internship report at vietnam prosperity joint – stock commercial bank nam dinh branch

STATE BANK OF VIETNAM
BANKING ACADEMY
Foreign Language Faculty
INTERNSHIP REPORT
VIETNAM PROSPERITY JOINT – STOCK COMMERCIAL BANK
NAM DINH BRANCH
Student:
Class:
Student ID:
Trần Phượng Huyền
ATCA – K11
11A7510058
2
nd
June 2012
Internship report Banking Academy
DEDICATION
This Internship Report is dedicated to my family members and
Faculty of Foreign Language of Banking Academy, Hanoi, Vietnam.
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ACKNOWLEDGEMENT
I have taken efforts in this internship. However, it would not have been
possible to complete this internship without the kind support and help of many
individuals and organizations. I would like to extend my sincere thanks to all of them.
I am profoundly indebted to VPBank – Nam Dinh branch for their guidance
and constant supervision as well as for providing necessary information regarding the
internship and for their support in completing my report.
I would like to express my special gratitude and sincere thanks to talented

Lecturers and Professor at my English for Banking and Finance Faculty, without
whom this project would have been a distant reality.
In addition, I wish to sincerely thank and show my appreciation to my
colleagues and friends who went out of their way to help me.
Finally yet importantly, I am deeply grateful to my family members for their
love and support throughout my life.
Hanoi, 2012
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EXECUTIVE SUMMARY
This report is about my internship programme at VPBank Nam Dinh branch. In
this comprehensive report, I have discussed about every major aspect of the VPBank
system in general and Nam Dinh branch in particular, which I observed and perceived
during my internship.
The main purpose of internship is to learn by working in practical environment
and to examine the theoretical concepts relating to practical experiences.
This report provides an analysis and evaluation of the current and prospective
profitability, liquidity and financial stability, the organizational structure of VPBank
Vietnam, the details about the branch I worked and some raising problems of the
bank. Advantages and disadvantages analyze as well as SWOT analysis are conducted
in the report to work out the main characters of the organization.
The report analyzes the credit operations at VPBank Nam Dinh branch with
both advantages and disadvantages. It also finds the prospects of VPBank in its
current position are positive but still need to improve its competitiveness. The major
areas of weakness require further investigation and remedial action by management.
Recommendations discussed include enhancing credit management ability,
diversifying products lines, improving human resources quality and conducting
business expansion.

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TABLE OF CONTENTS
LIST OF TABLES AND FIGURES
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LIST OF ABRIVIATIONS
1. VPBank: Vietnam Prosperity Joint Stock Commercial Bank
2. SMEs: Small and medium size enterprises
3. EBT: Earning before tax
4. ROE: Return on Equity
5. ROA: Return on Asset
6. VND: Vietnam Dong
7. WTO: World Trade Organization
8. HR: Human Resources
9. Dept: Department
10. IVB: Indonesia Vietnam Bank
11. VRB: Vietnam Russia Bank
12. SBV: State Bank of Vietnam
13. VIB: Vietnam International Bank
14. ACB: Asia Commercial Bank
15. Techcombank: Technological and Commercial Joint Stock Bank of Viet Nam
16. Sacombank: Sai gon Thuong tin Commercial Joint Stock Bank
17. Vietcombank: Bank for Foreign Trade of Vietnam
18. VietinBAnk: Vietnam Joint Stock Commercial Bank for Industry and Trade
19. EximBank: Vietnam Export Import Bank

