báo cáo thực tập tốt nghiệp tiếng anh GENERAL REPORT OF INTERNSHIP COMPANY

ACKNOWLEDGEMENT

The internship opportunity I had with VPBank JSC was a great chance for learning and
professional development. Therefore, I consider myself as a very lucky individual as I
was provided with an opportunity to be a part of it. I am also grateful for having a
chance to meet so many wonderful people and professionals who led me though this
internship period.
Bearing in mind previous I am using this opportunity to express my deepest gratitude
and special thanks to Mrs Truong Thi Thuy Oanh – Team Leader of Talent Acquisition
Department of VPBank who in spite of being extraordinarily busy with her/his duties,
took time out to hear, guide and keep me on the correct path and allowing me to carry
out my project at their esteemed organization and extending during the training.
Besides, I would also like to give a special thanks to all staffs at the Talent of
Acquisition of VPBank for their big support during my internship course.
It is my radiant sentiment to place on record my best regards to PhD. Nham Phong
Tuan for their careful and precious guidance which were extremely valuable for my
study both theoretically and practically.
I perceive as this opportunity as a big milestone in my career development. I will strive
to use gained skills and knowledge in Human Resource Sector, and I will continue to
work on their improvement, in order to attain desired career objectives. Hope to
continue cooperation with all of you in the future.

1


Table of Contents
Acknowledgement …………………………………………………………………………………..1
A. General report of internship company
1. Business Line ………………………………………………………………….................3
2. Brief History ………………………………………………………………………………… 4
3. Mission, vision and core competence.................................................4

4. Objectives, Sectors and Field of activities ...................................................5
5. Business Structure ……………………………………………………………………….6

B. Business Commercial Activity Report of VPBank
1. General Activity …………………………………………………………………………..10
2. Financial Activity ………………………………………………………………………….11
3. Operational Activity ………………………………………………………………………23
4. Further Research and analysis about Recruitment Procedure ………29
C. Targets, assigned tasks and methods of implementations
1. The targets of internship ………………………………………………………………35
2. Assigned Tasks ………………………………………………………………………….....36
3. Methods ……………………………………………………………………………………….39
D. Results and lessons learnt after internship
1. The theoretical knowledge enhanced after internship ………………….39
2. The practical skills learnt during internship …………………………………..40
3. Real experiences gained ……………………………………………………………….40
4. Contributions to VPBank JSC …………………………………………………………41
E. Reference …………………………………………………………………………………………..43
A.

GENERAL REPORT OF INTERNSHIP COMPANY

2


 VPBank is a commercial bank in Vietnam and it was founded in 1993 with charter

capital of 6347 billion VND, with developed network to over 200 trading locations and
over 7000 employees.
 As a member of the group of 12 leading banks in Vietnam (G12) VP Bank has

implemented aggressive growth strategy for the period 2012 - 2017 with the assistance
of a leading consulting firm McKinsey world.
 The headquarter of VPBank is located at number 72, Tran Hung Dao Street, HoanKiem

District, Hanoi City.
 Tel: 043.9288869 - Fax: 043.9288867.
 Website: - Email:
 Representative: NGUYEN DUC VINH –General Director (CEO)

1. Business line:
 Receive short-term deposits, long-term deposits, savings deposits, and other deposits.
 Issuing certificates of deposit, bonds, treasury bills and bonds to raise funds in

domestic market and abroad
 Credit granted under the following forms: loans, discount and rediscount of negotiable
instruments and other valuable papers, bank guarantee, issuing credit card, factoring in
domestic and international payments, the various forms of credit granted after approval
by the State Bank.
 Open payment account customers
 Supply of means of payment
 Supply payment service: implementation of domestic payment services including
checks, payment orders, payment order, collection, letters of credit, bank cards,
collection services and payment; implementation of international payment services and
other billing services after the State Bank accepted; implementation services cash
collection and distribution to customers; implementation of other payment services in
line with legal regulations

3

VPbank provides vital service for three main subjects: personal, small and medium
enterprise and corporate.
•

Personal: Personal Services, Savings Account, Card Services, E-banking Services,

Loans, Insurance, Accounts, VPBank Loyalty
• Small and medium enterprise (SME): Deposit, Loans, International Payment, Trade
•

finance, Cash management, E-banking and Others Activities.
Corporate: Loans, Services and Trade Finance, Account services, Programs, Financial
Market Products, Guarantee and Internet Banking.

