Improving car loans service for individual customer of BIDV thang long branch (2)

Joint Stock Commercial Bank for Investment and Development of Vietnam
Professional bachelor degree in Finance-Banking

INTERNSHIP REPORT
“Improving car loans service for individual
customer of BIDV - Thang Long branch”
Student:

NGUYEN Phuong-Anh

Class:

NTA-10

University year:

2017-2018

Tutor at TMU:

Mr. PHAM Tuan-Anh
Mrs. NGUYEN Hoang

Tutor at UDR: Mrs. Sonia ADAM-LEDUNOIS
Mr. Sebastien DAMART
Tutor at BIDV:

Mr. DAO Xuan-Phong


Hanoi – 2018

ACKNOWLEDGEMENT
There's no success without support which is even more or less, direct
and indirect. During my time here, I have received a lot of teachers' concern
and help. I would like to send my sincere thanks to all teachers of
International Training Faculty of Thuong Mai University and experts from
ROUEN University who have enthusiastically conveyed their knowledge
during the past 4 years. Specifically, in this final year, the faculty has held for
us courses with foreign experts, which helped us approach useful subjects
for our job in the future. I am grateful for teachers' instructions from
lessons, talkshows and discussions about banking and your facilitation for
us to have chance to learn and experience real working environment in my
internship.
Next I am very thankful that Mr. PHAM Tuan Anh had spent his valued
time instructing and supporting me in this project report.
Last but not least, I really appreciate BIDV - Thang Long branch, along
with staffs at individual customer department who offered chance to
experience banking environment. I also would like to send my special
thanks to Mr. DAO Xuan Phong, my instructor, who instructed me specific
professional

skills

of

a

bank

clerk

and assisted me to deal with difficulties during my internship with useful
advice. This was a great experience in banking environment which broaden
my view and knowledge about future opportunities.
To sum up, I wish you all teachers at the International Training Falcuty
at Thuong Mai University and at ROUEN University health and happiness to
continue your mission as inspirers.

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TABLE OF CONTENTS
INTRODUCTION............................................................................................................................................... 1
CHAPTER I: OVERVIEW OF BIDV, THĂNG LONG BRANCH AND THE INTERNSHIP........2
1.1 Overview of BIDV:..................................................................................................................................... 2
1.2 Overview of BIDV- Thang Long Branch:.......................................................................................... 2
1.3 Introduction of my internship:............................................................................................................ 3
1.3.1 The reason for choosing the topic................................................................................................... 3
1.3.2 Internship plan....................................................................................................................................... 4
CHAPTER II: INTERNSHIP IMPLEMENTATION AT BIDV, THĂNG LONG BRANCH............
6
2.1 The internship position, responsibilities and tasks....................................................................6
2.1.1 Internship position and responsibilities.....................................................................................6
2.1.2 Daily task.................................................................................................................................................. 7
2.2 Overview of car loan at Thang Long branch..................................................................................8
2.2.1 Process of car loan................................................................................................................................ 8
2.2.2 The Car loan service of BIDV- Thang Long branch..................................................................9

2.2.3 Car loan packages:................................................................................................................................ 9
2.3 The reality of car purchasing at the branch................................................................................. 10
2.4 Some business cases............................................................................................................................. 11
2.4.1 The 1st case ( Failed)........................................................................................................................ 11
2.4.2 The 2nd case ( Failed )..................................................................................................................... 11
2.4.3 The 3rd case ( Successful)............................................................................................................... 12
2.4.4 The 4th case ( Successful)............................................................................................................... 12
2.4.5 The 5th case ( Successful)............................................................................................................... 12
2.5 Competitors Analysis............................................................................................................................ 13
2.6 PEST ......................................................................................................................................................... 14
2.7 SWOT analysis......................................................................................................................................... 15
2.7.1 SWOT....................................................................................................................................................... 15
2.7.2 Proposal................................................................................................................................................. 16
2.8 KPI and KPR............................................................................................................................................. 17
2.8.1 Key performance indicator – KPI................................................................................................. 17
2.8.2 Key performance results – KPR.................................................................................................... 17
CHAPTER III: INTERNSHIP ASSESSMENT............................................................................................ 19
3.1 Difficult........................................................................................................................................................ 19
3.2 Internship gained.................................................................................................................................... 19
3.3 Future plan................................................................................................................................................. 20
CONCLUSION.................................................................................................................................................... 21

