Improving personal business loan service at BIDV coc leu transaction office

ACKNOWLEDGEMENTS I am truly indebted and thankful to all of the teachers of the Vietnam Commercial University and Rouen, especially these ones of International Education Faculty for their kind assistance and creating every favorable condition for me to finalize this internship report Particularly, I owe sincere and earnest thankfulness Mr Pham Tuan Anh, Mrs Sonia Adam-ledunois - my tutor for spending much time and energy in guiding me through the research and helping me complete this report I am obliged to many of Ms Hoang Viet Ha, Mr Tran Ngoc Son and all of my colleagues at BIDV - Coc Leu Transaction Office who helped and supported me during the internship It is a great pleasure to thank everyone who helped me write this report successfully TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES INTRODUCTION Retail banking services are currently invested and developed by many banks It can be seen that credit revenues are still the main sources of banks thanks to high interest rates and large profit margins In the current credit market, loan services for business are paid more attention to by many Vietnamese banks for development In fact, loans for business are seen to account for a large proportion of the total loans In the current industrialization and modernization context, all resources from all economic sectors are encouraged to mobilize potential capital for economic investment and development To expand production and business activities, it is necessary to have much capital However, we can only access such capital by borrowing loans from commercial banks Therefore, it can be said that capital from commercial banks plays a very important role in expanding production and business activities Economic organizations and individuals are mainly the customers of commercial banks That banks develop policies on providing more business loans for economic organizations/units not only brings profits to banks themselves but it also creates favorable conditions for such organizations/units to develop their production and business activities That partly makes some small contributions to the development of Vietnam Lao Cai province, especially Sapa town, is currently considered as a main point for investment and development in the coming years This will allow Lao Cai Province to create a solid momentum for economic development, especially the small and medium-sized development of individuals Therefore, it is necessary to provide capital to quickly develop this economic sector During my internship at BIDV - Coc Leu Transaction Office, I decided to select the topic: “Improving personal business loan service at BIDV - Coc Leu Transaction Office” as my internship topic PART I: OVERVIEW OF THE INTERNSHIP LOCATION AND CONTEXT 1.1 BIDV • Name: Joint Stock Commercial Bank for Investment and • • Development of Vietnam Abbreviated name: BIDV Location: BIDV Tower, 35 Hang Voi, Hoan Kiem, • • • • Hanoi Slogan: Sharing opportunities, successful cooperation Tel: 19009247 / (+84-24) 22200588 Fax: (+84-24) 222 Swift code: BIDVVNVX Joint Stock Commercial Bank for Investment and Development of Vietnam, formerly known as Bank for Construction of Vietnam, was founded under the Prime Minister’s Decision No.177/TTg dated 26 April 1957 On 24 June 1981, it was renamed Bank for Investment and Construction of Vietnam On 14 November 1990, it was renamed Bank for Investment and Development of Vietnam On 23 April 2012, it was equitized and renamed Joint Stock Commercial Bank for Investment and Development of Vietnam under the SBV’s License No 84 On 24 January 2014, Joint Stock Commercial Bank for Investment and Development of Vietnam is officially listed on the Ho Chi Minh Stock Exchange with its listing code of BID Figure 1: BIDV’s business indicators in the 2013-2017 periods Source: BIDV It can be seen that BIDV’s growth rate was quite stable at about 16% to 19% in the 2013-2017 periods, equivalent to 16% of the average growth rate of total banking assets The reason for BIDV’s total asset growth in 2015 (+31%) was that BIDV merged with the Mekong Housing Bank (MHB) Then, BIDV has become the largest bank in terms of total assets This allowed BIDV to expand its networks and customer bases However, this merger also made BIDV suffer from a delayed growth in the next two years Specifically, in 2016, BIDV’s before-tax profits reduced compared with 2015 (95% of before-tax profits in 2015) In 2017, it was recognized that BIDV’s profit growth had reached 14% However, it was far behind state owned banks (VietinBank and Vietcombank) Even, it was also behind by joint stock commercial banks such VPB and TCB 1.2 BIDV - Sapa Branch and BIDV - Coc Leu Transaction Office 1.2.1 BIDV - Sapa Branch • Name: Joint Stock Commercial Bank for Investment and of Vietnam - Sapa Branch Development • • • • • • Abbreviated name: BIDV - Sapa Branch Location: No 20, Ngu Chi Son Street - Sapa Town - Sapa District - Lao Cai Number of employees: 65 Date of creation: February 2012 Tel: 020.3872.643 Fax: 020.3872.636 Activity: Mobilizing capital, providing services such as money transfer, bill payment, collection and providing loans to personal households and SMEs Particularly, it is in a strong position of providing the personal business loan service Bank for Construction - Lao Cai Province, one of the first 10 branches under the Bank for Construction of Vietnam, was established on 27 May 1957 according to the Decree No 233/ND-TC-TCCB of the Ministry of Finance Its functions were to manage and provide state budget capital for basic construction In 1976, after the total liberation of Vietnam, three Banks for Construction, namely, Lao Cai, Yen Bai and Nghia Loi, were merged into the Bank for Hoang Lien Son Province In 1991, after Lao Cai Province had been re-established, Bank for Investment and Development of Lao Cai Province was re-founded under the Decision No 134/QD dated 30 August 1991 of the Governor of the State Bank of Vietnam The system officially went into operation on 01 October 1991 Bank for Investment and Development of Lao Cai Province, Sapa Transaction