Lessons for Vietnam Joint Stock Commercial Bank for Industry and Trade, Que Vo Industrial Park Branch

- Market segmentation: “Recognizing that Vietnam, Laos and Cambodia are potential markets with many similarities, ANZ has invested over 400 million USD in the past 5 years to develop a large network in the Indochina region and is the only international bank with continuous operations in the three markets of Vietnam, Laos and Cambodia. According to Mr. Dennis Hussey - General Director of ANZ Vietnam and the Mekong region, the three countries above are countries with strong economic development, the lives of people here compared to 10 years ago have clearly improved, in that development, banking credit activities are required to meet the needs of business investment and shopping. This helps ANZ implement its business strategy by combining the strengths and weaknesses of the three countries to complement each other. ANZ is committed to investing heavily in this region with the motto of "Community Orientation through transparent business, simple transactions, creating the most favorable conditions for customers. This is a strategy to strive for ANZ to continue to be the leading retail bank in this region".

- Key customer segments: In Vietnam, “ANZ focuses on the high-income individual customer segment and the small and medium-sized enterprise segment. For the high-income individual customer segment: according to ANZ, Vietnam has a strong economic development and the number of high-income people is expected to increase along with economic development. ANZ predicts that overall, personal financial resources, especially in the middle-income segment, will increase significantly in the next 3-5 years. Therefore, ANZ is increasing its focus on the high-income customer segment and will increase in the coming time through developing service initiatives and customer benefits. For the small and medium-sized enterprise customer segment: ANZ believes that one of the highlights of the market is retail services, insurance for small and medium-sized enterprises as well as the increasing demand for loans, regardless of the recent global economic crisis. Core product development: Bank-insurance tie-ups, financial management and investment products will play a key role in the strategy.

ANZ’s retail business strategy over the next three years. In the future, ANZ also plans to introduce other wealth and financial management and investment products to the market.”

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1.4.1.2. Experience of HSBC Bank Vietnam

According to HSBC, “In 1870, HSBC opened its first office in Saigon, now Ho Chi Minh City. On January 1, 2009, HSBC became the first foreign bank to establish a subsidiary in Vietnam. With more than 140 years of experience, HSBC provides a full range of banking and financial services including: personal finance and asset management, corporate finance, foreign exchange and capital markets, payment and cash management, international payment and trade finance.”

During its operations in Vietnam, HSBC won awards such as: “Best Foreign Bank in Vietnam from 2006-2010 and 2014” voted by Finance Asia magazine, “ Best Cash Management Bank in Vietnam from 2010-2014” voted by Euromoney Poll…

One of the factors that has contributed to HSCB's success in recent times is providing customers with a very diverse and rich product portfolio, characterized by convenient and professional packaged product groups.

- Regarding the comprehensive banking service product: HSBC currently offers two separate product packages for corporate and individual customers: Accordingly, "service package for small and medium enterprises: this is a product package that combines all banking and financial services in a single account including interest-bearing transaction accounts, payment and currency management services, foreign exchange services, international payment services... With this product package, businesses will enjoy many benefits such as: free annual fees for ATM card services, online banking, telephone banking, free salary payment service to accounts opened at HSBC, preferential fee schedule for domestic money transfer services, international payment, professional and dedicated support from HSBC's customer care staff. Service package for individual customers HSBC premier - a comprehensive banking service package connected globally. The benefits of this service include accessing information and managing HSBC accounts globally through a single website.

First, free online money transfers between personal accounts in the HSBC banking system, supported through HSBC's global 24/7 emergency service with a single global phone number, allowing cash advances in foreign currency in emergencies. Premier customers in Vietnam can also transact at 350 international Premier centers in major cities around the world and more than 6,000 other branch offices.

- Regarding associated banking products and services: HSBC provides customers with a series of products linking the bank's services with those of its partners such as:

+ Home&Away program: “As an HSBC credit cardholder, customers can enjoy special discounts at more than 19,000 retail outlets in 40 countries and territories across Asia, Europe, and America. By simply paying with an HSBC credit card at these retail outlets, customers can enjoy special discounts when shopping, dining, entertainment, and traveling. In Vietnam alone, HSBC credit cardholders can enjoy more than 100 incentives at service providers affiliated with HSBC such as: 10% discount on full-priced Coach products, 20% discount on room rates and food at the restaurant when booking a room at Movenpick Hotel SaiGon, 10% discount when purchasing membership cards at Elite Fitness & Spa. Bao Viet's insurance products: Currently, HSBC cooperates with its strategic partner, Bao Viet Insurance Company, to sell insurance products such as: Non-life insurance: travel insurance, Medical Care health insurance, car insurance; life insurance: An Gia Tai Loc insurance, An Phat Lifetime insurance, An Phat Bao Gia insurance. Customers can buy insurance products directly through HSBC's website, paying through HSBC's payment channels.

