef 1.1576) with 95% confidence 25 2.2.3 Analyzing the factors affecting the business performance of Vietnam joint-stock commercial banks Table 2.25: Results of estimating the Tobit model of factors affecting the efficiency of joint-stock commercial banks in Vietnam TE Coef Standard error t P>t Confidence interval 95% QMTS 0.0298 0.0164 2.73 0.005 0.0107 0.0652 VCSHTS 0.0127 0.0051 2.47 0.006 0.0023 0.0218 STATE -0.0133 0.0652 -1.09 0.044 -0.1011 -0.0100 FOR 0.0252 0.0198 3.01 0.002 0.0152 0.0340 MARK SHARE 0.0442 0.0628 2.06 0.032 0.0253 0.0658 NPL -0.0387 0.0116 0.88 0.049 -0.0416 0.0296 GDP 0.0335 0.0087 0.50 0.003 0,0182 0.0672 DNTTS -0.0037 0.0089 0.15 0.002 -0.0137 0.0019 CPTN -0.0084 0.0018 -3.89 0.000 -0.0098 -0.0065 Source: Estimated results of Tobit Stata model 14.0 The results of estimating the Tobit regression model on the impact of factors on the performance of the bank's operating activities (TE) showed that there are factors that have the same direction: QMTS, Equity, STATE, FOR, MARKSHARE, and GDP; Three factors have opposite effects: NPL, total assets and unemployment 2.3 Evaluation of the operating efficiency of the joint-stock commercial banks in Vietnam 2.3.1 Discuss the results of operating efficiency evaluation 2.3.1.1 The results of evaluating the effectiveness of business activities according to traditional approaches 2.3.1.2 The results of the evaluation of the effectiveness of business activities according to the modern approach 2.3.2 Overall assessment of the operating efficiency of the joint-stock commercial banks in Vietnam 2.3.2.1 The results achieved - The operational scale of the banks continued to expand - Stable income from credit activities - Efficiency in using capital and efficiency in using assets of banks has been improved 26 - The average income of bank employees is high compared to the general premises 2.3.2.2 Limitations and reasons a Limit - Profitability of many banks is still low - Low efficiency in using capital - Low efficiency in using assets in non-credit activities - Profit before tax per employee of some banks is still quite low - The growth rate of costs is not commensurate with the profit earned - 50% of the banks in the sample are ineffective b Reason  Subjective causes - The income of commercial banks in Vietnam is heavily dependent on credit activities - Banks not have enough resources to develop non-credit activities - The quality of human resources is not high, productivity is low - Not taking advantage of the benefits from modern technology application - Risk management capacity of some Vietnamese joint-stock commercial banks is not good - Cost control efficiency is not high  Objective cause - There are many shortcomings in the valuation and handling of bad debts - Negative impact of banking M&A activities Policies and legal regulations related to banking are incomplete and synchronous - Vietnam's financial market is not yet complete 27 CHAPTER SOLUTIONS TO IMPROVE BUSINESS PERFORMANCE OF JOINT-STOCK COMMERCIAL BANKS IN VIETNAM 3.1 Viewpoints and business orientations of joint-stock commercial banks in Vietnam 3.1.1 Viewpoints and orientations of the Government and the State Bank of Vietnam towards the development of the joint-stock commercial bank system in Vietnam 3.1.2 Viewpoints and orientations to improve the business performance of joint-stock commercial banks in Vietnam 3.1.2.1 Continue to restructure the system of commercial banks 3.1.2.2 Improve competitiveness 3.1.2.3 Develop a green bank towards sustainable development 3.1.3 Opportunities and challenges for commercial banks in Vietnam to improve the efficiency of business activities in the context of international integration OPPORTUNITIES THREATS - Opportunities to expand and develop - The fiercer competition of the banking markets abroad system - Opportunity to improve financial - The pressure to transfer high-quality capacity and governance capacity human resources from domestic joint- - Opportunities from the technology stock commercial banks to SBV revolution 4.0 - Vietnam commercial banks facing the risk of being acquired when the proportion of foreign ownership in Vietnamese commercial banks tends to increase - The pressure of innovation of the system of commercial banks before the wave of digital technology in the context of the industrial revolution 4.0 28 3.2 Solutions to improve the business performance of joint-stock commercial banks in Vietnam 3.2.1 Group of capital solutions 3.2.1.1 Increase in equity - Issue additional shares - Share dividends by shares - Issue bonds and certificates of deposit in medium and long term 3.2.1.2 Improve the efficiency of capital mobilization - Set a reasonable interest rate - Develop customer strategy - Innovate forms of mobilizing capital deposits - Expand demand deposits 3.2.1.3 Effective management of the bank's capital resources - Equity - Deposit capital - Other sources of capital 3.2.2 Group of solutions to improve risk management capacity 3.2.2.1 Completing the credit review process 3.2.2.2 Establish an early risk warning system 3.2.2.3 Control borrower information 3.2.2.4 Strengthen the capacity to handle bad debts 3.2.2.5 Complete the risk management system according to Basel II standards 3.2.3 Group of solutions for human resources 3.2.3.1 Perfecting recruitment mechanism and process - Develop a reasonable recruitment strategy - Set standards for every job title and job position - Implement a public and transparent recruitment process 3.2.3.2 Train high-quality staff - Define training goals - Construct training programs 29 - Diversify training forms - Develop training centers 3.2.3.3 Having appropriate policies for employees 3.2.4 Group of solutions to improve cost control efficiency 3.2.4.1 Implement operating