MID COURSE INTERNSHIP REPORT HOME LOAN CREDIT APPRAISAL AND LENDING FOR PERSONAL CUSTOMERS AT CT GROUP

FOREIGN TRADE UNIVERSITYHO CHI MINH CAMPUS MID-COURSE INTERNSHIP REPORT Major: International Finance and Banking HOME LOAN CREDIT APPRAISAL AND LENDING FOR PERSONAL CUSTOMERS AT CT GROUP

FOREIGN TRADE UNIVERSITY

HO CHI MINH CAMPUS

MID-COURSE INTERNSHIP REPORT

Major: International Finance and Banking

HOME LOAN CREDIT APPRAISAL AND LENDING FOR PERSONAL CUSTOMERS AT

CT GROUP

Name: Đặng Thị Thảo Nguyên Student ID: 1913316109

Class: K58CLC2 Supervisor: Lê Trung Thành

Ho Chi Minh City, July 2022

TIEU LUAN MOI download : skknchat123@gmail.com moi nhat

FOREIGN TRADE UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM

HO CHI MINH CITY CAMPUS Independence - Freedom - Happiness

MIDTERM PROFESSIONAL REPORT REMARKS

Student’s full name: Đặng Thị Thảo Nguyên Student code:

1913316109

Name of the report: Home loan credit appraisal and lending for personal customers

at CT group

Assessment of compliance with regulations, progress and work ethics

(Maximum of 1.0 point, with one decimal

number):

Remark (circle the appropriate one):

1 The student has completed the report properly under the guidance of the supervisor Thesupervisor is responsible for the title, purpose, subjects, scope and research method(s), and chapters’ titles,and main headings of the report (3 digits):

1 8-1.0 point(s)

2 The student has failed to carefully follow the supervisor’s instructions The supervisor isresponsible for chapters’ titles, purpose, subject, scope and research method(s), and titles and main headings

of the report (2 digits): 0.5-0.7 point(s)

3 The student has failed to carefully follow the supervisor’s instructions The supervisor is not

responsible for the report: 0.1-0.4 point(s)

4 The student has totally failed to follow the supervisor’s instructions The supervisor rejects the

submission of the report: 0 point

Ho Chi MinhCity,… /… /

Supervisor

(Signature with full name)

(This page is intentionally left blank)

TIEU LUAN MOI download : skknchat123@gmail.com moi nhat

LETTER OF DECLARATION

I certify that this report does not incorporate without acknowledgement, any

material previously submitted for a degree or diploma in any university, and to the

best of my knowledge and belief it does not contain any material previously

published or written by another person, except when due reference is made in the

text Finally, I hereby declare that I am the sole person involved in the preparation

and completion of this report under the guidance of my supervisor

Ho Chi MinhCity,… /… /

Author

(Signature with full name)

Đặng Thị Thảo Nguyên

(This page is intentionally left blank)

TIEU LUAN MOI download : skknchat123@gmail.com moi nhat

This is my internship training report after completion of internship training at CT

Group Vietnam, Ho Chi Minh city in 2022 With my endeavor to accomplish the

report, I was continually gathering material, brainstorming ideas, and drafting the

outline Obviously, despite my best efforts and focus, this report cannot be

produced without mistakes Therefore, I wish to express my heartfelt gratitude to

Mr Lê Trung Thành, who is the internship training supervisor, for all of your

enthusiasm, dedication in supporting relevant and relevant knowledge, and practical

experience to assist me and other students successfully completing the internship

Moreover, I also thank Mr Nguyễn Tân Hoàng Phương, Chief Executive Officer of

CT Group also who is supervisor in charge of the internship training, Department of

Finance Who gave me a golden opportunity to follow the particular practical

internship training in the CT Group and be guidance, necessary support,

co-operation, encouragement, and the fullest effort of them to the success of this

opportunity, all are grateful and unforgettable All of that together has strongly

facilitated me to acquire boundless knowledge, a crucial skill set, and precious

experience

Finally, my deepest thanks come to the teachers of Foreign Trade University – Ho

Chi Minh City Campus for their enthusiasm and dedication to teaching, as well as

for providing me with a solid foundation of professional knowledge throughout the

past three years

(This page is intentionally left blank)

TIEU LUAN MOI download : skknchat123@gmail.com moi nhat

TABLE OF CONTENTS

LIST OF ABBREVIATIONS

LIST OF TABLES AND FIGURES

PREFACE

CHAPTER 1: INTRODUCTION OF CT GROUP VIETNAM

1.1 Overview of CT Group

1.1.1 Brief history and development of CT Group

1.1.2 General Information

1.1.3 Organizational hierarchy chart of CT Group

1.1.4 Business outcomes of CT Group in 2019 - 2021

1.1.5 Importance of Credit Appraisal of home loan to CT Group

1.2 Summary of internship activities

CHAPTER 2: CREDIT APPRAISAL PROCEDURE OF HOME LOAN IN CT GROUP 10

2.1 Overview of home loan process for personal customer at CT Group 10

2.2 Steps of credit appraisal of home loan for personal customer at CT Group 12

2.2.1 Step 1: Legal assessment 13

2.2.2 Step 2: Appraising creditworthiness 13

2.2.3 Step 3: Appraising loan application 14

2.2.4 Step 4: Assessment of proof of income and repayment capability 14

2.2.5 Step 5: Preparing credit appraisal report 15

2.3 Discussion of credit appraisal of home loan for personal customer at CT Group 16

2.3.1 Strengths 16

2.3.2 Limitations and explanations 17

CHAPTER 3: THE OUTLOOK, ORIENTED DEVELOPMENT AND RECOMMENDATIONS FOR IMPROVEMENT OF HOME LOAN CREDIT APPRAISAL AND LENDING PROCESS FOR PERSONAL CUSTOMERS AT CT GROUP 18

3.1 The outlook of CT Group Vietnam 18

3.1.1 Opportunities 18

3.1.2 Challenges 19

3.2 Orientation for development of CT Group 19

3.3 Recommendations for improvement of home loan credit appraisal of personal

customers at CT Group 20

3.3.1 Improvement in human resource 20

3.3.2 Improvement in technology system 21

CONCLUSION 22

REFERENCE 24

TIEU LUAN MOI download : skknchat123@gmail.com moi nhat

LIST OF ABBREVIATIONS

ASD Agency and Sales DevelopmentCIC Credit Information CenterCRM Customer relationship management

PFO Personal Finance Officer

LIST OF TABLES AND FIGURES LIST OF TABLES

Table 1 1 Total Profit of 2019 - 2021

Table 1 2 Total Profit Analysis 2019-2021

Table 2 1 Evaluation approach of home loan in CT Group

LIST OF FIGURES

Figure 1 1 Organizational hierarchy

Figure 2 1 Credit extension process for home loans at CT Group

TIEU LUAN MOI download : skknchat123@gmail.com moi nhat

Nowadays, housing is one of the most pressing issues in modern society,particularly for young people who lack the financial resources to own a home orinvest in real estate As a result, banks are dominating in the form of housing loans

to encourage credit and investment, as well as to expand the economy On the otherhand, CT group, which is a real estate company, still operates in many fields,including financial services, management consulting services, economic-marketanalysis for businesses domestically and internationally And among the group'sfinancial services on bonds and trust funds: property Development Loan,investment Loan, asset backed security, recuritization, syndicated loan, issuingbonds, rates and FX, convertible bond, private equity, Home loan is one of thecompany's indispensable, distinctive and distinguishing services in the real estateindustry, in order to leverage investment and create beneficial circumstances

Credit assessment is crucial to this process because it makes it much easier toidentify credit risks before, during, and after loan disbursement An efficient creditappraisal ensures an effective credit management procedure for the company toregulate and monitor their risks For that reason, it is essential to establishconsistent and updated guidelines for evaluation criteria so as to promote andmaintain a clear and plausible credit procedure overall

With the intention of acquiring certain knowledge of the home loan appraisalprocess I have decided to perform my internship in the Finance Department, CTGroup and conduct my report with the topic of “Home loan credit appraisal andlending process for personal customers at CT Group” including three majorchapters:

Chapter 1: Introduction of CT Group Vietnam Chapter 2: Credit appraisal procedure of home loan in CT Group Chapter 3: The outlook, oriented development and recommendations for

improvement of home loan credit appraisal and lending process for personalcustomers at CT Group

This report aims to show clearly how CT Group evaluates loan applications and

then decides whether to approve or reject a credit extension request through my

observation during my internship I assess my own performance, evaluate the

process, and give some suggestions for improving this process

TIEU LUAN MOI download : skknchat123@gmail.com moi nhat

CHAPTER 1: INTRODUCTION OF CT GROUP VIETNAM 1.1 Overview of CT Group

1.1.1 Brief history and development of CT Group

C.T Group was established in 1992 by Mr Tran Kim Chung, operating in industriessuch as: Real Estate, Retail, Construction, Financial Investment, Ecotourism Inwhich, real estate is a key industry, playing an essential part in the company'sdevelopment

C.T Group does not limit its operations to real estate, but also develops into manyother industries with the goal of becoming a typical multi-industry company inVietnam, increasing the awareness of Vietnamese brand values There are othersocial activities to help construct a more developed and modern Vietnam

The corporation now owns 36 member companies with about 2000 workersworking in various industries At the same time, CT Group currently owns morethan 1000 hectares of property The company's projects include a wide range ofindustries, and its high-quality goods provide clients with a comfortable location tolive and work

Initially, Saigon Trading Company Limited was the company's original name Oneyear later, the business's name was changed to C&T Trading and Service Co., Ltd,and a subsidiary company, Him Lam Ltd, was founded In the following years, thecorporation continued to grow and formed numerous new member companies,including C&T International Joint Stock Company in 1998 The new business wasformally designated C.T Group - a multi-industry organization - in 2006 This is awatershed moment for the corporation dubbed "the claw of the Vietnamese dragon"

by the Wall Street Journal The company's growth rate is increasing, and it isswiftly taking the lead in Vietnam's real estate industry

