INTERNSHIP REPORT/VO THI KIM NGAN
Dedication
I dedicate all my efforts and struggles of the educational life of my dear parents who
help support and guide the course of my educational life, without them I’m meaningless.
Also I devote the work of this internship report on Agribank report, as respectable and
honorable teachers who teach and support me develop my personality as a competent
professional. My all internship work is dedicated to following employees of
Agribank. They are too much supportive and teach me how to learn a practical life. They
always give me different tasks which bring more knowledge to me and guide me how to
accomplish these tasks.
Acknowledgment
To finish this report, I am deeply grateful to all those who have shared ideas,
valuable comments and encouragement during my writing of this paper.
First of all, I would like to express the deep sense of gratitude to my supervisor, Ms.
Nguyen Hong Mai for her useful guidance, critical comments and valuable suggestions
on this report. Without her help, this report could not have been completed.
Besides, my sincere thanks are also given to the Faculty of English for Banking and
Finance, Banking Academy for the devoted teaching of all the lecturers and for giving me
the knowledge and studying methods. Their teaching not only helps me gain valuable
knowledge and skills during 4 years but also lays the foundation for my future work.
Next, I would like to express my special thanks to the staff at the Agribank fifth
transaction department of Cau Giay Branch for their big support so that I could finish my
internship there and finish the paper successfully.
Last but not least, I wish to extend my thanks to my family and frinds for their
support, contribution and encouragement in the making of this report.
However, owing to my lack of experience and knowledge as well as the limited scope of
the research, some shortcomings and mistakes are unavoidable. Please kindly take into
account.
Executive Summary
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INTERNSHIP REPORT/VO THI KIM NGAN
Methodology
1. Desk research: the study is based on figures and information from AFTD of Cau Giay
branch’s internal data and theory mainly from David Cox (1997), Modern Banking
Operations
2. Other secondary data: information of Agribank, AFTD, Vietnam’s economy and
policies, etc were collected from the TV, internet, newspaper, magazines …
3. Primary data: Interviews to executive managers at the department of Credit Activities
in AFTD, as well as staff who directly involves in consumer loans operations.
Hanoi, April 29
th
, 2014
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TABLE OF CONTENTS
TABLE OF CONTENTS 4
List of tables 5
List of figures 6
Part 1: Introduction about Agribank 7
1.1.Overview of Agribank 7
1.1.1.Brief history 7
1.1.2.Nature of the organization 8
1.1.3.Business volume 10
1.1.4. Main products and services 10
1.1.5. Competitors 11
1.2. Organizational structure 12
1.2.1. Organizational chart 12
1.2.2. Number of employees 13
1.2.3. Main offices 14
1.2.4. Introduction of all departments 14

my major is English – Finance and banking. Following is the general introduction of my
internship milieu.
1.1. Overview of Agribank
1.1.1. Brief history
AGRIBANK (Vietnam Bank for Agriculture and Rural Development) has become
one of the leading commercial banks playing a major role in making investment in
agricultural economic development in rural areas, together with other sectors of Vietnam
economy.
• Full Name: Bank of Agriculture and Rural Development Vietnam
• International transaction name: Vietnam Bank for Agriculture and Rural
Development
• Abbreviated name : AGRIBANK
• Headquartered at: 18, Tran Huu Duc, My Dinh, Tu Liem, Hanoi.
• Website: www.agribank.com.vn
• Email:
Agribank's milestones in development:
1988: Established under the name of Agricultural development Bank of Viet Nam by
decree No. 53/HDBT dated 26 March, 1988 of the Council of Ministers (now the
Government).
1990: Changed name to Vietnam Bank for Agriculture (VBA)
1991: Established the representative office of Vietnam bank for Agricultural in Ho Chi
Minh City.
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1992: established VBA provincial branches.
1994: Approved new innovative management system model of the Agribank and began
to be organized into a State-owned Corporation.
1996: Changed name to Vietnam Bank for Agriculture and Rural Development
(AGRIBANK)
2001-2010: Implemented the plan of bank restructuring.