Office was founded according to the Decision No 0028/QĐ-TCCB dated 31 January 2005 of the Director of Bank for Investment and Development of Lao Cai Province and it was officially put into operation on 01 February 2005 and it was named Sapa Transaction Office BIDV Sapa Branch was founded on 01 June 2016 Since then, BIDV - Sapa Branch has always gained stable business results and growth rates Remarkably, BIDV - Sapa Branch is consistently ranked among the TOP 10 branches which have the best business indicators in the North Currently, BIDV - Sapa Branch’s human resources include one part of BIDV Lao Cai’s staffs and one part of BIDV Bac Ha’s ones The total capital which BIDV - Sapa Branch mobilized at the end of 2016 reached 550 billion, increasing by 36.2% compared with the beginning, exceeding 19.2% of the target In addition, there is an reasonable increase in outstanding loans with a guaranteed credit quality At the end of 2016, BIDV - Sapa Branch got a total outstanding loan of 643 billion dong, up 25.6% compared with 2015 while its bad debt ratio stopped at 0.04% In 2017, its mobilized capital reached 630 billion dong, 480 billion of which were residents’ deposits, increasing by 80 million dong compared with 2016 With a growth rate of 15%, outstanding loans reached 730 billion dong Outstanding medium & long-term loans accounted for 65% of the total outstanding loans The bad debt ratio was less than 1% of the total outstanding loans 1.2.2 BIDV - Coc Leu Transaction Office BIDV - Coc Leu Transaction Office was founded and put into operation in 2016 at No 24, Hoang Lien, Coc Leu Ward, Lao Cai City It is one of the five transaction offices under the BIDV Sapa Branch Its business scope includes: Mobilizing capital, providing services such as money transfer, bill payment, collection and providing loans to personal households and SMEs At BIDV - Coc Leu Transaction Office, there are six staffs, including: one Director, one Deputy Director, two tellers and two customer service staffs Not only BIDV - Coc Leu Transaction Office but also other transaction offices in Lao Cai Province are in a strong position of providing the personal business loan service During the last years, this policy has been launched by the leaders of banks and business units It can be seen that Lao Cai province has achieved some certain achievements 1.3 Introduction of my internship Generally, Vietnam’s macro-economy has recently been stable and sustainable This creates favorable conditions for the development and expansion of personal business households and economic sectors in general In this context, Vietnam banking systems plays an key role not only in circulating capital resource but also creating fully financial service to satisfy the current requirements of individuals and enterprises To meet the increasingly high demands of customers, banks are continuously launching products which are new and competitive and high-tech to create differentiation in the banking services Personal business loans is currently considered as a traditional and extremely popular financial service provided by banks Thanks to advantages in its process as well as customer base, BIDV - Coc Leu Transaction Office is always in the vanguard of providing this service compared with other bank in the area However, BIDV - Coc Leu Transaction Office is facing with some fierce competition from other credit institutions because this is a popular financial product Therefore, it is very difficult for BIDV - Coc Leu Transaction Office to occupy the market share of personal business loans In the market of personal business loans, some banks such Agribank, MB Bank and VPBank, etc also provide such service and have gained a lot of relatively successful results It is competition from other credit institutions that pose threats of providing the personal business loan service at BIDV Sapa Branh - BIDV - Coc Leu Transaction Office However, it can be seen that the economy of Sapa is on the rise, especially since Sapa was recognized by the Government as a national tourist area at the end of 2017 In addition, Lao Cai People’s Committee has coordinated with Ministry of Culture, Information and Tourism to advertise Lao Cai’s images, promote investment and attract tourists Personal loans, especially for business, will become one of the prerequisites in the economic development planning orientation of Sapa Town Therefore, it is necessary for BIDV - Coc Leu Transaction Office to make some strong and drastic improvements in the coming time to get effective business results in term of sales and credit quality This will truly allow the Transaction Office to create its own advantages in the lending activities It is exploiting and using available resources in the economy to produce goods and supply service to meet the market demands and to gain profits that are considered as production and business activities Personal business loans are credit products provided to meet the demands for financing some production and business steps or implementing investment projects, business plans and services At BIDV - Sapa Branch, personal business loan service has customers who want to access loans to finance their production and business activities such as providing services and working as sales agents, trading units or purchasing clues Loan terms depend on the purpose of loans and the business type of personal loans Currently, personal business loans have different terms, including: short term, medium term, and long term Business loans often have larger amount than consumer loans, so their average interest rate is more preferable than that offered by consumer loans Thanks to owing a simple and common structure, the personal loan service for local business is one the most effective product The reason is that this service not only brings high net interest income but it can also sell many attached service & product packages In this context, I was allowed to have my internship at BIDV - Coc Leu Transaction Office under the BIDV - Sapa Branch During the internship, I received the guidance of Ms Hoang Viet Ha - Deputy Director in the Transaction Office My internship plan is shown in details as follows: Table 1: My internship plan at BIDV - Sapa Branch Date 05th to 09th February 20th to 24th February 27th February to 3rd March Task / Mission Learning about the personal business loan process at BIDV - Coc Leu Transaction Office Supporting doing some daily tasks Outcome Clearly understanding the personal business loan process Clearly understanding daily Receiving loan applications from activities at the Transaction Office Capturing the corresponding customers product catalog and conducting 5th to 23rd March 26th to 30th March 2nd to 6th April 9th to 13th April 16th April to 14th May 15th to 18th May 21st to 23rd May 24th to 25th May Supporting appraising customers’ loan applications Completing records and procedures after loan approval Supporting loan disbursements Controlling loans and collecting debts Conducting a customer survey about the personal business loan service at BIDV - Sapa Branch preliminary inspection Understanding the product requirements and the certain notes when appraising customer records Understanding steps after loan approval Clearly understanding how to conduct loan disbursements Clearly understanding how to control loans after disbursement and collect debts Assessing the service quality and finding out shortcomings in the service quality at BIDV - Coc Leu Analyzing the competitors of BIDV Transaction Office Clearly understanding BIDV - - Sapa Branch in the personal Sapa Branch ‘ strengths and business loan service weaknesses in this service Suggesting some Giving general assessments and suggesting some recommendations Writing the internship report recommendations for improving the quality Accomplishing the internship report PART II: INTERNSHIP IMPLEMENTATION AT BIDV - COC LEU TRANSACTION OFFICE 2.1 My internship position, responsibilities and tasks 2.1.1 BIDV - Coc Leu Transaction Office and my position In the bachelor program, I was accepted to work as a customer service staff at BIDV Coc Leu Transaction Office under the direction of Ms Hoang Viet Ha - Deputy Director BIDV - Coc Leu Transaction Office has some business functions as follows: • Building and developing relations with customers shared from the BIDV - Sapa Branch’s • customer base; Seeking customers to enrich BIDV - Coc Leu Transaction Office’s customer base and create • business bases; Providing individuals and enterprises with loans; mobilizing deposits from residents and economic organizations; providing domestic and foreign customers in need with financial services such as guarantee, e-banking, cards, domestic and international money transfer, • foreign currency trading, etc Developing and improving policies Currently, BIDV - Coc Leu Transaction Office is one of the BIDV - Sapa Branch’s five transaction offices It is located on Hoang Lien Street, which is the main road in Sapa Town Sapa Town has a dense population Moreover, the number of tourist coming to the town of Sapa each year reaches 200,000 people Taking advantage of its geographic location, Coc Leu Transaction has gained more certain achievements, especially in the personal business loan service, than other transaction offices under the BIDV - Sapa Branch 2.1.2 Personal business loan process at BIDV - Sapa Branch and my responsibilities In recent years, in the increasingly strong development context of retail banking services, Vietinbank and Techcombank play prominent roles in providing consumer loans However, the personal business loan service has also created its own mark in Lao Cai Province in general and Sapa Tow in particular because it is more flexible than consumer loans Another reason is that customers in Coc Leu mainly work in the business fields Currently, personal business loans have different terms, including: short term, medium term, and long term In spite of such different terms, BIDV - Coc Leu Transaction Office mainly provides short-term personal business loans Loans are used to supplement working capital for customers’ production and business activities Specifically, customers use loans to pay production & business costs such as purchasing raw materials, goods and services, etc Currently, customers with demands for personal business loans can access through methods, namely, stand-alone loans 10 I was assigned to provide clear instruction for business loans to pay goods and input raw materials for the sellers who not have any account at a bank For loans used borrowers to purchase agricultural products and confectionary, BIDV - Coc Leu Transaction Office will disburse to customers by cash or the disbursed amount is below 100 million dong (according to No 09/TT/NHNN) For fixed assets loans, if the customers’ sellers have accounts at BIDV or any bank, BIDV Coc Leu Transaction will directly disburse into the sellers’ accounts  Results obtained The disbursement process was done quite quickly Under the direction of Mr Son, I disbursed to 04 customers Where Ms Hua Thi Thanh Thuy was a typical case Case No (Succeeded) • Loan information: This was a personal business loan service, with a loan amount of 332 million dong, an interest rate of 7.3%/year and a loan term of months This loan was • ensured by the real estate located in Ngo Quyen Street, Kim Tan, Lao Cai City Customer information: The Customer is Ms Hua Thi Thanh Thuy, 38 years old, residing in Ngo Quyen Street, Kim Tan, Lao Cai City, Lao Cai Province Currently, she is trading • stationery products/items in the City of Lao Cai Financial position of customer: The customer’s income currently comes from trading stationery products/items in the area The Customer’s average revenue in the last three months was about 55 million dong, including wholesale and retail revenues The customer had a • demand for a short-term loan to pay the next goods shipment Customer risk and result: In this case, this is a typical customer with a good repayment and a clear business loan purpose In addition, the customer’s income comes from the wholesale of stationery items for schools and agencies in the area The customer’s income resource is quite stable The customer has a good status and a good attitude of timely repayment with the full interest amount