G1_00197 COMPETING BUSINESS STRATEGY FOR THE BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM -BIM SON BRANCH IN 2010-2015 CHIẾN LƯỢC KINH DOANH CẠNH TRANH CỦA NGÂN HÀNG ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM - CHI NHÁNH BÍM SƠN GIAI ĐOẠN 2010-2015
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VU Division of tasks to all members in the group
With the above content and structure of the report, group | has divided tasks to members as follows:
Duong Anh Son I2; HI.2; II.3
GRIGGS Business Strategy for BIDV Bim Son in 2010-2015 period
1 Concepts related to business strategy
Strategy, derived from the Greek word strategos, was originally the military art of arranging the battlefield and allocating forces to win against an enemy Carl von Clausewitz, who studied the art of war in the 19th century, described strategy as planning for war and formulating combat strategies, with those plans guiding the participation of every individual More recently, historian Edward Mead Earle defined strategy as the art of directing and using the resources of a nation—or a union of countries—to ensure and increase the efficiency of its indispensable interests.
Today, businesses treat strategy as a disciplined plan to mobilize and deploy an organization’s resources—people, assets, and finances—to protect and advance its core interests, a concept often compared to military planning Kenneth Andrews first articulated these ideas in his classic book The Concept of Corporate Strategy, arguing that strategy is what an organization must do by leveraging its strengths and addressing its weaknesses within a context shaped by opportunities and threats.
Strategy defines an organization's long-term orientation and scope of action, shaping how it deploys existing resources to meet market demand and create value for all stakeholders By aligning capabilities with market needs, strategy aims to secure sustainable business advantages that benefit customers, investors, employees, and partners alike.
QRIoos Business Strategy for BIDV Bim Son in 2010-2015 period v
More specifically, strategy aims at:
- Sustainably achieving the enterprise’s objectives (business and social responsibility) in the long-term
- The market or market segment that the company will do business in and business strategies to be applied
- What will the enterprise have to do to gain advantages over its competitors in that market with specific types of customers?
- What are the needed resources (human resources, skills, assets, finance, technological secret, etc.) to achieve that goal
- Potential external threats that can affect the implementation of strategies such as environment, competition, politics, resources, etc and plans to prevent risks
- The value that the enterprise will bring to owners and the society in which the enterprise is a member
Strategy is not just setting objectives; it must translate those objectives into a concrete action plan with specific actions, a defined timeline, and allocated resources to realize the goals It should be a sequence of interrelated actions and decisions that influence one another and collectively drive progress toward the business objectives All strategic choices are rooted in internal resources—strengths and weaknesses—and external factors—opportunities and threats—so the plan can optimize capability, adapt to the market, and manage risk.
In other words, strategy is:
- Where is the business striving to reach in the long-term
- Which market is the business competing in and which types of activities does the business perform in such market
- What the business will do to operate better than its competitors in these markets (advantages).
GRIGGS Business Strategy for BIDV Bim Son in 2010-2015 period
- Which resources (skills, assets, finance, relations, technological capacity and equipment) that the business needs to be able to compete (resources)
- Which external factors affecting competitiveness of the business
- Which value and expectation that managers inside and outside the business needs (stakeholders)
In any organization, strategies exist at several different levels — from the whole business (or a group of businesses) to individuals working in that environment
Corporate strategy defines the overall direction and scale of the business to meet stakeholder expectations This level is heavily influenced by investors and, at the same time, guides strategic decision-making across the organization Corporate strategy is often clearly stated in the mission statement, signaling the company’s purpose and priorities to stakeholders.
Business strategy defines how a company can compete effectively in a given market by guiding decisions about product selection, meeting customer needs, and delivering value It centers on creating competitive advantages over rivals and aligning offerings with what customers want, so the business can differentiate itself By choosing the right product mix, targeting the right segments, and capitalizing on market opportunities, a company positions itself for sustainable growth and long-term success.