Agriculture had two levels: Advisory level and Operational level. This was truly a turning
point in the organizational structure of VBA and set the foundation for business
operations of the existing Vietnam Bank for Agriculture and Rural Development.
On March 7
th
, 1994 pursuant to the Decree No 90/TTg of the Prime Minister, VBA
began to be organized into a State-owned Corporation with the organizational structure
consisting the Board of Directors, General Director, assisting apparatus including
apparatus for internal control, subsidiaries including dependent accounting business units,
independent accounting business units, and executive and non-executive functions were
clearly separated, in which Chairman of Board of Directors and General Director were
two separate roles.
On 15 November, 1996, under the new name, Agribank is allowed to carry out
commercial banking activities but with a focus on investment for agricultural sector and
rural areas by providing medium and long-term loans for infrastructure development,
particularly agriculture, fishery, forestry, contributing to the cause of industrialization and
modernization of agriculture and rural development. In 2002, Agribank expanded
operation at home market as well as strengthened international relations.
In the context of the world economy and Vietnam in particular facing many difficulties in
the economic crisis, Agribank remains sustainable development and growth. Agribank
had the total assets of VND 617,859 billion (approximately 20% GDP), rose by 10%
compared with 2011. As the biggest commercial bank in Vietnam in terms of fund
resources, assets, and the bad debts are controlled.
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1.1.3. Business volume
2013 (VND billion)
Total asset 560,000
Total fund resource 513,000
Equity 29,605

VnMart services, internet banking; Apaybill
- Insurance: Security credit insurance; Insurance for international cardholders,
cargo insurance, fire insurance; insurance of automobiles, motorcycle, human; other
kinds of insurance.
- Other services: provide account information; automatic salaries paying and
receiving service; safe leasing services; consulting services and other services
1.1.5. Competitors
There are many banks in section:
- BIDV
- ACB
- Vietcombank
- Vietinbank
- Sacombank
AGRIBANK BIDV ACB Vietcomban
k
Vietinbank Saccombank
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Equity 29.605 24.390 12.262 42,386 54.075 16.703
Total
Assets
671.846 550.000 167.000 467.761 576.368 160.169
Table 2: Equity and total assets of Agribank in comparison with the competitors
1.2. Organizational structure
1.2.1. Organizational chart
With a long history of development, Agribank affirms its prestige day after day
through a diversity of areas: Wholesale banking, retail Banking & network, Treasury,
Risk management, finance and Accounting, Operations and Business Supports. For
more logical and clearer view on Agribank’s organization structure, please take a look
at Figure 1 :

plans; advising legislation about contract commitment, contentious business, civilian,
criminal, financial dispute, etc; manage stamp directly; complementing administrative
work, stationary, transport, security, medical; conducting payment and insurance regime,
managing and completing employee profiles.
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Credit Department – directly managing capital balance; acting as an counselor for
the Director about resolution of capital development, short-term, medium-term and long
term business plan; taking responsibility for risk management; recapitulating, monitoring
business goals, analyzing quarterly and yearly business activities.
Interior supervising Department – making plan in compliance with inspection;
partially summing up and totalizing subjects to report the result timely; a rational clue
with examinant and inspector.
International payment department – conducting global business activities,
international payment; international payment via SWIFT; credit, foreign currency
undertaking in relation to international payment, remittance, transferring money, opening
foreign-based account services.
Service and Marketing Department – transacting with customers, marketing
products, receiving clients’ feedback about the services; proposing, taking part in service
improvement strategy; complementing marketing strategy, information propaganda,
building up brand launching plan.
1.2.5. Comments on the organizational structure of Agribank
Agribank has totally more than 2300 branches and 9 subsidiaries. It can be said
that, with the number of branches and subsidiaries, Agribank needs a very complicated
organizational chart to describe accurately the operational structure. However, the
organizational chart that I was given is not such comples. Clearly, it modifies generally
the system but in my opinion it is too simple and not infomative enough.
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Part 2: Description of the internship

Simultaneously, he is in charge of accounting, monetary in the store and managing ATM.
- The function of Credit department:
 Takes responsibility for credit operations, transact with customers who are person, co-
operative or firm to market, finance, take care of their clients as well as consult
services, products of the bank.
 Manage credit products, introduce and sell products in accordant with regime of state
bank of Viet Nam and instruction of Agribank Viet Nam.
 Assess , determine, manage credit line of customers, conduct credit operation and
one-way transaction
 Update customer’s information, analyze business activities, financial ability, cash
flow into IPCAS II System
 Conduct internal credit rating to quarterly and yearly loans of clients.
- The function of Accounting Department
 Offer banking services relating to settlement, post into account one-way transactions
 Open or close accounts, implement check selling, open ATM card, deposit or
withdraw saving money, trading foreign exchange, etc.
 Manage and take responsibility for transactions on computer, cash on hand; maintain
e-settlement systems of the transaction office during its operation.
 Check closing entries of all tellers.
2.2. Internship activities
2.2.1. Training phase
Table 1 : Training timetable
Time Task
25/02 – 06/03
Outlining the internship, understanding the background
theory in lending activities.
06/03 – 20/3 Carefully observing activities of lending.
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20/03 – 28/04 Practicing to issue the models of customers.

