120 ACTUAL SITUATIONS ABOUT ASIAN STOCK TRADE BANK`S RETAIL (ACB) ACTIONS. COMPARE RETAIL ACTION ANALYST BETWEEN ACB AND VIET NAM HSBC

120 ACTUAL SITUATIONS ABOUT ASIAN STOCK TRADE BANK`S RETAIL (ACB) ACTIONS. COMPARE RETAIL ACTION ANALYST BETWEEN ACB AND VIET NAM HSBC

Viet Nam officially accedes to World Trade Organization (WTO) andenlarged door with economy world-wide Our country sector of the economies haschance outmarch " river " for talented show egress " big marine ", but request rightthey is right there is stalwart internal force and go true according to "anemotropism " novum is fast progress bear down big wind billow Trade bank ismidsections there is essential role in link sector of the economies together Action

of trade banking system capable of giant size impact with respect to motherlandeconomy in which role is accommodated; support from state bank side be is veryessential

In background present-day cut-throat competition, in order to keep hisfoothold and develop right at inland finance market was a challenges isn't littlewith respect to the governing body of the each trade bank, requisition in a strategicpurview and a one event sharps governing body, accommodate to continuouschanged the economy If like trade banks still only aim at traditional andoperational business credit product development according to mechanism "bureaucratically ", to the service of client follow type " is begged- donation " thensooner or later will not continue foothold on the market

Seeing service products developmental potency serve for client objectpersonally and enterprise fits and is little in market economy ACB is stock tradebank pioneer discovering for me monotelic that go true- systems development isretailed to only develop retail bank growth become premier that Viet Nam ispresent-day, ACB still to map out a trend towards accord developments to giveViet Nam to trade banks

Compare retail system between ACB bank and HSBC branch bank in VietNam This is one of powerful and long-time financial clique in the world to who

affirm operator purview and competence of pavilion, manager of ACB in particularand of Viet Nam young generation generally, affirm develop retail array is a trendtowards perforce for inland trade banks

The main content of this thesis consist of 5 chapters:

- CHAPTER I: GENERAL ABOUT ACTION OF TRADE BANK IN

INTEGRATION EPISODES

- CHAPTER II: GENERAL ABOUT RETAIL SYSTEM (PRODUCTS

SYSTEM, BANKING SERVICE DEDICATED TO PERSONALLY)

- CHAPTER III: ACTUAL SITUATIONS ABOUT ASIAN STOCK

TRADE BANK'S RETAIL (ACB) ACTIONS

- CHAPTER IV: ACTUAL SITUATIONS ABOUT IMPARITY OF

FOREIGN BRANCH BANK- HSBC- ACTIONS IN VIET NAM

- CHAPTER V: COMPARE RETAIL ACTION ANALYST BETWEEN

ACB AND VIET NAM HSBC

to WTO (World Trade Organization) in the year 2007

1 Concept and feature of trade bank

B Trade bank's point

a) Trade bank is money a business specificity enterprise in the field- credit Tradebank's action with a view to monetary streams leveraging and circulations serve fortransact, pay stem daily in economy, simultaneity pass fund raising actions andlending Trade banks be capable to create money from Pavilion of commercialoperation own pass interest rates tools, ratio So, trade bank is a country monetaristsustained contributory link of chain to vanish to be with respect to country converteconomy to assist at regional and international integration such Viet Nam

b) Product that bank do business and make service is finance goods In otherwords, that is money and priced documentary evidence as: share, debt bill of cost,bank draft, and assign at This is market economies’ high-product ergo is functionaccording to a process and must be administered by man-power resources havecertain profession leveling, lean on the base of legality owing to ordinancelegislation

c) In the course of action, product trade bank creating and furnishing direct servicefor consumer when there is need Consequently, activity of bank base on trademark and prestige creating with respect to client Therefore, trade bank's action is aseries of ceaselessness product quality enhancement service feeding and popularizemarketing of spectra own is next and of spectra marketing publicity own to client

d) Trade bank's action is bridge ware between dormant capital personnel investor,enterprises, haves and investors, enterprises, personnel has capital need borrowed.Contributory trade banks isn't little into resolve unemployment cum contributoryincome and standard of living of population enhancement warrants capital withrespect to phyla’s economically in order to develop profession, economic structureshift in a country