2. Brief History:
 Vietnam Prosperity Joint-Stock Commercial Bank (formerly known as Vietnam Joint-

Stock Commercial Bank for Private Enterprises) was established on 12 August 1993.
 After 22 years of operation, VPBank has increased its charter capital to VND8056

billion, raised the number of transaction points to over 208, and had a workforce of
more than 12,400 employees.
 As a member of the group of 12 leading banks in Vietnam (G12), VPBank has

implemented an aggressive growth strategy for the period 2012 - 2017 with the support
of McKinsey, one of the world’s leading consulting companies.
3. Mission, Vision and Core Competence
 Vision is realized through the two-pronged strategy as follows:
• Aggressive organic growth, focusing on personal and SME customers, and exploiting

opportunities in the segment of large business customers and consumer credit.
• Building strong foundation systems in terms of organization, human resources,
technology, operation, etc.

4


 The support for the implementation of the above strategy is the VPBank corporate
•
•
•
•
•
•


culture which is nurtured and built on six core values:
Customer Focus
Productivity
Ambition
People Development
Trust
Make the Difference
VPBank’s mission is that maximizes customers’ benefits, attach special importance to
the interests of employees and shareholders, build a strong corporate culture, and
contribute effectively to community development.

4. Objectives, Sectors and Field of activities.
• VP Bank's goal is to become a leading retail bank in the number of commercial banks

in Vietnam on the scale of operation and market share, quality of service, creating the
highest profit for shareholders, creating stable jobs and growth for employees,
contributing positively to the State Bank, background of the economic development of
social communities. VP Bank aims to become one of 5 leading commercial banks in
Vietnam and one of three retail commercial banks in Vietnam in 2017.
•

VPBank business activities in the field of finance and banking, performing business
activities under the license by the State Bank and other business activities in line with

the provisions of law
5. Business Structure.

5


Vpbank is an organization with big-sized Joint-stock Commercial banks in Vietnam
which includes many different apartments.
 Manager Structure:

1
2
3
4
5
6

Ngo Chi Dung
Bui Hai Quan

Lo Bang Giang
Nguyen Van Hao
Luong Phan Son
Nguyen Duc Vinh

Chairman
Vice Chairman
Vice Chairman
Board Member
Board Member
Board Member, General Manager.



Functions and duties of the departments:

1.2.1. Treasury department:
Function:
-

Manage and regulate capital in cash, to guarantee payment of VP Bank system.
Implement the currency trading business.

Mission:
-

Manage capital regulation across the system by capital transfer tools
- Monitoring and liquidity across the system VP Bank.
- Build table daily exchange rates; implementation and management of foreign
exchange network of VPBank; make the purchase and sale of foreign currency

-

to serve customers.
Carry out foreign currency transactions through professional SPOT,
FORWARD, SWAP; to engage in the business of deposits and money market

-

borrowing on the interbank.
Make purchases of valuable documents; securities business in accordance with
law and after the Board of Directors VP Bank allowed.

1.2.2. Office:
Function:

6


-

Research, analysis and synthesis of VP Bank helps leaders build organizations
of apparatus, departments, and branches consistently with the oriented

-

development of VP Bank.
Implementation of secretary of the Board of Directors, the Board of Directors.
Administration, HR, salary and welfare regimes across the system.

Mission:

-

-Perform the prescribed duties of functions, duties and powers of the secretary

-

of the Board of Management by the Board of Directors issued.
Implementation of the secretary of the Board of Directors meetings, preparing
reports and documents for meetings of the Board of Directors; perform other

-

tasks as requested by the Board.
Develop standards, regulations and procedures to recruit staff, implement staff
recruitment; salary fund planning, management of the time and date, the day
allowed; implementing the resort, visit the recreation, physical life care and
spiritual officials VP Bank staff.

1.2.3. Center for Western Union:
Function:
-

Set up network organization to direct, guide and implement the remittance
business, express delivery money quickly in whole VP Bank system; establish,
maintain and develop the relationship between the company VP Bank and
Western Union.

Mission:
-

Establish organization of network development, direct and supervise the
performance of remittances – in the Western Union whole system; contracting
with Western Union agent side, responsible for monitoring financial settlement
with agents throughout the system.

1.2.4. International Payment Department - Remittances:

7


-

Implementation

of

the

profession

guarantees,

international

payments;

implementation and development of professional networks remittances, money
-

transfer in the locality.

Periodically analyze and synthesize the implementation of international
payments, remittances; store the records of international payments, remittances;
settlement of disputes, if any.

1.2.5. Accounting Department – Informatics Department:
-

Management of deposit accounts, perform operations interbank payments;
management and organization of accounting of income, expenses, receivables
and payable; catch the use of capital and capital resources, engage balance of

-

capital, funds for the month, quarter.
Organization of accounting, tracking and management of assets, tools and
utensils; receive and control the documents and extraction of data into the
computer, take account balance date in accordance with prescribed accounting

-

system.
Management of the whole network system, confidentiality of data, securely
store data and information on the computer.

8


9

A. BUSINESS COMERCIAL ACTIVITY REPORT OF VPBANK
I. GENERAL ACTIVITY
1. STRATEGIC/PLAN

Founded in 1993, after 20 years of operation, Vietnam Prosperity Bank (VP Bank) has
continuously developed and strengthened its position on the Vietnam financial and
monetary market. VP Bank has been classified 12 banks in Vietnam.
 Sustainable Development:
 VPBank has always focused on developing and improving the customer service

quality, recruiting high-quality human resources, upgrade comprehensively information
technology infrastructure, improve risk management processes, operating system.
 As a retail bank, VPBanks identifies service quality as its competitive advantage.
Therefore VPBank has always focused on research, development and introduction to
customers of appropriate and distinguished financial products/services, meeting the
requirements of customers, from card services, savings, loans to other personal services
such as international, domestic money transfer, currency exchange, gold custody, etc.
 In its development strategy, VPBank concentrates on exploiting opportunities in two
segments namely wholesale customers and consumer credit, with the major product
categories, such as credit, deposit, cash-flow management, trade finance, guarantee,
etc.
 On the other hand, VPBank always keeps ahead in applying advanced information
technology in products, services and operating systems. Along with building strong and
effective corporate culture environment, the core human resource management system
has been developed and successfully implemented in VPBank.
 Besides, the Bank has gradually developed an independent, centralized and specialized

risk management system to meet international standards and aligned with the business
strategy of the Bank. In parallel with the implementation of international best practices
in corporate governance, VPBank continuously improves organization structure

towards clear and transparent governance policies.
 Breakthrough Success

10


 The rapid growth of VPBank is shown through the expansion of its branch and

transaction office network nationwide as well as the development of diversified sales
and distribution channels. Up to now, VPBank has had a network of more than 200
transaction points with over 4,000 employees.
 Following the orientation “All for customers”, all transaction points have been
completely changed in appearance, model and service facilities. VPBank products and
services have always been improved and incorporated more utilities to increase
benefits for customers. All together have contributed to satisfying current customers
and attracting new customers, expanding the customer base with fast speed.
 For the first time, VPBank has been ranked in Top Banks with total assets of more than
VND 100,000 billion. VPBank has achieved growth in size together with stronger asset
quality, higher liquidity and guaranteed safety of banking activities.
 With the continuous efforts over time, VPBank has been recognized by prestigious
awards such as: Most Innovative Retail Bank Vietnam 2013 - lied within the “Global
Banking & Finance Review Awards 2013” system; Straight - Through - Processing
(STP) Award by Citibank, Bank of New York; Most Satisfactory Banking Services
Award; Vietnam Value Award 2012; Top 500 Biggest Enterprises in Vietnam and
others.
2. FINANCIAL ACTIVITY
 Property Situation

The first time VP Bank's total assets reached 150 trillion marks, putting VP Proximity
group of the largest commercial banks in Vietnam. Ending the financial year,

consolidated total assets reached 163 241 VND billion, an increase of 41 977 VND
billion (equivalent to 34.6%) compared to the same period of 2013 and reached 5%
compared to the plan laid out earlier this year.
Structure Total Assets
31/12/2014
Total Assets
163.241
Loans to customers
78.379
Deposits and loans to other 13.925

