Assessing and Measuring Competitiveness of Commercial Banks in Vietnam

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The main goal of this section is to provide a review on literature and related models to the research problem. Generally, there are numerous empirical analyses by international scholars about assessing and measuring competitiveness of commercial banks. However, there is no any study related to this problem in Vietnam. Firstly, the school using Factor Analysis method to measure competitiveness of commercial banks, XIA Bin, PAN Bin, và XIA Hui, (2008) said that the sharp change in the management environment in banking system of China is an important sign to implement researches and analyses objectively and efficiently. Therefore, in their studies, authors used Factor Analysis method to analyze and appraise the competitiveness of commercial banks in China, from which, the weight of each indexes would be defined, simultaneously the competitiveness state of the banks would be manifested by ranking them into different categories. Specially, in this model, besides financial variables to be used to analyze, other factors such as governance structure, business innovation and human resources are also considered. Finally, they combined results of this research with the actual conditions of Chinese commercial banks to provide important strategies for strengthening the competitiveness of their country and simultaneously keeping the persistent development of China’s economy in a healthy and safe way. Similar to Chinese researchers about methodology aspects but different in application
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