Changes in the Structure of Capital Utilization and Operational Efficiency of Vietnamese Joint-Stock Commercial Banks

Abstract

Over the past years, the commercial banking system in Vietnam has been under increasing pressure due to the increase in the number of non- performing loans and this has affected the quality of the assets and lost capital. Not only does this reduce the effectiveness of individual banks but it also brings into question the ability of the financial system as well as the general economic growth. Consequently, determining the areas that can make the operations more efficient and yield better assets has been a growing concern. This paper uses a quantitative research method and structural equation model (PLS-SEM) to test it by means of SPSS 27 and AMOS 20. The evaluation is based on mixed data. Secondary data will be obtained through audited financial statements and annual reports that have been gathered in many years, to reflect the operations status of the commercial banks. The primary data were acquired by use of an online survey with a structured questionnaire that was to be conducted between July 2025 and September 2025. The survey produced valid results of 182 managers who work in 28 commercial banks in Vietnam. The above results suggest that strategic goals, ability to manage risks, and management structure of organizations have a positive and significant impact on the efficiency of the commercial banks. The change in the organization of capital use, is a significant intermediary in this relationship. This study concludes that the recommendation is to ensure that commercial banks enhance capacity of risk management and reorganize operating models to be more flexible and efficient. These initiatives are the key to a crucial requirement of enhancing the performance of operations and promoting a sustainable development in the rapidly changing business environment.