LUẬN VĂN THẠC SĨ
Xây dựng chiến lược kinh doanh bán lẻ tại ngân hàng TMCP VIB
THESIS TITLE

BUILDING UP A RETAIL BANKING BUSINESS STRATEGY
IN PERIOD OF 2015-2020 FOR VIETNAM INTERNATIONAL
COMMERCIAL JOINT STOCK BANK (VIB)

1


TABLE OF CONTENTS
Acknowledgements …………………………………………………………………
i
Table of Contents ……………………………………………………………………
ii
List of Tables ………………………………………………………………………..
iii
List of Figures & Graphs ……………………………………………………………
iv
PREFACES
………………………………………………………………………….1
Chapter

1

–

Literature

review

of

corporate

mission

and

objectives

……………….11
1.2.1.1Mission
……………………………………………….11
1.2.1.2

Vision
………………………………………………..11

1.2.1.3 The business objectives ……………………………..
11
1.2.2 The external environment analysis and evaluation …………..
12
1.2.3 The internal environment analysis ……………………………
12
1.2.4 Selection of business strategy ………………………………...
13
1.2.5 Strategy implementation ………………………………………
15
Chapter 2 – Analyzing the current retail banking services in Vietnam
International Joint Stock Bank (VIB) …………………………….

on

the

Vietnam

retail

banking

market

…………………...35
2.3 Opportunities and Threats for Vietnam retail banking operation ……………..
39
2.3.1 Opportunities of the retail banking operation ……………………...
39

4


2.3.2 Threats of the industry ……………………………………………
42
2.4 Internal analysis of Vietnam International Bank (VIB) ……………………...
43
2.4.1 Structure organization, products and operations of VIB …………...
43
2.4.1.1 Structure organization …………………………………....
43
2.4.1.2 VIB’s products and services ……………………………..

bank

system

…………………………………………………. …52
2.4.3.2 Regarding trademark image ………………………….
….53
2.4.3.3

Regarding

the

financial

scale

……………………………..54
2.4.3.4 Regarding business performance …………………………
54
2.4.3.5 Regarding operation management ………………………..
55
2.4.3.6

Regarding

organization

structure


3.2.2.2 The strategy orientation and operation methods ……….. 64
3.3 Strategy implementation solutions ……………………………………….. 65
3.3.1 Customer orientation …………………………………………… 65
3.3.1.1 Determining the target customers ……………………... 65
3.3.1.2 Organization model re-structure on the direction of customer
– centered ………………………………………………………
69
3.3.2 Product and Price Development …………………………………73
3.3.2.1 Products ……………………………………………….73
3.3.2.2 Product’s price ………………………………………... 74
3.3.3 Distribution channels …………………………………………... 75
3.3.4 Marketing and Trademark ……………………………………... 77
3.4 Implementation roadmap ………………………………………………... 80
3.4.1 Implementation schedule ……………………………………….. 80
3.4.2 Implementation when converting the structure of branch model …81

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3.4.2.1 Setting up a project team on new business strategy model
conversion …………………………………………………….81
3.4.2.2 Communication ……………………………………… 82
3.4.2.3 Problems on human resource investment training …….. 82
CONCLUSION ……………………………………………………………………...84
REFERENCES ……………………………………………………………………...87

LIST OF FIGURES
No

Figure No.


Project team on new business strategy model

LIST OF GRAPHS
No.

Graph No

Graph’s Name

1

2.1

Vietnam Retail Banking market

2

2.2

Customer rate of banking service

3

2.3

Loan Expansive level

4



2.3

Data on growth criteria of Vietnam banking industry 200 - 2007

5

2.4

Loan market share in the period of 2000 – 2007

6

2.5

Mobilization market share in period of 2000 – 2007

7

2.6

Performance of retailing business of VIB

8

3.1

VIB’s SWOT Matrix

9

management improvement. Modern technology, management competence and
abundant financial potential of overseas banks will be the basic advantages,
creating competition in the banking industry resulting in the Vietnamese banks’
capital increase, technical investment, management reform and modernization of
the payment system to improve performance and competitiveness.
It is possible to say that in such a cut- throat competition and difficult
context as present, any banks who take a proper strategy, optimize opportunities
and well match with the threats will be the winner and their position in the world
financial banking market will be stable.
The availability of commercial banks in most of the socio- economic
activities proves a fact that “where a commercial bank system develops, there
obtains high development of the socio-economy and vice versa”. With response to
the urgent issue of having a strategy to develop the commercial banks
synchronously and effectively, making contribution to the national economic
development in the trend of international economic integration, majority of group

