Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (59)

CAPSTONE PROJECT REPORT SOLUTIONS TO PROMOTE THE ADMINISTRATIVE WORK TO IMPROVE BUSINESS EFFICIENCY OF THE BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - VINH PHUC BRANCH UNTIL 2012 CONTENTS Cover bye Page Table of contents List of tables General Introduction Chapter I: General theories of management and business efficiency of commercial banks 1.1 The main activities of commercial banks 1.1.1 Defining commercial banks 1.1.2 Basic activities of commercial banks 1.1.2.1 Creating capital 1.1.2.2 Using capital 1.1.2.3 Intermediary services 1.1.3 The basic characteristics of bank business 1.2 Business management of commercial banks 1.2.1 Concept of business management 1.2.2 General business management of commercial banks 1.2.3 Key contents of management of commercial banks 1.2.3.1 Strategy management of business in commercial banks 1.2.3.2 Organization management of commercial banks 1.2.3.3 Human resource management 1.2.3.4 Capital assets and debts management 1.2.3.5 Assets management 1.2.3.6 Management of financial results 1.2.3.7 Marketing Management of Commercial Bank Chapter II: Status of management and business performance of Bank for 9 9 11 13 15 16 16 16 18 18 24 28 31 33 36 40 44 Investment and Development of Vinh Phuc 2.1 The process of foundation and development of BIDV of 1Vinh Phuc 2.1.1 Some common features of the local 2.1.2 Situation of the competitors of Vinh Phuc Development and Investment 44 44 53 Bank: 2.1.3 Characteristics and the formation of Vinh Phuc development and 56 investment bank: 2.2 Business management operation in Bank for Investment and Development of 57 Vinh Phuc 2.2.1 Structure organization model of Bank for Investment and Development 58 of Vinh Phuc in the recent years: 2.2.1.1 Strong points 2.2.1.2 Weak points 2.2.2 Orientation of business strategies, build and carry out business plans 2.2.2.1 Strong points 2.2.2.2 Weak Points 60 61 62 67 67 2.2.3 Status of human resources and human resource management at BIDV of 68 Vinh Phuc 2.2.3.1 Advantages in human resources management work recent years 69 have affected to business efficiency in the branch 2.2.3.2 The limitations in administrating human resource affecting 70 business performance: 2.2.4 Status of products and services, status of technology and marketing in 71 BIDV Vinh Phuc 2.2.4.1 Products and services in BIDV of Vinh Phuc 2.2.4.1.1 The Advantages achieved in the development of 72 72 products and services 2.2.4.1.2 Drawbacks and weaknesses of the products and 73 services 2.2.4.2 About technology applications in banks 2.2.4.2.1 Advantages 2.2.4.2.2 The weaknesses in technology 2.2.4.3 Status of Marketing in the branch of the Bank for Investment and 74 74 75 75 Development of Vinh Phuc 2.2.4.3.1 The advantages achieved in marketing 2.2.4.3.2 Defects and disadvantages in the current marketing 75 76 work 2.2.5 Status of management of assets liabilities, assets and business 77 performance in BIDV branches in Vinh Phuc 2.2.5.1 Status of managing debt assets and assets 2.2.5.2 Status of financial management and business performance 2.2.6 Conclusions drawn from business administration in Vinh Phuc 77 85 86 development and investment bank Chapter III: Solutions to promote the work of governance to enhance business 88 efficiency of BIDV Vinh Phuc in the coming years 3.1 Operational aims and goals of bank for investment & development incoming time 3.1.1 Operational strategies of BIDV (Bank for Investment & Development of 88 88 Vietnam) up to 2012 3.1.2 Socio-economic development goals of Vinh Phuc for the term 2006 – 89 2010 3.1.3 Goals of Bank for Investment & Development of Vinh Phuc 3.2 Solutions to motivate administrative working and promote business efficiency in 90 91 vinh phuc bank for investment & development 3.2.1 Plan for mobilizing capital 3.2.2 Credit plan 3.2.3 Plan of credit quality and deal with the bad debt 3.2.4 Service plan 91 93 94 94 3.2.5 Plan for enlarging network and distribution channel: 3.2.6 Plan for training: 3.2.7 Plan for developing human resource 3.2.8 Plan for developing and apllying information techlonogy: 3.2.9 Management administration, business administration: CONCLUSION REFERENCES 96 96 96 97 97 99 101 LIST OF TABLES Diagram Table 1.1 Table 1.2 Table 2.1 Table 2.2 Generalization of model of strategic management Sample general revenue cost structure of commercial banking SWOT analysis model The natural areas and population of Vinh Phuc province in 2008: Synthesis of business registered non-state enterprises still the end of 2008 Table 2.3 Total number of DDI investment projects in Vinh Phuc accumulated to the end 7/2008 Table 2.4 Total number of projects with foreign investment divided into industrial zones (IZ) to the end of 2008 Table 2.5 The implementation value of economic sectors, Vinh Phuc until the end of 2008 Table 2.6 Structure of the economic sectors in Vinh Phuc province from 2000 to 2008 Table 2.7 The production value of the Vinh Phuc economic sectors from 2000 to 2008 Table 2.8 Foreign currency and VND loans of all the credit organizations placed in the area of Vinh Phuc from 2004 to 2008: Table 2.9 Market share of the credit organizations in the area of Vinh Phuc province from 2004 to 2008 Table 2.10 The debt of the economic sectors till the end of 2008 the university in the territory of Vinh Phuc Map Overview of the apparatus and networks of Vinh Phuc Development and Investment Bank Table 2.12 Colligate 3-year development strategy (2007-2009) Bank for Investment and Development of Vinh Phuc Province Table 2.13 Colligate the implementation of