Developing lending activities for individual customers at joint stock commercial bank for investment and development of vietnam chuong duong branch

ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH - NGUYỄN ĐỨC HUÂN DEVELOPING LENDING ACTIVITIES FOR INDIVIDUAL CUSTOMERS AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM CHUONG DUONG BRANCH PHÁT TRIỂN HOẠT ĐỘNG CHO VAY KHÁCH HÀNG CÁ NHÂN TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM CHI NHÁNH CHƯƠNG DƯƠNG LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2022 ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH - NGUYỄN ĐỨC HUÂN DEVELOPING LENDING ACTIVITIES FOR INDIVIDUAL CUSTOMERS AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM CHUONG DUONG BRANCH PHÁT TRIỂN HOẠT ĐỘNG CHO VAY KHÁCH HÀNG CÁ NHÂN TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM CHI NHÁNH CHƯƠNG DƯƠNG Chuyên ngành: Quản trị kinh doanh Mã số: 8340101.01 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS LÊ ANH TUẤN HÀ NỘI - 2022 DECLARATION I hereby declare that this thesis on the topic “Developing lending activities for individual customers at Joint Stock Commercial Bank for Investment and Development of Vietnam – Chuong Duong Branch” is my personal research work during this period via All data used for analysis in the thesis and research results are my own research and analysis, objectively, honestly, with clear origin and have not been published in any form I take full responsibility for any dishonesty in the information used in this study.” Student Huan Nguyen Duc Huan i ACKNOWLEDGEMENTS First of all, I would like to thank my supervisor, Assoc of Prof Dr Le Anh Tuan This graduate thesis would have never been accomplished if I hadn’t had her assistance and dedicated involvement in every step throughout the process I would like to thank you very much for your support and understanding over these times I would also like to show gratitude to my teachers at the Hanoi School of Business and Management (HSB) with enthusiastic and inspiring teachers, including Their teaching style and creativities for the topic made a strong impression on me and I have always carried positive memories of all the classes with me Getting through my thesis required more than academic support, and I have many, many people to thank for listening to and, at times, having to tolerate me over the past two years I cannot begin to express my gratitude and appreciation for their friendship My friends have been unwavering in their personal and professional support during the time I spent at HSB ii TABLE OF CONTENTS DECLARATION i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS iii LIST OF TABLE vii LIST OF FIGURE viii INTRODUCTION .1 The urgency of the topic Overview of research Research objectives .6 Research question Object and scope of the study Research method 7 Proposed thesis structure .8 CHAPTER 10 THEORETICAL BASIS FOR THE DEVELOPING OF COMMERCIAL BANK’S LENDING TO INDIVIDUAL CUSTOMERS 10 1.1 General overview of individual customer loans at commercial banks 10 1.1.1 Personal loan concept 10 1.1.2 Features of personal loans .10 1.1.3 Methods of lending to individual customers of commercial banks 12 1.1.4 The role of personal loans in the economy 13 1.2 Development of personal loans at commercial banks 15 1.2.1 Concept about development of lending to individual customers 15 1.2.2 Quantitative indicators to evaluate the development of lending to individual customers .16 1.2.3 Qualitative criteria to evaluate the development of lending to individual customers 19 1.2.4 Factors affecting the development of personal lending activities 19 iii 1.3 Basic procedures for lending to individual customers, distinguishing between lending to individual customers and lending to institutional customers 27 1.3.1 Basic procedures for lending to individual customers 27 1.3.2 Distinguishing between lending to individual customers and lending to institutional customers 28 1.4 Personal loan development experience of several Vietnamese commercial banks and lessons for Vietnam Joint Stock Commercial Bank of Investment and Development - Chuong Duong Branch 28 1.4.1 Experience in science and technology loan development in some commercial bank branches 28 1.4.2 Lessons learned about personal loan development for Vietnam Joint Stock Commercial Bank of Investment and Development - Chuong Duong Branch 30 CHAPTER 32 DEVELOPMENT SITUATION OF LENDING TO INDIVIDUAL CUSTOMERS OF VIETNAM INVESTMENT AND DEVELOPMENT JOINT STOCK BANK CHUONG DUONG BRANCH .32 2.1 An overview of the formation and development process and the business operation of the Joint Stock Commercial Bank of Investment and Development of Vietnam - Chuong Duong Branch 32 2.1.1 An overview of the Joint Stock Commercial Bank of Investment and Development of Vietnam - Chuong Duong Branch 32 2.1.2 Business performance of Joint Stock Commercial Bank of Investment and Development of Vietnam – Chuong Duong Branch 36 2.1.2 Business performance of Joint Stock Commercial Bank of Investment and Development of Vietnam - Chuong Duong Branch 37 2.2 Personal lending situation at Joint Stock Commercial Bank of Investment and Development of Vietnam - Chuong Duong Branch 37 2.2.1 Legal basis and personal loan conditions at Joint Stock Commercial Bank of Investment and Development - Chuong Duong Branch 37 iv 2.2.2 Individual loan forms and products at Vietnam Joint Stock Commercial Bank of Investment and Development - Chuong Duong Branch 38 2.2.2.4 The most effective form of lending at BIDV Chuong