Nâng cao năng lực cạnh tranh của NHTMCP ngoại thương việt nam trong điều kiện hội nhập quốc tế về tài chính – ngân hàng tt tieng anh

MINISTRY OF EDUCATION AND TRAINING HANOI UNIVERSITY OF BUSINESS AND TECHNOLOGY - - VU THI THU HUONG ENHANCING THE COMPETITIVENESS CAPACITY OF JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM IN TERMS OF INTERNATIONAL INTEGRATION OF FINANCE AND BANKING Major: Business Administration Code: 340 101 ABSTRACT THESIS ECONOMIC WILL HANOI – 2020 THE WORK WAS COMPLETED AT: HANOI UNIVERSITY OF BUSINESS AND TECHNOLOGY Suppervisors: PROF DR VU VAN HOA ASSOC PROF DR PHAN VAN TINH REVIEWER 1: ASSOC PROF DR DAO MINH PHUC VIETNAM STATE BANK REVIEWER 2: ASSOC PROF DR NGUYEN TRONG THAN ACADEMY OF FINANCE REVIEWER 3: ASSOC PROF DR LE VAN LUYEN BANKING ACADEMY The thesis will be defended in front of the University's Thesis Evaluation Council, meeting at the Hanoi University of Business and Technology At ……h …… date ……month…….2020 The thesis can be found at: - The National Library - The Library of Hanoi University of Business and Technology INTRODUCTION Urgency of research topics In developed economies, the banking system has always played an important role in the development of the economy Commercial banks not only ensure capital for production - business, but also act as a bridge between businesses, the market, the Government and the economies in the region as well as across the globe The role of commercial banks has been confirmed to be indispensable in the modern economy Commercial banks exist in a specific environment To stand firm and develop, they face many difficulties and challenges These are difficulties in business capital, on the level of labor, the operating environment, institutional arrangements Especially management capacity This is "self-created" knowledge No commercial bank fully communicated and "genuinely" instructed its partners about market experiences Therefore, commercial banks must find ways to overcome other commercial banks and business in the same area This is a process of competition within the industry of the commercial banking system Currently, Vietnam's economy has not been fully opened, so the competition among commercial banks is now mainly within the industry When the economy is open completely , competition in the market Vietnam will regional and advance to the global competition At that time competition will be at a higher level and really full of its meaning is fierce competition Regarding competition among commercial banks, there have been many authors and research works However, the competitiveness of JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM - Vietcombank, in terms of international integration of finance and banking, has not been studied deeply and comprehensively by many authors The author of this thesis finds that the above contents need to be systematically studied The purpose to clarify the position and role of the Vietcombank in Vietnam banking system today At the same time, clarifying Vietcombank's competitiveness with domestic commercial banks and its ability to play on the international playing field Regarding the above contents, the author of the thesis emphasizes: First of all, Vietcombank's role in the Vietnamese economy and with the current Vietnamese commercial banking system Secondly , Analyzing the strengths and limitations of Vietcombank in terms of financial capacity, management capacity and Vietcombank's competitiveness in the market Third, Assess and rate Vietcombank according to the announced criteria of the commercial banking system in the market These are basic contents assessing the competitiveness of Vietcombank and the leading prestigious commercial banks in Vietnam Stemming from the above-mentioned reasons, the topic: "Enhancing the competitiveness capacity of Joint Stock Commercial Bank for Foreign Trade of Vietnam in terms of international integration of finance and banking", selected by the PhD student make a PhD thesis topic, which has practical and scientific significance Research purpose Section landing research thesis to make clear the content body of the following: 2.1 Analyzing the current situation of Vietnam commercial banking system, focusing on Vietnam commercial bank system in terms of competition and international integration: - The role of Vietcombank and Vietnam commercial banking system in terms of international integration in Finance - Banking - The number and types of commercial banks in the internal competitive conditions - The reality of the capital, assets, capabilities science - technology Vietcombank and Vietnam commercial system available today - Vietcombank's management capacity in terms of competition and international integration 2.2 Analyzing Vietcombank's competitiveness in the current conditions of international integration in Finance - Banking 2.3 Researching the state of the State's policies towards the Vietnam commercial banking system and with Vietcombank in the process of Vietnam's international integration in Finance - Banking 2.4 Researching policies of some countries in the region and the World on enhancing the competitiveness of commercial banks, can refer to Vietcombank 2.5 Proposing some solutions to improve Vietcombank's competitiveness in the context of international integration in finance and banking Research subject and scope Subject of study : Vietcombank With the key contents are: - Assessing the status of business, financial capacity of VCB in the context of competition and international integration, VCB's