Building strategy to develop personal credit service at VCB

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING STRATEGY TO DEVELOP PERSONAL CREDIT SERVICE AT JOINT STOCK COMMERCIAL BANK F

CAPSTONE PROJECT REPORT

Le Tri Dung Tran Hoai Nam Nguyen Quang Hoa

Class: GaMBA01.N06

HANOI 2011

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM

CAPSTONE PROJECT REPORT

BUILDING STRATEGY TO DEVELOP PERSONAL CREDIT SERVICE AT JOINT STOCK COMMERCIAL BANK FOR

FOREIGN TRADE OF VIETNAM

Group Number: 4 Student’s name: Le Quang Hung

Nguyen Anh Tuan (1980)

Le Tri Dung Tran Hoai Nam Nguyen Quang Hoa

HANOI 2011

Ha Noi, August 20 th , 2011

Dear: Management Board of Class GaMBA01.N06

Group 4 Class GaMBA01.N06

Register outline of Graduation Thesis

1 Le Quang Hung - Group leader

2 Nguyen Anh Tuan (1980)

3 Le Tri Dung

4 Tran Hoai Nam

5 Nguyen Quang Hoa

TABLE OF CONTENTS

2 Chapter I: The Basic Theoretical Issues of Strategy to

1.1.2.2 Identification of Purpose, Objectives of The Strategy 7

1.2 Overview of Personal Credit Services in Commercial Banks 9 1.2.1 Overview of Commercial Banks and Banking Services 9

1.2.2 Overview of Personal Credit Service in Commercial Banks 10 1.2.2.1 The Concept of Ceredit Services in Commercial Banks 10

3 Chapter II: The Status of The Development Strategy of

Personal Credit Services of Commercial Banks, Joint-Stock for

2.1 An Overview of Business Status of Joint-Stock Commercial

Banks for Foreign Trade of Vietnam (Vietcombank) 18 2.1.1 The Process of Formation and Development of Vietcombank 18 2.1.2 The Organizational Structure of Vietcombank 19

2.1.3.3 Development Activities of Banking Services 25 2.1.3.4 The Quality of Credit Fund and Risk Provisions 26 2.2 Status of The Development Strategy of Personal Credit Services

2.3 Analysis of the Impact of Business Environment on Personal

2.3.1 Analysis of the Impact of External Factor Environmental -

2.3.1.4 Technological Factors – Technical Factors 35 2.3.2 Analysis of the Impact of Sector Environmental Factor 35 2.3.3 General Evaluation of the Impact of External Environmental 36

2.3.4 Analysis of the Impact of Internal Environmental Factors 38

4 Chapter III: Propose Strategies to Develop Personal Credit

Services for Commercial Bank For Foreign Trade of Vietnam 41 3.1 Strategic Orientation for Development of Personal Credit

Services of Commercial Banks, Joint-Stock Bank for Foreign Trade

LIST OF ABBREVIATIONS

Vietcombank Joint Stock Commercial Bank For Foreign Trade of Vietnam

VCB Joint Stock Commercial Bank For Foreign Trade of Vietnam

PC Personal Credit

ACB Asia Commercial Bank

HSBC Hong Kong and Shanghai Banking Corporation

SMS Short Message Service

LIST OF TABLES

Table 1.1 Matrix Used to Assess Internal Factor Environmental 14 Table 1.2 Matrix Used to Assess External Factor Environmental 15 Table 2.1 Labour Structure According to Working Years 20

Table 2.4 The Structure of Mobilizing Capital Between Foreign Currency

Table 2.7 Structure of Credit According to Customers 29 Table 2.8 The Evaluation of Matrix Elements Outside 37 Table 2.9 The Impact of Environmental Factors Internal Assessment 38

LIST OF FIGURES

INTRODUCTION

The term "Retail Bank" shall be understood and applied in practice in many developed countries around the world Retail bank includes banking services for customers who are households and individuals In developed countries, a retail bank

is a good business because it brings huge benefits to both consumers and banks Personal Credit Services is a main array of activities of a retail bank Personal Credit Service (also known as credit services for individual customers) has a strong influence on production, consumption and promotion for economic development Therefore, personal credit service is a main business of banks, even some banks, financial institutions only deploy personal credit service

In Vietnam, personal credit service has been implemented for a long time However, personal credit service of banks is very limited and is not focused much For almost 10 years, mainstream deployment of retail banking activities appeared and have developed strongly and led to the development of personal credit service