Operational strategy defines how each department within the enterprise is structured to deliver the corporate and business-unit strategic direction It concentrates on aligning human resources, processes, and people with the organization’s goals, ensuring efficient execution, optimal workflows, and cohesive performance across the enterprise.
Strategic management is the practice of turning strategic decisions—those decisions that answer critical questions about where the organization is headed, what it will do, and how it will allocate resources—into action A complete strategic management process comprises three core components, as described in the diagram that follows Together, these components help organizations align activities, drive performance, and sustain competitive advantage.
GRIGGS Business Strategy for BIDV Bim Son in 2010-2015 period
Business strategy centers on how a company competes effectively in a specific market by making deliberate choices about which products to offer to meet customer needs and secure a competitive advantage over competitors, while identifying and leveraging new opportunities.
An effective implementation strategy aligns every department with the company’s strategic direction, outlining how each unit will translate goals into action By taking a department-focused approach, the enterprise ensures coordinated execution across the organization, while concentrating on the key levers of resources, processes, and human resources With clear ownership, streamlined workflows, and invested talent, the company can deliver on its strategic objectives across all departments.
Strategic management is the process of taking "strategic decisions" - that answer the questions above In fact, the strategic management process includes 3 fully described in the above chart
In short, strategy is a wide range of complex actions in order to mobilize all the resources of the organization to achieve a certain goal
GRIGGS Business Strategy for BIDV Bim Son in 2010-2015 period
According to the combined viewpoint, “Business strategy is an art of coordinating all the activities and controlling them in order to achieve the long term objectives of the enterprise”
Business strategy is the process of defining an organization’s fundamental long‑term goals and the objectives it aims to achieve, followed by selecting action plans and allocating the resources required to execute them It turns ambition into concrete steps, aligns decisions and activities across the enterprise, and ensures people and assets are focused on delivering the desired outcomes over time.
In enterprises, business strategy is the art of designing and organizing the resources, capabilities, and actions needed to achieve long-term objectives It blends strategic planning with effective execution to align the organization’s activities around these goals, while continuously adapting to changes in the business environment A strong strategy anticipates shifts in the competitive landscape, guides resource allocation, and enables sustainable growth by balancing innovation with operational discipline.
1.2.1 Basic characteristics of business strategy
There are several basic characteristics of business strategy, such as:
- Business strategy points out basic objectives and business orientation of the enterprise in each period
- Orientativeness of strategy aims at ensuring the continual and sustainable development of the enterprise in the volatile business environment
Business strategy maximizes the mobilization and optimal integration of an organization’s resources—now and in the future—so assets, capabilities, and processes work together to create value It enables firms to exploit existing advantages, seize emerging opportunities, and build a sustainable competitive edge by aligning resource deployment with strategic goals and market dynamics.
- Business strategy of the enterprise is reflected in a consecutive process
- Business strategy always has the spirit of attacking and gaining victory in the business environment
- Last but not least, business strategy is often built in a long period (3 -
Business strategy plays an important part in determining the enterprise’s objectives and orientation to be the guideline for all of its
GRIGGS's business strategy for BIDV Bim Son during 2010–2015 centers on aligning business and production activities to seize opportunities in the competitive market, while proactively mitigating threats The approach emphasizes efficient resource use and strengthening the enterprise’s competitive position to support sustainable development It also provides a solid foundation for formulating effective policies and making informed operational decisions that adapt to changing market conditions.
Corporate-level strategy is the set of actions a company designs to gain a sustainable competitive advantage by selecting and managing a portfolio of different businesses It focuses on which industries and product markets to compete in, how to allocate resources across business units, and how to coordinate activities to capture synergies By diversifying across activities and aligning the strategic intent of each unit, the firm strengthens its overall position, balances risk, and drives value for stakeholders The aim is to optimize the mix of businesses to support long‑term growth, resilience, and profitability at the corporate level.
