THEORETICAL FRAMEWORK ON FDI ENTERPRISES AND
FDI enterprises
An enterprise is an economic unit established to carry out business activities for the purpose of profitability
According to the amended law on enterprises of our country in 2014:
Enterprises are economic organizations with their own names, assets, stable transaction offices and business registration in accordance with the provisions of law for the purpose of implementing business activities
According to the Institute for Statistics and Economic Research of France (2004): An enterprise is an economic organization (agent) whose principal function is to produce goods or services for sale
FDI can be understood in English as Foreign Direct Investment However, the definition of FDI enterprises in Vietnamese law is still unclear and inconsistent
According to the Law on Investment (2005): FDI enterprises are foreign- invested enterprises, including enterprises established by foreign investors to carry out investment activities in Vietnam or Vietnamese enterprises which are share- purchased, acquired, or merged by foreign investors; in which, foreign investors are foreign organizations and individuals who spend capital conducting investment activities in Vietnam
According to the Circular No 213 of the Ministry of Finance issued in 2012, FDI enterprises are enterprises established by non-Vietnamese nationality individuals operating under foreign laws or enterprises established and operating under the law of Vietnam with 100% foreign capital or member fund, or individual stock investment companies which the foreign party is entitled to own 49% of chartered capital
According to the Decree 01 issued in 2014 by the Government, FDI enterprises are enterprises in the following cases:
- Being an organization established by non-Vietnamese nationality individuals
- Being an organization operating under foreign laws or an enterprise established and operating under the law of Vietnam with 100% foreign capital
- Being an organization established and operating in Vietnam with a foreign capital contribution of over 49%
From different definitions of enterprises and FDI enterprises, the main characteristics of enterprises in general and FDI enterprises are summarized as follows:
Figure 1.1: Characteristics of FDI enterprises
- FDI enterprises are organizations and units established mainly to carry out
A group of people with organi zation and hierarc hy
Combi nation of produc tion factors (input factors )
Prod uctio n for sale (outp ut factor s)
Cause harm to the enviro nment
- FDI enterprises are large-scale business entities (exceeding the size of domestic enterprises, individuals, households) such as cooperatives, companies and factories The term “FDI enterprises” is conventional to distinguish with independent workers or workers and their households
- An FDI enterprise is a living entity Therefore, it also has its own life cycle from the beginning of its intention, decline or growth, ups and downs or destruction
To sum up, FDI enterprises are large-scale business entities which carry out business activities Due to their large scales, their demands for products and services of commercial banks are also much higher than those of other enterprises.
Satisfaction of FDI enterprises towards the products and services of
1.2 Satisfaction of FDI enterprises towards the products and services of commercial banks
1.2.1 Concept and measurement of satisfaction
Customer satisfaction is the state/ perception of customers towards the service providers after using the services (Terrence Levesque & Gordon H Mc McDougall, 1996)
Oliva, Oliver, and Bearden (1995) argue that customer satisfaction is the task of an organizational expressed through the relationship between the values of the products or services and the customers’ expectations towards them
Parasuraman et al (1988) and Spreng et al (1996) point out that customer satisfaction is a customer’s reaction to the difference between the known experience and expectations That is, the customer's experience in using a service and the results after the service is provided In other words, customer satisfaction is the customers’ mood, perception of the products when their expectations are met or exceeded during the life cycle of the products or services Satisfied customers will be loyal and continue to use the products of the organization
Zineldin (2000) states that customer satisfaction is the emotional response/ perception of a customer to a service provider on the basis of comparing the difference between what they receive and what they expected
According to Forbes (2008), satisfaction has a positive impact on the following activities: Loyalty, Share of wallet, Word-of-mouth and cost efficiencies
Kotler (2000) argues that satisfaction is determined by comparing the results obtained from the service and the expectations of the customers on the following three levels: If the results are less than expected, customers will be dissatisfied; If the results are as expected, customers will be satisfied; If the results are more than expected, customers will be very satisfied and enjoy the service
Meanwhile, Susmita Sharma (2002) states that customer satisfaction is associated with the following factors: Feelings / attitudes towards service providers;
Customer expectations about the ability to meet the needs of service providers; Service performance/ values provided by the service; Intention to continue using the service