cost reduction strategies, contingency costs - Reduce operating costs - Cut down on backup costs 3.2.4.2 Calculate the balance between interest expenses and interest income 3.2.5 Group of solutions to increase revenue from non-credit activities 3.2.5.1 Diversify the types of products and services - Complete existing products and services - Developing new products and services - Provide "product packages" 3.2.5.2 Improve service quality - Focus on customer service - Improving the process of providing products and services to customers - Implementing a reasonable price policy for each type of product or service - Ensuring the transparency and safety in the transaction process 3.2.5.3 Develop an effective marketing strategy - Direct marketing - Marketing through community activities - Perform advertising on the media 3.2.6 Group of solutions for applying digital technology in banking operations 3.2.6.1 Complete information technology infrastructure 3.2.6.2 Establish solutions to ensure information safety and confidentiality 3.2.6.3 Training highly qualified human resources in IT 3.2.6.4 Cooperation with strategic partners 3.3 Some recommendations 3.3.1 For the Government 3.3.1.1 Develop and complete legal documents 30 3.3.1.2 Support commercial banks to conduct merges and acquisitions 3.3.1.3 Develop debt trading market 3.3.2 For the State Bank 3.3.2.1 Continue to promote banking restructuring activities 3.3.3.2 Closely monitor the operations of commercial banks 3.3.3.3 Complete the management information system based on the application of modern technology 3.3.3.4 Increase the foreign investors' ownership in Vietnam joint-stock commercial banks 31 CONCLUSION The business performance of joint-stock commercial banks is not only meaningful to the bank itself but also affects the health of the entire financial system Therefore, the overall evaluation of the effectiveness and identification of the factors affecting the performance of business performance of joint-stock commercial banks in Vietnam is very necessary By combining many research methods, the author has managed to: (1) Establish the theoretical framework of banking and business performance efficiency of commercial banks Emphasizes the role and the need to improve the business performance of commercial banks (2) Synthesize methods of evaluating the operating efficiency of commercial banks including traditional assessment methods through financial indicators and modern assessment methods through building an effective border (3) Evaluate the business performance of joint-stock commercial banks in Vietnam based on groups of indicators set according to traditional methods At the same time, the author also evaluates the bank's business performance according to a modern approach by both methods: DEA and SFA The results show that there is a similarity between the efficiency of banks using traditional and modern methods (4) Use the TOBIT regression model to analyze the influencing factors, the level and the trend that affect the performance of business activities of Vietnam Joint-Stock Commercial Banks (5) Propose groups of solutions to improve the business performance of joint-stock commercial banks in the coming time based on the results of (a) the analysis and assessment of the effectiveness of operating activities, (b) opportunities and challenges for the bank and (c) development orientation of commercial banks in the coming time LIST OF RESEARCH HAVE BEEN PUBLISHED BY AUTHOR RELATED TO THE THESIS Nguyen Thi Le Huyen (2018), “The impact of sectoral diversification on banks' profit and risk: evidence from Vietnamese commercial banks listed on the stock market ”, Journal of Finance and Accounting, No 14 - 12/2018, pages 15-21 Nguyen Thi Le Huyen (2019), "Factors affecting customers' perception of green banking - The case of Vietnamese banks", Journal of Finance and Accounting, No 15 - / 2019, pages 18-24 Nguyen Thi Le Huyen (2019), "Factors affecting the adoption of green banking in Vietnamese commercial banks", Journal of Banking Science & Training, No 208 - 9/2019, pages - 11 Nguyen Thi Le Huyen (2019), "Methods of measuring the business performance of commercial banks with modern approaches", Journal of Economics and Forecasting, No 27 - 9/2019, pages 13-16 Nguyen Thi Bich Vuong - Nguyen Thi Le Huyen (2019), “Model factors affecting credit risk at Vietnamese Commercial Banks”, Proceedings of 15th International Conference on Humanities and Social Sciences 2019 (IC-HUSO 2019) 11th-12th November 2019, Faculty of Humanities and Social Sciences, Khon Kaen University, Thailand, pages 408-427 Nguyen Thi Le Huyen (2019), "Development Strategy of Vietnam's banking industry in the era of the Industrial Revolution 4.0", Proceedings of the first international conference on banking and finance (ICBF 2019), pages 383-400 Nguyen Thi Le Huyen (2019), "Proposed model to evaluate the maturity of Industry 4.0 in the banking sector", Journal of Finance and Accounting, number, page Nguyen Thi Le Huyen (2020), "Evaluation of business performance of commercial banks according to modern approach", Journal of Economics and Forecasting, No - 2/2020, pages 16-19 ... be found at: - Library of Banking Academy of Vietnam - National library of Vietnam INTRODUCTION THE NECESSITY OF THE DISSERTATION TOPIC In Vietnam, the issue of the business operation efficiency... banks in Vietnam 2013-2018 20,000 15,000 4,265 3,731 10,000 3,099 2,042 2,207 2,556 5,000 6,121 5,935 6,329 7,815 2013 2014 2015 2016 9,645 11,549 Chi phí lãi 2017 2018 Chi phí hoạt động Source:... commercial banks in Vietnam 3.1.1 Viewpoints and orientations of the Government and the State Bank of Vietnam towards the development of the joint-stock commercial bank system in Vietnam 3.1.2 Viewpoints