báo cáo thực tập tốt nghiệp tiếng anh vietinbank phu tho branch address 136 phu an street phong chau district phu tho town phu tho province

Being founded in 1988, the Joint Stock Commercial Bank for Industryand Trade VietinBank is one of the largest state-owned banks in Vietnam.. Trade- Trade Finance CenterInternational Tran

VIETNAM NATIONAL UNIVERSITY, HANOI

INTERNATIONAL SCHOOL

***

GRADUATE INTERNSHIP REPORT

INTERNSHIP COMPANY/INSTITUTION: VietinBank- Phu Tho Branch

Address: 136 Phu An Street- Phong Chau District- Phu Tho Town- Phu Tho

Province

Supervisor: PGS TS Ly Phuong Duyen Student’s full name: Ta Huong Quynh Student’s ID: 11071566

Major: International Business Class: IB 2012C

Hanoi, March 10, 2016

LETTER OF THANKS

This thesis is the result of six weeks of researching and writing It has been aninteresting and invaluable experience I would like to give my special thanks tomany people for their significant help, contribution and recommendations during myinternship and writing process

First and foremost, I would like to express my sincere thanks to Mrs LyPhuong Duyen, my supervisor at Academy of Finance, for her invaluable guidance,encouragement, kindness and support I could not have been able to complete thisthesis without her positive suggestions and guidance

I also would like to thank all the managers and staffs of Vietinbank, Phu ThoBranch for their cooperation and motivation which create chances for student toexperience new working environment in general, and evaluation for our good

Last but not least, I wish to extend my warmest thanks to my family and myfriends for their supports and encouragements in the making of this report I amtruly appreciated

TABLE OF CONTENTS LETTER OF THANKS

LITERATURE REVIEW 5

1.1 Overview of Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) 5

1.1.1 General introduction of VietinBank 5

1.1.2 Fields of operation 6

1.2 Overview of VietinBank – Phu Tho Branch 6

1.2.1 History of construction and development 6

1.2.2 Organizational structure 7

1.2.3 Main activities of VietinBank, Phu Tho Branch 10

1.2.4 Overview of business performance 10

CHAPER 2: 14

REPORT OVER CAPITAL MOBILIZATION OPERATION OF VIETINBANK- PHU THO BRANCH 14

2.1 Forms of capital mobilization at VietinBank- Phu Tho Branch 14

2.1.1 Classification by time 14

2.1.2 Classification by object 15

2.2 Products of capital mobilization at VietinBank- Phu Tho Branch 17

2.3 Analysis capital mobilization result of VietinBank, Phu Tho Branch in 2013-2015.19 2.3.1 Capital mobilization based on short, medium and long term 19

2.3.2 Capital mobilization based on term 21

2.4 Assessment capital mobilization of VietinBank- Phu Tho Branch 22

2.4.1 Achievement 22

2.4.2 Limitation 23

CHAPTER 3: 21

INTERNSHIP PURPOSE AND ROLES 21

3.1 Internship purpose 21

3.2 Assigned work 21

3.3 Method of implementing 22

CHAPTER 4: 23

EXPERIENCE GAINED AND CONTRIBUTION 23

4.1 Experience gained 23

4.1.1 Applied knowledge 23

4.1.2 Marketing 23

4.1.3 Soft skill 23

4.2 Contribution to the company 24

4.3 Recommendation for enhancing the efficiency of capital mobilization 24

CONCLUSION 27

Trade (VietinBank)

1.1.1 General introduction of VietinBank

Vietnam Joint-Stock Commercial Bank for Industry and Trade(VietinBank) was established in 1988 after being separated from the State Bank

of Vietnam From a state-owned bank with initial tasks of only providingdomestic financial and banking services, VietinBank has made great strides andstrongly developed into one of the most modern and effective financial andbanking groups in the country

Being founded in 1988, the Joint Stock Commercial Bank for Industryand Trade (VietinBank) is one of the largest state-owned banks in Vietnam Ithas strategic partnerships with the International Finance Corporation andMitsubishi UFJ Financial Group It has a market capitalization of VND 53.22trillion (around $2.5 billion) as of late 2012, making it one of Vietnam's largestlisted companies According to the VNR500 (Top 500) ranking, VietinBank isVietnam's 13th largest company Besides, it has also built the largest enterprisecustomers, while confirming the implementation of prestigious items, objectives,economic programs and social security of the country

