CREDIT ASSESSMENT OF BUSINESS IN THE JOINSTOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM

ACKNOWLEDGEMENT
This internship has been a useful and rewarding experience to me. The chance to have an
internship program at BIDV Dong Do was such a valuable and exciting experience on the last days of
my school time. Therefore, I would like to express my sincerely thanks to those who supported me
greatly to complete this internship report.
Firstly, a debt of gratitude owed to the bank managers, Mr. Cao Thanh Truong and Mr.
…………………….., who allowed me to participate in BIDV Dong Do and trusted me to join in
important business projects assessment of the Customer Relationship Management Department.
Secondly, thanks to the guidance of all the staff of CRM Department in BIDV Dong Do,
especially Ms ……..……..Vui, I have gained a deep knowledge and understanding of the basic
concept, different aspects, risks and challenges of the assessment process.
Moreover, I would like to say thanks to my lecturers who gave me lots of valuable advices to
complete this internship report despite being extraordinarily busy with her teaching job. And, I am also
thankful to all my beloved teachers at Foreign Language Faculty of Banking Academy of Vietnam,
who delivered precious support over my student life.
Finally, I highly appreciate my family members and my friends at the university who have
heartedly supported me to finish my internship report.


EXECUTIVE SUMMARY
In recent years, along with the international economic integration, Vietnam's economic development
has gained significant achievements. Investment flows into the economy brought about the increase in
demand for long-term investments by enterprises in general and new investment projects in particular.
The need for a sufficient capital to participate in the construction of the project requires businesse to
use its own capital, funds raised from the business cooperation partners need to borrow funds from
banks trade to investment projects in line with the set schedule.
There are a variety of reasons why I choose Business Project Assessment issue to mention in this
internship report. The first reason is that banking operations organized in nature profits, which all
activities of banks are towards economic efficiency, seeking to disperse and reducing risk. Therefore,
before each investment project, the bank needs to assess the feasibility of the project or the repayment
ability of enterprises. Moreover, I have gained lots of valuable experience about project assessment

when I interned in BIDC Dong Do and Customer Relationship Management Department. With the
above reasons, I have chosen "Business Project Assessment in the Joint Stock Commercial Bank
for Investment and Development of Viet Nam" as an urgent topic presenting within my internship
report.
I hope that with this internship report, readers will have an overview of the professional appraisal of
investment projects in commercial banks.
My internship report has four main parts as follow. Part I is a brief introduction of Joint Stock
Commercial Bank for Investment and Development of Vietnam. In part II, my internship Program at
Customer Relationship Management Department will described in detail. In part III, I will give an
evaluation of Credit Grant process and Credit assessment in Customer Relationship Management
Department. And the last part, I will propose some recommendations for improvement, and then to
come up with a conclusion.


TABLE OF CONTENTS

LIST OF TABLES
Table 1: The comparison of business volume in BIDV (Unit: million VND)
Table 2: Table 2: The Balance Sheet of Business Volume of BIDV (Unit: million VND)


LIST OF FIGURES
Figure 1: Organizational structure of DongA
Figure 2: Organizational structure of DongA Bank Bac Ninh
Figure 3: Structure of outstanding loans for SMEs according to time at DongA bank – Bac Ninh
branch:
Figure 4: Structure of outstanding loans for SMEs according to types

LISTS OF ABBREVIATIONS

Abbreviations
BIDV
BIDV Dong Do
SBV

Full version
Joint Stock Commercial Bank for
Investment and Development of Vietnam
Joint Stock Commercial Bank for
Investment and Development of Vietnam
– Dong Do Branch
State Bank of Viet Nam


CRM
ROA
ROE
Stone Base Corp
RM department

Customer Relationship Management
Return On Assets
Return On Equity
Stone Base Corporation
Risk Management department

PART 1: OVERVIEW OF THE JOINSTOCK COMMERCIAL BANK FOR INVESTMENT
AND DEVELOPMENT OF VIETNAM – DONG DO BRANCH
Overview of the organization
1. General information about Joint Stock Commercial Bank for Investment and Development

of Vietnam
Name of business

Joint Stock Commercial Bank for Investment and Development of Vietnam

Establishment date

: 26/04/1957

Brand name

: BIDV

Headquarters

: 35 Hàng Vôi, Hoàn Kiếm District, Hà Nội, Vietnam

Website

: www.bidv.com.vn


Logo

:

Slogan

: Share opportunities, Share success

Nature of business

: Joint Stock Commercial Bank

Tel

: +84-4 2220 0422

Fax

: +84-4 2220 0399

Email:

:

2. Brief history

Bank for Investment and Development of Vietnam, formerly known as Bank for Construction of
Vietnam, established by Decision No. 177/TTg dated 26/04/1957 of the Prime Minister. BIDV’s
original mandate was to manage and allocate basic construction capital from budget to fund all
economic and social sectors. Over the last 54 years, BIDV has grown to one of the four largest
commercial banks in Vietnam and is recognized as a state enterprise of special rank, and operated in
the form of a state corporation. The bank has gone through some milestones in its development as
follows:

1957

Established under the name of Bank for Construction of Vietnam,
under the Ministry of Finance, and wholly owned by the State

1981

Changed name to Bank for Investment and Construction of Vietnam
(under the State Bank)

1990

Changed name to Bank for Investment and Development of
Vietnam

1992

Commenced cooperation with overseas partners

1995

Commenced operations as a full-service commercial bank

1996

Was the first commercial bank in Vietnam to conduct both Vietnam


and IFRS reporting, and continuously applied until now (15 years)
2001

Was the first commercial bank in Vietnam to receive ISO
9001:2000 certification

2001-2006

Implemented the plan of bank restructuring

2006

Was the first bank in Vietnam to be ranked by Moody’s for its
operational reliability, with all indices meeting national standards

2008

Comprehensively transformed its organizational structure at the
Head office and branches towards a modern retail commercial bank
up to international standards under Project TA2

2011

Was converted from a state-owned enterprise to One-member
Limited Liability Company owned by the State and conducting
equalization.


3. Nature of the organization

Up to now, BIDV had 55 years of operation and growth. Established early in Vietnam, BIDV plays an
essential role in the country’s finance from the beginning. Depending on the requirement of each
history’s stage in the national construction task, BIDV has changed and developed to affirm decisive
role in investment and development areas.
BIDV functions as a universal commercial bank providing a full range of currency, credit, banking,
and non-banking services, and acting as an authorized agency funding projects with sources from

domestic and international financial institutions.
However, to make it become the unique in the banking system and in customers’ eyes, since the
establishment date, BIDV has set its own vision that is to become a leading Vietnamese banking group
with booming international operations and high respects and trust of clients. To be more specific, the
bank expanded credit services in wholesale market in several specialized fields such as aquaculture
sector, electric sector and real estate sector. On the other hand, in retail market, BIDV focused on
improving the quality of customer care services and controlling the market.
4. Business volume

Table 1: The comparison of business volume in BIDV (Unit: million VND)
INCOME STATEMENT
Year
2013

2014

2015

Revenue (1)

21,906,624

24,712,164

8,623,895

11,087,176

6,985,696

5,676,332

5,310,666

6,297,033

7,948,656

4,065,080

4,985,667

6,376,756

Operating Expenses (2)
Provision charged
expenses (3)
Profit before tax
(1-2-3)
Profit after tax

7,525,819

to

Source: Annual financial report of BIDV (2013, 2014, 2015)

Table 2: The Balance Sheet of Business Volume of BIDV

(Unit: million VND)
BALANCE SHEET
Year
Asset
Placements at and loans to
other credit institutions
Loans to customers
Liabilities
Customer deposit
Valuable paper issued
Placements and borrowing
from
other
credit
institutions
Equity
Efficiency indicators (%)
ROA
ROE

2013
548,386,389
47,658,555

2014
650,340,373
50,062,372

2015
850,669,649

67,260,645

384,837,316
516,190,107
330,135,418
47,565,280

439,070,127
616,734,174
440,471,589
20,077,031
86,186,209

590,917,428
808,334,189
564,583,061
65,542,240
79,758,318

32,196,282

33,606,199

42,335,460

0.78
13.8

0.83
0.79

15.27
15.5
Source: Annual financial report of BIDV (2013, 2014, 2015)

5. Product lines

CREDIT
CREDIT ACTIVITIES
ACTIVITIES

OTHER
OTHER ACTIVITIES
ACTIVITIES

MOBILIZING
MOBILIZING ACTIVITIES
ACTIVITIES

PAYMENT
PAYMENT SERVICES
SERVICES AND
AND E
E
BANKING
BANKING

TRADE
TRADE FINANCE
FINANCE

Credit activities
The bank make a loan for customers including personal loan, car loan, working capital loan, loans for
fixed asset investment or corporate overdraft.
Mobilizing activities
There are a variety of accounts provided by the bank such as: deposits account, fixed deposit account
or Tich luy bao an savings account. Therefore, all clients can choose any products that are most
suitable for them to use.


