Internship Report

Internship Report
TABLE OF CONTENT
List of abbreviation............................................................................................................ 4
List of tables and charts..................................................................................................... 5
Dedication......................................................................................................................... 6
Acknowledgement............................................................................................................. 7
!ec"tive s"mmar#........................................................................................................... $
%hapter I& 'rief introd"ction of (oint )tock %ommercial 'ank for *oreign +rade of
,ietnam
-.- .verview of (oint )tock %ommercial 'ank for *oreign +rade of ,ietnam................./
-.-.- 0eneral information........................................................................................... /
-.-.1 '"siness sit"ation............................................................................................. --
-.-.2 3rod"ct lines..................................................................................................... -1
-.-.4 %ompetitors...................................................................................................... -2
-.1 .rgani4ational str"ct"re............................................................................................. -5
%hapter II& Internship program at %orporate 'anking Department 5 6anoi 'ranch
1.- 3lan of internship program......................................................................................... -7
1.1 0eneral information of %orporate banking Department 5 6anoi 'ranch...................-7
1.2 )ervices of %orporate 'anking Department...............................................................-$
7go 8"oc 6iep Page 1
Internship Report
%hapter III& ).9...+ anal#sis of %orporate 'anking Department 5 6anoi 'ranch
2.- )trengths.................................................................................................................... 11
2.-.- )trong brand name............................................................................................ 11
2.-.1 6igh potential for wholesale banking operations: trade finance and applications
of modern technolog#.......................................................................................11
2.-.2 %lient network.................................................................................................. 11
2.1 9eaknesses................................................................................................................ 12
2.1.- ."tstanding loans; retail banking services.......................................................12
2.1.1 )mall and medi"m c"stomers; individ"al c"stomers........................................14
2.1.2 3rod"ct lines..................................................................................................... 14
2.2 .pport"nities.............................................................................................................. 14
2.2.- International integration...................................................................................14
2.2.1 0overnment<s polic#........................................................................................ 15
2.2.2 +he orientation of e!pansion and diversification of operations........................15
2.4 +hreats........................................................................................................................ 15
2.4.- %ompetition at press"re.................................................................................... 15
2.4.1 %redit operations and the e!plosion of stock market........................................16
%hapter 4& Recommendations for improvement and concl"sions
4.- Recommendation........................................................................................................ 17
4.-.-3romote f"nding................................................................................................ 17
Internship Report
4.-.1 Improve the ="alit# of services and maintain market share..............................17
4.-.2 ns"re the safet#: ="alit#: efficienc# of credit growth.....................................1$
4.1 %oncl"sion................................................................................................................. 1$
References........................................................................................................................ 2>
Internship Report
LIST OF ABBREVIATION
,%' ,ietcombank R.A Ret"rn .n Assets
A%' Asia %ommercial (oint )tock 'ank R. Ret"rn .n ="it#
'ID,
(oint )tock %ommercial 'ank for Investment
and Development of ,ietnam
R.AA
Ret"rn .n Average
Assets
)? )mall @ ?edi"m nterprise R.A
Ret"rn .n Average
="it#
). )tateAowned nterprise
*B C
*ore!
*oreign !change
9+. 9orld +rade .rgani4ation LC% Letter of %redit
I3. Initial 3"blic .ffering A+?
A"tomatic +eller
?achine
Internship Report
LIST OF TABLES AND CHARTS
7o. 7ame 3age
+able -.- '"siness res"lt --
+able -.1 *inancial growth rate --
+able -.2 +he comparison of core competencies among ,%' and its competitors -4
%hart 2.- +he str"ct"re of o"tstanding loans b# c"stomers 12
Internship Report
DEDICATION
I dedicated the Internship Report to m# famil# members: m# teachers and friends at
'anking Academ# for their help.
Internship Report
ACKNOWLEDGEMENT
I owe a debt of gratit"de to man# people who helped me complete this internship report. I
wo"ld like to acknowledge the help of all.
*irst of all: I take this opport"nit# to e!press m# deepest acknowledgement to the place I
belong to 5 'anking Academ# of ,ietnam: especiall# to m# teachers in the *oreign
Lang"age *ac"lt# who provide "sef"l ed"cation for me.
I am ver# thankf"l to ?r. 6D EFc +Gng at %orporate 'anking Department of ,%' 5
6anoi 'ranch for his val"able g"idance: closel# s"pervising this work over the past few
months and helpf"l s"ggestions.