20. BIDV: Bank for Investment and Development of Vietnam
21. MB: Military Bank
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I. INTRODUCTION OF VIETNAM PROSPETITY JOINT – STOCK
COMMERCIAL BANK (VPBANK)
I.1. Overview of VPBank
I.1.1. Brief History of the Organization
Vietnam Prosperity Joint- Stock Commercial Bank, formerly known as
Vietnam Joint – Stock Commercial Bank for Private Enterprises (VPBank) was
established under the business license No. 0042/NH – GP issued by the Governor of
the State Bank of Vietnam on 12th August 1993 with an operational period of 99
years.
The period from 1994 to 1996 was a dynamic development one of VPBank, in
which VPBank made many considerable achievements. The equity rate of return
increased to 36% in 1995 and 1996; Credit quality was guaranteed and many services
were operating effectively. However, VPBank faced certain difficulties, partly because
of the Asian economic crisis at the time, intense competition between commercial
banks; also, the bank itself made some mistakes.
The next stage from 1997 to 2001 was the period of consolidation and
development, created the premises for a coming explosive development phrase.
During this time thanks to the support from the Government as well as the State Bank
of Vietnam, VPBank successfully solved their issues and generated momentums for
sustainable development.
In 2006, VPBank and OCBC bank (Singapore) signed a strategic contract in
which OCBC Bank became the major shareholder in VPBank. During this year
VPBank also expanded its business volume by establishing 2 new associated
companies: VPBank Assets Management Company Limited (ACM) and VPBank

Securities Company.
During this time, VPBank held a most advanced banking technology in
Vietnam by purchasing Core Banking – T24 software from Temenos, Switzerland.
Aiming to enhance technological strength, in 2007, the bank issued Chip – Card,
remarked as the first chip – card in Vietnam market.
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VPBank was approved to raise charter capital to VND 2,117 billion by the
State Bank of Vietnam in 2008, which resulted an increase in OCBC Bank’s shares at
VPBank to 15%.
The year of 2011 was considered a successful year for VPBank with
remarkable achievements in terms of business performance, network development,
and personnel management, etc. VPBank reached a pre-tax profit (EBT) of VND
1,065 billion and raised its charter capital to VND 5,050 billion, and expanded its
network to nearly 200 transaction offices nationwide.
Over the past years, VPBank has won numerous prizes and awards such as
“Enterprises for Community”, “Vietnam Strong Brand Name” Award, Top 100 Trusted
Services in 2011, and “International Settlement Bank” Award granted by the Bank of
New York and Citibank for 5 consecutive years. That VPBank who continually
receives prestigious awards and prizes granted both by domestic and overseas
organizations serves as a great source of timely encouragement given by customers
and society. This, in turn, will be the stimulus that brush up VPBank’s confidence to
develop in the future.
I.1.2. Nature of the organization
A commercial bank “sells deposits and makes loans to business and
individuals”, said Peter Rose in “Bank management and Finance services”. VPBank is
a Joint – Stock commercial bank in Vietnam, it functions as a financial intermediary
that offers wide range of financial services, and also performs full range of financial

function of any business firm in the economy. The bank deals with lending, borrowing
and investment activities. VPBank performs nature of responsibilities of a commercial
bank with all typical products and services of a financial institution such as mobilizing
capital; Utilizing capital; Intermediary services provision (domestic and international
payments, treasury services, overseas remittance and fast remittance via banks);
trading in foreign currencies; providing payment services for credit cards, debit cards,
etc.
The nature of VPBank is unique to other banks or financial institutions that are
under close control of the Government and the State Bank of Vietnam, directly
affected by Monetary Policy of the Central Bank. The bank also plays an important
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role in financing country economy, especially small and medium size industries
because VPBank consider small and medium size enterprises as its main customers
besides individuals.
Aiming to be in the top 5 of retail banks with a large market share in Vietnam,
VPBank has conducted wide range of activities such as: network development -
opening new branches and transaction points nationwide, the service quality
improvement, competitive products research, etc. In addition, promotional and
training activities are always promoted in order to build the bank's image, construct
the brand name identity.
I.1.3. Business volume
Table : (Unit: Million VND)
Criteria
2005 2006 2007 2008 2009 2010 2011
Total Assets
6,090,163 10,159,301
18,137,433