Duong Branch 39 2.2.3 Personal loan process at Joint Stock Commercial Bank of Investment and Development of Vietnam - Chuong Duong Branch 40 2.3 Personal loan development at Vietnam Bank of Investment and Development of Vietnam - Chuong Duong Branch 45 2.3.1 Personal loan development in terms of scale 45 2.3.2 Personal loan development in terms of quality .48 2.4 Evaluation of personal loan development at the Joint Stock Commercial Bank of Investment and Development of Vietnam - Chuong Duong Branch 53 2.4.1 Evaluate about: Credit Policy 53 2.4.2 Evaluate about: Loan products for individual customers 54 2.4.3 Evaluate about: Facilities and staff 54 2.4.4 Evaluate about: Lending activities for individual customers 55 2.5 Evaluation of lending activities for individual customers at Joint Stock Commercial Bank for Investment and Development of Vietnam – Chuong Duong Branch 56 2.5.1 These achievements 56 2.5.2 Surviving sides 57 2.5.3 Causes of existence, limitations .57 CHAPTER 64 SOLUTIONS FOR DEVELOPMENT OF INDIVIDUAL CUSTOMERS AT VIETNAM INVESTMENT AND DEVELOPMENT JOINT STOCK BANK .64 CHƯƠNG DUONG BRANCH 64 3.1 Development goals and orientations for personal loans at Vietnam Technological and Commercial Joint Stock Bank - Chuong Duong Branch in the coming years 64 3.1.1 Business orientations of the Joint Stock Commercial Bank of Investment and Development of Vietnam - Chuong Duong Branch in the coming years 64 v 3.1.2 Orientation on personal loan development at Joint Stock Commercial Bank of Investment and Development of Vietnam - Chuong Duong Branch in the coming years 65 3.2 Personal loan development solutions of Joint Stock Commercial Bank of Investment and Development of Vietnam - Chuong Duong Branch 65 3.2.1 Develop a banking marketing strategy 65 3.2.2 Solutions to improve the quality of credit policy 66 3.2.3 Solutions to Improve the quality of facilities and human resources .69 3.2.4 Solutions to expand customers 70 3.3 Recommendations .73 3.3.1 Recommendations to the Government 73 3.3.2 Recommendations to the State Bank of Vietnam 75 3.3.3 Recommendations to Joint Stock Commercial Bank of Investment and Development of Vietnam 76 CONCLUSIONS .78 REFERENCES 80 vi LIST OF TABLE Table 2.1: Business results of BIDV Chuong Duong Branch period 2018-2020 .36 Table 2.2: Number of customers at BIDV – Chuong Duong Branch period 20182020 45 Table 2.3: Sales of personal loans at BIDV – Chuong Duong Branch period 20182020 46 Table 2.4: Outstanding personal loans at BIDV – Chuong Duong Branch period 2018-2020 47 Table 2.5: Bad debts and overdue loans in personal loans at BIDV Chuong Duong period 2018-2020 50 Table 2.6: Credit turnover for personal loans in the period of 2018 - 2020 .51 Table 2.7: Income from personal lending activities over the years 2018– 2020 52 Table 2.8: Evaluation of the lending process of BIDV Chuong Duong branch .53 Table 2.9: Evaluation of loan interest rates of BIDV Chuong Duong branch 54 Table 2.10: Evaluation of BIDV's scale in Chuong Duong branch 54 Table 2.11: Evaluation of product structure of BIDV Chuong Duong branch 55 vii LIST OF FIGURE Figure 2.1: Organizational structure of BIDV, Chuong Duong branch 35 Figure 2.2: Business results of BIDV Chuong Duongperiod 2018-2020 37 viii competitive advantage over other banks To overcome the limitations in the policy, the Branch can synchronously implement the following solutions: • Improve appraisal work In lending activities, appraisal is the most important stage, carried out throughout the lending process, determining the effectiveness of the loan Improving the appraisal efficiency will make it convenient for the Bank to participate in consulting services, clearly recognize the actual situation of customers, immediately reject unfeasible projects, reduce risks for customers, and enhance the ability of customers ability to control the use of loans by customers Therefore, the Bank needs to the following tasks well: * Improve the quality of customer information collection: To appraise and analyze loans, credit officers must collect information from many different sources, from official sources, from checking public characteristics job, income, and business activities, if any Collecting information from the Bank's books and records about the customer's previous lending relationship, if any, with the Bank such as loan application and collection of previous loan collection, operating turnover, balance payment deposit account Collecting information from the outside: Most banks not pay due attention to this source of information, but it helps a lot for credit officers when making decisions to lend to new customers Investigate information from people related to the client's work and business activities In addition, it is possible to coordinate the investigation directly with banks that have loan relationships with customers * Improve the quality of information processing After collecting complete information about the customer, the credit officer must proceed to process such mixed information If it is subjective, there is no processing method, the credit officer may make erroneous conclusions Either miss out on effective loans or make inefficient loans, potentially posing great risks to the Bank • Accurately analyze and evaluate loan customers 67 Find out different information about customers to know if customers are eligible for loans or not Analysis and evaluation of customers on the following criteria: Legal capacity of the customer to bind the customer's legal responsibility in the