BM1 G1 VCB

GROUP ASSIGNMENT COVER SHEET
STUDENT DETAILS AND CONTRIBUTION RATE

:
Student ID 3121102009 Contribution 100
Student name: Duong Bui Dat Hieu number: 9 rate: %
:
Student name: Pham Hung Thien number: 3 rate: %
Student name: Nguyen Chau Minh Thu number: 4 rate: %
UNIT AND TUTORIAL DETAILS

Unit name: Bank Management Unit number: BM-DH47ISB-01
Tutorial/Lecture
: Lecture Class day and time: Wednesday, 8:00 AM
Lecturer or Tutor name: Dr. Lê Anh Tuấn and Mr. Hứa Tấn Trung
ASSIGNMENT DETAILS
Title: Group Project Report: Vietcombank
52 pages Sun, Aug 13th,
Length: (15660) Due date: 2023 Date submitted: Sun, Aug 13th, 2023
DECLARATION
I hold a copy of this assignment if the original is lost or damaged.
I hereby certify that no part of this assignment or product has been copied from any other student’s
work or from any other source except where due acknowledgement is made in the assignment.
I hereby certify that no part of this assignment or product has been submitted by me in another
(previous or current) assessment, except where appropriately referenced, and with prior permission
from the Lecturer / Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/ produced for me by any other person except
where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned.
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I am aware that this work may be reproduced and submitted to plagiarism detection software
programs for the purpose of detecting possible plagiarism (which may retain a copy on its database
for future plagiarism checking).
Student’s
signature: Hieu
Student’s
signature: Thien
Student’s
signature: Thu
Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration
has not been signed.
Group Project Report - BM1 – G1 – VCB

LINK DATA
https://docs.google.com/spreadsheets/d/1RbvjULGnbhi14u44dlEnfEn83T1Du-
EOrSxA6AMbkgY/edit?hl=vi#gid=0
1. Executive Summary .Please state clearly what you do in this part of the project, how
you do it, what major results/findings you have in the report.
Join Stock Commercial Bank for Foreign Trade of Vietnam, formerly known as Bank for
Foreign Trade of Vietnam – Vietcombank. It was established on April 1, 1963 from the Foreign
Exchange Bureau (of the State Bank of Vietnam). Vetcombank has been constantly developing
with excellent business achievements and is considered to have the highest ratings among
Vietnamese banks by international credit rating firms with its total assets of over VND 1
quadrillion (US$43.1 billion) by the end of 2018. Moreover, in 2009, this bank was officially
listed on the Ho Chi Minh Stock Exchange (HOSE) with the code VCB (Annual report 2018).
In addition, its profit in 2018 approximated 18.4 trillion VND which increased 63.5% from
2017. In 2019, Vietcombank successfully raised charter capital to VND 6,200 billion,
surpassing Vietinbank to take the lead among Vietnamese banks. Vietcombank has not only a
wide working network with 537 branches and transaction offices throughout the country but
also developed a huge system of 2105 correspondent banks over 131 countries and regions.
Vietcombank has also developed an autobank system with over 2.300 ATMs and more than
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43,000 merchants nationwide and gained the trust of more than 10 million retail customers and
nearly 30.000 corporate customers. Thanks to the process of building the banking system as
well as developing and upgrading services, Vietcombank has achieved the trust of customers
as well as the prestigious awards today
Our report on the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank)
was established on April 1, 1963, by a Foreign Exchange Bureau (of the State Bank of
Vietnam). Our report is written based on ratios calculated based on the data of 2018,2019,
2020,2021 and 2022 and the quarters of 2023 that we collect, compiling press releases related
to the bank's business. Through the data we have searched and through the calculation process,
we have described the trends, analyzed, summarized and concluded the bank's performance as
well as the highlights and ineffectiveness of Vietcombank.
2. Introduction and Overview A comprehensive introduction about the bank such as

general information, mission and value strategy, SWOT analysis and competitor SWOT
analysis, bank organization, customer base and market share, products and pricing,
current events and economic outlook, business segments (include lending, non-lending
operations, investing activities, funding activities), economy sensitivity, takeover, merger,
bankrupt activities.
GENERAL INFORMATION
The Foreign Exchange Department of the State Bank of Vietnam served as the predecessor
organization to the former Bank for Foreign Trade of Vietnam, which was founded and
officially inaugurated as the Joint Stock Commercial Bank for Foreign Trade of Vietnam
(Vietcombank) on April 1, 1963.
After successfully conducting the equitization program, Vietcombank, the first state-owned
commercial bank chosen by the government to pilot equitization, began operating as a joint
stock commercial bank on June 2, 2008. equitization scheme by way of a stock initial public
offering. Shares of Vietcombank (stock code: VCB) were formally launched on the Ho Chi
Minh City Stock Exchange on June 30, 2009.
Vietcombank has grown and developed over the course of more than 50 years, promoting its
role as a key external bank, effectively supporting economic development in the nation, while
having a significant impact on the regional and global financial community. Vietcombank has
made significant contributions to the stability and development of the country's economy.
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Vietcombank has evolved from a specialist bank serving the international economy to a
multifaceted bank operating in numerous sectors, offering customers a comprehensive spectrum
of industry-leading financial services in the sphere of commerce. International; in conventional
activities such trading in capital, raising capital, extending credit, and financing projects... as
well as cutting-edge banking services like foreign exchange trading and derivatives, card
services, and computerized banking...
Vietcombank has several benefits in producing e-banking products and services based on the
banking system thanks to its sophisticated banking technical infrastructure, which can be
applied to the automatic processing of banking services. advanced platform. With its ease,
speed, safety, and effectiveness, digital banking platforms and services including VCB Internet
Banking, VCB Money, SMS Banking, Phone Banking, etc. have attracted and will continue to
draw a sizable consumer base.
With over 15,000 employees and more than 500 branches, transaction offices, representative
offices, and members both domestically and abroad, including the Head Office in Hanoi, 101
branches, and 395 transaction offices nationwide, 03 subsidiaries in Vietnam, 1 representative
office in Singapore, 1 representative office in Ho Chi Minh City, and 2 overseas offices,
Vietcombank is now one of the largest commercial banks in Vietnam. Additionally,
Vietcombank created an Autobank system with over 2,407 ATMs and over 43,000 card-
accepting devices spread across the country. A global network of more than 1,726
correspondent banks in 158 countries and territories supports banking operations as well.
Vietcombank has always been the first option of businesses, major organizations, and individual
customers in the East due to its long history of operations, staff of capable and sensitive
employees, and modern, highly integrated business environment.
Vietcombank has consistently received votes from esteemed international organizations as

"Best Bank in Vietnam" because it strives to operate to international standards. According to
the voting results reported by The Banker Magazine, Vietcombank is also the first and only
bank in Vietnam to be listed among the Top 500 World Banks.
Generations of Vietcombank personnel have worked diligently to establish the bank in order
for it to grow more sustainably. By 2020, they hope to have made Vietcombank the top bank in
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Vietnam. The management of Nam, one of the 300 largest financial banking companies in the
world, complies with worldwide best practices.
BANK ORGANIZATION
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CUSTOMER BASE
Vietcombank worked tirelessly to build several initiatives on technology infrastructure and new
payment solutions, laying the groundwork for the CTM's expansion. Currently, Vietcombank
has over 21 million customers, with more than half of them transacting with TM on a regular
basis. Vietcombank's transaction scale through digital channels reaches nearly 9 million
customers, an increase of more than 5 million customers in three years from 2019 to now, with
the goal of reaching more than 10 million customers by the end of 2022, with over 85% of
transactions performed on digital channels.
MARKET SHARE
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- Sales of international shopping centers reached 135 billion USD, up 31.8% compared
to 2021.
- International market share - shopping malls reached 18.5%, an increase of 3.11
percentage points compared to 2021 and maintained the leading position in terms of
market share.
CURRENT EVENTS AND ECONOMIC OUTLOOK

- The world context in 2023 is expected to be fraught with difficulties and challenges as
the economy slows and inflation remains high. Global GDP growth is expected to slow
from 3.4% in 2022 to 2.9% in 2023, putting several major economies at danger of
recession. Global inflation in 2023 is expected to be around 6.6%, which is still
significantly higher than the 3.5% seen prior to the Covid-19 epidemic. Countries'
central banks are still hiking interest rates in order to manage inflation. Meanwhile, the
Russia-Ukraine conflict shows no signs of abating and continues to have a severe impact
on global economic and trade activity. China's economic rebound following reopening
is insufficient to contribute to global economic recovery. The Government of Vietnam's
guiding spirit in 2023 is "Solidarity, discipline, flexibility, initiative, creativity, and
efficiency," with the basic goal of GDP growth of roughly 6.5% and inflation of about
4.5%. Vietnam's economic prospects in 2023 are interwoven with possibilities and
challenges in the context of global economic troubles. Vietnam's economy has a chance
to recover due to the stability of the FDI sector, the increase of public investment, and
various businesses, such as exports and tourism, that have the potential to grow
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significantly once China reopens. The basic economic goals of the government can be
achieved through a policy of flexible adaptation, which includes leveraging domestic
demand to offset a decline in international demand, investing in the development of new
businesses, strengthening governance, promoting digital transformation and
automation... However, the economy faces numerous obstacles, including diminishing
demand, slowing foreign trade activity, a sluggish real estate market, and so on. The
corporate bond market is clogged, inflation is disguised, interest rates are high, and the
exchange rate is under significant pressure as a result of the Fed's interest rate hike
policie. The SBV issued Directive No. 01/CT-NHNN on January 17, 2023, to organize
the implementation of major banking sector activities in 2023. As a result, the SBV
establishes a credit growth objective of 14- 15%, an interest rate management approach,
and a flexible exchange rate in the key year of the 2021-2025 era to both control inflation
and assist economic recovery. In this context, adhere to the important duties of the
Government in 2023 and State Bank of Vietnam Directive 01/CT-NHNN, connecting
with the strategic goals of VCB development to 2025, a vision to 2030, and thoroughly
understanding the operational motto. Vietcombank is determined to successfully carry
out business tasks in 2023, practical achievements, with the following activities:
"Transformation, Efficiency, Sustainability", the operating principle of "Responsibility
- Aggression - Creativity". celebrating its 60th anniversary. Specifically, the Board of
Directors of Vietcombank approved Resolution 01/NQ-VCB-HQT on January 1, 2023,
approving business direction with a number of key indicators and key orientations as
follows:
1. Implement the Digital Transformation Action Program and the Transformation Action
Plan in accordance with the approved timeline, while maintaining quality.
2. Improve human resource quality, with a focus on adaptive human resources for digital
conversion. Creating a digital culture and using Agile working methodologies.
3. Renovating the growth model in conjunction with operational restructuring; promoting
the overall strength of the VCB system.
4. Encourage consumer and product development.
5. Improve the mechanism and policy system.
6. Deploy on time and with the utmost determination. The plan is to receive a forcible
transfer of a poor credit institution.
PRODUCTS AND PRICING

