enhancing the effectiveness of manpower administration activities in bank for investment and development of viet nam north hanoi branch

MINISTRY OF FINANCE ACADEMY OF FINANCE ============== Student: PHẠM DUY ĐẠI Class: CQ47/51.03 ENHANCING THE EFFECTIVENESS OF MANPOWER ADMINISTRATION ACTIVITIES IN BANK FOR INVEST

MINISTRY OF FINANCE ACADEMY OF FINANCE

==============

Student: PHẠM DUY ĐẠI Class: CQ47/51.03

ENHANCING THE EFFECTIVENESS OF MANPOWER

ADMINISTRATION ACTIVITIES IN BANK FOR INVESTMENT AND

DEVELOPMENT OF VIET NAM-NORTH HANOI BRANCH

GRADUATION PAPER

FACULTY OF FOREIGN LANGUAGES

Hanoi, May 2013

MINISTRY OF FINANCE ACADEMY OF FINANCE

==============

Student: PHẠM DUY ĐẠI Class: CQ47/51.03

ENHANCING THE EFFECTIVENESS OF MANPOWER

ADMINISTRATION ACTIVITIES IN BANK FOR INVESTMENT AND

DEVELOPMENT OF VIET NAM-NORTH HANOI BRANCH

GRADUATION PAPER

FACULTY OF FOREIGN LANGUAGES

Supervisor: M.A Trần Thu Hoài

Hanoi, May 2012

ACKNOWLEDGEMENTS

I owe a debt of gratitude to those who has helped me complete this thesis First and foremost, I would like to express my thankfulness to Mrs Trần Thu Hoài

MA, my supervisor, who gave me benefit of her wisdom and her expert knowledge

in grammar as well as encouraged me generously from working out the research proposal to the writing up the thesis throughout this study

I take this opportunity to express my sincere thanks to all my teachers in Foreign Language Faculty at Academy of Finance for their useful lectures during

my bachelor course

In addition, my appreciation is also extended to the 3rd year students of Foreign Language Faculty at Academy of Finance for their kind support and warm encouragement I have received invaluable feedback from my participants, having a great influence on the study

Finally, my heartfelt thanks go to my family and my beloved friends for their love, understanding, encouragement, and support throughout the course of my study

ABSTRACT

Human resource plays an important role in the success of every economy In Viet Nam, human resource is the vital element that helps the national economy reaches the targets of industrialization and modernization Therefore, the aim of this study is to examine the human resources management activities and provide some proper recommendations to managers of the enterprise

During my internship in BIDV- North branch, I saw that the board of managers of the branch has put their effort on improving the working performance

of employees But there is still some weaknesses in the management process of human resources from the recruitment process to employees’ policies Thus, I have studied about this situation and made some recommendations on this paper

This paper is divided into three main sections The first section discusses the statement problem, the aim of the study, the scope of the study, the method of the study and this overview In the second section, background to the study, the study will be clarified Besides, there are some policies of the branch on human resources management In the third section, it gives a summary of advantages and disadvantages of the branch on managing human resources and some recommendation to improve it