under the credit contract signed between the customer and BIDV - Coc Leu Transaction Office 2.2.5 Controlling personal business loans and collecting debts The fifth mission which I implemented in the personal business loan process was to control loans and collect debts This task allowed me to clearly understand after-disbursement activities and debt collection Ms Hoang Viet Ha directly guide me to this task so that I could get a deep understand of after-disbursement management at BIDV - Coc Leu Transaction Office This mission was quite important in the credit process, so I would have observed how Mr Tran Ngoc Son did the task, under the orientation of Ms Hoang Viet Ha Controlling loans after disbursement consists of checking whether customers used their loans for the right purpose or not and checking the loan use efficiency of customers After that, Mr Son would 19 make a report of checking customer’s loans as regulated to days prior to the debt collection, Mr Son informed customers of the repayment of principal and interest In case where there is not enough balance on the customer’s payment account to pay principals and interest in the payment period, Mr would collect direct debts from the customer’s payment account In such cases, I supported Mr Son in making phone calls to customers to ask them to deposit into their payment account for debt collection  Results obtained After observing the process of controlling after-disbursement loans and collecting debts at BIDV - Coc Leu Transaction Office, I realized that this was a very important stage Any arising matter in this process reduce the efficiency of loans I will present one typical case I participated in the observation process Case No • Loan information: This was a personal business loan service, with a loan amount of 650 million dong, an interest rate of 8.3%/year and a loan term of months This loan was • ensured by the real estate located in Hoang Lien Street, Lao Cai City Customer information: The Customer is Mr Ngo Quoc Nam, 48 years old, residing in Hoang • Lien Street, Lao Cai City Currently, Mr Nam is trading high-class cosmetics in Sapa town Financial position of customer: The customer’s income currently comes from trading highgrade cosmetics such as chalk, perfume, shampoo, etc The Customer’s average revenue in the last three months was about 105 million dong, including wholesale and retail revenues The • customer had a demand for a short-term loan to pay the next goods shipment Customer risk and result: Mr Ngo Quoc Nam’s business activities were relatively stable, but in the past two months, he made late repayment After visiting his business establishment, I notice that his sales actives for tourists was suspended due to his repairing and upgrading the shop Therefore, his sales during the two months was affected After talking with Mr Nam, I noticed that his repair was completed and the number of customers buying his products/goods was stable again, even increased due to his upgrading the shop The late payment amount would be deposited into his payment account at BIDV to pay principals and interests in accordance with BIDV - Coc Leu Transaction Office’s regulations 2.3 Analysis of personal business loan service at BIDV - Coc Leu Transaction Office 2.3.1 Conducting a customer survey on personal business loan service at BIDV - Coc Leu Transaction Office After participating in the personal business loan process at BIDV - Coc Leu Transaction Office to get certain knowledge of this service, I was assigned to conduct a customer of the service quality Under the direction of Ms Hoang Viet Ha - Deputy Director of the 20 Transaction Office, I started to design the questionnaire and conduct a survey on the customers going to BIDV - Coc Leu Transaction Office for transactions The survey was expected to bring many objective information so that BIDV Coc Leu Transaction could evaluate its advantages and disadvantages in the business activities To this mission, firstly, I designed the questionnaire with the following main contents, namely: customer information (name, age, gender, occupation, income) and survey questions about the customer service quality Questionnaires were printed on A4 paper and distributed to customers going to BIDV - Coc Leu Transaction Office for business loans Within nearly one month, I distributed 150 questionnaires to customers After screening information, I collected 131 valid questions for research I summarized and entered data into the Excel file under the direction of Mr Hoang Viet Hoa My survey took place quickly and conveniently because I had some experience in summarizing statistics 21  Results obtained The survey sample includes 131 customers, most of who are at the age of 30 to 60 (80%) and most of whom are male (68%) 56% of these customers are currently working in the fields of agriculture, forestry and fisheries Customers trading and providing services account for 30% Figure 3: My survey sample According to my survey results, it can be seen that the quality of services provided by BIDV - Sapa Branch - Coc Loc Transaction is generally evaluated quite well by the majority of customers (78%) However, 29 customers (22%) said that the service quality was only at Level and Level It requires that BIDV - Coc Leu Transaction Office should solve such matter as soon as possible to improve its quality service to attract more customers In fact, other banks are also gradually attracting more customers than BIDV - Sapa Branch - Coc Loc Transaction Figure 4: Customer assessment of the personal business loan service at BIDV - Coc Leu Transaction Office Survey results show that BIDV’s reputation and influence are highly appreciated by many customers 97% of customers said that BIDV’s reputation were at Level to Level However, lending interest rates can also affect whether customers can want to continue to use BIDV’s services in the future or not when customers (30%) evaluate that such lending interest rates have not been reasonable To create simple procedures as well as to bring convenience to customer, its necessary for BIDV to pay attention to such as criteria when 76% of customers are not satisfied