Joint Stock Commercial Bank For Foreign Trade of Vietnam is one of three major banks, which has diverse operations, higher business performance, but not focused on developing personal credit services Developing and implementing strategy to develop personal credit services in Vietcombank may help the bank develop diversely, sustainably and strongly

Based on the practical development of Vietnam's financial market situation and the status of deployment of personal credit services in Vietcombank, the co-

authors decided to choose the theme: Building strategy to develop personal credit service at Joint Stock Commercial Bank For Foreign Trade of Vietnam (Vietcombank) for graduation thesis

- The organization of the graduation thesis:

Chapter I: The Basic Theoretical Issues of Strategy to Development Credit Product for Commercial Banks

Chapter II: Status of the Development Strategy of Personal Credit Services of Commercial Banks, Joint-Stock for Foreign Trade of Vietnam

Chapter III: Propose Strategies to Develop Personal Credit Services for Commercial Bank For Foreign Trade of Vietnam

Chapter I: The Basic Theoretical Issues of Strategy to Development Credit

Product for Commercial Banks

1.1 Overview of Strategic Management

The strategy is a concept emerged a long time ago in the history of human development Initially, this concept was used for the operation of the military Business strategy concept is derived from war strategy, military but this concept had been developped in compliance with characteristics of business In 1962, Chandler initiated to develop the concept of business strategy and strategic business

management According to Chandler: Business strategy is the identification of

objectives and long-term goals of the enterprise and the adoption of chain of action

as well as allocattion of the necessary resources to implement these goals

Through the concept of business strategy, we can see, Strategic Management

is a set of management decisions and activities to achieve long-term goals of the company Strategic management consists of a sery of operations: firstly, research activities on business environment, identifying goals, objectives for the company, then strategic design activities, implementing strategy; adjusting strategy and finally testing and controlling strategies

In the scope of this thesis, the authors focus only on mentioning strategic planning activities including from research on the business environment to strategic designing activities

1.1.1 Strategic Management Model

Strategic management model is a collection of all the stages of forming and implementing strategy as well as other factors affecting the operations strategy Through this model, the administrator will see the various impating factors then from that they can determine starategic Intention, strategic Mission and then they can imagine strategy formation stage, implementation of strategy,…

Making strategy Implimenting strategy

Feedback

Figure 1.1 Strategic Management Model

Input of strategic planning process is the state of the inside and outside environment of the enterprise (named the business environment of enterprises) On the basis of determining the environmental impact of business environment business, enterprises will conduct an examination of strategic intent (purpose), strategic mission (target) of the enterprise in implementation of the strategy

Strategic action consists of two activities are: Developing strategy and implementing strategy

Internal environment

External environment Strategic Intention

Strategy at level of

enterprise

Company management

Structure and control

Active competence

Initiation and Innovation

Strategic leadership

Strategy at level

Co-operation Strategy

Competence strategy with above-average profitability

Final stage in a process of strategic management is to evaluate results of the strategy

However, due to the changing conditions of the enterprises themselves and the business environment, in the process of implementing the strategy usually somewhat lose accuracy, reasonableness so that in each each stage of the strategy, business still have to regularly adjust the activities in each phase of the strategic management process or perform some repetitive steps in the strategic management process

1.1.2 Process of Planning Strategy

Strategic planning activities include many activities which are closely linked together, in a certain sequence Strategic planning process includes the following activities: Analyzing the environmental impact of business objectives, ditermining goals of the enterprise, designing (build) the feasibile strategy and choose the fisible strategy

1.1.2.1 Analyze of Business Environment

The business environment of enterprises including: external business environment and internal business environment External business environment, including: general environment (also called macro-environment forces), industry environment and competitive environment Internal environment (internal environment) of enterprises formed on the basis of factors such as: resources, capabilities, core capabilities

External Environment

Analyzing external environment helps businesses identify market opportunities, target market, thereby determining the types of products, quality level, product level as well as to predict potential market

General environment (macro-environment) is a broad social sphere, which affect an industry and the business sector General environmental factors, including: Demographics, Economics, Politics/Law, Culture - Social Engineering - Technology and Globalization

Environment of sector directly affects the operation of the business This is the most typical activities significantly affected the competitive actions and reactions of business competition The key factors in the environment sector affecting the business activities include: threat of new companies, the power of supplier, power

of buyers, threat of substitutes, intensity of competition in the industry

Figure 1.2 External Environment

Regarding the competitive environment, this is essentially part of environment of sector However, this environmental impacts directly and strongly

to business and competition of the enterprise So it is considered as an independent

