Vietcombank – joint stock commercial bank for foreign trade of vietnam managerial aspects analysis

Introduce Management MGT103VIETCOMBANK MANAGERIAL ASPECTS ANALYSIS VIETCOMBANK – JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM MANAGERIAL ASPECTS ANALYSIS Subject: Introduct

Introduce Management (MGT103)

VIETCOMBANK MANAGERIAL ASPECTS ANALYSIS

VIETCOMBANK – JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM

MANAGERIAL ASPECTS ANALYSIS

Subject: Introduction of Management

1 History and Development of Vietcombank

The Bank for Foreign Trade of Vietnam (Vietcombank) was established on April 1, 1963, and is one ofthe State's 23 special enterprises With its reputation in wholesale banking, capital exchange, tradefinance, international payments, and advanced technology applications in banking operations, the Bankfor Foreign Trade of Vietnam (Vietcombank) has always played a key role in Vietnam's banking system.The Foreign Trade Bank has developed into a multi-functional institution Aside from its strong role inwholesale banking with a diverse customer base that includes corporate cardboard and large businesses,Bank for Foreign Trade has established a wide and diversified distribution network that has fueled thegrowth of retail banking and provided SMEs with modern and high-quality banking services.Through itssubsidiaries and joint ventures, it has grown into many other fields, including securities, mutual fundmanagement, life insurance, real estate, infrastructure growth, and so on With the equitization of theBank for Foreign Trade of Vietnam in 2007, a new chapter in the Bank's history begins The Bank forForeign Trade of Vietnam would benefit from changes in modern banking governance in accordance withinternational standards, the expansion of business forms, the development of modern banking productsand services, and technological inputs During the years 2015 to 2020, The Bank for Foreign Trade hasconcentrated on modern banking governance, expansion, and improvement in order to achieve its goal ofbeing one of the region's leading multi-functional financial groups network of branch and transactionoffices The Bank for Foreign Trade's network has grown to include 1 Transaction Center, 58 branches,and 87 transaction offices across the country, 4 domestic subsidiaries, 2 representative offices inSingapore and Paris, and 3 joint ventures The operations of the Bank for Foreign Trade are backed up bythe largest international transaction network among Vietnamese banks With over 1,300 correspondentbanks in over 90 countries and territories, the South is the world's largest financial hub In addition to itsbusiness activities, N Vietnam Foreign Trad e Bank is a member of industry organizations such as theAsia Banking Association, the Asean Pacific Bankers Club, and the Vietnam Banking Association

As the individual in charge of defining the Branch's objectives and plans

Figure 1 Model of Board of Manager in Vietcombank

2.2 Customer service department:

Consists of 3 parts:

 Credit Department: Receives credit reports from customer service and passes them on to the

appraisal department If the application is approved, the department can help with disbursement, sign the document drafting assistant, conduct property procedures, review the disbursement papers, and so on

 Appraisal Department: Receive credit files from the credit department, appraise them, review

them, and send them for approval to the appropriate authorities

 Customers' trade financing and international payment documents are received and processed by

the international payment department, which includes letters of credit, export letters of credit, guarantee banking, thanks for import and export sales, and international money transfers

 Fund accounting department : Data should be used to represent the bank's entire operations in a

complete, timely, and reliable manner, as well as to check and expedite the execution of capital and usage plans Perform regular book statistics and prepare financial statements for

representatives and inspection bodies on a daily, weekly, quarterly, and annual basis Managing the branch's treasury and ensuring its absolute protection, as well as regular cash collection, checking, and managing the bank's cash supply

 Human resource : Advising the Branch Director and putting the personnel organization in place:

negotiating appointments, pay transfers, recruiting of officials and staff under the Branch

Director's supervision, obtaining, releasing track, and archival clerical at the Branch

 General department: Create, track, and review the branch's annual plan's execution Implement

reports as directed by both internal and external management Synthesize, post, and mount

interest rates, exchange rates, and branch fees on the machine in compliance with the head office's regulations Manage the system's product parameter settings in compliance with the headquarters' regulations Serving as a marketing center, disseminating information in order to promote the brand and the branch's image.