18,587,000 27,543,006 59,807,023 82,817,947
Charter Capital
310,000 750,000 2,000,000 2,117,474 2,117,474 4,000,000 5,050,000
Deposits
5,645,000 9,605,000
15,000,000
15,853,000 24,444,000 48,719,000 70,691,061
Outstanding
3,014,000
>5,000,00013,200,000
13,000,000 15,813,000 25,324,000 29,183,000
EBT
83,320 169,430 313,000 200,000 382,632 663,100,000 1,064,255,000
ROE (%)
- 22.95%
17.63 %
6.74 %
11.93% 22.65%
-
ROA (%)
- 1.93%
1.8 %
0.81 %
0.9% 1.15%
-
I.1.4. Product lines
- Mobilize capital (receiving deposit from customers) in VND, foreign currencies,
- Utilize capital (offering credit, contributing capital, joint venturing) in VND and
foreign currencies.
- Provide intermediary services (domestic and international payments, treasury

services, overseas remittance and fast remittance via banks).
- Conduct trading in foreign currencies.
- Issue and provide payment services for credit cards, debit cards, etc.
I.1.5 Competitors
Competitive environment in banking and finance sector actually launched in
2001, and went sharply from 2006 when Vietnam officially joined WTO. There are
many foreign banks are operating in Vietnam such as HSBC, ANZ, Deutsche Bank
Vietnam, Citibank…; or joint venture bank as IVB(Indonesia-Vietnam Bank), VRB
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(Vietnam- Russia bank), SBV (Singapore Vietnam Bank)… Many joint-stock
commercial banks newly established and upgraded as Techcombank, VIB, ACB,
Techcombank, SeABank, Sacombank, Eximbank, Ocean Bank, MB… This intense
explosion in banking system sparked a competition to penetrate and expand market
share through network expansion, diversification of products and services,
competitive prices and interest rate…Some foreign banks like HSBC, ANZ… initiated
the deposit products and services in Vietnam to compete with banks in Vietnam in the
area of mobilization. The State owner banks as Vietcombank, BIDV, Vietinbank,
Agribank… began to realize the importance of improving the competitive position
through improving service attitude, quality of services. These state-owned commercial
banks with the advantage of the patronage capital and sponsor and support from the
Government keep dominant roles in the banking services system. The State-owned
banks are seen as direct competitors of joint-stock commercial banks like VPBank.
VPBank is competitive with other banks in the domestic concrete:
- Lending activity
- Funding activities
- Diversification of products and services
- Technological innovation

- Service quality, network transactions
- Human resources
- Price of products and services
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I.2 Organizational Structure
I.2.1. Organizational chart
Figure : Organizational structure of VPBank
Shareholders’ Meeting
Assets & Liabilities Committee
Credit Council
Board of Directors
Internal Audit Dept
Human Resources Committee
Risk Management Committee
Supervisory Board
Board of Directors’ Office
Investment Committee
Board of Managements
HR Management Division
Individual Customers Division
Financing & Investment
Corporate Customers Division
Supervisory Division
Support Division
Informatics Center
Consumption Loans Division
Strategy Center

Annual Report 2010
I.2.2. Number of employees
On 10 September 1993 when VPBank officially opened for trading, the total
number of employees was only 18. Along with the development and business
expansion, the number of personnel of VPBank has been increasing accordingly.
By the end of 2009, number of the bank staff was 2,560 people and reached to
3,000 staff by the end of December 2011 with more than 92% of those under age of
40, about 80% of employees have university degrees or higher.
The Board of directors are aware that staff quality is the strength of the bank.
Therefore, in recent years, VPBank always focused in improving the quality of human
resources management. The bank regularly organizes training courses at home and
abroad to give opportunities to their staff to improve their professional qualifications
I.2.3 Main Offices:
Head office: No. 8. Le Thai To, Hoan Kiem District, Hanoi
Telephone: 043.9288869
Fax: 043.9288867
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Website: www.vpb.com.vn
Email:
I.2.4. Introduction of all departments
Board of Directors
The general responsibilities of Board of Directors are to examine the annual
report submitted by the Board of Management and the report of the Auditing
Committee, examine and approve the balance sheet and the income statements of the
Bank.
Supervisory Board:
Supervisory Board’s primary responsibility is the supervision and review of the

development of VPBank’s operations, based on the Executive Board’s written
quarterly reports.
Internal Audit Dept
The Internal Audit Department attaches to the Board of Directors of VPBank,
with the Head Auditor having responsibility for internal audit throughout the entire
bank. The auditors of the department examine and evaluate the internal control
system, to estimate the system efficiency and to provide timely suggestion to insure
the system be implemented consistently and effectively.
Credit Committee (Executive)
Secures and collects information relating to borrowers. Checks statements
submitted by them. In charge of credit files which contain information as to the
reliability, business habits and financial strength of borrowers.
Assets and Liabilities Committee
The department is to forecast net interest income, measure the bank’s interest rate risk,
establish guidelines for risk taking and balance sheet funding, manage the bank's
reserve and risk capital requirements.
Human resources Committee
The Committee assists the board in ensuring the commission has an effective
organizational structure and competitive human resources and compensation policies
and practices. It also ensures appropriate possesses are place for the selection,
evaluation of senior managers.
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Risk Management committee
The purpose of the committee is to identify, assess, monitor and manage risk. The
committee is to oversee, report and make recommendations to the Board in respect of
financial and non-financial risk faced by the Bank.
Board of Management

The duties and powers of the Board is to prepare the budget and annual report,
balance sheet, income statements and agenda to report to the Shareholders’ meeting,
approve the regulations on the administration, organization, services and personnel
policy of the Bank.
Human Resources Management Division
The division is in charge of recruiting suitable personnel for the Bank’s needs
and training staff according to their position. It also develops training system in
accordance with the Bank’s general objective and policy, implements and evaluates
training plans and programs.
Individual Customer Division
The division is to research and establish products and services for personal
customers, aiming to expanding retail-banking market with wide range of individual
financial services.
Corporate Customers Division
The division focuses on expanding corporate financial market with favorable
services and products, functions as wholesale banking department of a bank.
Support Division
The division functions as back offices of a bank with relating departments
- Finance and Accounting department
- Payment department
- Card Center
- Planning department
- Marketing department
- Budget department
- Customer services department
- Asset analysis department
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Informatics Center
The Center is generally in responsible for providing coordination among the
data processing services and groups within branches on technical aspects; directs the
operation, maintenance and support services. It also establishes security layers on IT
systems, guarantee the data on these systems.
Financing and Investment Division
The division is in charge of all operations relating to Foreign exchange trading,
business management, financial investment, money market and liquidity management.
Consumption Loans Division
The division involves in promoting products for individual consumption,
including to name but few loans for home mortgage loans, car loan, and overseas
education. It includes business department, risk management department, accounting
department, and administrative department.
I.2.5. Comments on the organizational structure:
VPBank uses functional structures to divide departments by functions such as
Audit Department, Legal department, Training center.etc The bank’s organizational
structure groups employees by their type of specialty, making efficient use of each
employee’s skills. This structure of the organizations showed its efficiency over times
in enhancing communication, delegating tasks and controlling workflow.
II. INTERNSHIP ACTIVITIES
II.1. Overview of VPBank Nam Dinh Branch
II.1.1 Brief introduction
After an in-depth research on Nam Dinh market, VPBank Nam Dinh branch
was founded in May 2007 by the Board of Directors of VPBank Vietnam under the
Decision No 278-2007/QĐ/HĐQT dated 9
th
March 2007. VPBank was marked as the
first commercial bank to launch a branch in this city, along with some other State-
owned banks as VPBank, BIDV, Vietinbank, Vietnam Development Bank, etc. Along
with the business expansion, VPBank has expanded their share market by opening 4

transaction points besides 1 head office in the center of the city.
Located in 69 Le Hong Phong Street, a main street of Nam Dinh city, VPBank
has many advantages to run effectively. Nam Dinh branch operates its business mainly
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on Nam Dinh province, which has an active and potential market, having played an
important role in improving business performance of VPBank, as well as contributed
to shift economic structure, promoted the further economic-social development Nam
Dinh province in a comprehensive and sustainable way.
Since its establishment, VPBank Nam Dinh has successively developed trading
networks, diversified items of business, currency, and credit, promoted capital
sources. The branch is also focusing on improving the qualification of staff both in
professional knowledge and skills, concerning with stabilizing and raising the
networking and living conditions of employees. Facilities are modernized, especially
information technology, to serve the business better. From establishment, the branch
always makes profits, the revenue is higher year after year, contributing to State
budgets increasingly, creating credibility with customers.
Based on the latest annual report 2011, the total earnings before tax of the
branch was VND 13 billions, outstanding was over VND 400 billion; Bad debt rate
was at a safe level about 0,018 %, credit quality was highly appreciated by experts and
services quality was also recognized by customers.
II.1.2 Organizational structure:
Through years of operation, VPBank Nam Dinh has developed widely, at the
present time it has a business network of five departments and 4 transaction offices.
Regarding human resources, 86% of 71 employees have bachelor degree or higher
educational qualification, major in economics, banking or financial field. This skilled
and well-educated work force is one of the core values of VPBank to build a strong
and sustainable branch. VPBank Nam Dinh is organized under the model of a

