Expanding small and medium enterprise loans in transaction office 1 bank for investment and development of vietnam JSC

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN XUÂN QUÂN EXPANDING SMALL AND MEDIUM ENTERPRISE LOANS IN TRANSACTION OFFICE BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC MỞ RỘNG CHO VAY DOANH NGHIỆP VỪA VÀ NHỎ TẠI NGÂN HÀNG TMCP ĐT&PT VIỆT NAM - CN SỞ GIAO DỊCH LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN XUÂN QUÂN EXPANDING SMALL AND MEDIUM ENTERPRISE LOANS IN TRANSACTION OFFICE BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC MỞ RỘNG CHO VAY DOANH NGHIỆP VỪA VÀ NHỎ TẠI NGÂN HÀNG TMCP ĐT&PT VIỆT NAM - CN SỞ GIAO DỊCH Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS NGÔ VI DŨNG HÀ NỘI - 2019 DECLARATION The author declared that all research findings were mainly obtained during his own study and research, which has not been published in any others' research programs Other research results and documents used in this thesis had been allowed by their original authors with given credits He is fully responsible to the Board for thesis defense, the Faculty of Business Administration and the law for the above declaration HANOI, MAY 15 2018 ACKNOWLEDGEMENT The author would like to express his sincere thanks to the enthusiastic and effective guidance and support of Ngo Vi Dung during the process of doing research and completing the thesis The author also expresses his gratitude to all teachers of Faculty of Business Administration, Hanoi National University for their dedication to teaching and transferring knowledge Last but not least, the author would like to express his sincere thanks to the Board of Management and other related departments and branches of Transaction office - Bank for investment and development of Vietnam JSC has facilitated and assisted the author in the process of completing this thesis Hanoi, May 15 2018 Author Nguyen Xuan Quan TABLE OF CONTENT LIST OF ABBREVIATION i LIST OF TABLES ii LIST OF FIGURES iii INTRODUCTION .1 Chapter 1: FUNDAMENTAL ISSUES OF EXPANDING SMALL AND MEDIUM ENTERPRISE LOANS .6 1.1 Overview of commercial bank .6 1.1.1 Overview of commercial bank .6 1.1.2 Basic activities of a commercial bank 1.2 Overview of small and medium enterprises .11 1.2.1 Small and medium business concept 11 1.2.2 Characteristics of small and medium enterprises 12 1.3 Commercial banks' lending activities for small and medium enterprises 14 1.3.1 The concept of small and medium business loans .14 1.3.2 Forms of lending to small and medium enterprises .15 1.4 Expand lending to small and medium enterprises of commercial banks 17 1.4.1 The concept of lending extension for small and medium enterprises of commercial banks 17 1.4.2 Aims of expanding small and medium enterprise loans 18 1.4.3 The contents of expanding small and medium enterprise loans .19 1.4.4 The criteria reflect the expansion of SME lending in commercial banks 25 1.4.5 Factors affecting the expansion of commercial bank lending to small and medium enterprises 28 Chapter 2: REALITY OF EXPANDING SMALL AND MEDIUM ENTEPRISES LOANS IN BIDV – TRANSACTION OFFICE 32 2.1 Overview of the formation and operation of BIDV – Transaction office .32 2.1.1 Establishment and development of BIDV – Transaction office .32 2.1.2 Business Performance of BIDV - Transaction Office 33 2.2 Reality of expanding SMEs loans in BIDV - TO1 42 2.2.1 General introduction about SMEs - customers of BIDV - TO1 42 2.2.2 Status of SME loan extension at Vietnam Development Bank - Branch of the Transaction Center for the period of 2015 - 2017 45 2.3 Evaluation of SMEs loans TO1 - BIDV 64 2.3.1 Achievements 65 2.3.2 Limitations and reasons .65 Chapter 3: SOLUTIONS TO EXPAND SMALL AND MEDIUM ENTERPRISE LOANS IN TRANSACTION OFFICE - BIDV 71 3.1 Orientation and objective of expanding lending to small and medium enterprises 71 3.1.1 Orientation to expand lending to small and medium enterprises 71 3.1.2 Loan targets for small and medium enterprises 71 3.1.3 Loan targets for small and medium enterprises 72 3.1.3 BIDV's priority business lines for small and medium enterprises 72 3.1.4 General direction in credit relations for small and medium enterprises 74 3.2 A solution to expand lending to small and medium enterprises at Vietnam Development Bank - Branch of Transaction Center 75 3.2.1 Diversification of loan products 75 3.2.2 Develop a flexible interest rate mechanism for small and medium enterprises 75 3.2.3 Proactively search for customers 76 3.2.4 Minimize the procedures and time of lending to small and medium enterprises 77 3.2.5 Promote marketing .77 3.2.6 Modernize banking information 78 3.2.7 Improve the quality of credit