7e!t: I wo"ld partic"larl# like to thank ?r. 7g"#en +rong Doanh for his help of data
collection d"ring m# proHect work
Last b"t not least: to m# parents: I wish to e!tend m# loving thanks for their
enco"ragement.
Internship Report
EXECUTIVE SUMMARY
In the c"rrent economic market: banking services: in general: and corporate banking
services: in partic"lar: take a ver# important role. +hese are great reso"rces for the
econom#; it is critical to the s"rvival and development of enterprises: it has a strong
impact on all economic and social activities and life of the individ"als. In commercial
banks: banking service is not onl# the most important activit#: which decides bank<s
s"rvival or prosperit#: b"t also a maHor factor to bring profits or losses for the banks:
especiall# services for b"siness c"stomers. +herefore: the s"ccess or fail"re of the bank
depends greatl# on the si4e and ="alit# of banking services in general and corporate
banking services in partic"lar. %orporate banking services have made significant
contrib"tions in promoting economic growth: creating Hobs and implementing other
"rgent and important socioAeconomic tasks. Reali4ing the importance of corporate
banking service d"ring the internship at (oint )tock %ommercial 'ank for *oreign +rade A
6anoi 'ranch: I have chosen the topic IStudy Corporat Ba!"#!$ Sr%#& #! Ba!"
'o#!t Sto&" Co((r&#a) Ba!" *or For#$! Trad + Ha!o# Bra!&,I as a topic for m#
report.
?# internship report has fo"r main parts following&
%hapter I& 'rief introd"ction of (oint )tock %ommercial 'ank for *oreign +rade of
,ietnam
%hapter II& Internship 3rogram at %orporate 'anking Department 5 6anoi 'ranch
%hapter III& ).9...+ anal#sis of %orporate 'anking Department 5 6anoi 'ranch
%hapter I,& Recommendations for improvement and concl"sion
Internship Report
CHA-TER I
BRIEF INTRODUCTION OF 'OINT STOCK COMMERCIAL BANK
FOR FOREIGN TRADE OF VIETNAM
./.O%r%#0 o* 'o#!t Sto&" Co((r&#a) Ba!" *or For#$! Trad o* V#t!a(
././. G!ra) #!*or(at#o!
*"llname & (oint )tock %ommercial 'ank for *oreign +rade of
,ietnam
+ransaction name & ,ietcombank
6ead="arter & -/$ +rJn 8"ang KhLi: 6oDn KiMm District: 6D 7Ni:
,ietnam
)9I*+ & '*+, ,7,B
9ebsite & www.vietcombank.com.vn
Logo
()% 'ank for *oreign +rade of ,ietnam: formerl# known as 'ank for *oreign trade of
,ietnam: was established from the *oreign !change '"rea" Oof the )tate 'ank of
,ietnamP. 'eing the first state commercial bank chosen for pilot privati4ation b# the
Internship Report
0overnment: (oint )tock %ommercial 'ank for *oreign +rade of ,ietnam officiall# came
in to operation on >1C>6C1>>$: after s"ccessf"ll# implementing the e="iti4ation plan
thro"gh I3.. ,ietcombank Ostock code& ,%'P officiall# listed on the 6o %hi ?inh )tock
!change O6.)P on 2>C>6C1>>/.
D"ring 5> #ears of development: ,ietcombank has contrib"ted significantl# to the
stabilit# and growth of national econom#: "pholding the role of a maHor foreign trade
bank in facilitating efficient domestic economic growth as well as infl"encing
considerabl# on regional and global financial comm"nit#.
.riginated as a speciali4ed bank for foreign trade: ,ietcombank nowada#s has become a:
providing c"stomers with a wide range of leading financial services in international
trade; traditional services s"ch as capital trading: capital mobili4ation: credit: proHect
financingQetc.: and modern banking segment s"ch as fore! trading and derivatives: card
services: eAbanking and so on.
,ietcombank has advantage of appl#ing advanced technolog# into the a"tomatic banking
s#stem: prod"cts development: eAbanking services: based on its high technolog#
fo"ndation. 3rod"cts s"ch as Internet 'anking: ,%' ?one#: )?) 'anking: ,%' %#ber
'ill 3a#ment have alwa#s attracted a great deal of c"stomers b# its convenience:
promptness: safet#: efficienc#: creating the habit of nonAcash pa#ments Ovia banksP
amongst c"stomers.