credit relationship with the Bank, protect the interests of the Bank Assess the financial capacity of the client through salary income and current business activities, if any These factors will determine the repayment ability of the customer Therefore, the Bank must know these characteristics of the Bank to ensure that the loan is lent to the right audience and effectively • Simplify loan procedures: Making loans according to the new process, each loan has to go through many steps Especially in the pre-lending period, there are too many procedures and opinions of different leaders before the loan is made The problem for the Bank is that in addition to complying with the lending process of the State Bank of Vietnam and the Head Office, Techcombank needs to use flexible measures to simplify to the lowest acceptable level loan procedures In order to reduce the workload of prelending appraisal and facilitate the customer's loan to be done quickly, ensuring business opportunities for customers To minimize the risk brought by the complexity of loan procedures Unnecessary documents should be removed A loan application does not have to go through the correct sequence of three departments (Credit Risk Management), especially when the customer has had a long-term relationship with the Bank Loan documents must be built according to a template so that on the one hand the Bank is easy in customer management, the customer side creates convenience for customers in declaring information Documents proving the legal ownership and right to use the property should also be clearly stated in the contract and attached to the loan contract for easy management and handling when necessary The method of receiving customer records should also change, creating the most favorable conditions for customers when they want to contact a credit officer Banks should assign each credit officer to be in charge of each specific field or area or type of business This assignment must be made public so that when needed, the 68 customer can directly contact the relevant credit officer This is the scientific way of working that the Bank should * Organization of implementation: Retail Banking Department with the Department of Risk Management and Credit Administration, to research and improve processes and regulations, to simplify the stages in the loan approval process; propose interest rate policy suitable for different customers, improve competition in the region, help attract and entice customers to use BIDV's loan products more 3.2.3 Solutions to Improve the quality of facilities and human resources The first issue that is always considered as a decisive factor for the efficiency of banking operations is staffing Staff is considered an important factor in the development strategy of the Bank of Investment and Development of Vietnam Officers and employees are one of the important factors that help improve the bank's competitiveness Therefore, in order to contribute to improving the quality of banking products and services and create a friendly image in the hearts of customers, improving the quality of staff is an important and valuable solution value in all stages of BIDV's development – Chuong Duong Branch To this, BIDV - Chuong Duong Branch needs to focus on the following aspects: - It is necessary to develop an objective recruitment process in order to recruit really qualified employees - Planning human resource development in accordance with job needs to accurately and reasonably recruit the number of employees in order to limit the shortage of human resources that not solve all the work or the excess of human resources that cause waste of human resources - Regularly organize professional skills training courses for staff At the same time, make a plan to send qualified and capable young cadres to intensive training in order to build a team of good experts who will serve as the core for human resources in the future 69 - Implement periodical training sessions to update new professional knowledge, combine theory with practice to be able to apply flexibly, creatively and effectively in work - There is a material incentive mechanism for employees such as: a satisfactory salary policy and timely reward for marketing credit officers who are borrowed by many customers, bringing high outstanding loans to the bank This helps to limit brain drain when BIDV - Chuong Duong branch is considered as the "cradle" to train staff for other banks - Policies for promotion to leadership positions must be based on the real capacity of each employee in order to create equality and maximize the working ability of each person - In addition, good infrastructure is very important in the process of developing lending activities in particular and banking activities in general Only good facilities are eligible to meet the needs of customers row; Qualified transaction space helps customers to come and transact with the Bank more conveniently and quickly, significantly improving the quality of banking products and services * Organization of implementation: Retail Banking Department with the Internal Management Department, advises and proposes to the Board of Directors a plan to train human resources operating in the field of individual customer lending with forms such as: On-site training, professional departments at the Head Office to train branches, hire experts to train sales skills Regularly inspect facilities, supplement and replace equipment timely, ensuring a good response to lending activities for customers 3.2.4 