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LIST TABLE
Table 1.My internship schedule................................................................................................................... 4
Table 2. Daily task............................................................................................................................................. 7

Table 3. Process of car loan........................................................................................................................... 8
Table 4. Business results.............................................................................................................................. 10
Table 5.Comparing BIDV with competitors......................................................................................... 13
Table 6. SWOT.................................................................................................................................................. 16
Table 7. Monthly KPI's customer relationship staff.......................................................................... 17
Table 8. my commercial result.................................................................................................................. 17
Table 9. Career plan....................................................................................................................................... 20

LIST FIGURE
Figure 1. Structure of BIDV- Thang Long Branch................................................................................. 3
Figure 2. The structure of the department and My position...........................................................6
Figure 3. Car loan packages........................................................................................................................... 9

LIST PICTURE

Picture 1. Thang Long branch...................................................................................................................... 3
Picture 2. Transaction at Thang Long branch........................................................................................ 3

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LIST OFABBREVIATED NAME
ASEAN

Association of Southeast Asian Nations

ATM

Automated teller machine

BIDV

Joint Stock Commercial Bank for Investment and

Development of

Vietnam
FTA

Free trade agreements

SBV

State Bank of Vietnam

Vietcombank

Joint Stock Commercial Bank for Foreign Trade of Vietnam

Vietinbank

Vietnam joint stock commercial bank for industry and trade

Techcombank

Vietnam Technological and Commercial Joint- stock Bank

Sacombank

Saigon Thuong Tin Commercial Joint Stock Bank

SHB

Saigon – Hanoi Commercial Joint Stock Bank

VND

Viet Nam Dong

USD

United Stated Dollar

USTV

University Of Toulon-Var

TMU

Thuong Mai University

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INTRODUCTION
Thuong Mai University and ROUEN University facilitated students to take part in

banking environment before finish this course with the aim of establish the vocational
awareness for students. Having the opportunity to get acquainted with the real working
environment at the bank, I applied for a position as a salesman - an important part of the
bank. Fulfilling the duties of a salesman plays an important role in bank development.
During my internship at BIDV Bank - Thang Long Branch, I have set for myself the
following targets:
- Targets 1: Try to apply learnt theories to real work.
- Target 2: Understand the operation of the bank, duties of a salesman, how to
communicate with customers, how to solve the problems
- Target 3: Try to deal with challenges and keep learning and studying.
- Target 4: Build up good relationship with bank's employees and open other
relationships.
- Target 5: Improving the skills and knowledge ready to become a banker
In time internship, I have accumulated a lot of knowledge from difficulties i had
been through.
Those experiences will be stated in the following report.

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CHAPTER I: OVERVIEW OF BIDV, THĂNG LONG BRANCH
AND THE INTERNSHIP

1.1 Overview of BIDV:
 Full name: Joint Stock Commercial Bank for Investment and Development of
Vietnam
 Slogan: Sharing opportunities, cooperating successfully.
 Head-Office: BIDV tower, 35 Hang Voi Street, Hoan Kiem District, Ha Noi

 Foundation day: 26 /4/1957
 Employees: 25.000 staff (2016)
 System of BIDV: 190 branch and 815 Transaction Office, 1.824 ATM in Vietnam.
 Total assets : VND 1.176.000 Billion( 2017)
 Activities: Banking, insurance, securities, financial investment.
 Services:
+ Individual Customers: Deposits – Savings, Personal loan, E-Banking
+ Corporate Customers: Loans & Guarantees, Trade finance, Deposits
+ Financial Institutions: Global Markets, Banking services, Deposits
- Target: BIDV will constantly innovate and develop to become one of the top 20
banks in Southeast Asia by 2030.
- Competitors : Vietcombank, Vietinbank, Techcombank,…..
1.2 Overview of BIDV- Thang Long Branch:
 Location : 8 Pham Hung Street, Dich Vong Hau Ward, Cau Giay District, Hanoi
 Employees: 140 staff ( 2016)
 Founded on: 2/4/1991
 Services:
+ Individual Customers: Deposits – Savings, Personal loan, E-Banking
+ Corporate Customers: Loans & Guarantees, Trade finance, Deposits
+ Financial Institutions: Global Markets, Banking services, Deposits
•

Targets: Complete the targets, Become the excelent branch of BIDV

•

Competitors: Vietcomabank, Vietinbank, Techcombank, Sacombank , SHB,…..