,ietcombank<s strategic vision of 1>-5&
'ecome a diversified financial conglomerate of A)A7
Ranked in the top 7> leading banks in Asia
Internship Report
././1 Bu2#!22 2#tuat#o!
A +able -.-& '"siness res"lts ORnit& million ,7DP
1>-1 1>-- 1>->
7et reven"e 2-:$-4:26
/
22:254:72
2
1>:5$>:62$
Income from service activities 1:15>:527 1:-/$:>22 -:/-$:54>
7et gainCloss from foreign e!change operations -:4$7:751 -:-7/:5$4 56-:6$>
7et gainCloss from sale of trading sec"rities 121://5 A5:$/6 -$:-4/
7et gainCloss from sale of investment sec"rities A-/:>4$ 14:>-1 16$:2$-
3rofit before ta! 5:76-:276 5:6/7:4>5 5:47/:-$2
3rofit after ta! 4:4>/:17$ 4:-/6:$-- 4:1-4:544
A +able -.1& *inancial growth rate ORnit& SP
1>-1 1>-- 1>->
Ret"rn on invested capital OR.I%P 1-S 1>S 24S
Reven"e growth rate A5S 61S 25S
arnings per share O3)P 4S >S A4>S
="it# 4$S 2/S 14S
3rofit before ta! C +otal assets OR.AP -S -S 1S
3rofit after ta! C ="it# OR.P -1S -7S 12S
././3 -rodu&t )#!2
,ietcombank "nderstands their c"stomers< desire for banking services for individ"als A it
is a series of prod"cts to meet the needs with convenient services and reliable.
A Retail banking services&
Internship Report
Acco"nt
%ard
)avings
?one# transfer
3ersonal loan
Life ins"tance
Abanking
A %orporate banking services&
'"siness acco"nt
3a#ments and cash management
%orporate financing
*ore! and treas"r#
International 3a#ments
+rade finance
0"arantees
Investment banking
Asset management
Abanking
A *inancial instit"tions& ,ietcombank is among the few banks that possess a
widespread network of branches across the co"ntr#: as well as representative
offices and s"bsidiaries abroad. In addition: their correspondent relationships with
abo"t -:5>> domestic and foreign banks operating both in ,ietnam and in over ->>
Internship Report
co"ntries and territories all over the world has made ,ietcombank the settlement
h"b for the maHorit# of international transactions coming in and o"t of ,ietnam.
%orrespondent banking
Acco"nt services
*oreign e!change
+reas"r#
+rade finance
*actoring
././4 Co(pt#tor2
%ompetition in the banking ind"str# is increasing fiercel# when man# corporations: which
are ,ietcombank<s core c"stomers: "rgentl# established bank: financial compan#.
,ietcombank will be "nder press"re for the loss of maHor c"stomers and ke# emplo#ees
d"e to the fact that a series of newAestablished bank is e!pected to re="ire tho"sands of
senior personnel. +here is a competition among ,ietcombank with all the banks in the
ind"str#: in which the main and direct competitors are A%' and !imbank: and the
indirect competitors are +echcombank: 'ID,: Agribank: ,3 'ank: .....
Internship Report
A +able -.2& +he comparison of core competencies among ,%' and its competitors
ORnit& million ,7DP
,%'
Agriban
k
,ietinbank 'ID, A%'
7etwork
172 T1>>> -45 5-2 -$7
+otal assets 11-:/5
>
4>>:4$5 -/2:5/-
146:4/
4
->5:2>6
="it#
-2:$/2 -7:7/$ -1:226 -2:466 7:766
%harter capital
-1:->- ->:/14 7:7-7 $:756 6:256
?obili4ation from residents -57:>6
7
1//:/54 -15:>/4
-62:2/
7
64:1-7
."tstanding loans ->7:57
4
1/4:512 -1>:751
-6>:/$
2
24:$22
'ad debt ratio OSP
4.6 7CA -.5$ 1.6> >.$/
+otal income
$:/>2 -/:54- $:6/4 $:277 4:12/
Interest income
6:614 -4:44- 7:-$/ 6:144 1:71$
3rofit after ta!