Environment

of sector

Threat of new companies, the power of supplier, power of buyers

Threat of substitutes Intensity of competition

Competitive environment

environment Analyzing competitive environment shows relative position of the enterprise compared with competitors’s one in the industry as well as for each specific opponent Analyze the competitive environment focus on looking at copetitors This environmental analysis is to identify competitors, Capabilities and Intentions of competitors in the current strategy, Predictions and Direction of the competitors, the competitors' Capabilities

Internal Environment (Internal Environment)

The internal environment analysis is the analysis of all the internal factors of the business Through this analysis, enterprise will get access to opportunities as well as the ability to turn business opportunities into profits and benefits for enterprises The analysis of the internal environment must be tied to analyzing the external environment, this is the basic principle of modern business; business activity must come from the market and serve the market demand Analysis of business environment shows obvious resources, capability and capacity of the business itself

1.1.2.2 Identification of Strategic Purpose, Objectives

Purpose (or strategic intention - Goal) of the enterprise is reason to exist, and target or desire of the business The purpose of the business helps to orient the entire production and business activities of enterprises Purepose is usually sustainable and long-term indicative for the business When completing the goal, enterprise will move to a new mission, which launched a new purpose for the production and business activities of enterprise In order to achieve common goals,

an enterprise often aims to identify partial purposes for specific activities or purposes of sections for each specific period

According to the above idea, purpose is only to show the "milestones" that need to be achieved and have general nature To achieve business goals, business needs to specify purposes which is easy to implemented, adjustmented, accessed and this will create motivation, orientation… The concretization of this is determining the objectives (or strategic mission - Objective) of the enterprise for

each group or individual, period To ensure the construction requirements of the target, the administrator must contable the target concept and the characteristics of the target The goal is concretized by the parameters and criteria that enterprises expect to get the plan period

1.1.2.3 Strategic Planning

Business strategy is a series of commitments and actions that a company use to gain a competitive advantage by exploiting core competencies in a certain market (Strategic Management - Master of Business Administration Program of

Griggs)

Making strategic Plan is concretization of the commitments and actions

which need to be implemented to achieve the target set Planning or designing business strategies must be derived and closely linked with the conditions obtained from analysis of the business environment

In business activities, enterprises can design a variety of different business strategies for each phase Two common types of business strategies are often used

as the leading strategy interms of in cost and differentiation strategy On practices enterprises can also design a strategy which is a combination of the two strategies above, Leading strategy interms of cost/Differentiation In business today, enterprises rarely pursue strategies on a large scale but they usually use strategy focusing on specific market segments Two common types of strategies mentioned above can also be designed according to the principles and strategic on a large scale and it will create concentrative strategy interms of cost and differentiation strategy

1.1.2.4 Action Plan

After planning strategy and specifying measures to perform objectives enterprises neeed to conduct action plan Action plan is a set of activities which follows the progress of time The making plan is crucial in the implementation of business strategy To accomplish a specific goal in business strategy, enterprises must carry out many different activities involving many parts and different areas of activity For example, to diversify the types of products, businesses need to get

more parts involed (R&D, finance department, marketing department, production department, HR department, ) Each department will have to make one or more works to coordinate with other departments to implement their own goals and objectives To ensure coordination and efficiency, managers have to juggle the activities of this department in the given order In fact, when implementing strategy, entreprises often pursue multiple objectives (e.g objectives to diversify product lines, objectives to expand market share, ) This means that each department must conduct multiple operations groups to carry out multiple targets The activities which are implemented for each objective, is related to each other and interact each other Administrator must to arrange and perform all sort of activities to ensure the highest efficiency Action Plan will help businesses solve problems It will help arrange all departments, divisions, concerned departments to perform smoothly each goal as well as all the goals in the given period

To perform a general strategy, enterprises must have an overall long –term action plan To make a general action plan, the business must divide this plan into into smaller part (called projects) The partial projects also are arranged in chronological order Completing all parts of the action plan means that completing a general action plan, and completing strategy