 Organization structure

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Figure 1. Structure of BIDV- Thang Long Branch

Manager Board

Clients
management
block

Risk
management
block

Individual
customer
relation dept

Risk
management
dept

Business
relation dept

Appraisal dept

Operation block

Internal
manament block

Device
management
dept
Currency and
Fund
management dept

Affiliation block

FinanceEconomy Dept

Transaction
offices

Planning and
Finance Dept
Human
resource
management
General
planning dept

(Source: BIDV-Human resource management
Department)
Picture 1. Thang Long branch

Picture 2. Transaction at Thang Long branch

(Source: BIDV- Thang Long branch)

(Source: BIDV- Thang Long branch)

1.3 Introduction of my internship:
1.3.1 The reason for choosing the topic
With this current growth momentum of the world economy, Vietnam has also

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gradually developed remarkably in all aspects of social life. People income are
increasingly improved. This leads to higher demand for life standard. However, in
comparison with some products such as cars, Vietnamese income seemed not to be high
enough to afford them.
Therefore, banks becomes trust-worthy friends sharing financial problems with
them.
In the last quarter of 2017, Vietnam government decided to cut down import and
consumer levy of many products, especially, the levy on imported cars from ASEAN
countries with car's gears' down to 0%. For example, a car imported before 1/1/2018,
valued at $ 10,000, will have selling price of more than $ 20,000 (including: Price of car
is taxable when exported + import tax + special excise tax + value added tax).
But from 1/1/2018, the car value after tax is about $ 15,000 because import tax of
0%. Thus, the price of cars reduced about $ 5,000, equivalent to more than 100 million
VND. So 1/1/2018, Vietnam's car market will change positively. Seeing the development

opportunities of the car market, many banks have stepped up the development of car
loan service, supporting the needs of customers. BIDV also can see the potentials of this
market so that they focus on car loan service.
Previously, BIDV have not been developed Car loan. But now, car loan is potential
products that BIDV wants to develop in 2018 so I want to research and make a
contribution to the development of loan products.
1.3.2 Internship plan
Table 1.My internship schedule
Time
Week 1-4
(26/223/3)

Tasks
- Learn about BIDV services
- Learn about salesmen's responsibility
- Choose car loan service for studying and
service development.
- Learn about loaning process.
- Learn methods to approach customer, to
face-to-face communicate and via phone
from the experienced staff
- Use telephone directory to start
consulting with some acquaintances.
- Assist tutor in meeting customer
- Assist tutor in input the old data into
management system of the bank.

Outcome
- Knowing clearly activities
of the bank

- Knowing clearly about car
loan
- Knowing use BIDV's
customer record
management system
- Learn how to advise
customers from tutor
- Finish the learning process
from the tutor.

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Week 5
( 26-30/3)

Week 6-7
(2/4-13/4)

Week 8-11
(16/411/5)

Week 12
(14-18/5)

- Finding customers by phone from bankprovided list.
- Meet scheduled customers with tutor.
- helping tutor create the records for

customers
- Call customers who lack some loaning
papers
- Finish the learning process from the
tutor.
- Start working as an official staff under
the management of the tutor.
- Advising Customers at Pham Hung
Showroom Huyndai.
- Make phone calls from provided bank
list.
- Do market research
- advising customers at Pham Van Hong
Showroom Huyndai.
- Help the old employees entering the
data into bank's system.
- Assist customers open credit card

- Enough knowledge of car
product to advise customers
- Can work independently

- Meeting customers with tutor
- Transfer the loan profile of customers to
the appraise dept
- Consult customers at Showroom.
- Check for record appraisal results,
inform customers their loan agree or not
- Accomplishment the records for
successfully consulted customers.

