Improving the quality of short-term loans for small and medium enterprises - 12

3.3.1.5. Building the right Marketing strategy

Unlike before, banks just sat in one place and people who needed to do business with the bank had to come to them. Now the situation is different, competition in the banking industry has become fiercer than ever. Therefore, finding strengths from the quality of operations is a matter of concern for most banks. Building the right and effective marketing policy is necessary to improve the competitiveness of banks.

- Establish a market research department: Currently, many banks do not have a separate market research department, and this task is currently undertaken by the customer service department, so the efficiency is not high. The bank is a business operating in the monetary sector, so one of the important goals of the bank is to expand market share to increase income. Therefore, establish a market research department to better approach customer needs. This department not only researches the bank's market but also researches the customer's market. Researching the bank's market means researching customers' loan needs and the ability to meet these needs. At the same time, it is necessary to research how competitors in the same area meet customers' needs for similar products. What are their advantages and disadvantages to improve their products. Furthermore, SMEs in the area operate in many fields, so it is necessary to consider which type of loan is most effective for the bank and best serves the customer. Researching the customer's market is part of considering the feasibility of the loan plan. Because the source of debt repayment for the bank is from an effective production plan. If the business's products are accepted by the market due to advantages in price and quality, then the possibility of success of the business is high, so the loan will be safe. This work is also really necessary because SMEs have less financial autonomy than their products.

Exports are seasonal in nature, so if each bank does not carefully consider the actual market of the enterprise but only considers the project on paper, the risk is very high. Market research will help each bank correctly assess the competitive position of the enterprise in the market as well as the ability to repay capital and interest on time.

- Building the right customer strategy: The role and position of SMEs are increasingly affirmed to be very important in the economy. In recent years, based on the actual situation, each bank has classified and screened customers. Banks have identified the target customer group as craft villages, SMEs and focused on short-term loans to these customers. Identifying the target customer as SMEs, this is also the target that banks across the country are aiming for, so the level of competition is relatively fierce, so each bank needs to constantly improve its reputation and position with SMEs. It is necessary to build an image of a bank that is always dedicated to the success of its customers.

