Evaluating the Business Performance of the Big4 Banks in Vietnam in the Context of Digital Transformation

Abstract

This article aims to analyze and evaluate the factors affecting the performance of the Big 4 banks in Vietnam based on research results, to propose solutions for improving their performance. The study utilizes data collected from the financial statements of the Big 4 commercial banks in Vietnam for the period 2014-2023. The author has calculated indicators within the research model, including independent variables such as Assets Size, Equity over Assets, Loan over Assets, Credit Risk Provisions, Cost over Assets, Cost over Income, Non-Performing Loans, Gross Domestic Product, and Consumer Price Index, as well as dependent variables measuring performance, namely ROA and ROE. Using panel data regression methods, OLS, FEM, and REM and selecting the appropriate research model, the factors influencing the performance of the Big 4 banks in Vietnam are estimated. The research findings indicate that factors such as Asset Size (SIZE), Cost over Assets (COA), and economic growth positively impact bank performance, whereas Cost over Income (COI) and Non-Performing Loans (NPL) negatively affect bank performance. Based on these results, the article offers policy recommendations for bank managers to enhance the business performance of the Big 4 banks in Vietnam in the near future.