LIST OF ABBREVIATIONS

ATS Applicants tracking system

BIDV Bank for Investment and Development of Viet Nam

HRP Human resource planning

LIST OF TABLES AND FIGURES

1 Figure 1: Organizational structure diagram of Northern Hanoi branch

2 Figure 2: Sources of Recruitment

3 Table 2.1: Table of capital mobilization of North Hanoi branch from 2005 to

7 Table 2.5: Table of labor structure by gender

8 Table 2.6: Table of labor structure by age

9 Table 2.7: Table of recruitment statistics

TABLE OF CONTENTS

ACKNOWLEDGEMENT i

ABSTRACT ii

ABBREVIATIONS iii

LIST OF TABLES, CHARTS, AND FIGURES iv

PART A: INTRODUCTION 9

1 RATIONALE OF THE STUDY 9

2 AIMS OF THE STUDY 9

3 METHOD OF THE STUDY 10

4 SCOPE OF THE STUDY 10

5 ORGANIZATION OF THE STUDY 11

6 SIGNIFICANCE 11

CHAPTER 1: LITERATURE REVIEW 12

1 General definition of manpower administration: 12

1.2 Roles of manpower administration: 13

1.3 Factors that influence the manpower administration activities 14

1.3.1.The external factors: 14

1.3.2.The internal factors: 14

1.3.2.1Staffs: 15

1.3.2.2Managers: 15

1.4 Manpower administration activities 15

1.4.1.Planning the human resources: 15

1.4.2 Ana lyzing and designing specific activities: 16

1.4.3.Recruitment: 17

1.4.4.Training: 21

1.4.4.1 Training needs assessment: 21

1.4.4.2 Training design: 22

1.4.4.3 Training implementation: 22

CHAPTER 2: CURRENT SITUATION OF HUMAN RESOURCES MANAGEMENT ACTIVITIES OF BIDV- NORTH HANOI BRANCH 25

2.1 An overview of BIDV- North Hanoi branch: 25

2.1.1 A brief overview of BIDV: 25

2.1.2 An overview of BIDV- North Hanoi branch: 26

2.1.2.1 History: 26

2.1.2.2 Organizational structure and main activities of the branch: 26

2.2 Human resources characteristics: 31

2.3 Human resources management policies: 33

2.3.1 Recruitment policies: 33

2.3.2 Training policies: 34

2.3.3 Welfare and incentive policies: 34

2.3.3.1 Salary and allowances: 34

2.3.3.2 Bonus: 35

2.3.3.3 Incentive and welfare: 35

2.3 Assessment on human resources management activities in North Hanoi branch: 35

2.3.1 Planning human resources: 36

2.3.2 Recruitment activities: 36

2.3.2.1 Effective recruitment: 36

2.3.2.2 Recruitment sources: 38

CHAPTER 3: RECOMMENDATIONS ON THE DEVELOPMENT OF BIDV- NORTH HANOI BRANCH 42

3.1 Advantages and disadvantages of branch’s business process: 42

3.1.1 Advantages: 42

3.1.2 Disadvantages: 43

3.2 Oriented Development of North Hanoi branch: 43

3.2.1 Development plan of capital raising sector: 43

3.2.2 Development plan of credit sector: 44

3.2.3 Development plan of service sector: 44

3.2.4 Development plan of human resources management sector: 45

3.3 Recommendation to improve human resources management activities: 45 3.3.1 Completing the recruitment process: 45

3.3.2 Completing the training process: Error! Bookmark not defined 3.3.3 Motivation: Error! Bookmark not defined 3.3.3.1 Creating a friendly work environment: Error! Bookmark not defined 3.3.3.2 Rewards: Error! Bookmark not defined 3.3.3.3 Developing great relationships in the workplace:Error! Bookmark not defined 3.3.3.4 Modernizing banking technology: Error! Bookmark not defined CONCLUSION 54

EFERENCES v

PART A: INTRODUCTION

1 RATIONALE OF THE STUDY

From the dawn of humans’ history, we-people always play a very important role in the production and business activities We are the main elements that make up the organization and determine the success or failure of the organization Thus, the manpower administration activities also become an indispensable part of any one company

Nowadays, as the competition in business is becoming more and more acute, every organization needs to further improve its management of human resources Since it can promote the contribution of employees to the company and improve the labor productivity Being the top-rated bank of Viet Nam in many years, BIDV obviously knows about this problem and have many significant activities like organizing training courses monthly and annually, building more infrastructure for learning and studying…

But there is the fact that the labor market of Viet Nam is being redundant This

becomes a big question for the leaders of BIDV that how they can manage their

workforce effectively on both the quantity and the quality

Carrying out my internship period in BIDV’s North Ha Noi branch, I have a change

to study the current situation of branch’s human resources management activities and find the solution to improve or overcome shortcomings that are founded I chose the study “Enhancing the effectiveness of manpower administration activities

in Bank for Invesment and Development of Viet Nam- North Ha Noi branch” with the aim of having an overview of branch manpower management activities, hence

be able to propose essential solutions to improve the quality of labor management activities at BIDV’s North Ha Noi branch

