internship report on improving human resource management of vietnam technological and commercial joint stock bank

Nguyen Ngoc Due, the Deputy of Head, Human Resource Management Division - Techcombank, who gave me the chance to work in her company and to be a part of Human Resource Business Partner t

INTERNSHIP REPORT ON

IMPROVING HUMAN RESOURCE MANAGEMENT OF VIETNAM TECHNOLOGICAL AND COMMERCIAL

JOINT STOCK BANK

Submitted by: TRAN THI THUY GIANG – AMI.9A

Company Supervisor: Mrs NGUYEN NGOC DUE

Deputy of Head Human Resource Management Division, Techcombank

Academic Supervisor: Dr LE THANH BINH

Director of International Relation Department, Thang Long University

Hanoi, September 2019

ACKNOWLEDGEMENT

Firstly, I would like to take this opportunity to express my gratitude to all the professors in the AMI Master Program from University of Nice Sophia Antipolis and Thang Long University, who gave me the knowledge and skills to carry out the research through their useful and lively lectures

I would be particularly grateful to my academic supervisor, Dr Le Thanh Binh, for her attentive guidance and helpful comments during my internship report preparation

During the past year, Techcombank has always been honored was awarded the "Best Bank in Vietnam" award by Euromoney organization, honoring for the ability of sustainable development, business performance results, risk management, information technology, executive quality and contributions to the banking and financial market in Vietnam and Asian Being an intern in a professional environment like Techcombank is my honor and pride I would like to express my sincere thanks to my colleagues who helped me, guided and supported me during my internship at Techcombank

Especially, I would like to send my special thanks to Mrs Nguyen Ngoc Due, the Deputy of Head, Human Resource Management Division - Techcombank, who gave me the chance to work in her company and to be a part of Human Resource Business Partner team during the internship time

Finally, I wish to thank my family and friends who always support, encourage and believe in me throughout my studying

ABSTRACT

Human resource management is one of the basic functions and plays an important role in corporate governance activities The human factor is the most important resource and also the center of the development of a company By building and operating a system of policies, remuneration, management methods, management decisions, businesses exploit and use human resources in a rational and effective manner In addition, the Human Resources Department is required to have a strategic vision and be associated with the business plans

This report tries to provide and analyze a case of such a company in Vietnam, with the focus on human resource management in Techcombank (Vietnam Technological and Commercial Joint Stock Bank) During the internship, I was investigated and researched about Techcombank's strategy for human resource development and analyzed and proposed some solutions to improve the efficiency of human resources at the company

The report begins with an introduction to the company for research, then attempts to identify their human resource management, identify and comment on their strategic differences and impacts, use some methods of strategic analysis to analyze the strengths of the company's use of human resources compared to competitors in the same field in Vietnam, and finally propose some solutions to to enhance the efficiency of human resource management activities of the company

TABLE OF CONTENTS

INTRODUCTION 1

CHAPTER I: BACKGROUND OF COMPANY 2

1.1 Name, Form, Head Office, Network and Term of Operation 2

1.2 The objectives of the Enterprise: 3

1.3 Scope of Operation: 3

1.4 Major operation of Techcombank: 3

1.5 Customers and Clients: 5

1.6 Basic financial data: 5

CHAPTER II: COMPANY STRUCTURE AND ORGANIZATION CHART 7

2.1 Organization chart of Techcombank 7

2.2 Organization Structure: 8

2.3 The Intern’s Position 13

CHAPTER III: THE MISSION: ASSIGNED TASKS AND GOALS 14

3.1 The Tasks Assigned 14

3.2 The Link between the Subject Matter and the Mission 14

3.3 The Goal to Reach 15

3.4 The Contribution to the Company 16

3.5 Theoretical Knowledge Put into Practice 17

CHAPTER IV: DEVELOPMENT 19

4.1 Stakeholder Matrix for Human Resource Management: 19

4.2 Internal Environment Analysis 20

4.3 External Environment Analysis: 21

4.4 Benchmarking Analysis 26

4.5 SWOT Analysis 29

4.6 Proposing solutions: 29

CHAPTER V : CONCLUSION 32

5.1 How the internship work meets the Goals set 32

5.2 The shortcomings of the internship work 34

5.3 Recommendations 34

5.4 Conclusion 35

REFERENCES 37

INTRODUCTION

In the past 20 years, Vietnam's banking industry has experienced major changes with even many banks still enjoying a sudden growth With a charter capital of only VND 20 billion 25 years ago, Techcombank today became the third largest bank in terms of the charter capital Techcombank’s success comes from a focused strategy to address the changing needs of our customers

