Development of consumer loan at joint stock commercial bank for investment and development of viet nam – bien hoa branch

STATE BANK OF VIETNAM MINISTRY OF EDUCATION & TRAINING HO CHI MINH UNIVERSITY OF BANKING HO CHI MINH UNIVERSITY OF BANKING NGUYEN TRAN THAO UYEN DEVELOPMENT OF CONSUMER LOAN AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIET NAM – BIEN HOA BRANCH GRADUATION THESIS THE MAJOR: FINANCE AND BANKING CODE: 34 02 01 HO CHI MINH CITY, 2022 ii STATE BANK OF VIETNAM MINISTRY OF EDUCATION &TRAINING HO CHI MINH UNIVERSITY OF BANKING STUDENT: NGUYEN TRAN THAO UYEN STUDENT ID: 050607190627 CLASS: HQ7-GE18 DEVELOPMENT OF CONSUMER LOAN AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIET NAM – BIEN HOA BRANCH GRADUATION THESIS THE MAJOR: FINANCE AND BANKING CODE: 34 02 01 SUPERVISOR Associate Prf Dr HOANG THI THANH HANG HO CHI MINH CITY, 2022 iii ABSTRACT Vietnam entered the middle income stage The consumption activities of society are increasing and the demand for consumer loans also increases Consumer loan activities are growing strongly in recent years Although on the progress of development, but on the bank's side, there are still some shortcomings affecting the development of consumer loan Therefore, it is necessary to have solutions to develop consumer loans to ensure stable and sustainable growth The research objective is to analyze the current situation of consumer loan activities at BIDV- Bien Hoa branch From there, propose solutions to develop consumer loan activities at BIDV- Bien Hoa branch To achieve the set research objectives, the study mainly uses qualitative research methods Research results: the study has systematized the factors affecting the development of consumer loan such as: environmental factors such as economic, social, cultural, system policies and economic programs of the state Factors from customers include: legal capacity, credibility, collateral and financial ability of the customer Subjective factors affecting the development of consumer loans include: Professional ethics of staff, techniques, procedures and process of application appraisal Consumer loan has seen growth in the number of customers, loan outstanding balance and control of the bad debt ratio Conclusion and implication: Some shortcomings in the development of consumer loans at BIDV Bien Hoa branch such as: unstable growth, undiversified products, low balance of outstanding loans, bad debt ratio high in the bad debt structure of the bank The author also proposes some solutions to develop consumer loans at BIDV- Bien Hoa branch in the coming time Keywords: consumer loan, commercial bank, BIDV iv ACKNOWLEDGMENT First of all, I would like to express my deepest gratitude to the teachers of Banking University Especially, I would like to thank my supervisor Associate Prf Dr Hoang Thi Thanh Hang, who directly guided and imparted knowledge to me and helped me a lot during the process of writing this thesis Besides, to be able to complete this thesis, it is impossible not to mention the great support from the bank, Mr./Ms., individual customers at BIDV- Bien Hoa branch has created favorable conditions, provided data to help me more convenient in survey and evaluation I would also like to express my sincere thanks to my family and friends who have encouraged and supported me throughout the process of studying and writing this thesis Perhaps knowledge is infinite, but each person's acquisition of knowledge always has certain limitations, so in the thesis it is inevitable that limitations and shortcomings can be avoided Sincerely hope to receive your sincere suggestions for the thesis to achieve the best results Finally, I would like to wish the teachers of the Faculty of Finance and Banking, Banking University of Ho Chi Minh City have health, happiness, success on her teaching path Wishing the leadership, brothers/sisters, customers at BIDV- Bien Hoa Branch, more success in their work We wish you more prosperity in the future Sincerely, v COMMITMENT I hereby declare that this is the research work: "Development of consumer Loan at Joint Stock Commercial Bank for Investment and Development of Viet Nam - Bien Hoa branch" This is a post made by me under the guidance of Associate Prf Dr Hoang Thi Thanh Hang The content and research of this topic is honest and has not been published in any way In this report, there are references to some documents of clear origin under the guidance of teachers of Faculty of Finance – Banking at Banking University The data in the tables of analysis, comments and reviews have been collected by the author himself from various sources and are clearly shown in the reference list Student’s Signature Nguyen Tran Thao Uyen vi TABLE OF CONTENT ABSTRACT iii ACKNOWLEDGMENT iv COMMITMENT v LIST OF ABBREVIATIONS x LIST OF DIAGRAMS, TABLES AND FIGURES .xi INTRODUCTION vii Rationale vii Research Objectives viii Research Questions viii The Scope of research ix Literature review ix Research method xii CHAPTER 1: THE THEORY OF DEVELOPING CONSUMER LOAN AT COMMERCIAL BANKS 1.1 Consumer loan activities of commercial banks 1.1.1 The concept of consumer loan 1.1.2 Characteristics of consumer loan 1.1.3 Classification of consumer loan 1.1.3.1 Based on the loan purpose 1.1.3.2 Based on the form of loan security 1.1.3.3 Based on the repayment method 1.1.3.4 Based on the form of loan 1.2 Developing consumer loan activities of commercial banks vii 1.2.1 The concept of development consumer loan activities of commercial banks 1.2.2 Criteria for evaluating the development of consumer loan activities of commercial banks 1.2.2.1 Market share growth of consumer loan activities at commercial banks …………………………………………………………………….9 