management ability in competition conditions among commercial banks, VCB's science and technology capacity, in competitive conditions and international integration of finance and banking for a period of years from 2014-2018 Research scope - Overview of Vietcombank and its development in the period of 2014 2018 - Vietcombank's position and role in the Vietnamese economy and its foreign relations - Research period: consecutive years: 2014 - 2018 Research Methodology - Methodology The thesis is studied based on dialectical materialism and historical materialism The research data is based on the reality of socio-economic development of Vietnam and the World in the period of 2014 - 2018 In which, based on data on the development of Vietnam's commercial banking system, the focus is on Vietcombank - object of this thesis - Research Methodology Gather documents and data related to the subject of the research - VCB, with the document was officially announced on the mainstream media Summary, theoretical system and actual data according to VCB Annual Report Comparative statistics by expert method Comments and conclusions Scientific and practical significance of the research topic Firstly , the thesis contributes to clarify the content: the term of competition, the origin of competition, the competitiveness in general and the enterprise system in the market economy Especially in the context of international economic integration Secondly, the thesis stated and analyzed the current situation of competitiveness of Vietnamese commercial banks and the State's policies affecting the Competitive capability of the Vietnamese commercial banking system in the context of international integration in finance - banking Thirdly, to study status of VCB's competitiveness in the context of international economic integration in finance - banking Fourthly, the thesis contributes to finalizing the financial policy for the development of Vietnam's commercial banking system, focusing on improving Vietcombank's competitiveness, in the context of international integration in Finance - Banking Based on the research results, the thesis proposes a number of solutions to improve Vietcombank's competitiveness in the current conditions of international financial and banking integration of Vietnam Structure of the thesis: The content of the thesis is structured into three chapters Chapter OVERVIEW OF COMMERCIAL BANK AND COMPETITIVENESS OF COMMERCIAL BANK IN CONDITIONS OF INTERNATIONAL INTEGRATION ON FINANCE - BANKING Chapter CURRENT SITUATION OF BUSINESS AND COMPETITIVENESS OF JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM IN CONDITIONS OF INTERNATIONAL INTEGRATION ON FINANCE - BANKING Chapter SOLUTIONS TO IMPROVE THE COMPETITIVENESS CAPACITY OF JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM IN CONDITIONS OF INTERNATIONAL INTEGRATION ON FINANCE – BANKING Chapter OVERVIEW OF COMMERCIAL BANK AND COMPETITIVENESS OF COMMERCIAL BANK IN CONDITIONS OF INTERNATIONAL INTEGRATION ON FINANCE - BANKING 1.1 COMMERCIAL BANK AND THE ROLE OF A COMMERCIAL BANK IN THE MARKET ECONOMY 1.1.1 Overview of the development of commercial banks in the market economy In Vietnam market, commercial banks have developed and built up a system with the State Bank of Vietnam - responsible for state management in the field of currency, credit, banking and commercial banks with non-bank credit institutions These institutions are capable of managing money - credit and banking services in the socio-economic life 1.1.2 Functions and operations of commercial banks 1.1.2.1 Functions of commercial banks In the market economy, commercial banks perform the following functions here : i Credit intermediaries Performing the function of credit intermediaries, commercial banks are the "bridge" between the subjects with free capital and those who need capital for production - business and investment ii Intermediary payment Acting as an intermediary for payment when a commercial bank makes a payment at the request of a customer Payment transactions of customers arise diverse, such as payment of goods, services, money transfer or enter into the customer's deposit accounts of receipts - sales proceeds and valid receipts, Other legal orders of account holder Performing this function, commercial banks act as "cashiers" for account holders and follow their orders iii "Money creation" function With the function of credit intermediaries and payment intermediaries, commercial banks have the ability to create credit money, which is the bookkeeping currency This currency is shown on customers' payment deposit accounts, at commercial banks This amount is part of the amount of money used in customer transactions and commercial banks 1.1.2.2 Tasks of commercial banks Although in the markets with different levels, the names and contents of commercial banks' operations have not changed the traditional names and contents Therefore, in this thesis, the author still refers to inherent operations of commercial banks, which are: i Capital raising operations Capital mobilization is a profession whereby commercial banks gather idle capital sources in the economy, form a centralized monetary fund to use for the determined purpose ii Use of funds As used funding operations of commercial banks The capital is mainly used to carry out lending, investment activities and repaying due debts that commercial banks have mobilized in advance Ensuring safety in business, in which credit security is put first The above contents are effectively implemented