Evaluating the concentration and the market power of Vietnamese commercial banks

Abstract

Competition has a potential relationship with many factors of bank behavior and is an
important indicator of macroeconomic governance and banking supervision. As a result, the topic of
measuring competition attracts the attention of many scholars. The paper reviewed the approaches of
measuring market power, from which, selected the appropriate methods to measure and evaluate the
market power of Vietnamese commercial banks. The measurement results show that the concentration
and market power of Vietnamese banks are generally low, or in other words, that the competition in
the Vietnamese banking market is quite high. The study also provides implications for further studies
related to competition and market power and significantly contributes to banking management and
supervision.