develop marketing skills of customer relationship experts in bank for investment and development of vietnam, ha tinh provincial branch

MINISTRY OF FINANCE ACADEMY OF FINANCE FACULTY OF FOREIGN LANGUAGE ======  ====== GRADUATION PAPER DEVELOP MARKETING SKILLS OF CUSTOMER RELATIONSHIP EXPERTS IN BANK FOR INVESTMENT

MINISTRY OF FINANCE ACADEMY OF FINANCE FACULTY OF FOREIGN LANGUAGE

======  ======

GRADUATION PAPER

DEVELOP MARKETING SKILLS OF CUSTOMER

RELATIONSHIP EXPERTS IN BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM, HA TINH PROVINCIAL

BRANCH

TRẦN THỊ THU HÀ

CQ47/51.02

Hanoi – 2013

MINISTRY OF FINANCE ACADEMY OF FINANCE FACULTY OF FOREIGN LANGUAGE

======  ======

DEVELOP MARKETING SKILLS OF CUSTOMER

RELATIONSHIP EXPERTS IN BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM, HA TINH PROVINCIAL

SUPERVISOR : MA TRẦN THU HOÀI

Hanoi - 2013

ACKNOWLEDGEMENT

To begin with, I would like to give my sharp thank to my supervisor

MA Tran Thu Hoai for helping, suggesting and encouraging me during the time I research for and write this paper

I am also indebted to Bank for Investment and Development of Viet Nam, Ha Tinh provincial branch for giving me permission to take part in the internship program, to do necessary researches, collect data and complete my own paper

I have furthermore to thank the director of the BIDV Ha Tinh branch who confirmed my study and facilitated me to go ahead with the research

Especially, I am really happy when I always have my family by my side and I want to thank them all for their love and encouragement to me

Finally, because of the limitation of time and knowledge, mistakes are unavoidable So, I hope to receive more comments and contributions to make

my paper better

ABSTRACT

In the current economic recession, especially when the number of bankrupt enterprises is rising, the term of marketing sale has become more and more important, for commercial banks in general, and Bank for Investment and Development of Viet Nam, Ha Tinh provincial branch in

particular Therefore, my paper with the topic “Develop marketing skills of

customer relationship experts in Bank for Investment and Development of Viet Nam, Ha Tinh provincial branch.” will point out the importance of practicing

marketing skills in customer relationship experts’ work

The main content is reflected in three chapters The first chapter is about the literature review for every commercial bank, mainly showing what provides a background theory of marketing in banking sector, including relationship marketing, some necessary marketing skills for customer relationship experts, and some challenges in bank marketing as well In chapter 2, by taking a scenario in BIDV Ha Tinh provincial branch, the paper focuses on real marketing skills practiced in actual situations of the branch’s customer relationship experts From that, chapter 3 points out the bank marketing approach in upcoming future and suggests some solutions to develop marketing skills of customer relationship experts in Bank for Investment and Development of Viet Nam, Ha Tinh provincial branch

In conclusion, the paper has already been completed in comparison to proposed objectives and targets in the introduction

TABLE OF CONTENT

Acknowledgement i

Abstract ii

Table of content iii

List of abbreviations iv

List of figures and tables viii

INTRODUCTION 1

1 Rationale of the study 1

2 Aims of the study 2

3 Methods of the study 2

4 Scope of the study 2

5 Organization of the study 3

6 Significance 3

CHAPTER 1: LITERATURE REVIEW 4

1.1 Definitions of marketing in banking sector 4

1.2 Relationship marketing (RM) in banking sector 4

1.2.1 Origin of RM term 5

1.2.2 Definitions of RM 5

1.2.3 Functions of RM 7

1.3 Some necessary marketing skills needed for CREs 8

1.3.1 Skill of searching and determining customer sources 9

1.3.2 Skill of starting an appointment successfully 11

1.3.3 Skill of collecting information of customers at the first appointment12 1.3.4 Skill of making an appointment with customers 13

