Overview of Thai Nguyen Investment and Development Bank Branch

Banks are becoming more and more diversified with better service quality, cheaper costs (both in terms of money and time) and to win in competition, commercial banks must constantly innovate and develop. Innovate service style, innovate in management, develop product network, introduce new banking services, develop and attract more customers to use their services, enhance reputation, attract more profits. Manage banks more closely and reasonably, reduce management costs and thus create better competitive motivation. In the business environment in Vietnam, banks must also pay attention to the international competition factor when Vietnam participates more and more in bilateral and multilateral agreements.

1.2.4.2. Subjective factors

Bank business strategy

Every bank, when implementing any service sector, must build a business plan and a suitable vision. That is the business strategy, built on the basis of investigation and survey of target customers, technological environment, competitive environment, the bank's own resources, etc. The bank needs to determine its current position in the financial system to see the strengths, weaknesses, opportunities and challenges that await it. If a bank determines the importance of service activities in business activities, it will have appropriate resource investments to develop the service. In the business strategy, it is necessary to pay special attention to human and technology issues in order to make the best use of assets and input resources to create outputs that are effective and have the least risk. Customer policies need to be carefully and consistently considered, because they contribute to increasing prestige, increasing market share and winning in competition, affecting the increase in bank profits.

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Marketing Activities

Marketing activities will attract customers' attention to the bank's image so that customers can compare and choose before deciding to participate in transactions with the bank. Building a consistent image that attracts attention

Customer observation is the first issue that commercial banks must pay attention to when building a transaction network. Not only does it create a sense of professionalism in the eyes of customers, but it also simply creates a sense of recognition, deeply imprinted in the minds of customers. Therefore, the image of the bank must create consistency but be different from other banks. The bank's transaction office is the most effective form of brand promotion and bank advertising today.

On the other hand, not everyone understands all the procedures, regulations for depositing money as well as the incentive and preferential policies that they enjoy, especially for customers with low education level and for customers who come to the bank for the first time to deposit money. With bank marketing activities, through full listings, publicizing easy-to-understand utilities will create a comfortable and pleasant feeling for customers, not feeling difficult about the procedures when depositing money. Moreover, marketing activities will help customers find attractive opportunities to deposit money in the bank, creating conditions for banks to contact and maintain long-term relationships with customers.

Bank size and reputation

Banking business is always exposed to risks. The bank's losses will be compensated by the owner's capital (first the risk reserve fund, then the accumulated profits and finally the initial capital). In case of bankruptcy or cessation of operation of the bank, the money will be repaid first, then the obligations to the Government and employees, the loans, and finally the owners. Therefore, the larger the owner's capital, the more secure the depositors and lenders feel about the bank. The bank will mobilize more capital, the cost of capital mobilization will be reduced, and the efficiency of capital mobilization will be improved.

The reputation of each bank in the financial system is a kind of “intangible asset” of that bank. This reputation must be built through many years of effective operation, through advertising and promotion to create the image of that bank in the market.

Bank size is an important factor in determining portfolio structure.

banking services. The capital structure of a bank determines its ability to pay and provide

financial services for customers. While traditional banks only focus on credit activities, most banks today develop in the direction of multi-functional banks, meeting all customers' needs for financial services, diversifying activities to attract more and more customers.

Depending on the size, each bank will focus on the type of service in which it has the most advantage, for example, large banks have the advantage in providing payment services via the Internet; medium-sized banks have the lowest costs for credit card accounts...

Organizational structure of the bank

The structure of a bank includes: the organizational system, the functions and tasks of each department, and the bank's network of operations. In each enterprise in general, the roles, functions, and powers of the leadership at each level are determined at different levels. If the organizational system is implemented according to a suitable structure, with close connections between departments, the orientation, implementation, and evaluation of the bank's operations will become more effective.