Based on the concepts of customer satisfaction above, the author defines the satisfaction of FDI enterprises towards banking services as the attitudes and perceptions of FDI enterprises towards the quality of products and services that commercial banks provide Commercial banks always strive to improve the satisfaction of customers in general and FDI enterprises in particular in order to increase the number of FDI enterprises using products and services provided by the banks
Methods of measuring customer satisfaction towards banking services
- Measure regularly to collect information from each customer when delivering products and services This measurement method helps to capture customers’ opinions right away and make timely corrections to inappropriate points
- Research periodically to collect information from different customer groups at different time periods after delivering products and services This measurement method captures customers’ expectations and experience but is not regular
- Directly measure key customer groups: This method is conducted through interviews, meetings with key customer groups of commercial banks The main tool chairperson A variety of survey questions and issues to be discussed will be arranged in a logical sequence The chairperson uses instructions to suggest participants to express their opinions and experience as many as possible However, the chairperson must ensure that the discussion does not go into other direction
- Measure by questionnaire via mail This method is very convenient for customers because they can control the contents in the survey form, so they are often more willing to respond Also, clear and specific question will make it easier for them to answer
If the questionnaire is longer than one page, the response rate will be lower
So it needs to be well presented to attract customers’ attention and not make them boring
The organization must better prepare the customer database so that it is easy to recognize and identify the type of customers that needs to be sent
1) The process of providing and consuming banking services takes place simultaneously
The process of providing and consuming banking services is carried out simultaneously Especially, there is direct participation of customers in the process of providing services At the same time, each service follows a certain process that can not be divided into different types of services such as appraisal procedures and loan procedures This means banking services can not be stored but areprovided directly to the customers on demand Therefore, banks often create, maintain and develop relationships with customers and other banks by improving the quality of services, developing customer care activities of the bank staff and modernizing the supply system to create the special characteristics of these services
2) Banking services are unstable and uncertain Banking services are not heterogeneous The services are closely linked to the process of service delivery of commercial banks Therefore, the quality of banking services depends on service transaction staff (qualifications, skills, etc.)
Moreover, with the same service transaction staff, the quality of banking services sometimes changes over time
(3) Banking services are unstorable The banking services of commercial banks are invisible and therefore can not be stored Meanwhile, the demand for services often fluctuates but but the banks can not produce and store when the demand suddenly rises For example, the services of payment and money transfer at the end of the year are huge, but the banks must increase their means as well as human resources to ensure the most effective transactions Therefore, the costs of banking services must be relatively high to meet the needs and satisfaction of customers
4) Banking services are invisible This is the main characteristic to distinguish banking services from the services of other material industries in the national economy Banking services can not be seen, felt, heard before buying them like any other services Customers coming to the banks can not know for sure whether their money is safe or not or whether the payment to them is on time Therefore, to overcome this limitation, the business of the banks must be based on trust The operations of the banks must focus on strengthening and creating trust to customers using services by improving the quality of services, increasing the visibility of services, increasing the banks’ images, prestige and facilitating customers to participate in propaganda activities for the banks
1.2.3 Research models of customer satisfaction towards the quality of commercial banks’ services
This is the most common research model on service quality used in marketing research According to Parasuraman, service quality can not be determined in general but depends on customers' perception of the service and this perception conseidered on many factors The success of the model is a great breakthrough for economic organizations in general and commercial banks in particular to apply to improve their service quality The quality assessment must be based on the perception of customers who use the services of the bank
The SERVQUAL model is built based on the perceived service quality which is the comparison between the expected values and the values perceived by customers
The SERVQUAL model considers two key aspects of service quality including service result of and service provision which are studied through 22 scales of five criteria: Reliability, responsiveness, tangibles, assurance, and empathy