 Computer room: It is responsible for establishing services, transmitting data between

departments, and preventing in-time issues in order to ensure that the network functions properly

No.1 bank in Viet Nam, becoming 1 in 100 major banks in Asia One of the world’s 300 largest financialbanking groups and governed by international best practices In the next stage (after 2020), VCB aims to continue maintaining its No 1 bank position in Vietnam and gradually enhance its position in the region

In Vietcombank’s annual report, the bank actively implemented sales promotion programs through salespromotions and emulation; sales support for affiliates; handling customer requests, guide and advisecustomers through the customer service center; and developing a free hotline to serve VIP card customers.Vietcombank has issued policies suitable to each customer segment, opened many training courses oncustomer care skills, focused on keeping traditional customers and expanding potential customers

3 Organizational Structure

Although Vietcombank has numerous branches beneath, its fundamental body's structure is defined asbelow:

Figure 2 Corporate Goverence Model of Vietcombank (Vietcombank Annual Report 2019)

Figure 3 Management Structure of Vietcombank (Vietcombank Annual Report 2019)

3.1 Function of some Committees under Board of Directors:

 Supervisory Board:

Members of the Supervisory Board participated in proficient pieces of training and courses for betterunderstanding of administration to connect transformation projects; proactively checked, encouraged,and coordinated with Departments/Divisions/Centers at the Headquarter and the Branches to performproposition of the Supervisory Board, inner reviews, and suggestions from outside assessment units

 Risk Management Committee :

The Risk Management Committee is responsible for advising the Board of Directors on the approval ofappropriate policies and orientations in each period relating to the management of risks including theBank's determination of ratios, limitations and exposure to risk Risk Management Committee / Head ofthe Risk Management Committee has comments on the loan and / or total loans exceeding 10% ofVietcombank's equity or other matters as requested by the Chairperson of the Board of Directors

 Personnel Committee:

The Personnel Committee is responsible for advising the Board of Directors in considering, evaluatingand proposing the election, appointment, removal, dismissal, public planning the senior managementstaff under the appointment authority of the Board of Directors at the request of the General Director andpromulgating the regulations on salary, remuneration, bonus, staff recruitment, training and otherremuneration policies for Vietcombank's senior managers and key personnel are consistent withVietcombank's business orientation and plan in each period

 Human Resources Committee:

Human Asset Committee prompts BOD with things related to human assets, compensation approaches,pay rates, rewards, and other compensation arrangements of Vietcombank After new policies on humanasset administration were surveyed and issued at the same time, Human Resource Committee effectivelyevaluated and overseen the staff beneath its competence Amid the past time, the arrangement andreappointment of pioneers at the Head office and commerce units have been approved by Human AssetCommittee, contributing to make strides in capacity and quality of staff management

 Board of Directors:

The Board of Directors is the governing body of Vietcombank, has the full authority to act on behalf ofVietcombank to make decisions and perform the Bank's rights and obligations, except matters under itsauthority of the General Meeting of Shareholders The Board of Directors of Vietcombank is responsiblebefore the law, to the General Meeting of Shareholders for the performance of assigned tasks andpowers

Ownership

7 Hong Quang Member, Head of Human

Table 1 Structure of Board of Directors (Source: Vietcombank Annual Report 2019)

3.2 Function of some deparments in Vietcombank:

 Wholesale Banking

Has the function of researching and building mechanisms, policies, and regimes in the wholesalebanking business, developing Vietcombank's product-service portfolio for institutional customers(enterprises, financial institutions, and other organizations); directly implementing banking businessactivities for the Institutional Client Division.

 Treasury and Trading

Planning and organizing capital mobilization, capital trading from the secondary market, balancing thecash flow to ensure the achievement of the total asset target of the department and the overall liquiditytarget according to the budget Being responsible for formulating, proposing, and implementing riskcontrol measure liquidity, exchange rate risk, interest rate risk, operational risk related to capitalmobilization and trading Carrying out foreign currency trading activities, supplying and consulting theCompany's foreign currency derivative products

 Retail Banking

Researching, building mechanisms, policies, and documents for the development of banking productsand services in the retail banking business; directly implementing banking business activities for retailcustomers