2 AIMS OF THE STUDY

The objectives of the Research are formulated as followed:

To gain a full view of manpower management situation of almost Viet Nam’s business organizations

To analyze the specific situation and shortcoming of human resources management activities of BIDV Ha Noi

To find out solutions to improve the human resources management activities

To draw out some recommendation to get a better management method and activities

3 METHOD OF THE STUDY

In order to perform this Research, I first choose the method of analyzing, summarizing and synthesizing materials and books to form the theoretical background Besides, I also use charts, tables and factual data for support From the collected information and data, I can assess and analyze the situation to draw conclusion and find out feasible solutions to improve the human resources management system of BIDV

4 SCOPE OF THE STUDY

This paper is intended, as the title suggests: “Drawing an overview of manpower management system, point out shortcomings and some short term as well as long term improvement in North Ha Noi branch of BIDV”, to touch upon some following issues:

 The background and characteristics of using manpower in BIDV

 The current situation of using manpower in the branch and shortcomings

 The practical recommendations to improve the manpower management system

5 ORGANIZATION OF THE STUDY

The study 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 crucial part of the thesis with three chapter:

Chapter 1: Basic theory of manpower administration and management

Chapter 2: Current situation of manpower administration activities in BIDV’s North Ha Noi branch

Chapter 3: Solution to improve the situation of the branch

The last part is the conclusion that summarizes the content of the thesis, gives a list

of source of reference information and reference books

6 SIGNIFICANCE

It is hoped that this study, to some extent, will be a useful reference material and inspiration for managers and administrators to build strategic plan in the near future

CHAPTER 1: LITERATURE REVIEW

1 General definition of manpower administration:

According to vietdictionary.com, manpower is the perceived need, on the part of

a member of large organization, to improve their competitive positions both nationally and internationally Today, the manpower plays a vital role in the organization’s strategic planning process This trend is increasing pressure from the global marketplace and from stockholders, both of which push for ever-higher levels of productivity and profitability This pressure is compounded by increased recruitment and benefit costs, an aging workforce, an increasing number of health and safety regulations, and an increasingly litigious society

Manpower administration is defined in cfvg.com as that part of management

concerned with: all the decisions, strategies, factors, principles, operations,

practices, functions, activities and methods related to the management of people as employees in any type of organization; all the dimensions related to people in their employment relationships and all the dynamics that flow from it Manpower administration is the effective management of people at work Manpower administration examines what can or should be done to make working people more productive and satisfied It is specifically charged with programs along with people, the employees Manpower administration is the function performed in organizational and individual goals Whether a manpower administration function

or department exists in a firm, every manager must be concerned with people Therefore it is a necessary function Effectively performed, it can make the difference between successful and unsuccessful organizations Manpower

administration activities are now tied to the bottom line, where it is considered a

“profit center” rather than a “cost center.”

1.2 Roles of manpower administration:

The manpower administration function was merely an inappreciable unit in many organizations until upper management recognized the critical role that people play

in meeting organizational objectives Today, the importance of recruiting, selecting, training, developing, rewarding, compensating, and motivating is recognized by managers in every unit and functional area of an organization Effective manpower administration adds value to the delivery of goods and services and to the quality of work life for employees, by helping to ensure continuous organizational success in transformative environments

Effective manpower administration helps stimulate the development of manpower The development of manpower refers to the development acquisition of knowledge, skills and behaviors that improve employees’ ability to meet changes in job requirements and internal or external customer demands The manpower development combines administration with the management of resources Integration is one of the key features of manpower administration The first role played by manpower administration is being a support system It can provide guidance and supervision for people management in the workplace The second role is that of human resource This means that it will include necessary tasks such

as training, development, recruitment, motivation, evaluation and planning The next role is strategic management, playing an important part within the corporate strategy Strategic manpower management is a key part of the decision making cycle