depending on the management capacity , in which credit management, is considered above all 1.1.2.3 Intermediary payment Payment is both a function and a professional of a commercial bank Performing this function, commercial banks are the agencies that organize payment in the economy Commercial banks apply the most effective forms of payment to legal entities and natural persons 1.1.3 The role of commercial banks in the market economy The role of commercial banks is evident in the following areas: 1.1.3.1 Commercial banks provide timely capital for the economy The timely and timely supply of capital is the most important factor determining the success of the enterprise's production and business This is also a favorable opportunity to promote the development of the economy 1.1.3.2 Commercial banks are dynamic intermediaries between businesses and the market As an institution that provides the most important capital to the economy, as a bridge between money holders and people who need money, between businesses and markets, commercial banks are really considered as "midwives" for development, no of businesses but also of the economy 1.1.3.3 Commercial banks are the tools of macroeconomic regulation of the economy In a unified economy managed by the Government, commercial banks must comply with the monetary, credit and banking policies of the State Therefore, with the economic development policy, in addition to capital from the state budget, the Government must use a significant amount of capital from commercial banks Investing in economic development with credit capital is a strategic solution Therefore, commercial banks must abide by the State's guidelines From the reality of all economies, commercial banks are an important tool of the State to promote economic development 1.2 COMPETITIVENESS AND SOME CRITERIA FOR ASSESSING COMPETITIVENESS OF COMMERCIAL BANK 1.2.1 General overview of competition and competitiveness of enterprises 1.2.1.1 Some views on business competition i The concept of enterprise competition There are many definitions of competition However, the views and content of competition among entities in the market economy of economists are similar In view of the author of this thesis , the above concepts, although given at different times, but the content, are generally consistent These concepts are still used to study competition in the context of the current international market integration economy However, to clarify the content and development of competition in the trend of international economic integration, this thesis analyzes some contents of the development of competition in terms of market expansion and development of enterprises in general and commercial banks in particular ii Competitiveness In the framework of this thesis, only limited research on economic competition of enterprises and in-depth study of competition among commercial banks, focusing on Joint Stock Commercial Bank for Foreign Trade of Vietnam To clarify the content of enterprise competitiveness, the thesis gives an overview of the competitiveness of economic sectors, namely - National competitiveness Compiled from many different perspectives, according to the author, this thesis competes enterprises in terms of development and international integration, which can be understood as follows: Business competition is a competition between businesses that produce the same goods or provide a service in the same market with specific production and business secrets and superior management capacity and the ability to apply Science - Technology effectively to gain higher market share, with the goal of maximizing profits - International competitiveness Unlike national competition, international competition is a demonstration of the nation's capacity in the international arena iii Factors determining competitiveness - Assessment of national competitiveness So far, there are still many views on the factors that determine national competitive competence But there were some relatively unified opinions on factors that play a decisive role for the national competitive competence, namely: (1) The degree of openness of the economy ; (2) The role of the Government ; (3) Finance ; (4) Science - Technology ( Science - Technology ) ; (5) Infrastructure ; (6) Administrative capacity value ; (7) Labor; (8) Institutions - Assessment of enterprise competitiveness To assess the competitiveness of enterprises need to consider and analyze the basic elements of the object, then rank the competitiveness of this object The elements of the object of interest, that is: + Field of Production - Business and the size of the business + Financial capacity, in which equity plays a crucial role + Management capacity + Scientific - technological capacity + Quality of human resources 1.2.1.2 Development of economic competition i Origin of competition Human society, in the economy, among businesses also has similar "struggle" processes But it is not a struggle to survive as in nature Which is competing to survive and grow ii Definition of competition Competition takes place in almost all areas: natural, economic, social so the content of this terminology is wide and complex Therefore, in this thesis, it is not possible to cover all fields, but only limits some basic contents of economic competition Mostly competition between businesses, including commercial banks From the statement above, in view of the thesis , the competitive economy can be understood as follows: Economic competition is a competition between