Solutions to expand customers - Transforming customer structure To classify customers according to the following criteria: payment deposits, loan quality In order to apply appropriate mobilized capital prices, there are preferential policies for large customers For payment deposits, deposit interest rates should be reduced because this is an indefinite amount of money that can be transferred 70 out of the bank at any time Customers with high current deposits should advise them to use a combination of a checking account and a savings account, with the balance on the savings account being maximized by switching from a checking account Connecting consumer loans with existing customers with accounts at BIDV and employees of businesses currently transacting at BIDV Because this customer group has a long relationship with BIDV, it is possible to assess consumption habits through the amount of money usually withdrawn from the account, the balance left on the account Besides, the accounts received salaries of the employees of other enterprises opened at BIDV is an accurate source of information when it is necessary to determine their average income Therefore, it is advisable to increase credit relations with customers who have a salary account at BIDV BIDV should continue to promote personal financial products and services aimed at Priority customers with a large amount of regular deposits on large accounts (maintenance level of VND billion or more), with regular transactions frequently and at the same time use many products and services in combination Currently, the priority customer group mainly uses savings and current deposit products, so it is advisable to build a loan product with preferential interest rates for this group of customers to create more credit relationships with customers, while increasing income for the bank - Conducting research and understanding the psychology of each customer group This work aims to perfect the customer care policy to suit each group of subjects with different needs With different customer groups, appropriate mobilization solutions should be offered As with older customers, the amount of idle money is not much, but the number of customers is large and the amount of money remains stable, and the real time of sending is long (from months to year) Contacting customers in the direction of going all the way to their residence to receive deposits and periodically bringing money to pay interest will create a safe and dedicated service mentality For young customers, it is necessary to pay more attention to technological products, use financial services to deposit and lend through the system Credit card, Internet Banking or Mobile Banking because they 71 often work on Email and phone, it will be very convenient, without having to spend time going to the bank - Regularly conduct exchanges and consultations between the bank and customers In order to create a good relationship between the bank and its customers as well as to help the bank become more and more perfect, it is necessary to further promote the 24/7 customer exchange channel through the automatic switchboard number 19009247 to answer questions customers' problems anywhere, anytime Through the statistics of the inquiries of customers who call the switchboard, it automatically draws unreasonable points, unclear products or fee policies, making it difficult for customers to readjust There should be a recording system, storing customer comments through this switchboard and also a measure of staff management in the process of contacting customers by phone Building and promoting the effectiveness of the customer service department for individuals with regular transactions and good credit history by regularly exchanging information, giving gifts to customers on holidays, Tet, and birthdays to elicit more demand for personal financial products and services Set up mailboxes and opinion cards at transaction points so that customers can propose their requirements to the bank On the bank's side, it is advisable to collect and record daily comments, and send customer feedback to relevant departments When it is necessary to collect opinions on an issue, a bank-specific product should have a pre-printed comment form with questions Choose to be customer-oriented, save time In addition, there should be a final open-ended question to gather enough other customer opinions - Build a closed price policy In order to encourage customers to use a combination of products and services at the bank such as: domestic payment services, international payment services, payroll services, treasury services The closed pricing policy applies to customers who use many financial services at the same time, in which only fees are charged at a common rate for different types of services so that customers can monitor and be proactive for your own money It is advisable to build a flexible fee 72 schedule, to create a customer mentality to use a variety of financial services, and the applicable fee is the most attractive by: Keeping the current fee schedules applied to each product individual products but develop a general fee schedule with a lower fee applied to all products used by customers The condition for using the general fee schedule is that the customer must regularly use three or more products 3.3 Recommendations 3.3.1 Recommendations to the Government Over the years, the Government has paid certain attention to bank lending activities in general and personal loans of commercial banks in particular