1.2 Overview of Personal Credit Services in Commercial Banks

1.2.1 Overview of Commercial Banks and Banking Services

1.2.1.1 The Concept of Commercial Banks (CBs)

In Vietnam, acccroding to the Law on Credit Institutions of the tenth term National Assembly approved on December 12th, 1997 has determined: "The

credit institution is the type of enterprises established under the provisions of this Act and under the other provisions of law to carry out business currency, banking service with the content of taking deposits and using deposits for use of credit and provision of payment services" and in the types of credit

organizations, "bank a type of credit institutions which perform all banking and

other business activities involved According to the nature and operation objectives, the types of banks includescommercial banks, development banks, investment banks, policy banks, cooperative banks and other types of banks"

From the above statement it can be said that commercial bank is one of the financial institutions that typically offer a wide range of financial services such as receiving deposits, loans and providing payment services In addition, commercial banks also provide other services to satisfy the maximum demand for products and services of society

1.2.1.2 The Concept of Banking Services

If regarding the point of satisfying customer needs, you can understand banking services is a set of features, functionality, utility created by the bank to satisfy the specific needs of customers on finance

Banking service can be understood the professional competence of capital, currency, payments that banks provide to customers to meet business needs, profitability, daily life, property storage Bank take back the difference in interest rates, exchange rates and fees from these services when providing to customers

1.2.2 Overview of Personal Credit Service in Commercial Banks

1.2.2.1 The Concept of Ceredit Services in Commercial Banks

According to the Credit Institutions Law in 2010 (Law No 47/2010/QH12) :

Credit service is agreement for organizations and individuals to use a mount of money or commit to use money according to the principle of repayment via lending and discounting, financial leasing, factoring, bank guarantees and other credit operations

Service credit is the most important activities of commercial banks This is

an economic activity related to transfer temporary right to use capital It is the relationship between equality and mutual benefit This is a sensitive competitive weapon, and effective in raising the prestige and expanding market share and improving profitability of commercial banks

According to the Law on Credit Institutions in 2010, the credit services include:

- Loans;

- Discount, rediscount of negotiable instruments and other valuable papers;

- Bank guarantee;

- Issuing of credit cards;

- Factoring domestic factoring for international banks are allowed to make international payments;

- The different forms of credit after it is approved by the State Bank

1.2.2.2 Role of Credit Service

Credit service is not only imcome source for commercial bank but also plays

an important role to economy of the country and enterprises, indivuduals who have demand to lend money

For Economy

Contribute to stabalize monitary and price The level of increasing or decreasing credit is the expression of tightening or lossening monetary policy Decresing credit hepls to increase money supply, thereby impact inflation In addition, impact of credit on inflation and ecomnomy is not the same in different country In different period of monetary market in each country is not the same

For Bank

Bring about income for banks thanks to service fee Develop diversified services, utilities towards simplifying procedures, network expansion activities Develop a diverse network of clients, largely as a foundation for the development of banking services Increase competences to meet the needs of the customers of commercial banks, thereby increase the adaptability and competitiveness of commercial banks an then contribute to strengthen the national finance

For Customers

Supply diverse, convinent and safe products for customers, create good financial condition for individuals in daily life and production

1.2.2.3 Personal Service

Customers of banks are indivuduals and organizations who have demand for financial products Customers are objects that banks focus on to supply banking service So that customers plays an important role in existance and development of banks

Market with individual customers is a set of individuals and households eho have demand for using banking service when they want their a mount of money safe and make benefit or when they want to have money to build, go abroad for study and …Individual customers are customer of banks, however, individual customers only consist of individuals or household who have exchanged with bank

It can be said that, personal credit service (or personal credit) is credit service for customers who are individuals and households

Personal Credit Service Consist of:

- Lending

- Discouting, rediscouting valuable paper and transfering tools

The Basic Feature of Personal Credit Services

- High risk

- The number of loans is large, each loan is at small scale

- Cost for authentication is large

- High interest rates than other loans

After more than 20 years of opening the economy, people are getting used and Vietnam have become familiar with the personal credit services Personal credit services enabling people to improve the quality of life, have better access to services, economic activity and society Service credit personal credit increased ability to create value for people by improving business and investment people Assumptions on the part that needs to use personal credit services in the population

is huge and continuing growth

A growth trend in the market is more expansive and intensive services, personal credit of the bank in Vietnam to tap the growth of demand, the

development of society and the demands asked to develop a strong financial markets, diverse and highly competitive economy

Therefore, development of personal credit is a necessity required by all banks and credit services to individuals is increasingly evident is actually a form of business to bring high economic efficiency the bank and there are specific differences compared to other forms of business Credit services are personal development, service markets personal credit are the fiercely competitive To develop services personal credit banks need to have HR departments in charge of this operation and have developed a clear strategy In other words, banks have established or developing strategic business unit (SBU) to operate, manage and develop personal credit services