Current business situation and analysis of BIDV Bim Son
Business results OVEr V€ATS S S 2n S1 ST n HT HH Hư 38 If Analysis of major factors affecting business activities at BIDV Bim Son.40 1 External environment cccccccsecsccsecscsssescsscscseesscsscsecscesesscsensvaevaeeaeeas 40 2 Current business strategy of BIDV Bim Son ooo cecceceeescesecssetseeseesees 50 Evaluations on BIDV Bim Son’s implementation of business strategy 52
Table 2.3: Business results over years Unit: VND million
(Source: Business results of BIDV Bim Son in 2008-2010 periods)
According to Table 2.3, BIDV Bim Son operated efficiently, with profit increasing by 71% in 2009 versus 2008 Income growth outpaced expenses, driving the strong profitability This performance was driven by mobilizing funds at relatively low interest rates from individual customers and corporate units, while simultaneously offering loans at higher rates, especially in the year-end period The branch also implemented cost-reduction measures that supported the overall profit uplift.
From 2010 to 2015, BIDV Bim Son’s business strategy aimed to reasonably contribute to income growth, but the 2010 results did not match 2009, with income increasing by only 15.55% The underperformance was driven by rising expenses, notably capital mobilization costs pushed up by competitive mobilized interest rates, even as lending revenue grew to reflect higher demand for business capital while mobilized capital declined in 2010 To meet operating needs, working capital had to be raised, and the cost of that working capital remained high due to elevated interest rates As a result, expenses outpaced income, squeezing profits External factors beyond management control also played a role, but leaders must craft strategies to mitigate these impacts going forward.
Over the past three years, Thanh Hoa Province has seen a growing number of banks and significant fluctuations in market rates, making the business environment for BIDV Bim Son more challenging This is reflected in the contraction of the bank’s operating scale as shown by its sources of funds, a factor that strongly influences its overall performance Key drivers include intensified competition among banks for mobilized deposits, which pushes up interest expenses, raises operating costs, and narrows profit margins Such deposit-rate competition is a challenge that any bank in the region must contend with.
Sustained profitability at BIDV Bim Son has been the result of ongoing, concerted effort driven by the governance framework of BIDV’s board of directors and, in particular, BIDV Bim Son’s own board Their strong management capacity and strategic oversight have enabled the development and implementation of appropriate policies and directions, helping the organization navigate difficult business conditions and achieve consistent profit growth over the years.
Effective management boosts a bank’s market prestige, and BIDV Bim Son earns greater trust from customers and partners through its customer-attraction policies At present, BIDV Bim Son is leveraging these policies to strengthen its reputation and broaden its relationships.
GRIGGS Business Strategy for BIDV Bim Son in 2010-2015 period good credit relation with many domestic enterprises, helping raise business efficiency of the Branch
II Analysis of major factors affecting business activities at BIDV Bim Son
Banking is governed by stricter legal controls than many other sectors Policies affecting banks—such as competition, bankruptcy, mergers, and organizational structure—plus regulations on lending, deposit insurance, reserve requirements, credit risk, and capital adequacy are prescribed in the Credit Institutions Law and its implementing regulations Beyond these laws, banking activities are guided by state policies to safeguard the stability of the national currency.
Vietnam's legal framework governing the activities of commercial banks remains incomplete and not fully aligned with international practice The overlapping and even contradictory regulations create significant challenges for banking operations The government is actively reforming and drafting new, more appropriate legal frameworks to promote overall economic growth and strengthen the financial sector and the banking industry.
Policies from key supervisory authorities, such as the State Bank of Vietnam and the Ministry of Finance, directly shape the operations of commercial banks This influence becomes clear when the State Bank of Vietnam raises the required reserve ratio and the refinancing rate to curb price increases A notable weakness in the current system is that state-owned banks rely heavily on directives from their headquarters, which fosters passivity in branch-level activities and dampens proactive lending and service efforts.
GRIGGS Business Strategy for BIDV Bim Son in 2010-2015 period
Political and legal environments profoundly influence the operations of commercial banks A stable, well-defined regulatory framework and predictable policy climate promote the rapid development of business, finance, and currency activities, boosting growth across the sector; by contrast, political instability or an unfriendly legal regime can hamper lending, risk management, and market expansion, slowing overall development.