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• Improving the quality of short-term loans for small and medium enterprises - 2
• Qos Assurance Methods for Multimedia Communications zt2i3t4l5ee zt2a3gs zt2a3ge zc2o3n4t5e6n7ts low. The EF PHB requires a sufficiently large number of output ports to provide low delay, low loss, and low jitter. EF PHBs can be implemented if the output port's bandwidth is sufficiently large, combined with small buffer sizes and other network resources dedicated to EF packets, to allow the router's service rate for EF packets on an output port to exceed the arrival rate λ of packets at that port. This means that packets with PHB EF are considered with a pre-allocated amount of output bandwidth and a priority that ensures minimum loss, minimum delay and minimum jitter before being put into operation. PHB EF is suitable for channel simulation, leased line simulation, and real-time services such as voice, video without compromising on high loss, delay and jitter values. Figure 2.10 Example of EF installation Figure 2.10 shows an example of an EF PHB implementation. This is a simple priority queue scheduling technique. At the edges of the DS domain, EF packet traffic is prioritized according to the values ​​agreed upon by the SLA. The EF queue in the figure needs to output packets at a rate higher than the packet arrival rate λ. To provide an EF PHB over an end-to-end DS domain, bandwidth at the output ports of the core routers needs to be allocated in advance to ensure the requirement μ > λ. This can be done by a pre-configured provisioning process. In the figure, EF packets are placed in the priority queue (the upper queue). With such a length, the queue can operate with μ > λ. Since EF was primarily used for real-time services such as voice and video, and since real-time services use UDP instead of TCP, RED is generally not suitable for EF queues because applications using UDP will not respond to random packet drop and RED will strip unnecessary packets. 2.2.4.2 Assured Forwarding (AF) PHB PHB AF is defined by RFC 2597. The purpose of PHB AF is to deliver packets reliably and therefore delay and jitter are considered less important than packet loss. PHB AF is suitable for non-real-time services such as applications using TCP. PHB AF first defines four classes: AF1, AF2, AF3, AF4. For each of these AF classes, packets are then classified into three subclasses with three distinct priority levels. Table 2.8 shows the four AF classes and 12 AF subclasses and the DSCP values ​​for the 12 AF subclasses defined by RFC 2597. RFC 2597 also allows for more than three separate priority levels to be added for internal use. However, these separate priority levels will only have internal significance. PHB Class PHB Subclass Package type DSCP AF4 AF41 Short 100010 AF42 Medium 100100 AF43 High 100110 AF3 AF31 Short 011010 AF32 Medium 011100 AF33 High 011110 AF2 AF21 Short 010010 AF22 Medium 010100 AF23 High 010110 AF1 AF11 Short 001010 AF12 Medium 001100 AF13 High 001110 Table 2.8 AF DSCPs The AF PHB ensures that packets are forwarded with a high probability of delivery to the destination within the bounds of the rate agreed upon in an SLA. If AF traffic at an ingress port exceeds the pre-priority rate, which is considered non-compliant or “out of profile”, the excess packets will not be delivered to the destination with the same probability as the packets belonging to the defined traffic or “in profile” packets. When there is network congestion, the out of profile packets are dropped before the in profile packets are dropped. When service levels are defined using AF classes, different quantity and quality between AF classes can be realized by allocating different amounts of bandwidth and buffer space to the four AF classes. Unlike EF, most AF traffic is non-real-time traffic using TCP, and the RED queue management strategy is an AQM (Adaptive Queue Management) strategy suitable for use in AF PHBs. The four AF PHB layers can be implemented as four separate queues. The output port bandwidth is divided into four AF queues. For each AF queue, packets are marked with three “colors” corresponding to three separate priority levels. In addition to the 32 DSCP 1 groups defined in Table 2.8, 21 DSCPs have been standardized as follows: one for PHB EF, 12 for PHB AF, and 8 for CSCP. There are 11 DSCP 1 groups still available for other standards. 2.2.5.Example of Differentiated Services We will look at an example of the Differentiated Service model and mechanism of operation. The architecture of Differentiated Service consists of two basic sets of functions: Edge functions: include packet classification and traffic conditioning. At the inbound edge of the network, incoming packets are marked. In particular, the DS field in the packet header is set to a certain value. For example, in Figure 2.12, packets sent from H1 to H3 are marked at R1, while packets from H2 to H4 are marked at R2. The labels on the received packets identify the service class to which they belong. Different traffic classes receive different services in the core network. The RFC definition uses the term behavior aggregate rather than the term traffic class. After being marked, a packet can be forwarded immediately into the network, delayed for a period of time before being forwarded, or dropped. We will see that there are many factors that affect how a packet is marked, and whether it is forwarded immediately, delayed, or dropped. Figure 2.12 DiffServ Example Core functionality: When a DS-marked packet arrives at a Diffservcapable router, the packet is forwarded to the next router based on Per-hop behavior is associated with packet classes. Per-hop behavior affects router buffers and the bandwidth shared between competing classes. An important principle of the Differentiated Service architecture is that a router's per-hop behavior is based only on the packet's marking or the class to which it belongs. Therefore, if packets sent from H1 to H3 as shown in the figure receive the same marking as packets from H2 to H4, then the network routers treat the packets exactly the same, regardless of whether the packet originated from H1 or H2. For example, R3 does not distinguish between packets from h1 and H2 when forwarding