This paper measures the cost inefficiency of Vietnamese commercial banks from 2011 to 2014. Stochastic frontier analysis (SFA) is used to estimate the cost frontier. The average cost inefficiency of the whole banking system is under intermediation approach. Findings show that state-owned banks and banks with bigger size are more efficient than joint stock or smaller ones. Negative relationships are found between efficiency and deposit-to-loan ratio as well as bank‟s age. Banks should focus on increasing their sizes and other earning assets, monitoring carefully the loan-making process to avoid non-performing loans, and investing in human resource. | Cost inefficiency of commercial banks in Vietnam: Stochastic frontier analysis