1:51> 1:-14 -:$>5 -:/7/ 1:1--
R.AA OSP
-.1- >.5/ -.>> >.$$ 1.21
R.A OSP
-$.42 -1.$> -5.7- -7.$7 2-.52
Deposit market share OSP
--.$> 11.52 /.4> -1.1$ 4.$1
?arket share for loans OSP
$.7> 12.$1 /.77 -2.>1 1.$1
Internship Report
./1Or$a!#5at#o!a) 2tru&tur
,ietcombank has grown tremendo"sl# in the model of "niversal banks with 5$ branches:
- transaction b"rea": $7 transaction offices and nationwide affiliates and 1 representative
offices and - overseas s"bsidiaries: with nearl# 6:5>> staff.
A +he affiliates&
Logo 7ame 9ebsite
,ietcombank Leasing
www.vcbl.com.v
n
,ietcombank )ec"rities Limited %ompan#
www.vcbs.com.v
n
(oint ,ent"re ,ietcombank *"nd ?anagement www.vcbf.com
Internship Report
A .rgani4ational.chart
Board of
Directors
Board of
Directors
Board of
Manageme
nt
Board of
Manageme
nt
President
and CEO
President
and CEO
Risk
Manageme
nt
Risk
Manageme
nt
Operations
Division
Operations
Division
Finance &
Accountin
g
Finance &
Accountin
g
Business
Support
Business
Support
Treasur
Treasur
Retai!
Banking&
"et#orks
Retai!
Banking&
"et#orks
$%o!esa!
e
Banking
$%o!esa!
e
Banking
Corporate
Banking
Department
Corporate
Banking
Department
Retai!
Banking
Deve!opment
Department
Retai!
Banking
Deve!opment
Department
Treasur
Departme
nt

Treasur
Departme
nt

Credit Risk
Managem
ent
Departme
nt
Credit Risk
Managem
ent
Departme
nt
Pament
Centre
Pament
Centre
Administrative
Office
Administrative
Office
SUBSIDIARIES; Banking Group; Administrative Units
SUBSIDIARIES; Banking Group; Administrative Units
Supervisor Board
Supervisor Board
Committees
Committees
Office to t%e Board of Directors
Office to t%e Board of Directors
Internship Report
CHA-TER 1
INTERNSHI- -ROGRAM AT COR-ORATE BANKING DE-ARTMENT
HA NOI BRANCH
1/. -)a! o* #!tr!2,#p pro$ra(
7ame of department& %orporate 'anking Department 5 ,ietcombank 6anoi 'ranch
Address& 4
th
floor: 244 'D +riU": 6ai 'D +rVng District: 6D 7Ni
+el& >4 2/74 6666
)"pervisor& ?r. 6D EFc +Gng
)tarting and ending dates of internship period&
A )tarting date& -4C>1C1>-2
A nding date& 17C>5C1>-2
1/1 G!ra) #!*or(at#o! o* Corporat Ba!"#!$ Dpart(!t 6 Ha!o# Bra!&,
,ietcombank 5 6anoi 'ranch was established on >2C>-C-/$5 "nder Decision 7o. -77C76
of the 0eneral Director of the )tate 'ank of ,ietnam. *o"nded for the aim of s"pporting
the development of e!ternal economic: %orporate 'anking Department 5 6anoi 'ranch in
this period was assigned for a n"mber of b"sinesses operating in the field of foreign trade:
to"rism ... and some international organi4ations in 6anoi. Along with the economic
transition since the late W/>s: %orporate 'anking Department A 6anoi 'ranch has
grad"all# e!panded scale of operations: applied advanced technolog# in banking
operations: e!tended its network: improved service ="alit# and got domestic and foreign
partners to have tr"st in ,ietcombank 5 6anoi 'ranch. After all: over 15 #ears of
development and growth: ,ietcombank 5 6anoi 'ranch has not stopped growing:
confirmed the importance of his position and the s"ccess of certain banking activities and
become one of the top affiliates in the ,ietcombank<s banking s#stem.
Internship Report
1/3 Sr%#&2 o* Corporat Ba!"#!$ Dpart(!t
%orporate 'anking Department 5 6anoi 'ranch has been alwa#s "pgrading and
e!panding its operations to offer more convenient services. )pecificall#: there are the
main activities and b"siness services as follows&
A %orporate financing& %oming to ,ietcombank: all enterprises< needs for working
capital and longAterm capital will be met. 9ith their c"stomerAoriented strateg#:
enterprises are g"aranteed to enHo# the best possible deals and top ="alit# services.
