Quản lý rủi ro trong hoạt động tín dụng tại ngân hàng TMCP techcombank

CREDIT RISK MANAGEMENT AT VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK TECHCOMBANKQuản lý rủi ro trong hoạt động tín dụng tại ngân hàng TMCP Techcombank GENERAL THEORY STRATEGIC PLANNING BUSINESS ENTERPRISES THE ISSUE CREDIT RISK MANAGEMENT AND BUSINESS STRATEGY IN TECHCOMBANKCREDIT RISK MANAGEMENT AT TECHCOMBANK

LUẬN VĂN Quản lý rủi ro trong hoạt động tín dụng tại ngân hàng TMCP Techcombank

THESIS

CREDIT RISK MANAGEMENT AT VIETNAM TECHNOLOGICAL AND

COMMERCIAL JOINT- STOCK BANK - TECHCOMBANK

Chapter I - The opening.

1 Why choose theme?

Vietnam's economy for more than a decades there have been steps boom not only

in the region but also spread out all over the world According to the General Statistics Office Vietnam total domestic income (GDP) of Vietnam in 2007

reached approximately 1114 trillion equivalent to 71.4 billion dollars) increased

by 8% over 2006 To get the achievement that the role of banks is important The role of banks has helped stabilize the economy is more in the past year

Commercial Joint Stock Bank Technical Trade of Vietnam - Techcombank is a bank in Vietnam has made tremendous positive contributions Growth of bank credit over the years has increased However, besides the increase in the status of overdue debts at the bank contains many potential risks

Group has chosen 11 research projects: credit risk management in Techcombank

"as key themes for your comment This topic hoph consistent with the situation assessment practices contribute to prevent credit risks in banks in Vietnam and at the same time improving the efficiency of credit management at the bank prices

2 Objectives of research:

+ Study the basic theories of active credit risk management and business strategies

of commercial banks Vietnam

+ Role of the importance of credit to enterprises in economic development

+ Measures to limit credit risk

+ The proposed uniform and high-performance computer controls contribute to credit risk in commercial banks in Vietnam

3 Scope of research:

Subjects studied: Customers in Techcombank

Scope of research: Research on the state of credit risk management and business

strategy in Techcombank and effective solutions

Time research: From 2006 to 2008

4 Research Methodology:

Collection, statistical data, interpret and draw conclusions Analysis of data on the relative and absolute From which to draw comments on credit risk management and business strategies in prices

5 Structure of course comment;

Chapter 1: The opening

Chapter 2: General Theory of planning business strategies of enterprises

Chapter 3: Status of credit risk management and business strategies in prices Chapter 4: The solutions for credit risk management and business strategies in prices

CHAPTER II - GENERAL THEORY STRATEGIC PLANNING BUSINESS ENTERPRISES

I OVERVIEW OF BUSINESS STRATEGY

1.1.1 What is business strategy

The term “strategy” originated in the art of war in olden times It is considered as the art of commanding means to win Borrowed from military term, the word

“strategy” is used popularly in both macro and micro economy There are many conceptions about strategy such as:

- Strategy is an art of creating competitive advantages to defend (M.Porter)

- Strategy is to define the way and means to reach the specific target through policies (General Aileret)

- Strategy is an art of combining and controlling actions to achieve long term targets (G.Hirsch)

According to another approach, “Strategy” is a manner that helps company answerquestions: “Were do we want to go? Where and how we can go? What do we have? What do others have?”

From the above conceptions, the term strategy of a company implies and reflects atarget in a long-term (3, 5 or 10 years) The process of deciding a strategy includedcompetitive environment, strengths and weaknesses We can see that a company strategy is a product It combines the environment factor and the things that the company can reach and want to reach

Through times, the conceptions of strategy have changed There are now two popular conceptions:

- Business strategy is a mean to achieve the long-term target The idea of business strategy is to attack and to win in competitive market

- Business strategy is a set of long-term target, policies, production and business solutions, finance and human factor to develop the company business activities and reach higher quality

In summary, business strategy is an art of optimal organizing and combining resources It proposes and implements the decision that is suitable to the variable trend of environment to win in competitions and reach the long-term target

1.1.2 Specific meaning of Business strategy

We can see the basic figures of business strategy are:

- Business strategy has to specify the basic target in each phase and be grasped thoroughly

- Ensure to mobilize totally and combine optimally the using of human and

financial resources Take full advantage of opportunity to contend with other competitors

- Is reflected during a continuous process from building to evaluating, inspecting

- Is built and implemented in a long-term period (3, 5 or 10 years).

In the market mechanism, the building and deploying business strategy has an important meaning to the existence and development of a company

- It helps the company recognize the target and direction It is the foundation for determining the orientation and when the company can reach the specific target

- The market fluctuation always creates opportunity and risk To build and

implement business strategy will help the company grasp and take advantage of it and overcome the market risk and trap

- To build and implement business strategy will firmly create foundation for suitable decision

- To build and implement business strategy will take part in increasing the

effectiveness of using resources Reinforce the competitive position and ensure an unshakeable development

1.1.3 The necessary of Company Business strategy

1.1.3.1 Financial benefit

The researches show that if a company has a good strategy, it will be successful The company that has good financial condition trends to plan for the internal and external fluctuation

1.1.3.2 Non financial benefit

With the strategy, the company operation will follow one direction This will bringsuccess and high benefit It helps the company to develop with a stable

organization and relationship… It will raise the productivity and reduce the risk Besides, it will bring order and discipline to the company It is the beginning of an effective administration system, restore the belief of current business strategy and execute the correcting activities

1.2 Building and choosing the Company Business strategy

1.2.1 Process of Business strategy.

The conception of administration appeared for a long time but the administrative theory that was researched basing on the scientific analysis appeared in late 19thand early 20th decade

Strategic administration is a process of researching environment to set up strategic targets, policies and solutions It will help organization to bring out strategies, policies and give decision of correcting, inspecting, evaluating the business

strategy execution

1.2.1.1 Phase of Forming strategy

Forming strategy is a process of setting up the business task, surveying the internaland external factors, proposing the long-term targets and choosing replaceable strategies It has 3 basic activities:

- Research: collect and handle information about market This is called “Take a glance at the business environment” Basically, it specifies strong and weak points

in the business field Other surveys could be executed such as employee spirit, productivity, advertisement and customer loyalty

- Combine intuition and analysis: A few companies can develop prosperously with intuitional genius managers But most of the company gets benefit from strategy by combining harmoniously intuition and analysis in giving decision.Give decision: no organization has infinite resource Therefore strategists must give decision about choosing an effectively replaceable strategy The decisions in this phase are about product, market, resource and technology

1.2.1.2 Phase of performing strategy

This is a phase of action That means to mobilize all administer and employee to execute the planned strategies The basic activities are:

- Set up annual targets: they are the milestone that companies have to obtain to

- Policies: they are means to achieve the target They include the instructions, regulations and procedures to support for reaching the targets.

- Distribute resources: it is an administrative activity that pays attention to the strategic execution Strategic administration allows companies to distribute the resources They are established by annual targets There are 4 resources can be used:

1.2.1.3 Phase of evaluating strategy

It is very necessary to have this phase in each company A timely evaluation will alarm the problems so that administers can interfere before they become more serious

Timely feedback information is the foundation of strategic evaluation Richard Rurnel has proposed 4 standards of evaluating strategy:

+ Consistency

+ Suitableness

+ Advantage

+ Feasibility

Control external factors

to specify opportunity and risk

Control external factors

to specify opportunity and risk

Reconsider the business target

Set up term target

short-Propose policies

Distribute production resource

Set up term target

short-Choose strategies

Inspect and evaluate

1.2.2 Analysis of Company Business environment

1.2.2.1 Factors of Business environment

A good strategic management depends on the knowledge of companies about the environment that they are coping with The environment factors have wide and deep affect to the next step of the strategic management process

The 3 levels of environment that companies have to face are: macro environment, operation environment and internal environment

The macro environment includes external factors It affects to the operation

environment and internal environment It creates opportunities as well as risk for companies

The operation environment includes external factors It orients the competition in the business

Figure 1.2 Business environment factors

The internal environment includes the company resources.

Macro environment

The analysis of macro environment will help the company answer the question:

“What is it now coping with?”

We have 5 factors mentioned in table 1.1: economy, government and politic, society, nature and technology

Economic

factors

Government and political factors Social factors

Natural factors

Technical factors

Period of

economic cycle

Regulations of consumption lending

Opinion about living standard

Environment pollution

Cost of researching and developingFinancial

resource

Antimonopoly policies

Living style Lack of energy Cost of internal

research and developmentTrend of GNP Environment

protection laws

Female labor Waste of

natural resource

Technical efforts

Inflation rate Tax laws Career

aspiration

Copyright protectionInterest rate Regulations in

line of foreign trade

Active consumption

Technology transfer

Currency policy Special treatment Birth rate New productsJobless rate Regulations of

lending and promotion

Increasing population rate

Using human, machine

Financial policy Stability of

government

Shifting of population

Economical factors

The economical factors take much affect to the company They are interest rate, period of business cycle, balance of payments, financial and currency policy The company has to select the specific impact Each factor may be opportunity or risk

Government and Political factors

The government and political factor impact to the company activities The

company has to conform to the regulations of tax, loaning, insurance,

advertisement, environment protection… The government activities can create opportunity as well as risk

Social factors

The company needs to analysis social factors to recognize opportunities and risk

If these factors can affect to the company such as: anthropology trend, interest of entertainment, standard ethics, female labor…

1.2.2.2 Operation environment

Because the (common) influences of these factors are unavailable for all

companies, the key to setup a successful strategy is analyzing each of these main factors

The understanding of competition pressure sources helps company to recognize itsweaknesses and strengths relating to opportunities and risks that company will encounter.

Potential Competitor

Competition between companies in the same line of business

Competitor

CustomersSuppliers

Replacement risk

Figure 1.3: The relation between factors in the operation environment of a company

The understanding of competitors has an important meaning for companies

because of many reasons

Firstly, competitors determine competition property, competition level andadvantage struggle skills Level of competition depends on interrelation amongfactors, such as number of competing companies, growth rate of sector, fix coststructure and level of product diversity Existence of these factors has tendency to

What they want to

- Do they satisfy with their present position?

- What are their ability?

- What are their weaknesses?

- What can help them react in the most powerful and effective way?

Present strategy

How is the competitive ability of the company?

Figure 1.4: Main parts of competitor analysis is presented as follow

increase demand or expectation of company for achieving and protecting theirmarket share So, that makes competition more severe Companies should admitthat competition process is not stable.

Beside new competitors, new technology solutions affect property and level of competition

Companies should analyze each competitor to master actions and reactions they may approve

Customer

Customer problem is not apart from competition environment Goodwill is the most valuable property The goodwill achievement is due to company meets the demand better than competitors do Other key problem is bargaining ability of customer

The buyer has ability of decreasing the benefit of a business sector by mean of price squeezing or requiring higher quality and more services

Factors increasing strength of supplying organization are similar to factors

increasing strength of buyer

- Number of supplier is little

- There isn’t replacement

- There isn’t supplier offering different product

Supplier selection relies on seller analysis result Analysis supplying organization has importance significance for any company In some certain time, most

companies including well-doing ones, have to temporarily borrow money from financial market They can use this capital source by short-term borrowing, long-term borrowing capital issue Before analyzing capital market, company should pay attention to define its position in competition with others

Labor source is a main factor in company’s competition environment The ability

of attractiveness and hold competence employees is prerequisite to ensuring

success of company Main factors need analyzing:

Potential competitor

New-started competitor is a factor decreasing benefit of company because it sets into extraction new production ability with desire to secure market share and necessary resources

Buyback other companies in the same business in order to building market share isnormally a manifestation of appearing new competitors Although company does not always have new potential competitors at any time, the danger of new

competitors integrating in business has influence on company’s strategy

A barrier preventing the entering is strong withstanding of well-established

company

Replacement

The pressure of replacement restricts potential benefit of a business because higherprice is limited If a company not pay attention to replacement, it may fall behind with small market share

Hence, company should incessantly research and check new potential

replacement Most of replacement is result of technology explosion To get

achievement, company need pay attention to using resources to develop and apply new technology in its strategy

1.2.2.3 Internal environment

Internal environment includes all factors and systems inside company It’s

necessary to throughout analyze these factors because it overcomes weaknesses and promote strengths Internal environment factors include:

- Human resource

- Production research and development

- Finance and accounting

- Marketing

- Organization discipline

Human resource factors

Human resource takes a very important role in the success of company Humanprovide input data to form target and analyze environment Although opinions ofgeneral planning system is absolutely correct, it can not bring benefit if lack ofcompetent man

Research and development factors

The quality of research and development is a factor which determines company inthe top or behind position in comparison with other leading company in area ofproduct development, product quality, price control and production technology.Qualification, experience and scientific ability are not enough foundation for goodresearch Research and development department have to closely monitoredenvironment factors and technology innovation regarding technical process,product and materials

The effective information exchange between research and developmentdepartment and other departments take an important role in the success ofcompany

Production factors

Production is a line of business connecting to produce process This is the main business line, so it influences on success ability of company

There are many positive influences of high quality product with low cost.Marketing team has advantage of easy selling

Finance division has advantage of effective production facilities economizingcapital resource Production section also has big impact on human resourcedepartment

On the other hand, weak production results on unmarketable product, financial

loss and indifferent attitude of employees

Financial and accounting factors

Function of finance sector includes analyze, plan and check implementation offinancial plan and financial position of company Small company can use oneperson responsible for finance problem and hold concurrently: accountant,financial record keeper, manager or financier

Large company can organize many departments as: financial accounting, inspectordepartment

Financial sector has responsibilities relating to resources such as:

- Resource finding including capital resource finding

- Expenditure control

Marketing factors:

Function of marketing includes analyze, plan, execute and check the program, in there it focus on training and maintain the relationship with customers on principle

of mutual benefit Therefore, marketing tasks is monitoring level, time and

property of demand; that helps organization achieves goals and form effective strategy of product, assessment, communication and distribution suitable for targetmarket

Organization discipline:

Each company has its own discipline to orient most of work It influences ondecision modality and opinion of managers wits regard to strategy and operationenvironment

The discipline is a weakness impeding strategy forming and implementing or astrength promoting these activities Company with strong and positive disciplinehas more chances to succeed than the other one with weak and passive discipline

Company is like a live-body because man makes it operate and form its sense and

goals Organization discipline is a collection of experience and internal climatewhich unite together to form “The way we do our work”

Organization discipline is an interaction mechanism with environment

1.2.2.2 Analyzing business environment

Nowadays, there is information overload So it is important for informationcollecting to grasp necessary information and wits right form

Conclusive table:

This table is useful mean for analyzing macro-environment, competitionenvironment and internal situation

The table synthetizes factors and estimates impact of the factor on company.

Environment

factors

The importantlevel of factors Impact on company

Propety ofimpact

Grade offactorsBasic

medium, 1= low

Classify impact level

of each factor oncompany:

3= much, 2= medium,0= no impact

Describenature ofimpact

Column1: List most important environmental factors and their components

Column 2: Classify environmental factors according to their important level

Column 3: Classify impact of each factor

Column 4: Describe impact of each factor

In the table, we see which factor impact and how it influences on company Thepositive factors have positive sign The passive factors have negative sign Toevaluate nature of factors, we have to compare bottom line

Propose reaction strategy:

Up to now, steering committee have enough condition to make decision andmethod to respond to opportunities or danger arising There are many methods ofstrategy reaction but company would do nothing if opportunity or danger is notremarkable

Strategy is made on forecast basic of business environment In fact company couldencounter unexpected situation To take precautions of inaccurate forecast,company should have flexible and concrete strategy

1.2.3 Some evaluation model

1.2.3.1 Peripheral factor evaluating matrix

Building process of EFE matrix includes 5 steps:

Step 1: List factors has decisive role in the success of company (10-20 factors)

Step 2: Define important level from 0,0 (not important) to 1,0 (very important)

Total of level on the list is 1

Step 3: Define coefficient from 1 to 4 of each factor in relation to responsive

highest and 1 is the lowest

In short, micro and macro factors can combine together in many ways, direct or

indirect impact on company to create opportunities or threats

The importance is to analyze, evaluate level of impact and responsive ability of

current strategy in the fight against the changes

Givecoefficientfor eachfactor

Gradeeachfactor

Add markfor eachfactor inthe list

Figure 1.5: Building process of EFE matrix

Star: SBU in top position

Question mark: SBU in weak position

Cow: SBU in low growth rate business but has high market share

Dog: SBU in low growth rate business and has small market share

1.2.3.3 HOPER Matrix

Corporate-level strategy determining relies on two factors:

The competitive position and the stages of business cycle

Question mark Star

CowDog

Figure 1.6: BCG matrix

Combination of these 2 factors determines the best strategy for each stages of business.

Figure 1.7: Hoper matrix

1.2.3.4 SWOT Matrix

S: StrengthsO: OpportunitiesT: Threats

W: Weaknesses

SWOT analysis, method, or model is a way to analyze competitive position of

your company SWOT analysis uses so-called SWOT matrix to assess both

internal and external aspects of doing your business The SWOT framework is a tool for auditing an organization and its environment

SWOT is the first stage of planning and helps decision makers to focus on key issues SWOT method is a key tool for company top officials to formulate

strategic plans Each letter in the word SWOT represents one strong word:

S = strengths, W = weaknesses, O = opportunities, T = threats.

Embryo Market share building Market share building

Rising Developing Market concentrate

Fluctuation Market share raising Market concentrate or

dissolveGrowing Strengthen and gain

profit Reap or dissolveSlackening Market concentrate or

asset reduce

Situation reverse or dissolve

To build SWOT Matrix, the first step is listing strengths, weaknesses,

opportunities and threats, then comparing in a systematic way each correlative level among factors to make combinative level

- S/O: combination is gain from combining main strengths and Opportunities Company uses strengths and opportunities to compete with others and non-stop expanded market

- W/O: combination is the association of weaknesses and opportunities This combination opens up an ability of overcome weaknesses by means of

savers with the investors in need of capital for business and economic

development in the open-door era.

The head office was at 24 Ly Thuong Kiet, Hanoi, Vietnam.

1995

The registered capital was increased to VND 51.495 billion Parallel with this event, the Ho Chi Minh city branch was established starting the process of fast expansion of Techcombank in the main urban areas

1996

Thang Long branch and Nguyen Chi Thanh sub-branch were established in Hanoi,together with Thang Loi sub-branch in Ho Chi Minh city The Bank’s registered capital has increased to VND 70 billion