Trade finance
This activity of BIDV supports customers when they buy and sell in foreign exchange market in three
areas: export finance, import finance, and international payment.
Payment services and E-banking
The bank provides customers a wide range of payment services through BIDV Business Online, credit
card, debit card, visa card, or collection by list.
Other activies
In addition to several activities that I mention above, BIDV also provides other activities like online
export-import tax payment, supply chain financing, domestic and cross-border fund transfers, fixed
income or overseas study
5. Competitors

Competition in the banking industry is increasing fiercely when many corporations, which are BIDV’s
core customers, urgently established bank, financial companies. The bank will be under pressure for
the loss of major customers and key employees because a series of new-established banks expected to
require thousands of senior personnel. There is a competition among BIDV with all the banks in the
industry, including Vietcombank, Agribank, Vietinbank and Military Bank.

II.
Organizational structure of BIDV
1. Organizational chart

2. Number of employees
BIDV has 18.231 employees to, 31/12/2013, which satisfies essential and stable resources needs

throughout the bank. All of these employees will transfer to JSC BIDV after equalization process.
3. Main offices

Headquarters : 35 Hàng Vôi, Hoàn Kiếm District, Hà Nội, Vietnam
Website
: www.bidv.com.vn
Nature of business : Joint Stock Commercial Bank
Tel : +84-4 2220 0422
Fax : +84-4 2220 0399
Email:
4. Introduction of all departments
4.1. The Customer Relationship Department
- Consumer banking division takes responsibility for bringing out business projects to interest
-

personal customers and tackling matters connected with cards and debt management.
Corporate banking division has a duty that is almost the same as consumer one, but the subjects
are corporations. In addition, it also derives the demand of international payment from
companies. This department is responsible for maintaining and developing the relationships

between BIDV and its large corporate customers. Specifically, the Customer Relationship
4.2. The Risk Management Department
The department takes responsibility for controlling credit operations, credit risks and other risks
that the Bank may encounter. This division also examines the risk from potential business
operations proposed by other divisions.

4.3. The Operations Department

In BIDV, this department has responsibility for payments and direct collection-payment. In
particular, this division handles domestic payment, international money transfer, and SWIFT
telegraphic transfer; loan management, customer services, and trade finance activities.
4.4. The Internal Affairs Department

The Internal Affairs Department is in charge of financial accounting information for the Bank and
its subsidiaries. This department also manages financial operations for the transaction office and
general accounting, as well as responsible for financial analysis and monitoring.
4.5. Subsidiaries

All Subsidiaries throughout the country provide support to the Bank’s business activities and
overall transactions.
Consumer banking division takes responsibility for bringing out business projects to interest
personal customers and tackling matters connected with cards and debt management.


Corporate banking division has a duty that is almost the same as consumer one, but the subjects are
corporations. In addition, it also derives the demand of international payment from companies
5. Comments on the organizational structure

Organizational structure has transformed toward the model of a modern, international financial group.
The organizational structure of BIDV follows the model of functional activity (credit – service –
capital) which brings subjectivity in the design model that does not effectively analyze the needs of
whether the individual or clientele and not effectively identify customer’s needs, which may lead to
disorientation.

PART 2: INTERNSHIP ACTIVITIES AT CUSTOMER RELATIONSHIP MANAGEMENT
DEPARTMENT IN BIDV DONG DO

I.

A brief introduction of BIDV Dong Do Branch.

BIDV - Dong Do branch established basing on the upgrading of trading division 2-Exchange 1. The
branch started its operation from July 31, 2004 according to Decision 191/QD – HDQT on July 05,
2004 of BIDV’s Board of Directors. The establishment of BIDV Dong Do conforms to restructuring
process, associates with comprehensive reform and sustainable development with a high growth rate,
promotes traditional investment and development in services, and diversifies customer of all economic
sectors. Furthermore, BIDV Dong Do helps to improve and enhance the quality of banking services,
improves the efficient of safety system required by the market economy and integration roadmap, as a
core for building a strong financial corporation.
The main office of this branch is located at 14 Lang Ha Street, Ba Dinh Ha Noi. As the branch is right
at the crossroad between Lang and De La Thanh Street, it is quite convenient to provide the Bank's
products and services to people and businesses.
II.

Nature of BIDV Dong Do Branch

As one of pioneer establishments in banking system, BIDV focuses on deploying retail-banking
operation, making medium and long-term loans, enhancing services to satisfy customers. Moreover,
BIDV operates following one-door trading model for business process and modern banking
technology.


III. Organizational structure of BIDV Dong Do Branch

DIRECTOR
DIRECTOR

DEPUTY
DEPUTY DIRECTOR
DIRECTOR

Integrated planning

DEPUTY
DEPUTY DIRECTOR
DIRECTOR

Accounting Department

Department

Risk Management

Customer Services

Department

Department

Office

IV.

DEPUTY
DEPUTY DIRECTOR
DIRECTOR

DEPUTY
DEPUTY DIRECTOR
DIRECTOR

Customer Relationship

Transaction Department

Management Department

1,2,4 Hang Bong

SVS Team

Credit Risk
Department

Computing Team

Starting and ending dates of my internship at BIDV Dong Do Branch


Starting date
Ending date

4 January, 2016
27 May, 2016

V.
Full description of CRM Department in BIDV Dong Do Branch

1. Organizational structure of CRM Department

Head
Head of
of CRM
CRM Department
Department

Mr .......................

Deputy
Deputy of
of CRM
CRM Deparment
Deparment -- Trade
Trade finance
finance section
section

Mr .........................

Deputy
Deputy of
of CRM
CRM Deparment
Deparment -- Credit
Credit section
section

Ms .........................

Source: Data of Administration
There are 11 people in the CRM department, where I carried out my internship. The head of CRM
department, Mr. ……………., is responsible for all loans of all members under his guidance. He is a
person who provides short – term plans, long – term plans, examines, and supervises all activities in
the CRM department.
In the department, there are two deputy managers, Mr ……………….. and Ms …………….. who are
in charge of 2 different areas. Ms ……………… is responsible for Trade Finance services while Mr
………………….. takes full responsibility for assessment of all the loans.
Other staffs in the department get the blame finding and caring corporate customers. They have to do
some sale skills to find out customers. After that, all staffs have to learn about their need and problem
in order to solve their problem and offer effective services for them. Importantly, the staff has to assess
their customer, business, and project to make sure that they can pay back for the bank.


2. Current activities of CRM department in BIDV Dong Do Branch

Marketing and developing
customer relationship

Other activities

Current activities

Credit services

Trade finance transactions

2.1. Marketing and developing customer relationship
- Advising and proposing policies and plans for developing customer relationship

- Direct marketing and sale of products (products wholesale, trade finance, venture capital and
-

currency, ...):
Responsibility for establishing, maintaining and developing partnerships with customers and

•

selling banking products:
Credit services
Direct proposing limits, credit limits and credit proposal
Monitoring and managing the operations of our customers.
Classifying and examining risk detection.
Accepting full responsibility for:
Finding customers, developing credit activity (business), growth, and credit performance

•

(business) of the Branch.
The completeness, accuracy, and truthfulness of the information customers providing reports to
cater the grant of credit for customers.


•

All credits granted comply with regulations, procedures, regulations on risk management and

risk level of the bank, are legal and credit conditions.
• The safety and effectiveness for the proposed loan to provide credit decision.
- Handling the bad debts

2.2. Trade finance transactions
- Managing trade finance transactions at the branch, in coordination with the departments related
to development approach customers use the trade finance products and sales of products for
trade financing BIDV.
- Receiving requests from customers for trade finance services, testing and counseling records in
collaboration with units at Headquarters branch and implementation of trade finance
transactions.
- Responsibility for the development and improving the efficiency of business cooperation
foreign branches.
2.3. Other activities
- Information Management
- Implementation of foreign currency transactions with customers in the process, the current

regulations of the Bank. Responsible for the accuracy, correctness, safety, and capital assets of
the branch / customer and the Bank.
- Performing other duties as required by the Branch Manager.
3. Activities performed during my internship
During my internship, I run as an errand for Ms ………………. who is one of staffs in CRM
department. My job is divided into 3 periods and each period corresponds with a special task.
In the first period, I gained some general information about current situation of bank that I have
worked. Firstly, I had to read all the financial report of Dong Do branch as well as report of CRM
department to know thoroughly about current situation of this branch, especially about financial
situation, business development situation. Secondly, because understanding banking products
thoroughly is quite necessary, I asked Ms …………….. about all credit products that BIDV branch
Dong Do applied to customers to read and analyze strengths and weaknesses of them. Finally, I
obtained more information about project assessment process of corporations
In the next period, I also gained several valuable knowledge about telesales skill that is an effective
way to find out and meet the need of customers. This skill requires telephoner to have well at listening
and understanding customers as well as provide them solutions to solve their problem as good as
possible. I practice telesales skills and figure out the need of some corporate and found that Stone base

need to borrow money to invest project.


In the last period, I learn about the way to assess credit of customer as well as project of company
(Stone base). I support to Ms………………. to assess customers and projects basing on knowledge of
subjects that I have learnt in Banking University.
To be more specific, the timetable below will illustrate clearly about my activities performed during
my internship.

04/01/2016 –
17/01/2016

18/01/2016
01/02/2016

I have an overview about
branch that I intern
including general
information of BIDV Dong
Intergrated planing
Do, structure and function
department
of all department. I also
knew more information
about financial report of
this bank in 2015
- Making the
acquaintance of all
members in
department

- Gain some more
– Customer
relationship
information about
management department
products that offer
to customers,
overview of
assesment and credit
process

02/02/2016 –
01/03/2016

Customer relationship
management department

02/03/2016 –
20/05/2016

Customer relationship
management department

Translating theory into
practice: find customer
who have the need of
borowing by telesales way
– Stone base joint stock
company
Practise to assess project

under the instruction of Ms
Vui Nguyen

PART 3: CRITICAL ANALYSIS OF CREDIT ASSESSMENT IN BIDV DONG DO
Theoretical concepts
In the credit grant process, credit assessment is one of essential steps for several reasons. The first
reason is that the results obtained are one of the important bases for making capital investment
decisions of the bank and examining the use of funds for the right purposes and capital adequacy.
Furthermore, all staffs in bank can consider the payback period of the project and the repayment ability
of investors. To do this, banks will require the borrower to prepare and submit investment projects. On


that basis, the bank will conduct synthesis and evaluation of projects by investors in a more objective
way along with other information sources. The appraisal of investment projects is the basis for
determining the amount of bank loans, loan period, the fair debt collection and the time for capital
projects.
In summary, for the bank, the appraisal of investment projects is very important. This will help the
bank achieve targets on safety and effectiveness in the use of capital, reduce delinquency and bad debt,
limiting the possible risks to the bank.
There are three ways to assess a project as the chart below
II.
Current business situation
1. Brief introduction of bank’s project assessment situation at CRM department in BIDV Dong
1.1.

Do and “Stone Base” project
Project assessment situation at CRM department in BIDV Dong Do

Table: the proportion of successful projects between 2013 and 2015
Target

Total number of projects
approved to make loans
A number of successfully
implemented projects in reality
The rate of successfully
implemented projects (%)

2013

2014

2015

105

140

220

105

140

220

100

100

100

20

32

14.29

14.54

The number of adjusted
17
projects
The rate of adjusted projects
16.19
(%)
Sources: Branch’s report of BIDV Dong Do

Annually, BIDV Dong Do has assessed about 155 projects on average, including small, medium, and
large ones. When it comes to the successful project percentage, it is clear to see that all the project
were implemented in reality. However, some projects still have to adjust to meet the BIDV Dong Do’s
requirement. As a result, in general, the assessment quality at the bank seems to be good.
In BIDV Dong Do, an effective method applied to assess project is Comparing indicators method,
which I have been learned in my internship period. Therefore, I would like to focus on this method.
Currently, BIDV Dong Do has implemented the project assessment process below:


PROJECT ASSESSMENT PROCESS

THE LEGALITY OF PROJECT

1.2.

THE NECESSARY OF

THE EFFECTIVENESS OF

THE EFFECTIVENESS OF

PROJECT

MARKET OF PROJECT

TECHNOLOGY

FINANCIAL SITUATION

“Stone Base” project

In order to have a clear insight about assessment process of BIDV Dong Do, we will study more
through Stone Base project. Before CRM Department in this bank makes a decision whether they
should invest money into this project or not and considers about how much money they should put into
it, they have to assess “Stone Base” project carefully. The effective method that is used for this project
is comparing indicators method.
BIDV in general and CRM Department in particular has followed the common project assessment
process that I mentioned before. Stone Base project is a CONSTRUCTION INVESTMENT PROJECT
OF LIMESTONE PROCESSING PLANT of STONE BASE VIETNAM CORPORATION. After
staffs of CRM department examined all the company’s document basing on the provisions of the law
such as the State corporate law or corporate law, the legality of this business and “Stone Base” project
was accepted. The next stage is that CRM staffs examined the stability of the project’s necessity. It is
necessary for Stone Base Corp to invest in this project because there are a variety of benefits for

socia-economy. First, the project created more jobs for laborers in Yen Bai province and helped Luc
Yen district becoming one of the important places processing of white limestone powder in the
northern provinces, which increased revenues for the country’s budget. Furthermore, Stone base
project enhanced the existing business capabilities and business development in the future.
When the bank considered about the effectiveness of market and technology in this project, they
found that the market absolutely needed a large number of white limestone powder CACO, which is
illustrate in the table below.
Painting industry

12%

Produce plastic

14%

Paper

4%

Detergents

10%


Toothpaste and cosmetics

24%

Rubber

31%

Battery cylinder production

5%

Moreover, clerks also examine several input factors such as transportation costs, the distance from the
plant to the mine and some power Sources to consider about the company’s choice of location.
Because this location has a variety of benefits, Base Vietnam Corporation selected Luc Yen district –
Yen Bai province to implement this project and their choice was reasonable.
Finally, they assess the company’s financial situation following the process below:
ANALYZE FINANCIAL PLAN

Analyze the forecast of market need

Analyze the forecast of produce need

ANALYZE ANUALL REVENUE AND EXPENSE PLAN

CALCULATE ANNUAL CASHFLOW

ASSESS THE EFFECTIVENESS OF FINANCE

ACCEPT OR REJECT

By following this process, clerks in BIDV Dong Do highly appreciated the financial situation and the
credit-worthiness of Stone Base Viet Nam Corp.
In summary, all staffs in CRM department followed the right assessment process and they decided to
set its rate for medium- and long-term loan up to 5 years at 10 percent a year for Stone Base Corp. The
loan limit is up to 8,000 million VNĐ and the principal and the interest can be paid back monthly or up

to per three months.
2.

Advantages and disadvantages of project assessment of BIDV Dong Do Branch

On the one hand, the assessment process of BIDV Dong Do is beneficial in some ways. Firstly, it is a
traditional bank with investment loan project and they applied the new model process of project
assessment. This is likely to be scientific, close, and effective method, which each department had
particular task clearly and staffs can examine each other. As a result, the quality of project assessment
in the bank will improve. Secondly, and the personnel department in BIDV Dong Do always chooses a
person with good ability and is organizing the training of members of staff, which leads experienced


human resources for the bank. Finally, Dong Do branch focuses on science and technology. They have
a wide range of computer network that supports editing, computing and recording of customer loans
more efficiently and faster
On the other hand, the process of assessment has several drawbacks. The first problem is that during
the financial evaluation of the project, the indicator calculation of corporation’s financial situation
applying for loans is sometimes superficial. Thus, it is difficult for banks to make disbursement
decisions. The second problem is that the bank now applies a traditional method, which does not focus
on specific fields. As a result, the evaluation does not gain the highest results. Furthermore, the new
model process need more time to evaluate a particular level of its performance. Next, Content analysis
does sometimes not ensure by a small number of indicators that staffs are not interested in, so they
cannot have an overview and deep analysis of issues. Finally, Information provided by borrowers often
limits in quantity and quality of information.
3.

