Improving Management and Executive Capacity and Human Resource Quality

Credit is an effective measure to increase revenue in current conditions. Depending on the reality, each commercial bank needs to have specific and synchronous measures to strengthen credit risk management, improve the quality of appraisal and post-loan inspection to reduce the bad debt ratio.

Cost reduction: To increase profits, in addition to efforts to increase revenue, efforts to reduce costs are an important step. Therefore, it is necessary to have measures to strictly control costs.

Develop specific criteria for recording reasonable costs incurred. There should be a specific cost allocation plan for each business and department to monitor and evaluate performance, thereby finding ways to reduce costs or eliminate costs that do not bring added value. Raise awareness of saving and anti-wastefulness among all staff. Research and develop cost norms associated with business results for each department and each type of business.

Increasing mobilized capital with low interest rates will significantly reduce the operating costs of banks. Vietnamese commercial banks need to pay attention to finding and increasing cheap capital sources by developing non-cash payment products and services, connecting payments with customers, developing collection and payment services, promoting the development of card services, Mobilebanking services, payroll services via accounts, etc., thereby increasing the balance in customers' payment accounts to take advantage of that cheap capital source for banking business activities.

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Promoting the application of technology to reduce costs, the process of developing and applying technology will be associated with changing the processing procedures, especially when new technology helps automate transactions, which will help banks reduce a lot of costs, reduce service prices, thereby helping banks increase competitiveness and increase profits.

Handling outstanding debts : Be proactive and active in handling outstanding debts to improve the quality of assets. Joint stock commercial banks need to pay more attention to the recovery of debts that have been handled with risks to increase income. Outstanding debts can be handled by the following measures: Liquidation of assets for debts with collateral; selling debts to debt trading companies; writing off debts using sources from the risk reserve fund;

convert debt into capital contributed to the enterprise for business; extend debt...

Building a risk prevention and warning system: In addition to thoroughly applying international standards to risk management, Vietnamese commercial banks are required to build a risk monitoring, prevention and warning system. To do this, Vietnamese commercial banks must have the following conditions: Modern technology for centralized data management; experienced staff, good bank managers, etc.

In the current conditions, to improve financial capacity, Vietnamese commercial banks need to immediately solve three main problems: increasing equity capital, increasing profitability and handling outstanding debt.

3.2.3.2. Improve management and human resource quality

The human factor is the most important factor that brings success to service business activities. Because the nature of non-credit services is easy to imitate, if the technological level of banks is equivalent, the quality of human resources will create a difference in the quality of non-credit services between banks. Therefore, in the development of non-credit services, it is impossible to ignore the improvement of human resources quality. In addition, in the current integration conditions, one of the urgent requirements for Vietnamese commercial banks is to constantly improve management and operation capacity to enhance competitiveness.

+ To improve management and administration capacity, Vietnamese commercial banks need to:

- Improve the quality of management and administration

Vietnamese commercial banks need to clearly separate the authority and responsibility of the Departments and Centers at the Head Office as well as strengthen the coordination between these departments and branches throughout the system in developing non-credit services. Accordingly, the service organization model at the Head Office of Vietnamese commercial banks should be divided into blocks in charge of business activities in the wholesale service sector, retail service sector, card service sector, foreign exchange and derivatives business service sector, service operations sector and supporting sector in charge of information technology, branding, legal, finance and accounting, etc.

- Strengthen risk management capacity

Establish and implement professional strategic management activities, through establishing a unified perception in strategic planning management and linking relationships with annual business plans. Develop specific processes to form professional strategic management activities. Strengthen and improve the quality of forecasting and market research to serve management and operation to develop non-credit services.

Continue to improve market risk management capacity and operations according to international practices: Thoroughly separate the functions and tasks between the two departments of business and risk management. Enhance the independent role of the risk management system, gradually apply quantitative risk management and crisis testing models. Build an early warning system and develop a system of tools and software programs to serve market risk management and operations according to international standards and practices.