1.3 The Tools Used in Strategy Planning

1.3.1 Rule 4W - 1H

The content of this rule requires the plan maker to answer questions about their work The question is: What to do? (What do I do?), How to? (Who do I see?), When to do? (When do I do?), Where to do? (Where do I do?) And how to do? (How do I do?) Resolve these questions, the strategy has clearly defined the problem to be solved and the direction to solve this problem

1.3.2 Matrix Used to Assess Internal Factor Environmental - IFE

Matrix is used to analyze resources and evaluate the strengths and weakness

of the functions and relationships between them Usually people use a list of 10 internal factors of the business, determine their impact to business strategy (define weighted influence) and in turn to assess the impact of of each factor to assess the influence of the internal environment

Table 1.1 Matrix Used to Assess Internal Factor Environmental

Level of Impact

6 The Strength of The

Products and Services

1.3.3 Matrix Used to Assess External Factor Environmental - EFE

Matrix is used to analyze the influence of external factors to the business strategy of enterprise Usually people use a list of 10 factors outside enterprise, determine their impact to business strategy (define weighted influence) and take turn to assess the effects of each factor and finally assess the influence of the internal environment

Table 1.2 Matrix Used to Assess External Factor Environmental

Level of Impact

1 The Growth Rate of The

5 Policy Provisions Relating 0.11

6 Scientific and Technical

Development, Technology

0.10

8 The People of the Area 0.08

9 Psychology and Consumer

In strategic planning, SWOT matrix is used to indicate the strategy whch can

be used on the basis of analysis: Strong points - Strengths, weak points - Weaknesses, Opportunities - Opportunities, Risks - Threats of the business

WT Strategy

Strategies to overcome weaknesses and threats

Figure 1.3 SWOT Matrix

to move

1 Cash cow

Create benefits (Dog)

3

Dog Alarm

2

Figure 1.4 BCG Matrix

This matrix examines the relationship between growth of market share with proportion of market share compared to the sector The vertical axis represents annual growth rate market share of the sector The horizontal axis shows the market share of enterprise compare with market shares of leading enterprise of the sector

1.3.7 Michael Porter Matrix

Based on two points, or use low-cost (it means low return of investment ROI, ave to extend time), or use products with high distinction (to occupy large market share) This model helps enterprises choose suitable strategy for ability of enterprise

Content of competence

Advantage of

Low price Distinction

Large 1 Affected by price 2 Use distionction of

products Narrow 3 Put focus on price 4 Put focus on distinction

Figure 1.5 Michael Porter Matrix

Chapter II: The Status of The Development Strategy of Personal Credit Services of Commercial Banks, Joint-Stock for Foreign Trade of Vietnam

2.1 Overview of Business Status of Joint-Stock Commercial Banks for Foreign Trade of Vietnam (Vietcombank)

2.1.1 The Process of Formation and Development of Vietcombank

- Bank name: Joint Stock Commercial Bank for Foreign Trade of Vietnam, the international transaction name: Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank); Abbreviation: VCB

 The charter capital (31st

December, 2010): 17,587,540 billion

 Address: 198 Tran Quang Khai, Hanoi

 Tel: (84-4) – 3934.3137

 Fax: (84-4) – 3824.9067; (84-4) – 3934.3844

 Business: banking business

- The business operations are allowed:

Mobilizing capital:

Accepting deposits, issuing valuable papers, loans and foreign credit

institutions, short-term loans of state banks in the form of refinancing

Mobilzing credit:

Lending and discounting of negotiable instruments and other valuable papers, guarantee and credit in the form prescribed by the State Bank

Payment services and treasury:

Open deposit accounts at State Bank and other credit institutions, open accounts for customers at home and abroad, provide the means of payment, make payment service in the country, implementation services and payment collection, make another payment service ruled by the State Bank, perform services for cash collection and customer, internal organization and payment system participation interbank payment system in the country Participation in international payment systems must be permitted by the State Bank

The activities and services must be according to the permition of the establishment and operation of law provisions

On 30th Otober, 1962, the Bank for Foreign Trade was established under Decision No 115/CP by the Council of Ministers issued on the basis of separation from the Foreign Exchange Management Department under the Central Bank (now State Bank of Vietnam)

