The paper examines the effect of concentration on performance in the Vietnamese commercial banks during the period 2005-2012, using the concentration ratio and the Herfindahl-Hirschman index to measure the level of concentration in the banking sector. | Concentration and performance in Vietnamese commercial banks Accounting 6 2020 161 168 Contents lists available at GrowingScience Accounting homepage ac Concentration and performance in Vietnamese commercial banks Hung Cuong Lea and Tien Loc Vob aNam A Bank Ho Chi Minh City Vietnam bThai Son Olympus Company Limited Ho Chi Minh City Vietnam CHRONICLE ABSTRACT Article history The paper examines the effect of concentration on performance in the Vietnamese commercial banks during the Received September 12019 period 2005-2012 using the concentration ratio and the Herfindahl-Hirschman index to measure the level of Received in revised format concentration in the banking sector. We find a clear trend of decreasing concentration of the Vietnamese banking September 3 2019 sector over the analyzed period along with an increase in competition. The results of the competitive analysis based Accepted October 23 2019 on The Panzar-Rosse model show a status of monopoly competition market has formed in the banking sector. With Available online respect to the effects of concentration on banks performance the study finds a negative relationship between the October 23 2019 concentration of the market and operational performance of the commercial banks in the context of monopoly Keywords competition. We conclude that high competition and less concentration stimulate the banking sector to achieve a Vietnamese banking sector more balanced allocation of credits and promoting sustainable economic growth. Concentration ratio Herfindahl-Hirschman index Panzar-Rosse model 2020 by the authors licensee Growing Science Canada 1. Introduction The market power model can be divided into two groups. The first group consists of structural models the second group includes models in the reduced form. Important models in the structural model group include the Monti-Klein model Klein 1971 for monopoly competition and the Salop model Salop 1979 which deals with spatial .