The organizational structure has a great influence on the capital mobilization efficiency of the bank. The organizational structure of the bank is arranged and organized scientifically and reasonably, which will create favorable conditions for individuals and departments in the bank to complete their tasks well, thereby improving the capital mobilization efficiency of the bank. On the contrary, if the bank has a cumbersome organizational structure, the departments and departments in the bank are arranged and organized in an overlapping and unscientific manner, it will hinder the development of individuals and departments in the bank. Moreover, with a cumbersome and overlapping organizational structure, the bank's operating costs increase, the bank's profits decrease, and the capital mobilization efficiency decreases.

In particular, for banking services, the banking system needs to build a suitable organizational structure to clearly define operating channels, clearly distinguish between the management apparatus and the department that directly deals with customers, and deploy all activities to better serve customers.

Improve the capacity of bank management and internal inspection and control. This work must be regularly upgraded to the level of technological modernization. At the same time, it is necessary to regularly review internal processes and regulations in the Branch to complete, supplement, upgrade and avoid loopholes that can be easily exploited.

Quality of service provided

Service quality has a great influence on the mobilization efficiency of commercial banks. In the context of increasing competition between banks in providing services, the bank with a diverse and good quality service portfolio will prevail. When the mobilization interest rate and the diversity of capital mobilization forms between banks have little difference, the issue that attracts customers' attention is the highest convenience, good quality and the difference in service characteristics that the bank provides.

Banks with good service quality will attract more customers to do transactions. Customers not only come to the bank to deposit money but also use other services such as payment, guarantee, credit, etc. When customers use many services provided by the bank, the bank will have access to low-cost capital and increase income, thereby improving the efficiency of capital mobilization.

Technical and technological level of the bank

The bank's facilities and equipment are the first factor that attracts the attention of customers. Customers always want to conduct transactions with a bank with a spacious, impressive headquarters, equipped with modern equipment. At the same time, the bank's facilities and equipment have a great influence on the quality of banking services provided. If the bank is equipped with modern equipment, the quality of service will be improved, customers will feel more satisfied and secure when coming to transact with the bank.

Facilities and equipment are important factors that help banks compete on non-interest rates. With the same deposit interest rate, the bank with better facilities and equipment will attract more customers to deposit money, thereby improving capital mobilization efficiency.

Due to market requirements, banking services today are always associated with high-tech equipment including: highly secure internal computer network systems connected to the Internet, telephones, ATMs, etc.

Modern technology will create convenience to improve the quality of banking operations, reduce transaction time and costs, increase control over banking services, update, collect, process and analyze information faster, provide customers with multi-utility services, thereby improving competitiveness and customer loyalty to the bank.

However, modern technology also has the downside of requiring large investment costs, requiring staff to have the appropriate level to master that technology, or customers to have enough knowledge to use modern transaction methods. Banks must base on financial capacity, staff level and customer target to choose to apply appropriate technology to achieve the highest efficiency.

CHAPTER II. CURRENT STATUS OF PROVIDING PRODUCTS AND SERVICES AT THAI NGUYEN INVESTMENT AND DEVELOPMENT BANK BRANCH

2.1. OVERVIEW OF THAI NGUYEN INVESTMENT AND DEVELOPMENT BANK BRANCH

2.1.1. Characteristics of the socio-economic situation in Thai Nguyen province

Thai Nguyen is a midland and mountainous province consisting of 9 administrative units with a total natural area of 3,562.82 km2 and a population of more than 1.27 million people.

Thai Nguyen has the following basic advantages:

- Has rich and diverse economic potential, relatively good land, and climate

not harsh, few storms and floods, has many types of mineral resources.

- There are many large central industrial production facilities including: Thai Nguyen Iron and Steel Industrial Park, Song Cong Mechanical Factory, coal mines of Noi Dia Coal Company, construction material production units: La Hien Cement, Cao Ngan Cement, Asbestos roofing sheets and some processing industries: Song Cau Tea, Quan Chu Tea...

- There is a system of 6 universities, 11 vocational high schools and 9 vocational training centers in the area, contributing to creating momentum for the socio-economic development of Thai Nguyen province.