with BIDV’s procedures Many customers evaluate that staffs’ service quality are not good in term of qualification and attitude 43 of 131 customers (33%) gave assessments of such service quality at Level and Level Figure 5: Customer satisfaction on personal business loan service at BIDV - Coc Leu Transaction Office BIDV - Coc Leu Transaction Office’s location and infrastructure quality is evaluated to have well met the requirements of customers The reason is that BIDV - Coc Leu Transaction Office is located in the center of Lao Cai City and it has just invested into its facilities Therefore, BIDV - Coc Leu Transaction Office should take such advantages to further develop in the future 22 2.3.2 Competitor analysis of BIDV - Sapa Branch on personal business loan service Currently, BIDV is the leading bank in providing the personal business loan service because it has many advantages such as having a longstanding customer base and working as a state-owned bank trusted by many customers Its competitors include other State-owned banks such as Vietcombank, & Vietinbank and other joint stock commercial banks such as Techcombank and MBBank These competitors are also giving threats to BIDV’s position in this service  Service To better the customers’ demands for business loans, banks have always innovated and improve their project features For example, MB Bank can provide loans for customers with a loan amount of up to 90% of the customers’ demands and with a lot of loan purposes such as working capital loans; additional working capital loans; Apartment, house and project land loans; construction, lease, repair loans for factories, stalls and stores Meanwhile, Vietinbank is also willing to provide a loan for customers with a loan amount of up to 80% of the customers’ demands in a maximal loan term of years Techcombank is willing to provide customers with a loan of up to VND billion and grace the principal up to months, which reduces the pressure of paying interest for customers  Service quality In addition to traditional loans for business, other credit institutions in the area also provide many product packages integrated with many additional services to bring convenience and new experience to customers Specifically, Techcombank has launched the zero-free campaign in which customers not have to pay any fees and charges for their eBanking transactions MB Bank is also applying e-banking packages which are deployed with its strategic partner, Viettel to bring the best service experience to customers In order for BIDV to remain its position as well as to ensure that it still is the leading banking in providing the personal business loan service, it is necessary for the leaders of BIDV - Sapa Branch and BIDV - Coc Leu Transaction Office to develop flexible product strategies and to integrate utilities into products so that it could bring convenience and new experience to customers, keep the current number of customers as well as attract new customers 2.3.3 SWOT analysis on BIDV’s personal business loan service Lao Cai Province’s economic growth is forecasted to continue to favorably develop with many investment opportunities in developing economic infrastructure At that time, the banking sector will play an important role in providing loans for business and production for the prioritized fields Currently, BIDV has many advantages in providing the personal 23 business loan service And this is the key service which BIDV - Sapa Branch will promote in the coming time Table 3: SWOT matrix of BIDV’s personal business loan service Strengths Opportunities BIDV is the second largest bank in providing Having much great potential for loans to customers in Vietnam and the leading developing the personal business loan bank in financing infrastructure development service; projects with a strong customer base and Being the main bank in implementing the Government’s credit policies reputation in the banking and financial industry; Being much supported by the Government because BIDV plays an important role in the banking system; Having a transparent personal business loan process Weaknesses Threats Being more easily affected by the Government’s State-owned banks and other commercial monetary policy than other banks; joint stock banks are developing and Having no timely flexibility in updating product applying high technology into their features and service quality business activities; The personal business loan service requires resources to ensure credit quality 2.4 KPI and KPR 2.4.1 Key performance Indicator (KPI) With the aims at becoming the retail bank No in Vietnam, BIDV actively promotes the sales of its retail products throughout the country Thanks to opportunities in 2018, BIDV - Coc Leu Transaction Office was assigned by BIDV - Coc Leu Transaction Office’s leaders to implement the business plan of 2018 with a lot of threats The details are shown as follows: Table 4: KPIs of BIDV - Coc Leu Transaction Office No Criteria Percentage (%) Planned Sales from loans for business 25% 500 Outstanding loans for business 20% 300 New credit cards 20% 96 New payment cards 10% 220 New customers 25% 40 Total 100% Pursuant to my internship objectives, BIDV - Coc Leu Transaction Office’s directions as well as Mr Hoang Viet Ha’s guidance, I also set my own KPIs during the internship at the Transaction Office My KPIs include: Sales from loans for business, number of new customers, attached products, and mobilized capital The details are shown as follows: Table 5: My KPIs during the internship 24 No Criteria Percentage (%) Planned Sales from loans for business 25% Outstanding loans for business 20% 1.5 New credit cards 20% New payment cards 10% 10 New customers 25% Total 100% 2.4.2 Key performance results (KPRs) of BIDV - Coc Leu Transaction Office  Key performance results (KPRs) of BIDV - Coc Leu Transaction Office At the requests of BIDV - Coc Leu Transaction Office’s leaders and BIDV - Coc Leu Transaction Office’s leaders, BIDV - Coc Leu Transaction Office has promoted the personal business loan service since the beginning of 2018 Based on the business indicators in the first quarter of 2018, it can be seen