Developing the auto loan at vietnam prosperity bank dinh cong branch,graduation thesis

Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” STATE BANK OF VIETNAM BANKING ACADEMY Faculty of Foreign Languages -*** GRADUATION THESIS DEVELOPING THE AUTO LOAN AT VIETNAM PROSPERITY BANKDINH CONG BRANCH Student: NGUYEN KIM THU Student’s code: 16A7510144 Class: K16ATCA Course: 2013-2017 Supervisor: Pham Thi Hoang Anh ( Assoc.Prof.,PhD) HANOI, MAY 2017 Nguyen Kim Thu K16ATCA Page Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” DECRALATION I -Nguyen Kim Thu, student of the Faculty of Foreign Language, declare that this thesis is entirely the result of my own work I have faithfully and accurately cited all my sources, including books, journals, handouts and unpublished manuscripts, as well as any other media, such as the Internet, letters or significant personal communication The results used in the thesis have not been applied to any studies or degrees Hanoi, May 18, 2017 NGUYỄN KIM THU Nguyen Kim Thu K16ATCA Page Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” ACKNOWLEDMENT This thesis has been taken with big supports from many individuals and organizations Therefore, I tried my best to complete this thesis as the sincere thanks to them I sincerely regard to all of the employees in VietNam Prosperity Bank- Dinh Cong Branch, especially Mr Nguyen Cong Nam– Director of VietNam Prosperity Bank- Dinh Cong Branch, who supported me to fulfill my tasks during my 4-month internship progress I also express my special thanks to all lecturers at Faculty of Foreign Language, especially my guider – Ms Pham Thi Hoang Anh, Assoc.Prof, PhD, Director of Banking Research Institute for the useful pieces of advice, valuable suggestions, comments and enthusiastic guidance during my working on the thesis Finally, I would like to thank my family and my friends who supported me and encouraged me during my study Because of time contraints and writer’s limited capacity, this thesis will not be perfect I hope the teachers and readers will sympathize and contribute to make it better Ha Noi, May 2017 Nguyen Kim Thu K16ATCA Page Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” ABSTRACT In recent years, Vietnam's economy has been growing, so people's incomes and travel demand have also increased Cars are an indispensable means of transport Moreover, the percentage of people having cars in Vietnam is low According to statistics in 2016, there are only one in every 150 people having car in Vietnam, while in other parts of the world such as Thailand, every 30 people in a car or in Singapore, people have a car Therefore, auto loan is a potential activity Many banks recognize this and actively develop activities such as: TienPhongBank, Vietnam Public Joint Stock Commercial Bank , ACB, etc VPBank - Dinh Cong branch is not an exception Auto loan has brought a large revenue for VPBank-Dinh Cong Branch However, due to some objective and subjective reasons, this activity is not popular in commercial banks in general and VPBank-Dinh Cong in particular In the future, auto loan will be a great benefit and contribute to the development of the economy Therefore, in order to develop this potential activity, the leaders of Vietnam and VPBank-Dinh Cong branch should make the necessary changes in the strategy of development, legal framework, human resources and marketing Nguyen Kim Thu K16ATCA Page Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” TABLE OF CONTENTS DECLARATION ACKNOWLEGDEMENT ABSTRACT LIST OF ABBREVIATIONS LIST OF FIGURE LIST OF TABLES CHAPTER 1: INTRODUCTION 1.1 Rationale 1.2 Research question 1.3 Objectives 1.4 Methodology 1.5 Structure CHAPTER 2: BACKGROUND ON AUTO LOAN AT COMMERCIAL BANKS 2.1 OVERVIEW OF BANK LOAN 2.1.1 Definition of bank loan 2.1.2 Types of bank loan 2.1.3 Roles of bank loan 2.2 AUTO LOAN AT COMMERCIAL BANKS 2.2.1 Definition 2.2.2 Characteristics CHAPTER 3: REAL STATUS FOR AUTO LOAN AT VIETNAM PROSPERITY BANK- DINH CONG BRANCH Nguyen Kim Thu K16ATCA Page Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” 3.1 INTRODUCE OF VIETNAM PROSPEITY BANK, VIETNAM PROSPEITY BANK- DINH CONG BRANCH 3.1.1 Brief history and development at VPBank 3.1.2 Brief history and development at VPBank- Dinh Cong Branch 3.2 REAL STATUS FOR AUTO LOAN AT VIETNAM PROSPERITY BANKDINH CONG BRANCH 3.2.1 Legal framework for the auto loan at VPBank- Dinh Cong Branch 3.2.1.1 Customers and products 3.2.1.2 Loan conditions 3.2.1.3 Loan limit 3.2.1.4 Loan maturity date 3.2.1.5 Required documents for loan application 3.2.1.6 Lending rate and fees 3.2.1.7 Auto loan process 3.2.2 Results of operations for the auto loan at VPBank-Dinh Cong Branch 3.3 OVERALL ASSESSMENT OF AUTO LOAN AT VIETNAM PROSPEITY BANK-DINH CONG BRANCH 3.3.1 Achievements 3.3.2 Drawbacks and Causes 3.3.2.1 Drawbacks 3.3.2.2 Causes Nguyen Kim Thu K16ATCA Page Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” CHAPTER 4: SOLUTIONS TO DEVELOP THE AUTO LOAN AT VIETNAM PROSPERITY BANK- DINH CONG BRANCH 4.1 DEVELOPMENT ORIENTATION FOR AUTO LOAN AT VIETNAM PROSPEITY BANK-DINH CONG PERIOD 2017-2020 4.2 SOLUTIONS TO DEVELOP THE AUTO LOAN AT VIETNAM PROSPEITY BANK 4.2.1 Strengthen evaluation and inspection in order to limit credit risk 4.2.2 Improve the process of auto loan 4.2.3 Find more potential customers 4.2.4 Push up marketing to attract depositors 4.2.5 Carry out competitive and effective strategies 4.2.6 Improve the quality of human resources CONCLUSION REFERENCES Nguyen Kim Thu K16ATCA Page Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” LIST OF ABBREVIATIONS VPBank VietNam Prosperity Bank CSR Customer Service Representative PFC Personal Finance Consultant CIC Credit Information Center CSO Central Services Organization ID Identification card ACB Asia Commercial Joint Stock Bank HSBC Hongkong and Shanghai Banking Corporation ANZ Australia and Newzealand Bank UOB United Overseas Bank PRUFC Prudential Finance SBV State Bank VietNam JSCB Joint-stock commercial bank SOCB State-owned commercial banks Nguyen Kim Thu K16ATCA Page Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” LIST OF TABLES Table 3.1 Customer and products Table 3.2 Loan limit Table 3.3 Prepayment fee Table 3.4 Sale of auto loan and outstanding loan at VPBANK-Dinh Cong Branch (2014-2016) Table 3.5 Profit at VPBANK-Dinh Cong Branch (2014-2016) Table 3.6 The ratio of overdue car loan at VPBANK-Dinh Cong Branch (2014-2016) Nguyen Kim Thu K16ATCA Page Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” LIST OF FIGURE Figure Divisional organizational structure of VPBank-Dinh Cong Branch Nguyen Kim Thu K16ATCA Page 10 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” e) Step five: Complete the credit records Transfer the records to the credit management department to complete the legal process f)Step six: Disbursement and entry into the management program T24 Complete the documents to disburse, transfer an original credit agreement, loan contract, order for payment, cash receipt and other documents to the transaction department for disbursement The bank will transfer to the car seller's account g)Step seven: Checking and handling debt Examining the purpose of using capital, production and business situation and checking the status of security assets Next, notice and urge repayment The bank will release part of the collateral when the customer has paid part, request the release of the corresponding security property, change the mortgaged or pledged property, or the customer requests to release part of the security property to sell and then repay loan to the bank h)Step eight: Credit contract settlement and record keeping Print the coupon payment, instruct the customer to pay the principal and interest, check the seals, witness the sealing, sign fully export warehouse and sign in the store ledger, save the original import and export records and credit contract 3.2.2 Results of operations for the auto loan at VPBank-Dinh Cong Branch It can be said that 2015 and 2016 are the years of development of auto loan Not only buying and selling new car, most banks now offer loans for both new and used cars Especially, in 2016, the demand for purchasing car is very large, so, the auto loan of banks are increasing Consequently, many banks have to compete, attract customers by simple lending procedures, loosening terms and terms of loans Nguyen Kim Thu K16ATCA Page 29 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” For example, in the past, the term was 36 months and if it was a new car, it could be used to pledge it with a loan value of about 60% of the purchase price But now, many banks have relaxed the conditions as well as the loan period up to 48 months and if mortgaged by real estate, it can lend up to 90% of the auto value Along with the general development, not only VPBank in general but in VPBank Dinh Cong branch in particular, the auto loan has increased steadily over the years Specifically:  Sale of auto loan and outstanding loan Table 3.4: Sales of auto loan and outstanding loan at VPBANK-Dinh Cong Branch (2014-2016) (Unit: Million dong) 2014 2015 2016 Sales of auto loan 42.282 50.185 60.768 -New car - Used car 30.182 34.032 42.036 12.100 31.505 16.155 40.894 18.732 52.233 21.827 27.019 33.997 9.678 13.875 18.326 Outstanding Loan -New car -Used car ( Source: VPBank-Dinh Cong branch’s financial report from 2014 to 2016) Looking at the figures in the table above, auto loan sales have increased steadily over the years from VND 42.282 million in 2014 to VND 50.185 million in 2015 and VND 60.768 million by 2016 This shows that auto loan is becoming a more popular product at VPBank Dinh Cong branch, attracting more and more customers Besides, this growth shows that the society is growing and the demand for travel is increasing Everyone wants to own a car to serve their needs as well as work Moreover, the bank's rational policies and simple lending procedures have led to increased auto sales from 2014 to 2016 Nguyen Kim Thu K16ATCA Page 30 