supervisor Board of Management including General Director and two Deputy
Directors.
Organization structure of VPBank Nam Dinh is split into functional divisions
as follows:

Board of Directors
Customer Services Dept
Administration Dept
Accounting and IT Dept
Budget Dept
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Figure : Organizational structure of VPBank Nam Dinh branch
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Transaction Offices

Source: Administration data
II.1.3. Products and services of the branch
VPBank has made an effort in developing traditional services as well as other
modern and valued added services. This has enabled VPBank to diversify its own
products suitable to each segment of customers. At the present time, VPBank becomes
leading bank in developing products: Mobile banking, SMS banking, VNTop up, SMS
remittance (A transfer service), etc.
VPBank Nam Dinh, inherited reputation and successes of VPBank, the branch
has its decisions, policies to pursue those successes. VPBank Nam Dinh posts in the
account dependently, has its own seals, organizes and operates under Regulation on
organization and operation of VPBank. VPBank Nam Dinh provides products and
services which serve:
- Individual customers: They are individual, households join transactions in the

branch. The branch provide these customers: Individual account, loans, savings and
investment, remittance, VPBank card, foreign exchange
- Corporate customers: They are target customers of the branch. Money flow is
often in a great number. They are organizations, corporate to name but few, services
and products include: guarantee service, international payment, account, lending,
check services, valuable notes, payment, border payment, saving deposit, leasing,
foreign exchange, factoring
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- Financial institutions: VPBank hope to “provide various services in order to
satisfy customers coming from financial institution sectors”. These services are: retail
banking, foreign exchange, treasuring, financial trading, project based lending.
II.2. Starting and ending dates of internship
Starting date: 2
nd
April 2012
Ending date: 2
nd
June 2012
II.3. Detailed description of the department I worked during internship
II.3.1. Customer services department structure
Figure : Organizational structure of Customer Services department
Head of department
Card & international payment section
Credit section
3:
Source: Data of Administration
Customer services department has 7 staff with separate tasks and roles in their

own working field. The Head of Department is directly responsible for the work and
plans of department to the Director make plans and assign tasks to the staff to
complete objects of Department and the branch. There is one staff in charge of Card
section and one staff is responsible for Foreign exchange Trading and Factor Section.
II.3.2. Current activities of the department
Different from big branch, at VPBank Nam Dinh both credit operations as well as
customer services operations are implemented by Customer services department. This
department plays a crucial role in the branch when it supports all customers from
individual and corporate customers to financial institutions.
Customer services department provides banking services to customers such as
remittance, opening new bank account, foreign exchange operations, international
payment, etc.
The department also acts as credit department in big bank offices to name but few
crediting of legal entities, overdraft, short-term, medium and long- term loans, leasing,
factoring, bank guarantees and warranties.
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II.3.3. Activities performed during the internship
During the internship period, I worked in Customer services department of the branch,
in credit divisions, dealt with the approvals of different types of loan; managed the
repayment of customers to avoid default risk. The credit process includes 6 steps:
- Presenting credit profile
- Credit analyzing
- Credit decision
- Disbursement
- Credit supervision and collecting loans
- Close credit agreement
As an internee at the branch, I helped officers of here to identify credit rating of

customers, analyst customers’ credit record and prepare relating documents in signing
agreements. I mainly took part in the first step of the process, helped customers to
prepare inquiry credit profile. The profile in general includes credit requirement form,
legal capacity documents, document about customers’ information, explanation
documents or letter for loan. The profile also provide bankers a complete history of
the credit accounts customer has open or has held in the past, along with information
about their limits, the balances carried on them, and the payment history. This credit
profiles are used to determine customers’ creditworthiness, this is the important data
for the credit officers to decide whether or not credit would be granted to customers.
III. CRITICAL ANALYSIS
III.1. Advantages and disadvantages in Credit operations at VPBank Nam Dinh
VPBank Nam Dinh branch is a new branch, so the lending operations in
Customer services department played an important role in the banking services of the
branch. In a small branch like the Nam Dinh’s, the Board of director has conducted
strategic lending policy based on general policy of VPBank Vietnam, which is to
determine to expand lending operations with some main customers including
individuals or private sector in Nam Dinh city, customers running business in
commercial, services, retail business, etc.
VPBank Nam Dinh branch has taken numerous effective measures to push
credit operations. As the latest report, the total outstanding in 2011 reached to over
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VND 400 billion, the increasing rate in outstanding in March 2012 was VND 180
billion. The outstanding development rate is 91 %, the credit quality is guaranteed,
and the bad debt rate is minimized to 0.018 %. In the lending structure, 95 % of loans
are mortgage loans, most of those fluctuate from VND 300-600 million. This safe
lending policy has made the branch gain good credit quality over years.
This success is generated from some root causes. Firstly, VPBank Nam Dinh

has some advantages when it was the first branch of a commercial bank opened in
Nam Dinh city. The branch is impressive for advanced banking technologies,
professional business culture, well-educated staff, etc, resulting in an explosive
expansion of VPBank in Nam Dinh market. This is a monument to push business and
network.
Secondly, being aware of affecting factor to lending operations, the Board of
Director of the branch has conducted the flexible interest rate and lending fee makes
VPBank’s products become more competitive in comparison with other products of
state-owned banks and commercial banks located in Nam Dinh. In the interest policy
VPBank has been generating, the bank’s interest rate is always lower than VPBank, a
state-owned banks which has the largest market share in Nam Dinh city, helping
VPBank become a favorable choice of customers.
Thirdly, Car purchasing Loans account for a big proportion of total
outstanding of the branch, 60% of VND 400 billion total outstanding in 2012 is
generated from this kind of product. The superior of this product is that the mortgage
for loans is the car customer made loan for, VPBank can make a loan up to 80% of the
total value of the mortgage. This product was aggressively promoted and become one
of the impressive mark in VPBank product lines.
However, there are some existing problems the branch needs to deal with in its
credit operations. The midterm and long-term loans ratio accounts for 72% total
outstanding. This leads to disparity between term of loans and lending capital because
most of deposit capital of VPBank Nam Dinh is short-term capital. The imbalance in
lending portions creates higher credit risk and liquidity risk in long term. Moreover,
ratio of loans in the inner city is low, outstanding is scattered throughout the province,
and a number of loans are made outside the province. As a result, the bank faces with
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difficulties in credit quality management, supervising debt repayment, which

accordingly increases the business cost.
In addition, most of the VPBank Nam Dinh staff credit officers are young and
lack of experience, which may lead to higher adverse selection and moral hazard in
lending process.
III.2. SWOT analysis
Strengths
- VPBank in general and VPBank Nam Dinh Branch in particular associate themselves
strongly with investment in the retail banking and Small and Medium sized business
sector, this is a good marketing strategy in downturn economic situation, potentially
promoting the activity levels in this area of operation.
- Loans for car purchasing and ship manufacturing are the strategic products of VPBank
Nam Dinh branch. These products of the bank are more competitive than other
commercial bank in the area with favorable interest rate and attractive promotions.
- The branch had remarkable ability to controlling bad debt, successfully overcame
Global economic crisis in 2007-2008 and kept sustainable growth since then,
contributed to build good identity of the whole VPBank system.
- The bank has advanced banking technology, which is considered to be a strength of
VPBank against other banks.
- VPBank has excellent service quality which defines its brand identity
- The bank has strong presence in emerging markets, putting it in a good position to
take advantage of future growth in those economies.
Weaknesses
- Limitation in financial ability and charter capital in comparison with other big
commercial banks makes it difficult for VPBank to face the credit demand of big sized
enterprises in Vietnam.
- Competitiveness is weaker than main competitors’ are, resulting from lack of effective
marketing strategies.
Opportunities
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- VPBank’s generally good position presents the oppotunity to outperform competitors
during the economic downturn and to build a reputation for being one of the safer
banks for depositors, helping to increase resources for lending.
- Ship manufacturing industry in Nam Dinh has rapidly developed with many factories
are being built. These are the potential financial market for VPBank Nam Dinh
because the factories always need a big capital to run business. However, they often
use their loans to import material so it leads to some difficulties in credit mortgage. If
the bank has proper products, it can dominate this potential market.
- In Nam Dinh market, the need for car purchasing loans has arise according to
improvement in living standard. Car purchasing loans as a result becomes a strategic
products of VPBank Nam Dinh
Threats
- The competition between banks is becoming more intensive, especially between
commercial banks like VPBank and state-owned banks as well as foreign banks.
- VPBank is facing with merging trend in fiercely competitive business environment,
especially after Vietnam joining WTO VPBank is confronting with from international
banks in holding market share.
- Threat of lacking qualified staff owing to human resources competition from other
banks.
IV. CONCLUSION
Credit is the original function of a bank in general and the key factor in
operations of VPBank. VPBank Nam dinh, inherited reputation and business
orientation from VPBank Vietnam, through 5 years since the establishment, the branch
has gain various achievement, especially in pushing credit expansion. The branch
focuses on individual customers, to conducts their strategic products, especially car
purchasing loans. Regarding corporate customers, the branch targets on mid – term
and long – term loans for ship manufacturing because this is one of the potential
economic sectors of the province.

By analyzing current situations of credit operation at VPBank Nam Dinh
branch, the report discusses some recommendations for improvement of the branch.
During the internship period, I had excellent opportunities to get used to professional
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working environment at VPBank, analyzed the theoretical concepts with practical
experiences. However, the analysis conducted is not yet complete within the short
time of my internship.
V. RECOMMENDATIONS FOR IMPROVEMENT
- Improve products for car loans and ship-manufacturing loans
Car loan, a tactical product of VPBank Nam Dinh, is in favor of customers in
the province. To succeed in promoting this product, the branch needs to conduct more
research on combination of ATM card and overdraft. Now, card services of the bank
in Nam Dinh city are positive with 4 ATM, diversified with smart cards. If VPBank
Nam Dinh combine overdraft with card services, the bank will have more chances to
raise capital.
In Nam Dinh Ship – manufacturing industry is a main one of the province.
However, the manufactures often get into difficulty with applying for long-term loans.
The Bank should research and present new credit products which offer customers
chances to use the goods and materials as mortgage for loans.
- Improve credit management
Credit management plays a vital role in credit expansion in VPBank Nam Dinh
branch so the bank needs to enhance their management ability. Firstly, the bank should
advance specialized knowledge of their credit staff, especially staff involve in credit
analyze and credit decision. Besides theoretical training, the bank should give their
employees more opportunities to perform practical experiences.
- Push marketing activities of the branch
Marketing in the modern business environment is the golden key to success.

VPBank should conduct more studies on needs of individual customers as well as
corporate customers that the bank can develop the right product for each target market
and adjust their prices, distribution channels, and advertising to reach the target
market efficiently.
- Build collaborator network in industry zones and big towns in the provinces
In Nam Dinh province, the economic sectors are not concentrated in the city
but scattered to small towns and economic regions. Therefore, VPBank Nam Dinh
branch need to expand their collaborator networks in the whole province, this network
will help the bank to take advantages in information collecting and credit
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Internship report Banking Academy
management. The collaborators also are the staff who introduce and promote VPBank
product in the local areas.
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Internship report Banking Academy
VI. REFERENCES & SOURCES USED
1. Website: www.vpbank.com.vn
2. VPBank Annual Report 2010, published by VPBank, December 2010
3. VPBank Financial Report 201, conducted by KMPG Vietnam Audit
Company
4. VPBank Financial report 2009, published by VPBank
5. VPBank Financial report 2008, published by VPBank
Management Brief, October 2011, Administration Department, VPBank Nam
Dinh branch
5. Website: www.sbv.gov.vn
6. VPBank Strategic Planning report, conducted by Global Strategic Solution

Corporation
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