1.3.5 Challenges for bank marketing sector 14

CHAPTER 2: CURRENT SITUATION OF PRACTICING MARKETING

SKILLS OF CRES IN BIDV HA TINH PROVINCIAL BRANCH 16

2.1 Introduction of Bank for Investment and Development in Viet Nam, Ha Tinh provincial branch 16

2.1.1 Introduction of Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) 16

2.1.2 Introduction of BIDV HT 16

2.1.2.1 History 16

2.1.2.2 Functions 17

2.1.2.3 Organization 18

2.1.2.4 Performance 20

2.2 Current situation of practicing marketing skills of CREs in the customer relation department of BIDV Ha Tinh branch 22

2.2.1 Customer relation department in BIDV HT and its performance 22

2.2.2 Weaknesses in marketing skills 28

2.2.2.1 Weakness of making an appointment 28

2.2.2.2 Loss of loyal customers 29

2.2.2.3 Failure of keeping promises with customers 30

2.2.2.4 Failure of compromising with customers 31

2.2.2.5 CREs concerning too much about their own benefits 32

2.3 Analysis framework of practicing marketing skills of CREs in BIDV Ha Tinh branch 33

2.3.1 Achievements 33

2.3.2 Shortcomings 35

2.4 Reasons for achievements and shortcomings 37

2.4.1 Reasons for achievements 37

2.4.2 Reasons for shortcomings 38

CHAPTER 3: SOME SUGGESTIONS FOR DEVELOPING MARKETING

SKILLS OF CRES IN BIDV HA TINH BRANCH 40

3.1 Orientation of BIDV about Marketing in banking sector - A two pronged approach 40

3.2 Some suggestions for developing Marketing skills of CREs in BIDV Ha Tinh branch 44

3.2.1 Fully understanding bank’s target customers 44

3.2.2 Better defining and monitoring bank’s competitors 45

3.2.3 Always trying to grasp new opportunities 46

3.2.4 Better defining and monitoring bank’s competitors 47

3.2.5 “Changing blood” CREs staff to be well-organized to carry on effective and efficient marketing 48

CONCLUSION 49

REFERENCES ix

LIST OF ABBREVIATIONS

1 BIDV HT Bank for Investment and Development in Viet

Nam, Ha Tinh provincial branch

2 CRE Customer relationship expert

3 CRM Customer relationship management

4 Dep Department

5 RM Relation marketing

6 STP Segmentation, targeting and positioning

LIST OF FIGURES AND TABLES

1 Figure 2.1 The organization structure of BIDV HT 20

2 Figure 3.1 The two pronged approach to bank

marketing

44

3 Table 2.1 E/A statistic in recent years 21

4 Table 2.2 Bad debt statistic in recent years 22

5 Table 2.3 Differences between individuals customer

relation and enterprises customer relation departments

24

6 Table 2.4 The status of using capital in recent years 25

7 Table 2.5 Annual EBIT of branch 25

8 Table 2.6 Branch’s performance mark 26

9 Table 2.7 Situation of mobilizing capital 27

10 Table 2.8 The performance rating table of BIDV

HT

28

11 Table 2.9 Rate of accomplishing plans of BIDV HT 35

12 Table 2.10 The number of active enterprises accounts 35

6 Kotler P (2008) Principals of marketing 12th edition Prentice Hall

7 Gordon I (1999) Relationship marketing: New strategies, techniques and technologies to win the customers they want and keep them forever John Wiley and Sons Publishers

8 Berry L (2002) Relationship Marketing American Marketing Association Chicago

Websites:

9 Trang chủ tin tức tài chính Việt Nam: http://vneconomy.vn/

10 Trang chủ ngân hàng BIDV: http://www.bidv.com.vn/

11 Diễn đàn cộng đồng ngân hàng và nguồn nhân lực: http://ub.com.vn/

INTRODUCTION

1 Rationale of the study

Nowadays, marketing is considered as a new service industry, which plays a very important role in transferring the value of a product or service of

a business to their customers

In recent years, we have heard too much about marketing sale It becomes a hot topic in current crisis situation, when all enterprises are trying

to deal with their inventory, recover business activities and make profit

Since 2010, commercial bank system has been in a very difficult stage

So that, marketing sale is recognized as a gold key, which directs a new orientation for banking sector So that, banking CREs have to arm with necessary marketing skills in order to meet that urgent need

BIDV is one of the most profitable commercial banks in Viet Nam However, being affected by the crisis of banking system, BIDV also gets many difficulties in running its normal operation Therefore, practicing Marketing sale strategies, especially marketing skills of CREs is more important than ever

From this situation, BIDV must have a flexible and effective Marketing sale campaign with a skilful customer expert staff Because of the importance

of marketing skills for these experts, I chose “Develop marketing skills of

customer relationship experts in Bank for Investment and Development of Viet Nam, Ha Tinh provincial branch” as my graduation paper topic

2 Aims of the study

My research has three specific aims:

First, it is to provide a background theory of marketing in banking sector, which is done by pointing out the definition, the introduction of

relationship marketing, some necessary marketing skills for CREs in banks, and some challenges in banking sector as well

Second, it is to illustrate how a banking customer expert practices marketing skills by taking the scenario at BIDV Ha Tinh provincial branch as

a case of the study

Third, it is to review the bank’s marketing approach, then to suggest some possible solutions to develop marketing skills for CREs in this bank as well

3 Methods of the study

In order to perform this study, I firstly choose the methods of analyzing, summarizing, synthesizing materials and books to form the theoretical background

And then, I evaluated strong points and weaknesses in practicing marketing skills of CREs through observing reality, colleting and comparing data related

Last but not least, I estimated and recommended some suggestions for

my paper topic based on the actual situation by consulting the director of the bank’s opinions and other useful sources as well

4 Scope of the study

Time: the fiscal year from 01/01/2010 to 31/12/2012

Space: Bank for Investment and Development of Viet Nam, Ha Tinh provincial branch

5 Organization of the study

The research is divided into three parts:

The first part is the introduction dealing with the rationale, aims, methods,

scope, organization and significance of the study

The second part is the main part of the paper with three chapters:

Chapter 1 is the literature review This chapter gives a general overview

of marketing in banking sector, which helps us realize the importance of CREs and their marketing skills as well

Chapter 2 shows the performance of BIDV system and its Ha Tinh provincial branch, especially the practice in marketing sale of CREs

Chapter 3 recommends some useful suggestions to develop marketing skills for CREs in the branch

The last part is conclusion that summarizes the content of the paper and

gives some suggestions for the further study

CHAPTER 1: LITERATURE REVIEW 1.1 Definitions of marketing in banking sector

Marketing is a modern business theory, which penetrated into banking sector in 1960s But Vietnam did not recognize marketing activities in this field until 1990s, when there were many old concepts deeply rooted in Vietnamese’ mind For examples, they thought that banks were monopolistic

or banks were grantors in society, etc

There are several views and definitions of bank marketing The most widely accepted definition is that of the American Marketing Association (AMA), the professional organization for marketing practitioners and

educators, which defines bank marketing as “the process of planning and

executing the conception, pricing, promotion and distribution of banking services to create exchanges that satisfy individual and organizational objectives”

Besides, Dr Philip Kotler, the author of business school marketing classics,explains that marketing in banking isthe science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit It identifies customer’s unfulfilled needs and desires It defines measures and quantifies the size of the identified market and the profit potential It also pinpoints which segments the bank is capable of serving best and it designs and promotes the appropriate services

Furthermore, according to the source of Marketing banking course book of Banking Academy, it is a combination of bank’s various activities which use all resources to serve target customers’ needs better