1998

The head office was moved to Techcombank building at 15 Dao Duy Tu str., Hanoi, Vietnam With the establishment of Da Nang branch in the same year the branch network has covered all three main regions: the North, Central provinces, and the South

demand from customers

A number of branches were established: Chuong Duong and Hoan Kiem in Hanoi,Hai Phong branch in Hai Phong City, Thanh Khe in Da Nang and Tan Binh in Ho Chi Minh City Techcombank becomes the joint stock bank with the largest

network in Hanoi The network involves the Head Office, 8 branches and 4 branches at the larges cities in Vietnam

sub-The registered capital has increased to VND 104.435 billion

Preparations are underway for an increase to VND 202 Billion in registered

capital Techcombank reassures its role as a leading joint stock commercial bank

in Vietnam

2003

Leveraging on the Globus system and the Bank’s alliance with Vietcombank, Techcombank commenced issuing F@stAccess card on 05 December 2003 The Bank inaugurate the completion of deployment of the Globus system on the wholenetwork on 16 December 2003 The Bank started the process of developing a new corporate identity

Techcombank Cho lon was established Registered capital has increased to VND

Techcombank Phu Tho, Techcombank Nguyen Tat Thanh, Techcombank Quang Trung, Techcombank Truong Chinh (Ho Chi Minh), Techcombank Cua Nam, Techcombank Hang Dau, Techcombank Kim Lien (Ha Noi).

21/07/2005, 28/09/2005, 28/10/2005: Raised registered capital to 453 billions dong, 498 billions dong and 555 billions dong, respectively

29/09/2005: Launched the new Switching and Card Management System of

In June 2006: Call Centre & Hot line 04 9427444 officially operated ( 24/7)

In August 2006: Moody’s, the world top ranking reputed organization has declaredreputed ranking for Techcombank, the first joint stock bank of Viet Nam ranked

by Moody’s

In August 2006: the annual shareholders meeting approved the plan for 2010; Techcombank and Bao Viet Insurance corporately proving Banc assurance

2006-In September 2006: Completing the account system with new products:

multifunctional savings, period interests paying savings

On 24th November 2006: Raising the chattered capital to 1.500 billion dong On 15th December 2006: launching the international Techcombank Visa card

2007

Techcombank total asset up to 2.5 billion USD

Becoming the joint stock bank with the second largest transaction network

including 130 branches, TSO at the end of 2007

HSBC increases the sharing capital to 15 %, directly and sufficiently support

Techcombank’s operation.

Profoundly transforming in structures with the establishment of corporate service department, department of credit and risk management, completing structure of banking service and individual finance

Upgrading the core banking system to T24R06

Is the blossoming year of card services with the total issued card number up to more than 200.000 cards for all kinds

The first and only bank approved the achievement in technological application andleading in market developing measures

Implementing the “secret customers” program, in order to access the service quality and attitude to customers of front-line staffs at Techcombank TSO

Launching many new products, including: Savings lucky draw “ A chance to receive Mercedes with saving in Techcombank”, “ regular saving”, “loans for assumption”, products for enterprises such as supporting suppliers, F@st I-bank- products based on high technological products, products on account management

of securities investors F@st S-bank and electronic paying gate providing online payment for e-commerce website F@stVietpay

Receiving award “Top Trade services 2007”- award given by Ministry of industry and Commerce for typical enterprises, operating in trade services that Viet Nam committed to implement as joining WTO

2008

Receiving award of “ the most satisfied service in 2008” voted by readers of Sai Gon Tiep Thi magazines in February 2008

In March 2008: Launching Techcombank Visa Credit card

In May 2008: Launching Cash Deposit machine( ADM)

Implementing many projects on technological modernization: upgrading the core banking system to sample T24 R7, member of two cooperated card organization Smart link and Bank net, connecting ATM system with strategic partner HSBC, opening free Call Centre ( 24/7) 1800 588 822

The unique sponsor for “Sao Mai Diem Hen 2008” in June 2008

Opening Techcombank AMC ( asset management company) in 8th August 2008.Receiving Golden Star Award 2008 given by young enterprises association in

September 2008

Increasing the property rate of HSBC to 20 % and raising chattered capital to

3.165 billion dong in September 2008

In September 2008: Launching Techcombank Co-brand Visa card with Vietnam Airlines

On 19th October 2008: Receiving award “ reputed securities trademarks and the top Joint stock company of Vietnam” given by securities committee

The basic indicators of financial year:

Year 2006

Year 2005

Year 2004

1.3. Evaluation of business results:

1.31 Table 1: Some basic targets of 2008

Year 2006

Year 2005

Year 2004

1.3.2 Achievements:

2007 Techcombank's total assets reached 39.542 billion equity reached 3.573

billion Charter capital reached 2.521 billion up nearly twice that of 2006 and

Techcombank has affirmed its position as one of its three commercial banks

biggest in Vietnam Special Techcombank hold top positions in the northern

market

2008 was the year the economy is faced with the unpredictable evolutions of the world economy and internal problems such as inflation, trade balance deficit is quite large, stock market continued failure off and then declining economy But

again Techcombank still asserts his potential before the global financial storm Techcombank's total assets reached 59.360 billion 19.818 billion increase

compared to 2007 reaching 93% compared with the planned targets Equity

reached 5.615 billion charter capital reached 3.642 billion Pre-tax profit reached 1.600 billion level reached 155% compared with the planned targets Profit in the third commercial bank in Vietnam in the year

Activities of raising capital: Total resources mobilized capital reached 51.859 billion reached 149% compared to 2007 Techcombank collected continuously for continuously releasing savings products are very miinh to meet customer needs in order to attract a deposit for services to business banking Ratio of capital to an end in 2008 is 13.99% to ensure safe operation of the bank Through evaluating the results from business operations through the operation of raising capital, Bank operations Techcombank is very effective and continuous growth over the years

In particular, one of the reasons as follows:

Brand, reputation Techcombank proven and trusted by customers and entrusted Interest rate applied flexibly and that is next to diversify savings products help customers to choose from One more reason that Techcombank network coverage nation-wide and especially in the big city with a staff of professional discipline and high technology environment Globus T24 modern Switzerland Mobilizing capital Techcombank allocated 47% from population growth and all through the year is one of the success of Techcombank in the work of raising capital

population - a stable source of capital

Outstanding debt over the years:

(Source from balance sheet Techcombank 2006-2008)

Outstanding debt in TECHCOMBANK also grew strongly over the years and ensure the quality of credit, bad debt ratio under 2.5% of total outstanding loans Currently, TECHCOMBANK are focused to promote retail products like business strategy and achieve great accomplishments from the ANZ Bank, factoring, HSBC in Vietnam and the world

Although in 2008 was the year the global economic evolutions more

unpredictable, TECHCOMBANK constantly attracted many talented people in thefinancial sector bank Especially some key leaders have long years of working at big banks like ANZ, Bank Co., HSBC By the end of 2008 staff employees TECHCOMBANK is 82% of whom 4.224 are who are university graduates and university graduates, people with intermediate and colleges account for 15%, the number of upper secondary schools account for 3% Currently, TECHCOMBANKconstantly recruiting and training personnel at all levels in both systems and

professional through all the various forms of training: Training in the heart of BTC, CFVG, internal, onlile online

In the past year, TECHCOMBANK has achieved extremely great achievement and one of the three largest commercial banks in Vietnam During the next

TECHCOMBANK always work with more ambition

1.4 Environmental activities Techcombank:

* Environmental Law:

- Legal system is interested in change, create perfect growing conditions for

production and business environment increasingly favorable;

- Activities of bank supervision and guidance of a very close state banks to ensure safety and develop the economy of the country

Economic environment:

economic and socialϖ structure: The proportion of investment in industry and construction in 2008 accounting for 41.5%, private investment infrastructure for years, accounts for 10% of GDP annually 2010 Plan investment structure for industry and construction was 44.6%;