INTERNSHIP REPORT AT VIETINBANK BAC NINH

In this report, I focus on analyzing the performance of individual customer loans at Vietnam Joint Stock Commercial Bank For Industry And Trade VietinBank.. Briefly introduction of Vieti

HANOI UNIVERSITY FACULTY OF MANAGEMENT AND TOURISM

-oOo -INTERNSHIP REPORT

INTERNSHIP REPORT AT VIETINBANK BAC NINH

Student: Nguyễ n Ngọc Ngân An Student code: 1704040001

Supervisor: Đỗ Vân Anh

Major: Finance & Banking

Ha Noi, November 22, 2021

Table of Contents

I INTRODUCTION 4

1 Briefly introduction of VietinBank 4

2 History, mission, and vision of Company 4

3 Products and service lines 5

4 Competitors 6

5 Organization chart 6

II INTERNSHIP PLAN AT VIETINBANK BAC NINH 7

1 Brief introduction about VietinBank Bac Ninh branch 7

2 Intership program 7

III MAJOR ASSIGNMENTS 7

1 Finding potential customers. 7

2 Processing client's loan application 8

IV ORGANIZATIONAL ANALYSIS OF VIETINBANK BAC NINH 8

1 Strength 8

2 Weakness 9

3 Opportunities 10

4 Threats 10

V RECOMMENDATIONS 11

VI REFLECTION ON THE INTERNSHIP 12

1 Knowledge acquired 12

2 Skills and experience gained 12

VII INTERNSHIP SUMMARY 13

REFERENCE 14

Our country's economy has grown stronger and stronger in recent years, and economic growth can be sustained at a reasonable level People's living conditions and earnings have tremendously improved, and their requirements have greatly improved Since then, lending activities to individual customers in the Vietnamese market have become exciting with the participation of domestic and foreign commercial banks It is another potential and crucial field in which many banks are interested in expanding In this report, I focus on analyzing the performance of individual customer loans at Vietnam Joint Stock Commercial Bank For Industry And Trade (VietinBank) The internship at VietinBank Bac Ninh is a fantastic opportunity for me to apply what I've learned in school to real- world situations, allowing me to gain a more realistic perspective on investing and other bank activities.Besides that, I used the SWOT model to examine the strengths, weaknesses, opportunities, and challenges of the bank, and then proposed a number of solutions with the desire to contribute my personal thoughts to the company improvement in order to achieve the goals set forward.

I INTRODUCTION

1 Briefly introduction of VietinBank

Registered name: VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE

Trading name: VietinBank

Banking License: No 142/GP-NHNN dated 3rd July 2009 by the State

Bank of Vietnam

Trademark:

Headquarters: 108 Tran Hung Dao, Cua Nam ward, Hoan Kiem district,

Ha Noi City, Viet Nam

Certificate of Business Registration: No 0100111948 by Hanoi

Department of Planning and Investment for the first issuance on 3rd July

2009, registered for the 12th amendment on 8th September 2021

Tel: (84-24) 3942 1030

Fax: (84-24) 3942 1032

Securities code: CTG

Website: https://VietinBank.vn

2 History, mission, and vision of Company

The State Bank of Vietnam established the Vietnam Industrial and CommercialBank (Incombank) in 1991 as one of the country's first four commercial banksfollowing the adoption of a two-tier banking systehm According to other reports,the bank was founded in 1988 By the year 2000, the bank had 48.7 trillion VND

in total assets, 40.7 trillion in deposits, and 26.2 trillion in debts Largegovernment programs in priority sectors such as postal services,communication, processing, and construction material received the majority ofloans, but there was also lending for non-commercial objectives such as floodrelief and training funding for poor students

The government pressed VietinBank, like other major commercial state banks, tokeep lending to unprofitable state enterprises In December 2002, thegovernment issued a 1 trillion VND recapitalization, thereby doubling the bank'scharter capital (from 1.045 trillion in 2001) It was the only major state bank thatdid not participate in the second round of recapitalization in 2003.

