MỤC LỤC
Second, to apply international rules and carry out export credit in other countries through the State export sponsor to withdraw experience lessons for this activity in Vietnam. Third, based on studying actual implementation of export credit before and after VIETNAM’s joining into WTO at VDB, evaluating the achievements, reasons and restrictions to work out solutions to complete the strategy of export credit at VDB.
First, to find out basic matters of export credit and strategic management of the enterprise to apply to the bank. - Based on socioeconomic development orientation objectives and development strategy of the industry, put forth solutions and recommendations to complete export credit at VDB.
METHOD OF RESEARCH
Theoretical issues will be mentioned in the chapter 1 as a background to carry out analyses in chapter 2 and chapter 3. Theoretical issues include: concept and requirements of business strategy; sequence of building up business strategy;. SWOT model; Feature of vocational training business; basic business strategies. Concept and requirements of business strategy:. There are many different definitions on strategy. Hereinafter, we would like to put forth some typical understandings:. - “Strategy is the direction and scope of an organization in the long term:. strategy will bring about advantages for the organization via optimal arrangement of resources in a competitive to meet the market demand and expectation of capital contributors”. - Strategy is the ways whereby long-term objectives can be reached. Business strategy may be understood as strategies of geographical expansion, product diversification, market penetration, reduction or waiver, acquisition or joint venture IeMBA, 2008). The data collection and processing system is the group of human resources and technologies in charge of collecting and processing information about products, customers, distribution channels, trademark and human resources management in order to provide the processed information to the enterprise management, enabling them to analyze and put forth contents of the business strategy plan.
Immagically, SWOT is the theoretical framework on which we can review strategies, determine position as well as the direction of an organization, a company, analyze business proposals or any ideal related to the interests of the enterprise. In fact, the application of SWOT in building up business plan, planning strategy, evaluating competitors, surveying market, developing products and in study report are increasingly chosen by many enterprises.
The enterprise must choose optimal strategy because it is impossible to carry out all strategies or each strategy in a careless order at the same time. Therefore, it is necessary to choose to work out the most optimal strategy for development and consider advantages and disadvantages incurred by the enterprise from this strategy.
The enterprise may rely on some methods to seize advantages in costs by improving efficiency of the business, seeking access to great materials with lower selling price, shifting business abroad in an optimal manner and making decisions on merger vertically, or reducing some unnecessary costs. They hope that such higher prices will not only allow making up for increased costs during product supply process but also, thanks to uniqueness of such products, if the supplier increases prices, the enterprise may transfer such difference to the customers because the customers are not easy to find similar products in stead.
USEXIMBANK provides such services: guarantee for working loans of exporters, guarantee for repayment of loans or to foreign importers borrowing capital to buy goods and services in the USA; provides credits to foreign importers when commercial banks don’t agree to provide such services; credit insurance services for the USA exporters to protect them from risks of nonpayment of foreign purchasers. From general viewpoints on export financing through the experience of the countries, during the integration into WTO, export credit need to solve two issues, namely, compliance with International regulations on adjusting export credit, promoting export to bring into full play export role in the economy, on the other hand, use competitive advantages to bring about high efficiency in export.
However, in these years, loan for State owned companies tended to reduce, and loan for non-state owned companies seemed to increase, because many state owned companies moved their operation into joint- stock company and single member limited company; on the other hand, VDB assistance also changed to be appropriate with the policies by the Government on equal loan giving for all economic units; and along with the economic development, the most dynamic economic units are non-state owned companies, who are defining their position in business and who have enough conditions to approach preferential loans by the Government through VDB. Before joining WTO, the State conducted big policy in supporting the export in terms of interest which was at only 50-60% of the normal commercial interest and such support was for both proposal of production & trading of products for export and for project of investment in production of products for export, applying price incentive policy, export bonus, tax levy barriers as to limit the imports, encouraging to use domestically-made products to replace for the import.
When entering WTO, we are required to ensure to comply to international commitments in accordance with the roadmap to step by step take off the barriers, the interest is required to come close to progress of the market, no discrimination among economic sectors, to cross-out the export bonus, no support to the domestically-made products, etc. Although it has been much better than before, the combination in work between VDB and the functional and related authorities is not efficient and timely, this leads to lateness of export credit policies (Ex.: Decree 151 was issued in Dec. the circular guiding on some points in Decree 151 was not issued until Jul. 2007, and the circular guiding on investment credit and export credit risk handling was not issued until late 2007, the document guiding on classifying debts and establishing risk provision was not issued until late 2008), and some related policies are not feasible (the establishment of risk provision, etc.).
Information quality in statistical work and efficiency of decision making for managers (business statistics): build a statistics information system for the entire statistical system of VDB to set up a risk preventive and handling system in the credit investment activities aimed at collecting, analyzing and monitoring risk information from different sources of information inside and outside the sector solution to draw out suitable measures Collect, manage and provide information for the evaluation work and credit risk prevention;. Commitment of the integration of Vietnam as follows: Policy on export credit support for agricultural products will be eliminated within three years after integration; export credit support for non-agricultural products will be abolished after 3 years of WTO accession; immediately annul the discrimination of origin of goods and services (domestically produced or imported), or differentiate the provider of goods and services in the lending policy.
However, the issue of 2009 is not inflation but economic stimulus to counter the decline in growth, CPI in the first half year increased by only 2.68% compared to year-end 2008 This is actually a solid basis for forecasting that but the policy on demand stimulus could enable the inflation return at the end of this year or early 2010. This event also opens new opportunities for domestic banks to restructure their operations, improve financial structure, ensure the flexibility of capital and allocate resources of capital effectively according to principles of the market mechanism and meet the requirements to compete in the global business environment.
-Horizontal Merger: It is important to link with other businesses to expand market share, strengthen channels to mobilize and use capital; link with domestic and foreign potential banks and foreign for diversification, specialization, link training, management capacity building, risk management. - Brand selection: Need to build mixed marketing programs to develop by 2015, according to forecasts, future market share for export credit business will have chance to increase strongly and advertise the image of the VDB to each enterprise.
Based on evaluation mark for each strategy, the group choose strategy 1 as the optimal one because it meets theoretical and practical requirements, ensures achievement of objectives as well as ensuring VDB to fulfill its mission. VDB have got a number of encouragous achievements in just first three years, which proved correct development in right direction and suitable with the source of powers and proved an effective use of those sources while the policy and the mechanism need to be developed syncronizingly, step by step applying fully all those proposed technical activities.
Second: For export credit policy objects: the portfolio of items must be defined in accordance with the development strategy of export of the country in each period, and the direction of reducing the proportion of crude exports of crude, increase the proportion of items with high value added processed and manufactured products , products having high technology content and gray matter. It is necessary to consider adjusting the maximal mark level of the criteria to reflex each customer’s situation in the most accurate way, focusing on several main criteria: Business scale; corporate financial indexes, non-financial indexes such as management capacity and experience, prestige in credit relation and business environment.
+ Enterprises need to carefully study WTO regulations on anti-duping, technical barriers of importers to avoid dumping lawsuits; finalizing the accounting record in line with the legal documents, arranging human resources, and raising corporate administration capacity and building measures to protect enterprises’ benefits. I believe that, along with appropriate assessment on VDB’s operation over the past time based on SWOT analysis to define and select optimal strategies to efforts to fulfill the set goals in the coming time, VDB will become a special bank in the near future, deserving the local government’s effective tool in the macro- economic management.