annual business plan Table 2.14 Situation of cadres and annual structure of cadres of the Bank for Investment and Development of Vinh Phuc Table 2.15 Comparing growth of some targets in the Bank for Investment and Development of Vinh Phuc Table 2.16a Table of summarized assets in 2007 Table 2.16b Assets summary table in 2008 Table 2.16c Table of assets summary, predicted 2009 Table 2.17 Income and expenses in years (from 2006 to 2009) Investment banking and development in Vinh Phuc Page 19 37 42 44 47 48 49 50 51 52 54 55 56 59 63 64 69 69 78 80 82 85 GENERAL INTRODUCTION The necessary of the topic Vietnam's economy after years of reform has achieved high achievements of development, but still belongs to the level of the developing countries Vietnam's regional and international integration requires Vietnam businesses to change quickly in order to step by step meet the activity economic environment in general practices With banks that request is being set out urgently to step by step achieve the necessary level to take the initiative and actively develop as Vietnam integrating with the local regions and the world Bank for Investment and Development of Vietnam is one of the leading stateowned commercial banks in Vietnam today In the recent years, with the economic conditions gradually renovating and opening section by section which may be considered as a disadvantage, the bank of investment and development of Vietnam has achieved many significant achievements, continuous grown in scale, raised the level of technology, raised capacity in activities and business, raising management control capacity as well as working capacity of career staff employees, leading in the commercial banking system in Vietnam in the implementation of modernization the bank thus the capacity of banking operations has increased, efficiency of business operations has increased, contributed to economic and social development After Vietnam integration, activities of the bank has many inadequate manifestations, the banking activities which representing the practices of local regions and the world are the pressing issues those have been set out urgently As a unit member of the Bank of Investment and Development of Vietnam, Bank of investment and development branch of Vinh Phuc is facing the same pressing issues On the other hand, consider the work from the perspective of business management, bank of investment and development of Vinh Phuc is to continue developing and stabilizing the organization structure, implementing and improving bank technology level; improve product development, improve their staff level and improve efficiency of banking operations in fields as well as plan activity strategies for the next years But all those issues need to be analyzed and considered in terms of scientific theories, about the internal and external environment to propose main solutions to improve the performance and development efficiency of the bank of investment and development of Vinh Phuc in the coming years From that request the authors have chosen the topic " Solutions to promote the administrative work to improve business efficiency of the Bank for Investment and Development of Vietnam Vinh Phuc Branch until 2012" as studying topic Purpose of the research: - Systematize some theories about management to the commercial banks as an enterprise operating business - Analyze internal factors of the bank such as: the characteristics of the organizational structure of commercial banks Issues in technology, banking products and services, requirement about the operation degree of the banking officers, - Analyze the business environment of the bank in previous years so far and in the future - Based on that evaluate the real situation of Bank for Investment and Development of Vinh Phuc recent years, recognize the limited aspects in comparison with the requirements and demands of banking operations From which offer the solutions to implement to improve the efficiency of business operations of the bank from now to 2012 Object and scope of research: Subjects: Actual status of the management and organization of the bank of investment and development of Vinh Phuc Scope: The issues related to the management operation of the branch bank of investment and development of Vinh Phuc through practice analysis along with some content related to general activities of the Bank of Investment and Development of Vietnam, the economic and social situation and the operation environment of banking in the province of Vinh Phuc The importance of the topic - To systemize and contribute to the development of theories in management of the branches of commercial banks - Analysis of activities and business management status of the bank of investment and development of Vinh Phuc in recent time and objectives to be achieved to afford the requirements of increase in efficiency in the coming years - Offer some major solutions for business management of bank of investment and development of Vinh Phuc in order to improve business performance in the coming years Studying methods - The topic uses the secondary and primary sources as follows: Gather data through the sources such as newspapers, internet, business departments, internal documents, and the documents from the state management unit - Interview the Board of Directors of the bank, the deputy and head of office and staff to collect information - Using statistical methods, methods of comparison, analysis, synthesis and other relevant methods to sum up, analyze information and data Topic structure Outside of the introduction, conclusion and list of references, the