On 1st April, 1963, officially opened the Bank for Foreign Trade as an exclusive foreign banks

On 21st November, 1996, the State Bank issued Decision No 286/QD-NH5

on the establishment of the Bank for Foreign Trade on the basis of Decision dated 27th March, 1993 68/QD-NH5 of Bank state Accordingly, the Foreign Trade Bank was operating under the Corporation model 90, 91 defined in Decision No 90/QD-TTg on 7th March, 1994 by the Prime Minister to the international transaction name: Bank for Foreign Trade of Vietnam, Vietcombank is the abbreviated name

On 2nd, Jule, 2008, the bank officially transformed into joint-stock commercial banks

2.1.2 The Organizational Structure of Vietcombank

Joint Stock Commercial Bank for Foreign Trade has grown stronger in the model with a multi-bank with 1 Head Office, 1 Exchange, 71 branches and 87 transaction offices, three affiliated subsidiaries across the country; two representative offices, two subsidiaries in foreign countries, four joint venture companies, two associated companies, a representative office in Singapore

Subsidiaries conduct non-banking services include: Stock Vietcombank; financial leasing company Vietcombank, management debt and asset exploitation Vietcombank, Vietnam Finance Company (Vinafico) in Hong Kong, Joint Venture Company 198 VCB

There are also capital contribution companies: contribute long-term investment capital to 15 partners (banks and companies), contribute capital with 5 partners (banks and companies)

By the end of 2010, the number of officials and employees of the bank is 11,415 people

Table 2.1 Labour Structure According to Working Years

(Source: General Planning Departement of Vietcombank Vietnam)

Table 2.2 Labor Structure by Degree

ALCO Central Credit

Committee

Deputy General Director

Technology center

Board Secretary

Institutions

Information of credit

Emulating board

Head office and 70 branches

Business units

Vietcombank tower

Financial leasing company

Stock company

Vinafico Hong Kong

Representative office in Singapore

Joint Venture Company

Joint Venture Company

Deputy General Director Card center

Policy and retail banking service

Synthesis and analysis strategy

PR

Training center

Deputy General Director Debt management

General construction management

International accountant

Trade investment

Banking account service

Accountant center

Capital business

Customer service center

Deputy General Director

Capital Management

Venture capital management

Credit policy

Labor union office

Synthetically payment

Project investment

Deputy General Director

Credit risk management

Risk management

Market risk management

Finance management

Management Debt

Internal audit

Figure 2.1 Organization of VIETCOMBANK

2.1.3 Overview of Operations of Vietcombank

2.1.3.1 Mobilzing Capital

Determine mobilizing capital is the key task for business expansion, improvement of competitive position Before the complicated capital market and the fierce competition between the banks, Vietcombank ‘s learders in the entire system thoroughly considers mobilzing capital is one of the important tasks first

Table 2.3 Mobilizing Capital Activities

(Source: General Planning Departement of Vietcombank Vietnam)

Total capital resources of the branch up to 31st December, 2010 reached 307,496 billion VND, raised 20.3% compared to 2009, including raising capital 258,707 billion VND, raised 28.7% compared with the end in 2009

Mobilzation from economic organizations reached 112,615 billion VND, accounting for 43.6% of capital raised Mobilized from the population reached 92,140 billion VND, accounting for 35.6% of capital raised Raised from credit

institutions reached 53,951 billion VND, accounting for 20.8% total mobilized capital

Through Table 2.3 showed that major deposits are of economic and social organizations Trends in raising capital from the population have not change much between the two years, but funding from other credit institutions and other organizations socio-economic have been changed Raising capital from lower socio-economic organization decreased 5.2% and mobilizing capital from credit institutions increased by 4.9%

Table 2.4 The Structure of Mobilizing Capital Between Foreign Currency and

(Source: General Planning Departement of Vietcombank Vietnam)

Mobilized capital both in foreign currency and local currency increased over

the years Specifically mobilizing local currency in 2009 increased 13.9% (13,592 billion VND) compared with 2008 In 2010 increased 41.4% (45,980 billion VND)

Foreign currency in 2009 increased 11.12% (9037 billion VND (calculated in Vietnam dong)) compared to in 2008 and in 2010 increased 13% (11,677 billion VND) compared to in 2009

Mobilizing to reach 157,092 billion VND, accounting for 60.72% of the total mobilized capital Mobilization of foreign currency reached 101,615 billion VND, accounting for 39.28% total mobilized capital