However, in order for the personal lending activities of commercial banks to develop, the Government must take more specific actions Maintaining political stability is an extremely important factor, it affects all aspects of life, including commercial banks' personal lending activities Commercial banks' personal lending activities are greatly influenced by macro factors, including political stability Political stability has an impact on life and income, thereby affecting people's borrowing needs and lending plans of banks In addition, in administrative management, the Government also needs to restructure the management apparatus and have specific regulations for managers, avoiding the situation that officials abuse their powers and cause trouble people or abuse their power for personal gain With its macro management role, the Government must continue to promote education to improve the people's intellectual level in general and improve people's understanding of banking services in particular The government can also introduce into educational programs a completely minimal knowledge of banking and its operations in order to gradually close the huge gap between people and banks and at the same time make People can give up their hesitation when taking out a bank loan to cover their living expenses or expand their production and business activities This plays an extremely important role because once people have knowledge, their lives will be improved, people can look to banks to find investment sources for their 73 own enrichment projects raise their standard of living before they get a big enough income Thus, the Government was able to achieve many purposes at the same time In addition, the Government should also continue to have policies to encourage domestic production to develop The unfortunate reality is that many people have borrowed from banks to expand production and business activities but have not achieved the desired results Therefore, it is very necessary for the State to encourage and support domestic household business production, it both develops the economy, creates goods and creates jobs, reduces the unemployment rate unemployment Domestic production has developed both to create material wealth to improve people's living standards, to generate more demand for consumer loans when people's incomes increase, and to create more demand for loans to consumers small business The State also needs to issue more legal documents on personal lending activities of commercial banks in developed countries, people already know and carry out personal lending activities according to the legal framework certain Although Vietnam's legal system still has many points to improve, it is necessary to study and put new laws into life The state needs to create a complete legal environment for banking operations in general and personal lending in particular To solve this problem, the State has helped banks avoid certain risks, improve the responsibilities of those officers in their work, and also consider avoiding criminalization of banking operations Creating an up-to-date and reliable information system is a top issue when a country can develop Currently, the management and provision of information in Vietnam is still very poor, which has a significant impact on the personal lending activities of commercial banks Especially when the State can set up a Center to manage and provide information, the bank's personal lending activities will have many advantages for development, because this activity is an activity among the masses information in many fields is required Having a reliable information system also makes it easier and less expensive for a bank to manage its customers, and a good information system can also significantly reduce the risks a bank may 74 have when carry out personal loans, creating conditions for banks and customers to come together 3.3.2 Recommendations to the State Bank of Vietnam The State Bank of Vietnam is the agency representing the Government in the banking sector, promulgating and implementing monetary policy in the economy, directly directing and supervising all activities of the entire banking industry in accordance with the law Statutory Therefore, the State Bank plays an important role in the development of banking business in general and consumer lending in particular Firstly, finalize the documents on the operation of giving and related regulations In addition, the State Bank needs to carefully study the market situation and make accurate forecasts about the trend of the economy and credit activities of commercial banks, thereby issuing specific regulatory documents applicable to each object and type of consumer loan Second, facilitate and support commercial banks to develop their business activities through measures to increase their autonomy and self-responsibility in business; Regularly organize seminars, seminars, professional courses for commercial banks, with the participation of leading banks in the world and in the region to facilitate learning experiences as well as finding new opportunities cooperation relationship between domestic and foreign banks Third, create all conditions to develop the interbank market Research and continue to improve the interbank information system to ensure minimizing risks due to asymmetric information in banking business In addition, continuing to improve the interbank electronic clearing and settlement system, creating favorable conditions for improving the quality of products and services