topic includes three chapters: • Chapter I: General theories of management and business performance of commercial banks • Chapter II: Status of management and business performance of bank of investment and development in Vinh Phuc • Chapter III: Solutions to promote the work of governance to enhance business efficiency of BIDV Vinh Phuc in the coming years CHAPTER I: GENERAL THEORIES ON ADMINISTRATION AND BUSINESS PERFORMANCE OF COMMERCIAL BANKS 1.1 THE MAIN ACTIVITIES OF COMMERCIAL BANKS 1.1.1 Defining commercial banks Bank is an organization that receives deposits and lends money In the U.S the term banks including the banks as commercial banks, saving and loan companies, the credit unions By law of credit organizations in Vietnam, the term bank is a type of credit organization that is capable of executing all banking and business related According to the characteristics and working objectives the banks include: commercial banks, development banks, and banks of investment, policy banks, cooperative banks and other types of banks Commercial bank is one of the financial institutions with function of capital accruing from excess point to where in short Some definitions of commercial banks often used are: According to economists: Commercial banks are financial intermediaries which have a business license of the government to lend money and open deposit accounts, including the type of deposit based on which can be used as check As the law of the Vietnam credit institutions defined: Commercial banks are enterprises established under the regulations of law to currency business, banking services with content of receive deposits and use credits, providing services of payment The above definitions have shown some basic functions that commercial banks undertake, relatively distinguish with the functions of other financial centers 1.1.2 Basic activities of commercial banks Activities of commercial banks in general can include the main business: Create capital, use of capital, intermediary services and business professional 1.1.2.1 Creating capital Commercial banks are business organizations and they business in the field of money like any other business enterprises, with which creating capital is the first factor and for commercial banks the funds decide scale and efficiency of banking operations Capital structure of banks include * Capital of the bank itself including: + Charter capital The primary capital which is initially formed as the business (bank) established That capital would be granted if it is a state-owned commercial bank (State-owned enterprises) or contributed by the shareholders if it is a joint-stock commercial bank Charter capital depends on the size of the bank's business and it decides scale of operation, scale of mobilization and scale of investment credit as law defined + Supplement capital Parts of the owned capital those increased during operating process by excerpting from business profit, the reserve fund, the interest which is not divided to shares or the increase in the contribution of the shareholders Capital of the bank itself is mainly used to purchase fixed assets, labor tools, expand operation network, technology and banking technique development, invest capital in joint venture business Own capital proceed as a precaution to buffer against risk as well as a base to maintain the rate of guaranteed safety in banking operations * Mobilization of idle capital in the society: This is a capital account for a large proportion of the total business capital of commercial banks Commercial banks conduct mobilization of capital by forms such as: open accounts of payment deposit (current accounts) term deposits accounts (deposit accounts), residential saving, release bonds, promissory notes from banks By opening accounts of term and non-term deposits or distribute certificates of debt (savings cards, promissory notes, bonds ) commercial banks carry out capital mobilization of momentary idle fund from the people, businesses and organizations in the economy to create capital for their operations With this capital, the commercial banks have to pay interest to depositors on the principles of longer term has higher interest rates and the fluctuation of market rates Mobilizing the idle capital in society is a very important profession of the commercial banks, it contains many elements to compete of commercial banks and creates a major source of capital as well as the competitiveness and direct influence to business performance of commercial banks * Borrowing capital: In the operation process, using capital, the commercial banks may excess its own and mobilized capital, to guarantee liquidity of commercial banks, then the 10 objectives have been implemented regularly to ensure that right business direction The activities and professional in the branch is always based on the assessment, review and analysis to make appropriate decision and handle situations in order to achieve and optimize business performance Management levels in the branches are often interested in their organization task, direction and administration to achieve its results in each aspects serving for overall business results However, viewed from the business management perspective, through the specific expression of every professional field, it revealed the defects in management work As a result, professional objective is yet enough, unincorporated with the real situation, untapped almost potential, a number of unbalanced targets Activity operation organizations not meeting the necessary requirements causes lack, has not reached the necessary quality level requirement