Improving business efficiency of Vietnam Technological and Commercial Joint Stock Bank

The study on the effectiveness of using bank credit capital for commercial enterprises in Vietnam" [68] has clarified the position of commercial banks in the process of economic transformation and the important role of bank credit capital for the development of commercial enterprises. At the same time, the study also provides basic indicators for considering business efficiency in general and the effectiveness of using credit capital in particular of commercial enterprises, providing solutions for both enterprises and commercial banks to improve the effectiveness of using credit capital. The study does not present theories about efficiency, does not evaluate social efficiency, only evaluates the financial efficiency of banks.

Nguyen Van Duong (1999), " Improving the efficiency of export-import credit of Vietnam Agricultural Bank " [15] presented the concept of efficiency and recognized the efficiency of export-import credit as the unity of two contents: Business efficiency expressed by the system of indicators of profit and income of the bank from export-import credit, the growth of the bank in terms of capital, capital use, customers and market due to the impact of export-import credit and business efficiency and socio-economic efficiency expressed through the system of indicators of business efficiency of enterprises using loan capital, impacting the socio-economy. The study only assessed socio-economic efficiency in terms of economic growth, increasing import-export turnover without assessing the issue of job creation, contribution to the state budget and not assessing the credit market share compared to the banking system.

Dam Hong Phuong (2008) " Improving the efficiency of capital use of commercial banks in Hanoi in the process of international integration " [65] has theorized about the issue of efficiency, efficiency of capital use of banks. The study analyzed the current situation of capital use efficiency of 8 joint stock commercial banks in Hanoi in the period of 2002 - 2008 such as Vietnam Prosperity Bank, Maritime Bank, Vietnam Technological and Commercial Bank, Global Petroleum Bank, Southeast Asia Bank, Military Bank, International Bank. The study did not evaluate social efficiency.

Nguyen Thac Hoat (1993) : "Main solutions to expand and improve

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"High efficiency of bank credit for the non-state economy " [25]. Research to systematize scientific arguments on the nature and role of credit in the market economy, assess the general situation and operating institutions of bank credit in the non-state economic sector, thereby proposing solutions on policies and measures to create capital, loans to create a credit market, economic and legal environment suitable for our country's economy.

Nguyen Thanh Chung (2002): “ Improving the efficiency of bank credit for agricultural and rural development in Quang Ninh province ” [11]. The concept of credit efficiency here is viewed from the customer perspective, that is, taking the success of the customer as a measure; from the banking perspective, that is, creating high profits; from the social perspective, that is, serving economic development, solving employment, and limiting social evils. However, when evaluating efficiency, social efficiency is not evaluated.

Vu Thuy Nga (2004), “Solutions to improve the efficiency of international payment activities of Vietnam Foreign Trade Bank” [59]. The study analyzed the current status of international payment activities efficiency at Vietnam Foreign Trade Bank, contributing to the formation of valuable scientific products on international payment activities.

Pham Thi Tuyet Mai (2001) " Solutions to improve the efficiency of foreign currency mobilization and use in Vietnamese commercial banks " [46]. The study systematizes the main theoretical issues related to foreign currency for economic development. Then, the study evaluates the mobilization efficiency in both economic and social aspects. The social aspect is reflected in increasing foreign currency reserves, implementing the state's foreign exchange management policy, and improving the state's political and diplomatic position. The study does not mention the concept of efficiency. Social efficiency does not mention the issue of labor employment, contribution to the budget, and market share.

Le Anh Tuan (2003) with the thesis: " Solutions to expand and improve the efficiency of foreign currency trading of Vietnamese state-owned commercial banks (taking banks as an example)

The study conceptualized foreign exchange business efficiency as a measure to assess the level of quality of bank operations after a period of time or after a certain business period. Efficiency here is assessed through qualitative criteria such as capital circulation for economic development, perfecting monetary and financial policies, promoting foreign relations and quantifying indicators to assess foreign exchange business efficiency. From there, the study assesses and analyzes the current status of foreign exchange business operations of state-owned banks, points out limitations, proposes solutions and recommendations at the macro and micro levels on expanding and improving the operational efficiency of state-owned commercial banks. The socio-economic efficiency of foreign currency is only theoretical and qualitative, without specific assessment criteria, so the level of social efficiency cannot be determined.

Le Thi Huong (2003) [31], " Improving the efficiency of investment activities of Vietnamese commercial banks " argues that investment efficiency is viewed from three perspectives: society, banks and customers, and at the same time, the author has built and systematized indicators reflecting the efficiency of investment activities of commercial banks on the macro and micro levels. In addition, the author has analyzed the current situation of investment activities of state-owned commercial banks over time, evaluated the efficiency of investment activities of state-owned commercial banks, especially lending activities in the trend of innovation and integration. At the same time, the thesis offers a number of solutions to enhance the efficiency of lending activities and customer assessment. The study does not evaluate the current situation of social efficiency.

Author Truong Quoc Cuong (2000) with his doctoral thesis: " Main solutions to improve the efficiency of project investment at the Vietnam Joint Stock Commercial Bank for Industry and Trade "

[10] has generalized and systematized the theoretical role of project investment in the market economy in general and in our country in particular.

The above studies have studied the business efficiency of the main banking operations such as mobilization, lending, payment, foreign exchange trading, thereby contributing to improving the overall efficiency of the entire bank... However, studying efficiency in a narrow scope makes it very difficult to evaluate the operational efficiency.

overall motivation to orient development and enhance the bank's competitiveness.

There are also research theses on the business efficiency of banks.

like:

Trinh Cong Thang (1995), " Some macroeconomic solutions to improve

The thesis "Business performance of the Vietnamese state-owned commercial banking system " [69] has drawn initial experiences on the macroeconomic management policy mechanism for state-owned commercial banks. The thesis proposes a number of solutions on macroeconomic management to create a legal environment in business, continue to clearly define the relationship between state finance, bank credit and corporate finance, affirm the independence and autonomy of commercial banks, reform the tax system, build institutions on mandatory auditing, business insurance mechanisms, resolve the relationship between credit supply and demand with inflation control and economic growth, the issue of training staff and managing state-owned commercial bank branches to improve the operational efficiency of state-owned commercial banks in the market mechanism. The study does not present theories on the business efficiency of banks, does not provide indicators for evaluating business efficiency.

Some theses provide quite specific criteria for evaluating business performance:

Pham Thi Bich Luong (2007): " Solutions to improve the operational efficiency of current state-owned commercial banks " [44] presented the concepts of efficiency and argued that the business efficiency of commercial banks is viewed in three aspects: customers of the bank, socio-economic aspect and banking aspect; assessed the current state of business efficiency of state-owned commercial banks in the period 2000 - 2005 and proposed solutions and recommendations mainly contributing to improving the business efficiency until 2010 of the four largest state-owned commercial banks in Vietnam including the Bank for Agriculture of Vietnam, the Bank for Industry and Trade of Vietnam, the Bank for Foreign Trade, and the Bank for Investment and Development of Vietnam (period 2000 - 2005). However, when evaluating business efficiency, this study only evaluated financial indicators reflecting the aspects of

banks without assessing social performance.

Vo Kim Thanh (2001): " Diversifying banking operations to improve the business efficiency of Vietnam's industrial and commercial banks " [80] raised the issue of diversifying operations - an inevitable development trend of Vietnam's industrial and commercial banks and recommendations and solutions to diversify the operations of this bank to improve business efficiency. This study considers the business efficiency of a bank to be expressed in many different aspects such as efficiency for customers, socio-economic efficiency, and the efficiency of the bank itself. The thesis takes the operations of industrial and commercial banks after 1995 as the main research object and proposes solutions to diversify operations in accordance with economic conditions in general and industrial and commercial banks in particular. At the same time, the author clearly analyzes the dialectical relationship between diversifying operations and improving operational efficiency, creating a basis for affirming that diversifying operations is an indispensable solution to improve the operational efficiency of commercial banks. This study does not assess the effectiveness of the social aspect.

Nguyen Viet Hung (2008), “ Analysis of factors affecting the operational efficiency of commercial banks in Vietnam ” [26]. The thesis outlines theoretical and practical issues in researching the operational efficiency of commercial banks, analyzes factors affecting operational efficiency and solutions to improve the operational efficiency of commercial banks in Vietnam.

Le Dan (2004) “ Applying some statistical methods to analyze the performance of Vietnamese commercial banks ” [13]. The study has systematized and perfected the system of performance analysis indicators suitable for the performance of Vietnamese commercial banks.

Tran Hoang Ngan (1995), " Some measures to contribute to improving the operational efficiency of joint stock commercial banks in Ho Chi Minh City " [60] raised theoretical issues on business efficiency, the current operational status of joint stock commercial banks in Ho Chi Minh City and the main measures to contribute to improving the operational efficiency of joint stock commercial banks.

part.

Doan Thi Hong (2005) with " Solutions to improve business efficiency"

Commercial banks in Long An province " [34] has overviewed the theory of commercial banks; analyzed the current situation and effective business solutions of some commercial banks in Long An province.

There are studies that mention social efficiency such as Truong Thi Hoai Linh (2012), " Improving the operational efficiency of Vietnam Development Bank " [43]. The study presents the theoretical basis for the operational efficiency of development banks, which is the correlation between the benefits that banks bring and the costs that banks must spend to achieve the goal of supporting the socio-economic development of the country. The study has argued that only when calculating socio-economic efficiency can the project's contributions to the goal of promoting social development be specified, not just stopping at the level of listing society like other studies. Efficiency here is viewed from two perspectives: financial efficiency (the ability to generate profits and safety in bank operations) is reflected by the following indicators: Profit, average interest rate difference, capital efficiency, capital safety ratio, overdue debt or bad debt ratio, asset profitability ratio, equity profitability ratio and socio-economic efficiency exploited in terms of ensuring social security, developing disadvantaged regions, contributing to the export turnover of the economy. At the same time, research is conducted to include indicators to evaluate social efficiency including: The level of promoting economic restructuring towards industrialization and modernization, the level of development of disadvantaged regions, increasing infrastructure for the economy, contributing to export turnover . However, when referring to the indicators for evaluating social efficiency, the study did not evaluate the investment market share compared to the entire banking system, the proportion of contribution to job creation for the economy, and did not mention the issue of job creation for workers and contribution to the state budget.

Lam Thi Hong Hoa " Orientation for developing Vietnam's banking system in the process of international economic integration" [32] also studies commercial banks with the defined limits: evaluating the activities of the State Bank

Vietnam and commercial banks in general since Vietnam implemented the economic renovation policy, shifted to a market economy and integrated into the international economy. With data collected and analyzed on the activities of Vietnamese commercial banks in the period (1997 - 2003), the study has the following main contributions: Systematizing basic issues on banking operations and the banking system, issues on integration in the banking sector; assessing the advantages and difficulties that the banking industry must face in the face of new challenges of the economy; determining the main directions for developing the Vietnamese banking system.

Through studying the above doctoral theses, the author draws the following conclusions:

 First about the layout

The theses are all clearly presented with a three-part structure:

+ Part 1 (introduction) presents the theoretical basis of commercial banking, banking operations, theories on banking business efficiency or certain fields.

+ Part 2 (current situation) is the assessment of the business efficiency of the entire bank or the main operations of the bank such as payment, lending, foreign exchange trading... From there, the theses state the successes, shortcomings and causes of the shortcomings in the business efficiency of the bank.

+ Part 3, studies propose solutions to improve the efficiency of bank operations or certain business operations.

 The second is an analysis of the bank's business performance.

+ Some theses have stated the theoretical basis for the efficiency and business performance of banks or of some main operations. These theories have been considered by some studies from two perspectives: banking and society.

+ Business efficiency is evaluated based on financial indicators from the surveyed bank's perspective such as: profit margin, credit quality, capital safety...

However, according to the author, the above theses still have the following limitations:

 First, about the thesis content:

+ There is little or no overview of related topics so that the reader can see the researcher's ability to expand and research the topic.

+ Some theses have a theoretical part that mentions the business efficiency of banks from two perspectives: banking and society, but in assessing the current efficiency, they almost do not evaluate the social efficiency index, which is not logical like the research of Nguyen Thanh Chung [11], Le Anh Tuan [71], Pham Thi Bich Luong [44].

 Second, about the scope of research

+ There is no thesis that studies a specific 100% joint stock bank, although in recent years, the joint stock banking system has made great strides in development and is a major competitor of the state-owned banking sector.

+ The research time was many years ago, so some solutions are outdated and no longer suitable.

The author also found some textbooks that study indicators for evaluating bank business performance such as:

Nguyen Van Tien [78], “ Commercial Bank Management” , has a way to analyze the business performance of banks based on the following contents: Stock price; Profitability (Return on equity, return on assets, net interest margin (NIM), input-output margin, non-interest margin (NNM), net operating margin (NOM)); operating expenses on pre-tax profit. From there, this study provides indicators to evaluate the business performance of banks based on 6 indicators of the CAMELS analysis system.

Truong Minh Du (2014), "Analysis of commercial bank business activities" [17], when analyzing the bank's business activities, included some contents such as: Business performance results (including profits, income, expenses); Credit activity situation (including mobilization and credit granting); Payment activities (domestic payment, international payment); Solvency (including general solvency ratio, minimum ratio between assets that can be paid immediately and Liabilities); Minimum capital safety ratio. From there, this study explains that a bank

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