LIST OF ABBREVIATIONS ATM : Automatic teller machine VPBank : Vietnam Prosperity Joint Stock Commercial Bank WTO : World Trade Organization SME : Small and Medium Enterprise.SWOT : Stren
INTRODUCTION OF VIETNAM PROSPERITY JOINT STOCK
Overview of Vietnam Prosperity Joint Stock Commercial Bank
1 Brief introduction v International name: Vietnam Prosperity Joint Stock Commercial Bank v Abbreviated name : VPBank v Headquarters: 89 Lang Ha, Dong Da District, Ha Noi v Authorized capital :25.299.868.790.000 VND v Tax code: 0100233583
SWIFT code: VPBKVNVX v Email: Chamsockhachhang@vpbank.com.vn v Website: http://vpbank.com.vn/ v Business:
• Personal Services: Payroll, Domestic Remittance, International Remittance, Foreign Exchange, Deposit, Custody, On-site Banking, Foreign Currency Audit, Note Counting
2 Formation and development of Vietnam Prosperity Joint Stock Commercial Bank
• August 12, 1993: Vietnam Joint Stock Commercial Bank for Non-State Enterprises was established
• VPBank was granted official approval by the State Bank to change its name to Vietnam Prosperity Joint Stock Commercial Bank Aftermath of this significant event, VPBank officially introduced a new logo and a brand identity system
• From 2010 to now: Vietnam Prosperity Joint Stock Commercial Bank
3 The achievements and number of employees of VPBank through the time
• In 2017, VPBank ranked in Top Asia Employer Brand 2017
VPBank receives 3 prestigious international awards, i.e SME Bank of the Year, Vietnam Domestic Cash Management Bank of the Year Award and New Consumer Lending Product of the Year for ‘Tax+ loan’ product of CommCredit from Asian Banking and Finance
Forbes Vietnam announced the Vietnam’s 40 most valuable company brands, in which VPBank brand was valued at USD 46.6 million, naming it as the fifth most valuable bank brand in Vietnam and the second most valuable joint stock commercial bank brand
Vietnam Report has honored VPBank in Top 3 joint stock commercial banks and in top 10 banks in Vietnam in 2017
Moody’s upgrades VPBank’s credit ratings to B2 from B3
CommCredit was honorred at Top 3 of Vietnam Trade Services Awards in financial services sector
VPBank was honored “Best Banking Brand in Vietnam 2017” by Global Brands Magazine (GBM)
• In 2016, VPBank is honored to be Vietnam happiest place to work, Top 26 Vietnam best places to work and Top 5 Vietnam best banks to work in 2016
“The Asian Banker Vietnam Country Awards 2017- Best Unsecured Lending
Product in Vietnam” by The Asian Banker
• In 2015, Best Commercial Bank of The Year 2015 by International Banker magazine
Best Practices Award by TDWI (The Data Warehousing Institute)
SME of the year 2015 by Asian Banking and Finance (ABF) magazine
Best Banking Product 2015 by Global Banking and Finance Review magazine Best Internet Bank 2015 by Global Banking and Finance Review magazine
• In 2013, Global Banking and Finance Review
Most Innovative Retail Bank Vietnam Award 2013 by Global Banking and Finance Review
Customers’ Trusted Brands Award 2013 by the Intellectual Property Association of
Ho Chi Minh City and Saigon Enterprise network
Typical Brand Award 2013 by the Institute of SMEs Research and Development, and Vietnam Business Council
• In 2012, STP Award 2012 by the Bank of New York Mellon (U.S.)
