CHAPTER 3: THE CURRENT STATUS OF SACOMBANK FROM 2007 TO
3.7. Strategic orientation for 2011-2020 periods
3.7.1. Strengthening internal resources – developing sustainably 2011 was a transitional year for the launch of the Sacombank Development Strategies for the period of 2011-2015, with a vision up to 2020 approved by the 2012 General Meeting of Shareholders, with the vision of becoming the ―Top Retail Bank in the Region.‖ Having experienced financial crises in the region (1997) and the world (2008-2010), Sacombank has a thorough understanding of the many challenges that the finance and banking sector may face as the economy changes.
Accordingly, in its development strategies for each period, Sacombank always sets out appropriate Objectives and Solutions and a Roadmap, which are in line with the development orientation of the Government and the banking sector, and prepares back-up plans in response to changes in the business environment. The focal point of the development strategies for the new period of 2011-2020 is: ―Strengthening internal forces for developing sustainably.‖
3.7.2. Stabilizing and strengthening to create a firm foundation
Vietnam is becoming ever more integrated into the world economy and will be influenced by the general changes in the global economy. The Vietnamese
54 Government has been introducing market-oriented economic reforms, gradually eliminating protection for industries, especially in the finance and banking sector, in order for the economy to genuinely operate according to market rules. This will create significant challenges for Vietnamese commercial banks that find themselves in competition with large global financial institutions that enter the domestic market. To Sacombank, such challenges are regarded as opportunities for development: competition will create the motivation for Sacombank in particular and commercial banks in general to constantly improve their business model and management framework, improve service quality and employee productivity, and remain constantly innovative and creative to satisfy the needs of customers, hence contributing to the development of the financial and monetary market of the country.
According to many domestic and foreign experts, Sacombank is among the few banks that have shown strong and impressive growth in line with the development trends of the country in the era of economic integration. In the late 20th century, the name Saigon Thuong Tin or Sacombank was virtually unknown in the financial market of Vietnam. However, only just over a decade later, Sacombank has become the Bank of the Indochina Region with a network covering almost two thirds of the country, from Ca Mau to the Northeastern mountainous region, along with its entry into the financial markets of Laos and Cambodia over three years ago. The story is not only about Sacombank‘s large network, with 408 Transaction Offices today, but also its impressive growth, showing the financial strength of a dynamic, private bank which is brave in thought and actions: its initial charter capital of VND 3 billion has grown to VND 10,740 billion today. All of this shows that, for the past 20 years, Sacombank has chosen the right development direction for it and has a good, up-to-date vision.
Those enterprises which have good business strategies and long-term vision and are able to set their position and business plans in line with the circumstances of the macro economy, after the stages of incorporation, emergence and strong development, will be able to overcome saturation and depress to approach a strengthening (maintaining stability) and sustainable development period.
Sacombank‘s past and present experience shows that 2011-2012 will be a
―strengthening‖ period for the Bank with proactive adjustment of business expansion plans, focusing on maintaining all stable activities and/or proper growth in accordance with the growth rate of the banking industry and in harmony with the benefits of shareholders and customers and ensuring the livelihoods and jobs of the
55 nearly 10,000 employees of the Bank. The Bank will then launch business strategies that have proved to be strong in order to maintain its position as the Top Commercial Bank in Vietnam, or even the Top Commercial Bank in the Region.
3.7.3. Prioritising Strategic Solutions in line with market moves
Human resources development strategies:
Sacombank currently has almost 10,000 employees based in 47 provinces and cities across Vietnam as well as in Laos and Cambodia. Sacombank always considers human resources development to be one of the core values and the human resources as the most precious resources of the Bank. Therefore, the human resources strategies of the Bank for the 2011-2020 periods were developed with a view to strengthening the quality of the existing workforce and attracting potential talent with professional and selective recruitment policies, fundamental training based on job position/title, and proper assignment of jobs and segregation of responsibilities based on capabilities and professional skills. At the same time, the Bank‘s human resources management policies in this period also target the building of a core leadership team to carry out the mission of inspiring zeal and enthusiasm in employees and stimulating solidarity and dedication in each individual in order to create the strength for the Bank to develop sustainably. Hence, human resources will give the Bank a competitive edge in the new era of development: an era of intellectuality and creativity.
Technology strategies
Technology strategies continue to be one of the four most important groups of strategies of Sacombank in this period. After investing in the advanced core banking platform in the previous period, from 2011, the Bank continued to upgrade its banking technology system to the most modern version in order to (1) improve the productivity of operational employees and diversify and modernize products and services like international banks; (2) improve the competitiveness and corporate governance capabilities of the Bank.
Financial strategies
Financial strategies of Sacombank in the 2011-2020 periods will serve as a firm platform for all activities of business development, network promotion, service quality improvement and productivity improvement, etc., to help the Bank deserve the title of ―the Bank of the Indochina Region.‖ Accordingly, the Bank will restructure its Liability Asset portfolio properly to boost profit growth; increase Total Assets and raised funds by looking for long-term capital resources at
56 reasonable costs through issuance of bills of exchange and bonds in both domestic and overseas markets; improve the efficiency of use of capital resources through concentrating capital resources on core businesses, and use expenses reasonably and allocate resources properly for high-performance business activities.
Network strategies
Network strategies are implemented with the aim of achieving the objectives of having 600 Transaction Offices covering the whole territory of Vietnam, as well as important provinces and cities of the two neighboring countries of Laos and Cambodia by 2020, and of having Branches or Representative Offices of Sacombank set up in Malaysia, Singapore, the United States of America, Australia, Europe and some other countries in the ASEAN Region. Accordingly, Sacombank‘s solutions will focus on strengthening the existing network and expanding the reach of Transaction Offices to other geographical areas to increase business activities, improve competitive edge and gain market share and expand market coverage
―The risk of all risks is the human factor‖; ―Technology is the result of intellectuality and creativity‖; ―Financial strength is a firm foundation for all growths‖; ―the Network is an effective tool for expanding markets and increasing market share‖, etc. These are the core solutions in the order of priority, to which Sacombank will pay special attention in the period of 2011-2020. On the basis of strengthening the aforementioned key groups of Strategies, the Strategies for Business – Product and Service Development – Corporate Governance, etc. have also been studied and developed by Sacombank with groups of solutions and action plans interlaced and accordant with the trends of the new era. Accordingly, specific business models, multiutility, modern and geographically specific products and services, as well as risk management policies according to international standards, have also been studied, invested in and launched across Sacombank‘s entire system in this period.
Based on the results achieved, the identified shortcomings that need to be addressed and the lessons drawn from previous periods, and on research and analysis of strengths, weaknesses, opportunities and threats in the context of the general difficulties in respect of the economy and modest internal forces of the Bank, Sacombank is very confident in its ability to achieve the objectives set out for the period of 2011-2020 in order to carry out its mission: ―Serving the nations.‖
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