Vietnam's technology sector is expanding rapidly, driving economic development and powering the banking sector through advanced information technology However, most high-tech banking equipment used in the country is imported, which raises costs and weighs on commercial banks’ performance Implementing modern technology can enhance efficiency, deliver greater convenience to customers, and strengthen banks’ competitiveness in a digitized financial landscape as living standards rise At the same time, the high cost of machinery and ongoing operational challenges remain hurdles to technology deployment, and Vietnam’s banking system—including BIDV—will face stronger competition from foreign banks as it opens up to the WTO To stay viable in a global market, Vietnamese banks must accelerate technology adoption and modernize operations, ensuring they run more effectively and sustainably.
While technology sector in Vietnam is developing, most of local banks in Viet Nam have bought core banking systems from overseas
Griccs) Business Strategy for BIDV Bim Son in 2010-2015 period
Vietnam’s economy has grown rapidly with deeper integration across nearly all sectors, including the financial and banking system Commercial banks’ performance is closely tied to macroeconomic factors such as inflation, GDP growth, interest rates, the balance of payments, and foreign trade, highlighting the economy’s interdependence While Vietnam is seen as developing quickly and relatively stable, it faces economic uncertainties, including fluctuations in GDP growth and rising inflation amid global volatility GDP growth figures show 6.23% in 2009 and 5.32% in 2008, with inflation expected to continue rising, reflecting global and regional instability Currency trading remains tightly connected to the economy’s ups and downs, presenting a significant challenge for credit institutions pursuing business development in this dynamic environment.
To examine the economic elements surrounding BIDV Bim Son, we evaluate Thanh Hoa Province's economic potential Thanh Hoa sits in the Northern Central region, about 150 km south of Hanoi, offering strategic access to the capital and to regional markets The province borders Son La, Hoa Binh, and Ninh Binh to the north and Nghe An to the south, creating a diverse network of connections that can shape investment and growth opportunities for BIDV Bim Son.
An province in the south, Hua Phan province (Laos) in the west, and Tonkin Gulf in the east Thanh Hoa is 1,112,033 hectares in area, including 245,367 hectares of agricultural land, 553,999 hectares of forest land, 10,157 hectares of aquaculture land and 153,520 hectares of unused land It has different types of land which are suitable for development of food crops, forest trees, industrial crops and fruit trees The average GDP growth for the period 2005-
2010 reached 10.5 percent with 25 percent of agriculture and forestry and 41 percent of the construction industry, and 37 percent of trade - service
Thanh Hoa's infrastructure investments and proactive investment attraction have spurred economic growth, with the banking sector playing a pivotal role as banks establish or expand branches across the province As a result, mobilized capital, outstanding loans, and loan sales have grown on average by 18%, 17%, and 17.3%, respectively, highlighting strong financial activity and lending momentum in Thanh Hoa.
GRIGGS Business Strategy for BIDV Bim Son in 2010-2015 period
This will be a strong financial resource to promote economic development in
The socio-cultural environment is a long-term, relatively stable factor that shapes financial behavior In the Northern region and Thanh Hoa province, many people have historically saved money, hoarded gold, or invested in real estate rather than using banking services or commercial banking products, indicating that this mindset has changed little over time However, rising living standards have expanded social knowledge and financial literacy, increasing the likelihood that residents will become familiar with and use banking services, enhancing financial inclusion and unlocking new opportunities for banks To seize this momentum, banks should maintain customer trust and satisfaction while encouraging a shift from traditional saving habits toward bank-based saving and financial products that benefit both customers and banks.
Completing business strategy ¡n 2010-2015 periods
Business development pÌan - - 5c 2S 2z St E91 SE 1x re 54 1 SWOT anaÌyS1S - ác 211211211111 THY TT TT TT KH HH TH như 54 2 Business development pÌan c2 5c St 12121 E12 E111 SE Erxrkg 57 H Strategic commitments of BIDV Bim Son - cv Seo 57 1 HH
The following table summarizes the SWOT analysis of BIDV Bim Son
- Well-known banking brand in Vietnam
- Highly qualified, experienced and loyal staffs
- Strong financial capacity and business background
-Slow activeness in grasping and adapting to mechanism and policy remains slow
-Hard to access to new products and services
- Developed society, higher living standard
- Stable fund mobilization (SO) combination
-Quickly expanding the exploitation of big customers and customers that are small andmedium-sized enterprises via prestige and relation (WO) combination
-Invest in infrastructure, technological facilities and system of transaction offices and points-of-sales
-Promptly complete policies and regulations, etc
- Quickly concretizing regulation and process
UNIVERSITY Business Strategy for BIDV Bim Son in 2010-2015 period
- Difficult to mobilize funds competition from
- Organize training and retraining to raise the qualification of human resources
-Re-organize boards and departments in the direction of streamlining
- Actively invest in brand and product policy
-Well exploiting and sustaining advantageous market segments
(Source: formed by the group) 1.1 Strengths
BIDV is a well-known banking brand in Vietnam trusted by customers who do business with the BIDV Bim Son branch A competitive compensation scheme and comprehensive training policies help the branch recruit highly qualified, experienced, and loyal staff The branch is located in the province’s key economic centers, making it easily accessible for customers whenever they need financial services It also boasts strong financial capacity and a solid business background, reinforcing its reliability and service quality.
- Corporate culture: BIDV culture has been well applied in communication with customers
- Good risk management and liquidation
- The average age of cadres and staffs is high; average labor productivity
- The activeness in grasping and adapting to mechanism and policy remains slow
- The operating network remains limited and only concentrates in the city
- The management apparatus is not really streamlined and still cannot promote all business efficiency
GRIGGS Business Strategy for BIDV Bim Son in 2010-2015 period
- Products and services: Products and services have not been diverse, mainly including traditional banking services and having not been timely changed in accordance with the market demand
- Marketing tool has not been promoted products and services of the bank
- Although products are diverse, they are not outstanding compared to those of competitors; therefore, they do not attract customers
- The legal system has become more and more complete
- Vietnam’s economy is recovering with a relatively high growth rate
- The market potential is huge
- Banking services have become more and more diverse
- The society is developed, living standard is improved and the people’s viewpoint on consumption has become more positive
- The policies on finance and credit of the Government have become more and more complete
- Information technology has developed sharply and banking services have become more diverse
- Thanh Hoa is considered as a potential market with nearly 4 million people many people still have not used banking services
- Policies of the State still contain a lot of shortcomings and lack of stability
- There is direct competition from domestic competitors
- The average age of the staff is high and there are slow update and the thought of fearing changes of a part of cadres and staffs i Tơ
GRIGGS Business Strategy for BIDV Bim Son in 2010-2015 period
- The fund mobilization has become more and more difficult owing to inflexible policy and competition among banks
- The advantage in terms of brand is no longer absolute when there have been more and more new brands
- Competition with other financial institutions regarding substitute products such Vietnam post, insurance companies and financial leasing companies de Business Development Plan
Based on the results analyzed in chapter 2, our group fully supports BIDV Bim Son's target for 2010–2015: to develop the bank into the leading institution in Bim Son town and within the BIDV system, offering a range of new and advanced technological products compatible with a modern banking environment; to cultivate an active, well-trained, and professional leadership and workforce; to equip the bank with modern technologies that deliver the most convenient products and services to customers; to establish a broad and highly effective operating network across the province; and to ensure the income of our employees.
Group | puts forward some supplementary targets as below:
- Setting up and consolidating the managerial machine neatly and professionally; setting priority to bring “new blood” into the leadership staff and employees who directly deal with the customers;
- Organizing advanced training and re-training the staffs so as to suit the standards of BIDV Vietnam;
- Upgrading and renewing the equipment, applying leading technologies in management and administration;
- Changing the structure of the source of revenue from the services; the income increases compared with today
Gricgs) Business Strategy for BIDV Bim Son in 2010-2015 period
- Safety factor and basic banking management standards can meet the international practices
II Complete strategic commitments of BIDV Bim Son
1 Vision: Becoming the leading bank in terms of modernization, profession and activeness With this vision, BIDV Bim Son has affirmed its orientation by investing into advanced technologies with outstanding advantages and applications Therefore, the branch needs to concretize its visions for each period
2 Mission: Satisfy the customers’ demands and meet expectations of the customers Provide human resources, both in technical and economic aspects to develop and continuously better the branch; at the same time, ensure the environmental factors Manage the company’s human resources to maximize its potential Orient the cadres and employees’ awareness about the importance of the concentration into business fields that can result in the highest profits and the best business results
- All resources focus on affirming BIDV’s trademark
- Harmoniously combine the benefits of the customers, staff and shareholders to ensure the success
- The confidence, commitment, manifestation, profession and activeness are the foundation for BIDV’s behavioral principles and business culture
IIIf Complete business strategy in the period of 2010 — 2015
BIDV Bim Son combines extensive experience and a robust record of achievements with strong customer relationships, solid financial strength, and a favorable business location These advantages support its strategic plan to become the leading bank in Bim Son town and to strengthen BIDV’s position within the system by delivering many advanced and innovative financial solutions that meet customer needs and drive sustainable growth.
The GRIGGS business strategy for BIDV Bim Son during the 2010–2015 period centers on modern technological products To execute this strategy, BIDV Bim Son must invest continually to differentiate its technologies and product offerings from those of competitors, creating a distinct competitive edge This ongoing differentiation then serves as the basis for targeting concrete consumer groups in specific markets, aligning product development and marketing efforts with clearly defined customer segments.
Therefore strategies that our group recommend here are:
- A bank that lead in technology and product in the north central region
- Have capital scope, loans and profits equivalent to BIDV Thanh Hoa
- To be an excellence Branch in BIDV system
To implement this strategy, BIDV Bim Son should continuously deepen differentiation in its technology and product offerings relative to competitors, using that competitive edge to target specific consumer segments within clearly defined markets.
1 Recommended solutions on strategy of the Branch
With the rapid development of modern technologies, especially information technology, BIDV Bim Son should accelerate the application of these technologies across business operations, including networking, bilateral payments, cash settlements, and remittance services, to speed up transactions This involves upgrading to new, higher-speed computers for the key trader’s room to connect directly with customers and replacing the old system, developing effective software applications to improve data extraction and daily trading services, and increasing processing speed to better serve customers The plan also includes upgrading customer-facing infrastructure such as ATM machines for cash withdrawals and payments for goods and services, and installing additional POS card scanners in shopping centers to enhance convenience and attract customers.
During the 2010-2015 period, BIDV Bim Son's business strategy focused on leveraging modern technology, with upgraded machinery and a robust internal network that substantially support employees’ activities The benefits of modern technology extend to everyday life and business, and BIDV Bim Son should treat technology as a core priority to enhance customer banking services The level of contemporary technology, equipment, and internal network also serves as a key criterion for assessing the bank’s position in the competitive business environment Therefore, continued technology development will improve service delivery and strengthen the bank’s market position and reputation.
Table 3.2 Estimated expenses for renovating equipments
_ 1 | Expense for upgrading 02 300 Expense of the the system of servers Branch
2 | Expense for equipping 40 480 Expense of the new system of computers Branch
3 | Expense for upgrading 01 200 Expense of the network system Branch
4 Expense for e-library 01 100 Expense of the
Griccs) UNIV E Business Strategy for BIDV Bim Son in 2010-2015 period
| 5 | Expense for installing 02 50 Expense of the
| distance internet Branch supporting devices
6 | Expense for installing 10 4,000 Expense of new ATMs BIDV
7| Expense for equipping 30 150 Expense of the
EDC card payment Branch facilities
(Source: formed by the group)) 1.2 Solutions on human resources
Human resources are a key factor shaping every aspect of BIDV Bim Son's business, so the bank should consistently focus on how it treats its employees A large portion of BIDV Bim Son's staff are seasoned professionals with many years of service, making it essential to invest in employee welfare and a fair reward policy By ensuring fairness and reducing bias, the bank can boost motivation, retain experienced personnel, and drive higher productivity across the organization.