+ To improve the quality of human resources of Vietnamese commercial banks, it is necessary to:

Improving the quality of human resources is one of the important solutions contributing to the development of banking services. Improving the quality of human resources in the direction of training and regular retraining of staff to perform well banking operations close to reality. Training activities must aim to improve professional qualifications and equip knowledge and skills, aiming to build a professional and modern working style. For potential managers at all levels, there should be a plan for training, internship, and staff exchange with reputable foreign banks operating in and outside the country.

- Regarding human resource recruitment: Accurately forecast human resource needs for units, develop recruitment policies and processes, and select talents to discover and attract good staff.

- Regarding employee training and retraining:

There should be a program and plan for in-depth training of employees, applying modern technological achievements. Regularly open short-term classes with leading experts to update and equip knowledge for the team of senior staff.

In addition, it is necessary to design training programs to improve communication skills, customer psychology assessment skills, situation handling skills, etc. Training and updating basic business knowledge according to market mechanisms for existing staff to meet increasingly complex requirements and withstand increasing competitive pressure of the business environment. Actively train and evaluate the quality of staff training through serious evaluation of the results obtained from training, ensuring the construction of a team of staff with business knowledge on par with experienced international bankers.

Focus on training soft skills and management skills for middle and senior managers to create a breakthrough in thinking and management skills according to market mechanisms, creating a premise for implementing reform plans and accepting changes at the executive and implementation levels.

Diversify the training of professional skills for the team of tellers and customer relations specialists at the transaction offices to create a modern business style, meeting the requirements and qualities required of the retail network. It is necessary to attach importance to training soft skills for operational staff to turn potential knowledge into work efficiency and maximize the exploitation of existing resources in banks.

Along with training in basic knowledge and skills, it is necessary to pay due attention to training in foreign language proficiency (especially English) at transaction offices located in large urban centers to anticipate the opportunity to expand transaction activities with foreigners when the economy has deeply penetrated the world economy, as well as to enhance the ability to have transaction relationships with foreign banks in Vietnam and other countries in the world.

Besides, it is necessary to diversify training methods, pay due attention to online training and distance training to meet learners' diverse needs in terms of knowledge, space and time.

In a long time, the quality of new graduates in finance and banking in Vietnam cannot be significantly improved. Therefore, systematic training for newly recruited staff is still a key program with accompanying

It takes a large amount of money to be able to use this force for specific jobs. To some extent, employers cannot demand too much about the immediate availability of new graduates from universities and colleges. These professional training institutions still basically only produce raw products. Post-recruitment training activities must still take on the role of continuing the production process to turn those raw products into refined products suitable for each job position according to the requirements of employers. What needs to be emphasized here is that the reinforcement of that "training product" does not only take place at training centers and schools belonging to enterprises but must be carried out at many stages and many locations, especially at the address of the direct employer.

- Regarding the work of building corporate culture: Widely disseminate awareness of business culture, corporate culture; identify, shape and honor typical corporate cultural values as the ideological and spiritual foundation of Vietnamese business culture in general and each enterprise in particular to create the association's business culture identity, effectively dealing with the encroachment of international competitive forces.

- On human resource management and treatment policy:

Perfecting human resource management tools step by step according to international standards: Building a standard system of legal documents related to human resource management, ensuring harmony of interests between employees and employers.

Building a system of policies and mechanisms suitable for business conditions, ensuring the requirements of integration and high competition. Building and implementing a new income payment regulation, meeting the requirements: attracting and maintaining a team of good staff, stimulating and motivating staff is suitable for the requirements of the law and the financial capacity of each Vietnamese commercial joint stock bank.

There is a strategy to recruit, attract and develop good human resources for the bank by building standards for the bank staff associated with preferential and competitive income policies; recruiting young, highly qualified human resources, having policies to use and encourage qualified human resources to work at banks. In the long term, it is necessary to gradually build

The set of professional standards for each job title and position serves as a basis for standardizing staff according to different training levels. This is a common practice of commercial banks in the world but has no precedent in Vietnam.

3.2.3.3. Modernizing banking technology

Nowadays, when domestic commercial banks have really joined the "international playground" with the presence of foreign banks and their long strides in technology have given them a superior advantage in: Diversity of non-credit services, quality and convenience of products. That fact has helped domestic commercial banks realize the role of technology in the development of banks in general and the development of banking services in particular, so domestic commercial banks have made appropriate investments in the development and application of modern banking technology. Reality has proven that when successfully applying advanced technologies, it will help banks improve the quality and diversify their products and services, develop modern banking services, increase convenience for customers, and increase competitiveness in the integration environment.