So, the most important point of this matter is that Marketing in banking

is to determine customers’ position exactly as market regulations The

purpose is not only to bring benefits for banks and customers but also to increase a fair competition of bank system and create a healthy environment for economy

Therefore, applying Marketing theory in banking is a must for modern banks today when “the race” becomes much more transparent than ever

1.2 Relationship marketing (RM) in banking sector

The banking sector is becoming increasingly competitive around the world This is particularly true in the area of small-medium business banking Furthermore, the core and actual product being offered to business customers could be considered reasonably homogenous Consequently, there is an increased need for banks to differentiate themselves from competitors at the augmented product level

One way that might be achieved is to develop longer term relationships with their key customers In the increasingly competitive global financial world, RM has been advocated as an excellent way for banks to establish a unique long term relationship with their customers Thus, recognition of the importance of RM has grown in recent years

1.2.1 Origin of RM term

The concept of RM has emerged within the field of services marketing and industrial marketing and blossomed in the late 1980s and 1990s RM is one of the oldest approaches to marketing And over the past twenty years,

RM has represented a renaissance in marketing and it embodies international, industrial and services marketing and in a business context is superseding traditional marketing theory

In fact, this reorientation of marketing has been proposed in contrast to the traditional approach, transactional marketing RM emerged in the 1980s as

an alternative to the prevailing view of marketing as a series of transactions, because it was recognized that many exchanges, particularly in the service industry, were relational by nature Today, this concept is strongly supported

by on-going trends in modern business

1.2.2 Definitions of RM

The American Marketing Association’s (AMA) definition of RM

embodies these principles: "RM is a kind of bank marketing that its goal is

developing and managing long-term and trustworthy relationships with target customers, suppliers and all others acting in the market"

Gordon and Ian’s definition of RM (1999) is noteworthy: "RM involves

creating, maintaining, and enhancing strong relationships with customers and other stakeholders RM is orientated to the long term The goal is to deliver long-term value to customers, and the measure of success is long term customer satisfaction."

Thereby RM is about retaining customers by improving communications, customer data collection and customer service quality In other words, a key objective is to foster customer loyalty

Berry and Leonard (1983) defined as “a deeply held commitment to

re-buy or re-patronize a preferred product or service in the future despite there are situational influence and marketing efforts having the potential to cause switching behavior” RM in service organizations is not an entirely new

concept and RM within the banking industry is becoming increasingly

important

So, RM is a feasible way for banks to establish a unique long term relationship with their customers, and RM activities are critical in the banking sector

1.2.3 The functions of RM

The term RM is a longer term approach to marketing, which is viewed

as a strategy to attract, maintain and enhance customer relationships Its main function is to identify and establish, maintain and enhance and when necessary also to terminate relationships with customers and other stakeholders, at a profit Thus, the objectives of all parties are met, and this is done by a mutual exchange and fulfillment of promises There are four fundamental values for RM:

First, the activities regarding RM do not focus upon a specialized department This means there must be a marketing orientation of the whole company

Second, RM emphasizes on long term collaboration, so companies should view their suppliers and customers as partners, where the goal is to create mutual value The relationship must be meaningful for all those involved, with the purpose of retaining long- term relationships with parties

Third, all parties should accept responsibilities Relationship must also

be interactive that means customers can initiate improvements or innovation

1.3 Some necessary marketing skills needed for CREs

Customer relationship experts are persons who are really dynamic and professional in their own job Before going out to seek for target customers, the experts need to understand some opinions about marketing in banking for themselves

Firstly, CREs should not try to satisfy 100% customers, which is impossible in reality The finance sector has various service channels which meet a large amount of request from customers Each bank has its own strengths and weaknesses so that these experts have to know exactly who target customers to serve are

Secondly, CREs have to select smartly loyal customers, who are one of the most valuable assets of banks, so that they should do all effort to care for these objectives, making them bring benefit to the bank