on only loans for repairing houses or car loans without paying much attention to loans
for studying abroad and other loans (such as certificates of deposits and credit cards)
• The regulations on interest rate and secured assets are still rigid. The bank only
applied a fixed interest rate for all customers, regardless of new or old customers. It
has not been encouraging customers who wish to have a long relationship with the
bank. Moreover, the bank usually requires secured assets of great value. It interfered
with the access to capital of the bank. Customers are namely those who have
relationships with employees in the bank. The bank does no actively seek for potential
customers.
• The repayment period is generally shorter, which leads to a competitive disadvantage
for Agribank because customers cannot afford to repay.
• The market interest rate constantly fluctuates, thus consumers will be disadvantaged if
they do not predict the degree of variation in interest rates.
OPPORTUNITIES
- There are many enterprises operating in the area.
- The branch is located in the district center- favorable geographical location to
conduct banking activities. About the fields of operations: within the legal scope
allowing AGRIBANK AFTD – Cau Giay branch to perform and regulation of
AGRIBANK.
- The branch has a trust and reputation of many company and local people, which
creates chances to enhance the lending demand and profitability.
THREATS
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- There are many other transaction office in the same sector so the branch have to
face stiff competitions.
- The tight monetary policy of the State to curb inflation causes the difficulty for
customers in accessing the bank capital.
- Staff moves to other private banks because they have better working conditions.
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basis for AFTD to find out appropriate strategies to build up personal credit activities in
the future.
3.1.2. Developing a proper and attractive strategies for consumer loans to customers
For the easy access of customers to the bank's capital, the most convenient and also
ensuring the benefits and efficiency of business, this branch should have right and
attractive strategies to customers such as:
• Implementing flexible price policy: In order to develop lending activities, banks
must raise capital corresponding to the demand but still within the range allowed by the
State Bank. Therefore, the interest rates are high or low depends largely on the interest
rates of banks. From the above fact, Agribank needs to develop appropriate pricing
policies for both mobilization and loans to ensure profits for bank and the customer
benefits.
• Controlling lending interest rates: using flexible rate corresponding to the
quality of service (because the customers of TCB are individuals who have high income).
This means that depending on the object to the loan and depending on the period that
AFTD can adjust interest rates fluctuating within the range allowed not only to cover the
cost, but also to bring profit to the bank.
• Improving the consumer loans products of bank
Product list of banks is quite similar because the bank's product is easy to
assimilate. So, it should find a new direction by providing superior products, which
would be an advantage to any bank. Most banks are interested in direct rather than
indirectly consumer loans activities because this method is safe and has greater
proportion. This is not entirely accurate because consumer lending income is from
operations includes income from directly and indirectly consumer loans.
3.1.3. Developing marketing strategies
Bank marketing took place quite late in Vietnam, and the effect of bank
marketing applications are somehow limited, mainly concentrating on the surface such as
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advertising, promotion while, other major determinant activities in marketing strategy

INTERNSHIP REPORT/VO THI KIM NGAN
procedures entirely manually. AFTD should use the automatic credit scoring system for
the decision on making loans to customers.
3.1.5. Improving the quantity as well as the quality of the human resources
Firstly, they have capability of predicting the economic issues, as well as the
development prospects of credit operations .This is the personal vision but it does affect
the overall operation of the bank. From personal experience has been the accurate
prediction, it is the creation of credit officers.
Secondly, they also should have the prestige in social relations. This represents
moral qualities and communication skill of credit officers. It plays an important role in
the expansion and retains the traditional customers of the branch. In addition, credit
officers should have self-study capability as well as work independently. These are
necessary qualities for the job of a credit officer.
Last but not least, when performing compliance professional, credit staff should
avoid moral hazard and occupation. This is also an important quality required for each
staff, as it not only affects the prestige of credit staff, but also the image and reputation of
the bank.
Therefore, the branch should regularly organize training courses to improve
professional expertise through conference, the short and long-term overseas courses.
Besides, AFTD should regularly inspect, test the proficiency of young staff to have
training plans, training for immediate needs and long-term plan for the next junior
generation.
To attract good staff and improve their effectiveness, AFTD should have a certain
treatment regime for them, such as salaries, bonuses, training courses. This will create the
strong motivation for staff, helping them develop their best capacity and creativity at
work.
3.1.6. Submitting proposals to the upper management system
To expand and develop business activities at AFTD, raising the contribution to the
total revenue requires the efforts of AFTD and the upper system, specifically Agribank
and SBV. The bank and SBV will give directions and preferences so that AFTD can