that BIDV - Coc Leu Transaction Office has basically followed its assigned KPIs strictly Specifically, as of 31 March 2018, the sales from loans for business reached 102 billion dong, equivalent to about 20% of the target of 2018 Of which, trade and services still account for a large proportion (42%) of the total loans The accumulative outstanding loans stopped at 250 billion dong, equivalent to 25.4% of the target of 2018 Attached products were also provided more in comparison with the same period of 2017 However, this rate was still slow for credit cards The reason is that payment infrastructure in Vietnam is not really good Specifically, in the first quarter, Coc Lue Transaction Office only issued 16 credit cards out of 96 ones as planned for the whole year Two criteria, payment cards and new customers, are forecasted to have very good results when Coc Leu Transaction have completed 30% of the year target in the first quarter It can generally be seen that BIDV - Coc Leu Transaction Office has paid much attention to develop its business activities to meet the requirements of KPIs as assigned Moreover, the Transaction Office strictly comply the general policies of BIDV - Sapa Branch as well as BIDV - Coc Leu Transaction Office’s leaders  My KPRs during my internship To make some contributions to the general success of Coc Leu Transaction in the first quarter, in addition to learning about many important work skills, I completed all the assigned tasks under the enthusiastically guidance of staffs More importantly, for many criteria, I well completed and exceed the targets The details are shown as follows: Table 6: My KPRs during the internship No Criteria Sales from loans for Percentage (%) 25% 25 Planned Implemente d 1.8 Results 90% business Outstanding loans for 20% 1.5 1.2 80% business New credit cards 20% 3 100% New payment cards 10% 10 12 120% New customers 25% 75% Total 100% 3.24 89% To achieve the above KPRs, it is lucky for me to receive a lot of enthusiastically support from staffs in BIDV - Coc Leu Transaction Office In addition to such support, I also tried my best to apply my learned knowledge into practice, to make specific and clear plans for doing each task My KPRs were highly appreciated by staffs as well as leaders at BIDV - Coc Leu Transaction Office Also, they also recognized that this was a very good result for an intern at BIDV - Coc Leu Transaction Office 2.4.3 Assessments and recommendations for improving personal business loan service at BIDV - Coc Leu Transaction Office  Achievements In spite of economic difficulties as well as fierce competition from other credit institutions in the area, BIDV - Coc Leu Transaction Office has still gained good achievements During the recent time, BIDV - Coc Leu Transaction Office has developed proper sales strategies and positively expanded its markets Therefore, it has achieved many successful results in its lending activities in general and in the personal business loan service in particular Such achievements include: Firstly, business loans have been expanded continuously in term of scale In 2017, the growth rate of business loans was twice as high as that in 2016 (The accumulative outstanding loans also had a double increase, reaching 233 billion dong in comparison with 127 billion dong in 2016) Secondly, BIDV - Coc Leu Transaction Office has expanded the provision of business loans for other sectors such as agriculture, industry, especially trade and service Thirdly, in term of safety criteria, overdue debts and bad debts for the personal business loan service were remained at a safe level (0%) during this time In spite of new establishment, BIDV - Coc Leu Transaction Office can still remain the repayment quality of customers This is a very good results which the Transaction Office need to further promote in the next time  Shortcomings 26 After analyzing the real situation of the personal business loan service at BIDV - Coc Leu Transaction Office, I realized that there were some shortcomings in this service as follows: Firstly, although business loans had good growth rates, the accumulative outstanding loan to loan sales ratio was relatively low (233/451, accounting for 52%) This suggests that loans are short-term and long-term without any loan turnover Secondly, in term of the structure of outstanding loans for business, it can be seen that there is an increase in the structure of outstanding loans when business loans are being provided to customers in many fields However, this rate is still slow, mainly focuses on customers in the trading and service fields Thirdly, it can also be said that BIDV - Coc Leu Transaction Office has not been flexible in proposing product features, selling attached services and providing customers with many changes to experience its products and service Meanwhile, other credit institutions are doing this matter better and faster thanks to applying digital applications  Causes o Causes form BIDV - Coc Leu Transaction Office BIDV - Coc Leu Transaction Office is too cautious about providing loans for borrowers, especially loans for new business activities in the area This is considered a reason why BIDV - Coc Leu Transaction Office’s loan sales increase but outstanding loans are low due to the low rate of loan turnovers Safety is very important and BIDV - Coc Leu Transaction Office has don it well However, it is also necessary for BIDV - Coc Leu Transaction Office to consider between capital safety and profits gained from its business activities Thenceforth, it can develop proper credit policies to promote credit sales and to expand its market in the next time For customers who have good credit relationships with the Transaction Office and prestigious repayment abilities, when requested by customers to increase credit limits, credit officers are often subjective in appraising some steps such as re-evaluating collateral, analyzing customers’ repayment sources and their financial positions, etc BIDV - Coc Leu Transaction Office has not had enough accurate information to analyze and evaluate customers This causes credit officers to make some mistakes in determining loan purposes, loan