EVALUATION OF CONSUMER LENDING ACTIVITIES AT VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

INTERNSHIP REPORT/VO THI KIM NGAN
Dedication
I dedicate all my efforts and struggles of the educational life of my dear parents who
help support and guide the course of my educational life, without them I’m meaningless.
Also I devote the work of this internship report on Agribank report, as respectable and
honorable teachers who teach and support me develop my personality as a competent
professional. My all internship work is dedicated to following employees of
Agribank. They are too much supportive and teach me how to learn a practical life. They
always give me different tasks which bring more knowledge to me and guide me how to
accomplish these tasks.
Acknowledgment
To finish this report, I am deeply grateful to all those who have shared ideas,
valuable comments and encouragement during my writing of this paper.
First of all, I would like to express the deep sense of gratitude to my supervisor, Ms.
Nguyen Hong Mai for her useful guidance, critical comments and valuable suggestions
on this report. Without her help, this report could not have been completed.
Besides, my sincere thanks are also given to the Faculty of English for Banking and
Finance, Banking Academy for the devoted teaching of all the lecturers and for giving me
the knowledge and studying methods. Their teaching not only helps me gain valuable
knowledge and skills during 4 years but also lays the foundation for my future work.
Next, I would like to express my special thanks to the staff at the Agribank fifth
transaction department of Cau Giay Branch for their big support so that I could finish my
internship there and finish the paper successfully.
Last but not least, I wish to extend my thanks to my family and frinds for their
support, contribution and encouragement in the making of this report.
However, owing to my lack of experience and knowledge as well as the limited scope of
the research, some shortcomings and mistakes are unavoidable. Please kindly take into
account.
Executive Summary
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Nowadays, banking is one of the most important financial channels for the
economy. Improving and expanding banking activities are the orientation and guideline
for banks to survive and grow in the increasingly fierce competition. Among that, credit
activity is a vital field in the bank and decides most of other activities in the national
economy. It is also a main source of creating profitability and decides the existence and
development of the bank.
For a long time, most banks only focused on lending the production business but not
much paid attention to the final stage of producing – consuming. Actually, when society
increasingly grows, not only the enterprises need capital to make business and expand the
current market but the individual need more capital than ever before as well. People’s
living standards are more and more improving, not only in need of basic necessities like
food, clothes but also tons of needs both in mental and physical life.
People’s psychology has changed now, which considered borrowing as the need to
use the goods before liquidity. To meet that need, banks have developed a new credit
mode: consumer loans. It contributes to raise bank’s revenue. It means consumer loans
help individual obtain capital to improve their lives.
After studying the activities of AFTD for a period of time, I found out that the bank
was concerned about the consumer loans. However, it has not been actually the major
activity of the bank. Therefore, continuing research and offering solutions would bring
enormous significance for both theoretical and practical aspects for the diversification of
the bank’s activities. For this reason, the issue “EVALUATION OF CONSUMER
LENDING ACTIVITIES ATVIETNAM BANK FOR AGRICULTURE AND
RURAL DEVELOPMENT” has been chosen for my internship report.
This report mainly aims at:
• Referring factors affecting the development of consumer loans
• Analyzing figures and data relating to the operations of consumer loans at AFTD
• Describing the AFTD’s current situation of consumer loans
• Evaluating the effectiveness of those activities
• Suggesting some solutions to improve the branch’s competitiveness.
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Methodology
1. Desk research: the study is based on figures and information from AFTD of Cau Giay
branch’s internal data and theory mainly from David Cox (1997), Modern Banking
Operations
2. Other secondary data: information of Agribank, AFTD, Vietnam’s economy and
policies, etc were collected from the TV, internet, newspaper, magazines …
3. Primary data: Interviews to executive managers at the department of Credit Activities
in AFTD, as well as staff who directly involves in consumer loans operations.
Hanoi, April 29
th
, 2014
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TABLE OF CONTENTS
TABLE OF CONTENTS 4
List of tables 5
List of figures 6
Part 1: Introduction about Agribank 7
1.1.Overview of Agribank 7
1.1.1.Brief history 7
1.1.2.Nature of the organization 8
1.1.3.Business volume 10
1.1.4. Main products and services 10
1.1.5. Competitors 11
1.2. Organizational structure 12
1.2.1. Organizational chart 12
1.2.2. Number of employees 13
1.2.3. Main offices 14
1.2.4. Introduction of all departments 14

Part 2: Description of the internship 16
2.1.The establishment of Cau Giay Branch of Agribank and the fifth transaction department
16
2.1.1.The establishment of Cau Giay Yen Branch of Agribank 16
2.2.Internship activities 17
2.2.1.Training phase 17
2.2.2.Internship contents 18
2.2.3.Internship process 18
2.3.Critical analysis 18
Part 3: Recommendations & Conclusion 21
3.1. Some recommendations for the development of consumer lending at AFTD 21
3.2. Conclusions 25
Reference 27
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List of tables
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List of figures
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Part 1: Introduction about Agribank
Understanding the importance of the internship to the later professional career, I
chose the fifth transaction department – Cau Giay Branch, directly under the control of
Vietnam Bank for Agriculture and Rural Development as my internship location from
February 25
th
to May 18
th
, 2014. It is really an ideal working environment for me when

my major is English – Finance and banking. Following is the general introduction of my
internship milieu.
1.1. Overview of Agribank
1.1.1. Brief history
AGRIBANK (Vietnam Bank for Agriculture and Rural Development) has become
one of the leading commercial banks playing a major role in making investment in
agricultural economic development in rural areas, together with other sectors of Vietnam
economy.
• Full Name: Bank of Agriculture and Rural Development Vietnam
• International transaction name: Vietnam Bank for Agriculture and Rural
Development
• Abbreviated name : AGRIBANK
• Headquartered at: 18, Tran Huu Duc, My Dinh, Tu Liem, Hanoi.
• Website: www.agribank.com.vn
• Email:
Agribank's milestones in development:
1988: Established under the name of Agricultural development Bank of Viet Nam by
decree No. 53/HDBT dated 26 March, 1988 of the Council of Ministers (now the
Government).
1990: Changed name to Vietnam Bank for Agriculture (VBA)
1991: Established the representative office of Vietnam bank for Agricultural in Ho Chi
Minh City.
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1992: established VBA provincial branches.
1994: Approved new innovative management system model of the Agribank and began
to be organized into a State-owned Corporation.
1996: Changed name to Vietnam Bank for Agriculture and Rural Development
(AGRIBANK)
2001-2010: Implemented the plan of bank restructuring.

2001: Became the leading commercial bank in Vietnam, with the most extensive network
of branches in rural areas.
2002: Became a member of APRACA and the Confederation International du Credit
Agricole (CICA).
2009: Utilized modern information technology to develop and introduce modern banking
products and services, payment connectivity with the State Treasury, in coordination with
Taxation and Customs Offices for the collection of state budget;
2010: Be in Top 10 of 500 largest enterprises in Vietnam and continuously to be the
largest Financial Institution in Vietnam.
2011: Completely changed into Ltd company with 100% capital of state and became the
leading credit institution for pilot lending for the new rural construction
2012: Won the title such as: Top 10 biggest enterprises in Vietnam – VNR500; Top
ASEAN Enterprise, Top brand name of ASEAN; Top Bank for Payment; Top Banks of
Vietnam.
2013: Held the 25 year universal (March 26, 1988 – March 26, 2013)
1.1.2. Nature of the organization
Agribank was established by Decree No. 53/HDBT dated 26 March, 1988 of the
Council of Ministers (now the Government) with the reform of the financial system and
the introduction of commercial banks in Vietnam.
The Agricultural Development Bank of Vietnam was created out of the State Bank of
Vietnam (SBV). After being established in November 1990, the Vietnam Bank for
Agriculture was by law a legal entity having universal banking functions with major
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focus on agricultural sectors and rural areas, and responsible for its own finance,
operations.
On 30 July, 1994, by Decision No.160/QD-NHN9, The Governor of the State
Bank of Vietnam approved new innovative management system model of the Agribank,
on that basis, the General Director of VBA specified in writing in document No.
927/TCCB/VBA dated 16 August, 1994 which detailed as: the Vietnam Bank for

Agriculture had two levels: Advisory level and Operational level. This was truly a turning
point in the organizational structure of VBA and set the foundation for business
operations of the existing Vietnam Bank for Agriculture and Rural Development.
On March 7
th
, 1994 pursuant to the Decree No 90/TTg of the Prime Minister, VBA
began to be organized into a State-owned Corporation with the organizational structure
consisting the Board of Directors, General Director, assisting apparatus including
apparatus for internal control, subsidiaries including dependent accounting business units,
independent accounting business units, and executive and non-executive functions were
clearly separated, in which Chairman of Board of Directors and General Director were
two separate roles.
On 15 November, 1996, under the new name, Agribank is allowed to carry out
commercial banking activities but with a focus on investment for agricultural sector and
rural areas by providing medium and long-term loans for infrastructure development,
particularly agriculture, fishery, forestry, contributing to the cause of industrialization and
modernization of agriculture and rural development. In 2002, Agribank expanded
operation at home market as well as strengthened international relations.
In the context of the world economy and Vietnam in particular facing many difficulties in
the economic crisis, Agribank remains sustainable development and growth. Agribank
had the total assets of VND 617,859 billion (approximately 20% GDP), rose by 10%
compared with 2011. As the biggest commercial bank in Vietnam in terms of fund
resources, assets, and the bad debts are controlled.
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1.1.3. Business volume
2013 (VND billion)
Total asset 560,000
Total fund resource 513,000
Equity 29,605

Total outstanding loans 469,000
Table 1: Business volume
Operating network: 2,400 branches and transaction offices nationwide; 1,033
correspondent banks in 92 countries and territories and a customer base of over millions
customers. • Personnel: 42,000 staffs
1.1.4. Main products and services
- Accounts and deposits: accepting deposits and mobilizing savings with the diver,
attractive interest rates such as promissory notes, bonds, certificates of deposit
- Loans: lending in short, medium or long term, daily life consumption, investment
trusts; mortgage lending by valuable papers, co-sponsored loans, lending by issuing
credit cards
- Guarantee: implementing businesses; payment guarantees; bid guarantee;
contract performance guarantee, contract of guarantee, guarantee confirmation.
- Domestic payment services: domestic money transfer services, service of
collection and payments; state budget collection services, bill payment services,
automatic collection services
- Securities: the point of providing Agriseco’s services, implementing transactions
of opening accounts, securities registration, securities trading
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- Foreign Exchange Services: import and export payments under the credit
methods such as L/C; cash transfer; foreign currency trading; remittance payment ;
currency exchange
- Border payment with Laos: including bank drafts, cross-border money transfers
documents, trading transaction payment, deed of trust and e-transfers, letters of credit and
letters of trade border payment guarantee letter.
- Card Services: issuing domestic debit card (success); international debit card
(master/visa debit); International credit cards (Master/Visa credit); business card set
- Electronic banking (e-banking): mobile banking services (VnTopup - phone
recharging services via SMS, SMS banking; Atransfer – SMS money transfer service);

VnMart services, internet banking; Apaybill
- Insurance: Security credit insurance; Insurance for international cardholders,
cargo insurance, fire insurance; insurance of automobiles, motorcycle, human; other
kinds of insurance.
- Other services: provide account information; automatic salaries paying and
receiving service; safe leasing services; consulting services and other services
1.1.5. Competitors
There are many banks in section:
- BIDV
- ACB
- Vietcombank
- Vietinbank
- Sacombank
AGRIBANK BIDV ACB Vietcomban
k
Vietinbank Saccombank
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Equity 29.605 24.390 12.262 42,386 54.075 16.703
Total
Assets
671.846 550.000 167.000 467.761 576.368 160.169
Table 2: Equity and total assets of Agribank in comparison with the competitors
1.2. Organizational structure
1.2.1. Organizational chart
With a long history of development, Agribank affirms its prestige day after day
through a diversity of areas: Wholesale banking, retail Banking & network, Treasury,
Risk management, finance and Accounting, Operations and Business Supports. For
more logical and clearer view on Agribank’s organization structure, please take a look
at Figure 1 :

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Figure 2 : The organization structure of BIDV
1.2.2. Number of employees
Agribank is the commercial bank having the largest number of employees in
Vietnam’s banking system with the total number of 42,000 employees as of 31 December
2013. Agribank has always placed a high priority on human resources training and
development. Human resources training and development are considered the decisive
factor in the success of all activities.
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1.2.3. Main offices
1.2.4. Introduction of all departments
Director is responsible for selecting, monitoring, and evaluating competent
management; establishing business strategies and policies; monitoring and assessing the
progress of business operations; establishing and monitoring adherence to policies and
procedures required by statute, regulation, and principles of safety and soundness.
Deputy General Director helps the Director to guide some banking operations,
and takes responsibility for his actions to Director and Law; represent Director to manage
authorized duty; take part in complementing obligations in concord with principle of
democratic centralism.
Accounting-budgeting Department- entering into account directly; making
financial plan, drawing the balance sheet; conducting payment to budget and settlement
in concord with regulation; managing, using technology devices, informatics to support
for business operation.
Computing Department – recapitulating, count and store data, information
relating to bank’s activities; handling arising operations that are in relation to posting,
statistic accounting; complementing reporting regime, statistics and information in
concord with regulation; manage, maintain and repair informatics devices.
Personnel -Administration Department- creating monthly and quarterly business

plans; advising legislation about contract commitment, contentious business, civilian,
criminal, financial dispute, etc; manage stamp directly; complementing administrative
work, stationary, transport, security, medical; conducting payment and insurance regime,
managing and completing employee profiles.
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Credit Department – directly managing capital balance; acting as an counselor for
the Director about resolution of capital development, short-term, medium-term and long
term business plan; taking responsibility for risk management; recapitulating, monitoring
business goals, analyzing quarterly and yearly business activities.
Interior supervising Department – making plan in compliance with inspection;
partially summing up and totalizing subjects to report the result timely; a rational clue
with examinant and inspector.
International payment department – conducting global business activities,
international payment; international payment via SWIFT; credit, foreign currency
undertaking in relation to international payment, remittance, transferring money, opening
foreign-based account services.
Service and Marketing Department – transacting with customers, marketing
products, receiving clients’ feedback about the services; proposing, taking part in service
improvement strategy; complementing marketing strategy, information propaganda,
building up brand launching plan.
1.2.5. Comments on the organizational structure of Agribank
Agribank has totally more than 2300 branches and 9 subsidiaries. It can be said
that, with the number of branches and subsidiaries, Agribank needs a very complicated
organizational chart to describe accurately the operational structure. However, the
organizational chart that I was given is not such comples. Clearly, it modifies generally
the system but in my opinion it is too simple and not infomative enough.
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Part 2: Description of the internship

2.1. The establishment of Cau Giay Branch of Agribank and the fifth transaction
department
2.1.1. The establishment of Cau Giay Yen Branch of Agribank
Agribank Cau Giay Branch was established in 1997, separated from Agribank Tu
Liem branch in Hanoi and changing into level 2 branch under the control of the bank for
Agriculture and Rural Development in Hanoi. Right from the beginning of its operation,
though was difficult due to the lack of manpower and facilities , but the leadership and
staff of the branch has made great efforts to achieve good results and significant
contributions to the development of Agribank. In 2004, the branch moved to new
headquarter at 99 Tran Dang Ninh with full equipment has facilitated to expand more the
operations of the branch, creating momentum for the future development. On 12/01/2006,
the State Bank of Vietnam issued Decision No. 35 upgrade Cau Giay Branch of Agribank
from branch level 2 to level 1 belonging Agribank. From which, on 13/01/2006, CEO of
Agribank has issued Decision No. 28 which is about official establishment of level 1
branch - Cau Giay Branch. The branch celebrated opening ceremony and has officially
operated since 20/3/2006. At the beginning, the branch operation only has 31 employees
and 4 the transaction departments. Until now, it has had more than 100 employees and 10
affiliated transaction departments.
2.1.2. The detailed description of the fifth transaction department
- Board of director consists of one Director and one Deputy Director. Director
takes the most jurisdictional and the biggest responsibility about business activities,
manages all employees, schemes, commend and reward activities. He also undertakes
mobilizing practice for firms depositing at the transaction office, directly assesses and
signs under-one- billion loans to organizations, persons, household, as well as appraising
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loans that are out of his ruling before submitting to Tu Liem branch for credit agreement.
Director signs under the direction of Agribank’s General Director.
Deputy Director appraises, makes loans to customers whose debit balance is less than 700
million (equivalent to 70 percent of Director’s jurisdiction) in case of Director’s absent.

Simultaneously, he is in charge of accounting, monetary in the store and managing ATM.
- The function of Credit department:
 Takes responsibility for credit operations, transact with customers who are person, co-
operative or firm to market, finance, take care of their clients as well as consult
services, products of the bank.
 Manage credit products, introduce and sell products in accordant with regime of state
bank of Viet Nam and instruction of Agribank Viet Nam.
 Assess , determine, manage credit line of customers, conduct credit operation and
one-way transaction
 Update customer’s information, analyze business activities, financial ability, cash
flow into IPCAS II System
 Conduct internal credit rating to quarterly and yearly loans of clients.
- The function of Accounting Department
 Offer banking services relating to settlement, post into account one-way transactions
 Open or close accounts, implement check selling, open ATM card, deposit or
withdraw saving money, trading foreign exchange, etc.
 Manage and take responsibility for transactions on computer, cash on hand; maintain
e-settlement systems of the transaction office during its operation.
 Check closing entries of all tellers.
2.2. Internship activities
2.2.1. Training phase
Table 1 : Training timetable
Time Task
25/02 – 06/03
Outlining the internship, understanding the background
theory in lending activities.
06/03 – 20/3 Carefully observing activities of lending.
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20/03 – 28/04 Practicing to issue the models of customers.

29/04 – 18/05
Accomplishing the internship report and asking for
certification of Internship.
2.2.2. Internship contents
As obviously be seen from the above schedule, the major content of my internship
was getting familiar to
2.2.3. Internship process
2.3. Critical analysis
In the internship process I got practical experience that does not meet the
theoretical concepts in Agribank Program. I present here some critical analysis:
STRENGTHS
The making credit loan activities in the Agribank fifth transaction department-
Cau Giay branch have achieved positive results in the past years.
• There is a wide variety of service packages in both quantity and quality. Credit loans
tend to expand over the years 2012 and 2013. There is also an increase in loan sales
outstanding debts.
• The quality of credit loans is gradually guaranteed with the delinquency rate
decreasing and most customers being able to pay interest and the principal on time.
• The profits on credit loans see growths in both quality and quantity.
• The market share of consumer loans at the AFTD is constantly increasing. This
signals that this branch is increasingly building its reputation with its customers and
enhancing its competitiveness in the banking sector.
WEAKNESS
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• Though consumer loans has grown rapidly in recent years, when compared with the
total outstanding balance of the whole bank, this rate still accounts for a very small
part; thus, its revenue is also not high.
• The size is small compared to the potential market as well as the response of the bank
• The product structure does not really meet the actual needs. In fact, the branch focuses

on only loans for repairing houses or car loans without paying much attention to loans
for studying abroad and other loans (such as certificates of deposits and credit cards)
• The regulations on interest rate and secured assets are still rigid. The bank only
applied a fixed interest rate for all customers, regardless of new or old customers. It
has not been encouraging customers who wish to have a long relationship with the
bank. Moreover, the bank usually requires secured assets of great value. It interfered
with the access to capital of the bank. Customers are namely those who have
relationships with employees in the bank. The bank does no actively seek for potential
customers.
• The repayment period is generally shorter, which leads to a competitive disadvantage
for Agribank because customers cannot afford to repay.
• The market interest rate constantly fluctuates, thus consumers will be disadvantaged if
they do not predict the degree of variation in interest rates.
OPPORTUNITIES
- There are many enterprises operating in the area.
- The branch is located in the district center- favorable geographical location to
conduct banking activities. About the fields of operations: within the legal scope
allowing AGRIBANK AFTD – Cau Giay branch to perform and regulation of
AGRIBANK.
- The branch has a trust and reputation of many company and local people, which
creates chances to enhance the lending demand and profitability.
THREATS
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- There are many other transaction office in the same sector so the branch have to
face stiff competitions.
- The tight monetary policy of the State to curb inflation causes the difficulty for
customers in accessing the bank capital.
- Staff moves to other private banks because they have better working conditions.
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Part 3: Recommendations & Conclusion
3.1. Some recommendations for the development of consumer lending at AFTD
The AFTD is a part of the whole Agribank system, but obviously, the development
of AFTD in consumer loans contributes the growth of the whole system. So, what are the
solutions that help AFTD not only meet and expand the amount of customers both in
quantity and quality but also further strengthen the operations of consumer loans. Based
on the research on consumer loans and the real situation at AFTD, I would like to offer
some suggestions to promote the consumer loans as follows:
3.1.1. Perfecting the policy of information, research and
investigation on factors related to consumer loans
The bank staff needs to study and fully understand the general information of
macro context to consumer lending activities. Those are all about guidelines and policies
of the government about both the economic - social changes and the financial – banking
sector domestically and internationally. Consumer lending activity is sensitive to the
fluctuations in economic, political, social changes; so, the macro information will hold
the important part in the development of consumer loan in the bank.
Also, AFTD needs to investigate the factual cases of competitors’consumer
lending. In reality, most domestic banks including state- owned banks or joint- stock
ones, conduct consumer loans activities extensively. The head office should collect
information on products, customer strategies, etc of the competitors and then conduct
research, analyze the advantages and disadvantages of rivals’ products, then, develop the
best strategy for its own products.
Besides, AFTD should also focus on investigating, collecting and analyzing
information about customers. The branch can get the information in different ways,
through interviews or survey. From this, AFTD can look into the existing customers to
find out their responses or their real needs.
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Collecting and analyzing information comprehensively and accurately gives the

basis for AFTD to find out appropriate strategies to build up personal credit activities in
the future.
3.1.2. Developing a proper and attractive strategies for consumer loans to customers
For the easy access of customers to the bank's capital, the most convenient and also
ensuring the benefits and efficiency of business, this branch should have right and
attractive strategies to customers such as:
• Implementing flexible price policy: In order to develop lending activities, banks
must raise capital corresponding to the demand but still within the range allowed by the
State Bank. Therefore, the interest rates are high or low depends largely on the interest
rates of banks. From the above fact, Agribank needs to develop appropriate pricing
policies for both mobilization and loans to ensure profits for bank and the customer
benefits.
• Controlling lending interest rates: using flexible rate corresponding to the
quality of service (because the customers of TCB are individuals who have high income).
This means that depending on the object to the loan and depending on the period that
AFTD can adjust interest rates fluctuating within the range allowed not only to cover the
cost, but also to bring profit to the bank.
• Improving the consumer loans products of bank
Product list of banks is quite similar because the bank's product is easy to
assimilate. So, it should find a new direction by providing superior products, which
would be an advantage to any bank. Most banks are interested in direct rather than
indirectly consumer loans activities because this method is safe and has greater
proportion. This is not entirely accurate because consumer lending income is from
operations includes income from directly and indirectly consumer loans.
3.1.3. Developing marketing strategies
Bank marketing took place quite late in Vietnam, and the effect of bank
marketing applications are somehow limited, mainly concentrating on the surface such as
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advertising, promotion while, other major determinant activities in marketing strategy

such as customer research , image positioning, quality of banking services upgrade is a
few. This happens not only in Agribank but also most of the Vietnam commercial banks,
which have not totally realized the importance of marketing in banking activities. Thus,
AFTD should take the following some measures to improve the effectiveness of
marketing in AFTD as below:
• Marketing philosophy should be penetrated into all departments and all employees in
the bank.
• Establishing functional marketing department to propose the proper marketing
strategy, a staff with full of knowledge and experience in marketing.
• Building and keeping good relationships with key customers including existing
customers and potential ones
• Expanding and upgrading service quality
Besides, the department of customer service should develop a long term customer
strategy. The staff should build an integrated business strategy such as market analysis,
competitor assessment, internal bank operation, etc, collects all the necessary
information, then predicts what the market is happening. To have the efficient results, it
needs a synchronized coordination and mutual assistance between credit officers and the
staff of other departments.
3.1.4. Keeping developing continuously banking technology
AFTD always determines clearly technology as an effective tool to integrate more
easily and successfully with the world. Only by advanced technology can the branch
design products with high quality, multi – function and cost saving, especially human
resource cost which tends to increase more and more in the competitive context of
Vietnam today. Besides, modern technology is an important factor in the application of
modern management model.
To the field of consumer lending, at AFTD, the implementation of managing loan
and interest, collecting debts, etc was done entirely on the computer, contribute to raise
the labor productivity of the credit staff and reduce the customers’ transaction time. That
is only the management process after lending, the bank has still carried out loan
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procedures entirely manually. AFTD should use the automatic credit scoring system for
the decision on making loans to customers.
3.1.5. Improving the quantity as well as the quality of the human resources
Firstly, they have capability of predicting the economic issues, as well as the
development prospects of credit operations .This is the personal vision but it does affect
the overall operation of the bank. From personal experience has been the accurate
prediction, it is the creation of credit officers.
Secondly, they also should have the prestige in social relations. This represents
moral qualities and communication skill of credit officers. It plays an important role in
the expansion and retains the traditional customers of the branch. In addition, credit
officers should have self-study capability as well as work independently. These are
necessary qualities for the job of a credit officer.
Last but not least, when performing compliance professional, credit staff should
avoid moral hazard and occupation. This is also an important quality required for each
staff, as it not only affects the prestige of credit staff, but also the image and reputation of
the bank.
Therefore, the branch should regularly organize training courses to improve
professional expertise through conference, the short and long-term overseas courses.
Besides, AFTD should regularly inspect, test the proficiency of young staff to have
training plans, training for immediate needs and long-term plan for the next junior
generation.
To attract good staff and improve their effectiveness, AFTD should have a certain
treatment regime for them, such as salaries, bonuses, training courses. This will create the
strong motivation for staff, helping them develop their best capacity and creativity at
work.
3.1.6. Submitting proposals to the upper management system
To expand and develop business activities at AFTD, raising the contribution to the
total revenue requires the efforts of AFTD and the upper system, specifically Agribank
and SBV. The bank and SBV will give directions and preferences so that AFTD can

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INTERNSHIP REPORT/VO THI KIM NGAN
obtain the proposed objectives. Therefore, all the enforced regulations from subjective
levels of management will affect directly the credit business at AFTD. Thus, proposals to
the Government, SBV and Agribank are essential to be offered better conditions to
develop consumer lending.
3.2. Conclusions
In the context of economic crisis, the Government has implemented monetary and
fiscal policies to encourage domestic demands. Experience from the economic
development of Vietnam and of other countries has pointed out that stable economic
growth should be based on the increase in domestic demand rather than the increase in
trade, especially import.
In many developed countries, consumption indicator has been seen as the key factor
contributing to midterm economic growth. It reflects expectation on income of consumers
in the future. Therefore, consumer credit has long been an important part of commercial
banking industry, which is also said to an alternative to corporate credit. Consumer
lending impacts many facets of personal and family economics, as well as the entire
economy. Its use can be either good or bad depending on the reason for its need and the
ability of the borrower to repay in a timely manner.
Though in recent years, the State Bank of Vietnam has paid much consideration to
the field of consumer credit, this form of credit is still underdeveloped, accounting for the
modest proportion of total outstanding loans. under the situation of harsh competition in
the context of international integration, Vietnamese commercial banks in general and
AFTD in particular must diversify forms of credit to spread, limit and control risks at the
lowest level.
In short, this report is supposed to provide some useful findings and
recommendations to help the branch deal the current problem. However, in order to seek
more details about the strategy as well as orientation, another research with larger scope
should be conducted.
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