Thirdly, CREs need to determine that their main work is “sale” so that they should improve themselves continuously, not depending on other supports too much This is severity of the race so that the experts have to find what the main difficulties are then try to face to them

Fourthly, CREs have to dismiss the idea of unsatisfying their work out

of mind, because it is really difficult to find a job that they feel entirely satisfied If the experts want to be better, they need to stop complaining and get ready for doing all duties, and then they will be deservedly rewarded for sure

At last, CREs should turn themselves into professional persons who are creative and responsible for the job

1.3.1 Skill of searching and determining customer sources

This skill can be shown clearly in CREs having much experience through many years and strong reserve customer sources as well as many relationships to find new target ones, but this also is the first problem for young experts to cope with

At the first step, they will listen to advice from family, friends, partners

as well as other relationships In fact, their job is not as much different as that

of excellent athletes that means they have to practice continuously, prepare and build plans carefully Also, they spend much time interacting with customers through emails, phones or visits; and to search for customers, they have to communicate effectively with them For example, they visit to existed customers, ask them for introducing new suitable objects, and then the experts should keep contact frequently to customers and carry out business transactions These actions can be summarized into three words: contact, connect and success

The next step is that the experts have to design a loyal customer list for their own, which includes exist customers, potential customers, experts, advisors, etc Moreover, the relevant information from bank’s head office, branches, and colleagues should be added to the file, and they have to keep the data updated for certain

Finally, CREs should select some names from their file carefully and start to contact, then make a phone call to customers at a suitable time, talk to them and listen to their thoughts respectfully, and at last the experts should inform these objectives about bank’s activities or even some of related news if necessary The phone can make relationship closer, and the customers might feel that their role is concerned or they might be annoyed However, CREs

need to keep a polite manner, and they will be sympathized by customers for sure

1.3.2 Skill of making an appointment with customers

When CREs finds who bank’s target customers are, they at first will prepare to make an appointment with them, and this process will start when they get in hands some reliable promises or agreement from customers But whether they have these guarantees or not, the experts still try to find a polite way to meet these objectives in person Hence, for customers they have never met before, they should follow some tips as follow:

To begin with, CREs need to find out who has right to make the final decision as well as what are the needs of these customers Then, the experts have to determine what they can help and what customers might lose if they

do not use bank’s services, and CREs of course should keep in mind that they have to give all ways to persuade customers to agree with bank’s conditions

The second step is that CREs should prepare a detailed plan about how

to make an appointment with customers and how to attract them effectively after collecting enough their information The plan shows customers’ needs and the money value that seller’s services bring, it also includes relevant questions as well as situations that the seller has to face

Then, they can write a letter to the person legally making the final decision, which are aims not to provide services immediately but to prepare for a latter call; this letter briefly describes benefits and financial assurance that customers can get

The next important step is to make a phone call that was prepared and practiced carefully before, and it is better for CREs not to try to sell bank’s services through telephone because the customer’s secretary may take the

call, not the customer Thus, they should call him through his cell phone to make sure that he can receive the information directly

Finally, after realizing some signs that the customers concern about how they can save costs and get benefits by using bank’s services, CREs have

to quickly ask them about their schedule and make an appointment in person

In summary, the process of making an appointment with customers includes five steps: researching about target objectives to collect their information, preparing a plan to communicate with them, writing a letter to strengthen the relationship, making a phone call to introduce briefly about bank’s services, and making an appointment in person at last The CREs have

to capture this process carefully to take money rationally from customers’ pocket

1.3.3 Skill of starting an appointment successfully

This soft skill depends too much on CREs themselves, so that they should do only things necessary to save time, related costs and reach their target as well For example, a CE received a confirmation to meet his customer in person, and when he came into customer’s office, he looked around and discovered something special - a big picture drawn a fish hung on the wall, which is at first attractive to anyone coming into the room He though that the picture is really important to his customer and said in the way

he is so interested in it: “You seems to be a skilful fish hooker Where did they buy this beautiful picture?” He believed that this question can help him

to open conversation well; however, it might be useless in many situations Instead, they should directly start by re-confirming the appointment: “Sir, I would like to re-confirm the time they can spend for this appointment We have agreed by phone call that it will last about 20 minutes Is it suitable for you today?”