VietinBank owns the large local network with 151 branches, more 1000transaction offices and high number of enterprise customers (about 100,000enterprises) with some large corporations in various fields of industry It tradeswith over 900 banks/ financial institutions in more than 90 countries around theworld

Full name: Vietnam Joint Stock Commercial Bank for Industry and

Trade- Trade Finance Center

International Transaction: VietinBank Trade Finance Center (VTFC) Abbreviated name: VietinBank

Address: 34 Cua Nam Street, Hoan Kiem District, Hanoi City

1.1.2 Fields of operation

Business operation of VietinBank includes activities in four main areas.Firstly, in banking, VietinBank functions as a leading experienced bankproviding full of banking services such as: financial services, brokerage, loansyndication and advisory, modern, convenient banking products Secondly,VietinBank also provides products for non-life insurance designed to match theoverall package to customers of VietinBank Next, in stock field, VietinBankprovides a wide range of brokerage services, investment and investmentconsultant with the ability of quickly developing a system of agents to receiveorders nationwide VietinBank is the largest bank listed on the stock exchange

in Viet Nam in terms of total assets, lending, and deposits and VietinBankremains the second largest bank in terms of branch network… Last but not least,VietinBank’s activities in financial investment include financial leasing,security trading and capital contribution with the aim of establishing investmentcompanies to the project; Especially, it plays a leading role in coordinating a lot

of key projects of the country such as highway, international airport, etc

1.2 Overview of VietinBank – Phu Tho Branch

1.2.1 History of construction and development

Vietnam Joint Stock Commercial Bank for Industry and Trade –Phu ThoBranch (VietinBank – Phu Tho Branch) was founded on 15/07/2006,

headquartered at No 136, Phu An Street, Phong Chau District, Phu Tho Town,Phu Tho Province Establishment and development history of VietinBank, Phu

Tho Branch also associated with the history and development of VietinBank.

In 2006 budget allocation department split from BIDV according to

Government, became the General department of industry and trade, directlyunder the Finance Department Therefore, VietinBank was not totally acommercial bank It was a state-owned bank, which has funds receiving from thestate budget to carry out allocation and loan in the capital construction sectorfunction

VietinBank generally and Vietinbank – Phu Tho Branch in particularlyhas actually worked as a commercial bank VietinBank – Phu Tho Branch isresponsible for mobilizing short, medium and long-term funds from economicelements: non-government organizations, credit organizations, businesses,residents and foreign organizations in VND and USD in order to give short,medium and long-term loans to all organizations, economic elements andresidents

1.2.2 Organizational structure

The organizational structure of VietinBank, Phu Tho Branch is a modernone that is based on the law and business environment characteristics ofVietnam, the management requirements of VietinBan and the main functions ofeach department Main functions and tasks of each department has been clearlyidentified to ensure the connection among the departments and to meet therequirements of management in the branch

Board of Directors: is responsible to BIDV for entire the branch‟s

business result and in charge of managing directly all the activities

Enterprises Customers Relation Department: makes international payment,

loans, and builds good relationship with enterprises

Individual Customers Relation Department: makes international payments,

loans, and builds good relationship with individuals

Credit Management Department: analyzes customers information, makes

appraisal process to meet the borrowing demand of customers

Enterprises Customers Transaction Department: makes monetary

transactions with enterprises

Individuals Customers Transaction Department: makes monetary

transactions with individuals

Budget Services and Management Department: is responsible for storing,

transporting, managing cash or other valuable papers, identifying counterfeitmoney and making budget services at the branch

Risks Management Department: manages risks in the branch.