officers 80 3.2.8 Continue to control credit quality 81 3.3 Proposal 82 3.3.1 For the Government .82 3.3.2 For the State Bank .83 3.3.3 For Viet Nam Commercial Joint Stock Bank for Investment and Development 84 3.3.4 For small and medium enterprises .85 CONCLUSION 87 REFERENCES 88 APPENDIX LIST OF ABBREVIATION No Abbreviation Full form BIDV Bank for investment and development of Vietnam JSC CB Commercial bank JSC Joint stock commercial PP Pre-tax profit SB State bank SME Small and medium enterprise SP Service product TO Transaction office i LIST OF TABLES Table 1.1: Criteria to determine small and medium enterprises .12 Table 2.1: Captal mobilization in the period of between 2015-2017 .34 Table 2.2: Outstanding loans between 2015 and 2017 .36 Table 2.3: Revenues of BIDV - TO1 between 2015-2017 .41 Table 2.4: Classification of SMEs by economic sectors by December 31 2017 43 Table 2.5: Classification of SMEs by economic sectors by December 12 2017 44 Table 2.6: Number of SMEs between 2015-2017 45 Table 2.7: Revenues from lending SMEs between 2015-2017 .47 Table 2.8: Outstanding loans to SMEs by business type between 2015 and 2017 50 Table 2.9: Outstanding loans to SMEs by lending term in 2015-2017 .52 Table 2.10: Reality of SMEs bad debts between 2015-2017 63 Table 2.11: Revenues from SMEs loans 2015-2017 .64 Table 2.12: Customers' feedbacks to improve the product quality 64 ii LIST OF FIGURES Figure 2.1: Capital mobilization in the period of between 2015 and 2017 .35 Figure 2.2: Outstanding loans by currency between 2015-2017 37 Figure 2.3: Outstanding loans by term between 2015-2017 .39 Figure 2.4: Outstanding loans by customers between 2015 and 2017 39 Figure 2.5: Number of customers between 2015 and 2017 46 Figure 2.6: Revenue structure of lending SMEs by customer type between 2015 and 2017 47 Figure 2.7: Revenue structure of lending SMEs by business type between 2015 and 2017 51 Figure 2.8: Outstanding loans to SMEs by lending term in 2015-2017 53 Figure 2.9: Customer satisfaction about service products 55 Figure 2.10: Customer's feedbacks about interest rate and loan service fees 56 Figure 2.11: Customer satisfaction about service fee .57 Figure 2.12: Customer's feedbacks about distribution system 57 Figure 2.13: Customers' feedbacks about interaction between customers and bankers during transaction activities 58 Figure 2.14: Customers' satisfaction level of media marketing 59 Figure 2.15: Customers' satisfaction in terms of procedure, duration and process of borrowing 62 Figure 2.16: Customers' feedbacks about process and procedure of borrowing 63 iii modern science and technology to banks is practical and necessary for all banks Being aware of the role of applying modern technology to the bank as well as the demands of the economy, the branch office of Transaction always innovates modern technology equipment to ensure and raise High competitiveness among banks in the area In recent years, Branch has gradually paid attention, bringing modern banking technology into operation The important role of information in banking credit is undeniable Good information, especially information about the business will create conditions for Branch transaction center to expand lending effectively This is the solution that Branch Exchange needs to pay particular attention to in an environment where information becomes the resource and resource of the economy Branch should build and well organize the information system, including credit information, customer information and information on economics, legal information and market information at the application level High technology allows for fast and accurate information gathering and processing, ensuring accurate and up-to-date information The SME information system is aggregated as an internal data base and is being rolled out to the BIDV system For the convenience and efficiency of updating and consulting the information, the branch of the Transaction Office should build an internal website of its own or integrate it into the current internal website of BIDV Through this, the Branch will capture aggregate information on the different needs of consumers as well as feedback, feedback from consumers on the advantages and disadvantages of this activity, and compare under the eyes of customers with products of competitors It is this aggregation of information that will serve as a foundation for the branch to map out the right strategy to expand lending to SMEs Branch should be equipped with sufficient means to collect information for customer relations officers, ensuring that each employee has a computer connected to the Internet to search information about customers and markets