The impact of factors constituting competitiveness of the retail banking service in Vietnam

Abstract

This study aims to clarify the impact of the constituent factors on the competitiveness of retail banking services of Vietnamese commercial banks from the customer's point of view. The hypothesis in this study is that competitiveness of retail banking services is positively related to the following factors: service quality, service fees, distribution channel, promotion activities, and brand. Data were collected through a survey of 370 individual customers who have been using retail banking services in major cities in Vietnam - Hanoi, Da Nang and Ho Chi Minh City. The research results show that the factors which have the most impact on competitiveness of retail banking service in Vietnam are: service fees, promotion activities, distribution channel, service quality and brand.