By asking this question, CREs can reach the following purposes:

Firstly, they can confirm time in a polite manner If the customer says that he can only spend 5 or 10 minutes, they should go to the content of the conversation immediately, introducing briefly about the benefits he can get and offering him bank’s support

Secondly, this action helps CREs to attract customer’s attention immediately; the experts easily put certainly a strong impression on the partner The way they work can help him to save time, and customers for sure realize that the experts highly appreciate this appointment

Thirdly, CREs can prove that they are serious and nimble experts, whose working style can motivate the customer to cooperate, and this also certainly creates a formal atmosphere between partners

Fourthly, the experts also easily make their customer believe that he is the person controlling the appointment, and he will feel that his role is respected in this conversation

At last, CREs can realize the customer’s attitude as well, which means that if he agrees to continue the conversation, there is a sign that he may buy bank’s services; this agreement shows his positive attitude about the expert’s proposal

1.3.4 Skill of collecting information of customers at the first appointment

It is really not easy to collect relevant information of customers and attract them at the first time, so that CREs have to remember that there are also many competitors trying to grasp their customers Therefore, they need to make their first appointment distinctive from others, dexterously show their concern in what customers are willing to pay for

In many situations, they can modestly ask customers such a question:

“Please tell me what they need! Indeed, I am really impressed about your company’s product Would they mind introducing me about your operation and production line?”

The primary purpose of this question is to switch customer’s concern into his pride, letting him tell about it as much as possible, then, the experts should listen to anything he strongly concentrates carefully; these are important points that his company focuses on and wants to invest in more

Another target is that CREs should try to talk less than customer, facilitating him show himself and his company because people tend to prefer talking than to listening, and then they have to assess exactly what and when

he needs to show bank’s relevant support

One of the most important parts of the experts’ plan is that they should

be ready to actively and flexibly change their strategies which are even prepared in detail carefully before

1.4 Challenges for bank marketing sector

Marketing is supposed to drive bank’s business strategy The CREs’ job is to research new opportunities for the bank and carefully apply segmentation, targeting and positioning (STP), which is to point a new bank’s business in the right direction

Then CREs are supposed to flesh out the 4Ps (Product, Price, Place and Promotion), making sure that they are consistent with each other and with the STP strategy Then, they also have to implement the plan and monitor the results When the results deviate from the plan, CREs have to decide if the culprit is weak information, a bad marketing mix, a misdirected STP, or poor market research

However, most of bank marketing is reduced to a one P function - Promotion, not a four P job If the bank ends up making a service that does not sell well, most of marketing’s task is to clear up the mess through hard selling and advertising

Every indication suggests that marketing will become even more challenging in the future than it is today, which includes five challenges as following:

Firstly, banks are finding it harder to get an adequate premium to cover their brand building cost

Secondly, banks have been embracing Customer Relationship Management as the latest cure for their ills This means collecting private information about individuals to make a better guess at what they can be tempted to buy But there is growing opposition to the collection of personal information Furthermore, people are increasingly upset with junk mail, spam e-mail, and telemarketing phone calls Banks better move to permission or

"opt-in" marketing as soon as they can

Thirdly, differentiation is not working Many differentiations do not matter to customers; it means they are spurious or not compelling Worse, competitors are quick to copy any effective differentiation to be the leading innovators

Next, consumers are more informed and sophisticated in their using bank services habits People are being trained into price consciousness, and buying online is all about price, not reliability or service differences

Finally, banks today tend to continue to cut their marketing expenses during recessions, the one prop on which their sales depend

In conclusion, the point is that CREs will face increasing challenges in trying to preserve bank margins and hit bank profit targets To make matters worse, many banks are inefficiently organized from a marketing standpoint Adding bank marketing inefficiency and ineffectiveness to all these challenges is a recipe for disaster

CHAPTER 2: CURRENT SITUATION OF PRACTICING

MARKETING SKILLS OF CREs IN BIDV HA TINH PROVINCIAL

BRANCH 2.1 Introduction of Bank for Investment and Development in Viet Nam, Ha Tinh provincial branch (BIDV HT)

2.1.1 Introduction of Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV)

As a long-established bank, BIDV has funded many investment projects and key economic areas of the country BIDV has also built the largest enterprise customers, while confirming the implementation of prestigious items, objectives, economic programs and social security of the country

BIDV is the choice, the trust for economic organizations, the leading enterprises of both countries and individuals in accessing the financial and banking services Besides, it has been known and recognized as one of the largest banking brand in Vietnam and certified as a trademark in the U.S and also rewarded annually from organizations, financial institutions at home country and abroad Moreover, the bank is always the pride of generations of staff and financial and banking sector in 55 years with traditional professional development investment for the country

2.1.2 Introduction of BIDV HT

2.1.2.1 History

Being a provincial branch belonged to BIDV, BIDV Ha Tinh, whose original name was BIDV Nghe Tinh, was founded on 1st June, 1990, and its increase and development is closely related to that of BIDV system However, because of many impacts of local social – economy situation and other objective factors so that in the BIDV HT’s development process still has its

own distinctive features in order to be suitable with the orientation of HT banking system, especially in organizational structure and business activities

BIDV HT’s building is placed at no.88, Phan Dinh Phung Street, Ha Tinh city, and it originally has only 77 officers and employees, 18 percent of whom has bachelor diploma and equivalent degrees Until now, although the total number of staff has not increased much (150 people), the qualification has been improved greatly with 80 percent of them having university level and higher ones

So, although placed on area having not high economic condition, BIDV

HT always accomplishes targets and missions assigned, continuing to develop and integrate into market economy, which is partly because of the close supervision of BIDV’s head and the consideration of local government

2.1.2.2 Functions

 Bank: BIDV HT functions as provincial branch of a leading experienced bank of finance services, brokerage, loan syndication and advisory, modern, convenient banking products

 Insurance: the branch supplies products for non-life insurance designed

to match the overall package to customers of BIDV

 Stock: BIDV HT provides a wide range of brokerage services, investment and investment consultant with the ability of quickly developing a system of agents to receive orders nationwide

 Financial investments: this provincial branch also includes financial leasing, security trading and capital contribution with the aim at establishing investment companies to the project; especially, it contributes to the strategy

of playing a leading role in coordinating key projects of the country such as company aviation stock leasing (VALC) development company highway (BEDC), investment, Long Thanh International airport, ect

2.1.2.3 Organization

Until now, BIDV HT has expanded considerably with many transaction offices and saving funds in different towns and districts, which aims to meet the branch’s business demand Now, BIDV HT has the total asset over VND 5,000 billion; the total capital raised is over VND 2,500 billion; the total credit surplus reaches VND 2,000 billion; the number of staff is over 250 people, 15 percent of whom have MA degree and other 85 percent have bachelor one Besides, there are 9 line departments and 7 transaction offices directly under the provincial branch

The organization structure of BIDV HT can be described as the following chart:

Figure 2.1: The organization structure of BIDV HT

Hong Linh transaction office

Can Loc saving fund

Duc Tho saving fund

Capital planning dep

Customer transaction dep

Banking fund management dep

Electronic computing Dep

Administration office

Finance and Accounting dep

Ky Anh transaction office

Cam Xuyen saving fund

Ha Tinh city transaction office

Credit management dep

Risk management dep