of the commercial banking system, and at the same time expanding these activities Fourth, improve the operation of credit information center (CIC) to update loan customers regularly, forcing credit institutions to report on their customers Establish credit rating companies Fifth, it is also possible to enhance the quality of credit officers of the entire system, and at the same time continuously open intensive training courses, when 75 there are new policies of the State Bank and the Government then organize training courses so that the staff of the whole system have conditions to grasp the operational policies to be proactive in their activities 3.3.3 Recommendations to Joint Stock Commercial Bank of Investment and Development of Vietnam Firstly, the Head Office needs to study carefully in order to come up with complete and long-term decision documents, to avoid repeated revisions affecting the activities of the Branches The head office should pilot it at a number of branches for a long enough time to have a sufficient basis to evaluate the effectiveness of the new program, and then decide whether to replicate it to the whole system Second, the Head Office needs to study to simplify the application for science and technology loans The number of documents in the loan application is too much, especially the application for customer appraisal Among these types of documents, there are many overlapping contents, if it is possible to integrate many types of papers into one appraisal report, it will save time in drafting, cost and convenience in preservation and storage file Third, the Head Office needs to ensure the quality of the internal network system Currently, the entire process of making documents for customers has to be done on the internal network, so the network connection needs to be stable and high-speed so as not to cause congestion and delay the process of solving loan needs of customers customer Fourth, cooperate with financial technology companies, improve technology in financial activities in general and lending activities in particular, in order to improve the bank's technological capacity and compete with other banks foreign banks, which have very good technology background In addition, to ensure risk reduction for the bank, it is necessary to create a modern and objective credit scoring system suitable to the actual situation of the bank In the modern competitive environment, technology is an important factor affecting the success of banks In parallel with the increase in equity, BIDV needs 76 to continue to upgrade its technology system, absorb and apply modern technologies to create many products and services with high technology content and capabilities ability to cooperate and link with banks in the region and around the world By doing this, Techcombank has created itself a competitive advantage in the competitive process Modern digital technology is creating a revolution in the financial market in general and the provision of banking products and services in particular Compared with traditional banking services, digital technology application services help make a difference It not only helps banks reduce costs, but also helps customers access banking products and services easier The appropriate direction of banks is to contribute to reducing network development costs, increasing modern sales channels, and meeting the increasing demands of customers in using financial products and services This is very clear in the utilities and services that are integrated on the telecommunications platform such as the internet environment, smart phones, etc., which partly reflect the needs, position and role of technology investment in Banking Sector Parallel development of both physical and technological channels in the development of point of sale, sales channels and products and services based on high technology The physical channels will take on the role of representing the bank in the localities to quickly handle arising problems, meet the needs of more complex transactions as well as represent the bank in the regions The online channels will meet the transaction needs of customers anytime, anywhere Developing banking services based on telecommunications with the advantage of having a strategic shareholder who is the largest telecommunications operator in Vietnam with a nationwide network of transaction points and sub-agents as well as a large network of branches modern telecommunications technology platform 77 CONCLUSIONS The research thesis achieves the set objectives: on the basis of theory on the development of science and technology lending activities for commercial banks, survey the current situation of science and technology lending activities of BIDV Chuong Duong in a comprehensive manner, thereby proposing propose reasonable solutions for the development of BIDV Chuong Duong's science and technology lending activities To achieve that goal, the thesis focuses on clarifying and exploiting the following contents: Firstly: The thesis presents an overview of basic theory on science and technology lending activities on the basis of synthesizing and analyzing reliable sources: textbooks used as teaching materials on Finance - Banks, Decisions of the State Bank of Vietnam… On these solid bases, the thesis clarifies the concept, characteristics and role of science and technology lending activities… And, an important part of content is the content of development of science and technology lending activities and criteria for evaluating