MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HO CHI MINH CITY
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NGUYEN HUU HUAN
BANK RESTRUCTURING AND BANK EFFICIENCY
- THE CASE OF VIETNAM
SUMARY OF DOCTORAL THESIS IN ECONOMICS
Ho Chi Minh city – 2018
The Thesis was completed in:
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The thesis will be protected by the Board of Review in:
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The thesis can be found at the library:
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TABLE OF RESEARCH PAPERS
Vo, X. V., & Nguyen, H. H. (2018). Bank restructuring and bank
efficiency—The case of Vietnam. Cogent Economics &
Finance, 6(1), 1520423.
https://doi.org/10.1080/23322039.2018.1520423
Vo, X. V., & Nguyen, H. H. (2015). Does Bank Restructure Lead
to Higher Efficiency? An Investigation of the Vietnamese Banking
System, Singapore Economics Review, Namyang University,
Singapore.
Vo, X. V., & Nguyen, H. H. (2015). The impact of restructuring on
structure and performance – Evidence from Vietnam, Infiniti
Conferrence, University of Sydney, Australia.
SUMMARY OF THESIS
Chapter 1. Introduction
In this chapter, the author presents the role of banking system and
introduces the performance of Vietnamese banking system from
2008 until now; details the motivations, research questions and
objectives. In general, under the effect of the global financial crisis,
Vietnamese banking system has coped up with many difficulties and
challenges to improve the operational efficiency of the entire system
and individual banks. With the aim of assessing the situation to
restructure the banking system in Vietnam in recent years, the
subject which is made is based on previous studies on restructuring
the banking system. The thesis focuses on the study of the
restructuring process of the Vietnamese banking system from 2007
to 2015, in conjunction assesses different financial structure of the
system before and during the implementation stage in the
restructuring. More specifically, it examines how the restructuring
measures effect on the performance of the commercial banks and
whether the process of restructuring in the sample period increases
the operational efficiency of the banks or not. It also explores the
effect of reform on Vietnam’s bank structure and performance.
The first research question is based on a research gap that there
hasn’t been any study discovering the influence of bank restructuring
method on bank restructuring process in a small transition economy,
especially Vietnam. It is stated as “How the restructuring measures
were introduced as government intervention, merger and acquisition
of commercial banks and privatization of state-owned commercial
banks effect on the performance of the commercial banks in the
study period of Vietnam?”. To resolve this question, the following
hypothesis is tested:
H1.1: Government intervention increases the effective of
commercial banks' performance.
H1.2: Merger and acquisition increases the effective of commercial
banks' performance.
H1.3: Privatization of state-owned commercial banks increases the
effective of commercial banks' performance.
The second research question examines the effects of first-stage
reform on bank structure and performance in Vietnam. It is stated
that “What are the effects of reform on Vietnam's commercial bank
structure and performance?” With this research question, it is a
development of classic hypotheses in restructuring, such as quiet-life
hypothesis, market power and efficiency structure hypotheses to
analyze changes in bank performance and structure before and
during restructuring. And to address this objective, the following
hypothesis is tested:
H2.1: The collusive behaviour of dominating firms in the industry
influences the price setting process in the market which allowes
those firms to gain superior profit over other firms. The relationship
between market concentration and firm performance is positive.
H2.2: Firms with relatively bigger market shares and differentiated
product lines have a superior market power and use it to set market
price and, thereby, earn an above average profit. Accordingly, the