terms, etc Credit information received by credit officers from customers is not always complete because customers can use many methods to hide bad information, so credit officers often spend much time on verifying customers’ credit information as well as seeking for other information from other sources 27 In spite of no occurring bad debts, BIDV - Coc Leu Transaction Office is likely to face with difficulties in controlling the credit quality in the future o Causes from customers Customers are still not good at managing and using capital resources They have not really adapted to and operated their business activities effectively in the market economy The main reason is that customers are individuals In fact, after loan disbursement, it can be seen that many customers not use their loans for the right purposes as signed in their credit contract Moreover, they not have a sense of paying their principals and interest to BIDV - Coc Leu Transaction Office on time in spite of being managed and urged by BIDV - Coc Leu Transaction Office Therefore, that BIDV - Coc Leu Transaction Office suffers from risks in overdue or bad debts is only a matter of time o Other causes It is fierce competition in the banking marketing that make the Transaction Office feel it difficult to mobilize capital and provide business loans Such competition not only makes Coc Leu Transaction’s market share reduce but it also leads to a large decrease in the number of good standard customers at the Transaction Office In term of the regional economy, its scale and development rate have some effects on the business indicators of BIDV - Coc Leu Transaction Office However, it is a key point for tourism development, but its residents mainly are personal business or households Therefore, there are some limits for such residents in accessing financial services And this can be considered as a threat to banks in the future when such banks want to provide their products/services for this customer group 28 PART II: ASSESSING MY INTERNSHIP IMPLEMENTATION 3.1 Difficulties encountered and solutions applied  Difficulties encountered during the internship During the internship BIDV - Sapa Branch - Coc Leu Transaction, I was always supported by Ms Hoang Viet Ha as well as oriented by the Management Board timely However, this is the first time I have worked in a big bank like BIDV, so I also encountered a lot of difficulties, as follows: Firstly, I had difficulty in gathering data and enriching customer base BIDV - Coc Leu Transaction Office has a relatively large customer base while its market has not increased in the past years Therefore, I found it difficult to create new customer bases for sales Secondly, I found it difficult to find out the strengths and weaknesses of products and services provided by BIDV and other banks in the area Due to a lack of practical knowledge, it was very difficult for me to compare BIDV’s strengths and weaknesses with other banks’ Thirdly, because of a lack of experience and seniority, I often encountered some difficulties in working with individual customers going to the Transaction Office for loans Therefore, I have not really created any trust in the eyes of customers  Solutions applied to overcome difficulties encountered Firstly, concerning difficulties in collecting customer data, I positively sought for business households on the internet and in the travel advertisements As a result, I created my own list of customers In addition to the list of customers available, the number of new customers gradually increased This ensured that I had enough customer data for exploitation Secondly, concerning finding out the strengths and weaknesses of the personal business loan service in the area of Sapa Town, I took the initiative in chatting and exchanging with colleagues at other banks in the area, took note of useful information and then summarized and compared such information to find out the strengths and weaknesses of this service, thereby get an overview of this service offered by BIDV’s competitors Thirdly, due to a lack of communication experience, I actively made phone calls for business Moreover, I always prepared contents for customer appointments carefully, showed professionalism dedicated service attitudes to customers going to BIDV - Coc Leu Transaction Office for transactions 3.2 My knowledge and skills gained During the internship BIDV - Coc Leu Transaction Office, I got a lot of new knowledge and skills These are really useful for me Specifically: 29  Knowledge gained Firstly, it is always necessary to show professionalism through professional knowledge and working styles I always tried to work towards such things during the internship Moreover, such things are considered as orientations for my credit career Secondly, it is very important for me to carefully learn and study knowledge at university, especially office computer skills, presentation skills, or even letters and arts and sports These skills were really useful for me to be able to quickly understand the basic operations at BIDV - Coc Leu Transaction Office and to integrate with the environment here Thirdly, it is unnecessary for an intern like me to focus on sales without any attention to the quality and efficiency In fact, I realized that many interns or new employees often suffered this problem due to some pressures related to sales As a result, they often made some errors/mistakes during the working process, making the service quality at BIDV - Coc Leu Transaction Office be decreased  Skills gained Firstly, my office computer skills are the most important skill I gained during the internship at BIDV - Coc Leu Transaction Office Theoretical knowledge and practical applications allowed me to well manage customer data as well as quickly enter data customer information into BIDV - Coc Leu Transaction Office’s credit management system Secondly, I improved my skills in communicating with customers directly or via telephones In spite of initial troubles, I was gradually getting more and more confident in talking with customers under the direction of staffs at BIDV - Coc Leu Transaction Office 3.3 Career plan After