Analysis of competitiveness of Asia Commercial Bank, Can Tho branch

REFERENCES 107

APPENDIX 1 108

APPENDIX 2 113

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LIST OF TABLES

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Page 1: SWOT Matrix 20

Table 2: Business performance of bank 27

Table 3: Bank's operational objectives in 2008 29

Table 4: Capital situation of bank 30

Table 5: Capital mobilization situation of banks 31

Table 6: Assessment of credit performance of banks 35

Table 7: Financial indicators to evaluate profitability 39

Table 8: Assessment of bank liquidity 40

Table 9: Qualifications of bank staff 43

Table 10: Customers' approach to banking products 45

Table 11: Time customers spend transacting with banks 47

Table 12: Reasons why customers choose to transact with banks 47

Table 13: Statistics on customers using bank products 49

Table 14: Occupational survey compared to age 50

Table 15: Age affects deposit habits 50

Table 16: Age affects loan demand 51

Table 17: Assessment of customer satisfaction with banking services 51

Table 18: Factors that customers are not satisfied with 52

Table 19: Market share of capital mobilization and lending of credit institutions in Can Tho 55

Table 20: ACB Can Tho's financial situation compared to competitors in 2007 ..57 Table 21: ACB Can Tho's distribution network compared to competitors in 2007

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Table 22: Products for individual customers at ACB Can Tho and competitors

picture 58

Table 23: Products for corporate customers at ACB Can Tho and competitors

competition 61

Table 24: Market share of capital mobilization and lending of ACB Can Tho compared to competitors in 2007 63

Table 25: Statistics on the number of employees at ACB Can Tho and competitors in 2007 64

Table 26: Staff qualification structure of ACB Can Tho and competitors in 2016

2007 65

Table 27: Evaluation of banks' websites 66

Table 28: VND deposit interest rates at banks 68

Table 29: USD deposit interest rates at banks 68

Table 30: Gold mobilization interest rates at banks 68

Table 31: Weekly term deposit interest rates in VND at ACB and SACOMBANK 69

Table 32: Weekly term deposit interest rates in USD at SACOMBANK 69

Table 33: Loan interest rates at banks 70

Table 34: Service fees at banks 70

Table 35: Customer reviews of ACB Can Tho and competitors 71

Table 36: Competitive Image Matrix 72

Table 37: Savings interest rates of Post Office and ACB Can Tho 80

Table 38: Economic development situation in Can Tho city 81

Table 39: Aquaculture situation in Can Tho city 82

Table 42: SWOT Matrix 92

LIST OF DIAGRAMS

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Page

Diagram 1: Diagram of the main contents that need to be analyzed about competitors 12

Figure 2: Diagram of Michael E. Porter's five forces model 15

Diagram 3: Organizational chart of Asia Commercial Bank Can Tho 24

LIST OF CHARTS

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Page Chart 1: Chart of bank's business performance 29

Chart 2: Bank capital chart 31

Chart 3: Chart of capital mobilization situation of bank 33

Chart 4: Chart of capital structure of bank 34

Chart 5: Chart of professional qualifications of bank employees 44

Chart 6: Chart of customers' access to banking products 46

Chart 7: Chart of reasons why customers choose to transact with banks 48

Chart 8: Customer satisfaction rating chart 52

Chart 9: Chart of factors that customers are not satisfied with when making transactions 53

Chart 10: Market share chart of capital mobilization and lending of ACB Can Tho and its partners

2007 63

Chart 11: Chart of staff qualifications of ACB Can Tho and its competitors in 2007 65

Chart 12: Chart of retail sales in Can Tho city 84

Chart 13: Chart of inflation situation in Vietnam 86

LIST OF ABBREVIATIONS

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

Joint Stock Commercial Bank

ACB Asia Commercial Bank

Commercial Bank Commercial Bank

DVNH Banking services

State Bank of Vietnam

TCBS The Complete Banking Solution

SCB Sacombank

EXB Eximbank

VCB Vietcombank

Stock Market Stock Market

Real Estate Real Estate

Mekong Delta Mekong Delta

Credit institutions

CIC Credit Information Center

SUMMARY OF CONTENT

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

The concept of banking is no longer strange to the people of the Mekong Delta in general and the people of Can Tho in particular. Along with the economic development speed of the city, the banking industry is also making the strongest progress in the current period with the network of bank branches covering the whole area. With such development, competition between banks to gain market share is inevitable, especially in the current integration period when foreign banks have enough conditions to establish branches in Vietnam, the problem of competition between banks is becoming more and more fierce. The ACB brand is a strong brand in the market and ACB Can Tho is the only branch representing the bank in Can Tho city. After nearly 12 years of operation, the branch has made certain contributions to the development of the city and is a reliable address for customers to come and do transactions. However, in the context of fierce competition as today when more and more new banks are established to provide customers with convenient products and competitive prices, ACB Can Tho's market share is being seriously threatened and the bank needs solutions to improve its competitiveness. The topic "Analysis of the competitiveness of Asia Commercial Bank - Can Tho Branch" will solve the above problem.

The topic focuses on analyzing three environments that govern the bank's business activities: internal environment, operational environment and macroeconomic environment.

- For the internal environment: the topic uses the CAMEL analysis method to evaluate the bank's resources in terms of capital scale, asset quality, management capacity, profitability and liquidity of the bank. In addition, combine analysis of other factors such as human resources, technology, distribution network to find the strengths and weaknesses of the bank. The results show that the bank's current greatest strength is modern technology and the biggest weakness is the distribution network is not widespread. Therefore, in the near future, the bank needs to continue to take advantage of its technological strengths to launch more new products, streamline transaction procedures to better serve customers. In addition, expanding the branch network

Branches and transaction offices to increase market share is a must in this period.

competition today.

- For the operating environment: the topic uses Michael E. Porter's five-force model to analyze current competitors, customers, potential competitors, suppliers and substitute products.

+ Current competitors: Sacombank and Eximbank are considered the two fiercest competitors with the bank in the current retail sector. Analysis of current competitors focuses on the following points: analysis of development strategy, financial factors, distribution network, product diversity, market share, quality of human resources, pricing policy, marketing and advertising activities and customer reviews. On that basis, establish a Competitive Image Matrix to compare the bank's competitiveness with its competitors. The results show that Sacombank is showing more advantages than other banks in the current retail sector such as rapidly increasing market share, widespread network and quick procedures. Particularly for Eximbank, this bank is showing to be weaker than Sacombank and ACB, but thanks to its widespread distribution network, it will be an opportunity for the bank to increase customer access, thereby expanding its market share. This is something that ACB Can Tho should pay close attention to avoid losing market share to competitors.

+ Customers: this is considered a vital factor for the bank's business activities. Banks always try to satisfy customers, but assessing customer satisfaction is not easy. The topic uses a questionnaire to survey customers' opinions on the bank's products and services. At the same time, SPSS software is used to synthesize the collected information. The processing results show that the majority of customers are satisfied when transacting with the bank (accounting for 77.3%), in which the factors highly appreciated by customers are reputation, enthusiastic service style of staff and diverse products. However, there are still some points that customers are not satisfied with, such as slow transaction procedures, and a not-so-wide network, which causes customers to waste a lot of time when transacting with the bank.

+ Potential competitors: Potential competitors appear more and more because the factors preventing industry penetration are relatively low and the ability of banks in the industry to retaliate is not high. Currently, competitors

Analysis of competitiveness of Asia Commercial Bank, Can Tho branch - 2

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