Building up a retail banking business strategy in period of 2009-2013 for Vietnam International Commercial Joint Stock Bank (VIB)

CES GRIGGS UNIVERSITY ee CF Global ee Advanced CAPSTONE Master of Business PROJECT BUILDING UP A RETAIL IN PERIOD OF 2009-2013 FOR VIETNAM COMMERCIAL BANKING REPORT BUSINESS JOINT STOCK Administration STRATEGY INTERNATIONAL BANK (VIB) Group No Nguyen Thị Thanh Thuy Le Van Minh Nguyen Thi Dieu Linh Phung Anh Tuan HANOL, 01 - 2010 | ACKNOWLEDGEMENT We would like to express our gratitude to all those who have contributed to and who gave us “BUILDING OF 2009- the possibility to complete UP A RETAIL, BANKING 2013 FOR VIETNAM our Capstone BUSINESS INTERNATIONAL Project Report STRATEGY named IN PERIOD COMMERCIAL JOINT STOCK BANK (VIB)” We are deeply indebted to our lecturers Ass Prof Dr Ngo Kim Thanh, MBA Sandy Ewart and The Advisory Board whose communicate valuable knowledge as Well as help, stimulating suggestions and encouragement helped us in all the time of research for and writing of this project report We want to thank the Vietnam International Commercial Joint Stock Bank (VIB) for giving us permission to commence this project in the first instance, to the necessary research work and to use bank data We are bound to the ETC Center and all the lecturers for their stimulating support and encouragement Last but not least, we would like to give our special thanks to our family, our friends and colleagues whose patient love enabled us to complete this work Commitment We commit that the Capstone Project Report on “Building up a Retail Banking Business Strategies in the period of 2009 - 2013 for Vietnam International Commercial Joint Stock instructions Bank (VIB)” of Associate is our Professor, own Dr study Ngo implementing Kim Thanh under This the is the scientific result of independent study and has not been copied from any part or all of any works Figures and facts herein are true and extracted from legal and reliable sources Study results in the thesis have not been made public in any works so far TABLE lì CHỢ GSII ERROTLTN: sien er Jae Ue once OF CONTENTS eee or eon em Niifi9W6-X i rere il luÐỆt G .1 Ho TẾ sransasuiltilGLT0S843100áagbxä0lllGieeaerosseudynksossGisdiolfGISENEGIBERlREVtBgRicbsdaave lil List ies EHEE TClễ 6s eens dhastsiiliifutinBQi9i8064i0t833000040049630010406 da sasansdilfsi8Vš 1V rrreeertdiddbidL040002ã64Ai6kitgsgssstaagstbssselfiktebskbilskaQfak G04L2M8Rgeassseagsesee l Chapter l— Literature review on business strafeøy a [1 Concepis and role of corporate BUSINESS SIDBIEDY scaniciccomrmsmasscrsnnnnis a lilgl SOME CONCEPIS OH DUSIIeSs STHICEY sans cans errors 1ula2 JSIERGÍ ĐIISINGSS SỈBRÁU tin 0á kibgh di chia bosassasosag GA lel BUBINGSY SUEICSY D000 TLS LCE vinnsrnemmrna timelines SUEY BRGEÍ nang tú Quá0ã La bai LQbaseessossaassSE § by keo 2017116 BDRHEEV TITCI aess csseasevlkkbbïllaroratiksoglbons sei 1;1.5(3 THIẾTPTEHV SH[DGESEV THẾ c¡uáxtguadbdcbaenesanagaassE 1.2 Formulation process of comprehensive business strategy 10 L.,.L Selection ƯÍ COFfGfätðtriiSSIiGT 4H GDJ€CHWGE ;sássiioaaaeassoo LI i tl de anime doles Wiis moreno Lolo [he De OG a a ee een beni ll 11 l1 1.2.2 The external environment analysis and evaluation 12 Loess ,l110,1THTOTTIAI.GUTEEHITIENÍLHUA VBÍN waygsavtriaassaotuesroesvesisl 12 il Chapter buốt SIỌISELIOM DỊ DUNGIESS SUSE bu VD) OTM - Analyzing sssascsusilt6011030L0035538680.2kx3e6 lộ We LHÌE gøxey8fsyxoo2s9a0udu06s60,eemesvsas6l@yhXiDWSi lỗ the current retail banking services in Vietnam International Joint Stock Bank (VIB) 2.1 Overview on V tema IHGFERRHONAI HA cua l6 in cdá1ilidveeeecsasaaasesadgl l6 2.1.1 General introduction, mission and