1.2.2.2 Loan outstanding balance at commercial banks 1.2.2.3 Non-performing consumer loan at commercial banks 10 1.2.2.4 The profit of consumer loan at commercial banks 12 1.2.3 The experiences in development consumer loan activities of commercial banks and the lessons for BIDV- Bien Hoa branch 12 1.2.3.1 Vietnam Bank for Agriculture and Rural Development (Agribank) 12 1.2.3.2 Vietnam Prosperity Joint Stock Commercial Bank (VPBank) 13 1.2.3.3 The lessons for BIDV- Bien Hoa branch 14 SUMMARY OF THE CHAPTER 16 CHAPTER 2: THE SITUATION OF DEVELOPING CONSUMER LOAN ACTIVITIES AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - BIEN HOA BRANCH 17 2.1 Overview of Joint Stock Commercial Bank for Investment and Development of Vietnam 17 2.1.1 History of the establishment and development of the Joint Stock Commercial Bank for Investment and Development of Vietnam 17 2.1.2 Functions and tasks of Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 19 viii 2.1.3 Functions and tasks of Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 20 2.1.4 Performance of Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 23 2.2 The situation of developing consumer loan activities at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 31 2.2.1 Market share growth of consumer loan activities at BIDV - Bien Hoa branch 33 2.2.2 Loan outstanding balance growth at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 36 2.2.3 Non-performing consumer loans at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 38 2.2.4 The profit of loan at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 40 2.3 Evaluating the results of the situation of consumer loan activities at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 42 2.3.1 The results 42 2.3.2 The limitations and the cause in consumer loan activities at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 43 2.3.2.1 The limitations 43 2.3.2.2 The causes 43 SUMMARY OF THE CHAPTER 47 CHAPTER 3: SOLUTIONS TO DEVELOP CONSUMER LOAN ACTIVITIES AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND ix DEVELOPMENT OF VIETNAM 48 3.1 The orientation at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 48 3.1.1 The general orientation at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 48 3.1.2 The general orientation in developing consumer loan activities at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa Branch 49 3.2 Some solutions to develop consumer loan activities at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 49 3.2.1 Promoting and advertising the consumer loan segment for BIDV - Bien Hoa branch 49 3.2.2 Improving the process and the quality of consumer loan services 50 3.2.3 Regarding the issue of receiving collateral and valuing the secured assets …………………………………………………………………….51 3.2.4 Diversifing consumer loan products and link with strategic partners …………………………………………………………………….52 3.2.5 Strengthening the control of consumer loan risks 53 3.2.6 Strengthening inspection and supervision of customers' use of loans and sources of debt repayment 54 3.2.7 Improving the quality of human resources 56 3.3 Recommendation for Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 57 SUMMARY OF THE CHAPTER 59 CONCLUSION 60 REFERENCES 61 x LIST OF ABBREVIATIONS BIDV VP BANK Joint Stock Commercial Bank for Investment and Development of Vietnam Vietnam prosperity joint stock commercial bank VND Vietnamdong ATM Automatic teller machine AGRIBANK Vietnam Bank for Agriculture and Rural Development 48 CHAPTER 3: SOLUTIONS TO DEVELOP CONSUMER LOAN ACTIVITIES AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM 3.1 The orientation at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 3.1.1 The general orientation at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch Continuing to build and develop traditional banking products, diversified distribution channels based on high technology to meet the increasing and complex demands of customers Develop a clear strategy for the development of specific, diversified and convenient types of products and services associated with the needs of different customer groups and target areas of operation To implement the orientations on BIDV - Bien Hoa branch, it is necessary to determine the following factors: Implement dynamic human resource policy: conduct selection, training and remuneration on the basis of work results, combined with creating a long-term career development environment Modernizing technology with information technology as the core is the driving force behind the renewal of business processes and governance of the bank, and at the same time creates the basis for the implementation of new products and services Strengthen the development of many products and services provided to different subjects such as: teacher loans, production development loans, student loans, poverty alleviation loans, etc Depending on the period and strategy business that focuses on a certain audience Completing the branch's operational apparatus to constantly improve its reputation with domestic and foreign customers In order to improve service quality, Bien Hoa branch periodically needs to carry out many action programs to improve customer service quality through contests of excellent employees and typical employees of the 49 quarter, year 3.1.2 The general orientation in developing consumer loan activities at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa Branch Thoroughly grasping the guidelines and policies of the Government and the executive direction of the State Bank, BIDV - Bien Hoa branch has set out strategic development orientations in line with the macroeconomic developments and the reality of the market Along with the synchronous solution system and the efforts of the whole system, BIDV - Bien Hoa branch has had another impressive breakthrough business year, comprehensively completing all targets, including a number of key business targets far beyond the plan Business scale grew high, credit growth reached 16%, which is the highest level among large-scale commercial banks The business structure was profoundly shifted towards improving quality, efficiency and sustainability: NPL ratio decreased to less than 0.8% Notably, BIDV - Bien Hoa branch continued to record a new record of pre-tax profit of VND 23,122 billion (equivalent to US$1 billion), an increase of 26.6% compared to 2020, tripled With the goal of striving to become the No bank in Vietnam and the No bank in retail, BIDV - Bien Hoa branch needs to promote retail activities, maintain and expand the existing market With its position as the leading bank in the area, along with the existing needs and potentials of the city, BIDV - Bien Hoa branch needs to focus on developing credit card products to meet the increasing needs of customers consumption In addition, BIDV - Bien Hoa branch also needs to overcome existing limitations on consumer loan products 3.2 Some solutions to develop consumer loan activities at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 3.2.1 Promoting and advertising the consumer loan segment for BIDV - Bien Hoa branch 50 In fact, at BIDV - Bien Hoa branch, promotional activities are not taken seriously Located in a prime city in Dong Nai province with a large residential area, BIDV Bien Hoa branch has a network of branch and transaction offices widely distributed, but the number of customers coming to BIDV - Bien Hoa branch has limited consumer loan The main reason is that customers have little access to information about this type of loan Although BIDV - Bien Hoa branch has made great efforts in promoting, it has not been effective The reason comes from the fact that BIDV - Bien Hoa branch has not focused on market research and research, has not conducted customer classification and has not conducted surveys on consumer demand, especially the competitive situation paintings in the area In the coming time, BIDV - Bien Hoa branch needs to strengthen promotional activities such as promoting mixed promotion activities, expanding distribution network The most specific is the establishment of Marketing Department, to focus on this activity If done well in promoting promotion, BIDV - Bien Hoa branch will attract more customers, especially improve the image and reputation in the area Credit officers actively market to find customers like regular product salespeople Every year, BIDV - Bien Hoa branch should organize customer conferences and seminars, thereby building better relationships with customers In addition, the organization of customer conferences can help BIDV - Bien Hoa branch get the opinions of customers, thereby taking measures to improve service quality Thus, BIDV - Bien Hoa branch can be a reliable financial advisor for customers and improve the efficiency of consumer investment 3.2.2 Improving the process and the quality of consumer loan services To compete on consumer loan products, BIDV - Bien Hoa branch needs to constantly improve its loan processes and regulations in a way that is suitable and convenient for each customer However, the improvement of the process and regulations of consumer loan at BIDV - Bien Hoa branch must ensure compliance and strict compliance with the processes and regulations issued by BIDV and the State Bank 51 In order to this, there needs to be a smooth coordination between the relevant departments, departments/teams in credit work, there must be mutual support, all for the development goal of BIDV - Bien Hoa branch Thorough thought, avoid pushing responsibility or causing conflicts with each other affecting work efficiency Developing step-by-step processes and regulations for consumer loan at BIDV - Bien Hoa branch is increasingly perfect, suitable to the consumption needs of individual customers, attracting many customers, increasing competitiveness of BIDV - Bien Hoa branch compared to other banks By developing detailed regulations, BIDV - Bien Hoa branch’s consumer loan process can achieve the above goals and BIDV - Bien Hoa branch's consumer loan products will become a competitive advantage compared to other competitors other bank 3.2.3 Regarding the issue of receiving collateral and valuing the secured assets For real estate assets: it is necessary to create real estate products and services in order to have a dedicated department to perform the appraisal of the collateral value to ensure the valuation is close to the market, ensuring clear identification of liquidity, ability to handle assets when the worst situation occurs For mortgaged assets that are valuable documents such as savings books, promissory notes, depending on the case, the loan rate up to 100% of the value should be applied instead of rigidly loan only up to 90% of valuable documents issued by other banks issued and 95% value of valuable documents issued by BIDV Because the interest arising from valuable documents accumulated for the whole term will be much larger than the interest arising in month, if within month or a period of time, the borrower does not pay the interest, the bank has the right to automatically finalize valuable documents to safely recover all principal and interest For home loan products, real estate It is necessary to expand the object of real estate projects, not to be limited in the scope of loan only to housing and land in the planning project that the project investor 52 has signed a business cooperation contract with BIDV While the needs of people to buy real estate are diverse in the context that the country's land has never been comprehensively planned The loan term for this product should be extended instead of the current maximum of 15 years because the difference between people's income and real estate prices is too large, so if the loan term is short, customers can't afford a loan large enough to buy a home While in terms of capital, BIDV is considered one of the banks with the strongest potential, but other non-state joint stock banks with less capital can offer home loan products with loan terms lasting up to 20-25 years For car loan products It is recommended to consider removing the regulation that only loans for new or used cars with a used life of less than years if imported and have never been used in Vietnam with a maximum term of years The transaction of buying and selling used cars is a lot compared to new cars, because the cost will be affordable for the majority of consumers Used car loan is possible if the bank has a dedicated valuation department or can ask a third party, an independent valuation company, to appraise it The 5-year loan term is the longest in the consumer loan market today, which can be seen as a competitive advantage of the product but also a high risk factor Since a car is a commodity whose value declines rapidly over time, it is important to consider this factor when increasing the loan term 3.2.4 Diversifing consumer loan products and link with strategic partners For any product or service that needs to be developed, those products must first meet market demand In the case of consumer loan, the requirement for each bank is to have research, analysis and evaluation for the active market Only when having accurate analysis and assessment of the market can the bank make future operational plans, as well as build an overall long-term business strategy Researching and offering products suitable for each period of economic development will help the bank stay in tune with market trends Currently, the relationship with intermediary customers is still limited and not really effective To deploy deep consumer loan 53 products, to expand to customers, BIDV - Bien Hoa branch needs to focus on relationships with intermediary customers such as: car dealers, investors of housing projects, large companies with a large number of workers Accordingly, BIDV - Bien Hoa branch needs to have attractive and preferential programs for these customers, and at the same time actively expand relationships The target customers for consumer loan products are often very fragmented, the demand for loans is infrequent, and it is difficult to reach directly Therefore, approaching customers through partners who are product and service providers is an effective approach channel For loans for housing needs, BIDV - Bien Hoa branch needs to cooperate with investors in urban areas, housing projects, and real estate trading floors to lend to customers who have needs If you want to buy a house, the collateral can be equal to the house you intend to buy In Bien Hoa, the demand for housing is very large, so if this loan is well implemented, it will facilitate the expansion of consumer loans at BIDV - Bien Hoa branch The association with investors in urban areas, housing projects to lend to customers to buy houses are selective association, not mass application Affiliate partners must be reputable and potential units to successfully implement housing construction projects and the construction must comply with the provisions of law For car loan with installment payment, the combination with car dealers for car loans is a form many banks are currently applying, even many banks at the same time cooperate with a car dealer One of the deciding factors for car dealers to often choose a bank to cooperate with is the processing time of loan applications 3.2.5 Strengthening the control of consumer loan risks Internal inspection and control in credit activities is an extremely important tool, especially for high-risk products like consumer loan Through control activities, it is possible to detect, prevent and correct errors in the process of performing consumer loan operations In addition, control activities also detect and prevent moral risks 54 caused by credit officers The internal inspection and control is to check the compliance with loan policies and procedures, the value of collateral, the legality of credit records, the reality of customers' debt repayment ability customers, records analyzing the financial situation and production and business activities of customers during the loan process To enhance the role of inspection and control to limit consumer credit risks, it is necessary to take a number of measures as follows: Internal inspection and control in consumer loan activities must be maintained regularly and irregularly to avoid dealing with staff and potential credit risks The internal inspection and control work at BIDV - Bien Hoa branch belongs to the Risk Management Department and the Finance and Accounting Department (postinspection department), so it is necessary to strengthen the staff with high professional qualifications and ethics Good ethics, many years of experience in credit work to complement this business Regularly train and improve professional qualifications and legal knowledge for inspection officers Equip necessary supporting tools for inspection such as issuing internal guiding documents, building a uniform and easy-to-implement inspection process Constantly improving and innovating inspection methods, flexibly applying inspection measures depending on each time, each object and the purpose of the inspection 