Techcombank's successful business results are due to its strategic focus on developing outstanding employee In the last three years from the beginning of the transition process, Techcombank has created a "positive round of" in which Techcombank focuses on training its employees based on the customer segment they are working to understand In addition, Techcombank also implements the internal restructuring at the same time to increase productivity and reduce unnecessary positions

Techcombank's mission is to bring products and services to customers, which tailored for them Because of that mission, employees of Techcombank work in an excellent environment, where they have the opportunity to devote and develop their own careers

To be successful in the transition from a product perspective to a customer perspective is the focus, Techcombank has consistently pursued business strategies Techcombank's success comes from customers, both customers and the entire staff of Techcombank

Therefore, Techcombank always builds effective human resource strategies to accompany Vietnamese people and businesses on the way to conquer dreams, aiming to achieve the No.1 position in the field of finance and banking in Viet Nam

CHAPTER I: BACKGROUND OF COMPANY 1.1 Name, Form, Head Office, Network and Term of Operation 1.1.1 Name of the Bank:

 Full name: Vietnam Technological and Commercial Joint Stock Bank

 Abbreviated name: Techcombank

 Logo:

1.1.2 Head office of the Bank:

 Address: 191 Ba Trieu Street, Le Dai Hanh Ward, Hai Ba Trung District, Ha Noi Capital, Vietnam

 Telephone : (842) 39 44 63 68;

 Fax: (842) 39 44 63 62; Telex: 411349HSBCTCB

 Email: ho@techcombank.com.vn; Website: www.techcombank.com.vn

 SWIFT: VTCB VNVX

1.1.3 Form of the Bank:

Techcombank is a joint stock company with the term of operation of the Bank shall be ninety-nine (99) years Techcombank is operated under the Banking Operation License No 0038/GP-NHNN issued by the State Bank of Vietnam on March 6, 2018 (renewed for operation license No 0040/NH- GP dated August 6, 1993) In accordance with the Enterprise laws and the Bank Charter, Techcombank is allowed to open branches, representative offices, non-business professional units, transaction offices, automated trading machines Techcombank can establish Subsidiaries/Affiliates and other forms of commercial presence to fulfil Techcombank's operational objectives

1.1.4 Branch and representative office:

- As at 31 December 2018, Techcombank was present in 45 cities and provinces in Vietnam with 315 Branches, Transations offices, Representative offices, 1.117 ATM Machines

- Techcombank has four (4) subsidiaries 100% owned the Bank, as follow: Techcom Securities Company Limited; Vietnam Technological and Commercial Joint Stock Bank – Asset;

Techcom Capital Management Company Limited; Technological and Commercial Finance Company Limited

1.2 The objectives of the Enterprise:

Techcombank operates and develops according to the objectives:

- Becoming the best commercial bank and leading enterprise in Vietnam

- Becoming a financial partner that domestic and international customers want to operate for development

co-1.3 Scope of Operation:

Techcombank can carry out business activities and operate both domestically and overseas

in the fields permitted by the laws, and approved by the General Meeting of Shareholders or the Board of Directors in accordance on the basis of the bank charter

1.4 Major operation of Techcombank:

1.4.1 Mobilize capital:

Techcombank implements the capital mobilization may be carried out in Vietnamese Dong, foreign currencies, gold and other financial products as provided for by the laws, through the following form:

- Receiving demand deposits, term deposits, savings deposits and other types of deposit; - Issuing certificates of deposit, promissory notes, bills, bonds to mobilize domestic and foreign capital

Techcombank also has obtained loans from domestic and foreign credit institutions, economic and financial organizations in accordance with the laws

1.4.2 Credit activities:

Techcombank provides credit to domestic or foreign individuals and organizations as approved by the State Bank in the following forms: Lending; providing bank guarantees; issuing credit cards; discounting and re-discounting negotiable instruments and other valuable papers; domestic factoring; international factoring with banks which are entitled to provide international payment services;

1.4.3 Payments service:

Techcombank's payment activities mainly focus on opening bank accounts for clients and providing the following payment services:

- Providing domestic payment services such as checks, payment orders, payment authorization, collection orders, collection authorization, letters of credit, bank cards, collection

and payment services;

- After obtaining an approval from the State Bank, Techcombank provides international

payment services and other payment services

1.4.4 Participation in money market:

On the monetary market, Techcombank is eligible to participate in bidding treasury bills; buying and selling negotiable instruments, government bonds, treasury bills, State Bank bills and other valuable papers

1.4.5 Account opening activities:

Regarding the account opening activities, the bank performs some of the following operations:

- Techcombank complies with the regulations on opening a deposit account at the State Bank and maintain on this deposit account the average balance which is not lower than the reserve

requirement

- Techcombank may open payment accounts at other credit institutions in Vietnam

- Techcombank also can open deposit accounts and payment accounts in foreign countries

in accordance with the laws on foreign exchange control

1.4.6 Investment bank activities:

In accordance with the Enterprise Law, Techcombank directly or through Subsidiaries and Affiliates in order to implement the following investment banking activities:

- Consultancy on appraisal and analysis of investment projects; corporate finance, securities investment; Consultancy on issuance of valuable papers;

- Underwriting and securities underwriting and securities custody (including bond issuance underwriting and bond custody);

- Consultancy management of financial portfolio and management of investment portfolio or other investment banking activities (if any);

- Other cases as prescribed by the laws and the Charter of the Bank

1.4.7 Other business activities:

Techcombank carry out other activities on the basis of the State Bank’s license, following

types of activity:

- Consultancy for cash management, banking, finance; merger and acquisition of enterprises and investment;

- Purchase and sale of Government bonds and corporate bonds; - Providing currency brokerage services;

- Upon obtaining a State Bank's written approval therefor, providing securities depository service, trading in gold and other business activities related to banking operations;

- Providing a number of property management services such as management services, property preservation services, services of offering cabinets and safety deposit boxes for lease

- Other activities permitted and/or not banned by the laws

1.5 Customers and Clients:

Customers of Techcombank are all individuals, collectives and businesses wishing to use the Bank's products and services

1.6 Basic financial data:

In according to Report on Business Performance in 2018, as at 31 Dec 2018, Techcombank achieved some results as follows:

 Total Techcombank’s assets at the end of 2018 reached VND 321 trillion, 19.2% growth compared to the prior year, in which credit increased by VND 36.8 trillion, and deposits increased by VND 26 trillion compared to 2017 As a result of the successful capital raise in 2018, total Techcombank’s equity increased by VND 24.9 trillion compared to 2017  Techcombank has consolidated profit before tax was VND 10,661 billion, a year-on-year

growth of 32.7% Net interest income increased 24.6% versus 2017 Return on average asset (ROAA) and return on average equity (ROAE) reached 2.9% and 21.5%, respectively  Total Techcombank’s deposits (including CDs) were VND 207,678 billion, a year-on-year

growth of 18.4% Total Techcombank’s credit exposure at year end was VND 217,138 billion, a year-on-year growth of 19.97% and within the credit growth limit granted by the State Bank of Vietnam

 Capital adequacy ratio (CAR) at year end was maintained at a healthy 14.30%, well above the 9% regulatory requirement

TABLE 1: REPORT OF TECHCOMBANK ON BUSINESS PERFORMANCE IN 2018

TABLE 2: KEY FINANCIAL INDICATOR OF TECHCOMBANK DURING THE PERIOD 2014-2018

(Source: REPORT ON BUSINESS PERFORMANCE IN 2018, BUSINESS PLANS FOR 2019, AND REVIEW OF BOD TERM 2014-2019 – TECHCOMBANK)

7

2.1 Organization chart of Techcombank:

OPERATIONS AND IT GENERAL

SHAREHOLDERS’ MEETING

SUPERVISORY BOARD BOARD OF DIRECTORS

AUDIT, CONTROL & COMPLIANCE CEO/BOARD OF

MANAGEMENT WHOLESALES

BANKING

BUSINESS BANKING

PERSONAL FINANCIAL SERVICES

INVESTMENT BANKING

TRANSACTION BANKING

TREASURY AND MARKETS

INSURANCE

SALES & DISTRIBUTION

MARKETING AND COMMUNICATION

IPMO

STRATEGY AND CORPORATE DEVELOPMENT

HUMAN RESOURCE MANAGEMENT

COMPLIANCE AND LEGAL

FINANCE AND PLANNING RISK MANAGEMENT

Business Divisions

Supporting Divisions

Governance Divisions

Figure 1: Organization chart of Techcombank

CHAPTER II: COMPANY STRUCTURE AND ORGANIZATION CHART

2.2 Organization Structure:

The structure of organization and management of Techcombank includes:

2.2.1 General Meeting of Shareholders

In accordance with the Law on Enterprises and the Bank Charter, General Meeting of Shareholders has the following rights and obligations:

- Passing the development orientations of the company and elect, remove from office or dismiss members of the Board of Directors and supervisors; decide on reorganization and dissolution of the company;

- Decide on the types of shares and total number of shares may be offered for sale; the rate of annual dividends; make decisions relate the assets in accordance with the Enterprise Law

- Decide on amendments and supplements to the company charter and approve annual financial statements;

- Other rights and obligations provided in the Enterprise Law and the Bank Charter

2.2.2 Board of Directors

Board of Directors has the rights and obligations such as:

- The Board of Directors decide on medium term development strategies and plans and annual business plans of the company;

- Decide and recommend issues related to shares (types of shares, selling prices of shares/bonds, redemption of shares); decide on investment plans and investment projects within the rights and obligations; basing on solutions for market expansion, marketing and technology to make decision;

- Approve contracts for purchase, sale, borrowing and lending and other contracts accordance with the Enterprise Law;

- Appoint, remove from office or dismiss the chairperson of the Board of Directors and other key managers of the company as provided in the Bank Charter;

- In the daily business of the company, The Board of Directors implement the supervision and the direction with the director or director general and other managers in their work;

- Decide on the organizational structure and internal management regulations of the company, to decide on the establishment of subsidiaries, branches and representative offices and the capital

contribution to or purchase of shares from other enterprises; recommend reorganization or dissolution of the company or to request bankruptcy of the company;

- The other rights and obligations provided in this Law and the Bank charter

2.2.3 Chairperson of the Board of Directors

The rights and obligations of the Chairperson of the Board of Director include:

- Prepare agendas, working plan and programs, contents and documents for meetings of the Board of Directors;

- Organize the adoption and monitor the implementation of resolutions of the Board of Directors;

- Chair meetings of the Board of Director, the General Meetings of Shareholders; - Other rights and obligations provided in the Law on Enterprise and the Bank Charter

2.2.4 Supervisory Board

The Supervisory Board has the following rights and obligations:

- Supervise the Board of Directors, director or director general in the management and administration of the Bank to ensure the reasonableness, legality, the systematicity, consistency and appropriateness, truthfulness and prudence in the management and administration of business operations of the Bank

- Review, inspect and evaluate the effect and efficiency of internal control, internal audit, risk management and early warning systems of the Bank

- Participate in and discuss at the other meetings of the Bank, the General Meeting of Shareholders and the Board of Directors

- Exercise other rights and perform other obligations as provided in the Enterprise Law, the bank charter and resolutions of the General Meeting of Shareholders

2.2.5 Chief Executive Officer

The Chief Executive Officer has the following rights and obligations:

- Be responsible for the issues related to the daily business activities of the company independently of the decisions of the Board of Directors;

- Implementing the bank's business and investment plan according to the Resolution of the Board of Directors;

- Propose the organizational structure and internal management regulations and appoint, dismiss and remove from office managers in the bank under its jurisdiction

- Decide activities relate to human resource management (recruitment, wages and other benefits for employees of the bank)

- Other powers and obligations provided by law, the Bank charter and resolutions of the Board of Directors

2.2.6 Business Divisions

The structure of Business Divisions:

- Wholesale Banking Division: Develop, organize, implement and manage the entire

development strategy of the Bank’s wholesale banking segment

- Business Banking Division: Developing strategy and coordinate with other divisions to

deploy business activities, following direction and strategy of the Bank to achieve financial objective

financial/non Personal Financial Services Division: Deploy business plan, collaborate with other

divisions to develop and serve retail customers according to direction and strategy of the Bank, ensuring achieving financial/non-financial objective

- Transaction Banking: Building and developing the bank cash flow management and

trade finance services

- Investment Banking Division: Responsible for the development and implementation of

solutions related to investment banking activities

- Marketing and Communication Division: Responsible for oversight of product

management; develop, manage and execute marketing strategy and plan by identify, quantify key customer segments and business opportunities; manage overall brand and communication

- Insurance Division: Develop, deploy insurance business plan, through interaction with

the other business divisions

- Sales and Distribution Division: Prepare and execute network development plan;

implement and supervise sales plan implementation

- Treasury and Markets Division: Build and develop business strategies to maximize

profits from activities in the financial and capital markets

Roles and Responsibilities of of Business Divisions

- Coordinate to develop, implement strategies/policies/programs/activities in order to push sales to each segment (as defined by Techcombank’s regulations) to meet/overcome assigned targets

- Direct the business unit’s banking activities for the whole segment, build business model, business policy, product, targeted customer, investment portfolio, human resource policy, training and recruitment policy… Implement strategies for each segment, product and marketing; Determine targeted market, build sales policy, business model, customer portfolio, investment portfolio for sales unit within each Divisions

- Research and develop product/service to meet the need of customers; coordinate with other related division/units to develop other products and services Build operational process and model, risk management model, price, customer loyalty program

- Support other business divisions in business activities to maximize profit from the relationship with customer

- Manager and monitor business activities of units within division and of approved products - Be responsible for building, organizing and implement all Techcombank’s strategies on developing detail segments

- Be fully responsible for business outcome, loan performance, product/services quality, personal qualification directly engaging in business activities of related division

2.2.7 Supporting Divisions

The structure of Supporting Divisions:

- Strategy and Corporate Development Division: is the coordinator for developing

implementing and updating the Bank’s vision, strategy, business model and financial model;

- Human Resource Management Division: Organize and manage human resource of

Techcombank and subsidiaries

- Compliance and Legal Division: Assure the Bank’s compliance with laws and

regulations in every aspect of the Bank’s operations; assure maximized interest and benefit of the Bank in legal aspects

- Finance and Planning Division: Manage the Bank’s business activities, balance sheet

and funding according to the Bank’s plan and strategy

- Transformation Office (iPMO): Implement and monitor transformation program whole

of the Bank

Roles and Responsibilities of of Supporting Divisions

- Build, execute, maintain, manage and control the transformation, human resource, strategy business model and financial model;

- Support and coordinate with other divisions in developing, implementing the business activities;

- Assure the Bank’s compliance with laws and regulations in every aspect of the Bank’s operations;

- Assure maximized interest and benefit of the Bank in legal aspect; - Manage the centralize to serve the Bank’s operations;

2.2.8 Governance Divisions

The structure of Governance Division:

- Risk management Division: Develop policy/regulation, implement and supervise

compliance to minimize risk in the whole system of the Bank

- Operation and IT Division: Manage and execute the Bank’s activities in technology,

operation and quality management

Roles and Responsibilities of of Supporting Divisions

- Organize the building and monitoring of bank-wide quality management framework implementation, execute quality analysis and improvement activities in support to divisions to continuously improve product and service quality

- Building, develop, maintain and implement the system of rules, processes, internal regulations related to technology and operation service providing and other activities

- Establish quality standards and continuously improve operational quality for all system Develop and implement control mechanism and manage operational risk effectively to minimize the loss in operations

- Develop policy, measure tool, strategy to minimize credit, market risk, operation risk - Implement risk management activities to maximize profit, provide the best services to customers, assure compliance to laws and alignment to the Bank’s strategy

2.3 The Intern’s Position

I have joined at Human Resource Business Partner in Human Resource Division for nearly 4 months internship I have worked as a Human Resource Consultant for support the business units of the bank I carry out my work under the supervision of Ms Nguyen Ngoc Due - Deputy Director in charge of Human Resource Management Division My department consists of 18 members who working in Offices in the North, Central and South Vietnam I am happy to work in a professional environment My group always have innovation and transformation programs, my colleagues are highly qualified and often support me during my internship time Through the tasks assigned, I have accumulated the knowledge and skills necessary for my work

Human Resource Division

Human Resource Business Partner

Talent Acquisition

Training Development

Human Resource

Talent Management

HR Strategy and Performance Management

My Internship

Position

CHAPTER III: THE MISSION: ASSIGNED TASKS AND GOALS

3.1 The Tasks Assigned

As introduced from the previous sections, I have joined the Human Resource Management Department as a Human Resource Business Partner (HRBP) with the following main tasks:

 Supporting line manager in operating human resource management for branches in the bank’s system;

 Communication and deployment of bank's human resource management activities to employees across the system (manage recruitment activities, payroll operations management, manage insurance-related activities, operational work, business activities as usual);

 Analyzing trends and metrics with the Human resource department;

 Receiving and collecting the employee’s feedback in order to resolve complex employee relations issues;

 Working closely with management and employees to improve work relationships, build morale and increase productivity and retention;

 Supporting to organize an agenda meeting;

 Participating in meetings and help division brainstorming in some projects

3.2 The Link between the Subject Matter and the Mission

In the past years, Techcombank has spent more energy than most other banks in the system for recruitment, training and efficient use of human resources At the bank, it is the key factor to consolidate the foundation value of "excellent personnel" in accordance with professional capacity, professional and professional training that the bank is looking forward to This position gave me the best oppotunity to observe and recognize the differences in working culture between Techcombank and its competitors, thereby the impacts of these differences on the development of the company was identified For this reasons, it is clear that the tasks assigned to me were very much related to the subject matter of the human resources management impacts on the business strategy of Techcombank, indeed:

 During my internship at Human Resource Business Partner Officer, I have experienced and understood Techcombank's personnel management policies

 Besides, I also work with foreign experts from different countries to help me have more comprehensive assessment of the human resource management method that the bank is developing and applying

 I know how to apply the provisions of the labor law and personnel policies of the bank to solve problems with workers

 I have accumulated a lot of practical experience that gives me the knowledge to develop personnel policies

These experiences help me to implement well the problem of consulting human resources activities for companies operating in finance and banking as well as to propose some solutions to improve the efficiency of human resource management of the bank

3.3 The Goal to Reach

My individual action plan to complete the subject matter and goals during the internship period:

Research regulations of Vietnamese law regulating the bank’s

operation model

Mastering the legal documents regulating the commercial bank and foreign banks operating in Vietnam

 Understand the scope of Techcombank’s business, its products and services, its customers and main partners

 Have a thorough knowledge of the bank organizational structure, the function of each division and learn how the business running in the system

16th - 20thJun, 2019

Study the working culture of the Company

and its different partners

 Be aware of the communication system within the company and between the company and its partners

22th Jun, 2019

Studying the operating human resource management activities

human resource management activities

 Provide effective and timely human resources support to assigned area

 Partner with Operations to source and select candidates for current and future hiring needs  Assist supervisors on employee relations issues

and act as communication channel between employees, management and union as needed  Support change management initiatives  Maintain HRIS records and personnel files  Analyze data to improve in areas such as

capability development of employees, hiring sources, time to fill and other areas that impact workforce planning

 Perform other duties as requested by leadership

1st July – 20th Sep, 2019

3.4 The Contribution to the Company

In general, during my internship, I contribute to the day-to-day work of the Human Resource Management Division and I believe that my efforts will help the bank expand its business strategy and operate effective human resource management, namely: