The customer’s satisfaction in ho chi minh city branch of commercial bank for investment and development of vietnam joint stock company (BIDV HCM)

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

TRAN NGOC LAN

THE CUSTOMER’S SATISFACTION
IN HO CHI MINH CITY BRANCH OF
COMMERCIAL BANK FOR
INVESTMENT AND DEVELOPMENT
OF VIETNAM JOINT STOCK
COMPANY (BIDV HCMC)

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2019

1


UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

TRAN NGOC LAN

THE CUSTOMER’S SATISFACTION
IN HO CHI MINH CITY BRANCH OF
COMMERCIAL BANK FOR
INVESTMENT AND DEVELOPMENT
OF VIETNAM JOINT STOCK

COMPANY (BIDV HCMC)
MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: PROF. TRAN HA MINH QUAN

Ho Chi Minh City – Year 2019

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EXCUTIVE SUMMARY
Nowadays, in the context of the economic environment, the competition among
the commercial banks in Vietnam to increase their scale as well as their profits is
unavoidable. According to Vyas V and Raitani S (2014), there are many elements
that affect to the switching of customers ‘behavior when they work with the banks.
One of the most important elements is the customer satisfaction. Therefore, the
commercial banks now will focus on developing the products; improve the quality
of services so that they can please their customers, increase the level of customers’
loyalty
The primary research and the secondary research will be used in this report so that
we can analyze and conduct the results about how the customer’s satisfaction
effect on the loan scale in Ho Chi Minh City Branch of Commercial Bank for
Investment and Development of Vietnam. After researching, the information and
data will be used so that we can give some recommendations about what the
managers as well as the board of director of Ho Chi Minh City Branch of
Commercial Bank for Investment and Development of Vietnam should do to
improve their customer satisfaction in order to increase the loan scale, achieve
more profits and complete the assigned business plan in this year as well as the
following years.

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ACKNOWLEDGEMENTS
I would like to acknowledge all people who supported me during the time I
studied in ISB. Without them, I could not be here today.
I would like to thank all my lovely friends, my sweet colleagues and my dearest
classmates at ISB and BIDV for helping me complete the program.
I also would like to thank my best supervisor - Professor Tran Ha Minh Quan for
supporting me, give me many advices, and guidance me through the time of
making this report. I would not complete this report without his helping.
Especially, I would like to send my sincere thankfulness to my parents and my
husband for their encouragements and supports.

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TABLE OF CONTENTS
EXCUTIVE SUMMARY
ACKNOWLEDGE
I.

INTRODUCTION
1. The company background
2. The structure

II.

PROBLEM CONTEXT
1. The reducing in loan scale of Bank for Investment and Development of

Vietnam – Ho Chi Minh City Branch (BIDV HCMC)
2. The customer’s satisfaction in Bank for Investment and Development of
Vietnam – Ho Chi Minh City Branch (BIDV HCMC)

III.

PROBLEM IDENTIFICATION
1. Interest Rates
2. Inexperience and untrained employees
3. Security and privacy
4. Late in processing loan disbursements
5. Cause – Effect Map

IV.

CAUSE VALIDATION
1. Interest Rates
2. Security and privacy
3. Late in processing loan disbursements
4. Inexperience and untrained employees

V.

RECOMMENDATION AND SOLUTION
1. Solution 1
2. Solution 2
 Final solution

VI.

ACTION PLAN
CONCLUSION
REFERENCE
APPENDIX

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I.

