(Luận văn tốt nghiệp tmu) improving loans service for smes of seabank – cau giay branch

TABLE OF CONTENTS
TABLE OF CONTENTS............................................................................................1
LIST OF TABLES.......................................................................................................3
LIST OF FIGURES.....................................................................................................3
ACKNOWLEDGEMENTS........................................................................................5
INTRODUCTION.......................................................................................................6
PART 1: OVERVIEW OF SOUTHEAST ASIA COMMERCIAL JOINT
STOCK BANK – CAU GIAY BRANCH AND MY INTERNSHIP........................7
1.1. Overview about Company: SOUTHEAST ASIA COMMERCIAL JOINT
STOCK BANK (SEABANK)......................................................................................7
1.1.1. Location and development..................................................................................7
1.1.2 Mission and vision...............................................................................................9
1.2. Host Firm: SeaBank – Cau Giay Branch..........................................................10
1.2.1. Location and development................................................................................10
1.2.2. Activities............................................................................................................11
1.2.3.Products.............................................................................................................. 11
1.3 Introduction of my internship.............................................................................13
PART 2: INTERNSHIP IMPLEMENTATION AT SEABANK –CAU GIAY
BRANCH.................................................................................................................... 16
2.1 The internship position, responsibilities and tasks............................................16
2.1.1 Department structure and my position..............................................................16
2.1.2 Business procedure and my responsibilities......................................................17
2.2 Some business cases.............................................................................................17
2.2.1

Case No1 (failed - customer risk)..................................................................18

2.2.2 Case No2 (failed – customer’s needs)................................................................19
2.2.3 Case No3 (successed).........................................................................................21
2.3 Commercial results..............................................................................................23
2.3.1 KPI at SeaBank..................................................................................................23

2.3.2 Key performance of host firm............................................................................24
2.3.3 My commercial results.......................................................................................25
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PART 3: INTERNSHIP ASSESSMENT.................................................................27
3.1 Difficulties and proposed solutions.....................................................................27
3.1.1 Difficulties..........................................................................................................27
3.1.2. Solutions............................................................................................................ 27
3.2 Experience gained and future career plan.........................................................27
3.2.1. Experience gained.............................................................................................27
3.2.2 Current personal skills.......................................................................................28
3.3. My career plan in the near future......................................................................28
CONCLUTION..........................................................................................................29
REFENCENCES........................................................................................................30

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LIST OF TABLES

Table 1 : My internship plan at SeABank – Cau Giay Branch.....................................15
Table 2: Monthly business staff’s KPI.........................................................................23
Table 3: Loans sales revenue of SeaBank Cau Giay....................................................24
Table 4: My commrecial results...................................................................................25
Table 5: My career plan...............................................................................................28

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LIST OF FIGURES

Figure 1: Organisation chart of SeABank......................................................................8
Figure 2: SMEs credit department structure.................................................................16
Figure 3: Debit balance structure according to term in SeABank – Cau Giay.............24
Figure 4: My level of response SeaBank business staff’s KPI.....................................26

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ACKNOWLEDGEMENTS
I would like to express my sincere and deep gratitude to Mr. Pham Tuan Anh,
Vietnam university of Commerce and Mrs. Marie Jose-Cambreling, Toulon University
for the valuable guidance and advice during the project.
Besides, i wish to extend my gratitute to Director of Southeast Asia Commercial
Joint Stock Bank with all staff at Enterprise Customer Department for support and
guidance give to me during my internship period, especially my instructor - Mr. Ta
Duy Truong who directly taught and responded all my question, provided me many
important documents and encourage me in my work.
Best regards!

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INTRODUCTION
For many recent years, countries with developed economy have respected the
development of SMALL AND MEDIUM - SIZED ENTERPRISES, because this
sector plays an important role in increasing income and creating jobs for labor, leading
to the progressive growth in GDP and GNI. Recognizing the importance of SMEs
towards the economy in the period of international economic integration, our country
has facilitated SMEs to develop; and in fact, SMEs have made great contribution to the
national economy. However, many SMEs still have to face many difficulties in capital
for production and operation. Meanwhile, there is limitation to the SMEs’ official
capital access from credit institutions. Many SMEs are obliged to use informal capital
mobilization channels with high interest rates, small amounts and instability.
Hence, I decided to select the research topic: "IMPROVING LOANS SERVICE
FOR SMEs OF SEABANK – CAU GIAY BRANCH"
The report consists of 3 chapters:
Chapter 1: Overview of the project.
Chapter 2: Intership implementation at Southeast Asia Commercial Joint Stock
Bank – Cau Giay branch
Chapter 3: Internship assessment

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PART 1: OVERVIEW OF SOUTHEAST ASIA COMMERCIAL JOINT
STOCK BANK – CAU GIAY BRANCH AND MY INTERNSHIP

1.1. Overview about Company: SOUTHEAST ASIA COMMERCIAL
JOINT STOCK BANK (SEABANK)
1.1.1. Location and development
Full name: Southeast Asia Commercial Joint Stock Bank
International transaction name: Southeast Asia Commercial Joint Stock Bank
Form of Company: Join Stock
Slogan: Linking life’s value
Address: 25 Tran Hung Dao Str., Hoan Kiem, Hanoi
Tel: (84-4) 3944 8688
Fax: (84-4) 3944 8689
Swift code: SEAVVNVX
Tax code: 0200253985

Headquartered of SeABank – 25 Tran Hung Dao Str.
- Southeast Asia Commercial Joint Stock Bank, SeABank was established and
operated in accordance with License No. 0051 / NH-GP issued by Governor of the
State Bank of Viet Nam on 25/03/1994; Business Registration Certificate No.
0103006488 issued by Department of Planning and Investment of Hanoi, the first
registration on 14/01/2005, the nineteenth registration on 31/12/2009.
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Headquartered at 25 Tran Hung Dao Street, Hoan Kiem District, Hanoi, with
over 2500 headcounts, and 5446 billion VND chartered capital, SeABank is currently
on Top 10 Big Commercial Joint Stock Banks and Top 7 Commercial Joint Stock
Banks which have the largest chartered capital in Vietnam, in which foreign strategic
partner Societe Generale owns 20% stock. In addition, two other strategic partners of
SeABank are VMS-Mobifone, which owns more than 6% of SeABank's chartered

capital and Petrovietnam Gas Corporation (PV Gas), which is one member limited
liability company belonged to Vietnam National Oil and Gas Group.
Board of shareholders
Board of shareholders
office

Board of Directors

Board of ALCO

Control Board

Board of credit

Management

Credit Departments

Internal control Department

Finance Department

Payment Centre
Legislation Department

Risk management Department

Retail and SMEs
Department
Communications Department

Capital resource Department
Technology Department
Enterprise customer Department

AMC

Training Centre

Transaction Offices
Branches

Securities Company

Figure 1: Organisation chart of SeABank

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- Geographical development :,
 ATM / POS network: Up to now, with a network of 330 Automated Teller
Machines and 423 Point of Sale (POSs) operating nationwide, SeABank is one of the
top 12 banks with the largest ATM and POS network in Vietnam. The SeABank ATM
& POS network is installed throughout the provinces
cities, in convenient locations for customers to trade.
 Branch network: Until December 2015,
 the SeABank’s system had a total number
 of 161 transaction points including the

 Head Office in Hanoi, increased 7 points
 as compared with the same period last year,
 with 39 branches and 121 transaction offices

 Credit card network
SeABank has successfully connected with the National
Circuit

Switched

organization

of

National

Payment

Corporation of Vietnam (NAPAS). With the acceptance of
cards belong to NAPAS, cards from two most popular credit
card organizations for instance Visa and MasterCard, and
three other international cards like Amex, Diners Club, JCB,
SeABank ranked in the top fifteen Bank in Viet Nam who has
a link with the six most popular card brands in the world.
1.1.2 Mission and vision
 Mission:
With aim of becoming a prominent retail bank in Vietnam, SeABank offers a
rounded set of banking products and services to individual customers, SMEs and large
corporations. SeABank is committed to maximizing benefits for customers, returns for
shareholders and ensuring sustainable development of the bank while contributing to

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the socio – economic development of the country.
 Vision:
SeABank desires to develop towards becoming a prominent retail bank of
Vietnam and advancing to the model of a modern multi-functional banking-finance
group with excellent product and service quality and corporate brand creditability.
 The main activities:
 Raising capital
 Loans
 International payments
 Others: Overseas remittance services, Card services
The core development strategy of SeABank in the future is building and
developing itself to become a typical retail bank in Vietnam; with the motto is
comprehensive, safe, efficient and sustainable development, contributing to the
prosperity of the country’s economy and society
1.2. Host Firm: SeaBank – Cau Giay Branch
1.2.1. Location and development
SeABank Cau Giay Branch was established in 2007 – at 249 Hoang Quoc Viet
Street. On 12/08/2015 in Hanoi, Southeast Asia Commercial Joint Stock Bank
(SeABank) and Intimex Vietnam SJC (Intimex) jointly opened a new headquarter of
SeABank Cau Giay Branch in Oriental Westlake Building. - 174 Lac Long Quan, Buoi
Ward, Tay Ho District, Hanoi.
SeABank Cau Giay is one of the branches which are highly estimated by
customers for service quality and transaction processing time. In the first 6 months of
2015, SeABank Cau Giay was the leading branch of personal loan sales in Hanoi, its
credit reached 95% and the capital mobilization reached 98% of plan.

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(The staffs of SeABank – Cau Giay )
1.2.2. Activities
Cau Giay Branch now has nearly 100 staffs, 8 underlying transaction offices and
serves approximately 400000 personal customers and enterprises in this region.
Together with other SeABank transaction offices in North Region, SeABank Cau Giay
plays an essential part in supplying professional and modern banking services of
SeABank to various customers in Cau Giay District and its vicinity.

(Customers are doing transactions in SeaBank – Cau Giay)
1.2.3.Products
- For Individual Customer
 Daily Banking
 SMS & Email banking
 Mobile Banking Banking from distance (SeANet)

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 Connecting with us 24/7 (SeACall)
 Inward remittance
 Make transfer within the country
 Set up an everyday account

 Cards
 Local derbit card SeABank VISA
 Credit SeABank VISA
 PlatinumSeABank MasterCard
 Savings
 Flexible withdrawal of principal deposit (SeASave Flexible)
 Elevator interest rate deposit (SeASave Elevator)
 SeASave TermSmart account (SeASave Smart)
 Floating interest rate account (SeASave Floating)
 SeASave Online service
 Future accumulation savings
 Loans
 Get cash on OTC/exchange-traded stocks
 Need money for yournew Car (SeACar)
 Need finance support for your study (SeAStudy)
 Get cash immediatly for sold stock
 Need money for your dream home (SeAHome)
 Need higher spending (SeABuy)
 Get cash on valuable papers
 International Transaction
 Western UnionInternational transfer incoming
 Western UnionInternational transfer outgoing
- For SME customers:
 Daily Banking
 Current account Payroll service (SeAPay)
 Receipt of domestic incoming money
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 Domestic outgoing transfer
 SMS and email banking (SeANet); online banking (SeACall)
 Short-term loan
 Short-term loan for supplementary working capital
 Credit line
 Financing import L/C
 Export L/C Finace (before delivery)
 Negotiation of set of documents
 Guarantee
 International settlement
 Receipt of incoming transfer from abroad
 Outgoing transfer abroad
 Issue of import L/C
 Import collection
 L/C notification, amendment and confirmation; L/C assignment
 Export collection
 Mid-and long-term loan
 SeACar Business
 Financing mid-term assets
 Loan for financing of long-term assets
 Deposit contract
 Card acceptance via EDC
1.3 Introduction of my internship
 Why the topic:
For many recent years, countries with developed economy have respected the
development of Small and medium – sized enterprises. so I chose this topic because of
the following reasons:

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- Towards banks:
 Lending is still the most profitable activity for commercial banks today.
Therefore, improving the efficiency of lending in general and the efficiency of lending
to SMEs in particular bring a competitive standing for banks.
 Improving the efficiency of lending to SMEs helps banks achieve two basic
goals: safety and effectiveness.
 Improving the efficiency of lending to SMEs will contribute to improving
lending management capacity of SMEs
- Towards SMEs,
 Supporting SMEs in implementing capital investment process seriously and
efficiently. When banks improve the efficiency of lending, it means that they strictly
appraise the lending conditions to customers for collateral assets, customers’
reputation, feasibility and effectiveness of the plan, investment projects
 Improving lending efficiency also means that enterprises use their loans in
boosting the production and business activities more effectively than before being
financed. When customers use the loan efficiently, they will be able to increase their
production capacity, expand their scale and generate more profits, thus the repayment
to the bank is guaranteed to be made accurately and sufficiently.
 Improving the efficiency of lending contributes to make enterprises’
production and business activities healthy. When enterprises receive loans from banks,
they will be supervised regularly and strictly by the banks. Therefore, enterprises
always have to respect the commitments with banks from the capital use to the
implementation of mortgage regulations.

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- My internship plan
Table 1 : My internship plan at SeABank – Cau Giay Branch
Date
From 22/2/2017
To 28/2/2017

From 1/3/2017
To 11/3/2017

From 13/3/2017
To 13/5/2017

From 13/3/2017
To 13/5/2017

From 15/5/2017
To 30/5/2017

Mission

Outcome
Mission 1:
Knowledge of:
Read and research the documents - Consumer lending procedure
about consumer loans services,
- The terms and the manner of
especially loans services for

lending
SMEs
- The loans services for SMEs:
SeACar Business, Financing midterm assets, Loan for financing of
long-term assets
Mission 2:
Skill:
Observe and learned
- Creat customers profile
communication skill from the
- Contact with customers
instructor in SeABank Cau Giay - Negotiate with the customers
Mission 3:
Skill and Experience:
Learn in particular how to
- Evaluate the customer financial
contact and negotiate with the
position
customers
- Identify customer risks,
understand the real needs of the
customer
- Propose a package deal consistent
with the customer
Mission 4:
Thoughts and expected solution:
Analyse the SWOT matrix of
- The SWOT matrix
SeABank Cau Giay in improving - Some propose solutions:
loans services for SMEs

Open the quality survey for old
customers and the campaigns to
attract new clients
Mission 5:
Complete my work placement
report

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- Knowledge of loans service for
SMEs of SeAbank Cau Giay
- Skills and experience for loans
service
- Career plan in the near future


PART 2: INTERNSHIP IMPLEMENTATION AT SEABANK –CAU GIAY
BRANCH
2.1 The internship position, responsibilities and tasks
2.1.1 Department structure and my position
- I have practiced in the credit department, in the SMEs team, under the direction
of Mr. TA Duy Truong. (SMEs credit manager).
The SMEs team has five permanent employees, excluding me.

Figure 1: SMEs credit department structure
- Job description of trade finance professionals:
 Searching, contacting, and marketing the main banking products and services,
developing potential customers and new customers SMEs;

 Receiving and managing the profiles of customers who registered for banking
services; taking care, solving feedback and keeping contact regularly with customers.
 Analyzing and estimating the customer's ability (field trips, information
verification);
 Proposing products and services and protecting proposal with approval level;
 Monitoring business activities, supervising the implementation of customers’
commitments;
 Identifying risks, taking main responsibility for debt recovery.
 Performing other duties as leaders of division / department assigned.
During my internship, I have chance to work in a professional, friendly,
comfortable and bright environment. About the facility, the room is equipped with full
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of modern equipment: computers, phones, air-conditioners, printers and other
stationeries, etc. About colleagues, people in the department are friendly, humorous,
enthusiastic, active and skillful. My working time is on Monday, Wednesday, and
Friday. I am always on time and I have to have a clean and neat appearance. I comply
with the rules and regulations of the bank.

(The SMEs team – credit Department)
2.1.2 Business procedure and my responsibilities
During my internship, I read and studied some documents on lending activities,
procedures as well as terms related to other services of branch. I focused on the topic
of lending to SMEs based on documents provided by the staff as follows:
+ Regulations on lending at SeABank including lending procedures, lending
conditions and lending methods, etc.
+ Documents applied for lending at SeABank - Cau Giay Branch.

+ Income comprehensive report and annual report of SeABank - Cau Giay branch
My assignment is to read the documents in order to understand deeply about the
lending process as well as lending guarantees for SMEs. I am also in charge of checking
and arranging customer profiles, implementing assigned tasks to help other members,
copying and sending information, documents among departments in the branch
2.2 Some business cases
Currently, SeABank - Cau Giay provides SMEs loans following the proposed
regulations to ensure the consistency throughout SeABank system. According to this,
the lending procedure is regulated strictly, clearly, it guarantees the safe, effectiveness,
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convenience and unity of application. Lending procedures at SeABank - Cau Giay can
be summarized with the following steps:
Step 1: Making loan agreement contract
Step 2: Appraising and making statement to propose for credit
Step 3: Making credit decision
Step 4: Completing the profile, loan disbursement
Step 5: Credit supervising
Step 6: Liquidating the credit contract
My responsibility is to receive customer profiles from employees, check and
contact to fulfill all the required documents for the loan. Then I will transfer the
profiles to people who are in charge.
2.2.1 Case No1 (failed - customer risk)
 Products: Loan for financing of long-term assets
- Customer: CUONG THINH CHEMICAL & SCIENCE TECHNOLOGY
EQUIPMENT COMPANY LIMITED
- Address: No. 225, Group 6, Cau Dien Town, Tu Liem District, Hanoi

- Type of company : Limited Liability Company
- Main business activities: Trading laboratory chemicals, industrial chemicals
- Capital: VND 4.800.000.000
- Legal representative: Mr. Nguyen Viet Cuong- General Director
 The purpose of loan: Trading laboratory chemicals, industrial chemicals
 Adress of house: Apartment No. 211, Hado Park View Building, Dich Vong
Urban area, Cau Giay District, Hanoi
 New house’s value: VND 3.834.206.000
 The loan amount need: VND 2.600.000.000
 Loan Period: 10 years
 Collateral: Apartment No. 211, Hado Park View Building, Dich Vong Urban
area, Cau Giay District, Hanoi
 In spite of the fact that it is not a big enterprise, after 7 years of
establishment, the company has a stable position in the market. With more than 200
chemical goods and auxiliary equipment and a network of more than 50 traditional
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customers in major cities in export processing zones, industrial zones, research
institutes and non-governmental organizations. Moreover, while doing the business,
the Company has established a number of large and well-known suppliers in the world
and region, and always ensures the stabilization in quality and quantity when the
company expands and develops business
 Financial ratios indicate that the company has a good financial position and
is capable of repaying its debts
 Negotiations and result
After discussing with both parties and receiving customer records, Ms. Ha was
assigned to conclude this profile and I was responsible for finding documents and

supporting Ms. Ha. During the asset appraisal process, we have found that the
company has some incomes which have not had clear declaration and taxable.
On the second day after receiving the application, I contacted the company to ask for
additional documents but they still have not had declared the information added because
the director of the company was working aboard and was not available in Hanoi.
I sent the information to Ms. Ha to ask for advice from the Director of the Bank
=> Through the process of reviewing and discussing: Because of the lack of
documents and declaration report, SeABank could not grant loans to Cuong Thinh
Chemical and Science technology equipment Co,. Ltd.
2.2.2 Case No2 (failed – customer’s needs)
 Products: SeAcar Business
 Customer: Thang Long Chemical Joint Stock Company
- Address: Level 4 – Star Building, No.214 Hao Nam Street, Dong Da District,
Hanoi.
- Type of company : Joint Stock Company
- Main business activities: Trading industrial chemicals
- Capital: VND 16.176.000
- Legal representative: Mr. Doan Khac Thinh - General Director
 The purpose of loan: buy car
 Type of car: ISUZU FVR34Q
 New car’s value: VND 1.200.000.000 (Full option cost after tax and fee)
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 The loan amount need: VND 960.000.000
 Loan Period: 5 years
 Collateral: ISUZU FVR34Q
 Currently, Thang Long Chemical Joint Stock Company is one of the leading

suppliers of chemicals, additives and materials for the industries of plastics, paints,
paper, rubber,… in Vietnam. The company has the desire to find, develop and
distribute high quality chemicals that are economical and conducive to industry
growth. However, in recent times, the demand of the output market is still higher than
the supply capacity of the company. The products which are provided by the company
on the market have not shown significantly change in terms of quality. They somehow
reduce the competitiveness of domestic and foreign competitors.
According to CIC recent report dated 06/03/2017, Thang Long Chemical Joint
Stock Company has surplus medium-term loan at Southeast Asia Commercial Joint
Stock Bank with the amount of 320 million dong..
 Negotiations and result
After the Thang Long Chemicals Joint Stock Company has requested to borrow
money to invest in purchasing vehicles, SeABank immediately sent people there to
discuss. Once again, I had a chance to support Ms. Ha in dealing with the transaction
contract.
On the exchanging process, I found some dissatisfactory points in the company’s
loan request. Under the provisions of SeABank, an individual customer cannot borrow
more than 75% of the new car's value. He wanted to borrow VND 960,000,000. So the
company wanted to borrow up to 80% of the new car's value..
I recognized that this loan will not be approved, so I arranged an appointment for
the next meeting to try to solve this problem. After consulting Ms. Ha, I contacted the
company again to inform them about the current status of the loan and clarify the
further terms and conditions of SeABank.
I have suggested several alternatives such as choosing a car with lower value to
match the amount available as well as the amount borrowed or borrowing some
friends, relatives so that the money needed to borrow would be less than 75% of the
value of the new car.
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