Gender Diversity and Bank Efficiency in Vietnam: The Role of Market Structure

This study examines how market concentration and gender diversity shape Vietnamese bank efficiency. Using an unbalanced panel of 27 Vietnamese commercial banks over 2006–2023, we first estimate bank efficiency using a stochastic frontier framework and then examine its determinants with dynamic panel models and robustness checks. The results show that market power is positively associated with bank efficiency and that greater gender diversity at the board level is linked to higher bank efficiency. Importantly, the interaction between power and gender diversity is positive and statistically significant, indicating that inclusive leadership strengthens the bank efficiency gains associated with market power. These findings bridge the gender diversity and market-structure literatures and suggest that promoting substantive female representation in bank leadership, especially in more concentrated market segments, can enhance stability-oriented efficiency in emerging banking systems.