11

Proportion
100%
48%
9%

31/12/2013
121.264
52.474
12.055

Proportion
100%
43%
10%


banks

Security
Other Assets

52.474
18.466

32%
11%

37.678
19.057

31%
16%

Asset structure continues to have a significant shift in customer loans
(contribution of 48% of total assets) and securities portfolio (contributed 32% of total
assets), the foundation for sustainable growth of the next year.
 Liabilities

Total liabilities of the end of 2014 nearly 41,000VND billion, equivalent to an
increase of 36% compared to the end of 2013, which mainly rise from customer
deposits and issuing valuable papers (up 29 VND trillion).
Deposits from customers are an indicator highest proportion accounted for in
the structure of bank liabilities. Deposits from customers reached 108,354 billion, an
increase of more than 24,500 billion net (equivalent to 29%) compared to 2013, much
higher than the average growth of the whole banking sector in the group of commercial
banks have growth high on the mobilization
Total Capital Structure
Total Liabilities and Equity

1. Liabilities
State Bank Liabilities
Deposits and loans to other banks
Deposits from customers
Issuance of valuable papers
Other liabilities
2. Owner Equity

31/12/2014
163.241
154.261
833
26.228
108.354
12.410
6.437
8.980

Proportion
100%
1%
16%
66%
8%
3%
6%

31/12/2013
121.264
113.538

1.885
13.134
83.844
7.601
7.074
7.727

Proportion
100%
2%
11%
69%
6%
5%
6%

2.1. Capital mobilization activities
Capital mobilization activities is one of the most activities VP Bank highly focused,
with the aim of ensuring loan, secure liquidity, increase assets, and empowerment of

12


VP Bank in the banking system. Thus, over the years, the mobilization of capital from
residential areas as well as inter-bank sector are focused fully exploit.
2014
Continue to pursue the strategy aims to raise capital to expand base "core deposits"
include those who are relatively stable as assessed by VP Bank in different periods,
total raise capital (deposits from customers, deposits and loans from other credit
institutions and issuing valuable papers) at the time of 31/12/2014 reached 146,991

billion, up 41% corresponding period of preceding year (2013), in which the customer
deposits for the first time exceeded 100 VND trillion, reaching 108,354 VND billion,
exceeding the 2% target set. Generally during the period 2010-2014, growth Dual
growth (CAGR) of customer deposits was approximately 46%.
In 2014, VP Bank always follows the fluctuations of the capital and use of funds for
the adjustment measures to mobilize capital timely to ensure liquidity safety at all
times. Liquidity contingency plan has been adopted and always available ready to
respond in crisis situations have the ability payment, and including actions to offset the
stream cash in an emergency. In terms of customer deposits: funds rose from
individuals 8,926 VND billion increase from economic organizations and nearly
15,000 billion compared with 2013. Thus, the mobilization has been structured
positively, which closely 2012-2017 Bank strategy was posed: besides promoting
growth in the stool individual customer segment traditional, VP Bank has expanded
fully exploit in corporate customer segment to diversify resources, while increasing
stability of capital and effective contribution for the goal of reducing spending capital
charges.
Besides deposit products, VP Bank has actively implemented new products, special
products, increased utility of product for customers such as "save to preserve
prosperity", "certificate of deposit term enrollment term "," VP Kids "... Besides, VP

13


Bank has actively regulated the capital market based on the fact and driven by ALCO
in each period to ensure safe and efficient operation of business.

2015
Thanks to the strong growth in the core activities of the bank, total net operating
income of the first 9 months of 2015 reached 8,448 VND billion, up 94% compared to
the same period last year. In particular, achieving good results charges, grew 51%, has

to be part of the aim of reducing dependence on revenues from interest activities in the
structure of revenues. Besides maintaining a positive growth rate for traditional
products for individual customers (MOST) and SME customers (SME), in 2015, VP
Bank has boldly deploy the products and credit policy for agribusinesses in the
markets, the traditional villages, and support businesses in the agricultural sector access
to capital to expand production.
On September 30, 2015, VP Bank has completed processing 100% of bad debt with the
central bank committed to contribute actively to the goal off bad debts of the whole
industry. Notably, VP Bank has handled nearly 1,250 VND billion is collected in part
due to repay customers. VP No. 21 in the rankings V1.000 - 1,000 units pays corporate
income tax in Vietnam in 2015. Profit before tax consolidated 9 months reached 2,329
VND billion, up 73% compared to the same period last year and 93% of the yearly
plan. In particular, pre-tax profit of the bank's own positive results also reached nearly
14