The role of human resource development within the new business environment as follow: The first is to integrate the aspects of the new business environment with the existing policies and strategies of the organization The second is human resource management must nurture and develop a company intellectual capital and

recruitment, retain, develop and manage the human assets for the company to have competitive advantages

1.3 Factors that influence the manpower administration activities

There are many factors that influence the manpower administration activities, both positively and negatively Apart from that, each manager knows that while building the human resources management policy, these factors are indispensable In theory, there are the internal and external factors

1.3.1 The external factors:

The first factor is the context of the economy Every manpower activity of every enterprise is influenced by the context of the economy When the economic is unstable, the managers not only have to remain the quality of the manpower qualified and well-trained but also reduce the labor costs by cut off the working hours, salary and rewards In contrast, when the economy grows up, it’s time for developing the human resource activities In conclusion, the contexts of the present economy influence directly the manpower administration and the enterprise must have the appropriate human resource policies

The second factor is the population Viet Nam is a young and populous country with a large labor market If the labor quality is high, the enterprises can save their training expenses and enhance the effectiveness of their manpower administration activities But when the human resource is not enough, it will make the recruitment process becomes more difficult and lower the effectiveness of the human resource management activities

The next factor is technology The development of technology has a strong impact

on the management of manpower When technology changes, it requires less labors but more effective Therefore, enterprises should adjust their human resources management policy to fit the new requirement

The last factor is the opponents There always have opponents in business In this competitive environment, enterprises themselves must continuously enhance and

complete their human resource policy likes a satisfactory salary level, righteous reward and motivation

1.3.2 The internal factors:

1.4 Manpower administration activities

1.4.1 Planning the human resources:

We can understand that planning the human resources is the ongoing process of systematic planning to achieve the maximum use of human resources The objective of HRP is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses There are three elements of the HRP process including forecasting labor demand, analyzing present labor supply and balancing projected labor demand and supply

Stage 1: Forecasting labor demand

There are several ways to forecast your business needs, in order to predict how many employees you need to run your business and which roles these employees need to fill Some of the factors to consider include the situation of the economy, the internal business finances, the demand for your products or services, and the growth expectations for your business Enterprises should consider their existing staff and see which current employees are likely to transition into new positions and estimate the turnover rate of employees for your business

Stage 2: Analyzing present labor supply

Evaluating the supply of employees consists of a two-prong process: evaluating

internal staff (which will occur as you are forecasting your staffing needs) as well

as external staff Externally, you need to evaluate the demographics of the workforce that is available This include factors such as education, mobility, the unemployment rate, state and federal government laws, regulations that can affect your industry, your business, existing and potential employees Evaluating all of these factors helps you determine if you have access to the number and types of employees you need to fill your staffing forecasts

Stage 3: Balancing projected labor demand and supply

The final element of the human resources planning model is to determine how you are going to balance the demand you have for employees with the supply of employees available If you have a shortage of employees, this will determine what type of recruiting efforts your business will participate in to attract the employees it needs to fill needs within the company You are also required to balance you full-time and part-time needs If you have a surplus of employees, this requires you to consider employee layoffs, retirements and situations where employees may need

to be demoted or moved into a lateral position (rather than receiving a promotion)

1.4.2 Analyzing and designing specific activities:

To produce their given product or service, companies require a number of tasks to

be performed The tasks are grouped in various combinations to form jobs Ideally, the tasks should be grouped in ways that help the organization to operate efficiently and obtain people with the right qualification to do the jobs well This function involves the activities of job analysis and job design Job analysis is the process of

getting detailed information about jobs Job design is the process of defining the

way work will be performed and the tasks that a given job requires

So, the importance of job analysis and job design in a company varies in five ideas The first is analyzing the resources and establishing the strategies to accomplish the business goals and strategic objectives The second is effectively developed;

employee job descriptions are communication tools that are significant in an

organization’s success The next idea is being used in training to identify or develop, training content, and assessment tests to measure effectiveness of training, equipment to be used in delivering the training and methods of training Last but not least, job analysis and job design can be used in performance review to identify

or develop goals and objectives, performance standards, evaluation criteria, length

of probationary periods, and duties to be evaluated The last is being used in selection procedures to identify or develop job duties that should be included in advertisements of vacant positions

