Luận văn thạc sĩ Xây dựng chiến lược kinh doanh Thẻ tại ngân hàng
Vietncombank

THESIS Topic:
“Build a card business strategy of Vietnam Joint Stock
Commercial Bank for Foreign Trade of Vietnam (Vietcombank) in
the period of 2011 – 2015”

ACKNOWLEDGEMENT

We would like to commit this is the research project of our group. The published
data of the organizations and individuals are referred and used under regulation. The
results in the topic are honest and have not been showed in any other projects yet.
Our group would like to thank Griggs University, representative of the University
in Vietnam, ETC Center, teachers are considerate to teach us; thank people in the Center
who have helped us during the studying process in the Center.


Group would like also to thank Vietnam Commercial Joint Stock Company
(VCB); Vietcombank card Center which have supported us in the process of working
and provided the data creating conditions for us to complete the research.

Hanoi, February 25th 2011
WRITERS’ GROUP

2


TABLE OF CONTENTS

ACKNOWLEDGEMENT

1.2
1.2.1
1.2.2
1.2.3
1.3
2
2.1
2.2
2.3
2.3.1
2.3.2
2.4
2.5
2.5.1
2.5.2
2.6
2.6.1
2.6.1.1
2.6.1.2
2.6.1.3
2.6.2

10
10
11
11
12
13
13
13

Analysis of micro environment (model of five competitive forces)
Analysis of internal environment
General Matrix SWOT
General theory about SWOT
SWOT Matrix
Strategic selection
Common competitive strategy
Strategy as leading in expenses
Strategy as difference in products
Concentration strategy
Model of analysis and selection of strategic alternatives according to
weight method
CHARTER II: THE REAL SITUATION OF CARD BUSINESS OF JOINT
STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
(VIETCOMBANK)
1 General introduction about Vietcombank
1.1 General information about Vietcombank
1.2 Business scope
1.3 History of Establishment and Development

27
27
27
28
28
3


1.4
1.5

4.2.2.3
4.2.2.4
4.2.2.5
4.2.3
4.2.3.1
4.2.3.2
4.3
4.3.1
4.3.2
4.4
4.5

Organizational structure
Income Statement of Vietcombank in the period of 2008 – 2010
Business strategy of Vietcombank in the period of 2011 – 2015
Strategic vision
Objectives
Business strategy
Solutions for implementing
Plan on implementation of main targets in the period of 2010-2015
Card business of Vietcombank
The formation and development Vietcombank card
Card business of Vietcombank in the period of 2006 – 2010
Issuance
Issuance of international credit cards
Issuance of international debit card
Issue domestic debit card
Payment operations
Revenue on credit card payment
Revenue on international debit card usage that Vietcombank issued

32
32
33
34
34
35
35
36
36
36
38
39
40
40
41
43
44
44
44
45
45
47
52
52
52
52
59
59
60
63

75
75
75
75
75
76
77
78
80
81
81
82
84
85

5


LIST OF WORDS
No.
1
2
3
4
5
6
7

Words in short
CJSB

Electronic data capture
Is a high-level type of money counting machine used

10

POS (point of sale)

for payment in the shop and used to manage in the

ICO

retail business and even in service business.
International Card Organization

11

6


LIST OF TABLES

Table 1.1
Table 1.2
Table 1.3
Table 2.1
Table 2.2
Table 2.3
Table 2.4
Table 2.5
Table 2.6

23
25
30
34
36
38
39
40
42
43
54
68

7


LIST OF FIGURES

Page

Figure 1.1
Figure 1.2
Figure 1.3
Figure 1.4
Figure 2.1
Figure 2.2
Figure 2.3
Figure 2.4
Figure 2.5


GDP growth and GDP per capita from 1998 to 2007
(1)
Exchange rate movement of USD / VND from 2006
to 2010
Market share of domestic card issuance
Market share of international cards issued
ATM sharemarket
POS machine sharemarket
Card sharemarket of Vietcombank in years

13
15
17
20
28
31
31
36
38

39
41
42
54
55
56
60
60
62
62

competitiveness of Vietcombank card in 2015.
2. Reason for research
- Systematization of the theoretical issues of business strategy, selecting the
effective analytical models for the establishment of business strategy
- Applying the system of practical and theoretical basis to analyze and assess the
inside and outside environment, advantages and disadvantages, thereby building
9


business strategy for VCB card
- To propose solutions and recommendations for completing the business strategy of
VCB card
3. Object and scope of study
- Study object is credit card business at VCB Bank
- Scope of the Study: Credit card service, status and analysis of the status and proposals
of strategy for VCB credit card development
. 4. Study method
Methods of secondary data collection, data were extracted and compiled from
statistical yearbooks, reports from the Bank's Website and annual Report of the Bank. In
addition, this assignment uses some references, books, magazines and other specialized
teaching materials.
Comparative method, synthesis method, the methods involved
In the process of analysis, the authors have used the method of comparing and
synthesizing the data from the VCB in the past and present, as well as compare
indicators and data of business results between VCB and some other commercial banks,
and also consulted experts on the evaluation of points when analyzing the matrix.
5. Structure
Besides the introduction, conclusion, reference materials, the research consists of three
chapters:
Chapter I: Theoretical base

opportunities and challenges.
Exchanges and fighting among the above approaching views gradually converge
to create concepts of strategy quite united. No matter what ways we approach, through
the above views and definitions, we recognize that the strategy of enterprise contains
three most common characteristics:
-

Define an general action program toward the future of enterprise’s long – term
basic business goals;

-

Important policies, methods of the enterprise are made decision by the
enterprise owner;

11


-

Establish the sequence of action, the manner of processing and disposing
resources in order to perform targets of the enterprise.

1.2 Business strategy and strategic choices.
1.2.1. The definition of business strategy.
Business strategy which is orientation of business operation, have goal in a long
time as well as policy system, methods and ways of distributing resources to perform the
goals of enterprise in respectively time duration.
The business strategy has no intention to work out in details how to achieve goals
because it is the duty of supporting programs, different strategies. The business strategy

strategy. Nowadays, every enterprise operates in competitive environment. Hence,
business strategy has to research how the enterprise has more competitive advantage and
after that get success in competing.
The risk: The business strategy is future development project but existence
environment is not certain and changeable. The duration of strategy is longer, uncertain
factors of objective situation is more, the level of uncertain is more, and the risk of
strategy is great. The risk of business strategy requires enterprise to stand high, to have
far vision, observe carefully and objectively so that it can make the right strategy
The professional and creation: Enterprises can base on their own ability to
choose the business fields which are suitable for their own strong points, avoid fields
which big enterprises are exclusive. The majority enterprises do this, are successful,
develop and gain prosperity. However there is no limit to technological advance and
market competition. Thus, enterprises have to continuously import or develop advanced
technology. Specialization and suitable technology creation are important methods to
ensure the existence and development of small and medium – sized enterprises.
The relative stability: The business strategy of enterprise must have the relative
stability in the certain period of time. Otherwise, it does not have the meanings of
leading in practical operation of enterprise. Objective environment and practical
operation of enterprise is a continuously moving process. The business strategy also has
the ability of controlling to fit with objective situation. The business strategy cannot
have one – sided stability but cannot change quickly, is relatively stable.
1.2.3. Types of business strategy.
There are many ways of classify business strategy which create diversity of the
manner of implementing business strategy. When classifying business strategy based on
the strategic level, we have 3 types of strategy such as enterprise - level strategy (general
strategy), business – level strategy (field) and function – level strategy. French managers
thought that business strategy contains trade strategy, technological and technical
strategy, financial strategy and human strategy. Classifying strategy based on the process
of strategy, we have orientation strategy and action strategy.


of three questions “Where are we, in present? Where do we need to go?, How to get
there?”
1. Evaluating the present: missions, targets, strategies
2. Analyzing business environment, the structure of

“Where

environment, development situation, analyzing thee

are now?

we

competitiveness and define enterprise.
3.Analyzing the macro environment: demographic
environment, economy, society, technology and politics.

Where do we
need to go?

4. Analyzing the inner of enterprise: structure, resources,
process, human resources and enterprise culture.

How to get
there?”

5.Analyzing the strengths, weaknesses, opportunities
and challenges.(SWOT)
6. Analyzing and choosing strategy : Common or based on field
7. Evaluating and perform: requirements of resources, risk and interests.

Strategy selection
Leading in expenditure
Specification product
Focusing on

Make organization and
structure of enterprise

Perform and adjust the
Strategy

Outside analysis
+ Macro analysis: The
outside environment
+ Micro analysis:
Model of 5
competitive resources
+ Conclusion:
Opportunities
Challenges

Monitor and evaluate
the implement strategy

match strategy

Source: Teaching document of strategy administration – Griggs.
2.1. Mission and strategic vision
Mission is the concept used to define the most important purpose, meaning of
establishment and existence of enterprise. It is the declaration to express the usefulness

Saying that does not mean that we can put the business strategy at any levels of
importance when defining the strategic goal of enterprise. We have to restrict it to
situation, environment, and the general competence of enterprise. The good goal is both
offensive and feasible. To ensure that requirement, defining the strategic goal has to base
on the following factors:
- The general business duty of enterprise and in specific strategic period. - Business
philosophy (expressed in mission declaration of enterprise)
- General evaluation of business environment and the competence of enterprise
2.3. Analyzing outside environment
The objective of analyzing outside environment is to define opportunities and
challenges, find out the ways of implementing and grasp chances from outside environment,
to avoid essential challenges as well.