Branch should fully participate in the credit information system of the State Bank of Vietnam as a member; strictly abide by the current regulations and 79 regulations on credit information issued by the State Bank The Exchange should actively exchange information with other branches and credit institutions, with the State Bank of Vietnam and other relevant organizations to promptly capture the information of customers In addition, the branch should invest more in its facilities by the psychology of customers always prefer to the branches of large banks, have spacious, modern and convenient facilities for guests You will feel more secure At the same time, the Branch also needs to study and investigate the competition situation in the field of SME lending by other banks in the area At present, the banking system is proceeding and orienting the development of lending to SMEs Branch should conduct research, investigate and analyze the advantages and disadvantages of lending activities with existing SMEs in banks, compare and draw experience for their banks to build a lending policy 3.2.7 Improve the quality of credit officers In every field, the human factor plays a very important role Man is the subject of all actions The successful expansion of loans is largely due to human capital Therefore, the improvement of staff qualifications is always and always a necessity of the branch of Transaction Center in particular and the whole BIDV system in general In order to improve the level of banking staff, it is necessary to have a specific plan on recruiting and training staff for each period to meet the requirements of work in both quantity and quality, paying special attention to the level professional and professional ethics of credit officers Credit officers must be familiar with the reading and preparation of financial statements, accounting in the enterprise From there, it is possible to analyze, evaluate and make accurate decisions Credit officers also need to understand the meaning and disadvantages of each indicator, explaining the results of these indicators against the target set by the bank At the same time, it can be based on the value of the indicators to see the strengths, weaknesses of the business and the unreasonable data if any In addition to improving professional qualifications, it is necessary to raise the professional ethics of the staff of credit Credit officers need to be aware of the 80 importance of the work, have thorough adherence to the analytical procedures, and be accountable for the safety of the loan Credit officers must have good ethics in the industry, be honest, fair and dedicated to their work As such, in addition to regular education, banks must ensure adequate income for employees If so, then they can be assured of work and not be bad customers buy, pull In addition, the bank must apply fair and strict punishment regime Based on the results of the credit officer's review and assessment, the bank applies a reasonable penalty and penalty policy aimed at linking credit officers' liability to loan growth and network expansion The cause of bad debts is mostly from customers but also due to many mistakes of credit officers Evaluation capacity of some credit officers is limited, lack of updating leading to inaccurate decision making Therefore, the first urgency is that the bank needs to re-standardize its staff: sending people to study, encouraging credit officers to improve their professional skills, acquire new knowledge most for the job At the same time, it is necessary to re-system the old documents so that the cadres can firmly grasp and concentrate on theoretical training and dissemination of the Party's and State's and branches' policies and policies to each cadre 3.2.8 Continue to control credit quality At present, the quality of SME credit for Branch is quite good However, it is not the case that Transaction Office may neglect the management and control of credit risk, as credit quality is a direct indicator of the effectiveness of loan expansion In order to limit credit risk, Branch should continue to implement the following measures: - Compliance with credit procedures as required by BIDV Transaction Office branches must regularly inspect and supervise the observance of the lending process and regulations so as to ensure that the lending is carried out strictly according to the order and competence - Continue to improve the quality of customer appraisals and loans to select 81 good customers and forecast risks - Strictly carry out the inspection and control after lending, periodically check the purpose of loan utilization and re-evaluate the effectiveness of the borrowing plan risk occurs - Regularly assess and credit customers and update information on customers, markets and industries to forecast and control risks, and on the basis of that, advise clients to increase their exposure Business results, guarantee loan repayment Branch Office 3.3 Proposal 3.3.1 For the Government - The Government should quickly complete the legal framework and create a safe and effective legal corridor for the operation of SMEs Legal documents, policies should be consistent, reasonable, and equal for all types of enterprises Thus, the new SMEs are operating peacefully; investors and banks are reassuring to finance enterprises to expand production and business, contributing to economic development Especially in terms of the legal environment for commercial banks' credit activities for SMEs, the State should issue, guide and amend relevant legal documents, especially documents related to collateral matters The provisions on the certificate of ownership of assets and land use rights should be quickly amended to be consistent, enabling SMEs to borrow more easily to complete the necessary procedures - It is necessary to encourage the establishment of organizations, centers of consultancy, promotion and support for SMEs These organizations play an important role in providing consultancy and assistance to SMEs on market information, pricing, investment, planning, production and business projects, legal documents, etc The government should have supportive policies to facilitate these organizations to help SMEs achieve more effective - The Government should strengthen the provision of information and financial services to SMEs; Expanding the list of services, diversifying services and methods of providing accounting services, auditing financial consultancy services 82 and financial report review services for SMEs without internal audit apparatus and limited financial capacity can not be rented audited financial statements - Establish financial leasing companies to serve SMEs These will be medium and long term funding sources for SMEs that are both safe and suited to SMEs' resource capacities This model has been successfully applied by many countries - Recently, programs of assistance to small and medium enterprises of foreign organizations such as ADB, EU, UNDP, WB have proved quite effective Therefore, in the coming years, the Government should continue to expand external relations to strengthen and enlist non-refundable aid programs and projects in support and development of small and medium enterprises 3.3.2 For the State Bank SME development under the guideline of the Party and State is also a task for the banking system Therefore, facilitating the development of SMEs is essential However, to date, lending to SMEs has not yet had a specific regulation, so banks are having difficulty granting loans to these businesses It is suggested that the SBV should have a specific regulation guiding and directing the implementation of credit granting to SMEs to help banks to promote SME loans but still ensure capital adequacy The SBV should issue specific regulations on collateral as well as separate lending mechanisms for SMEs in line with the advocacy and development and the role of this type of business in the economy It is advisable to issue circulars guiding commercial banks on priority policies for SMEs With the function of State management in the banking sector, the State Bank shall have to complete the credit information system, especially the quality of credit information, in order to improve the general credit market Bank The State Bank of Vietnam (SBV) now has a Credit Information Center (CIC) The objective of CIC is to help credit institutions to prevent and minimize risk in business, contributing to building a sustainable development banking system This center operates by asking the commercial banks to report the customer situation and loan, thereby processing and aggregating into the common database to meet the commercial banks when they have a need 83 With the function of State management in the banking sector, the State Bank shall be responsible for the improvement of the credit information system, especially the quality of credit information, in order to strengthen the credit market in general 3.3.3 For Viet Nam Commercial Joint Stock Bank for Investment and Development In order to support the branch of Transaction Center to well target the expansion of lending to SMEs, it is recommended that the Vietnam Joint Stock Commercial Bank for Investment and Development undertakes the following measures: - It is necessary to promulgate a consistent customer policy for small and medium enterprises in order to