Ensure stable operation of the technology system to increase the quality of non-credit services provided to customers and facilitate the development of new products. Invest in technology to serve the analysis and evaluation of customer relationships, improve the reporting system to serve management and operations, especially to determine the cost effectiveness of each product line.

Customers will only trust and use products and services that are highly safe and convenient, so developing a technology system must go hand in hand with security and confidentiality solutions, ensuring customer safety while meeting the increasing demands of customers. It is necessary to conduct an assessment of the current state of information security to have a complete solution, it is necessary to design and develop information security policies and procedures, build a comprehensive security solution, and apply international information security standards to ensure the quality of non-credit products and services when provided to customers.

Build long-term plans for technology investment and development, for technology

In general, banking technology in particular has the characteristic of being easily outdated compared to the rapid development of science and technology, so investment activities, development, updating and innovation of banking equipment and technology need to be carried out regularly. Vietnamese commercial banks need to develop long-term financial plans for future investment in technology development to maintain competitive advantage and avoid falling behind in technology.

All bank operational data needs to be centralized in the central database, all changes will be updated online and instantly. Transmission speed and connection between branches in the same system or banking systems with each other need to be improved to avoid incidents such as network overload, network congestion during peak transaction hours.

Strengthen the application of science and technology, advanced technology suitable to the development level of the local banking system and comply with international practices. Develop an online transaction system and gradually widely deploy the one-stop transaction model.

In the process of modernizing banking technology, it is necessary to focus on the system and connection in the banking industry, avoiding the fragmentation like the ATM equipment in the past. It is necessary to focus on building a solid electronic information infrastructure so that in the process of developing the new, there is no obstacle, patching with the old. Taking the first step, equipping technology first must be the foundation, the basis to be ready to continue with new technology. In particular, it is necessary to focus on coordinating with ASEAN countries to ensure both synchronization in technology development with the region, easy integration and less cost.

3.2.3.4. Implement good customer policy

Satisfying customer needs, enhancing customer awareness and building customer loyalty are always the things that Vietnamese commercial banks need to do. Therefore, building a reasonable and competitive customer policy is necessary to maintain and develop customer relationships. Customer policy helps Vietnamese commercial banks choose the right customers to serve, creating a traditional customer system, thereby enhancing their competitive position.

banks in the market. Through customer policies, Vietnamese commercial banks can propose operational measures to orient their development. For customers, customer policies give them peace of mind, convenience, accuracy, and time savings, thereby creating the highest customer satisfaction.

The customer policy that Vietnamese commercial banks aim for is to maintain important large customers and be proactive in competing with other banks; focus on expanding the new customer base; the customer care policy of Vietnamese commercial banks needs to be adjusted in accordance with the new business orientation; strive to ensure the highest and most comprehensive care and supply of all customer needs in a sustainable manner on the basis of safety, efficiency and benefit sharing. Vietnamese commercial banks need to build a policy for important customers of the system because these customers have great influence/effectiveness for the industry; build a point accumulation system based on customer benefits associated with interest rate policies, fees, and specific care policies to retain customers, encourage customers to maintain long-term cooperative relationships with commercial banks. Establish a customer care department to serve customers attentively, quickly, pay attention to and monitor to recognize customer needs and find ways to best meet them. In particular, Vietnamese commercial banks must unify and coordinate in customer care between the Head Office and branches in the system:

Clearly define each customer must have a Department/branch/officer responsible for care and management.

Clearly stipulate the coordination mechanism between branches in customer relations; strictly implement sanctions to handle competition between branches.

Unify regulations and apply common policies to customers (interest rates, service fees, etc.) to avoid branches applying different policies, leading to internal competition and reducing the overall efficiency of the system.

For customers directly approved by the Head Office, it is necessary to clearly define the responsibilities of all levels in managing and serving customers.

For large customers, it is necessary to apply a total price policy; There is a policy of reducing cumulative fees according to usage volume; Perfecting the point accumulation mechanism for

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