the internship at BIDV - Coc Leu Transaction Office, I gradually imagined my future career in the banking and financial sector In medium-term, firstly, I will focus on learning about knowledge and experience and doing tasks; try to use knowledge and experience available, especially practical knowledge I obtained at BIDV - Coc Leu Transaction Office for further completion Secondly, I will also attend some financial analysis or specialized knowledge courses on banking and finance in order to improve my knowledge In long-term, I hope that I can become a good credit manager, making me satisfied with the passion for finance and credit business I think that practical knowledge I got at BIDV Coc Leu Transaction Office will be value and useful for me in the future 30 CONCLUSION During the internship at BIDV - Coc Leu Transaction Office, I accomplished all of missions assigned Due to limited experience as knowledge, I encountered a lot of difficulties during the internship However, thanks to enthusiastic support from staffs and leaders, especially Mr Son and Ms Ha, I gained certain achievements as set by KPIs during the internship While having the internship from February to May 2018 at the Transaction Office, my office skills such as supporting documents and entering report data, etc were improved significantly I also learned many useful skills as well as profession working styles from staffs at BIDV - Coc Leu Transaction Office The process of loan services is clearer than theoretical knowledge I learned at university In spite of observation or direct participation, I could get a better view of the process of loan service At BIDV - Coc Leu Transaction Office, I got a clear understanding of some concepts such as service quality, customer experience It can be said that these are extremely important concepts used as guidelines for banks in their investment and development activities in the coming time By finishing this internship, I realized that I had completed my internship missions relatively well and applied theoretical knowledge into practice Moreover, I made some good relationships with staffs in the company During the internship at BIDV - Coc Leu Transaction Office, in addition to clearly understanding its activities, BIDV’s cultures and its staffs gave me a lot of motivation and passion for in the banking and finance fields I also hope that I can work as a credit officer for BIDV in the future When having a chance to work for BIDV, I will gain a lot of professional knowledge and experience, allowing me to further develop in my future career 31 APPENDIX Appendix 1: BIDV BIDV’s financial results in 2014-2017 (million dong) INCOME STATEMENT I Net interest income (1-2) VIII Operating expenses XI Profit before tax (IX-X) XIII Net profit after tax (XIXII) XV Net profit attributable to the equity holders of the Bank (XIII-XIV) BALANCE SHEET Year 2014 01/01-31/12 16,844,262 8,623,895 6,297,033 Year 2015 01/01-31/12 19,314,969 11,087,176 7,948,656 Year 2016 01/01-31/12 23,393,613 13,532,094 7,664,714 Year 2017 01/01-31/12 30,955,331 15,504,237 8,665,177 4,985,667 6,376,756 6,193,545 6,945,586 4,947,887 6,298,081 6,101,749 6,786,710 Year 2014 Year 2015 Year 2016 Year 2017 01/01-31/12 01/01-31/12 01/01-31/12 01/01-31/12 650,340,373 850,669,649 1,006,377,748 1,202,283,843 TOTAL ASSETS III Placements at and loans to 50,062,372 67,260,645 other credit institutions VI Loans, advances and finance 439,070,127 590,917,428 leases to customers TOTAL LIABILITIES 616,734,174 808,334,189 II Placements and borrowings 86,186,209 79,758,318 from other credit institutions III Deposits from customers 440,471,589 564,583,061 VIII Capital and Reserves 33,271,267 42,335,460 Capital 29,799,145 34,271,776 Undistributed earnings after 3,517,007 4,256,503 tax/Accumulated loss (3) Year 2014 Year 2015 RATIOS 01/01-31/12 01/01-31/12 Trailing EPS 1,760 2,158 Book value per share 11,835 12,383 P/E ROEA 15.15 16.66 ROAA 0.83 0.84 32 61,865,173 118,355,293 713,632,772 855,535,525 962,265,673 1,153,449,833 92,499,222 91,978,862 726,021,696 44,112,076 34,304,509 859,985,173 48,834,010 34,369,933 4,938,310 7,092,011 Year 2016 01/01-31/12 1,785 12,903 7.96 14.12 0.66 Year 2017 01/01-31/12 1,985 14,284 12.85 14.6 0.61 Appendix 2: Survey questionnaire Dear customers, This survey at BIDV - Coc Leu Transaction Office aims to improve our service quality of BIDV’s personal business loan service We would like to thank you for spending time on answering the questionnaires Your answers will contribute to improve the service quality as well as enhance the service competency of BIDV - Coc Leu Transaction Office Full name ………………………………………………………………… Address Tel Age (years old): ☐ < 30 ☐ 30 to 39 ☐ 40 to 60 ☐ > 60 Gender: ☐ Male ☐ Female Business fields of the householder ☐ Agriculture, forestry, fisheries ☐ Trade and services ☐ Industry and construction ☐ Others: Average monthly household income ☐ > 20,000,000 ☐ 15,000,000 to 20,000,000 ☐ 10,000,000 to 15,000,000 ☐ < 10,000,000 Familial situation of the householder ☐ Married ☐ Divorced ☐ Single ☐ Others: Please give us your assessment of the following factors of the personal business loan service (1 - very dissatisfied, - very satisfied): 7.1 Service quality 7.2 Prestige 7.3 Convenient and clear procedures 7.4 Reasonable interest rates 7.5 Convenient location 7.6 Staff qualification 7.7 Facilities Please give us your general satisfaction on personal business loan service at BIDV Coc Leu Transaction Office (1 - very dissatisfied, - very satisfied): Thank you for your contribution! 33 ... customer survey on personal business loan service at BIDV - Coc Leu Transaction Office After participating in the personal business loan process at BIDV - Coc Leu Transaction Office to get certain... account at BIDV to pay principals and interests in accordance with BIDV - Coc Leu Transaction Office s regulations 2.3 Analysis of personal business loan service at BIDV - Coc Leu Transaction Office. .. service quality at Level and Level Figure 5: Customer satisfaction on personal business loan service at BIDV - Coc Leu Transaction Office BIDV - Coc Leu Transaction Office s location and infrastructure