Orientation for Development of Technology and Banking Payment System to 2020.

Fourth: Modernize banking technology and payment systems.

- Modernize the banking transaction system. Actively promote e-commerce and develop new banking services based on information technology platforms, especially electronic and automated banking services;

- Continue to upgrade the wide area network and information technology infrastructure with technical solutions and communication methods suitable to the development level of the Vietnamese banking system and international standards and practices. Complete and develop basic banking management models; management and operational processes and procedures according to international practices and standards;

at the same time towards modernization and integration into a complete and centralized banking management system;

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- Strengthen the safety system, information security, data and network security. Implement projects to improve and upgrade network security solutions, data security, ensure the safety of assets and operations of the State Bank and credit institutions. Build a system of information security, data and network security, including urgently completing and putting into use the Backup Data Centers or Disaster Recovery Centers of the State Bank and credit institutions. Research and develop a strategy for data transmission lines, linking with the national information network.

to create a proactive position for the banking industry;

- Improve and upgrade the information technology systems of the State Bank and credit institutions. Develop and implement joint projects and develop ATM systems. Develop bank card service companies and appropriate payment organization models;

- Reform the current banking accounting system according to international accounting standards, especially issues of debt classification by quality, risk level, risk provisioning, income and expense accounting;

- Continue to improve the information, statistics and internal reporting systems of the banking sector to build a modern, centralized and unified management information system and national database. Deploy an internal information network throughout the entire system based on the application of information technology and network technology.

3.1.3.2 Orientation for development of technology and banking payment system to 2020 .

Developing modern banking technology infrastructure on par with other countries

in the region based on the effective application of advanced information technology, electronics and international standards and practices suitable to Vietnam's conditions. Currently

Comprehensive modernization, synchronization of banking technology of the State Bank and credit institutions in terms of operations, management and technical means. Quick access, effective operation and mastery of advanced banking technology applications.

Strive to build a safe, efficient and modern banking payment system on par with the development level of countries in the region (in terms of technical infrastructure, institutional framework and payment services). Develop a nationwide electronic payment system; modernize the interbank electronic payment system. Strengthen the role of state management and payment services, advanced, safe and effective non-cash payment forms and services.

3.1.3.3 Orientation for currency market development to 2020

Develop a safe, synchronous and highly competitive monetary market to create an important basis for planning and operating monetary policy, effectively mobilizing and allocating financial resources, and minimizing risks for credit institutions. Consolidate and develop the interbank market with a market operation mechanism. Develop the bond and treasury bill bidding market and the open market.

Promote the Government's securities issuance agency activities. Increase the number and types of securities with high safety and liquidity allowed to be traded on the open market; at the same time, loosen restrictions on market access for credit institutions. Strengthen the linkage of operations and management and operation between the component money markets; between the money market and the stock market. Limit administrative intervention in the operation of the money market.

3.1.4 Orientation of operations of Vietnam's commercial banking system in the process of international integration

3.1.4.1 General goals and development roadmap of the Vietnamese commercial banking system

- Building a financially strong bank with diverse modern banking services that are competitive enough with domestic and international banks.

- Increase the competitiveness of the commercial banking system in the domestic and international financial markets, shortening the gap with other countries. Implement

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Committed to integration, gradually enhancing the strength of the commercial banking system in terms of capital, infrastructure, market share, scale and quality of operations.

To achieve the above goal, the Vietnamese commercial banking system in general will follow the following specific roadmap:

- By the end of 2008: Initially overcome some weaknesses of commercial banks; restructure and innovate commercial bank operations towards enhancing management capacity, rationalizing the branch network, organizing the management structure well and improving the ability to analyze finance and evaluate credit. Some large commercial banks are qualified.

allowed to open representative offices abroad.

- Since 2010: A number of major changes have been achieved in infrastructure, capital sources and service types, the safety and operational efficiency of commercial banks have increased, forming a number of strong commercial banks capable of competing in the domestic and international markets.

- From 2020: Commercial banks will operate according to international standards in terms of capital, management, information technology, meeting capital and payment needs, and at the same time playing a certain role in the regional and international financial markets.

3.1.4.2 Operating principles of the joint stock commercial banking system in Hanoi.

To develop commercial banking activities in Hanoi, to improve the efficiency of capital use, to improve competitiveness, operational efficiency and meet the conditions for international economic integration of the banking industry, it is necessary to implement the following principles:

Firstly , strong enough in capital, modern in technology, diversified in modern banking services, ensuring human resources: safe and effective development and growth. Most importantly, in the process of operation, commercial banks must implement risk management, liquidity management, and establish a warning system in operation.

Second , handling existing problems at the same time as financial restructuring, improving the financial situation, on that basis can develop and improve business capacity and efficiency. Implementing this principle is to build a solid financial foundation for commercial banks.

Third , proactive integration: on a stable and solid financial foundation, commercial banks do not stop at operating within the territory but must proactively

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expand further to countries in the region and the world to access foreign investment capital, modern technology, and modern management methods to further improve the operational capacity and competitiveness of the Bank.

Fourth , make the most of your position and accept competition. This is a mandatory principle of confrontation, to determine who you are and how you can survive. Through competition, the bank's position is further affirmed.

Fifth , joint development. The operation of the Vietnamese banking system in the market mechanism has a different characteristic from that of banks in the world, which is "competitive but not confrontational or destructive". Therefore, the operation

The performance of banks today is not based solely on their practical capabilities.

To develop, the problem is to unite to develop, the more developed the more competitive. This principle is complementary.

Sixth , customer performance is the bank's performance. This is a chain principle, also a principle of the bank's goals and motto. The stronger and more developed the customer, the more the bank develops. On the contrary, if the customer is weak and unable to pay, the bank will also be at risk of losing its ability to pay.

3.1.4.3 Forecasting the development prospects of joint stock commercial banks in Hanoi

- The scale of operations in terms of capital, financial capacity, and information technology level will develop strongly on par with banks in the region. Foreign investment capital will be strongly attracted through capital contribution and share purchase of international financial institutions in domestic commercial banks. Currently, there are a number of foreign strategic investors buying shares of Vietnamese banks: Techcombank, VPBank, Habubank, SeABank.

- Implement and provide many modern banking products and services, improve management and operation capacity and apply modern technology like strong banks in the region and the world. Conduct currency transactions in the international market such as foreign exchange trading and international payments...

- Operating according to international standards, creating images, affirming reputation and brand in the regional and world markets.

- In the coming time, some commercial banks will develop their network of operations abroad. Play a certain role in the regional and international financial markets.

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international.

3.2 Solutions to improve the efficiency of capital use of joint stock commercial banks in Hanoi in the process of international integration

3.2.1. Group of solutions to ensure a safe and effective operating environment for joint stock commercial banks in Hanoi

Improving the legal environment

- The State Bank of Vietnam should soon study, consider, supplement and amend

Change and improve policy mechanisms and legal corridors to be open, consistent with international practices and in line with integration requirements.

- For joint stock commercial banks: (1) Continue to closely monitor the operations of some joint stock commercial banks with low business efficiency, losses, and weaknesses. If they cannot call for new shareholders to contribute capital to increase charter capital and compensate for financial losses, bad debts increase too high due to the risk of insolvency, insolvency, they will be put under special control or if prolonged, their operating licenses may be revoked.

(2) Direct measures to force a number of state-owned banks to restructure their debts and quickly improve their financial situation, improve credit quality and efficiency; (3) Amend and supplement policies to create equal conditions for credit activities.

banking activities and in accordance with international practices and in accordance with each commercial bank; (4) Strengthening the banking inspection and supervision of the State Bank,

At the same time, regularly monitor and urge management to rectify each commercial joint stock bank, especially joint stock banks with loss-making business operations, high bad debts and many violations after inspection and examination to promptly prevent risks...

- For some joint stock commercial banks in Hanoi: Well implement the goals, tasks and solutions in the international integration process of the Government, the banking industry, and the Hanoi banking industry, joint stock commercial banks in the area proactively grasp the State's economic orientation and forecast, need to base on the Government's economic development policy, forecast the global economic situation, base on the credit growth guidance of the State Bank of Vietnam, on the growth rate of previous years, to review credit activities in the past time, reasonably manage assets, liabilities, liquidity and capital sources, promptly overcome unreasonable capital use, to ensure safety and improve business efficiency; improve quality and diversify operations, in

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That is, paying special attention to credit quality; developing and improving the quality of banking services, ensuring sustainable safety is a prerequisite. Joint-stock commercial banks in Hanoi regularly forecast and closely follow the advantages, difficulties and the ability to exploit the resources of the capital's economy, economic developments, import and export exchange rates, market interest rates to have measures and forms of capital mobilization suitable to the requirements of credit investment and business activities, ensuring safety and improving the efficiency of capital use of commercial banks, contributing to stabilizing the currency, promoting economic growth; At the same time, creating a solid step, proactively

international economic integration

- Joint stock commercial banks and each joint stock bank need to regularly review to supplement and promptly edit the system of internal regulations and procedures, risk management in all aspects of operations. Banks that have not yet issued an internal credit rating system need to urgently submit it to the State Bank for consideration and approval.