C Class trade bank according to capital structure

In Viet Nam, assorted trade bank based upon expends is awake about capitalstructure include: state-managed trade bank (belong to organization credit is state-owned) trade bank branch office stock trade bank, joint venture trade bank, isforeign, trade bank there is 100% capital inflows Trade banks are state-managed

in the course of action according to episode possession policy ever, there might

carry out equalization become stock trade bank (or ancient trade bank is alsofractional might nationalization become state-managed bank).

a) State-managed trade bank

State-managed trade bank is trade bank because of governmentally who founded,State's objectives economically total equilateral because of state- owned activecapital invested executive contributory Administration of state-managed tradebank owing to appointing state bank of Vietnam governor apparatusimmunity after having government's opinion Action of state-managed trade bankonion is director general and deputy general managers owing to appointinggoverning body and to governor state bank is approved

b) Stock trade bank

Stock trade bank is trade bank who founded under joint stock company formality,active capital owing to capital contribution shareholders among them, shareholdersmight enterprises, sector of the economies, lending institutions and the samecapital contribution personnel according to Viet Nam socialist republic law'sordinance Only maximum capital contribution financial clique and bank of foreigncountry only permissibly is 30% stock at Viet Nam trade banks

c) Foreign branch bank in Viet Nam

It be overseas banks’ subordinating agent Organization to who is permitted to open

in Viet Nam This branch office to mother bank at oversea capital investment andaccountable guarantee with respect to all allegiances that Viet Nam legislation isstipulates Foreign branch banks is in progress feature in Viet Nam presently isHSBC Standard Chartered Bank, ANZ

d) Bank has 100% capital inflow

It is Viet Nam foreign and operational possession by law bank founded by 100%capitals This bank form has legal personnel capacity, have bureau right ofcombination, enlarge branch office and have rights and obligations fullness such asViet Nam inland trade bank by laws To that tense flecked 06/ 2008, Vietnamesegovernment urgent busy to carry out completed license bank establishment of has100% capital inflows in Vietnam give to two banks: HSBC and Standard CharteredBank.

e) Joint venture bank in Viet Nam

It be bank who founded by kitty of two different countries on the basis to indenturejoint venture Joint venture bank is the artificial person of the country Vietnamesethat there is headquarters, there is legal person’s capacity, there is conditionsfullness according to ordinance, the Viet Nam law

f) Banking system commercially in Viet Nam

- 5 state-managed trade banks

- 37 stock trade banks

- 6 joint venture banks

- 28 foreign branch banks

- 44 overseas banks’ representative office

By the data from State Bank of Vietnam (SBV), digits therein before will keepincremental in next year’s because SBV are going on to licensing found stock tradebanks, banks has 100% capital inflows Like that, statute capital of banks will have

to augment

D Trade bank assortment according to criterion, flax-comb does business

Rating according to this criterion is only relativistic It completely depend onthe development strategy of the each banks in ever episode and proclivity,developmental potency those episode A banks in the past can who is by retail wholook up such as a wholesale trade bank, but when face a rather big potential aboutlevel of client personally, those bank can promote action as a of business strategyown

a) Wholesale Trade Bank

It is bank chiefly to transact and supply service product give client to object

is corporation, non- transaction with client personally

b) Retail Bank

It be bank transact and supply service products chiefly for object ispersonnel

c) Bank is both sold mountain village, and retailed

It is bank kind transacts and supply service for both clients personally andclient is corporation This is most generalized trade bank type

2 Challenge and censorial globalization integration chance give Vietnam Trade Bank to system

A Chance

Reach client pledge bank finance WTO in the field (flatten 16-18) will bringbacked give finance vendor option to them, conformable bye bank Beside of here,

they also enjoy international standards banking services had with interest rates andcompeting fee level

Reach trade banks will obtain chances catch capital, also experiential study'sfancy, technology enhancement and bank administration leveling Competitionnewly will bear for a driving force trade banks action productive enhancementcompetitive capacity leveraging Like that, reform trade bank fabric andmechanism of pavilion is a corollary to match new proclivity corollary in order toaccord