of bank service products in the staff apparatus, network and organizational apparatus Those have limited business efficiency, not yet made optimal business efficiency and not created the resources and the necessary potentials in order to improve efficiency in the coming years Viewing from the business management perspective, it requires adjustments by solutions to enhance further business efficiency in the branch 88 CHAPTER III SOLUTIONS TO MOTIVATE ADMINISTRATIVE SERVICES AND IMPROVE EFFICIENCY OF BANK FOR INVESTMENT AND DEVELOPMENT OF VINH PHUC INCOMING TIME 3.1 OPERATIONAL AIMS AND GOALS OF BANK FOR INVESTMENT & DEVELOPMENT INCOMING TIME: 3.1.1 Operational strategies of BIDV (Bank for Investment & Development of Vietnam) up to 2012: Subjecting to business strategies of banking industry, BIDV has planned threeyear aims and solutions for 2010 – 2012, in accordance with BIDV restructuring route for the term of 2007 – 2009, including: operating comprehensive reorganization and stable development, maintaining high growth rate, traditionally serving investment and development, improve the quality of products and services, making system security effective as required by the market mechanism and integration As result, BIDV soon becomes the core factor to establish a general and stable financial corporation for international integration, and in addition to state-owned commercial banks, efficient to serve the national currency policies and socio-economic development according to line of promoting industrialization – modernization in the country The target customers of the Bank for Investment and Development of Vinh Phuc are the foreign-owned medium and small enterprises, private enterprises and individual enterprises Fundamental goals by 2012 are as follows: - Annual average total assets’ rate of growth increase 25% - Total assets by 2012: 150,000 billion dong - Internal capital by 2012: 7,000 billion dong - Indicator ROA: 0.5% ROE: 10.5% By 2012: 85% staffs have university degree, 30% have fluent English skills at work, 60% have enough qualification to access and make use of technology application programs in banking 89 Goals of the route up to 2012 are to: give a shakeout in finance, strengthen organization and management machinery (design an organization model subjecting to establish a multi-functioned financial corporation for international integration, staff training, enhancing quality and qualification); modernizing banking technology (design processes ISO 9000, standardize information system of administrative management, apply and carry on banking modernization programs TA2) Solutions applied to implement these: • Combine designing and implementing annual business plans and three-year development plan for 2010-2012 • Restructure assets • Promote domestic capital mobilization • Apply solutions to increase internal finance • Implement management model innovation • Deploy technology plans and programs • Take care of spiritual and material life for employees 3.1.2 Socio-economic development goals of Vinh Phuc for the term 2006 – 2010: The 8th Provincial Party Committee Congress has set out objectives as follows: Promote seriously the local potential and strength exploitation, utilize all the provincial internal and external resources, enlist any assist from the Central, attract investment of domestic and foreign economic sectors, push the pace of economic growth, strongly motivate the economy to the structure of industry - agriculture and forestry – services - Annual average economic growth rate obtained 14 – 14.5% - Total export turnover in the area achieved 380 million USD - Economic structure: + Industry - Construction: 58.4% + Services: 27.3% + Agriculture – Forestry – Marine products: 14,3% - GDP per capita: 1,100USD - Investment mobilization for the whole social development: 44 - 45 thousand billion dong - Trained employee rate: 40 - 45% - Rate of poor households less than 10% (according to new standard) - Ten key socio-economic programs of the province in the next years: 90 • Program to transform economic structure in rural agriculture • Program to afforest 6,000ha and protect existing forest • Program to develop handicraft industry • Program to construct new urban and rural area • Program to develop central resorts • Program of population, employment and poverty reduction • Program to develop technology and environment sciences • Program to educate, train and retrain staffs as well as improve professional skills of employees • Program to prevent criminals and social evils • Program to strengthen organization and machinery arrangement of political system 3.1.3 Goals of Bank for Investment & Development of Vinh Phuc: Subjecting to strategic orientation of BIDV up to 2010 and 2012 Combine banking operations with socio-economic development goals of Vinh Phuc Province in term of 2006 - 2010 At the same time, the demand to construct Bank for Investment & Development – Vinh Phuc Branch is to guarantee increasing business efficiency, for safe and stable operation incoming time The branch’s fundamental objectives in threeyear plan for 2007 – 2009 and strategic orientation by 2012 are as follows: • Total active assets increase average 23.7%/ year • Total account outstanding for loans increase average 28.4%/ year • Mobilized deposits increase average 27.9%/ year • Pretax profit increase average 32.6%/ year • Overdue debt averages: < 2%/ year Until the end of 2008, on the area of Vinh Phuc province, there are 2,444 enterprises; in which: Joint Stock Companies: 447; Ltd Companies: 1,380; Private enterprises: 441; Other: 176 With the professions: Construction, Producing building materials, processing industry, commercial business, The enterprises mainly locate in Vinh Yen city, Phuc Yen, Yen Lac, Vinh Tuong, Tam Duong, Estimating until the end of 2009, the numbers of enterprises open the accounts at the branch are 750 enterprises, mainly Ltd Companies and the Private Enterprises, 91 main professions are: Construction, Producing building materials, pharmacy, food for cattles, packing, in which the biggest loan debt belongs to group of the companies under Vinh Phuc Group with the loan rate making up 30% of total debt of the branch (data is taken based on separating Phuc Yen Branch), with the main producing field is building materials In recent time, the group of Vinh Phuc companies is the biggest customers of the branch However, directing to a stable market with low risk rate, customers have ability to implement more than one banking services, medium and small enterprises, private enterprises, individual enterprises will be the major customers of the branch in the coming time Branch construction with medium sized as local commercial banks Step by step promoting operational and business efficiency in two trends: Keep improving activity quality, human is centric factor, enhance working and administrative qualification of staffs and employees, establish competitive organization machinery and network Keep expanding banking service development, improve technology skills, meet almost the demands of customers and enterprises, in every economic sector, inside or outside the country, for banking services Maintain and keep developing customer system with motto ‘Sharing opportunity, successful cooperation” Business administration is the leading factor, which organizes and guides other business operations in the whole branch Promoting active ability and improving competitiveness, the bank ensures each step until its qualification enough to integrate with regional and worldwide banks 3.2 SOLUTIONS TO PROMOTE THE ADMINISTRATIVE WORK TO IMPROVE BUSINESS EFFICIENCY OF THE BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - VINH PHUC BRANCH UNTIL 2012: 3.2.1 Mobilizing capital: - General target: taking care to promote the growth speed, capital mobilization in the area, self-control on capital resource to invest and develop, strive to 2012 total of capital mobilization resource will meet 100% demand of credit investment Exploit well big capital resource, cheap price of units, organizations in the area such as: State Treasury, Ensurance, Post Office, Electric Power, Water Supply, - The specific policies: + Having the encouraged, preferential policies on interest, fees, promotion based on the general effective calculation, ensure the benifit of both parties These policies 92 need to have the clear mechanism, active promoting ability of the staff and grasped thoroughly so that each staff is a propagandist, a counselor to the customers + Give varied methods of mobilization, flexible schedule and suitable interest to attract, encourage the customers to come to the bank - The specific solutions: * To the Enterprises, Economic Organizations, Social Organizations, Units, it is necessary to maintain and enlarge the transaction points with the motto: Each customer comes to transact will be a good opportunity for business operation + The customers have and have been transacting need taking care with the suitable policies on the basis of evaluating the trust, general efficiency of each customer through the credit relationship, using payment services, export and import, foreign currency, sent money, developing service of paying salary to support capital mobilization Get information and the happening in the transaction process timely to have remaining and checking solutions, exploiting maximum development opportunity of the products to the customers + Enhance marketing, research, take advantage of the relations to attract the new customers, especially the potential addresses, projectors, management board, the project out of the directly under the management campuses + Focus on coordinating professional parts related directly in taking care of customers to establish relationships of reliable attached partnership Through the trust of these customers opening more new customers efficiently Strengthening implementation of revenue management for large customers having credit relation to support capital mobilization * To resident capital mobilization: + Strengthen to promote the trademark, photos of BIDV in the area and in largescale resident and state staff; add more raising capital transactions, consolidate and upgrade tasks and functions and facilities, the working media in the transaction places creating position, trust with the customers Improve customer care capabilities of each trading member Having open, enthusiastic, attentive attitude, skills of resolving the problem quickly and exactly, consultancy ability and listen to the ideas of the customers to adjust suitably and find the new opportunity in the business activities + Maximizing the utility of the modernization program to increase the ability of using the products of capital mobilization with high utility in accordance with the 93 diverse needs of customers + Flexibility in implementing interest rate policy to ensure competitiveness, flexibility and diverse forms of mobilization to attract large-scale of resident transacting through extending personal accounts, collecting money at home ATM service Ensure that each time, the product of capital mobilization of BIDV having competitiveness by far + Strengthen and improve marketing, advocacy and