Financial Accounting Department: is responsible to Board of Directors for

building financial plans and the branch‟s financial situation

Human Resource Department: arranges and assigns other tasks for the

staffs

General Planning Department: collects information, analyzes market,

builds business plans, and manages foreign currency trading to ensure stablebusiness performance of the branch

Figure 1.1: The organizational structure of VietinBank, Phu Tho Branch

1.2.3 Main activities of VietinBank, Phu Tho Branch

Main activities of VietinBank, Phu Tho Branch include:

Relation

Group

Risks Group

Operation Group

Internal Group

Risks Manage ment Dept

Credit Managemnt Dept

Financial Accounting Dept

Human Resource Dept

General Planning Dept

Văn Phòng

Budget Services&

Managemnt Dept

Raising capital in Vietnam dong and foreign currencies from residents

and all organizations, economic elements in various forms

Lending short, medium and long-term in Vietnam dong and foreign

currencies

Being a fiduciary agent capitalizing, lending from the official

development assistance source of the government, other countries and financeand credit institutions to firms operating in Vietnam

Investing in the form of contributing capital, joint venture, associated with

the domestic and foreign economic organization, finance and credit institutions

Implementing quick money transfer services, domestic payment via

computer networks and international payment via SWIFT global network

Being a payment agent of international credit cards: Visa, ATM

Implementing service funds: foreign currency exchange, payment

exchange, remittances payment, providing cash at your door

Implementing financial services: guarantee transactions, investment

Table 1.1: Business result of BIDV, Phu Tho Branch in 2011 - 2013

Unit: VND billion

Criteria Target Reality Target Reality Target Reality Profit

1.2.4.2 Capital mobilization situation

Capital always plays an important role in meeting demands ofdisbursement in credit activities As capital mobilization is one of the mostfundamental activities of banks and abundant capital helps to enhance thecredit quality and business performance, VietinBank Phu Tho Branch hasapplied a large number of policies to raise capital such as increasing interestrate of deposits, offering depositors gifts and preference rights…

Table 1.2: Capital mobilization situation at VietinBank, Phu Tho Branch in

2013 - 2015

Unit: VND billion

(Source: The General Planing Department of VietinBank, Phu Tho Branch)The table shows the stability and dominance of capital mobilization In 2013,VietinBank- Phu Tho Branch raised VND 880.4 billion, which achieved more100.2% of the year’s proposed plan In 2014, capital mobilization of the branchwas not absolutely good because in 2014, it decreases by 1.6% (VND 13.6 billion)due the unstable business status of enterprise and the changes in capitalmobilization policy of VietinBank However, this problem was solved in 2015,there was a dramatic increase by VND 196.1 billion in 2015 when the numberreached VND 1,062.8 billion (grew by 22.7%)

1.2.4.3 Capital using situation

When raising capital is the input activity of the bank, lending money is thebank‟s output This is the main operation to generate profits for the bank Loansare the largest and the most important items in the credit activity Banks usuallygive short-term loans to meet capital requirements of consuming goods andservices, serving life, investing in liquid assets in business and long-term loans forthe entry of business development, procurement sponsorship of fixed assets andinvestment projects The lending activities situation of BIDV Phu Tho Branch isrepresented in the table 1.3

Table 1.3: Outstanding loans situation at VietinBank, Phu Tho Branch in

2013 - 2015

Unit: VND billion

Criteria Year 2013 Year 2014 Year 2015

Amount Percent Amount Percent Amount Percent Based on

(Source: The General Planning Department of VietinBank, Phu Tho Branch)

According to the table, there was a steady increase in the total outstandingloans from 2013 to 2015 Short- term loans always accounted for a higherproportion (more than 60%) The figure was VND 370.5 billion in 2013 and itclimbed to VND 445.3 billion, then VND 547.2 billion in 2014 and 2015respectively The reason VietinBank Phu Tho Branch focused on short- term loanswere that the loans can be collected faster, hence these items hardly cause creditrisk to the bank This was a proper policy which contributed much to theconstraint of credit risk at the branch

CHAPER 2:

REPORT OVER CAPITAL MOBILIZATION OPERATION OF

VIETINBANK- PHU THO BRANCH2.1 Forms of capital mobilization at VietinBank- Phu Tho Branch

 Capital mobilization of short-term

It is a major mobilization of commercial banks through the issuance ofshort-term debt instruments in the money market and the business receivingshort-term deposit, cash payment, etc Most of this form is used for short-termloans (less than 1 year) or the conversion period to implement the medium-termloans Thus, interest rates are usually low

 Capital mobilization the medium-term

It is a major mobilization of commercial banks through the issuance ofmedium-term debt instruments on capital markets or receiving medium-termdeposits (from 1 to 5 years) This capital mobilization of banks can userelatively long and convenient However, interest rates are usually higher source

of short-term resources Medium-term resource mobilization is important andnecessary to carry out banking operations of investment, technological change,and the medium and long term with high interest rates

 Capital mobilization of long-term

With mobilization of long term source, banks can use easily and havehigh stability This mobilization form is very essential for borrowers who need

of long term funds Thus, interest of mobilization long term will be higher thanshort term or middle term

2.1.2 Classification by object

There are three main objects for mobilization, from resident, enterprisesand social organizations, other credit institutions

 Capital mobilization from residents

Banks raise funds from the public idle and then switch to borrowers whoneed capital to invest and expand the business Thus, mobilize resources fromthe population generally quite stable

 Capital mobilization from enterprises and social organizations

This is to mobilize resources assessment is very large, a high proportion

of the total capital resources To save time and costs in the payment, large andsmall businesses mostly have bank accounts Therefore, businesses sellinggoods are sent to the bank and withdraw money when needed Withdrawal cycle

of enterprises and social organizations are not the same Thus, banks alwayshave on hand a large sum of money which they can use a relatively favorable.However, the magnitude of this sum depends on the service, the utility thatbanks provide for using the service of customers This makes raising capitalfrom enterprises and social organizations associated with the expansion andimprovement of banking services

2.1.3 Classification by tools

There are 4 tools of capital raising activities:

Acceptance of depositsIssuance of valuable papersBorrowing between credit institutionsBorrowing of state-owned banks

 Capital mobilization through deposit business

Deposits are the amount of organizations and individuals to send in credit institutions or other organizations Deposits are an important source of cash;

make up a large proportion in the total money source of the bank To increase deposits in a competitive environment and to have capitals increasing quality, VietinBank has launched and implemented many different forms of

mobilizations such as non-term deposits, term deposits, savings deposits and the formation otherwise

 Capital mobilization through issuance operations of valuable papers

Issuance of valuable papers is a form of mobilizing capital, which is quitepopular of commercial banks and is often specified explicitly, specifically in thelaws of many countries around the world This is quite easy and facilitatessolution to raise capital from public of banks The valuable papers are debtinstruments that issued by banks to raise capital in the market

 Capital mobilization through other forms of borrowing in the market

The commercial banks appearing on the market to borrowing are usuallydue to some urgent reasons such as shortage of reserves at the central bank, thecash-strapped so besides issuing debt stock, the banks borrowing can trademutual banks in the reserve account at the central bank These are the purchaseand sale of securities that commercial banks are trading the assets held for otherfinancial intermediaries The duration of borrowing between commercialbanks are very flexible, may be a few days or may be long-term, consistentwith the capital needs of the commercial banks in each specific phase In eachcase, the loan does not continue to meet the needs of the commercial banks; thecommercial banks will borrow from the central bank In relationship with thecentral bank, commercial banks act as a regular customer and central banks as abank of other banks

2.2 Products of capital mobilization at VietinBank- Phu Tho Branch

In recent years, Vietnam's economy has a lot of very complex changes in

interest rates, exchange rates, gold prices have a negative impact on theoperation of the business and the banking system in general Especially in thecurrent context, the competitiveness greatly from foreign banks about potentialcapital and the level of technology, professional skills, the human has createdpressure on domestic banks However, capital mobilization is one of thestrengths of Vietinbank when compared with other commercial banks.Currently, Vietinbank are a lot of products are increasingly diverse depositswhich has brought more benefits to customers including:

 For individual clients:

• Non- term deposits (Deposit Payment)

• Transaction deposits (Payment Deposits)

• Non- term saving deposit

• Non-term saving deposit with tiered interest under deposit balance

• Term deposit

• Normal term deposit

• Term saving with tiered interest under deposit

• Savings with flexible interest

• Deposit with preferential interest rates

• Deposit insurance rates

• Valuable papers

 For business customers:

• Versatile Investment Deposit