 Risk Management

Operational risk management and legislation This committee has many tasks, of which the mostimportant is the independent assessment and control (checking and balancing) of the effectiveness ofbusiness sectors including wholesale banking, retail banking; key risk management through riskappetite/lending policy, development of credit and loan process/guidance, early warning, monitoring, andportfolio management; monitoring of internal control and compliance programs, etc

 Finance and Accounting

Managing finance, balancing capital, ensuring to fully meet the capital source for the operations of theVietcombank and efficiently managing the company's capital and assets to avoid loss and waste; Toproperly and fully fulfill all financial and tax obligations to the State Implementing the accounting work,financial statements, and managing the accounting work under the law on accounting and Vietnameseaccounting standards Performing internal audits for member companies to ensure compliance with thelaws on finance, accounting, and the Vietcombank's regulations Being responsible for reporting andproviding information following the law on statistics

 Human Resources Division

HR ordinarily leads and encourages an appraisal of official and senior administration through a yearlypreparation The process has generally centered on distinguishing the best entertainers for progressionarranging purposes and high-potential workers for improvement openings

4 Organizational Culture of Vietcombank: An application of Schein Model

Figure 4 Schein Theoretical Framework (Source: Dissertation Summary, 2012)

4.1 Artifacts and Manifestation

 Office Layout: Vietcombank office building, known as Vietcombank Tower overlooks Me LinhSquare, one of downtown Ho Chi Minh City’s prime locations Vietcombank Tower has the mostmodern and stature appearance with international standards, designed by a famous designconsultant from the US: Pelli Clarke Pelli Architect - the company designed many officebuildings financial centers and rooms such as the World Financial Center in Hong Kong, PetronasTwin Towers in Malaysia, Bank of America Headquarters in North Carolina With a scale of 35floors, 4 basements, including podiums and radial rectangular towers, Vietcombank Tower isdesigned with the goal of maximizing the usable area while demonstrating modern, strongarchitecture strong compared to neighboring projects, at the same time affirmed the superficialand sustainable stature of the Bank's headquarters

 Language: In general, the official language is exceptionally respectful, provisional, and affable.They attempt to maintain a strategic distance from words that are simple to misjudge since theyknow that one botch can lead to gigantic misfortunes Other than work, they can effectively sharealmost all other things It may well almost a work and life experience, or they talk about a fewcurrent news In some cases, they have dissimilarity on one matter, however, they have neverutilized discourteous words In some cases, they continuously try to appear regarding others Onthe off chance that they don't share common thoughts at the conclusion, they will conclusion thediscourse and alter subjects The dialect employments different circumstances and with diverseindividuals is truly prudent

 Dresscode: Formal clothing could be a must within the office A full set of suits is not obligatoryfor male staff, but a white long-sleeved shirt and a match of pants are For female staff, it isobligatory to wear a green and yellow scarf bow emphasizing Vietcombank character just like theruddy scarf of children, to create them feel like a portion of the organization and mindful of whatthey do would likely be related with and influence the open picture of the company The colorgreen and yellow flag diverse levels of administration: green common staff, yellow - heads ofdivisions Upper classes like chiefs and directors don't have to comply with the uniform rules.

 Manners to customers: The golden principle of maintaining and developing all relationships is

"win-win" Therefore, in the process of providing services or working with customers andpartners, Vietcombank not only focuses on the profit fact Vietcombank staff always be aware thattheir image represents the Bank's image, so it is necessary to pay attention to personal imagethrough dress and hair, which is polite and suitable in the workplace The language is polite, easy

to understand, and the attitude is warm and humble Avoid allowing customers and partners toassociate negative self-implications Besides, Vietcombank people also have to show theirdedication to serving customers and partners in the process of working, taking advantage ofVietcombank's service to introduce customers and partners Avoid the occurrence of controversywith customers and partners.or, tries to sell the service at the highest price but also must ensurethe benefits of customers

4.2 Espoused Values and Beliefs

4.2.1 Vision and mission

In the aforementioned part, Vietcombank's mission is to offer maintainable managing accountadministrations The explanation, in any case, isn't clear sufficient to distinguish Vietcombank amonghandfuls of banks working in Vietnam Following back in history, it is effectively seen that the Bank wasestablished to serve the wants for outside exchange It was then as it was lawfully enrolled bank at thattime and indeed up to present, it was well known for extraordinary validity and a small chance ofinsolvency On the other hand, the bank's vision is so well characterized that it gives enough general data

on the picture of Vietcombank within the close future

4.2.2 Business Philosophy

It is stated in Vietcombank handbook on its cooperate culture that the bank philosophy follows the quote

“Always put yourself in the position of a partner to understand, share, and find the best solution.”

