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 ACQUISITIO

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 2 - March 2016

▪ About banking M&A activities in Vietnam over the past time; Economics and Forecasting Report - No 8 - April

▪ Competitive advantage of Vietnamese commercial banks; Economics and Forecasts - No 5 - February 2019

CHAPTER 1 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

2020-2030 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 8 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 6 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 8 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 2 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), R-Renovation (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 3 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 2 categories: Perfect competition; The competition is not perfect

Based on the scope of economic industry, there are 2 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

competition is based heavily on psychological factors such as trust, expectations of depositors;

2.2.4 Methods of competition of commercial banks

Compete by creating a variety of service portfolios; Compete by improving the service delivery process to increase utilities, improve service quality, minimize service delivery time, ensure customer safety; Competing on price, including costs, interest rates, and service charges; Competition by Marketing activities; Compete by expanding the network of transaction offices

2.2.5 Concept of competitiveness

According to Porter (1985), “Competitiveness of enterprises is the ability to maintain, expand market share and achieve high profits of businesses

2.2.6 The level of competitiveness

National competition; Competition at the industry level; Competition at the product / enterprise level

2.2.7 The concept of competitiveness of commercial banks after the merger and acquisition

From the author's point of view, commercial banks after M&A are essentially commercial banks, so the competitiveness

of commercial banks after M&A is conceptualized as the ability created by banks after M&A on the basis of maintenance and development inherent advantages to attract customers, expand market share and increase profits for banks

2.2.8 Factors affecting the competitiveness of commercial banks

2.2.8.1 Internal factors

Financial capacity; Technological capacity; Reputation of the bank; Transaction network; Service quality; Service charge; Human Resources; Executive management capacity:

2.2.8.2 External factors

Legal and political environment; Economic environment; Social and cultural environment; Natural environment; Science and technology environment

2.2.9 Experience in improving the competitiveness of foreign banks and lessons for commercial banks after the merger and acquisition in Vietnam

Experience of improving the competitiveness of a number

of foreign banks

Lessons for Vietnamese commercial banks after the merger and acquisition

CHAPTER 3 MODELS AND RESEARCH METHODS OF THESIS

- 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

(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 8 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 in-depth 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 8 commercial banks of Vietnam after M&A in 2011-2018

3.4 Research Methods

3.4.1 Qualitative research methods