Luận văn human resource development at headquarters of vietnam bank for agriculture and rural development hung yen branch

wT 1.2.4 Factors affecting the human resource development of commercial banking industry ..26 DEVELOPMENT AT HEADQUARTERS OF AGRIBANK -HUNG YEN BRANCH 31 2.1 CHARACTERISTICS OF AGRIBANK

IIUMAN RESOURCE DEVELOPMENT AT IIEADQUARTERS OF

VIETNAM BANK FOR AGRICULTURE AND RURAL

DEVELOPMENT- HUNG YEN BRANCH

PHAT TRIEN NGUON NHAN LU

NONG NGHIEP VA PHAT TRIEN NONG THON VIỆT NAM — CHI NHANH TINH HUNG YEN

Chuyén nganh: Quan tri kinh doanh

Mã số: 60 34 01 02

LUAN VAN THAC Si QUAN TRI KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: T'S TRUONG MINH DUC

IIA NOI - 2020

DECLARATION

The author confirms that the rescarch outcome in the thesis is the result of author’s

independent work during study and research period and it is not yet published in other's research and article

‘The other's research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given

‘The anthor is responsible in front of the Thesis Assessment Committee, fanoi School

of Business and Management, and the laws for abovz-mentioncd declaration:

Ianoi, 30" September 2020

AUTIIOR

Talso would like to express my sincere thanks to the Board of Director and all the cadres

of Agribank Hung Yen Branch for their enthusiastic help, providing necessary information and documents, enabling me to complete this thesis

Thank you so much

Hanoi, 30" September 2020

AUTHOR

‘THLEORETICAL BASIS OF HUMAN RESOURCE DEVELOPMEN

1.1.1 Research situation in Vietnam

1.1.2 Overseas research situation

1.2 THEORETICAL BASIS OF HUMAN RESOURCE DEVELOPMENT

1.2.1 BaSic eonGEbfS run rrrrrrrririirirrrrrrirrrerriroeeouỔ

1.2.2 Criteria for evaluating human resource development of commercial banking inđustry1 | 1.2.3 Content of human resource development of commercial banking industry wT 1.2.4 Factors affecting the human resource development of commercial banking industry 26

DEVELOPMENT AT HEADQUARTERS OF AGRIBANK -HUNG YEN BRANCH 31

2.1 CHARACTERISTICS OF AGRIBANK — HUNG YEN BRANCH AFF

THE DEVELOPMENT OF HUMAN RESOURCES

2.1.2'The formation and development process of Agribank - Llung Yen Branch 3A

2.1.3 Operations and business results 0Í he Agribank Hung Yen Branch's Headquarters in

2.2 SITUATION OF HUMAN RESOURCE DEVELOPMENT AT HEADQUARTERS

2.2.1 The Development status of the scale and structure of imman resources at Headquarters

2.2.2 Development status of human resource quality al Headquarters of Agribank Hung Yen

ÔÔÔÔÔÖÔÖÔÖÔ'-2.2.3 Analysis of factors affecting human resource development at Ieadquarters of

3.1 VIEWPOINTS AND ORIENTATIONS OF LIUMAN RESOURCE DEVELOPMENT65

65

3.1.2 Viewpoints and orientation for Human resouree development at Headquarters of

3.1.1 Human resource development oricntations of Agribank

3.2 HUMAN RESOURCE DEVELOPMENT SOLUTIONS AT HEADQUARTERS OF AGRIBANK- HUNG YEN BRANCH

3.2.1 Human resource development planning and planning solutions - 67

3.2.2 Solutions for recruiting lmman resources

3.2.4 Solutions for taining and professional training to improve the quality of human

3.3.3 For relevant human resource training iIIsHtHiONS àcceccoy ae TỔ

REFERENCES

« Journal/periodical articles

To Ngoc Hung (2010), Current situation and solutions to develop high quality

resources for Vietnam's hanking sector in the period 2010 - 2620, Joumal of Vinancial and

‘Monetary Market No 22/2010

Dang Hoang Linh, Nguyen Duc Tuan (2018), Hranan resources in banking operations and some recommendations, Banking Journal No, 23/2018

© Books

Tran Xuan Cau (2012), Textbook of humun resources economics, Publishing House of National Economics University,

Tran Kim Dung (2018), Human Resource Management, Finance Publishing Houss

Nguyen Tiep (2005), Textbook of Hionan Resources, Labor and Social Publishing

House

Richard A Swason, Elwood F Iolton Ill (2001), Foundation of Human resource

development, Beuctt-Kochler Publishers, Inc., San Francisco

Neal E Chalofsky, Tonette S Rocco, Michael Lane Moris (2014), Handbook of

Human resource davelopment, John Wiley & Sons Publishers, Inc., Hoboken, New Jersey

© Popers

National Assembly [2 (2010), Lew on Credit Institutions

Bank Govemance Leadership Nelwork EY (2018), The fidure of talent in banking:

workforce evolution in digital ara

Agribank Hung Yen Branch (2017-2019), Report on the Branch's operations

«© Dissertations

Alexander Ardichvili, Alexander Gasparishvili (2001), Human resource development in

an industry in transition: the case of Russian banking sector

Military Commercial Joint Stock Bank

Gross Domestic Product

LIST OF TABLES

Table 1.1 Rvalualion crileria of knowledge of commercial banking hurnan resources

Table 1.2 Criteria for evaluating the skills of commercial banking human resources

‘Table 1.3 Evaluation criteria of the working attitude of employees in commercial banks .16

Table 2.1 Operation scat of Hung Yen province in the poriod of 2017-2019

Table 2.2, Capital resources of Headquarters of Agribank Hung Yen Branch for the patiod

Table 2.12, Assessment of employee's sense, attitude and responsibility towards work at

‘able 2.13 ‘The table evaluates the quality of human resource development activities at

Headquarters of Agribank Bury Ven Branch

Table 2.14, Statistics of training and retraining programs for the petiod 2017-2019

INTRODUCTION

1 The urgency of the topic

In the context of increasingly deepening international economic integration and fierce competition in the banking sector, the competition not only appears between domestic commercial banks but also between domestic commercial banks and foreign commercial oncs, To ensure competitiveness, human resourcos is the decisive factor of each bank, Human resource is an important factor and has strategic significance not only for operational efficiency, but also tmakes 2 difference in growth and sustainable development, Therefore, the development of high quality human resources has been increasingly focused on and invested by banks in recent years

