Solutions to improve the competitiveness of bank for investment and development of vietnam so giao dich 1 branch

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - TRẦN THANH BÌNH SOLUTIONS TO IMPROVE THE COMPETITIVENESS OF BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - SO GIAO DICH BRANCH GIẢI PHÁP NÂNG CAO NĂNG LỰC CẠNH TRANH CỦA NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM - CHI NHÁNH SỞ GIAO DỊCH LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2020 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - TRẦN THANH BÌNH SOLUTIONS TO IMPROVE THE COMPETITIVENESS OF BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - SO GIAO DICH BRANCH GIẢI PHÁP NÂNG CAO NĂNG LỰC CẠNH TRANH CỦA NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM - CHI NHÁNH SỞ GIAO DỊCH Chuyên ngành: Quản trị kinh doanh Mã số: 8340101.01 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS HOÀNG ANH TUẤN HÀ NỘI - 2020 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration Date………………………… i TABLE OF CONTENTS DECLARATION i PREFACE INTRODUCTION .3 CHAPTER 1: THEORY OF COMPETITIVENESS OF COMMERCIAL BANKS 1.1 The concept of competitiveness 1.2 Factors affecting competitiveness: 1.2.1 Macro environment 1.2.2 Industry Environment (Michael Porter’s Five forces model) 1.2.3 Enterprise (bank) 12 1.3 Competitive evaluation criteria .16 1.3.1 Criteria for evaluating the competitiveness of enterprises in general 17 1.3.2 Criteria for avaluating the competitiveness of banks in particular 18 1.4 Lessons from improving the competitiveness of banks in the world .24 1.4.1 Lessons from the world financial crisis in 2007 – 2008 24 1.4.2 Lessons from developing and improving the competitiveness of world banks in the current period 26 CHAPTER 2: CURRENT SITUATION OF COMPETITIVE CAPACITY AT BIDV SO GIAO DICH BANCH 29 2.1 Overview of BIDV So giao dich Branch 29 2.1.1 The process of formation and development 29 2.1.2 Orgnization Structure 30 2.1.3 Business results in recent years of So giao dich Branch 31 2.2 Assessment of competitiveness of BIDV So giao dich Branch 36 2.2.1 Assessment of external factors affecting the competitiveness of BIDV So giao dich Branch 36 2.2.2 Assessment of competitiveness of BIDV So giao dich Branch .42 CHAPTER 3: SOLUTIONS TO IMPROVE COMPETITIVENESS OF BIDV SO GIAO DICH BRANCH 61 ii 3.1 Trends and forecasts for the banking market in the coming years 61 3.2 Orientation and strategic vision of BIDV 66 3.2.1 Orientation and strategic vision of the entire BIDV system .66 3.2.2 Objectives and orientation of So giao dich Branch 67 3.3 Solutions: 68 3.3.1 Overall solutions to improve competitiveness 68 3.3.2 Main solutions: 72 3.4 Recommendations to the State Bank of Vietnam and Head Office of BIDV 84 3.4.1 Recommendations to the State Bank of Vietnam 84 3.4.2 Recommendations to the Head Office of BIDV .85 CONCLUSION 87 REFERENCE LIST 88 APPENDIX QUESTIONNAIRE IN ENGLISH 89 iii PREFACE In a market economy, competition is an indispensable rule to survive and develop The trend of international integration and globalization is taking place strongly and deeply, along with the continuous development of science and technology with the industrial revolution 4.0 affecting all political and economic fields social life Besides providing opportunities for developing economies like Vietnam to integrate into the world economy, thereby speeding up economic growth and technological innovation, Globalization also presents many great challenges, especially the risk of further economic lag due to limited competitiveness In recent years, Vietnam's banking industry has been developing rapidly, gradually moving deeper into the process of international integration Vietnam's participation in the World Trade Organization (WTO), the signing of free trade agreements, especially the Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP), opens up many opportunities and brings many risks and challenges The competition between banks becomes extremely fierce, not only competition among local banks but also between domestic banks and foreign banks with strong financial potential, technology, management level In the past, a series of famous banks, but with weak operations and unprofitable businesses, were forced to merge or restructure: In 2012: Hanoi Building Joint Stock Commercial Bank (Habubank) lost VND 1,715 billion and was merged into Saigon - Hanoi Bank (SHB) In 2013: Dai A Bank has a small capital scale, low business efficiency, and merged with HDBank to increase its scale and operational capacity In 2015: Mekong Delta Housing Development Commercial Joint Stock Bank (MHB) saw a loss of VND 476 billion, incurring a bad debt of up to thousands of billion VND, so it was merged into the Bank for Investment and Development of Vietnam ( BIDV); Southern Bank with a bad debt ratio of 55.31% was also forced to merge into Sacombank Therefore, improving competitiveness is an urgent requirement for banks to exist, stand firm and develop, and affirm their position in the region and the world Improving competitiveness is a vital factor not only for small-sized commercial banks but also for large state-owned commercial banks such as BIDV, Vietcombank, Vietinbank in the context of international integration with the appearance of a series of foreign banks with financial capacity, high management level, modern technology, and experience At Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), So giao dich Branch is the leading branch, leading the whole BIDV system Therefore, improving the competitiveness of BIDV So giao dich Branch in the context of the current market is extremely urgent, is the basis for pioneering, is a model for BIDV branches to apply, thereby improving improve the overall competitiveness of the whole BIDV system INTRODUCTION The necessary of the thesis: In a market economy, competition is an indispensable rule for survival and development The trend of international integration and globalization is taking place strongly and extensively, it is necessary for Vietnamese banks to meet the capacity to stand firm and compete with foreign banks In recent years, the Vietnamese banking industry has developed rapidly, step by step moved deeper into the international integration process Vietnam's participation in the World Trade Organization WTO, signing free trade agreements, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership CPTPP opens up many opportunities and brings many risks and challenges The competition among banks has become extremely fierce, not only competition among domestic banks but also competition between domestic banks and foreign banks with strong financial potential technology, management qualifications Over the past time, a series of well-known banks with poor performance and loss-making business have been forced to merge and restructure Therefore, enhancing competitiveness is an urgent requirement for banks to survive, stand firm and develop, and assert their position in the region and internationally Improving competitiveness is vital not only for small-scale commercial banks but also for large state-dominated commercial banks such as BIDV, Vietcombank, Vietinbank in the context of international integration with the emergence of a series of foreign banks with financial capacity, high management skills, modern technology, extensive experience Bank for Investment and Development of Vietnam (BIDV) – So giao dich Branch is a key branch, leading the whole BIDV system Therefore, improving the competitiveness of BIDV So giao dich Branch in the context of the current market is extremely urgent, is the basis for pioneering, is a model for BIDV branches to apply, thereby improving the overall competitiveness of the whole BIDV system Overview of research situation There are many articles and studies on the competitiveness of the banking industry, commercial banks in general However, these articles only research and offer general solutions The introduction of solutions to improve competitiveness for each specific bank is different, depending on external factors as well as internal factors and characteristics of each bank This topic will assess the actual competitiveness of BIDV So giao dich Branch, thereby offering specific, feasible solutions to be applied in practice at BIDV So giao dich Branch Research objectives: Collecting, evaluating and proposing competitiveness of BIDV So giao dich Branch solutions to improve the Research subjects - Experience in improving the competitiveness of domestic and foreign banks - Assess the competitiveness of BIDV So giao dich Branch in a comprehensive and profound manner on all operational aspects - Analysis of factors affecting the competitiveness of BIDV So giao dich Branch Scope of research: Research on competitiveness, offer solutions to improve competitiveness at BIDV Exchange in the period from now until 2025 Research method: Methods of statistical analysis Methods of general analysis Structure of thesis In addition to the introduction, conclusion, references, appendixes; the content of the dissertation is divided into three chapters: - Chapter 1: THEORY OF COMPETITIVENESS OF COMMERCIAL BANKS - Chapter 2: CURRENT SITUATION OF COMPETITIVE CAPACITY AT BIDV SO GIAO DICH BANCH - Chapter 3: SOLUTIONS TO IMPROVE COMPETITIVENESS OF BIDV SO GIAO DICH BRANCH CHAPTER 1: THEORY OF COMPETITIVENESS OF COMMERCIAL BANKS 1.1 The concept of competitiveness Economic competition is a competition between economic actors in order to have advantages in production and consumption and through which maximum benefits can be obtained In the market economy, competition can take place between actors within the industry, and can also take place between actors of different industries (According to Marxist-Leninist Political Economy - Associate Professor Dr Ngo Tuan Nghia Chairman of the Compilation Council in 2019) Terms of competition: Competition: According to economist Michael Porter, competition (economy) is gaining market share The essence of competition is to seek profit, which is higher than the average profit that the business has The result of the competition process is the equilibrium of profits in the industry in the direction of deep improvement leading to lower price consequences From a commercial perspective, competition is a battle between businesses and businesses to gain customer acceptance and loyalty Competitive advantage: Competitive advantage is the possession of specific values that can be used to seize opportunities and make profitable business When it comes to competitive advantage, it refers to the advantages that a business (micro level), a country (macro level) have and can have, compared to their competitors There is also the term sustainable competitive advantage, which means that the business must continually provide the market with a special value that no competitor can provide (According to Competitive Advantage - Michael Porter) According to Baumol, Panzar and Willig (1982), a firm's competition is assumed to include not only all its current competitors but also potential competitors ready to enter the industry one day Future Therefore, an enterprise that pay electricity and water bills ; Loans to buy cars for enterprises' operations; Derivative credit + Trade finance products: Open import L / C for enterprises purchasing raw materials from abroad; Discount of export documents; + Other services: issuing payment guarantee, buying and selling foreign currencies, e-banking service ibank For example, for an individual customer who needs a home loan with an amount of VND billion with a preferential interest rate The bank currently has a preferential loan program to buy a house with different interest rate options: Option 1: the first year lending rate is fixed at 7.5% / year, the next year the floating lending rate will be adjusted every months, equal to the 12-month residential savings interest rate + margin 4.0% / year (currently about 10.9% / year) Option 2: The first 2-year loan interest rate is fixed at 8.5%, the interest rate for the following years will be adjusted every months, equal to the 12-month residential savings interest rate + margin 4.0% / year The customer relations officer should advise the client on which option is the most optimal of the two above plans: - If the customer only has a temporary shortage of money and needs a loan in a short time, he can repay the loan in advance: option is optimal because in year, the customer enjoys a low interest rate of 7.5% / year - If the customer has a long-term loan and periodical loan repayment demand: option is optimal because the customer is entitled to an interest rate incentive of 8.5% in the first years, while if according to plan 1, the first year interest rate is 7.5 % / year, but from the second year, customers have to bear interest rates of about 10.9% / year Some other specific solutions to develop and make a difference to the current products and services of So giao dich Branch are as follows:  Credit product: - Focus on implementing credit products of special nature, which are considered the strength of the So giao dich Branch, but few banks have 76 experience: co-financing (syndication) for major projects in the field of oil and gas exploitation and processing, construction of telecommunications infrastructure ; investment projects for hydroelectric plants, thermal power plants, ; large-scale real estate complex investment projects; traffic project investment projects…; lending to contractors in the construction and installation sector For retail credit: promoting lending to support housing needs, lending for production and business, loans to buy cars, loans to study abroad , proof of finance Apply preferential credit packages in terms of interest rates, loan terms, loan terms and associated utilities - Promote consulting and deploying to customers new and modern products: derivative credit, cross-currency swap (CCS), commodity derivative These are modern products that many banks However, it is not popular in Vietnam yet In order to deploy to customers, it is necessary to have advice on introducing, analyzing the advantages and benefits brought by the product to customers so that customers can choose to use products and services  Deposit mobilization product - Deploying deposit products suitable for each customer type: specific products for some customers with large deposits such as securities companies, insurance companies - Optimizing customers' finance by consulting and implementing cash flow management services for customers  Other services: promoting the deployment of products focusing on the main areas of the branch: trade finance products, foreign currency transactions for textile and garment industries, machine components calculation, production of plastic resins, petrol and oil temporarily imported for re-export In addition, the Branch needs to take advantage of the BIDV system when BIDV has strengths in three areas: banking, securities, and insurance (BIDV has its own securities company and insurance company) to provide products and services in a closed way for customers, thereby increasing BIDV's competitiveness in the market 77 c) Promote marketing and customer care, develop customer policies, and competitive pricing policies To be able to develop customer base, including maintaining relationships with existing customers and expanding exploitation of these customers, at the same time looking to develop new customers, So giao dich Branch needs have appropriate marketing and customer care policies as well as apply customer policies and competitive pricing policies towards customers  Marketing and customer care The branch needs to build a customer care policy in the direction of creating a close relationship with customers, thereby creating customer loyalty with the bank In fact, at the So giao dich Branch, a lot of corporate customers, when they were newly established or when operating on a small scale, only had transaction relationships, borrowed capital at the Branch, however, when the customers issued Development and expansion, with good financial status, business performance, reputation in the market, many other banks have attracted customers by applying many preferential policies such as preferential rates collateral even for loans without collateral, preferential lending rates In order to keep good