- Make phone calls with customers from
bank's provided list.
- Monday, Tuesday (30/4-1/5): days off
(International Labour Day)
- Complete papers and records, hand over
April tasks to instructor.
- opening credit card for customer
- Help the tutor entering the data into
bank's system.
- Do research on lending market
- Consult customers at Showroom.
- Help the old employees entering the

- Opening 5 credit card and
2 debit card
- Successful advise for 2
customer in showroom.
- Opening a 2 saving account
- Cross-sell: 2 insurance
contract
- Swot research
- Successful advise for 1
customer by phone.
- Pest research

- Get answers from the tutor
and improving
communication skill
- opening 2 credit card
- advising successful for one

customer at the showroom
- opening a master card
- Call successful 2
customers,
- research competitors

- Successful advise for 1
customer at showroom.

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Week 13
( 21-25/5)

data into bank's system.
- Meet customers with the tutor
- Make phone calls to seek for customers
- complete all the documents, send back
to the instructor
- presenting the internship report to
manager and confirming the internship.
- Complete my internship

- open saving account.
- Geting data at the bank and
starting write report

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CHAPTER II: INTERNSHIP IMPLEMENTATION AT BIDV,
THĂNG LONG BRANCH
2.1 The internship position, responsibilities and tasks
2.1.1 Internship position and responsibilities
- I was a salesmen at the transaction office under control of Thang Long branch.
After a month of training at the main branch, the branch manager assigned me to
support team 2 (individual customer relationship) at Lang quoc te Thang Long
transaction office.
- My position is clearly stated in the chart:
Figure 2. The structure of the department and My position

Customer relationship
department
Customer
relationship
individual
department

team 1

team 2

team 3

Customer relationship

enterprise
department

team 4

DAO xuan phong

me
(Source: BIDV- Thang Long branch)
- Responsibility: My duties partly was acting as a consultant about car loan
service at individual customer department and supportting my tutor complete his work.
Individual relationship department includes 2 departments are individual customer
team and enterprise customer team. Individual customer team have 6 teams and I was in
the team number 2 in Lang quoc te Thang Long transaction official.
- I was instructed by the instructor to understand all the loan packages, which
assists each client's needs in accordance with financial capacity.

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- After clearly knowing car loan product, I was able to meet some of my customers
who were in need, and I was confident in the way doing some tasks regarding my
research topic - car loan service:

+ Seek for customers who want to use the car loan service of the bank.
+ Contact customers, based on the needs of customers and the ability to provide
financial along with the rules of the bank I will advise clients on the conditions,
necessary papers and interest rates.
+ Appraisal report in accordance with the bank's procedures and submit to other
management levels of loan approval or loan refusal.
+ Draw up credit contracts, collateral contract and related papers.
+ Keep track and create disbursement records

according to customer'

requirement.
2.1.2 Daily task
Table 2. Daily task
Time

Task

Morning ( 8.00 am – 11.00

- Helping tutor prepare loaning record

am )

- finding customers by phone from bank-provided list.
- advising customers at showroof huyndai.
- assist customers open credit card, debit card, saving
account
- check for record appraisal results, inform customers
their loan agree or not

Afternoon ( 1.00 pm – 5.00

- Meet scheduled customers with tutor.

pm )

- Helping tutor Check the record of customers
- Helping tutor create the records for agree customers
- Call customers who Not enough loan document
- Assist tutor in input the old data into management
system of the bank.
- Transfer the loan profile of customers to the appraise
dept at main branch

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2.2 Overview of car loan at Thang Long branch
2.2.1

Process of car loan
Table 3. Process of car loan

Steps
1. Finding
customer

Department
responsible
Customer
relationship
individual
department

2. Consult
customers

Customer
relationship
individual
department

3. Collect
customer’s
profile

Customer
relationship
individual
department

4. Analyze
customer
profile

Appraisal dept

5. Sign
contract

Customer
relationship
individual
department

6. Approve
loan

Appraisal dept

7. Disburseme
nt

Finance-Economy
Dept

My ( and my team's ) duties
Method looking for customers
- Making call with the potential customer list
from the bank
- Advise customers at car showroom that linked
with the bank,
- Referral from friends or old customers
- Clients who have demand and come to the
bank themselves.
Providing customer with information:
- Loan condition, interest rate, procedure.

