120 ACTUAL SITUATIONS ABOUT ASIAN STOCK TRADE BANK`S RETAIL (ACB) ACTIONS. COMPARE RETAIL ACTION ANALYST BETWEEN ACB AND VIET NAM HSBC

INTRODUCTION
Viet Nam officially accedes to World Trade Organization (WTO) and
enlarged door with economy world-wide. Our country sector of the economies has
chance outmarch " river " for talented show egress " big marine ", but request right
they is right there is stalwart internal force and go true according to "
anemotropism " novum is fast progress bear down big wind billow. Trade bank is
midsections there is essential role in link sector of the economies together. Action
of trade banking system capable of giant size impact with respect to motherland
economy in which role is accommodated; support from state bank side be is very
essential.
In background present-day cut-throat competition, in order to keep his
foothold and develop right at inland finance market was a challenges isn't little
with respect to the governing body of the each trade bank, requisition in a strategic
purview and a one event sharps governing body, accommodate to continuous
changed the economy. If like trade banks still only aim at traditional and
operational business credit product development according to mechanism "
bureaucratically ", to the service of client follow type " is begged- donation " then
sooner or later will not continue foothold on the market.
Seeing service products developmental potency serve for client object
personally and enterprise fits and is little in market economy. ACB is stock trade
bank pioneer discovering for me monotelic that go true- systems development is
retailed to only develop retail bank growth become premier that Viet Nam is
present-day, ACB still to map out a trend towards accord developments to give
Viet Nam to trade banks.
Compare retail system between ACB bank and HSBC branch bank in Viet
Nam. This is one of powerful and long-time financial clique in the world to who
affirm operator purview and competence of pavilion, manager of ACB in particular
and of Viet Nam young generation generally, affirm develop retail array is a trend
towards perforce for inland trade banks.

The main content of this thesis consist of 5 chapters:

- CHAPTER I: GENERAL ABOUT ACTION OF TRADE BANK IN
INTEGRATION EPISODES
- CHAPTER II: GENERAL ABOUT RETAIL SYSTEM (PRODUCTS
SYSTEM, BANKING SERVICE DEDICATED TO PERSONALLY)
- CHAPTER III: ACTUAL SITUATIONS ABOUT ASIAN STOCK
TRADE BANK'S RETAIL (ACB) ACTIONS
- CHAPTER IV: ACTUAL SITUATIONS ABOUT IMPARITY OF
FOREIGN BRANCH BANK- HSBC- ACTIONS IN VIET NAM
- CHAPTER V: COMPARE RETAIL ACTION ANALYST BETWEEN
ACB AND VIET NAM HSBC
CHAPTER I
I. GENERAL ABOUT ACTION OF TRADE BANK IN INTEGRATION
EPISODES
Viet Nam trade bank system is an all-purpose banking system; compound
business is configured and developed powerful, not least after our country accedes
to WTO (World Trade Organization) in the year 2007.
1. Concept and feature of trade bank
A. Concept
According to who stipulate at article 20 items is 2 and 7 laws about lending
institutions officially the Socialist Republic of Viet Nam is published:
"Trade bank is total bank action a lending institution be realized and another
business movements is related ". In other words more than trade bank is a
enterprises trade in currency, is a executive lending institution, raises capital idly
from subjects in economy to establish credit capital source and lended economic
development, expenditure, etc. for society.
B. Trade bank's point
a) Trade bank is money a business specificity enterprise in the field- credit. Trade
bank's action with a view to monetary streams leveraging and circulations serve for
transact, pay stem daily in economy, simultaneity pass fund raising actions and
lending. Trade banks be capable to create money from Pavilion of commercial

operation own pass interest rates tools, ratio. So, trade bank is a country monetarist
sustained contributory link of chain to vanish to be with respect to country convert
economy to assist at regional and international integration such Viet Nam.
b) Product that bank do business and make service is finance goods. In other
words, that is money and priced documentary evidence as: share, debt bill of cost,
bank draft, and assign at. This is market economies’ high-product ergo is function
according to a process and must be administered by man-power resources have
certain profession leveling, lean on the base of legality owing to ordinance
legislation.
c) In the course of action, product trade bank creating and furnishing direct service
for consumer when there is need. Consequently, activity of bank base on trade
mark and prestige creating with respect to client. Therefore, trade bank's action is a
series of ceaselessness product quality enhancement service feeding and popularize
marketing of spectra own is next and of spectra marketing publicity own to client.
d) Trade bank's action is bridge ware between dormant capital personnel investor,
enterprises, haves and investors, enterprises, personnel has capital need borrowed.
Contributory trade banks isn't little into resolve unemployment cum contributory
income and standard of living of population enhancement warrants capital with
respect to phyla’s economically in order to develop profession, economic structure
shift in a country.
C. Class trade bank according to capital structure
In Viet Nam, assorted trade bank based upon expends is awake about capital
structure include: state-managed trade bank (belong to organization credit is state-
owned) trade bank branch office stock trade bank, joint venture trade bank, is
foreign, trade bank there is 100% capital inflows. Trade banks are state-managed
in the course of action according to episode possession policy ever, there might
carry out equalization become stock trade bank (or ancient trade bank is also
fractional might nationalization become state-managed bank).
a) State-managed trade bank
State-managed trade bank is trade bank because of governmentally who founded,

State's objectives economically total equilateral because of state- owned active
capital invested executive contributory. Administration of state-managed trade
bank owing to appointing state bank of Vietnam governor apparatus
immunity after having government's opinion. Action of state-managed trade bank
onion is director general and deputy general managers owing to appointing
governing body and to governor state bank is approved.
b) Stock trade bank
Stock trade bank is trade bank who founded under joint stock company formality,
active capital owing to capital contribution shareholders among them, shareholders
might enterprises, sector of the economies, lending institutions and the same
capital contribution personnel according to Viet Nam socialist republic law's
ordinance. Only maximum capital contribution financial clique and bank of foreign
country only permissibly is 30% stock at Viet Nam trade banks.
c) Foreign branch bank in Viet Nam
It be overseas banks’ subordinating agent Organization to who is permitted to open
in Viet Nam. This branch office to mother bank at oversea capital investment and
accountable guarantee with respect to all allegiances that Viet Nam legislation is
stipulates. Foreign branch banks is in progress feature in Viet Nam presently is
HSBC Standard Chartered Bank, ANZ
d) Bank has 100% capital inflow
It is Viet Nam foreign and operational possession by law bank founded by 100%
capitals. This bank form has legal personnel capacity, have bureau right of
combination, enlarge branch office and have rights and obligations fullness such as
Viet Nam inland trade bank by laws. To that tense flecked 06/ 2008, Vietnamese
government urgent busy to carry out completed license bank establishment of has
100% capital inflows in Vietnam give to two banks: HSBC and Standard Chartered
Bank.
e) Joint venture bank in Viet Nam
It be bank who founded by kitty of two different countries on the basis to indenture
joint venture. Joint venture bank is the artificial person of the country Vietnamese

that there is headquarters, there is legal person’s capacity, there is conditions
fullness according to ordinance, the Viet Nam law.
f) Banking system commercially in Viet Nam
- 5 state-managed trade banks
- 37 stock trade banks
- 6 joint venture banks
- 28 foreign branch banks
- 44 overseas banks’ representative office
By the data from State Bank of Vietnam (SBV), digits therein before will keep
incremental in next year’s because SBV are going on to licensing found stock trade
banks, banks has 100% capital inflows. Like that, statute capital of banks will have
to augment
D. Trade bank assortment according to criterion, flax-comb does business
Rating according to this criterion is only relativistic. It completely depend on
the development strategy of the each banks in ever episode and proclivity,
developmental potency those episode. A banks in the past can who is by retail who
look up such as a wholesale trade bank, but when face a rather big potential about
level of client personally, those bank can promote action as a of business strategy
own
a) Wholesale Trade Bank
It is bank chiefly to transact and supply service product give client to object
is corporation, non- transaction with client personally.
b) Retail Bank
It be bank transact and supply service products chiefly for object is
personnel
c) Bank is both sold mountain village, and retailed
It is bank kind transacts and supply service for both clients personally and
client is corporation. This is most generalized trade bank type.
2. Challenge and censorial globalization integration chance give Vietnam
Trade Bank to system

