economy-2023_01(100)

№ 1 (100) январь, 2023 г. В целом, доход как неоднозначная и сложная общественных отношений, возникающих в процессе налогово-правовая категория включает в себя нало- экономической деятельности хозяйствующих субъ- говые, экономические, социальные и правовые при- ектов, коммерческих организаций с последующим знаки, выраженные через общественные отношения формированием правовых налоговых отношений, и регулируемые посредством нормы права в различ- предопределяющие доход в качестве налогово- ных нормативно–правовых актах. правовой категории по объектам налогообложения с правовыми режимами их налогообложения. Следовательно, сущность дохода как правовая категория определяется правовым регулированием Список литературы : 1. Тургенев Н.И. «Опыт теории налогов» третье издание, Государственное социально-экономическое издательство, Москва,1937 г. 2. Алексеенко М.М. «Взгляд на развитие учения о налоге у экономистов А.Смита, Ж.-Б. Сея, Рикардо, Сисмонди и Д.-С.Милля». Харьков, в Университетской типографии 1870 г. 3. Орлов М.Ф. «О государственном кредите» Москва, 1832 г. 4. Джон Мейнард Кейнс «Общая теория занятости, процента и денег», М., 1936 г. 5. Эдвин Дж.Долан,Колин Д.Кэмпбелл, Розмари Дж.Кэмпбелл «Деньги, банковское дело и денежно-кредитная политика» , Москва-Санкт-Петербург 1993 г. 6. Винницкий Д.В. Российское налоговое право ЛитРес. 2003 г. 7. Ильченко Т.П. Особенности выбора оптимального режима налогообложения для предприятий малого биз- неса. Актуальные направления научных исследований XXI века: теория и практика. М., 2019 г. 8. Налоговая политика Российской Федерации: главные тренды и изменения. Золочевская Е.Ю., Скидан А.В., Микая А.Т. Государственное и муниципальное управление. Ученые записки. 2021г. № 3 9. Проблемы реализации принципов права в предпринимательской деятельности: монография, коллектив авторов. МГУ имени М.В. Ломоносова, РАНХиГС при Президенте РФ. Отв. ред. В.А. Вайпан, М.А. Егорова. – М.: Юстицинформ, 2016. – 340 с 10. Комягин Д.Л. Налоги парламентские и непарламентские: практики взимания обязательных платежей: моно- графия Д.Л. Комягин. — М.: Юстицинформ, 2021. — 164 с. 11. Чепурнова Н.М., Серегин А.В. Теория государства и права: учебное пособие. М.: ЕАОИ, 2007. С. 403. 12. Куликов Е.А. Философские категории в правовой науке и правовые категории: проблемы теории и методо- логии // Юридические исследования, 2017, № 10, с. 59-77 13. Чернядьева Н. А. Общие вопросы применения сравнительного метода в юридической науке /Правопорядок: история, теория, практика. 2021. № 4 (31). С. 23–3. 14. Егоров Д.Г. Стоимость в экономической теории − категория излишняя или необходимая? / Д.Г. Егоров // Общество и экономика. – 2020. – № 6. 15. Алан Девлин. Основные принципы права и экономики. // РАНХиГС при Президенте Российской Федерации, Изд-во Дело, 2019 г., 720 с. 16. Постановление Правительства РФ от 30.06.2004 № 329 (ред. от 29.11.2021) «О Министерстве финансов Рос- сийской Федерации» (с изм. и доп., вступ. в силу с 01.01.2022) /[Электронный ресурс] – URL: https://www.consultant.ru/document/cons_doc_LAW_48609/ (дата обращения 02.12 2022). 17. Положение по бухгалтерскому учету «Доходы организации» ПБУ 9/99 (утв. приказом Минфина РФ от 6 мая 1999 г. № 32н) /[Электронный ресурс] – URL: https://www.consultant.ru/document/cons_doc_LAW_6208/1f46b0f67e50a18030cbc85dd5e34849b2bf2449/ (дата обращения 02.12 2022). 18. Приказ Минфина России от 19.11.2002 № 114н (ред. от 20.11.2018) «Об утверждении П оложения по бухгалтерскому учету «Учет расчетов по налогу на прибыль организаций ПБУ 18/02» (Зарегистрировано в Минюсте России 31.12.2002 № 4090) /[Электронный ресурс] – URL: https://www.consultant.ru/document/cons_doc_LAW_40313/ (дата обращения 02.12 2022). 19. Приказ Минфина РФ от 29 июля 1998 г. № 34н «Об утверждении Положения по ведению бухгалтерского учета и бухгалтерской отчетности в Российской Федерации» /[Электронный ресурс] – URL: https://www.consultant.ru/document/cons_doc_LAW_20081/ (дата обращения 02.12 2022). 20. Постановление Пленума Верховного Суда РФ от 18.11.2004 № 23 (ред. от 07.07.2015) «О судебной практике по делам о незаконном предпринимательстве» /[Электронный ресурс] – URL: https://www.consultant.ru/document/cons_doc_LAW_50363/ (дата обращения 02.12 2022). 50

№ 1 (100) январь, 2023 г. 21. Постановление Пленума Верховного Суда Российской Федерации от 15.11.2016 № 48 (ред. от 11.06.2020) «О практике применения судами законодательства, регламентирующего особенности уголовной ответствен- ности за преступления в сфере предпринимательства и иной экономической деятельности» /[Электронный ресурс] – URL: https://www.consultant.ru/document/cons_doc_LAW_207109/ (дата обращения 02.12 2022). 22. Налоговый кодекс Российской Федерации (часть первая) от 31.07.1998 № 146-ФЗ (ред. от 29.11.2021) / [Электронный ресурс] – URL: https://www.consultant.ru/document/cons_doc_LAW_19671/ (дата обращения 02.12 2022). 23. Гражданский кодекс РФ /[Электронный ресурс] – URL: https://www.consultant.ru/document/cons_doc_LAW_5142/ (дата обращения 02.12 2022). 51

№ 1 (100) январь, 2023 г. PAPERS IN ENGLISH ECONOMIC SCIENCES FINANCE, MONETARY CIRCULATION AND THE CREDITSECTION DOI – 10.32743/UniLaw.2023.100.1.14825 A STATISTICAL ANALYSIS OF PROFITABILITY OF COMMERCIAL BANKS IN VIETNAM Nguyen Thi Thu Hoan Master, Lecturer, Diplomatic Academy of Vietnam, Ministry of Foreign Affairs, Vietnam, Hanoi E-mail: [email protected] СТАТИСТИЧЕСКИЙ АНАЛИЗ РЕНТАБЕЛЬНОСТИ КОММЕРЧЕСКИХ БАНКОВ ВО ВЬЕТНАМЕ Нгуен Тхи Ту Хоан магистр, преподаватель, Дипломатическая академия Вьетнама, Министерство иностранных дел, Вьетнам, г. Ханой E-mail: [email protected] ABSTRACT This quantitative research paper focuses on examining the relationship between macroeconomic factors and the profitability of commercial banks in Vietnam. The data used in the research is collected from financial reports of 9 commercial banks listed on the stock market during the period from 2008 to 2019. This study uses the Panel Data Model, which shows that ROA is affected by macroeconomic factors. АННОТАЦИЯ Данная статья посвящена изучению взаимосвязи между макроэкономическими факторами и рентабельностью коммерческих банков во Вьетнаме. Данные, использованные в исследовании, собраны из финансовых отчетов 9 коммерческих банков, котирующихся на фондовом рынке, за период с 2008 по 2019 год. В статье используется модель панельных данных, которая показывает, что на рентабельность активов влияют макроэкономические факторы. Keywords: Vietnam, empirical model, macroeconomic factors, commercial banks, panel data. Ключевые слова: Вьетнам; эмпирическая модель; макроэкономические факторы; коммерческие банки; панельные данные. ________________________________________________________________________________________________ I. Introduction effective tool for macroeconomic management, which The 2008 financial crisis had caused negative determines the development and recession of an entire consequences for the economy of Vietnam in general, economy. Currency is strictly managed by the State, but and the national commercial banking system in at the same time commercial banks must operate particular. All commercial banks faced many difficulties effectively and profitably as this is a two-way impact. such as decline in profitability, increase of bad debts due Therefore, in order to make sound policies on the to high inflation and rapid economic recession. operation of Vietnam’s commercial banking system in Particularly, listed commercial banks were affected by the coming time, determining the impact level of macro the sudden decline of the stock market. Currency is an factors on the profitability of banks is essential. In order ___________________________ Библиографическое описание: Nguyen T.T. A STATISTICAL ANALYSIS OF PROFITABILITY OF COMMERCIAL BANKS IN VIETNAM // Universum: экономика и юриспруденция : электрон. научн. журн. 2022. 1(100). URL: https://7universum.com/ru/economy/archive/item/14825