packets to R4. Therefore, the Differentiated Service architecture avoids the need to maintain router state about separate source-destination pairs, which is important for network scalability. Chapter Conclusion Chapter 2 has presented and clarified two main models of deploying and installing quality of service in IP networks. While the traditional best-effort model has many disadvantages, later models such as IntServ and DiffServ have partly solved the problems that best-effort could not solve. IntServ follows the direction of ensuring quality of service for each separate flow, it is built similar to the circuit switching model with the use of the RSVP resource reservation protocol. IntSer is suitable for services that require fixed bandwidth that is not shared such as VoIP services, multicast TV services. However, IntSer has disadvantages such as using a lot of network resources, low scalability and lack of flexibility. DiffServ was born with the idea of ​​solving the disadvantages of the IntServ model. DiffServ follows the direction of ensuring quality based on the principle of hop-by-hop behavior based on the priority of marked packets. The policy for different types of traffic is decided by the administrator and can be changed according to reality, so it is very flexible. DiffServ makes better use of network resources, avoiding idle bandwidth and processing capacity on routers. In addition, the DifServ model can be deployed on many independent domains, so the ability to expand the network becomes easy. Chapter 3: METHODS TO ENSURE QoS FOR MULTIMEDIA COMMUNICATIONS In packet-switched networks, different packet flows often have to share the transmission medium all the way to the destination station. To ensure the fair and efficient allocation of bandwidth to flows, appropriate serving mechanisms are required at network nodes, especially at gateways or routers, where many different data flows often pass through. The scheduler is responsible for serving packets of the selected flow and deciding which packet will be served next. Here, a flow is understood as a set of packets belonging to the same priority class, or originating from the same source, or having the same source and destination addresses, etc. In normal state when there is no congestion, packets will be sent as soon as they are delivered. In case of congestion, if QoS assurance methods are not applied, prolonged congestion can cause packet drops, affecting service quality. In some cases, congestion is prolonged and widespread in the network, which can easily lead to the network being "frozen", or many packets being dropped, seriously affecting service quality. Therefore, in this chapter, in sections 3.2 and 3.3, we introduce some typical network traffic load monitoring techniques to predict and prevent congestion before it occurs through the measure of dropping (removing) packets early when there are signs of impending congestion. 3.1. DropTail method DropTail is a simple, traditional queue management method based on FIFO mechanism. All incoming packets are placed in the queue, when the queue is full, the later packets are dropped. Due to its simplicity and ease of implementation, DropTail has been used for many years on Internet router systems. However, this algorithm has the following disadvantages: − Cannot avoid the phenomenon of “Lock out”: Occurs when 1 or several traffic streams monopolize the queue, making packets of other connections unable to pass through the router. This phenomenon greatly affects reliable transmission protocols such as TCP. According to the anti-congestion algorithm, when locked out, the TCP connection stream will reduce the window size and reduce the packet transmission speed exponentially. − Can cause Global Synchronization: This is the result of a severe “Lock out” phenomenon. Some neighboring routers have their queues monopolized by a number of connections, causing a series of other TCP connections to be unable to pass through and simultaneously reducing the transmission speed. After those monopolized connections are temporarily suspended, Once the queue is cleared, it takes a considerable amount of time for TCP connections to return to their original speed. − Full Queue phenomenon: Data transmitted on the Internet often has an explosion, packets arriving at the router are often in clusters rather than in turn. Therefore, the operating mechanism of DropTail makes the queue easily full for a long period of time, leading to the average delay time of large packets. To avoid this phenomenon, with DropTail, the only way is to increase the router's buffer, this method is very expensive and ineffective. − No QoS guarantee: With the DropTail mechanism, there is no way to prioritize important packets to be transmitted through the router earlier when all are in the queue. Meanwhile, with multimedia communication, ensuring connection and stable speed is extremely important and the DropTail algorithm cannot satisfy. The problem of choosing the buffer size of the routers in the network is to “absorb” short bursts of traffic without causing too much queuing delay. This is necessary in bursty data transmission. The queue size determines the size of the packet bursts (traffic spikes) that we want to be able to transmit without being dropped at the routers. In IP-based application networks, packet dropping is an important mechanism for indirectly reporting congestion to end stations. A solution that prevents router queues from filling up while reducing the packet drop rate is called dynamic queue management. 3.2. Random elimination method – RED 3.2.1 Overview RED (Random Early Detection of congestion; Random Early Drop) is one of the first AQM algorithms proposed in 1993 by Sally Floyd and Van Jacobson, two scientists at the Lawrence Berkeley Laboratory of the University of California, USA. Due to its outstanding advantages compared to previous queue management algorithms, RED has been widely installed and deployed on the Internet. The most fundamental point of their work is that the most effective place to detect congestion and react to it is at the gateway or router. Source entities (senders) can also do this by estimating end-to-end delay, throughput variability, or the rate of packet retransmissions due to drop. However, the sender and receiver view of a particular connection cannot tell which gateways on the network are congested, and cannot distinguish between propagation delay and queuing delay. Only the gateway has a true view of the state of the queue, the link share of the connections passing through it at any given time, and the quality of service requirements of the traffic flows. The RED gateway monitors the average queue length, which detects early signs of impending congestion (average queue length exceeding a predetermined threshold) and reacts appropriately in one of two ways: − Drop incoming packets with a certain probability, to indirectly inform the source of congestion, the source needs to reduce the transmission rate to keep the queue from filling up, maintaining the ability to absorb incoming traffic spikes. − Mark “congestion” with a certain probability in the ECN field in the header of TCP packets to notify the source (the receiving entity will copy this bit into the acknowledgement packet). Figure 3. 1 RED algorithm The main goal of RED is to avoid congestion by keeping the average queue size within a sufficiently small and stable region, which also means keeping the queuing delay sufficiently small and stable. Achieving this goal also helps: avoid global synchronization, not resist bursty traffic flows (i.e. flows with low average throughput but high volatility), and maintain an upper bound on the average queue size even in the absence of cooperation from transport layer protocols. To achieve the above goals, RED gateways must do the following: − The first is to detect congestion early and react appropriately to keep the average queue size small enough to keep the network operating in the low latency, high throughput region, while still allowing the queue size to fluctuate within a certain range to absorb short-term fluctuations. As discussed above, the gateway is the most appropriate place to detect congestion and is also the most appropriate place to decide which specific connection to report congestion to. − The second thing is to notify the source of congestion. This is done by marking and notifying the source to reduce traffic. Normally the RED gateway will randomly drop packets. However, if congestion If congestion is detected before the queue is full, it should be combined with packet marking to signal congestion. The RED gateway has two options: drop or mark; where marking is done by marking the ECN field of the packet with a certain probability, to signal the source to reduce the traffic entering the network. − An important goal that RED gateways need to achieve is to avoid global synchronization and not to resist traffic flows that have a sudden characteristic. Global synchronization occurs when all connections simultaneously reduce their transmission window size, leading to a severe drop in throughput at the same time. On the other hand, Drop Tail or Random Drop strategies are very sensitive to sudden flows; that is, the gateway queue will often overflow when packets from these flows arrive. To avoid these two phenomena, gateways can use special algorithms to detect congestion and decide which connections will be notified of congestion at the gateway. The RED gateway randomly selects incoming packets to mark; with this method, the probability of marking a packet from a particular connection is proportional to the connection's shared bandwidth at the gateway. − Another goal is to control the average queue size even without cooperation from the source entities. This can be done by dropping packets when the average size exceeds an upper threshold (instead of marking it). This approach is necessary in cases where most connections have transmission times that are less than the round-trip time, or where the source entities are not able to reduce traffic in response to marking or dropping packets (such as UDP flows). 3.2.2 Algorithm This section describes the algorithm for RED gateways. RED gateways calculate the average queue size using a low-pass filter. This average queue size is compared with two thresholds: minth and maxth. When the average queue size is less than the lower threshold, no incoming packets are marked or dropped; when the average queue size is greater than the upper threshold, all incoming packets are dropped. When the average queue size is between minth and maxth, each incoming packet is marked or dropped with a probability pa, where pa is a function of the average queue size avg; the probability of marking or dropping a packet for a particular connection is proportional to the bandwidth share of that connection at the gateway. The general algorithm for a RED gateway is described as follows: [5] For each packet arrival Caculate the average queue size avg If minth ≤ avg < maxth div.maincontent .s1 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 15pt; } div.maincontent .s2 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 15pt; } div.maincontent .p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent .s3 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s4 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s5 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s6 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s7 { color: black; font-family:Wingdings; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s8 { color: black; font-family:Arial, sans-serif; font-style: italic; font-weight: bold; text-decoration: none; font-size: 15pt; } div.maincontent .s9 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s10 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 9pt; vertical-align: 6pt; } div.maincontent .s11 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 13pt; } div.maincontent .s12 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 10pt; } div.maincontent .s13 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-d
• Improving the quality of lending to small and medium-sized enterprise customers at the Vietnam Development Investment Bank branch - bidv tu son - 7
• Improving the quality of financial appraisal of investment projects in medium and long-term lending at the Military Commercial Joint Stock Bank, Hoang Quoc Viet branch - 14
• Outstanding Loans to Small and Medium Enterprises at Vietcombank in the Period 2005-2008

