Developing car loan service for individual customers at Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Tu Son – Bac Ninh branch

Developing car loan service for individual customers at Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Tu Son – Bac Ninh branch Developing car loan service for individual customers at Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Tu Son – Bac Ninh branch Developing car loan service for individual customers at Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Tu Son – Bac Ninh branch Developing car loan service for individual customers at Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Tu Son – Bac Ninh branch Developing car loan service for individual customers at Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Tu Son – Bac Ninh branch Developing car loan service for individual customers at Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Tu Son – Bac Ninh branch

in Finance-Banking-Insurance(Customer relationships management)

WORK PLACEMENT REPORT

Joint Stock Commercial Bank for Investment and Development of Vietnam 

Developing car loan service for individual customers at Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV)

Tu Son – Bac Ninh branch

Names of student:Nguyen Thi Thanh Van

University year: 2019-2022

Tutor at TMU: Mrs Dang Thi Minh Nguyet

Tutor at USTV: Daphne Duvernay

Tutor at (Company): Mrs Nguyen Thi Thuy

Ha Noi - 2022

TABLE OF CONTENTS

TABLE OF CONTENTS i

LIST OF TABLES iii

TABLE OF CHARTS iv

ACKNOWLEDGE v

INTRODUCTION 1

CHAPTER 1: OVERVIEW OF BIDV , BIDV TU SON-BAC NINH BRANCH AND THE INTERNSHIP 3

1.1: Overview of BIDV 3

1.2: Overview of BIDV Tu Son - Bac Ninh branch ( Host firm ) 4

1.3: Introduction of my internship 6

1.3.1: Why the topic 6

1.3.2: Internship plane 7

CHAPTER 2: INTERNSHIP IMPLEMENTATION AT BIDV TU SON – BAC NINH BRANCH 8

2.1: Current status of car loans at the branch 8

2.1.1: Car loan products for individual customers of BIDV Tu Son - Bac Ninh branch 8

2.2: The internship position, responsibilities and tasks 9

2.2.1: Department structure and internship position 9

2.2.2: Business procedure and work placement responsibilities 10

2.2.3: Daily tasks 11

2.3: Some business cases 12

2.3.1: Case No 1 ( succeed ) 12

2.3.2: Case No 2 ( succeed ) 14

2.3.3: Case No 3 ( failed ) 15

2.4: Service analysis 17

2.4.1: Customer research 17

2.4.2: Competitor analysis 22

2.4.3: SWOT Analysis 23

2.5: KPI and KPR 24

2.5.1: Key performance Indicator - KPI 24

2.5.2: Key performance result - KPR 25

2.5.3: Host firm assessment and recommendation 25

CHAPTER 3: INTERNSHIP ASSESSMENT 27

3.1: The difficulties encountered 27

3.2: Acquired practice 27

3.3: Career plan 27

CONCLUSION 29

APPENDICES 30

LIST OF REFERENCES 33

LIST OF TABLES

Table 1: Internship plan at BIDV Tu Son - Bac Ninh branch 7

Table 2: Car loan data for customers of the branch in the last 3 years ( 2019-2021) 9

Table 3: Table of daily task 11

Table 4: Customer profile 12

Table 5: Customer information 14

Table 6: Customer information 15

Table 7: Comparison table of interest rate 22

Table 8: SWOT of BIDV Tu Son - Bac Ninh branch 23

TABLE OF CHARTS

Chart 1: Diagram of individual customer rooms at BIDV Tu Son- Bac Ninh branch 10

CHART 2: AGE 18

CHART 3: JOB 18

CHART 4: PRODUCT USE TIME 19

CHART 5: MONTHLY INCOME 19

CHART 6: CUSTOMER SATISFACTION WITH THE PRODUCT 20

CHART 7: LEVELS OF CUSTOMERS' DISASTER ABOUT US PRODUCTS 20

CHART 8: If given a choice, which bank would you choose to get a car loan for individual customers? 21

In order to successfully complete the internship as well as the final report, Ireceived the enthusiastic attention and guidance of teachers from the Thuong MaiUniversity, the University of Toulon, and the bank staff with many words ofencouragement invaluable guidance from everyone Internship for three months atBIDV Tu Son - Bac Ninh branch is one of the most honorable things I have done.First of all, I would like to thank the administrators and teachers of Thuong MaiUniversity, during the 3 years of study, they have imparted to me valuable knowledge,skills and experiences that have helped me to complete my career into this importantgraduation thesis

Second, I would like to thank the tutors of this project - Ms Dang Thi MinhNguyet from Thuong Mai University and Ms Daphne Surverney from the University

of Toulon for taking the time to support and guide me in completing this projectreport

Finally, I would like to thank all the leadership and staff of BIDV Tu Son - BacNinh branch for helping me during my internship, especially Ms Nguyen Thi Thuy -deputy guest room manager My personal banker is also my tutor, giving me theopportunity to have real experience at the bank