Established in 1998, Agribank Himg Yen Branch has gone Umongh 24 yours of construction and matwity, gradually growing, enhancing the reputation and position of a key bank in the agricultural and rural sector, contnbuting to enhaneing Agribank's amage, position and brand name in [Tung Yen province In the same years, generations of officials

‘who have boon attached to the Branch sinec its inception gradually retired in recent years, tzansferring their work and enthmsiasm to the next generation The new generation class is young, dynamic, full of enthusiasm, but lack of experience, leading to the ability to perform tasks that have not me the requirements and faec many difficulties in operation

‘That raises an urgent requirement for the human resource development activities at

Veadquarters of Agribank [ung Yen Branch is to build a human resources lean which ensures quantity, quilily, arranged in a reasonable structure and moots the requirements in performing the tasks assigned by Agribank, especially at the Headquarters, where concurrently holding two rolss of business and administration

Sicnmuing em the above issues, t chose the lopie "Human Resource Development

at Headquarters of Vietmam Bank for Agriculture aud Rural Development - Hung

Yen Branch" for my graduation thesis

2, Purpose of the study

The purpose of the study is to provide solutions in accordance with the reality and orientation of the Board of Directors af Agribank - Thing Yen Provincial Branch to further develop human resources al the Tranch in the period 2020-2025, thereby improving high reputation, competitiveness and business results of the Bank

3 Objectives of the study

Evaluate the current situation and factors affecting human resource development at

Headquarters oŸ Agribank Hưng Yen Provincial Branch, then propose solutions to further develop human resources at the branch in the period 2020-2025

- Interms of time, the topic uses statisties from 2017 to 2019 for analysis

5, Research method

‘The thesis uses a combination of research methods such as descriptive statistical molhods, stalistical analysis methods, oxpert melhods and sociological invosligntin methods

‘Yo ensure that information sources which are used for effective analysis and

cơn published and widely

Primary information source: ‘he research uses questionnaires to conduct sample

surveys of customers and aboul 30 employces and Teaders working at Headquarters of Agribank- Hung Yen Branch in the Credit, Accounting, General, Computing, Planning departments In addition, ding the research process, the author also consulted experts, who are experienced human resomce management lecturers on human resource development for organizations, especially commercial banks

6 Thesis structure

‘The structure of the thesis consists of 3 chapters

Chapter 1: Overview of research performance and theoretical basis of human resauree devctopracl

Chapter 2: The current situation of human resource development at Headquarters of Agribank - Hung Yen Branch

Chapter 3: Human resource development solutions at Headquarters of Agribank Iiung Yen Branch

CHAPTER 1

OVERVIEW OF RESEARCIT PERFORMANCE AND THEORETICAL

BASIS OF HUMAN RESOURCE DEVELOPMENT 1.1 RESEARCH OVERVIEW

In recent years, there have been many articles and research papers from Vieinam as well as internationally on human resource development or on human resource issucs at financial institutions and banks

1.1.1 Research situation in Vietnam

Human resources and human resource development are of great interest to domestic researchers, including a number of research projects such as:

- Tran Xwin Cau (2012), Texthook of Human Resource Reonomy The syllabus gives

the most general knowledge about human resources economics, the correlation between population and human resources, labor market, labor productivity, wage and income factors and some social issues affect human resources As an introductory textbook, the ook focuscs mainly on helping the reader visualize the most common human resourees and related factors from a social perspective, specific elements applied in business; though ithas been mentioned in some chapters,

- Tran Kim Dung (2018), Heiman Resource Management, The book introduces imman resource management, three important functional groups of human resource

it is not really detailed

Tanagement in organizations: atlracting, raining and developing, and giving updalzs an

human resource management in modsm cnvironment Fach chapter guides processes and,

techniques in human resource management It can be said that this is a relatively

comprehensive book on human resource management in a modem environment

- To Ngoe Hung (2010), The current situation and solutions for developing high-

quality resources for Vietnam's banking sector in the period 2010 - 2020 The article

presents the necessity as well as the current situation of the shortage of high quality human

resources of the Vietnamese banking industry, thercby proposing some solutions lo

develop this human resource The article is given in an assessment of the whole banking industry and focuses mainly on one of the devetopment of human resources in the commercial banking industry, which is the development of high-quality hutnan resources

- Dang Hoang Linh, Nguyen Duc Tuan (2018), Hignan resources in banking

operations and some recommendations The article outlines the role of human resources in commercial banks, shows [he current situation of human resource management im Vietnamese commercial banks and gives some recommendations on human resource

4

development strategies, staff recruitment, staff arrangement, staff training and staff remuneration

1.1.2 Overseas research situation

Human resources and human resource development are also researched and mentioned in many research projects by foreign researchers snch as:

- Richard A, Swanson, Edwood F Holton If (2001), Foundations of Heman resource development ‘The book gives the most basic concepts of human resource development, listing theories amd perspectives on human resource development, some ways of developing human capital through individual and organizational training, and at

the same time giving opinions on human resource development in the 21st century

ince it has been writicn since 2001, some of the author's opinions 1

updated more to suit the Iman resource development in recent years

- Neal E, Chalofiky, Tonette $ Rocco, Michael Lane Mortis (2014), Handbook of

Hhman resource development The book gives general concepts of human resource

development, human resource management modes, some new applications in human

resource development, in which two factors have a great influence on resource development The human sesource is the employee's attachment and emotional

intelligence

- Alexander Ardichvili and Alexander Gasparishvili (2001), Hwnan resource

development in an industry in transition: the case of the Russia hanking sector The shuly

identifies problems will the human resoures development system in the banking seclor in

Russia and gives trends to the development of this system

- Bank Governance Leadership Network WY (2018), ‘the fiature of talent in banking:

in banks:

seorkforce evalution in digital eva The sludy shows the trond of human resoures

the development of technology is restructuring the human resources of banks and banks are

in the early stages of human resource restructuring, The article also recommends that the talent attraction strategy is a Lrclor thal should be paid special allontion te in the

restructuring process

Although there are many differences in the approaches to Inman resource development in the banking sector at different limes and economic conditions in different counties, the documents are highly consistent in the wgency and importance of human resource development

The above studies have boon parlly studiod from a long time ago, or by forcign

counities in relatively different contexts with the current Vietnamese market Other studies

5

mainly focus on looking at human resource development activities at the national or industry level Therefore, the sludy of human resource development at Headquarters of Agribank Hưng Yen Branch is still a new direction when considering the human resource development issue in a specific case, with its own specific characteristics

