Phân tích SOWT về môi trường kinh doanh nghiệp vụ ngân hàng quốc tế tại ngân hàng TMPC dầu khí toàn cầu (GPBank) e

PHÂN TÍCH SOWT VỀ MÔI TRƯỜNG KINH DOANH NGHIỆP VỤ NGÂN HÀNG
QUỐC TẾ TẠI NGÂN HÀNG TMPC DẦU KHÍ TOÀN CẦU (GPBANK)

SWOT ANALYSIS ABOUT INTERNATIONAL BANKING SERVICES AT
GLOBAL PETRO COMMERCIAL JOINT STOCK BANK (GPBANK)

TABLE OF CONTENTS

Page

A

Fore word

1

I.

History and development

2

II.

Overview of international banking services of commercial

3

bank
1

International banking definition

3

2

Current international banking services provided by GP Bank

3

III.

SWOT

4

analysis

about

international

banking

services

environment at Global Petro commercial joint stock Bank
(GPBank)
1

Strengths

3

2

Weaknesses

5

3

Opportunities

6

4

Threats

7

IV.

Analysis on development policies on International banking

8

services of GP Bank

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A. Foreword
On 7th November 2006 Vietnam officially became 150 th member of World Trade
Organization bringing a lot of open international trading opportunities and a lot of
challenges as well which have required a lot of efforts and hard working from enterprises to
overcome and GP Bank is not an exceptional one.
Thanks to loosened regulations and lowering protection from the government,
banking system is open to create more chances for foreign banks to come to Vietnam and
doing business here.
Foreign banks have comparative advantages of capital, technology, managerial
professions and provide diversified banking products including perfect international
banking products. Hence, when joining Vietnam market, foreign banks will compete strictly
with domestic banks about international banking services which GP bank is currently
providing. Meanwhile Vietnamese commercial banks have not paid attention to
international banking products, only some big banks who have long history of operations
such as Vietcombank, BIDV, Vietinbank, ACB, Eximbank … are providing these kinds of
products.
Owing to advantages of capital, managerial professions, technology… foreign banks
will expand its network to attract big customers. In so doing, foreign banks will expand its
market share to increase its competitiveness. Awareness of this threat, all commercial banks
in Vietnam including GP bank has to develop long-term strategy to improve its
competitiveness with domestic and foreign banks. Doing SWOT analysis on GP bank

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international banking services plays a critically important role for GP bank to strengthen its
available resources and overcome its limitations to become a multi-purpose, modern urban

bank.
I. History and development.
Global Petro Commercial Joint Stock Bank (GP.Bank), previously known as Ninh
Binh Rural Commercial Joint Stock Bank, has officially became the urban commercial joint
stock bank, operating in Hanoi capital since 07/11/2005.
Currently GP bank has charter capital of 3.017 billion dong with more than 2.000
employees and 200 branches/ transaction office nationwide.
GPBank has Vietnam national gas and oil group (Petro Vietnam) to be its strategic
shareholder which is one of the strongest corporations in Vietnam with capital contributions
by 20%.
GPBank has an active, young board of management with a lot of experiences in
managing in banking activities in both domestic and foreign financing-monetary market.
GPBank is one of the first bank to implement core banking from Temenos from Switzerland
successfully, this software allows bank to offer wide ranges of modern products to improve
its service quality.

II. Overview of international banking services of commercial bank
1. International banking definition
International banking services include all services requested by customers related to
international trading, commerce and investment ...
2. Current international banking services provided by GP Bank
1. International settlements
2. Transactions about capital in international market

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3. Foreign currency exchanges
4. International credit cards
5. Other services

III. SWOT analysis about international banking services of Global Petro commercial
joint stock Bank (GPBank)
In order to do analysis on business environment on international banking products
provided by GP bank, we apply SWOT to figure out external factors (opportunities and
threats) and internal factors (strengths and weaknesses) which have impact on GP bank
operations.
1.Strengths.
Firstly, GP bank keeps expanding its network of branch/ transactions office
nationwide together with increasing charter capital at the high amount.
Increasing charter capital not only strengthens customer prestige on healthy financial
situation of the bank but also it is a background for GP bank to expand its branches across
the country allowing individuals and enterprises to approach banking services easily and
effectively. During the last years, GP bank has increased its charter capital from 2.000
billion dong to 3.017 billion dong, it is estimated to reach 8.000 billion dong in August
2012.
Table 1: The number of networks of a few commercial banks in Vietnam over the years.
Bank

Năm 2008

Năm 2009

Năm 2010

GPBank

63

74

90

HSBC

7

8

16

Source: GP bank Annual report 2011)
Number of branches/office transactions has continuously increased in recent years at
the average rate of 20% comparing to previous years. There was only 63 branches/office
transactions in 2008, reaching 90 office transactions across country in 2010. GP bank has its

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correspondent banks, transaction offices in almost provinces and cities in Vietnam. It is
obviously proved that GP bank actively spreads its business area.
Secondly, GPBank has been modernizing, applying modern technologies in
managing banking activities step by step. GPBank is one of four banks that has successful
applications of core banking system software (Core Banking - T24) of the Temenos of
Switzerland which is an advanced software, allows to develop a lot of new products and
improve service quality, improve competitiveness in international banking activities.
Thirdly, Focusing on study on international banking services diversification.
GPBank studied to deploy new products like underwriting, factoring in imports and
exports, foreign exchange future contracts, option contracts in foreign currency trading.
Fourthly, Understand domestic customers and attracts large amount of loyal
customers

In recent years GP bank has adopted a good policy on customer care and actively
improved service quality, paid attention to customer benefits especially import-export
operations, small and medium enterprises. GP bank market share for international payment
segmentation is 10 %. Revenue from international settlements achieved over 100 billion in
2011 .
Fifthly, banking service charges are relatively low compared to other domestic
banks and foreign bank branches
In considering service fee schedule for L / C payment, fee from GPBank is only
70% of Standard Charter Bank’s charge, it means that is about $ 27.5 for a L / C for a
contract value below $ 100,000. This is one comparative advantage for GPBank in
expanding international banking products and attracting more international customers.
However, in international

payments in foreign

trade, contracts have

high

value, so

enterprises often choose the prestigious bank providing good service quality and have
a plentiful amount of foreign currency.
Table 2. Fee schedule for international settlement services between GPBank and Standard.

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No

Products

Fee
GPBank

Standard

Letter of credits
1

L/C - import

1.1

Deposit: 100%

L/C issuance

0.075% of L/C value

0.1% of L/C value

Min: 20USD; Max 200 USD

Min: 40 USD +
electric charge

Deposit is lower than 100%

0.1% of L/C value +

Part of deposit : 0.075% of

25 USD.

L/C value
Part of without deposit 0.15%
of L/C value
Min: 20USD
1.2

L/C 10USD + electric charge +

30USD

cancellation

others

L/C payment

0.2% of L/C value

0.125% of LC value

Min 20USD: Max: 500 USD

Min 25 USD

1.3

(Source: www.gpbank.com.vn ; www.standardcharteretbank.com.vn )
2. Weaknesses.
Firstly, GPBank capacity is much lower than requirements for global integration.
According to Decree of the Government 141/2006/ND- CP dated 22/11/2006, legal
capital required for commercial joint stock bank is 3.000 billion dong until 2010.
Meanwhile, GP bank has its charter capital of 3.170 billion until the end of 2012.
Table 3:Charter capital of some commercial banks in Vietnam and in the world 2012.

Bank

Charter capital (billion dong).

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GPBank

3.017

Sacombank

10.739

Standard Vietnam

3.000

(Source :www.gpbank.com.vn; www.sacombank.com.vn www.standardchartered.com.vn ).
Low capital level reduces its ability to expand international payment services such as

underwriting, issuing L / C ..... and reduces its reputation to partners as well.
Secondly, operating capacity, expertise in

the

field

of international business payment is weak, foreign currency reserves are not high.
GPBank started switching

to

become

an urban commercial

bank in

early

2005. Compared to other foreign banks such as HSBC, Standard bank,…GPBank is still
young in

international

payment operations, staffs do not rub

business

operations,

English skills are weak to communicate, banking products have not met requirements from
individuals and corporations.
On the other hand, foreign currency reserves of

GPBank have not satisfied

customers’ needs, so in recent times, some companies have moved to other banks which
have hard currency reserves as, HSBC, AN Z, Vietinbank, Eximbank, ....
Thirdly, quality of uman resources is not high.
Officers who are in charge of international settlements in GPBank, has mainly
being

working

for

payments, but English

long

years, with

experiences

proficiency is

limited,

in

the

field

of international

besides GPBank recruits new

employees from foreign trade university, Economics, Finance, who are young,
energetic, have good command of foreign languages, but lacks practical knowledge and
experiences in international payments.
International payment operations hide a lot of risks not only domestically but also
internationally. Therefore, GPBank needs to have qualified staffs with sufficient professions
and foreign language abilities.

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Fourthly, level of international banking diversity has not varied.
Currently, GPBank only

focuses

on

developing L/C

payment, TTR

transfer, negotiation of documents, guarantees, and other operations which have not been
implemented, or arise very little. In foreign curreny trading, it mostly uses spot service
(immediate delivery), other business operation on monetary trading are applied a few due to
due to insufficient management abilities, as well as professions of staff ,failing to meet job
requirements.

3. Opportunities
Firstly, Vietnam's WTO accession will increase prestige and position of Vietnamese
Bank in the international market.
After Vietnam joined the WTO, it will bring enterprises in general and banks in
particular including GPBank opportunities to spread their images in the international
market, thereby expanding cooperations with foreign partners.
In recent years, GPBank has developed to expand its correspondent banks abroad
helping GPBank to develop international banking products actively.
Table 4: Number of correspondent banks of GPBank and some Vietnamese
commercial banks in 2011.

Vietinbank

GPBank

BIDV

850

308

800

Number of correspondent banks

(Source: www.vietinbank.com.vn; www.gpbank.com.vn; www.bidv.com.vn )
Increase in the number of agent banks helps GPBank to expand international
payment operations and improve service quality, prestige in the domestic market and in the
world.
Secondly,

expansion

of economy

creates

joint ventures with foreign partners.

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opportunities

for partnerships,


Expansion of economy creates chances for foreign banks, large corporations which
have strong capital, technology, managerial skills to come to Vietnam and becomes partners
local banks. In

recent

times,

there

have

been

many foreign

banks,

multinational corporations performing capital contribution, joint venture with Vietnamese
banks such as strategic partner of VP Bank is Singapore's OCBC Bank, holding 15% of
equity, Sacombank has its strategic partner to be Australia's ANZ holding 10% of equity.
If GPBank find

its suitable

partners for joint venture

with

banks

or

large

foreign companies, GPBank will take advantages of capital, technology and modern
management

experiences of foreign

banks thereby

improving high prestige

and competitiveness domestically and internationally.
Thirdly, strong development in import and export activities give GPBank an
opportunity

to develop

international banking

products,

especially international

payments and financing imports and exports.
In recent years, import and export activities of Vietnamese enterprises have been
increasingly expanded and developed, in both quantities and values. Thus, needs to use
international payment services is really high, this is an opportunity for GPBank to develop
international payment services and import and export financing.
4. Threats
Firstly, Vietnam’s openness to international economic integration increases number
of banks with capital resources, technology and management.
Foreign banks have strong financial resources, technology and advanced managerial
levels are allowed to open branches in Vietnam and perform joint ventures with local banks
to form banks with comparative strengths to edge competition with domestic banks such as
Citibank, ANZ, HSBC, ACB, BIDV, Vietinbank ...

These banks continuously open branches in major cities with good location which is
very convenient for business in order to compete with GPBank.

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Secondly, in the process of international economic integration, GPBank operations
gets huge impact from world financial markets.
As the world financial market is more volatile, especially global economic crisis will
affect GPBank business operations. GPBank will be at risk in international payments of
reducing its credibility if its agent bank goes bankrupt or meets financial difficulties.
Thirdly, exchange rate is more complicatedly volatile.
Vietnamese enterprises often use U.S. dollar, euro, yuan and other currencies of some
countries in international payment, fluctuations in exchange rate would create risk of
foreign currency trading. In recent times, black market (illegal market) strongly developed
and rate is generally higher than rates offered by banks including GPBank. Hence, when
purchase price is higher than free market, businesses and individuals usually buy in black
market, an when

rate is low, companies seek to sell in black market that has great

influences on foreign currency reserves of GPBank in particular and Vietnamese banks in
general.
IV. Analysis on development policies on International banking services of GP Bank
In recent years, GPBank has had outstanding development, a network of
branches/office transaction is extended in all provinces and cities nationwide, concentrating
on populated areas, a lot of import and export operations, so revenue, profits have achieved
or exceeded targets. Therefore, focusing on product development and improve the quality of
customer service is a priority for GPBank.
To diversify products, improve service quality, May 2011 GPBank was officially

upgraded to the T24 core banking software V.5 to T24 V.8, a modern software which are
currently used by foreign banks. This software allows GPBank to develop various new and
modern products and services, including international payment products.
With T24 V.5 software, GPBank only launches international payment products such
as

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+ Telegraphic transfer (TTR),
+ L/C - export, L/C – import,
+ Bill of exchange – import,
+ Bill of exchange – export.
+ Factoring – import
With T24 V.8 GPBank software has built and developed new of international
payment products such as:
+ International payment for MasterCard, Visa,
+ Letter of credit,
+ Factoring
+

Forfeiting service

+ Foreign currency trading
Software has many excellent characteristics of not limiting number of participants,
able to perform multiple transactions at once, easy to control and fast processing speed, can
be upgraded other convenient products and services.
In recent years, Party and Government have issued policies to encourage and give
priority to import, export activities, especially export, this is an opportunity for GPBank to
develop its international payment products and services.

With a team of staff with good qualifications, network in all provinces with modern
technology (T24 V.8), diversified products and services, GPBank has gradually developed,
attract more enterprises to use international banking services, thereby enhancing GPBanks
position in domestic and international market.

Tài liệu tham khảo:

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1. Dr Nguyen Minh Ngoc, Marketing Management Curriculum
2. Prof. Dr. Le Van Tu, International Banking, Youth Publishing House, 2009
3. />4. ; www.standardcharteretbank.com.vn;
5. ; www.bidv.com.vn ; www.sacombank.com.vn
6. Annual Report of GPBank.

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