)hortAterm lending
9orking capital financing
3roHect finance
A +rade finance& 9ith highl# e!perienced specialists in both trade finance and
international pa#ments: ,ietcombank brings a wide range of trade finance prod"cts
corresponding with all pop"lar methods of pa#ments. 'e#ond that: ,ietcombank
provides tailored sol"tions that s"it all specific needs.
3reAshipment financing
3ostAshipment financing
)ophisticated trade finance sol"tions
In addition: %orporate 'anking Department 5 6anoi 'ranch is the place that also s"pplies
b"siness c"stomers with other e!tra services below and link them to other departments
speciali4ing in these services.
A '"siness Acco"nt& +his t#pe of acco"nt: with the f"ll s"pport of the techni="e and
professions: will help enterprises control over f"nding iss"es ever# da# in the most
effective wa#.
Internship Report
%"rrent acco"nt
+ime deposit
)pecial deposit prod"cts
A 3a#ments and %ash management& 9ith man# #ears of e!periences and modern
technolog#: ,ietcombank provides a variet# of effective pa#ment and cash
management sol"tions: ens"ring smooth pa#ments and cash flow.
3a#ables management
Receivables management
Li="idit# management
%orporate cards
Domestic LC%
A *ore! @ +reas"r#& 9ith advantages in foreign c"rrenc# so"rces and longAtime
e!perience in the b"siness: beside meeting foreign c"rrenc# needs: ,ietcombank
helps enterprises effectivel# manage their foreign c"rrenc# risks b# providing a
variet# of services and tailored prod"cts s"itable to their b"siness operations and
foreign c"rrenc# so"rces.
*oreign e!change O*BP
*B derivatives
Interest rate derivatives
?one# market instr"ments
'ond trading
Asset management
Internship Report
A International pa#ment& As a leading bank in international pa#ments: ,ietcombank
alwa#s provides the best services: facilitating the international trade activities.
Import services
!port services
.ther international pa#ments
A 0"arantees& 9ith high prestige and longAterm e!perience: ,ietcombank is the
leading bank in cons"lting and providing vario"s g"arantee prod"cts to meet their
c"stomers< needs: enhancing their capacit# to sei4e b"siness opport"nities and
minimi4e risks.
0"arantee iss"ance
.ther g"arantee services
A lectronic banking& +his is a prod"ct channel of ,ietcombank: bringing fast and
convenient services via the Internet to help enterprises save time and speed "p the
transaction process between #o" and ,ietcombank. ."r services enable enterprises
to in="ire general information: send pa#ment orders: control transaction stat"s and
monitor acco"nt movements of their affiliates witho"t leaving the office.
Internship Report
CHA-TER 3
S/W/O/T ANALYSIS OF COR-ORATE BANKING DE-ARTMENT 6
VIETCOMBANK7S HANOI BRANCH
3/. Str!$t,2
3/./. Stro!$ 8ra!d !a(
)trengths O)P 9eaknesses O9P
A )trong brand name
A 6igh potential for wholesale banking
operations: trade finance and
applications of modern technolog#
A !tensive client network
A ."tstanding loans mainl# belongs
to ).s: retail banking services
still remains "nderdeveloped
A +here are diffic"lties for )?s
and individ"al c"stomers to
access ,ietcombank<s services
A ?onotono"s prod"ct lines
.pport"nities O.P +hreats O+P
A International integration brings more
facilitations
A 0overnment<s policies limit the "se of
cash in pa#ment and promote the "se of
banking services
A +he orientation of e!pansion and
diversification of operations into the
field of real estate and sec"rities
investment will increase sales profit in
the f"t"re
A +he competitions among banks is
getting more and more intense
A %redit activities have not reall#
operated effectivel# and the
e!plosion of stock market
appeared as another prod"cts
instead
Internship Report
,ietcombank is one of the leading banks: with the best brands in the financial market of
,ietnam. 'esides: ,ietcombank: with good rep"tation as well as credibilit#: gets highl#
regarded for the ="alit# of services. .n --C>1C1>>7: )tandard @ 3oorWs Ratings )ervices
anno"nced that ,ietcombank was ranked at '' C ': and at D for stable o"tlook and
internal capacit#. ,ietcombankWs credit rating is e="ivalent to the credit rating of the
co"ntr#. +his is also the highest ranking of the ) @ 3 for a financial instit"tion in
,ietnam.