Beyond welfare policy, BIDV Bim Son should train its employees in professional knowledge and social communication to raise their individual capacity The competence and professional qualifications of the staff and the management board must be improved to align with the demands of the working environment Although there have been improvements, current qualifications still fall short of the needs for business development in the era of international integration Consequently, BIDV Bim Son should continue investing in training by sending employees to professional courses or pursuing further university-level education In addition, setting up a structured training plan that combines on-the-job learning with formal education can help build a skilled workforce capable of supporting growth in an international context.
GRIGGS's Business Strategy for BIDV Bim Son in the 2010–2015 period centers on an effective human-resource approach built around a close partnership with training providers, notably the largest economics university By aligning the bank's employee qualification requirements with the university's programs, BIDV Bim Son ensures a pipeline of skilled personnel, enabling the organization to secure a qualified workforce that meets its needs.
Human resources must take the lead in attracting potential SME customers for credit activities In the past, banks were passive, waiting for clients to request investment loans; BIDV Bim Son should now proactively change how it operates By leveraging its large base of corporate clients, BIDV Bim Son should reach out to old customers and guide them toward loans that support production and business growth, while actively pursuing new business customers to broaden the bank’s lending footprint This approach also enables the development of additional services such as consultancy and payments, strengthening BIDV Bim Son’s value proposition.
In certain branches, the personnel departments have been reorganized to give direct priority to profit-generating units, cut bureaucracy, enhance protection and risk management, and establish new transaction offices in districts including Nga Son, Hau Loc, and Thach Thanh.
BIDV Bim Son conducts ongoing verification and realignment of its workforce in accordance with its regulations Older staff who no longer meet the required criteria will be encouraged to retire early under the branch’s applicable rights and policy framework.
Fable 3.3: Estimated expense for training and replacing laborers
No Content Quantity (VND million) Note
| | Expense for training 01 300 Expense of the doctors Branch
2 | Expense for training 5 500 Expense of the
GRIGGS UNIVER SITY Business Strategy for BIDV Bim Son in 2010-2015 period
| 3 | Expense for retraining 4 200 Expense of the and completing Branch university knowledge
4 | Expense for cadres 10 1,500 Expense of retiring before retiring BIDV age
5 | Expense for professional 50 250 Expense of the qualification training Branch classes
6 | Expense for recruiting 15 75 Expense of the new staffs Branch
(Source: formed by the group)
Business strategy in the period of 2010 — 2015 cccccccessssesesessesesesecseee, 58 1 Recommended solutions on completing strategy of the Branch
UNIVER SITY Business Strategy for BIDV Bim Son in 2010-2015 period offices to class-one transaction offices
4 Expense for means of 3 1,500 Expense of BIDV transport
5 Expense for employees 50 4,800 Expense of the
(Source: formed by the group)
2 Roadmap for implementing strategic solutions
To implement strategic solutions effectively, BIDV Bim Son is recommended to build a roadmap for implementation as follows:
Table 3.6 Roadmap for solution implementation
Griccs) Business Strategy for BIDV Bim Son in 2010-2015 period
To optimize banking operations, the State Bank of Vietnam should implement prudent currency policy and maintain stable interest rates to create favorable conditions for financial institutions By effectively controlling inflation, the central bank can minimize volatility in the business environment for banks and support sustainable growth in Vietnam’s financial sector.
The State will soon complete a comprehensive legal framework to harmonize regulations across legal documents, establish a robust foundation for banking operations in line with international standards, and create conditions for Vietnamese banks to align with the global financial and banking system, enabling them to be more proactive in the integration process.