Reach intellectual official talent, they will had is also pick working areamatch’s wage level deservedly Moreover, in working environmentsprofessionally, they can develop at best competence work

B Challenge

Viet Nam trade banks will incur competing pressures from sides overseasbanks has management leveling financial ability, technology,, experience on theirmarket place that remarkably be bring products to service variety and more utility

Finance market replace like namely money-market, property market, goldbullion marketed, etc also will provoke pressure give investment of trade banks tochannel attracted

Viet Nam trade banks can ever glory with product service their traditionabout credit, be to arrange soon, competing pressure trade bank will had extra fromassurors another lending institution such as moneyed corporations, investmentfunds, and economically postal service corporations

Pressure vernix caesura mastery of increasing client serve for trade banks.Criteria select their bank more and higher Client becomes very sensitive with all-

in cost and interest rates Tale persuade and treat with more and more moredifficult surname for majority be they is knowledgeable about finance more thanbefore abound with risk such pick, staunchness of very easy eroded client, to losenamely very-high client

In addition, number of trade banks, lending institutions, overseas banks andavailability investment funds bear for staffed incremental concernment is capablebenefits is attractive Create condition give talent about who work to them workbetter to solicit This also is pressures give personnel to trade banks in problem

CHAPTER II

II GENERAL ABOUT RETAIL SYSTEM (PRODUCTS SYSTEM, BANKING SERVICE DEDICATED TO PERSONALLY)

1 Actual situations about retail action of Vietnam trade banks

In years near here, under competing pressure about who provide bankingservice and information technology's development fast, Viet Nam trade banks startmodernization care promoted technology science's advancements enter retailmarket exploitation Many banks invested is high-powered that give integration totechnology to establish the infrastructure necessary that give service todevelopment, meet the requirement more and more of the client, dynamic masterface with challenged

The course more and more manifold and flexible fund raising formality such

as interest stair interest rates frugality, frugality attending awarding, economicallyextracted and roots is flexible, indemnity frugality unitedly Example such as Asianstock trade bank applied life insurance program sent economically unitedly.According to information from state bank, capital source mobilize of bank frompopulation and make up 35-40% capital mobilize Increasing bank (in the year

2007 reach about 6, 5 milliard USD), contributory that create foreign currencysource substantially for banks and increase grossed since who waste acquaintancespassing level of immigrant remittances

Viet Nam trade banks had betterment steps about administration financialability, technology, administered, organization structure and sales division rate,service product system Many service types Many retail banking service types wasdeployed as like executive unproductive credit bank account service, cheque, card,asset management, and fiduciary, pledged

Beside of reached results, retail banking service of synchronism trade bankstill Vietnamese that many gaps, banks haven't been built banking servicedevelopment variant retail in a ways and efficiency

Client’s retail banking service product not yet copious that, not already meetthe requirements Modern banking services is deployed tardo, service pay card stillrestrict about underdeveloped and use range acquired deep and broad that in themany the general public: Internet serviced newly stop chiefly In informationinterrogation level not already permission effect a payment, cash unused paymentinstruments as individual cheque nearly neither used, utility pay card is stilllimitative Banking services serve to give high-income client has not yet beendeploy universally to tier as asset preservative, counsel is financial, invest consultchannel supply response not already traditional service customer service request ispersonal, service sales division modern that newly point supplies at a number ofbanks, transaction methods remotely base upon information technology foundationand electron haven't been spreader units rate accepts card still less, centralizedmain chief In boroughs and banking service capability urbanization, still busymachine ATM In experimental stages system connection concernment,consequently made limitative come clots

Many banks haven't visibility marketing strategy in retail bank action; stillweak marketing activity and absence professionally, client proportion personallycome close and banking service use still less Coarsely productive client policy, notyet favorable transaction procedure not yet high nippy quality, primary needsresponse Viet Nam trade bank not already about banking service of different objectgroups, coarsely productive client policy, not yet favorable transaction procedurenot yet high nippy quality, primary needs response Viet Nam trade bank notalready about banking service of different object groups, a number of still

professional canon and processes emphasize the aspect of secure guarantee forbank, haven't been favorably given client

Not yet pursuant organization machinery direct client, haven't professionalcadre squadron about retail outside brokerage technology application and levelingtechnology of many gaps bank stills, low technology foundation, be incapable todevelop or enlarge new applications Still weak aggregate design leveling, manymischance latency application system, bank stills not has a information technologydevelopment strategy research responsible division

Application level information technology not very high, not yet mickle newproducts, response information secrecy problem not already is demanded, latencystill hapless risk with both client and bank On microcell range, although lawenvironment was dramatically ameliorated, faces legal document about bank actionchiefly build on the basis processing processes, many gap statute becomes and finisnon- inclusions is professional

In advance competing and overseas banks pressure are mean to penetrateinto Viet Nam market placing under 100% capital inflow bank formality,action such as card service fund raising, personal credit, and remittances Viet Namtrade bank needed further dynamic master at develop retail banking services wheretransfer the money

2 Banking service development is retailed: trend towards perforce for trade banks

A Potential and benefit from retail banking services

Population in Vietnam about 85 millions with 60% populations under age

30 Besides that, loftiness rate of economic growth is conducive to more and betterViet Nam life and income bracket of person market economy in much enterprisetype fits integration episode also creating and sapling Visibility Vietnam is a

market place full of potential give retail, to actions if inland trade banks haveexploitability and source force

Prime Minister's directive recently demands ministries; bank account pastemolument executive phyla rendered give state budget word to stipendiary objects

is heartened with respect to trade banks Prime Minister's directive is pointed outfrom day for 1 January 2008, emolument object from state budgets, worker officer,national defense worker officer summer, warrior professionally, and labor bycontract belong to Department of Defense and Ministry of Public Security, etc

As of day who is nationally render bank account past emolument embodied:official cadre, functionary, enjoy 1 January 2009, will perform render bank accountpast emolument give latitude to all of upper objects Way renders each functionaryemolument spreaded especially there will make a cards ATM end of the month tobank account roll-in, bonus, even both health insurance money also to credittransfer and client can withdraw at bank's any machine point of application ATM.Pay by ATM card it is also possible to get implemented at thousands of card acceptpoint client even can send card past frugality, instead must slap implementprocedure at banks This also main that be underpinning for retail of easy bankcome clots services come to client

Small and medium size business retail carry-over tendentious busy tradebank, intensification come clots with client best personally When carry-over isretailed, banks will have market place outgrown, risk spread high and ableproceeds of a sale potential in business

With this proclivity, Viet Nam trade bank (gamp is of State or stockcommences) are strive to developing limpid waters reach transversal retail bankingservice system is regional about sort quality and competitive capacity, Viet Namprestige and trade mark of banking system enhancement step by step on financemarket is international

B Challenges newly give retail to action

Now Vietnam banking system has 37 stock trade banks, 1 developmentbanks 5 state - owned trade banks, 1 policy banks State- owned trade banks ensuite nearly 90% share markets (both remittance and lending), among them holdingabout make up 70%

Space overseas banks 10% share markets sub dermal (existing than 4 jointventure banks, 28 foreign branch banks, is 43 representative offices) only seizesshare Inland trade banks middle competition also become acrimonious especially

at cities disqualify 1 and disqualify 2, where finance ergastic client concentration isbig and accentuation bank density Beside of banks newly who founded, publicrelation of after-birth examination trade banks, then new branch office spring uplike the mushrooms on ways share market per more and more atrophic bankshrink, especially with respect to weakness a number of stock trade banks still.Clients will incline come close with many banks and abound with pick,consequently call for their requisition to who also become more exigent bank'sservice product not only must have competitive price level, but also must providemanifold and quality service products How to diminish cost and enhancement isqualificative serve to enhance competitive power is a problems isn't simple withrespect to many inland trade banks creating many so first jobs them play veryessential in economy role ours

Opening financial domestic market that makes rising risks because ofinfluences from outside, chance to make use of unequal rate, interest rate betweendomestic market and international market that reduces Viet Nam bank system alsomust face to face with economic shocks, international finance and crisis hazard Inthat case, capital market has not yet developed that will makes bank system mustincur losses higher

Though road to deliver the goods to WTO still protects Viet Nam banks come to in

2010, ingress of foreign banks that are strong about capital, technology and havingprofessional style of work that making competition is violent more If before thesebanks only select into market that customers are enterprises, so now only the main

is service for retail bank For example ANZ bank, Standard Chartered Bank,Deutsche Bank…

CHAPTER III

II ACTUAL SITUATION ABOUT RETAIL OPERATION OF ASIA COMMERCIAL BANK (ACB)

1 General introduction about Asia commercial bank (ACB)

A History of forming and development of ACB

Asia commercial bank is licensed foundation with total of initial capital that

is 20 billions of VND and official operation on 04/06/1993 From first operationdays, ACB defined vision that becomes top retail commercial bank in Viet Nam Inbackground of economic – society Viet Nam in that time “retail bank with target ispersonal, middle and small enterprises” that is a so fresh orientation with Viet Nambanks, especially is with a new found bank as ACB Can state, ACB is a bankwhich is vanguard in barycenter development retail operations

B Strategy

 Base on building operative strategy pass years that is:

 To make difference base on knowledge about needs of customers andtends customers

 To build management risk system synchronously, effectively andprofessionally

 To maintain financial situation at high safe level and optimization usingshareholder’s equity

 Having strategy preparing human resource and training professional staffforce

 To build “ACB culture” to become a spirit factor attached to wholesystem

ACB is realizing step by step obstinate growth strategy and diversification.

a) Obstinate growth strategy: expressed through 3 forms:

 Growth through the expansion of activities:

ACB is actively developing network of distribution channels in the targetmarket, urban Vietnam, while research and development of products and services

to provide markets are and the new market situation requires the customer'sincreasingly sophisticated and complex In addition, when conditions allow, ACBwill open representative offices in the United States

.

 Growth through expanding operation:

ACB built relation with other financial institution example card issueorganizations (Visa, MasterCard), Assurance companies (Prudential, AIA, NhaRong), Westen Union transfer money company, partner banks (Banknet), receivedthe card agencies, overseas national currency exchange payment agency…etc…torealize growth target ACB collaborate together with financial institution andenterprises to research development preeminent products for target customers,expanding multiform distribution channel system Extra, ACB has strategy partnerthat is Standard Chartered Bank which is famous about retail goods exert all one’sstrength profession skills exchange also advanced technology to enhancecompetitive ability oneself for integration process

 Growth through merge and integration:

ACB step by step builds received capacity with this non-mechanic kind of growthand operate this strategy when condition is permitted

b) Diversification

Diversification is another growth strategy which ACB considers operation ACBhas ACB corporation limited stock (ACBS), Asia finance bank leasing (ACBA),ACB is founding fund management company (ACBL) With competitive position

and established quite firm on market In the next time, ACB can examine operatingdiversification concentration strategy step by step to become supplier aboutthorough financial service by operations follow:

 Supply and strengthen enter into a partnership with insurancecompany to carry out combined supplement financial solutions for customers

 Research to found Card Company (development from card center atpresent), purchase vehicles finance company

 Research viability of operation service investment bank

C Service product and quality of service:

a) Major service product

 Capital mobilization ( receive deposit from customer) by VND, foreigncurrency and gold

 Use capital (credit facilities, investment, join capital in a business) byVND, foreign currency and gold: fiduciary loan and security property loan

 Agent services (realize payment internal and external country, fundservice, transfer overseas national currency exchange internal and external country,express transfer, life insurance though gold

 Gold business

 Issue card debit and credit: ACB Visa Electron/Master Card Electronic;ACB visa Debit/Master Card Dynamic, ATM card

ACB built quality management system follow standard of ISO 9001:2000 and

to be recognized that reach to standard in areas (i) capital mobilization, (ii) lendingshort-term, medium-term and long-term, (iii) international payment and (iv) supplyresources at association

b) Service quality

ACB with over 200 service products are estimated by customers that is one

of banks to supply the most copiously service products, base on moderntechnology information ACB both is growth fast and to realize risk managementeffectively In business environment has much hard and trial, ACB always holdfast position of a top Viet Nam retail bank

Detail is customer who can save time, simplify formality by hand inapplication online with consumption lending, and other products lending ACBwill examine records with time when is the latest 2 days

Customers want to send money, only need call, to give number of identitycard and indispensable information, staff of ACB will ready prepare to you canreduce waiting time With important money, staff will bring record to house tohouse to guide and explain for customer With feature is “customer is barycentre”

in most services ACB conquered and kept own customers successfully

Rate of growth is high of ACB in capital mobilization and lending as well asquality of customer throughout 14 years that is the most clearly demonstrationabout acknowledgement and trust of customer for ACB This is also just basis fordevelopment of ACB

D Price and discount programs:

Fee or interest rate changes according to economic situation but ACB alwaysensure competitive price about rate of fee compare with many commercial bankswhich have the same service quality Interest of lending is flexible in limit toattract customer.

