Improving personal business loan service at BIDV Coc Leu Transaction Office

ACKNOWLEDGEMENTS

I am truly indebted and thankful to all of the teachers of the Vietnam Commercial
University and Rouen, especially these ones of International Education Faculty for their kind
assistance and creating every favorable condition for me to finalize this internship report.
Particularly, I owe sincere and earnest thankfulness Mr Pham Tuan Anh, Mrs Sonia
Adam-ledunois - my tutor for spending much time and energy in guiding me through the
research and helping me complete this report.
I am obliged to many of Ms Hoang Viet Ha, Mr. Tran Ngoc Son and all of my
colleagues at BIDV - Coc Leu Transaction Office who helped and supported me during the
internship.
It is a great pleasure to thank everyone who helped me write this report successfully.

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TABLE OF CONTENTS
ACKNOWLEDGEMENTS......................................................................................................i
LIST OF TABLES....................................................................................................................iv
LIST OF FIGURES.................................................................................................................iv
INTRODUCTION.....................................................................................................................1
PART I: OVERVIEW OF THE INTERNSHIP LOCATION AND CONTEXT.................2
1.1. BIDV....................................................................................................................................2
1.2. BIDV - Sapa Branch and BIDV - Coc Leu Transaction Office...........................................3
1.2.1. BIDV - Sapa Branch.........................................................................................................3
1.2.2. BIDV - Coc Leu Transaction Office..................................................................................4
1.3. Introduction of my internship..............................................................................................4
PART II: INTERNSHIP IMPLEMENTATION AT BIDV - COC LEU TRANSACTION
OFFICE......................................................................................................................................7
2.1. My internship position, responsibilities and tasks...............................................................7
2.1.1. BIDV - Coc Leu Transaction Office and my position.......................................................7

2.1.2. Personal business loan process at BIDV - Sapa Branch and my responsibilities............7
2.1.3. My daily tasks during the internship..............................................................................10
2.2. My important internship missions associated with some business cases at BIDV - Coc
Leu Transaction Office..............................................................................................................11
2.2.1. Receiving loan applications for personal business from customers...............................11
2.2.2. Supporting in appraising records of personal business customers................................13
2.2.3. Completing the procedure after personal business loan approval.................................15
2.2.4. Participating in disbursing personal business loans approved......................................16
2.2.5. Controlling personal business loans and collecting debts.............................................17
2.3. Analysis of personal business loan service at BIDV - Coc Leu Transaction Office..........18
2.3.1. Conducting a customer survey on personal business loan service at BIDV - Coc Leu
Transaction Office....................................................................................................................18
2.3.2. Competitor analysis of BIDV - Sapa Branch on personal business loan service...........20
2.3.3. SWOT analysis on BIDV’s personal business loan service............................................21
2.4. KPI and KPR......................................................................................................................22
2.4.1. Key performance Indicator (KPI)...................................................................................22
2.4.2. Key performance results (KPRs) of BIDV - Coc Leu Transaction Office.......................23
2.4.3. Assessments and recommendations for improving personal business loan service at
BIDV - Coc Leu Transaction Office..........................................................................................24

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PART II: ASSESSING MY INTERNSHIP IMPLEMENTATION....................................27
3.1. Difficulties encountered and solutions applied..................................................................27
3.2. My knowledge and skills gained........................................................................................27
3.3. Career plan.........................................................................................................................28
CONCLUSION........................................................................................................................29
APPENDIX..............................................................................................................................30

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LIST OF TABLES

Table 1: My internship plan at BIDV - Sapa Branch..................................................................6
Table 2: Business results of personal business loans at BIDV - Coc Leu Transaction Office in
2016-2017...................................................................................................................................9
Table 3: SWOT matrix of BIDV’s personal business loan service...........................................21
Table 4: KPIs of BIDV - Coc Leu Transaction Office..............................................................22
Table 5: My KPIs during the internship....................................................................................22
Table 6: My KPRs during the internship...................................................................................23
LIST OF FIGURES

Figure 1: BIDV’s business indicators in the 2013-2017 periods................................................2
Figure 2: Personal business loan process at BIDV - Coc Leu Transaction Office......................8
Figure 3: My survey sample......................................................................................................19
Figure 4: Customer assessment of the personal business loan service at BIDV - Coc Leu
Transaction Office.....................................................................................................................19
Figure 5: Customer satisfaction on personal business loan service at BIDV - Coc Leu
Transaction Office.....................................................................................................................20