- Answer customer’s questions related to the
loan package.
- Collect customer records according to bank
regulations.
- Re-check customers’ profile and inform
customer to complement if the profile not
enough or lack notarized documents.
- Transfer the loan profile of customers to the
appraise dept.
No information
(Customer’s profile will be sent to the in charge
department to appraise and analyze to
determine customer’s repayment capacity)
-Appraisal department concludes the customer
eligible:
+ The staff prepare loan contracts
+ Getting customer signatures
+ Manager approve
+ Transfer the contract to the appraise dept to rechecking
-Appraisal department concludes the customer
not eligible:
+ inform customers their loan disagree and find
solution
No information
( The staff inform for showroom about loan
contract)
No information
The bank will transfermoney to the showroom
account

(Source: Regulation of BIDV – decision number 7377/QD-NHBL car loan)
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2.2.2 The Car loan service of BIDV- Thang Long branch
• Target customer: Vietnamese people who are over 18 years old with the monthly
income equal to or above 15 million VND and live at most 30km around Hanoi.
• The maximum of loan duration is extended to 7 years.
• The loan amount is up to 70% the car value, if customer has other collateral such
as land, the maximum amount is 100%.
• In addition, our customer can have a credit card with free annual fee for the first
year. Customer can use it to buy car insurance, accessories and service.
-

Loaning conditions

+ Vietnamese individual customer/ households.
+ Foreign individuals but permanently living or working in Vietnam.
+ Have stable income and guarantee solvency.
+ Have collateral property for loans. The guaranteed assets is the car. Other
assetsbelonging to the customer/ third side (ex: house, savings book or car)
- Document of registration:
+ Application for loans

- ID card/passport and permanent residence / temporary residence book
+ Documents regarding the car: Trading contract, bills, etc.
+ Documents proving debt repayment: Labour contract, timesheet, etc.
+ Document regarding mortgage asset.
2.2.3 Car loan packages:
Figure 3. Car loan packages

Thanks to the variety of preferential interest rates, BIDV allows customers to
choose their loan package, preferential package 3 will be suitable for customers who are
financially difficult in the beginning and want to borrow money.
Monthly interest will be reduced. The first option will be preferred due to its fixed
interest rates in the long term to take initiative in the financial needs to pay monthly
customers. The second preferential interest rate package: interest rates 7.8% per annum
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fixed in the first 12 months. This is the most customers' choice because this is the
package of interest suitable for many customers today by the flexibility, fixed time and
moderate interest rates.
2.3 The reality of car purchasing at the branch
Table 4. Business results
Target

2016

Total loan of individual

Billion/VND

5892
Billion/VND

department
Car loan

2017
%
100
%

Billion/VND
6528
Billion/VND

%
100
%

365
6.1
295
4.5
(Source: BIDV- Thang Long Branch Financial Report in 2016 & 2017)
Figure 4. Business results

7000

6528
5892

6000
5000
4000
3000
2000
365

1000
0

295

2016

2017

Total loan of individual department

Car loan

(Source: BIDV- Thang Long branch)
From the table and chart, 2017 is a successful year for BIDV and BIDV is developing
very stable. Loans outstanding balance at the end of 2016 is 5893 billion, and to the end
of 2017 is 6528 billion, increasing 636 billion equivalent to 10.8%. But loan car sevice,
this may be unsuccessful year when total car debt reduce 83 billion in 2017.
I think demand buy car decreased because consumers are waiting government's
policies. It is free Import tax for cars in 2018. This will cause the price of cars in Vietnam
reducel sharply. It will boosting demand buy car of consumer and car related services
including car loan.