3/./1 H#$, pot!t#a) *or 0,o)2a) 8a!"#!$ oprat#o!29 trad *#!a!& a!d
app)#&at#o!2 o* (odr! t&,!o)o$y/
+here are advantages in pa#ment operations& ?ost of financial instit"tions in ,ietnam
opened acco"nts at ,ietcombank: pl"s the advantages of I+ s#stems and %orebanking
helped to shorten the time of pa#ment: transfer ... and improve service ="alit#.
Advanced technolog# base& As the first bank ever in ,ietnam to complete core s#stem in
-///: ,ietcombank has gained advantages over other banks in the s#stem of centrali4ed
data management and prod"ct development.
3/./3 C)#!t !t0or"
9ith e!tensive network of c"stomers: especiall# large corporation and ).s s"ch as
6apro: 6anoi +ransport @ )ervices %orporation Q: ,ietcombank has taken a large
market share of credit operations: f"nding: b"siness cards and services.
As one of the maHor banks: pl"s the advantages of b"siness and international pa#ments:
,ietcombank has a c"stomer base incl"ding man# large b"sinesses: especiall# those
related to e!port and import. +his helps ,%' earn a relativel# good profits from fore!
trading. +he proportion of net gains from this operation in total income has increased: in
1>-> this proportion was nearl# --S.
3/1 Wa"!222
3/1/. Out2ta!d#!$ )oa!2: rta#) 8a!"#!$ 2r%#&2
Internship Report
."tstanding loans mainl# belong to ).s; retail banking services still remain
"nderdeveloped.
+he maHorit# of reven"e still comes from its wholesale banking service Otrading on the
mone# market and making loans to large enterprisesP: meanwhile the retail banking
service: which has the potential and also affects directl# the bank<s vitalit# in the f"t"re:
has not developed.
%"rrentl#: the proportion of new personal loans has acco"nted for less than ->S of the
total o"tstanding loans of ,ietcombank; the proportion of individ"al b"siness loans: small
and medi"m enterprises loans is still at low level. +h"s: to develop in the right direction
of retail bank: ,ietcombank will need a prett# big adH"stment.
A %hart 2.-& +he str"ct"re of o"tstanding loans b# c"stomers ORnit& SP
0%
20%
40%
60%
80%
100%
2010 2011 2012
Other Customers
Coopert!ves "
#r!vte Compn!es
$n%!v!%uls
&ore!'n
compn!es
(t%. Compn!es
)O*s
3/1/1 S(a)) a!d (d#u( &u2to(r2: #!d#%#dua) &u2to(r2
Internship Report
*or ,ietcombank<s histor# of mainl# serving large c"stomers: it will not be of advantage
to develop the operations related to this kind of c"stomers or retail banking service: in
other words while this sector is growing rapidl#.
It sho"ld take ,ietcombank: which had a long histor# as a commercial bank with
ineffective operations: time to change. +his is a matter of histor#: so it is "nnecessar# to
anal#4e more. %"rrentl#: ,ietcombank has been making a remarkable effort in the
process of changing the st#le of operations in order to achieve profession in banking and
finance: striving for the top of HointAstock commercial bank of ,ietnam in the near f"t"re.
3/1/3 -rodu&t )#!2
?onotono"s services limited income from service activities. Altho"gh there are man#
t#pes of services for different c"stomers: these ones have not #et attracted the attention of
c"stomers. It ma# be beca"se the marketing polic# was not good eno"gh or ,ietcombank
bro"ght o"t services that are not consistent with the maHorit# of c"stomers .... +h"s: in the
f"t"re: ,ietcombank needs to have m"ch more improvements in the b"siness in order to
attract the large n"mber of c"stomers and get more powerf"l.
3/3 Opportu!#t#2
3/3/. I!tr!at#o!a) #!t$rat#o!
,ietnam is the co"ntr# ranked as the developing co"ntries with an ann"al economic
growth at abo"t 7A$S. )ince ,ietnam Hoined the 9+.: there has been a rapid growth in
import and e!port: which makes the need of international pa#ments increased and as a
res"lt: ,ietcombank has stood a good chance to raise its earnings.