Sincerely ,

In recent years, Vietnam has always been a country with a high and stableeconomic growth rate compared to other countries in Southeast Asia, the economycontinues to grow at an impressive rate compared to many other countries In addition,economic development policies are always concerned by the State, continuouslyadjusted to suit the domestic economic situation and the fluctuations of the regionaleconomy Therefore, Vietnam is gradually becoming an attractive destination fordomestic and international investors The deep and wide integration of the economyhas opened up strong development in many fields, the participation of many sectorscreating the driving force for the economy to develop in both depth and breadth.Among the contributions of these economic sectors, it is impossible to mention thesystem of commercial banks, commercial banks act as a bridge between people withexcess capital and those in need of capital, ensuring the maintenance of capital.maintaining the balance of "capital supply - demand" for the whole society Especiallywhen lending is the activity that brings the largest source of income and is extremelyimportant for the existence of commercial banking systems Therefore, the problem inthe current period of integration and development for commercial banks is to expandall lending products, raise the level of lending activities in both depth and breadth,especially focusing on improve lending performance

During my time working at the Joint Stock Commercial Bank for Investment andDevelopment of Vietnam, I had the opportunity to learn more about the business areas

of the bank, including the auto loan segment Joint Stock Commercial Bank forInvestment and Development of Vietnam has also set a goal to promote retaildevelopment, aiming to be one of the leading banks in retail and consumer lendingactivities in the system of commercial banks trade in Vietnam I chose the topic “Developing car loan service for individual customers at Joint Stock Commercial Bankfor Investment and Development of Vietnam (BIDV) Tu Son - Bac Ninh branch’’ forthe report

Research plan: Overall goal of the project: Improve car loan service forindividual customers at the branch

Plan details:

+ Learn about car loan products (interest rate, loan term, )

+ Research the level of customer satisfaction and dissatisfaction with car loanproducts and services

+ Proposing loan development solutions to develop and expand auto loanservices and improve the bank's competitiveness with other commercial banks

CHAPTER 1: OVERVIEW OF BIDV , BIDV TU SON-BAC NINH BRANCH

AND THE INTERNSHIP

1.1: Overview of BIDV

Name: Bank for Investment and Development of Vietnam JSC

Contract name: BIDV

Logo:

CEO: MR Phan Duc Tu

Address: BIDV Tower, No 194 Tran Quang Khai, Ly Thai To Ward, HoanKiem District, Hanoi

Phone: (+84) 24 22200588

Sector: Housing, automotive, travel , financial services, utilities andtelecommunications

History and development :

BIDV was founded on 26 April 1957 under the initial name of Bank forConstruction of Vietnam, then renamed Bank for Investment and Construction ofVietnam (1981 - 1990), Bank for Investment and Development of Vietnam (1990 -2012), and Joint Stock Commercial Bank for Investment and Development of Vietnam(since 2012)

1957 - 1981

Founded when the country was active in the period of economic recovery, theBank for Construction of Vietnam made important contributions to the managementand allocation of capital for construction

1981 - 1990

On 24 June 1981, the Bank for Construction of Vietnam was transferred from theMinistry of Finance to the State Bank of Vietnam under the new name Bank forInvestment and Construction of Vietnam

1990 – 2012

In 1990, the Chairman of Council of Ministers issued Decision 401/CT regardingthe establishment of Bank for Investment and Development of Vietnam on the basis ofthe renaming of the Bank for Investment and Construction of Vietnam

2012 - present

BIDV was equitized according to the direction of the Government, ensuring theharmony in the interests of the State, enterprises, investors and employees, operatingunder market mechanism with a strong direction for international integration

Mission: BIDV brings the best benefits to customers, shareholders, employeesand the community

Vision: BIDV's vision is to become a financial institution leading in SoutheastAsia, with a good digital platform Vietnam, strives to be in the group of 100 bankslargest in Asia

Core value: Customer orientation – Innovation – Professionalism – Socialresponsibility

1.2: Overview of BIDV Tu Son - Bac Ninh branch ( Host firm )

Address: 368 Tran Phu Street - Dong Ngan - Tu Son - Bac Ninh

Phone: 0241.3760455

Branch was established on September 1 , 2009

The total number of BIDV Tu Son - Bac Ninh branch : 100 employees

The branch provides products: payment accounts, payment deposits, insuranceand e-banking services About the need to use loan services

History and development

Before 1982, the bank was named Ha Bac Construction Bank and wasresponsible for the service of receiving capital from the state budget for distributionand lending in the field of

main Two ordinances were issued with the aim of perfecting Vietnam's bankingsystem South to suit the market mechanism under construction.

According to Decision No 401 dated November 14, 1991 of the Chairman of theCouncil of Ministers Bank for Investment and Development of Vietnam wasestablished and headquartered at 194 Tran Quang Khai, Hanoi, with charter capital ofVND 200 billion and affiliated branches in provinces, cities and special zones directlyunder the Central Government By 1995, all allocated capital was handed over to theDevelopment Investment Department under the Ministry of Finance

After January 1, 1995, Hebei Investment and Development Bank was allowedmobilize short, medium and long-term resources from individuals and economicsectors to short, medium and long term loans to individuals and economicorganizations

According to Decision No 265 of the Board of Directors of the Bank forInvestment and Development Vietnam on December 20, 1996 on the establishment of

a branch of the Bank for Investment and Development Bac Ninh

January 1, 1997 Bac Ninh bank branch was separated become a second-levelbranch directly under the Bank for Investment and Development of Vietnam Up tonow, the branch of Tu Son Bank for Investment and Development has had two moretransaction offices: Chau Khe and Dong Quang

It is easy to see that Hebei Investment and Development Bank since itsestablishment

Established in 1995, it only operated as a state-owned bank with the task ofreceiving capital

from the state budget and conduct loan allocation in the field of capitalconstruction Since 1995 the branch has actually operated as a real commercial bank.And Bank branches are constantly expanding and growing, gradually taking over addmarket share other than the market share mainly of construction enterprises

BIDV Tu Son - Bac Ninh branch organizational structure:

( Source: Document diagram of the branch's departments)

1.3: Introduction of my internship

1.3.1: Why the topic

With the current growth rate of the world economy, Vietnam is also graduallymaking significant changes in all aspects of social life Opening up for economicintegration is also a condition to promote the development of many economic sectors,including the banking sector, specifically credit Besides, our country's population isnow over 90 million people, people's income is constantly improving, people'sspiritual life is increasingly improved, besides with the open door policy of theeconomy The domestic economy has attracted many domestic and foreign enterprises

to invest in the transport sector, making this market more exciting than ever, especiallythe automobile market Many new product lines have been launched, diversified indesign and flexible in price, becoming the focus of choice of many people This leads

to an increase in car loans by commercial banks Therefore, commercial banks alwaysstrive to develop car loan packages to promptly meet the needs of individual andcorporate customers Tu Son town is now Tu Son city densely populated and peoplewith stable income economy People gradually switched to using cars instead ofmotorbikes as the main means of transportation Because of that, Joint Stock

Branch manager Vice president

Accounting and

treasury

department

Administration and HR department

Transaction office

Dong Quang transaction ofice

Chau Khe transaction office

Business planning department

Commercial Bank for Investment and Development of Vietnam (BIDV) Tu Son - BacNinh branch is one of the long-standing and active banks in the province Tu Son Inorder to meet the needs of customers and improve its position compared tocompetitors, BIDV also launched many credit packages suitable for each customer,including a loan package for the purpose of purchasing sell cars.

1.3.2: Internship plane

Table 1: Internship plan at BIDV Tu Son - Bac Ninh branch

From: 07/03/2002 to

11/03/2022

Learn in particular the branch as well as the transaction offices and departments in the branch

Learned and understoodthe departments, metwith the bank's staff and interns at the bank

From: 16/05/2022

to:27/05/2022

Task 3 / Mission 3: Find out the strengths and weaknesses of the service and propose solutions

27/05/2022 Task 4/Mission 4:

Complete my work replacement report

CHAPTER 2: INTERNSHIP IMPLEMENTATION AT BIDV TU SON –

BAC NINH BRANCH 2.1: Current status of car loans at the branch

2.1.1: Car loan products for individual customers of BIDV Tu Son - Bac Ninh branch

- Customers who borrow to buy a car at BIDV bank will enjoy the followingspecific incentives:

+ The process of getting a car loan is simple and convenient

+ Preferential and flexible car loan interest rates Interest is calculated on agradually decreasing balance, this form helps customers reduce their financial burden.+ The maximum loan limit is up to 100% of the value of the car the customerwants to buy (in case the customer can guarantee the debt payment ability with thebank)

+ The term of a car loan is up to 7 years

+ BIDV's consulting staff is professional and enthusiastic

- Loan process

+ Step 1: Customers wishing to contact BIDV, register information about creditneeds (through BIDV's Branches/Transaction Offices/Hotline/Website) And completeand re-supply the loan application according to the regulations + Step + Step 2: Afterreceiving the loan application, BIDV will appraise the credit extension and notify theresults to customers within the prescribed time;

+ Step 3: Sign documents/contracts, complete relevant procedures (such asnotarization of security assets, registration of security transactions, if any);

+ Step 4: Disbursement of loan/guarantee issuance;

+ Step 5: Coordinate with the Bank to carry out the work after the loan isdisbursed/issuance of the guarantee (full payment of the loan, use of the loan for theright purpose, coordination of the re-valuation of collateral (if any) ) )