Each season, each instance, ACB bank always has attractive discountprograms For example in summer 2008 recently, ACB attracted customers with

“yellow summer ACB” program, with a total value of awards of up to 8kg goldACB In addition, the promotion also as "packaging" such as when sending asavings rate of most money, the cost of transferring money abroad is reduced to5%, or loans with preferential interest rates, or donate protection Life first year

All the promotions as well as policies on interest rates also makes thedifference of ACB This is also one of the factors to keep customers of this bank

E Distribution channel network

According to annual report in 2007, ACB bank system includes 157branches and public relation at development economic regions in the wholecountry to serve for over 25 millions of customers

 At Ho Chi Minh city: 1 Exchange, 30 branches and 60 public relations

 Northland region: 2 exchanges (Hai Phong, Ha Noi), 7 branches and 22public relations

 Midland region: 6 branches and 9 public relations

 Westland region: 5 branches and 3 public relations

 Eastland region: 3 branches and 9 public relations

 5584 agencies where accept payment card of TTT ACB

 360 paying agencies of ACB express transfer centre – Western Union

F Technology:

 In 1999: ACB rolled out program about modernize technology banking(Core banking), build network system wide area, intended for online andcomputerization deal operation; and in last 2001, ACB is official to run coretechnology banking system (The Complete Banking Solution) to permit allbranches and public relations to connect together and to exchange immediately,share centralized data base

 In 2005: ACB and Standard Chartered Bank (SCB) signed negotiation aboutwholly technical support; and SCB became strategy shareholder of ACB ACBrolled out second period of modernize banking program, including composes (i)upgrade host computer, (ii) replace disposing exchange card bank software by anew software which has capability fitted with foundation of core technology atpresent,(iii) to lathe down ATM machine system

G Personnel and training

Take into account 31 December 2007, total business personnel is 4,600people Cadre has graduated standard and upper graduated is 93%, often beingtrained professional at education center of ACB According to Mr Do Minh Toan,vice- president of ACB, any staff is adopted in working must spend 6 weeks toprofessional training at education center of ACB and having 2 weeks to practicework with mentors Thus, new staff will clever with technological, process anddirect learn experience also having condition to make relation with mate from thefirst

Some friends studied at high school are working at ACB bank to showtraining program of ACB give them confidence since the first time taking one’s

duties Every years, they are trained more professional skill and equipped moreknowledge also out-information to get the better Right to this instant, none ofthem has intended to work for other bank since they like working atmosphere andequal treatment at ACB.

From 1997, ACB begin access professional skill modern bank with form athorough training professional skill program extending 2 years by foreign professor

in the bank field Passage this program, ACB seized in a system way operatingprinciples of a modern bank, standards and common practice in risk management,especially in the retail bank field, and application research in Viet Nam condition

ACB is backed a support training professional skill for personnel by Fat Eastbank and Trust Company of Philippines by international financial corporation.Management levels are joined management bank courses by bank training center

H Capital structure and organizational structure

a) Capital structure of ACB

While most domestic commercial banks have shareholders are domesticeconomical corporation and personal for sure Asian commercial bank permittedforeign financial corporation joining investment with status of strategyshareholder Foreign shareholder component hold 30% including: ConnaughtInvestors (Jardine Matheson Group), Dragon Financial Holding Ltd, IFC of WorldBank, Standard Chartered Bank Domestic shareholder component hold 70%including domestic company and possession personal

With this further stage in the evolution, ACB had glut capital resource toextend products system and retail service Besides, ACB have chances to roll outalso to learn management experience, professional skill and modern technology.After advance of ACB, some commercial banks change outlook and go onsuccessful stage in the evolution of ACB Inside must account Sacombank and