1. Capital mobilization services;
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2. Loan service;
3. Service of discounting, rediscounting negotiable instruments and other valuable papers;
4. Bank guarantee service;
5. Domestic factoring and international factoring services;
6. Credit card issuance service;
7. Other forms of credit extension as prescribed by law;
8. Billing and treasury services;
9. Foreign exchange services on the domestic and international markets according to
regulations of law;
10. Agent banking services;
11. Supply of commodity price derivatives within the scope set by the Bank State
regulations;
12. Other services according to the Business Registration Certificate.
- COUNTER SERVICES
+) Cashier – Guarantee – Postal Service
+) Oversea Remittance Service
+) Domestic Remittance Service
- E-BANKING FEE
+) Ebanking Fee
- CARD FEE
+) International credit cards
+) Domestic debit cards
+) Card payment services
LENDING
CORPORATE LOANS
+) Short-term lending
+) Working capital financing
Credit facility
Overdraft limit
+) Project Finance
Financing existing projects
Financing new projects
+) Leasing
PERSONAL LOAN
+) CONSUMER LOANS
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• Valuable papers pledged loan
• Personal Installment loan with Collaterals
• Unsecured loan
+) HOUSING LOAN
• Project Housing Loan
• Home Construction/Renovation Loan
• Home Loan
+) LOANS FOR BUSINESS
• Success business loan
• Medium term Business Loan
• Safe Business
+) CAR LOAN
• Car loan
• Business car loan
+) PROMOTIONS
NON-LENDING OPERATIONS
- Promote activities , Social Security with total commitment with total of 487 billion
Dong (disburse 328 billion Dong)
- Total sponsor amount for assistance activities phase 2018-2022
INVESTING ACTIVITIES
- VCBL is a 100%-owned subsidiary of Vietcombank that specializes in financial leasing.
In 2022, the company's business results were constant. In 2022, pre-tax profit was VND
132.23 billion.
- VCBS is a 100%-owned subsidiary of Vietcombank that operates in the securities
industry. Despite the fact that the stock market had many negative oscillations in 2022,
the Company maintained consistent business results. In 2022, the pre-tax profit was
250.19 billion VND.
- VFC is a completely owned subsidiary of Vietcombank that operates in the Hong Kong
finance sector. In 2022, the company's business results were constant. In 2022, pre-tax
profit was HKD 1.17 million.
- VCBR is a wholly owned subsidiary of Vietcombank that handles remittances from
international partners as well as payments and payments to beneficiaries in Vietnam. In
2022, the company expects to continue solid business outcomes. In 2022, the pre-tax
profit is VND 10.12 billion.
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Funding activities
- As a capital arrangement and financing unit with large credit needs and national key
projects, Vietnam National Petroleum Group (Petrolimex):
+) Actively signed with Petrolimex in 2022 to provide a credit line of nearly 20 trillion
dong to meet the capital needs of businesses, timely import petroleum, meet essential
needs of people, and serve production and business for enterprises.
+) Long Thanh Project: The main point for arranging domestic and international funding
for the Phase 3 Long Thanh Project under the Investors of Vietnam Airport
Corporation's "Long Thanh International Airport Construction Investment Project -
Phase 1". Nam- ACV requires 2.5 billion USD, with a total investment of more than 99
trillion VND.
+) Hoa Phat Steel Group: Sponsor the Hoa Phat Dung Quat 2 Iron and Steel Production
Complex Project with a total investment of 70 trillion VND, with Vietcombank
arranging a credit contract of 35 trillion VND.
+) Signing comprehensive cooperation agreements with corporations and corporations,
strengthening comprehensive cooperation with customers, and contributing to the
promotion of sustainable development between the parties, specifically:
+) In the energy sector: Signing a comprehensive cooperation agreement, committing
to providing credit and comprehensive banking services to develop the domestic energy
industry with Vietnam Oil and Gas Group - Petrovietnam, the Group Petrolimex
Vietnam, and the Group Petrolimex Vietnam.
+) In the field of logistics. Signing a comprehensive cooperation agreement in the field
of post and telecommunications and digital transformation, committing to increase the
use of the parties' products and promote cooperation
+) In digital transformation with the Vietnam Posts and Telecommunications Group -
VNPT and Vietnam Post Corporation - VNPost units.
ECONOMY SENSITIVITY
- Capital mobilization: Manage capital mobilization flexibly, in accordance with the
situation of capital use and market movements.
- Credit work: Strictly implement credit growth control in the right direction;
implementing a series of solutions to effectively use the credit limit to maximize profits,
ensure credit quality while complying with the ceiling limit assigned by the State Bank.
- Effectively deploying competitive interest rate lending programs associated with the
development and use of associated products and services. Pioneering interest rate
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reduction to support customers to restore production and business activities with a profit
reduction of up to 1% in the last 2 months of 2022.
- Strictly control the quality of credit balances and structured loans according to Circular
03, ensuring that the bad debt ratio is below 1.5%.
- Speeding up the process of recovering bad debts and off-balance sheet debts; strengthen
supervision, urge and direct the handling of problem debt collection at branches,
especially those with large off-balance sheet debt, are assigned a high debt collection
plan in 2022.
- Directed the implementation of 03 business pillars including: Retail, Service,
Investment to gradually complete 06 strategic breakthroughs and 03 business
restructuring focuses.
- Promote the implementation of the program digital conversion action sequence and
Transformation action plan.
- Deploy preparation contents 60th anniversary of the establishment of VCB.
- Consolidate the organizational model and develop the network of activities (coffee
approve the policy of consolidating the structure, model activities at Head Office,
Setting up Operation Division, recruiting experts abroad to work for the Public Sector
Information Technology & Digital Transformation. Implement many projects on
innovation to build leading banking platforms on digital conversion).
TAKEOVER
Abbrevia License to operate Field Capital Ownership

tion December rate
31, 2022
Joint venture VBB No. 2458/GP dated Lease 410,36 52%

Vietcombank 07/02/2005 office
Bonday and last revised license
Benthanh No.2458/GCNDC2/41/
1 day
December 28, 2012
issued by the Ministry of
Planning and
Investment
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Joint venture VCBF No. 06/UBCK- Manage 135.15 51%
Investment GPHDQLQ date investm
Fund 02/12/2005 and under ent fund
Management license
securities last adjusted number
investment 17/GPDC-UBCK dated
Vietcombank 09/02/2018
issued by the State
Securities Commission
Joint venture VCB No. 283/GP dated Lease 11,11 16%

Vietcombank 5/12/1991 office
Limited and under the modified
- Bondy license
The most recent number
283/GPDC date
04/03/2002 issued by
the Ministry of Planning
and Investment
MERGER
Being transferred to one of the leading credit institutions in Vietnam will open a new journey
with Construction Bank (CB), after more than 8 years of steadfastness on the restructuring
journey. This is information that the leader of Construction Bank (CB) said at the press
conference on 5-6. This position said that from 2015, CB officially became a 100% state-owned
bank with comprehensive support from Vietcombank, from changes in governance model,
technology system, to banking system. service product and image brand…In particular, 2022 is
the first year since the restructuring, CB has officially been approved by the State Bank of
Vietnam for its business plan and has completed 100% of the criteria. Specifically, the total
deposit balance reached more than 20,000 billion VND; increasing the network of corporate
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and retail customers to over VND 5,000 billion; Diversifying revenue from wholesale and retail
activities, capital trading, insurance, debt collection, etc.
BANKRUPT ACTIVITIES
According to Circular 02, the Bank writes off bad debts in the following cases:
• Borrowers who are dissolved, bankrupted under legal regulations (in case of legal entities);
or are deceased or missing (in case of individuals);
• Debts are classified into Group 5.
VISION
No.1 bank in Viet Nam, becoming 1 in 100 major banks in Asia. One of the world’s 300 largest
financial banking groups and governed by international best practices. In the next stage (after
2020), VCB aims to continue maintaining its No. 1 bank position in Vietnam and gradually
enhance its position in the region.
MISSION
A green bank for sustainable development
SWOT (VCB)
STRENGTH
- Large assets with high capitalization:
+) Forbes magazine has just announced the Global 2000 list in 2022, ranking the 2,000
largest enterprises in the world according to 4 criteria: revenue, net profit, total assets
and market value.
+) Forbes uses financial data for the last 12 months to April 22, 2022 to rank businesses
globally.
+) According to Forbes, there are 58 countries represented in the Global 2000 list in
2022. In which, the US continues to be the leading country in terms of the largest
number of global enterprises with 590 companies, followed by China/ Hong Kong (351)
and Japan (196).
+) Forbes said that the businesses on this year's Global 2000 list have a total revenue
of about $47.6 trillion, a total profit of $5 trillion, total assets of $233.7 trillion and a
total market capitalization of $76.5 trillion.
+) Vietcombank is currently the leading bank in Vietnam with total assets of more than
1.4 million billion dong and the highest capitalization value among credit institutions
listed on Vietnam's stock market. This is a remarkable strength when analyzing the
SWOT model of Vietcombank.
+) Vietcombank's consolidated profit before tax in 2021 reached VND 27,389 billion,
up 19% compared to 2020. Capital mobilization and credit both grew at a high rate (up
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9% and 15% respectively compared to 2020). exceeded the set plan, contributing
positively to the process of recovery and socio-economic development of the country.
This is a remarkable strength when analyzing the SWOT model of Vietcombank.
+) Credit quality is strictly controlled, bad debt ratio is very low (0.63%), provision for
bad debt is the highest in the banking industry (424%). In particular, Vietcombank has
set aside 100% of the risk provision for the structured loan balance, 2 years ahead of the
time limit prescribed by the State Bank. This is a remarkable strength when analyzing
the SWOT model of Vietcombank.
+) The sales of international payments exceeded USD 100 billion for the first time,
helping the market share to continue to expand. This is a remarkable strength when
analyzing the SWOT model of Vietcombank.
+) With outstanding business performance, Vietcombank continues to be the bank with
the largest contribution to the State budget with the budget payment scale of
approximately VND 11,000 billion in 2021. This is a remarkable strength when
analyzing the model. SWOT image of Vietcombank.
- Effective customer system management, high satisfaction level:
+) The CRM (Customer Relationship Management) activities of Vietcombank (VCB)
are conducted by the Customer Support Center of VCB. The first content in CRM
activities is to define the goals of CRM. The goal of a CRM activity in particular and
all activities in the Center in general must serve the common goal of the entire VCB
system. This is a remarkable strength when analyzing the SWOT model of
Vietcombank.
+) The Center's CRM target system was determined by VCB's management right from
its inception and is regularly adjusted and balanced to match the strategies of the entire
banking system, ensuring support. business efficiency for VCB. This is a remarkable
strength when analyzing the SWOT model of Vietcombank.
The target system of the Customer Support Center includes the following 3 target
groups:
1- Using CRM as an effective tool to meet all needs of customers coming to the support
center, thereby increasing customer satisfaction with VCB's products;
2- CRM aims to receive all information from customers as quickly as possible as a basis
for forecasting demand, reducing complaints, quickly resolving requests, and
supporting sales of VCB's products. ;
3- CRM is also an effective tool to help VCB send messages to current and potential
customers of the bank.
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- The training and development of professional knowledge are focused on
promoting:
+) In order to achieve the strategic goal of becoming a leading bank in digital
transformation by 2025, besides the technology factor, the human factor - high-quality
human resources plays a particularly important role. Recognizing this problem, the
School of Training has focused on strongly and synchronously renewing the training
and fostering of human resource development in the direction of attaching importance
to the development of capacity and quality for staff. focus on training to adapt to the
digital transformation process. This is a remarkable strength when analyzing the SWOT
model of Vietcombank.
+) It is clear that raising awareness about digital transformation must be synchronized
from the senior leadership team to the mid-level leaders of each department Head office
and branch leaders, training programs for leaders, etc. Senior leadership and training for
the title of Branch Manager always ensure that there is content related to raising
awareness about digital transformation. This is a remarkable strength when analyzing
+) In 2021, the Training School successfully organized the Digital Transformation
Workshop program for members of the Board of Directors and leaders of a number of
TSC units and branches. The program is conducted online with the participation of
leading experts in digital transformation from Switzerland/Singapore/Australia. This is
a remarkable strength when analyzing the SWOT model of Vietcombank.
+) This is also the first year that all members of the Executive Board attended the
training program for senior leaders (Digital Transformation training course on the E-
learning Coursera platform) and the first time that Vietcombank's senior leaders
attended. Join an online course provided by a foreign partner. This is a remarkable
+) For the training program for the Information Technology Division: the training list
is refreshed with many content on technology/digital transformation topics such as
“Practice implementing projects according to Agile/scrum model”, “Machine learning
technology and artificial intelligence in anomaly detection”, “Decision making systems
with predictive analytics and big data”… have made important contributions to the
development of expertise and skills. , raising awareness about the trend and culture of
digital transformation. This is a remarkable strength when analyzing the SWOT model
of Vietcombank.
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+) In addition, with a group of staff outside the Information Technology Division, the
Training School focuses on training products, processes, policies, soft skills, etc.
knowledge of new products, processes, necessary skills, creative capacity and the ability
to quickly adapt to a constantly changing technological environment. This is a
remarkable strength when analyzing the SWOT model of Vietcombank.
+) The training program is continuously reviewed and renewed in the direction of
supplementing banking training content associated with digital transformation,
development and operation of Vietcombank's digital banking environment. This is a
- Recruitment methods are diversified, recruitment quality is improved:
+) Vietcombank is proud of possessing high-quality human resources, which is
considered by the market as one of the most prestigious, strong and competitive
employer brands in the market. This is a remarkable strength when analyzing the SWOT
+) The Organization and Human Resources Department (TCS) - the focal point to advise
the Board of Directors as well as organize the recruitment of staff for the entire
Vietcombank system, always clearly defines the roles and responsibilities in the
development of Vietcombank. employer brand. This is a remarkable strength when
+) In recent years, Vietcombank has constantly innovated both in terms of recruitment
policy and core values to attract talents. This is a remarkable strength when analyzing
+) Changing recruitment policy, understanding the existing human resources in the
market and actual needs, Vietcombank has expanded its recruitment policy (recruiting
officials with positions, experienced staff, support staffs) business assistants,
collaborators, excellent and potential interns, etc.), and at the same time, diversify
recruitment methods to suit each audience (admission examination, online entrance
exam, presentation of topics) projects, interviews, etc.). This is a remarkable strength
when analyzing the SWOT model of Vietcombank.
- Pioneering in the field of "digitizing" human resource management and
development:
+) Determining digital transformation as a very important goal in its operation strategy
to 2025 and vision to 2030, Vietcombank has invested heavily in resources to provide
customers with the best service experiences. This is a remarkable strength when
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+) In order to support customers to shift transactions from traditional channels to digital
channels, Vietcombank on the one hand pays special attention to improving and
renovating the digital channel system, increasing different offers on digital channels,
actively cooperate with Fintech companies to deploy and apply digitalization
technologies, ensuring fast and convenience with the highest safety and security
standards for users… This is a remarkable strength when analyzing models. SWOT of
Vietcombank.
+) With its own digital banking channel, Vietcombank has launched VCB - iB@nking,
VCB Mobile B@nking services since 2007. At the same time, introduced to customers
the completely new VCB Digibank digital banking application on the basis of digital
banking. unifying separate transaction platforms on Internet Banking and Mobile
Banking, providing customers with a seamless, unified experience. This is a remarkable
+) During the time of the COVID-19 epidemic spreading widely, in many areas,
implementing distance, and face-to-face communication was limited in many aspects,
the Digital Banking channel in general and VCB Digibank in particular has shown its
role and meaning. very practical in the daily socio-economic life of all classes of the
population. Up to now, Vietcombank is still the leading bank in terms of customer size
on digital channels with more than 7 million VCB Digibank users and an average
transaction volume of nearly 50 million items per month. This is a remarkable strength
+) Vietcombank continues to launch a brand new VCB DigiBiz digital banking channel
for small and medium enterprises (SMEs) to help businesses transact quickly and
manage finances effectively. After less than 4 months of launching, many businesses in
many fields and industries have considered VCB DigiBiz as an effective assistant for
their businesses in work and administration. This is a remarkable strength when
- Prioritize recruitment of young, dynamic and creative human resources:
+) In parallel with recruiting experienced staff to reduce training costs and time, improve
labor efficiency, every year, Vietcombank always balances the recruitment rate of
experienced and qualified staff. young people to ensure the management of staff, create
a source of successors. Receipt of applications is done mostly online, which is
convenient for candidates. This is a remarkable strength when analyzing the SWOT
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+) In addition, Vietcombank regularly renews the interface of information channels such
as: Website, fanpage, email, etc. to be friendly and close to candidates. Clearly describe
the job positions, expectations and commitments of Vietcombank to the candidate,
helping the candidate better visualize the Vietcombank recruitment brand. This is a
- Strong social activity:
+) With the cross-cutting goal of a green bank, sustainable development for the
community, Vietcombank's social security activities are constantly promoted with many
practical and meaningful programs, deployed on a large scale. contribute to the overall
development of the community and society. This is a remarkable strength when
+) In the period 2016-2020, Vietcombank's budget for social security activities is nearly
1,121 billion VND. In 2020 alone, the bank has contributed over 386.5 billion VND to
social security work, in which, education and health care are two key areas with a value
of more than 159 billion VND and more than 20 billion VND. This is a remarkable
+) In the field of education, one of the bright spots that Vietcombank has contributed to
the recent green incubation journey is school construction with the funding of 10 billion
VND to build Ly Nam De Secondary School in Thai Binh province. ; 7 billion VND to
build Tran Kim Xuyen Secondary School, Huong Son District, Ha Tinh Province... This
is a remarkable strength when analyzing the SWOT model of Vietcombank.
+) Not only leaving a green mark for sponsoring the construction of spacious school
buildings, the bank is also very active in incubating the young generation, specifically,
Vietcombank is always a pioneer in meaningful financial programs. scholarships for
generations of talented young students. This is a remarkable strength when analyzing
+) In 2021, Vietcombank has implemented social security programs with a total
commitment of approximately VND 723 billion, of which to support COVID-19 disease
prevention and control with an amount of approximately VND 381 billion.
Vietcombank has implemented a series of programs and activities to support, give
incentives and gratitude to the frontline forces against the epidemic, especially the
medical team. This is a remarkable strength when analyzing the SWOT model of
Vietcombank.
WEAKNESSES
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- Vietcombank had problems with security and safety of accounts and personal
customer information in 2016:
• Many incidents of customers losing money in accounts opened at Vietcombank made
many people worried, showing a vulnerability in Vietcombank's Smart OTP security
card. In addition, VCB provides ibanking products but has few recommendations and
instructions on security for users. This is a noticeable weakness when analyzing the
• VCB has overcome the above security error, but this is still a weakness that cannot be
changed overnight because the banking software system takes a long time to update and
improve, especially when VCB has a large data set. Large number of customers and
transactions to handle every day. This is a noticeable weakness when analyzing the
- The bank's information technology resources are lacking in both human resources
and equipment:
• There is a shortage of senior staff and policy analysts. At Vietcombank, the
number of people with CFA level 3 certificates – Certificate of policy analysts
– can only be counted on the fingers, although the leadership team Managers
and staff all have university degrees or higher. This is a noticeable weakness
• Not only that, Vietcombank's ATM system has caused a lot of trouble for
customers about the status of the machine being faulty, broken, and out of
money. This situation on peak days such as public holidays, New Year's Day,
Saturday, Sunday... is not uncommon at Vietcombank's ATMs. This is a
noticeable weakness when analyzing the SWOT model of Vietcombank.
- The management apparatus is cumbersome, its operation has not reached its
maximum efficiency; lack of linkage between commercial banks:
• Although it has the strength of a large and powerful staff, it also reveals a
weakness of VCB, because the management of personnel/equipment has not
reached the maximum efficiency.
• There are not many close links between branches, between VCB and the system
of other credit institutions. This is a noticeable weakness when analyzing the
- Monotonous products and services, bad website:
• Although there are many types of products for different customers, there are card
products with diverse functions, but those products have not attracted much
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attention from customers. The reason may be that the marketing activities of
VCB are not good, or the product launched may not be suitable for the majority
of customers. This is a noticeable weakness when analyzing the SWOT model
of Vietcombank.
• If compared with other joint-stock commercial banks, the interface and help
features on Vietcombank homepage (http://www.vietcombank.com.vn) are
rated as bad, nothing outstanding, and convenient. Quick search utility for any
product or service that doesn't exist. This is a noticeable weakness when
− Understanding of the world financial market is still limited:
• This is not only a weakness of Vietcombank but also a weakness of the whole
Vietnamese banking system (including state-owned and state-owned banks).
• This weakness cannot be improved overnight, but it takes time for banks to learn.
This is a noticeable weakness when analyzing the SWOT model of
Vietcombank.
OPPORTUNITIES
- The government facilitates strategic development for the banking sector:

• The Strategy for Development of Vietnam's Banking Industry to 2025,
Orientation to 2030 (Strategy) approved by the Prime Minister under Decision
No. 986/QD-TTg dated August 8, 2018 is a document. It is important to express
a long-term vision, ensuring the overall and sustainable development of the
entire Industry. This is a remarkable opportunity when analyzing the SWOT
Accordingly, the five perspectives mentioned in the Strategy are:
(1) The monetary system, banking and operations of credit institutions are the lifeblood
of the economy, continuing to play an important role in the overall financial system of
Vietnam;
(2) The legal framework on currency and banking is constantly being improved in the
direction of conformity with market principles, economic development requirements
and best international practices and standards;
(3) Credit institutions of all economic sectors are treated equally, compete according to
the law, operate autonomously and take self-responsibility. The pioneering, key and
leading role of domestic credit institutions continues to be affirmed;
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(4) The State Bank plays an important role in creating the monetary and banking
business environment; only direct administrative intervention in the money market and
banking operations when there is a risk of currency market instability, a threat to the
safety of the system, and a threat to macroeconomic stability. ;
(5) Encourage innovation and application of science and technology in management and
administration, ensuring conformity with market principles, economic development
requirements and good international practices and standards. best; focus on developing
high-quality human resources.
- The international economic integration creates favorable conditions for
Vietcombank and Vietnamese commercial banks to reach out to the world:
+) In response to the requirements of international integration, the State Bank of
Vietnam (SBV) has also made constant efforts to strengthen cooperation relations with
international monetary and financial institutions, seeking to expand relations with
potential partners. in order to increase mobilization and support both financial and
technical for Vietnam. This is a remarkable opportunity when analyzing the SWOT
+) With a series of Free Trade Agreements (FTAs) that Vietnam has joined in the past
time and FTAs that Vietnam will officially sign in the near future, especially the Trans-
In the Pacific region (TPP), it is clear that the Vietnamese banking industry will have
many advantages for business development in 2016. This is a remarkable opportunity
+) Currently, a number of large Vietnamese banks have expanded their investments to
ASEAN countries, especially Laos, Cambodia, Myanmar... In addition, many
commercial banks have opened branches, representative offices and subsidiaries in
foreign countries such as Vietcombank with a representative office in Singapore and
subsidiaries in Hong Kong, Sacombank and SHB having banks with 100% capital in
Laos; MB Bank opens foreign branches in Laos and Cambodia; VietinBank opens a
branch in Berlin (Germany), has a representative office in Singapore, Paris (France),
etc.
- The Government's policy in restricting the use of cash in payments promotes

people's demand and habit of using banking products:
+) In order to develop socio-economic, limit inflation, and create a habit of non-cash

consumption for the people, the Government has issued regulations and policies to limit
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cash in circulation such as making expenditures on cash. pay salaries to employees via
ATM cards, encourage people to shop through payment cards of banks…. This is a
remarkable opportunity when analyzing the SWOT model of Vietcombank.
+) From there, the bank's services such as opening personal accounts, paying bills via
ATM cards, etc. Vietcombank's business is growing, bringing a big source of revenue
for the bank. This is a remarkable opportunity when analyzing the SWOT model of
Vietcombank.
- International economic integration:
• The financial - banking sector will be expanded according to the commitments
in the FTA. In addition to the opportunity to attract foreign investment into the
banking industry - an industry that requires capital, technology and high
management capacity, commercial banks are also likely to be extended "room"
further for strategic partners. foreign strategy. This is a remarkable opportunity
• The extensive participation of foreign investors will also facilitate cooperation
expansion and improve governance and financial capacity for domestic banks.
This can be the basis for sustainable development of Vietnam's banking industry
in the future. This is a remarkable opportunity when analyzing the SWOT model
of Vietcombank.
THREATS
- Vietnamese commercial banks in the period of deep integration into the AEC and
TPP, besides opportunities, this is also a challenge because if VCB does not grasp
it, other banks will take it:
• In recent years, Vietnam has been integrating more and more deeply into the
regional and world economy, signing FTAs, AEC, TPP... The implementation
of integration commitments in the field finance-banking has opened up a
prospect full of new opportunities and challenges for Vietnamese commercial
banks.
• The "landing" of foreign banks into Vietnam will create fierce competition in
the race between banks to capture the Finance - Banking market share in
Vietnam. Foreign banks with large capital advantages, highly qualified staff,
long-term management experience, and clear and specific business strategies for
a long time will make domestic banks meet difficulties. facing many difficulties
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in competing for "a piece of domestic market share". This is a remarkable
challenge when analyzing the SWOT model of Vietcombank.
• Accompanied by the competition for market share of high-quality labor
resources of foreign banks will cause brain drain. Since joining the WTO and
implementing the roadmap to open the financial and banking market in Vietnam,
the number of foreign banks and foreign branches has continuously increased
from 31 (2006) to 53 (2013) and 50 ( December 31, 2015). This is a remarkable
• Foreign commercial banks began to set foot in the Vietnamese market in many
forms to exploit a potential market, competitive pressure therefore became more
and more intense. Along with the impact of the global financial crisis and
economic recession, the Vietnamese commercial banking system is in a difficult
situation with poor asset quality, the risk of collapse may occur. This is a notable
challenge when analyzing the SWOT model of Vietcombank
- Regulatory requirements and stricter banking supervision in line with
international best practices:
• Domestic banks must step by step establish and fully apply international safety
standards in monetary and banking activities such as: Standards on prudential
ratios in banking operations Basel II, classification, setting up and use of
provisions to offset risks, deposit insurance, financial and credit bankruptcy
through amending and supplementing documents on the legal environment on
banking activities in accordance with the provisions of law. according to
international standards. This is a remarkable challenge when analyzing the
• According to Basel II, banks, including VCB, are "rushing" to increase their
charter capital to ensure that the numbers are in accordance with applicable
standards. This is a remarkable challenge when analyzing the SWOT model of
Vietcombank.
- The Consumer Price Index and gold price fluctuated abnormally recently, causing
adverse effects on depositors' sentiment:
• In recent times, the huge fluctuations in the prices of commodities on the market
and the price of gold, which are caused by the increase in the price of oil, have
caused the domestic inflation to rise, at 2 The numbers, along with the
devaluation of VND, made depositors' psychology unstable: they switched to
buying gold and foreign currencies to reserve instead of holding money in hand.
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This is a remarkable challenge when analyzing the SWOT model of
Vietcombank.
• As a result, it affects the operations of domestic banks, especially commercial
banks. And Vietcombank is no exception to that influence. This is a remarkable
- Strong competition for capital, products and increasing competition for deposit
mobilization:
• Like throwing a handful of more than 100 pebbles into a calm lake, including 37
domestic commercial banks and more than 60 foreign bank branches thrown into
the financial-banking market, there are bound to be conflicts and competition
for market share every day. increasing. Competition for capital, people,
techniques, technology…. This is a remarkable challenge when analyzing the
• Even many models of unsecured and pawn loan companies (American style) are
flourishing, making a significant impact on the lending activities of banks. This
is a remarkable challenge when analyzing the SWOT model of Vietcombank.
• The explosion of other markets and other investment channels led to big changes
in investment habits of customers as well as the movement of capital flows out
of banks:
• The Vietnamese stock market, the Bitcoin virtual currency market, and the real
estate market are thriving, causing many people to rush to withdraw their bank
deposits to invest.
• Thereby making the demand to withdraw capital to buy stocks from customers
very large, making the banking system always in a hot state of money. Causing
the movement of cash flows from the money market to another market, causing
an imbalance between the two markets. This is a remarkable challenge when
SWOT ANALYSIS (BIDV)
STRENGTHS
- Among the Big 4 state banks:
• Big 4 is simply understood as a group consisting of 4 big guys in certain fields:
accounting, auditing, garment, manufacturing… And in the banking sector, BIG
4 banks include 4 banks with good surface. Long history, strength, revenue,
largest scale in Vietnam today.
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• Banks in the BIG 4 group are under the management of the State up to more than
50%. When one of these four businesses is exposed to any risk, it puts the
country's economy in jeopardy.
• Established in 1957, over 60 years of development, BIDV is one of the most
profitable state-owned banks operating in Vietnam today. BIDV has the State as
the largest shareholder, holding more than 50% of the shares and has the right
to coordinate operations. This is a remarkable strength when analyzing the
SWOT model of BIDV.
- Fast access to financial technology:
• At the Joint Stock Commercial Bank for Investment and Development of
Vietnam (BIDV), the trend of cooperation with Fintech companies and payment
intermediaries has helped customers access a variety of financial services. BIDV
has completed payment connection with popular Fintech brands in the market
such as Napas, Momo, Zalo, Moca, Airpay, VTC pay, Payoo, Baokim, Vimo,
Onepay, Wepay, Ngan Luong, Samsung Pay, Truemoney, Viettel , Vinatti…
and is in the process of connecting with VIMAS. This is a remarkable strength
when analyzing the SWOT model of BIDV.
• With the cooperation of Fintech companies and product and service providers,
BIDV's customers can now pay for more than 300 types of services in the fields
of: Education, telecommunications, transportation, electricity. , water,
insurance, securities, consumer finance, television, entertainment, online
shopping, bidding… In the first 9 months of 2018, nearly 80% of the above
payment transactions were made. through e-banking channels has brought
convenience and savings to customers. This is a remarkable strength when
analyzing the SWOT model of BIDV.
• BIDV has cooperated with Fintech companies to create an ecosystem to meet
the payment needs of customers, not only within the scope of traditional banking
transactions but also to meet the needs of payment spending. customer's daily
payment. Payment services are available where customers spend and when they
need them. This is a remarkable strength when analyzing the SWOT model of
BIDV.
• In addition to the traditional card payment solution, today customers can also
pay online right on the seller's website as well as pay by mobile at physical points
of sale with solutions such as QR. code, Samsung Pay, e-wallet. This is a
remarkable strength when analyzing the SWOT model of BIDV.
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• In the idea of building an ecosystem, through the BIDV Smart Banking
application, BIDV has provided its customers with non-banking products and
services to meet the maximum needs of customers such as: Air ticket booking,
buying movie tickets online, choosing a seat in the theater, booking a hotel room,
shopping online, monitoring a stock portfolio, etc. This is a remarkable strength
• The application has many attractive features for users such as: Transfer money
via phone number, virtual assistant feature (allowing customers to make all kinds
of transactions by voice; Chat function on Smart Banking for the community).
Support for multimedia messages via internet, pay bills via QR code to help
customers experience modern payment services, this is a remarkable strength
when analyzing the bank's SWOT model BIDV products.
- Wide distribution network:
• Not only doing business in the financial sector, Joint Stock Commercial Bank
for Investment & Development of Vietnam also owns a banking - insurance -
securities - financial investment system. This is a remarkable strength when
• BIDV's network is covered with 1,085 branches, transaction offices both at home
and abroad, 10 subsidiaries and representative branches in countries in the region
such as Laos, Cambodia, Myanmar, Russia, and Taiwan. China). This is a
• Regarding the payment system, BIDV currently has nearly 70,000 POS
machines and nearly 2,000 ATMs across the country. This is a remarkable
strength when analyzing the SWOT model of BIDV.
• Such a wide distribution system makes it easy for customers of this bank to find
BIDV's transaction points or ATMs wherever they want.
• From big cities to remote areas such as rural and mountainous areas, BIDV's
network is easily accessible to people across the country. This is a remarkable
- Well-invested Marketing Strategy:
• BIDV is now determined to invest more resources to develop a more
comprehensive brand. In addition, it also increased professionalism in
management to match the expanding scale of operations and the desire to bring
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the brand to an international level. This is a remarkable strength when analyzing
the SWOT model of BIDV.
• In business restructuring plans with a vision to 2030, BIDV has also clearly set
out the necessity of the above.
• Since 2014, BIDV has cooperated with the famous agency Ogilvy & Mather to
implement the project "Consulting on building brand development strategies to
2020, vision to 2030". This agreement is with the desire to better understand the
evaluations, feelings and expectations from customers towards BIDV. This is a
• From detailed research, BIDV has set a goal to build a brand image closer to
customers. BIDV aims to build a vision of a dedicated bank that listens and
promptly understands the needs and desires of customers. This is a remarkable
• Especially in 2022, on the occasion of the 65th anniversary of establishment,
BIDV has been actively implementing a number of social security programs.
• These include: “BIDV – For a Green Life” including: the program “Growing 1
million trees”, building “Community houses to avoid floods” and “Fresh water
for a Green life; program to donate 65 ambulances with a total value of 78 billion
VND to provinces/cities. This is a remarkable strength when analyzing the
SWOT model of BIDV.
• BIDV's community activities focus on areas such as Education, Health, Removal
of temporary houses for the poor, disaster recovery, building community cultural
institutions, bridges and roads for people's livelihood. serving new rural
construction. Especially the program of giving Tet gifts to poor people, BIDV
has been implemented continuously since 2009. This is a remarkable strength
• Previously, in 2021, BIDV implemented a special credit program
"Accompanying the medical industry" to pay tribute to frontline medical staff
during the peak period of the Covid-19 epidemic nationwide. By the end of
February 2022, the program has supported 113,400 customers. This is a
• In order to enhance brand recognition, BIDV also regularly launches advertising
TVCs on special occasions. For example, holidays, Tet, summer greetings or the
launch of new products and services.
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• Not only that, BIDV also uses traditional advertising forms such as OOH
outdoor billboards with places such as at the airport, on Mai Linh taxis. This is
a remarkable strength when analyzing the SWOT model of BIDV.
WEAKNESSES
- The mobile application has many limitations:

• Currently, almost all banks in the country provide Internet Banking services. It
is this convenience that makes online money transfer quick and convenient.
BIDV SmartBanking is also one of the most installed and used applications.
However, there are still some inadequacies that need to be thoroughly addressed.
This is a noticeable weakness when analyzing the SWOT model of BIDV.
• Common errors in BIDV SmartBanking application include: BIDV
SmartBanking cannot transfer money; Did not receive BIDV OTP code; Regular
system maintenance; Interface connection error is interrupted; Money transfer
was successful but not received; etc This is a noticeable weakness when
OPPORTUNITIES
- The law on borrowing is becoming more and more transparent

• In Directive No. 01 on organizing the implementation of key tasks of the banking
industry in 2022, the State Bank requires credit institutions with insurance
agency activities to strictly comply with the provisions of the law. insurance
business law; strengthen internal inspection and control over insurance agency
activities throughout the system. Strictly handle cases that require customers to
buy insurance when granting credit to customers. This is a remarkable
opportunity when analyzing the SWOT model of BIDV.
• Previously, the Ministry of Finance said that the law on insurance business has
provisions to ensure that participation in insurance is voluntary, on the basis of
customers' needs and financial capabilities, prohibiting the use of insurance
products. taking advantage of positions and powers to force customers to enter
into insurance contracts. This is a remarkable opportunity when analyzing the
SWOT model of BIDV.
• Specifically: Clause 4, Article 10 of the Law on Insurance Business prohibited
acts of abusing positions and powers to appoint, request, force or prevent
organizations and individuals from participating in insurance; Decree No.
73/2016/ND-CP stipulating that no organization or individual is allowed to
29
illegally interfere with the insurance buyer's right to choose an insurance
enterprise or foreign branch; Decree No. 73/2016/ND-CP stipulates that
insurance enterprises and foreign branches are not allowed to force organizations
and individuals to buy insurance in any form. This is a remarkable opportunity
- Government interest:
• The Government issued Decision No. 1813/QD-TTg on the project of

developing non-cash payment in Vietnam for the period of 2021-2025. One of
the contents of the Project on Development of Non-Cash Payments is that the
Prime Minister assigns the State Bank to coordinate with the Ministry of Justice,
relevant ministries and branches to study and propose mechanisms and policies.
national digital currency policy for the period of 2021 - 2025. This is a
remarkable opportunity when analyzing the SWOT model of BIDV.
• In addition, the State Bank is also assigned in 2022 to complete a controlled trial
mechanism of financial technology (Fintech) activities in the banking sector.
This is to manage, promote innovation and deploy new cooperation and business
models in payment service provision. This is a remarkable opportunity when
• Developing digital banking is an inevitable trend, "blows" the wind of
technology to help banks improve internal working processes, provide products
and services, documents as well as transaction methods with customers, … For
customers, the benefits of financial-banking applications come from using
services more conveniently, securely, saving costs, and improving account
usage efficiency.
• Recognizing the important role of the need to develop digital banking in
Vietnam in the current period, the author decided to choose the topic
"Opportunities and challenges of digital transformation to the banking industry".
This is a remarkable opportunity when analyzing the SWOT model of BIDV.
- Evolution of digital transformation:
• More and more people are interested in new payment methods in the market.
Biometric payments (such as fingerprint scanning, voice/face recognition or
retinal scanning) are of particular interest. Up to 83% of domestic consumers are
now aware of these payment methods and the majority are also interested in
experiencing them. Digital cards are also gradually recognized by 62% of
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consumers and up to 77% of consumers will use them for future transactions.
This is a remarkable opportunity when analyzing the SWOT model of BIDV.
• According to McKinsey (2021), Asia's consumer market is changing drastically
with new growth angles, closely related to the development of technology,
bringing opportunities for digital financial services, According to the new study
"Beyond income: Redrawing Asia's consumer map" by the McKinsey Global
Institute (MGI). This is a remarkable opportunity when analyzing the SWOT
model of BIDV.
• According to the State Bank of Vietnam, by the end of April 2021, the whole
country has over 79 payment service providers deploying payments via the
Internet and 44 payment organizations via mobile phones. In the first 4 months
of 2021, electronic payment via Internet, mobile phone, QR Code achieved
remarkable results, attracting a large number of customers to use. This is a
remarkable opportunity when analyzing the SWOT model of BIDV.
• Compared to the same period in the first 4 months of 2020, transactions via
Internet channels increased by 65.9% respectively in volume; 31.2% in value;
transactions via mobile phone channel increased by 86.3% respectively in
volume; 123.1% in value; transactions via QR Code channel increased 95.7%
respectively in quantity; 181.5% in value. This is a remarkable opportunity when
• According to statistics from the State Bank, by September 2021, the total number
of transactions via the interbank electronic payment system increased by 1.88%
in volume and 42.58% in value, respectively. . Electronic clearing and financial
transaction switching systems increased by 96.63% in quantity and 133.11% in
value over the same period in 2020. This is a remarkable opportunity when
analyzing the SWOT model of the company. BIDV bank.
THREATS
- Human resources in the banking industry are still limited:
• According to Navigos Search, the source of candidates in the field of digital
transformation in the banking industry in Vietnam is currently very limited, both
in quantity and in quality. This is a notable challenge when analyzing the SWOT
model of BIDV.
• In terms of quality, very few candidates have the experience to apply the most
advanced technologies. In terms of quantity, the bank has a need to recruit large
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numbers and in a short time, but the number of qualified candidates is not
enough. This is a notable challenge when analyzing the SWOT model of BIDV.
• As observed by Navigos Search, the competition for candidates in this industry
is fierce. Especially for positions in IT, one of the important platforms in digital
transformation, there is always a shortage of candidates. Not only banks need to
recruit IT positions, but also companies from other fields such as finance, e-
commerce, healthcare and education... all want to recruit candidates in this field.
This is a notable challenge when analyzing the SWOT model of BIDV.
• In addition, due to the need to deploy advanced technology products and
solutions for digital transformation while domestic candidates have not yet met
the requirements, large banks are willing to pay significant sums of money. to
"hunt" candidates from abroad. This is a notable challenge when analyzing the
SWOT model of BIDV.
• In the two years 2020 - 2021, banks want to recruit overseas Vietnamese
candidates more than foreign employees (expatriate) because overseas
Vietnamese candidates have more advantages when they more or less
understand Vietnamese culture and understand Vietnamese and are easier to
adapt. These employees are especially sought after in key areas such as IT, data,
products, risk management... This is a remarkable challenge when analyzing the
SWOT model of BIDV.
• Recruiting, attracting and retaining IT candidates at banks is always a
"headache" for employers. These candidates usually don't stick around for long
because they can choose from a variety of fields to work in. This leads to fierce
competition between companies in the market to attract candidates and banks
must also offer attractive recruitment policies in terms of salary, bonus and
social benefits. This is a notable challenge when analyzing the SWOT model of
BIDV.
- Digital transformation challenges:
• Digital transformation for the banking industry creates challenges in the field of
payment and completes the legal corridor for electronic payment activities. In
which, the legal framework and mechanisms and policies related to services,
online payment means, new and modern electronic, virtual currency, virtual
card, electronic money, ... are new issues and complicated, need to be further
researched, evaluated, modified and supplemented to meet the actual
requirements and the rapid development of information technology and
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telecommunications. This is a notable challenge when analyzing the SWOT
model of BIDV.
• The remaining challenge is that the business model and payment management
may need to be reconsidered to match the trend of smart governance, mobile
banking model, digital banking, electronic payment. . In addition, banks need to
research and maximize the customer experience in the payment field to meet the
cashless payment needs of customers in the technology age. This is a notable
challenge when analyzing the SWOT model of BIDV.
• The increasingly sophisticated development of digital technology also leads to
an increase in security vulnerabilities and high-tech crimes. For the payment
field, including card payment via POS, electronic payment has recently
experienced complicated developments with new and more sophisticated
behaviors and tricks. This is a notable challenge when analyzing the SWOT
model of BIDV.
• Therefore, the challenge for the entire Vietnamese banking industry in general
and for the payment sector in particular in the context of the industrial revolution
4.0 is the safety of the banking system, the payment system, the problem of
information security and the problem of high-tech crimes, as well as challenges
in terms of qualifications, capacity, quantity and quality of information
technology staff. This is a notable challenge when analyzing the SWOT model
of BIDV.
SWOT (AGR)
STRENGTH
- The biggest commercial bank is Agribank:
In terms of equity capital (almost 21,000 billion), total assets (over 386 trillion VND),
branch network (over 2,200 branches and transaction offices countrywide), number of
staff (over 34,000 officers), and clientele (nearly 10 million households and over 30,000
firms, predominantly SMEs). This is an important consideration while examining
Agribank's SWOT model.No other domestic competitor currently possesses this
absolute power and competitive advantage of Agribank.
- Agribank plays a significant role in the economic growth of the nation:
Agribank contributes significantly to the rural financial industry. Agribank currently
controls approximately 30% of all outstanding loans and holds a market share of over
20% of the total capital that has been mobilized across the whole banking sector.
Agribank holds about 80% of the market share if lending to rural and agricultural areas
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is the only category. This is an important consideration while examining Agribank's
SWOT model.
- Agribank reaffirms the status, standing, and name of a prestigious, long-standing
commercial bank:
• Agribank has earned the trust of authorities at all levels as well as the general
public thanks to its contributions and more than 21 years of development and
expansion. Agribank is a companion and devoted companion to approximately
10 million homes and more than 30,000 businesses, and is well known for its
image as a traditional, intimately connected commercial bank. This is an
important consideration while examining Agribank's SWOT model.
• Agribank's operations are firmly anchored in both economic and political life; it
has a solid and long-standing rapport with local government committees and
significant socio-political institutions like Farmers' Union and Women's Union,
among others. These are qualities that require many generations and stages to
develop. This is an important consideration while examining Agribank's SWOT
model.
- Agribank's network of distribution channels is utterly strong:
Agribank has lured a significant quantity of idle money from urban areas to invest in
rural areas by opening branches there.
Agribank can offer products to all consumers, in all regions, even rural and inaccessible
areas, thanks to its wide branch network. This is an important consideration while
examining Agribank's SWOT model.
- The information technology infrastructure at Agribank is up to date:
The Phase II Bank Modernization and Payment System Project is now complete, and
Agribank has established a cutting-edge Core Bank with internet connectivity for all
2,200 locations. Agribank is able to enter a new phase thanks to the availability of
information technology infrastructure: the age of online commerce. Agribank has a
distinct competitive advantage thanks to its broad branch network and cutting-edge
information technology infrastructure. This is an important consideration while
- Agribank conducts business in multiple fields, industries, and functions:
• Agribank now has 8 independent firms operating under the three pillars of
finance, insurance, and banking in addition to its banking operations. All of the
linked companies with Agribank are market leaders with extensive operational
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reach. This is an important consideration while examining Agribank's SWOT
model.
• With this advantage, Agribank may create cross-selling solutions to maximize
the use of the network, people, technology, experience, and professional
knowledge already available. Agribank executives can conduct insurance sales,
launch financial leasing products, or combine collection of phone, water, energy,
and other utilities in addition to their primary duties of depositing savings and
lending. This is an important consideration while examining Agribank's SWOT
model.
- Agribank has a sizable, knowledgeable staff:
• The majority of Agribank's employees have more than 10 years of experience
and have banking training. This is an important consideration while examining
Agribank's SWOT model.
• The employees of Agribank have a solid understanding of the market, client
demands and tastes, as well as political, economic, and cultural concerns because
they frequently check in with, monitor, and communicate with customers.
Influences from culture and society on patterns, routines, and frequency of use
of banking services and resources. This is an important consideration while
WEAKNESSES
- Agribank's financial sustainability is low, and it has not reached the minimum capital
adequacy ratio requirement. The traditional credit activities are still the primary source
of income for Agribank. This ratio typically accounts for 30–40% of the bank's overall
revenue in a modern commercial bank. When examining Agribank's SWOT model, it is
important to pay attention to this weakness.
- A wide and extensive branch network, such as: Currently, cannot be directed or
operated in a smooth, rhythmic, or organized manner by the Head Office's
organizational structure. When examining Agribank's SWOT model, it is important to
pay attention to this weakness.
Agribank has a branch network in urban areas that has not been arranged and planned
in the direction of ensuring efficiency and increasing competitiveness without wasting
resources:
- The opening of branches and transaction offices in big cities is currently being
carried out in such a way that the demand will open until there, leading to
35
overlapping, unfair competition and especially not concentrating resources. Also,
because there is no long-term development plan for the network system, the investment
in the headquarters and equipment is not commensurate with the stature and position of
Agribank, thus affecting the image and brand of Agribank. This is a weakness to pay
attention to when analyzing the SWOT model of Agribank.
- Agri Bank's products and services are not very diverse, and there is no defined
strategy and focus in studying, promoting, creating, and supplying new products and
services. Product launch and development have not been based on research, market
analysis, or evaluation of the effectiveness of each product or service. This is a flaw to
be aware of when examining Agribank's SWOT model.
- Agribank's technology applications are still in the early stages, limiting its ability to
administer and supply advanced products and utilities. Agribank has completed the main
banking system with a succession of yet-to-be-deployed application systems, typically:
System of management information; System of risk management; System interface with
the outside world; System of information security;... This is a weakness to pay attention
to when analyzing the SWOT model of Agribank.
- The current organizational paradigm, which homogenizes the urban branch
system and the rural network system, is stifling development; it has not yet produced
the momentum needed to utilize the potential and advantages of each type of branch. In
other words, Agribank's competitive advantage is underutilized. This is a flaw to be
aware of when examining Agribank's SWOT model.
- Inadequately trained personnel to adjust to the competitive climate and the
integration context:
• This is especially noticeable in the metropolitan area branches. A modern bank
operating in a highly competitive environment necessitates a staff that is both
professional, fluent in a foreign language, and computer literate, as well as well-
versed in service style, knowledge, and abilities. to understand and execute
innovative financial services. This is a flaw to be aware of when examining
Agribank's SWOT model.
• It is time for Agribank to establish a human resource training and development
strategy that is appropriate for each era, area, market segment, type of product
or service, and customer.
OPPORTUNITIES
- Vietnam integrates deeper and wider into the world economy:
36
• The roadmap for implementation of WTO accession commitments as well as
multilateral and bilateral agreements create opportunities for Vietnamese
businesses in general and Agribank in particular to participate in a level playing
field with businesses from other countries. This is an opportunity to pay attention
when analyzing the SWOT model of Agribank.
• Specifically: creating opportunities to expand the market to the outside
(establishing branches and representative offices; exploiting investment
opportunities; seeking capital sources in the international market; inviting
foreign partners to join together). investment and implementation of projects in
Vietnam, etc.); take advantage of technology transfer, advanced management
and administration methods; staff training.
- The rapid development of scientific and technical advances, especially the changes
and perfections that take place day by day and hour by hour, information technology
applications help to shorten the time and create the necessary breakthrough in the
current situation. banking technology modernization. This is an opportunity to pay
attention when analyzing the SWOT model of Agribank.
- Vietnam's economy has always achieved a high growth rate. Even in 2008, despite
being affected by the world's most severe economic and financial crisis in the last 30
years, Vietnam's economy still grew at 6.23%. Economic development leads to changes
in people's lives, increased consumption and use of banking products, services and
utilities, especially in cities and towns. This is an opportunity to pay attention when
analyzing the SWOT model of Agribank.
THREATS
- Because Vietnam's economy is integrating more deeply and widely into the
international economy, all economic, political and social changes in the world in
general and in major countries in particular are directly affected. impact on Vietnam and
firstly on the banking and financial system in terms of exchange rate, liquidity, attracting
foreign capital sources, payment, ... This is a challenge that needs attention when
Loosening operating conditions for foreign banks in line with Vietnam's implementation
of WTO commitments means that the domestic market share of commercial banks will
be shared. Competition will become increasingly fierce, putting commercial banks at
risk of lagging behind and losing at home. This is a challenge to pay attention to when
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- Competitors, especially joint stock banks are increasingly dynamic, flexible,
responsive and daily, hourly are expanding and asserting market share in urban
areas. This is a challenge to pay attention to when analyzing the SWOT model of
Agribank.
3. Profitability, risk and capital analysis
- Earnings - Profitability
Earnings per share (Billion VND) 2022 2021 2020 2019 2018
VCB 5.821 4.195 4.470 4.481 3.584
BIDV 3.125 1.729 1.447 2.163 1.634
AGR 0
From 2018 to 2019, earnings per share of VCB increased from 3.584 to 4.481 billion VND and
then decreased to 4.195 billion VND in 2021. It rose again to 5.821 billion VND the following
year. On the other hand, BIDV’s EPS witnessed a fluctuation between 1.447 and 3.125 through
the 5-year period. VCB has a higher EPS which indicates greater value. Investors will pay more
for a company's shares if they think the company has higher profits relative to its share price.
P/E (Times) 2022 2021 2020 2019 2018
VCB 12.63 13.33 19.68 18.06 13.18
BIDV 10.75 14.19 27.54 19.4 15.98
AGR 0 0
VCB’s P/E ratio increased rapidly from 13.18 to 19.68 times between 2018 and 2020 and
dropped dramatically to 12.63 times in 2022. Similarly, BIDV’s P/E ratio increased sharply
from 15.98 to 27.54 times during 2018-2020 and decreased significantly to 10.75 times in 2022.
In general, BIDV has a higher P/E ratio most of the time during the 5-year period which could
mean that a company's stock is overvalued, or that investors are expecting high growth rates in
the future.
P/B (Times) 2022 2021 2020 2019 2018
VCB 2.79 2.68 3.86 4.14 3.1
BIDV 1.87 2.17 2.42 2.39 2.16
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AGR 0 0
VCB witnessed a fluctuation in P/B ratio between 2.68 and 4.14 times during the 5-year period.
BIDV’s P/B ratio also fluctuated between 1.87 and 2.42 times from 2018 to 2022. VCB with a
high P/B ratio could mean the stock price is overvalued, while BIDV with a lower P/B could
be undervalued. However, the P/B ratio should be compared with companies within the same
sector. The ratio is higher for some industries than others.
ROE 2022 2021 2020 2019 2018
VCB 24.43 21.57 21.09 25.88 25.46
BIDV 19.06 12.70 8.90 12.66 14.23
AGR 21.95 16.13 14.55 17.46 10.64
VCB’s ROE increased slightly from 25.46 to 25.88 from 2018 to 2019, then decreased to 21.09
in the following year. VCB witnessed a margin increase to 24.43 in 2022. VCB has a higher
ROE compared to 2 competitors - BIDV and AGR. The higher the ROE, the more efficient
VCB’s management is at generating income and growth from its equity financing.
ROA 2022 2021 2020 2019 2018
VCB 1.85 1.60 1.45 1.61 1.38
BIDV 0.94 0.64 0.47 0.60 0.59
AGR 1.00 0.74 0.69 0.81 0.47
During 2018-2022, there was a slight fluctuation between 1.38 and 1.85 in VCB’s ROA which
was remarkably higher than BIDV and AGR’. The higher the ROA number, the better, because
VCB is able to earn more money with a smaller investment. Put simply, a higher ROA means
more asset efficiency.
NII 2022 2021 2020 2019 2018
VCB 53,246,478 42,399,617 36,285,475 34,577,350 28,408,516
BIDV 56,069,684 46,823,308 35,796,799 35,977,808 34,955,864
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AGR 60,189,542 47,041,165 43,660,623 42,660,644 40,877,317
VCB’s NII increased continuously from 28.408.516 to 53.246.478 during 2018-2022.

However, NII of VCB is lower than of the 2 competitors which indicates that the financial
institution of BIDV and AGR is earning more income from its interest-earning assets relative
to the cost of its interest-bearing liabilities. This can indicate a stronger financial position and
greater profitability.
NIM 2022 2021 2020 2019 2018
VCB 3.39 3.16 2.92 3.1 2.78
BIDV 2.93 2.92 2.45 2.63 2.85
AGR 3.4 2.92 2.95 3.18 3.39
VCB’s NIM increased from 2.78 in 2018 to 3.39 in 2022. VCB’s NIM is higher than BIDV and
lower than AGR. VCB is bringing in more money on the interest it earns on loans than it is
paying out in interest on bank deposits than BIDV. Contrarily, if interest rates rise, loans
become costlier, thus making savings a more attractive option, which consequently has a lower
net interest margins than AGR.
Provisions for loan losses (%) 2022 2021 2020 2019 2018
VCB 18.83 48.08 50.88 18.8 39.2
BIDV 31.05 52.3 29.88 18.09 9.69
AGR 6.51 41.4 23.66 44.84 -14.31
Provisions for loan losses of VCB decreased significantly from 39.2 in 2018 to 18.8 in 2019
and increased sharply to reach a peak at 50.88 in the following year. The next period witnessed
an extreme drop to 18.83 in 2022. PFLL of VCB is higher than of BIDV and AGR over the 5-
year period which means a greater ability VCB to face loan losses.
Loan loss provision ratio (%) 2022 2021 2020 2019 2018
VCB -0.83 -1.18 -1.04 -0.56 -0.7
BIDV -2.08 -2.68 -2.64 -1.71 -1.64
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AGR -2.04 -2.82 -2.33 1.76 -2.37
VCB’s loan loss provision ratio fluctuated between -0.56 and -1.18 during 2018-2022 which is
higher than BIDV and AGR’. VCB is better used to cover different kinds of loan losses such as
non-performing loans, customer bankruptcy, and renegotiated loans that incur lower-than-
previously-estimated payments.
Yield on earning assets (YOEA)
(%) 2022 2021 2020 2019 2018
VCB 5.61 5.27 5.56 06.06 5.47
BIDV 6.33 6.29 6.88 7.36 7.34
AGR 7.23 6.81 7.57 7.94 7.8
There is a slight increase in VCB’s YOEA from 5.47 in 2018 to 6.06 in 2019. Then, YOEA
fluctuated to 5.61 in 2022. BIDV and AGR has a higher YOEA than VCB which is preferred
and indicates that VCB is using its assets efficiently.
Earning assets/Total assets
(%) 2022 2021 2020 2019 2018
VCB 96.94 97.82 97.98 97.31 97.16
BIDV 98.6 98.59 97.25 97.44 97.82
AGR 99.24 99.21 98.34 97.94 98.1
VCB’s Earning assets/ Total assets increased slightly from 97.16 in 2018 to 97.98 in 2020 and
decreased remarkably to 96.94 in the following 2-year period. VCB’s ratio is lower than BIDV
and AGR’ which may indicate a poor use of assets and a need to either decrease VCB’s asset
costs or improve volume.
Cost Income Ratio (CIR)
(%) 2022 2021 2020 2019 2018
VCB 31.21 30.98 32.69 34.59 34.65
BIDV 32.42 31.15 35.36 35.86 36.23
AGR 36.15 39.93 44.99 41.49 45.31
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VCB’s CIR decreased from 34.65 in 2018 to 31.21 in 2022. BIDV and AGR have a higher CIR
ratio than VCB which means that VCB is running more profitably whereas a higher cost to
income ratio indicates BIDV and AGR operating expenses are too high.
Outstanding loans/Customer
deposits (%) 2022 2021 2020 2019 2018
VCB 73 75.53 70.09 65.84 63.79
BIDV 77.64 83.24 87.4 81.99 81.43
AGR 83 83.53 83.6 83.7 84.86
During 2018-2022, the outstanding loans to customer deposits of VCB increased from 63.79 to
73. VCB’s outstandings loans to customer deposits is lower than BIDV and AGR’ which
indicates that VCB may not be earning as much as it could be.
Outstanding loans/Total
assets (%) 2022 2021 2020 2019 2018
VCB 63.13 67.91 63.32 60.09 58.83
BIDV 71.78 76.89 80.06 74.97 75.3
AGR 77.06 77.62 77.41 77.35 78.48
VCB’s outstanding loans to total assets increased from 58.83 in 2018 to 63.13 in 2022.
However, VCB’s ratio is lower than BIDV and AGR’ which simply means that VCB has
decided to prioritize raising money by issuing stock to investors instead of taking out loans at a
bank.
Equity/Deposits from customers
(%) 2022 2021 2020 2019 2018
VCB 8.65 8.58 7.85 7.25 6.28
BIDV 5.31 5.3 5.73 5.7 4.49
AGR 5 4.83 05.03 5.16 4.91
VCB’s equity to deposits from customers increased significantly from 6.28 in 2018 to 8.65 in
2022. VCB’s ratio is higher than that of BIDV and AGR.
Equity/Total assets (%) 2022 2021 2020 2019 2018
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VCB 7.48 7.71 07.09 6.62 5.79
BIDV 4.91 4.9 5.25 5.21 4.15
AGR 4.64 4.49 4.66 4.77 4.54
VCB’s equity to total assets increased dramatically from 5.79 in 2018 to 7.48 in 2022 and is
much higher than BIDV and AGR’. VCB is likely to be financially sound and less reliant on
debt financing. As a result, VCB is better able to withstand financial shocks.
- Risk
o Interest rate risk in Banking book (IRRBB)
• Interest rate risk for a bank refers to the potential impact of changing interest rates on
the bank's profitability and financial stability. When interest rates fluctuate, it affects
various aspects of a bank's operations, including its earnings, asset and liability values,
and overall balance sheet. On the other hand, Net interest income, a crucial component
of a bank's revenue, reflects the difference between interest earned on its assets, such as
loans and investments, and interest paid on its liabilities, including deposits and
borrowings. The net interest income of Vietcombank is intricately tied to the bank's
exposure to interest rate risk. As interest rates fluctuate, the potential impact on net
interest income becomes a critical consideration for the bank's overall financial
performance.
• The composition of Vietcombank's assets and liabilities plays a pivotal role in
determining its vulnerability to interest rate risk. If the bank holds a significant portion
of fixed-rate loans or long-term assets, it could face challenges during periods of rising
interest rates. The interest income generated from these fixed-rate assets may not adjust
as quickly as the interest expenses on the bank's liabilities, potentially leading to a
compression in the net interest margin and a decline in net interest income.
• In this report, our group uses interest rate sensitivity to calculate the change in net
interest income of Vietcombank when there is a change of 100 basis point in interest
rae. Therefore, we need to calculate the bank’s rate sensitivity assets and rate sensitivity
43
liability.
Since interest rates on assets and liabilities do not fluctuate at the same rate, GAP is based on
the fluctuation of interest rates of rate sensitive assets and the interest rates of rate sensitive
liability, separately. However, due to the requirement of the report, this analysis is based on
parallel shift up assumption. Based on our group’s calculation, in 2022 Vietcombank witnessed
a negative GAP (-364,527), which indicated that the net interest income of Vietcombank in
2022 will decrease 3,645 million VND if there is a change of 100 basis point in interest rate.
o Liquidity Risk (LR)

• Liquidity risk is the risk generated when the bank fails to fulfill its repayment
obligations at due date; or the bank is able to fulfill its repayment obligations at due date
but has to pay a higher cost than the average market price according to Vietcombank’s
internal regulations. The framework for managing Vietcombank's liquidity risks is fully
operational and includes models, organizational management structures, a set of
documents and policies, processes, regulations, and overall limits for identifying,
measuring, supervising, and reporting risks in accordance with cutting-edge Basel
standards and best practices, as well as for strictly adhering to the rules on solvency and
liquidity ratios in banking operations set forth by the State Bank of Vietnam. Every year,
policies, procedures, thresholds, liquidity risk management instruments,... are reviewed
and revised to ensure they continue to meet Bank requirements as well as those of the
regulatory bodies.
• Therefore, in most of the year in this period Vietcombank successfully controlled
liquidity risk and the liquid coverage ratio resulted at 52,12% in 2022 as we calculated
44
using stock of high-quality liquid assets divided by total net cash flow. Since
Vietcombank’s liquid coverage ratio is above 50%, the bank has some protection against
short-term liquidity shocks, which can provide a measure of stability during stressful
times. Beside that, this number also shows that Vietcombank has an ability to cover
52.12% of its expected net cash outflow.
• On the other hand, the ratio of bank liquid reserves to bank assets is the ratio of domestic
currency holdings and deposits with the monetary authorities to claims on other
governments, nonfinancial public enterprises, the private sector, and other banking
institutions. By using high-quality liquidity assets divided by total liabilities, our
group’s measurement for LRR is 13.28% which complies with the liquidity reserve ratio
requirement (10%).
o Market Risk (MR)
• The bank's exposure to market risk is a critical aspect of its overall risk profile. Market
risk arises from changes in interest rates, exchange rates, equity prices, and other market
variables that can impact the value of the bank's assets and liabilities. It is also known
as systematic risk or non-diversifiable risk, as it affects the entire market and cannot be
eliminated through diversification. During the review period, the bank's market risk has
been notable due to its significant holdings in equities and fixed-income securities.
Fluctuations in stock prices have the potential to affect the bank's investment portfolio
and trading activities. Additionally, changes in interest rates can impact the valuation of
the bank's fixed-income assets and liabilities, leading to potential gains or losses.
• Firstly, in order to calculate market risk, we use the share price on the 3rd of August
which is 90,600 VND to identify the portfolio. As there are 1 million shares, the
investment has a value of 90,6 billion. Secondly, our group calculates the Delta which
refers to the gain that the portfolio makes when the share price increases by 1%.
Therefore, since the investor is 90,6 billion, the maximum amount of the portfolio’s gain
is 906 million.
Next step we gather the share price of the stocks from 1 January 2022 to 31 December 2022 to
calculate the gain and loss for historical scenarios in 2022. Therefore, we need to calculate the
change in price first, whose formula is price today, deducted price of previous then divided the
price of previous day.
45
• From this result, we can obtain the change in profit and loss for each scenario in 2022
by using the change in price multiplied by Delta then divided by 1%. From the
confidence level of 99% and the change in profit and loss for each scenario in 2022, the
value of value at risk (VaR) is 4,357 billion VND. This number means that for investors
who invest in this portfolio, they can be 99% certain that their daily maximum loss is
4,357 billion VND.
• While the bank's risk management practices are robust, it's important to note that market
risk can never be entirely eliminated. It's commendable that Vietcombank regularly
reviews and updates its risk models to ensure they reflect the current market
environment. Continued monitoring and adjustments to the bank's investment strategies
and asset allocation will be crucial to effectively navigate potential market disruptions
and optimize risk-adjusted returns
- Capital Adequacy-Risk Based Equity
Requirements:
1. Tier 1 capital must account for at least 4% of total risk-weighted assets
2. CAR must be at least 8%
Capital Adequacy-Risk Based Equity
- Ratio: 9.35% in 2022
• Satisfied the requirement of pillar 1 of Basel 2 (greater than 8%)
46
• Basically, Vietcombank has shown that it have enough capital for the risk
associated with its assets
Recommendation to management
• Compared to previous years, there was a decrease in the capital adequacy ratio
+) In terms of capital adequacy ratio, from the period of 2018 to 2021, CaR was greater
than 9% although there is a decrease. Then, it increased from 9.31%in 2021 to 9.35%
in 2022
2018 2019 2020 2021 2022
Capital 12,14% 9,34% 9,56% 9,31% 9.35%

Adequacy-Risk
Based Equity
+) Implication for management: this decrease does not mean the bank's capital
management become worse
+) In 2022, effect of Covid+ Ukraine-Russian conflict, unprecedented inflation
…
+) as a state-owned bank, Vietinbank has an obligation to support these
businesses through methods such as offering low interest rates on loans,
…
+) Vietcombank purposely hold less capital, accepting more risk.
→ The increase in ratio in 2022 does mean the bank is in better situation
- As the CAR of Vietcombank was greater than 8% (the minimum requirement), it
showed that Vietinbank had enough capital for the risk associated with its assets.
47
- However, compared to other banks, the ratio of Vietcombank was quite low. This might
be a problem as many might consider the bank not safe enough and withdraw their
deposits, choosing business with other banks → which may potentially make it harder
to raise capital for Vietcombank.
- Besides, Vietinbank successfully satisfied the three pillars of Basel 2. It has been shown
that by completing all 3 pillars, a bank can obtain many benefits, including lower
borrowing costs, more efficient capital allocation, long-term profitability, sound internal
processes, and many other benefits.
- Following the success, is the first bank approved by the State Bank to apply Basel II
according to the standard method according to Circular 41/2016/TT-NHNN (Pillar 1
and Pillar 3) from November 2018, during Recently, Vietcombank has actively
implemented initiatives to apply ICAAP (Internal Assessment Process of Capital
adequacy - Pillar 2) from July 2020 - early response to all 03 Pillars of Basel II .
Vietcombank should also increase the capital adequacy ratio in order to compete with
other banks and to boost its growth.
Appendices:
- CAR (capital adequacy ratio): a comparison of the available capital that a bank has on
hand to its risk-weighted assets. The ratio provides a quick idea of whether a bank has
enough funds to cover losses and remain solvent under difficult financial circumstances.
- Solvent: the degree to which the current assets of an individual or entity exceed the
current liabilities of that individual or entity, hence the ability of a corporation to meet
48
its long-term fixed expenses and to accomplish long-term expansion and growth - did
not match any documents.
4. Summary Analysis and Recommendation (include a critical analysis of the bank based
on all data gathered)
− The asset quality of Vietcombank is among the best in the entire banking system, as
evidenced by its high annual quality of guaranteed assets, tight risk-management
procedures, and secure securities portfolio in addition to its low indicators of bad debt
or troublesome assets. VCB is proving its profitability at the top of the sector and
outpacing other banks in EBT, despite the fact that it is not at the top in terms of asset
size or net interest margin (NIM).
− Despite having fewer years of operation than private commercial joint stock banks, the
bank has many unique advantages that have allowed it to rise and dominate retail
activities. The bank also holds the No. 1 position in foreign exchange payment and
trading activities, which will continue to have a positive impact on Non-NII growth.
− In terms of both individual and corporate payment services, VCB now occupies the top
spot. Due to the benefit of close connections with major export-import trading
companies and the substantial potential of foreign currency, payment services, trade
financing, and foreign exchange trading in particular will continue to make significant
financial contributions to the bank. VCB will face a long-term danger if its individual
customer payment services continue to show indicators of losing market share to private
banks.
− Despite currently holding the top spot in Vietnam's banking industry, we believe that
VCB's valuation is not secure enough for investment given the rising cyclical risks in
the industry.
− We believe that macroeconomic factors, as opposed to the bank's inherent operational
efficiency, pose the greatest risk to VCB. Numerous macro indicators have shown that
the Vietnam economy is currently in a late stage of the recovery cycle and is likely to
start a downturn in 2020, which will have a significant influence on the whole banking
industry. However, as the experience has shown, banks with high asset quality will seize
opportunities to break through after each of these phases, as did VCB.
− From an investment perspective, VCB still has some dynamics at work, such as the
anticipation of finding a bancassurance partner or the mobilization of funds from
strategic investors, even in the short term.
− Vietcombank consistently participates in social welfare efforts in addition to economic
activities, demonstrating the social responsibility of a major brand. With a promise of
49
roughly VND 662 billion in total for social security programs in 2021, Vietcombank
has also made a donation of VND 381 billion toward the prevention and management
of the COVID-19 pandemic. A number of initiatives have been put in place by
Vietcombank with the goal of assisting, rewarding, and showing gratitude to the medical
personnel and other frontline combatants of the epidemic.
− Vietcombank's BOD and BOM anticipate relying on the support and unity of close to
22,000 employees throughout the system, the increasingly solid companionship and
cooperation of millions of valued customers, and tens of thousands of shareholders in
order to successfully complete the set goals and strategic orientations.
− Despite continuing to encounter unexpected socioeconomic circumstances,
Vietcombank has worked to successfully adopt “multi-purpose” policies: not only did
Vietcombank successfully avert the COVID-19 pandemic by ensuring employee health
and safety, but it also shared difficulties with customers while ensuring business
continuity. In 2021, Vietcombank’s business activities continued to produce significant
results, completing given tasks and targets thoroughly and excellently.
** Recommendations for risk management
− In order to manage interest rate risk, Vietcombank should raise awareness for not only
employees and directors but also the customers specially enterprise customers. Firstly,
interest rate risk management is still an issue that the bank's staff does not really
understand. Therefore, the identification, assessment and prevention of interest rate
risks still have many limitations that need to be overcome. With the current situation of
constantly fluctuating market interest rates, measuring the loss caused by interest rate
risk is an important and extremely urgent issue. In order to determine the level of loss
caused by interest rate changes, the bank must calculate how interest rate risk affects
the bank's net income and asset value in order to offer reasonable solutions. hedge
against interest rate risk. To do this, the bank's staff must really understand the
management of interest rate risks such as managing capital, assets, especially capital
and assets that are sensitive to the bank's interest rates.
− Not only improving the level of interest rate risk management for all bank staff, but the
bank's leadership also has to improve their understanding of interest rate risk
management. Deciding on interest rate risk strategies, setting limits on all interest rate
risk positions and derivatives transactions, checking strategy and monthly interest rate
risk management requires you to master both the theory and the volatility of current
interest rates. Therefore, the management must clearly understand the techniques for
determining interest rate risk, constantly learn new advances in interest rate risk
50
management to make timely decisions in the face of fluctuations in interest rates
capacity. At the same time, the management must also monitor and supervise the
implementation of the bank's interest rate risk in the most general way, providing that
the interest rate risk is at a manageable level and with an appropriate source of finance
aid. Beside that, customers (especially corporate customers) should also pay more
attention to interest rate risk as management and bank staff improve their understanding
of interest rate risk. For corporate customers, interest rates have a huge impact on
business activities because working capital is usually borrowed from banks. Currently,
most businesses are quite unfamiliar with banking derivatives, so businesses need to
update, learn and understand to be able to apply them in practice to minimize interest
risk. impact on its business
− -About the liquidity risk, Vietcombank should improve the quality of credit. Credit is
an activity that creates a huge demand for liquidity, and at the same time, when credit
quality is low, liquidity risk will increase, so the issue of improving credit quality must
be raised as an urgent requirement. In order to improve credit quality, it is required that
the Bank implement a series of synchronous solutions, in which it is necessary to focus
on strengthening the inspection and control of all business activities, especially focusing
on controlling credit operation and improving the quality of credit appraisal.
− To manage Capital Adequacy-Risk Based Equity, Vietcombank should develop capital
mobilization plans in the short, medium and long term to increase the scale of equity
capital. Vietcombank's CAR ratio above 9% does not mean that it brings safety to the
system, while in most countries the CAR ratio of banks is usually at 12%. Therefore,
Vietcombank should calculate not to pay dividends and retain all after-tax profits. This
measure is completely reasonable because shareholders must be the first responsible for
ensuring high capital adequacy for their banks, when the bank lacks capital,
shareholders are not allowed to distribute profits. Capital can be supplemented through
other sources, such as: raising more equity from existing shareholders, domestic and
foreign private investors or raising capital from outside by issuing stocks to help
increase capital. Beside that, a good and reliable database is a fundamental factor for a
successful technology system at each bank. Therefore, Vietcombank needs to build and
perfect a database system to ensure the standardization of published information,
thereby speeding up the process of meeting technology standards, minimizing risks
related to information disclosure. Non-transparent information leads to errors in the
analysis and evaluation process. In addition, Vietcombank also needs to review and
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standardize data, especially information about customers, collateral needs to be stored
for 3-5 years and bad debt data must be stored for 5-7 years.
References:
1. (n.d.). Vietcombank. https://portal.vietcombank.com.vn/content/en-
us/Investors/Investors/Annual%20Reports/Year%202021/20220906_BCTN2021_Ma
quette_English.pdf
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BM1 G1 VCB

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GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS AND CONTRIBUTION RATE

UNIT AND TUTORIAL DETAILS

Group Project Report - BM1 – G1 – VCB

2. Introduction and Overview A comprehensive introduction about the bank such as

Vietcombank has consistently received votes from esteemed international organizations as

CURRENT EVENTS AND ECONOMIC OUTLOOK

PRODUCTS AND PRICING

Abbrevia License to operate Field Capital Ownership

Joint venture VBB No. 2458/GP dated Lease 410,36 52%

Joint venture VCB No. 283/GP dated Lease 11,11 16%

- The government facilitates strategic development for the banking sector:

- The Government's policy in restricting the use of cash in payments promotes

+) In order to develop socio-economic, limit inflation, and create a habit of non-cash

- The mobile application has many limitations:

- The law on borrowing is becoming more and more transparent

• The Government issued Decision No. 1813/QD-TTg on the project of

- Vietnam integrates deeper and wider into the world economy:

VCB 5.821 4.195 4.470 4.481 3.584

BIDV 3.125 1.729 1.447 2.163 1.634

P/E (Times) 2022 2021 2020 2019 2018

VCB 12.63 13.33 19.68 18.06 13.18

BIDV 10.75 14.19 27.54 19.4 15.98

P/B (Times) 2022 2021 2020 2019 2018

VCB 2.79 2.68 3.86 4.14 3.1

BIDV 1.87 2.17 2.42 2.39 2.16

ROE 2022 2021 2020 2019 2018

VCB 24.43 21.57 21.09 25.88 25.46

BIDV 19.06 12.70 8.90 12.66 14.23

AGR 21.95 16.13 14.55 17.46 10.64

ROA 2022 2021 2020 2019 2018

VCB 1.85 1.60 1.45 1.61 1.38

BIDV 0.94 0.64 0.47 0.60 0.59

AGR 1.00 0.74 0.69 0.81 0.47

NII 2022 2021 2020 2019 2018

VCB 53,246,478 42,399,617 36,285,475 34,577,350 28,408,516

BIDV 56,069,684 46,823,308 35,796,799 35,977,808 34,955,864

VCB’s NII increased continuously from 28.408.516 to 53.246.478 during 2018-2022.

NIM 2022 2021 2020 2019 2018

VCB 3.39 3.16 2.92 3.1 2.78

BIDV 2.93 2.92 2.45 2.63 2.85

AGR 3.4 2.92 2.95 3.18 3.39

VCB 18.83 48.08 50.88 18.8 39.2

BIDV 31.05 52.3 29.88 18.09 9.69

AGR 6.51 41.4 23.66 44.84 -14.31

VCB -0.83 -1.18 -1.04 -0.56 -0.7

BIDV -2.08 -2.68 -2.64 -1.71 -1.64

VCB 5.61 5.27 5.56 06.06 5.47

BIDV 6.33 6.29 6.88 7.36 7.34

AGR 7.23 6.81 7.57 7.94 7.8

VCB 96.94 97.82 97.98 97.31 97.16

BIDV 98.6 98.59 97.25 97.44 97.82

AGR 99.24 99.21 98.34 97.94 98.1

VCB 31.21 30.98 32.69 34.59 34.65

BIDV 32.42 31.15 35.36 35.86 36.23

AGR 36.15 39.93 44.99 41.49 45.31

VCB 73 75.53 70.09 65.84 63.79

BIDV 77.64 83.24 87.4 81.99 81.43

AGR 83 83.53 83.6 83.7 84.86

VCB 63.13 67.91 63.32 60.09 58.83

BIDV 71.78 76.89 80.06 74.97 75.3

AGR 77.06 77.62 77.41 77.35 78.48

VCB 8.65 8.58 7.85 7.25 6.28