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INTRODUCTION

Retail banking services are currently invested and developed by many banks. It can be
seen that credit revenues are still the main sources of banks thanks to high interest rates and
large profit margins. In the current credit market, loan services for business are paid more

attention to by many Vietnamese banks for development. In fact, loans for business are seen
to account for a large proportion of the total loans. In the current industrialization and
modernization context, all resources from all economic sectors are encouraged to mobilize
potential capital for economic investment and development
To expand production and business activities, it is necessary to have much capital.
However, we can only access such capital by borrowing loans from commercial banks.
Therefore, it can be said that capital from commercial banks plays a very important role in
expanding production and business activities. Economic organizations and individuals are
mainly the customers of commercial banks. That banks develop policies on providing more
business loans for economic organizations/units not only brings profits to banks themselves
but it also creates favorable conditions for such organizations/units to develop their
production and business activities. That partly makes some small contributions to the
development of Vietnam.
Lao Cai province, especially Sapa town, is currently considered as a main point for
investment and development in the coming years. This will allow Lao Cai Province to create a
solid momentum for economic development, especially the small and medium-sized
development of individuals. Therefore, it is necessary to provide capital to quickly develop
this economic sector.
During my internship at BIDV - Coc Leu Transaction Office, I decided to select the
topic: “Improving personal business loan service at BIDV - Coc Leu Transaction Office” as
my internship topic.

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PART I: OVERVIEW OF THE INTERNSHIP LOCATION AND CONTEXT
1.1. BIDV
 Name: Joint Stock Commercial Bank for
Investment and Development of Vietnam
 Abbreviated name: BIDV

 Location: BIDV Tower, 35 Hang Voi, Hoan
Kiem, Hanoi
 Slogan:

Sharing

opportunities,

successful

cooperation
 Tel: 19009247 / (+84-24) 22200588
 Fax: (+84-24) 222
 Swift code: BIDVVNVX
Joint Stock Commercial Bank for Investment and Development of Vietnam, formerly
known as Bank for Construction of Vietnam, was founded under the Prime Minister’s
Decision No.177/TTg dated 26 April 1957. On 24 June 1981, it was renamed Bank for
Investment and Construction of Vietnam. On 14 November 1990, it was renamed Bank for
Investment and Development of Vietnam. On 23 April 2012, it was equitized and renamed
Joint Stock Commercial Bank for Investment and Development of Vietnam under the SBV’s
License No. 84. On 24 January 2014, Joint Stock Commercial Bank for Investment and
Development of Vietnam is officially listed on the Ho Chi Minh Stock Exchange with its
listing code of BID.
Figure 1: BIDV’s business indicators in the 2013-2017 periods
Profit after tax (billion VND)

Total assets (billion VND)
1,202,284
850,670
548,386

2013

1,006,378

2025

6,194

2025

2016

6,946

4,986
4,051

650,340

2014

6,377

2016

2013

2017

2014

2017

Source: BIDV
It can be seen that BIDV’s growth rate was quite stable at about 16% to 19% in the
2013-2017 periods, equivalent to 16% of the average growth rate of total banking assets. The
reason for BIDV’s total asset growth in 2015 (+31%) was that BIDV merged with the
Mekong Housing Bank (MHB). Then, BIDV has become the largest bank in terms of total
assets. This allowed BIDV to expand its networks and customer bases. However, this merger
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also made BIDV suffer from a delayed growth in the next two years. Specifically, in 2016,
BIDV’s before-tax profits reduced compared with 2015 (95% of before-tax profits in 2015).
In 2017, it was recognized that BIDV’s profit growth had reached 14%. However, it was far
behind state owned banks (VietinBank and Vietcombank). Even, it was also behind by joint
stock commercial banks such VPB and TCB.
1.2. BIDV - Sapa Branch and BIDV - Coc Leu Transaction Office
1.2.1. BIDV - Sapa Branch
 Name: Joint Stock Commercial Bank for Investment
and Development of Vietnam - Sapa Branch
 Abbreviated name: BIDV - Sapa Branch
 Location: No. 20, Ngu Chi Son Street - Sapa Town Sapa District - Lao Cai
 Number of employees: 65
 Date of creation: 9 February 2012
 Tel: 020.3872.643 Fax: 020.3872.636
 Activity: Mobilizing capital, providing services such as money transfer, bill payment,
collection and providing loans to personal households and SMEs. Particularly, it is in a strong
position of providing the personal business loan service.

Bank for Construction - Lao Cai Province, one of the first 10 branches under the Bank
for Construction of Vietnam, was established on 27 May 1957 according to the Decree No.
233/ND-TC-TCCB of the Ministry of Finance. Its functions were to manage and provide state
budget capital for basic construction. In 1976, after the total liberation of Vietnam, three
Banks for Construction, namely, Lao Cai, Yen Bai and Nghia Loi, were merged into the Bank
for Hoang Lien Son Province. In 1991, after Lao Cai Province had been re-established, Bank
for Investment and Development of Lao Cai Province was re-founded under the Decision No.
134/QD dated 30 August 1991 of the Governor of the State Bank of Vietnam. The system
officially went into operation on 01 October 1991.
Bank for Investment and Development of Lao Cai Province, Sapa Transaction Office
was founded according to the Decision No. 0028/QĐ-TCCB dated 31 January 2005 of the
Director of Bank for Investment and Development of Lao Cai Province and it was officially
put into operation on 01 February 2005 and it was named Sapa Transaction Office. BIDV Sapa Branch was founded on 01 June 2016. Since then, BIDV - Sapa Branch has always
gained stable business results and growth rates. Remarkably, BIDV - Sapa Branch is
consistently ranked among the TOP 10 branches which have the best business indicators in

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the North. Currently, BIDV - Sapa Branch’s human resources include one part of BIDV Lao
Cai’s staffs and one part of BIDV Bac Ha’s ones.
The total capital which BIDV - Sapa Branch mobilized at the end of 2016 reached 550
billion, increasing by 36.2% compared with the beginning, exceeding 19.2% of the target. In
addition, there is an reasonable increase in outstanding loans with a guaranteed credit quality.
At the end of 2016, BIDV - Sapa Branch got a total outstanding loan of 643 billion dong, up
25.6% compared with 2015 while its bad debt ratio stopped at 0.04%. In 2017, its mobilized
capital reached 630 billion dong, 480 billion of which were residents’ deposits, increasing by
80 million dong compared with 2016. With a growth rate of 15%, outstanding loans reached
730 billion dong. Outstanding medium & long-term loans accounted for 65% of the total
outstanding loans. The bad debt ratio was less than 1% of the total outstanding loans.

1.2.2. BIDV - Coc Leu Transaction Office
BIDV - Coc Leu Transaction Office was founded and put into
operation in 2016 at No. 24, Hoang Lien, Coc Leu Ward, Lao Cai
City. It is one of the five transaction offices under the BIDV Sapa Branch. Its business scope includes: Mobilizing capital,
providing services such as money transfer, bill payment,
collection and providing loans to personal households and SMEs.
At BIDV - Coc Leu Transaction Office, there are six staffs,
including: one Director, one Deputy Director, two tellers and two
customer service staffs.
Not only BIDV - Coc Leu Transaction Office but also other transaction offices in Lao
Cai Province are in a strong position of providing the personal business loan service. During
the last years, this policy has been launched by the leaders of banks and business units. It can
be seen that Lao Cai province has achieved some certain achievements.
1.3. Introduction of my internship
Generally, Vietnam’s macro-economy has recently been stable and sustainable. This
creates favorable conditions for the development and expansion of personal business
households and economic sectors in general. In this context, Vietnam banking systems plays
an key role not only in circulating capital resource but also creating fully financial service to
satisfy the current requirements of individuals and enterprises. To meet the increasingly high
demands of customers, banks are continuously launching products which are new and
competitive and high-tech to create differentiation in the banking services.

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Personal business loans is currently considered as a traditional and extremely popular
financial service provided by banks. Thanks to advantages in its process as well as customer
base, BIDV - Coc Leu Transaction Office is always in the vanguard of providing this service
compared with other bank in the area. However, BIDV - Coc Leu Transaction Office is facing
with some fierce competition from other credit institutions because this is a popular financial

product. Therefore, it is very difficult for BIDV - Coc Leu Transaction Office to occupy the
market share of personal business loans. In the market of personal business loans, some banks
such Agribank, MB Bank and VPBank, etc. also provide such service and have gained a lot of
relatively successful results.
It is competition from other credit institutions that pose threats of providing the personal
business loan service at BIDV Sapa Branh - BIDV - Coc Leu Transaction Office. However, it
can be seen that the economy of Sapa is on the rise, especially since Sapa was recognized by
the Government as a national tourist area at the end of 2017. In addition, Lao Cai People’s
Committee has coordinated with Ministry of Culture, Information and Tourism to advertise
Lao Cai’s images, promote investment and attract tourists. Personal loans, especially for
business, will become one of the prerequisites in the economic development planning
orientation of Sapa Town. Therefore, it is necessary for BIDV - Coc Leu Transaction Office to
make some strong and drastic improvements in the coming time to get effective business
results in term of sales and credit quality. This will truly allow the Transaction Office to create
its own advantages in the lending activities.
It is exploiting and using available resources in the economy to produce goods and
supply service to meet the market demands and to gain profits that are considered as
production and business activities. Personal business loans are credit products provided to
meet the demands for financing some production and business steps or implementing
investment projects, business plans and services.
At BIDV - Sapa Branch, personal business loan service has customers who want to
access loans to finance their production and business activities such as providing services and
working as sales agents, trading units or purchasing clues. Loan terms depend on the purpose
of loans and the business type of personal loans. Currently, personal business loans have
different terms, including: short term, medium term, and long term. Business loans often have
larger amount than consumer loans, so their average interest rate is more preferable than that
offered by consumer loans. Thanks to owing a simple and common structure, the personal
loan service for local business is one the most effective product. The reason is that this service
not only brings high net interest income but it can also sell many attached service & product
packages.

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In this context, I was allowed to have my internship at BIDV - Coc Leu Transaction
Office under the BIDV - Sapa Branch . During the internship, I received the guidance of Ms.
Hoang Viet Ha - Deputy Director in the Transaction Office.
My internship plan is shown in details as follows:
Table 1: My internship plan at BIDV - Sapa Branch
Date
Task / Mission
Learning about the personal
05th
to
09th
business loan process at BIDV - Coc
February
Leu Transaction Office
th
th
20
to
24
Supporting doing some daily tasks
February
27th February to Receiving loan applications from
3rd March
5th to 23rd March
26th to 30th March
2nd to 6th April

9th to 13th April

16th April to 14th
May

customers
Supporting appraising customers’
loan applications

Outcome
Clearly

understanding

the

personal business loan process
Clearly

understanding

daily

activities at the Transaction Office
Capturing the corresponding
product catalog and conducting
preliminary inspection
Understanding
the

product

requirements and the certain notes

when appraising customer records
Completing records and procedures Understanding steps after loan
after loan approval
Supporting loan disbursements
Controlling loans and collecting
debts
Conducting a customer survey about
the personal business loan service at
BIDV - Sapa Branch

approval
Clearly understanding how to
conduct loan disbursements
Clearly understanding how to
control loans after disbursement
and collect debts
Assessing the service quality and
finding out shortcomings in the
service quality at BIDV - Coc Leu

Transaction Office
Analyzing the competitors of BIDV Clearly understanding BIDV 15th to 18th May

- Sapa Branch in the personal Sapa Branch ‘ strengths and
business loan service

21st to 23rd May
24th to 25th May

Giving general assessments and
suggesting some recommendations
Writing the internship report

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weaknesses in this service
Suggesting

some

recommendations for improving
the quality
Accomplishing
report

the

internship


PART II: INTERNSHIP IMPLEMENTATION AT BIDV - COC LEU
TRANSACTION OFFICE

2.1. My internship position, responsibilities and tasks
2.1.1. BIDV - Coc Leu Transaction Office and my position
In the bachelor program, I was accepted to work as a customer service staff at BIDV Coc Leu Transaction Office under the direction of Ms. Hoang Viet Ha - Deputy Director.

BIDV - Coc Leu Transaction Office has some business functions as follows:
 Building and developing relations with customers shared from the BIDV - Sapa
Branch’s customer base;
 Seeking customers to enrich BIDV - Coc Leu Transaction Office’s customer base and
create business bases;
 Providing individuals and enterprises with loans; mobilizing deposits from residents
and economic organizations; providing domestic and foreign customers in need with financial
services such as guarantee, e-banking, cards, domestic and international money transfer,
foreign currency trading, etc.
 Developing and improving policies.
Currently, BIDV - Coc Leu Transaction Office is one of the BIDV - Sapa Branch’s five
transaction offices. It is located on Hoang Lien Street, which is the main road in Sapa Town.
Sapa Town has a dense population. Moreover, the number of tourist coming to the town of
Sapa each year reaches 200,000 people. Taking advantage of its geographic location, Coc Leu
Transaction has gained more certain achievements, especially in the personal business loan
service, than other transaction offices under the BIDV - