LUẬN văn THỰC TRẠNG HOẠT ĐỘNG HUY ĐỘNG vốn của các NGÂN HÀNG THƯƠNG mại VIỆT NAM e

INTERNATIONAL EXECUTIVE MASTER OF BUSINESS ADMINISTRATION PROGRAM THESIS PRACTICAL SITUATION OF CAPITAL MOBILIZATION OF VIETNAM’S COMMERCIAL BANKS - THE CASE STUDY OF JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM (BIDV) - BRANCH OF TUYEN QUANG PROVINCE ii TABLE OF CONTENT INTRODUCTION CHAPTER 1: LITERATURE REVIEW OF CAPITAL MOBILIZATION ACTIVITIES OF COMMERCIAL BANKS 1.1 BASIC CONCEPTS OF COBA IN MARKET ECENOMY 1.1.1 Definition of COBA 1.1.2 Types of COBA 1.1.3 Functions of COBA 1.1.3.1 Financial intermediary 1.1.3.2 Payment intermediary 1.1.3.3 Money generating 1.1.4 Basic operations of COBA 1.1.4.1 Capital mobilization 1.1.4.2 Capital utilisation 1.1.4.3 Other intermediary activities 1.1.5 Risks in COBA’s activities 1.1.5.1 Internal risks 1.1.5.2 Systematic risks due to the impact of banking market 1.2 CAPITAL MOBILIZATION OF COBA 10 1.2.1 Definitions 1.2.2 Role of capital mobilization activities 1.2.2.1 For clients 1.2.2.2 For the economy 1.2.2.3 For COBA 1.2.3 Capital mobilization methods of COBA 1.2.3.1 Classification by terms 1.2.3.2 Classification by sources of capital 1.2.3.3 Classification by the nature of capital mobilization activities 1.2.4 The factors affecting capital mobilization 1.2.4.1 External factors 1.2.4.2 Internal factors 1.3 EVALUATION OF CAPITAL MOBILIZATION EFFECTIVENESS OF COBA 21 1.3.1 Capital mobilization effectiveness 1.3.2 Capital mobilization evaluation KPIs 1.3.2.1 The stable development of capital mobilization in terms of time and quantity 1.3.2.2 Capital mobilization versus banking operations 1.3.2.3 Cost of capital mobilization/scale of capital mobilization 1.3.2.4 Returns and interest cost difference /Cost of interest: v 1.3.2.5 Other KPIs: CHAPTER 2: PRACTICAL SITUATION OF CAPITAL MOBILIZATION OF VIETNAM’S COMMERCIAL BANKS - THE CASE STUDY OF JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM (BIDV) - BRANCH OF TUYEN QUANG 24 2.1 PRACTICAL SITUATION OF CAPITAL MOBILIZATION OF VIETNAMESE COMMERCIAL BANKS IN RECENT YEARS 24 2.1.1 Overview 2.1.2 Growth of mobilization of Vietnamese Commercial Banks in 2010-2012 2.1.2.1 Year of 2010 2.1.2.2 Year of 2011 2.1.2.3 Year of 2012 2.1.3 Advantages and disadvantages of mobilizing capital 2.1.3.1 Advantages 2.1.3.2 Disadvantages 2.2 SITUATION OF CAPITAL MOBILIZATION OF BIDV TUYEN QUANG 29 2.2.1 Introduction 2.2.1.1 History of foundation and development 2.2.1.2 History of foundation and development of BIDV Tuyen Quang 2.2.1.3 Business situation of BIDV Tuyen Quang 2.2.2 Situation of capital mobilization of BIDV Tuyen Quang 2.2.2.1 Forms of capital mobilization of BIDV Tuyen Quang 2.2.2.2 Structure of capital mobilization of BIDV Tuyen Quang 2.2.2.3 Analyze efficiency of capital mobilization of BIDV Tuyen Quang 2.2.3 Assess capital mobilization situation of BIDV Tuyen Quang 2.2.3.1 Business results 2.2.3.2 Difficulties Chapter 3: SOLUTIONS TO ENHANCE CAPITAL MOBILIZATION OF BIDV BRANCH OF TUYEN QUANG 53 3.1 DIRECTIONS AND TARGETS OF BIDV TUYEN QUANG .53 3.1.1 Strategic direction of BIDV in period of 2013-2015 and vision to 2020 3.1.2 Directions and Targets of BIDV Tuyen Quang from 2013 to 2015 [7] 3.1.2.1 Directions 3.1.2.3 Plan of mobilizing capitals in 2013 and targets to 2015 3.2 SOLUTIONS TO STRENGTHEN CAPITAL MOBILIZATION IN BIDV TUYEN QUANG .55 3.2.1 Have reasonable and flexible policies of interest rate 3.2.2 Expand business network 3.2.3 Improve quality of human resources 3.2.3.1 Perform recruitment work well vi 3.2.3.2 Training and Re-training 3.2.3.3 Have reasonable policies for personnel management and treatments 3.2.4 Enhance marketing activity 3.2.4.1 Market research 3.2.4.2 Perform better customer caring services 3.2.4.3 Build up a budget for marketing activity 3.2.5 Other solutions 3.2.5.1 Develop new products 3.2.5.2 Reform and modernize banking technologies 3.2.5.3 Improve efficiency of lending 3.2.5.4 Build up “Corporate Culture” 3.3 RECOMMENDATIONS 63 3.3.1 To Government 3.3.2 To the State Bank 3.3.3 To BIDV Headquarter REFERENCES 67 vii LIST OF ABBREVIATIONS AND ACRONYMS BIDV Joint Stock Commercial Bank for Investment and BIDV Tuyen Quang COBA IPO KPI USD VBSP BSPT VND Development of Vietnam BIDV Branch of Tuyen Quang Province Commercial Bank(s) Initial Public Offering Key Performance Indicators U.S Dollar Vietnam Bank for Social Policies Bank of Social Policies of Tuyen Quang Vietnam Dong viii LIST OF TABLES Page Table 2.1: Banks and non-banking credit institutions in Vietnam Table 2.2: Market share of Vietnamese commercial banks Table 2.3: Business result of BIDV Tuyen Quang in 2010 - 2012 Table 2.4: Capital mobilization Result of banks in Tuyen Quang province Table 2.5: Branch network of banks in Tuyen Quang province Table 2.6: Payment Deposits Table 2.7: Number and Average Balance of Individual Payment Deposit 24 25 33 33 34 35 37 Accounts of BIDV Tuyen Quang Table 2.8: Savings Table 2.9: Deposits of economic organizations Table 2.10: Issuing valuable papers Table 2.11: Situation of mobilization of BIDV Tuyen Quang Table 2.12: Mobilization structure of BIDV Tuyen Quang by Currencies Table 2.13: Mobilization structure of BIDV Tuyen Quang by Terms Table 2.14: Mobilization structure of BIDV Tuyen Quang by Customers Table 2.15: Mobilization result of BIDV Tuyen Quang in 2010 - 2012 Table 2.16: Situation of Mobilization and Loans Table 2.17: Balance between short-term mobilized capitals and loans Table 2.18: Balance between mid- and long-term mobilized capitals and loans Table 2.19: Mobilization cost of BIDV Tuyen Quang in 2010-2012 36 37 38 39 40 41 42 44 45 46 46 47 ix LIST OF FIGURES AND CHARTS Page Figure 2.1: Growth rate of capital mobilization and loans of commercial 25 banks in 2010-2012 Figure 2.2: Organizational Structure of BIDV Tuyen Quang Figure 2.3: Mobilization share of BIDV Tuyen Quang Figure 2.4: Mobilization structure of BIDV Tuyen Quang expressed as 32 32 40 percentage Figure 2.5: Mobilization structure of BIDV Tuyen Quang by Terms Figure 2.6: Mobilization structure of BIDV Tuyen Quang by Customers 41 43 x INTRODUCTION Rationale Capital has always played a vital role in making or breaking businesses in general and commercial banks (COBA) in particular Capital is the financial resource, one of the prime factors for business activities and liquidity of banks Having been well aware of the importance of capital mobilization for the past few years, the Joint Stock Commercial Bank for Investment and Development of Vietnam - Branch of Tuyen Quang Province (BIDV Tuyen Quang) has implemented a range of policies, methods and forms to raise its capital, which has grown continuously at a high rate However, capital mobilization capacity of the branch is still low, compared to the total capital mobilised in the entire province, and lower than its perceived potentials This leads to the question of how to improve the capital mobilization capacity at a reasonable and stable cost, and to utilise potential capital sources of economic organisations and residents This will ensure the diverse sources, creating an optimal capital structure for the course of socioeconomic development of the province and the industry This drives me to the theme “The practical situation of capital mobilization of Vietnam’s Commercial banks - The case study of Joint Stock Commercial Bank for Investment and Development of Vietnam - Branch of Tuyen Quang Province” for my final thesis Objectives Following are main objectives in this research: - To study and provide the literature review on capital mobilization and capital mobilization methods of COBA, - to analyse the practical situations in capital mobilization at BIDV Tuyen Quang, - and to recommend ways to improve capital mobilization capacity of BIDV Tuyen Quang Subjects and Scope - Subject of the study: capital mobilization activities of commercial banks - Scope of the study: capital mobilization activities BIDV Tuyen Quang - Time of the study: From 2010 to 2012 Research methods Basing on data provided by State Bank of Vietnam, Tuyen Quang - Branch State Bank, BIDV Tuyen Quang and on relevant books and documents, the author has used different methods for the research including statistics, collecting, comparing and analysing financial figures Structure of the thesis Apart from the introduction and conclusion, the thesis consists of three chapters: Chapter 1: Literature review of capital mobilization activities of commercial banks Chapter 2: Practical situations of COBA in Vietnam, the case study of BIDV Tuyen Quang Chapter 3: Solutions to enhance capital mobilization of BIDV Tuyen Quang CHAPTER 1: LITERATURE REVIEW OF CAPITAL MOBILIZATION ACTIVITIES OF COMMERCIAL BANKS 1.1 BASIC CONCEPTS OF COBA IN MARKET ECENOMY 1.1.1 Definition of COBA In the US and many other countries, “banks are financial institutions that provide the highest diversity of financial services – especially credit, savings and payments, and practise the most financial functions among any other businesses in an economy [22] In Vietnam, The Law on Credit institutions passed by the Assembly Meeting XII on June 16, 2010 defines “COBA is a type of bank which is entitled to perform the entire banking operations and other relevant business activities under this Law for capital profit” and “Banking activities are monetary business activities and banking services of regularly taking deposits and using such deposits for granting credit and providing payment services” As defined, COBA is a financial institution characterised by financial services focusing on deposit taking, loaning, payment services, and other services to meet the greatest needs for products and services of a society