History of Formation and Development of Vietnam Joint Stock Commercial Bank for Industry and Trade

Second , focus on exploiting and targeting small and medium -sized enterprise customers, individual customers, and pay more attention to customers in rural areas, together with

remote areas, strongly develop personal consumer lending services. This is the target

large number of customers with regular demand for financial services. Strengthen marketing and customer care activities.

Third , research and rank customers to provide suitable products and services. This activity will effectively assist in designing the most suitable products and services for each target and group of targets, thereby improving the quality of NHBL services .

Fourth , bank branding is key to attracting customers .

Maybe you are interested!

Fifth , expand and diversify the customer service network to increase convenience and customer accessibility. Focus on building the network .

Branches, transaction offices in the direction

technology applications

modern. Development

parallel network review, to close ineffective transaction points, rearrange the transaction network.

Sixth , focus on developing information technology , focusing on digitalizing the whole system .

set of banking activities, by technology

information and

convenience of

Digital banking is closely related to the quality of banking services.

CONCLUSION OF CHAPTER 1

Chapter 1 of the thesis, the researcher systematizes theoretical issues on commercial banks and

Developing banking services in the context of international integration in banking and finance

goods. Specifically; the formation and development of commercial banks, concepts, characteristics, functions

ability, profession

and the role of commercial banks in the economy

market

School. Service

What is NHBL, how has the concept of NHBL services changed, the difference between NHBB and NHBL services, classification of NHBL services and the role of NHBL services in socio-economic development; Theory of NHBL service development and criteria for evaluating the development of NHBL services; The issue of international integration of Vietnam in general and integration of the Vietnamese banking industry in particular. This integration process is seen more clearly in the context of the world.

Industrial Revolution 4.0 and on the basis of new generation FTAs, Vietnam has been implementing

present. This is the necessary foundation to

NCS can be opened

broad and in-depth analysis,

assess the current situation on this issue in the following chapters.

Also in this chapter, the author studies and researches development experiences.

developing NHBL services of some commercial banks in Vietnam and around the world. From there, draw lessons and experiences on developing NHBL services for Vietnam Joint Stock Commercial Bank for Industry and Trade.

CHAPTER 2

CURRENT STATUS OF RETAIL BANKING SERVICE DEVELOPMENT AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE (PERIOD 2015-2020)

2.1. OVERVIEW

Joint Stock Commercial Bank

WORK PART

VIETNAM TRADE

2.1.1. History of formation and development of Vietnam Joint Stock Commercial Bank for Industry and Trade

2.1.1.1. History of formation

Vietnam Joint Stock Commercial Bank for Industry and Trade, formerly known as Industrial and Commercial Bank

Vietnam Trade Corporation, established on March 26, 1988, on the basis of separation from

State Bank of Vietnam according to Decree No. 53/HDBT of the Council of Ministers.

On December 25, 2008, Vietnam Joint Stock Commercial Bank for Industry and Trade conducted equitization.

officially changed its name to Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank). Vietinbank has members and dependent accounting branches. The management and operation of Vietinbank are innovated in the direction of: performing the centralized management and operation role of the Head Office, while promoting

advantage

and main role

Branch operations within the framework

decentralization, delegation

Board of Directors' rights.

2.1.1.2. Development process

Period from 1998 to 2000: The Industrial and Commercial Bank successfully built and transformed from a one-tier bank to a two-tier bank .

Phase from

20012008:

Successfully implemented the topic

reorganization

Structure

Vietnam Bank for Industry and Trade on debt settlement, organizational model, policy mechanism and business operations; Reorganization according to the model of State-owned Corporation according to

Decision 285/QD NH5 dated September 21, 1996 of the Governor of the State Bank. Since 2001, Vietinbank has continued to comprehensively innovate its business activities, management organization, modernize banking processes, and develop products and services according to the Vietinbank restructuring project approved by the Government, in order to prepare for the process of international economic integration; Deploy the Incas CoreBanking System sponsored by the World Bank; Launch Vietinbank Human Resource Training and Development School.

born on the basis of upgrading the Vocational Training Center. December 25, 2008

Vietinbank successfully conducted the initial public offering auction.

public with a total number of shares issued of 53.6 million shares. Along with the model transformation is the transformation of financial resources, management capacity, business efficiency, transparency and corporate culture. In 2008, Vietinbank achieved total assets of 193,590 billion VND, equity of 12,527 billion VND and pre-tax profit of 2,436 billion VND.

Period 2009 - 2013 : Vietinbank opened branches in Frankfurt, Germany and Vientiane, Laos; in 2011, Vietinbank sold 10% of its charter capital to foreign strategic partner IFC. Vietinbank is the first joint stock commercial bank to have a foreign strategic partner; in 2013, it sold 20% of its shares to foreign strategic investor MUFG Bank, this activity made Vietinbank the state-owned commercial bank with the strongest shareholder structure in Vietnam. In 2013, Vietinbank achieved total assets of VND 576,368 billion, nearly 3 times higher than in 2008, equity of VND 54,075 billion and pre-tax profit of VND 7,751 billion, approximately 3.2 times higher than in 2008.

Period 2014 to present : In 2014, Vietinbank built a customer - centric retail strategy, aiming to become the best retail bank in Vietnam. Vietinbank focused on building and implementing strategic management,

technological breakthroughs, continuing to comprehensively innovate banking operations, promoting

Promote business growth while ensuring efficiency, safety and sustainability.

In 2017, Vietinbank successfully converted the Core Banking system, bringing

Vietinbank becomes the bank with the most modern technology platform in the Vietnamese banking industry. In addition, Vietinbank strengthens regional cooperation.

With the development of the region and international integration, Vietinbank brand value has grown continuously.

In 2019, Vietinbank implemented and achieved results in the restructuring plan associated with handling.

bad debt period 2016-2020, medium-term business plan 2018-2020. Calculate

As of December 31, 2020, Vietinbank achieved total assets of VND 1,341,436 billion, equity

85,411 billion VND and pre-tax profit reached 17,085 billion VND.

Thus, since its establishment and development, Vietinbank has marked the transition from 100% state-owned capital to joint-stock ownership, traditional business model to a new modern model including retail, wholesale, professional business activities according to each customer group, increasingly diverse product and service portfolio, gradually approaching

services

World Banking Finance

world… create the premise

for development

to become a multi-functional banking and financial group with two main pillars: Commercial Bank and Investment Bank.

Transaction name: VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE International transaction name: VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE

Abbreviation: VietinBank Logo and slogan: Stock code: CTG

Address: 108 Tran Hung Dao, Hoan Kiem District, Hanoi City Website: www.vietinbank.vn

2.1.2. Overall organizational structure and retail organizational structure

2.1.2.1 Overall organizational structure

The organizational model at the Headquarters and each branch is standardized by Vietinbank according to functional blocks, centrally managed vertically; Wholesale block, Retail block, business and capital management block, risk management block, finance - accounting block, customer support departments...

General meeting of shareholders

East: General Meeting of Shareholders

east including all stock

east have

voting rights, is the highest decision-making body of Vietinbank.

Board of Directors (BOD): Is the governing body of VietinBank, with full

The right to decide and exercise rights and obligations on behalf of VietinBank

of VietinBank, except for matters under the authority of the General Meeting of Shareholders.

Executive Board (BOD): Responsible for managing daily work

of VietinBank according to the Charter

VietinBank and Organizational Regulations

function and activity

Executive Board. Executive Board is subject to the Board of Directors.

direct and comprehensive leadership, management and supervision of

Board of Supervisors (BOS): Is an agency representing shareholders to supervise operations and compliance with the Law and VietinBank's Charter in management.

management and operation of VietinBank; responsible before the Law and the General Meeting of Shareholders in

the performance of assigned rights and duties. In the process of performing duties

In its duties, the BKS is entitled to exercise the rights prescribed by law and

VietinBank Charter. The Board of Supervisors has the role of performing internal audit, controlling and evaluating the

comply with the provisions of the Law, internal regulations, Charter and decisions of the General Meeting of Shareholders and the Board of Directors.

and suggestion

decide,

Diagram 2.1. Organizational structure of Vietnam Joint Stock Commercial Bank for Industry and Trade

(Source: 2020 Vietinbank Annual Report)

2.1.2.2. Retail organizational structure

The Retail Business Development Department (KBL) was established in 2014, formerly known as the Head Office Personal Customer Department (TSC). With the goal of promoting modern retail activities in accordance with international practices and the reality of the Vietnamese market, in October 2014, VietinBank transferred

change retail model

throughout

TSC to branch (CN). Accordingly, the Department

KBL Business Development Department was established with the main tasks: Managing and promoting sales; managing customer service; developing networks and partners; coordinating with other business units to promote cross-selling of products and services...

From the initial scale of only 2 leaders and 8 staff, up to now the Department

KBL Business Department has expanded with over 50 employees, the Department Leadership team includes 1

Head of Department and 05 Deputy Heads of Department. In 2015, KBL Business Development Department established an additional extension department in the South.

Diagram 2.2. Structure of the Retail Block of Vietnam Joint Stock Commercial Bank for Industry and Trade

Over 80% of the staff of the Department belong to the 8x, 9x generation, dynamic, young with many creative ideas, effective in work. With this strength, KBL Business Development Department has had many positive activities to promote retail business throughout the system, supporting branches to develop business according to each customer segment and according to different regions. Thereby contributing significantly to the completion of impressive retail targets through each

year, enhance retail activities

of VietinBank, return

become one of the

The bank has had its best retail performance in years.

Vietinbank's retail sector is under the management and supervision of the General Director and the Committees of the Executive Board. The General Director heads the Executive Board and directly manages all activities of the Bank, including the retail sector. The Central Credit Council will determine credit limits and approve credit granting to individual customers.

and organizations

economic organization

non-institutional

finance according to regulations on

judge

approval authority of Vietinbank. Retail Division is under the supervision of the Inspection Board.

internal

for compliance

regulations, rules, procedures

operations and internal regulations.