1,400 VND billion. Consolidated total assets as at 2015 September, 30 th. VP Bank
reached 195,004 VND billion; an increase of nearly 32,000 billion VND
(approximately 19%) compared to the end of 2014 and completed 96% of the plan.
(cafef)
It was selected as one of the 10 units are assigned to pilot the central bank management
practices and risk capital under Basel II standards is both an honor but also a challenge
for VP
2.2. Credit Activity
In terms of the economy is open and continuous growth, in recent years, Vietnam is
considered as one of the high growth economies in the world top. Investment demand
should increase credit activity of banks was quite eventful.
Total outstanding credit granted (including loans to customers and bonds stock
enterprises) reached 91,535 billion, growing 39% over for 2013, of which lending to
customers reached 78,379 VND billion, over 8% Shareholder proposed plan. 2014 VP

Bank has deploying more credit package as the foundation for the stable growth for the
next year.
 Credit growth in economic conditions remain also many difficulties, the ability to

absorb low corporate capital, VP Bank has consistently applied a lot of programs and
credit packages use the preferential interest rates with market conditions and the many
different customers. Also, instead of lending structure product portfolio, the Bank
shifted to lend under the program standards to minimize product risks for the Bank,
including credit programs, lending buy houses, buy cars, consumer loans, financing
guarantees 100% in real estate, financing programs by sector ...
 Loan structure changes in a positive direction and in accordance with strategic

direction of VP Bank. The absolute increase with personal customer lending increased
by 13,689 billion, loans customers increased by 12,216 billion. Next, VP Bank has also
spent large amount of capital to lend to preferential interest rate for the sector that the

15


Government recommends promote rural agriculture, small and medium-sized
enterprises exporters, industrial and high-tech support. Specifically, compared to 2013,
VPBank lend the agriculture and forestry increase 48%, commercial production and
processing sharply go up 156%, while construction loans (real estate) increased slightly
to 10%.
 Along with the growth of credit, VP Bank has always focused on testing quality control
and debt management closely; with criteria quality of Credit decide the growth. VP
Bank has put into successfully implemented credit approval system focus, continuous
improvement card grading system (scorecard) advanced; construction risk management
system synchronization, system application early warning, and debt recovery apparatus
including early recovery and late recovery which successfully implement framework

risk management under Basel II standards. Therefore, the Non-performing loan ratio
(NPL) are maintained at a safe level, accounting for 2.54% of the total balance debt at
the end of 2014 (and always <3% at all times), completion a good plan in place.

2.3. Investment Activity

By the end of 2014, the securities portfolio reached worth over 52 trillion, growing
39% in comparison with the same period last year. In 2014, that is continuous year the
securities business of VP Bank was good results when recorded net profit from this
activity reached 461 VND billion, up 157 VND billion compared to 2013, equivalent
an increase of 52%.
 With efforts of the management team and staff, in a short period of VP Bank has built

and perfected Investment Management Division and Project towards concentration,
develop safely and sustainably. Along with improving the procedures and rules on
investment, human resource in Block has also strengthened with the staff of young,

16


dynamic and enthusiastic as the core for the operation and development long term
investors.
 With specialized and highly concentrated after being separated into a special block, VP
Bank has enhanced the operational efficiency of investment and financing their
projects, thereby bringing benefit for the customers and the Bank. Although operation
is less than 1 year, the business results of this sector in 2014 have achieved a certain
number of achievements, completed from 110% to 150% of important financial
indicators are assigned.
 VP Bank will continue to consolidate successfully of investment and project finance

with specialization in order to enhance the safety, efficiency and quality of operations.
VP Bank will also promote consulting services (advisory issued, arrange financial
advisory projects) to meet the needs of enterprises Vietnam as well as improve the ratio
of income from Bank charges.
 Achievements of VPBank in 2014 in Financial Sectors
 Common activities: September 2014, VPBS honored to receive Vietnam Business

