Thesis topic: Strategic management of Vietnamese State Owned Commercial Banks after equalization: The case study of the Joint Stock Commercial Bank for Investment and Development of Vietnam
1. Full name: Tran Long
2. Sex: Male
3. Date of birth: 16/03/1976
4. Place of birth: Thanh Hoa
5. Admission decision number: 4741/QĐ-ĐHKT dated 11 November 2014
6. Changes in academic process: there is no any change during academic process.
7. Official thesis title: Strategic management of Vietnamese State Owned Commercial Banks after equalization: The case study of the Joint Stock Commercial Bank for Investment and Development of Vietnam.
8. Major: Banking - Finance
9. Code: 62 34 02 01
- Dr. Dinh Xuan Cuong;
- Assoc.Prof.Dr. Dao Van Hung
11. Summary of the new findings of the thesis:
The thesis reviews relevant literature on strategic management of commercial banks, identified factors affecting strategic management, most related strategic management models as well as strategic management practices in several different countries. Hence, the author developed a theoretical framework, research hypotheses, strategic management model which is applicable to equitized state-owned commercial banks in Vietnam. The proposed model is a useful model for commercial banks in Vietnam to refer to in order to formulate and implement their strategies. Based on that, the author carried out an assessment of current strategic management practices of BIDV. The result showed that basically BIDV’s strategic management is in line with relevant literature, the proposed model as well as best practices. However, there were still several aspects need to be considered for improvement and adjustment.
Applying the Structural Equation Modeling (SEM) based on the Partial Least Squares (PLS) approach, the author conducts a test to measure impacts of six factors on strategic management (including macro-environment, competitiveness, bank reputation, bank resources, structure of ownership, management style) of which bank reputation is a new factor proposed by the author to include in estimation model. The study also conducts a back test to estimate the relationship between strategic management and bank‘s performance (including financial result, customer satisfaction, employee productivity, growth rate, bank reputation).
The result of the model estimation shows that there are statistical significantly relationships between six hypothesis - factors and strategic management; the six factors have impact on strategic management to different degrees. Bank reputation has strongest positive impact on strategic management. Other factors have positive impacts on strategic management are ranked from the highest to the lowest including macro-environment, bank resources, management style, competitiveness. Meanwhile, the ownership structure has negative impact on strategic management. The back test result reveals that application of strategic management has positive impact on all factors of bank performance including financial result, customer satisfaction, employee productivity, growth rate and bank reputation.
The research concludes with a number of recommendations and highly applicable solutions to help Vietnamese commercial banks in general and BIDV in particular to improve strategic management practices.
12. Practical applicability:
The clarification of the strategic management of BIDV then comparing with the proposed model, the relevant literature and international practices will be the foundation for other commercial banks, especially equitized state-owned commercial banks, to consider applying in their strategic management system. Strategic management model and solutions proposed by the author are highly applicable in practice, especially in the context of globalization and international economic integration, while the equitized state-owned commercial banks are implementing Phase 2 of Restructuring Project which are focusing on strengthening financial capacity, improving capacity of corporate governance and management in accordance with international best practices, striving to have at least one to two commercial banks standing in the top 100 largest banks in Asia.
13. Further research directions:
- The limitation of SEM model using to make estimation in the thesis is that the model only allows to make survey and observation of the data at a fixed time (at the time of data collection) but not in a period. In the fututre, the author will continue to conduct periodic surveys based on the same questionnaires and using “panel data” method to collect time series data in order to further assess the impact of the factors.
- The future studies can be extended to all commercial banks in Vietnam on the basis of applying the theoretical analysis framework of the thesis to clarify the differences in strategic management among equitized state-owned commercial banks and other joint stock commercial banks, or applying to study the strategic management of non-banking financial institutions and commercial banks in Vietnam.
14. Thesis-related publications:
- Tran Long, 2004. Developing a sustainable microfinance sector in Vietnam. Financial & Monetary Market Review, Vol. 6, pp. 21-26.
- Dao Van Hung and Tran Long, 2005. Minimizing negative impacts of the Vietnam-US Trade Agreement on commercial banks in Vietnam. Financial & Monetary Market Review, Vol. 10, pp. 24-29.
- Tran Thi Thanh Tu, Pham Thuy Linh and Tran Long, 2017. Empirical test on impact of customer experience on customer loyalty in the Vietnamese banking industry. Financing For Innovation, Entrepreneurship & Renewable Energy Development International Conference, pp. 319 - 333. VNU University of Economics and Business, September 2017.
- Tran Long, 2017. Assessment of strategic management practices of the Joint Stock Commercial Bank for Investment and Development of Vietnam. Banking Review,Vol. 20, pp. 26-31.
- Tran Long, 2017. Assessment of factors influencing strategic management of commercial banks in Vietnam: An empirical study in the Bank for Investment and Development of Vietnam. VNU Journal of science: Economic and Business, Vol. 33 (4), pp.74-81.
- Dinh Xuan Cuong, Hoang Thi Hien and Tran Long, 2018. Multi-criteria decision-making model evaluating the performance of Vietnamese commercial banks. International Journal of Financial Research, Vol. 9 (1), pp. 132-141.
- Tran Thi Thanh Tu, Pham Chau Lam and Tran Long, 2018. The impact of BOD characteristics on the performance of listed companies in Vietnam stock market. Journal of Economics & Development (Permitted to publish by Editorial board).