commitment of VIB 16 sáo HIẾ THẾ HIY 11116 TQ LGET” ĐỀ (GWGIHDWTIETHE suysaazessszsszrdibvobioaigl 18 2.2 Analysis of impacts of business environment at all levels 19 2.2.1 International Pe financial — monetary crisis & world economic aoe meen POO On Ve) iwi eee oe ee 19 20 2.2.3 Environment for activities of Vietnam banking sector Lo 2.2.3.1 Context and activity trends of Vietnam banking sector 25 2.2.3.2 Structure and size of Vietnam banking industry 28 2.2.3.3 Rivalry evaluation in Vietnam banking industry 30 2.2.4 Overview on the Vietnam retail banking market ao 2.3 Opportunities and Threats for Vietnam retail banking operation 39 23.1 Opportunities of the retail barking Operanion so sinsiisscsswscanunnascie 39 Zn UUPCAS Ol Wie TU iments ion REE 42 2.4 Internal analysis of Vietnam International Bank (VIB) 43 2.4.1 Structure organization, products and operations of VIB .5 43 2A Ai), SUCIS QUBARIZANOR, oc ctctaaticcer aire eensamnaxcledim 43 li bolas VALS8 DO TT hi BENGà scuvsuibavfGOQ th\êNGhñGUGãv3tdAng 44 2.4.1.3 Performance of VIB in retailing bank services 45 tal BUBGCIIS GE VLD sinjstinmarssmnnvamcanadigld GR more we 48 24.2.1 Repardine Core-banking technology siescsesereaeesem wes 48 2.4.2.2 Regarding customer services quality and policy 48 272.) ear ule TANG! TESOUICES + seuasestssassisslVBGXIGGI20095888y xiảA 49 242% Regarding DDEHIHOH H€EVWOIK dụ bay s0 622442266asasaasssasade VE4 49 2.4.2.5 Regarding organization and personnel structure 50 242.6 Regarding Operalion MANACEMOUL diss sissiiiiinaceeranenme vx 50 And ROPALUIns ItpAge Giid ticeMatle scwineatiaweeirmeenows S| 2428 Regarding quantity Of CUStOMENS sxiiiiinncvisaueecvawsaus vive si choi VY DI RIOSSGG ÔI, NẬT2 dýisgdtgpebsgGeeogieesgyrievXếivS4/4lGSGAQĂLãSERordetsgssliaiis a2 2.4.3.1 Regarding VIB’s position in Vietnam Dae CV Geer đit uc RiEPAVGTHIU SHIIEE THÍ Commercial Joint Stock eee Số tuc BunbiiiiakkcLiaaGIl1ä0fBlk48 vem 53 si bo12:4-IED HETI|TÌS THỊ TÌHEITC Lỗ) B0ổ sa sex tú bi dã lũcd tap guaugpsaesgsbeel 54 ae Regarding DUSMIESS PETLOMTIANCS sauis xen giá6esensa lêd 3ê Dong 54 24.3.5 RGEHEOIHP GI06TAH[OR( đ8Ưi@EGHGH cac cũ vá túi nghb Gà coogyA toa a0 24.5.0 ReSarding 0fEArillzBiTOFLRIYUCIUFÔ vvoaisvesediodddidd s60ia-c,sSÕÐ 24.3.) REBGTCIIG PYOCUEt GEVElOPIMENL ¡uauxitcaaekdicaosgaesesssarsseake 56 2.5) CONCIUS ON semuess ene 3í li Chapter3- Building up a retailing business strategy for VIB in the period of 2010 — 2013 = Salutions and Performance Schedule ccnrasismenineassrensnwns 58 ob DIRE Se SC ieee oe 52 SUMS CONGR ia ctuiativiwcsmentina in ee B21 Uverview Of VIE § SUGIS07 DHIE Lỗ 58 63 saygguangssseedveceeeoetolsdssaoe 63 3.2.2 Specific plan for VIB retail bBanking setvices tO 20 LÀ suecooieee 64 3.2.2.1 Business objectives of retail banking in each period 64 3.2.2.2 The strategy orientation and operation methods 64 Si G1fä†16>3ÿ TriplefticiitsiGR BBIH[DPlE sosseeeaozaayaaa-eeagzasusssasCilldusiG0BEbESàihiii 65 ii |: sme ONENMION.: cmnemees 343¡LxÌ J€f6†ffnrliftế Le EafÐet DUSEOIGÙE sua cua 65 eves 65 3.3.1.2 Organization model re-structure on the direction of customer — KG GHÊÍ lạ ung tu átdsưusuungnpgeoensonssseslsnposibasdBlti@lill\ibitMetiiasai@0ieE 69 3.5.2 F ĐÒdLtGE gi PiiCG LJEVEIOBINIGHIÍ ssuaxatsdsbiisiasissagsẽ kebeteidciaSa i 030) VOU a oe ccc v0 PROGUELS DOGS (alicia ie os aeons 3.3.0 DISIGUUOn CHAE creed cmc C.de Marketp atid dena: ivi 74 75 enn 77 3.4 IiifilenrieifliliofTRORGIBHW duacrceasereoagaaadaxassssasenadidkstliudli (G8200 eee 80 24.) Imiplementaen SONGTHÌE nouoxprdoesatcpbidrisibưi G03 erences 80 3.4.2 Implementation when converting the structure of branch model 81 il 3.4.2.1 Setting up a project team on new business strategy model CONVEISION suueae ŠD(Nguidiosviigirggi.g8220g000annzs.esz.bsaxšERBSävebfgiisal 81 3.4.2.2 Communication CORCLUSION ionamin RO REEELREN CES nmin imc ero RR il Gani 84 87 LIST OF TABLES LÑo | Table No LÍ | Table’s Name _ lại SWOT Matrix Lạ Zak Forecast on Vietnam basic economic indicator in 2010 — 2013 ey 22 Number of banks in the period of 1997 — 2007 la | 23 Data on growth criteria of Vietnam banking industry 200 - 2007 Lạ 2.4 Loan market share in the period of 2000 — 2007 ry Bud Mobilization market share in period of 2000 — 2007 25 Performance of retailing business of VIB a VIB’s SWOT Matrix lạ| , 3.2 Business objective of retail banking in each period Jud Distribution Channels of VIB 10 ill No Figure No Figure’s Name Ll Strategy Types bạo Strategy Implementation dul VIB’s Retail Bank Region l8 52 VIB Business Units 3.3 Project team on new business strategy model LIST OF GRAPHS No Graph No Graph’s Name ; Lek Vietnam Retail Banking market Z Zak Customer rate of banking service _ 2.3 Loan Expansive level 2.4 Vietnam Commercial Joint Stock Bank as per total assets 2008 a LIST OF FIGURES PREFACES Nowadays the international economic developing countries For significant direction, acting international arena and Vietnam, as integration is indispensable trend in the international! a premise bringing series integration for constructing of the opportunities to is a proper and position the in the prompt and sustainable development for the national economy However, the integration also gives out big threats to Vietnamese enterprises; especially the commercial banks — the special enterprises operating in monetary- credit fields To conquer the threats and optimizing good opportunities, Vietnam Commercial Banks are required to select a sound direction, applying a sensible and timely business strategy The banking promptly launch management abundant integration their increase, Vietnamese development, Modern potential creating competition capital coverage improvement financial requires technology, of overseas banks Commercial technical management will be the Banks to investment and competence and basic advantages, in the banking industry resulting in the Vietnamese banks’ technical investment, management reform and modernization of the payment system to improve performance and competitiveness It is possible to say that in such a cut- throat competition and difficult coniext as present, any banks who take a proper strategy, optimize opportunities and well match with the threats will be the winner and their position in the world financial banking market will be stable The availability activities proves of commercial a fact that “where banks in most a commercial of the bank socio- system economic develops, there obtains high development of the socio-economy and vice versa” With response to the urgent issue synchronously and of having effectively, a strategy making to develop contribution the to the commercial national banks economic development in the trend of international economic integration, majority of group ... staffs of VIB, we decide to select and make a research on: ? ?BUILDING UP A RETAIL BANKING BUSINESS IN PERIOD OF 2009 - 2013 - FOR VIETNAM COMMERCIAL STRATEGY INTERNATIONAL JOINT STOCK BANK (VIB)? ??... study includes 03 main parts: Chapter I: Literature review on business strategy Chapter II: Analyzing the current retail banking services in Vietnam International Commercial Joint Stock Bank (VIB). .. trends of Vietnam banking sector 25 2.2.3.2 Structure and size of Vietnam banking industry 28 2.2.3.3 Rivalry evaluation in Vietnam banking industry 30 2.2.4 Overview on the Vietnam retail banking