SWOT Analysis
3.2.
Strengths

- Strong and high reputation bank
BIDV is a large state-owned bank in Vietnam. It is the country's number one bank in net income
($70 million USD) and the second biggest bank by assets ($18.8 billion USD) as of 2012,
-

behind Agribank.
Professional capacity of staff is good
Professional and objective assessment process

-

Effective risk management

3.2.
Weaknesses
- Lack of human resources to evaluate projects which is far from the branch area.
-

The quantity and quality of information is limited

-

Complicated assessment process

Process is sometimes too rigid requiring flexibility and more creative process. Thus, we can avoid
wasting time of evaluation.
-

Computer network quality do not upgrade regularly

Although bank has a wide range of the computer network but its quality does not ensure. Software
used is Excel and computer crashes situation still exists. Moreover, there is no regular maintenance
and upgrade for computer network, which leads to the postponement of assessment to fix it when
having problems.


3.3.

Opportunities

- International integration brings more facilitation
- The diversification of operations and expansion in products and services in activities of credit
services and project assessment.
3.2.
Threats
- Risks in collecting customer information sources for projects outside the province
- Economic factors changing affects the evaluation quality
- Dishonest situation and the limited capacity of the borrowers
- The fierce competition among banks
- Legislation system is inadequate, incomplete and incomprehensive

PART 4: RECOMMENDATIONS FOR IMPROVEMENT AND CONCLUSION
I.
Recommendations
1. Solution in human resources

BIDV Dong Do branch needs to recruit more staffs to meet the requirement of assessment task. When
recruitment, the employers need to ensure that the candidates must graduate from college or higher
along with the wide knowledge about diversified fields, good human dignity, enthusiasm, and high
responsibility. Furthermore, the bank also need to have preferential policies to encourage and attract

talents, then organize some trained programs for them to strengthen professional skills and
comprehend knowledge in this job.
2. Solution in information quality

Information plays an important role because it directly affects the project evaluation. If the information
gathered quickly, accurately and completely from many different reliable sources, the assessment
process will conduct smoothly with higher accurate results.
If the information comes from loan documents, clerks of BIDV Dong Do need to examine carefully its
accuracy. Bank staffs also need to have a new department that specializes in collecting, sorting, and


analyzing information, and then uploading in the internal information system. It is essential for them to
update the information daily. Thus, clerks can monitor and promptly make accurate assessment.
The clerks should expand relation to Vietlaw, CIC to collect accurate information on the relevant laws
and policies, customer loan’s information. However, this source of information costs a great deal, so
the staffs should use in the most reasonable way.
3. Solution in technology

The bank should equip new software to facilitate assessment task. Instead of just using Microsoft Excel
to calculate the financial ratios, we should use Microsoft Project software that can manage, keep track
of project progress, and control risks more effectively. In terms of features, the software operation is
simple to use as well as easy to understand.
4. Solution in assessment process

BIDV Dong Do should propose a motion to make a flexible, efficient, and suitable assessment process
for branch. To be more specific, we can set clear rules on credit scoring criteria and evaluation of
projects in two rooms: CRM department and RM department. These criteria need unite to ensure a
deep project analysis in all aspects without controversy. Another solution is that clerks can add more
provisions on the time and cost of the evaluation according to the total amount invested in the project.
/>II.

Conclusion

This internship has been a useful and rewarding experience to me. A person cannot be competitive
enough without acquiring knowledge in both theoretical and practical aspects along with getting
exposure in the practical field. I have enriched both knowledge and skills in international payment
method. In addition, I also achieved several of my learning goals, and had a chance to meet many
people. Honestly, it was my opportunity to have the platform and foundation, which would
probably help me to approach to my future career connecting to Banking and Finance. Practical
knowledge is more important than the theoretical one in a sense that once the people enter into the
real work setting, diverse situation, novel problems, difficulties, and challenges arises which makes
the person more dynamic.
Thanks to the guidance of all the staff of Customer Relationship Management Department in BIDV
Dong Do, I have gained a deep knowledge and understanding of the basic concept, different
aspects, risks, and challenges of assessment process of investment project. Due to the short time of


this apprenticeship and lack of professional knowledge, the content of my internship report has
some inevitable limitations.

REFERENCES
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Website:
BIDV Annual Report 2013, conducted by

BIDV Annual Report 2014
BIDV Annual Report 2015
Book: ….. (MA) Project Finance
Peter Rose, “Commercial Bank Management” (3rd Edition), Irwin Publisher 1996