11. General introduction about VCB HN 1.1. History and achievements: Bank for Foreign Trade of Vietnam, Ha Noi Branch – VCB HN was established in 01/03/1985 according to the Decision 177/NH.QĐ of Chairman of State Bank of Vietnam. The purpose of this establishment was to support the development of the economy of Ha Noi in general and to facilitate the business activities of many domestic as well as foreign enterprises that were operating in Ha Noi in foreign trade and travel area. 1985 – 1998: The first period with many affections of subsidy economy, VCB HN started with many difficulties such as lack of infrastructures, poor human resources with only 64 staffs … Therefore, the beginning business outcomes were undesirable: fund mobilization was only 53.4 billion VND, total loans was 13.9 billion VND, and the number of customers was 20 enterprises. 1999 – 2007: With the development of technology, VCB HN applied the Core Banking – SilverLake technique of foreign modern banks so it created many new products and services such as: internet banking, SMS banking, VCBMoney, online transaction… the implementation and management of banking transaction become more and more easier for both banks and customers. Network transaction is widened all over the city include: Thanh Cong, Ba Dinh, Chuong Duong, Cau Giay ( Thang Long) branches and more than 10 transaction offices. At this time the total capital of VCB increased dramatically and achieved the impressive number at 10 000 billions VND. In 2004, VCB HN was awarded the Third Level Labour Medal by the State . 2007 until now: Thanh Cong, Ba Dinh, Chuong Duong, Cau Giay branches and the Transaction Office number 6 directly belongs to central VCB. After the division, fund mobilization of VCB HN was 8.355 billion VND, total loans was 3.125 billion VND, import - export settlement turnover was 433 million USD, issued more than 110 000 ATM card, 5000 international credit card, the number of credit customers was 1053 people and more than 100 000 customers open transaction accounts at VCB HN, net operation income before provision in 2009 was 125 billion VND. Now the head office of VCB HN is located at 344 Ba Trieu Street and has 10 transaction offices. Supervisor: GS.TS Pham Quang Trung Vu Thanh Loan – AF49 2 1.2. Development orientation: VCB wants to become one of the biggest and the most modern banks not only in Vietnam but also in the Asian area and all over the world. VCB HN is one important member of central VCB so VCB HN set some targets and orientations as follow: Re-organize the organization structure and management system with customer- oriented purpose and follow the standard of modern banking. Improve the financial system and achieve the targets under the international rules on banks. Diversify the banking operations including the whole sale banking and the retail banking activities. Expand the relationship with all customers in every economic sector, pay greater attention to small and medium enterprises. Expand the network transaction and open more channels of banking activities in the area of Hanoi. Develop rapidly the products and services of VCB on the basis of modern technology. Display the leading role in the money market, foreign exchange and import- export activities. Enhance training, retraining and recruiting new staffs, creating high-quality human resources for the bank, so meeting the development needs and improve business operations of the bank. Upgrade technology to meet increasing demands from customers as well as to serve business management and administration. 1.3. Organization structure: Diagram 1.1 Organization structure of VCB HN Board of directors 1. Internal control & audit department 2. Credit department 3. Import-export settlement department Supervisor: GS.TS Pham Quang Trung Vu Thanh Loan – AF49 Information Technology department 9.3 4. Human resources department 10.Thành Công Credit – Payment department Accounting – Service department Administration – Treasury department 11.Trần Bình Trọng 16. Secondary branch . Card payment department 6.Hàng Bài 15.Hàng Đồng Supervisor: GS. Secondary branch . Secondary branch . Transaction office number 1 .TS Pham Quang Trung Vu Thanh Loan – AF49 . Secondary branch .Cầu Giấy Credit – Payment department Accounting – Service department Administration – Treasury department 12. Treasury department 7. Transaction office number 3 . Transaction office number 2 . Banking service department 5.Ba Đình Credit – Payment department Accounting – Service department Administration – Treasury department 14. Financial accounting department 8.Chương Dương Credit – Payment department Accounting – Service department Administration – Treasury department 13. TS Pham Quang Trung Vu Thanh Loan – AF49 .4 17. Transaction office Nội Bài Supervisor: GS. 5 Supervisor: GS.TS Pham Quang Trung Vu Thanh Loan – AF49 . 