INTRODUCTION
1. The company background
Joint Stock Commercial Bank for Investment and Development of Vietnam was
established on April 26, 1957 as Vietnam Construction Bank. Over 60 years of
construction and growth with two name changes and added functions and duties,
Joint Stock Commercial Bank for Investment and Development of Vietnam has
always successfully completed the tasks corresponding to each stage of
development of the country and achieves many honors as well as noble rewards
such as Independent Medal I,
Labor Medal I, The Labor Hero
in the renovation period, ...
Ho Chi Minh City Branch of Commercial Bank for Investment and Development
of Vietnam, which was established in 1976, is one of the largest branches in the
Bank for Investment and Development of Vietnam system with a total assets of
VND 10,000 billion and a number of staff is nearly 300 people.
After 40 years of construction and operation, Ho Chi Minh City Branch of
Commercial Bank for Investment and Development of Vietnam has always
excellently fulfilled its responsibilities for each stage of development of Vietnam.
Since the beginning of founding till now, Ho Chi Minh City Branch of
Commercial Bank for Investment and Development of Vietnam has always been

the flagship of the industry as well as one of pioneer and dynamic branches of

3


BIDV in developing new products and services to serve customers. With the motto
"Sharing Opportunity, Successful Collaboration", Ho Chi Minh City Branch of
Commercial Bank for Investment and Development of Vietnam has been very
successful in its role as the lead bank for arranging syndicated loans, co-financing
large-scale investment projects. In 40 years, Ho Chi Minh City Branch of
Commercial Bank for Investment and Development of Vietnam has sponsored for
many major projects in Ho Chi Minh City such as Tan Tao Industrial Park, Linh
Trung Export Processing Zone, Hung Vuong Street, Dien Bien Phu Street, Ben
Nghe Port, OBV Pharmaceutical Company, Phu My Steel Plant, Pomina Steel
Factory, New World Saigon Hotel, Exxon Mobil Unique Vietnam Limited,
Nguyen Van Linh Avenue belongs to new urban area Phu My Hung, Kinh Do
company...
2. The structure
Through more than 40 years of operation, Ho Chi Minh City Branch of
Commercial Bank for Investment and Development of Vietnam has always been a
pioneer and dynamic branch in modern and customer-oriented technology. Along
with the development of Ho Chi Minh City, Ho Chi Minh City Branch of
Commercial Bank for Investment and Development of Vietnam conducts a
comprehensive business, operating with all functions of the commercial bank
branch: currency trading, credit, banking services and Non-bank, to serve
customers of all economic sectors.

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PRESIDENT

VICE - PRESIDENT

VICE - PRESIDENT

VICE - PRESIDENT

VICE - PRESIDENT

Customer
Relationship
Department

The
Operational
Division

Internal
Management
Division

The
Subordinate
Units

-Customer

-Credit

-Planning -

Relationship

Management

General

Department 1

Department

Department

-Nguyen Dinh
Chieu Transaction
Office (188
Nguyen Van Thu -

-Customer

-Customer Service

-Department of
Q1)

Relationship

Department

Finance -Tran Hung Dao

Department 2

-Management and

Accounting

-Customer

Treasury Services

-Human

(542 Tran Hung

Relationship

Department

Resources

Dao - Q5)

Department 3

-Risk Management

Department

-Ngo Gia Tu

-Customer

Department

Transaction Office

Transaction Office

Relationship

(306-308 Ngo Gia

Department 4

Tu - Q10)

Firuge 1. BIDV HCMC organizational structure
(Source: BIDV HCMC Human Resources Department)

5


The current organizational model of the Ho Chi Minh City Branch of Commercial
Bank for Investment and Development of Vietnam consists of 4 blocks, with 14
rooms, including 11 rooms at the head office – 134 Nguyen Cong Tru Street,
Nguyen Thai Binh Ward, Districts 1, HCMC and 3 subordinate units.
In Ho Chi Minh City Branch of Commercial Bank for Investment and
Development of Vietnam, we have four Customer Relationship Departments

which has almost 50 people (including manager and employees) who take care of
more than 50 companies, mainly production and trade companies.
II.

