Using Analytical Hierarchy Process in Decision Analysis - The Case of Vietnam State Securities Commission

Hoang Linh Nguyen, Cher-Min Fong, Cheng-Ter Ho

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DOI: 10.4236/ib.2010.22017                

Abstract

This paper uses Saaty’s Analytical Hierarchy Process (AHP) to formulate the strategy framework for Vietnam’s State Securities Commission (SSC). In the first step, a questionnaire was designed to find Key Success Factors (KSFs) of the strategy of Taiwan Financial Supervisory Commission (FSC) by using the benchmarking technique. Criteria for questionnaire are carefully selected based on the Principles for securities market regulation set forth by the International Organization of Securities Commissions (IOSCO). The KSFs of FSC were then used to conduct a survey in the State Securities Commission of Vietnam (SSC). The data collected by AHP-structured pair wise comparisons were constructed into a computer-based program called Expert Choice. The result shows that top priority choice for SSC is to build up financial and operational capacity for securities firms, which in turn, will best support other alternatives. Another finding shows useful techniques in strategic management widely applicable in the business world can perfectly fit into the not-for-profit contexts in a way that it can help SSC reassessing and remodeling current flows of work in developing the nascent securities market to be the market that protect investors, insure fair, effective, transparent environment and reduce market systemic risk.

Keywords

Decision Analysis, Analytical Hierarchy Process, Benchmarking

Conflicts of Interest

The authors declare no conflicts of interest.

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