continued to develop steadily. As of December 31, 2010, Agribank's total assets reached VND534,987 billion; total capital reached VND474,941 billion; total outstanding loans to the economy reached VND414,755 billion. Agribank continued to invest in information technology systems, build a solid foundation to successfully apply modern banking products and services, create competitive advantages, and increase the rate of non-credit revenue. In 2010, Agribank reached the Top 10 of the 500 largest enterprises in Vietnam. The Board of Directors of Agribank has issued and implemented a new Charter on the organization and operation of Agribank, replacing the Charter issued in 2002. Also in 2010, Agribank was granted an additional VND 10,202.11 billion by the Government, raising Agribank's total charter capital to VND 21,042 billion, continuing to be the financial institution with the largest charter capital in Vietnam.
In 2011, in the context of fluctuations in the world economy, holding the role of a State-owned commercial bank, the largest financial institution in the Vietnamese credit institution system. In 2011, Agribank continued to develop steadily: total assets reached
562,245 billion VND, up 5.1% compared to the end of 2010; total capital reached 505,792 billion VND; total outstanding loans reached 443,476 billion VND, up 7% compared to the end of 2010; basic business safety ratios were guaranteed, bad debt ratio in the last months of the year gradually decreased.
In 2012, the domestic socio-economic situation continued to face many difficulties and challenges: the world economy recovered slowly, export markets and investment attraction have not escaped the state of decline; the macro economy is not really stable, inflation still has the potential to increase again, weaknesses in economic structure, growth model and the process of economic restructuring still have many difficulties; bad debt in the banking system increased, inventory of goods, especially real estate inventory is still large; production, business and job creation are difficult, people's income decreased, the number of enterprises having to reduce scale, stop operating, dissolve is still large... That situation has greatly affected the business activities of Agribank, however, with the consensus in the direction of the Board of Directors and the efforts of all staff, at the end of the fiscal year 2012, Agribank achieved the following results:
- Agribank's total assets reached more than 617,000 billion VND (equivalent to 20% of GDP), an increase of 10% compared to 2011, making it the commercial bank with the largest total assets, followed by BIDV, Vietinbank and Vietcombank.
- Mobilized capital grew quite well, meeting capital needs for business expansion and ensuring liquidity safety: reaching 540,000 billion VND, up 21.5% compared to 2011.
- Total outstanding loans reached 480,453 billion VND, an increase of 8% compared to the end of 2011. Bad debt of the whole system was 5.8% of total outstanding loans, achieving the target set for 2012 of under 6%.
- Payment service performance continued to be stable and developed: total service revenue reached 2,400 billion VND, down 7.7%; non-credit revenue ratio reached 9.4%, up 0.7% compared to 2011.
- Pre-tax profit reached over 4,300 billion VND, down 10% compared to 2011.
- Most financial indicators are guaranteed according to regulations: minimum capital safety ratio is over 9% (minimum regulation is 9%); payment safety ratio is over 16% (minimum regulation is 15%); the ratio of medium and long-term capital used for short-term loans is only 21% (maximum regulation is 30%).
2.1.3. Development orientation of Agribank
Since its establishment, Agribank has always affirmed its role as the largest commercial bank, playing a leading and pivotal role in the country's economy, especially in the fields of agriculture, farmers and rural areas. In recent years, Agribank has also been known as a multi-functional retail bank providing convenient and modern products and services.
In the context of increasingly deep global economic integration and facing fierce competition in the financial-banking sector, Agribank persistently determines its goals and development orientation towards becoming a strong, modern, prestigious financial-banking group in the country, reaching out to the regional and world financial markets.
In 2013 and the following years, Agribank has determined the general goal of continuing to maintain and promote its role as a leading commercial bank, a pillar in capital investment for the national economy, and a key player in the financial and monetary market in rural areas. To continue to maintain its position as a leading bank providing convenient, modern, high-quality products and services to meet the needs of a large number of customers, while increasing non-credit revenue, it is necessary to constantly focus on innovation and strong development of banking technology in the direction of modernization.
2.2. BUILDING A RESEARCH MODEL ON FACTORS AFFECTING AGRIBANK'S BRAND VALUE
2.2.1. Reasons for choosing the research model
Brand equity plays an important role in building and developing a brand. The success of a brand depends on the level of value that consumers perceive.
Reviewing studies on factors affecting brand value in different fields and countries, we can see that Aaker's model (1991) has been accepted by many researchers and is commonly used in determining the level of influence of factors on brand value based on customers in different fields and countries. Most studies have verified that the factors in the Aaker model have an impact on brand value. This also shows that brand value will depend on four main factors: brand awareness, brand association, perceived quality and brand loyalty. This is also the basis the author chooses to analyze the factors affecting the brand value of the Vietnam Bank for Agriculture and Rural Development.
The study found four factors affecting Agribank's brand value, in which the dependent variable is Agribank's brand value and the independent variables include the following:
- Brand awareness
- Brand association
- Perceived quality
- Brand loyalty
Therefore, the research model is shown in the following figure:
Quality
feel
Recognize
trademark
Association
trademark
Loyalty
wall
BRAND VALUE
Figure 2.1: Hypothetical model of factors affecting Agribank's brand value
(Source: Aaker (1991) )
2.2.2. Hypothesis on factors affecting Agribank's brand value
2.2.2.1. The relationship between brand awareness and brand value of Agribank
Hypothesis H1 : If customers' brand awareness of Agribank's brand is high or low, their assessment of Agribank's overall brand value will also be high or low.
2.2.2.2. The relationship between brand association and brand value of Agribank
Hypothesis H 2: If customers' brand association with Agribank's brand is high or low, their evaluation of Agribank's overall brand value will also be high or low.
2.2.2.3. The relationship between perceived quality components and Agribank's brand equity
Hypothesis H3 : If customers' perceived quality of Agribank's brand is high or low, their assessment of the overall brand value of Agribank will also be high or low.
2.2.2.4. The relationship between brand loyalty and Agribank brand value
Hypothesis H4 : If customers' brand loyalty towards Agribank's brand is high or low, their assessment of Agribank's brand value will also be high or low.
With 4 hypotheses set out based on the actual research situation, the proposed research model is:
Awareness
trademark
H1
Association
trademark
H2
Quality
feel
H3
Loyalty
wall
H4
Brand value of Agribank
Figure 2.2: Research model according to hypotheses
2.3. RESEARCH METHODS
The research methods and techniques are described in Table 2.1. The qualitative and quantitative research processes are described in Figure 2.3.
Table 2.2: Research steps
Step
Method | Technique | Time | |
1 | Qualitative research | -Group discussion (n=10) - In-depth interview with customers (n=20) | 02/2013 to 03/2013 |
2 | Quantitative research | Questionnaire interview (n=300). Data processing and analysis | 04/2013 to 07/2013 |
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(Source: Author's analysis)
Draft scale 1
Group discussion: adjustment (n = 10)
Theoretical basis and research results
Qualitative research
Draft scale 2
In-depth customer interviews (n = 20)
quantity
Scale
official
Coding, data entry, data cleaning Descriptive statistics
Cronbach alpha analysis EFA factor analysis Linear regression
ANOVA analysis
Official quantification (n = 300)
Research definition
Conclusion and recommendations
Figure 2.3: Research process
2.3.1. Qualitative research
Qualitative research to explore, adjust and supplement observed variables used to measure research concepts. This method was carried out in Ho Chi Minh City from February 2013 to March 2013 through focus group discussion and in-depth interview techniques.
- Step 1: Conduct one-on-one discussions with 10 people who are specialists working in the Service and Marketing and Customer Relations departments at banks.
different commercial banks including: ACB, Agribank, Eximbank, HDBank and Sacombank to study the brand value of the bank, build a draft scale, and prepare a discussion outline in advance (see Appendix 1). The purpose of the group discussion is to explore the factors affecting the brand value of Agribank, the observed variables in each specific group of factors, on that basis, adjust and supplement the observed variables and scales of these factors.
The results of this study are the basis for the author to develop a draft scale used in the in-depth interview phase.
- Step 2: Conduct in-depth interviews with 20 random individual customers who are using Agribank's products and services to evaluate the content and format of the questions in the draft scale to complete the official scale for the official quantitative research in the next section. The purpose of the in-depth interviews is to detect factors that affect Agribank's brand value and adjust the scale to suit the specific brand value of Agribank.
Qualitative research results
The results of the qualitative study have been adjusted, repositioned and supplemented as necessary to suit the scope of this study. The adjusted scales are presented in Table 2.2.
Table 2.3: Scale after calibration
Factor
Preliminary scale | Calibration scale | |
Brand awareness | - I can recognize the Agribank logo. - I can read the slogan of Agribank. - Agribank is the brand that comes to mind first when I think of banking brands. - I can distinguish Agribank | - I can recognize the Agribank logo. - I can read the slogan of Agribank. - When it comes to banks, Agribank is the first brand that comes to mind. - I can distinguish |