1.2 TIEORETICAT BASIS OF HUMAN RESOURCE DEVELOPMENT

1.2.1 Basic concepts

1.2.1.1 The general concept of human resources and human resources of commercial hanks

* The concept af human resources

Human resources is the concept in which people are conudered as a resource for

According to Nguyen Tisp (2005), human resource is human resource, the most

important and dynamic factor of socio-cconomic growth and devclopment, Human resources can be defined for regions, localities (provinces, cities .) and it differs from other resources (finance, land, teclmology .) in thal human resources with labor activities

aazalive dymamism, impacting on the natural world und in the pracess of labor arose Tabor relations and social relations, More specifically, a country’s mman resources manifest in the following aspects:

the human

+ First of all, as the source of labor foree fo soeicty, in the broadest scr

resource ineludes the entire population with the ability to work, regardless of whether that parson is being allocated to the professional sectors, arsas and can be considered as social human resources

~ As the society's main ability to undertake labor, human resources are understood in

a narrower sense, inchiding the population of working age with working capacity (regulated by the fabor law), Currently, in the field of labor, there is a concept of "labor source", which means that the entire population of working age has the ability to work

‘Therefore, with this concept, human resources are equivalent to the concept of labor

resources.

- Eiuman resources represent all specific people involved in the working process, with this understanding human resouress include people from the lower fimil of the

working age and over and capable of working (In our country today, people who are full

15 years old and over are capable of working)

‘The above concepts all assume that human resources in general are working age

people, capable of working and have citizenship rights, which are considered as labor

resources of society From the above concepts, the concept of human resources used in the

thesis is construed as follawes:

Hunan resource is the entire workforce working in an organisation or enterprise,

characterised by the quantity (sice}, quality and structure participating in the production

and business process of organizations, husinasses:

* The concept of commercial hanking human resources

- The concept of commercial banking

According to the Law on Credit Institutions (2010), A bank is a type of credit

institution that can conduct all banking activities in accordance with this Law Banking

operation is the regular business and provision of one or more of the following operations:

a) Receiving deposits,

b) Credit extension;

¢) Providing payment services via account

Commercial bank is a type of bank which can conduct all banking activities and ofher business activities in accordance with this Law for the purpose of profil

From the above concept, the commercial bank concept used in the thesis is construed

as follows:

Cominerctal hanking is a special type of business operating in the monetary sector

with the main operations of recetving deposits, granting credit and providing payment

services via accounts for profit purposes

- The concept of human resources in the commercial banking industry

From the general concept of human resources and the concept of a commercial bank,

the hnman resonree of a commercial bank is defined as follows:

The human resource of a commercial hank is the entire workforce working in that

bank, characterized by the size, quality and structure of the hanan resources involved in

the implementation of banking operations including activities of receiving deposits,

providing credit and providing payment services via accounts for profit purposes

Human resources play an important role in commercial banking through

2

Firstly, human resource is a factor directly involved in strategic planning setting up plans, programs, projects, building business processes end code of conduct as the

foundation orientation for all operations in commercial banks

Secondly, human resource is the subject operating the system, controlling the technology infrastructure, implementing the plans according to the specified process: working with government agencics, partnors and customers, interacting with colleagues, controlling cash flows and other resources under the management responsibility of cornmercial banks

Thirdly, human resources are the source of new ideas and initiatives to improve business processes, thereby improving system performance, saving costs and minimizing risks for commercial baniks

In addition, human resowee is the energy to step by step crystallize corporate caltural values, build and preserve the brand and identity of a commercial bank,

Besides, human resources with ability to selfmobilize in combination with the organization's human resowce development policy, continuously change to adapt to the new environment and new technologies; especially through that, fostering up excellent individuals, leading experts in the financial sector, is the next door to the sustainable development of commercial banks

- Characteristics of human resources of commereial banks

‘The human resource of a commercial bank, first of all, has the common charactoristies of Victnamiasc human resourcos, typically:

‘The status of human resources is generally limited The indicators of height, weight, strength, and endurance are qnite ow compared to those in developed countries In the context of global competition, espevialty operating in arcas requiring high work intensity such as commercial banks, it will require more improved human resources, gradually approaching the standards of health internationally iluman resources, in return, have many strengths such as intelligence, ingenuity, meticulousuess In addition, the ability to study well and a tradition of overcoming ditticulties to develop oneself

‘There is a shortage of human resources in terms of skills such as communication skills, learmwork skills, management skills, leadership skills Among the rising skills, foreign language skills, specifically Vietnamese workers’ English is still poor compared to those in many countries in the region, so Vietnamese workers often face more difficulties

in the inlegration process, thereby indivcolly affecting the competitivencss health of the

economy,

Besides, there is still a big difference between professional qualifications and prectical skills, reflected in the fack that workers stift need time lo adapt, wain, and additional training to be able to achieve the highest labor efficiency in industrial environment, Not only that, the actual feedback from many enterprises also shows that the responsiveness of skills due to technology changes of workers in enterprises is still low

Haman resowrees, on the other hand, arc also influenced by the local culture and

living practices ‘his, in tum, can lead to conflicts between Westem-style management

mnodels and the tradition of promoting the role of the family, Hineages and responsibility of women, A high-pressure and overtime job, coupled with poor time management and Life balance skills, can risk cracking the good values in traditional families And when employees fel unhappy in their porsomal live

communication, sales, customer care, situation handling

Secondly, compliance and honesty are two important criteria required for the human resources of the commercial banking industry, Currency trading is one of the fields that contain many risks (capital loss risk, exchange rate risk, interest rate risk ), therefore, bussiness decisions of commercial banks (decisions on investing, lending, interest ratas ) requires compliance with « complex, milli-step, suingerl process To avend ethical and operational risks, each employee requires strict adherence to regulatory procedures Besides, one of the main activities of commercial banks is capital mobilization, which doponds heavily on customers’ trust with the bank This belief necds to be built aver a very

Jong time, but can be lost in a moment due to the morally risky events of the staff, Through

9

many recent legal events, commercial banks understand that maintaining honesty and

maintaining (he reputation of staff is an extremely important factor ta ensure effective

business operations

In general, the human resources of commercial banks still have shortcomings in reality and job requirements Therefore, promoting the imman resource development of commercial banks is a matter of practical significance

1.2.1.2 The concept of human resource development and buman resource development of commercial banking industry

" The concept of human resource development

Human resource development has ben mentioned in many scientific researches and

many articles, Initially, in the condition of outđatod tochnology, lsss cœmpolilion and tow eval of labor, the superiority to take advantage of is cheap labor Then, revenne and profit are proportional to the output and the number of employees used Therefore, the original concept of human resource development was simply an increase in the size of imman resourves Thereafter, human resource development was defined at higher level as not merely growing in quantity but also in terms of quality However, at this stage, human resource development is considered an achievement of training and it is mentioned that hmman resource development in cnterpriscs is mainly focuscd on training Until recently, the concept of man resource development has been developed more fully

According to the concept of the Intemational Labor Organivation, buman tesource

clupment is the acquisition of skills and capacity development, using thal human

capacity to work effectively as well as satisfy the occupation and personal life

According to Richard A Swanson and Elwood F Lfolton If] (2001), human resource

development is a process of developing and perfecting the skill tevel oC human through the

development of the organization and training activities, personal development to improve

work efficiency

Jn general, human resource development in the thesis is defined as follows: human

resource development is the process of developing luaan resources in both quantity and quality in the direction of creating human resources to meet the requirements of quantity, mentality physical strength, and mental strength and at the same time meet the balance of

struchee ‘occupation structure, age siructure, gender structure, education structure .)

* The concept of human resource development of commercial banks

Human resouree development can ba expres

dat two lovals: within a countryfa locality and within an organization, Within a country/tecality as well as within an

10

organizalion, when it comes to human resource development, it is necessary to pay attention lo both sizc, quality and structure, in which the quality of human resowess

s considered the most important and complex However, the quality of human resources is also concemed differently by each level If within a country, a locality, when it comes to the quality of human resomces, one must pay attention to the health of workers in particular and the peoptc in goncral, to the level of education of workers; in cach organization, the most concerned factor is the skill level, professional level of the employee and the personal qualiliss required by th job

The development of human sesowces trom the perspective of commercial banks is usually planned by banks However, the human resource development of commercial

banks, in addition to the cfforls of the members of the bank, still n lemma support

(experts, the State .) Therefore, human resource development at commercial banks is the common awareness and effort of’ the parties, not merely the implementation of the

functions of the human resources department In addition, under the strong competition and

rapid tansfonmation, the development of human resources in commercial banks should be

oriented towards long-term thinking, as well as demonstrating higher social responsibility

Therefore, from the concept af human resource development in general and the

characteristics of the human resowecs of commercial banks, the author of the thesis

defines the human resource development of the commercial banking industry as the process of luman resource development to increase the scale of human rexaurces, improve the quality of human resources and create an increasingly reasonable juiman resource

siructare in commercial banks, focusing on a long-term vision, thereby increasing

sustainable values for the bank workers and society

1.2.2 Criteria for evaluating human resource development of commercial

banking industry

Based on the content of developing human resources of commercial banking

s, the author would like

to propose two groups of criteria for human resource development assessment: group of

industry, inheriting rescarch rzsulls of scionlists and actual survz

criteria for quantity evaluation and gronp of criteria for quatity evaluation

1.2.2.1 Group of criteria for quantity evaluation

‘The criteria for assessing the development of the himan resources of the commercial banking industry arc reflected in tho development of the number of human resources in the commercial bariking industry and the shift in the progressive structure

- Criteria for the quantity of human resources

‘The quantitative development evaluation criteria are manifested through the increase in quantity and growth rate over the years, through stages of human resources

‘The quantity increase and the growth rate are positively related The increase in size is shown through an increase in absolute quantity, while the growth rate is equal to the relative annual increase index or period of human resources ‘The increase in the number of employees shoud be consistenl with the business performance of the bank If the human resource growth rate increases too quickly or goes in the opposite direction of the business development trend of the bank, the human resource will be redundant compared to the domand, the use of human resourc

will not bring into ult play ils polontial Meanwhile, the sive of personnel will be the limiting (actor in operations On the conirary, when the speed of increase in the number of employees does not keep up with the expansion of business activities, the demand of the job will exceed the capacity of the existing workforce, causing ovcifoad in job performance, quality and work cfficicney are reduced

- Criteria for the structure of human resources

In the process of quantity development, the human resources of commercial banks must at the same time ensure a structural change in the direction of progress Accordingly,

the change in the g siruelire, the sttucure of qualifications, the stricture of

occupations, ages, the structure of regions, divisions and departments should ensure

rationality and appropriate with the current situation at the bank and the needs of the

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| Gender structure

Each department in a bank has its own business characteristics, There are jobs that are more suitable for men, like debt collection, and jobs that are more suitable for women like tellers Therefore, in order to ensure the jnddustry structure the gender structure should,

be suitable to the characteristics of each job, with the business characteristics of the bank,

+ Sunemure of age

‘As with other occupations, human resources in the bank are also classified by age groups, which can normally be divided into three main categories: young and middle-aged workers and ncar-rctirement workers According to cach agc, psychology and necds of the job are also different Young workers are usually dynamic, ambitious, less busy with housework, but lack of experience, poor ability to adapt and nasd basic training to improve the necessary knowledge and skills of the industry Ordinary middle-aged workers have relavely completed knowledge and skills, are able to adapt flexibly due to their experience, are the main human resource for managersent positions, and the need for training is mainly Through training programs, however, thay are busy with houschotd chores, easily lose their motivation 40 work due to boredom of not being arranged in suitable jobs or lack of enthusiasm due to feeling unrecognized by leaders Laborers near

rolirainont have many expericnees, bul arc often aftaid to change, prefer to follow their habits At each time, assess current human resources according to age group structure to have appropriate staffing arrangement to ensure full use of the strengths of each group of

ounct, to plan taining and new recruitment lo age restructuring of human resourees is extremely important, With different characteristes of employees by age group, human resource development activities such as training, motivating, and staffing in each period mmusl be suitable to the age structure ai [he bank to bring about highes! efficiency

+ Structure of qualifications

The level of human resources is shown through a number of indicators such as: mmmber of trained and untrained workers, by training level, technical worker and professional staff, and training level Currently commercial banks mainly use the training qualification criteria to divide the structure of human resources qualifications Accordingly, human resourees at commercial banks ean be divided into four main groups: Pastgraduale, Bachelor, Tulermedials and Elementary Dđucation Job characteristics of different departments in the bank require different qualifications of employees, corresponding to different wages according to job positions, Kor example, specialized areas

13

such as development strategy, nsk management, intemational investment, intemational payment require highly qualified persermel, some positions

ven require international

qualitications, While in checking positions, drivers only need an Intermediate level or

above Usnally highly qualified personnel will need a corresponding salary and

remuneration Qualification structure will determine the cost of salaries the bank must

spend, so cach bank needs to choose a structure of human resowrees in accordance with the

job requirements, the actual business situation as well as the financial capacity of the unit

to oplisnive business efficiency

1.2.2.2 Group of criteria for quality evaluation

Qualily development assessment crileria: Dernonstrating the improvement in the

quality of the human resourees of the commercial banking industry, reflected through the improved evaluation of the quality of human resources in the banking industry such as

health - fitness, knowledge, skills, dynamism and adaptability, work attituds, degree of

understanding of corporate culture

- Group of indicators for health assessment

‘The employee's health is shown through the information in the Llealth Certificate as prescribed by the Ministry of Health through some baste criteria such as height, werght,

BMI index, blood pressure, eyesight, hearing capabilities, medical condition Employees

need to be certified by the authorities to ensure that they are capable of working

In addition, with the relatively large workload in current commercial banks, besides meeting basic health criteria, the ability to withstand working pressure is also a criterion

thal commercial banks arc interested and given as 4 recruitment eriterian

- Group of criteria to assess knowledge

Knowledge is the theoretical and cmpirical understanding of a topic, accumulated

personally through the process of training and observing practice Knowledge plays an action-oriented role, helping individuals have a basis to detect, analyze and provide

solutions to specific problems Actions that are not based on knowledge are considered

only instinctive Conversely, the mare extensive the knowledge, the more certain the basis

of the theory, the ability to detect and analyze il, the mare feasible the proposed solutions

resources, knowledge of employees in commercial banks can be assessed through the main

i General knowledge of economics

3 Professional knowledge of the current job

4 Knowledge of foreign languages

Knowledge of information technology

- Group of criteria for assessment af skills

There are many different definitions of skills, cach of which is derived from the professional perspective and personal conception of the writer However, the definitions all acknowledge that skills are formed when we apply knowledge into practice, due to the process of repeating a certain action o: group of actions with a clear intention and direction, clear, ‘therefore, it can be defined generally as follows: skill is the ability or ability of the subject to master one or a series of actions on the basis of knowledge (mnowledge or experience) to produce expected results, Owning skills will help individuals reduce execution time and improve work efficiency corresponding to that skill, but in reality, to perform a job requires individuals to combine many groups of skills ‘Through consultation with the human rosources department, the loaders at commercial banks and the opinion of experts in the ficld of human resources, the skills of employees in commercial banks can be assessed through the following main criteria:

Table 1.2 Criteria for evaluating the skills of commercial banking human

- The group of indicators to evaluate the employee's working attitude

Wark attitude is to show focus on work, conscientiousness in work, contentment with work and will to try hard to complete work A person with a positive working attitude will bring many benefits to the organization and himscl( Individuals with a positive working attitude will accumulate a lot of experience and knowledge, help them achieve success as well as halp colleagues who work with them collaborate and learn a lot of expericnces and skills to succced When working with a positive altitude, individuals or working groups will enhance collective spizit, being able to turn difficulties, bad situations

into opportunities, have a willingness to accept situations

‘As a scrvice provider, the cmploycc’s attitude in commercial banks is very important, A good working attitude will be a plus point in the customer evaluation of the

services of quality assessment companies through aggregating survey results of salisfaction levels fiom a variety of opinion sources; customers, related units, direct management leaders, staff Through consultation with the human resources department, leaders of conunereiat banks and expert opinions in the field of human

Inman resourcs development activities on key issues, contributing to successful implementation of the bank’s general goals Mcanwhile, planning for aman resource development is also with long-term thinking, but is the transformation of general goals into specific goals and large action programs Ant alan even lower level, mid- lo short-Lerm Iman resource development plans are a divergence or breakdown of goals, with detailed projects that transform those goals into reality Currently, at commercial banks, human resaurce development is usually done al the Hoad Quariers, and branchas arc mainly involved in building planning and human resource development plans

A commercial bank's workforce strategy planning is typically done by the following

4, Forecasting human resouree needs (for mid-term and long-tcm goals) or defining

human resource needs (for short-term goals, plans)

3, Analysis of the luman resource supply and demand relationship, the ability to adjust and propose policies, plans, and implementation programs to help commercial banks adapt lo new needs and improve human resource

sing efficiency

6 Implement policies, plans and programs for human resource development set oul

in step five

7 Check and evaluate the implementation situation and make adjustments (if

sary) (Tran Kim Dung, 2018)

1.2.3.4 Developing human resources in terms of scale and structure

Commercial banks that want to operate well need to have human resources that meet

the appropriate size and strncis Tivery year, at the bank, thers is always a large number

of cmployces retiring, changing jobs, so human resource development is a regular activity, tasked with predicting human resource needs to plan for compensating for the temporary shorlage of personnel, al the same time atlding new human resources, lraining new human resources to meet the expansion needs of business activities, In addition, the increase in the mmmber of immen resonrees mst be accompanied by a clear, effective stmcture that is

suitable to the needs and conditions of the bank and socicly in cach period A large scale of

and structure

Step 1 Assess current human resources in terms of 6

This is the step of gathering statistics on cuxrent human resourees data on quantity,

distributed according to different criteria such as gender, education level, age group, department from which lo analyve and give making comparisons, evaluating the

anablenicss of scale as well as in allocation activities with Ihe custent business

in the future as well as the expected

human resource fluctuations, the human resources department makes forecasts about the

specific demand for imman resources in terms of quantity according to the specific criteria

vo serve Laman resouree plarming

Step 3 Make a human resource development plan on scale and structure in line

with the Bank's human resource development strategy

forecasts about human Based on the assessment of current human resource:

resources needs as well as the current situation of the bank, the human resources department conducts detailed human resource development plans for the years appropriate for human resource development stralogy af the bank

Step 4 Step by siep implementing ihe anraial recruitment plan

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Livery year, the bank implements appropriate recruitment activities to ensure that

the reeruiled human resources meet the highest demand for quantity, ensuring the criteria

‘that have been built in the approved plan

Step 5 Evaluate the implementation of the recruitment plan, learn fron experience

or adjust (if necessary}

At the end of cach ycar or round of reernitment, the bank has a rcassessiment of the

recruitment plan implementation, analyzing the possible aspects, shortcomings and weaknesses in (he plan implementation process to find oul more to revise, learn from

experience in service of building and implementing the plan of the next recruitment phase

* Human resource development measures in terms of size and structure

The development of human resourses is done through two main tasks: rocTnlling

and allocating the use of Inman resources

Recruitment of human resources

Recruitment can be understood as the activity of finding selecting and attracting suitable candidates to work for the organization, contributing to the development of human resources to serve the development requirements of the organization, In order to effectively

Tecrnit, the organization needs to have a separate tecruitment strategy, appropriate

recruitment procedures, detailed plans, and highly skilled recruiting staff, Organizations in the petiod of promoting the scale of operations or pursuing a policy of continuous "blood change” will have a large recruitment frequency Meanwhile, organizations that have formed.a stable-scatc human tesource and prefer loyally have less recruitment activities

Due to quality requirements, recruitment in commercial banks is usually quite professional ‘I'he technical process of recruitment steps in banks may not have too much

difference (because of continuous learning from cach other), but zach bank always triss lo create its own identity Through recruitment activities, commercial banks also carry out

integrated communication activities to promote their image

The Gnal highlight of current recruitinent activities al commercial banks is the strong application of information technology, intemet and mobile communication Commercial banks post recruitment informatian on employment websites (sven on social media) instead of in prit media and television broadcasts, email applications instead of direct applications; zxams (online tests) or telephone interviews, all of which are becoming more and more popular

Arrangement to use human resources

Arranging the frill, reasonable and effective use of human resources is an indispensable Tequicmen! to ensure that the positive results from the tecruitmtent ot traming process are proven and most strongly promoted To do that requires an organizational structure with high performance, clear delineation of funetions and tasks Employees who are assigned jobs in accordance with their specialties, with the right forte, will have many favorable bases to promote their traincd knowledge and skills to help complete their assigned jobs These positive achievements have a back-up encouragement effecl, helying employees to become more pas

jonate about that work, actively self explore and learn, thereby improving the quality of human resources

Nowadays, the arrangement of human resources is not only in terms of individual

aspects for cach work position, but also mus! pay atlention lo the arrangement of using:

Iman resources to fonm effective working groups Members of the same group do not have to be trained to master everything, but can complement each other well In addition, through the process of working together, the group will form mechanisms to leam from

cach other at almost io oxtra cost to the organization

The stating arrangement should also be linked to the development of attractive promotion routes and strategic-level TIR planning to improve staff motivation and cmployce engagement to the organization Completing the mobilization, promotion and appointment processes will help prepare better for the next generation,

1.2.3.2 Developing quality human resources

Je of business oparations, the specialization of departments of the bank, the quality of haman

I the size and structure of human resources play a role reflecting the

resources plays the role of ensuring the efficient and safe operation of the bank Large growth in humm resources in the barik, ifnot focused on quality, will lead to ineflicicneies

in operations, and can be a source of ethical risks, affect the quality of credit as well as the reputation of the bank In addition, the level of competition in the banking and finance sector is increasingly Gierec, the emergence of Finlech conmanics, the difference in products between banks is not large, the quality of human resources plays an increasingly important role in creating the compatitive advantage of each bank Therefore, the improvement of the quality of human resources is given an urgent and important requirement of commercial banks

* Steps to develop human resources in terms of quality

Similarly the development of Inman resources in terms of sive, structure, development of human resources in terms of quality is basically done through 5 steps

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Step 1 Evaluate current human resources in terms of quality

This is a slep to gather statistics on current, human resources in terms of fitness,

knowledge, and skills, and conduct a survey to assess employees! consciousness and

attitudes to assess the general quality of the current human resources, compared with the requirements of the position and the jab

Step 2 Make statistics on the need to improve the quality of Jasnan resources und

forecast the demand for improving the quality of hasan resources

Tn this step, the human resources department needs to gather recornmendalions of

the professional department, conduct a survey on the needs of employees on the work of

improving the quality of human resources and also refer to industry trend forecast to

identify Ralure human resouree improvernert needs

Step 3 Make a plan to develop lumitm reyowrees in terms of quality in accordance with the Bank's human resource development strategy

Based on the need to improve the quality of hnman resources, the IIR department

conduets detailed annual human resouree devclopment plans in accordance with the Bank's

‘thuman resource development strategy as well as the actual situation at the unit

Step 4 Step by step implementing the work of improving the quality of Iman

resources anmually

Every year, the bank implements appropriate human resource improvement activities 1o ensure the quality of human resources lo ensure thal he criteria have been set out in the approved plan

Step 5 Evaluate the implementation of the quality improvement of human

resources, learn from experience ar adjust (if necessary}

At the end of cach year, the bank reassesses the activities lo improve the quality of

human resources, analyzes the effectiveness of the activities carried out during the year,

evaluates the aspects of the work, shortcomings and weaknesses in the process of

implementation of the plan to make adjustments and lea from expericnec to serve the

work of building and implementing the next year's plan

* Measures to develop human resources in terms of quality

To develop quality human resources, commercial banks can implement, many

different measures including recruitment of human resources, training, staff rotation and

motivational creation work for workers

Recruitment of human resources

Recruitment plays an important role in improving the quality of human resources

Gond recruitment will bring busine:

$4 loam of high qualily human resources suitable for the job and position to be recruited, recruiting people who are really passionate about the job and tend to stick for a long time with ths company, avoiding the “brain drain" situation, and continuously recruiting and training new persormel

In order to be able to recruit the most suitable and high-quality candidates, recruitment needs to do two main things: one is to diversify sources of finding candidates, the other is lo imnprove the qualily of recruiling candidates The source of candidates lor recruitment must ensure diverse factors, fiom many different sources to find the candidate with the hest quality, most suitable for the bank such as from working employees; roeruiing people in the form of advertising; recruiting poopls through labor servic

centers, recruiting, graduates tiom universities, according to the recommendation of the government, employees in the bank; Candidates come to apply for jobs by themselves or through the Internet system In improving the quality of recruiting candidates, the role of job descriptions and title standards with clcar and transparent benefits and regimes is extremely important to provide recruitment information, decide on the sereening steps and finally find the most suitable candidates Tt is one of the foundations that reflect the science

of modem recruitment

Training and retraining to improve the capacity of human resources Training and retraining 10 improve qualifications 1s one of the most effective

tnensuros lo improve the quality of fanan resources The training and guidance prograrns

understand the professtanal regulations, produt and s

operate and exploit the internal management software to achieve the highest efficiency in the operational process Mor employees working at the bank, training programs are an opporlunily lo update new skills and knowledge, helping them to successfully apply technological and technical innovations in the bank; while skills training programs help employees to further perfect the missing skills, acquire the necessary skills for the job, for Promotion opportunities, In addition, the (raining and retraining process is also a good

opportunity to exchange and convey the corporate culture to employees in order to increase

solidarity, encourage working marale, raise public awareness and job responsibility

The baining and retraining to improve the qualily of human resources shonild be done in a methodical and scientific mannet Normally, in order for the training and

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retraining to improve the quality of human resources to be really effective, it should be done through three main steps: identifying taining and retrainmg needs, implementing taining process and evaluating training effectiveness

‘The need for training and retraining is offen raised when an employee does not have the necessary skills to parform the jab To accurately identify training needs, business analysis, opcrational analysis and cmployce analysis are required, Enterprise analysis is the process of evaluating organizational performance indicators, plans to prepare contingent staff and the organizational envirormnent, Operational analysis helps determine the types of skills and behaviors needed for an employee to perform well at their job Finally, the analysis of employees to assess the capabilities and personal characteristics of the

Afier considering strategic issues in training and identifying training needs, the bank should determine the program content and training methods There are often many different training needs at the same time, so it is necessary to classify and group into groups of needs with many similar charactenstics instead of detailed statistics of each individual needs Al the same time, an order of priority should be established, which helps

to decide which needs shauld be considered in order ta conduel pre-training ơn the basis of financial as well as time constraints When the preparation stages have been completed, the implementation of the training will be carzied ont according to the outlined plans In this

step, altontion should be paid Lo the control of the progress and discipline of the classes

The last task is to conduct training and retraining effectiveness assessment The effectiveness of the fostering training program should be assessed through two phases: phase 1 evaluates whal Ioamers can absorb and leara aller the waining, Phase 2 assesses how leamers apply knowledge and skills in practice, Evaluation of the effectiveness of the training program can be dene through empirical analysis, evaluate the changes of the trainees according to the following criteria: reaction, memorivation, belavior change,

objectives and quantitative evaluation of training effectiveness

Job rotation

Job rotation is a management method in which cmployces arc swilchod between two or more planned tasks (jobs) so that they can be motivated, leam and hone their skills

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Job rotation helps employees have opportunities to improve their knowledge, accummlate experience, and learn other skills from a new job Tn addition, human nature always tends

.w novelty, the tedious element of repetitive work willl lead to subjectivity, neglect in work

and make people less creative and excited at work, reducing labor efficiency Rotating work helps to combat monotony of work, creates excitement in the working process,

increases understanding and spirit of cooperation armong dzpartmcnts Rotation is also of

particular importance in preparing personnel for the planning and appointment work For

those 5

a(t with higher management capacity and ability lo lake on the job, the rotation training will help them accumulate enough knowledge and experience for key management positions in the fnture, ensurrng the quality of human resources for management positions

Job valation has many bancfils, bul iC iL is nol properly planned and implemented, it will take businesses a lot of time to stabilize their organizational structure, causing a decrease in work efficiency for a while the staff get used to the new job Therefore, the implementation of job rotation to improve the quality of human resources should ensure the following three factors:

Firstly, the corporate govemance system of the company must be standardized to a certain extent so that the move of an individual out of position does not affact the operation

of the whole apparatus The organization must be built on a system, must have procedures, work instructions so that a person moving to a new position can easily perform the new task and not depend on the old oness

Secondly, the organization charl should be clearly defined and the job description sheets should be described in detail to facilitate newcomers to integrate and perform their work Company members know which department they belong to, who to report to, how the process cormcotiơn bolwcon đeparirtcnis is like

Finally, itis necessary to build a rotational culture, considering rotation as a tool for personnel development, not a tool of resignation and repression of staff Companies should cxcal excitement with the discovery and implementation of new jobs, so cinployces will consider it as an opportunity or a reward for their efforts They must see that each job swap

or job rotation is a training and qualification upgrade Companies should give their

employees the fedling of being discovered, conquered challenges, a sense of advancement,

carzer development for people who switch or rotate jobs

Mechanisms and policies to encourage the development of human resources

The objective of the policy mechantsm to cncourage the human tosomce development is to influence the employees’ motivation, There are many different

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conceptions about motivation in work, but there are the most basic commonalities that

motivation at work is the willingness, 2ffort, passion for work, desire and volumtariness of

employees to strive towards a certan goal, omcome of the organization as well as the employees themselves, Working motivation motivates people to work hard, helps them to promote their inner strength, overcome challenges and difficulties and complete the work

in the best way Labor motivation also helps cmployees to make grcater offorts to lcarn, gain work experience, improve knowledge and qualifications to improve their skills, hands

and selfimproversent A good motivational mechamism will enhance the activen:

Firstly, announcing the bank's goals in each specific period, building labor norms, tasks and work performance standards for cach cmployce According to Edwin Locke's goal theory, the intention to work towards the goal 1s the primary source of work motivation, Work wilh goals helps lo improve productivity The more specific and

challenging the goals are, the better the porformmce und the resulls are Threfore,

‘Thirdly, creating motivation through emulation and commendation Leaders and

dito launch croulation mavernents al work to create excilerment al work,

Managers

encourage new ideas and initiatives to improve employees’ productivity Emulation and

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commendation are one of the important remmmeration tools in creating motivation for

employces, increasing employees’ income and cneouraging them lo work harder When

to all employses, partners and especially the family of the person being rewarded and widespread in society

1.2.4 Factors affecting the human resource development of commercial banking

industry

1.2.4.1 Internal factors

Mission, vision, core values and develapment strategy of commercial banks

A mission statement is the first and most consistent statement of the reason a

commercial bank exists Ft tells the reason why human resources are gathered together and how efforts evolve together to create something, The clear and convincing vision of the position and achievements the bank will achicve inspires the growth of both the collective and the individual Meanwhile, the core values reflect the standards that the bank pursues regardless of changes Tuman resource development also complies with that value systern

The role of the division in charge of human resources in a commercial bank

This is the department responsible for leading human resource development activities

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in the organization Ability to develop strategies, develop human resource development programs and plans, the abilily lo porsuade leaders lo approve human rosourac development projects; ability to coordinate, control and self-improve in the implementation process: All of them directly affect the success or failure of hmman resource development

activities

Corporate culture of human resource development

Ata Ingh level of development, human resource development has become a cultural beanty commitied and commited by the whole workloree, sel(-discipline and efforts Tn contrast, with commercial banks that have not yet built a culture of Iman development, the related activities are easy to fall into form, to oppose, and to have low efficiency

The financial situation of the bank

Apait ftom the above factors, the financial position of a bank is an extremely important factor The bank's financial position determines the size of the human resource to ensure the financial factor, the size of the budget for human resource development projects, the level of satisfaction and commitment of staff A bank with good financial status will be

a factor to attract high-quality human resources, with a sufficient budget for human resource training and retraining activities and increase its employ:

satisfaction and engagement, create many advantages for human resouree development, On the contrary, when the financial situation is not good, banks will have to consider the goals in order of priority, the devetopmient of hurian tesources in many cases will be only moderate, the Tasaurces will be prioritized for the more pressing goals of the bank

1.2.4.2 External factors

State policies on human resource development

Wilh the responsibility of social management, Ihe Sats promulgates potigics lo promote development in certain aspects, while limiting thctors that are considered detrimental to help a balanced society develop and lasting Most countries are aware of the importance and valuc of human resource development, However, in ecrlain periods, dục lo many different reasons, policies on human resource development may not be highly effective Tut in general, the State's policies affect national uman resources as well as human resources of regions and sectors, thereby affecting husnan resources ax well as Imman resource development in organizations, including commercial banks For example, when the State promotes the development of human resources through improvmg the quality of education and health services, the human resources of the wholz society will bs

improved in teums of physical strength as well as knowledge and skills through which

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being a better quality supply sores for commercial banking human resources, promoting human resource development activitics of the commercial banking industry On the contrary, for the purpose of monetary management, the State has introduced policies to limit the development of the banking industry, leading to the process of downsizing the payroll of banks, from which the human resources of the banking industry will reduce, inhibit the human resource development of the industry

Situation of human resources, especially human resources of the finance and honking industry and the development of the labor markel

In the case of abundant and highly qualified human resources, commercial banks will find it easier to assemble a qualified workforce, help reduce training costs for new

the develapment of human resources of the industry

Current situation of socio-economic development

During the period of rapid economic growth, the high demand for credit in the society, iLis the time when commercial hanks have many needs to expand operations At that time, the human resources of commercial banks offen expand in scale, In the difficult economic period, commercial banks tend to focus on restructuring and development in depth, the number of human resources al thal time is oflen sueamlined, and growdh is Himited, Besides that, the safety and stability of the society is a good environment for tmman resource development efforts, On the contrary when the social situation is unstable, investinent in hurnan resource development then is no longer considered a priarity task of the society, the human resource in general is no longer placed in the bast development conditions and commercial banking human resources are not out of that general trend of socicly

The development of science - technology

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‘The progress of science - technology provides commercial banks with increasingly synchronous and fricndly support facifities, helping 10 handle business proces

safely, quickly and accurately However, the rapid development of science and technology requires constant updating and innovation l'echnology platforms have lower life eycles, making the cycle of retraining and advanced training for tmman resources shorter The advancement of science and technology has also led to a drastic change in the operating model of banks, thereby requiring a change in the human resource structure in commercial banks For

nple, in recent years, the developinent, of non-cash payment methods such

as card payment, Mobile banking and Intemet Banking has resulted in customers making tzansactions at home without going to the bank directly ‘hen the demand of human

sources for the teller division has gradually decrsased, while the demand for digital txansfomation, big data and artificral intelligence position has increased, Ït can be seen that the trend of science-technology development will create a great impact on the operation method, scale and structure of human resources in banks

The tevel of competition in the financial and banking sector

Today, globalization has increased the level of competition in all industries,

including banking In order to compete effectively, commercial banks must seek solutions

to enhance operational officicney, in which conventional banks mainly focus on technology innovation and human resource development, In markets with a large mumber

of bariks, the competition in aliracting high quality human resources in Ihe banking and

competitive pressure will require commercial banks to pay more attention to human

resources, not only in recruiting and attracting talent but also in improving the working

enviroumenl, remuncration policy to retain talcrited people

1.3 RESEARCH DESIGN

On the basis of the theary of human resource development mentioned, the author of the dissertation will research the Inman resource development activities al Headquarters of

Agribank Hung Yen Branch through the following research activities:

Firstly, analyzing the factors affecting the human resource development at the Branch including internal faciors (Agribank's human resource devctopment strategy, the Branch’s management's opinion on human resources development, the financial situation of

29

the branch .), external factors (the current situation of the banking and financial human resaurees supply of the labor markel, the development af scicnce and lechnology, the Tevel

of competition in the banking sector )

Secondly, evaluating the branch's human resources in terms of size, structure and quality Personnel data at the Branch will be collected from the General Department to analyze and evaluate the size of personnel, detailed personnes! structure by departments, age, qualifications, the data will be used to make comments in terms of the current status of the scale und structure of the branch’s human resources, To evaluate the quality of human resources, the author of the thesis will use the survey questionnaires with 3 target groups: Customers, leaders at department level or higher and employees working at the Branch to

evaluate the factors (Knowledge, Skills, Work attilude) Evaluation results are s

evaluation trom many subjects; from the self-assessment of the staff, the score evaluated

by colleagues, the score assessed by the leader, the score evaluated by the customer

‘Thirdly, the author will use questionnaires to survey the perfection of hnman

resource deyclopment activitics through the survey to employees, unit leaders on main hmman resources development activities such as Planning and planning for human resource development, Recruitment of human resources, Arrangement to use tmman resources; Training, and retraining to improve the qualifications of human resources; Policy and mechanism to encourage human resources development On the basis of the survey results,

the author of the thesis collects information on strengths and weaknesses in each human

resuurce development activity to explain survey Tesulls and propose appropriate solutions

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CHAPTER 2

THE CURRENT SITUATION OF HUMAN RESOURCE DEVELOPMENT AT

HEADQUARTERS OF AGRIBANK - HUNG YEN BRANCH

AFFECTING THE DEVELOPMENT OF HUMAN RESOURCES

2.1.1 Outline øf Agribank

Agribank was established according to Dectee No 53-LIDBI dated March 26,

1988 of the Council of Ministers (now the Goverment), Through cach period of

In the early period of establishment with a low starting point, its total assets were

Jess than VNDU,500 billion,

capital accounted for 42%, the remaining 58% was borrowed from the State Bank, total

otal capilal was VNIDI,056 billion, of which mabilized

debt balance was 1.126 billion, bad debt rato over 10%, Clients are state-owned

40,000 officers and workers As of December 31, 2019, its total assets reached over

VNDIAS million bition, Capital resources reached over VNDI-34 miltion billion, total outstanding loans and investment reached over VNDE.3 million billion, of which loans to the economy reached over VND1.12 million billion, Gutstanding loans in the agricultural anil rural sectors always account for over 70% of the lotal outstardinys Inans Agribanik's credit capital accounts for a large proportion in the total outstanding loans of neaily VND2 million billion in the agricultural and rural sectors in Vietnam

‘As one of the state-owned commercial banks playing a key role in the banking system, Agribank has always promoted the pioncering and cxcmplary role of a State

31