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” From the table above, VPBank Dinh Cong's auto loan outstanding increases continuously between 2014 and 2016, reflecting the expansion of auto loan If in 2014, the auto loan balance is only 31.505 million, this number has increased to 40.894 million in 2015 and up to 52.233 million in 2016 This is because the bank's policy in 2016 is to limit real estate loans As a result, outstanding loan for auto loan increased and accounted for a higher and higher proportion of total loans at bank  Profit Table 3.5: Profit at VPBANK-Dinh Cong Branch (2014-2016) (Unit: Million dong) Profit 2014 1.785 2015 2.354 2016 3.446 -New car -Used car 1.092 693 1.492 862 2.170 1.276 ( Source: VPBank-Dinh Cong branch’s financial report from 2014 to 2016) It can be said that auto loan is an attractive profit for VPBank Dinh Cong with a continuous increase in profit from 2014 to 2016 In which, auto loan income also increased significantly In 2014 it will be VND1.785 million, up to VND2.354 million by 2015 and will continue to increase to VND3.446 million by 2016 This indicates that auto loan is a promising activity at VPBank Dinh Cong  The ratio of overdue auto loan Table 3.6: The ratio of overdue auto loan at VPBANK-Dinh Cong Branch (2014-2016) (Unit: Million dong) Outstanding auto loan Overdue auto loan The ratio of overdue auto loan 2014 31.505 342 1,09% 2015 40.894 424 1,04% 2016 52.233 484 0,93% (Source: VPBank-Dinh Cong branch’s financial report from 2014 to 2016) Nguyen Kim Thu K16ATCA Page 31 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” According to the table above, the ratio of overdue auto loan at VPBank Dinh Cong branch gradually decreased from 1,09% in 2014 to 1,04% in 2015 and down to 0,93% in 2016 This means that the bank always maintains a good credit quality for auto loans, which demonstrates that auto loan at VPBank Dinh Cong is not only gaining in quantity but also in credit quality 2.3 Overall assessment of auto loan installment at VPBank-Dinh Cong Branch 2.3.1 Achievements Over the past years, auto loan activity at VPBank- Dinh Cong branch has gained a lot of success Firstly, the branch has step by step approached new customers Therefore, in 2016, the number of customers going to the bank to borrow money and buy car increased, causing auto loan sales to increase At the same time, outstanding loans for auto loan also increased continuously, accounting for high proportion of total outstanding loans Secondly, along with the increase in the number of customers, the branch also offers measures to strengthen the control of loans, especially large auto loan and secured by car Although bad debt is still high, it proves the efforts of the branch through overstanding loan and sales of auto loan As a result, auto loan becomes a development activity that brings a lot of revenue to the bank Finally, branch has built up the style of transaction, good service attitude, creating the highest convenience for customers in transactions 2.3.2 Drawbacks and Causes 2.3.2.1 Drawbacks Besides the success, the auto loan at VPBank Dinh Cong still has some limitations such as: Nguyen Kim Thu K16ATCA Page 32 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” ➢ Restrictions on the method of disbursement of auto loan VPBank Dinh Cong disburses to customers by one of two way: disbursement by vehicle registration or disbursement by appointment Disbursement by car registration means the bank disburses only to customers after the customer has registered the car This method can limit the risk because the bank keeps the original vehicle registration, but it will cause difficulties for customers in case the dealer asks the bank to disburse before delivering the car It takes much time to buy a car while the customer needs to buy a car as soon as possible Disbursement by appointment is the method that the bank will disburse to customers when the customer has an appointment to register the car The advantage of this method is to attract more customers to borrow as they can get the car earlier than the method of disbursement under the car registration, timely meet the needs of customers However, both methods are risky for banks Therefore, VPBank Dinh Cong still has some risks For example: During the auto loan process, bad customers appeared, taking advantage of the gaps in the bank's process as well as the car dealership's process of selling cars to defrawd, leading to risk for the branch Some gaps such as : the bank disbursed and kept the vehicle registration but the owner reportedly lost his appointment with the police and still obtained the vehicle registration They then took the mortgage or sold the car to another person On the other hand, the "Appointment Letter" issued by the police has very sketchy content, easy to forge Therefore, credit officers are difficult to recognize as true or false, leading to risk Moreover, some credit officers are subjectively thinking because they often base on vehicle registration and vehicle purchase contracts without actual vehicle inspection Meanwhile, the car was actually mortgaged elsewhere (another bank or Nguyen Kim Thu K16ATCA Page 33 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” loan office) Somehow, the car owner still borrowed a car registration to show the bank to apply for a loan Some other customers have mortgaged the identity card that is out of date, so credit officers can not accurately identify the people's identity cards are the people in the picture However, credit officers still allow customer to sign mortgage contracts After the risk arises, the police realizes the signatory is false.Therefore, it has made many difficults for credit officers in disbursement for auto loan ➢ Restrictions on market share of auto loan Although auto loan at VPBank Dinh Cong has increased steadily but only reached over 50% of the plan set in 2016 because banks compete to attract customers, so the market share of auto loan at VPBank Dinh Cong is also shared 2.3.2.2 Causes  Objective factor a About competitors After the government allows the import of used cars by 2016, auto loan is considered as a potential activity and will develop in the future The number of commercial banks developing this activity are increasing, especially the competitive race attracting customers at the end of the year near Tet Not only Vietnamese joint stock banks like ACB, Eximbank, DAB but also foreign banks such as HSBC, ANZ, UOB, SC or financial companies like PRUFC, SGVF also attract customers Many banks have set up a separate department to develope this activity and make phone calls to each customer Many banks also send employees to the door to carry out procedures and have preferential policies for customers who have used their services such as ACB, HSBC, PRUFC, etc Nowadays, auto loan is extended by banks Not only small businessmen, small companies, foreign company employees but also almost anyone with a contract of Nguyen Kim Thu K16ATCA Page 34 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” more than one year working at the salary of 6-7 million dong per month can borrow This fierce competition creates a great challenge for local banks As a result, VPBank Dinh Cong's auto loan share was also shared b About regulatory environment Another objective factor affecting the overall operation of the bank in general and auto loan in particular is the legal environment In recent years, although the banking system has changed, it is still not consistent with international norms, legal documents sometimes contradict each other This made difficult for banks due to the lack of transparency of information, legal systems, financial regulations, credit contracts and other economic contracts c The socio-economic environment of Vietnam is not really stable The inflation rate in Vietnam in 2014 and 2015 is high and still in control but in 2016 the rate has been very high According to statistics from the General Statistics Office, the inflation rate in 2015 is 7.7%, compared with 12.6% in 2016, 63.64% more than in 2015 In 2017, this figure may increase Therefore, if the government adopts monetary tightening measures, this will cause difficulties for credit activities at banks, reducing auto loan sales • Subjective causes a) The restriction on capital size VPBank Dinh Cong is the second branch of VPBank Ngo Quyen Branch Hence, the size of the bank's capital is low, affecting the expansion of bank credit activities b) Marketing policy is not effective The demand for auto loan of customers is very large, but the number of customers to borrow at VPBank Dinh Cong is not much Because VPBank- Nguyen Kim Thu K16ATCA Page 35 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” Dinh Cong Branch still does not have a specific name for this activity This is a limitation that has a significant impact on the expansion of auto loan c) The application of new technology is still inadequate To improve online services as well as quality of service, VPBank signed a contract on the purchase of banking software system Core Banking (T24) of Temenos in Switzerland on April 24, 2015 T24 is a highly customizable solution that will enable VPBank to rapidly develop new products and to streamline existing processes to meet market needs In 2016, VPBank Dinh Cong has applied software T24 completely replaced B2K technology in the past However, the application of new technology to new experienced staff is still limited The security, management, record keeping and customer’s information are often difficult due to failure to log into the system The efficiency of using the computer is not high, the new program which is deployed sometimes trouble On the other hand, facilities at the branch are not sufficient, making difficult for credit officers to handle the work Nguyen Kim Thu K16ATCA Page 36 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” CHAPTER SOLUTIONS TO DEVELOP THE AUTO LOAN AT VIETNAM PROSPERITY BANK- DINH CONG BRANCH 4.1 Development orientation for auto loan at VPBank-Dinh Cong period 2017-2020 In the coming time, Dinh Cong VPBank will develop auto loan in the following direction:  Speeding up auto loan with loan sales that are more than 50% of total bank lending in 2017  Reducing the ratio of overdue debt to the lowest level possible on the outstanding loans over the previous year  The bank must play a more active role in providing the information needed to support customers  Improving the professional skill of credit officers  Researching the market to identify career opportunities, diversify loans to meet the needs of customers  Implement dynamic and effective competition strategy  Seeking out and reaching customers with financial capacity, selecting investment projects, feasible business plans, high efficiency, reliable sources of debt to consider loans  At the same time, VPBank- Dinh Cong branch will give the incentive programs to small and medium enterprises and the general public or customers who have regular and reliable relationships 4.2 Solutions to develop the auto loan at Vietnam Prosperity Bank 4.2.1 Strengthen evaluation and inspection in order to limit credit risk This is an important position that determines the quality of credit in general as well as the risk prevention for auto loan in particular Nguyen Kim Thu K16ATCA Page 37 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” When the credit risk arises, the capital of the bank will not be effective, affecting the operation of the bank Therefore, credit officers must catch the information, assess the financial ability of the customer before lending Appraisal will be more difficult with individual customers and successful business customers because their qualifications are comparable to those of appraisers, so they need to be checked more closely To reduce the risk of auto loan, credit officers must verify the legality of the loan application, mortgage contract, authorization letter It must be signed to express the consent and joint responsibility for loan borrowers Moreover, they have to check the content of the loan, the feasibility of the business plan, the ability to repay the bank, appraise the legality of the collateral, the borrower's rights to the collateral because collateral is only the last legal remedy to deal with bad loans, the source of repayment is the money from the business plan The willingness to pay is a decisive factor in the bank's ability to recover capital Futhermore, credit officers should regularly check, control before, during and after the loan Loan control must be performed from the start of the loan application process until the principal and interest are fully recovered Banks should focus on checking and controlling the stages such as : Check the profile carefully before lending, check the process of using loans to see whether the customer uses the loan for the right purpose and check the results of business activities, product’s quality, track time consumption and payment of goods to urge debt collection and interest in time 4.2.2 Improve the process of auto loan In the rival condition,, not only domestic banks but also reputable foreign banks take part in in the market, so VPBank- Dinh Cong Branch must have the efective methods to attract more and more customers who want to buy car Since a bank has a complicated loan procedure, it will take a lot of customer’s time, causing annoyance Therefore, completing the auto loan process will create more favorable Nguyen Kim Thu K16ATCA Page 38 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” conditions for customers to apply for loans at VPBank Dinh Cong due to their simpler, quicker loan procedures and shorter disbursement times 4.2.3 Find more potential customers 4.2.4 Push up marketing to attract depositors In the current lack of funds for loans, in order to be able to both retain customers and increase auto loan, VPBank-Dinh Cong branch should focus on raising capital This is one of the decisive conditions for loan disbursement Therefore, the task of the branch is to attract a large of customers from all walks of life with different income, psychology and interests, therefore, marketing plays important role With the practice of retailing, in order to good marketing, VPBank Dinh Cong has advocated the measures such as: promoting the propaganda and advertisement about banking services, forms and policies of raising capital, attracting deposits and so on so that people can know more about these services Specially, the bank should put the types of leaflets or brochures outside the counter for customers to read when they wait for the transaction Besides, they should organize enthusiastic, thoughtful customer care department and give customers the feeling of being respected when they visit the bank This department has the function of guiding customers for the first time to trade information, answering customer’s inquiries, consulting and introducing products of branch to customers In addition, VPBank- Dinh Cong Branch should publicize financial information for people to reach and catch in order to attract more and more customers who relate to the bank and limit the risk of information 4.2.5 Carry out competitive and effective strategies Competition is the rule of the market economy As a result, the branch is committed to enhancing its competitive auto loan by establishing a dynamic and effective competition strategy Nguyen Kim Thu K16ATCA Page 39 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” Firstly, VPBank-Dinh Cong Branch should research close competitors (other banks in the same area ) by comparing the products, car loan’s interest rates, advertising activities, etc and then give a suitable strategy Secondly, they must create trust with the customer by improving the quantity, quality of the product, the level and ability of the communication staff, technical equipment, own capital and financial capacity Thirdly, they make the difference between the branch and other banks through marketing strategy with customers, the bank's products (auto loan with both used cars and used cars), interest rates and so on Moreover, VPBạnkDinh Cong Branch should change the communication style because business culture is the necessary thing for employees of commercial banks today Credit officer at VPBank Dinh Cong must be friendly, caring, thoughtful, open to create credibility for borrowers Furthermore, they need carry out internal solidarity, resolutely resist all negative phenomena in business, strictly handle cases of violating professional ethics, affecting the prestige and brand name of the bank 4.2.6 Improve the quality of human resources One of the important ways to develop auto loan is to improve the quality of human resources If the staffs have high professional level, the lending activities in general and the auto loan in particular will be developed effectively At VPBank Dinh Cong, most of the credit officers are very young with an average age of 22-28 years They are all employees who are energetic, enthusiastic, intelligent, creative and have the desire to assert themselves However, they lack of work experience The reality is that auto loan is extremely diverse, complex and potentially risky On the other hand, in the context that Vietnam's economy has truly blended into the flow of the market economy, the issues of capital needed to buy cars to serve the work, travel or etc are very important for businesses as well as individuals In order to be able to stand up and develop in the context of fierce competition between credit activity in general and auto loan in particular, credit officers VPBank Dinh Cong must have professional qualifications such as : highly capable and able to analyze customer Therefore, VPBank Dinh Cong should train and retrain the qualifications of credit officers regularly to avoid backwardness of Nguyen Kim Thu K16ATCA Page 40 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” knowledge Besides the banking expertise, additional knowledge about appraisal customers before deciding on a loan should be added Moreover, VPBank Dinh Cong should provide an opportunity for employees to interact and exchange experiences with colleagues inside and outside the work unit Besides, the bank should give them the opportunity to bring into play their hidden potential and give new and effective ideas Furthermore, VPBank-Dinh Cong Branch needs to raise the awareness of employee, makes attractive salary, regularly conducts employee surveys such as their wishes, aspirations, proposals with the branch and their orientation in the future by giving confidential questionnaires, then gives the policies with each specific employee to encourage them to work and dedicate themselves to the bank, raise the reputation of the branch to attract more and more customers Nguyen Kim Thu K16ATCA Page 41 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” CONCLUSION Auto loan is a profitable activity for commercial banks, promising potential growth in the future Especially by 2017, with the participation of many foreignowned enterprises established in Vietnam to distribute imported cars, the automobile industry in our country will grow People will have more choices such as: being selected for a wide variety of automotive products, with a variety of styles, modern features and reasonable prices As a result, commercial banks should take the necessary measures to increase auto loan This is not only increasing profits for commercial banks but also contributing to the growth of the country's economy in the process of integration Nguyen Kim Thu K16ATCA Page 42 Thesis: “Developing the auto loan at VPBank- Dinh Cong Branch” REFERENCES 1/ Website: https://www.vpbank.com.vn/ 2/ Website: https://www.vpbank.com.vn/san-pham/tin-dung/cho-vay-mua-xe-o-osme-class https://www.vpbank.com.vn/san-pham/tin-dung/vay-mua-o-ca-nhan 3/ VPBank’s annual report from 2014 to 2016 4/ VPBank-Dinh Cong branch’s financial report from 2014 to 2016 6/ Other sources from internet Nguyen Kim Thu K16ATCA Page 43