1.
Analyzing the macro environment of Vietcombank through the PESTEL
tool:
● Political:
Vietnam is considered a country with a stable political economy compared to many
countries in the world. This is an advantage for businesses operating in all areas of
society, so that businesses can feel secure to do business and develop, including the
banking industry. This also promotes foreign companies to look to Vietnam as an
ideal destination for investment. Therefore, the banking industry will also be
promoted. We can clearly see in the following cases:
- When international and multinational financial groups invest in our country's
banking industry, it will indirectly make the level of competition in the industry
even more fierce. than. Thus, the banking industry will also develop.
- Stable political economy will minimize strikes and protests. Therefore, the
production process operation will avoid losses such as lack of workers,
disturbance in the enterprise. Thereby, it will attract foreign investors. And
once foreign businesses invest in Vietnam, the banking industry will certainly
be noticed.
● Economic:
It can be said that the macroeconomic situation in the banking sector in the period
from 2000 to 2006 was quite stable. However, in the past few years, the world
economic crisis has greatly affected the banking industry, causing inflation to
increase, trade deficit and especially significantly reducing the quality of banking
services. investment.
In the past ten years, a remarkable point is the emergence and formation of securities
trading centers, the first place being Ho Chi Minh City (2000). However, the
relationship between the bank and the stock market has not been strong, they cannot
support each other, and as a result, production costs have been reduced. We can
clearly see this in the separation between the activities of these institutions and the
inaction of the interbank money market
● Sociocultural:
Today, people's lives are improved, enhanced and become more civilized. The
demand of customers related to banking activities as well as services provided by the
banking industry is also increasing.
In addition, the globalization process also affects and promotes the development of
business lines in general and the banking industry in particular. Globalization has
opened up more opportunities for customers to use different banking services to make
doing business more convenient. Example: Your company has a foreign partner. And
you need to transfer money to them. So now, we can see the importance and
significance of the services that the banking industry brings. Just a small operation,
transfer money to the partner's account. In a split second, your partner will receive the
money that you only have to spend a very small amount of money for this transaction.
● Technological:
Vietnam is increasingly developing and in tune with other countries in the world.
Therefore, the technical system - technological elements of the banking industry are
being upgraded and more modernly equipped to meet the increasing demands of
customers. It can be said that technology is one of the leading competitive advantages
between domestic and foreign banks. We cannot deny the advantage of owned banks
with 100% foreign capital because their technical system is more advanced and
modern than our own. And since Vietnam joined the WTO, the appearance of these
banks has made the competition in the banking industry increasingly greater. This
makes domestic banks, including Vietcombank, need to constantly improve their
technology to be competitive.
The rapid development of information technology factors has had a strong impact on
the business activities of the banking industry. The more advanced technology is, the
more it allows banks to innovate and improve business processes, transaction
activities and develop new services. For example, a step forward in the banking sector
in recent years has been the application and development of information technology
such as inter-bank electronic payment, the introduction of new services such as
automatic withdrawal system, etc. ATM, Home Banking, Internet Banking... This new
service helps banks to significantly reduce costs, improve operational efficiency, and
work more professionally.
● Legal:
Any business that operates is subject to the law. And an industry like the nervous
system that governs all activities of the economy like the banking industry, those
effects are much larger. The operation of the banking industry is regulated in
accordance with the provisions of the law, moreover, for commercial banks in general
and Vietcombank in particular, it is also subject to the control of the State Bank. We
can mention a number of mechanisms and policies on interest rates that the State Bank
has introduced such as: Agreement interest rate mechanism (2002-2006); mechanism
for operating ceiling interest rates (1996-2000); basic interest rate management
mechanism with margin (2000-2002)...
2. The main competitors of this bank in Vietnam
Currently, Vietcombank's competition can be mentioned as: Vietinbank,
Techcombank, VPBank, ... In an effort to increase market share, Vietcombank's
competitors are also banks with 100% foreign capital. These banks have an advantage
in terms of quality and better services, so Vietcombank needs to take advantage of its
existing advantages in terms of close relationships with existing customers, improving
service quality. services to retain those customers and attract new ones.
As we all know, the race to rank the charter capital of banks is taking place very
fiercely, along with the target is the leading position in terms of profit. At this year's
general meeting of shareholders, a series of banks aggressively planned to increase
capital as well as plan to increase huge profits. If these plans are successful, the capital
ranking of banks will have a strong change, leading to a significant change in profits.
However, in the immediate future, it is very difficult for any bank to overcome
Vietcombank to win first place.
Although only ranked 3rd in the system in terms of charter capital, Vietcombank is the
champion in terms of profit, market capitalization and equity. As of the trading
session on May 19, Vietcombank's total market capitalization is more than 350,000
billion VND, twice the capitalization of the adjacent bank. Vietcombank is also the
only bank whose equity exceeds 100,000 billion VND and is the only bank that has
achieved a profit of approximately 1 billion USD in the past 2 years. In the first
quarter of 2021, this bank earned VND 8,631 billion in pre-tax profit and is expected
to exceed VND 25,200 billion in profit for the whole year, continuing to take the
leading position. Mr. Nghiem Xuan Thanh, Chairman of Vietcombank's Board of
Directors, said that by 2025, Vietcombank's profit will reach 2 billion USD, double
the figure of 2020. More importantly, in the long-term, Vietcombank has a lot of
surplus. sustainable growth thanks to the advantages and good "health" foundation:
the largest source of cheap money in the system, retail and services increase very
quickly (more than 50% of profit in 2025 will come from retail) , good customer
quality, leading to a very low bad debt ratio, bad debt coverage ratio up to 380%...
Especially, although the growth rate of charter capital is not as strong as some other
private commercial banks. However, Vietcombank's capital increase is still quite large
thanks to the abundant retained earnings. By the end of 2020, this bank has nearly
35,500 billion dong of undistributed profit, plus about 20,000 billion dong of after-tax
profit of 2021. After paying dividends and deducting funds, Vietcombank still has
resources to increase capital. if you want. Not to mention, currently, the state equity in
Vietcombank is still up to nearly 75%, foreign room is only approximately 23%. Thus,
Vietcombank still has room to collect billions of dollars from state capital divestment
or private placement to foreign shareholders.
In addition,Vietcombank's card business leads the industry in comparison with banks
such as ACB, Eximbank,... The number of international cards issued by Vietcombank
accounted for 34%, domestic cards accounted for 19% and payment sales.
Vietcombank's international card payment accounts for 53% of the nationwide card
market share.
In this respect, we have a table comparing the competitiveness of Vietcombank
compared to some other banks as follows: (Data as of December 31, 2020).
Vietcombank AGB CTG ACB
International credit cards
Quantity 136,138 9,114 20,500 49,312
Domestic debit cards
Quantity (pieces) 3,850,000 4,200,000 3,000,000 4,000,000
Market share (%) 18.9 20.7 14, 7 19.8
Card revenue
Price (VND 100,828 34,063 42,580 64,036
billion)
Market share(%) 30.7 12.5 13 19.5
Number of ATMs
Number of 1,483 1,702 1,042 600
(pieces)
Market share (%) 15.3 17.5 10.7 6.2
3. The Vietnamese population:
As of December 31, 2022, the population of Vietnam is estimated at 99,329,145
people:
● Male: 49.589,964 as of December 31, 2022
● Female: 49,739,181 as of December 31, 2022
Population data by age (estimate):
● 23,942,527 adolescents under 15 years old (12,536,210 men/11,406,317
women)
● 65,823,656 people aged 15 to 64 years (32,850,534 men / 32,974,072 women)
● 5,262,699 people over 64 years old (2,016,513 men / 3,245,236 women)
Population data by religion:
Religion Total Male Female
All country 13.162.339 6.344.708 6.791.171
Catholic 5.866.169 2.861.960 2.974.209
Buddhism 4.606.543 2.165.529 2.441.014
Evangelicalism 1.260.558 630.500 630.088
Hoa Hao 983.079 491.099 491.980
Dao Mau 71.568 38.125 42.286
Islamic 70.394 34.660 36.274
Population data by ethnic, there are more than 82 million Kinh people, accounting for
85.3% and more than 14.1 million other ethnic people, accounting for 14.7% of the
total population of the country.
4. The main services of Vietcombank
Vietcombank is currently providing a variety of products and services to best meet all
the needs of customers. Because of that diversity, Vietcombankdivides services into
different customer groups:
Personal:
● Card
● Current account
● Deposits
● Remittance
● Personal loan
● Transfer and receipt
● Digital banking
● Bancassurance
● Investment
● VCB Rewards
● Modern safe transaction support services such as Vietcombank QR code
withdrawal, bank transfer 24/7…
● Promotion
Corporate:
● Finance institutions
● Corporates
● SMES
● Card services
Priority:
● Account and Savings
● Cards
● Investment
● Insurance
In addition, Vietcombank also has services for banks. general electronic banking
services such as:
● Digital Banking Service VCB Digibank
● Free Balance Notification
● OTT Smart OTP
● SMS Banking
● Phone Banking
5. Service Loan
Service This service is aimed at a number of customer segments such as following:
Segmenting customer groups into different customer groups based on the size of their
operations, including: Large customers (revenue from 3,000 billion VND or more),
medium customers (500 billion VND ≤ revenue < 3,000 billion VND or deposits from
30 billion VND or more). up) and commercial customers (revenue > 500 billion
dong).
● For large customer segments: Diamond/Potential, Gold and Silver.
Major customers: including 21 customers with outstanding credit balance with a very
high loan balance of VND 3,267 billion, focusing on the entire Thaco Group with the
main business of manufacturing and assembling cars.
● For medium and commercial customer segments: Potential, core and basis.
Medium customers: including 3 customers with outstanding credit balance with a loan
balance of VND 100 billion, medium customers with business fields: Garment,
construction and timber. Commercial customers: the largest number of customers in
three categories, including 36 customers with outstanding loans with outstanding
loans of VND 868 billion, commercial customers with business fields: Construction,
trade, garment, manufacturing, processing, quarrying, medical,….
● For the SME customer segment: SME customers are characterized by a large
number of customers, small and often unstable transactions..
6. The FLOWERS of this services
The combination of a core service and the accompanying number of complementary
(additional, supplementary) called the concept of loan service flower. The flower of
services is better looking, flourishing, beautiful, and more attractive when loan (core)
service is surrounded by a variety of additional services. Vietcombank is looking for
ways to offer consumers a more comprehensive and profitable service concept that
will convince them to use loan services and build long-term loyalty with them.
Vietcombank are not altruists, but they do this in order to gain competitive advantage,
to increase the number of customers and to make more profit. Vietcombank offers a
range of banking products and loan services through various distribution channels,
such as Internet banking, Point of sale terminals, and makes efforts to differentiate
themselves from market competitors. Banks play an important role in the financial
development and economic growth of each country. That is why banks must
understand the sophisticated demands of consumers and to offer them richer service
packages (beautiful flower of services!).
7. The environment of the bank agencies of Vietcombank
Most of Vietcombank's agencies are located in With a large facade, Vietcombank's
office has been fully utilized by architects, creating a modern and luxurious facade
architecture that is true to a working office of the majority of leading banks in
Vietnam. Currently.
The building's facade is shaped with a modern and luxurious style with white - green
tones combined with a large gate to welcome customers to the bank. Not only the style
and design lines, but also the colors are carefully selected to combine with the interior
decoration of the office. Glass materials for windows, false walls, are also chosen
extremely carefully to be able to bring about strong, good bearing effects, moreover, it
also helps to interfere with outside light and create an airy working space. Open space,
expand the space, also help to optimize natural light and increase the aesthetics of the
whole office.
Vietcombank's agencies all have the same rule "use the same card, uniform, and office
architectural paint color to create agencies in another place". With green as the main
color. Vietcombank's agencies all adhere to this dominant color tone, combined with
separate interior designs suitable for their premises to create their own unique features
that only need to be set foot in that you immediately knew it was a branch of
Vietcombank.
The waiting space for procedures on the 1st floor usually has a lot of people waiting,
has a characteristic green tone that helps to make the atmosphere less stuffy and
uncomfortable while also making the office more fresh and airy.
The area of transaction offices of branches all have the same design model: one side
of the office is used for consultants and procedures, and the other side is used to
accommodate long rows of chairs for customers. waiting queue. The model of this
transaction room is arranged in a straight line, thus making it easy for customers to get
in and out of the chair as well as feel comfortable when waiting for their turn to be
served. All waiting chairs are designed with fancy designs, high quality wood
materials combined with fresh green colors that are very eye-catching and typical of
Vietcombank. The office chairs of the staff and the consulting desk are also designed
with a blue tone, giving customers a feeling of closeness and professionalism for the
whole room.
The office is not only full of computers, desks, and drawers for files, but also neatly
and professionally divided. Full electric lighting system, meeting the lighting needs of
all employees in the office. In addition, the glass door system like the 1st floor is also
applied to the 2nd floor, making the office more airy, creating an airy and more open
office environment.
The meeting room is a place that is not used by banks or bank branches often. but it
holds an important position to organize meetings, briefings and exchanges with
partners, etc. Therefore, this place is still prioritized by the bank to use the best
lighting system, the most ventilation to ensure favorable conditions for users. The
large meeting room is equally airy with a window system, making the meeting
atmosphere more pleasant and comfortable. High-class long wooden tables full of
power, common and smooth meeting chairs create an impression and professionalism
for the meeting room.
It can be said that "the design is really special, suitable for meeting rooms and office
space!"
Through this, it can be seen that each Vietcombank branch building is designed with
its own style depending on the needs of use and the nature of the work. However, all
are oriented towards the same color format as well as expressing the spirit, purpose
and vision that Vietcombank is aiming for in its work as well as making changes in
the design of the pillars in his office.
8. The solution of this bank for the complaint of the clients
There is an online support system working 24/7 to answer all questions about
problems encountered when using the services provided by the bank, hotline
1900545413 meet customer service specialists to provide and answer about products
and services, conditions of use, advice and detailed instructions; support a number of
requirements such as: card activation, temporary card locking, VCB-iB@nking
service suspension, card transaction authorization, complaints, transaction tracing,
other requirements that the bank has When possible, the bank always gives the most
active support with a quick attitude and manner, understanding and understanding of
the product, etc. Vietcombank always listens from there to improve and promote the
product to perfection. in order for customers to use the best services from the
organization.