Thus, through HSBC's two product groups, we can see HSBC's experience in diversifying its product portfolio and increasing customer convenience in two ways: " First, offering product packages that include a group of complementary banking services that support each other. On the one hand, it encourages customers to use many banking products at the same time, and on the other hand, it maximizes customer satisfaction by increasing convenience and incentives for customers. Second , linking

with external partners, offering incentive programs that benefit both customers and HSBC and its partners ."

1.4.2. Lessons for Vietnam Joint Stock Commercial Bank for Industry and Trade, Que Vo Industrial Park Branch

In the process of increasingly deep international integration, the intersection between economic sectors creates many opportunities for businesses to transform and reach out to the international level, but it creates a fiercely competitive playing field. Vietnam with a current population of more than 90 million people is a potential market attracting many strong foreign competitors, creating many challenges for domestic commercial banks. Innovating strategies and setting out effective operating directions, meeting the needs of the general market, to satisfy customer satisfaction is certain. The advantage of long-term operation in the local environment, along with internal resources to define retail service development strategies to suit the market and capture market share. In addition, following the footsteps of giants, learning and absorbing the experiences of commercial banks around the world for better development. Through research, we can draw lessons to improve the quality of successful retail banking services as follows:

- Providing services according to customer groups: To be successful, AZN and HSBC banks have researched and launched diverse, closed product packages to meet the diverse needs of customers for banking services. It is the design of services that are suitable for the needs of each customer group. It is the design of services that are suitable for the needs of each customer group that will help Vietnamese commercial banks in general and BIDV in particular expand their market size. For example, it is possible to research and design services suitable for individual customer groups such as students, civil servants, retirees, office workers, farmers, etc.

- Promote modernization and application of advances in science and technology to exploit the retail market: Invest heavily in technology to create the necessary infrastructure to improve service quality, meet the increasing needs of customers, and proactively face the challenges of the integration process. Take advantage of these

New technological achievements aim to increase customer convenience, reduce management and transaction costs, and at the same time, actively prevent and control risks.

- Develop a comprehensive NHBL product and service development strategy based on market research, identifying the capacity and development goals of each bank. At the same time, it is necessary to determine the roadmap for developing NHBL products and services in each stage and under each bank's conditions.

- Make the most of the advantages of a wide network of branches and understanding of Vietnamese habits to reach more and more customers. It is necessary to expand the network of operations in parallel with improving the quality of the network, boldly improving or eliminating weak operating units.

- Build a specific and clear marketing strategy in banking activities to promote the image and enhance the bank's brand.

CHAPTER 2: CURRENT STATE OF RETAIL BANKING SERVICE QUALITY AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE –

QUE VO INDUSTRIAL PARK BRANCH

2.1 Overview of Vietnam Joint Stock Commercial Bank for Industry and Trade - Que Vo Industrial Park Branch

2.1.1 Introduction to the Vietnam Joint Stock Commercial Bank for Industry and Trade system.

According to the business report, “Vietnam Joint Stock Commercial Bank for Industry and Trade was established on March 26, 1988 after being separated from the State Bank of Vietnam under Decree No. 53/HDBT of the Council of Ministers. After 30 years of construction and development, Vietnam Joint Stock Commercial Bank for Industry and Trade has proven the correctness and timeliness of the Party and State when transforming the banking model from a one-tier to a two-tier banking model and forming a large network of commercial banks under the management and supervision of the State Bank of Vietnam. Thanks to that, the banking system has fulfilled its great task of effectively supporting the development and growth of the economy, improving and raising the living standards of the people”.

According to Vietinbank's annual report, it can be seen that: "With the equity capital from the early days of establishment being only 22 billion VND, up to now, Vietinbank has reached over 63,000 billion VND in equity capital (increased 2,800 times), of which the charter capital is 37,234 billion VND. In addition, Vietinbank's total assets also increased from 718 billion VND to nearly

1,100,000 billion VND, with an increase of more than 1,500 times. Currently, the entire Vietinbank system has nearly 23,000 employees working at the main headquarters, 2 representative offices, 9 public service units, 155 branches and nearly 1,000 transaction offices. Vietinbank's network of operations is not only domestic, but Vietinbank has established a 100% capital bank in the Lao People's Democratic Republic, set up 2 branches in the Federal Republic of Germany and established a representative office in the Republic of the Union of Myanmar. Vietinbank currently has correspondent relationships with more than 1,000 banks in over 90 countries around the world. In addition, Vietinbank also participates in the IndovinaBank joint venture and has a number of affiliated companies.