entities, using specific tools (tactics) to win the most profitable Production - Business conditions, in order to gain absolute market share, with the utmost goal of profit maximization Economic competition has broader content than business competition Along with economic development and market expansion, economic competition is also expanding, developing and increasing at a higher level 1.2.1.3 Classification of economic competition Competition classification is a combination of several criteria that clarify the scope, level and nature of enterprise competition In this thesis, only the most general content, without in-depth analysis of business ethics in competition For the reasons mentioned above, enterprise competition is classified according to the following criteria: i According to economic sector This type of competition is divided into two categories, intra-industry competition and competition between industries ii.The level of competition By level, or level of competition , competition is divided into two categories: perfect competition and imperfect competition iii According to business ethics [ 4 ] According to business ethics, competition in economics is divided into two types: Legal competition and illegal competition iiii According to the market [ ] Compete in market or place of business Kind of competition is divided into two categories: competition within the national and international competition 1.2.1.4 Competitiveness of enterprises in the market economy i Overview of Competitive capability of enterprises Competitiveness of a business, is a combination of many different factors , or tactics Combined are the factors of "material and intellectual" These two elements are initially of equal value But in the development of competition, "intelligence" has a superior value However, the author of this thesis thinks that the intellectual factor does not have a "universal" measure, so a visual comparison of "material" capacity will be a method of comparing and evaluating the Competitive capability of this thesis ii Some basic criteria to assess enterprise competitiveness - Financial capacity international business function, being a good partner of many commercial banks in the world 2.1.2 Organizing committee - International transaction name JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM 2.1.3 Functions and duties Tasks and functions of VCB's components are designed according to the model of advanced commercial banks in the region and the World Components in the organizational structure, approved by the State Bank of Vietnam , become the organizational structure today Duties and functions of the parts are clearly defined Including: i General Meeting of Shareholders; ii Board of Directors (BOD); iii.Banning board Besides general organizational models mentioned above, vertical, VCB organized civil apparatus model management reasons at the basis of main and each detailed branch This organizational model, has been standardized by VCB 2.2 BUSINESS SITUATION OF VCB PERIOD 2014 - 2018 2.2.1 Credit business Credit operations are divided into: capital mobilization and lending, investment In the period of 2014 - 2018, the business results of VCB's credit business showed: 2.2.1.1 Capital raising operation In the period of 2014 - 2018, the growth rate of VCB's mobilized capital, achieved positive results, according to [B2.3] comparison between years showing the results of capital mobilization of VCB, the years always growing: CREDIT BUSINESS OF VCB PERIOD 2014 - 2018 [ B 3] Unit: VND Billion Year Criteria 2014 2015 2016 2017 2018 Average Capital raised from the 422,204 500,528 600,737 726,734 1,010,511 economy (A + B) Compared to the previous year (%) (A) Capital mobilized from economic organizations Proportion (%) 27.08 18.5 20.02 20.17 195.981 224.731 268.049 328,484 46.42 44.90 12 44.62 20 39.04 19.78 472.919 46.80 45.58 Compared to the previous 23.18 year (%) 14.67 19.28 20.90 (B) Capital mobilized 226.222 275.798 332.688 398.250 from the population Proportion (%) 39.0 17.32 537.592 53.58 55.10 55.38 54.80 53.20 54.42 Compared to the previous 30.66 year (%) 21.91 20.63 19.70 34.90 22.72 Loans outstanding overall (1 + 2) 323,338 387,152 460,808 530,821 Compared to the previous 17.87 year (%) 19.74 19.03 15.10 (1) Outstanding debt of 271.604 308,947 344.684 401.201 financial institution Proportion (%) 616,948 16.20 17.33 478.135 84,00 79.80 74.80 75.60 77.50 83.83 Compared to the previous 14.60 year (%) 13.75 11.57 16.30 19.10 13.88 (2) Outstanding loans to 51.746 natural persons 77,831 116.124 129,520 Proportion (%) 16.00 20.20 25.20 24.40 22.50 16.17 Compared to the previous 38.88 year (%) 50.41 49.20 11.50 7.10 36.23 138,813 (Source: Annual report of VCB in the years 2014 - 2018) 2.2.1.2 Lending service Outstanding loans of VCB in the period of 2014 - 2018, the speed of continuous increase The following year is higher than the previous year The lowest outstanding debt in 2014 - 323 338 billion VND The highest outstanding loans in 2018 - 616,948 billion VND The average growth rate of outstanding loans in the period of 2014 - 2018 reached 17.33% / year In general, capital mobilization and outstanding loans of VCB still grew steadily Demonstrating the competitiveness of this commercial bank has reached a fairly high point, attracting customers, recorded in the Vietnamese market 2.2.1.3 Bad debt 13 BAD DEBT OF VCB FOR THE PERIOD 201 - 2018 [ B 5] Calculation unit: VND billion Year Criteria Bad debt (%) 2014 2015 2016 2017 2018 2.31 1.79 1.46 1.1