Award typical (National Winner from Vietnam for the ASEAN Business Awards 2014)
and Third Prize typical enterprise East South Asia (The 2nd Runner-up for Most
Admired ASEAN Enterprise) by the Business Advisory Council (ASEAN Business
Advisory Council) awarded. The award carries regional level, held with strict
evaluation process, compliance with regulations and international frameworks to honor
businesses with the most outstanding achievements contribute to the economic
development health and prosperity of countries in particularly and the region in
general.
 Brokerage Activity: On September 29th 2014, VPBS is honored as member of typical

securities companies in the period from 2009 to 2014 by Hanoi Stock Exchange
(HNX) .The criteria for honorees come from brokerage market shares and bonds of
VPBS, the level of cooperation and coordination with the HNX in the bidding ... This

17


is a deserved recognition for the contribution of market VPBS the stock market in
particular and Vietnam in general finance.
 Consulting Activity: The Company continues to promote consultancy activities sale of
government bonds and arranging capital for large enterprises in the country. On June
20th 2014, VPBS was honorably awarded "Consultant and Best Bond Settlement
Vietnam 2014" (Best Debt Capital Market House 2014) 2014 by Finance Asia

magazine voted (consecutive second year VPBS this award). This is one of Finance
Asia Awards are held annually to honor the consulting organization issue bonds with
the number of deals and value on the market release. About the approval, voted to be
implemented in a comprehensive manner based on criteria such as the structure, values
and influence of business on the bond domestic market, as well as experience platform
sector organizations
In 2014, Alpha Southeast Asia Magazine and The Asset Magazine in the banking and
financial sector also VPBS voted as "The Consultant and Best Bond Settlement
Vietnam 2014". This confirms the leading position in consulting activities VPBS
market operations in particular debt securities and investment banking in general in
Vietnam.
2.4. Financial Market Activity

In 2014, financial market operations VP Bank is specialized with the establishment of
Block Financial Centre based on Block Consolidation of Treasury and Banking partial
wholesaler, with orientation focusing on business activities mainly on the interbank
market and sell the product market financial field.
With the new adjustment, VP Bank's operations have achieved outstanding
achievements, initially confirmed VP Bank brand in this segment:
 In terms of revenue, VPBank reached over 700 VND billion from the business

activities in the financial market. Especially, VP Bank has consistently top 5 banks
Commercial banks have made remarkable achievements in procurement activities of
18


government bonds by the Ministry Finance’s ranking in 2014. In addition, product of
financial market sells for business customers also have grown sharply with an increase
of over 240% compared to 2013.
 VP Bank has driven the management of sheet products Bank effectively through

reasonable policies of funds transfer pricing, supporting the production program in the
Bank, contributing significantly to the growth throughout the sheet of total assets both
in terms of credit use and mobilization.
 Bank needs to improve product sales team financial market professionally, strengthen
closed cooperation between departments to bring financial market products to
customers proactively With a team of experts, VP Bank not only provides product
information often but also gives advices on appropriate exchange rate and interest rates
for customers, thereby optimizing benefits of customers and creating differences of VP
Bank.
2.5. Business Result

VP Bank's profit in 2014 reached 1,609 VND billion, an increase of 19% compared to
2013, completing 85% of the plan. Market interest rate level continued to decline
leading to margins (margin) lower actual plan. Besides, the focus enhanced
provisioning is also the reason leading to lower profit plan
Targets

I
1
2
3
4
II

Net operating income
Net interest income
Net gain from operations services
Profit from foreign exchange and
gold

Gains / losses from sale of securities
Net earnings from other activities

19

2013
(VND

2014

Change

Billion

(VND

(VND

)
4.969
4.152
535

Billion)
6.269
5.291
607

Billion)
1.300

1.139
72

%
26%
27%
14%

-21
304
104

-90
461
-7

-69
157
-111

-132%
52%
-107%


III
IV
V
VI
VII

VIII

Income from capital contribution
and share purchase
Operating Expenses
Profit before Risk provisions
The cost of Risk provisions
Profit before tax
Income tax expense

