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CHAPTER 1
INTRODUCTION OF RESEARCH OVERVIEW
1.1. The necessity of research
Overview of previous studies
There are many studies on domestic and international banking competitiveness and
stability. Many measurement methods and research models are mentioned depending on
the characteristics of the research country.
Most studies in Vietnam on competitiveness use the H and Lerner index, recent
studies mainly use the Lerner index because of the advantage in data collection and the
appropriateness of the results. math compared to the actual situation of Vietnam. Studies
on banking stability in Vietnam use the Zscore index and add other indicators to measure
bank stability such as: ROA, ROE, RARROA, RARROE ...
Researches on domestic and foreign CPTPP agreements for the banking industry
are mainly done by qualitative research methods and research content focusing on
identifying relevant commitments, opportunities and challenges. that the banking industry
will face when joining the CPTPP. There are several empirical studies at home and abroad
on the impact of the entry of foreign financial institutions on the domestic banking market
following the signing of general FTAs.
In Vietnam, the author has not found any research that “measures the
competitiveness and stability of Vietnamese commercial banks in the context of joining
the CPTPP agreement”.
Research gaps and new points in the thesis
In general, the issues that the previous scientific products have mentioned are
mainly: Portrayed the progress of Vietnam joining the TPP and CPTPP and the problems
raised when Vietnam joined this Agreement; International trade policy researchers have
made recommendations to the Government authorities on issues that Vietnam's negotiating
delegation should be aware of, as well as the CPTPP Agreement. what opportunities and
challenges for Vietnam's economy in general; Proposed solution: What should the
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government do? What should the business community do? To seize opportunities, limit
difficulties and challenges when the CPTPP Agreement is signed and officially entered
into force for Vietnam.
Very few documents and in-depth studies on competitiveness and stability of
Vietnamese commercial banks in the context of CPTPP integration.
In general, the previous studies also have some research gaps as follows:
First, the gaps in research space and time: The previous studies were mainly in the
period before 2016: The CPTPP Agreement has not been signed. Therefore, the study was
conducted on data collected from 31 commercial banks in Vietnam and 11 foreign-owned
commercial banks (joint venture banks or 100% foreign capital) for the period 2010 - 2018.
Second, research method gaps: Most studies use quantitative methods to measure
financial stability or measure the competitiveness of Vietnamese commercial banks. In this
research, the thesis uses a combination of both qualitative and quantitative methods to
increase the stability as a basis for reasoning to determine the influence of factors on the
stability and competitiveness of Vietnamese commercial banks. That is the basis for
effectively grasping opportunities as well as promptly responding to challenges from
commitments in the banking sector in the CPTPP.
Third, the gaps in measurement factors: In the context of CPTPP integration,
competitive competence and banking stability will be influenced by foreign credit
institutions in Vietnam, very few studies in The country measures the impact from the
presence of SBV on the competitive competence and the stability of Vietnamese
commercial banks, so the factor of the number of branches of SBV and the ratio of total
assets of the banks across the credit system is included in the model. research figure.
Fourth, the gaps in research content: Most of the research focuses on determining
the impact of factors on the competitive competence and stability of Vietnamese
commercial banks in general or research on opportunities - challenges. of Vietnamese
commercial banks when joining CPTPP. However, there are no in-depth studies on the
issue of measuring the Competitive capability and the stability level of Vietnamese
commercial banks in the context of CPTPP integration, based on some specific macro
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indicators to compare between the Vietnamese commercial banking system. the financial
system of the remaining 10 members in the CPTPP, thereby serving as a practical basis for
determining the prospects and competitive pressure to contribute to the bank administrators
with appropriate policy implications to improve the competitive competence, to maintain
stability of Vietnamese commercial banks in the context of CPTPP integration.
Those are research gaps that the author will fill in the thesis, as well as new points
of the topic.
The necessity of research on banking competitiveness and stability in the context of
CPTPP integration.
When the CPTPP is implemented synchronously in all economic sectors, the
operation of the banking system of countries in the region will change according to the
content of the general commitment. The degree of financial stability of Vietnamese
commercial banks is also affected by the impact of market expansion, the entry of foreign
financial institutions into Vietnam and vice versa, competition pressure from institutions.
finance at home and abroad. International integration of banks helps domestic commercial
banks through a more liberal competitive environment and in line with international
practices. At the same time, it is necessary for domestic banks to be aware of the new
situation in order to self-improve and improve in order to cope with the competition and
maintain the stability of the banking and financial system in terms of integration with the
region and the world. gender.
By measuring the competitiveness and stability of Vietnamese commercial banks,
determining the level and direction of impact of internal factors of banks, factors that affect
the participation of banks. foreign products, the impact of competition on banking stability
in the context of integration to identify the strengths and weaknesses of Vietnamese
commercial banks in the context of CPTPP integration as a basis for strategic planning to
make the most of opportunities. preparing to proactively control challenges, contributing
to helping Vietnamese banks operate in a safe, effective and strong manner and gradually
raising Vietnam's position in the international arena. The research results are used as a
scientific basis to help bank administrators with some policy implications to improve
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operational efficiency, increase competitiveness, and enhance stability for Vietnamese
commercial banks in the past. the implementation scene of commitments in the CPTPP
agreement.
Therefore, the topic "COMPETITIVE CAPABILITY AND STABILITY OF
VIETNAMESE COMMERCIAL BANKING IN THE CONTEXT OF PARTICIPATION
IN THE COMPREHENSIVE AND ADVANCED PARTNERSHIP AGREEMENT THAI
BINH DUONG" is selected by the author for the content assist.
1.2. Research objectives and research questions
1.2.1. Objectives of the study
The general research objective of the thesis: to measure the competitiveness and
stability of Vietnamese commercial banks in the context of participating in the CPTPP,
thereby making policy suggestions from research results. research of the thesis.
Specific objectives: In order to realize the above general objectives, the thesis will
conduct research on specific objectives as follows:
- Determine the current operating status of Vietnamese commercial banks and
compare with the rest of the member countries in the CPTPP for the period 2010 - 2018.
- Measuring competitiveness and the impact of these factors on the competitiveness
of Vietnamese commercial banks in the context of participating in CPTPP.
- Measure the level of stability and the trend of impacts of factors to the stability level
of Vietnamese commercial banks in the context of participating in CPTPP.
- Measure the trend of the impact of competitiveness on banking stability in the
context of participating in the CPTPP.
- Identify strengths, weaknesses, opportunities and challenges for Vietnamese
commercial banks in the context of participating in CPTPP.
- Policy implications to improve banking competitiveness and stability in the context
of participating in the CPTPP.
1.2.2. Research question
The research question is built on the following specific research objectives:
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Question 1: What are the performance results of Vietnamese commercial banks compared
to CPTPP member countries?
Question 2: Measuring competitiveness and impact of factors on the competitiveness of
Vietnamese commercial banks in the context of participating in CPTPP?
Question 3: Measure the stability level and impact direction of factors to the stability level
of Vietnamese commercial banks in the context of participating in CPTPP?
Question 4: What is the impact direction of competitiveness on the level of stability of
Vietnamese commercial banks in the context of participating in the CPTPP?
Question 5: Identify strengths, weaknesses, opportunities and challenges for Vietnamese
commercial banks in the context of participating in CPTPP?
Question 6: What are the policy implications to improve competitiveness and stability for
Vietnamese commercial banks in the context of participating in CPTPP?
1.3. Research object and research scope
1.3.1. Research object
Competitiveness and stability of Vietnamese commercial banks in the context of
participating in the CPTPP.
1.3.2. Research scope
- In terms of space: research conducted on 31 Vietnamese commercial banks.
- In terms of time: determined research in the period from 2010 to 2018.
- In terms of content: the scope of the dissertation to determine the current status of
operating results of commercial banks in Vietnam and compare it with the financial
systems of other member countries in the CPTPP; measuring the competitiveness, stability
level and the trend of impact of research factors on the competitiveness and stability of
Vietnamese commercial banks in the context of joining the CPTPP agreement; From there,
identify strengths, weaknesses, opportunities and challenges for Vietnamese commercial
banks in the context of joining the CPTPP agreement; as the basis for arguments giving
policy implications for managers to improve competitiveness and stability for Vietnamese
commercial banks.