advertise policies of capital mobilization and bravely develop services supporting for the capital mobilization, especially in developing ATM services to expand personal account of resident and civil servants Determine to maintain market share in the province ≥ 20% and the ability of self-controlling capital in business over 100% loans 3.2.2 Credit: - General target: Growing outstanding loans coupling with credit secure and business efficiency, but also capture the opportunities to grow in credit size reasonably, maintain market share of branch in the province of Vinh Phuc - Specific solutions: + Follow closely the program of orienting economic development of local and strategic objectives of the sector to choose investments in the right direction effectively Take advantage of the opportunity to attract investment to the province to access feasible projects in industrial zones Particularly, taking care to have opportunity to select customers in the Binh Xuyen industrial area, Khai Quang industrial area, enhance the operating scale But, in the allowing condition, should be active in growth speed, ensure the safety and establish the sustainable customer relationship + Coordinate well between credit developments with service development on the basis of achieving general efficiency Exploit the maximum supply of deposit and service of each customer Implement well structural safety norms by direction of the Central and target plans of the branch about lending in short-term, medium and long term, lending with the mortgage, foreign-owned lending Reflect truthfully the quality of each credit, as a basis deduction for reserve risk and safety management activities Promote the advantages of the regional branches, transaction offices to expand the residential lending, consumer lending combination of raising capital and expanding services and promoters 94 + Strictly follow the guidelines of the Centre about the solutions of credit safety Strengthening inspecting and controlling before, during and after procedures of the loan, to comply with the provisions of law, limit loans Frequently, classify the customers, evaluate the effectiveness to have policy of appropriate behavior and solutions Interest mechanism ensures common, at the allowing difference and allow interest + Advance credit management skills, business analysis, exploitating and processing information, negotiating skills, the consultancy ability in the staff through concentrated training of the Centre and training in place, the workshop exchanging experiences Specially, pay attention to manage the cash flow relating to sales targets, payable loans, receivable loans, inventory, sales of loans, sales revenue avoid increasing debt to offset the debt of the enterprises 3.2.3 Credit quality and deal with the bad debt: - General target: Not to increase the overdue debt and bad debt including the absolute and relative numbers - Specific solutions: + Strictly control loans beginning from the stage of receiving documents, project evaluation to borrow and use the loan, not to generate more bad debt, overdue debt + Limit lending, actively recover debt to the group of customer in the group of bad debt from group to group + Regularly, monitore and follow to get more stick and exploit every opportunity to collect processed debt, reduce risks in credit activities + Deduct the DPRR Fund as the regulation 3.2.4 Service: - General target: + Targets for product quality: Strengthening and expanding and improving the quality and utility of available products and services on the basis of exploiting maximum application capabilities of information technology Each product and service of BIDV must always have difference in the area about the policy, mechanism and style, quality of the services Particularly, focusing on marketing through many different channels that are interested in periodical direct marketing to each customer area + Target on the service products: Enhance the development of traditional baking 95 service product such as: guarantee, transfer, import and export payment, Overseas national currency exchange payment, foreign purchasing; quickly enlarge and control the market to the high social products, new products such as ATM card, service of paying salary for the companies, enterprises, staff, forcibly apply the modern products using in the domestic and foreign markets such as: POS, VISA CARD, MASTER CARD…, make the active position when integrating and competitiveness with the credit organizations in the area - The specific solutions: + Need throughout the guidance thought: Promoting effectively overall credit operation and banking services to combine growth in scale, market share and quality of credit and exploit maximum demands of other banking services of each customer In the conditions that are favorable for credit growth, and the need to use banking services will be expanded in the business activities of enterprises and residents Thus, in addition to directing key interest credit activities as a basis to develop the overall focus should be directed drastic product developing services to create the high sustainable development and pictures of BIDV, the customers transacting are organizations and individuals + Beside solutions continuing to upgrade the quality and expand service products such as: the guarantee, remittance payment, import and export payments, foreign currency trading Must urgently dominate the market to high social banking services through opening the individual accounts, providing services in ATM at the banking transaction centers, commercial centers, large industrial area in order