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2.4 Some business cases
2.4.1 The 1st case ( Failed)
 Name: XXXX
 Gender: Female
 Age: 35
 Address:XXXXX
 Job: Doctor
 Income/month: VND 30 million (Data from statement )
 Marital status: Married and have 2 children
 She has been a doctor at Vietnam National Children's Hospital for 5 years. She has
the demand of buying a car- Hyundai Accent 1.4 AT sedan valued VND 596.200.000 she
wants a loan of 100% car value in 7 years. Her mortgage is the house she is living.
 Reason for not disbursing: She is not eligible because she have bad debt group 2,
but she has amount of debt small and bad debt in group 2 not longer than 2 month, so i
advised she loan have the mortgage and reduce the loan to 70% the car value but could
not reach an agreement with the customer.
2.4.2 The 2nd case ( Failed )
 Name: XXXX
 Gender: Female
 Age: 28
 Address: XXXXX
 Job: real estate agent
 Income/month: VND 25 million (Data from statement )
 Marital status: Single

 She has worked for Sudico (SONG DA Urban and Industrial Zone Investment and
Development Joint Stock Company) for 3 years. She has the demand of buying a carHyundai Grand I10 sedan 1.2 AT 2018 valued VND 415.000.000. She wants a loan of
100% car value in 7 years.
Reason for not disbursing: She is not eligible as she doesn’t have stable income. Her
salary is VND 6 million/ month + commission. This cannot make sure that she can afford
the monthly interest on loan. I advised her to use her house or savings account to the
mortgage but she is living with family and haven’t got home of his own. She not agree to
use savings account to mortgage. Because customer have low salary and don't have
mortgage. The possibility of customer a low refund, so the loan was not approved.

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2.4.3 The 3rd case ( Successful)
 Name: XXXX
 Age: 40
 Address: XXXXX
 Job: Architect
 Income/month: VND 18 million (Data from statement )
 Marital status: Married and have 2 children
 He has worked for Phuc Hung Holdings Construction Jsc for 6 years. He has the
demand of buying a car - Hyundai Grand Sedan valued VND 420.000.000. He wants a
loan of 100% car value in 4 years with the collateral is his house. After assessing his
profile, his profile is in line with the bank's regulations, the loan is approved.
2.4.4 The 4th case ( Successful)
 Name: XXXX
 Age: 36
 Address: XXXXX

 Job: Business
 Income/month: VND 40 million (Data from statement )
 Marital status: Married and have 1 child
 He have 2 restaurants. He has the demand of buying a car - Hyundai Santafe
valued VND 1.070.000.000. He wants a loan of 50% car value in 5 years. He wanted
unsecured-loan but He was not an employee of any company, so it was more difficult to
prove income than normal staff with only labor contracts and statement. I advised him
switch to mortgage loan, which will make the loan easier to accepted but he did not want
mortgage loan, so to decreasing risk for bank I advised him reduced the loan period to 4
years. After assessing his profile, his profile is in line with the bank's regulations, the
loan is approved.
2.4.5 The 5th case ( Successful)
 Name: XXXX
 Age: 28
 Address: XXXXX
 Job: Restaurant manager
 Income/month: VND 17 million (Data from statement )
 Marital status: Single
 She has worked for Crowne Plaza West Hanoi for 2 years. She has the demand of
buying a car - Hyundai Grand I10 1.0MT 2018 valued VND 355.000.000. She wants a
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loan of 70% car value in 7 years. After assessing her profile, her profile is in line with the
bank's regulations, the loan is approved.

2.5 Competitors Analysis
Table 5.Comparing BIDV with competitors

Interest

7,3%

7,5%

6,49-8,99

Loan

7 years

5 years

7 years

duration
Loan ratio

100% (with

80%

80%

rate

Preferentia
l policies

collateral)
- Free consultation

- Buying insurance with

- Allow refund

on insurance

preferential price at

advance.

products, free car

Vietinbank Insurance

- The refund advance

insurance for the

(VBI)

penalties: 2-5% of the

first 6 months of

refund advance

BIDV Insurance

amount

Profile

Corporation (BIC)
- Fast profile

- Profile revision time:

- Profile revision time:

revision

revision time of 24

36 hours

36-72 hours

hours.

- Receive profiles at

- Receive profiles at

- Receive profiles at

transaction office

transaction office

time

the transaction
office or via the
Other

staffs’ email
No extra cost

No extra cost

charges

3-5% of the total
contract value for the
personal finance

Collateral

That’s car or saving

That’s car

consultant.
That’s car

Assets

account, home,…
(Source: Summary from the websites of competitor in the market and regulation of BIDV)

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BIDV is one of the four biggest banks in Vietnam. In the car loan market, BIDV offer
the lower interest rate compared to Vietinbank and Techcombank. Especially, BIDV
provide 100% loan amount while other competitors offer maximum 70-80%. Moreover,
BIDV allow customers to submit their profile online to save their time and money.