Figure 1.2 SERVQUAL model of customer satisfaction
Experience in improving the satisfaction of FDI enterprises of commercial
1.3.1 Experience of some commercial banks
Recognizing the importance of FDI enterprises with sustainable development of banking business, Vietcombank has paid great attention to the access and cooperation with FDI enterprises Accordingly, in order to improve the satisfaction of FDI enterprise customers, Vietcombank has applied the following measures:
Vietcombank is the first bank to set up the department of Japan Desk, which specializes in providing banking products, services and support for Japanese corporate custmers operating in Vietnam The Board of Directors of Vietcombank has recruited highly skilled staffs that are knowledgeable about the banking industry and specific needs of FDI enterprises, fluent in foreign languages to help these customers overcome the barriers of language and culture when trading at Vietcombank
Satisfaction of FDI enterprise customers
Through its cooperation program with the Japan Bank for International Cooperation (JBIC), Vietcombank has signed a Memorandum of Understanding (MOU) with nearly 60 Japanese Regional Banks (JRBs) Accordingly, Vietcombank will be a priority bank in Vietnam serving Japanese enterprises who are customers of these JRBs when they invest in Vietnamese market
Vietcombank has also actively held conferences/ seminars for FDI customers and participated in national and provincial level forums of FDI enterprises to catch up with the actual activities and demands of FDI enterprises in order to provide appropriate advice on the business environment, design and provide new banking and financial solutions to better meet the diverse needs of FDI customers
For Japanese enterprises, Vietcombank has always been active in building and maintaining relationships with the Japanese business community in Vietnam by participating in and coordinating with the JRBs to hold customer conferences, bringing the brand name of Vietcombank closer to Japanese customers and creating trust for customers
In addition, to take advantage of the cooperation with Mizuho Bank and JRBs, Vietcombank has participated in many customer seminars in Japan Through these programs, Vietcombank is known by many Japanese businesses as having a good image, contributing to better promoting the Vietcombank’s brand to foreign markets
VietinBank is the largest commercial bank in terms of chartered capital and assets and is the second largest trading network in the banking system in Vietnam, leading in margin with large and abundant credit portfolio VietinBank is constantly innovating and growing with the goal of becoming a bank with international standards VietinBank's prestige and quality have been highly appreciated and honored by many big organizations in the world such as Forbes, Asia Finance, Asset Tripple, S & P and Fitch, etc Besides, VietinBank has many strategic partnerships with major financial institutions in the world such as Deutsch Bank, International Finance Corporation (IFC) and financial institutions in the region
Accompanying FDI enterprises, VietinBank not only provides specialized financial services and banking products but also diversifies its products and services VietinBank always tries to find solutions to provide customers with most suitable products and services which meet their needs of daily transactions as well as contribute to create the long-term success for customers With a nationwide network and a client portfolio across all industries, VietinBank has been pioneering and serving as a bridge to introduce business partners to many enterprises, contributing to promoting the business of FDI enterprises in Vietnam
In recent years, VietinBank has focused on promoting the growth of FDI enterprises on both width and depth with its good quality of products and services and professional and dedicated staffs The branches in key locations have set up specialized departments to serve FDI business customers, arranged staffs who are skilled and good at foreign language to take care of FDI customers to bring them the most convenience and satisfaction when trading at VietinBank
1.3.2 Lessons for Techcombank - Bac Ninh Branch
From the experience in improving the satisfaction of FDI enterprises from commercial banks in the country, Techcombank - Bac Ninh Branch draws the lessons for itself as follows:
- Establish a specialized department to serve FDI enterprises This department should arrange skilled and professional staffs that are good at foreign languages and have a good knowledge of cultures of foreign countries in order to provide best service quality for FDI customers
- Diversify products and services provided to FDI enterprises combined with providing specialized financial services and banking products: from credit to modern banking services, linking business activities and introducing business partners for enterprises
- Organize conferences and seminars for FDI enterprises in the locality in order to catch up with their actual activities and demands Based on this, design and provide new banking and financial solutions to better meet the diverse needs of FDI customers
- Organize training and retraining courses for staffs who directly serve FDI enterprises Especially, the staff must be good at foreign languages and understand cultures of foreign countries to create the most comfort for customers.
REALITY OF SATISFACTION OF FDI ENTERPRISE
Introduction of Techcombank – Bac Ninh Branch and FDI enterprises in Bac
2.1.1 Introduction of Techcombank – Bac Ninh Branch 2.1.1.1 History of foundation and development
Vietnam Techcombank - Bac Ninh Branch was established on March 25,
2005 and located at 20 Nguyen Dang Dao - Bac Ninh City - Bac Ninh Province
The operation area of the branch is Bac Ninh province where many sectors are being expanded and developed, especially in the field of services This is one of the provinces which have the most industrial parks in the country and attract many FDI enterprises to manufacture and trade in the area Besides, there are many traditional professions which have their place in the foreign market, especially Dong Ky wood village Despite its establishment, Techcombank – Bac Ninh Branch has a well- developed network of 4 transaction offices, including 2 Type I transaction offices and 2 Type II transaction offices, 13 ATMs located at 15 points in Bac Ninh Province The location of the branch is in the center of Bac Ninh City where there are many administrative agencies and industrial parks with bustling trade and service activities However, in such a dynamic economic environment there are many credit institutions with a large network of branches and transaction offices and other non-bank financial institutions creating excitement and fierce competition
Functions: Techcombank - Bac Ninh Branch operates as a commercial bank with the functions of credit intermediary, payment and money creation The functions of commercial banks are closely interrelated, complementary, supporting each other, in which the credit intermediary function is the most basic function, providing the basis for the implementation of the other functions At the same time, when the functions of intermediary payment and money creation are performed well, they will contribute to increasing the credit capital and expanding credit activities for the branch
Tasks: Techcombank - Bac Ninh Branch implements the business tasks assigned by Techcombank including currency trading, credit, payment and banking services and fulfills other tasks assigned by the State Bank and Techcombank
+ Techcombank Bank - Bac Ninh Branch operates in accordance with the direction and strategy of the Head Office, complies with the regulations, internal rules, business measures and policies and technical skills necessary in currency trading activities
+ Applying specific interest rates for each term of deposits and loans in accordance with the demand and supply relationship in the monetary market under regulations of Techcombank
+ Deciding the exchange rates of the purchase and sale of foreign currencies under regulations of the State Bank and Techcombank
+ Signing credit contracts and business cooperation contracts with financial and credit institutions under regulations of the State Bank and Techcombank
+ Being responsible for business results, capital conservation and development, recovery of principal and interest; ensuring the growth of business operations of the branch
+ Selling collaterals and pledges when customers can not pay due debts
+ Being responsible for economic, civil and commitments between the branch and customers; ensuring data security and customers’ information
2.1.1.3 Organizational structure of the bank
The operation model of Techcombank – Bac Ninh Branch is organized as follows:
Figure 2.1: Organizational structure of Techcombank – Bac Ninh Branch
Source: Techcombank – Bac Ninh Branch
Functions and duties of departments:
Manager: Being responsible for directing general business operations of the branch under its competence; manages 4 transaction offices in the area according to the establishment decision prescribed by the General Director of Techcombank
Deputy Managers: Being responsible for implementing tasks assigned by the Manager in their scope and authority
- Advising the manager on the distribution and introduction of products to customers
- Initiatively looking for new customers, looking after and maintaining regular relations with old customers; finding out about customers and exploiting their financial needs to advise and provide service packages as well as the best solutions to meet their needs
- Dealing with questions and complaints of customers when they need
- Advising the Board of Directors on the management and organization of business activities for corporate customers in accordance with Techcombank’s orientation in each period and the current regulations of Techcombank; being responsible for achieving planned targets in each period
- Being responsible for marketing credit, including setting up, expanding and developing enterprise customer system
- Advising the Board Directors on managing and conducting business activities for individual customers at the branch/ transaction offices in line with Techcombank's orientation in each period and current regimes and regulations of Techcombank; being responsible for achieving retail targets assigned by Techcombank in each period
- Preparing and implementing action plans in the direction of the VIP customer division
- Participating in the development of procedures, professional guidelines of VIP customer division
- Supporting and coordinating with the department head to solve the problems of the department
- Advising the manager on the plan of developing human resources in line with specific activities and conditions of the branch
- Monitoring the staff recruitment, organization and training
- Managing laborers, signing labor contracts approved by the manager; setting up rules and regulations to maintain and preserve the corporate culture and working discipline of the branch
- Advising the Board of Directors on the development policy of new banking payment and other professional aspects as required; ensuring the compliance with the regulations and rules prescribed by the State and the industry
- Establishing, maintaining and expanding relationships with customers; market all products and services of the bank
- Providing loans to individuals, micro enterprises; mobilizing capital and providing other banking products and services
2.1.2 Overview of industrial parks and FDI enterprises in Bac Ninh Province 2.1.2.1 Overview of industrial parks
Bac Ninh Province now has 15 industrial parks, an information technology park and more than 30 industrial clusters The total area is 6,847ha with the total area of industrial land planned for lease of 2,138.53ha; the area of recovered land is 1,682.95 ha, and the area of leased land is 1,259.81ha The occupancy rate on the planned area is 58.91%, and the occupancy rate on the recovered area was 74.86%
The names of the industrial parks and specific areas of land in each industrial park are presented as follows:
Table 2.1: Industrial Parks in Bac Ninh Province