to attract noncash payment in the future and effectively support the work of raising capital Forcibly use, get familiar with modern products and services, facilitate competition in the integration The services of messaging account, Homebanking, evaluate and consult investment projects, pay attention to develop to support other services Interest in expanding market share and improve services in the area, raising revenue and the proportion of net service revenue / profit before tax + Strengthen tasks of advertising and marketing products and services, improve customer focal point of international payments, foreign currency trading on the basis of improving the quality of the product on time, accuracy, procedures and policy charges likely to encourage competition and customers Policy of service fee must foster business contract and other overall efficiency 96 - Meet the demand of foreign currencies to customers to maintain and keep the market share, position in the business 3.2.5 Enlarging network and distribution channel: - General target: Enlarge the network at the key economic regions of the province, crowded residential areas to enlarge loan, enhance capital contribution and develop the banking services Opening more transaction points ensuring the general business efficiency, saving and suiting to the conditions of the branch about human, material bases - The specific solutions: preapre well the material bases, human for the operation of the transaction rooms, transaction points operating well as soon as opening 3.2.6 Training: - General target: Enhance management level for the key staff, train and retrain the staff to meet the deman of professional duty given Make good condition for the staff taking part in studying politic theory, improve the professional degree to implement better and better the business task of the branch – The specific solutions: + Appoint the staff to take part in the training course on profession held by Bank for Investment and Development of Vietnam + Organize to train in place for the staff of the branch + Encourage the staff to self-study, research to improve the professional degree such as: Completing university, the second degree, Master’s degree,… 3.2.7 Developing human resource: - General target: Build professional staff who are willing to take the duty and implement the given tasks - The specific solutions: + To the available human resource: Frequently consider, evaluate the result of the task as the capacity, strong points, quality to arrange the suitable jobs On that basis, choose to train the key staff + Recruiting more officers must be on the basis of work New recruited staff on the basis of competitive examination to select the staff with professional qualifications, capable of matching many different jobs Gradually improve the quality of professional staff in the branch, plans to recruit must be a step ahead compared to the demand of using staff having time to get acquainted with the work + Training task: 97 Enhance responsibility of training in place of the key staff through guiding the professional skill, control strictly, implement determinedly the process at the first time Frequently hold the fair about new issues, complicated issues, create the opportunity to study each other to gain the experience Enhance and improve the traning method, transmit professional knowledge lively and associated to the practice Invite the experts to train the staff + Construct standards of classifying the employees, classifying collection, consistent, group suitably with the nature of work, development requirements to encourage emulation strive to overcome difficulties to complete the tasks and the overall development capacity, sense of responsibility, style, quality of staff Based on the correct assessment of the ability and dedication of employees to motivate, reward and arrange the work on time Regularly pay attention to all audience on needs of spiritual life, love, leisure, entertainment, 3.2.8 Developing and apllying information techlonogy: - General target: + Increase supply capacity of products and services with high quality + Support information of business management continuously and timely for all levels + Ensure the safety when the system operates - The specific solution: + Timely deploy software application program deployed by the Bank for Investment and Development of Vietnam + Do well the the task of report information, serving the task of the executive direct of the branch leaders + Prepare well material bases, training staff to deploy on time the new service products of Bank for Investment and Development of Vietnam 3.2.9 Management administration, business administration: - General target: - The specific solutions: + Management, executive management: assign the task clearly ensuring each focal point, each implemented task has a charge, the responsible person Before deploying to the staff, the responsible person under the clue, the work must be fully recognized, deep thoughts, hope in the direction of the leadership 98 + Work of business administration, plan management: Always stick to evolutions of quality criteria and performance indicators, targets of key activities Direct and manage each period on the basis of plan targets and assigned specifically to each unit, take plan targets assigned as a metric assessment of the tasks for each period, each year Objective to achieve in the work of business administration at the branch is to develop safely and sustainably + Strengthen and promote the role of monitoring and controlling tools to evaluate, monitor and analyze activities to predict timely