• In 2011, Top 100 Most Trusted Vietnamese Products/Services
Top 500 Biggest Enterprises in Vietnam
Top 500 Enterprises with Biggest Growth in Vietnam
• In 2010, Top Affiliated Bank having excellent network productivity in Vietnam, rewarded by Western Union
Certificate of outstanding straight through processing, rewarded by The Bank of New York – America
Trusted brand in Securities market
• In 2009, Best affiliated Bank of network productivity in Vietnam in 2009 – Best in Productivity - rewarded by Western Union
• In 2008, Top securities company in Vietnam
• In 2007, Award “For Vietnamese Entrepreneurs’ culture” granted by Vietnamese entrepreneurs’ culture center
Golden cup for National famous brands
• In 2006, Golden Cup of “Enterprise for the advancement of Society and Sustainable Development”, rewarded by the Vietnam General
• In 2005, Certificate of outstanding straight through processing, rewarded by Union Bank, USA
4.1 Loans and advances to customers
In 25 years of operations, VPBank has increased its charter capital to VND15,706 billion, expanded the number of transaction points to over 219, and grown its workforce to more than 24,000 employees
VPBank has established itself as a financially stable and dynamic commercial joint stock bank in Vietnam, achieving remarkable growth in scale and profitability Its milestones include the completion of a five-year plan to become a leading bank and the successful listing of 1.5 billion shares on the Ho Chi Minh City Stock Exchange, attracting investment from domestic and international sources.
VPBank's rapid growth is exemplified by its extensive network of branches and transaction offices, along with its diverse sales channels The bank boasts a team of highly skilled professionals in finance and banking, who possess a deep understanding of the evolving business landscape This exceptional team has played a pivotal role in establishing VPBank as a preferred choice for major corporations, both domestic and international, as well as numerous individual customers.
• Receive money via Western Union online
• Union Foreign Currency Payment Service
• Prosperity Saving with Floating Internet Rates 4.1.5 Loans
• Personal instalment Loans with Collaterals
• Loans Secured By Valuable Papers Issued By VPBank 4.1.6 Insurance
• Insurance for women – VP LADY CARE 4.1.7 VPBank Loyalty
• Loans Secured by Valuable Papers
• Medium or long-term loans for investment in fixed assets or business projects
As a comprehensive banking hub, Vietnam's financial landscape is characterized by intense competition among numerous banks Notably, VPBank faces direct rivalry from a multitude of commercial banks operating within the nation Some prominent competitors include the Asia Commercial Joint Stock Bank, Vietnam Technological and Commercial Joint Stock Bank, and Vietnam International Commercial Joint Stock Bank, each vying for market share and customer loyalty in the Vietnamese banking sector.
Organizational structure
Chart 1: The organizational structure of VPBank
Table 1: The number of employees:
3 Main office of Thang Long Branch
Address: M3-M4 Building, Nguyen Tri Thanh street, Dong Da District, Hanoi, Vietnam
To ensure its safe and effective operation, the protection, management and safe and efficient use of its assets and resources, to ensure its timely and adequate financial and management information, as well as to ensure compliance with laws and regulations, internal regulations, VPBank has been establishing and maintaining an internal control system in accordance with requirements, regulations and the best international practices for internal control and risk management
The supervisory responsibilities are assigned to the Board of Directors (“BOD”), the Chief Executive Officer (“CEO”) and the Supervisory Board (the “SB”) The BOD and the CEO are assisted by the following Committees and Councils: Internal Control, Risk Management Internal Capital Adequate Assessment Internal Audit , ,
5 Comments on the organizational structure
VPBank operates under a holding company structure, with the central banking operation serving as its core business Subsidiary companies handle various financial and non-financial activities, allowing VPBank to diversify its operations while maintaining a stable banking foundation.