3.2.6 Strengthening inspection and supervision of customers' use of loans and sources of debt repayment Currently, according to BIDV's regulations, the inspection of capital use purposes is carried out according to the prescribed terms Normally, every 30, 60, 90 days, the bank will check the customer's capital usage The inspection is assigned to the credit analyst in charge Checking the use of capital after disbursement is an important step in the credit process, however, with a large and increasing number of customers and 55 a limited staff, supervision is often quite lax Therefore, in the coming time, the branch needs to strengthen the urging and reminding the credit analysis staff to this work Specially for large loans, credit analysts are required to regularly check the actual use of capital according to regulations For small loans, due to the large number of branches, it is possible to use random sampling or clustering to conduct the test In the process of checking the purpose of using capital after disbursement, the credit officer must pay more attention to collecting information and documents related to the purpose of using the loan, checking the actual use of capital whether the loan is suitable for the loan purpose in the contract, the inspection must be done directly with the customer as well as from the supplier In case the customer uses the capital for the wrong purpose, the credit officer must immediately report it to the management to give the appropriate form of handling Check the actual use of capital to see if it is suitable for the loan purpose in the contract, the inspection must be done directly with the customer as well as from the supplier In case the customer uses the capital for the wrong purpose, the credit officer must immediately report it to the management to give the appropriate form of handling Check the actual use of capital to see if it is suitable for the loan purpose in the contract, the inspection must be done directly with the customer as well as from the supplier In case the customer uses the capital for the wrong purpose, the credit officer must immediately report it to the management to give the appropriate form of handling Regularly monitor the customer's income situation: the credit officer needs to know the customer's income sources, especially the income for debt repayment as agreed in the contract, when there is any change If the customer is related to the debt repayment source, ask the customer to provide proof of the new source of income, pay attention to the customer's time, work experience, and workplace to have customer opinions opinions and judgments about the development trend of that industry, giving cases where the customer's income is likely to be seriously affected From there, offer solutions from the beginning In addition to strengthening supervision of capital use purposes and controlling income from borrowers, the 56 Branch needs to review all consumer loan documents, paying attention to re-checking the repayment source of the customer For customers who have reviewed the source of debt repayment, additional interest costs incurred due to interest rate changes, if the customer shows signs of debt repayment, a credit analyst arranges Meeting with client for re-evaluation If, after the re-evaluation, the customer shows signs of actual insolvency, then propose to the head of the department or the director to propose the extension or rescheduling of the repayment period, requesting the customer to supplement add special assets if necessary 3.2.7 Improving the quality of human resources In consumer loan activities, the entire loan process such as meeting with customers, appraising, making decisions does not have a machine or a tool other than a credit officer Therefore, the results of credit card activities depend greatly on the professional qualifications, creative dynamism and professional ethics of credit officers The necessary conditions that a credit officer should have are: Having knowledge, qualifications, solid professional skills, ability to predict problems related to professional expertise Having good moral qualities, prestige in social relations, good communication ability Have the ability to study, research, have a sense of learning and gain experience, constantly rising in work From there, the bank can take a number of measures to develop resources such as: Encourage and create favorable conditions for staff to improve their professional qualifications Set aside a part of the capital to form and develop a funding fund for officials to go to convalescence and study abroad with the commitment that after completing their studies, they must return to serve the bank Open regular training courses for staff to learn to update new knowledge and loan experience drawn from reality 57 The selection stage is also an important factor determining the quality of credit officers Banks need to have a reasonable and fair recruitment examination regime, avoiding negative cases Develop a reasonable reward and discipline policy: For active officials, actively seek feasible projects to expand credit investment, make loans of guaranteed quality, If the bank is enthusiastic and completes the assigned tasks, the bank needs to have a timely reward policy For officers with poor moral character and dishonest behavior when conducting appraisal and loan, the bank needs to be severely disciplined The policy of reward at the right time, recognition of the true capacity and efforts of staff is the factor to attract and retain talents At the same time, it is a driving force to promote creativity and continuous learning of employees 3.3 Recommendation for Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch In the context of high economic growth, the capital needs of individuals and households both increase, creating many opportunities for the banking industry to develop Therefore, in order to make good use of these opportunities, BIDV - Bien Hoa branch needs to further develop the efficiency of consumer loan Before the problems encountered by BIDV - Bien Hoa branch, in the coming time, it is recommended that the branch needs to: Firstly, research and complete the retail credit product portfolio: The credit product portfolio is the basis for implementation the loan In order to develop retail credit activities with the needs of society, BIDV - Bien Hoa branch should study and form a retail credit product portfolio that can fully serve the needs of customers ensure efficiency and control risks Secondly, improve the loan process to reduce the procedures for customers and reduced consumer loan submission and approval time It is possible to consider authorizing loan approval to the customer relations officer for some consumer loan products 58 Thirdly, the internal inspection and examination should be promoted by the bank to contribute to the development of consumer credit quality and efficiency, and reduce the situation where credit officers not lend according to the bank's regulations such as: exceeding the limit, no collateral, using capital for wrong purposes; Carry out comprehensive inspection and supervision of all aspects, prioritizing in-depth inspection of topics and areas leading to negative impacts; Improve the capacity and responsibility of inspection and control officers and take responsibility for the unit's inspection results Fourthly, for debts due to objective reasons leading to overdue debts such as the impact of the Covid-19 epidemic, changes in state policy, consider extending the debt, reducing the loan interest rate, penalty interest, penalty fee, etc free a variety of services, etc which helps customers solve difficulties 59 SUMMARY OF THE CHAPTER In this chapter, the author has given the orientation in the socio-economic development of Dong Nai city and the strategic orientation of BIDV - Bien Hoa branch and BIDV - Bien Hoa branch as the basis for proposing solutions to develop the socio-economic development of Dong Nai province developing consumer loans at BIDV-Bien Hoa branch such as: promoting product promotion and communication activities, improving processes, diversifying products and controlling risks to develop consumer loans of BIDV - Bien Hoa branch All the solutions mentioned, the ultimate aim is to make consumer loan at the Bank more and more efficient, meet the development orientation and add value of the bank 60 CONCLUSION Consumer loan is a very popular form of loan in the world today In Vietnam, despite the strong growth in recent years, the potential for development of consumer loan is still very large Currently, most banks are stepping up to provide consumer loan products However, the products are the same among banks, and only focus on basic needs such as housing, means of transport and the loan audience is still limited Therefore, the development of credit card activities is an inevitable trend to meet the growing needs of the people, increase profits for banks and develop socio-economic The article has researched and analyzed the effectiveness of consumer credit activities of BIDV - Bien Hoa branch to draw some results, as well as limitations in credit activities, thereby making some recommendations to improve the efficiency of consumer credit activities However, the improvement of the operation of some branches cannot be solved in a hurry, requiring the bank to innovate in management activities, strengthen training of people to improve operational efficiency and competitiveness in the current economic environment However, due to limited theoretical and practical knowledge in the process of implementing the topic, despite the best efforts, errors cannot be avoided, some proposed solutions are still objective Therefore, I hope to receive suggestions from teachers to improve However, due to limited theoretical and practical knowledge in the process of implementing the topic, despite the best efforts, errors cannot be avoided, some proposed solutions are still objective Therefore, I hope to receive suggestions from teachers to improve However, due to limited theoretical and practical knowledge in the process of implementing the topic, despite the best efforts, errors cannot be avoided, some proposed solutions are still objective Therefore, I hope to receive suggestions from teachers to improve 61 REFERENCES Anh, N.T.H (2015) Expanding consumer loans at Bank for Agriculture and Rural Development - Ha Thanh branch 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investors foreign investment, foreign- invested economic organizations in Vietnam 16 Bussiness statement, Annual report at BIDV-Bien Hoa branch 2017,2018,2019,2020 and 2021 17 Trang web Ngân hàng BIDV: https://www.bidv.com.vn/ 18 State Bank (2020), Circular 39/2020/TT-NHNN Regulations on loan activities of credit institutions and foreign bank branches to customers ... Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 38 2.2.4 The profit of loan at Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch. .. Joint Stock Commercial Bank for Investment and Development of Vietnam – Bien Hoa branch 19 viii 2.1.3 Functions and tasks of Joint Stock Commercial Bank for Investment and Development of Vietnam... Investment and Development of Vietnam – Bien Hoa branch International name: JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIET NAM - BIEN HOA BRANCH Abbreviation: BIDV Bien Hoa Tax Number: