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Tiêu đề Expanding A Car Loan Service For Individual Customers In Thanh Cong Branch – Ham Nghi Transaction Office, Joint Stock Commercial Bank For Foreign Trade Of Vietnam
Tác giả Nguyễn Minh Hiếu, Nguyễn Quỳnh Trang, Nguyễn Thị Nguyệt, Lê Anh Đức, Hoàng Văn Thắng
Người hướng dẫn Doctor Đặng Thị Minh Nguyệt
Trường học Thuongmai University
Chuyên ngành International Cooperation
Thể loại Tutored Project
Năm xuất bản 2022
Thành phố Ha Noi
Định dạng
Số trang 41
Dung lượng 1,14 MB

Cấu trúc

  • 1. Overview of Vietcombank - Thanh Cong branch, Ham Nghi transaction office (9)
    • 1.1. General characteristic of Vietcombank (9)
    • 1.2. History and development (9)
    • 1.3. Ham Nghi transaction office (10)
    • 1.4 The internship positions, responsibilities, and tasks (10)
      • 1.4.1. Internship positions and responsibilities (10)
      • 1.4.2. Daily task (12)
  • 2. Overview of project (12)
    • 2.1. Reason for choosing the topic (12)
    • 2.2. Objectives of the project (13)
    • 2.3. Project implementation schedule (13)
  • 1. Process of car loan (16)
  • 2. Car loan service of Vietcombank Thanh Cong Branch, Ham Nghi transaction office (17)
  • 3. Car loan packages (18)
  • 4. The reality of car purchasing at the branch (18)
  • 5. PEST analysis for Vietcombank - Thanh Cong branch, Hàm Nghi transaction office (19)
    • 5.1. Political (19)
  • 7. Proposals to improve the car loan product for individual customer for Vietcombank - (21)
  • 1. Quantitative survey (22)
  • 2. Analyze the results of survey (22)
    • 2.1. Summary of findings (22)
    • 2.2. Recommendations and Conclusions (31)
  • 3. Business cases (32)
    • 3.1. The 1st cases (33)
    • 3.2. The 2nd cases (33)

Nội dung

Overview of Vietcombank - Thanh Cong branch, Ham Nghi transaction office

General characteristic of Vietcombank

Name: Joint Stock Commercial Bank for Foreign Trade of Vietnam Contract name: Vietcombank

CEO: Mr PHAM Quang Dung Address: 01 Thai Ha, Dong Da District, Hanoi

Phone: 024 6257 8686 Sector: Foreign currency trading and derivatives, card services

History and development

Vietcombank, originally established as the Foreign Exchange Management Department of the National Bank of Vietnam on January 20, 1955, underwent a name change in 1961 to become the Foreign Exchange Department under the State Bank of Vietnam Over its 58 years of growth and development from April 1, 1963, to April 1, 2021, Vietcombank has continually evolved, positioning itself to integrate with both domestic and international economies Notably, the period from 2013 to 2018 marked a significant transformation and breakthrough for the bank.

From 2013 to 2017, Vietcombank underwent significant transformations to solidify its leading position in the banking sector This period saw remarkable growth in total assets, capital, and credit mobilization As Vietcombank celebrated its 55th anniversary in 2018, it highlighted its robust growth by sustaining a strong total.

Ham Nghi transaction office

● Overview of Ham Nghi transacrtion office

- Location: 8 Pham Hung Street, Dich Vong Hau Ward, Cau Giay District, Hanoi

+ Individual Customers: Deposits Savings, Personal loan, E-Banking – + Corporate Customers: Loans & Guarantees, Trade finance, Deposits

- Targets: Complete the targets, Become the excelent transaction office of Vietcombank

- Competitors: Vietcombank, Vietinbank, Techcomban k, Sacombank , SHB,&

Figure 1: Organizational chart of Thanh Cong , Ham nghi transaction office

(Source: Vietcombank Ham Nghi Transaction office) –

The internship positions, responsibilities, and tasks

Our position is clearly stated in the chart:

Head of Ham Nghi Transaction office

Figure 2: The structure of the department and our position

Our responsibilities included serving as consultants for car loan services within the individual customer departments and assisting our tutor in completing his tasks The individual relationship department consists of two teams: the individual customer team and the enterprise customer team Within the individual customer team, which is divided into six teams, we were part of team number two, specifically handling transactions at Ham Nghi.

- We were instructed by the instructor to understand all the loan packages, which assist each client's needs in accordance with financial capacity

Understanding car loan products allowed us to effectively assist customers in need, boosting our confidence in addressing tasks related to our research on car loan services.

+ Seek for customers who want to use the car loan service of the bank

We engage with customers to understand their financial needs and align them with our bank's offerings Our team provides expert advice on required documentation, eligibility criteria, and applicable interest rates to ensure a smooth banking experience.

- Helping tutor prepare loaning record

- Finding customers by phone from bank-provided list

- Advising customers at showroom Huyndai

- Assist customers open credit card, debit card, saving account

- Check for record appraisal results, inform customers their loan agree or not

- Meet scheduled customers with tutor

- Helping tutor Check the record of customers

- Helping tutor create the records for agree customers

- Call customers who Not enough loan document

- Assist tutor in input the old data into management system of the bank

- Transfer the loan profile of customers to the appraise debt at main branch

Overview of project

Reason for choosing the topic

In recent years, consumer credit has emerged as a key growth driver for numerous banks, with car loans being a significant contributor to this trend The increasing demand for personal transportation has fueled the growth of car loan credit activities To cater to this demand, Vietcombank introduced a car loan service package for individual customers in 2015, offering competitive interest rates that enable individuals to meet their personal and business transportation needs with ease.

To enhance customer acquisition and boost transaction volume, Vietcombank is focusing on attracting potential customer segments through targeted strategies The bank has introduced attractive interest rate programs for individuals, including the "Suzuki Car Loan with 0% Interest for the First 6 Months of 2020" and the "Competitive Interest Rate 2021" initiative These efforts aim to improve the overall efficiency of the bank's credit operations.

"Interest rates for products for individual customers buying Vinfast cars" is organized to encourage individual customers to support their travel needs

While recognizing the undeniable benefits, our team acknowledges the limitations of Vietcombank's loan services for individual customers This article aims to analyze these services in depth and provide recommendations to enhance their quality, ultimately increasing customer satisfaction in the near future.

Objectives of the project

We implemented this project to participate in the activities of Vietcombank Ham Nghi branch From there, we can better understand how the bank operates

In our project, we explore how the bank issues auto loans and how clients can enroll in this service We are directly involved in the car loan process, engaging with clients during their bank visits, collecting information, and analyzing customer satisfaction throughout their experience To gather insights, we distribute a questionnaire to potential consumers sourced from the Ham Nghi transaction office and relevant Facebook car groups Consequently, we conduct interviews to assess client satisfaction levels with the auto loan service.

Thirdly, we synthesize, select, and evaluate data from consumers using a variety of approaches to get a true picture of the state of the vehicle loan service for individual customers

Through the implementation of this project, we have identified key solutions to enhance the quality of our car loan service Leveraging the insights gained, we aim to develop effective strategies that not only optimize the service but also attract a larger customer base.

Project implementation schedule

Table 2: Project implementation plan Mission Time Responsibility Other responsibility

1 Survey the necessity of using car buying demand for customers

2 Attend instruction on the process of entering service registration information for Customers

Minh Hieu : 17,5% Hoang Thang : 17,5% Quynh Trang : 17,5% Nguyen Nguyet : 17,5 %

3 Support the branch in guiding customers to apply for the integration car loan service in cooperation with Vinfast product

4 Summary of the results collected through the internship time at Vietcombank Ham Nghi and online

Minh Hieu : 17,5% Hoang Thang : 17,5% Nguyen Nguyet : 17,5% Quynh Trang : 17,5%

5 Implement some duty of car loan service process at credit Department at Ham Nghi transaction office

6 Survey to assess the car loan service for

7 Summary of results through the questionnaire

Nguyen Nguyet : 17,5% Quynh Trang : 17,5% Anh Duc : 17,5%

8 Analysis of car loan for individual customers services of Vietcombank

Anh Duc : 60% Minh Hieu : 20% Hoang

Mission Time Responsibility Other responsibility

9 Suggestions for new enhancements of car loan service for individual at Vietcombank

Nguyen Nguyet : 17,5% Minh Hieu : 17,5% Quynh Trang : 17,5% Anh Duc : 17,5%

10 Prepare summaries and reports for projects

11 Defend the project in front of the council

January 17, 2022 Minh Hieu : 25% Hoang Thang : 18,75%

Anh Duc : 18,75% Nguyen Nguyet : 18,75% Quynh Trang :18,75%

Costs include: internal costs and external costs

Due to the voluntary nature of the project, our team cannot mandate the branch to cover external expenses incurred during implementation, including travel, communication, food, and document costs To prevent conflicts among group members, these expenses are evenly shared among all participants.

PART B: OVERVIEW OF VIETCOMBANK CAR LOAN SERVICE

Process of car loan

Table 3: Process of car loan

Steps Department responsible Our duties

- Making call with the potential customer list from the bank

- Advise customers at car showroom that linked with the bank,

- Referral from friends or old customers

- Clients who have demand and come to the bank themselves

- Loan condition, interest rate, procedure

- Answer customer9s questions related to the loan package

- Collect customer records according to bank regulations

- Re-check customers9 profile and inform customer to complement if the profile not enough or lack notarized documents

- Transfer the loan profile of customers to the appraise dept

(Customer9s profile will be sent to the in charge department to appraise and analyze to determine customer9s repayment capacity)

- Appraisal department concludes the customer eligible: + The staff prepare loan contracts

+ Getting customer signatures + Manager approve

+ Transfer the contract to the appraise dept to re-checking

- Appraisal department concludes the customer not eligible:

+ inform customers their loan disagree and find solution

(The staff inform for showroom about loan contract)

The bank will transfer money to the showroom account

Car loan service of Vietcombank Thanh Cong Branch, Ham Nghi transaction office

• Target customer: Vietnamese people who are over 18 years old with the monthly income equal to or above 15 million VND and live at most 30km around Hanoi

• The maximum of loan duration is extended to 7 years

• The loan amount is up to 70% the car value, if customer has other collateral such as real estate, the maximum amount is 100%

• In addition, our customer can have a credit card with free annual fee for the first year Customer can use it to buy car insurance, accessories and service

- Loaning conditions + Vietnamese individual customer/ households

+ Foreign individuals but permanently living or working in Vietnam

+ Have stable income and guarantee solvency

+ Have collateral property for loans The guaranteed asset is the car Other assets belonging to the customer/ third side (ex: house, savings book or car)

- ID card/passport and permanent residence / temporary residence book + Documents regarding the car: Trading contract, bills, etc

+ Documents proving debt repayment: Labour contract, timesheet, etc

Car loan packages

Vietcombank offers a range of preferential interest rates, enabling customers to select a loan package that best suits their needs The preferential package 3 is specifically designed for individuals facing initial financial challenges who are seeking to secure a loan.

Monthly interest rates will be lowered, with a preference for fixed long-term rates to better manage financial obligations to customers The second option offers a competitive fixed interest rate of 7.8% per annum for the first 12 months, making it a popular choice among customers due to its flexibility, set duration, and moderate rates.

The reality of car purchasing at the branch

Total loan of individual department

Car loan Billion/VND % Billion/VND %

In 2020, Vietcombank Thanh Cong Branch experienced significant success and demonstrated stable development, as indicated by their financial report for 2019 and 2020 The outstanding loan balance at the end of 2019 set a strong foundation for this growth, reflecting the branch's effective financial strategies and commitment to serving its customers.

5893 billion, and to the end of 2020 is 6528 billion, increasing 636 billion equivalent to 10.8% But loan car sevice, this may be unsuccessful year when total car debt reduce 83 billion in 2020.

PEST analysis for Vietcombank - Thanh Cong branch, Hàm Nghi transaction office

Political

The Vietnamese government has implemented various policies and trade agreements, such as Decree 125/2017/NĐ-CP, ATIGA, and EVFTA, to boost the domestic auto market Under the ATIGA agreement, cars imported from ASEAN countries are subject to a 0% import tax if they meet specific criteria Additionally, the EVFTA will see Vietnam gradually eliminating import taxes on European vehicles, reducing rates by 6.8% to 7% annually, ultimately reaching 0% after a decade.

Despite the global economic challenges posed by the Covid-19 pandemic in 2020, which led to a historic recession and significant declines in major economies, Vietnam's economy demonstrated resilience by achieving an estimated GDP growth of 2.91%.

Participating in international trade organization such as WTO, APEC, ASEM, has attracted international investment and created competitive environment to motivate the development of domestic enterprises

A recent study by the Boston Consulting Group (BCG) on living standards across 149 countries reveals that the quality of life for Vietnamese people is relatively high, comparable to nations with a GDP exceeding $10,000, despite Vietnam's GDP being approximately $5,200 per year.

As economies integrate and develop, higher per capita income leads to increased demand for housing and automobiles Consumers are not only seeking modern vehicles but are also inclined towards luxury cars due to their enhanced safety and convenience features.

In the past, car buyers primarily consisted of high-income individuals and middle-aged consumers with savings However, car manufacturers have now diversified their offerings, making vehicles more affordable for a wider audience Additionally, increased assistance from banks has further facilitated access to car ownership for everyone.

Vietnam has produced its own car brand, VinFast With the launch of two models

VF e35 and e36 on November 18 at the Los Angeles auto show 2021, VinFast has officially

"set foot" in the US market This event has made Vietnam a new bright spot on the world auto map

Car manufacturers are introducing innovative models equipped with advanced features like HUD glass, satellite positioning, and online connectivity, all at affordable prices for customers They are also focusing on developing hybrid technology to enhance fuel efficiency and reduce emissions, contributing to environmental protection.

6 SWOT analysis and recommendations for Vietcombank - Thanh Cong branch, Hàm Nghi transaction office

After three months of research on car loan product We have summarized the strengths, weaknesses, threats, opportunities to help banks find strategies suitable for developing car loan products

Table 5: SWOT analysis for car loan service Internal STRENGTHS

- Prestigious bank with 74.8% state capital

- Not much investment in advertising

- Small market share for car loans

- Not have close cooperation with car distributors

- Government9s preferential policies for car manufacturing

- Car manufacturers have many models with varied prices, meeting customers9 demand

- Higher income of people therefore, the demand is increasing day by day

- Other competitors have similar products

- Car loan haven9t been paid much attention => smaller market share compared to other competitors who have paid much attention such as international banks, small banks and financial company

Proposals to improve the car loan product for individual customer for Vietcombank -

- Thanh Cong branch, Hàm Nghi transaction office

To boost customer acquisition, the branch should enhance its advertising efforts and implement strategies to attract clients, such as offering gifts, sending holiday cards, and providing tickets to entertainment events sponsored by the bank.

- Cooperate with more car distributors such as: THACO, HAXACO, Toyota

- Cooperate with the car marketing staff, training them on skills to advise clients on Vietcombank9s loan packages

- Change the interest rate to attract more customers

- Increase the loan period, help customers to take the initiative in loan repayment

In Vietnam, when individuals take out bank loans to purchase cars, they typically only acquire civil liability insurance However, this coverage is insufficient, as vehicles are susceptible to theft and may be traded without proper legal documentation, or could be damaged in accidents To mitigate risks and safeguard their collateral, banks should require customers to obtain comprehensive vehicle and theft insurance, designating the bank as the beneficiary until the loan is fully repaid.

PART C: SURVEY OF THE DEMAND FOR USING CAR LOANS FOR

Quantitative survey

Our group had done an indirect survey through online platform (Google form) by using a questionnaire

- To ascertain the perceptions of customers regarding auto loan financing provided by financial institutions

- To assess the auto loan requirements of car owners and prospective car owners

- To develop appropriate Vietcombank9s car loan products to fulfill these needs.

* The number of students who join the survey: 107 customers

* The time: November 7, 2021 and November 14, 2021

* Questionnaire description: Page i of annex

Analyze the results of survey

Summary of findings

Price Range 0-1 billion 1-2 billions >2 billions

Figure 3: The chart presents the price range of car

The sample size indicates a larger proportion (61%) of customers had a preference for cars within the price range of 0 - 1 billion VND (Small Car segment)

The Mid Car Segment (34%) was preferred by customers at a price range of 1 - 2 billion VND

A small percentage of the sample size (5%) preferred the luxury car segment for cars price above 2 billion VND

As part of the questionnaire, the respondents were asked to choose between 3 different banks i.e Vietcombank, Techcombank and BIDV offering auto loans with differing terms of services

The Terms of services offered by the 3 banks were as follows:

Auto Loan Terms of Service Vietcombank BIDV Techcombank Flexible EMI repayment options Available Available Available

Loan Disbursement (in days) 1-3 days 6-8 days 1 days

Loan to Value (LTV) deal (%)

*(On-Road Price) 70-100% Up to 80% 100%

*(On % of Principal Amount prepaid) 0,5-1% 2% 1%

Figure 4: The chart illustrates the choice of bank of customers with many original features

A survey revealed that 57% of respondents favored Vietcombank due to its competitive interest rates and superior service terms, outpacing Techcombank, which offered lower rates Meanwhile, 29% preferred BIDV for having the lowest interest rate among the three banks Only 14% chose Techcombank, despite its higher interest rates, because it provided significantly better service terms compared to TCB and BIDV.

The consumer behaviour of auto loan customers has been further analysed on the basis of the age group, income level, and profession of the respondents and their consumer preferences

Figure 5: The chart presents the choice of interest rate

Data indicates a strong preference for fixed interest rates, with 78.5% of all age groups favoring this option Conversely, only 28% of individuals aged 18-30 prefer floating interest rates, while this preference is minimal among older customers.

This data indicates that the risk appetite of customers in the current economic situation is low across all age group categories

CHOIC E OF INT EREST RATE

Figure 6: The chart presents the loan tenor

A significant 55% of customers prefer a loan tenure of 5 years, while merely 1% of respondents in the small car segment favor a tenure exceeding this duration Additionally, 25% of customers express a preference for a 3-year loan term.

Data shows that customers prefer not to extend their loan tenor beyond a reasonable timeframe, with 5 years being the most favored duration for a safe and affordable loan.

• LOAN TO VALUE Figure 7: The chart illustrates the percentage of the loan value on the car value

A majority of respondents (58%) preferred a Loan to Value Deal in the range of 80- 90% while preferences across other categories were minimal

• FLEXIBLE EMI PREFERENCE Figure 8: The chart presents the FLEXIBLE EMI PREFERENCE

73% of respondents said 8Yes9 to structured EMI payment methods which were suited to their needs

Figure 9: The chart presents the structured EMI preference

• 18-30 years: 59% respondents preferred the Step Down payment method while 27% preferred the Bullet payment method

• 31-40 years: 85% respondents preferred the Step Down payment method

• 41-50 years: 92% preferred the Step Down payment method

• 51-60 years: 50% preferred the Bullet payment and Balloon payment each

The data indicates that the Step Down mode of payment (68%) was preferred across all categories while the Bullet Mode of payment (21%) was the second most preferred choice

Bullet Payment Real End Balloon Step Down Step Up

• Importance of Auto Loans Terms of Services:

Figure 10: The chart illustrates the important terms of Services of Auto Loans

Among all respondents, 83% ranked Rate of Interest as the most important factor in selecting an auto loan

Importance of Auto Loans Terms of Service-Rank 1

ROI Flexible EMI Prepayment charges Loan tenor Loan disbursement

Importance of Auto Loan Terms of Service-Rank 2

Flexible EMI Prepayment charges Loan disbursement

Loan to value ROI Tenor

• The majority of respondents ranked Rate of Interest (83%) as the most important determining factor in selecting an auto loan

• A low down payment was the second most preferred choice

• Prepayment charges, loan tenor and loan disbursement were the other important factors identified by respondents as important in selecting an auto loan

• After the initial two rankings, responses were varied among customers so the third and fourth important factors were not as conclusive as the first two important factors

Figure 11: The chart presents some additional Cross Selling Services

Of the Total Sample Size of 107, the following interpretations were obtained:

• Insurance on Loan Cover was the most preferred option among all respondents (78%)

• Discount on Vehicle Insurance was the second preference among respondents (59%)

• Discount on Health Insurance was the third preference among respondents (22%)

• The other cross selling features was not popular among the respondents

INSURANCE ON LOAN COVER DISCOUNT VEHICLE INSURANCE DISCOUNT EDUCATION LOAN DISCOUNT LIFE INSURANCE DISCOUNT PERSONAL LOAN DISCOUNT ON HEALTH INSURANCE

Recommendations and Conclusions

Approximately 76% of customers favor a Fixed Rate of Interest, indicating a strong preference for stability in their loans, while only 31% of the 18-30 age group opted for a Floating Rate This suggests that many customers remain risk-averse in the current economic environment Additionally, 55% of customers prefer a loan tenor of 5 years, and 58% are inclined towards a loan-to-value (LTV) ratio of 80-90%, highlighting that a 5-year loan period is viewed as optimal for auto loans.

A recent survey revealed that 71% of respondents favor structured EMI payment methods, particularly among younger individuals aged 18-30, who find these customized options more appealing In contrast, older respondents, especially those over 51, showed a preference for standardized EMI payment methods and were less receptive to structured options Overall, while structured payments received positive feedback from most age groups, they were less favored by the oldest demographic.

A significant 67% of respondents across all age groups favored the Step Down mode of structured payments, while only 22% preferred the Bullet mode This preference indicates a desire for reduced credit liability over time Despite the higher initial payments associated with the Step Down method, the gradual decrease in EMI towards the loan's conclusion was a key factor influencing respondents' choice.

To enhance customer awareness of tailored payment options, it is recommended to promote the Step Down and Bullet modes of payment, as respondents showed a general preference for structured payment methods.

Among the choices of Banks provided to respondents i.e Vietcombank, BIDV, Techcombank, 58% of respondents chose Vietcombank, 28% chose BIDV and 14% chose Techcombank

BIDV offers the lowest interest rates among the three banks, while Vietcombank aligns with the industry average and Techcombank has the highest rates Despite BIDV's competitive rates, customers tend to favor Vietcombank, suggesting that they prioritize additional benefits such as lower prepayment and foreclosure fees, flexible loan tenors, and faster loan disbursement processes.

Vietcombank emerged as the preferred choice among respondents, offering more favorable terms compared to BIDV and Techcombank Despite higher interest rates, customers appreciated Vietcombank's lower down payment requirements and faster loan disbursement process, which significantly enhanced their overall satisfaction.

Compared to TCB, VCB did not offer the structured mode of payments which TCB offered but had offered lower prepayment charges and a lower interest rate

Therefore, although structured payment methods were highly preferred by customers, the rate of interest was the single most defining factor which prevented customers from opting for Techcombank

To attract a new customer segment, it is essential to offer competitive interest rates that align with industry standards, particularly when compared to Public Sector Banks Additionally, incorporating structured payment options like Step Down modes and Bullet payments will be highly appealing to these customers.

• Insurance on loan cover (Credit Assure) was well received among customers (78%)

• Also a Discount on vehicle insurance was also preferred among respondents (59%)

• The concept of keeping margin money as a fixed deposit for a 100% loan disbursement was well received by 22% of customers

• The other services mentioned in the questionnaire were not that well received among respondents

Promoting insurance on loan products is essential for enhancing visibility among car buyers, which can lead to greater acceptance of these insurance options Additionally, offering vehicle insurance discounts to customers who obtain a Vietcombank auto loan can further incentivize purchases and improve customer satisfaction.

Business cases

The 1st cases

• Address: 75 Ho Tung Mau, Cau Giay, Ha Noi

• Income/month: VND 18 million (Data from statement)

• Marital status: Married and have 1 child

Mr Duc, who has been employed at Phuc Hung Holdings Construction Jsc for six years, reached out via email regarding his interest in purchasing a Hyundai Grand Sedan valued at VND 420,000,000 He is seeking a loan covering the full car value, to be repaid over four years, with his house offered as collateral.

To learn about the car loan service at Vietcombank, we invited him to the Ham Nghi transaction office for expert advice and detailed information about the service.

After thoroughly reviewing the requirements and legal documents, Mr Duc decided to register for the service We assisted him in completing the application form in accordance with Vietcombank's guidelines.

The approval and review process at Vietcombank involves forwarding the application to the credit department staff at the Ham Nghi transaction office for further processing Once the customer's profile is assessed and found to comply with the bank's regulations, the loan for purchasing a car is approved.

The 2nd cases

• Address: 36 Ngoc Lam, Long Bien , Ha Noi

• Marital status: Single of buying a car- Hyundai Grand I10 sedan 1.2 AT 2018 valued VND 415.000.000 She wants a loan of 100% car value in 7 years

The loan application was denied due to the applicant's ineligibility stemming from an unstable income, with a monthly salary of only VND 6 million plus commission, insufficient to cover the monthly loan interest Despite suggestions to use her house or savings as collateral, she lives with family and does not own a home, and she is unwilling to use her savings account for this purpose Given her low salary and lack of mortgage options, the likelihood of repayment appears minimal, leading to the rejection of the loan request.

PART D: SELF ASSESSMENT OF THE PROJECT

My three-month internship at Vietcombank's Thanh Cong branch, specifically at the Ham Nghi transaction office, was an unforgettable experience Throughout this period, our team encountered several challenges while working on a group project, including time constraints, insufficient information, and interpersonal conflicts among team members.

This time might be described as a practical course in which our team has gained more knowledge and cultivated experience in the banking business

Our team has effectively translated specialized knowledge into practical applications, such as streamlining the project issuance process, establishing a car loan service registration procedure, and enhancing services for individual customers This hands-on experience not only enriches each member's skill set but also boosts their confidence for future endeavors.

In addition to enhancing our banking knowledge, our proficiency in foreign languages and computer skills has significantly improved Our team regularly communicates in English, which aids in developing essential skills such as reading, listening, speaking, and writing through activities like reading, translating, and synthesizing documents Furthermore, we utilize word processing tools like Word, Excel, and Gantt Project during group practice, providing valuable opportunities for each member to advance their computer skills.

Initiative is the crucial lesson our team has learned through practical experience By proactively engaging with colleagues, understanding the company's situation, and suggesting involvement in banking operations, we have streamlined our reporting process effectively.

Understanding the significance of car loan services for diverse customers and banking operations has enhanced our group's expertise in this field.

After graduation, all individuals of our group want to continue to learn a Master Degree in Banking - Finance major

The internationalization process is driving growth in global socio-economic life, leading to a rise in car lending services through banking credit operations, particularly in developing countries like Vietnam Vietcombank has consistently focused on innovating customer relations to enhance efficiency and expand its car loan services, especially for individual clients.

A study of the car loan service at Vietcombank's Thanh Cong branch reveals both positive outcomes and existing limitations in service quality To enhance the effectiveness of this service, it is crucial to foster collaboration among various stakeholders, including the bank and other institutions, while also implementing strategic initiatives to attract more customers.

Our intern report may contain errors due to time constraints and our skill level Consequently, the insights from teachers and peers are essential for us to successfully complete this project.

1 General informations about Vietcombank: https://portal.vietcombank.com.vn/en- us/about/Pages/Home.aspx?devicechannelault

2 General informations about Vietcombank-Thanh Cong Branch: https://vietcombank.ngan-hang.com/chi-nhanh/ha-noi/chi-nhanh-thanh-cong

3 VCB9s auto loan products: https://portal.vietcombank.com.vn/Personal/Loan/CVMOT/Pages/Cho-vay-mua-o-to- moi.aspx?devicechannelault

4 Vietnam economy in 2020: https://www.gso.gov.vn/en/data-and-statistics/2021/01/viet- nam-economy-in-2020-the-growth-of-a-year-with-full-of-bravery/

5 Vietnam reached EVFTA: https://moit.gov.vn/tin-tuc/hoat-dong/evfta-la-mot-trong- nhung-hiep-dinh-thuong-mai-tu-do-viet-nam-tan-dung-tot-nhat-trong-nam-dau-thuc- thi.html i

ANNEX QUESTIONNAIRE ON THE DEMAND FOR USING CAR LOANS FOR

We appreciate your honest responses to the following questions, as your valuable time will help us gather important data for our research Please rest assured that all information collected will be kept confidential and used solely for research purposes.

✓ Please tick the check boxes wherever applicable

Age (yrs): 18-30 31-40 41-50 51 & above Profession: Salaried Self-Employed Business Annual Income (VND):

First-Time Buyer: Yes No

1) Which Car do you intend to purchase?

2) What would be the price range of the Car you intend to purchase? (millions VND)

3) What type of Rate of Interest (ROI) facility do you prefer on your auto loan deal?

4) What is the % of Loan to value (LTV) deal you expect for your auto loan?

5) What is the Loan tenor you expect? (No of Years)

6) Are you willing to utilize flexible EMI repayment facilities if offered?

7) If Yes, please select your preference among the following flexible EMI repayment services offered

EMI services Step Up Step Down Bullet Payment Balloon repayment

8) Please see the terms offered by three different Banks A, B, and C for a particular car in your price range As per your requirements, please tick the Bank you would most likely seek to finance your auto loan iii

Auto Loan Terms of Service Vietcombank BIDV Techcombank Flexible EMI repayment options Available Available Available

Loan Disbursement (in days) 1-3 days 6-8 days 1 days

Loan to Value (LTV) deal (%)

*(On-Road Price) 70-100% Up to 80% 100%

Ceiling on Loan Amount No Ceiling No Ceiling 1 billions

*(On % of Principal Amount prepaid) 0,5-1% 2% 1%

9) With reference to the previous question and as per your selection, please rank the 4 most Important Auto Loan Terms of Services offered

(Rank 1 Highest importance to Rank 4 Lowest importance) – –

Auto Loan Services Rank (1 to 4)

Flexible EMI repayment options Loan Disbursement (in days) Loan to Value (LTV) deal (%) Loan Tenor (Years)

Prepayment Charges Rate of Interest (%)

10) What kind of additional services do you expect along with your auto loan? Please check the boxes below:

Voucher services International Credit Card

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