CT Group represents dynamism and diversity The company was founded at a timewhen the country was entering an era of innovation and integration, and despite

numerous challenges, it has become one of the real estate industry's monuments Up

to now, with 30 developments, the company has received countless prestigious

awards, becoming a partner of many well-known companies both at home and

abroad Furthermore, CT Group is consistently ranked in the top of the best

enterprises in Vietnam

1.1.2 General Information

Name of organization: CT Group Vietnam

Website: ctgroupvietnam.com

Head Office: Léman Luxury Apartments, at 117 Nguyen Dinh Chieu Street, Ward

6, District 3, Ho Chi Minh city

Telephone number: (84 08) 6297 1999

Fax : (84 08) 6297 2000

Tax code: 0308469355

E-mail: info@ctgroupvietnam.com

1.1.3 Organizational hierarchy chart of CT Group

Chairman of the Board of Directors of C.T Group Vietnam is Mr Tran Kim Chung

He is reported to have graduated from Harvard University in the United States As

the founder, he has made significant contributions to the growth and success of CT

Group as it is today Partners always have faith in him because of his ability to lead

and think strategically Last but not least, he also occupies a number of specific

roles in businesses or at international exchange conferences

TIEU LUAN MOI download : skknchat123@gmail.com moi nhat

The business today controls 36 member firms, employing around 2000 peopleacross many industries Regarding the personnel structure, the finance departmentnow employs 60 workers, including collaborators and interns.

Figure 1 1 Organizational hierarchy

1.1.4 Business outcomes of CT Group in 2019

-2021 Table 1 1 Total Profit of 2019 - -2021

Table 1 2 Total Profit Analysis 2019-2021

In the financial year 2019, CT Group generated an amount of Net Revenue of over

VND 350.00 Billion, however, a tremendous amount of Profit before Tax was

recorded due to a Reversal of Provision for doubtful receivables which made the

TIEU LUAN MOI download : skknchat123@gmail.com moi nhat

Total Expenses become a gain As a result, 2019 is still a successful financial year for CT Group regarding not having a large Net Revenue.

The figures in Table 1 have demonstrated precisely a challenging year 2020 that CTGroup had to surpassed as the corporation’s data has decreased significantly.Although the amount of Expenses in financial year 2020 was only VND 271.20billion which is relatively low compared to financial year 2018, CT Group stillrecorded a small gain in Net Revenue of 3.03% as well as a significant drop inProfit before Tax of 85.11%; the figures for those financial data are VND 366.99billion and VND 95.79 billion, respectively

Nonetheless, these financial data of CT Group during the 2020 - 2021 period arecompletely reasonable due to the fact that most of the industries in the economy arecritically affected by COVID-19 pandemic

1.1.5 Importance of Credit Appraisal of home loan to CT Group

Home loan was formed at CT Group when the demand for capital, money to buyhouses, and investments increased sharply in the real estate market Recognizingconsumer and customer preferences, CT Group has implemented a new strategy toprovide the greatest experience and prospects for customers as well as growingproduct commercial potential

Although house loans are not CT Group's primary financial activity, it doescontribute to the company's relationship with clients and serve as a distinguishingfeature among real estate businesses Home loan is not only an indispensable,distinctive and differentiating service but also strategic leverage to promotebusiness for the company when both customers and the company can benefit from

it Customers are supported with capital to invest, and to fulfill their requirementsand achieve their goals, thus generating advantageous conditions and attracting alarge number of customers, meeting customer needs and bringing profits to thecompany

The goal of the credit evaluation is to objectively analyze the customer's ability to

pay as a foundation for the loan decision Credit evaluation is critical since it

provides rules for loan extensions and reduces exposure to bad debts It also

includes assessing the consistency of a production plan or investment project

proposed by customers when they request a loan, analyzing and assessing the risk

level of the project and the collateral used to secure the loan, and allowing credit

officers to minimize the likelihood of two types of mistakes in loan decisions:

lending a bad project and refusing to loan a good project

1.2 Summary of internship activities

Being given the fantastic chance to work as a finance intern at CT Group was an

honor During the five-week training there, I have received enthusiastic guidance

and assistance from the Finance team The team members provide me with several

opportunities to study, observe, and put my newfound knowledge into practice

At the start of the internship term, the finance department prioritized introductory

training sessions to acquire a fundamental understanding of the company's finance

and project and accounting manual At the same time, I was introduced to the

office, director and positions in the company In addition, the author was guided on

company culture, learned about 5S and Kaizen principles The majority of the work

assigned by the line manager involved organizing files and reviewing data

pertaining to empty returnable packages Aside from the concentrated training

sessions, I was also given the opportunity to self-discover missing information from

the team members' actual working experience Along with these jobs, I gained

experience by assisting the line manager with ad hoc chores

Throughout the following weeks, I became more acquainted with asset-related tasks

such as the credit extension procedure I was given instructions on how to set up an

assessment procedure and record information on the internal system As a

consequence of the options to get access to this procedure, I decided to choose the

TIEU LUAN MOI download : skknchat123@gmail.com moi nhat