According to Vietinbank's 2020 overview report, "VietinBank is the only Vietnamese bank to be in the Top 300 Most Valuable Banking Brands in the World for two consecutive times as announced by Brand Finance, ranked 277.3.1.2. Introduction to Vietnam Joint Stock Commercial Bank for Industry and Trade - Que Vo Industrial Park Branch. For the 9th consecutive time, VietinBank has been included in the list of Top 2,000 Largest Enterprises in the World 2020 announced by the prestigious American magazine Forbes. Forbes determined that VietinBank has assets of 53.5 billion USD and a market value of . Two products of VietinBank that have received the Sao Khue Award are VietinBank eFAST and VietinBank iPay Mobile. VietinBank iPay Mobile is honored to receive the Sao Khue Award for the 3rd time and is the only banking product in the Top 10 Sao Khue 2020. That has proven the innovation and improvement with the outstanding features of VietinBank iPay Mobile. Receiving the Sao Khue Award for the 2nd time, VietinBank eFAST - a banking service distribution channel that allows corporate customers to conduct banking transactions via the internet has demonstrated many new steps forward. In 2020, VietinBank was honored to receive many awards from Global Banking & Finance Review Magazine: The 5th consecutive time as the Best Retail Bank in Vietnam; The 3rd consecutive time as the Leading Customer Service Center in Vietnam; For the second consecutive time, VietinBank has been named the fastest growing SME Bank in Vietnam. The International Finance Corporation (IFC) - a member of the World Bank Group, has awarded the Best Issuing Bank in Southeast Asia and the Pacific to VietinBank. This is the second consecutive time VietinBank has received this prestigious award from IFC. The award recognizes VietinBank's contribution to IFC's Global Trade Finance Program.

2.1.2 Introduction to Vietnam Joint Stock Commercial Bank for Industry and Trade - Que Vo Industrial Park Branch

Vietnam Joint Stock Commercial Bank for Industry and Trade, Que Vo Industrial Park Branch is one of the units under the system of Vietnam Joint Stock Commercial Bank for Industry and Trade, operating as an independent commercial bank. Throughout the process from its establishment until now, Vietinbank, Que Vo Industrial Park Branch has always operated and strictly implemented the guidelines, policies and guidelines of the State.

The Party and State as well as the development orientation of Vietinbank Central, contribute significantly to the economic development of the country in general and Bac Ninh province in general and Que Vo Industrial Park in particular.

2.2.2.1. Operational location

Bac Ninh province is a province in the Red River Delta, located in the key economic triangle of Hanoi - Hai Phong - Quang Ninh and is the northeastern gateway of the capital Hanoi. The province's administrative boundaries are adjacent to the provinces of Bac Giang in the North, Hai Duong in the Southeast, Hung Yen in the South and the capital Hanoi in the West. According to statistics, Bac Ninh province has a natural area of 823 km2 with a total population of 1,153,600 people, of which the rural population accounts for 72.4% and the urban population accounts for 27.6%. This population composition tends to shift according to the structure of increasing urban population and decreasing rural population.

With a favorable geographical location, Bac Ninh has continuously made breakthroughs in economic growth and development in recent years, with the total GRDP in 2017 accounting for 3.11% of the country's GDP, ranking 4th out of 63 provinces and cities, with a GRDP growth rate of 18.6% (the plan is to increase by 9.0% - 9.2%). The economic structure continues to shift in the right direction: The industrial - construction sector accounts for 75.2%, services account for 21.8%, agriculture, forestry and fishery account for 3.0%. Industrial production has grown strongly, with the industrial production value in 2017 reaching 979 trillion VND, almost equivalent to Ho Chi Minh City.

Vietinbank Que Vo Industrial Park Branch is located in Que Vo Industrial Park, Van Duong Ward, Bac Ninh City, Bac Ninh Province. This is the largest and most important industrial park in Bac Ninh Province with a total area of 600 hectares. Que Vo Industrial Park is located on an important traffic route, connecting major economic centers such as Hanoi, Hai Phong, Quang Ninh as well as Noi Bai International Airport and international seaports, convenient for transporting import and export of goods. After 10 years of operation, Que Vo Industrial Park has attracted nearly 80 investment projects, mainly foreign investment projects. Including major investors such as: Canon; Foxcom, Mitac, DK UIL, Nippon Steel, Toyo Ink…..

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