In April 2008, Incombank changed its name to VietinBank In July 2009, it waslisted on the Ho Chi Minh City Stock Exchange In 2011, VietinBank increased itschartered capital by issuing extra shares to current owners, bringing totalchartered capital to 20.23 trillion VND (about $1 billion) by the end of the year.State stockholders owned 80.3 percent of the bank's stock at the time

With a nationwide corporate network, VietinBank aims to be A leading multi-functional, modern and efficient bank in Vietnam, being among the Top 20 strongest banks in the Aisa-Pacific region by 2030; and by 2045, being the strongest and most prestigious bank in Vietnam, a leading bank

in the Asia-Pacific region and a highly reputable bank in the world.

3 Products and service lines

In general, VietinBank’s products and services include the following items:

Domestic VND wire transfer servies

Overseas wire transfer service

- Foreign currency trading

Spot Exchange

Forward exchange

Foregin currency options

Vietnam Sakura benefit

package 4 Competitors

In Vietnam, the banking and finance market is intensely competitive; there are approximately a hundred different banks brands, including domestic and national branches As a result, VietinBank in general, and VietinBank Bac Ninh branch in particular, are in a very competitive market.

5 Organization chart

VietinBank is divided into severeal departments The division of departments is

mainly based on the operations that the department undertakes Each department

has its own set of functions and responsibilities, but they are all linked

and mutually supportive.

1 Brief introduction about VietinBank Bac Ninh branch

VietinBank Bac Ninh branch is located at 31 Nguyen Dang Dao, Suoi Hoa ward,central of Bac Ninh city In recent years, the VietinBank Ninh branch's Board ofDirectors and personnel have faithfully followed the guidance of the Joint StockCommercial Bank for Industry and Trade of Vietnam (Bank of Industry and Trade),the State Bank of the province, and various departments and agencies Looking forappropriate solutions and being proactive in the workplace should have yieldedexcellent results In terms of credit work, the branch primarily focuses on financing foreffective production and business strategies in Bac Ninh province, as well as lending

to traditional clients that have a solid financial potential The branch's businessresults as of December 31, 2020 were: Outstanding debt reached VND 3,826 billion,capital reached VND 3,078 billion, profit reached VND 98.9 billion

My internship period starts from September 6, 2021 to November 8, 2021 as a time salesman I worked in the sales and distribution department, where I had toseek for and process individual customer loan applications In addition, I was able tocommunicate with and collaborate with different departments involved in thedocument handling process During the mission, I took part in professional training

full-courses, learnt banking regulations and abilities, and saw and experienced work in

a real-world setting.

1 Finding potential customers.

Customers can be attracted in a variety of ways, including web marketing, leafletdistribution, and working on behalf of other banks and financing organizations Interms of web marketing, the Team Leader showed me how to establish, design

a distinct page for running advertising, and write captivating content articles thatdescribed the emphasis and highlighted the business's advantages to attractreaders I learned how to set up a Facebook advertising campaign and publishadvertisements on Credit Loan groups to find clients during that period.Distributing leaflets, on the other hand, delivers a higher volume of visitors to theSales team than advertising articles in the workplace

2. Processing client's loan application

The lending process for individual customers at VietinBank Bac Ninh branch is also a common process of VietinBank and includes the following basic steps:

- After receiving customer information and determining the customer's needs, I will conduct a loan consultation, explain the terms, and direct the customer to produce the required papers to finish the loan application.

- Then banks and credit companies will conduct an appraisal of the documents provided bythe customer to see if they are eligible for a loan Appraisal of documents will help banks and financialcompanies accurately assess the accuracy of the information provided by customers before making aloan decision

- Legal, customer to ensure loan eligibility, assessment of organizational structure, credit connection status, production and business capacity, and financial capacity then all are covered in depth by expert appraisers.

- When the application is granted, the bank will send the customer a commitment

contract detailing the loan amount, term, and interest rate, among other

details, for the two parties to sign.