INTERNSHIP ACTIVITIES AT VIETNAM PROSPERITY JOINT
A brief introduction of the transaction office
1.1 A brief introduction of VPBank – Thang Long Branch
According to the Citation of Acceptance No 365 / NHNN HAN7 on the 30th of - February, the State Bank of Vietnam-Hanoi Branch allowed VPBank to open three Il-level branches in Hanoi including Thanh Xuan Branch, Bau Giay Branch and Thang Long Branch According to the official dispatch on October 21, 2005, Vietnam State Bank allowed VPBank to upgrade Thang Long Branch from level I to level II The branch was established with purpose of fulfilling the increasing needs for activities and competition in the business world It was under the direct function and management of Vietnam Joint Stock Commercial Bank
October 22, 2005, VPBank inaugurated its 28th transaction point Thang Long Branch which was the first branch to apply the finalized brand identity system of VPBank’s new released logo in Hanoi
Thang Long Branch in Ha Noi has transaction offices located on conspicuous streets within an easy reach for most people
1.2 Organizational structure in VPBank – Thang Long Branch
The organizational structure of Thang Long Branch: According to Decision No 481-2002 / QD-HDQT dated July 19, 2002 of the Chairman of the Board of Directors on promulgating the organizational and operational regulations of the branch, the organizational structure of Thang Long Branch includes the following professional departments:
Those transaction office of Thang Long Branch is located on main streets of Hanoi including Nam Tu Liem office.
Starting and ending dates of internship
Description of internship activities
At 9:00 am on Feb 21 st I arrived at the Transaction Office of Nam Tu Liem to be interviewed for a position in Private Customer Relationship Department Waiting for my turn, I had butterflies in my stomach under judging eyes of people surrounding me Finally the director came and all employees stopped their ongoing tasks to stand greeting him respectfully Fortunately, I passed the interview to start working as an intern in morning shifts since the following morning I left the office in excitement looking forward to working for that hospitable director
Feb 22th was the first day of my internship That morning, I had to wake up much earlier than usual to come to the office on time at 8:00 Entering the room, I received a load of questions: “What’s your name?” “How old are you?” “Why do you apply for this job?” Then they suddenly turned to mock a guy coming late and someone said “Hey Dung, there is a new junior in our team today” Later on I found myself sitting next to a female compatriot After a couple working hours, I felt Dung – the junior member I’ve mentioned above – was one of the most impressive members People had another chance to mock Dung again when Mr Director assigned him as my instructor and told me to sit near him As he was introducing
My time at the Collection and Administration departments introduced me to Thinh, Mr Thu, and Mr Hoang, who welcomed me with warmth and concern Despite my self-doubt, Dung reassured me, stating that Banking Academy students are renowned for their humility, citing individuals like Mr Thu and Huyen as examples This realization inspired me, instilling confidence in my abilities.
My first day as an intern marked a significant milestone, bringing me into contact with individuals who would become valuable connections in my professional journey Notably, Mr Thu and Mr Instructor, who were both graduates of my university (from generations 11 and 17 respectively), played a crucial role in expanding my network and shaping my early experiences in the industry.
Feb 23th, today Dung, my instructor, gave me a thick book which he used to learn from as a freshman here My task was to finish the book then checked my knowledge with Dung I also spent a week learning how to make a credit card and dealing a life insurance I was promised an award of 100,000 VND for successfully creating a card and 200,000 VND for dealing insurance Along with his thorough guidance, I applied what I had learnt from the handy book the way to attract clients Dung asked “Are you afraid of making a very first call? Any fear?” or “You shouldn’t have talked that way Next time, remember to be more subtle and tactful.” Once I got the hang of telesales, he taught me how to write a record Under no circumstance is any mistaken displayed on the document so I tried writing with a pencil at first Had it not been for Dung’s invaluable and in depth guide, I would - hardly have improved in a short period of one week Deep down I was filled with tremendous admiration for his profound knowledge and intelligence Sometimes, I also had precious chances to hang out and went playing badminton with him after work
As the only intern in the office, I received generous help from my colleagues even when they were busy with their own tasks The second week was the milestone of my first client visit led by Mr Thinh who was genuinely experienced in persuading and communicating with customers Hence, I could learn more about the way to handle various situations and win people
Beside those formal works, I was also responsible for doing manual things including photocopying, submitting records, buying coffees and so on My boss also granted me the precious privilege to attend opening meetings on every Monday and Wednesday morning However, there was one time that I did behave inappropriately giggling while he was scolding those employees showing up late Looking back, how stupid and ashamed I was!
My work proceeded without any special events until I heard that my instructor would leave the office in few weeks I fell into a deep blue and emptiness But I had to keep up my good performance anyway so I continued learning with Mr Thinh as my direct instructor then My very first time to drink liquor was in Dung’s farewell party The bright side was I had a stronger bonding with the team since that supposed- -to be-sad party
One day the system malfunctioned and all data was converted into English causing a drastic chaos The staffasked me for help as they knew my major was English Language Familiar as those words appeared to my eyes, I could barely translate a sentence The same problems arose when I read specialized materials in English What’s more, these dealt with Economics, Monetary Finance, Commercial Banking which I paid little attention to during my courses at university If only I had devoted to study seriously, my English-related assignment would have become as easy as a cake This time I promised to myself to try my best to improve both my study results and work performance
Time passed and it has been 3 months since my first day at work I have improved my capability from time to time here ranging from knowledge, task management to communication skills Now that I realize I need to work on my diligence, qualification and carefulness
I do hope my commitment and devotion would be recognized so that I would have a better chance to work as a collaborator after my internship ends.
Critical analysis
VPBank successfully presents a sample of high quality banking service and ambitiously orients to become one of the largest retail banks in Vietnam
In the retrospect, this enternship in VPBank has well prepared me with certain core skills and knowledge for my future job as a banker
First of all, like other banks, VPBank displays a keen sense of professionalism for its dynamic, highly transparent and diverse working environment
Second, your communication skills are challenged and refined in this dynamic environment Only after one year experience not only your communication ability will be solidified but also your circle of relationships will expand considerably All of these progresses, therefore, boost your expertise maturity so you can climb up the position ladder within your organization faster as a customer relationship officer Thirdly, in general, VPBank employees usually obtain reasonable compensation referring generous salaries and bonuses compared to their counterparts However, awarded bonuses are reliant to the specific number of targets a banker reaches Forth, at VPBank career prospects are open to any devoting employee To clarify, finishing 3 consecutive assessments means an immediate internal promotion to a higher position Besides, the more experience one employee gains, the more chances that he/she is assigned for more serious responsibilities in another branch Last but not least, such a healthy working environment is beneficial to your entire working development in the later years Once working in fast-paced workplace as VPBank, a fresh graduate gradually form his critical thinking, stress endurance, multi-tasking capability and so forth Those are the essential qualities that determine one’s competitiveness in today’s cutthroat work labor market
To recap, by virtue of hands-one experience at VPBank Branch during 3 months together with profound knowledge absorbed at Banking Academy, I am now setting my feet on the pathway to becoming a qualified banker after graduation from university
VPBank's implementation of e-banking has encountered challenges due to low user familiarity with electronic banking methods This lack of adoption necessitates a comprehensive review and reconsideration of VPBank's e-banking initiatives to address the underlying causes and enhance user engagement.
As a matter of fact, with a limited literary civilization, the number of technology users in Vietnam is not high, which makes the application of an internet based - products like E bank not yet favored by the majority of Vietnamese in - comparison with the conventional ones
Employees: The well-trained staff of the Bank is well-known for being highly qualified in terms of interactive and experience level to fully address any financial problems Those aforementioned compelling qualities apparently earn them priorities in many potential for profit policies and projects becoming one of the - , strategic partners with the government
VPBank has continuously operated efficient transaction services for not only domestic clients with VPBank credit cards but also international ones with global cards as Visa, Master Card, American Express and VPBank Vietnam Airlines
In addition, VPBank also offer top-up payment for mobile subscribers of popular telecom operators in Vietnam: Mobifone, Vinaphone, and Viettel Other main services are bill payment for postpaid mobile phone services of Viettel, Mobifone, home phone and ADSL of Viettel Telecom, telephone service of Saigon South Telephone Center (SST), and query information and transaction history of payment accounts enrolled at VPBank
VPBank boasts a broad branch network, surpassing its peers, due to its numerous partnerships with affiliated companies in various financial sectors, including debt management, asset management, and securities Established in the North in 1993, VPBank holds the distinction of being the earliest established bank in the region Its long-standing experience in the industry has fostered a strong and loyal customer base.
One obvious shortcoming is management inefficiency In other words, the operation system has run ineffectively and has established few connections with other commercial banks
The shortage of specialized manpower and infrastructure in IT department remains unsolved
Considering human resources especially senior staff, policy analysts, notwithstanding considerable number of senior leaders with bachelor degrees and higher, there is a serious lack of employees with CFA certificate level 3 - certificate of policy analyst Furthermore, customers sometimes undergo inconvenience caused by malfunction of the ATM systems including erroneous transferring line, system corruption, cash exhaustion and alike On peak days like holidays, New Year, Saturday, Sunday the situation can worsen
The source of income flow is monotonous and vulnerable to any sudden even most insignificant change in the interest rates and the credit market
Types of services that VPBank offers are somehow poor It may stem from either unattractive marketing campaigns or inappropriate services mismatching demanding clients in general
Existing promotion programs and brand advertisements remains at a low content quality Marketing activities are at present are still limited to dull awarded prizes and few gifts only
VPBank's website appears relatively poorly designed with inadequate attention from the administration Additionally, the displayed functions are also of mediocre qualities
Regarding economic growth, it is safe to say that the macroeconomic development foundation of our developing country remains relatively high The annual growth rate is estimated at roughly 7-8% while that of the banking sector is tremendous at 20% Moreover, membership of WTO will bring about a rise in demands for international payment and cash transfers so VPBank can capitalize on the integration process to generate massive revenues
Government policies enforcing cash payment restrictions have transformed transaction patterns, fostering banking adoption Individuals now routinely receive salaries through ATMs, maintain personal bank accounts, and use e-banking platforms or ATM cards for utility payments and purchases These microeconomic transactions have established a continuous revenue stream for VPBank.
International economic integration allows VPBank to grasp knowledge about the world finance and foreign financial models Globalization process, therefore, stimulates the domestic financial market and fuels chances for banks to develop new types of services
Entering the international financial games as a state-owned bank, VPBank needs to review and adjust its supervision and regulations to satisfy the worldwide requirements for finance security and operation safety including the Bank's safety ratios, classification, deduction, and use of risk-offsetting reserves, security credit, bankruptcy It is essential that amendment and supplement be made to legal documents of banking operations to be in alignment with national currency practice VPBank experienced a severely negative consequence of shrinking in all financial sectors
Strong competition in the capital is still an unsolved puzzle in deposit mobilization
Shifts in the stock market have driven significant adjustments in customer investment behavior and have resulted in changing bank liquidity dynamics Within this competitive landscape, VPBank faces fierce challenges from major rivals such as Vietcombank, Technocombank, and ACB, who have encroached upon its market share.
RECOMMENDATIN FOR IMPROVING
In general, suggested solutions in my report are recommended on the basement of remaining problems I have recently analyzed in the previous parts
1 E-banking: To develop E banking service,- VPBank should find an appropriate approach which matches limited technological capability of Vietnam citizens Therefore, an easy and user-friendly interface with a comprehensible guide for even an average electronic device user is the key Next, VPBank is supposed to reinforce the cyber banking security to increase its international credibility for safe transaction in the eyes of foreign partners and clients
2 Training and motivation programs for employees: It is highly recommended that online course or usual training sessions are held to keep the whole staff up-to-date with new solutions to current financial affairs In practice, these 2-3 day trainings can take place either online or online to maximize the convenience for all employees Further methods can be sponsoring exchange programs for senior and top-performing employees to another better developed branches or foreign partner banks In addition, an award system aims at employees with the greatest leap in professional prowess instead of those with the highest achievement would strongly fuel their competitiveness to strive for better performance These awards can be certain off-work days, free lunch with the boss, a paper of honorable recognition hung in the office, and so forth
3 Improvement on customer services: One simple but effective way is online suggestion boxes so that customers can swiftly give feedback on service and earn bonuses or promotion for their constructive ideas The integration of service quality evaluation as supporting method would also be a noteworthy idea There is hardly any doubt that employees would work more responsibly under the observation of a powerful figure in the corporation
4 Diversify financial services on multi-facets
The primary strategy is flexible prompts and interest rates to meet the demands of various customers from businesses, enterprises to individuals
This requires a lean operation process able to quickly react to such specific offers for a large number of customers In this Technology 4.0 with the thriving of hi tech technologies for daily need consisting Grab, Grab Food, - Shopee, Amazon and the like, VPBank should extend linking programs with those internet-based platforms through latest digital transaction channels namely ATM, Internet Banking, Mobile Banking to facilitate loyal customers and captive potential customers who are active consumers All unaddressed niches are promising investment chances to enrich the bank’s revenue Moreover, it is a must to clarify the structure between equity and capital mobilized by the Bank via a roadmap enhancing equity to gain the ratio of equity to total loans for investment credit and export credit of Vietnam Development Bank for each stage
Another key tactic lies in standardizing the business processes in order to accommodate the requirements of policies under the Party's and State's guidelines and varying banking services resonating with investment credit and export credit policies of the State
Leveraging Big Data enables the creation of personalized advertising campaigns that align with individuals' specific behaviors and preferences By understanding past usage patterns, marketers can deliver tailored messages at critical life stages, such as graduating from college, purchasing a first car, or starting a new business This approach allows VPBank to position itself as a proactive and supportive financial institution that is present at key moments in its customers' lives, fostering brand loyalty and trust.
6 General orientation: VPBank can plausibly expand its market scale in the age of global integration Detailed operational orientations for the strategy set out specific implementation procedures such as: revising the legal framework for the operation of the Vietnam Development Bank, supplementing the chartered capital to the Vietnam Development Bank; maintaining and bettering the operation efficiency and quality in terms of administration apparatus and staff, proceed to develop facilities, techniques and human resources and improve inspection and supervision quality of state management agencies and internal control
7 Customer care in post-sale
It is one of the most critical steps which many Customer Relationship Department Consultants often forget their responsibilities for their customers after completing the sales Accordingly, VPBank needs to requires consultants to make a commitment to customer turnover monthly, particularly to two target potential customers who are individuals and SMEs.
CONCLUTION
There exist myriad of influencing factors to the whole banking industry and VPBank is no exception It is undeniable that the macro-economy of the nation and internal employees play an integral role in the developing prospect of one corporation Contributing to the customer relationship department for the last 3 months, I have composed not only an overview on VPBank divisions and agencies but my analysis of E banking and products attached with this internet based servi- - ce Then I take an insight into its shortcomings and merits together with the present challenges standing in the global integration path of VPBank
Through my internship, I've acquired practical knowledge in finance and banking, bridging the gap between theoretical and real-world experience Networking opportunities have been invaluable, allowing me to meet renowned professionals and collaborate closely with experienced colleagues Each day brought new insights and valuable feedback from seasoned peers and leaders, providing a practical and pragmatic complement to academic knowledge This exposure has fostered a deep understanding of the industry and its operations.
Early in my internship, I made the mistake of prioritizing interruptions over my assigned tasks This led to a focus on minor tasks at the expense of my main responsibilities To remedy this, my supervisor advised me to create an action plan prioritizing tasks and minimizing distractions.
“Eisenhower Matrix” to decide which one requires simultaneous actions based on four descending levels: urgent and important, important but not urgent, urgent but not important and neither important nor urgent Subsequently, my performance had remarkable improvement as I habitually followed my personal clear framework that
I design before undertaking any work Even under the busiest day of 4 major duties on demand in one afternoon, I still managed to receive compliment from my Director for successfully completing all on time
This report is a reflection of my three-month work experience at Thang Long branch Through my dedication and hard work, I believe that this experience will significantly enhance my career prospects within the company.