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Scale and content of analyzing environment contains: analyzing the macro
environment( general environment) and analyzing the micro.
2.3.1. Macro analyzing
With a view to analyze, synthesize the outside existing factors of enterprise,
which have decisively influenced the existence, development of enterprise, it have to
realize opportunities and challenges given by objective environment. Enterprise has to
not only adapt but also stimulate the changes of business environment. The factors of
macro environment were expressed in the next model:
Figure 1.3: The outside environment

Economy

Demography


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Geographic disposal: Be able to create advantages in telecommunication field.
By computer, people can connect to others through telecommunication network when
they are at home.


Analyzing the political and legal environment
The political environment: is political factors and situation whose operation

influences business operation of enterprise. These factors includes: The political regime,
political party regime, guidelines and policies of Party and State, political situation.
Legal environment: is the legal system related to enterprise, including in the legal
norm of the State, legal awareness of organs of justice, executive bodies and enterprises.
The influence of political and legal environment on the business operation of enterprise
is very wide and deep, even sometimes it has decisive meanings. In general, if one
country has stable politics, transparent and consistent policies, good political
atmosphere, strict law, enterprise can develop healthily and stably


Analyzing the economic environment
The economic environment is social, economic situation and economic policy of

one country. The macroeconomic environment contains: the social economic structure,
the standard of economic development, economic policies and macroeconomic policy.


Analyzing the environment of science, technology, and technique.
The environment of science, technology, and technique is factor of science,


Population size

The diversity of races

segment

Age structure

Income distribution

Geographic distribution
Economic

Inflation rate

Personal saving rate

segment

Interest

Business saving rate

Trade deficit or profit

General national product

Budget deficit or profit
Political/ legal


quality of work

The change in priority relating to
the characteristics of product and
service

Technological

Innovating product

The

level

of

investment

of

segment

Applying knowledge

expenditure for R& D of the
government
The

new

Threats from
alternative products

Negotiation
strength of
suppliers

Competitiveness
intensity in the
sector

Negotiation
strength of
buyers

Threats from new
penetration

Source: Lecture document for strategy management - Griggs
- Risk from potential opponents: An enterprise which has just participated in
the sector can be a newly established enterprise or an enterprise which in the past
traded in other products. Those enterprises bring to that sector with new
manufacturing capability; at the same time require a specific market proportion.
Whether this competitive pressure is great or small will depend on how much that
enterprise had to spend and reaction of other enterprises when that enterprise
participates in the sector, or on whether the participation barrier is high or low.
- Threats from alternative products: Alternative products are products that have
21



order to make suitable management decisions.

22


The study of 5 competitive forces according to model of M.Porter helps enterprises
to be fully aware of operation sides, being aware of supply and demand is also the same
with being ourselves and opponents so that enterprises will have base to make the most
reasonable decision in their business activities.
Some main conclusions:
(1)

If an enterprise can meet demand of the environment, its strategies will be more
efficient.

(2)

Main reasons for recession are often outside factors but not internal factors.

(3)

If an enterprise becomes more independent in outside environment, it needs to
focus more and more on analysis and judgment that environment.

(4)

A changing and unstable environment needs to be analyzed and judged more and
more.

(5)

Base on analyzing factors in matrix, base on goals, business development
orientations and its resources, an enterprise can make combination. Principally, there are
4 combination ways:
- Opportunities with strength (OS);
- Opportunities with weaknesses (OW);
- Threat with strength (TS);
- Threat with weakness (TW)
A company does not necessarily pursue best opportunities; instead it can
establish competitive advantage development by studying about parallelism between its
strength and up coming opportunities. In some cases, the company can overcome its
weaknesses to get attractive opportunities.
To develop strategy base on SWOT analysis table, companies need to design a
matrix of factors which is called SWOT matrix (or TOWS matrix) as follows:
Table 1.2. SWOT matrix
SWOT matrix

Opportunity (O)

Threat (T)

1...

1...

2...

2...

3...



Strategy

2...

weaknesses of an enterprise to weaknesses of an enterprise to

overcoming Strategy

make good use of outside reduce

3...

opportunities.

overcoming
threat

from

outside

environment (challenges).

In which:
 Strategy S-O to pursue opportunities which are suitable with strengths of company.
 Strategy W-O to overcome weaknesses to pursue and seize opportunities.
 Strategy S-T to define ways in which the company can use its strengths to reduce
risks of loss and outside threats.
 Strategy W-T to establish a defensive plan to prevent its weaknesses from