Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (92)

OUTLINE OF PROJECT SOLUTION FOR ENHANCING COMPETITIVE CAPACITY OF VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT IN THE 5-YEAR-PERIOD FROM 2011 TO 2015 MEMBERS OF GROUP - CLASS: GAMBA_N04: DOAN VAN LAM (GROUP LEADER) DINH QUOC HUNG DO THI BICH DAO PHAM THI THANH VAN October 2011 TABLE OF CONTENTS INTRODUCTION CHAPTER 1: BASIC THEORY OF COMPETITIVENESS AND INTEGRATION INTO INTERNATIONAL ECONOMICS .10 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No 201 201 11| | GLO GLO BAL BAL ADV ADV ANC ANC ED ED MB MB AA PRO PRO GRA GRA MM (Gla (Gla ss) ss) || Gro Gro up up No No 99 1.1Competitiveness and competitive ability .10 1.1.1Concept of the theory of enterprise’s competitiveness and competitiveness concept 10 1.1.2Role of competitiveness 10 1.2Competitive ability 11 1.2.1 General theoretical development process of enterprise’s competitive ability 11 1.2.2 Concept of enterprise’s competitive ability 12 1.2.3 Factors influence on competitive ability of enterprise 14 1.2.3.1 Factors of internal enterprise………………………………15 1.2.3.2 External factors of enterprise………………………………15 1.2.4 Models and methods to evaluate enterprise’s competitive ability 15 1.2.4.1 Model “Diamond” of M Porter…………………………….16 1.2.4.2 Matrices SWOT…………………………………………… 17 CHAPTER 2: SITUATION ASSESSMENT OF COMPETITIVE ABILITY OF THE BANK OF AGRICULTURE AND RURAL DEVELOPMENT OF VIETNAM 18 2.1 Overview of the history and development of Agribank .18 2.1.1 The history of Agribank 18 2.2 Operational status of Agribank 19 2.2.1 The main products of Agribank 19 2.2.2 Results of Agribank operations to 2009 and the first quarter of 2010 .21 2.2.2.1 Financial status 21 2.2.2.2 Capital mobilization .21 2.2.2.3 Work Credit 23 2.2.2.4 Co-operation and international payment 26 2.3 Analysis and review theAgribank's competitiveness 27 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No 2.3.1 Analysis of factors affecting the competitiveness of Agribank past five forces model of competition of M Porter 27 2.3.1.1 Level of competitiveness in the sector 27 2.3.1.2 Threat from new entrants .29 2.3.1.3 Threat of substitutes 30 2.3.1.4 Power of customers 30 2.3.1.5 Level of competitiveness in the sector 31 2.3.1.6 Power of suppliers 32 2.3.2 Analysis of Agribank competitive with other competitors 32 2.3.2.1 Financial Capability 33 2.3.2.2 Profitability and the CAR coefficient .36 2.3.2.3 Products’s diversity 38 2.3.2.4 Technology Capability .39 2.3.2.5 Personnel Quality .39 2.3.3 Assessment of Agribank competitiveness by SWOT 39 2.3.3.1 Strengths 41 2.3.3.2 Weaknesses 42 2.3.3.3 Opportunities 44 2.3.3.4 Challenges 44 CONCLUSIONS OF CHAPTER 44 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No CHAPTER 3: SOLUTION FOR COMPETITIVE ABILITY ENHANCE OF VIETNAM BANK FOR AGRICUTURE & RURAL DEVELOPMENT 45 3.1 Development orientation of Agribank from 2010 to 2015……………… 45 3.1.1 Overview and geaeral development orientationn of Agribank from 2011 to 2015……………………………………………………………… 45 3.1.2 Specific development orientationn of Agribank from 2010 to 2015 46 3.1.3 Competitiveness strategy orientation from 2010 – 2015…………46 3.1.3.1 Strengthening financial power: fund source 46 3.1.3.2 Improving and developing network as well as branches .47 3.1.3.3 Other solutions 47 3.2 Some proposed solutions to improve the competitiveness of Agribank 3.2.1 Apply SWOT analysis to provide solutions to improve the competitiveness of Agribank .48 3.2.2.1 Promote strength to take advantage opportunity 48 3.2.2.2 Develop opportunities to overcome weakness .49 3.2.2.3 Usage strengths to lessen the danger .49 3.2.2.4 Overcome weakness to lessen the danger .50 3.3 Group capacity building measures within the Agribank 3.3.1 3.3.2 3.3.3 3.3.4 3.3.5 3.3.6 Improving asset administration .52 Perfecting credit works and preventing risks .52 Diversifying traditional products and developing new product 53 Perfect and develop information technology for Agribank… ….53 Promote human resource strengths……………………………….54 Improve procedures and service quality………………………….55 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No 3.4.Petition……………………………………………………………………… 56 3.4.1 Petition to Vietnamese Government………………………… … 56 3.4.2 Petition with The State Bank of Vietnam…………………… … 58 CONCLUSION CHAPTER 59 CONCLUSION 60 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No DIAGRAM LIST Table 2.2.2.1 The financial situation of Agribank from 2007 to the first quarter of 2010 Table 2.2.2.2 (a) Structure of Agribank mobilize capital from 2007 to the first quarter of 2010 Table 2.2.2.2 (b) Capital mobilization of Agribank period 2007- the first quarter of 2010 Lending by economic sector situation period 2007- to the first quarter of 2010 Table 2.2.2.3 (a) Table 2.2.2.3 (b) The proportion of loans by economic sectors in the first quarter of 2010 Table 2.2.2.4 (a) Sales of payments in the frist quarter of 2010 Table 2.2.2.5 (a) Sales of remittance payment period from 2007 to the first quarter of 2010 Table 2.2.2.5 (b) Number of ATMs from 2006 to 2009 Table 2.3.2.1 (a) Equity, total assets of commercial banks to 31/12/2009 Table 2.3.2.1 (b) The domestic commercial banks owned by foreign partners Table 2.3.2.2 (a) The financial ratios of commercial banks in 2009 Table 2.3.2.2 (b) Ratio of income charges and interest on the total income of some commercial banks Table 2.3.3.3 (a) Summary of commercial banks key products 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No ABBREVIATIONS ICB Incombank TECH Technological and Commercial Joint- stock Bank BIDV Bank of Investment and development of VietNam VCB Vietcombank ACB Asia Commercial Bank ATM Automatic Transfer machine IT Information Technology L/C Letter of Credit ODA Official Development Assistance POS Point of Service SMS Short Message Service WTO World Trade Organization USD United State Dollar VND Vietnam dong AFD French Development Agency OECD Economic Co-operation and Development WEF Wold economic forum INTRODUCTION The imperative thema 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No To make thema of re-structure system of joint-stock commercial bank and state commercial bank persuade to Decision of Prime Minister in 2001 With becoming an 150th official member of WTO on November 07th, 2006, until now Vietnam commercial banks have executed a lot of solutions to well complete the Project of Prime Minister, solutions of improving their competitive ability such as increasing charter capital, re-structure liability, clearing balance sheet, renewing administration, improving human resource quality, investing technology … In addition, foreign banks makes inroad into Vietnamese mark and also commitments of opening door in bank zone in integrative process is more nearly These make competitions between Commercial banks in Vietnam is more and more heated and fierce Vietnam bank for agriculture and rural development is also a part of this policy and general trend Although Agribank has advantages that is compared with others, Agribanks has disadvantages, and also is facing to difficulties and challenges To take full of Agribank’s advantages which are based on determining the disadvantages and opportunities which are given by WTO, Agribank can overcome the challenges Author chose the thema “Solution of improving competitive ability of Vietnam bank for Agriculture and rural development in the integrative trend” to study is met the urgently demand of Agribank in the currently period Target of study - Systematization of basic problem of competitiveness and competitive ability of Commercial bank, factor influence on competitive ability and evaluation norm about competitive ability of a commercial bank - Analyse and evaluate the advantages, disadvantages, opportunities and challenges of Agribank, then evaluate competitive ability of Agribank to be compared with other commercial banks - Give solutions and proposal to improve competitive ability of Agribank in the integrative background Object of study - Basic theories of competitiveness and competitive ability of Commercial bank - Trends in competitiveness of Commercial banks and real state of competitiveness ability of Agribank in the 2003-2007 period – Solution and offers to improve the competitive ability of Agribank in the integrative background Scale of study Activities of Agribank Main contributions of Thema 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No Thema’s results could contribute in addition part and systematization of reasonings about competitiveness and competitive ability, general competitive trend of Commercial banks in the nearly future time, evaluation the advantages, disadvantages, opportunities and challenges of Agribank, giving the solutions which improve competitive ability of Agribank, making reference material for professional study and learning Study’s method Thema uses two main study’s method as follow - Method of Statistics - Method of comparative analysis, aggregate analysis Structure of thema Besides the introduction, conclusion and list of reference material, the structure of thema is chapter, include: - Chapter 1: Concept of competitive ability of Commercial bank in the integration background - Chapter 2: Real state of competitive ability of Agribank in the integration period - Chapter 3: Some solutions of improving competitive ability of Agribank in the integration trend CHAPTER 1: BASIC THEORY OF COMPETITIVENESS AND INTEGRATION INTO INTERNATIONAL ECONOMICS 1.1 Competitiveness and competitive ability 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No Terms “Competitiveness” and “competitive ability” are used popular, repeated on economics forums and also on the mass media, have studying circles involvement, and are analysed from different aspects However, until now there are a lot of different opinions about competitive ability based on grades: nation, business and product Now there has not any theory which completely persuade of this problem, so there is no “standard” theory of competitive ability Therefore, to give this concept in reasonable way, need to list some theories of competitive ability and competitiveness at home and abroad 1.1.1 Concept of the theory of enterprise’s competitiveness and competitiveness concept Term “competitiveness” is currently used normally in many fields such as economics, trade, law, politics, military, ecology, sport; is repeated usually on professional books and newspapers, economics forum also on mass media and is interested in by many objects from many different aspects Exspecially, in the market economy, competitiveness is not only a normal phenomenon, but also has a important meaning for developing economy in nations Study of competitive phenomenon is started early with famous schools such as classical competition’s theory, new-classical competition’s theory and modern competition’s theory In this situation, competitiveness change from antagonistic view to competitive ness, based on cooperation, competitiveness doesn’t mean annihilation each other, eradication In the real state, methos of modern competitiveness based on quality, design, price and supportin services competition As competitors are so much, annihilation for other competitors is a complex problem Competitiveness of an enterprise is the strategyof a bussiness with their competitors at the same sector 1.1.2 Role of competitiveness Competitiveness has a important role in commodity production in particular and in economics in general Competitiveness has not only positive impacts, but also negative impacts 10 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No because it is meant that the fund source of commercial bank Therefore, Agribank should pay attention to increase fund source by some methods as following: Increase fund source from internal source (profit, income), issue long term bond, issue conversion band … It is necessary for Agribank to increase the fund source however it is not the only decisive factor for the success of the bank On the other side, it is not effective without good management & business Therefore, it is important that the bank must specify the number of fund to compensate for risks as well as chose appropriate method to rise the fund source and ensure financial power & competitiveness ability of Agribank 3.1.3.5 Improving and developing network as well as branches With the network allocated in the shape of Vietnam, Agribank must ensure quality and effectiveness of network; therefore, in order to improve its strengths, Agribank must: - Inspect and supervise the network as well as branches - Attack special importance to license for new branch and deal establishment based on the comprehension and harmony among branches of Agribank ATM service has known as one of the most effective branch, therefore, Agribank has focused on expanding and improving ATM system as “ miniature bank” allocated in cities and provinces as well as populous area Moreover, network for international payment of foreign bank must be fast, effective and safe In the line with expanding branches, diversification branches in the deal plays an important role in the competitiveness of products and services It is meant to be diversify for client choice, reduce expenses & increase profit In the coming time, Agribank should focus on branches such as: - Phone Banking - Internet Banking - Mobile Banking - Call – Center 3.1.3.6 Other solutions - Broadcast trade mark through small factors such as: uniforms, notebook of all staffs to inside decoration, transportation mean, uniforms color 46 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No - Make correspondent relation between Agribank and other banks, organizations in the domestic and foreign area to promote strengths and take full advantages of strengths of Agribank and supply its products to other banks, diversify services especially salary payment through ATM card 3.2 Some proposed solutions to improve the competitiveness of Agribank 3.2.1 Apply SWOT analysis to provide solutions to improve the competitiveness of Agribank OPPORTUNITIES (O) THREATS (T) -Sustainable and high -Competitiveness is economic growth & happened fiercer and fiercer economic growth is in the financial and banking considered in the sector in the domestic future banks and foreign banks S -International -There are more and more W economic integration competitive between O is created for VN comptitiors about T approach with high technology, ability technologies and - Competitiveness with the experiences from different finance advanced nations institutions about products around the world such as: insurance -Sustainble polictical companies, financial situation leasing groups -More market - Uncontrol the fluctuation potentiality of foreign currency -Financial and credit - Unconsistent policy system policies of Vietnamese espencially in the Government is to financial,banking and credit better sector -Rapid IT -Unsafety in technology development security and weak -Diversification in the awakeness of local