unify the way BIDV behaves in developing relations with these businesses and to develop a SME client portfolio of high quality, using a variety of utilities of BIDV The customer policy must specify the loan amount, interest rate, loan security corresponding to each client group and the characteristics of small and medium enterprises In the process of guiding the branches, BIDV must summarize, evaluate and draw up the experience and modify the customer policy to be suitable with reality - To adjust some indicators in the internal credit rating system to suit the characteristics of SMEs At present, BIDV's customer policy is based on the rating of customers in the internal credit rating system, so the ranking results are very important when applying the credit policy Under the BIDV system, customers are classified into groups: large, medium and small, and applied different weighting systems when calculating targets However, the weighting system applied to medium or small customers is not really suitable, while the focus is on financial indicators and assets without proper evaluation of performance indicators (joint revenue, profitability) and business prospects Consequently, it is recommended that the Vietnam Development Bank for Investment and Development adjust the internal credit rating system for SMEs in the direction of reducing the proportion of financial indicators and assets; Increased proportion in the assessment of operating indicators (revenue, inventory management, receivables, reputation and operating time at BIDV) and prospects of customers 84 - Regarding credit procedures, BIDV needs to shorten unnecessary Stages and Stages when granting credit to SMEs in order to minimize waiting time for loan approval and timely response to customers' demands There is a need to increase the number of branch support activities when financially supporting SMEs, namely Public Relation Department, Product Development Division, to coordinate the program of promoting products and credit policies of BIDV to small and medium enterprise customers throughout the system At the same time, it is necessary to develop a credit support program for each sector - BIDV should have written guidelines for branches to deploy leasing products (hire purchase finance), this product is suitable for SMEs, can consider apply for enterprises not enough assets under the guarantee regulations of BIDV 3.3.4 For small and medium enterprises Besides the solutions and support mechanisms from the bank for the business in a positive way, it is important, mainly the efforts from the business itself One very inadequate fact is that businesses lack capital while banks are overcapitalizing lending, not the banks not want to lend to businesses that banks are afraid that businesses cannot afford to pay Therefore, in order to clear the barriers to credit relations between banks and enterprises, the SMEs themselves must pay attention to the following issues: - Must have a solution to create own capital At present, the capital structure of many enterprises is not reasonable, proportion of external borrowing from banks in total business capital of enterprises This leads to: Enterprises are too dependent on bank capital, can get loans from banks, they can not get bank loans Increasing own capital not only helps businesses to operate more stable but also creates conditions for enterprises to access larger credits from the Bank - Enterprises must build a feasible and feasible business plan The feasible plan is the decisive factor for bank lending Therefore, businesses need to be able to effectively and convincingly To this end, businesses need to improve their ability to set up projects because many businesses have good 85 opportunities, ideas but no projects Enterprises also need to actively study the market, business environment; possible risks to facilitate the use of bank loans are safe and effective - Renovation and modernization of technological equipment Due to limited size and financial resources, SMEs are not in the immediate need of modern technology but have to choose suitable technology, starting from the market demand for products to select technology However, in the course of use, technical improvements need to be made to improve capacity in existing technology Enterprises need a technology innovation program to increase labor productivity, save costs, improve product quality In particular, the quality management system will be applied in accordance with international quality standards In addition to improving technical technology, it is necessary to train and improve the skills of workers to keep up with the modernity of machines, improve the efficiency of using machines and limit the waste of resources 86 CONCLUSION It can be said that the development of SMEs has been and will occupy an important position, contributing to the growth and sustainable development of all countries; being one of the basic indicators to assess the development of that country The expansion of SME lending is one of the urgent requirements in today's competitive environment Through theoretical studies and practical surveys of SME lending activities at BIDV – Transaction office 1, the thesis presented a number of key solutions and recommendations in the hope of solving some problems related to expanding lending to SMEs at BIDV - Transaction Office The thesis has completed the following specific tasks: First: Systematize the basic theories of SME loan extension in commercial banks The thesis also outlines the factors that influence the expansion of SME lending by commercial banks Second: Analyze the current status of SME loan extension in BIDV Branch Transaction Center From there, draw out the problems that need to be addressed and the causes that affect the open work BIDV's Small Business Loans - Branches of Transaction Center Third: The thesis proposes some solutions and recommendations to expand SME lending activities at BIDV - Branches of transaction offices The solutions are scientific and feasible for the expansion of SME lending in BIDV - Branch Office Due to the wide and complex research topic, the author cannot avoid some limitations that lead to some defectives The author wishes to receive many comments from scientists, teachers, administrators, colleagues and readers interested in this field so that the thesis is further improved 87 REFERENCES Nguyen Thi Bac (2013), Some solutions to expand and improve the quality of credit for small and medium enterprises at Vietinbank, Master thesis, Academy of banking Overall report of annual business operation in 2015, 2016, 2017 of BIDV - TO1 Government (2018), Decree No 39/2018 / ND-CP detailing a number of articles of the Law on Support to Small and Medium Enterprises,Hanoi Government (2016), Decree No 39/2018 / ND-CP details some of the Government's Resolution No 35 / NQ-CP dated 16 May 2016 on business support and development to 2020 , Hanoi Phan Thi Thu Ha (2013), Curriculum of commercial banks , National Economics University Publishing House, Hanoi Tran Cong Ly (2015), Solution for SME loans extension at Lien Viet Post Commercial Joint Stock Bank - Dung Quat Branch, Master thesis, University of Finance - Marketing Nguyen Thi Mui, Tran Canh Toan (2011), Administration textbook Commercial bank, publisher of finance, Hanoi BIDV (2004), Decision No 203 / QD-HDQT promulgating regulations on lending to customers, Hanoi BIDV (2005), Credit manual, Hanoi 10 BIDV (2009), Credit procedure to organization clients, Hanoi 11 BIDV (2008), System of ordering internal credit, Hanoi 12 State Bank (2001), Decision No 1627 / QD-NHNN on the Regulation on lending to customers, Hanoi 13 State Bank of Vietnam (2005), Decision 493/2005 / QD-NHNN on the promulgation of regulations on loan classification, provisioning and use of provisions Credit risk in banking activities of credit institutions, Hanoi 14 Cao Thị Ý Nhi, Đặng Anh Tuấn (2016), Finance and currency theory textbook, NEU publisher, Hanoi 15 Hoàng Thị Kim Oanh (2012), Solutions to expand SMEs loans in Da Nang 88 VPBank, Master thesis, University of Da Nang 16 Bùi Mạnh Quang (2015), Credit capital for SMEs in Hanoi, Banking news 17 Congress (2010), Law on Credit Institutions No 47/2010 / QH12 dated 16 June 2010, Hanoi 18 Congress (2013), Law No 32/2013 / QH13 Amending and Supplementing a Number of Articles of the Law on Enterprise Income Tax dated 19 June 2013, Hanoi 19 Congress (2014), Enterprise Law No 68/2014 / QH13 dated 26/11/2014, Hanoi 20 Congress (2014), Law of supporting SMEs no.04/2017/QH14, Hanoi 21 Congress (2017), Law No 17/2017 / QH14 amending and supplementing a number of articles of the Law on Credit Institutions, Hanoi 22 Nguyen Van Tien (2013), Administration of commercial banks, Statistic bank, Hanoi Website: 23 www.bidv.com.vn 24 http://cafef.vn/doanh-nghiep-nho-va-vua-van-khon-kho-vi-von-vay20160711145009073.chn 25 https://daiabank.com.vn/cac-nhan-tac-dong-den-mo-rong-cho-vay-cuangan-hang-thuong-mai/ 26 www.google.com.vn 27 https://vinhnv.com/dac-diem-co-ban-cua-doanh-nghiep-vua-va-nho 28 https://www.vietinbank.vn/vn/tin-tuc/VietinBank-la-doi-tac-tin-cay-cuadoanh-nghiep-vua-va-nho-20180328104341.html 29 http://nganhangbanle.org/uu-dai-cho-vay-doanh-nghiep-vua-va-nho-cungvietcombank.html 30 https://tuoitre.vn/acb-tang-cho-vay-uu-dai-voi-doanh-nghiep-vua-va-nho1372561.htm 89 APPENDIX SURVEY QUESTIONS TO LENDING CUSTOMERS (in related to expand SMEs loans service) Greeting everyone! My name is Nguyen Xuan Quan, postgraduate student of Business administration, Vietnam national university Currently I am doing my master thesis: “Expand Small and medium enterprise loans in Transaction office - BIDV” These survey questions play an important role in my thesis Please kindly support me by finishing these questions These contents are used for reference in researching this topic I pledge that your information will be kept secret, which is only used for research Thank you! Part 1: Information of the company Transaction: ……………………………………………………………………… Address: …………………………………………………………………………… Tel: Fax: E-mail: …………………… Website: Tax code: ………………… Director: F/M: …………………… Branch in other cities (if any): …………………………………………….… Tel: Fax: E-mail: …………………… Registered capital: Business sector: □ Industry □ Real estate □ Commerce, service □ Construction □ Other (if any)…………………………………………………… Let's describe briefly about the company: □ Business □ Joint venture □ Manufacturing □ Import □ Processing □ Export Enterprise form: □ Private enterprise □ Jointstock company □ Joint venture □ State company □ Company with partnerships □ Company with 100% foreign capital □ Jointstock company □ Other(be specific)………………… The operation years of the enterprise: □ Under year □ From to years □ From to years □ From to 10 years □ More than 10 years Number of employees: ………………………………………… Average revenue of the company: …………………………………… The company know about this product via (multi-answers are accepted) □ Other recommend □ Banners, leaflets □ Tivi, radio, internet □ Bankers □ Other □ BIDV's transaction office Reasons to borrow capital in this bank: □ Great demand □ Advertisement □ Other (be specific) 10 The company knows about which bank in Hanoi: □ Agribank □ BIDV □ Vietcombank □ Techcombank □ Sacombank □ Ocenbank □ Vietinbank □ ACB □ MB □ Khác Part 2: Evaluation of SMEs loan service of BIDV Service products Price Distribution system 11 List of service products (compared to other banks) □ Diverse □ Normal □ Limited 12 Service products are designed and modified (compared to other banks) □ Meet demands □ Normal □ Fail to meet demands 13 Interest rate (compared to other banks) □ High □ Normal □ Low 14 Extra cost during using borrowed capital (compared to other banks) □ High □ Normal □ Low 15 Synced design and easy to recognize □ Agree □ Normal □ Disagree 16 Spacious and convenient □ Agree □ Normal □ Disagree 17 Distribution channel and transaction location of BIDV □ Meet demands □ Normal □ Fail to meet demands 18 Approaching customers □ Proactive □ Normal Approaching 19 Customer service via hotline programs □ Meet demands □ Normal □ Passive □ Fail to meet demands Procedure 20 Customers' evaluation about lending process, procedure □ Complicated □ Normal □ Simple 21 Transaction duration □ Fast □ Normal Time 22 Banker qualifications □ Good Employee □ Average □ Bad 23 Contact between bankers with customers □ Frequently □ Normal □ Rarely 24 Complaint solving of bankers □ Satisfied □ Normal 25 Manner, attitude of bankers □ Listening and willing to serve Prestige, brand name □ Slow □ Dissatisfied □ Normal □ Not enthusiastic 26 Prestige of BIDV compared to other banks □ Yes □ No 27 The company think the brank of BIDV □ Very strong □ Normal □ Not strong 28 Evaluate your satisfaction about BIDV's products by these criteria (in order: - Very dissatisfied, - Dissatisfied, - Normal, - Satisfied, - Very satisfied) Level of assessment No Criteria Lending service products      Lending interest      Lending time, process and procedure      Convenience of TO      Marketing activites      29 What you think BIDV needs to to improve and enhance the product quality (multiple answers are accepted) No   Evaluation content Diversify and innovate categories of SP Reduce loan interest  Short term loan implementation  Reduce documents and simplify procedures  Marketing activities Others: …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… Thank you very much for your support! ... small and medium enterprise loans in transaction office of Bank for Investment and Development of Vietnam JSC Chapter 3: Solutions to expand small and medium enterprise loans in transaction office. .. office of Bank for Investment and Development of Vietnam JSC Chapter 1: FUNDAMENTAL ISSUES OF EXPANDING SMALL AND MEDIUM ENTERPRISE LOANS 1. 1 Overview of commercial bank 1. 1 .1 Overview of commercial... lending activities for small and medium enterprises 14 1. 3 .1 The concept of small and medium business loans .14 1. 3.2 Forms of lending to small and medium enterprises .15 1. 4 Expand