A. Chance
Reach client pledge bank finance WTO in the field (flatten 16-18) will bring
backed give finance vendor option to them, conformable bye bank. Beside of here,
they also enjoy international standards banking services had with interest rates and
competing fee level.
Reach trade banks will obtain chances catch capital, also experiential study's
fancy, technology enhancement and bank administration leveling. Competition
newly will bear for a driving force trade banks action productive enhancement
competitive capacity leveraging. Like that, reform trade bank fabric and
mechanism of pavilion is a corollary to match new proclivity corollary in order to
accord.
Reach intellectual official talent, they will had is also pick working area
match’s wage level deservedly. Moreover, in working environments
professionally, they can develop at best competence work.
B. Challenge
Viet Nam trade banks will incur competing pressures from sides overseas
banks has management leveling financial ability, technology,, experience on their
market place that remarkably be bring products to service variety and more utility
Finance market replace like namely money-market, property market, gold
bullion marketed, etc. also will provoke pressure give investment of trade banks to
channel attracted.
Viet Nam trade banks can ever glory with product service their tradition
about credit, be to arrange soon, competing pressure trade bank will had extra from
assurors another lending institution such as moneyed corporations, investment
funds, and economically postal service corporations.
Pressure vernix caesura mastery of increasing client serve for trade banks.
Criteria select their bank more and higher. Client becomes very sensitive with all-
in cost and interest rates. Tale persuade and treat with more and more more
difficult surname for majority be they is knowledgeable about finance more than
before abound with risk such pick, staunchness of very easy eroded client, to lose

namely very-high client.
In addition, number of trade banks, lending institutions, overseas banks and
availability investment funds bear for staffed incremental concernment is capable
benefits is attractive. Create condition give talent about who work to them work
better to solicit. This also is pressures give personnel to trade banks in problem.
CHAPTER II
II. GENERAL ABOUT RETAIL SYSTEM (PRODUCTS SYSTEM,
BANKING SERVICE DEDICATED TO PERSONALLY)
1. Actual situations about retail action of Vietnam trade banks
In years near here, under competing pressure about who provide banking
service and information technology's development fast, Viet Nam trade banks start
modernization care promoted technology science's advancements enter retail
market exploitation. Many banks invested is high-powered that give integration to
technology to establish the infrastructure necessary that give service to
development, meet the requirement more and more of the client, dynamic master
face with challenged.
The course more and more manifold and flexible fund raising formality such
as interest stair interest rates frugality, frugality attending awarding, economically
extracted and roots is flexible, indemnity frugality unitedly. Example such as Asian
stock trade bank applied life insurance program sent economically unitedly.
According to information from state bank, capital source mobilize of bank from
population and make up 35-40% capital mobilize. Increasing bank (in the year
2007 reach about 6, 5 milliard USD), contributory that create foreign currency
source substantially for banks and increase grossed since who waste acquaintances
passing level of immigrant remittances
Viet Nam trade banks had betterment steps about administration financial
ability, technology, administered, organization structure and sales division rate,
service product system. Many service types. Many retail banking service types was
deployed as like executive unproductive credit bank account service, cheque, card,
asset management, and fiduciary, pledged.

Beside of reached results, retail banking service of synchronism trade bank
still Vietnamese that many gaps, banks haven't been built banking service
development variant retail in a ways and efficiency.
Client’s retail banking service product not yet copious that, not already meet
the requirements. Modern banking services is deployed tardo, service pay card still
restrict about underdeveloped and use range acquired deep and broad that in the
many the general public: Internet serviced newly stop chiefly In information
interrogation level not already permission effect a payment, cash unused payment
instruments as individual cheque nearly neither used, utility pay card is still
limitative. Banking services serve to give high-income client has not yet been
deploy universally to tier as asset preservative, counsel is financial, invest consult
channel supply response not already traditional service customer service request is
personal, service sales division modern that newly point supplies at a number of
banks, transaction methods remotely base upon information technology foundation
and electron haven't been spreader units rate accepts card still less, centralized
main chief In boroughs and banking service capability urbanization, still busy
machine ATM In experimental stages system connection concernment,
consequently made limitative come clots.
Many banks haven't visibility marketing strategy in retail bank action; still
weak marketing activity and absence professionally, client proportion personally
come close and banking service use still less. Coarsely productive client policy, not
yet favorable transaction procedure not yet high nippy quality, primary needs
response Viet Nam trade bank not already about banking service of different object
groups, coarsely productive client policy, not yet favorable transaction procedure
not yet high nippy quality, primary needs response Viet Nam trade bank not
already about banking service of different object groups, a number of still
professional canon and processes emphasize the aspect of secure guarantee for
bank, haven't been favorably given client.
Not yet pursuant organization machinery direct client, haven't professional
cadre squadron about retail outside brokerage technology application and leveling