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members are working in the financial- banking industry, being one of the
managerial staffs of VIB, we decide to select and make a research on:

“BUILDING UP A RETAIL BANKING BUSINESS STRATEGY
IN PERIOD OF 2009 - 2013 - FOR VIETNAM INTERNATIONAL
COMMERCIAL JOINT STOCK BANK (VIB)”
1. Subjects of the study:
The global financial crisis and economic depression including Vietnam lays
enterprises in a new period where they request to activate a more professional,
better management style and take a more prudent orientation strategy. Besides,
involvement of many domestic and international credit institutions into the

optimal strategy for retail banking operation of VIB Bank. What are objectives of
the strategy? What are the contents of the strategy? Which solutions set out for the
strategy formulation? These questions will be answered in this thesis.
3. Research methodology
The main research methodology of the thesis is to apply theoretical model
on strategy management in an enterprise to employ in a specific condition of VIB
Bank to plan a master business strategy.
The secondary data collection method is mainly applied in the thesis
including:
- Internal data of VIB Bank
- External data collected from the State Bank of Vietnam, Bank Association,
Financial Statement, and Annual Reports of some commercial banks in Vietnam
- Sources from newspaper, internet.
- Some references, home and abroad lecture materials on strategy
management module.
Besides, the group also uses some sampling statistics method, survey,
questionnaire and analysis.

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4. Design of the study:
Excluding the prefaces and conclusion, the study includes 03 main parts:
Chapter I: Literature review on business strategy
Chapter II: Analyzing the current retail banking services in Vietnam
International Commercial Joint Stock Bank (VIB)
Chapter III: Building up a retail banking business strategy of VIB in period
of 2009 - 2013 - Solutions and performance schedule

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challenges, etc, thence, working out proper solutions to keep the dominant position
in business.
According to consulting group of Boston Consulting Group (BCG):
“Business strategy is an allocation of available resources to change the balance of
corporate available resources and convert the competitive advantage toward their
company”. That means by analyzing their resources, corporate departments and
allocating resources optimally, effective solutions have been worked out to achieve
the set targets with highest performance to create the competitive advantage.
Alain Charles Martinet described “Strategy is an art which companies apply
to compete and win”. Like this, strategy is used to sketch sustainable and longterm development orbit. Corporate exact decisions and actions can be arranged
surrounding such orbit.
In business environment, “strategy” term is almost derived from basic laws.
However, the term application is often failed due to poor understanding on nature
and how to use this term. Therefore, it is very difficult to obtain a consistent
definition on strategy because of 2 basic reasons: (1) strategy includes various
fields, and (2) individual strategy, it changes as per case of company in each
specific industry. There are at least three strategy types in the business world
including Strategy or Traditional Strategy; Corporate Strategy and Competitive Strategy.

Figure 1.1

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Although there are many definitions on strategy, it generally focuses on 4
main categories namely plan, model, position and prospect. In other words, strategy
is:
•

Enterprises:
+

Where are they?

+

What do they want to do?

+

What do they need to do?

+

What will they do?

+

How does it?

By determining where the companies stand, the formed business strategy
will give the answer about where the companies wish to reach and how they can
reach it. The business strategy describes corporate objectives and orientation for
high performance.

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The strategy supports effectively companies applied it, creating an

identifies objectives, works out alternative solutions to achieve the target, evaluates
success possibility of each solution and decides the implementation measures.
The linear model is increasingly less used because the strategic problems
become more complicated not only in terms of various management aspects but
also changes of variables of specifications, economic, information, society and so
forth.
1.1.3.2 Adaptive strategy model
It is defined that an adaptive strategy model concerns developing possibility
to combine opportunities and threats of business market with corporate resources
and capacity to exploit that opportunities.
Companies are forecasted to continue evaluating the internal and external
conditions. Evaluation results are the proper adjustment in the organization or in
relevant environments to create the logical combination between opportunities and
threats of environment and the corporate and resources.
Adaptive strategy is based on some hypothesizes. Companies and
environment have a closer relation compared with the linear model. However in the
adaptive model, environment is flexible and difficult to forecast. The business
environment encompasses rivals, trends and relevant partners (having increasingly
important role). In the linear model, companies must face with business
environment, whereas the adaptive model supposes that companies change as per
business environment.
The adaptive model uses many variables and has higher modification
possibility against the linear model. However, it is thought that the business world
is still much more complicated.
1.1.3.3 Interpretive strategy model
The interpretive strategy model is mainly based on the social relation
factors. The social relation views consider company as a combination of