the development of science and technology lending activities These are the basis for surveying the current status of science and technology lending activities as done in the thesis Second: The thesis presents the survey results of BIDV Chuong Duong's science and technology lending in the period of 2018-2020 BIDV Chuong Duong's science and technology lending activities are considered in a fairly comprehensive way: through the analysis of BIDV Chuong Duong's financial statements for the period of 2018-2020 to quantify the criteria for evaluating science and technology lending activities, evaluation comments objectively and compared with data of BIDV system; and comparing with the results of science and technology lending activities of commercial banks in the same market in Chuong Duong will help assess the situation more objectively and accurately From the survey of this situation, the thesis has evaluated and pointed out the achievements, shortcomings and causes for BIDV Chuong Duong The results of this survey are one of the bases for forming the proposed solution of the thesis 78 Third: The thesis presents the author's proposed solutions in developing science and technology lending activities for BIDV Chuong Duong With the goal of creating a comprehensive and sustainable development of BIDV Chuong Duong in the coming time, the proposed solutions are associated with BIDV's development strategy to 2025, on the basis of current realities and conditions Specifically in Chuong Duong province, including: Building a bank marketing strategy, Solutions to improve the quality of the lending process, Improve the quantity and quality of human resources, Solutions to expand customers In parallel with proposing solutions, the thesis also proposes recommendations to the Government, to the State Bank and to BIDV in order to create the best conditions for banking activities in general and for the realization of these solutions proposed legislation If the project is carried out on a larger scale, then it will be conducted with better market survey and analysis activities, then the solutions will be optimal and more applicable The topic can be expanded to study science and technology lending activities at BIDV Chuong Duong on a larger scale, in a longer time; or research lending activities for science and technology at commercial banks in Chuong Duong market; or research on lending activities for science and technology at a branch of BIDV 79 REFERENCES TS Nguyen Dang Don (2002), Credit - Banking, Statistics Publishing House TS Ho Dieu (2002), Banking administration, Statistics Publishing House Banking Academy (2001), Bank Credit Curriculum, Statistics Publishing House, Hanoi Phan Thi Thu Ha (2007), Commercial Banking Curriculum, National Economics University Publishing House, Hanoi National Assembly of the Socialist Republic of Vietnam (2010), Law on Credit Institutions (2010), Hanoi National Political Publishing House Banking Magazine, issues of 2017 Assoc.Prof.Dr Phan Thi Thu Ha (2007), Commercial Bank, National Economics University Publishing House, Hanoi TS Tran Huy Hoang (2003), Commercial Bank Manager, Statistical Publishing House TS Nguyen Minh Kieu (2007), Bank Credit and Credit Appraisal, Finance Publishing House, Hanoi 10 TS Nguyen Thi Minh Kieu (2008), Practical guide on credit granting and credit appraisal profession, Statistics Publishing House 11 GS TS Nguyen Van Nam, Assoc TS Vuong Trong Nghia (2000), Commercial Banking Management, Hanoi Finance Publishing House 12 The State Bank of Vietnam (2005) Decision 493/2005 / QD-NHNN dated 22 April 2005 and Decision 18/2007 / QD-NHNN 13 Government (2006), Decree No 163/2006 / ND-CP dated December 29, 2006 on secured transactions 14 National Assembly of the Socialist Republic of Vietnam (2010), Law on Credit Institutions (2010), Hanoi National Political Publishing House 15 Son Tay Town People's Committee (2016), "Report on the management and production and business activities of enterprises in Son Tay town in 2015" 80 16 TS Nguyen Thi Phuong Lien (2011), Textbook of Commercial Banking Operations, Statistical Publishing House, Hanoi 17 TS Vu Xuan Dung (2012), Introduction to Monetary and Finance, Statistics Publishing House, Hanoi 18 Son Tay Town People's Committee (2016), "Report on the management and production and business activities of enterprises in Son Tay town in 2016" 19 Master thesis with the topic: "Solutions to develop retail banking services at Industrial and Commercial Joint Stock Bank in Tra Vinh province" by Tran Thi Tuyet Lam - University of Economics, Ho Chi Minh City 20 The author's master thesis Huynh Nguyen Duc Huy with the topic: "Improving the quality of lending to individual customers at Non-State Commercial Joint Stock Bank - Ho Chi Minh City" 21 Master thesis by Nguyen Ngoc Le Ca with the topic: "Solution of personal credit development at Joint Stock Commercial Bank for Foreign Trade of Vietnam" 81 ... operation of the Joint Stock Commercial Bank of Investment and Development of Vietnam - Chuong Duong Branch 2.1.1 An overview of the Joint Stock Commercial Bank of Investment and Development of Vietnam. .. Joint Stock Commercial Bank of Investment and Development of Vietnam - Chuong Duong Branch 37 2.2 Personal lending situation at Joint Stock Commercial Bank of Investment and Development of Vietnam. .. process at Joint Stock Commercial Bank of Investment and Development of Vietnam - Chuong Duong Branch 40 2.3 Personal loan development at Vietnam Bank of Investment and Development of Vietnam