4.2.3 Core Values

All Vietcombank staff and managers or they describe themselves – Vietcombanker adhere strictly fivecore values below as the premise of Vietcombank cooperate culture

Trust: Trust is always the basis for establishing, maintaining, and developing all relationships, especially

in the banking sector Therefore, Vietcombank staffs always respect the preservation of trust Buildingtrust requires a long process and with many efforts, meanwhile, "Fool me once, shame on you Fool metwice, shame on me" The lesson of trust is not only an expression of sustainable business philosophy butmore deeply, it is also the personality of each person Therefore, Vietcombank people need to respect theprinciple of "Speech with action" at any time, anywhere, and in all relationships Maintaining trust alone

is not enough, to be trusted, Vietcombank always proves the ability to handle work and be skilled Bydoing this, customers will entrust their assets to Vietcombank and use Vietcombank services; newsuperiors entrust their subordinates with confidence; new colleagues trust to cooperate and work together

Standardization: Respect principles and standard conduct Vietcombank's brand value is not only affirmed

by Vietcombank's reputation, the quality of Vietcombank's products and services, but an important part isalso derived from its professional working style To achieve this, Vietcombank's staffs always respectprinciples and conduct standards in all their activities

Adaptability: Always ready for innovation and change Life is always moving and there's continuously

something modern and progressed Hence Vietcombank continuously cognizant effectively investigatelearning new things and knowing it was an unused, more advanced, more civilized, they must look for toapply in their daily work in arrange to attain productivity and most elevated quality In any case, inarrange to actualize the modern, it is regularly essential to eradicate the old and obsolete ones, soVietcombank individuals are required to prepare themselves with a dynamic attitude, be prepared to getadvancement, and together bolster and commit themselves to the development of the business

Humanity: Attaching great importance to the good relationships between people and people, maintain

business ethics, devote themselves wholeheartedly to work, unite to help colleagues are the human values that Vietcombank's staff always maintained and developed for nearly half a decade Thanks to thesevalues, Vietcombank has made a difference in the market, overcame all difficulties, and achieved brilliantsuccesses like today To continue promoting noble and beautiful Human values, Vietcombank always putsitself in the position of contact objects (customers, partners, colleagues, ) to fully understand bothadvantages and difficulties that the contact object is facing, to be able to offer solutions "bothunderstanding and reasonable" and certainly also the most optimal solution

Sustainability: Sustainable development is Vietcombank's cross-cutting goal and to ensure that goal,

Vietcombank always respects the principles of safety, equality, and harmonization of interests of allparties in the course of operation To maintain sustainable relationships, the foundation for successfulbusiness development, Vietcombank people not only care for their interests but also consider creatingconditions for customers and partners to succeed together Vietcombank did not benefit their business forthe sake immediate but negatively affect the interests in the long-term Vietcombank people always have a

foreseen vision Work not only for the benefit today but also for the benefits of future generationsVietcombank.

4.3 Basic Underlying Assumptions

 Reliable: Vietcombank staff learn to have confidence in each other in a joined together group.They learn that belief is difficult to gain from clients and individuals in common It may take adeep-rooted to construct but can be crushed within the flicker of the minute Without belief,individuals fair cannot work together well, and to a bank, it is obliterating to be untrustworthy.Subsequently, belief is exceedingly esteemed and takes a parcel of time and exertion to maintain

 Kindness, harmony with the collective, actively participating in activities community: "Whendrinking water, think of its source" always remember and appreciate the contributions made bythe generations of Vietcombank's staff Having a sense of preserving internal solidarity Be frankbut sincere, close, friendly with colleagues Actively participate in and encourage movements,general activities, and festivals organized by Vietcombank Actively participate in gratitudemovements; charity activities, helping the poor, people with disabilities, and families withdifficult circumstances

 Conception of time: Each representative of Vietcombank realizes that "Time is money" Hence,they attempt to diminish delays and handling time in client administrations It is additionallydisplayed within the way they conversation They often cut the story brief as long because itcontains sufficient data to understand

 Conception of Interpersonal Relationship: They attempt to be as decent as conceivable to peoplearound them counting colleagues, accomplices, and clients since they emphatically accept withinthe truth that we are not robots but human

5 Human Resource

Considering the organization has thousands of employees nationally, Vietcombank is an example ofeffective large-scale human resource management In terms of corporate size, market value, and financialperformance, the firm ranks among the biggest banks in Vietnam The firm The company makes certainthat its human resources are supported in meeting business demands and expectations Vietcombankexplores how its operations, such as internal operational processes, contribute to the development of itshuman capital Vietcombank explores how its operations, such as internal operational processes,contribute to the development of its human capital For example, the company addresses its humanresource planning and career design, and how these factors contribute to high employees performance.Vietcombank reasserted its dominance in Vietnam by becoming the only bank to make the list of the Top

10 Best Places to Work in 2019, beating out both foreign and domestic banks According to the survey

"100 Best Places To Work in Vietnam 2019" conducted by Anphabe and market research company Intage,

Vietcombank maintained its status as the most lucrative bank to work with, ranked first in the banking

sector and second overall in the Vietnamese market The bank also entered the “Top 50 Vietnamese

Enterprises with Most Attractive Employer Brand” The 100 Vietnam Best Places to Work 2019 ranking

was compiled by Anphabe, Vietnam's largest career network of management experts, and Nielsen, aglobal business research firm, based on feedback from 26,128 people through three generations and datafrom 24 firms The typical assessment includes 46 factors, especially salary, rewards, and benefits, work-life balance, society and ideals, development potential, corporate name, and leadership staff The bankwas also listed as one of the top three organizations for employee wellness services Anphabe reviewed:

“This is not only the achievement of the management and human resources department but also atestament to the efforts of each Vietcombank employee in building an ideal working environment togetherand spreading positive feelings of the company to the outside.” Moreover, Vietcombank ranked the firstplace in quality of human resource by improving the quality of human resources through recruitment,training policies, rotation and appointment of staff; enhancing staff loyalty and productivity

The total number of workers as of December 31, 2019 was 18,948 With a large and increasingworkforce, Vietcombank's BOD and BOM put a strong emphasis on human resource growth, as it is thereason lead to the bank's success and effectiveness:

 Human resources are managed in line with best practices in order to create, develop, and sustain ahigh-quality team that will help the Bank achieve its goal of being the best bank in terms ofhuman resource quality

 Taking the lead in human resource management by combining versatility, imagination,commitment, and ingenuity On the one side, reorganizing and improving the organizationalstructure in the direction of specialization, streamlining, and performance, as per internationalstandards On the other hand, staff management policies are continuously being revised at alllevels, from recruiting to preparation, selection, promotion, rotation, discipline, assessment, andtraining; and staff evaluation processes are being updated

 Accepted Staffs are appropriate for the hired role Employee quality is regulated by the recruitingphase, which follows a serious and competent recruitment policy

 HR planning exercises are carried out thoroughly and seriously in order to develop a team ofleaders with current expertise and practical experience in operations and management

 Training events are encouraged in order to increase the number and standard of training coursesavailable to employees

 To motivate employees, a flexible compensation framework is created, linking remuneration toefficiency, quality, and results

5.1 Changes of members of BOD and BOM

The composition of the BOD and BOM had some changes as follows:

 Mr Nguyen Thanh Tung, appointed as VCB Deputy CEO from April1st, 2019)

 Mr Dang Hoai Duc, appointed as VCB Deputy CEO from April 1st, 2019

5.2 Network organization of Vietcombank

In 2019, Vietcombank launched 10 transaction offices and 05 new branches (Kinh Bac, Chi Linh, Tan SaiGon, Bao Loc, Ba Ria) As at December 31st, 2019, Vietcombank’s network included:

 Head office

 111 Branches

 472 Transaction offices (including 31 offices approved by the SBV Governor on September 20th,

2019, where 01 office was put into operation on January 2nd, 2020 and 30 offices are expected tolaunch in 2020)

 03 Subsidiaries in Vietnam (Vietcombank Leasing Co., Ltd, Vietcombank Securities Co., Ltd,Vietcombank Remittance Co., Ltd.)