*acilitations of integrations&
+aking advantages of capital: technolog# and training staff
*acilitating ,ietcombank to grad"all# e!pand international operations: improve
the stat"s of ,ietcombank in international financial transactions
%reating incentives to promote the renewal and reform of ,ietcombank. 0etting a
lot of e!perience in banking operations of foreign banks.
Internship Report
3/3/1 Go%r!(!t72 po)#&y
Aiming at social and economic development: limiting inflation and a habit of not "sing
cash ... the government has bro"ght o"t policies to red"ce cash in circ"lation: for
e!ample: emplo#ees get paid via A+? cards: people are enco"raged to p"rchase thro"gh
pa#ment cards b# banks .... 6ence: banking services: s"ch as opening c"rrent acco"nts:
p"rchasing thro"gh A+?s ,ietcombank .... is growing: bringing one maHor so"rce of
reven"e for banks in general: and ,ietcombank in partic"lar.
3/3/3 T, or#!tat#o! o* ;pa!2#o! a!d d#%r2#*#&at#o! o* oprat#o!2
7ot H"st doing b"siness of loans: ,ietcombank has also taken part in other financial
markets. !panding and diversif#ing the b"siness into the field of real estate and
sec"rities investment promised to increase sales profits in the f"t"re. In fact: the o"tbreak
of the ,ietnam stock market in late 1>>7 and the development of the real estate market in
the earl# 1>>$ bro"ght an income of ,ietcombank tho"gh the bankWs share price declined
after the I3. at that time.
3/4 T,rat2
3/4/. Co(pt#t#o! at pr22ur
+he opening of the financial markets has increased not onl# the n"mber of banks with
strong financial reso"rces: technolog#: management b"t also competitive press"re. +he
fact that ,ietnam officiall# Hoined the 9+. has led to fierce competition in the banking
and financial market. +he IlandingI of the foreign banks in ,ietnam has created an
intense the race among banks in order to take market share of banking A finance in
,ietnam. As a matter of fact: the foreign banks with advantages of large capital: highA
="alified personnel: specific longAterm b"siness strategies .... have made domestic banks
enco"nter diffic"lties in competing for market share in 6anoi. *"rthermore: ,ietcombank
has to compete directl# with other domestic banks s"ch as 'ID,: +echcombank:
Internship Report
Agribank and so on when the# are developing event"all# with the offer of vario"s
prod"cts. Accompanied b# that: the competition in the ="alified labor market has ca"sed a
brainAdrain sit"ation as well. +he sit"ation re="ired ,ietcombank to take meas"res for
f"rther raise of the ="alit# of its services: s"ch as& a ="ick adoption of appropriate tactical
strategies to ens"re that the competitive process wo"ld bring the real benefit to the
econom# of ,ietnam; increasing financial capacit# b# adding capital; strong investment
in the development of networks; the establishment of more branches; investment in
technolog# and A+?s installment in areas to strengthen service ="alit#.... In addition to
that: ,ietcombank wo"ld need more advertising @ marketing campaigns and p"blic
relations to enhance the stat"s and image in their markets: in partic"lar: and enable banks
to stand against the invasion of other banks in ,ietnam: in general.
3/4/1 Crd#t oprat#o!2 a!d t, ;p)o2#o! o* t, 2to&" (ar"t
+he boom of the stock market has led to maHor changes in c"stomers< habits of
investment as well as the shift of f"nds o"tgoing of the bank. +he development of
,ietnam stock market in the late of 1>>7 was so strong that ever#one tried to trade shares
on the market. )ince then: the withdrawal to b"# shares from clients was in ver# great
demand: which had shifted cash flows from mone# market to the stock market and
res"lted in imbalance between the two markets.
%redit operations was not reall# effective when accessing c"stomer information was
getting more diffic"lt. +here has been the lack of appropriate sanctions when credit
contracts is violated: which has ca"sed damage to the bank. .n the other hand: stateA
owned enterprises< loans acco"nted for most of the total o"tstanding loans of banks.
+hese enterprises often operate less efficientl# than private enterprises and dealing with
problems that arise when the debt is overd"e is often more comple!.
CHA-TER 4
RECOMMENDATIONS FOR IM-ROVEMENT AND CONCLUSION
Internship Report
4/. R&o((!dat#o!2
As predicted: there will be no positive change in global economic prospects in 1>-2 b#
diffic"lties in controlling p"blic debts: "nemplo#ment and inflation. ,ietnamWs econom#
in 1>-2 will keep on being affected b# e!ternal factors and is e!pected to be
"nsatisfactor#.