The table below provides a comparison between COBA and other non-bank credit institutions: COBA Non-bank credit institutions - a type of credit institutions - is a type of credit institutions - entitled to perform the entire banking - entitled to perform a number of operations banking operations - entitled to take demand deposits (deposit - not entitled to take demand deposits institution) (nondeposit institution) - entitled to provide payment services - not entitled to provide payment services - Improve the competitiveness of the branch, especially for human resources; increase labor productivity to ensure the living standard of employees - Develop corporative culture and brand name 3.1.2.3 Plan of mobilizing capitals in 2013 and targets to 2015 - Grow the scale of transaction offices; mobilization of transaction offices/total mobilization ratio is expected to be 65-70% in 2013, 75% by 2015 (This ratio was 57% in 2012) - Increase share of mobilization, strive to achieve the share of 25-27% (in 2013) and 30-32 % in 2015 (This share is 22.44% in 2012) - Review and reconstruct human resources; develop human resources in terms of quality and quantity for retail operations in general and mobilization activity in particular Review and assign human resources in order to increase productivity - Expand the network of transactions, strengthen infrastructure and facility of transaction office; develop activities relating to branch identification - Adjust mobilization structure so that the branch does not rely much on big customers 3.2 SOLUTIONS TO STRENGTHEN CAPITAL MOBILIZATION IN BIDV TUYEN QUANG There are many solutions to overcome mentioned difficulties However, in current situation, BIDV Tuyen Quang should focus on following solutions: 3.2.1 Have reasonable and flexible policies of interest rate Profitability is one of targets customers concern about when they comes to banks Interest rate is the price of a loan; a flexible and reasonable policy of interest will enhance the ability of mobilization of banks In the last times, COBA are in huge shortage of capitals due to tightening monetary policy of the State Bank COBA must raise interest rates to attract more capitals Though the policy of raising interest rates is quite risky, many COBA still use interest policy as a competitive tool when they have to mobilize capitals rapidly 55 Leaders of the Branch must give out reasonable mobilization interest rates to attract more capitals but still balance with loans interest rates To build an effective policy of interest rate, the Branch must assess relevant factors like inflation rate, profitability ratio of alternative assets (gold, foreign currencies, real estates, securities ); and consider differences between products to offer reasonable interest rates A proper interest rate must ensure at least some following criteria: - Attract many customers; - Ensure the profitability of the bank; - The longer the term is, the higher the interest rate is Board of Directors of BIDV Tuyen Quang branch must take several solutions: - Stick closely to social economic development programs of the province and strategies of the State Bank - Mobilization activity must be seen as a top priority and be managed carefully The Branch must strive to ensure stable mobilization - Functional departments must keep up-to-date with changes of markets and consult leaders to set out reasonable interest rates In addition, the Branch should also classify customers For instance, for enterprises having accounts and often using services of the Branch (open Letter of Credits or guarantees ), the Branch should offer them more preferred interest rate Typical enterprises are Tan Quang Cement Company, Tuyen Quang Cement Company, An Hoa paper company, Son Duong Sugar Cane Company 3.2.2 Expand business network Currently, the system of transaction offices of BIDV Tuyen Quang branch is smaller than that of Agribank and Vietinbank And offices of the branch are only located in Tuyen Quang city while there is no network to districts and communes like competitors Up to August 2013, the Branch has offices In spite of new facilities and improvements, trading offices are still small Thus, in the period of 2013-2015, the Branch should: 56 - Upgrade offices which not meet requirements of space; seek new additional locations to open offices; continue to expand the network to districts and communes to attract more funding In this phase, the Branch tries to open more offices; the target of 2020 is that every district will have at least one transaction office - Examine and change the location of ineffective offices In addition, analyze and find out causes to make immediate corrective measures - Renovate working equipment; improve business procedures of raising capitals to improve the quality service To be successful on opening branches and offices, the Branch must follow regulations under Decision No 13/2008/QĐ-NHNN: - Set up plans of expanding network and submit to the Headquarter - Establish information system to meet requirements of online supervision; - Complete internal regulations of transaction management, - Rearrange human resources, have recruitment plans to submit to the Headquarter 3.2.3 Improve quality of human resources Developing human resources is the most important solution in the strategy of expanding network and serving customers Also, this is the strategic task of the Branch after BIDV is converted from a state-owned bank to a joint-stock commercial bank Available human resources originated from commercial state banks were not expected in the context of transforming to retail banks This human resource is considered to have experience However, in new business environments, this human resource needs time to approach the culture of market economy Besides, soft skills are essential for positions like tellers or customer relations specialists However, these skills are not paid much attention Thus, the expansion of retail networks is limited The Branch must pay attention to some followed aspects: 3.2.3.1 Perform recruitment work well Currently, BIDV has a clear recruitment mechanism recruited and recuitment 57 work is assigned to training center If BIDV Tuyen Quang has a demand of personnel, the Branch must submit to the Headquarter (In 2013, the Branch proposed 02 applicants and both ot them were approved) Qualifications, professional competence and skills are all interested In my opinion, the Branch need to perform following solutions: - Give scholarships to studenst who are born in Tuyen Quang and studying Banking major in Southern universities; recruit students who have excellent or good certificates - Do not recruit employees who are incompetent but has intimate relations 3.2.3.2 Training and Re-training In order to successfully develop retail banking services and train human resource, BIDV Quang Tuyen should focus on the following key aspects: - Spread out understandings about business culure of BIDV - The bracnh should focus on soft skills, management skills for high-level and middle-level managers to create breakthroughs on ways of thinking, creating premises for reform plan and acceptance of all levels - Diversify training courses for transaction officers and customer relations specialists to create a modern business style, meeting required quality of the retail network The Branch also concerns about soft skills training to maximize available available resources of the Branch - Along with trainings on basic skills, training on foreign languages (especially English) should also be paid attention, especially for employees working at transaction offices located in the center By doing so, the Branch can enhance trade relations with foreign banks in Vietnam and other banks in the world 3.2.3.3 Have reasonable policies for personnel management and treatments - Have reasonable policies to eliminate incompetent employees and recruit new ones who can fulfill the work requirements - Apply the software of personnel management - Make of review of all staff in every Departments to rearrange human resources 58 - Apply job grading and managment system to supervise working performance of employees 3.2.4 Enhance marketing activity Current marketing solutions of the Branch are quite monotonous Main marketing tools are leaflets, advertisements in the mass media or direct communications with customers Though these measures contribute significantly to the mobilization activities in recent years, the Branch still needs new marketing forms to attract customers Some tasks the Branch must perform: 3.2.4.1 Market research Demands of individuals and enterprises are constantly changeable Thus, market research is very essential for the Branch to give out suitable policies The most concerned problems for enterprises in Tuyen Quang are that production values are small; technologies are outdated; equities are small; ability to mobilize capitals form external sources is limited Most enterprises not have stable business strategies; industrial structures are unbalanced; financial capacity, human resources, ability to plan, organize, implement and control business activities is limited As a result, revenue and profits are low Distribution of enterprises in the province also uneven, mostly concentrated in the city of Tuyen Quang (57.5 %); only 10 % operates in distant area The number of enterprises doing business in agriculture, forestry and fisheries is small, accounting for only 3.4 %; industrial and construction enterprises take 54% of total while trade and services enterprises account for 42.6 % In fact, the number of customers who are enterprises is quite modest In the period of 2010-2012, the number only ranged from 120-140 enterprises Understanding the situation , the Branch should actively access potential customers such as enterprises in industrial zones and urban areas; major enterprises; construction enterprises having demands of using guarantee or insurance; enterprises who want to pay salaries in large volumes; schools wanting to take tuitions via banking accounts 59 The Branch should also enhance advertising activities via mass media or internet Also, participate in funding for social activities; giving scholarships to students in universities are good ways to build up the trade mark of the Branch The Branch should make periodical assessments for marketing activities, markets and competitors to set out reasonable solutions 3.2.4.2 Perform better customer caring services The Branch should carry out some measures: - Establish a Customer Caring Center which is in charge of answering all questions, introducing services, sending messages to customers in specific occasions - In the period of 2010-2012, the Branch has 6-10 new customers but lose the same number In fact, new customers primarily take loans to pay debts at other banks Therefore, the Branch should send thankful letters to customers so that they can remain On the occasion of New Year or birthday, the Branch should send greeting cards or gifts to customers This is beneficial not only for capital mobilization activities of banks but also for other business activities since customers possibly want to use other products such as credit, international payments, domestic payments , guarantee - For individuals coming to make transactions, the branch should create a comfortable air by keeping carefully vehicles, having water or candy so that customers can enjoy their waiting times These measures have been done well by many good banks, typically Vietinbank These small actions have great impacts on retaining customers - Every year, on Customer Conference (this event is done regularly); the Branch should release questionnaires to customers to get feedbacks about the quality of products as well as service styles Then, basing on results, the branch can adjust policies reasonably Exploit the relationships with individuals of enterprises to expand the network of capital mobilization 60 3.2.4.3 Build up a budget for marketing activity Building up a budget for marketing activity is very essential and useful It is a long-term plan of the branch 3.2.5 Other solutions 3.2.5.1 Develop new products Though BIDV has constantly introduced new products in recent times, it is essential to continue researching and developing new products: - Targets of savings for customers are safety and profitability Currently, BIDV has some kinds of savings: normal savings, escalated savings, flexible savings, active savings… The Branch must always research the demands of customers and assess products of other banks to bring best products to customers - For payment deposits: the Branch must enhance marketing activity for Payment account as well as ATM; introduce these products to schools, industrial zones to encourage them to use banking payment services; the Branch plans to issue 50,000 ATM cards by 2015 In order to attract customers, the Branch must have incentive policies such as providing free cards and expanding the payment scopes BIDV should cooperate with supermarkets, stores, hotels and shopping centers to expand the ATM network so that customers can withdraw money from many locations Also, BIDV could provide suitable products to students because this segment is very potential - The Branch needs to research and issue valuable papers of different terms to build up a strong mid- and long-term capitals because there is a shortage of midand long-term capitals 3.2.5.2 Reform and modernize banking technologies The development of banking creates many favorable conditions for mobilization and other activities of banks Technology is also a competitive factor on attracting customers BIDV has taken utilities of ATM (balance query, deposits, payments ) in practice Also, Mobile banking and Internet banking are taken into the payment system Thus, the Branch must: 61 - Develop payments account services, ATM services - Expand ATM network and utilities Until August 2013, the Branch only installs ATMs in the city It is planned that every transaction office has an ATM by 2015 - Develop remittance services (customers can send or receive money in very short time without having accounts) 3.2.5.3 Improve efficiency of lending Raising capital and lending are two basic activities of banks Two activities have a very close relation Banks cannot make loans if they not mobilize capitals When banks raise enough capital, they can lend the capital to enterprises or individuals in the economy Then, these entities can expand production and create jobs As a result, incomes of the population will go up and idle