PROBLEM CONTEXT
1. The reducing in loan scale of Bank for Investment and Development of
Vietnam – Ho Chi Minh City Branch (BIDV HCMC)
In a world of globalization nowadays, the commercial banks play an important
role and are considered as the most important financial intermediary organization
of the economy in every country in the world. According to Quoc Thuy (2018), in
Vietnam, the three biggest commercial banks that we can count are Joint Stock
Commercial Bank for Investment and Development of Vietnam (BIDV), Joint
Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and
Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank). The
competition among these commercial banks is very fierce now. They have to focus
on developing the new customers as well as maintaining the current customers so
that they can increase the scale and maximize the profits.

6


Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch
(BIDV HCMC), Bank for Foreign Trade of Vietnam – Ho Chi Minh City Branch
(Vietcombank HCMC) and Bank for Foreign Trade of Vietnam – Ho Chi Minh
City Branch (Vietinbank HCMC) are the three biggest branches in the system of
these commercial banks because they contribute more than 20% of scale and
profits of their own banks’ system.
16.000.000
14.000.000
12.000.000

10.000.000
BIDV HCMC
8.000.000

VIETCOMBANK HCMC
VIETINBANK HCMC

6.000.000
4.000.000
2.000.000
2016

2017

2018

Firuge 2. Loan Scale in BIDV HCMC, Vietcombank HCMC & Vietinbank HCMC
from 2016 – 2018 (Source: Cafef)
In recent years, although the competition is fierce and the interest rate of Bank for
Investment and Development of Vietnam – Ho Chi Minh City Branch is quite
competitive compared to Bank for Foreign Trade of Vietnam – Ho Chi Minh City
Branch and Bank for Foreign Trade of Vietnam – Ho Chi Minh City Branch, the

7


loan scale of Bank for Investment and Development of Vietnam – Ho Chi Minh
City Branch did not grow as expected.
Specifically, from 2016 to 2018, the loan scale of Bank for Investment and
Development of Vietnam – Ho Chi Minh City Branch decreased 7 percent while

the loan scale of Bank for Foreign Trade of Vietnam – Ho Chi Minh City Branch
and Vietnam Joint Stock Commercial Bank for Industry and Trade – Ho Chi Minh
City Branch increased more than 10 percent. Based on the fact that Bank for
Investment and Development of Vietnam – Ho Chi Minh City Branch is one of the
biggest branches in Bank for Investment and Development of Vietnam system, the
decline in loan scale of Bank for Investment and Development of Vietnam – Ho
Chi Minh City Branch not only affects on the business plan of its own branch but
also affects on the business results of the whole systems. Therefore, this is the
urgent problem that Bank for Investment and Development of Vietnam – Ho Chi
Minh City Branch needs to solve so that they can increase both scale and profit as
well as maintain its position as one of the biggest and the most effective branches
in bank system
As we all known, Bank for Investment and Development of Vietnam – Ho Chi
Minh City Branch has four Customer Relationship Departments. The employees
of these Customer Relationship Departments have to take responsibilities about
loan scale as well as capital scale in order to complete the assigned business plan
in the end of year.

8


In more than 50 production and trade companies, there are 30 main companies that
are considered as the close customers because they have relationships over 10
years and take more than 80 percent of loan scale as well as bring more than 50%
profits of Bank for Investment and Development of Vietnam – Ho Chi Minh City
Branch. These 30 companies are divided into many different business groups such
as Chemical Production, Food Industry, Metal Steel Iron Manufacturer, Packaging
Industry, Real Estate Business, etc…

CHEMICAL (7)

FOOD (6)

METAL STEEL IRON (8)

PACKAGING (3)

REAL ESTATE (5)

TELECOMMUNICATION (1)

Firuge 3. Number of companies in each business/industry
(Source: BIDV HCMC Customer Relationship Departments)
Based on the financial statements, the companies’ situation and the profitability,
Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch
will consider granting a credit limit as well as appropriate lending rate for

9


companies. The customer will use it to pay for the companies’ production costs or
expenses in operation and development.
Year 2016 (MILLION VND)
Quarter 1/2016

Quarter 2/2016

Quarter 3/2016

878,386

2,907,256
961,175
85,105
1,464,602
115,029

852,564
2,769,056
871,327
79,909
1,415,341
95,231

995,706
3,049,741
986,601
96,728
1,490,179
105,234

1,090,727
3,364,454
1,102,447
102,560
1,544,504
134,778

Quarter 1/2017
772,031
2,689,372

866,545
70,127
1,479,054
99,133

Quarter 2/2017
743,169
2,818,804
852,849
77,132
1,473,170
86,221

Quarter 3/2017
873,639
3,071,974
974,510
87,343
1,490,997
101,447

Quarter 4/2017
994,450
3,368,264
1,075,716
97,768
1,499,736
148,015

T Quarter 1/2018 Quarter 2/2018

Quarter 3/2018

Quarter 4/2018

CHEMICAL
FOOD
METAL STEEL IRON
PACKAGING
REAL ESTATE
TELECOMMUNICATION

Quarter 4/2016

Year 2017 (MILLION VND)
CHEMICAL
FOOD
METAL STEEL IRON
PACKAGING
REAL ESTATE
TELECOMMUNICATION

Year 2018 (MILLION VND)

a
b

CHEMICAL
FOOD
METAL STEEL IRON

PACKAGING
l
REAL ESTATE
TELECOMMUNICATION

663,906
2,850,831
828,749
68,785
1,413,540
103,166

656,153
2,777,013
742,016
63,369
1,435,733
110,905

781,560
3,109,831
863,390
77,413
1,484,342
134,792

914,749
3,187,616
1,021,152
89,506

1,492,607
152,221

e
Table 1-2-3. Loan Scales in 2016 – 2018
(Source: BIDV HCMC Customer Relationship Department)
In recent years, although the interest rate of Bank for Investment and Development
of Vietnam – Ho Chi Minh City Branch is very competitive compared to Bank for
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Foreign Trade of Vietnam – Ho Chi Minh City Branch and Vietnam Joint Stock
Commercial Bank for Industry and Trade – Ho Chi Minh City Branch, the loan
scale did not grow as expected because the reducing of debt scale from main
industries which take high percentage of loan scale.

60%
50%
40%
30%
20%
10%
0%
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
1/2016 2/2016 3/2016 4/2016 1/2017 2/2017 3/2017 4/2017 1/2018 2/2018 3/2018 4/2018
Year 2016
CHEMICAL
PACKAGING

Year 2017

FOOD
REAL ESTATE

Year 2018
METAL STEEL IRON
TELECOMMUNICATION

Firuge 4. The percentage of loan scale in each business/industry in BIDV HCMC
(Source: BIDV HCMC Customer Relationship Departments)
Metal Steel Iron Groups takes 14% – 15 % of the loan scale, Food takes 46% –
47%, and Chemical Industry takes about 14% while Real Estate Business takes
about 23% of the loan scale of Bank for Investment and Development of Vietnam
– Ho Chi Minh City Branch. While the loan scale of Real Estate Business did not

11


change so much through the year, the loan scale of the remaining industry groups
dropped quite a lot, especially in Quarter 1 and Quarter 2 in every year.
4.000.000

3.500.000

3.000.000

2.500.000

2.000.000

1.500.000

1.000.000

500.000

Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
1/2016 2/2016 3/2016 4/2016 1/2017 2/2017 3/2017 4/2017 1/2018 2/2018 3/2018 4/2018
Year 2016
7 CHEMICAL

6 FOOD

Year 2017
8 METAL STEEL IRON

3 PACKAGING

Year 2018
5 REAL ESTATE

1 TELECOMMUNICATION

Firuge 5. The loan scale in each business/industry in 2016 – 2018
(Source: BIDV HCMC Customer Relationship Departments)
Firstly, the biggest drop in loan scale is Food groups, from 3,364,454 million
VND down to 3,187,616 million VND in 3 years and at some point of time, Food
groups’ loan scale is just 2,689,372 million VND – the number of loan scale in
quarter 1/2017.

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The second of main dropping loan scale is Chemical Industry. It accounts for
1,000,000 million VND outstanding loans of Bank for Investment and
Development of Vietnam – Ho Chi Minh City Branch in 2016. However, it
decreased in 2017 and 2018 so much and is only approximately 700,000 million
VND, even in quarter 2/2018; the Chemical Industry’s loan scale is about 656,153
million VND.
Finally, Metal Steel Iron Groups decreased from 1,102,447 million VND to
approximately 800,000 million VND in quarter 1 and quarter 2 in 2017, 2018.
Three above groups take more than 70% of loan scale of Bank for Investment and
Development of Vietnam – Ho Chi Minh City Branch. Therefore, the decreasing
in loan scale of those groups makes the business plan of Bank for Investment and
Development of Vietnam – Ho Chi Minh City Branch could not complete.
2. The customer’s satisfaction in Bank for Investment and Development of
Vietnam – Ho Chi Minh City Branch
According to Be Bramley (2017), the satisfactory of customer is the most
important component in any kinds of business. Nowadays, when the competition
among the banks is intense, the customer’s satisfactory will strongly influence the
market share of the banking industry. For instance, if customers are satisfied with
bank A, they will tend to trade a lot at that bank compared to the remaining banks.
In the opposite, if they are unhappy, they will not come to that bank anymore to
trade.

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In addition, based on the research of Dr. Trapti Pandya, Dr. Neeti Mathur &.
Himanshu Mathur (2016), there are many factors which have strongly influence on
customer satisfaction in banking business. Those are atmosphere, behavior as well

as experience of employees, speed, interest rate, security and privacy.
According to Huong Giang (2016), The Vietnam Report Corporation announced
that Bank for Investment and Development of Vietnam (BIDV) is ranked 2nd
position in the list of 10 most prestigious Vietnamese Commercial Banks in 2016,
higher than Vietnam Joint Stock Commercial Bank for Industry and Trade
(Vietinbank).

Firuge 6. Top 10 prestigious commercial banks in Vietnam in 2018
(Source: Vietnam Report)

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However, to the year 2018, based on the statistics of Vietnam Report (2018), the
customer satisfaction of Bank for Investment and Development of Vietnam is
lower than Joint Stock Commercial Bank for Foreign Trade of Vietnam and
Vietnam Joint Stock Commercial Bank for Industry and Trade. It may be the
reason for reducing in loan scale in BIDV in general and in of Bank for
Investment and Development of Vietnam – Ho Chi Minh City Branch in
particularly because when the customers did not feel happy with the services or
products of a bank, they will not come to trade anymore. And even if trading is
required in order to maintain the relationship with that bank, the number of trading
will be also very low compared to the other banks.
Like we talked above, and like Bank for Foreign Trade of Vietnam – Ho Chi Minh
City Branch and Bank for Foreign Trade of Vietnam – Ho Chi Minh City Branch
Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch
contributes more than 20% of scale and profits of Bank for Investment and
Development of Vietnam system. Therefore, the customer's dissatisfaction,
leading to the reducing in loan scale, will affect strongly on business plan of Bank
for Investment and Development of Vietnam – Ho Chi Minh City Branch as well

as the scale and profit of Bank for Investment and Development of Vietnam
system.
III.

PROBLEM IDENTIFICATION
It is very important to find out the affection of the customer satisfaction in Bank
for Investment and Development of Vietnam – Ho Chi Minh City Branch on loan
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scale because when the business plan of Bank for Investment and Development of
Vietnam – Ho Chi Minh City Branch could not complete, the salary as well as
benefits of employees will be affected strongly because most of the bank
nowadays will use KPIs for salary and benefits policies. Moreover, if the business
plan of Bank for Investment and Development of Vietnam – Ho Chi Minh City
Branch could not complete, the business results of Bank for Investment and
Development of Vietnam system will be also affected.
There are many reasons for the switching behavior of customers in the banks and
one of the most important reasons is the customer satisfaction. Dr. Trapti Pandya,
Dr. Neeti Mathur and Himanshu Mathur (2016) stated that the factors which have
strongly influence on customer satisfaction in banking industry are atmosphere,
behavior and experience of employees, speed, interest rate as well as security and
privacy. If we make our customers feel happy and satisfied, they will stick for a
long time, and otherwise they will go to another bank to cooperate. Mr. Tran Dang
Khoa – current manager of Customer Relationship Department 2, said that in the
past, there is a customer who left Bank for Investment and Development of
Vietnam – Ho Chi Minh City Branch because at that time, the interest rate as well
as the employees’ service makes customers feel dissatisfied. Therefore we can’t
ignore the fact that the customer satisfaction is the major issue that all of banks
nowadays should concern about.

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After conducting six in - depth interview sessions from 2 main groups (the first
group is managers/chief accountants/chief financial officers who are working the
commercial and manufacturing companies, the second group is employees/
managers of Bank for Investment and Development of Vietnam – Ho Chi Minh
City Branch) as well as researching related theories, there are some key reasons
that make customers feel uncomfortable and dissatisfied. Those are the time of
solving customer’s problem (late in processing loan disbursements), the interest
rate, the lack of experiences of new employees as well as the security and privacy
of customer information.
1. Interest Rates
Nowadays, the competition among production and trade companies in the same
industry is very fierce. In order to dominate the market share and maximize the
profits, most of companies have to reduce their cost in management and producing
but still ensuring the quality of product and the price is reasonable. Saving interest
expenses is one of the effective ways to reduce the cost of company. In fact, the
customers will choose the bank with the lowest interest rate so that they can
decrease their company’s cost. This is one of the reasons why the loan scale
decreases in the beginning of the year such as Quarter 1 and Quarter 2. Because in
the beginning of the year, the interest rate of BIDV HCMC is higher than the
interest rate of Vietcombank HCMC and Vietinbank HCMC about 0.1% per year.

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Mr. Nguyen Duy Hung – chief accountant of Dry Cell and Storage Battery Joint
Stock Company (PINACO), complained that in 2018, the interest rate of Bank for

Investment and Development of Vietnam – Ho Chi Minh City Branch in Quarter 1
and Quarter 2 is higher than Vietcombank and HSBC – the banks that PINACO
are also in relationship and having outstanding loan. Therefore, with the role of
controlling business costs of PINACO, he has to deal with the other bank for
cutting costs.
In addition, the lending rate has to be fixed for loan terms from 3 months to under
12 months. The sudden change in interest rates of Bank for Investment and
Development of Vietnam – Ho Chi Minh City Branch leads to customer
dissatisfaction as well as making the employees of Customer Relationship
Departments work with customers more difficult. For example, Mr. Vu Duc
Thinh, chief financial officer of Kido Group – a company in Food industry, said
that the lending interest rate for Kido in 2018 which is announced at the beginning
of year was 6.0% per year from 01/01/2018 to 31/12/2018. However, due to
fluctuating interest rates, after three months, Bank for Investment and
Development of Vietnam – Ho Chi Minh City Branch issued a notice raising
interest rates to 6.5% per year from 15/04/2018. According to Mr. Vu Duc Thinh,
this makes hard and uncomfortable for customers in predicting as well as
controlling companies’ costs.

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2. Inexperience and untrained employees
According to Quang Thang (2018), Bank for Investment and Development of
Vietnam had almost 1,000 employees left the job in 2017. Therefore, Bank for
Investment and Development of Vietnam had to recruit more employees in 2018
so that the business plan could be guaranteed completing. After recruitment, they
would be trained so that they can get familiar with the work as quick as possible.

Firuge 7. Fluctuations in number of employees at banks (Source: Zing.vn)

However, Ms. Nguyen Thi Kim Nhan, manager of Human Resources Department,
said that the time for this training is about 2 days, and then they will be caught in
the whirl of work because workload of a Customer Relationship employee is quite
heavy compared to the other Department. Some of them will not be trained in a
methodical and fulfill way so that they are able to work. Moreover, for most of
them, the work experience is usually under 2 years, hence, they are not able to
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convince customers easily so that customers will trade more in Bank for
Investment and Development of Vietnam.
Based on the research of Rida Athar and Faiza Maqbool Shah (2015), training the
employees not only helps them to improve their skills and performances better in
work but also enhances the efficiency of a company at the highest level. In the
opposite, the lack of experience and training of an employee will lead to the
dissatisfaction of customers. Ms. Nguyen Thi Thanh Tuyen, chief accountant of
Ngo Han Company, said that most of employees who she worked with in
Customer Relationship Department 2 in the past are very good at capturing
customer needs as well as advising customers about interest rates, exchange rates.
However, in recent time, when Bank for Investment and Development of Vietnam
system expanded, former employees went to new branches to work, newly
recruited employees to work at Customer Relationship Department 2, the advising
about interest rates, exchange rates for customers are not good as before.
Moreover, the mistakes from new employees are inevitable. For example, the new
employees may forget in collect debt; forget to tell customers about changing
interest rates. This issue makes the customers feel that they not served as well as
the other banks, leading to the movement in trading in generally and loan
documents in particularly from Bank for Investment and Development of Vietnam
to other banks.

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3. Security and privacy
According to Ratan Jyoti (n.d), the data of customer information is very important
to banks and is the major concern of bank security nowadays. Privacy preservation
of customer information is one of the most important aspects that lead to the
decision in trading of customer in bank industry when the internet developed
rapidly; leading to the theft of customer information data became more seriously
day by day.
In recent time, there are more and more customers who deposit money at banks
are lost because their accounts are hacked. In order to protect the rights and
property of customers, most of Vietnamese banks in generally and Bank for
Investment and Development of Vietnam in particularly are improving their
security system more as well as tightening their regulations on transactions so that
crooks have no chance to steal customer information or make bad transactions.
Ms. Nguyen Thi Thanh Tuyen, chief accountant of Ngo Han Company, said that
for all transactions that take money from this customer account to the other
account, the originals are necessary for implementing these transactions to
guarantee the crooks have no chance to make bad things. She also said the
information about lending and deposit interest rate of customer is a privacy thing
and need to be protected. Otherwise, customers in the same industry or lending
and deposit at the same bank will compare and wonder why their company did not
have a good interest rate as the other ones. In fact, a company with good financial
21


statement, good revenue and profit will be offered better interest rate compared to
the remaining ones in the same industry. That is common sense in banking
industry.

To sum up, the security and privacy of customer information data is important and
necessary in bank industry in generally as well as in Bank for Investment and
Development of Vietnam – Branch Ho Chi Minh City.
4. Time in processing loan disbursements
Regarding to time of processing a loan disbursement, there are 3 main departments
which are related directly to resolve loan application of customers, which contain
the following: Customer Relationship Department is responsibility for receiving
applications, checking invoices, disbursement documents, making loan proposals
and transferring credit management department. Credit Management Department
is responsibility for receiving loan application documents from Customer
Relationship Department, checking documents again, creating loan account on the
system and transferring customer service department. Finally, Customer Service
Department receives loan documents which are transferred from the Credit
Management Department and use them to make a payment for company’s costs or
employees’ salary based on the approved loan documents.
Ms. Nguyen Duy Hung, chief accountant of Dry Cell and Storage Battery Joint
Stock Company, said that most of loan disbursement files of his company need to
be solved before 3pm because his partners need to withdraw cash to use while the

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