customers and have potential to bring great benefits to the Branch, the Branch needs establish a close relationship from leaders to levels of direct staff (finance and accounting department, investment department of the business) between the two units through regular handover exchanging information, organizing exchange sessions, participating in events to celebrate the founding anniversary, giving gifts on holidays, New Year, birthdays This also helps the bank to grasp c information, business plans, investment projects of the business in a timely manner to have a plan to access credit, products and services to customers Customer care needs to be done in a consistent manner, with a separate policy with strategic customers Promote high-level relationships to deeply exploit with customers such as corporations, corporations, large private companies: Oil and Gas Group, Coal and Mineral Group, Petroleum Group, Textile Group Garment, Industry - Telecommunication Group Vietel Army… 78 Paying brokerage commissions for decision makers, who introduce customers to use products and services, visit, give gifts to customers on holidays, birthdays For customers with close relationships: Building Business Club Groups / SME Club, Private Customer Club when joining the Club, members will enjoy special financial incentives: interest rates, interest rates deposit, preferential fees, priority to shorten transaction time, to announce new products as soon as the product is launched, organize business matching seminars for members For individual customers, care should be done professionally and regularly: visiting and giving gifts to customers on holidays, birthdays, special occasions, organizing promotions and offers for customers In the current fierce competition in the retail sector, building close relationships and sharing with customers is the basis to retain customers In addition to taking care of old customers, the Branch needs to promote marketing to develop new customers, especially customers in priority areas of the Government: export production, processing industry, fabrication and construction of traffic floors, hi-tech parks, hi-tech agriculture, schools, hospitals , areas where Hanoi has strengths: textiles, footwear, electrical components customer development, FDI customer development (FDI enterprises) through customer development channels as follows: - Exploiting through existing customers: This is one of the most effective channels to find new customers through accessing input, output and customer partners of enterprises that are having relationships at BIDV Exploitation method: Review the satellite customer list (input, output) of existing customers, at the same time ask these customers to introduce, build relationships to implement marketing and providing products and services to satellite businesses - Adhere to the economic development, industrial development and investment promotion policies of Hanoi City, grasp development orientations, key industries, key products, and preferential policy mechanisms, distribution plans of industrial parks, industrial clusters, investment promotion 79 projects/programs of Hanoi City to anticipate, access and consider to provide products and service - Focus on building relationships with local authorities Focus on developing new customers through channels: creating relationships with the Department of Industry and Trade, the Business Association, the Association of SMEs, the Women's Entrepreneur Association - Participate in the banking - business connection program (especially FDI enterprises, SMEs) Closely coordinate with local authorities to promptly grasp information, remove difficulties and problems for businesses in credit relations by directly communicating and quickly resolving their borrowing needs Enterprises can access loans with reasonable interest rates, reduce capital difficulties and interest costs to help businesses - Through the relationship of the Branch's leaders and staff, going to the market to reach customers, take care of and exploit from the small links in the customer's business chain - Organize customer outreach sessions for employees: Establish new customer development groups that are responsible for collecting market information, collecting information about businesses, and organizing promotional meetings, introducing products and preferential policies for customers; - Participate in trade and investment promotion seminars and exhibitions in the locality as well as in neighboring areas Set up consulting desks, hand out leaflets, give advice to customers directly to reach customers who are supporting industries; - Coordinate with the Head Office to communicate through Internet channels, Local Newspapers, Advertising Pano… to introduce products being implemented on BIDV system; - Coordinate related units and organizations (retailers, companies providing electricity, water and sanitation services) to research and deploy to collect information about customers, focus promote the association of Bank Service Providers - customers Research to deploy information and services 80 to widely provide users, consumers, and linkages between banks, retailers, public service providers and users  Develop customer policy, competitive pricing policy: Branches need to perform customer segmentation according to each product line; segmentation according to the level of customer benefits; according to the prestige capacity of each customer to have a customer policy, price policy, fee and separate mechanism suitable for each customer In terms of depth, the Branch needs to maximize the benefits brought by existing customers Conduct a review of each existing customer relationship: relationship level, credit size, capital mobilization, credit income, capital mobilization, net service revenues, total benefits again, the business performance, the financial situation of the customer, check the CIC information on the credit relationship at other banks to assess the ability to exploit customers, consider increasing credit use, raise capital, products and services for customers On that basis, building business and exploitation plans for each customer: reducing lending interest rates (accepting reducing credit NIMs) to encourage customers to transfer outstanding loans from other banks, thereby increasing remittance turnover, increase the scale of capital mobilization, reduce service fees to attract customers to increase the use of BIDV's products and services The reduction of interest rates, lower fees, preferential foreign currency points must ensure increasing scale, thereby increasing the total benefits from customers, increasing profits for the branch The policy of fees and prices applied to customers should be built on the basis of all banking products and services, with flexibility to ensure competition with other banks, and can accept a reduction Interest rates on customer loans to attract customers to use other products and services at the Branch, thereby the total profit earned from customers is still increased For example: an enterprise customer who is taking a 6-month short-term loan with the interest rate of 8% / year Customers request the Branch to reduce the interest rate to 7% / year In this case, if the branch does not reduce interest rates for customers, it will not be able to compete with other banks, customers will gradually 81 reduce the outstanding loans at the branch, leading to a decline in profits The branch will reduce interest rates for customers so that customers can focus on increasing the outstanding loans at the branch, and at the same time requires customers to use other BIDV's other products and services, thus total profit of customers The amount brought to the branch is then much higher than the profit lost due to the lower interest rates Therefore, branches need to have a flexible policy on interest rates, fees, and prices in order to maximize benefits from customers d) Promote the application of modern technology in the provision of products and services As the largest major branch of the entire BIDV system, So giao dich Branch has always been at the forefront in the deployment of new banking products and services, in the era of the 4.0 technology revolution Strongly, in order to increase competitiveness with other banks, the Branch needs to promote the provision of high-tech products and services as well as the application of technologies in data management and information management information, handling operations for customers Currently, along with the trend of digital banking taking place around the world, BIDV has identified the application of digital technology in banking operations as a development strategy BIDV Ibank's electronic banking product for institutional customers of BIDV was launched with many outstanding features The product is designed with multiple features, with a modern interface, supporting user experience via the internet and mobile devices, and at the same time allowing transaction processing by many mechanisms and targeting customers with the ability to connect directly with the internal accounting system to push payment orders to BIDV without writing orders directly at the program With BIDV iBank, customers can perform transactions with the bank such as: Inquiry of deposit accounts, loans, guarantees; Conduct domestic and international money transfer and salary payment; Sending documents containing digital signatures through the program for the bank to execute with the same legal value as the original document; 82 Information inquiry for merchants Clients will also effectively manage cash flow between parent-child accounts; View transaction statistics report, check transaction status by time and time period; To be provided with cash flow management reports of members of the Group / Corporation The branch should promote the implementation of BIDV Ibank to all institutional customers of the branch including corporate customers, financial institutions and other institutional customers with regular transaction relationships at the branch by organizing a meeting at customers to introduce the product, sending staff directly to guide at the customer's office In addition, on the basis of the needs of each specific customer, with large customers with specific activities, with the potential to exploit modern products and services, in coordination with BIDV Head Office, based on the technology platform of BIDV to design suitable products and services for customers For example, a cash flow management service for a client is an insurance company with many branches Expansion of ATM network; POS machine Researching and installing ATMs in densely populated central locations such as apartment buildings, commercial centers, resorts, resorts Promote the marketing and installation of POS for direct cash sales customers or retail customers, focusing on customers with the potential to bring large payment sales such as customer chains hotels, restaurants, hospitals, schools, shops e) Improve brand Today, the brand is an intangible asset with very important value, directly affecting the customers' decision to use products and services With the advantage of being the largest branch of one of the four state-owned commercial banks (Big Four), Exchange needs to take advantage of this advantage to develop and create its brand name and reputation in the banking market the whole country as well as Hanoi Some solutions to improve brand awareness, improve the position of So giao dich Branch: 83 - Participate in funding for key national projects, projects related to socioeconomic infrastructure of the State - Implement comprehensive cooperation including: providing short-term credit, project investment credit, providing full banking services to largescale, well-known enterprises and organizations - Communication of major events of the Branch on newspapers, social networks : anniversary of establishment, events of signing large value credit contracts with partners, investor sponsorship and home buyers in real estate investment projects - Hanging bandrolls, advertisements on the streets of the central area around operating areas in Hoan Kiem, Hai Ba Trung 3.4 Recommendations to the State Bank of Vietnam and Head Office of BIDV 3.4.1 Recommendations to the State Bank of Vietnam The Government and the State Bank of Vietnam need to continue to improve institutions for banking operations, issue a decree on debt trading market, direct the solving of problems related to bad debt handling according to Resolution 42 of the National Assembly Festival; amending the non-cash payment scheme; Legal framework (including the trial management mechanism - Regulatory Sandbox) for Fintech, digital banking, peer-to-peer lending, e-wallet, mobile money, banking cooperation - Fintech and Bigtech, data sharing data , creating conditions for credit institutions to successfully deploy digital banking The Government continues to direct and accelerate the construction of national databases, especially population data This is the basis and premise for banks to build a modern product program to serve the economy Request the State Bank to allow the rearrangement, reallocation of the network of transaction offices in different provinces / cities This contributes to strengthening the ability to provide services to localities, especially agricultural and rural areas, in line with the guidelines and orientations of the Government and the State Bank 84 It is suggested that the Government continue to promote the digitalization program, widely applied in the fields of life and society Develop a national database system and have a way to effectively exploit banking and finance activities, serving national development and social management Need to expand and develop the capital market with more financial depth Having an open policy allows organizations and enterprises to access the market more easily; offering solutions to reform the institutional system and technical solutions to meet the ranking criteria on the stock market, thereby increasing the attraction of domestic and foreign investment capital, to meet the increasing demand economic growth Proposing to expand the application of electronic signatures, E-KYC, promote banking cooperation with Fintech companies, enhance security, safety coordination, and security in banking solutions based on the digitalization platform, helping to optimize customer experience in using products and services in digital channels, improving the interoperability between banks and customers, creating new and practical experiences , contributing to the strong development of digitalization in the banking sector in the coming time 3.4.2 Recommendations to the Head Office of BIDV BIDV Head Office is the unit that directly manages, directs and operates the whole system, including branches and member units through the issuance of regulations, instructions, instructions, and Orientation… Therefore, in order to create a favorable basis for the Branch to improve its competitiveness in the area, So giao dich Branch has made a number of recommendations to the Head Office as follows: - Regulations and processes towards simplifying the process and procedures of banking records thereby helping the bank improve service quality: shorten borrowing time - Research and development of products and services that are different and innovative compared to existing products on the market 85 - Issuing preferential credit packages with attractive interest rates that can compete with other banks - Competitive fund mobilization interest rate mechanism, accompanied by promotions, winning numbers, giving gifts to customers - Invest in the technology system of the whole system to improve labor efficiency, improve the quality of products and services and meet the increasingly strong and extensive digitalization trend 86 CONCLUSION Competition is indispensable for businesses, including banks to survive and develop, so enhancing competitiveness becomes a vital factor that every organization must strive to find solutions to perform With the initial target set out, the topic: Solutions to improve the competitiveness of the Joint Stock Commercial Bank for Investment and Development of Vietnam – So giao dich Branch has implemented the following contents: - Presenting in a comprehensive and systematic way the theoretical bases on competition and competitiveness, researching experiences in enhancing competitiveness at major banks in the world - Evaluate, analyze, synthesize objectively, scientifically and logically the current competitive capacity of BIDV, So giao dich Branch - Proposing solutions to improve competitiveness at BIDV So giao dich Branch In order to improve competitiveness, banks have many different solutions, however, in order to associate with the practicality at BIDV, Transaction Center branch, the topic only goes into depth analysis and offers solutions Core and focused solutions include solutions to improve human resources, solutions to differentiate products and services, marketing solutions, customer policies, technology solutions and identity solutions trademark With the contents of the topic done, the author hopes to contribute to better improve the competitiveness of BIDV So giao dich Branch, contribute to improving business efficiency for the Branch Branch firmly steps on the path of development and integration 87 REFERENCE LIST Political Economy Marx-Lenin - Assoc.Prof Dr Ngo Tuan Nghia Chairman of the Compilation Council in 2019 Competitive Strategy - Michael E Porter, 1985 Competitive Advantage - Michael Porter, 1985 Papers On the Appropriateness of the Concept of Entry Barriers in Competition Strategy Theory - Barney, McWilliams, & Turk, 1989 Article Assessing the competitiveness of Vietnamese banks in the context of ASEAN economic integration - Author Nguyen Thi Nga, Pham Ngoc Huyen on the Money Market Journal No 13 in 2019 Article Theory of banking competitiveness - author Luong Xuan Minh, Nguyen Thi Thu Trang published on the Journal of Industry and Trade on January 23, 2020 The role of the Vietnamese banking system in 20 years of reform - State Bank of Vietnam Office http://vinanet.vn/kinhte-taichinh/kinh-te-viet-nam-2016-2019-va-dinhhuong-2020-724628.html https://caphesach.wordpress.com/2012/12/08/nhung-nguon-luc-cua-doanhnghiep-va-duy-tri-loi-the-canh-tranh-phan-ii/ 10 http://vneconomy.vn/tai-chinh/khung-hoang-no-duoi-chuan-tai-my-tu-a-denz-62186.htm 11 https://www.rancord.org/bank-of-america-business-model-generic-strategyintensive-growth-strategies-competitive-advantage 12 https://www.tr.mufg.jp/english/ourservices/realestate/advantages/advantages _index.html 13 http://dkra.vn/pdf/kinh-te-vi-mo-va-moi-truong-chinh-sach-tac-dong-tt-bds2019-2020-f_vi_1578557706.pdf - TS Cấn Văn Lực 14 http://vinanet.vn/kinhte-taichinh/kinh-te-viet-nam-2016-2019-va-dinhhuong-2020-724628.html 88 APPENDIX APPENDIX QUESTIONNAIRE IN ENGLISH Code: …………… Dear Sirs/Madams! I am Tran Thanh Binh.- Master student of HSB-MBA12, in Hanoi Schoole of Business (HSB), Vietnam National University Currently, I am researching on the topic of “Solutions to improve the competitiveness of Bank for Investment and Development of Vietnam – So giao dich Branch” and would like to study this issues in reality to serve for our graduation thesis I hope you can take your time to answer some questions below Please also note that your responses are the basis for our evaluation the research’s current status, therefor I am looking forward to receiving your detailed and honest answer All relevant information will only be available for research purposes and will be fully confidential Thanks for your cooperation and help! Number Question Type of product and service of BIDV So giao dich Branch Deposit that you are using Do you review whether the products and services of BIDV So giao dich Branch have been diversified and met the needs of customers? Other service Loan Quite Very diverse, diversified, however, fully there is a meeting the lack of needs of special customers products and services How would you rate the quality of BIDV So giao dich Very good Quality Branch's products quality decent and services? 89 Not diversified yet, not meeting the needs of customers is Low quality Note How would you rate the savings interest rate of BIDV So giao dich Branch? Savings interest rates higher than other banks Savings interest rate equivalent to other banks Lending How you rate the Lending interest rate higher than lending interest rate equivalent of BIDV So giao dich other banks to other Branch? banks How you rate the Service Service fees service fees of BIDV fees higher equivalent So giao dich than other to other Branch? banks banks How you evaluate the customer care service policy of Very BIDV, Transaction pleased Center Branch? Pleased Savings interest rates lower than other banks Lending interest rates lower than other banks Service fees lower than other banks Unsatisfied Some customers report to the transaction but have not been specifically advised by bank officials Please provide some personal information (if possible): Name: …………………………………………………………………… Email: ………………………………… Mobile: Sincerely thank you and wish you health, success! 90 ... Assessment of competitiveness of BIDV So giao dich Branch .42 CHAPTER 3: SOLUTIONS TO IMPROVE COMPETITIVENESS OF BIDV SO GIAO DICH BRANCH 61 ii 3 .1 Trends and forecasts for the banking... of up to thousands of billion VND, so it was merged into the Bank for Investment and Development of Vietnam ( BIDV); Southern Bank with a bad debt ratio of 55. 31% was also forced to merge into... experience Bank for Investment and Development of Vietnam (BIDV) – So giao dich Branch is a key branch, leading the whole BIDV system Therefore, improving the competitiveness of BIDV So giao dich Branch