capitals in the population also increase People have idle incomes means that banks can continue to mobilize capitals To improve the efficiency of loans, the Branch must build up a reasonable process and improve the responsibilities of credit officers - The Branch should use prioritized policies on interest rates to retain big customers Specifically in the period of 2013-2015, the Branch must reduce old debts with close customers down to 12 % / year For enterprises having overdue debts, the Branch should re-evaluate the loans, extend or restructure old debts rather than perform punishment policies for overdue debts - For large and loyal customers like Tan Quang Cement Company and Tuyen Quang Cement Company, these enterprises can take loans basing on the efficiency of business plan without collaterals or paying off old debts - Customer Relations Department assign officers reasonably in terms of branch, location or project evaluation time for projects should be reduced from 57 days for large projects; - Develop new credit products such as supportive loans for buying cars with the maximum rate of up to 70 % of car value; 62 3.2.5.4 Build up “Corporate Culture” Besides improving the quality of human resources, the Branch must pay attention to corporate culture The Branch should actively participate in social activities such as charity: gratitude, social activities Also, the Branch should organize events to celebrate traditions of the country or the traditional day of BIDV Holding contests about communication behavior or office fashions is a good way to to raise awareness of the staff The bank can select other solutions such as cutting off mobilization costs, making payment procedures more simple and developing financial consulting services 3.3 RECOMMENDATIONS 3.3.1 To Government Firstly, complete the legal framework for banking activities: Regulations of banking activities need to be adjusted in the context of commercial liberalization Due to the development of technologies, new banking products are different from traditional ones Thus, legal documents must be changed to keep pace with the development of technologies Secondly, expand the activities of paying salaries via banking accounts so that banks can mobilize non-term capitals Besides paying salaries via banking accounts for people who get paid from State budgets, the Government needs to encourage enterprises who recruit many labors to use banking payment services Thirdly, create favorable conditions for technology development Information technology is an important factor in the field of banking automation However, the technology of Vietnam is quite low compared to that of other countries in the world Thus, the Government should focus on developing technology infrastructure; enhance technology transfer from advanced countries on the basis of acquiring and mastering technologies In addition, the Government should have training strategies and incentive policies to for skilled technical experts 63 Developing telecommunications is the prerequisite for COBA to expand the supply network of modern banking services Currently, banks must subscribe transmission lines with high charges but the quality has not been guaranteed The Government should have reasonable policies for this industry so that telecommunication can upgrade network infrastructure and ensure transmission capacity 3.3.2 To the State Bank Firstly, complete the system of legal documents under the guiding Completion of legal environment must be fully implemented; legal environment must be consistent with types of services, international standards and development rate of technologies to ensure safe and modern banking services Secondly, the State bank implements fiscal policies ensure the efficiency of monetary policies; re-establish disciplines in banking activities, improve the quality of inspection and supervision Thirdly, the State Bank should also strengthen international cooperation to expand the activities to foreign markets so that the Bank can take advantage of capitals, technologies and management experience to learn and exchange information from other countries and international organizations 3.3.3 To BIDV Headquarter Business activities of Tuyen Quang Branch are influenced much by directions and orientations of the Headquarter In order to strengthen current mobilization activities and become more successful in coming years, the author has some recommendations for BIDV headquarter: - Complete management tools for capital mobilization and system of targets; evaluate the implementation of plans Assignment of targets should be linked with capacity of units and conditions of areas Specific directions of capital mobilization activities should be updated and followed market signals; also, guidance to the Branch must be complete and timely 64 - Develop a list of products; products must be diverse and convenient for customers; choose some highly competitive products to develop as "core" products of BIDV, make BIDV products distinct from that of other banks Review processes and adjust procedures to be simple, friendly and accessible so that customer can feel satisfied - Speed up the progress of Contact Center construction to improve the quality of services Also, Contact Center is a good distribution - Develop PR programs in the mass media Improve the efficiency of official channels: Website and Intranet - exploit information technology to improve quality of service, speed up the automation process and manage capital mobilization - Build up financial and incentive mechanism to ensure income distribution by raising incomes of employees - Improve the quality of transactions by applying 10 transaction rules for dealing with customers The monitoring is done regularly at the branch via periodical and unexpected assessment; have clear mechanism of award and punishment - Continue to improve the quality of human resources by training on knowledge and soft skills; update knowledge of services and selling skills to new employees - Adjust functions and duties of employees in charge of customer relations marketing - Complete policies of recruitment and training; adjust incentive policies to encourage and retain current workforce, attract qualified employees from outside 65 CONCLUSION Capital mobilization is one of key activities for COBA It has direct impacts to business activity as well as profitability and sustainability of banks In recent years, capital mobilization activities of Bank for Investment and Development of Vietnam - Branch of Tuyen Quang province has achieved positive results Total mobilized capitals have been increasing over the years, meeting demands for loans and investments of the bank In general, mobilized capitals of BIDV Quang Tuyen grew stably with reasonable structure over the last years, which ensure the safety of the Branch Being one of leading banks in Tuyen Quang, the Branch has asserted its position in the province The Branch has flexible policies and diverse forms of mobilization from time to time However, there are still existing problems Hopefully, specific measures mentioned above in this thesis can have practical significance for the future BIDV Tuyen Quang I want to thank my instructor Dr Phan Chi Anh, Board of Directors of BIDV Tuyen Quang, organizations and individuals who helped me complete this thesis Despite my efforts, deficiencies in the research process are inevitable Therefore, I appreciate comments of teachers to help me complete this thesis./ 66 REFERENCES Nguyen Dang Dan (2010) , Modern commercial bank management, Phuong Dong Publishing, Ho Chi Minh City Nha Trang University, Overview of Commercial Banks (2012), Lectures, Nha Trang Ngo Huong (2012), Activities of Vietnamese Commercial Bank after a year of joining the WTO, Statistical Publishing, Hanoi Nguyen Ngoc Huyen (2009), Business Strategy in the global economy, National Economics University, Hanoi Nguyen Linh (2012), Tuyen Quang should focus its resources on four breakthrough areas, http://baodientu.chinhphu.vn/Home/Tuyen-Quang-cantap-trung-nguon-luc-vao-4-linh-vuc-dot-pha/20133/163031.vgp Nguyen Thi Mui (2006), Commercial Bank Management, Finance Publishing, Hanoi Bank for Investment and Development of Tuyen Quang (2010, 2011, 2012), Annual Reports, Tuyen Quang Bank for Investment and Development of Vietnam (2007), Half Century of Bank Investment and Development of Vietnam (1957-2007), Hanoi Bank for Investment and Development of Vietnam (2010, 2011, 2012), Annual Report, Hanoi 10 Bank for Investment and Development of Vietnam (2010, 2011, 2012), Documents of Conference Manager, Hanoi 11 Bank for Investment and Development of Vietnam (2011), Development Strategy, http://bidv.com.vn/Nha-dau-tu/Tong-quan-ve-BIDV/Chien-luoc-phattrien.aspx 12 Branch of the State Bank of Tuyen Quang (2010, 2011, 2012), Report on situation of banking activities in Tuyen Quang province, Tuyen Quang 13 State Bank of Vietnam, Website ( http://www.sbv.gov.vn) 67 16 National Congress (2010), Credit Institutions Laws, 12th Session, on 16/6/2010, Hanoi 17 Hoang Thi Mai Thao (2008), Diversification of products and services of Commercial Bank of Vietnam, Journal of Banking and training, 70, Pg 1619 18 Nguyen Duc Thao (2004), Development strategy of banking services in Vietnam in the context of international economic integration, Bank Research Institute, Hanoi 19 Le Van Tu (2011), Commercial Banks, Statistics Publishing, Hanoi 20 David Cox (1997), Modern Banking, National Political Publishing, Hanoi 21 Frederik Mishkin (1994), Money, Banking and Financial Market, Scientific and Technical Publishing, Hanoi 22 Peter S Rose (2001), Commercial Bank Management, Finance Publishing, Hanoi 68 69 69