Main Article Content
The paper aims to study the impact of technological innovation on the efficiency of Vietnamese commercial banks for the period of 2008-2018. To measure banking efficiency score and the technological innovation index, Data Envelopment Analysis (DEA) is applied on two outputs and three input variables. Then, the research uses the Tobit regression model to examine the impact of technological innovation on the efficiencyof Vietnamese commercial banks. The results reveal that The average technological innovation index of Vietnamese commercial banks is at 0,976 <1, down 2.4% over the whole period. Meanwhile, the average cost efficiency of Vietnamese commercial banks is 78,74%, showing that the Vietnamese commercial banks have not used the maximum input resources. Tobit model results indicate that technology innovation has a positive impact on the cost efficiency of Vietnamese commercial banks. In addition, this study also shows that profitability, economic growth, and interest rates are positively associated with the cost efficiency of Vietnam commercial banks, while state ownership, non-performing loan and inflation are negatively related to the cost effectiveness of Vietnam Commercial Bank.