Besides the advantages, Thai Nguyen also has the following main difficulties:

- Thai Nguyen is a poor province, budget revenue is not enough for expenditure. The economic development is uneven and unstable. Infrastructure is still low, not meeting the requirements of socio-economic development, investment capital for industries is still lacking.

- Production facilities, especially heavy industry, were built many years ago, with outdated equipment and technology. Investment in innovation is slow, production and business efficiency is low, and market competitiveness is weak.

* Main socio-economic development indicators:

- Economic indicators:

+ Average annual economic growth rate (GDP) reaches at least 7%, of which agriculture and forestry 3.5-4%; industry and construction 9-9.5%, services 7-8%.

+ Total export turnover in the area increased by 8%/year.

+ Budget revenue next year is 10% higher than last year.

+ Grain production by 2010 will reach over 500 thousand tons. Tea plantation will be 3000 ha (new planting 2000 ha, replanting 1000 ha), new fruit trees will be planted annually on 1000 ha, new forests will be planted annually on 2000 ha.

+ The economic structure of the province by 2011 is industry-service-agriculture and forestry with the following proportions in GDP: Industry and construction 34-35%, services 33-34%, agriculture and forestry 31-32%.

- Social indicators:

+ Strive to universalize primary education at the right age, complete universal secondary education

Primary school. Replace all permanent and semi-permanent classrooms.

+ Annually create more jobs for 10,000 workers.

+ Reduce average annual birth rate: 0.4 per thousand.

* Orientation of development policies and solutions

- Build and transform the economic structure in accordance with market demand and the province's potential and strengths. Quickly apply scientific and technological advances to production.

- Continue to invest in completing and expanding irrigation capacity, exploiting existing irrigation works, developing hill and forest economy, and promoting rural infrastructure development.

- Actively innovate technology and equipment in key enterprises, regulate product quality and export products to improve quality, infrastructure and diversify products.

- Quickly and effectively implement the project to restore and expand the Thai Nguyen iron and steel complex approved by the government.

- Actively invest in improving construction capacity and quality, rapid development

construction materials manufacturing industry

- Create conditions for the construction of a number of new production facilities such as: Cement, production

construction materials, garment technology, leather shoes, sugar cane...

- Promote combined strength, increase investment in infrastructure construction projects, develop trade and services, effectively serve production development and improve people's lives such as: Transportation, post and telecommunications, electricity and water supply and urban management, trade and services.

- Monetary and credit work:

+ Continue to improve the organization and operation of commercial banks.

+ Expand banking services.

+ Strengthen the state management role in the operations of banks and credit institutions.

- Provide sufficient capital for production and business, increase medium- and long-term capital, and fight against negative corruption in credit.

2.1.2. The formation and development process of the Investment Bank Branch and

Thai Nguyen Development

Thai Nguyen Branch of the Bank for Investment and Development (DBID), under the Bank for Investment and Development of Vietnam, was established on April 26, 1957 with the initial name of the Basic Construction Capital Allocation Department under the Bac Thai Finance Department, the predecessor of the Bac Thai Construction Bank. In 1996, on the basis of separating the Bac Thai Bank for Investment and Development into 02 level I branches, Thai Nguyen and Bac Kan. Thai Nguyen Bank for Investment and Development Branch was officially established under Decision No. 267/QD - TCCB dated December 20, 1996 of the Chairman of the Board of Directors of the Bank for Investment and Development of Vietnam. The branch is headquartered at Group 27, Hoang Van Thu Ward, Thai Nguyen City.

Thai Nguyen Investment and Development Bank Branch (hereinafter referred to as the Branch) is the first bank in the area to have completed the banking technology modernization project since April 2005. All information and data are centrally managed at the head office. It is the leading bank in the province in applying modern information technology to serve banking activities. The branch's machinery and equipment system has been renovated to ensure good service to customers' needs. All transactions at the head office and transaction points are

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