Names of Industrial Parks Area (ha)
Dai Dong – Hoan Son Industrial Park 572
Nam Son – Hap Linh Industrial Park 1,000
Source: Summarized from the statistical yearbook of Bac Ninh Province in 2016
According to the statistics, Yen Phong 2 Industrial Park is the largest industrial park in Bac Ninh Province with 1,200 hectares Nam Son - Hap Linh Industrial Park and Thuan Thanh 3 Industrial Pone rank next with an area of 1,000 ha The remaining industrial parks such as Tien Son, Que Vo, Dai Kim, Thuan Thanh, Dat Dong - Hoan Son, etc has smaller areas but has large scale compared to neighboring area In the time to come, Bac Ninh Province will have two more industrial parks concentrated in Ngu Thai and Nguyet Duc Communes of Thuan Thanh District and in Van Ninh Commune of Gia Binh District with a total area of 500 ha
It can be seen that industrial parks attract the most FDI capital in the country
Therefore, the development of industrial parks in Bac Ninh Province shows the potentials for attracting FDI enterprises in the region This is also an advantage for commercial banks located in the area in the strategy of developing the segment of FDI enterprise customers serving the medium and long term objective
FDI enterprises in Bac Ninh Province are mainly Korean, Taiwanese and Japanese enterprises These enterprises have large investment capital and are mainly located in industrial parks in the area The details are presented as follows:
Table 2.2: Locations FDI enterprises in Bac Ninh Province
Type of enterprise Locations Quantity
Yen Phong Industrial Park, Que
Vo Industrial Park, Dai Dong - Hoan Son Industrial Park 297 87,674
Que Vo Industrial Park, Tien Son Industrial Park, Thuan Thanh Industrial Park 104 3,500 Japanese enterprises
Que Vo Industrial Park, Tien Son Industrial Park 93 350
Currently, Bac Ninh Province has totally 654 FDI enterprises scattered in industrial parks in the area In particular, Korean enterprises account for the largest number with 297 enterprises located in Yen Phong Industrial Park, Que Vo Industrial Park and Dai Dong - Hoan Son Industrial Park The FDI capital of these enterprises is 87,674 million USD Taiwanese enterprises also have a large amount of FDI capital of 3,500 million USD, located in Que Vo Industrial Park, Tien Son Industrial Park and Thuan Thanh Industrial Park In addition, Japanese enterprises with FDI capital of 350 million USD, located in Que Vo Industrial Park and Tien Son Industrial Park, also contribute significantly to the economic development of the province
Besides, there are 160 other FDI enterprises in Bac Ninh, including Thai enterprises, Chinese enterprises, etc with a total investment capital of 235 million USD, trading in various fields and making great contribution to the province’s GDP
Overall assessment of the satisfaction of FDI enterprise customers
The number of FDI enterprises using products and services of Techcombank
- Bac Ninh Branch was constantly expanding and increasing over the years
The contribution of FDI enterprises in the total operating income after provision of Techcombank - Bac Ninh Branch increased gradually
The activities of taking deposits, mobilizing capital from FDI enterprises achieved good results and accounted for a large proportion in the operation of the branch
The number of ATMs managed by Techcombank - Bac Ninh Branch was not much but they were distributed equally to create maximum convenience for FDI enterprises using automatic banking services
The competitiveness of Techcombank had been highly appreciated The management of the branch always attached special importance to taking measures to improve the satisfaction of FDI enterprises in capital mobilization, lending, foreign currency trading, card issuance, salary payment via account, and so on
The number of FDI enterprises still accounted for a relatively small proportion in the customer structure of Techcombank - Bac Ninh Branch The activities for attracting FDI enterprises were not effective when the number of customers using the branch’s services was not corresponding to the capacity of the branch and the potential demands of FDI enterprises in the area
Although contributing significantly to total operating income of Techcombank - Bac Ninh Branch, the structure of contributions always fluctuated
The activities of service provision and foreign exchange transaction tended to decrease
The number of ATMs managed by Techcombank - Bac Ninh Branch was low and did not meet the needs of FDI enterprises
The competitiveness of other bank’s branches in the area was quite strong, which became a big challenge in attracting customers in general and FDI enterprises in particular to use the products and services of the branch
The number of customers will surely continue to use the services provided by the branch was not high Being kept waiting to be served made them feel uncomfortable and dissatisfied the service style of the branch
The sharp competition in the field of banking was increasing, especially the competition of foreign banks which had the strength in attracting FDI enterprises
The system of transaction locations of Techcombank - Bac Ninh Branch did not guarantee the convenience for customers: the transaction offices were small; the arrangement of transaction points was not reasonable
The system of equipment and machinery at the branch lacks the synchronous investment The transmission line for the transaction of the branch was unstable The server system was often in trouble, causing interruptions in the transactions of customers
The skills of handling complaints of the branch’s staff were still limited
Most complaints about cultural and language disagreements have not been satisfactorily resolved
The quality of human resources at the branch was still limited Employees at Techcombank - Bac Ninh Branch demonstrated many weaknesses when advising FDI companies with products to implement investment projects in accordance with the law of Vietnam Employees also faced many difficulties in solving problems of cultural differences in communication for enterprise customers, resulting in low transaction efficiency
The time for serving customers was still unreasonable and convenient for
The design of information on transaction documents and related documents of the branch was unclear, causing confusion, mistakes and errors in the process of filling transaction information of customers
Techcombank - Bac Ninh Branch had not actively sent transaction documents to each customer (via letter, mail, etc.) Customers must directly go to the branch to get all documents related to trading and foreign currency transactions
Causes of prestige, image of the branch
The interests of customers were not really concerned when the branch always considered profits as the top priority in its business operations.
