A financial performance and sales strategy Comparison of Wholy Foreign-owned Foreign-owned Banks vs State-owned Banks in Vietnam

Abstract

With the accession to World Trade Organization (WTO) in 2006, Vietnam has officially entered the globalization process. Besides the huge benefits, globalization also brings many challenges. Vietnam's banking system, especially State-owned commercial banks, faced with foreign banks which are not only strong in financial resources, but also has extensive experience in development in different countries. Therefore, the state-owned commercial banks must know their weaknesses to overcome and continue development. The main objective of this study analysis performance of state-owned commercial banks and foreign banks. In addition, the business strategy of the bank is also consideration to support the analysis the performance of the bank. The study is not the first study about the performance of banks in Vietnam and the limits of time and data affect the results, however the authors hope it will contribute to develop banking industry in Vietnam. The study began with theories of market and researches related to performance of banks. Then, CAMEL rating system is used to calculate performance of each bank based on data which was collected by the authors from the financial statements of the banks. Next, comparative analysis was used to evaluate performance of the state-owned commercial banks and foreign banks defense on CAMEL’s 5 factors. The final part of the study, the authors give an overview of the performance as well as sale strategy of banking.