 01 Representative Office in Singapore; 01 Representative Office in the US; 01 RepresentativeOffice in the South of Vietnam and 02 overseas subsidiaries (Vinafico Hongkong, VCB MoneyInc.)

 03 Non-business units (Cash Treatment Center in Ha Noi, Cash Treatment Center in HCMC,Human Resource Development and Training School)

 01 Subsidiary bank in Laos

 04 other joint ventures and associates

Vietcombank has been introducing numerous management solutions at the same time, all of which havebeen flexibly tailored to the business climate

VCB has always prioritized the creation of human resources, making it easier for workers to advance theirskills, build opportunities for career advancement, raise employee income, and improve employee loyalty

In particular:

5.3 Ensuring job stability for employees:

 As of December 31, 2019, the total number of staff (including VCBS and VCBL employees) was18,948, up about 10% from the previous year Working hours are 8 hours a day, five days a week.

In accordance with the Labor Code, Vietcombank offers regular leave, leave on public holidays,and leave for personal purposes, as well as maternity and sick leave in accordance with the SocialInsurance Rule

 In compliance with the statute, all workers sign appropriate labour contracts The Labour Codegoverns the temporary deferment or revocation of labor contracts Employees who need to leaveearly are therefore granted preferential treatment

 In almost every step of the recruiting process, VCB has used information technology (recruitmentsoftware) (receiving, selecting applications, organizing online exams, etc.) In VCB, recruitment

is conducted in accordance with legislation, maintaining fairness and objectivity in the selection

of employees with skills appropriate for their assigned jobs and who follow the work criteria.Probation time and wages are in line with relevant legislation

5.3.1 Creating a financial and non-financial remuneration program to protect workers' interests

VCB's wage and remuneration process system has steadily gained momentum in the country and aroundthe world in recent years, as follows:

- Salary and insurance mechanisms of remuneration:

- Remuneration mechanism regarding salary

In order to be equal and competitive, Vietcombank's pay mechanism is based on the amount ofcontributions made to the bank The overall salary of VCB workers has increased consistently over theyears and is considerably higher than the industry average

Salary of employees is divided into two parts:

 Fixed salary: Calculated according to the rank/grade appropriate for technical roles Employees

will be compensated based on their work title and degree of loyalty, regardless of their seniority

 Efficient salary : Be specified based on KPI-measured efficiency, avoiding the tradition of

"average out," and motivating workers to aim for good results

Vietcombank completed the design and production of KPIs at the unit and entity levels(Departments/Divisions, Branches) At this time, a series of KPIs has effectively brought into play thetask of accurately evaluating employee efficiency, which is an acceptable basis for assigning profits toemployees

In order to hire a required labor force into a variety of unique fields, Vietcombank has developed aspecialist pay mechanism with a very competitive salary for highly qualified workers, as well as launchedtransformation projects for management and service capacity building

In evaluating and organizing employee compensation depending on their ability, quantity, and volume ofwork done, Vietcombank has used a versatile framework and assigned powers to heads of units The wagerise is determined by how much the employee's performance has been evaluated Vietcombank's BOMand BOD would honor excellent successes and programs with successful execution by authorizing anearly pay grade increase.

5.3.2 Mechanism of remuneration for wages.

Vietcombank's pay system is dependent on the amount of money contributed to the bank in order to befair and efficient VCB employees' median pay has grown gradually over time and is now slightly higherthan the sector average.Vietcombank has given heads of units the authority to monitor and arrangeemployee salaries based on their ability, quantity, and quality of work completed The wage rise isdetermined by how much the employee's performance has been evaluated The BOM and BOD ofVietcombank will honor excellent successes and programs with successful implementation by approvingtheir early salary raise In order to hire a required labor force into a variety of unique fields, Vietcombankhas developed a specialist pay mechanism with a very competitive salary for highly qualified workers, aswell as launched transformation projects for management and service capacity building

5.3.3 Extra remuneration beside salary

VCB has developed and introduced educational programmes domestically and abroad to enhance

workers' skills and participation, in addition to direct financial remuneration mechanisms The Bank compensated employees' visits and gave them maternity and sick leave allowances; it sent roses and presents to retiring employees; it sent gifts to employees' natural parents and parents-in-law on

