This paper seeks to examine the effects of bank capital on profitability and credit risk of 30 Vietnam’s commercial banks from 2007 to 2014. Using the system generalized method of moments (GMM),
the paper conducts several tests on the moral hazard and regulatory hypotheses on the relationships among bank capital, profitability, and credit risk. With no regard to other determinants, its results indicate that the effects are evident, i.e. bank risk is found to impact differently on bank returns, and it is also negatively associated with credit risk of commercial banks in Vietnam.
This study inspects the relationship between the securities market and real estate market in Vietnam, particularly the case of Ho Chi Minh City from Q1/2009 through Q3/2014. Using a comprehensive survey of expert opinions, we find that several macro factors including GDP, interest rate, inflation, fiscal policy, monetary policy, securities market regulations, international capital flows, and money market have effects on both the securities and real estate markets, which, in turn, do have mutual interactions. Furthermore, it is suggested by the survey results that among the determinants, policy on foreign investment control has the most powerful impact on capital movements between the two markets. The results of TECM analysis of property price index and VN-Index reveal a bidirectional causality between the two markets, which are positively related in the long run
This paper studies the effects of market liquidity and other factors on investment of non-financial companies listed on Vietnam stock exchange for the 2008–2013 period by adopting different measures of investment and liquidity, and considering the impact of interaction between liquidity and others, including issuing, financial constraints, and growth opportunities, on firm investment. The estimated results of DGMM with fixed effects and interacting variables prove that stock market liquidity negatively relates to the investment. We do not find any compelling evidence of the liquidity–investment nexus among firms with tighter financial constraints and better investment opportunities. However, we do find the relations between firm investment and financial leverage and also firm investment and cash flows.
Vietnam coffee sector plays a crucial role not only in the country’s economy but also in the global coffee market, and improving coffee production efficiency may benefit coffee producers. However, small-holder coffee farming households still encounter many difficulties regarding resources and socio-economic conditions affecting coffee production efficiency. This study examines relationships among income diversification, rural credit loan, labor dependence, and technical efficiency in coffee production through a face-to-face survey with participation of 143 coffee farming households conducted in Cu M’gar District, Dak Lak Province, Vietnam. The stochastic frontier model shows that the mean of technical efficiency scores is 0.64, and it also verifies the existence of inefficiency variation. Both Maximum Likelihood Estimate (MLE) and Feasible Generalized Least Square (FGLS) consistently indicate that a higher level of diversity in income sources negatively affects coffee production efficiency. Additionally, independence in labor resource for coffee farming may help farmers increase technical efficiency of coffee production. Credit loan has a positive and statistically significant relationship with technical efficiency of coffee production. These relationships hold especially true for smallholder coffee farms with ethnic minority household heads. The policy options of credit loan access, intensive investment in coffee production rather than diversification of coffee farmers’ income sources, and independent management strategies for labor sources are suggested as an integrated approach to improve technical efficiency in coffee production of smallholder coffee farms.
In Vietnam the number of fishing vessels, especially near the shore, has increased continuously, despite the Government’s target of a reduction. In particular, 80% of the fishing vessels operating in the coastal areas make up only 11% of the exclusive economic zone. Such heavy use of near-shore fish resources could imply overfishing and economic decline. Therefore, the economic performance of the inshore purse seine vessels in an open-access fishery has been investigated based on a 2011 survey of the cost and earnings data of 62 anchovy purse seiners, representing about 46 % of such vessels in Nha Trang, Vietnam. The empirical results show that an average purse seiner is able to cover all the costs and earn a profit margin of 17.41% and that crew members earn their opportunity cost of labor or above. Engine power, number of crew size, and number of fishing days are identified as the main factors affecting fishing effort of the vessel. An application of the Salter diagram indicates that a large number of vessels with high relative standardized effort are the most cost-efficient vessels. The majority of these vessels are found to earn intra-marginal rent despite the open-access characteristics of this fishery.
This study examines cross-functional knowledge sharing at the interface between marketing and accounting departments within business organizations. It develops a coopetition model to examine the effects of contingent variables including cross-functional competition and organizational innovativeness on the coordination–sharing–performance (C–S–P) link. The results obtained from a survey of 178 large firms in Vietnam demonstrate that except formalization all coordination mechanisms including lateral relations, informal networking, and shared visions have positive influences on the knowledge sharing at the interface between marketing and accounting departments. Moreover, competition between these moderates the effects of both lateral relations and informal networking on the extent of knowledge sharing between the marketing and accounting departments (MAKS). Finally, this study finds that organizational innovativeness partially mediates the MAKS–performance link, emphasizing the role of innovation in transforming knowledge to performance.
Based on the study of Kaminsky and Reinhart (1999),
this paper studies and applies early warning systems of currency crises to the case of Vietnam from 1996 to 2014. Its results show that the currency crisis is signaled six times during the observed period. Several principal indicators of the currency crisis in Vietnam include increased import, decreased export, excess real M1 balances, low international reserves and deposit growth, high interest rate and credit growth, high domestic-foreign rate differential, and decreased real output. Hence, the Government and the State Bank of Vietnam should grant appropriate policies not only to control the money supply and interest rate, but also to stimulate the ability of capital mobilization of Vietnam’s banking system and to facilitate export activities in the coming years.
This study aims to address the current state of mechanical supporting industry in Ho Chi Minh City (HCMC) by approaching several factors affecting the industry for further solutions to its development in the coming years. Using both qualitative and quantitative methods, we find that: (i) the HCMC mechanical industry has yet to satisfy the demands for development of other economic industries as a consequence of its simple products and its failure to manufacture machine tools and equipment in automatic production lines; (ii) the industry is mostly composed of small- and medium-sized enterprises (SMEs),
featuring mainly imported inputs, outdated technologies, and poor quality management, thus causing the output products in large part to merely serve domestic consumption and disabling them to engage in the global supply chain; and (iii) some principal reasons comprise limited access to credit, modern technology, market, and information as well as other constraints to production infrastructure and human resources.