2 Structure of the board of director Department Human resources General co-ordination office Import – export settlement Customers Financial accounting Treasury Card payment Banking services Individual customers Internal control & audit Debt handling Technology management Manager Ms Phan Thi Hong Van Ms Nguyen Hoang Oanh Ms Le Thi Lien Mr Nguyen Tuan Phong Ms Doan Thi Khanh Van Ms Ha Thi Lan Mr Tran The Vinh Ms Nguyen Thi Mai Hoa Mr Pham Thanh Binh Ms Chu Thi Chau Hanh Ms Nguyen Thi Ba Mr Trinh Nam Hung Supervisor: GS.TS Pham Quang Trung Vu Thanh Loan – AF49 .vn Board of directors: Diagram 1.com.6 Source: vcbhanoi. Business activities and results of VCB HN in 2010: 2.4. Fund mobilization: In 2010. Building 434 Tran Khat Chan Transaction office Yet Kieu: 14 Yet Kieu Transaction office Bat Dan: 48 Bat Dan Transaction office Hoang Mai: 89B Ho Den Lu Transaction office Lac Trung Transaction office Noi Bai 2. Network transaction: Head office: 344 Ba Trieu Transaction office number 1: 2 Hang Bai Transaction office number 2: 14 Tran Binh Trong Transaction office number 3: 1 Hang Dong Transaction office number 4: 36 Hoang Cau Transaction office number 5: Khu CC2 Bac Linh Dam Transaction office number 6: 277 Nguyen Trai Transaction office number 7: First floor. despite facing pressures of stiff competition with the other commercial banks in the race of interest rates to implement the Circular 13/2010/TT.NHNN and Circular 19 of governor of State Bank about the regulations of adequacy ratio in activities of credit unions. the fund mobilization activity got remarkable results. but with the flexibility in interest rate operating mechanisms of the board of management and the best efforts of all employees at the branch.TS Pham Quang Trung Vu Thanh Loan – AF49 .1. Supervisor: GS.7 1. increased by 44% compared to that of 2009.8 Total fund mobilization of VCB HN in 2010 reached 11.7% of the total mobilized capital. Diagram 2. Mobilized fund directly from the economy reached 10. Supervisor: GS.63%. increased by 28.1 Fund mobilization and lending activities through periods Billion VND 9000 8355 8000 7000 6000 5000 4000 3000 2000 1000 0 31/12/2007 31/12/2008 HĐV 6270 6818 3125 2553 2455 31/12/2009 CV Source: Financial report of VCN HN 2009 The structure of mobilized capital of VCB HN in 2010 is classified according to: Type of currency: • Domestic currency mobilization reached 6.TS Pham Quang Trung Vu Thanh Loan – AF49 .705 billion VND.931 billion VND.5% of the fund mobilization expectation.129 billion VND.1% compared to that of 2009 and completed 98. accounting for 64. This figure shows that the growth rate of fund mobilization of VCB HN branch in 2010 maintains stable and strong. If we based on the “Average implementation speed” target that is given by Central VCB to calculate the time to complete plan then the daily average fund mobilization from 01/01/2010 to 31/12/2010 in compared with 31/12/2009 increased by 9. 175 5. Economic sectors Residents Economic organizations 2. went up by 6% in compared with that in 2009. accounting for 42% of the total mobilized capital.355 5. Currency VNĐ Foreign currency Outcome s Percentag e 7.919 3.904 2.540 10.705 6.3% of the total mobilized capital. accounting for 35.175 3.451 8. increased by 4.165 billion VND.540 billion VND.057 accounting for 94% of the total mobilized fund.4% over 2009.9 • Foreign currency mobilization reached 4.TS Pham Quang Trung Vu Thanh Loan – AF49 .705 6. • Medium-term and long-term mobilized capital reached 648 billion VND.803 3.165 4.1 Structure Of Mobilized Capital From 2008 To 2010 Billion VND 2008 2009 Outcome s Percentag e Outcome s 2010 Percentage Targets 1.395 1.552 100% 71% 29% 100% 57% 43% 10.256 100% 75% 25% 100% 55% 45% 8.780 7. accounting for 58% of the total mobilized capital. Customer deposits reached 6. billion VND.355 4.774 100% 58% 42% 100% 65% 35% Source: Financial report of VCB HN 2010 Supervisor: GS. increased by 85% over 2009. Economic sectors: • Mobilized fund from economic organizations reached 4.931 3. accounting for 6% of the total mobilized fund.540 billion VND. • Maturity: • Short-term mobilized capital reached 10. Table 2. 7% (the 2010 plan was 3650 billion VND). increased 25.1. Until 31/12/2010. accounting for 70% of total loans. automobile …). Supervisor: GS. stimulating economic growth through interest rate lending support channel. increased by 24% compared to 31/12/2009. the gross loans of HN branch reached 3. . Type of loans: . • Outstanding loans of foreign currency earned 1. accounting for 30% of total loans. ensuring to stabilize the monetary balance. VCB HN adhere to the government’s policy of against the economic downturn by encouraging investment. representatives of households.098 billion VND. competitive and attractive lending interest rates. increased by 30% compared to 31/12/2009.2.2.8% compared to that of 31/12/2009. The loans structure until 31/12/2010 as follow: According to type of currency: • Outstanding loans of domestic currency reached 2. focusing on the task of strengthening the capital mobilization according to the guidelines of the Bank of Vietnam. Loans: Bank for Foreign Trade of Vietnam is of ability to meet fund’s demands of customers (being individuals. (Loans in foreign currencies must be in accordance with the existing regulation on forex management.TS Pham Quang Trung Vu Thanh Loan – AF49 .834 billion VND.) From beginning until now.For business purposes including: for development of family’s prosperity.For consumption: for purchasing of consumption goods. for transport means (motobike. housework facilities. for implementing plans of manufacture and business to serve daily life. beyond the expectations 7. supporting enterprise and residential business activities and life. the lending process at VCB HN always follows strictly the Resolution 03/NQ-CP (15/01/2010) and Resolution 18/NQ-CP (06/04/2010) of the Government about some solutions to stabilize the macroeconomics. Credit activities: 2. at the same time. representatives of cooperatives) with simple and convenient lending procedures. consumption.932 billion VND. living house/land…or unsecured lending to employees.10 2. and it also collected 78. In fact. in 2010. Loan under interest rate agreement: Total outstanding loans under interest rate agreements reached about 804 billion VND. made up 76% of total loans Medium-term and long-term loans reached 939 billion VND. because of some reasons related to the legal documents and rules.TS Pham Quang Trung Vu Thanh Loan – AF49 . so this kind of loans is not really developed and noticeable. accounting for 10. which require a deep research.4% of total loans. all of them are medium and long term loans. VCB HN is promoting some real estate projects to attract more customers in this potential area. accounting for 14% of total loans. Securities outstanding loans currently stand at nearly 4. the Board of director identified the key tasks is to handle the bad debts. besides that ensure a safe credit growth. total bad debts were 237. accounting for 6% of total loans.7 billion VND are the outstanding loans to securities code named VCB toward VCB staffs enjoying preferred prices.7 billion VND Loans under interest rate of 2% were 4.7 billion VND. Loans for investment in the stock market also contains many potential risks. total loans under the interest rate subsidy program at VCB HN were 52 billion VND. In 2010. always maintain a reasonable level of outstanding loans and develop a right direction for credit growth. VCB HN collected bad debts from Hanoi Electronics Company.3 billion VND This program follows the Circular 27/2009/TT-NHNN of State Bank of Viet Nam on the purpose of supporting individuals and organization to borrow money at a low rate to do business. Especially.993 billion VND.11 According to loans maturity: • • Short-term loans reached 2. Until 2010. total real estate loans at VCB HN reach 411 billion VND. Real estate loans and stock investment loans: At this time. of which: Supervisor: GS. among them: Loans under interest rate of 4% were 47.397 USD bad debts of Materials and Tourism Company and 300 million VND from Import-Export Shoes Joint Stock Company. Hanoi Branch is not currently developing this service. Loans under the interest rate subsidy program: Until 31/12/2010. Types of guarantees that can be issued: • • • • • • Borrowing guarantee Payment guarantee/ Standby Letter of Credit Bid Bond Performance Bond Product quality guarantee Advance payment guarantee (Guarantee for Reimbursing advanced payment. household equipment. purchase of vehicles…in which the majority of loans is for buying appliances and household equipment (about 259 billion VND. the needs for borrowing of enterprises and investment projects increased rapidly. In VCB HN.TS Pham Quang Trung Vu Thanh Loan – AF49 . 2. the loans to serve daily life often mainly meet the demand for buying appliances.3% to this type of loans. at the end of the year.12 Outstanding loans for capital needs for production.7%. Vietcombank issues a written commitment to a third party designated by the customer (the guarantee’s beneficiary) on execute financial responsibility for the customer when the customer doesn’t execute or execute correctly the responsibility committed to the guarantee’s beneficiary. so the allocation of credit balance based on total outstanding loans of Central VCB is really a big challenge in the relationship with customers to VCB HN in 2010. accounted for 93. The customer has to accept the credit and return to the Bank the amount paid on their behalf. of which short-term loans reached 495 billion VND. services and investment reached 528 billion VND. Outstanding loans to serve daily life. guarantee for Reimbursing deposit or deposit guarantee) Supervisor: GS.2. occupied 6. of which: loans for serving daily life were 266 billion VND. accounting for 97% to this type of loans) Circular 13/2010/TT-NHNN implemented from October.2. 2010 and at the same time. export loans were 430 billion VND. Specifically: loans for production cost of processing industry were 65 billion VND. trading. medium and long term loans reached 32 billion VND. loans through the issuance and usage of credit cards reached 276 billion VND. Guarantee: Based on customer’s request. loans through the issuance and usage of credit cards were 10 billion VND. so many customers have moved the import and export payments to other banks.TS Pham Quang Trung Vu Thanh Loan – AF49 . The total guarantees in 2010 of VCB HN were 190 billion VND. exceeding by 24. increased by 3 million USD compared to the previous year. Moreover.13% decrease compared to 2009. The export turnover was 176 million USD. completing 88% of the plan in 2010. On the other hand. Baking and card service: Supervisor: GS. The total import and export turnover of VCB HN in 2010 was 392 million USD.4.3. 3. import turnover was 216 million USD. the big difference between the bank rate and the market exchange rate therefore customers with incomes from exports often did not want to sell USD or they sold USD at black market so it was very hard for banks to buy foreign currency from customers and it leaded to the shortages of foreign currency supplies for import-export payment at banks. complex movement of foreign exchange market. 2. decreased by 43 million USD compared to 2009. the current mechanism of VCB do not allow commission or brokerage fee in buying and selling foreign currencies at high rate as some other commercial joint stock banks. 2. the competition for customers and market share in the import-export activities among commercial banks in Ha Noi is growing rapidly so it also had a huge impact on the results of the import-export settlement activities at Hanoi branch.13 • • • • • Guarantee for retained amount (Work quality guarantee/ Warranty guarantee/ Maintenance guarantee) Counter guarantee Confirmation of guarantee Guarantee for studying overseas Other types of guarantee not forbidden by law and suitable to international practice.2% compared to the plan given by Central VCB in 2010 (161 billion VND). Import – export settlement: VCB HN had many difficulties in import – export settlement activities in 2010 due to the restriction in import of State. 2.85% increase compared to 2009. 5 billion VND. increased by 43% compared to 2009.86% its target.4% compared to 2009 and completed 123% its plan.908 customers. increased by 15% over the same period in 2009. 31% increase compared to 2009.160 customers.S.5% compared to 2009 and completed 160% its targets. the total number of personal active accounts at Hanoi branch is 111. 7. VCB HN outreached nearly its entire targets for card issuance and payment turnover.7% its plan.36% increase compared to 2009. increased 4. Revenues from using local debit cards at POS were 3. Money Gram payment service: Total Money Gram payment turnover in 2010 was nearly 616 thousand U. The number of International debit card was 6405 cards. increased 9. Number of customers registered to use SMS Banking service reached 31. increased by 34% compared to 2009 and finished 135% its targets in 2010.3% of the plan in 2010. increased by 50. increased by 23% compared to 2009 and completed 115% its targets. The number of international credit card was 1351 cards. Card payment activities: Up to 31/12/2010.5% over the same period in 2009.079 accounts.TS Pham Quang Trung Vu Thanh Loan – AF49 . Revenues from using international debit card were 265 billion VND. Results of some operations at the branch in 2010 as follows: Newly opened individual accounts in 2010 were 20. increased by 32. Supervisor: GS. completed 95.14 Good banking services will be one important factor contributing to the growth of capital mobilization and increasing profits for banks. the number of Connect24 cards was 19.218. dollars. completed 51% its plan in 2010.381 cards.6% of the plan in 2010. Revenues from using international credit card were 94. completing 87. increased by 14% compared to 2009 and completed 92. Number of customers using Internet banking services reached 22.6 million VND. International payment revenue in 2010 was 8 billion USD. Total money transfer was 56. Up to 31/12/2010.6 billion VND. In 2010. completing 95.3% compared to 2009 and completed 129% the plan. the volume of buying in was 166. 2. In 2010.. By the end of 2010. total volume of foreign exchange dealings in 2010 was approximately 332. and there are many pressures to adjust the price of Vietnamese currency against the dollar. Even though on 17/08/2010.3 million USD and it equals only 52% of buying in and selling out volume in 2009. the current number of card-accepting units is 65 units. Exchange rates at the banks are always equal the ceiling rates and the price of USD in free market is always higher than the ceiling price at the banks.. VCB HN had 320 enterprises and organizations using salary payments through banking accounts service at branch.7 million USD.TS Pham Quang Trung Vu Thanh Loan – AF49 . Some strategies that have been applied by VCB HN such as: agreed rate on USD mobilization. Foreign exchange dealings: 2010 was a difficult year for foreign exchange dealings due to fluctuations in exchange rate. the State Bank of Vietnam increased the average interbank exchange rate to apply a flexible exchange rate regime and help to reflect better the true supply and demand in the market but the foreign currency supply and demand in the USD market still remained complex. decreased by 47% compared to 2009. In that circumstance. VCB HN always had active policies in controlling the exchange rate and attracting foreign currency to meet for the demand of customers in import payments. exceeds 10 units compared to the plan and raising the total number of units to accept credit card of VCB HN to 170 units. paying debts. preferential interest rate on loans for enterprise that committed to sell USD for VCB Supervisor: GS. Auto salary payment service: VCB HN implemented the project on “the development of non-cash payments” according to the Decision 291/2006/QDD-TTg (29/12/2006) and salary payments through accounts with all people who are paid by State Budget under the Decision 20/2007/CT-TTg (24/08/2007) of Prime Minister.15 With efforts of all staffs at Hanoi branch. Thus. Among them. and still ensured profits for branch.4 million USD. the foreign exchange market was very complicated.5. the volume of selling out was 166. foreign currency market and prolonged shortage of currency supply. This shows that the transactions on the foreign exchange market have not really reflected the market. .683 billion VND and the market share of capital mobilization according to VND . increased more than three times compared to 2009.4%. Total funds raised from the economies of all banks in Ha Noi City in 2010 reached 767. Evaluation of the financial performance of VCB HN in 2010: 3.2% . Results: Diagram 3.USD – converted to VND to the end of 2010 of VCB HN with more than 300 banks and other financial institutions in turn is 1. the foreign exchange dealings activities of VCB HN still followed the foreign exchange management regime of State Bank of Vietnam and exchange rate controlling policy of Central VCB. outreached its targets by 50% (the planned profits were 89 billion VND) Mobilizing capital in 2010 USD at the branch increased by 44% over the same period in 2009.16 HN.. 3. Supervisor: GS.0.TS Pham Quang Trung Vu Thanh Loan – AF49 .1 to 1.However. Although faced with many difficulties.1 The development of Vietcombank Hanoi from 1985-2009 Net operating income after provision up to 31/12/2010 was 133. the foreign currency supply was still not enough for the demand of partners of VCB HN in importing activities.1.8 billion VND. Of which. total loans in VND was 338.980 billion USD.75% over the previous year. compared with late 2009. With the position as an official member of the World Trade Organization WTO and the integration of Vietnamese economy to international economy. especially in banking activities. Legal framework for banking activity has been relatively stable and progressively more complete. the economy recovered rapidly while the world economy was still complicated. respectively.USD – converted to VND of VCB Hanoi in 2010.27% over the same period in 2009. market share in raising capital of VCB HN in 2010 increased 0. State Bank of Vietnam had a more flexible monetary policy. total loans in foreign currency reached 125. the market share of outstanding loans for VND . the market share of outstanding loans decreased by 0.83% 0. political and social stability continues as one of the big advantages for business operations of the bank.0.614 million USD. Therefore. The development of the Vietnamese economy and society in 2010 went under a positive direction. that was most clearly reflected in series of documents enacted by State Bank in 2010 to orient and control the business activities of credit institutions in the economy.0. As a result. In 2010. despite of all difficulties in domestic and overseas economy and the strong competitions of other commercial banks in the area.2%. increased by 25. was 0.07% .046% .79%.TS Pham Quang Trung Vu Thanh Loan – AF49 . Outstanding loans all financial institutions in Hanoi to the end of 2010 reached 494. business operations at VCB Supervisor: GS. many opportunities are open for banking area in general and for VCB Hanoi in particular.024% .770 billion VND. social security is guaranteed. went up by 31.2.0.17 Overall.05% compared with that market share in 2009. Advantages: 3. the life of people was improved. an increase of 46. appropriate mechanisms and sticks more to market signals as well as the general trends of the international currency markets. Domestic and international financial and monetary markets stability and recovery increased so it created a great advantage for doing business.14% compared to that of 2009. therefore VCB HN focused on customers who are relatively successful enterprises. but the trade deficit in 2010 still remained 8 to over 12 billion dollars causing huge pressure for the macro economy. VCB HN had to deal with the general challenges and pressure of the banking sector such as: profit targets. ensure liquidity and safety credit growth. VCB HN built a prolonged relationship with all kind of customers.NHNN of State Bank. especially the need to increase capacity for the system and enforce new standards on capital adequacy through make all efforts to mobilize capital. Foreign currency. Supervisor: GS. made right decisions at the right time that helped to contribute the success of branch.18 HN achieved relatively good results because of the best efforts and appropriate strategy of the Board of director. especially U. make policies to follow the Circular 13/2010 / TT. Although the trade deficit has been curbed less than 20% of total export and import. In addition. Consumer price index tended to rise. Disadvantages: In 2010.. In fund mobilization. The ATM system was cared to work properly and riskless. 3. Therefore. The board of director developed a safe and efficient operation for all banking activities. with good customer services. trade deficit remained high. people's life faced some difficulties due to the impact of natural disasters. epidemics.3. foreign currency supply and demand balance continuously tensed in the last months in 2010 and was a difficult problem for the banks in meeting the needs to pay debts and import activities of enterprises. dollars is insufficient to meet the demand for import has affected directly to exchange rate management policies and CPI.TS Pham Quang Trung Vu Thanh Loan – AF49 .S. raising capital.. market rates were complicated. the pressure on the exchange rate between VND and USD has not decreased. raising capital from individual customers was not stable and difficult. Business operations of the branch have always received highly support from the Central VCB and State Bank. Although the economy was out of crisis but the development was not stable and solid. due to the fluctuation of interest rate on the market. In 2010. some enterprises did unreasonable transactions by themselves and made profits. Meanwhile some other commercial banks still mobilized with interest rates up to 2-3% per year leaded to difficulties in mobilizing foreign currency for VCB HN. there were no longer exist the “Interest rate subsidy program” and enterprises had to borrow based on market rate so they were resistant to invest because they scared of many risks like: interest rate and exchange rate fluctuation. precisely.. while the dollar deposit rates for individual clients could not be pushed higher due to they are unable to lend at a higher rate to customers. Another challenge is the current interest rate on capital mobilization goes against the law of trade that is short-term interest rate is higher than long-term interest rate. In the foreign currency trading.. 4. one of the solutions VCB HN could apply was increasing the interest rates to attract foreign currency funds into banks. Thesis proposal (Card issuance and payment problems): 4. the import-export settlement and foreign exchange dealings at the branch in 2010 also had difficulties due to scarcity of foreign currency and the import restriction policy of the State.19 To resolve the above difficulties.1. automatic card payment system in combination with automate information management. This reflects the instability in the economy and makes it difficult for banks to mobilize long term capital to meet the investment needs and it does not create the confidence for citizens in the sustainable development of the economy. Thanks to its country-wide network of correspondents.TS Pham Quang Trung Vu Thanh Loan – AF49 . Besides. General information: Bank for Foreign Trade of Vietnam (Vietcombank) is the first one carrying out card service in Vietnam. there was still a race in interest rate between joint stock commercial bank to earn market share and new customers and it had a large effect to the business outcomes of VCB HN. In 2010. The drawback in exchange rate and interest rate management can influence the relationship between banks and customers. that can lead to a huge loss. Supervisor: GS. but the ceiling rate for organization was only 1%. economic instability. payment activities via Vietcombank are processed quickly. due to the gap between banking and market exchange rate. supermarkets. therefore. Vietcombank is not only the largest agent of various international card in Vietnam but also is the Bank who directly issues and settles cards. If you have VISA. tourist centers. Particularly for VISA. Using credit card. Conditions for participating card payment network of Vietcombank: all individuals and agencies who supply goods and services in Vietnam can become Card acceptance Agent for Vietcombank. The Bank. MASTERCARD and JCB cards. Issuance and payment of Vietcombank Credit Card Who should use Credit Card? In order to avoid possible risk of bringing with a large amount of cash. We are a full agent of JCB international Card Company as well as American Express in Vietnam. 4. Restaurants. Supervisor: GS. MASTERCARD. always maintains its leading position in international card payment market of Vietnam.. Vietcombank Credit Card – VISA and Vietcombank-MasterCard provide customers with much convenience in paying goods and services and in withdrawing cash within the country and foreign countries as well. JCB and AMERICAN EXPRESS cards. you can pay for goods and services quickly and conveniently at nearly 2000 card payment agents of Vietcombank as Hotels. you are kindly advised to use credit card. booking offices. you can also easily manage expenditures of yourself and your relatives. you are able to easily withdraw in cash at offices of Vietcombank.2. Actually. Benefit and Convenience of using credit card Credit card can be used to buy goods and services at more than 20 million places and to withdraw cash at some 1 million cash payment places and from ATM in Vietnam and other countries in the world as well.. shops. Vietcombank is an official member of the two globally prestigious card organizations VISA/MasterCArd. especially for those often go for business abroad or who have relatives and children studying or having disease treatment in foreign countries.20 safely and efficiently.TS Pham Quang Trung Vu Thanh Loan – AF49 . Vietcombank Credit Card is used widely since this is a safe and modern payment instrument and especially it contributes to increase individual prestige on transactions. over the past years. Vietcombank issue VISA/Master Card on two limits: the Yellow Card with the limit from VND 50 million to VND 90 million. If you pay the whole balance. The main card owner can request the Bank to issue maximum 2 supplementary cards for his relatives. you can request Vietcombank to re-provide you with your PIN (since we do not inform customer PIN through telephone). more than 18 years old. You only have to pay in advance 20% of the balance at the end of the period with short-term interest rate for the unpaid balance. In case you loose your card or forget password: you only have to inform the Card Center or our branches all over the country in order for us to stop all transactions on this card. you are required to have a certain working time remained and to live in Vietnam for a period of card time plus 40 days.21 Though International credit card is in VND. You are allowed to “expense first and pay later” during a non-interest favorable time of 10-45 days. If you are foreigner in Vietnam.TS Pham Quang Trung Vu Thanh Loan – AF49 . Personal card authorized by companies: A company applies to issue cards and authorizes its staff to use it. Personal card: Person who names to issue the card is responsible to pay the Bank. not under court punishment or accused penal offence. Conditions for international credit card issuance You are Vietnamese citizen or foreigner who is living and working legally in Vietnam. Cards In order to facilitate customers. you are exempt for interest of balance arose during the card period. You are provided with customer services the whole day 24/24h. Vietcombank also issues maximum 2 supplementary cards to the main card owner. Supervisor: GS. the Silver Card with the limit from VND 10 million to VND 50 million. you still can use it for payment or withdrawal in foreign currencies in foreign countries and refund to Vietcombank in VND. If you forget your personal identification number (PIN). The company is responsible to pay the Bank. Features Vietcombank issues international VISA/Master Card with all features compliant with international standards of VISA and Master Card Organizations. This means that you can improve fund utilization efficiency since you can spend while your money is still deposited at the Bank for interest. collateral. so HN branch took the initiative to focus on the enterprises that have a large source of temporary idle cash and have some achievements in business activities. Supervisor: GS. sales of VCB cards relatively largely depend on the flow of tourists to Viet Nam. Although Central VCB has a long history in the business card. It also has to meet all regulations on loan guarantee. the branch has mobilized capital from Yamaha Corporation with the average volume of money with average maturity up to over 500 billion VND. General solutions: Because of the complexity of the interest rate market. the card market become more and more competitive. the data on card distribution and payment of VCB HN branch is very small. but with VCB HN Branch. In recent years. From June 2010.3. as tourism decreased.TS Pham Quang Trung Vu Thanh Loan – AF49 . cards issuance and payment activity is a very new field. deposit or be able to satisfy non-collateral borrowing conditions in accordance with Vietcombank's regulation. Solutions and recommendations: 5. with no overdue loan to Vietcombank. however. to June 11. due to competitive pressure on interest rates and VCB HN had difficulties in responding to customers’ demand of foreign currency so this company should had moved the capital to send at other banks. 5. raising capital from individual customers is not stable and difficult. Therefore. 4. Moreover. the VCB card sales will decline significantly. VCB HN also raised fund from KT company about 500 billion VND. and had the highest point up to more than 1. it is very hard for VCB to maintain a unique position in the card market in Vietnam. This activity was initiated from September 8-2002.000 billion VND. Some problems: Like other banks.22 The following conditions should be met: + Personal card authorized to use by a company: the company must be in good financial situation. since it is the only bank card payment agents for foreign banks to directly issue card. From June 2010. + Personal card: the holder must have a stable job and income.1. promoting strength in the business of each branch and each area. Regular customer care. each branch . loyal customers. create friendly atmosphere. departments that had done good work in raising capital and deposits according to the volume of deposits in each month of the year. 5. interest rates . each customer target.. Continue to improve the quality of services to create a good impression and attract new customers. at the same time those products should have the superior features in compared to other products of other banks and show specific characteristics of Vietcombank trademarks. Specifically. pay attention to improvement of professional skills. forecasts of exchange rate fluctuations. standardized the transaction. consulting the best suitable banking products based on the interests and needs of customer. creating a professional image and increase the competitiveness of the branch. Building an accurate and timely information systems to forecasts all issues related to the macroeconomic.. cross consulting . .TS Pham Quang Trung Vu Thanh Loan – AF49 . Give rewards for timely staffs. retain traditional customers... implement special care for special customers policy. Determine the competitive advantage of each position.23 Implementing the standards of customer service transactions to all staffs and departments that work directly with customers. so VCB will make the correct management decisions according to the instability in the market. Search more new customers to be able to mobilize all sources of funds as well as the source of term deposits of organizations. customers have a large balance of trade. make preferential transaction charges and interest agreement mechanism for VIP customers. uniform.With the Government and State Bank of Viet Nam Supervisor: GS. monetary market trends. while upgrading and renovating the space transactions.. Recommendations: With Central VCB: The CS & SPNHBL department of Central VCB should research and develop new products in mobilizing capital to be more attractive and more feasible. to build the appropriate development strategies.. + Concern in the social development work and complete the changing location of the transaction offices number 2 to the new place to 32 Quang Trung.2. it provides the basis to re-establish the order in the relationship between customers and banks based on equality and inherent rules. thereby increasing the competitiveness for the bank.TS Pham Quang Trung Vu Thanh Loan – AF49 . violate the rule and the operating mechanism of the government and central bank.24 In 2010. Since then. governments should continue to have support policies to create momentum for the business activities of enterprises. Therefore. The government and the central bank need to quickly find a solution for operating mechanism of interest rates and exchange rates in consistent with market conditions. At the same time. even though the economy has recovered but it was still unstable and had many potential risks. Supervisor: GS. Especially. The government and central bank quickly review and approval of capital increase for VCB to accelerate the growth rate of capital adequacy of VCB. Apply very serious punishment for the unfair competition in banking business. Issuing documents and legal adjustments to the competitive activity in the banking business is consistent with our economic context of deeper integration into world economy. causing instability in the money market and losing trust of citizens in the macroeconomic policies of the Government. the government and the central bank should have policies to boost exports through the mechanism of interest rate support and reasonable exchange rates regulations in order to encourage exports. they should apply strict measures to control foreign currency in the economy promptly to resolve the imbalance in supply and demand of foreign currency today.