Abstract: This study examines the dynamic efficiency and productivity trajectories of 20 Vietnamese listed banks from 2017 to 2023, a period characterized by significant regulatory shifts and economic volatility. We develop a two-stage Dynamic Network Data Envelopment Analysis (DNDEA) model with a slacks-based measure (SBM) to decompose the banking value chain into resource-generation and income-generation phases. A pivotal contribution of this research is the explicit treatment of non-performing loans (NPLs) as undesirable carry-over variables, thereby capturing the intertemporal persistence of credit risk. Our empirical results reveal significant heterogeneity: while overall efficiency is primarily hindered by resource-generation slacks (overuse of labor and equity), the income-generation phase exhibits relative resilience. Utilizing the Cumulative Malmquist Productivity Index, we identify divergent trajectories among banks, distinguishing "Consistent Benchmarks" that maintain robust stability from "Volatile" performers sensitive to macroeconomic shocks. These findings offer critical insights for macroprudential oversight, suggesting that regulators must monitor structural, stage-specific inefficiencies to safeguard financial stability in emerging markets.

Keywords: dynamic network DEA, bank efficiency, non-performing loans, carry-over, heterogeneity, productivity growth, emerging markets, Vietnam

Pages: 1495-1509