Flowchart of car loan process for individual customers at the branch

( Source: As provided by the bank staff )

Table 2: Car loan data for customers of the branch in the last 3 years (

Debt collection revenue 1.913.515 2.685.613 3.785.378

( Source : According to the business report on car loan service for individual

customers at BIDV Tu Son - Bac Ninh branch )

In general, products for 3 consecutive years (2019-2021) tend to increase Loansales showed signs of increasing slightly but not significantly from 2 million to 3million Debt collection revenue increased rapidly from 1 million to 3 million within 3years

2.2: The internship position, responsibilities and tasks

2.2.1: Department structure and internship position

I am doing an internship in the personal client room under the supervision ofMrs Nguyen Thi Thuy, my direct guide at the bank and also a car loan office in thepersonal customer relationship segment In the personal customer room I practice,

Step 3:

Sign documents/

contracts complete revelant procedures

Step 4:

Disbursement of loan/guarantee issiauance

Step 5: Coordinate with the bank to carry out the work after the loan is disbursed /issuance

of the guarantee

there are quite many employees who are headed by the head of the department, thedeputy

Chart 1: Diagram of individual customer rooms at BIDV Tu Son- Bac Ninh

branch

(Source : Document diagram of the branch's departments)

2.2.2: Business procedure and work placement responsibilities

I am currently assigned to any task, that position helps me to understand moreabout credit officer Tasks I have to do regularly:

- Talking to customers about their needs when participating in car loan servicesfor individual customers at BIDV Tu Son - Bac Ninh branch Communicate withcustomers more clearly about loan interest rates, loan terms, loan documents,

- Copies of documents such as identity card, collateral

- Call to remind customers: bank due date,

- Collecting customer information and analyzing customer needs to proposemeasures to improve the quality of car loan services for individual customers

- Send an online survey to customers who have used car loan services at banks

- Always help every other employee in the bank

Head of department

Credit officer

(Mrs.Nguyen

Thi Thuy) Counselor Counselor Surveyor

Vice of department

2.2.3: Daily tasks

I work at the bank every day from Monday to Friday, the morning work starts at8:00 AM to 11:30 AM and the afternoon work starts at 2:00 PM to 5:00 PM To workefficiently, I creat a table below:

Table 3: Table of daily task

the bankers the necessary questions

info for my project

- Learn in particular the branch

as well as the transaction officesand departments in the branch

Help any task available at the

moment

Tuesday Meeting with everyone in the

office about the plan for the week

Help any task available at the

moment

necessary things: help with making records, photocopy documents…

Meet customers with bank staffand introduce products to the

customers

necessary things: help with making records, photocopy documents…

Meet customers with bank staffand introduce products to the

customers

necessary things: help with making records, photocopy documents…

- Stay to consult the branch's solution to overcome the car buying service with brothers and sisters in the same department

- Meet customers with bank staffand introduce products to the

customers

- Weekend summary meeting

2.3: Some business cases

2.3.1: Case No 1 ( succeed )

Table 4: Customer profile

Profile customerName , age , gender Ngo Thanh Tam - 45 years old - Female

Monthly income 15 million / month

Need of customer - Want to borrow 300 million to buy a car

- Learn about interest rates on car loans

- Want a long-term loan within 4 years

* Product information

- Loans for car purchase for travel purposes, business purposes

- Loans for buying cars for new and used cars

- Loan term: Maximum 7 years ( 84 months )

- Currency of loan: VND

- Loan interest rate:8%/year

- Loan amount: Maximum up to 100% of vehicle value

- Fixed principal and diminishing interest

* Loan conditions:

- Vietnamese citizens or expatriate individuals

- Collaterals meet BIDV’s requirements

- Regular and sufficient income for payment

* Registration Profile

- Loan application form (in the form of BIDV)

- ID card/passport, permanent residence/temporary residence book

- Documents related to car loans: Purchase contract, car purchase invoice

- Documents proving the source of debt repayment: Labor contract/salary, salarystatement

- Documents related to collateral

- Relevant documents (if any)

- Step 1: Introduce product information so that customer can understand

- Step 2: Tellers make loan documents and customers must submit collateral tothe bank such as: red book, real estate

-Step 3: The teller goes to survey the collateral of the customer who wants to takeout a car loan to check if the customer can really repay this loan from the bank

- Step 4: Once the customer has signed, they can give cash to the customer ordeposit it into the customer's bank account

 RESULT: SUCCESS

+ Customers have mortgaged real estate

+ The customer's situation is able to pay the outstanding loan of the car loanservice

 Lessons learned

- I did a good job explaining in detail to customers about car loan services forindividual customers such as loan interest rates, loan duration, contract terms andconditions

- Understand how to calculate the amount to be paid including monthly interest

of customers who choose car loan service