BIDV should invest in upgrading facilities and adopting modern technologies at the Bim Son branch to create favorable conditions for efficient business operations, and it should review and adjust regulations to empower branches with greater initiative in their commercial activities, enabling them to seize emerging opportunities.
To promote a cashless economy, the government should actively publicize the benefits of digital payments and encourage citizens to reduce cash use, thereby supporting bank operations while gradually limiting cash in circulation to help curb inflation Salaries should be paid through ATMs for employees to streamline payroll and improve financial inclusion If this approach is implemented effectively, it can boost transaction efficiency, strengthen monetary policy control, and build a more resilient financial system.
GRIGGS Business Strategy for BIDV Bim Son in 2010-2015 period banks can mobilize capital more easily; besides, this can ensure the State’s management in putting taxes on the people’s incomes
To enable commercial banks in Vietnam to adopt modern technologies at a lower cost, the state should create supportive conditions by facilitating access to foreign technology and enabling technology transfer This includes backing the acquisition of foreign technical know-how and solutions within Vietnam to reduce operating costs and accelerate digital transformation By reducing costs and enhancing technology capabilities, banks will strengthen their competitive edge against foreign banks in the future.
BIDV Bim Son should intensify its marketing efforts by launching compelling promotions and campaigns designed to attract customers who deposit funds and use the bank’s services The bank should build a professional marketing workforce through targeted recruitment or by selecting branch staff to participate in marketing training, after which these professionals will specialize in promoting all existing products and services offered by the bank.
To build a competitive regional economy, we secure financing to support training programs that develop a highly technical and skilled workforce capable of meeting the demands of today’s modern business environment This effort connects practical, industry-ready training with higher education by partnering with regional universities and colleges, creating a robust talent pipeline that benefits employers and learners alike Through sustained collaboration with regional institutions, we align skill development with market needs, ensuring graduates are job-ready and businesses have access to the talent they require.
To boost operational efficiency and customer experience, we are increasing investment in IT infrastructure, with a focus on expanding and upgrading ATM networks and improving the overall facility system These improvements empower staff to work more effectively and make it easier for customers to access the bank’s services and products with greater convenience.
We maintain a rigorous lending process by conducting thorough appraisal activities to minimize non-performing loans, applying tight controls over credit activities, and continuously preserving high credit quality with non-performing loans kept below 1.5%.
BIDV Bim Son should proactively forecast market trends and conditions, and carefully formulate solutions to ensure efficient business operations The branch should vigorously diversify funding sources and expand service income (non-lending revenue) to boost overall revenue and strengthen financial performance.
From 2010 to 2015, BIDV Bim Son's business strategy centers on building leadership, strengthening governance, and leveraging all existing competencies and resources to develop capital sources and services, with the aim of achieving outstanding growth through expanded capital sources and enhanced financial services.
GRIGGS Business Strategy for BIDV Bim Son in 2010-2015 period
An analysis of BIDV Bim Son, a branch of the Bank for Investment and Development of Vietnam, shows that it has operated effectively and proactively contributed to the provincial and national socio-economic development within the BIDV system The study identifies opportunities and threats facing the bank, along with the branch’s strengths and weaknesses, and evaluates the current business strategies of BIDV Bim Son Based on this assessment, it proposes concrete solutions to refine and complete the branch’s business strategy for the 2010–2015 period.
This capstone project consolidates the knowledge gained in the Global Advanced Master of Business Administration program at Griggs University and applies it to formulate and implement a business strategy for BIDV Bim Son covering the 2010–2015 period Due to limitations in topic-specific expertise and the project timeline, the study presents initial experiments, insights, and recommendations designed to contribute to the continued development of BIDV Bim Son in the years ahead.
We sincerely acquire the valuable ideas of the teachers and friends so that our topic is more improved
Our group wants to express our heartfelt thanks to GRIGGS University
This dissertation acknowledges the invaluable support of the USA-based Center for Educational Technology and Career Development at Hanoi National University, the dedicated lecturers, the members of the expert group, and the management committees of BIDV Bim Son, whose guidance and collaboration helped us complete this work.