Each bank needs to classify SME customers, select customers with long-term and reputable relationships to apply loan forms that ensure convenience for customers as well as have incentives on interest rates and service fees. At the same time, avoid discrimination between large enterprises and SME as well as state-owned enterprises and non-state-owned enterprises. When enterprises encounter certain financial difficulties, each bank should work with the enterprise to resolve such obstacles so that even though they have financial difficulties, they still make efforts to repay the bank. Moreover, each bank also needs to lend long-term to SME when they first start production because only with long-term investment can there be short-term investment. Ensuring the above requirements will certainly improve credit quality.

3.3.1.6. Strengthen loan inspection and control

In the current volatile situation, it seems inevitable that businesses will encounter risks. When SMEs encounter risks, their ability to withstand them is very low, so their ability to repay loans to banks is not high. Therefore, after lending to customers, each bank needs to regularly check the use of loans by businesses.

For each customer who borrows capital, the bank needs to require them to open a deposit account at the branch and the credit officer must regularly check to consider the fluctuations of this account so that the credit officer can be proactive in resolving situations when problems occur. Checking and controlling loans helps the bank to correctly assess the progress of the loan plan. In addition to monitoring the deposit account, the credit officer must regularly meet with customers and visit the factory to feel what is actually happening compared to what is presented in the file. At the same time, the credit officer must carefully review the quarterly financial reports as well as the invoices for purchasing goods for revolving loans and limit loans.

3.3.1.7. Improve the quality of credit staff

In any business field, the human factor is the most important factor, deciding the success or failure of all activities. Credit officers must fully demonstrate the qualifications of a person with solid professional qualifications, sufficient moral qualifications with rich social knowledge, and the ability to complete assigned tasks. Thus, the quality of credit officers must meet the following aspects: professional qualifications, work experience and moral qualifications.

- Regarding professional qualifications: loan officers must be formally trained, have basic knowledge of banking and finance as well as knowledge of market economics. Credit officers must have in-depth knowledge of corporate finance and investment project appraisal. To meet job requirements, they must regularly

Regularly update changes in policies and guidelines of the State, industry and locality. Credit officers must always be aware of self-training to improve their qualifications to meet the increasingly high requirements of the job, at the same time they need to have enthusiasm and high responsibility in their work.

- Regarding work experience: banking is a complex business. Business activities are mainly related to relationships and reputation. The bank's customers are very diverse. Especially the SME customers, these businesses operate in many fields and sometimes their activities have very high risks. Credit officers need to accumulate experience to be able to anticipate all situations and complete assigned tasks.

- Regarding ethics: project appraisal and lending decisions are subjective to the credit officer. If the credit officer has experience and qualifications but poor ethics, leading to collusion with customers to appropriate bank capital, the quality of lending will definitely be affected.

To achieve the above requirements, banks need to take the following measures.

Firstly, it is necessary to carefully recruit staff. Staff selection must be based on specific standards of qualifications, work experience, foreign language proficiency, communication skills, etc. Recruitment policies must be applied openly. Selection must be linked to appropriate job placement. Each professional aspect must have people with specialized knowledge of that profession and especially must be people with good moral character and responsible in their work.

Second , assign tasks scientifically, in which responsibilities and authorities for each job must be clearly defined. Functional operations must be separated. Many banks have their own appraisal department.

But currently there is still a situation where credit officers do both appraisal and lending work.

Third, training must be given due attention. Newly recruited employees need to be trained in depth on the assigned work, guided by the regulations of the Bank and related laws. For employees who are working, they must also be regularly trained and retrained because the job requirements require a very broad understanding. Banks need to regularly open training courses to improve professional qualifications, send employees to vocational training, and graduate school to improve the quality of customer service. Improving professional skills includes improving computer skills, foreign languages, professional skills, legal regulations, and market information.

Fourth, there should be a suitable remuneration policy for credit officers to promptly motivate and avoid egalitarianism. Banks need to further promote the movement of setting good examples in their units through reward policies. Timely reward and punishment policies help officers have a sense of responsibility as well as a sense of training to improve.

3.3.2. Recommendations to Vietnam Joint Stock Commercial Bank for Industry and Trade

The goal of CT Commercial Joint Stock Bank by the end of 2010 is “To become the leading commercial bank in Vietnam in financing SMEs. Outstanding loans to SMEs account for 70% of the total outstanding loans of the entire system, with a bad debt ratio of less than 3%”. To achieve the above goals, I would like to make some recommendations as follows.

- Promote the bank's activities serving SMEs through many channels such as organizing seminars and advertising through mass media.

- Completing and supplementing products in two directions: redesigning products and creating new suitable products while enhancing non-financial support activities for SME customers.

- Increase non-financial support for SMEs such as providing economic and financial information, procedural guidance, introducing investment partners... through various channels. At the same time, the Bank should also support typical customers to participate in training courses, exhibitions, fairs, and product introductions between domestic and foreign SMEs.

- With its leadership role, CT Vietnam Joint Stock Commercial Bank needs to gradually standardize its staff, especially credit officers as well as branch management officers.

- Enhance the effectiveness of risk prevention information work from Vietnam Joint Stock Commercial Bank for Industry and Trade to branches.

3.3.3. Recommendations to the Joint Stock Commercial Bank for Industry and Trade, Nam Dinh Province Branch

3.3.3.1. Directions in lending activities at the Joint Stock Commercial Bank for Industry and Trade, Nam Dinh Province Branch

In 2008, with the formation of new industrial parks and clusters (such as Loc Ha industrial park in My Loc district and Bao Minh industrial park in Vu Ban district...), many more investment projects have been attracted to the province. The commodity market continues to have complex competition between enterprises, which will significantly affect the production and business situation of enterprises. In particular, in 2009, with competition from Chinese goods, the textile and garment industry is facing increasingly fierce competition, accordingly, textile and garment enterprises with credit relations at Nam Dinh province branches will also have to face many difficulties and challenges. On the other hand, in 2008, some enterprises were strongly affected by inflation, so their production activities declined.

business and losses, especially the shipbuilding industry in Nam Dinh province is facing many difficulties due to supply exceeding demand. All of the above factors will greatly affect the credit situation of banks in general, and Nam Dinh Province CT Commercial Joint Stock Bank Branch in particular.

Closely following the strategy and orientation goals of CT Vietnam Joint Stock Commercial Bank, based on the socio-economic situation in Nam Dinh province and the actual operations of the branch in recent years, the Branch sets out the business orientation and tasks for 2010 of a number of activities as follows:

- Total mobilized capital increased by 12-15%

- Total economic lending increased by 20-22%

- Bad debt ratio below 2%

- Service revenue reaches 6-8% of total income

To achieve this goal, the branch must strive for healthy and safe credit growth and conduct customer screening. It is necessary to analyze and evaluate the strengths of each region, each area, and each industry to be proactive in marketing and attracting customers to expand investment. Shift the credit investment structure from state-owned enterprises to other economic sectors with more effective business operations by finding customers with healthy financial status, choosing investment projects, and effective production and business plans. In which, focus on investing in small and medium-sized enterprises and foreign-invested companies. To achieve the target of a bad debt ratio of less than 2%, the branch must focus on urging the collection of overdue debts and debts that have been handled with risks. Improve the methods, quality and effectiveness of internal inspection and control work to resolutely overcome existing shortcomings. Regularly re-train the sales team, create a system to provide and update information regularly to make the right decisions. The branch is continuing to handle outstanding debts.

3.3.3.2. Proposal for short-term loans for SMEs at the branch of the Joint Stock Commercial Bank for Industry and Trade of Nam Dinh province.

- Focus on short-term lending for business plans with quick payback periods. Only lend based on a thorough assessment of the plan.

- Previously, like other State-owned commercial banks, the branch also targeted large enterprises and state-owned corporations. However, in recent years, the branch has made timely changes in its development orientation, focusing on the SME customer group. Especially the SME customer group that has built a brand, has a certain reputation in the market and has enough assets to secure the loan.

- To be able to lend short-term loans to businesses for production, it is necessary to consider supporting businesses right from the start of operations to create a long-term sustainable relationship. That is, it is necessary to lend long-term loans when businesses invest in fixed assets. Build customer strategies, new business styles, train and improve staff qualifications, improve appraisal quality to be able to lend more to SMEs.

- Continue to increase loan sales, expand short-term loans, apply a variety of short-term loan forms for this type of business. In addition to capital support, combine accompanying services, especially financial consulting services, so that the bank's capital will be safer and more effective.

- Only focus on lending to SMEs with clear business strategies and high self-financing ratios.