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The corporate main mission and objectives offer a context for strategy
formulation. The strategy describes existence reason of the company and what to
perform. Whereas, the objectives determine what the company expects to satisfy
within the medium and long term scope.
1.2.1.1 Mission
Mission refers to a message embodying the corporate core value. It
represents what important and contribution of company in terms of business and
life, the corporate business principle, corporate position in the world and
commitments which the company will comply with.
The mission should be concise and comprehensive in terms of fundamental
meaning but it also embodies encouragement and long term stability.
1.2.1.2 Vision
Vision refers to a message specifying the Mission into an encouraging
target. It describes necessity of the survival improvements for the corporate,
creating the corporate future confidence and orienting to make the impossibility
become possibility.
1.2.1.3 The business objectives
Objectives are set by developing the company’s mission, but more separate
and specific. Objectives can be set for long term or middle and short term.
Long term objectives can be: profitable capability, productivity, competitive
position, staff development, technology leader, or social responsibility, etc…
Middle and short term objectives (under 1 year) are clearly and time limited.
Short term objectives are required to be detailed, measurable, reality, and utmost
important are aimed to realize the long-term objectives.
1.2.2 The external environment analysis and evaluation

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relationship,

mismanagement

with

the

international experience or backward products or services against rivals, etc.
The results of the internal and external environment analysis are the
comprehensive outcomes of the business environment study and evaluation. It
includes the business environment in a geological limit (politics, society,

21


economics, environment, and culture), the industry trends (science and technology,
technology, supply sources, etc); market situation (demand, consumption, trend
forecast); competition situation (main rivals, potential rivals, capacity, strengths
and weakness, forte and foible, current position and on-going strategy).
1.2.4 Selection of business strategy
The corporate business strategy refers to the development orientation and
construction of the competitive advantages based on understanding and situation
analysis implemented in the above steps. The enterprise can select strategy such as
under the 3 strategy groups as:
•

The Cost domination strategy (lowest price)


Combination

Combination

(W/O)

(W/T)

22


Table 1.1 SWOT Matrix
SO combination strategy is obtained due to main strengths and opportunities
of the enterprise. It is important that the enterprise must develop their strengths to
maximize opportunities.
ST combination strategy is obtained due to main strengths and threats of the
enterprise. Here, the enterprise must develop their strengths to conquer the threats.
OW combination strategy is obtained because the enterprise maximizes
opportunities to overcome the weakness.
WT combination strategy is obtained because the enterprise strives to
mitigate weakness to avoid threats.
1.2.5 Strategy implementation
Company’s mission, vision and objectives (1)
Strategy implementation is an action plan to deploy all activities that the
enterprise will carry out together with achievements by the milestones it needs to
achieve the
general
goals. The plan also includes aBusiness
proper organization
Environment structure


2.1.1 General introduction, mission and objectives of Vietnam
International Bank (VIB)

24


Vietnam International Joint Stock Company (abbreviated name is Vietnam
International Bank - VIB) has the head office in No. 198B Tay Son street, Dong Da
district, Hanoi; incorporated in accordance with Decision No.22/QD/NH5 dated
25th January, 1996 of the Governor of the State Bank of Vietnam. Founder
shareholders of VIB include Vietcombank, Agribank, successful individuals and
businessmen in the home and abroad.
Over 13 years of establishment and operated on 18th September, 1996, VIB
increasingly develops and affirms its position in the home financial market. With
initial charter capital of 50 billion VND, up to now its charter capital increases in
2,400 billion VND with total assets of more than 50 thousand of billion VND. VIB
is ranked on the first by the State Bank of Vietnam in accordance with the Vietnam
banking system rating standards in many successive years.
During its operations, VIB takes the business strategy modifications in line
with the domestic and international environment. Especially in period from 2004 to
2008, VIB sucessfuly deployed its business strategy with motto of “always offer
added value to customers”.
Vision: “Vietnam International Bank (VIBank) becomes the most creative
and customer-based commercial bank in Vietnam”
Mission:
For customer: Providing outstanding creative solutions to maximize
customer’s demand.
“We acknowlege that the satisfaction and success of customers is the key to
our sucess. We highly appreciated customers’ confidence. We are committed to