12
2.704
2.381
1.026
1.355
337

9
3.683
2.588
979
1.609
355

-3
979
207
-47
254
18

-25%
36%
9%
-5%
19%
5%

Profit after tax

1.018

1.254

236

23%

.
The total net operating income
Thanks to the strong growth in the core activities of the bank, collecting interest
securities business is successful, while maintaining balance sheet is efficient, total net
operating income in 2014 is quite high, reaching 6269 VND billion, up 26% over the
previous year. The largest contribution to this growth came from net interest income
(up by 1,139 billion - mainly due to loan growth, rapid mobilization, improve the
structure of power and efficient energy use), followed by purchase and sale of
securities trading (up 157 billion - corresponding to 52%). The structure of revenues
continues to be improved by increasing the non-interest income.
Operating expenses
Operating expenses in 2014 fluctuates compare 2013 (up 36%), mainly for

personnel costs, cost management in response to the growth of business activities,
focus business programs and finishing platform systems, organizational models in the
transition of the Bank. Cost growth has always been controlled at a reasonable and
consistent with the scale of growth and income.
Profit before tax and performance indicators
Profit before tax reached 1,609 billion, up 19% over the previous year. In
particular, pre-tax profit reached 1,537 Private banking billion (up 21% compared to
2013) .The member companies have good business, operational efficiency and closely
20


linked to the Bank profit hangs. Profit after tax consolidated highly at 1254 billion, an
increase of 23% compared to 2013.

Margin /average equity (ROAE) continued to go up, namely 2014 ROE was 1%
higher than last year and reached 15%. Although in 2014 the Bank had to issue shares
to increase its charter capital, earnings per share (EPS) grew 12% compared to 2013,
reaching 1,975 dong / share.
Margin on total average assets (ROAA) in 2014 fell slightly to 0.88%,
compared with the rate of 0.91% 2013.
Marginal net interest income (NIM) reached 4.42%, a slight decrease of
0.05% over the previous year; of which, the rate of return on productive assets (YEA)
fell 1.89% and the ratio interest on debt charges fell 1.53%.
3. OPERATIONAL ACTIVITY

VP Bank's success in recent years is not only in the business results. 2014 was the year
confirms the success of VP Bank in the construction, successfully converting a wide
range of platforms system that the bank has started since the end of 2012. The success
of building and transformation system platform towards centralization, specialization
creates VP developed foundation drastically from early 2015 of the strategy period

2012-2017.
3.1. Operation System

21


 The main point of the reform operating model of the VP Bank continues to be

centralized. The prime tasks and administrative activities, operations are separated
from directly contact with customers unit and decentralized in order to staff can focus
more time on sales activities and customer service at branch. At the same time, the new
department has been established in supporting of units to promote bank’s service
provider for the customer unit.
 Some key tasks of VP Bank include: improving productivity, standardize processes and

professionalizing processing activities. The Bank has developed internal capability to
develop management framework of their own processes. This helps VPBank
standardize and streamline processes to be flexible and able to respond to any changes
in the business environment.
 The functional unit of the operated system by VP Bank has also introduced and began

to use a number of tools and parametric performance evaluation activities to improve
the effectiveness of the support unit. These tools include: The average processing time
(APT), service response time (TAT), the model for planning and performance
evaluation of staff capacity, the service level agreement service (SLA) and internal
customer surveys.
 When operating system of VPBank becomes strong, Bank has a stronger focus on the

development of staff in the support unit.
 With growing capacity in all aspects, operational system of VP Bank has obtained

remarkable results and significant contribution to the success of the Bank.
3.2. Human Resource Management
Human resource is one of the most important elements in the strategy and makes the
bank success. VP Bank continued to improve policies, implemented the projects aimed
at improving core systems and management processes of the Bank's human resources,
and deploy programs to help attract and retain VP the talent needed for their
development.

22


 Consolidating HR systems platform is done through updating the policy, the text, the

provisions relating to collective labor agreements, labor regulations, and handle
violations under new revised Labor Code. VP Bank has also developed the system
building automation support blocks (ERP) system that processes improve efficiency
and enhance the human resource management of the Bank.
 In term of recruitment, VP Bank has updated professional recruitment process with
clear criteria for improving quality candidates, promoting consistency recruitment
strategies and quality standards, searching for candidates with enough experience and
capacity for management positions. In the context of the bank to focus on the quality of
recruitment, looking for candidates with enough experience and ability, the shift
personnel in the bank was more intense in 2015. Thus, VP Bank has introduced
policies responsibility allowances and allowances seconded to encourage internal
transfers, help capable and experienced staff try to express themselves in positions
higher or other professional environments. This strategy helps maximize the diversity
of culture, style of work to create special advantages for the bank in business.
 In training and development, 2015 marked the great shift in the approach to training
and development of human resources of VPbank in term of encouraging culture and
self-teaching staff to self-employed workers personal in development planning career.

 In the situation of the competed market, to ensure the "retention" qualified staff, VP
Bank has built remuneration commensurate with ability, qualifications and level of
labor contribution to the performance of the Bank. The construction of their profession,
core competencies framework stick their profession, the characteristics of the business
units The salary system on the market will pay in modern structure and closely linked
to the capacity of staff, and support managers in making decisions related to evaluation
capacity and working efficiency of staff. This change has also built a foundation for
program in the management and development of human resources of VP Bank in 2015.
3.3. Risk Management
State Bank has officially appointed VP Bank is one of 10 selected banks perform basic
approach of Basel II by the end of 2015 and return to the standard method by the end
23


of 2018. The implementation of Basel II are not only enhances the risk management
systems of banks, but also bring better business value, the quota management system
effective and rational capital allocation. VP Bank has taken steps to prepare the
information technology system, the system of internal credit ratings, and the internal
rules on the granting of credit, loan management, and risk prevention policy for work
credit. VP Bank has achieved encouraging results of risk management, including:
 Risk management structure: changes better to meet business requirements as well as
risk management requirements, improving the risk management framework is usual for
advanced risk management.
 Credit risk management: shorten approval time while ensuring control and limit risks,
develop and apply methods of advanced risk management.
 Risk management of Operations: implement of projects/ initiatives risk management

activities closely and more efficiently. The index key operational risks (KHI) have been
completed. The loss process of data collection has improved and implemented antifraud management project, business continuity management and information risk
management in 2016

 Market risk management: Process control market risk and risk limit system market has
been established basically, from identifying, monitoring price changes in the market to
measure, quantify the risks in order to advance to setting appropriate limits and
monitoring compliance with business activities in the Financial Markets Division
 Debt recovery: centralized and specialized debt recovery activities proposed in 2015,
restructuring debt recovery centers continue to be optimized in 2016.
3.4. Information Technology

Information Technology (IT) has always played an important role in the operations of
the Bank and especially in the process of realizing the goal of "putting VP Bank
became one of the three commercial banks, leading retail shares Vietnam ". In 2015,
Information Technology operations at VP Bank continued overall process and
contributed greatly to the success of VP Bank through the development of
technological infrastructure and maintain system stability.

24


Specifically, VP Bank has actively converting, building a steady IT foundation to meet
the development needs of VP Bank with the following core activities:
 Implementation of integrated IT solutions, customer-centric and strengthen operational
capacity
 Link capacity business goals between business units and IT Division, operational
reorganization of the IT Division from a support unit into a unit of service providers.
 Make a convert process solution development towards service providers to meet the

needs of users, creating favorable conditions for the business units to make decisions
quickly and reduce time-to-product market through stable enterprise architecture and
integrate capabilities application and service delivery capabilities.
Thus, by the end of 2015, VP Bank has made significant achievements in IT such as:

 Maintain a stable operating system and effective, 24/7 service providers everywhere to

customers such as electronic banking, card services.
 Improve the quality and continuously offer new services to customers, build an IT
infrastructure with high-performance, contribute to the difference in quality of service
and customer experience, especially on electronic channels.
 Providing foundations and effectively support the business units and operate of VP
Bank , creating a foundation for sustainable and flexible, build successful model
service-oriented architecture
 With the leverage external resources policy to provide better services (the trend of
modern business in the world), VP Bank has been completed and construction is the
relationship more closely with the IT leading companies through strategic contracts.
3.5. Communication Activities
Based on six core values and actual operation of the VPBank, the communication of
the Bank in 2015 is deployed in driven of building image of VPBank as an
organization which bring prosperous life for all financial and emotional for employees,
customers and the community.
 Communications to staff: The internal communication channels at VP Bank is

synchronization, diverse and always keep abreast of activities across the system,

25