In 1>-2: the %ongress has set o"t general obHectives in order to prioriti4e c"rbing inflation
below 7S: stabili4e macroeconomic and s"stain a reasonable growth along with renewing
the growth model and restr"ct"ring econom#.
.n the basis of anal#sis of b"siness environment: ,ietcombank wo"ld operate "nder the
motto IInnovation A )afet# A )tandards A fficienc#I and activel# reAstr"ct"re to create a
breakthro"gh in management and b"siness.
4/./. -ro(ot *u!d#!$
'elow are the top of priorities at the moment&
A *oc"s on mobili4ing capital: maintain foreign c"rrenc# capital and keep on
strength in e!ternal relations to raise f"nds from the international market.
A Deplo# programs to raise capital from individ"als: contin"e to implement the
prod"ct mobili4ing medi"m and long term capital to take advantage of longAterm
f"nds.
4/./1 I(pro% t, <ua)#ty o* 2r%#&2 a!d (a#!ta#! (ar"t 2,ar
,ietcombank sho"ld keep "p the strength of fore! trading: stick to direction of the )tate
'ank to make sensible decisions in foreign e!change: strengthen relationships with
c"stomers and provide sol"tions ens"re the attraction and balance of foreign c"rrenc# for
c"stomers.
'esides: it<s ="ite essential
+o maintain market share of international pa#ment in imports and e!ports
A Increase competitiveness for prod"cts
A *oc"sing more on keeping and developing e!port c"stomers
Internship Report
+o promote the development of retail banking services&
A )tandardi4e prod"cts: retail banking services contin"all#
A Diversif# prod"ct and service portfolio
4/./3 E!2ur t, 2a*ty9 <ua)#ty a!d **#&#!&y o* &rd#t $ro0t,
In order to minimi4e the damage to the bank and bad debts: ,ietcombank sho"ld keep the
credit growth consistent with the growth of f"nd: control the medi"m and long term credit
growth and stick to the li="idit# sit"ation of banking s#stem to bring o"t an appropriate
credit polic#.
Last b"t not least: it<s also necessar# to enhance credit risk management: partic"larl# with
those c"stomers who have large o"tstanding loans and foc"s on handling nonAperforming
loans b# man# meas"res.
4/1 Co!&)u2#o!
It can be seen easil# that the integration process has made ,ietcombank in partic"lar and
enterprises in general face man# new challenges and opport"nities. *or e!ample: when a
developing societ# comes along with the advancement of science: technolog# and the
civili4ed life: there will be a significant growth in the demand for the "se of prod"cts and
banking services. 3l"s: there are also s"pports of the government in making policies that
the "se of cash in pa#ment is limited so as to promote the needs and habits of "sing
banking prod"cts. +hose are chances b"t the challenges are not less. +he# are the negative
impacts of the economic crisis: it is the fl"ct"ation in politics and societ# or H"st simpl# a
fierce competition in the banking sector: which has led to more and more press"re and the
appearance of other prod"cts and services instead. 'eing aware of the diffic"lt sit"ation:
in the proHect: I have anal#4ed specificall# the state of ,ietcombank and its strengths:
weaknesses. And I: on the basis of what<s in ,ietcombank<s possession and economic
conte!t: make recommendations for this bank in the vision of 1>-5 aiming for the leading
financial gro"p in ,ietnam and international banks in the region with b"siness philosoph#
is Is"stainable growth: effective risk management: maintaining high profitabilit# and
Internship Report
financial indicators: investing in h"man reso"rces and technolog# to enable ,ietcombank
to reach o"t to the worldI.

Internship Report
REFERENCES
X-Y 9ebsite& www.vietcombank.com.vn
X1Y 9ebsite& www.sbv.gov.vn
X2Y 9ebsite& www.cafef.vn
X4Y conomic Development ?aga4ine O1>-1P: Z,ietnamese %ommercial 'anks&
)trengths 5 9eaknesses 5 .pport"nities 5 +hreats[.
X5Y Ann"al report of ,%' 1>->: 1>--: 1>-1
X6Y 6ab"bank )ec"rities %ompan#<s doc"ments of anal#4ing ,ietcombank
X7Y Report on b"siness performance of 1>-1 5 directions for 1>-2 of ,%'
X$Y .ther internet so"rces

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