As usual, job analysis and design contain three elements: Planning the job analysis, gathering information and using that information

1.4.3 Recruitment:

Recruitment is the process whereby a firm attracts or finds capable individuals

to apply for employment Of course, the objective is to find these applicants at the lowest possible cost

This process begins when new recruits are sought, and ends when applicants have submitted application forms or resumes The result is a pool of job-seekers from which the firm can then the select the most qualified

Smart companies recruit employees they can retain, and retention depends on getting the right people in the right job in the first place So, while getting a large pool applicants is important, getting the right type of applicant is even more important

In order to increase efficiency in hiring and retention and to ensure consistency and compliance in the recruitment and selection process, it is recommended the following steps:

Step 1: Identify vacancy and evaluate need

Recruitments provide opportunities to departments such as aligning staff skill sets

to initiatives and goals and planning for departmental and individual growth Although there is work involved in the hiring process, proper planning and evaluating of the need will lead to hiring the right person for the role and team

Step 2: Develop position description

A position description is also referred to as a job description is the core of a successful recruitment process From the job description, interview questions, interview evaluations and reference checks questions are developed

Prior to developing the job description, the hiring manager should identify the following: General information, position purpose, essential function, minimum

requirements, and preferred qualifications

Step 3: Develop recruitment plan

Each position requires a documented Recruitment Plan which is approved by the organizational unit A carefully structured recruitment plan maps out the strategy for attracting and hiring the best qualified candidate and helps to ensure an applicant pool which includes women and underrepresented groups including veterans and individuals with disabilities

In addition to the position’s placement goals, the plan contains advertising channels

to be used to achieve those goals The recruitment plan is typically developed by the hiring manager in conjunction with the Departmental HR Coordinator

To ensure the most current placement goals which are identified for the department and unit, you may contact the office of Faculty and Staff Affirmative Action Recruitment Plan Elements are: posting period, placement goals, additional advertising resources, diversity agencies, and resume banks

Step 4: Select search committee

To ensure applicants selected for interview and final consideration are evaluated by more than one individual to minimize the potential for personal bias, a selection committee is formed The hiring manager will identify members who will have direct and indirect interaction with the applicant in the course of their job Each hiring manager should make an effort to appoint a search committee that represents

a diverse cross section of the staff

Step 5: Post position and implement recruit plan

Once the position description has been completed, the position can then be posted

to the UCR career site via the ATS Every effort should be made to ensure the accuracy of the job description and posting text It is not advisable and in some instances, not possible to change elements of a posted position The reason for this has to do with the impact a given change may have on the applicant pool

To post the position:

The requisition is created by the Service Center Human Resources Coordinator or Departmental Human Resources Coordinator and approved by the Service Center

HR Organizational Coordinator or Organizational HR Coordinator Once approved, the Departmental HR Coordinator or Service Center will review the requisition and route online to the HR Classification Analyst who will assign the classification The requisition is then routed to the HR Recruitment Analyst who will post the position Applications can be reviewed once the minimum number of posting days has been reached Internal candidates will apply through the regular application process and will be included in the candidate pool along with external candidates

Step 6: Review applicants and develop short list

All applicants must be reviewed and considered Applicants are those who apply

during the initial application period as described in Step 5 Candidates who apply

after the initial application period will be considered “expressions of interest” and not viewable by the search committee

It is recommended that all search committee members review all Applicants to ensure more than one person assesses their qualifications and that individual opinion or biases are avoided Each committee member may give comments to each Applicant’s qualifications as they relate to the minimum requirements of the position

Upon the search committee’s review of each Applicant, the Chair or Chair’s Associate will review all search committee comments and develop the short list Once the short list has been determined, the AACO will request an Affirmative Action Applicant Pool Statistics analysis from the OFSAA If the short list is deemed to represent a sufficiently diverse applicant pool, the short list will be approved Once approved, the applicants can then be contacted for interviews