technology of many gaps bank stills, low technology foundation, be incapable to
develop or enlarge new applications. Still weak aggregate design leveling, many
mischance latency application system, bank stills not has a information technology
development strategy research responsible division.
Application level information technology not very high, not yet mickle new
products, response information secrecy problem not already is demanded, latency
still hapless risk with both client and bank. On microcell range, although law
environment was dramatically ameliorated, faces legal document about bank action
chiefly build on the basis processing processes, many gap statute becomes and finis
non- inclusions is professional.
In advance competing and overseas banks pressure are mean to penetrate
into Viet Nam market placing under 100% capital inflow bank formality,
action such as card service fund raising, personal credit, and remittances Viet Nam
trade bank needed further dynamic master at develop retail banking services where
transfer the money.
2. Banking service development is retailed: trend towards perforce for
trade banks
A. Potential and benefit from retail banking services
Population in Vietnam about 85 millions with 60% populations under age
30. Besides that, loftiness rate of economic growth is conducive to more and better
Viet Nam life and income bracket of person market economy in much enterprise
type fits integration episode also creating and sapling. Visibility Vietnam is a
market place full of potential give retail, to actions if inland trade banks have
exploitability and source force.
Prime Minister's directive recently demands ministries; bank account past
emolument executive phyla rendered give state budget word to stipendiary objects
is heartened with respect to trade banks. Prime Minister's directive is pointed out
from day for 1 January 2008, emolument object from state budgets, worker officer,
national defense worker officer summer, warrior professionally, and labor by
contract belong to Department of Defense and Ministry of Public Security, etc.

As of day who is nationally render bank account past emolument embodied:
official cadre, functionary, enjoy 1 January 2009, will perform render bank account
past emolument give latitude to all of upper objects. Way renders each functionary
emolument spreaded especially there will make a cards ATM end of the month to
bank account roll-in, bonus, even both health insurance money also to credit
transfer and client can withdraw at bank's any machine point of application ATM.
Pay by ATM card it is also possible to get implemented at thousands of card accept
point client even can send card past frugality, instead must slap implement
procedure at banks. This also main that be underpinning for retail of easy bank
come clots services come to client
Small and medium size business retail carry-over tendentious busy trade
bank, intensification come clots with client best personally. When carry-over is
retailed, banks will have market place outgrown, risk spread high and able
proceeds of a sale potential in business.
With this proclivity, Viet Nam trade bank (gamp is of State or stock
commences) are strive to developing limpid waters reach transversal retail banking
service system is regional about sort quality and competitive capacity, Viet Nam
prestige and trade mark of banking system enhancement step by step on finance
market is international.
B. Challenges newly give retail to action
Now Vietnam banking system has 37 stock trade banks, 1 development
banks 5 state - owned trade banks, 1 policy banks. State- owned trade banks en
suite nearly 90% share markets (both remittance and lending), among them holding
about make up 70%.
Space overseas banks 10% share markets sub dermal (existing than 4 joint
venture banks, 28 foreign branch banks, is 43 representative offices) only seizes
share. Inland trade banks middle competition also become acrimonious especially
at cities disqualify 1 and disqualify 2, where finance ergastic client concentration is
big and accentuation bank density. Beside of banks newly who founded, public
relation of after-birth examination trade banks, then new branch office spring up