people banking sector about electric commercial 47 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No -Shortage of experinced and ability human resources and effect to competitors STRENGTH (S) -Agribank network has known as the biggest bank about scale and quantity so Agribank can have abudant market and create favourable conditions for its development path - Agribank has known as the leading bank in the State Bank of Vietnam which has sustainable market place with the abundant clients from rural to urban area -Agribank is considered as one of the strongest trade mark in Vietnam -Agribank is increasingly developed by supporting of Vietnamese Government and International Organazations COMBINE (S-O) Usage strength to take advange of opportunity: * Market development and penetration strategy - Take full advanages of network to expand market, products & services and meet the market demand Confirm the position and affirm Agribank trade mark by product and service quality - Take advnages of supporting of Vietnamese Government & International Orgazanizations to approach the cheaper fund source and advanced technology of developed countries COMBINE (S-T) Usage strength to lessen the danger: * Concentration strategy depend on difference - Strengthen the finance power to ensure the current and long time competitiveness ability of Agribank - Study the service product development to meet the demand of clients and create the differences in the competitiveness 48 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No in the world WEAKNESS (W) -Limited in investment (only in agriculture, forestry and fishier area) -Control under the Vietnamese Government -Weakness in management mechanism and backward thought in leading staff -Backward infrastructure and technology -Ineffectiveness in R&D works COMBINE (W-O) Deploit opportunity to overcome weakness Overcome weakness to take advantage of opportunity *Cooperation expanding strategy COMBINE (W-T) Overcome weakness to lessen the danger * New product development strategy * Image broadcast strategy * Management capacity improvement strategy * Human resource training strategy These above analysis of SWOT mode can give some methods to strengthen competitive ability of Agribank as following: 3.2.2.4 Promote strength to take advantage opportunity: In the context of our remarkable economy in the world, it is necessary for Agribank to promote strengths to take full advantage of current and future opportunities such as: Firstly, Agribank has known as the first bank in any area in Vietnam, thus, Agribank has focused on expanding network to develop market, products and meet the demand of clients Secondly, Agribank trade mark has known as one of the strongest and most prestigious bank in the banking sector Therefore, Agribank has paid attention to confirm its position and affirm its trade mark as its competitiveness Thirdly, Agribank is supported from Vietnamese Government, sponsors and international organizations; thus, Agribank has taken full advantage those support to approach cheap fund source as well as advanced technologies in the world 49 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No 3.2.2.2 Develop opportunities to overcome weakness : In the context of compound and deeply integration, Vietnamese economy has many new opportunities in general especially in banking sector and in Agribank in particular One of the methods which is to make cooperation and expanding unite, help its to approach to advanced and modern technologies as well as advanced management method in the world In addition, it is necessary for Agribank to take advantage of advanced technology to create modern and useful products to meet the demand of clients 3.2.2.3 Usage strengths to lessen the danger: In the banking sector in general and in Agribank in particular, that is a question that what to and how to by strengthens and weaknesses and at the same time Agribank must take advantage of market opportunities overcome challenges In order to confirm like this, Agribank should focus on strengthening financial power to ensure competitive power of Agribank Thus, Agribank can develop new technologies, better infrastructure, improve furniture and ensure the effective business activity Take full advantage of supporting of Vietnamese Government and other organizations in the world to expand network, develop new products and services to meet the demand of clients, create the differences to rise competitiveness, lessen dangers 3.2.2.5 Overcome weakness to lessen the danger: The major weakness is the barrier in the competitiveness in the banking sector in general and Agribank in particular Thus, it is necessary to overcome weaknesses and change its to opportunities and strengthen the competitiveness power in the development path It is necessary for Agribank as following: Fristly, diversifying service products, improve service quality based on the advantage of network, building new products development strategy Secondly, improve and better the role of management in the banking business activity such as: asset management, rish management, human resource management… Thirdly, enhancing human resource based on staff education and training with the new theory and understand the role of clients in the development of bank 50 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No Fourthly, always bettering salary system, reward system and recruitment to attract good human resource and ensure that the staff have enough management capacity in the current and future period Finally, one of the most important factors is to give development policies and strategies to develop and broadcast trade mark and image of Agribank in local market as well as in international market 3.3 Group capacity building measures within the Agribank 3.3.1 Improving asset administration It is necessary to have asset administration in the bank because it is affected the bank’s success such as liquidation, profit, price competitiveness Thus, in order to strengthen asset administration, Agribank must: : - Perfect and speed up report works, ensure the report’ effectiveness - Build and apply the asset administration mode Confirm and affirm the position of asset administration - Combine harmoniously among credit risk administration – asset administration 3.3.2 Perfecting credit works and preventing risks Credit works always have risks, so in order to prevent and lessen the danger of credit, Agribank must apply solutions as following: - Analysis and evaluate exactly the number of lending client is one of important method in investment expressed through ways:  Evaluate legal capacity of clients  Evaluate business and production management ability of leaders: The leader in the enterprises plays an important role and decisive factor in the success or failure of business process  Evaluate financial capacity of enterprises and firms  Evaluate infrastructure and technology of enterprises - Dispense risks: It is conducted by risk distribution among investors such as no concentrate capital into a client or investment Therefore, Agribank must focus on to diversify loan types as well as investment field 51 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No - Study socio-economic situation: Currency situation is related to built credit policy This method is armed to give loan policy to ensure the safety for investment activities of Agribank - Grasp client risk information - Strengthen inspection and audit in internal field which is armed to prevent and treat timely breaks in business of enterprises and Agribank At the same time, in order to protect Agribank before law, Agribank must inspect closely the legal base before making coospondent relation between Agribank and other firms 3.3.3 Diversifying traditional products and developing new product a) Product diversification - Deposit: In order to attract new clients and maintain current clients more than other banks, mobilization of fund source must be become more and more flexibly and conveniently At present, EURO cash has become more and more popular and high price in the market and on the other hand, a few of banks in Vietnam has paid attention to mobilize EURO cash Therefore, Agribank must focus on developing and applying the new mobilization method by EURO cash - Loan: There are still remained many problems in the loan procedures, thus, Agribank must simplify the loan procedures and meet the demand of types of client especially clients have deposit at Agribank - Diversification of types of card: In spite of strengthening traditional cards, Agribank still gather to develop more and more types of card to improve card competitiveness as well as meet the increasing demand of customers b) Apply some new products - Automatic investment account: For customers who have many remaining and investment It is easy to note that customers must register a limit and dead line and Agribank will automatically change this amount to other account having limit and higher interest - Account with preferential interest: For customers have the big remaining in the long time and the account holders have no use money in account and high interest about 2.1%/year 52 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No - Develop oversea national currency change payment services at home At present, in order for customers to receive currency change through Agribank, they must go to Agribank to receive while other banks such as Dong A Bank, VIB have already apply this service at home In order to strengthen competitive capacity in this sphere, Agribank must take full advantages of Agribank – online technology and all branches to apply this service - Asset maintenance and strongbox rent Although this service has been more and more popular in the developed countries and countries in area, there are ANZ & HSBC banks to supply this service for customers with the highest fee in Hanoi and Sacombank with the reasonable fee in HCM City in Vietnam and it is ensured that this service will bring the profit for Agribank - Apply deposit service through ATM (Automatic Deposit Machine) One of the function of automatic transition system is deposit function called ADM machine Although the automatic transition system was applied years ago, almost banks has only focus on to apply AM service and never known the ADM service Beside of function of AM such as look up account information, good –service payment, service information,… the ADM system has function as automatic deposit function so customers not go to bank to deposit and spend a lot of time to procedures 3.3.5 Perfect and develop information technology for Agribank The technology basic is evaluated as the advanced technology in the our country and high products is creased However, to apply information technology in Agribank is complicated process, spending a lot of time and fee, Thus, Agribank must: - Improve and develop new products based on modern technology including personal account and VAT service such as salary payment, service bill copy, investment products: asset administration, automatic investment administration, capital administration, connected cards, accumulate save service, insurance save, loan products and develop other useful functions of ATM ., - Strengthen the training works, standardize about IT ability, for all staffs of Agribank from the leader to staff It is considered as the priority due to information technology development and management for competitive capability of Agribank 53 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No 3.3.6 Promote human resource strengths Human resource has known as one of the decisive factors in the operation of an organization in general and Agribank in particular In the modern life, human resource has become more priority than others Although Agribank have large human resource in the banking sector, the human resource quality administration works of Agribank still remains many difficulties as following: - Firstly, the quality of Agribank human resource is not balance about ability There are many members who are not update and difficult for them to meet the increasing demand of customers in the banking sector - Secondly, the recruitment mechanism of Agribank in the past time is not opened in public or not suitable for real situation - Thirdly, the salary and allowance of Agribank is still lower than others In order to overcome limits, Agribank must carry out some followings: Built the standard system of each staff as position, requirement, and ability to meet the demand of development requirement Due to of specialize of each works, Agribank has to determine responsibility and work to have salary policy and attract more staffs Yearly inspection in each increasing salary to ensure that Agribank always has the human resource with all abilities and apply the mechanism of elimination in human resource to remain the good staffs and meet the competitive market In addition, Agribank has to focus on the responsibility and rights of labors by policies such as: training investment, creation for labor environment, salary and allowance according to encourage labors, diversification skills and insurance 3.3.7 Improve procedures and service quality In the line with product diversification, improve procedure and service quality play an important role, in the past time, Agribank has conducted the procedures for customers However, Agribank should be simplified procedures and standardized all staffs to built effective in the Agribank system (ISO) 3.4 Petition As above analysis, there are many objective factors outside of banking management to affect to the development of dealer banking service Therefore, Agribank is needed to support from Vietnam Government, State Bank of Vietnam and related others 54 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No 3.4.2 Petition to Vietnamese Government The concern of Vietnamese government plays an important role in every filed because of creation of tax support, legal documents, socio-economic policy 3.4.1.1 The Government creates a legal barrier for banking business At present, there are still remained many limits in policies of State Bank of Vietnam for the development of dealer banking service and In order to make a new product, All regulations about procedures makes banks meet many difficulties in solution for custormers Enterprises and individuals use banking transactions, preferential tax management for enterprises which has a high transaction rate, unacceptable large expendencies or transaction without banking … In order to increasing competitive position of domestic commercial bank, besides the their effort, state management agencies should make adequancy legal barrier, creat a good conditions for dealer service to develop Related to civil agencies between borrower and lender This civil relation is expressed through clearly and transparency regulation in the obligation of borrowers To have a new product, banks have a lot of state of submittion and permission, … To develop the dealer bank, it is necessary to have a adequancy, united, simple regulation and understand easy, ensure the client benefit Especially, function agencies should be the leader in using the products, services of Dealer bank such as Card products, salary system by account … Objective view, nowadays policy environment is evaluated inadequancy, isn’t good conditions for developing Dealer bank Although Government increasingly reform policy, banks still operate backwards, overlaped, inadequancy legal environment and even many banks want to reform must break the law It is necessary for government to support and create mechanism to help banking sector develop State bank has a guideline in increasing necessary owner capital to expand network from 20 billions/branch to 70 billions/branch is a difficult problem for banks which want to expand rapidly network At present, Commercial bank hope to help from directlly preferential mechanism such as: buying good position, enjoined the preferential tax, support banks with lower expandencies in popular, normal, propaganda, broadscast,… In addition, Government need to set up regulationn to support banking sector such as issue the Civil law regulation, Instruction document of Civil law, Land law have detail regulation to protect of borrower’s rights At the same time, legal execution agencies must pay attention to solve conflict, support, help 55 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No bank to give back the overdue debt Besides, in the market, need to set up re-sell and –buy market It is the sub-market for consumption lending such as re-selling car, motorbike, appartment market In the line with WTO integration, Regulations of banking activities must edit orientation with the internationalization as followings: Edit the statistic law, update new regulations of banking service by computer Study and expand for the decision No 44/2002/QĐ-Ttg about electronic vourcher and sign such as need to have organization to take responsility to save vourchers, and issue regulations about usage code in the banking sector Payment by cash has become more and more popular in the dealer service of banking sector in the recent time and the Government needs to issue legal documents to riskes and have penalty mechanism to violation of card 3.4.1.2 Have policies to improvement Maintaince the sustainable political economy, maintaince reasonal inflation index, encourage foreign investment, develop services and industry, increase the income for people is to help dearlers to spport In addition, the Vietnamese Government must focus on to strengthen to non-cash payment as in salary payment through ATM card, develop the automatic selling machines 3.4.1.3 Creation of modern technology environment Due to the low development of technology in Vietnam than nations in the world, the Vietnamese Government needs to pay attention to develop infrastructure and technology, strengthen trechnology transition of advanced nations and have strategy in training in the information technology The development of Post and Telecomunication is the basic for Commercial Banks to modernize technology and develop banking services On the other hand, the fee of phone and internet is not expensive as the way to attract people using service Therefore, the development of Post and Telecomunication is an important step in the national economic development strategy 3.4.2 Petition with The State Bank of Vietnam As a bank in the banking sector, the State Bank of Vietnam plays an important role in the development orientation of banking service, propose the supporting policies for new service of Commercial Bank According to the law of credit organizations, the 56 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No Commecial Bank of Vietnam can carry out many banking services to diversify dearler service 3.4.21 Better policies and mechanism to improve and deploy new banking service Baesd on the national law, it is necessary to perfect legal documents under law of commercial banks and creat conditions for commercial bank in the operation in the integration period The legal documents will be orientation for the technology development or edit with the technology development, ensure safety of deployment modern banking services Issuing the banking management mechanism is to create conditions for the development of dearlers of commetcial Banks Commercial Banks will have responsibility to receive the fee as commercial principals 3.4.22 Maintainace the orientation and leading strategy in the deployment of dealer services of Commercial Banks In order to banking service into the local people life and creation the banking transition, each Commercial Banks must be approved of the State Bank of Vietnam The State Bank of Vietnam must control development strategies of banking dealers of Commercial Banks in the small scale to ensure the harmony in the department and ensure the profit for each bank as well as create healthy competitive environment The general orientation of the State Bank of Vietnam is going to help Commercial Banks update the fastest finance information in many spheres and avoid investment in one field for example: in the card field, it is necessary to establish Vietnam Card Institution in the State Bank as a management organization, a payment center among banks The banking development strategy department must improve the role to ensure the only state management in the currency and credit of The State Bank 3.4.23 Banking technology modernazation The State Bank of Vietnam is to be the leading bank in the banking technology modernization especially in non-cash payment and improvement of payment means and service quality It is necessary to have supporting policies for Commercial Bank in investment, cooperation and lending fud investment in infrastructure and banking technology modernization In this field, the banking information technology department plays an important role in study and choice of advanced technologies and sortware products in 57 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No the domestic and international market to consultant and orientation for Commercial Banks CONCLUSION CHAPTER In the integration and change of the economy, above proposals to improve competitive capacity of Agribank from the reality of Agribank Many solutions of improvement of competitiveness capacity of Agribank in the integration which has been given, seemed to be not enough for each especial solution It is the basical foundation of for development orientation and each especial solution for the development of Agribank in the future CONCLUSION International economic integration is the indispensable and compulsory way for Vietnam in the development path Vitenam has also entried economic organizations and institutions in the world such as : ASEAN, ASEM, APEC, Amerca – Vietnam Trade Convention and WTO Therefore, it has also brough many opportunities and 58 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No challenges in the banking sector in general and Agribank in particular In the low departure point and restructure, there are many shortcomings compared with modern banks desprite of the remarkable success In the integration, competition is considered as the indispensable way of each organization, in order to competitive in the domestic and international market, Agribank must try the best to improve, strengthen financial capacity, management skill and human resource quality, and apply modern technology to diversify and develop new products, strengthen trade mark in the domestic and international market In the line with limit in many fields, we are mentioned some methods to perfect and improve competitive capacity of agribank based on strengths, weaknesses, opportunities and chanllenges, in relation between domestic banks in the integration period Due to limit about study time as well as others, there are still shortage of shortcomings in the studing process Please, hope to hae more ideas of board and all members in class to better this study REFERENCE Competiveness in the banking sector, commercial support project II, Report of regulations related to competiveness in the banking sector of Vietnam 15 Dec 2006 by Ministry of Commercial and European Committtee Lê Thị Vân Anh (2007) “Competitiveness capacity stratergy of Commercial Banks VN to contribute the economic development in the integration” 59 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No Bùi Thị Kim Hạnh (2006) “ Competitiveness capacity of the Bank of Investment and Development Vietnam solution” Micheal E.Porter, Competitive Stratergy (1996), Hanoi Technology & Science Public House Nguyễn Thị Thanh Huyền (2006), “ The banking sector after integration into WTO http://www.vneconomy.com.vn The State Bank of Vietnam, Project of banking sector development to 2010 and orientation to 2020 and some report http://www.sbv.gov.vn Statistis Institutions (2008), Yearly statistic 2007 http://www.gso.gov.vn 8.Banking report in 2006, 2007 2008 Banking technology in 2007, 2008 10 Annual report in 200, 2005, 2006, 2007 of commercial bank 11 Report of bunisess operations of Agribank in 2007 and 2008 12 Some website of Commercial Bank: http://www.acb.com.vn; http://www.sacombank.com.vn; http://www.eib.com.vn; http://www.bidv.com.vn; http://www.vcb.com.vn; http://www.dongabank.com.vn; http://www.icb.com.vn ; http://www.vbard.com.vn 60 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No ... ADVANCED MBA PROGRAM (Glass) | Group No ABBREVIATIONS ICB Incombank TECH Technological and Commercial Joint- stock Bank BIDV Bank of Investment and development of VietNam VCB Vietcombank ACB... Company IFC Sacombank ANZ Bank Dragon Financial Holdings and International Finance Company 10% 8.73% 34 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No IFC 6.96% Techcombank HSBC 20% VP... transfer / services remittances AGRIBANK 3 5 ACB 21 13 15 12 20 VIETCOMBANK 5 5 13 SACOMBANK 12 11 11 21 24 37 2010 | GLOBAL ADVANCED MBA PROGRAM (Glass) | Group No (Source: Website of the bank) Despite