and prevent, limit risks and violations, maintain discipline century legislation to ensure proper implement as the law, regulations and processes allowed limitation Based on tested monitored results have the plan to study, supplement the knowledge about laws, policies and regimes for civil servants + Promote the emulation reward and associate the results of emulation and reward with income distribution, make motivation to strive to each individual 99 CONCLUSION In business activity of enterprise, including commercial banks, on the whole, business administration play a very important role which aims at carrying out proposed objectives, and in most situations, it decides the success or failure of an enterprise To improve the effect of business activity with the point of view of business administration, series of matters both argument and practice ones are shown in many enterprises as well as commercial banks From the operating practice in recent years of Vinh Phuc Investment and Development Bank, a new branch is set up and initially approaches bank activity which follows market mechanism, this requires business administration organizing at branch be order and discipline, scientific The theme “Solutions for improving administration to enhance business effects of Vinh Phuc Investment and Development Bank” has analyzed following contents: - Systemizing and developing arguments about business administration of commercial bank on the ground of the most general concept about commercial bank and its professional competence; showing the arguments about commercial bank business administration to create general awareness of business activity necessary for branches of commercial banks - Analyzing, evaluating the real operation situation of Vinh Phuc Investment and Development Bank’s branches from the point of view of business administration and business administration activity in recent years Basing on the practice data of operation in recent years in some fields of other commercial bank branches to acknowledge objectively and specifically the business administration matter in branch of Vinh Phuc Investment and Development Bank - The Capstone project report has mentioned to necessary detailed and direct solutions for applying management at branch of Vinh Phuc Investment and Development Bank, to some extent, these are the solutions to improve the business management and improve the business of branch of Vinh Phuc Investment and Development Bank - Some petitions to the State, local authorities and State Banks, Vietnam Investment and Development Bank administrators: The main matters are creating a necessary legal environment for commercial bank operation as well as its branches for 100 the development of bank system and create the essential flexibility for the competition in market mechanism - Within the limited framework of the Capstone project report, scope of searching time as well as the limits of writer, besides, banking business management in market mechanism is a large and new question, this Capstone project report can not avoid the shortcomings I respectfully look forwards to the suggestion of National Economy University, teachers of Center, experts and colleagues for a better essay to measure up to requirement of theory in commercial banking business management especially for the factual applying to strengthen the business of Bank for Investment and Development of Vinh Phuc 101 REFERENCES Settlement report Vinh Phuc development and investment bank in the years; 2006 – 2009 business plan implementation assessment report Action Program of Vinh Phuc State Bank; 3-year 2010-2012 plan and the of the annual summation of Vinh Phuc Province State Bank Strategies and plans of Vietnam development and investment bank Weekly magazines : - Vietnam State Bank magazines - Academy Bank- training bank- scientific magazines Curriculum of business administration National Economy University - the center The statistic Publisher 2001 Development Economy Department, Hanoi institute distribution, Ho Chi Minh National Political Institute Statistics Publishers 2001 Business plans in Vinh Phuc development and investment bank in 2006, 2007, 2008, and 2009; 3-year plan 2010-2012 What people not teach you at Harvard Business Colleague MARK MC Cormack Statistic Publisher Statistical Yearbook 2008, Vinh Phuc Province Vinh Phuc Statistics directorate Statistic Publisher 10 General Manager job Training program of business administration master at Harvard American business school National politic publisher 11 Commercial banks - Edward W Read, Edward K Gill Ho Chi Minh Publishers 1993 12 XIII Vinh Phuc Party Resolution 13 Social economic development method and annual social economic implementation assessment report in Vinh Phuc province (from 2006 to 2008) 14 Banking monetary and financial markets Frederic Misshkis Hanoi technical and scientific Publisher 15 Lecture volume on business management in Vietnam Development and Investment Bank Vietnam Development and Investment Bank in 2001 102 ... defending the country and a vibrant culture Until now, the land of Vinh Phuc's still dark mark on the Kinh Bac, Hung Vuong, Thang Long culture, the culture of its excellent time, the scientific panel,... Xuyên IZ + Khai Quang IZ - In the industrial clusters (IC) + Hương Canh IC + Hợp Thịnh IC + Đồng Văn IC + Tân Tiến, Đại Đồng IC Apart from industrial zones, industrial groups Including: Industrial... 496 234 176 91 47 17 12 58 36 13 262 218 44 239 147 91 47 92 64 28 257 87 29 17 12 58 36 + Đồng Văn IC +Tân Tiến, Đại Đồng IC 13 II Apart from industrial zones, industrial groups 170 Including: