MARKET CONCENTRATION AND COMPETITION IN VIETNAMESE BANKING SECTOR
The wave of financial liberalization raises questions about the competitiveness of Vietnamese commercial banks against those from other countries. The main purpose of this paper is to measure the market concentration using the k banks concentration ratio (CRk) and the Hirschman-Herfindahl index (HHI) and speculate on the market competition in Vietnamese banking sector under Panzar - Rosse approach. Overall, Vietnamese banking sector is found to be highly concentrated although it is experiencing a decreasing trend.Also, the speculation of market competition indicates a monopolistic behavior of Vietnamese commercial banks.