Firstly, lending to individual customers is a key activity that brings the mainincome for VietinBank Bac Ninh branch During the period of 2017 - 2020, theBranch's individual customer loans always accounted for a high proportion,ranging from 52% - 55% of the branch's total outstanding loans and contributedgreatly to the branch when net income in 2019 is VND 56.96 billion

Secondly, the quality of the branch's outstanding loans to individual customers is

at a safe and controllable level However, the branch should pay attention tostrengthen the appraisal and handling of loans to reduce overdue loans and baddebts because overdue debts, bad debts of the branch are tending to increase.Thirdly, the branch has effectively utilized and exploited the development potential ofBac Ninh province The branch has built and created a very good personal lendingplatform in the area of craft villages, as well as in cities and towns to serve thelending activities of individuals for production and business Outstanding loans forproduction and business accounted for 91.5% of outstanding loans to individualcustomers according to the loan report of the Government branch in 2020

Fourth, the branch's transaction network is large, covering many key economic areas

of Bac Ninh province such as Bac Ninh City, Tu Son Town, Yen Phong and Tien Dudistricts, these are all areas with many craft villages, industrial parks or provincialadministrative centers All transaction points of the Branch are located in the center

of the administrative unit, convenient for customers to transact

Fifth, the team of customer relations officers and departmental leaders of thebranch with good professional qualifications, well-trained sales appraisal skillsare always ready to find and exploit customers in all locations is one of thefactors that make up the current size of the branch's individual customers

Firstly, the growth of outstanding loans is not commensurate with the potential ofthe branch when Bac Ninh province is one of the leading economic developmentpoints in the country VietinBank Bac Ninh has many advantages over otherbanks in the area to develop personal loans, that is, long operating time, largeindividual customer base, large transaction network, team quality staff,experienced, convenient transaction location However, the growth rate ofoutstanding loans to individual customers of the branch was only on par withsome large banks in the area

Secondly, the branch's proportion of consumer loans is still low compared to itspotential, accounting for only 8.5% of the total outstanding loans to individualcustomers Bac Ninh has a lot of potential for consumer loans because theeconomy has continuously grown over the years, the population is growing fast

on average 2.9%/year, the population is young, there are many big real estateprojects in the province such as: Vincom Bac Ninh, Royal Park, Cat Tuong….Therefore, the branch has a lot of potential for consumer lending because of itsdiversified consumer loan products, with the available potentials that the Branchhas not yet taken advantage of to develop consumer lending

Thirdly, the quality of outstanding loans to individual customers is on a downwardtrend Although the branch's debt quality is still controlled, bad debts and overduedebts are posted at 2.14% of the total outstanding loans to science and technologyand 1.13% of the total outstanding loans, but if the lending to individual customers isnot well controlled by measures such as selecting loan customers, diversifying andfocusing on bad debt settlement, the branch may generate more new bad debtswithout handling old bad debts, damaging development results

3 Opportunities

To begin with, banks are increasing their investments in digital technology.Banks can use digital banking to accurately assess and score their clients'behavior, spending habits, and credit history, allowing them to offer the mostcompatible product packages Banks can reduce bad debts and bad debts from

"high-risk" customers thanks to customer credit scoring, while taking better care

of and achieving higher satisfaction among consumers with strong credit scores.Secondly, the State Bank's new policies In order to assist the operations ofnumerous commercial banks, particularly small banks, the State Bank actedpromptly and proposed solutions and scenarios that were appropriate for newand loosened credit growth laws, with a focus on commercial bank supervisionand liquidity control This has improved the financial system's efficiency andstability, providing opportunities for the banking industry in the first half of 2020

The State Bank's new policies have partially mitigated financial risks for banks in terms of Circular 01 business support, such as interest rate reductions and debt restructuring.

The last one is deep specialization The government's interference in thebusiness activities of firms will be decreased and limited when integrationpledges are implemented This environment allows Vietnamese businesses tobecome more engaged in the marketplace while also allowing them todemonstrate their talents and qualifications Domestic financial companies arebeing forced to specialize even more in operations in order to quickly access anddevelop new banking services, improve capital utilization efficiency, and exploitand apply more effective advantages of various types in order to increase marketshare in domestic and international financial markets Domestic companies areforced to act according to market principles as a result of internationalintegration, and increasing competitiveness improves corporate efficiency

Initially, the branch's market share in individual customer loans decreaseddramatically Because many banks are opening branches or expanding existingbranches in Bac Ninh province, the capacity to grow and develop personal loans

is becoming increasingly tough Particularly, the branch's outstanding loans areconcentrated in a number of traditional craft villages, such as woodworking craft