like the mushrooms on ways share market per more and more atrophic bank
shrink, especially with respect to weakness a number of stock trade banks still.
Clients will incline come close with many banks and abound with pick,
consequently call for their requisition to who also become more exigent bank's
service product not only must have competitive price level, but also must provide
manifold and quality service products. How to diminish cost and enhancement is
qualificative serve to enhance competitive power is a problems isn't simple with
respect to many inland trade banks creating many so first jobs them play very
essential in economy role ours.
Opening financial domestic market that makes rising risks because of
influences from outside, chance to make use of unequal rate, interest rate between
domestic market and international market that reduces. Viet Nam bank system also
must face to face with economic shocks, international finance and crisis hazard. In
that case, capital market has not yet developed that will makes bank system must
incur losses higher.
Though road to deliver the goods to WTO still protects Viet Nam banks come to in
2010, ingress of foreign banks that are strong about capital, technology and having
professional style of work that making competition is violent more. If before these
banks only select into market that customers are enterprises, so now only the main
is service for retail bank. For example ANZ bank, Standard Chartered Bank,
Deutsche Bank…
CHAPTER III
II. ACTUAL SITUATION ABOUT RETAIL OPERATION OF ASIA
COMMERCIAL BANK (ACB)
1. General introduction about Asia commercial bank (ACB)
A. History of forming and development of ACB
Asia commercial bank is licensed foundation with total of initial capital that
is 20 billions of VND and official operation on 04/06/1993. From first operation
days, ACB defined vision that becomes top retail commercial bank in Viet Nam. In
background of economic – society Viet Nam in that time “retail bank with target is

personal, middle and small enterprises” that is a so fresh orientation with Viet Nam
banks, especially is with a new found bank as ACB. Can state, ACB is a bank
which is vanguard in barycenter development retail operations.
B. Strategy
• Base on building operative strategy pass years that is:
• To make difference base on knowledge about needs of customers and
tends customers.
• To build management risk system synchronously, effectively and
professionally
• To maintain financial situation at high safe level and optimization using
shareholder’s equity.
• Having strategy preparing human resource and training professional staff
force
• To build “ACB culture” to become a spirit factor attached to whole
system
ACB is realizing step by step obstinate growth strategy and diversification.
a) Obstinate growth strategy: expressed through 3 forms:
 Growth through the expansion of activities:
ACB is actively developing network of distribution channels in the target
market, urban Vietnam, while research and development of products and services
to provide markets are and the new market situation requires the customer's
increasingly sophisticated and complex. In addition, when conditions allow, ACB
will open representative offices in the United States
.
 Growth through expanding operation:
ACB built relation with other financial institution example card issue
organizations (Visa, MasterCard), Assurance companies (Prudential, AIA, Nha
Rong), Westen Union transfer money company, partner banks (Banknet), received
the card agencies, overseas national currency exchange payment agency…etc…to
realize growth target. ACB collaborate together with financial institution and

enterprises to research development preeminent products for target customers,
expanding multiform distribution channel system. Extra, ACB has strategy partner
that is Standard Chartered Bank which is famous about retail goods exert all one’s
strength profession skills exchange also advanced technology to enhance
competitive ability oneself for integration process.
 Growth through merge and integration:
ACB step by step builds received capacity with this non-mechanic kind of growth
and operate this strategy when condition is permitted
b) Diversification
Diversification is another growth strategy which ACB considers operation. ACB
has ACB corporation limited stock (ACBS), Asia finance bank leasing (ACBA),
ACB is founding fund management company (ACBL). With competitive position
and established quite firm on market. In the next time, ACB can examine operating
diversification concentration strategy step by step to become supplier about
thorough financial service by operations follow:
 Supply and strengthen enter into a partnership with insurance
company to carry out combined supplement financial solutions for customers.
 Research to found Card Company (development from card center at
present), purchase vehicles finance company.
 Research viability of operation service investment bank.
C. Service product and quality of service:
a) Major service product
• Capital mobilization ( receive deposit from customer) by VND, foreign
currency and gold
• Use capital (credit facilities, investment, join capital in a business) by
VND, foreign currency and gold: fiduciary loan and security property loan.
• Agent services (realize payment internal and external country, fund
service, transfer overseas national currency exchange internal and external country,
express transfer, life insurance though gold
• Gold business

• Issue card debit and credit: ACB Visa Electron/Master Card Electronic;
ACB visa Debit/Master Card Dynamic, ATM card.
ACB built quality management system follow standard of ISO 9001:2000 and
to be recognized that reach to standard in areas (i) capital mobilization, (ii) lending
short-term, medium-term and long-term, (iii) international payment and (iv) supply
resources at association.