G1 00130 ESTABLISHING BUSINESS STRATEGY FOR VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE FROM 2010 ΤΟ 2015 XÂY DỰNG CHIẾN LƯỢC KINH DOANH CHO NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN CÔNG THƯƠNG VIỆT NAM TỪ NĂM 2010 ĐẾN NĂM 2015
Government’s objectives and orientation for banking industry in general
To modernize the organization and operations of the State Bank, the goal is to establish a neat, professional, and well-resourced central bank with the capacity to design and implement monetary policy on market-based principles, powered by advanced technology The institution will adhere to general rules and international standards for central bank operations, integrate with international financial associations, and perform the state's monetary and banking management functions effectively This reform also aims to transform the State Bank into a modern state-owned bank by 2010 and to achieve advanced expertise in central banking within the region.
Effective monetary policy is designed to stabilize the value of the currency, control inflation, and contribute to macroeconomic stability, sustained economic growth, and the modernization and industrialization of the country It manages monetary conditions, interest rates, and the exchange rate according to market principles by flexibly and effectively employing monetary tools indirectly, promoting cashless payments through banks and leveraging information technology It can steadily advance and implement all VND currency reforms Monetary policy supports the growth and allocation of financial resources and, together with fiscal policy, guides and motivates people to save, invest, and develop business.
Development objectives of credit organizations in 2010 and the strategic orientations 000008272011
Reforming and modernizing the credit-institution system across ASEAN requires a thorough, multi-functional approach that builds advanced capabilities, expands scale, and ensures sound finances The objective is to establish a modern system of credit institutions that meets international standards, can compete with regional and global banks after 2010, and operates under market principles with profit as the main aim This involves upgrading credit activities and risk management through technology, best practices, and international standards in commercial banking, while promoting the development of non-bank financial institutions to create a more diverse and balanced financial system It also calls for developing and diversifying banking products and services—especially capital raising, lending, and payments—and building a robust distribution network to deliver timely, high-quality banking services that support industrialization and modernization.
Building a competitive and fair market for banking services hinges on equal access for all client types and broad opportunities for both organizations and individuals with legitimate needs A level playing field in credit markets enhances choice, pricing, and transparency, driving better outcomes for borrowers and lenders alike By ensuring accessible banking services for legitimate borrowers, we can prevent and limit negative credit activities and strengthen overall financial stability.
Continue to restructure the banking system by separating policy lending from commercial lending, based on the distinguishing features of bank lending policies and the business functions of money and commercial banks, to ensure the autonomy and accountability of credit institutions This approach also aims to facilitate domestic credit organizations in improving management practices, expanding professional knowledge, and enhancing competitive capacity, while safeguarding their right to operate.
Vietnam has committed to engaging with 75 foreign banks and financial institutions as part of its cooperation with international organizations, aiming to fuse banking innovation with the growth of innovative enterprises, especially state-owned enterprises The initiative seeks to promote the healthy development of joint-stock banks, while timely addressing risks to prevent bankruptcies among weak credit institutions that fall outside the State Bank’s direct control It also supports the sound operation of people’s credit funds, helping them move in the right direction and develop steadily, safely, and effectively.
The operating guidelines of credit organizations are “Safety-Effectiveness- Steady development-Global integration”
Continuing to build and develop the banking sector will contribute to economic growth by mobilizing capital for investment and development, meeting rising demand, and supporting an average annual growth rate of 7.5%.
Vietnamese banks have strong financial capacity, robust business performance, and modern management technologies, backed by highly qualified staff People can access banking products and services whose quality meets international standards, with a diverse range of offerings designed to meet society’s needs Management and control processes are based on objective management and financial criteria that align with the banks’ practices and with international principles and standards; the technology used for management and auditing is modernized, and employees possess the qualifications and managerial skills needed to ensure the market operates efficiently.
Vietnam Joint-Stock Commercial Bank for Industry and Trade is pursuing a transformation into a modern financial and banking corporation, aiming to secure a strong regional ranking and to meet the full spectrum of banking and financial needs of its customers By modernizing operations, expanding digital banking capabilities, and delivering comprehensive financial solutions to individuals and businesses, the bank seeks to establish itself as a preferred partner in the Vietnamese financial landscape.
With 76 products and services to best support both domestic and international customers, the company pursues effective management and steady development, reporting total assets of 900,000 billion VND and owners’ equity of 42,000 billion VND as of 2015.
“Improve the value of life”
3.2 Orientation after analyzing the implementation of the strategy and business environment
3.2.1 Some points should be enhanced
Maintain a stable strategic goal; improve the quality of earnings from business operations costs and interest; increasing number of customers with high quality and using more services
Making use of scale advantage: the activities of raising capital, credit, the system of network as well as increasing the capacity of managing risks
Maintaining the operation effectiveness at a good rate
Maintaining the relationship with strategic customers
Implementing the plan of treating bad debt efficiently
Actively implementing the equalization plan
Maintaining the clarity of business operation
3.2.2 Some points should be restricted
Ensuring the quality of the system of ranking customers in the credit operation for the customers like enterprises and financial institutions
Investment quality should be built on a reasonable portfolio that prioritizes long-term performance To raise investment quality, focus on strategies and assets that deliver durable, sustainable returns over time This enhancement depends on strengthening the entire system’s capabilities—from robust governance and risk management to rigorous research, efficient operations, and disciplined execution By aligning portfolio design with long-term objectives and elevating the system’s overall strengths, investors can achieve higher-quality investments and more resilient growth.
The profitability is still low, the financial ratios of ROA, ROE are limited
The decreasing tendency of CAR, the erosion of the capital raised from the economy
Being slow in converting the credit’s structure
The revenues depends on the instable elements
3.2.3 Some points should be utilized
Banking industry is developing more sharply when Viet Nam’s financial economy is integrating more deeply into global finance
The Government’s supporting and the participation of big enterprises
The fast development of banking services
3.2.4 Some points should be prevented
The pressure from drawing and building the risk contingency when the assets’ quality is weak
Less effective investment in information and technology
Increasing competition from foreign banks in the fields at which are Vietinbank has the advantage
The economy from 2009 to 2010 has many instable potentials, the financial order with standards and rules that are newly established
Risks from customers’ declining quality
3.3 Orientation made from the recommendations
3.3.1 Credit ranking and the targeted system of supporting credit ranking
The policies that Vietinbank should continue implementing to improve its ranking:
-Continuing the treatment of bad debt, declining the loans of group 2
-Promoting the drawing of credit risk contingency
To meet Basel II capital requirements, Vietinbank should deploy higher-capacity risk-mitigation tools to achieve the minimum capital ratio while minimizing risk concentration by reducing the debt exposure of the bank’s 20 largest borrowers This approach strengthens capital adequacy and mitigates concentration risk across the loan portfolio.
The policies that help Vietinbank to improve its ranking:
Banking products and Services cccccsssscceessesseeeceesseseeesenseeeecsnneceeeeneeececeeennes Looe AY 3.3.3 The general view of market for banking products in the next Š years
Table 3.1: Vietinbank’s existing and anticipating products for the next 5 years
Order Products’ name Existing Sa ee _
Il Lending State-owned enterprises X
3 Lending big private enterprises xX x
7 Tfamlg small and cavltibarnedned xX ˆ X private enterprises
5 Lending individual customers bóc Lending for consumption
La Lending for buying financial tools mm Lending the factory of nuclear charge lọc Lending the industry of universe manufacturing mì Services of big banks
3 Foreign exchange —-— _ immediate delivery, terms
| ig Sales of goods, securities
IV Investment items l Issuing notes in capital market, such as issuing bonds
2 Sponsoring enterprises, such as issuing
Consulting enterprises, merger and acquisition (M&A)
Certificate of deposit from bank
VI Retailing sale l Overdraft of current account
81 l7 w Lending for buying ears ee X
Vu Financial services ae Insurance X X mm Factoring X
6 Plastic cards (debt card/credit card/card | X X of buying goods)
7 Banking through _ telephone/GSM X network
3.3.3 The general view of market for banking products in the next 5 years
The banking system will continue to segment by specialization, refining offerings for distinct customer segments, product lines, and investment fields based on banks’ experience and strengths While this emphasis on specialization persists, many banks are also pursuing a shared, multi-functional strategy to stay competitive, blending targeted expertise with broad capabilities.
With the private economy and non-state-owned economy continuing to grow, the banking system is set to promote and expand supplying products and services to small- and medium-sized enterprises (SMEs) and individual customers over the next five years Banks will broaden access to financing, digital payment solutions, working capital, and advisory services tailored to SMEs, as well as everyday financial products for individual clients This shift aims to boost financial inclusion, enhance SME resilience, and stimulate consumer spending by delivering more convenient, customer-centric banking experiences By prioritizing SME financing, private- and non-state-owned sectors, and retail clients, the banking sector will support broader economic development in the coming period.
Lending for buying house, cars is the product that will be promoted to individual customers whose income is high and stable
Internet banking is a major growth trend in the financial services sector Banks that move fastest to embrace online banking will win the trust and loyalty of younger customers, who account for more than 45% of Vietnam’s workforce.
A new wave of banking products and services is being built, including sophisticated capital management solutions and specialized investment banking capabilities in mergers and acquisitions These offerings will be developed rapidly to serve high-net-worth individuals and retirees through enhanced private banking services, delivering tailored strategies and support.
Customer deposits at commercial banks are expected to rise significantly as demand for payment services grows and card services continue to develop This combination of increasing payment activity and expanding card services is driving stronger deposit growth for banks.
The demand for banking services such as cash transfer, commercial sponsor, lending for consumption, lending with mortgage will increase quickly
There is a growing tendency among banks to expand their asset bases and equity to realize economies of scale and improve operational efficiency To strengthen their ability to compete in an increasingly integrated financial market, joint-stock commercial banks are more likely to pursue mergers and acquisitions, leveraging larger scale to participate effectively in the market.
The share of service costs in the bank’s revenue structure is expected to rise, signaling a strategic shift toward market expansion and greater market share This development direction aims to heighten competitiveness, minimize risk exposure, and improve operational efficiency.
Banks will expand its operation scale to area and international scale in order to support its customers thorough, to improve the effectiveness of invested technology, risk sharing
Through its steady development, Vietinbank wishes to improve living standards of its staff promoting the development of other business fields, which contribute to developing the economy and society
To ensure stable development, we contribute to improving people’s living standards and to national industrialization and modernization We strive to implement all essential tasks effectively to support our country’s transition toward an industrialized economy and to become an industrial nation by 2020.
Following the lines, guidelines and policies of Party and State, the industry’s regulations
3.6 Evaluating the strengths, weaknesses, opportunities and challenges by SWOT analysis to develop Vietinbank’s development strategy unitil 2015
3.6.1] Analyzing the capacity of exploiting its strengths
The third largest scale of the industry and maintain its asset structure reasonably
The operation effectiveness is good
System of branch network is wide and it is allocated everywhere in our country
The financial ratios are probably improved much when the methods of managing risks are applied sufficiently
The growing ability thanks to the advantages in both capital and credit
3.6.2 Analyzing the capacity of restricting the weaknesses
Expense pressure from drawing risk contingency in the case of declining quality of assets
Revenue structure has not been diversified, the revenues mainly depends on credit activity
Operation effectiveness of subsidiary-companies is limited
The capacity of managing risks does not meet the requirements The capacity of checking and self-checking the activity is not good, ethic risks and demonstrator
Capital raising from residents and economic institutions is on a decline, widening the gap for medium- and long-term funding The supply of medium- and long-term capital is insufficient to meet the demand for capital deployment, and liquidity risk is increasing for assets with maturities longer than one year.
Management and controlling need be made perfect continuously
3.6.3 Analyzing the capacity of exploiting the opportunities
The global integration of banking industry has contribution to expanding the market
Banking industry is developing with many new products and services
Government’s support and the participation of the international financial corporations as the big shareholders after equitization
The business environment is clear and more motivative
The source of input is more diverse
The policy of motivating the demand for investment and consumption to prevent recession
3.6.4 Analyzing the probability of limiting threats
Economic growth is expected to slow over the next one to two years as the economy works through the lingering effects of the 2008 global financial crisis Market volatility is likely to increase, and many businesses and consumers may face financial stress, including the risk of bankruptcies among firms and customers The downturn will bring significant difficulties as demand shifts and competition intensifies To weather this period, companies should focus on liquidity management, diversify revenue streams, and streamline operations to withstand ongoing market fluctuations and preserve resilience.
The business decisions will be more likely to depend on the basis of risk balance and profit rather than depending on existing relationship
Competitors are diverse and good at market share and operating resources Rules change in the direction of applying the international standards
3.6.5 Building and choosing the strategies to implement the objectives
3.6.5.1 Building the strategy by SWOT analysis
From the analysis of opportunities and threats as well as strengths and weaknesses above, we can have SWOT matrix as the following:
1 Being the bank which has big scale} 1 Growth rate of raising capital is and top trade slower than that of other Joint-Stock
2 Large capital and strong financial Commercial Banks
Capacity 2 The average age of staffs is
3 Wide network is allocated everywhere | Telatively high, inadequate, not highly in the country active knowledge
4 The trading offices are located in big 3 Skill of caring and selling products cities, area of many people, and busy |’ still weak business 4 Retailing service is limited
5 Lending the big projects, meeting quickly the demand of small and medium-sized enterprises
6 Low lending interest rate and transaction costs which have attractive competitiveness
8 Implementing — successfully the equitization and modernization of banking technology in the first stage
1 Vietnam expands international integration, especially in 2006 officially joined the WTO will attract foreign investors into the country
2 State is in the process of economic renewal, promote modernization, industrialization and innovation
3 Many new industrial zones are formed
4 State has the policy of equitizing state-owned commercial banks
5 Vietnam is applying advanced technologies in the world in particular the banking sector
6 Demand for credit and investment banking services are increasingly
1 The level of officers are not skill enough leads to the effectiveness of business
2 There will be many foreign banks operating in countries, more joint stock bank which will be newly established competitors are investment credit and banking services
3 State policies are more open to foreign investors, many new industrial parks will form the potential risk about the market
4 The fierce competition among banks leads to the risk of deposit rates and lending
”~ powerful SỐ 5 Weather climate change,
7 Will expand the network of unusual, potential natural disasters branches and transaction offices such as floods and epidemics
8 People's income is growing rapidly 6 The world economy continues to compared to other countries in the decline region
By analyzing the strengths,weaknesses, opportunites and threats above We can combine S, W, O.T and create Vietinbank’s strategy in the following time:
- Strategic group of strengths and opportunities (SO)
+ Combining strengths 1, 2, 3, 4 and opportunities 2, 4 to operate the apply strategy and develope the information technology
+ Combining strengths 3,4 and opportunities 1,3, and 8 to promote raising capital
+ Combining strengths 1, 2,4,6,7 and opportunities 1,3,7 to expand investment, to develop market
- Strategic group of weaknesses and opportunities (WO)
+ Combining opportunities 5,7 and weaknesses 1,3 to take advantage of raising capital and to promote cross-selling banking products and services, to increase revenues from services
+ Considering and promoting weaknesses 2,3 and developing the opportunities 1,3,6,8 in order to standardize model of organizational executive management, create the strategy of promoting marketing activity and developing market
- Strategic group of strengths and threats (ST)
+ Using strengths 1,2,3,4,6,7,8 to standardize model of organization, financial transparency
+ Combining strengths 3.4.6 and weakness 3 to implement the strategy of developing and selling banking products and services
- Strategic group of weaknesses and threats (WT)
+ Combining weakness 2 and threat | to innovate, to give training of working and selling skills for staffs
By combining weaknesses 3 and 4 with threats 2 and 3, this approach promotes the adoption of information technology and the research and development of new products and services that are highly competitive, positioning the organization to compete with rivals’ advanced products and services.
3.6.5.2 Establishing the strategy on SWOT matrix
Strategic choices for VietinBank are formed by assessing both external and internal environments through a comprehensive SWOT analysis of strengths, weaknesses, opportunities, and threats This analysis guides sustainable competition and development, resulting in four overarching strategies that align the bank’s capabilities with market opportunities, address weaknesses, capitalize on opportunities, and mitigate risks By translating SWOT insights into strategic planning, VietinBank aims to strengthen its competitive position, enhance efficiency, drive growth, and build long-term resilience in a dynamic financial landscape.
Strategy 1: Strategy of promoting the financial capacity, developing network, diversifying products and services and improving business effectiveness
Focusing on human resources and expanding the business network, the bank aims to boost financial capacity, improve operational quality, and enhance overall business effectiveness The strategy prioritizes maintaining and growing market share by expanding retail banking operations, promoting wholesale banking, and targeting high-potential locations with strong safety profiles and profitability By leveraging its vast network and available infrastructure, the bank aims to become the leading retail bank in Vietnam It diversifies its investment portfolio with careful risk controls to safeguard financial stability, increases owners’ equity, and tracks key performance and safety metrics The approach emphasizes sustainable growth, improved profitability indicators such as ROE and ROA, a healthy Capital Adequacy Ratio (CAR), and other essential financial ratios that demonstrate VietinBank’s resilience and market leadership.
89 payment capacity, are high, low bad debt in Viet Nam market and suitable with international rules
Strategy 2: Strategy of standardizing the organizing model, management and clear finance
Standardizing the organizing model and management framework to align Vietinbank with market dynamics and international standards, the bank will undergo equitization to mobilize resources for development and quality enhancement, with the state owning more than 50% of chartered capital and retaining the controlling rights, while attracting foreign strategic investors to participate in capital investment, technology control and development, and listing shares on domestic and international securities markets Vietinbank aims to become a strong financial corporation operating under a parent-subsidiary, multi-owner model, diversifying its business lines with a core focus on commercial banking, investment banking and financial services It will adopt the best international rules for organization, governance, control, and risk management, and perfect its systems—network infrastructure, policy frameworks, business controls, risk monitoring, and the enhancement of technical skills—while evaluating business performance according to current global banking and finance governance standards.
Strategy 3 Strategy of developing the highly qualified human resources, improving basically the quality of human resource
From 2010 to 2015, the bank will continue restructuring its human resource strongly, decreasing the quantity, improving the quality of human resource, creating the qualified and professional staffs, training more knowledge about international bank, foreign language and informatics; recruiting more highly qualified staffs who have the capacity of creating the revenues, much profit for Vietinbank It continues making perfect the implementation of compensation incentives, rewards on the basis of combining benefits and responsibilities, results, productiveness,
90 effectiveness of Vietinbank’s each employee It calculates all expenses, effectiveness of each product unit and individual
Strategy 4 Strategy of developing and applying the information and technology
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From the analysis of opportunities and threats as well as strengths and weaknesses above, we can have SWOT matrix as the following:
1 Being the bank which has big scale} 1 Growth rate of raising capital is and top trade slower than that of other Joint-Stock
2 Large capital and strong financial Commercial Banks
Capacity 2 The average age of staffs is
3 Wide network is allocated everywhere | Telatively high, inadequate, not highly in the country active knowledge
4 The trading offices are located in big 3 Skill of caring and selling products cities, area of many people, and busy |’ still weak business 4 Retailing service is limited
5 Lending the big projects, meeting quickly the demand of small and medium-sized enterprises
6 Low lending interest rate and transaction costs which have attractive competitiveness
8 Implementing — successfully the equitization and modernization of banking technology in the first stage
1 Vietnam expands international integration, especially in 2006 officially joined the WTO will attract foreign investors into the country
2 State is in the process of economic renewal, promote modernization, industrialization and innovation
3 Many new industrial zones are formed
4 State has the policy of equitizing state-owned commercial banks
5 Vietnam is applying advanced technologies in the world in particular the banking sector
6 Demand for credit and investment banking services are increasingly
1 The level of officers are not skill enough leads to the effectiveness of business
2 There will be many foreign banks operating in countries, more joint stock bank which will be newly established competitors are investment credit and banking services
3 State policies are more open to foreign investors, many new industrial parks will form the potential risk about the market
4 The fierce competition among banks leads to the risk of deposit rates and lending
”~ powerful SỐ 5 Weather climate change,
7 Will expand the network of unusual, potential natural disasters branches and transaction offices such as floods and epidemics
8 People's income is growing rapidly 6 The world economy continues to compared to other countries in the decline region
By analyzing the strengths,weaknesses, opportunites and threats above We can combine S, W, O.T and create Vietinbank’s strategy in the following time:
- Strategic group of strengths and opportunities (SO)
+ Combining strengths 1, 2, 3, 4 and opportunities 2, 4 to operate the apply strategy and develope the information technology
+ Combining strengths 3,4 and opportunities 1,3, and 8 to promote raising capital
+ Combining strengths 1, 2,4,6,7 and opportunities 1,3,7 to expand investment, to develop market
- Strategic group of weaknesses and opportunities (WO)
+ Combining opportunities 5,7 and weaknesses 1,3 to take advantage of raising capital and to promote cross-selling banking products and services, to increase revenues from services
+ Considering and promoting weaknesses 2,3 and developing the opportunities 1,3,6,8 in order to standardize model of organizational executive management, create the strategy of promoting marketing activity and developing market
- Strategic group of strengths and threats (ST)
+ Using strengths 1,2,3,4,6,7,8 to standardize model of organization, financial transparency
+ Combining strengths 3.4.6 and weakness 3 to implement the strategy of developing and selling banking products and services
- Strategic group of weaknesses and threats (WT)
+ Combining weakness 2 and threat | to innovate, to give training of working and selling skills for staffs
By combining weaknesses 3 and 4 with threats 2 and 3, the organization can accelerate the application of information technology and intensify research and development This strategy aims to create new products and services that are highly competitive, enabling the business to contend with rivals’ advanced offerings in the marketplace.
3.6.5.2 Establishing the strategy on SWOT matrix
Strategic choices for VietinBank are built on a thorough assessment of both external and internal environments, using a SWOT analysis to identify strengths, weaknesses, opportunities, and threats The insights from this matrix guide the selection of four overarching strategies aimed at enhancing competitiveness and enabling sustainable development for VietinBank.
Strategy 1: Strategy of promoting the financial capacity, developing network, diversifying products and services and improving business effectiveness
The strategy focuses on strengthening human resources and expanding the business network, increasing financial capacity, and improving operational quality and overall business effectiveness It seeks to maintain market share while developing and expanding the current retail banking operations and promoting wholesale banking, with a priority on expanding market share in locations with high-potential customers, based on safety and profitability By leveraging the network and available infrastructure, the objective is to become the leading retail bank in Vietnam A diversified investment portfolio will be pursued with careful oversight to maintain financial stability, emphasizing increasing owners’ equity and ensuring robust measures of business performance and operating safety VietinBank aims to build steadiness through metrics such as growth rate, profitability ratios (ROE, ROA), the Capital Adequacy Ratio (CAR), and related indicators to strengthen resilience and competitiveness.
89 payment capacity, are high, low bad debt in Viet Nam market and suitable with international rules
Strategy 2: Strategy of standardizing the organizing model, management and clear finance
To align with market trends and international standards, Vietinbank will standardize its organizational model, management framework, and risk-control system; equitization will mobilize resources to improve quality, with the state owning more than 50% of chartered capital and maintaining controlling rights, while foreign strategic shareholders participate in capital, governance, and technology development and the bank's shares are listed on domestic and international markets Vietinbank's development aims to become a strong financial corporation operating under a parent-and-subsidiary, multi-owner model, diversifying beyond core commercial banking into investment banking and financial services The strategy includes adopting the best international practices for organization, management, control, and risk management, and perfecting the network, management policies, business control, risk oversight, technical capabilities, and performance evaluation in line with current global banking and finance standards.
Strategy 3 Strategy of developing the highly qualified human resources, improving basically the quality of human resource
From 2010 to 2015, VietinBank will undertake a substantial restructuring of its human resources, reducing headcount while raising the quality and professionalism of its staff The bank will develop qualified professionals, enhance training in international banking, foreign languages, and information technology, and recruit highly qualified personnel capable of generating increased revenues and profits for VietinBank It will also continue refining its compensation and incentive systems, linking rewards to benefits, responsibilities, performance, and productivity.
90 effectiveness of Vietinbank’s each employee It calculates all expenses, effectiveness of each product unit and individual
Strategy 4 Strategy of developing and applying the information and technology
We prioritize investing in and developing banking information technology to build a synchronous, modern, safe, and efficient IT system We apply new and advanced technologies in bank management, risk monitoring, and the development of new products and services Banking technology is treated as the key element and foundation for development and regional and international integration This approach will enhance VietinBank's competitive capacity, quality, effectiveness, and productivity of its operations.
The reasons for choosing 4 strategies for Vietinbank are:
We conducted a comprehensive situational analysis using SWOT—strengths, weaknesses, opportunities, and threats—to assess VietinBank's competitive position and shape its development strategy The analysis shows how to leverage strengths, address weaknesses, capitalize on opportunities, and mitigate threats, forming the basis for VietinBank's actions to compete effectively and achieve sustainable growth in a dynamic banking market By translating these insights into concrete priorities—product and service innovation, customer experience improvements, disciplined risk management, and focused resource allocation—VietinBank can strengthen its market position and long-term resilience.
The basis for choosing strategy ẽ is:
+ Combining strengths 1, 2, 3, 4, 6, 7 and opportunites 1, 3, 5, 7 to strengthening finance, expand investment, develope network activities
+ Combining opportunites 5, 7 and weaknesses 1, 3 to raise capital and to increase cross-selling bank products and services
+ Combining strengths 3.4 and opportunites 1, 3, 8 to raise capital and enhance the financial strength
+ Combining the weaknesses 2.3 and threats 3.4 to diversify banking products and services
The basis for choosing strategy 2 ts:
+ Using strengths 1, 2 3, 6, 7, 8 to standardize the executive management organization and financial transparency
+ Review and strengthen the weaknesses 2.3 and opportunities 1.3.6.8 to standardize the mode] of marketing organizations and promote sales
The basis for choosing strategy 3 is:
+ Combining weakness 2 and threat | to improve the quality of human resources, improve training on selling skills
The basis for choosing strategy 4 is:
+ Combining strengths 1, 2, 3, 4 and opportunities 2, 4 to make application strategy and develope information technology in the banking sector
+ Combining weaknesses 3.4 and threatens 2.3 to develop new products and services which has highly competitive applied in in banking technology
3.7 Specific business strategy of Vietinbank from 2010 to 2015
Objectives of specific strategy e Strategy of capital assets
= Increasing the size of assets yearly average of 25% in 2015 to strive the total debt is 900.000 billions, equity is 42,000 billions
To strengthen owners’ equity and uphold a strong Capital Adequacy Ratio, the company will boost retained earnings and issue additional shares aligned with the asset base, while also diversifying the ownership structure by maintaining state ownership above 51% and attracting prestigious strategic shareholders with a footprint in both domestic and international markets, in line with the State Bank’s approved plan.
Promote raising capital to meet the demand for investment and credit which average annual growth 1s 25 — 30 %
Diversifying the products and services of deposits
Term structure and reasonable interest rate on raised capital
Ensure the high liquidity e Strategy of credit and Investment:
Promote lending investment, raise the average annual growth to 30%
Credit is the key business activity which competes by the market principle
Adjust the reasonable credit structure which is suitable with Vietinbank’s strengths
Promote risk management of credit; ensure the bad debt is less than 3%
Diversifying credit investments across the financial markets serves as market orientation, improving the effectiveness of capital use and strengthening a bank’s liquidity management A clear service strategy aligns products and client needs to support these goals, enhancing risk-adjusted returns and ensuring sustainable liquidity across market cycles.
Developing diverse banking services which are charged with fees, determining the key group of services to focus to develop
Depending on the basis of advanced technology to develop services, considering the customers’ satisfaction as being the development orientation e Strategy of human resource
Standardization human resources, enhancing capacity building and training of qualified personnel.
* Complete the mechanism and the payment mechanism
* Building qualified and professional personnel
* Consider the application of information technology as the key element which supports all activities of business development
* Building the system of information technology which is synchronous, modern, safe and united-integrated-highly stable
Strategy of organizing and controlling system:
Controlling the organizing system with clear and_ reasonable classifications
We are developing and establishing new subsidiary companies to deliver a comprehensive range of financial products and services to the market, while expanding our business network by opening additional branches and strengthening the network of trading offices across all cities and provinces in the country.
Developing strongly the system of banking retailing
3.8 Solutions to implement the strategy:
3.8.1 Sollution of increasing the assets and owners’ equity to improve financial capacity
To increase chartered capital, the capital surplus from equitization must be allocated to the State’s capital and added to the state budget, ensuring privatization gains bolster public equity and fiscal capacity Debt collection should be financed from sources provided by the State, creating a clear, state-backed mechanism for recovering obligations and supporting ongoing capital development.
VIETINBANK’s equitization starts getting success and annually increases issuing shares to existing and strategic shareholders domestically and
94 internationally, this will an annual big source of capital to have the growth in capital
After the annual financial results, allocations are made to establish funds that will increase capital at Level 1, including the Reserve Fund and the Supplementary Charter Capital The Fund of Financial Reservations covers the Investing and Developing Professional Skills Fund, aimed at investing in and developing workforce capabilities.
- Issuing bonds to increase the capital level 2 (in 2011)
- Increasing the withdrawing and establising fund of general contingency, revaluating the fixed assets £
Expanding the trading network, flexible policy of interest rate and high competitiveness
Diverse products of raising capital from deposits and payments by diversifying the promotion forms to attract the capital
Applying the strategic customer policy, increasing the trading utility of issuing valuable notes
Implementing the advertising campaigns, promotion and customer advatertising
Maintaining the primary and secondary reservation at a suitable rate which 1s sufficient to ensure the liquidity
Calculating interest rate risk, term risk, and exchange rate risk is essential, and banks consult the Asset and Liability Committee (ALCO) to approve the maximum risk the bank is willing to bear This ALCO-approved risk tolerance forms the foundation for capital management and currency risk management, guiding hedging decisions, balance-sheet optimization, and liquidity planning.
Through proactive customer due diligence, we review customer accounts and perform annual segmentation to categorize clients by business size and capital needs We assess each client's financial capacity, market position, and capital requirements to determine credit that precisely fits their situation This approach ensures lending decisions align with risk, support sustainable growth, and provide tailored credit solutions that meet each customer's unique needs.
Prioritize feasible investment projects and financially capable customers, focusing on state-supported sectors such as food processing, maritime products, and farm products to meet rising export demand and strengthen export-oriented growth.
Actively finding the good customers, highly feasible projects and making the policy of caring and marketing to customers