Human Resource Organization Model at Bidv

+ Decide on exchange rates for buying and selling foreign currencies according to regulations of the State Bank and BIDV.

+ Decide on commission rates, fees, bonuses, and penalties in business and service activities within the limits prescribed by the State and BIDV.

+ Sign credit contracts and business cooperation with financial and credit institutions according to regulations of the State Bank and BIDV.

+ File lawsuits on economic and civil disputes, request competent authorities to initiate criminal prosecution when there are signs of crime related to the Branch's operations according to BIDV's regulations.

+ Responsible for business results, capital preservation and development, principal and interest recovery, ensuring growth of branch business activities.

+ When borrowing capital, customers are required to provide documents, records and information on the production, business and financial situation according to credit regulations to decide on lending and providing banking services, check the situation and results of loan use, suspend early collection in cases where the branch checks and finds that the capital is used for the wrong purpose, violates state regulations, credit contracts, credit regulations and customer commitments to the bank.

+ Foreclose mortgaged or pledged assets when customers cannot pay their debts on time.

+ Be responsible for economic and civil obligations and commitments between the Branch and customers, keep confidential customer data and operations.

3.1.2. Human resource organization model at BIDV - Nam Thai Nguyen Branch

3.1.2.1. Organizational structure

BIDV - Nam Thai Nguyen Branch has built for itself a reasonable and compact organizational structure but still ensures flexibility and speed in handling work, suitable for the market economy.

The organizational structure of BIDV - Nam Thai Nguyen Branch as of December 31, 2017 includes: Board of Directors (1 Director and 3 Deputy Directors),

operating 5 operating blocks (Customer Management Block, Risk Management Block, Operations Block, Affiliated Block, and Internal Management Block) with small offices.

Figure 3.1: Organizational model diagram of BIDV Nam Thai Nguyen

Source: BIDV Nam Thai Nguyen

3.1.2.2. Human resources

Table 3.1: Human resource structure in the period 2015-2017 of BIDV - Nam Thai Nguyen

Year

2015		2016		2017
People	(%)	People	(%)	People	(%)
1. Age
Under 30	33	46.48	33	44	38	47.5
From 30 - 40	29	40.85	29	38.67	28	35
Over 40	9	12.68	13	17.33	14	17.5
2. Gender
- Male	31	43.66	33	44	36	45
- Female	40	56.34	42	56	44	55
3. Level
- Postgraduate	14	19.72	16	21.33	19	23.75
- University	55	77.46	57	76	59	73.75
-High school, high school, other	2	2.82	2	2.67	2	2.5
4. Professional Labor (Officer)	31		28		30
- Customer Management Officer	14	45.16	16	57.14	18	60
- Other professional staff	17	54.84	12	42.86	12	40
Total number of employees	71	100	75	100	80	100

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(Source: BIDV Internal Management Department - Nam Thai Nguyen)

The professional quality at the branch is relatively good, the proportion of employees with university and postgraduate degrees always accounts for over 90%. With the characteristics of the industry that always requires highly qualified human resources, BIDV branch - Nam Thai Nguyen branch always constantly improves the qualifications of officers and employees to serve the work well. In allocating human resources to the blocks (excluding department leaders), the number of customer management officers in the business block (working directly in credit development, capital mobilization, customer base growth, etc.) accounts for a gradually increasing proportion over the years, out of the total number of officers working.

The branch's expertise, by the end of 2016, had reached >50%, demonstrating the branch's focus and attention on business human resources.

On the other hand, the very young staff is also the strength of the branch. By the end of 2017, the workforce under 30 years old accounted for 47.5%; from 30 to 40 years old accounted for 35%, from 41 years old and up accounted for only 17.5% - this is a small proportion.

Thus, recruiting young staff and focusing on the quality of human resources for the sales team is one of the top concerns in the bank's strategy. This proves that human resource management activities at the branch are highly focused.

3.1.3. Results of main business activities of BIDV - Nam Thai Nguyen Branch in the period of 2015 - 2017

3.1.3.1. Business environment

The period of 2015-2017 was a period of economic difficulties, the Government directed the implementation of solutions to control inflation, stabilize the macro economy, and ensure social security. The reason must be mentioned that in 2014, the liquidity of the economy was low, leading to many industries being heavily affected, the stock market declined, real estate prices decreased... so although lending interest rates continuously decreased in the last months of the year, financial costs were still relatively high, causing low credit growth and increasing bad debt. By 2015, the world economy had recovered but not sustainably and evenly, inflation tended to decrease. Domestically, the macro economy developed in a positive direction, exchange rates and the foreign exchange market were basically stable, the gold market was stable. Entering the implementation of the 2016 plan, although the province's socio-economic situation has seen significant improvements and changes, there are still shortcomings and difficulties arising from previous years that have not been resolved, causing pressure on production and business such as: inventory, weak purchasing power, high debt ratio, slow recovery of the real estate market, many manufacturing industries facing difficulties due to the impact of the world market, especially the deep decline in oil prices and increasingly fierce domestic competition, causing production and business activities of many enterprises to continue to face difficulties. The output market still faces many difficulties, especially in some industries such as construction materials, real estate, etc. In addition, competition between banks is increasingly fierce.

3.1.3.1. Business performance results

As a new branch operating for more than 4 years in a completely new location, with many difficulties, the initial period was mainly market penetration and customer base design. Moreover, the business environment from 2014 to present has been unfavorable, the financial and monetary market has fluctuated in a complicated and negative direction. However, with the efforts of all officers and employees of the branch together to overcome difficulties, after more than 4 years of operation, the branch has achieved relatively positive results in business activities in general and retail activities of BIDV - Nam Thai Nguyen Branch in particular. The indicators of scale and efficiency all have a good growth rate, basically completing the plan, the indicators of structure and quality have all been achieved and shifted in the right direction of BIDV.

Table 3.2. Business results of BIDV - Nam Thai Nguyen Branch in the period 2015 - 2017

Unit: billion VND

Target	2015	2016	2017	Compare(%)
Target	2015	2016	2017	2016/2015	2017/2016
1	Stock capital mobilization	2410	2280	2306	94,606	101,140
2	Loan Sales	1692	2785	3050	164.6	109,515
3	Debt collection turnover	815	2448	2591	300.4	105,842
4	Outstanding loans of securities	2990	3327	3786	111,271	113,796
	Retail	743	890	1086	119,785	122,022
5	Profit after tax	65.44	79.05	96.13	120,798	121,607
6	Number of staff	71	75	80	105,634	106,667
7	Average profit per capita	0.9216	1,054	1,202	114,366	114,042
8	Net retail income	32.64	41.83	55.21	128,156	131,987

(Source: BIDV - Nam Thai Nguyen Branch Summary Report 2015-2017)

Table 3.3. Proportion of retail credit balance in total outstanding balance in the period 2015 - 2017

Content	Value (billion VND)	Rate (%)
2015	Total credit balance at the end of the period	2990	100
2015	Retail debt	743	24.85
2016	Total credit balance at the end of the period	3327	100
2016	Retail debt	890	26.75
2017	Total credit balance at the end of the period	3786	100
2017	Retail debt	1086	28.68

Looking at table 3.2, the % comparison column shows the good growth in business results of BIDV - Nam Thai Nguyen Branch. Although only counting from 2015 to now, important indicators such as capital mobilization and outstanding credit have all grown remarkably, bringing stable income to employees. Specifically:

Capital mobilization is the first indicator when considering operating results, and is the premise of the banking business process. Specifically, by the end of 2015, capital mobilization reached 2,410 billion VND. Although 2016 recorded a slight decrease in this indicator, down 5.4% compared to 2015, it still achieved a good capital mobilization level of 2,280 billion VND. At the end of 2017, the total capital mobilization reached an absolute number of 2,306 billion VND, equivalent to a growth of 1.14% compared to 2016. This shows that although there are still many difficulties in building the image and attracting customers because it is a new branch in operation, thanks to the good implementation and diversification of capital mobilization forms such as cumulative deposits, ladders, bonus savings, deposit certificates, flexible interest payment methods... along with the implementation of promotional programs according to BIDV's instructions for depositing customers such as giving insurance cards, gifts, doing well in consulting services and taking care of deposit customers; implementing communication forms to introduce capital mobilization programs and products to organizations and people. Therefore, the capital mobilization results of the branch also achieved relatively good results.

Regarding credit indicators, BIDV - Nam Thai Nguyen Branch has focused on and invested heavily since the establishment of the branch. Sales activities have been focused on and promoted, especially retail credit. Specifically: In general, the loan turnover results after one year of operation increased from 1,692 billion VND in 2015 to 2,785 billion VND in 2016, equivalent to a growth of 64.6%. At the end of 2017, this target reached 3,050 billion VND, equivalent to a growth of 9.5% compared to 2016 and 80.26% compared to 2015.

Figure 3.2: Loan sales chart for the period 2015 - 2017

(Source: Summary report of BIDV - Nam Thai Nguyen Branch, period 2015 - 2017)

Debt collection revenue also recorded a sharp increase in 2016 with a growth rate of over 200% compared to 2015. And by 2017, this indicator also achieved a slight increase (up 5.84%) compared to 2016.

Proportional to the growth in loan sales, the outstanding credit balance at the end of the period also recorded good growth over 3 years, specifically at the end of 2016, it grew by 11.27% compared to 2015, raising the outstanding credit balance target to 3,327 billion VND, in 2017 it grew by 13.79% compared to 2016, officially reaching 3,786 billion VND. Contributing to that growth is the growth in retail outstanding balance. Specifically, as follows:

After one year of operation, this target reached 890 billion VND in 2016, equivalent to a growth of 19.78% compared to 2015. By the end of 2017, this target reached 1,086 billion VND, equivalent to a growth of 22.02% compared to 2016 and 46.16% compared to 2015. On the other hand, according to table 3.3, the proportion of retail debt in total credit balance increased from 24.85% in 2015 to 26.75% in 2016 and reached 28.68% in 2017. The increase in both absolute and relative numbers shows that the positive development direction of retail credit products in the area has initially helped banks expand the market. In addition, the increased demand for capital of economic sectors in the region shows that BIDV - Nam Thai Nguyen Branch has favorable and flexible policies on interest rates, collateral conditions, loan procedures, etc., helping the branch to increasingly expand its credit scale.

Pre-tax profit has continuously increased over the years, reaching 96.13 billion VND in 2017, equivalent to an increase of 21.6% compared to 2016, showing that labor productivity has always improved over the years. An important indicator to evaluate the life and income of officers and employees is the average pre-tax profit per capita, this indicator at the branch has always achieved significant growth, reaching 1.2 billion VND at the end of 2017, an impressive figure, contributing to BIDV - Nam Thai Nguyen Branch being in the top of the most effective branches in the Northern mountainous region according to BIDV's ranking results (2017). The above indicator also contributes to showing that the life of officers and employees of the branch is cared for and taken care of carefully, which will help motivate officers to work with peace of mind and contribute more to the agency.

Despite the difficult business environment, with the synchronous implementation of solutions from the State Bank of Vietnam and the economic development policy of Thai Nguyen province, closely following the business orientation of the Joint Stock Commercial Bank for Investment and Development of Vietnam, Nam Thai Nguyen branch has continued to maintain growth momentum, achieved encouraging results, increasingly affirmed its position and created a premise for the branch's business activities in the following years.

Human Resource Organization Model at Bidv - Nam Thai Nguyen Branch

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