- Joint stock commercial banks must have a strategy to increase charter capital by increasing profits and reducing bad debts. Specifically: Joint stock commercial banks in Hanoi must diversify their service network, develop existing traditional services and operations, and at the same time deploy modern services - services that bring high profits, review and classify debts to have appropriate handling directions.

- Strongly develop banking products and services, enhance the competitiveness of banks, meet the needs of the economy and social life of our country according to new requirements. Commercial banks in general, and joint stock commercial banks in particular, must develop services in the direction of improving the quality of traditional services and developing new services.

- Commercial banks in general and joint stock commercial banks in particular must focus on building brands and enhancing reputation not only in the domestic market but also abroad.

- Developing the financial and monetary markets to meet the strict requirements of the international economic integration process. Synchronously developing all types of markets, including the financial and monetary markets, is a major policy of the Party and the State and is a more necessary requirement as Vietnam is moving closer to integrating into the region and the world such as AFTA, the Vietnam-US Trade Agreement, and the WTO.

- In the competition of banking operations, modern banking technology plays an important role. When modernizing operations, banking technology plays a decisive role, so modernizing banking technology

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Banking is an inevitable and urgent task of banks in general and of commercial banks in Hanoi in particular to firmly step on the path of integration.

- Promote exchange and cooperation with countries and international organizations

to seek assistance and enhance integration into regional and global financial markets.

- Develop an overall strategy for competition and integration.

- Perfecting the organizational model according to international standards of a modern commercial bank.

- Establish and maintain internal control and audit mechanisms.

3.2.2. Internal solution group from joint stock commercial banks in Hanoi city

3.2.2.1. Complete solution for multi-functional, modern business strategy suitable for each joint stock bank

- Based on the requirements of international integration of the banking industry and the competition in the financial and monetary market, commercial banks in general and joint stock commercial banks in Hanoi in particular must have appropriate business strategies and specific roadmaps. In 2008, most joint stock commercial banks headquartered in Hanoi had limited, weak and extremely difficult retail business strategies due to lack of VND and foreign currency capital, having to borrow daily on the interbank market to ensure liquidity and ensure compulsory reserves (RE). In addition, joint stock banks with multi-functional and modern business strategies operate more stably and firmly, with relatively high profit and loss results despite operating in a difficult context in the world and domestic economy, causing significant impacts on the operations of the banking system. In 2009 and the following years, the Joint Stock Commercial Bank with a multi-functional business strategy will continue to develop its customer base and products, promote the implementation of the Microbanking retail strategy in key areas, especially focusing on service quality, perfecting the organizational structure and sales culture. Strengthening technological support in products, processes, service applications, ... on the other hand, continuing to implement the network development strategy in priority areas according to the strategy set out in the plan, upgrading some transaction offices into branches, consolidating the operations of old branches and transaction offices.

Some large-scale commercial banks need to focus on human resource development.

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to prepare for major developments in 2009 with a focus on strengthening system security, while developing key areas and making breakthroughs in some strategically important areas, focusing on improving business operations through focusing on building and strengthening operational quality by improving the service quality of customer transaction officers, especially transaction accountants, to improve service quality for all customer contact activities.

Continue to complete and implement banking operating projects, cooperation programs with business partners; deploy the T-risk system to better support the bank's risk control work; continue to deploy the ECM system in depth and breadth; effectively exploit the ARC - CRM system to actively support new customers; continue to deploy new features of the Contract Center system; invest in upgrading the security management support system... and manage the quality of the technology system.

Promote marketing and communication activities according to the plan. Continue to develop the internal management system of the MIS system to analyze more deeply the effectiveness of each customer, each branch, transaction office, even each staff, each product, from which forecasts can be made, and timely information provided to the board of directors to make reasonable business decisions. Improve internal processes in the direction of ensuring safety to create convenience in customer transactions as well as within the bank, strengthen the review of accounting and finance work, expand the management accounting process, and strengthen control of the decision-making process.

Continue to promote the effectiveness and organizational structure and apparatus of the blocks, centers, departments and offices of the Headquarters. 2009 is expected to be an important year for the State Bank of Vietnam.

points, accelerate programs to improve the apparatus, risk management capacity and business policies to strengthen the ability to overcome the crisis, continue to maintain sustainable development. The business plan in 2009 with priority orientations is to strengthen the system, upgrade the monitoring system and manage liquidity risk, market risk, and operational risk across the entire system to ensure safe and sustainable growth.

There needs to be measures to create a breakthrough in retail banking strategy in a synchronous manner in selected areas. Promote the process of personalization in construction.

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