REPORT ASSIGNMENT MANAGING SCHOOL SUBJECTS project title ENVIRONMENTAL ANALYSIS OF SACOMBANK AND MANAGER

THE UNIVERSITY OF DA NANG
UNIVERSITY OF ECONOMICS
Faculty of finance

REPORT ASSIGNMENT
MANAGING SCHOOL SUBJECTS
Project title
ENVIRONMENTALANALYSIS OF SACOMBANK AND MANAGER
NGUYEN DUC THACH DIEM
Group’s name : 07
Class

: 46K15.1

Advisor

: Hoang Ha

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Da Nang, 06/2021.

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THE UNIVERSITY OF DA NANG
UNIVERSITY OF ECONOMICS
Faculty of finance

REPORT ASSIGNMENT

MANAGING SCHOOL SUBJECTS
Project title
ENVIRONMENTALANALYSIS OF SACOMBANK AND MANAGER
NGUYEN DUC THACH DIEM
Group’s name : 07
Members
Lam Ba Dat (Leader)
Le Cong Tuan Vu
Le Anh Don
Nguyen Nhat Minh
Nguyen Duc Tu

Da Nang, 06/2021.

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i

TABLE OF CONTENTS
PART 1. ENVIRONMENTAL ANALYSIS OF SACOMBANK AND
ORGANIZATIONAL................................................................................................................... 4
1.1. INTRODUCE SACOMBANK...................................................................................... 4
1.1.1. The process of formation and development........................................................ 4
1.1.2.1. Establishment background............................................................................... 4
1.1.2.2. Development journey........................................................................................ 5
1.1.2. Development orientation......................................................................................... 8
1.1.2.1. Vision.................................................................................................................... 8

1.1.2.2. Missions............................................................................................................... 9
1.1.2.3. Core values........................................................................................................ 10
1.1.3. Organizational structure........................................................................................ 10
1.2. ENVIRONMENTAL ANALYSIS............................................................................... 13
1.2.1. External environment............................................................................................. 13
1.2.2.1. General environment...................................................................................... 13
1.2.2.2. Task environment............................................................................................. 22
1.2.2. Internal environment.............................................................................................. 27
1.2.2.1. Concept of the corporate culture.................................................................. 27
1.2.2.2. Corporate culture models at Sacombank................................................... 27
PART 2. ABOUT MANAGER NGUYEN DUC THACH DIEM................................ 35
2.1. CEO NGUYEN DUC THACH DIEM....................................................................... 35
2.1.1. Working process at Sacombank........................................................................... 36
2.1.2. The journey to bring Sacombank back to position.......................................... 37
2.1.2.1. Bank restructuring........................................................................................... 37
2.1.2.2. Strong and decisive leadership style........................................................... 38
2.1.2.3. Stimulating the spirit of the corporate culture.......................................... 40
2.1.2.4. Keep writing the journey of credibility to continue to rise...................41
2.1.3. Perspective at work................................................................................................. 41
2.1.4. Individual awards.................................................................................................... 42
2.2. WORKING ANALYSIS AT SACOMBANK........................................................... 42
2.2.1. Role in leading the bank in the right direction................................................. 42

GROUP’S NAME: 07

ADVISOR: HOÀNG HÀ

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ii

2.2.2.1. Restructuring, re-arranging personnel, increasing productivity...........44
2.2.2.2. Financial transparency, handling outstanding assets............................... 45
2.2.2.3. Digital technical development...................................................................... 45
2.2.2.4. Breakthrough in communication and brand.............................................. 46
2.2.2. Perspective in planning and strategy.................................................................. 46
2.2.3. Implementation plans............................................................................................. 47
2.2.2.1. Strategic plans.................................................................................................. 47
2.2.2.2. Operational plans............................................................................................. 47
2.2.4. General view............................................................................................................. 48
2.2.2.1. The role of people in business...................................................................... 48
2.2.2.2. Recruiting and employing employees........................................................ 49
2.2.2.3. About the issues of personnel leaving to be the leader........................... 49
2.2.2.4. Develop the next team.................................................................................... 50

GROUP’S NAME: 07

ADVISOR: HOÀNG HÀ

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iii

THANK YOU

First of all, Group 7 would like to express our sincere thanks to Mr. Hoang Ha
- Lecturer in Managing school subjects. This group assignment is an opportunity for
students in group 7 as well as all students in class 46K15.1 to have the opportunity to
apply the management knowledge learned in class to practice in a specific
environment – the corporate environment.
About the report of group 7 – Environmental analysis of Sai Gon Thuong Tin
Commercial Joint Stock Bank and manager Nguyen Duc Thach Diem. The report
was made within 1 month. This is the result of the finding out, research and analysis
process of the team members.
The content of the report cannot avoid mistakes, hoping you will overlook and
give feedback to Group 7 on the shortcomings in both content and form. Any
suggestions from the teacher are experiences and lessons so that each student in
group 7 can do better projects in the future.
Finally, we would like to wish Mr. Ha good health, success in work, career and
happiness.
Group 7 – Class 46K15.1 would like to thank you !

GROUP’S NAME: 07

ADVISOR: HOÀNG HÀ

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iv

LIST OF ACRONYMS
English:

ATM: Automatic Teller Machine.
CEO: Chief Executive Officer.
COD: Cash On Delivery.
CRM: Customer Relationship Management.
EMV: Europay, Mastercard and Visa.
eKYC: Electronic Know Your Customer.
FDI: Foreign Direct Investment.
FTA: Free trade agreement.
HoSE: Hochiminh Stock Exchange.
KPI: Key Performance Indicator.
NFC: Near-Field Communications.
QR: Quick response.
RPA: Robotic Process Automation.
Sacombank: Sai Gon Thuong Tin Commercial Joint Stock Bank.
Vietcombank: Joint Stock Commercial Bank for Foreign Trade of Vietnam.
VietinBank: VietNam Joint Stock Commercial Bank for Industry and Trade.

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v

IMAGE CATALOG
Figure 1-1. Administration model.......................................................................................... 11

Figure 1-2. Managerial structure............................................................................................ 12
Figure 1-3. Old logo of Sacombank....................................................................................... 28
Figure 1-4. The symbol of the current logo......................................................................... 29
Figure 2-1. CEO Nguyen Duc Thach Diem......................................................................... 35

GROUP’S NAME: 07

ADVISOR: HOÀNG HÀ

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I.

INTRODUCTION

Reasons for choosing the project
Sacombank is an enterprise operating in the field of finance and banking. The
Bank's activities provide financial services such as capital mobilization, lending;
international payment, import and export financing; payment of remittances, foreign
currency trading,...
Currently, the Corporate Finance major pertain to the Faculty of Finance, the
Finance - Banking major of the University of Economics - Da Nang University
provides students with general knowledge, while building a foundation specialized
skills and knowledge, in-depth training in understanding and enhancing the ability to
apply theoretical knowledge in the business environment. Create opportunities to
help students can work in the company's financial departments or become employees
in banks after graduating.

The project "Environmental analysis of Sacombank and manager Nguyen Duc
Thach Diem" was carried out by students majoring in corporate finance - group 7 of
class 46K15.1 is the first step for students to approach and understand applying
learned knowledge to a bank, specifically Sacombank. Despite focusing on the two
most important aspects: environment and manager. However, through the process of
finding out and researching to complete the report; students can access information,
knowledge and terminology related to their major. Know the skills of analyzing the
effects of environmental factors on a bank. At the same time, approach and
familiarize with the tasks that we can do later, such as reading and analyzing
financial statements, preparing reports and analyzing reports of competitors. When
researching about the manager and her work at the bank, students have an objective
view of how to run the company, how she implements strategies to elevate the
business. What is more important is seeing the vision and working style and
management, leading the company.

GROUP’S NAME: 07

ADVISOR: HOANG HA

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So there is a connection between the project and corporate finance major that
students in group 7 are studying. That is why the group chose this project.
Objectives
- General objectives: To analyze the organizational environment of
Sacombank and manager Nguyen Duc Thach Diem.
- Specific objectives: To introduce Bank, analyze the impact of internal and

external environmental factors on Bank, introduce manager and analyze her
works at Sacombank.
Objects and scope of research
- Objects: To conduct research on Sacombank and the impact of environmental
factors on the Bank.
- Scope of research:
+

Space: The whole system of Saigon Thuong Tin Commercial Joint

Stock Bank and manager Nguyen Duc Thach Diem.
+

Time: From the Bank's establishment to the present. Analyze the

manager's work mainly during the time she worked at the bank.
+

Scopes: Bank and person.

Research methodology
Research methodologies used in the project:
- Main methodologies:
+

Qualitative methodology: express personal opinions based on

actual experiences, real phenomena,...
+

Documentary research methodology: analyze, gather theories,…

+

Informational collection methodology: read the documents,…

-

Other methodologies: classification and systematization of theories.

GROUP’S NAME: 07

ADVISOR: HOANG HA


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Project layout
The research project includes 60 pages and 5 pictures
In addition to thanks, introduction, research results, conclusions and
recommendations, list of acronyms, list of images, list of references; the structure of
the report consists of two parts:
+

Part 1: Environmental analysis of Sacombank and organizational.

+

Part 2: About manager Nguyen Duc Thach Diem.

GROUP’S NAME: 07

ADVISOR: HOANG HA


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PART 1. ENVIRONMENTALANALYSIS OF SACOMBANK AND
ORGANIZATIONAL
1.1. INTRODUCE SACOMBANK
1.1.1. The process of formation and development
Saigon Thuong Tin Commercial Joint Stock Bank is known as Sacombank for
short. Established on December 5, 1991 in Ho Chi Minh City. Currently, Sacombank
is one of the ten largest and most prestigious banks in Vietnam.
Full name

: Ngân hàng thương mại cổ phần Sài gịn Thương Tín.

International name : Saigon Thuong Tin Commercial Joint Stock Bank.
Abbreviated name : Sacombank.
Stock Exchange : HoSE.
Headquarter
Phone number
Hotline

Fax
Website
Email
1.1.2.1. Establishment background
Sacombank was established in the context that Vietnam is in the process of
implementing a comprehensive, profound and thorough reform policy according to
the Resolution of the VI Party Congress. Starting in 1986, Vietnam's economy made
strong changes, the central planning mechanism gradually disappeared and changed
to a socialist-oriented market mechanism under the management of the Government
and each step integration into the global economy.

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For the banking industry, within only 7 years from 1990 to 1996, the State
Bank had specific innovative solutions such as implementing a positive interest rate
policy, monetary policy is operated by indirect tools combined with direct control
tools; the establishment of a currency market has opened up a business environment
for cooperation and development between banks.
In addition, human resources were enhanced, continuous training and many
new technological tools, step by step modernization ensured the smooth operation of
the new banking systems. Credit capital was expanded to all economic sectors and
achieved an average growth rate of 36%/year, contributing to economic restructuring

towards industrialization - modernization and promoting economic growth in many
years. Therefore, the birth of new banks like Sacombank has welcomed the wave of
economic growth and has great opportunities for future development.

This period also showed that the cooperative relationship between Vietnam and
international monetary and financial institutions (IMF, WB, ADB) was re-established
and opened. This was the perfect opportunity for the birth of banks to capture
international cash flows and global economic trends.
In Ho Chi Minh City, the cooperatives no longer unified, one by one disbanded.
Faced with this situation; three cooperatives including Lu Gia, Thanh Cong, and Go
Vap merged with Go Vap Economic Development Bank and the result was the birth
of Sacombank.
1.1.2.2. Development journey
Sacombank's nearly 30-year journey of establishment and development has
recorded many outstanding events, both success and failure. Those are its marks and
valuable lessons. It is a premise for Sacombank to improve and grow stronger in the
country and the region.

GROUP’S NAME: 07

ADVISOR: HOANG HA


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a. From 1991 to 1999
Officially put into operation on December 21, 1991 with a starting capital of

VND 3 billion, the network operated mainly in the suburban districts of Ho Chi
Minh city, the business scope was monotonous. Sacombank made the right decisions,
creating good conditions for development in the following stages. In 1993,
Sacombank opened a branch in Hanoi. This was the first time a commercial joint
stock bank in Ho Chi Minh City established a branch in the Capital. At the same
time, offering promissory notes and implementing fast money transfer services from
Hanoi to Ho Chi Minh City and vice versa contributed to overcoming the use of cash
between the two largest economic centers in the country.
The turning point in this stage was the Bank's implementation of a
comprehensive reform policy on the management board and human resources
according to the advanced managerial model, which brought a new and modern
change.
The stage of starting a business also brought Sacombank a series of difficulties.
With a small amount of capital, but the Government had a new policy, the minimum
capitalization requirement for an Urban Bank was VND 70 billion. As Sacombank
itself was an Urban Bank, the enactment of this new regulation was a real challenge
that the entire management board and personnel must solve. Since its establishment 5
years, Sacombank's charter capital only reached nearly VND 47.5 billion. This
problem still could not be solved, the Bank had to face high overdue loans.

Challenge after challenge. However, Sacombank was the first bank in Vietnam
to offer initial shares to the public in 1996. At the price of 200,000 VND/share,
Saigon Thuong Tin Bank raised its market capitalization to VND 71 billion.

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b. From 1999 to 2001
Taking the lead in a new activity – Capital Issue. Sacombank was constantly
looking for solutions and solving problems that arise. At the same time, exploiting
the potential opportunities of this market.
To expand the market, Sacombank received capital contributions from foreign
organizations. Dragon Financial Holding (UK) contributed 10%. This solution raised
the bank's capitalization from VND 71 billion to VND 190 billion.
In addition to charter capital, Sacombank's scale also expanded and developed
as demonstrated in a series of newly established branches, increasing market share
throughout the country and at the same time cooperating with foreign organizations.
Specifically, Sacombank expanded its network to more than 20 provinces and key
economic regions, established relationships with more than 80 branches of foreign
banks around the world.
c. From 2001 to 2006
During this period, the set economic indicators and development goals were
fully and exceeded by the Bank. The success came from the fact that Sacombank had
received a capital contribution from 3 foreign shareholders that were developed
financial and banking institutions in the region and the world. This created favorable
opportunities for Sacombank to access advanced technology and modern
management experience, ready to integrate into the global economy. In addition, the
Bank initially successfully developed the model of joint venture and association
through capital contribution to establish a joint venture fund management company,
insurance company and securities company. Over 14 years, Sai Gon Thuong Tin is
one of the joint-stock commercial banks with the biggest charter capital in Vietnam,
increasing from VND 190 billion in 2001 to VND 1,900 billion in March 2006.
Branches spread from North to South with over 100 transaction points, building a

staff of 2,659 people, relationships with 6,700 agencies belonging to 200 banks in 80
countries around the world.

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d. From 2006 to until now
This is a period of strong development, the basic difficulties have been solved.
The market size continues to expand, more and more branches are established.
Relationships with credit institutions and banks around the world create favorable
motivation in global cooperation.
Regarding the stock market, Sacombank was the pioneer bank to list shares on
the Ho Chi Minh Stock Exchange (HoSE) with a total listed capital of VND 1,900
billion VND.
Starting to establish subsidiary companies, such as Sacombank-SBR
Remittance Company, Sacombank-SBL Financial Leasing Company, SacombankSBS Securities Company... Expanding more fields such as jewelry business –
Sacombank-SBJ Jewelry Company.
In network expansion activities in Indochina, Sacombank was still the leading
bank when it opened a branch in Laos. In June 2009, opened a branch in Phnom
Penh. This activity contributed to promoting the economic trade of enterprises of the
three countries.
As of March 31, 2021, the Bank's charter capital reached VND 18 852 157
million. Sacombank issued 1,885,215,716 ordinary shares, with par value of VND
10,000. As for the operation network, the Bank had 1 headquarter, 109 branches and

443 transaction offices in provinces and cities across the country.
1.1.2. Development orientation
Always putting customers at the center, customer satisfaction is what
Sacombank is still aiming for. With the following goals, the bank has been growing
steadily around the past 30 years and has become one of the most prestigious banks
in Vietnam.

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1.1.1.1.

Vision

With the aspiration to reach far and fly high, the Bank has a vision: To become
modern retail and multi-purpose bank in the country as well as in the Indochina
region.
Source: Sacombank
From a bank with a modest capital, Sacombank always strives and brings
ambition to expand its scale throughout Vietnam and especially the region. Up to
now, the banking system has been present in all provinces and regions of the country.
Sacombank has also established branches in Laos and Cambodia. The path to
implementing the vision took place according to the plan that the Bank had built.

The Bank has also succeeded with subsidiary companies operating in many
different fields such as asset management, jewelry,... A multi-functional bank is
increasingly affirmed.
The current vision is the guideline that guides all people at the Bank to work
together and strive to build a strong Bank. The staff, as well as the leadership, always
implement the lines and policies following the vision of the Bank.
1.1.1.2.

Missions

Sacombank's mission is to create the best benefits for customers with the most
complete products and services. Constantly innovating and overcoming weaknesses
and promoting advantages so that the Bank is a reliable place for individual
customers and businesses. The Bank prioritizes the training of an elite human
resources system with excellent human resource development policies. Equally
important are community- and social-oriented activities.
The following are the 4 missions that the Bank always aims to:
-

Optimizing full-service, modern and multi-utility financial solutions

for customers.
-

Maximize added value for partners, investors and shareholders.

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-

Bring career value and prosperity to employees.

-

Accompanying the common development of the community and society.
Source: Sacombank

1.1.1.3.

Core values

To bring customers to the Bank, Sacombank has introduced a system of core
values to attract attention and affirm trust and credibility when customers use
banking services:
-

Pioneers open the path and boldly face challenges to continue the success.

-

Innovative and dynamic for sustainable development.

-

Commitment to quality is the principle of conduct of each member in

customer service and partnership.
-

Making a difference with innovative breakthroughs in business and

executive management.
Source from Sacombank
The values that the Bank builds are aimed at maximizing the value for
customers, employees, and investors and demonstrating the highest sense of
responsibility in society to the community.
1.1.3. Organizational structure
As a large bank in the country, in order to maintain and organize activities
accurately, quickly and promptly, Sacombank must develop a reasonable, specific
and specialized organizational chart.
In general assessment of Sacombank's organizational chart, the Bank is
organized in a vertical functional structure.
Includes 2 apparatus:

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