№ 1 (100) январь, 2023 г. to examine the importance of improving profitability of credit institution. Most of the risk in currency trading Vietnam’s commercial banks, the author conducts concentrates on assets. It is assumed that there is a empirical research on the impact of macro factors on the positive relationship between the size of banks and profitability of banks listed on the stock market during profitability because by increasing the bank size, costs the period from 2008 to 2019. can be reduced, and thus profitability can be improved (Berger et al. 1987; Smirlock, 1985). II. Theoretical basis According to Nguyen Viet Hung (2008), a bank size 2.1. The groups of indexes to reflect the profitability variable measured by the natural base logarithm of total and performance of banks commonly used are ROA assets is taken as a representative variable for the size of (Return on total assets), ROE (Return on common equity), a commercial bank. Gaganis et al. (2006), Lanine and NIM (Net Interest Margin), and NNIM or NOM Vennet (2006) use a similar measure while Chen and (Net Non-Interest Margin). However, within the scope Shih (2006) use total assets to represent a bank’s size. of this research paper, the author uses the ROA index However, if total assets are taken to represent a bank’s only size, there will be a large disparity between the groups of banks, affecting the regression results. Therefore, the ROA is the ratio of net income to assets, which method of calculating bank size using the logarithmic measures the profitability of a bank per dollar of assets. function of total assets is the most commonly used. ������������������������������������ ������������������������������ ������������������ 2.2.2. Size of equity (Capital-CA) – variable X2 ������������������ = ������������������������������������������ ������������������������������ ������������������������������������ Equity size is considered as a variable to measure the safety and soundness of a bank, assessing the The higher the ROA is, the better it is as the bank solvency of the bank in case of loss, thereby showing its makes more money on less investment. ROA provides ability to absorb unexpected losses (Javaid et.al, 2011). investors with information about the profits generated Banks with high equity will reduce the cost of capital from the amount of assets formed from debt and equity. (Molyneux, 1993) and have a positive effect on bank profitability. Moreover, capital raising can increase 2.2. The group of internal factors affecting the expected profits and reduce expected costs due to the profitability of banks considered in the scope of this financial crisis such as bankruptcy (Berger, 1995) as research includes three factors: bank size (SIZE), cited by Sufian (2011). Gul, Irshad and Zaman (2011), financial structure (CA), and Age of Operation (AGE) Zeitun (2012) and Trujilo- Ponce (2010) find a positive correlation between equity size and the profitability 2.2.1. Bank size (SIZE) – variable X1 of commercial banks. Total asset size is one of the factors affecting the Research by Athanasoglou (2005) based on the data profitability of commercial banks. These are assets of Greek banks in the period from 1985 to 2001 also formed during the operation of commercial banks. shows that equity is an important factor explaining Economic theories suggest that large organizations the bank profit margin. The larger the equity, the higher will be more efficient and able to provide services at the profit margin of a bank. lower prices due to economies of scale, thereby generating greater profits. However, there are also many 2.2.3. Age of Operation (AGE) – variable X3 perspectives that the unreasonable expansion in the scale According to Nguyen Thi Dieu Chi (2018), for of operation of a bank will pose many difficulties for banks in particular and enterprises in general, age is a management and cause managers to make the wrong factor belonging to the specific characteristics of the decisions, thus reducing bank profitability. organization that can affect its performance. When Theoretically, banks with large asset size can customers decide to establish a business transactional achieve high profitability from economies of scale relationship with a bank, reputation is of utmost because there are many favorable conditions in the importance, especially in terms of the bank’s ability to process of expanding products and services distribution, receive a large deposit and make large transactions, as well as saving transaction costs, thereby enhancing which is reflected in the age of the bank. Most of the profits. Economies of scale, or increasing returns to scale, established banks will be relatively large in size due to are revealed when the long-run average cost falls as capital accumulation from retained earnings over a long output increases. period of time and this will give the bank access to According to Phan Thi Hang Nga (2013), the main greater business opportunities as well as a larger base of activity of a bank is evidently shown in a bank’s assets. customers compared to smaller ones. Thereby, bringing The size, structure, and quality of assets will determine about high-value contracts that leads to improved the existence and development of a commercial bank. profitability and operational efficiency of the bank. Assets include earning assets (accounting for 80-90% of Moreover, over many years of operation, banks will total assets) and non-earning assets (accounting for 10- gradually accumulate experience in the management 20% of total assets). When it comes to the growth of and appraisal of investment projects, and at the same total assets, the size of credit and investment activities time obtaining long-term and good relationships with matter. The larger the total assets of a bank, the more customers. This is also a favorable condition to create likely it is to expand the loan scale as the bank is a large and stable profits in the long run, contributing to borrower in order to lend others. The assets’ size of enhancing the banks' operational efficiency. commercial banks is a general indicator that shows the financial sustainability and management capacity of a 53

№ 1 (100) январь, 2023 г. 2.3. The group of external (macro) factors debts and are effective for lending. As a result, capital is affecting the performance and profitability of banks is effectively allocated among sectors and fields; while included in the research paper by the author, involving reducing risks and costs in terms of time, information 2 factors: economic growth (GDP growth rate) and collection and processing. inflation (consumer price index CPI) 2.3.2. Inflation (INF) – variable Z2 2.3.1. Economic growth (GDP) – variable Z1 Inflation measures the overall increase in the According to the textbook “Commercial Banking consumer price index (CPI) for all goods and services. Management” by Tran Huy Hoang (2011), the main Inflation affects the real value of costs and revenues. business areas of a bank are currency, credit and banking In the view of Perry (1992), a high rate of inflation services. These are special areas because they are is associated with a high loan interest rate and income directly related to all industries and aspects of the socio- will therefore also be high. However, it is asserted that economic life. Therefore, fluctuations in the economy the impact of inflation on bank profitability is highly will have a significant effect on a bank’s performance, dependent on the ability to predict expected inflation. If and they are reflected in GDP growth. The impact of inflation is predicted correctly and interest rates are GDP growth on the performance of the banking industry adjusted accordingly, inflation will have a positive is two-way. Banking system plays an important role in impact on bank profitability. In contrast, an unexpected increasing the GDP of the economy, and this increase increase in inflation can make it difficult for customers will in turn improve the operational efficiency of the to forecast cash flows, which can lead to premature banking system. termination of loan agreements and cause credit losses. In economics, GDP is the monetary value of all Indeed, if banks are slow in adjusting their interest rates, goods and services produced within a territory during a it could lead to higher costs than revenues. Hoggarth et given period of time, usually a year. When applied to the al. (1998) even point out that high inflation will make it whole country, it is also known as national gross difficult for banks to plan and negotiate loans. Thus, the domestic product. GDP is one of the basic indicators to findings on the relationship between inflation and bank assess the economic development of a certain territory. profitability are contradictory. GDP indicates the size of the economy, but it is not an Although studies in Hong Kong by Jiang et al. accurate measure of living standards. GDP does not take (2003) and in Malaysia by Guru et al. (2002) have into account the shadow and non-monetary economies shown that high inflation rates lead to higher profits, such as the barter economy, volunteer work, free study by Abreu and Mendes (2002) gives negative childcare by (non-working) parents, or the production of results on the relationship between inflation and goods in the family. Therefore, in countries where profitability of European banks. In addition, Demirguc- informal business practices are a major part of GDP, Kunt and Huizinga (1999) find that banks in developing those figures will be less accurate. GDP does not take countries tend to be less profitable in an inflationary into account the harmonization of development. For environment, especially when they have a high capital example, a country may have a high GDP growth rate ratio. In these countries, the expenses of banks actually due to overexploitation of natural resources. GDP increase more than their revenue. Thus, inflation will includes jobs that have no net benefit and does not have a positive effect if the bank income increases faster consider negative effects. than its costs, otherwise, it will negatively affect the GDP is expected to affect many factors related to bank profitability. the supply and demand of bank deposits and loans. The relationship between inflation and profitability According to the literature on the link between is predicted to be positive according to the following economic growth and financial sector profitability, GDP studies: Molyneux and Thorton (1992), Hassan (2003), growth is expected to have a positive relationship with Kosmidou (2006). bank profitability (Demirguc-Kunt and Huizinga 1999; Towards joint-stock commercial banks, high Bikker and Hu, 2002). inflation adversely affected capital mobilization, lending, The relationship between GDP growth and bank investment and performance of banking services. Banks performance is two-way, high economic growth will will have to raise mobilizing interest rates which increases first lead to the demand for loans, deposits, payments costs and reduces profits. In addition, the implementation and many other services, then the operation of the of strict monetary policy by the State Bank of Vietnam banking system will play a role in increasing GDP. The reduces the amount of money in circulation, while the high and stable GDP growth rate will create an impetus demand for loans is high but the bank can only for business expansion to improve the profitability of accommodate a small number of customers. High inflation commercial banks. An increase in the average income of also causes the use of short-term capital for medium and people will motivate them to spend more, pay more and long-term loans to occur frequently, affecting the bank even save more, thereby helping to expand banking liquidity, leading to forward risk and exchange rate risk. services, mobilize capital, invest and do business to make a profit. For commercial banks, this system helps III. Research methods idle capital flows to form and circulate smoothly in the economy for investment and profit. Moreover, banks are 3.1. Research data essentially business enterprises with the aim of Commercial banks listed on the stock market need maximizing profits, so they will have to choose to follow the rules of information transparency for businesses and projects that have the ability to recover 54

№ 1 (100) январь, 2023 г. shareholders, therefore financial statements must be In which index i refers to individuals, i=1,2,..,n and fully-disclosed quarterly, annual and be assured by t is a time index (years, months, ...), t=1,2,…, T. independent audit firms such as KPMG, Ernst & Young. This is the main database in selecting indicators to assess Components of the model: ������������������ is the normal random the profitability of banks such as ROA, ROE as well as error, which is assumed to satisfy the normative internal factors such as asset size, bank size, bad debt, conditions of the OLS method; ������������ represents credit risk… In order to fully assess the impacts on unobservable characteristics of individuals. Depending banks that are listed on the stock market, the author has on the characteristics of these unobserved factors, selected 9 commercial banks as research samples, different estimation methods are proposed. including 5 banks listed on HOSE (CTG, EIB, MBB, STB, VCB) and 4 banks listed on HNX (ACB, HBB,  If ������������ does not exist or is not significant, then the NVB, SHB) during the period from 2008 to 2019. POLS pooled estimation method will be used. Observations of the same individual are ordered In addition, the group of external factors, mainly chronologically and estimated as a conventional one- macro factors, does impact the profitability of banks as dimensional model. gathered from various reliable sources such as the International Monetary Fund (IMF), World Bank,  If ������������ is not correlated with the independent General Statistics Office of Vietnam (GSO) and State variables X, then the estimation method using the Securities Commission of Vietnam. In order to match random-effects model RE is suitable. the selected research sample in banks, groups of external factors were also collected in the period from 2008 to  Nếu ������������ is correlated with the independent 2019. variables X, then the estimation method using the fixed effects model FE gives the best results. 3.2. Research models The data source is collected from 9 commercial Based on the above theoretical model, the author banks at different time points, all of which have data proposes a research model of the factors affecting the from 2008 to 2019 so this is symmetrical array data. profitability of listed commercial banks as follows: A basic array data model has the following form: The model with the independent variable ROA ������������������ = ������1 + ������2������2������������ + ⋯ + ������������������������������������ + ������������ + ������������������ ������������������������������ = ������ + ������′������������������ + ������′������������������ + ������������ + ������������������ In which index i refers to individuals (banks), i=1,2,..,9 and t is a time index, t=2008, 2009,…, 2019. The group of independent variables X indicates groups of internal factors and Z indicates groups of external factors. Descriptive statistics of variables Table 1. Description of used variables and research hypotheses Variable Factor Description Measure Expectation sign X1 (SIZE) Internal Bank size Log(Asset) + X2 (CA) Internal Financial structure Equity/Total Assets + X3 (AGE) Internal Age of Operation Fiscal year - Years of Establishment + Z1 (GGDP) External GDP Growth rate % + Z2 (INF) External Inflation % - IV. Regression results and discussion 4.1. Statistical results on the current status of commercial banks profitability Table 2. Descriptive statistics of profitability variables of 09 Vietnamese commercial banks in the period 2008-2019 Group of indexes Mean value Standard Deviation Minimum value Maximum value (Mean) (Std. Dev.) (Min) (Max) ROA 1.4 0.85 0.016 4.49 Source: Author’s calculations, using STATA software and data from financial statements of Vietnamese commercial banks in the period 2008-2019 55

№ 1 (100) январь, 2023 г. According to the result of Table 2, the average ROA 4.2. Actual results of the impact of factors on value of 09 commercial banks reached nearly 1.4%/year profitability of Vietnamese commercial banks in the in the period from 2008 to 2019, with a standard period 2008-2019 deviation of 0.85%/year. In which, the highest ROA among commercial banks reached 4.49%/year and the The study evaluates the impact of factors on the lowest ROA was 0.016%/year. This proves that there profitability of commercial banks through a linear was a huge difference between the profitability of regression model with the dependent variable ROA and commercial banks in the period 2008-2019. 05 independent variables including Asset Size (SIZE), Equity Size (CA), Age of Operation (AGE), Economic Growth Rate (GGDP), Inflation broadcast (INF). Table 3. Description of used variables and research hypothesis Factor Variable Financial metrics Mean value Standard Minimum Maximum Deviation value value Asset size X1 (SIZE) Ln (Total Assets) 19.1528 1.0799 16.2048 21.1220 Equity size X2 (CA) Equity/Total Assets 0.0788 0.0323 0.0406 0.2662 Age of X3 (AGE) Fiscal year - Years of 28.7222 13.9885 13.0000 62.0000 Operation establishment Economic Z1 (GGDP) The actual growth rate or economic 6.1809 0.6216 5.2474 7.0800 growth rate growth rate to the economic growth rate of the selected base year Inflation Z2 (INF) Consumer price index CPI 7.7260 6.4441 0.6300 23.1163 Source: Author’s calculation, using STATA software and data from financial statements of Vietnamese commercial banks in the period 2008-2019 4.2.1. Asset Size (SIZE) Through the indicators, it can be seen that, in general, The average size of 9 listed commercial banks commercial banks are active in using borrowed funds to in the period 2008-2019 was 19.15. Among the 9 listed operate. However, there are potential risks of liquidity, commercial banks selected, the bank with the largest a decline in profit ratio and risk of non-recoverable bad scale value reached 21.12 and the bank with the smallest debt since the real capital is too small while the loan scale value was only 16.2. The level of difference in size ratio is too large. between banks is the standard deviation, nearly 1.08. It can be observed that, in general, there is no large 4.2.3. Age of Operation (AGE) difference amongst Vietnamese commercial banks in Vietnam’s commercial banks in the period 2008- terms of scale. 2019 have been operating for an average of nearly 29 years, as of 2019 all banks have been operating for more than 4.2.2. Size of equity (CA) 13 years, and the one with the longest operating history In terms of size, with the equity/total assets ratio of was up to 62 years. Research shows that, with over 9 Vietnamese listed commercial banks in the period 13 years of operation, banks are relatively stable, 2008-2019, the average size of equity in total assets was extremely knowledgeable of its markets and customers. at 7.88%. The bank with the highest proportion of equity Due to the relatively good understanding of the in total assets was 26.62%, the lowest was 4.06%. This psychology and needs of the financial market, banks’ indicator also reflects the ability to mobilize the working ability to mobilize and use capital is also more stable, capital of banks besides the available equity, which means thereby contributing to improving the operational that in 100 dong of working capital of commercial banks, efficiency and profitability of Vietnam’s commercial the highest bank would have 26.62 dong of equity, and banks in general. the lowest bank would have 4.06 dong of equity. 56

№ 1 (100) январь, 2023 г. Figure 1. Average comparison of internal factors: X1-Bank size (SIZE), X2- Financial structure (CA), X3- Age of operation (AGE), from 2008 to 2019 Source: Author’s calculation, using STATA software and data from financial statements of Vietnamese commercial banks in the period 2008-2019 4.2.4. Economic growth rate (GGDP) economy exceeded the average growth rate up to 6.44%. The highest level of slippage was in 2008, up to nearly In the period 2008-2019, the average growth rate of 23.12%, and the lowest level was in 2015, down to Vietnam’s GDP is 6.18%/year, especially during the 0.63%. This shows a certain degree of influence on the income source of the economy in general and commercial period of economic recovery after the 2008 financial banks in particular. To ensure a steady stream of income, crisis. Vietnam’s lowest GDP growth is nearly 5.25%, commercial banks had to increase deposit and lending interest rates during this period so that their income which is higher than many countries in the region and in would compensate for the devaluation of the currency. the world. In 2018, Vietnam’s GDP reached the highest rate in the past 12 years, up to 7.08%. 4.2.5. Inflation (INF) However, along with the decisions of the Government However, the consumer price index during this and the State Bank of Vietnam, the inflation rate decreased period was quite high compared to the average level of and interest rates at commercial banks also stabilized. nearly 7.73%, thus showing that the price slippage of the Source: Author’s calculation, using STATA software and data from financial reports of Vietnamese main commercial banks 2008- 2019 period Figure 2. Groups of external factors: Z1- GGDP growth rate and Z2- INF inflation, from 2008 to 2019 57

№ 1 (100) январь, 2023 г. Table 4. Descriptive Statistics ROA of listed commercial banks from 2008 to 2019 Bank Mean ROA Max Std Min ACB 1,306 0617 0237 2,515 BIDV 1,425 0659 0574 2,159 EXB 1,507 1,320 0.207 4,492 MBB 2,219 0.611 1,112 2,914 NCB 0.497 0.554 0.016 1,452 SHB 1,021 0.565 0.353 1,893 STB 1,482 0.902 0.027 2,455 VCB 1,754 0.521 0.870 2,559 VTB 1,370 0.606 0.465 2,073 Source: Author’s calculation, using STATA software and data from financial statements of Vietnamese commercial banks in the period 2008-2019 Table 5. Descriptive statistics of groups of internal factors: X1-Bank size (SIZE), X2- Financial structure (CA), X3- Age of operation (AGE) Bank Target X1 (SIZE) X2 (CA) X3 (AGE) ACB Mean 19,180 0.064 20,500 Std 0.355 0.009 3,606 BIDV Mean 20,258 0.052 56,500 Std 0606 0008 3606 EXB Mean 18,677 0118 24,500 Std 0.413 0.057 3,606 MBB Mean 18,976 0.090 19,500 Std 0.664 0.012 3,606 NCB Mean 17,360 0.084 18,500 Std 0.663 0.037 3,606 SHB Mean 18,577 0.074 20,500 Std 1,024 0.030 3,606 STB Mean 19,057 0.093 22,500 Std 0.637 0.025 3,606 VCB Mean 20,093 0.070 50,500 Std 0.577 0.014 3,606 VTB Mean 20,196 0.065 25,500 Std 0.607 0.013 3,606 Source: Author’s calculation, using STATA software and data from financial statements of Vietnamese commercial banks in the period 2008-2019 Table 4. Correlation analysis table between variables in the model - TR169 ROA X1 (SIZE) X2 (CA) X3 (AGE) Z1 (GGDP) Z2 (INF) ROA 1 X1 (SIZE) -0.0385 1 X2 (CA) 0.3382 -0.5199 1 X3 (AGE) -0.0195 0.6832 -0.3742 1 Z1 (GGDP) -0.4199 0.3767 -0.3232 0.1813 1 Z2 (INF) 0.4175 -0.3941 0.3183 -0.182 -0.4283 1 Source: Author’s calculation, using STATA software and data from financial statements of Vietnamese commercial banks in the period 2008- 2019 58

№ 1 (100) январь, 2023 г. Correlation analysis of results between variables in 4.3. The results of testing the fit of the regression the model according to Table 4 shows that the Pearson model correlation coefficient within the correlation matrix is low (the highest is 0.68), showing that the possibility of The initial regression model takes the following form: multicollinearity among independent variables in the regression model is relatively low. Therefore, the ������������������������������ = ������ + ������1������������������������������������ + ������2������������������������ + ������3������������������������������ selected variables are suitable to explain the impacts of + ������1������������������������������������ + ������2������������������������������ + ������������ + ������������������ selected variables on the independent ones, which is the profitability of listed commercial banks in Vietnam in The results of Breusch and Pagan test give p- the period from 2008 to 2019. value=0.0003 < ������, so for the given data set, the fixed- effect method FEM or the random-effect method REM should be used. Figure 3. Breusch&Pagan test results for the initial model Source: Author’s calculations, using STATA software and data from financial statements of Vietnamese commercial banks in the period 2008-2019 Figure 3. Breusch&Pagan test results for the initial model Hausman test results are used to test whether the of 0.000, it can be concluded that the random-effects model fits FEM or REM. With a p-value probability level model will fit the given data set. Source: Author’s calculations, using STATA software and data from financial statements of Vietnamese commercial banks in the period 2008-2019 Figure 4. Hausman test results for the initial model 59

№ 1 (100) январь, 2023 г. However, when performing the t-test to see whether significant at the 1% level. In addition, the coefficient of the coefficients are statistically significant, the the GGDP variable produces a negative result, showing coefficients of the variables SIZE, AGE are not that there is a negative relationship between the variable statistically significant while the coefficients of the CA GGDP and ROA, which is an inappropriate point in this variable are only statistically significant at 5%. Only the result. coefficients of GGDP and INF are statistically Source: Author’s calculations, using Stata software and data from the financial statements of Vietnamese commercial banks in the period 2008- 2019 Figure 5. Estimation results in REM original model In the next process, the author performs a nonlinear use the REM regression method for the above model (p- regression model with SIZE, AGE variables as follows: value=0.0397). ������������������������������ = ������ + ������1������������������������������������ + ������’1���������������������������2��������� + ������2������������������������ To ensure that the obtained results are consistent + ������3������������������������������ + ������’3���������������������2��������� + ������1������������������������������������ and statistically significant, the next step is to regress + ������2������������������������������ + ������������ + ������������������ both POLS and REM models to compare and contrast. The results of the Breusch & Pagan and Hausman * With the POLS pooled model: The estimated tests give the following results: with the 1% significance coefficients are all statistically significant at 1% and 5%, level, we can use the POLS pooled regression method to but when testing the model, the unequal variance is at estimate but with the significance level of 5% we can 10% and the multicollinearity is very high. (VIF of SIZE2=1041.35 and VIF of SIZE=1039.16). 60

№ 1 (100) январь, 2023 г. Source: Author’s calculation, using STATA software and data from financial statements of Vietnamese commercial banks in the period 2008-2019 Figure 6. POLS model estimation results Source: Author’s calculation, using STATA software and data from financial statements of Vietnamese commercial banks in the period 2008-2019 Figure 7. Results of defects testing in the POLS model * With REM model: Hausman test results show that the REM model perfectly fits the given data. 61

№ 1 (100) январь, 2023 г. Source: Author’s calculations, using STATA software and data from financial statements of Vietnamese commercial banks in the period 2008-2019 Figure 8. Hausman test results of the following model Therefore, the author has selected the effects model REM as the final model to analyze the relationship between factors and the dependent variable ROA. 4.4. Significance of regression results Source: Author’s calculation, using STATA software and data from financial statements of Vietnamese commercial banks in the period 2008- 2019 Figure 9. Regression table of random effects model REM 62

№ 1 (100) январь, 2023 г. The implemented REM random-effects model is economy was experiencing many fluctuations, crises completely suitable (since the p-value of the Wald test = and economic recessions occurring all over the world. 0.000 < ������ ), the explanatory level of the independent The economic growth with a skyrocketing speed can variables in this model is about 39.88% for all data (R- cast suspicion for customers on the safety of the bank's square overall=0.3988). The level of explanation operations or when the inflation is high, people tend to between banks (R-squared between = 0.4104) and make more loans. To better understand this, it is within each bank (R-squared = 0.4054) over the years is necessary to have a more in-depth analysis, such as 41.04 and 40.54%, respectively. It proves that the used adding more factors affecting ROA or identifying model can explain the relatively high rate of changes in activities which bring most profits to the banks. the ROA dependent variables of 9 commercial banks in the period from 2008 to 2019. 5.2. Policy recommendations According to the aforementioned research results, it V. Conclusion and recommendations can be seen that first of all, to gain an increase in profitability of commercial banks, the banks themselves 5.1. Conclusion should pay attention to the 5 statistically significant The estimated results of the panel data regression factors that have been tested through the model. This model show that the relationship between groups of means that there must be measures to improve the above internal and external factors do affect the profitability of factors in turn or synchronously. Firstly, this can only be commercial banks. As follows: effectively implemented by the banks themselves, and The coefficients in the model are statistically secondly there is a necessity for the Government and the significant at the 1% level and 5% level (specifically, State Bank to adjust banking policies accordingly. SIZE, SIZE2, CA, INF at the 1% significance level and Through the study of outcomes and the development AGE, AGE2, GDP at the 5% one). The relationship of orientation of commercial banks in the coming time, the independent variables with the dependent ones is the author proposes the following solutions to increase also consistent with the given expectations. the profitability of Vietnam’s commercial banks: * In terms of the variable SIZE (The Bank Size): The slope of the variable SIZE2 of the quadratic form is 5.2.1.Macro policy given less than 0, so it shows that the larger the size of Commercial banks’ profitability depends greatly on the bank's assets, the more likely the ROA gradually the health of the economy and the Government’s increases to the top, but if the SIZE is too large, the ROA economic and banking policies. Therefore, the tends to decrease. This is completely consistent with Government needs to take appropriate measures to theory and reality of large banks with cumbersome promote sustainable economic development and create administrative and management apparatus. As a result, favourable conditions and policies for commercial it is difficult for these banks to control the quality of banks to develop. In addition, it is necessary to have loans, leading to bad debt or outstanding debt. solutions to consider and forecast inflation more * In terms of the variable CA (The Financial accurately to help banks to quickly adjust to fluctuations Structure): The positive CA estimated coefficient of the macro-environment. shows that equity size has a positive correlation with ROA, which means that the large equity will ensure the 5.2.2. Improving the bank’s asset quality risk provision basis for large banks. Customers will have In the context of current international economic more confidence in those banks when depositing money integration, the quality of bank's assets is not only as well as making big loans. influenced by the nature of the assets that banks are * In terms of the AGE variable (The Operation holding and the correlation between the structure of Time): The form of the function used is also quadratic, assets and liabilities, but also by external factors such as but the result of the coefficient of the AGE2 variable is political stability, changes in foreign policies and laws, positive, so the relationship of AGE with ROA is shown and fluctuations of national currencies. The increase in to be opposite to SIZE. With the increased operation the bank’s asset quality means that it is necessary to time, ROA will bottom out and then rise again. This consider its quality, instead of just expanding and being shows that newly established banks often do not have dispersed in quantity compared to the previous one. much experience in operation so customers do not have enough trust. As a result, their profits are often at a lower 5.2.3. Improving the quality and capacity of bank level. But over a longer period, when customers have management sufficient time to experience a bank’s services and verify its safety, the number of customers can increase. The One factor that determines the bank’s safety and its bank's operations will be better, avoiding risks and business performance is the capacity and quality of leading to better business performance. management. It is necessary for a bank’s management to * In terms of external factors that are groups of devise concrete policies and action plan/agenda in order macro factors, the results are shown completely under to increase coordination amongst officers and expected. The variable GDP (growth rate) has a negative employees from all departments to the board of directors, correlation while the variable INF (inflation) has a to achieve business goals in each defined period with the positive correlation with ROA. This can be due to the least resources spent, specifically: (i) Proposing relevant economic context of the period 2008 - 2019 when the and effective business policies; (ii) Developing management procedures, operating business processes that are reasonable, realistic and lawful; (iii) Establishing an organizational structure that operates 63

№ 1 (100) январь, 2023 г. effectively; (iv) Reducing ethical risks in the there are other factors that can affect profitability of management system. Vietnam’s commercial banks which are not covered in the proposed research model of this paper. 5.2.4.Enhancing the bank solvency To ensure solvency, a bank must maintain a certain Specifically, the model does not clarify the impact percentage of its assets in the form of liquid assets, of policy factors on the performance of commercial especially highly liquid assets such as cash, depositing banks. The reason is that the monetary policies of the cash in the central bank and other liquidity reserve State Bank of Vietnam changed greatly throughout the instruments. In addition, banks must also focus on the years, so it is difficult for the author to choose the raising asset quality, building a reasonable portfolio of appropriate variables to include in the model. In order to assets, being able to convert into cash quickly and evaluate such policy factors, it is necessary to observe a recover debts on time to meet payment deadlines and shorter timeframe to be able to accurately reflect policy fulfill its obligations. changes in each period. In addition, due to data limitations, some non-financial factors such as brand 5.2.5. Increasing charter capital strength or operating network, etc... have not been This is the most important factor to ensure the analysed specifically in this study. minimum capital adequacy ratio as prescribed by the State Bank of Vietnam and also prudent banking during In the research model, only ROA is used to measure credit operations. The increased capital will allow the the banks’ profitability, while on the theoretical basis, bank to invest in technology development, train human we can see that in order to measure profitability, there resources and expand its distribution channels. These are many criteria as well as different methods, and each are also indispensable factors that support Vietnam’s indicator also only demonstrates banks’ performance in commercial banks to improve their competitiveness. a certain aspect. 5.2.6. Continuing to transform to the customer- Data sources of Vietnamese commercial banks are oriented model limited, many small banks do not fully disclose information which causes difficulties in accessing In the context of an increasingly open economy, accurate sources, so the research only collects data from competition between banks in Vietnam is becoming 09 Vietnamese commercial banks, observing changes more fierce, so commercial banks must be more between 2008 and 2019. However, this sample is customer-centric. Unlike in the past, customers now representative because it gathers many banks of have access to information and different types of different sizes, accounting for a large proportion of the services, thereby helping customers to have better total assets of Vietnam’s commercial banks. perception of service quality and make informed decisions. Therefore, it is vital for commercial banks to From the above limitations, the next research can strongly promote the application of information include a larger number of research samples and the technology in its operation, products and customer study period can be extended. Moreover, the dependent services. Such application will in turn attract customers. variables in the model only use the ROA variable, it can It is imperative for banks to always try its best to be replaced with other variables such as ROE, NIM, or maintain and improve service/product’s quality. NNIM. This research has not considered the influence Implementing customer-centric service style will also in of non-financial factors such as brand strength, the long run help banks to increase brand value. operating network, etc. as well as a group of policy factors on the profitability of commercial banks. Further expanding a network of branches is another Therefore, further studies can also include these solution to help banks reach a larger customer base. independent variables. Besides, branch expansion will also improve quality of service to existing customers. The cause of the above limitations is mainly due to the limited time as well as the limited capacity of the 5.3. Limitations, shortcomings and directions for author in quantitative research. Therefore, in the next further research research paper, the author wishes to provide a general assessment of the profitability of the Vietnam’s banking The results of testing the relationship among system as well as to build a research model with a better variables in the theoretical model show that the test method to identify more factors affecting the bank's influence of the aforementioned factors on the profitability. In the future, it is the intention of the author profitability of Vietnam’s commercial banks is to provide suggestions and recommendations for banks completely different. The author acknowledges that to improve their profitability. References: 1. Abrue, M. and Mendes, V., 2002. Commercial bank interest margins and profitability: Evidence from EU countries. University of Porto Working Paper Series, No: 122. 2. Allen, F. and D. Gale, 1995. A welfare comparison of intermediaries and financial markets in Germany and the US. European Economic Review, 39:179- 209. 3. 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№ 1 (100) январь, 2023 г. 4. Bourke, P.,1989. Concentration and Other Determinants of Banks Profitability on Europe, North America and Australia. Journal of Banking and Finance, 13:65-79. 5. Brock, Philip and Liliana Rojas-Suareza, 2000. Interest Rate Spreads in Latin America. In Why So High? Understanding Interest Rate Spreads in Latin America. Edited by Philip Brock and Liliana Rojas-Suarez. Washington, D.C.: Inter-American Development Bank. 6. Daft, R., L., 2008. Management. 8th Ed. Mason: Thomson South-Western. 7. Demirguc-Kunt, A., & Huizinga, H., 1999. Determinants of Commercial Bank Interest Margins and Profitability Some International Evidence. World Bank Economic Review, 13:379-408. 8. Dietrich, A. and Wanzenried, G., 2009. What determines the profitability of commercial banks? New evidence From Switzerland. Paper presented at the 12th Conference of the Swiss Society for Financial Market Researches, Geneva, Discussion Paper. 9. General Statistics Office, from 2009 to 2014. Statistical Yearbook. 10. IMF, from 2008 to 2019. 11. KPMG . Co., Ltd, 2013. Survey on Vietnam's banking industry in 2013. <http://www.kpmg.com/VN/en/IssuesAndInsights/ArticlesPublications/Documents/Advisory/Vietnam%20Banking %20Survey%202013%20%20VN.pdf>. 12. Ongore, V.O., Kusa, G.B., 2013. Determinants of Financial Performance of Commercial Banks in Kenya, International Journal of Economics and Financial Issues, 1:237-252. 13. Pasiouras, F. and Kosmidou, K., 2007. Factors influencing the profitability of domestic and foreign commercial banks in the European Union. International Business and Finance, 21: 222-237. 14. National Assembly, 2010. Article number 47/2010/QH12 on 16/6/2010. 15. National Financial Supervisory Commission, from 2009 to 2015. 16. Short, B.K., 1979. The relation between commercial bank profit rates and banking concentration in Canada, Western Europe and Japan. Journal of Banking and Finance, 3:209-219. 17. Trujilo-Ponce, A., 2013. What determines the profitability of banks? Evidence from Spain. Accounting and Finance, 53:561-586. 18. Vietnam’s State Bank, from 2008 to 2019. 19. Vietnam’s commercial banks, from 2009 to 2019. Annual reports. 20. Vietnam’s State Bank 2010. Circulation 36/2014/TT-NHNN dated on 20/11/2014. The circulation stipulates safety limits and ratios in operations of credit institutions and foreign bank branches. 65

№ 1 (100) январь, 2023 г. LEGAL SCIENCES CIVIL LAW; THE ENTERPRISE RIGHT; A FAMILY LAW; THE INTERNATIONAL PRIVATE LAW DOI – 10.32743/UniLaw.2023.100.1.14830 ENSURING THE RIGHTS OF JUDGMENT DEBTORS WHEN COLLECTING CIVIL JUDGMENT ENFORCEMENT FEES AS REQUIRED FROM THE PRACTICE APPLIED TO VIETNAMESE COMMERCIAL BANKS Ngo Quang Vinh PhD student at Faculty of Law of University of Economics and Law, Vietnam National University, Vietnam, Ho Chi Minh City, E-mail: [email protected] ОБЕСПЕЧЕНИЕ ПРАВ ДОЛЖНИКОВ ПО СУДЕБНЫМ РЕШЕНИЯМ ПРИ ВЗЫСКАНИИ СБОРОВ ЗА ИСПОЛНЕНИЕ ГРАЖДАНСКИХ СУДЕБНЫХ РЕШЕНИЙ В СООТВЕТСТВИИ С ТРЕБОВАНИЯМИ ПРАКТИКИ, ПРИМЕНЯЕМОЙ К ВЬЕТНАМСКИМ КОММЕРЧЕСКИМ БАНКАМ Нго Куанг Винь аспирант юридического факультета Университета экономики и права Вьетнамского национального университета, Вьетнам, г. Хошимин ABSTRACT When the litigants request judgment enforcement, the judgment enforcement agency will issue the judgment enforcement decision upon request and the judgment enforcement process will begin to be carried out in accordance with the order and provisions of law until the execution of the court's judgments and decisions is completed, the competent agency or the litigants requests to suspend the judgment enforcement process. Thus, it is easy to see that this judgment enforcement process is carried out first of all for the interest of the litigants who have requested judgment enforcement. Therefore, when their request is partially or fully implemented, the litigants are obliged to pay the required judgment enforcement fee. Within the scope of the article, the author analyzes the current provisions of Vietnam's civil judgment enforcement law on collecting civil judgment enforcement fees for the form of judgment enforcement at the request of the litigants, specifically when the Judgment Creditor is a commercial bank, from which the author will point out the shortcomings of the current legal regulations on collecting civil judgment enforcement fees on request and make recommendations to improve the law on this issue in the near future. АННОТАЦИЯ Когда стороны запрашивают исполнение судебного решения, орган по исполнению судебного решения вы- дает решение о приведении судебного решения в исполнение, и процесс приведения судебного решения в испол- нение начнет осуществляться в соответствии с порядком и положениями закона. Пока исполнение судебных решений не будет завершено, компетентный орган или стороны могут просить приостановить процесс приведе- ния решения в исполнение. Таким образом, легко заметить, что этот процесс приведения в исполнение судебного решения осуществляется, в первую очередь, в интересах тех сторон, которые обратились с просьбой о приведе- нии судебного решения в исполнение. Следовательно, когда их просьба частично или полностью удовлетворена, стороны обязаны оплатить требуемый сбор за исполнение судебного решения. В рамках статьи автор анализи- рует действующие положения закона Вьетнама об исполнении гражданских судебных решений о взыскании сбо- ров, а именно, исполнения судебного решения по просьбе сторон судебного процесса, когда кредитором по решению суда является коммерческий банк. Автор статьи указывает на недостатки действующих правовых норм о взыскании сборов за исполнение гражданских судебных решений, и дает рекомендации по совершенствованию законодательства по этому вопросу. ___________________________ Библиографическое описание: Ngo Q.V. ENSURING THE RIGHTS OF JUDGMENT DEBTORS WHEN COLLECTING CIVIL JUDGMENT ENFORCEMENT FEES AS REQUIRED FROM THE PRACTICE APPLIED TO VIETNAMESE COMMERCIAL BANKS // Universum: экономика и юриспруденция : электрон. научн. журн. 2022. 1(100). URL: https://7universum.com/ru/economy/archive/item/14830

№ 1 (100) январь, 2023 г. Keywords: civil judgment enforcement fee, civil judgment enforcement fee upon request, Vietnam's civil judgment enforcement law. Ключевые слова: сбор за приведение в исполнение гражданского решения; сбор за приведение в исполнение гражданского решения по запросу; закон Вьетнама о приведении в исполнение гражданского решения. ________________________________________________________________________________________________ 1. Overview of civil judgment enforcement fees: enjoying the rights and interests in the judgment or decision to be executed. In the above-mentioned concept, On the basis of the provisions of the current a subject is mentioned that is the Judgment Creditor and Vietnam’s Civil Judgment Enforcement Law, it also according to the provisions of the civil judgment stipulates that the Judgment Creditor in civil or enforcement law, in this case, it is defined as an individual, commercial business cases when performing his/her agency or organization enjoying rights and interests in judgment enforcement request for a legally effective judgments and decisions subject to judgment enforcement. judgment or decision to a competent civil judgment enforcement agency, he/she must pay judgment 1.2. Meaning of collection of civil judgment enforcement fee the civil judgment enforcement agency enforcement fees: has fulfilled part or all of its request. The regulation on payment of civil judgment enforcement fees in Vietnam In essence, the judgment enforcement fee is just an has only stopped at the level of collection to partially amount of money to offset a part of the investment and offset the State budget in the process of civil judgment management costs of the organizations and individuals enforcement of the people. This means that most of the that have been provided to the beneficiaries, that is, the cost of civil judgment enforcement in Vietnam up to the judgment enforcement fee is the amount that a judgment present time is still being paid attention and supported enforcer must pay when receiving material benefits from by the State budget. the operation of a civil judgment enforcement agency. The fee collection is direct reimbursement, so only when In the member countries of the European Union, the the Judgment Creditor receives material benefits that collection of civil judgment enforcement fees on request must be quantified in money, he/she must pay the fee, so is built on the principle of protecting the interests of the the collection of judgment enforcement fees is important litigants, avoiding arbitrariness in the process of both from a legal and financial point of view [5, p. 344]. requesting judgment enforcement and ensure the The on-demand civil judgment enforcement fee not only fairness and stability of remuneration for judgment makes the litigants more aware and responsible in enforcement activities performed by judicial officers at judgment enforcement, but also forces them to consider the request of involved parties [2, p. 44]. carefully before deciding to request judgment enforcement. From there, the civil judgment enforcement agency can 1.1. Concept of collection of civil judgment significantly reduce the amount of work that would have enforcement fees: to be done without collecting the judgment enforcement fee for the judgment enforcement agency. At the same The civil judgment enforcement process is carried time, civil judgment enforcement fees contribute to the out at the request of the litigants when they want their state budget. For EU member states, the collection of civil rights restored. In order to carry out this process, the judgment enforcement fees has two important meanings: civil judgment enforcement agency must organize the judgment enforcement and use the State budget to fulfill Firstly, to avoid arbitrariness and to ensure the the litigants' requests. Therefore, the current civil protection of the interests of the parties: both the party judgment enforcement law stipulates that the litigants who has to pay in advance fees, costs and disbursements who have written requests for judgment enforcement (claimant) and the party who is ordered to pay and bear must pay a certain amount of money to offset the budget the costs of enforcement (debtor). used for the judgment enforcement process after the litigants requesting judgment enforcement receive the Secondly, it ensures equity and stability in the restored benefits from the judgment enforcement. This remuneration for the (enforcement) actions as performed amount is called the civil judgment enforcement fee. by the judicial officer. This is considered an essential According to the provisions of the Law on Fees and condition to safeguard the dignity and impartiality of the Charges 2015: “A fee is an amount of money that an judicial officer. The payment of the fixed fees must organization or individual must pay in order to basically provide the self-employed judicial officer with sufficient offset costs and serve as a service when assigned by state financial means to cover all their needs, the more since agencies, public non-business units and organizations to any other activities are prohibited. Thus, remuneration provide public services specified in the list of fees must ensure the independence and impartiality of the promulgated together with this law” [4]. judicial officer [2, p. 44]. Thus, judgment enforcement fee is an amount that 2. Fee collectors and rate of civil judgment the Judgment Creditor must pay into the State budget enforcement fees when he or she receives money or property under a judgment or decision of a court or a competent agency. In principle, both the Judgment Creditor and the It can be seen that the person responsible for paying the Judgment Debtor have the right to make a petition for civil judgment enforcement fee is the Judgment judgment enforcement, but regardless of which subject, Creditor, that is, the individual, agency or organization the judgment enforcement agency still for the sake of the 67

№ 1 (100) январь, 2023 г. debtor's legitimate rights and interests of the Judgment Money or property value at the request of judgment Creditor. Therefore, the collection of judgment enforcement must not exceed twice the base salary for enforcement fees is determined first of all on the cadres, civil servants, public employees and armed principle that the Judgment Creditors have written forces prescribed by the State. requests, they must pay judgment enforcement fees for judgment enforcement amounts whose quota cost is Loan recovery for the social policy bank in case the calculated on the value of the property or the amount bank lends to the poor and other policy beneficiaries. actually received by them. In case the judgment creditor makes a written request for judgment enforcement but Court judgments and decisions determining that has not yet received the property, he/she is not required there is no quota cost and no legal fees with quota cost to pay the required judgment enforcement fee. However, are collected. if the Judgment Creditor does not make a written request, but he/she is entitled to receive money and/or Money and property shall be returned to the litigants property, he/she will still have to bear the judgment in case of proactive enforcement. enforcement fee at the prescribed rate. Money and property that litigants voluntarily 2.1. Collectors of civil judgment enforcement fees execute within the voluntary judgment enforcement period (the time limit for voluntary judgment According to the provisions of Clause 7, Article 3, enforcement is 10 days from the date the judgment the Civil Judgment Enforcement Law of 2008 amended debtor receives the judgment enforcement decision or is and supplemented in 2014 and Article 2, Circular No. notified valid judgment enforcement decisions) [3]. 216/2016/TT-BTC dated November 10, 2016 of the Ministry of Finance, stipulating the collection rate, 2.2. Charges for civil judgment enforcement mode of collection, payment, management and use of upon request civil judgment enforcement fees, the subject to pay civil judgment enforcement fees is the Judgment Creditor Stemming from the purpose to ensure the legitimate upon receipt of money and property according to the rights and interests of the judgment debtor, the civil court's judgment or decision; decisions on handling of judgment enforcement will restore the legitimate rights the competition case of the Council dealing with the and interests that the judgment debtor has infringed competition case; judgments and decisions of upon. Therefore, in principle, the basis for calculating commercial arbitration. In which, the judgment creditor the amount of judgment enforcement fees that will be is an individual, agency or organization enjoying the collected is based on the value of the property or the rights and interests in the judgment or decision to be amount actually received by the judgment creditor. enforced. In the EU member states, civil judgment According to the provisions of Article 4, Circular No. enforcement fee collectors include the party requesting 216/2016/TT-BTC dated November 10, 2016 of the judgment enforcement and the party requested for Ministry of Finance stipulating the collection rate, mode judgment enforcement [2, p. 44]. of collection, payment, management and use of civil judgment enforcement fees, the specific civil judgment Although the judgment debtor, upon receiving the enforcement fees are as follows: judgment enforcement property, must pay the judgment enforcement fee, there are some cases where the actual 1. Judgment creditors must pay civil judgment amount received by the Judgment Creditor is not large enforcement fees as follows: but is essential for their minimum subsistence such as labor wages, job loss allowance, compensation for loss a) If the amount and value of property actually of life and health, etc., so Vietnam's civil judgment received from more than twice the base salary for cadres, enforcement law has also provided for cases where the civil servants, public employees and armed forces judgment creditor is not pay judgment enforcement fees prescribed by the State up to 5,000,000,000 VND, the on request [1]. Judgment creditors are not required to judgment enforcement fee civil is 3% of the amount, bear civil judgment enforcement fees when receiving value of property actually received; money and property in the following cases: b) If the amount and value of property actually Alimony; compensation for loss of life, health, received is from over 5,000,000,000 VND to honor and dignity; wages, labor wages; job loss 7,000,000,000 VND, the civil judgment enforcement fee allowance, severance allowance; social insurance will be 150,000,000 VND plus 2% of the amount and payments; compensation for damage caused by the value of property actually received in excess of dismissal or termination of labor contracts. 5,000,000,000 VND; Funds for the implementation of the State's social c) If the amount and value of property actually policy programs on hunger eradication and poverty received is from over 7,000,000,000 VND to reduction, support for remote and disadvantaged areas, 10,000,000,000 VND, the civil judgment enforcement and special difficulties, funds directly serving the fee will be 190,000,000 VND plus 1% of the amount and people's health care and education, not for business the value of property actually received in excess of purposes, that the judgment creditors receive. 7,000,000,000 VND; The received artifact has only spiritual meaning, d) For the amount and value of property actually associated with the recipient's identity, and cannot be received from over 10,000,000,000 VND to exchanged. 15,000,000,000 VND, the civil judgment enforcement fee will be 220,000,000 VND plus 0.5% of the amount and the value of property actually received in excess of 10,000,000,000 VND; 68

№ 1 (100) январь, 2023 г. đ) If the amount and value of property actually violation on behalf of the enforcement agent. Advance received is from over 15,000,000,000 VND, the civil payment of fees by the creditor has been subject to judgment enforcement fee will be 245,000,000 plus professional debate in Bulgarian jurisprudence for the 0.01% of the amount and the value of property actually reason that it would increase the creditor’s discretion received in excess of 15,000,000,000 VND. with regard to whether and to what extent enforcement action shall be taken” [2, p. 48]. 3. For cases where many people are entitled to receive a specific property or the same sum of money The collection of civil judgment enforcement fees according to a judgment or decision, but only one or a in Vietnam shall comply with the provisions of number of people have a judgment enforcement request Clause 4, Article 5, Circular No. 216/2016/TT-BTC that the enforcer has organized to hand over such dated November 10, 2016 of the Ministry of Finance property or sum of money to the requester or the regulating the rate of collection, the mode of collection, requester's representative for management, such payment, management and use of civil judgment requester or representative must pay a civil judgment enforcement fees. As follows: enforcement fee calculated on the entire value of money or property actually received at the rate specified in a) In case the civil judgment enforcement agencies Clause 1 of this Article. pay in cash, transfer or send by post to the judgment creditors, the deduction of the civil judgment 4. For cases where a civil judgment enforcement enforcement fee amount paid by the judgment creditors agency has issued a judgment enforcement decision but shall be made before paying them. has not yet issued a coercive judgment enforcement decision or has issued a coercive judgment enforcement b) In case the Court does not declare the value of the decision but has not yet carried out the enforcement of property or declares it but at the time of fee collection it judgment enforcement but the litigants have personally is no longer appropriate (changes by more than 20%) handed over or received money or property to each compared with the market price, the the fee-collecting other, the judgment creditor must pay one-third of the organization will value the property to determine the civil judgment enforcement fee specified in Clause 1 of civil judgment enforcement fee payable by the judgment this Article calculated on the actual received money and creditor. Valuation expenses shall be paid by civil property, except for accordance with the provisions of judgment enforcement agencies from the source of Clause 8, Article 6 of this Circular. retained civil judgment enforcement fees. At least 15 days before the property is handed over, the fee- 5. In case the civil judgment enforcement agency collecting organization shall notify the amount of civil has collected money or has carried out the enforcement judgment enforcement fee that the judgment creditor of judgment enforcement, the judgment creditor must must pay according to the provisions of this Circular… pay 100% of the civil judgment enforcement fee as prescribed in Clause 1 of this Article calculated on the 3.2. Problems and recommendations for improvement amount of money and property actually received. of the law on collection of civil judgment enforcement 3. Practice on collection of civil judgment fees as required enforcement fees on request According to the provisions of Clause 4, Article 46 3.1. Regulations on fee collection procedures of Decree No. 62/2015/ND-CP dated July 18, 2015 of the Government of the Socialist Republic of Vietnam Judgment enforcement fee-collecting agency is a detailing and guiding the implementation of a number of judgment-executing agency where the enforcement of a articles of the law on civil judgment enforcement, which judgment or decision of a court or a competent agency stipulates that civil judgment enforcement agencies shall is organized. The person who issues the decision to collect judgment enforcement fees when paying money collect judgment enforcement fees is the Head of the or handing over assets to judgment debtors and issuing judgment enforcement agency when paying money or receipts for collection of judgment enforcement fees. In property to the judgment creditor. For the fee to be case the judgment creditor fails to pay the judgment collected many times, each time the fee is collected, the enforcement fee, the fee-collecting agency may apply Head of the judgment enforcement agency shall issue a security measures or coercive measures to collect the decision on collection of the judgment enforcement fee. judgment enforcement fee, including the auction of When collecting fees, fee-collecting agencies must property already assigned to the judgment creditors to make and issue receipts to charge payers in accordance ensure recovery of judgment enforcement fees. with current law. The time when the judgment creditor Expenses for property valuation and auction to collect must pay the fee is when the money or property for fees shall be borne by the judgment creditors. enforcement is received, not when the petition is filed. In the EU member states and in particular in Bulgaria, Besides, in order to concretize regulations on the fee collection procedure is regulated to make collection of civil judgment enforcement fees in Decree advance payments for each enforcement action to be No. 62/2015/ND-CP dated July 18, 2015 above, at Point taken. The Bulgarian Supreme Court held that: “The a, Clause 4, Article 5 of Circular No. 216/2016/TT-BTC Bulgarian Supreme Court was of the opinion that failure dated November 10, 2016 of the Ministry of Finance to pay the advance fees does not procedurally undermine stipulating the rate of collection, the mode of collection, the respective enforcement action, but systematic non- payment, management and use of civil judgment collection of advance fees is considered a disciplinary enforcement fees as prescribed: “Judgment enforcement agencies execute deducting the amount of civil 69

№ 1 (100) январь, 2023 г. judgment enforcement fees payable by the judgment enforcement agency deducts the judgment enforcement creditors before paying them”. This regulation, in the fee as required and transfers it to the judgment creditor author's opinion, is in conflict with Clause 4, Article 46 being an agency or organization, there will be cases of Decree No. 62/2015/ND-CP dated July 18, 2015 of where the judgment debtor does not account from the Government detailing and guiding the his/her account the payable expenses of his/her agency implementation of a number of articles of the civil or organization in order to reduce the payable amount of judgment enforcement law because in the spirit of the the judgment creditor corresponding to the deducted Decree, the collection of fees is done independently and judgment enforcement fee, the amount of judgment can be done before or after the judgment enforcement enforcement fee at the request of the judgment creditor agency pays money or property to the judgment creditors. which is borne by the judgment debtor on behalf of the judgment creditor will affect the rights and interests of In case the judgment enforcement fee is collected the judgment debtor. after the judgment creditor receives the money or property for judgment enforcement: If the judgment Thus, according to the author, it is necessary to creditor, after receiving the money or property, fails to amend the regulations on collection of judgment pay the judgment enforcement fee as prescribed, the enforcement fees as required at Point a, Clause 4, Article judgment enforcement fee-collecting agency has the 5 of Circular No. 216/2016/TT-BTC dated November right to apply security measures or coercive measures to 10, 2016 of the Ministry of Finance in the direction of: collect judgment enforcement fees, including auctioning property already delivered to judgment creditors to a. In case the civil judgment enforcement agency ensure recovery of judgment enforcement fees. pays in cash, by transfer or by post to the judgment creditor, it shall deduct the amount of civil judgment In case the judgment enforcement agency collects enforcement fee payable by the judgment creditor before the judgment enforcement fee upon request before the paying them if the judgment creditor is an individual. judgment creditor receives money or property according to the judgment or decision of a court or a competent b. For cases where the judgment enforcer is an agency, the fee collection procedure is as follows: The agency or organization, the judgment enforcement judgment enforcement agency shall deduct the required agency shall send a notice of payment of judgment judgment enforcement fee before transferring the enforcement fee upon request to such agency or amount of money for property handling or the money organization before paying the money for judgment paid by the judgment debtor to perform the obligation enforcement to them and request the judgment creditor under the judgment and hand it over to the judgment to pay the judgment enforcement fee within a certain creditor. The remaining amount after deduction of the time limit. Judgment enforcement agencies shall transfer required judgment enforcement fee will be transferred to the collected enforcement money to the judgment the judgment creditor, so the actual transfer amount creditor as soon as the time limit expires for requesting received by the judgment creditor will be lower than the the judgment creditor to fulfill the obligation to pay the amount that the judgment debtor has paid to the judgment judgment enforcement fee as requested. In cases where enforcement agency to enforce the judgment or decision the time limit has passed and these agencies or of a court or a competent agency. After the judgment organizations fail to pay the judgment enforcement fees creditor receives money and property from the judgment as prescribed, the judgment enforcement agencies may enforcement agency, the judgment creditor being an apply security measures or coercive measures to collect agency or organization must perform the accounting the judgment enforcement fees, including auctioning off for at least 02 stages to ensure enough money transferred assets already delivered to judgment creditors to ensure by the judgment enforcement agency, which are: recovery of judgment enforcement fees. The first stage is to account for the amount actually Such provisions will ensure the lawful rights and received after the judgment enforcement agency deducts interests of the judgment debtor, and limit the situation the required judgment enforcement fee to reduce the where the judgment debtor has to bear the judgment outstanding debt of the judgment debtor; enforcement fee upon request on behalf of the judgment- executing agency or organization. In addition, such The second stage is to account for the judgment regulations will also create consistency between Decree enforcement fees as required, which are deducted from the No. 62/2015/ND-CP dated July 18, 2015 of the expenses of agencies and organizations to account for Government detailing and guiding the implementation the reduction of outstanding debts of the judgment debtors. of a number of articles of the law on judgment enforcement. and Circular No. 216/2016/TT-BTC dated The judgment creditor being an agency or November 10, 2016 of the Ministry of Finance of the organization must make such accounting in accordance Socialist Republic of Vietnam stipulating the collection with the law on accounting because the expenses to be rate, mode of collection, payment, management and use paid by the agency or organization are the compulsory of civil judgment enforcement fees in the course of fees that agencies and organizations are obliged to pay collecting civil judgment enforcement fees upon when receiving money and property for judgment request. enforcement as requested, so when the judgment 70

№ 1 (100) январь, 2023 г. References: 1. Circular No. 216/2016/TT-BTC dated November 10, 2016 of the Ministry of Finance of the Socialist Republic of Vietnam stipulating the collection rate, mode of collection, payment, management and use of civil judgment enforcement fees. Url: https://english.luatvietnam.vn/circular-no-216-2016-tt-btc-dated-november-10-2016-of-the- ministry-of-finance-on-prescribing-the-rates-collection-remittance-management-and-use-o-111245-doc1.html (date of application 24.12.2022) 2. Centre for European Constitutional Law. Comparative Report Civil enforcement in the EU: a comparative overview, 2021. Url: https://www.enforcementatlas.eu/wp-content/uploads/2021/03/EU-Enforcement-Atlas-Comparative-Report.pdf (date of application 24.12.2022). 3. Civil Judgment Enforcement Law No. 28/2008/QH12 of the National Assembly of the Socialist Republic of Vietnam dated November 14, 2008, as amended and supplemented in 2014. Url: https://fsvps.gov.ru/fsvps- docs/ru/importExport/vietnam/files/ (date of application 24.12.2022). 4. Law on Fees and Charges No. 97/2015/QH13 dated November 25, 2015 of the National Assembly of the Socialist Republic of Vietnam. Url: https://fsvps.gov.ru/fsvps-docs/ru/importExport/vietnam/files/ (date of application 24.12.2022). 5. Hanoi Law University. Textbook of Vietnam's civil judgment enforcement law. Hanoi: Public Security Publishing House, 2021. Url: https://fsvps.gov.ru/fsvps-docs/ru/importExport/vietnam/files/ (date of application 24.12.2022). 71

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