SOLUTIONS TO ENHANCE THE CUSTOMER SATISFACTION
Development orientations and strategy of Techcombank - Bac Ninh Branch
Techcombank - Bac Ninh Branch has set up a development strategy for 2017 with the aim of building the branch into a key and modern branch with high efficiency, security, sustainability, healthy finance, high technology and multifunctional business The branch also focuses on expanding and developing retail banking professional knowledge, human resources quality and banking management to reach advanced level which can be competitive in the area With the action motto of sustainable safe and efficient development, the bank aims at competing with Techcombank's remarkable products/ services with specific characteristics of Techcombank, “turning advantages in prestige, technology, human resources and brand into competitive opportunities to quickly increase the scale, and turning challenges and competition into development motivation."
With those orientations, Techcombank - Bac Ninh Branch has proposed the following general orientations for the branch as follows:
- Continue to implement centralized and differentiated strategies in each key area of commercial banking activities (retail banking, wholesale banking, import- export financing, foreign exchange, gold and capital trading); quickly and selectively penetrate into the field of investment banking and project financing; develop financial services rapidly
- Focus on each market segment according to geographic areas, distribution network, and separate customer groups in each market area
- Continue to maintain the speed and focus more on network development and distribution channel diversification to quickly control market share and market
In parallel with the diversification of products, which is identified as the key factor products with dominant features compared to the products on the market to make competitive differences
- Strengthen marketing activities by focusing on PR activities; continue to complete the overall strategy of marketing and PR; implement public relations activities
- Step up capital mobilization from customers of economic organizations and residents; properly structure debt portfolio in order to use capital efficiently; pay attention to the liquidity management of the branch
- Promote the development of the network in order to expand the operation scale and enhance the quality of transaction offices
3.1.2 Orientations for developing FDI enterprise customers
The branch continue the training to improve the staff’s awareness, professionalism and thinking in serving FDI enterprises
Actively upgrade and set up a number of transaction offices in Industrial Zones to serve enterprises in those industrial zones and nearby industrial zones (mainly FDI projects)
With the orientation of becoming a domestic bank with the largest loan market share to FDI enterprise customers, Techcombank - Bac Ninh Branch continuously builds its image, strengthens its resources and focuses on developing the segment of FDI enterprise customers in the potential areas
Continue delivering the message "Techcombank - Companion of FDI enterprises" through internal seminars or series of connection events between Techcombank - FDI enterprises in the area
Create new value for customers through products, services, programs, trade- connection events, conferences, seminars and so on
Focus on FDI groups with: (1) Value chain (sales) in Vietnam, (2) export activities
Study carefully FDI groups doing outwork (garment, footwear, etc.) when granting credit
With the aim of expanding relationship with leaders of relevant departments and creating a database for the branch staff to attract and exploit the list of potential customers in the area, the management team of Techcombank - Bac Ninh Branch has set up a development plan for 2017 as follows:
Unit TD Casa Loan NFI NFX TOI End of 2016 Billion dong
Solutions to improve the satisfaction of FDI enterprise customers at
In order to improve the satisfaction of FDI enterprise customers towards the products and services at Techcombank – Bac Ninh Branch, the author proposed some solutions on facilities, human resources, customer policy, improvement of image and prestige of the bank and some other supporting solutions The proposal of these solutions was based on the analysis results of the reality and causes of the limitations as follows:
Basis for proposing solutions Proposed solutions
Expected results ofter implementing solutions The facilities at the branch are inadequate: Transaction locations do not ensure the convenience for customers (small size transaction offices, not equal distribution of transaction locations); The equipment and machinery lack synchronous
The upgraded facilities of the branch will facilitate the monitoring of FDI enterprise customers’ information as well as the history of for transaction of the branch is not stable; the server system frequently has problems which cause disruption to customers’ transactions information This will help the branch better meet customers’ needs, facilitate the transaction and enhance the satisfaction of FDI enterprise customers
Qualifications, professional knowledge and skills of solving complaints of the branch’s employees are still weak
Many employees are confused in consulting products which help FDI enterprises carry out investment projects in accordance with the laws of Vietnam The employees face many difficulties in solving problems for corporate customers resulting in low transaction efficiency
The improved capacity of the branch’s staff will better meet customers’ needs
Prompt responses to customers’ inquiries will increase the satisfaction of FDI enterprise customers
The customer policy of the branch is not complete: The time for serving customer is not reasonable; The design of information on the transaction documents and related documents of the branch is unclear and confusing causing misunderstanding and errors in the process of filling customers’ transaction information At the same time, the branch has not sent the transaction documents to each customer (via letters, e-mail, etc.)
FDI enterprise customers will be more satisfied with the policies and service of the branch, which will improve the sales of services and attract more customers
The image of the bank is not well- known when the interests of customers are not really taken seriously; the branch always considers its profit as the top priority in its operations
Enhancing the prestige and image of the branch
The branch will be widely known, which will attract FDI enterprises as well as enhance the satisfaction of this group of customers
3.2.2 Contents of solutions 3.2.2.1 Enhancing investment in facilities
The system of modern equipment and technology is the lever for developing modern banking products and services, reducing risks and increasing operational efficiency For Techcombank - Bac Ninh Branch, the transformation and modernization of software has not been implemented synchronously The system of facilities and technologies still exist a number of limitations, namely:
The departments of customer service and loan management have to keep track of information about FDI enterprise customers, loan records manually without direct access by employee codes
The browsing of borrowing history of customers is time-consuming because the system does not automatically collect general information such as the history of overdue loans, extension or adjustment of loan term of each client but having to find information from the loan account
For credit limits with multiple loan accounts, seeking information will take a long time, especially for data a long time ago
Therefore, to improve the satisfaction of customers in general and FDI enterprise customers in particular, Techcombank - Bac Ninh Branch needs to enhance the facility system, especially technological capacity through investment in the development of banking technology
The branch should focus on building the system of internal information through internal network; automate business operations; invest in upgrading a modern, synchronous, stable information technology system in order to step up the development of services on the basis of applying advanced and modern technologies
Develop the system of banking information; enhance the exchange of information with FDI enterprises via website with full information translated into many languages and updated continuously on the status of general activities of the branch, new information and products - services have been and will be provided to customers
Implement projects on improving and upgrading security network, data security,
Increase investment and develop the system of transaction and payment channels that the branch has deployed to FDI enterprise customers such as ATM, Telephone Banking, Home Banking and mobile payment service to make it easier for FDI enterprise customers to sign up for new services, look up information and check their balance At the same time, this transaction system must be built on the basis of security and safety
Invest in and update advanced and modern technologies and machines so as to suit the reality of the sector; develop and apply advanced information technology to improve the infrastructure for banking products
The development of strong human resources is the key issue deciding the success or failure of an organization Therefore, it is necessary to improve the quality of human resources both in terms of expertise, professional skills and experience Currently, Techcombank - Bac Ninh Branch has organized specific training courses for employees who work with FDI customers However, these training courses are not actually effective The new employees have almost no basic training but mostly self-taught by experienced employees Therefore, it is difficult to avoid the habits and mistakes of the old Thus, in order to effectively train human resources, the branch must organize a basic training program for all new employees
In addition, Techcombank - Bac Ninh Branch needs to continue to build plans for human resource training based on actual needs, in which training carried out with each specific operational requirement, each FDI enterprise; step by step improve the quality of training on the basis of combining basic theory and practical practice
Recommendations
To attract more FDI enterprise customers of Techcombank - Bac Ninh Branch, the barriers to access products and services of these enterprises need to be removed In which, the stability and favorableness in the legal environment and business environment are the key factors to enhance the transactions between commercial banks in general and Techcombank - Bac Ninh Branch in particular and FDI enterprises Therefore, it is necessary to have timely actions of the State agencies, namely:
Regarding the operation of FDI enterprises
- The State should create a healthy and equal legal framework to encourage production and trading and create a solid legal corridor so that all economic units are confident in capital investment The State should apply the following measures to attract foreign investment:
+ Review, amend and supplement policies on investment and business; issue incentives for investment in a number of domains; take measures to promote disbursement
+ Publicize the approved planning; speed up the ground clearance for investment projects
+ Review, adjust, approve and announce infrastructure plans up to 2020; mobilize maximum resources for investment in infrastructure development; enhance the competitiveness of the seaport system; call for investment in large ports of economic areas, and so on
- In the issue and implementation of legal mechanisms and policies, it is necessary to quickly and promptly grasp the development of the socio-economy
The State should collect sufficient and objective opinions from agencies and enterprises to ensure that the implementation is accurate, effective, fair and consistent with actual conditions
- Complete technical infrastructures such as systems of information, auditing and accounting according international standards in order to promote steady development of the economy and create conditions for safe and sustainable production and trading activities of enteprises
- Elaborate, finalize and promulgate legal documents related to the establishment and operation of enterprises under the market mechanism in the context of international integration in a simple, light but effective manner to create a legal basis for enterprises to improve their operational capacity and access to bank loans
- Reform administrative procedures, especially procedures related to land allocation, land lease, ground clearance, tax, etc to help enterprises save costs and
- Constantly build and develop infrastructure, traffic roads, seaports, airports; upgrade electricity system to ensure stable power for production and trading
- Continue to reform administrative procedures, taxation; improve the law to suit the world; improve infrastructure Investors are still keeping track of Vietnam's reforms on business environment, investment, reduction of business transaction costs and establishment of "one-stop" transaction for business registration The procedures are currently very cumbersome, especially the ones for construction investment Therefore, the reform of administrative procedures is an urgent requirement
- Improve customs procedures; develop e-customs
Regarding the operation of commercial banks in general and Techcombank - Bac Ninh Branch in particular
- In policy planning, it is necessary to have appropriate balance between objectives to meet the requirements of economic development, currency stability and sustainable development of the commercial banking system; avoid excessively loosing, tighting, or suddenly changing directions, affecting the operation of commercial banks
- Enhance legal effects to ensure the consistency and synchrony in the legal system which controls the operation of commercial banks in general and Techcombank - Bac Ninh Branch in particular
- Renovate policies and mechanism of banking transactions under market mechanism and conditions of Vietnam; facilitate the expansion of cooperation between banks and FDI enterprises; implement policies and mechanism of open trading on the principles of equal trading between economic sectors and types of enterprises
- Gradually apply international standards in monetary and banking business; build and complete the legal environment to regulate the operation of banks in a comprehensive and consistent direction and in line with international practices and standards, while retaining the characteristics of Vietnamese economy; create open and favorable environment for Vietnamese commercial banks
- Complete, supplement and amend mechanisms, policies and documents suitable to the practical situation and roadmap for the implementation of international commitments in the field of finance and banking At the same time, promulgate general operating procedures and regulations for the banks together with detailed feasible guidelines; avoid overlap and contradictions, which makes it difficult to apply to commercial banks
- Study and promulgate specific regulations so that commercial banks can apply insurance tools for credit activities accurately and in time such as loan insurance, options and other financial derivatives At the same time, provide training and guidance on these operations to help commercial banks both diversify their products and services and prevent and disperse risks in credit activities
- Build a modern system of online financial information with high security, ensuring that the banking system works safely and effectively under strict supervision
- Promulgate general regulations on banking technology standards in order for the banks to develop technology, which facilitates the coordination and cooperation among banks
- Develop a scheme to reform the inspection apparatus; improve the efficiency of inspection and supervision to help commercial banks operate in a common framework and at the same time contribute to raising awareness of commercial banks in ensuring safety system in operation in parallel with development work
- Strengthen international cooperative relations in order to open the relationship between domestic commercial banks and foreign banks; create conditions for learning mutual experience and operation model and make full use of capital and technology resources
- Promote the role as a bridge of the Foreign Investment Administration (FIA) between Vietnamese commercial banks and FDI enterprises FIA is really the place to provide and receive information from parties, from which there are
3.3.2 Recommendations to the bank association
The banking association should promote their role in the following activities:
+ Act as an intermediary in agreeing on the policies if interest rate, charge, card systems, etc in order to avoid negative competition among banks, thus contributing to the stabilization of the market