Step 7: Conduct interview

The interview is the single most important step in the selection process It is the opportunity for the employer and prospective employee to learn more about each other and validate information provided by both By following these interviewing guidelines, you will ensure you have conducted a thorough interview process and have all necessary data to properly evaluate skills and abilities

Step 8: Select hire

Final Applicant:

Once the interviews have been completed, the committee will meet to discuss the interviewees Committee members will need to assess the extent to which each one met their selection criteria

The search committee rating sheet will be helpful in justifying decisions and making them as objective as possible

As one of the most critical steps in the process, it is important to keep the following in mind:The best candidate for the position was chosen based on

qualifications and the candidate will help to carry out the University and Department’s missions

Reference Checks:

Reference checks should be conducted on the final applicant prior to making an offer While it is advisable to conduct a reference with the candidate’s current supervisor before a candidate starts employment, if the candidate is reluctant a conditional offer of employment can be made

Step 9: Finalize recruitment

Upon completion of the recruitment process the offer to the selected finalist is made The salary to be offered is to be equitable and lead to the retention and motivation of employees

Prior to initiating the offer, it is recommended that one more check of the selection process be completed as follows: first is to review the duties and responsibilities of the position Second is to review selection criteria used to ensure they were based

on the qualifications listed for the position Next is confirming interview questions clearly matched the selection criteria And last is confirming all applicants were treated uniformly in the recruitment, screening, interviewing and final selection process

1.4.4 Training:

The process of HR training and development consists of the following steps:

Training needs assessment

Training needs assessment analyzes the organization’ needs; the knowledge, skill, and ability needed to perform the job; and the person’ needs The organization needs assessment requires an examination of the long or short term objectives of the firm Training needs assessment shall be conducted for all staff as a part of the annual performance development review New staff may need to have their training needs assessed more regularly Wherever possible, staff will be offered training relevant to their positions Training is an opportunity not a right and therefore it is not possible to offer staff training in skills which are not directly linked to these positions

1.4.4.2 Training design:

Training design is a process that requires a blend of instructional learning principles and media selection After assessing training needs, it is necessary to design courses for training such as setting up training objectives, methods, materials and contents All training facilities are essential for any training course and need to be prepared carefully Human resource department cannot carry out this step It can save cost for the organization but does not meet staff expectation on training effectiveness

1.4.4.3 Training implementation:

Location, time and other logistic arrangement for training are informed to staff timely The teachers prepare not only training contents/ materials but also other related knowledge/ suitable methods/ skills The subjects of training also are identified suitable for the content of training Training conduction is carried out right after every preparation steps are ready

Job evaluation:

A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization It tries to make a systematic comparison

between jobs to assess their relative worth for the purpose of establishing a rational pay structure

The process of job evaluation involves the following steps:

Gaining acceptance: Before undertaking job evaluation, top management must explain the aims) and uses of the programme to the employees and unions To elaborate the programme further, oral presentations could be made Letters, booklets could be used to classify all relevant aspects of the job evaluation programme

Creating job evaluation committee: It is not possible for a single person to evaluate all the key jobs in an organisation Usually a job evaluation committee consisting

of experienced employees, union representatives and HR experts is created to set the ball rolling

Finding the jobs to be evaluated: Every job need not be evaluated This may be too taxing and costly Certain key jobs in each department may be identified While picking up the jobs, care must be taken to ensure that they represent the type of work performed in that department

Analysing and preparing job description: This requires the preparation of a job description and also an analysis of job needs for successful performance

Selecting the method of evaluation: The most important method of evaluating the jobs must be identified now, keeping the job factors as well as organisational demands in mind

Classifying jobs: The relative worth of various jobs in an organisation may be found out after arranging jobs in order of importance using criteria such as skill requirements, experience needed, under which conditions job is performed, type of responsibilities to be shouldered, degree of supervision needed, the amount

of stress caused by the job, etc Weights can be assigned to each such factor

Treatment:

Treatment stimulates staffs to perform better, harder and more satisfied There are two kinds of treatment:

Physical treatment:

Salary: From a business point of view, salary can be deemed as the cost of acquiring human resources for running operations and is then termed personnel expense or salary expense

Bonus payment: A bonus payment is usually made to employees in addition to their

base salary as part of their wages

Mental treatment:

Arrange appropriate position for each staff

Take care of staffs’ families

Remove distance between superior and inferior

CHAPTER 2: CURRENT SITUATION OF HUMAN RESOURCES MANAGEMENT ACTIVITIES OF BIDV- NORTH HANOI BRANCH

2.1 An overview of BIDV- North Hanoi branch:

2.1.1 A brief overview of BIDV:

BIDV is the oldest Commercial Bankin Vietnam History of construction and development of BIDV is a difficult and trial but very proud path associating with historic period against invaders and country construction of Vietnam people

Founded on 26 th April 1957 under the name Bank for Construction of Vietnam From 1981 to 1989: Under the name Bank for Investment and Construction of

Vietnam

From 1990 to 27/04/2012: Under the name Bank for Investment and

Development of Vietnam (BIDV)

From 27/04/2012 to now: Under the name Joint Stock Commercial Bank for

Investment and Development of Vietnam (BIDV)

Along with country development, Joint Stock Commercial Bank for Investment and Development of Vietnam contributed to postwar economic rehabilitation and implementation of the first five-year plan (1957-1965) Vietnam must carry out two strategic duties for building socialism They are to be against sabotage of America toward the North and to reinforce the South for national unity (1965-1975),

construction and development of national economy (1975-1989) and implementation of the reform in banking activity serving country’s modernization (1990-now) In any circumstances, BIDV personnel always accomplish their mission- to be a solider of the Party on monetary financial front and investment and development of country…

Acknowledge the contribution of BIDV through the periods, the Party and the Socialist Republic of Vietnam have given to BIDV a lot of noble titles and rewards including First-Rate Independence Medal and Third-Rate Independence Medal; First-Rate, Third- Rate Labor Medal, recognize as hero of Labor in renovation period, Ho Chi Minh Medal, etc

2.1.2 An overview of BIDV- North Hanoi branch:

to build a development plan for north branch On November 10th, 2002, with the decision 80/QĐ-HĐQT, the North Ha Noi branch was officially renamed into Bank

for Investment and Development of Vietnam, Northern Hanoi Branch with the

headquarter was set at 137A, Nguyen Van Cu Street, Long Bien district, Hanoi city

2.1.2.2 Organizational structure and main activities of the branch:

2.1.2.2.1 Organizational structure:

After changing into model T92, the North branch has a board of directors and five groups In detail, we have: board of directors (1 Director and 2 Deputy Directors),

customer relationship group, customer relationship Department 1, 2, 3 and Project financing Department, risk management group: Risk Management Department, operational group( Credit Management Department, Personal customers service Department, Business customers service Department, Fund service management Department, International payments Department), Internal management group (Financial accounting Department, Administrative organization

Department, General Plan Department, Computing Department), central group: 3 trading rooms( Long Bien trading room, Bo De trading room, Ngoc Thuy trading room)

2.1.2.2.2 Business activities:

 Raising capital activities:

Table 2.1: Table of capital mobilization of North Hanoi branch from 2005 to 2008

360 1,140 1,500

690

810 1,500

840

660 1,500

410 1,690 2,100 1,155

945 2,100 1,281

819 2,100

510 1,990 2,500 1,375 1,125 2,500 1,525

975 2,500

2,950 2,950

635 2,315 2,950 1,667 1,283 2,950 1,859 1,092 2,950

500

30

15

90 1,042

1, 273

(Source: General Plan Department)

In general, from 2005 to 2008, total assets, total mobilized capital and deposits of branch doubled Total assets in 2005 were only VND 2,180 billion and were VND 5,930 billion three years later, in 2008 Credit balance of branch increased from VND 2,000 billion to VND 5,800 billion And the total capital was raised about