competition because thanks to modern technology, banks are able to provide customers with new services that are highly differentiated and very difficult to imitate (sometimes becoming banking technology secrets), can provide services that are more consistent and have fewer errors.
1.3.5. Quality of human resources
Banking is a service industry, so it can be said that the quality of human resources is an important factor, creating the competitiveness of commercial banks in the process of operation. Because employees are the ones who directly implement the business strategies of the bank; In the process of direct transactions with customers, bank employees are the main "existence" of the service that can increase the value of the service as well as reduce, even damage the value of the service; Most of the ideas for improving services or providing services are proposed from the practical activities of employees; They are the main force that conveys market signal information from customers, from competitors to the bank's policy makers.
1.4. Experience in enhancing the competitiveness of some world banks towards Vietnamese commercial banks
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New Manifestations of Use Value and Value in the Process of Improving the Competitiveness of Goods in the Modern Market
1.4.1. Lessons learned from CitiGroup
Citigroup, headquartered in New York, was formed from the merger of Travelers Group (a famous card company) with Citibank (the largest retail bank in the US - founded in 1812) to become the world's leading banking and financial group today. Some of Citigroup's operational experiences are:
Expanding branches and headquarters in many countries: Citigroup is the world's largest financial and banking services corporation. Citigroup currently has over 3,400 branches and headquarters in 100 countries, providing jobs for more than 160,000 employees worldwide with about 200 million customer accounts.
Diversifying products and services: Citigroup's service activities include two main groups: personal banking services (Citibank's Global Consumer Bank - providing
provides customers with a complete suite of personal banking services, including personal and business mortgages, personal loans, credit cards, deposit and investment accounts, Visa TravelMoney and international investment banking. Life insurance and managed funds are provided through Citibank's subsidiary, Citicorp Life); Citibank Global Corporate Banking - meets the comprehensive financial needs of major Australian corporations, multinational companies, and financial institutions CitiDirect Online - is a global Internet-based banking service that helps customers access all transaction products that Citibank offers, from cash, trade transactions, securities and foreign exchange. Through this system, customers have global access, real-time processing with absolute security, simple procedures and online technical support; Citibank Online Investments - is an online investment service that will help customers who are businesses and organizations manage their cash resources and investment situation, quickly consult market prices, and register to invest in a series of products from Citibank branches across all continents. With the goal of Citibank expanding banking to wherever customers are, the majority of Citibank customers can use remote transactions to meet their needs. their CitiPhone Banking, Citibank's 24-hour, 7-day, 1-week phone banking, Citibank's Internet Banking. In addition, Citibank Website provides general rates, product information, news and sports. Customers can comfortably and conveniently conduct online banking transactions, which is one of the most rich and user-friendly websites.
Need for technological innovation: The success in providing diverse products and services cannot be mentioned without Citibank's rapid and timely innovation of modern technology. Citibank has pioneered electronic banking technology by introducing e-banking and a website that provides a series of online services. With the goal of leading in meeting the needs of online banking as well as meeting credit card transactions, Citibank knows that they need a solid infrastructure network on a modern technology platform. In particular, the company wants to
Adding more services, more storage capacity, and a better and more responsive network have helped Citibank increase its transaction volume and outpace its competitors.
Creating products that do more than just what they are designed for: In addition to being a leader in providing a wide range of services, Citibank has built its reputation on a focus on new, innovative and flexible products based on a deep understanding and understanding of customer needs. Products that do more than what they are designed for. There is Business Power, a two-in-one offering that provides flexibility to connect personal and business finance for small and self-employed business owners. There is Mortgage Minister Credit Card, a revolving card that allows customers to prepay their rent for 17 years; Mortgage PLANS, a revolving credit card for mortgages. There is Photocard, a card with the security of identification that only a photo can provide, whose features are more valuable than its financial value. In addition, Citibank enhances its leading position to establish a new form of business
International Process Solutions . This joint venture provides a full range of agency services to corporations and insurance companies through the processing of remittances and collections. As the global market becomes increasingly competitive, innovation and reform are critical to survival. Citibank's ability to leverage its extensive global network and international expertise in financial services products over many years has earned the trust of all clients and has contributed significantly to Citigroup's global leadership position over the years.
1.4.2. Lessons learned from HSBC bank
HSBC is now one of the world's leading banks in terms of both scale and operational efficiency. HSBC positions its brand through the message "A global bank with local insights". That is why HSBC has "discovered and
harnessing diversity from employees and customers”, through which HSBC has done everything to impress with a different image. That difference is respecting and promoting diversity, which is central to HSBC's brand, a way to enhance its competitive position. HSBC's view on diversity comes from the perception that the world is a place full of diverse, interesting cultures and people, with much to learn, on both sides: employees and customers. An organization with diverse employees brings a more balanced and complete organization, making it easier to adapt to new circumstances, while respecting diversity in employees is the basis for discovering potential employees and promoting their untapped skills, a direct path to achieving business goals. An organization that appreciates the diversity of the markets in which it operates will help it attract, understand and retain customers by providing the best possible service to those customers.
The second experience is to pay attention to competitive advantages. The key is to provide low-cost services: HSBC has established a secondary company to provide low-cost services (First Direct), based on the concept that banking and financial services are to serve all customers with needs, from the common to the high-end. The secondary company provides customers with a number of products via the Internet such as term deposits, savings accounts and insurance.
The third tip is to focus on location advantages when placing ATMs: First Direct customers are more loyal to its ATM network than HSBC customers, even though both groups of customers use the same ATM system. Even if HSBC customers demand ATMs on every street corner, First Direct customers do not need as many machines, they just need ATMs in visible places.
1.4.3. Lessons learned from Bank of American
Need for professional staff : Banks understand that making their employees more competent will increase revenue and customer satisfaction, so the Bank is committed to creating a working environment based on the spirit of
learn.
Taking customers as the target in all activities: From establishing a business model with customers as the center of the Bank, easy access to Bank information through a team of employees who can use local languages; combined with a strong global network; to consolidating information on cash management, trade finance through a single one-stop transaction at the Bank to solve problems more conveniently for customers. A more special thing in the issue of customer contact and consultation is that Bank of American's employees are trained in a very special consulting class, looking at customers' thoughts and needs before introducing what the bank has.
Another lesson learned from Bank of America is to always look for partners to combine or merge to increase financial capacity as well as the advantage of the partner's distribution system to bring optimization to itself. The merger between Bank of America and Merrill Lynch is a typical example. This merger has created a powerful financial group in the world with over 20,000 advisors and 2.5 trillion in total assets.
CONCLUSION OF CHAPTER 1
In chapter 1, the thesis presented some concepts of competition, competitiveness in general and competitiveness of commercial banks in particular, competitive characteristics in the banking sector as well as factors affecting the competitiveness of commercial banks.
Typical theoretical models of competitiveness, criteria for evaluating the competitiveness of a commercial bank such as: financial capacity; products, services; management capacity, technological capacity, and human resource quality. In addition, the thesis also studies the experience of improving the competitiveness of some banks in the world such as Citigroup, HSBC, Bank of America.
From the theoretical model of competitiveness, in which Michael Porter's model is inclined towards the competitiveness of enterprises in general, while Victor Smith's competitive theory talks about the factors affecting the competitiveness of specific subjects, namely commercial banks. Therefore, from Victor Smith's theory, the author has a research model of indicators to evaluate the competitiveness of commercial banks as a basis for investigation, field survey, data collection and analysis using SPSS software.
19.0 in chapter 2.
CHAPTER 2: ASSESSMENT OF COMPETITIVENESS OF JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
2.1. Overview of Joint Stock Commercial Bank for Foreign Trade of Vietnam
2.1.1. Formation and development process
The Bank for Foreign Trade of Vietnam officially opened on April 1, 1963 as a state-owned commercial bank under Decision No. 115-CP 1 on the basis of separation from the Foreign Exchange Management Department under the Central Bank (now the State Bank).
Before 1988, this was the first and only specialized bank in Vietnam operating in the foreign economic sector with the task of lending to finance import and export and other foreign economic services (transportation, insurance, etc.), international payment, foreign exchange trading, managing foreign currency deposits at foreign banks, acting as an agent for the Government in payment, borrowing, and aid relations with (former) socialist countries. In addition, the bank also has the function of advising the SBV's Board of Directors on foreign currency, gold and silver management policies, managing the State's foreign currency fund and relations with the Central Banks of other countries and international monetary and financial organizations.
With Decision No. 403-CT of the Council of Ministers dated November 14, 1990, the Bank for Foreign Trade of Vietnam moved from its monopoly role in foreign exchange trading to a free competitive environment with other commercial banks including foreign bank branches and joint venture banks. This created a more suitable and effective operating mechanism with the policy of transition from a centrally planned economy to a socialist-oriented market economy.
On September 21, 1996, the Governor of the State Bank signed Decision No. 286/QD-NH5 on re-establishing the State Bank under the model of a State Corporation as prescribed in Decision No. 90-TTg dated March 7, 1994 of the Prime Minister with the international transaction name of Bank for foreign trade of Vietnam.
1 Decision 115-CP issued by the Government Council on October 30, 1962 on the Establishment of the Foreign Trade Bank of the Democratic Republic of Vietnam.
(abbreviated as Vietcombank), is ranked by the State as one of 23 special enterprises.
On December 26, 2007, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) was established on the basis of equitization of the Bank for Foreign Trade of Vietnam through the initial public offering of shares at the Ho Chi Minh City Stock Exchange under the policy of "reforming and rearranging the system of state-owned enterprises" 2 . With changes in modern banking management according to international practices, expanding business types, developing modern banking products and services, and investing in technology, it will create conditions for the Bank for Foreign Trade to
Vietnam aims to become one of the leading multi-functional financial groups in the region in the period 2015 - 2020.
On June 2, 2008, the Bank for Foreign Trade of Vietnam officially began operating as a joint stock company with the State holding 90.72% of shares, marking an important step in the bank's development history. On June 30, 2009, Vietcombank shares (stock code VCB) were officially listed on the Ho Chi Minh City Stock Exchange.
In September 2011, Vietcombank signed a strategic shareholder agreement with Mizuho Corporate Bank Ltd. to own 347.6 million new common shares of Vietcombank at VND34,000/share and provide Vietcombank with technical support services in many business activities. This service includes sending experts and providing training services to Vietcombank as well as bringing opportunities for cross-selling cooperation between the parties. Mizuho's investment in Vietcombank is expected to help Vietcombank maintain its leading position in the Vietnamese market, expand to the international market and achieve the goal of being among the 70 largest financial groups in Asia outside Japan before.
2 The IPO of the Bank for Foreign Trade of Vietnam on December 26, 2007 was considered the largest and most anticipated IPO in Vietnam up to that time. This was also the IPO that attracted the largest number of investors in the history of IPOs in Vietnam with more than 9,400 investors participating in the auction. As a result, 8,792 investors won the auction, including 146 domestic organizations, 37 foreign organizations, 8,411 domestic individuals and 198 foreign individuals.