2.6 PEST
 Political
- Vietnam signed The ASEAN Trade in Goods Agreement (ATIGA). According to
ATIGA, car from ASEAN countries will be imposed the import tax rate at 0% if they can
meet all the requirements.
- The Government has enacted the Decree 125/2017/NĐ-CP, domestic motor
vehicles assembly company will be imposed the component import tax rate at 0%
- As the car import tax rate from ASEAN is at 0%, this provokes the concern of
massive increasing in the number of imported motor vehicles in 2018. To protect
domestic car manufacture and limit the import car to Vietnam market, the Government
has promulgated Decree 116/2017/NĐ-CP on requirements for import and trade in car
vehicles.
- CIRCULAR NO.39/2016/TT-NHNN on December 30, 2016 prescribing lending
transactions of credit insitutions and foreign bank branches with individual customers.
-

BIDV’s regulation:

Decree No. 7377/QD-NHBL on 17/11/2014: Regulation on car loan product with
individual customers and households.
Decree No.1220/QĐ-BIDV on 14/03/2017: on amendment of and addition to a
number of articles of Decree No. 7377/QĐ-NHBL om 17/11/2014on car loan product
with individual customers and households.


Economics
- Vietnam economy has increased rapidly.

- In 2017, GDP reaches 6.81%, 6.7% higher than expected, inflation is at 3.53%, 4%
lower than estimated. Export increase by 21.3%, 3 times higher than the planned target.
- Participating in international trade organization such as WTO, APEC,ASEM,... has
attracted international investment and created competitive environment to motivate the
development of domestic enterprises.
Vietnam has established diplomatic relations with more than 170 countries in the
world, expanding trade relations and exporting goods to over 230 countries and
territories, signing more than 90 bilateral trade agreements, nearly 60 agreements on
investment encouragement and protection, ...

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- Vietnam is implementing the commitment on special preferential import tax
under 10 FTA framework
- Reduce tafiff on many imported goods as food, steel, cars and automotive parts,
machinery and equipment, ... facilitate the increasing of imported goods. In 2018, it is

estimated that Vietnam’s rate of liberalization in ASEAN will be 98.2%, this is mostly the
highest number in comparison to other FTA that Vietnam has signed.
=> Reducing tariff has brought quite a few opportunities for domestic enterprises
to import more raw material at cheaper price, more machinery and equipment at better
quality than the domestic ones => more goods at cheaper price and better quality for
customers.


Social

- The people’s living standard is increasing.
+ Boston Consulting Group (BCG) has carried out an research on people’s living
standard in 149 countries. According to this, Vietnamese people’s living quality is quite
comfortable, comparable to countries with GDP of over 10.000 USD, despite the fact that
Vietnameses people’s GDP is only around 5.200 USD/year.
- In the context of economy integration and development, the higher income per
capita is, the more demands for houses and car increase. People not only want to buy
modern motor vehicles, they also want to buy luxury ones since their safety and
convenience.
- In the past, customers buying cars mainly were those who have high income or
the middle-age who had certain savings. However, now, cars manufacturers have
diversified their products which are affordable for everyone, besides thanks to
assistance from banks or finance companies, the age of car buyers are increasingly
various.
- Car is not only safer vehicle but it also shows personal level. Vietnamese buy car
not just for protect them and their family, they also want to present their social class.


Technology

- Car manufacturers are launching new models with smarter features such as HUD
glass, satellite positioning and online connectivity, and affordable price for every
customer.
- Developing Hybrid technology for fuel saving and emission reducing to protect
the environment.
- Integrated radar, laser, and camera technology for safe driving
+ In the recent years, many car manufacturers has integrated several safe driving
function on their products.
+ In which, the most notable ones are Forward Collision Alert, Blind Spot
Information System or Auto Emergency Braking, Obstacle Avoidance Sensor, Night View

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Assist Plus, ....
2.7 SWOT analysis
2.7.1 SWOT
After three months of research on car loan product. I have summarized the
strengths, weaknesses, threats, opportunities to help banks find strategies suitable for
developing car loan products.

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