Factors of Value Chain Affect Bank Efficiency – an Empirical Study in Vietnam

This paper aims to determine and estimate the factors of the value chain that affect the efficiency of state-owned commercial banks in Vietnam. Based on the value chain theory and Porter's model (1985), the author highlights the role and need to implement the value chain at those banks. Besides, using qualitative and quantitative methods (exploratory factor analysis), four primary activities constitute the value chain and have a statistically significant effect on banks' efficiency, namely the retail department, operation department, back office, and call center. The findings confirm that the value chain creates competitive advantages to a large extent for state-owned commercial banks in Vietnam