International Day of Older People, and so on

5.3.4 Health insurance, social insurance regimes

Vietcombank has paid social security to all workers who have signed labour contracts with the bank for aperiod of one year or more, and has easily and effectively settled social insurance regimes for employeessuch as maternity and illness insurance rights, among other items According to law, VCB pays socialsecurity to seasonal workers who sign contracts for a period of one month or more Employees who retireare entitled to an appropriate allowance which is calculated on the basis of their salary for socialinsurance payment and the total years of employment In addition, Vietcombank shall pay healthinsurance and unemployment insurance in accordance with the regulations of the State The below is theratio of government security, life insurance, and unemployment insurance: The government securityration is 25.5 percent, with workers contributing 17.5 percent and workers paying 8% Employers mustcompletely enforce health care, which is capped at 4.5 percent, in which employers contribute 3%, whileworkers contribute 1.5 percent Unemployment insurance is a modern form of insurance that has been ineffect since the beginning of 2009 at a rate of 2% (1 percent by employers and 1 percent by employees)

Employees who resign are therefore entitled to an appropriate allowance, which is measured on the basis

of the employee's actual income before taxes for the year prior to retirement

5.3.5 Non-financial remuneration

VCB has adopted non-financial remuneration programs, in addition to overt financial remunerationmechanisms, to inspire workers, such as:

 Purchasing Pjico Benefits for preventive coverage for workers

 Arranging regular health checks for employees

 Visiting and paying allowances for accident, illness, and maternity for union members andemployees

 Implementing Bao An Gia Insurance (Cancer and heart disease insurance) for employees whohave signed indefinite-term labor contracts in the system

 Giving flowers and presents to union officials and workers who resign in compliance with theregime

 Giving gifts to employees' birth parents and spouse's parents on the International Day of OlderPersons

 Establishing domestic and international training programs for employees to enhance theirtechnical abilities,

 Thereby building harmony between employees and Vietcombank

 Organizing educational, tourism, and athletic activities for workers on a daily basis

Aside from the implementation of a fair pay mechanism, the VCB has developed a remuneration regime,which includes:

(i) Quickly and timely settle social insurance regimes such as pregnancy, sickness, etc for employees; (ii) For cases of retirement, maternity leave, disability, fatal diseases or surgery,

Vietcombank also provides employees with additional financial assistance in addition to benefits receivedfrom social insurance;

(iii) Purchase health insurance as well as organize annual health checks for employees In particular,Vietcombank has combined with reputable medical facilities to conduct early screening for cancerdetection for employees since 2017

5.4 Staff development in accordance with the strategy to become the leading bank in the quality of managing the whole procurement process, including job requirements, KPIs, and remuneration schemes.

VCB has always placed a premium on human resource growth, making it easier for workers to advancetheir careers and providing opportunities for advancement

 Human resources are best managed in order to build, develop and maintain a high-qualityworkforce that supports Vietcombank's goal of being the leader in human resource quality

 The quality of employees is controlled from the input with a rigorous, professional recruitmentpolicy; Employees are recruited in accordance with their positions

 Employee remuneration policies and practices have been continuously improved, and wages havebeen linked to the efficiency and effectiveness of the work of the unit and its employees

 Staff planning is done in a full and standard manner, building leadership teams who areknowledgeable and experienced in their field and in management

 Training is promoted to increase the number and quality of training courses for staff

During the past years, VCB has always paid high attention to the development of human resources,facilitate employees to promote their capabilities, create opportunities in career promotion The bank hasgradually achieved certain results in improving income of employees, strengthening the employee loyaltyand trust in the Bank In particular:

 Developing and issuing technical success frameworks; criteria for qualified employees; grantprograms for high-achieving pupils; and direct recruiting processes for exceptional students

 Increasing the proportion of salespeople in the workforce; attracting young graduates andseasoned workers from the industry (including management position)

 Using the Vietcombank Human Resources Development and Training College as a model,improving the standard of training

 Organizing a skills competition and a review of the outcomes to motivate and encourageemployees

 At the Head Office, continue to study and fulfill the arrangement ofDepartments/Divisions/Centers

 Examining the process for increasing partners' pay and profits in order to maintain competition onthe market

5.5 Vietcombank’s Human Resource Planning

Vietcombank is automating the task of evaluating shifts in the population with special tools Theorganization, for example, obtains employee or staff data from its stores The information is fed into acentral archive, where it is organized and analyzed to reveal patterns in human resources and associatedorganizational needs Vietcombank predicts potential future changes in the workforce, such as changes in

HR demand per season or per country, using this forecasting method This circumstance adds to thecompany's human capital versatility

In order to resolve the surplus or shortage of staff, Vietcombank uses its information system to assesswhich areas or facets of the company will experience increased human resource demand and which areaswill experience a surplus HR management at the organization executes sufficient strategies to keep theemployees stable HR plans detail the number of employees required, as well as recommended recruitingschedules and changes in other areas of the company Vietcombank ensures sufficient human resourcesupport in this way Vietcombank's mission in balancing Human Resource supply and demand is to ensuresufficient access to skilled jobs The firm has a continuous process of hiring and training new employees.

In order to consolidate and improve professional knowledge as well as skills, Vietcombank has providedtraining classes for its employees For example, Vietcombank opened training classes for new employees

in Ha Noi Within the framework of the 10-day training program, employees were also introduced toVietcombank's organizational structure and culture, equipped with general knowledge about products andservices, basic operations such as : law, credit, accounting, trade finance, card, anti-money laundering,operational risk management and specific contents according to the nature of each staff position Inaddition, students are also equipped with soft skills to help work in the unit such as teamwork skills,communication skills, skills to recognize signature signs and forged documents, and sales skills.,customer care.With each new staff training course, the Training School always coordinates with the HeadOffice Departments / Centers to constantly research and upgrade program content to continue to improvethe quality and efficiency of the next courses In addition to the knowledge and skills for the job, thetraining course also introduces information about "Vietcombank Culture" and "Office Civilization" withthe aim of helping staff to grasp the basic ethical principles, the core cultural values of the Bank, therebyshaping the standards of civilized and elegant behaviour, knowing how to build the professional personalimage The course helps new employees understand Vietcombank culture, Vietcombank's policies andgoals right from the moment they step in to work to create a systematic, synchronous mindset ofemployees in building an image brand Vietcombank The course with the enthusiastic teachingparticipation of lecturers who are former colleagues, in addition to sharing knowledge, also has practicalexperience in the working process to help new employees have more experience to quickly integrate,adapt as well as promote the best capabilities when working at Vietcombank

New Employee Training Program is a mandatory program for recruiting employees when working atVietcombank, plays an important role in guiding and helping new employees understand basicinformation about the whole business system, as well as adapting to the working environment, equippedwith essential knowledge and skills to improve efficiency, work quality and confidence in the integrationprocess

6 Operation of Vietcombank

6.1 Commercial banking operations

Capital mobilization: Vietcombank mobilizes capital in the accompanying structures:

 Receiving demand deposits, term deposits, saving deposits and other deposits

 Issuing Certificate of deposit, treasury bill, bond to mobilize capital at internality and oversea

 Borrowing capital from State banks in the form of refinancing, borrowing from domestic andforeign credit institutions and financial institutions under the law

 Others capital mobilization

Credit activities: Banks provide credit to domestic and foreign organizations and individuals in the

following forms:

 Loan

 Bank guarantee

 Credit card issuance

 Domestic factoring, International factoring according to the law

 Discount and rediscount of negotiable tools and other valuable papers

 Other forms of credit in accordance with the law

Payment and Treasury services

 Banks open Checking accounts and provide payment facilities, provide Payment services andTreasury to domestic and foreign customers in accordance with the law, payment servicesprovided by banks to customers include:

 Domestic payment service implementation included: cheque, payment authorization, paymentorders, collection of payment, encashment order, letter of credit, credit card, cash collectionservice

 Providing international payment services and other payment services after obtaining the StateBank's approval

 The bank is allowed to organize an internal payment system and participate in the nationalinterbank payment system and join the international payment system after obtaining the StateBank's approval

Other commercial banking services:

 Trading in the money market, foreign exchange market, domestic and foreign futures market inaccordance with the provisions of the law After obtaining the State Bank's written approval, thebank may trade and provide services to domestic and foreign customers with the followingproducts: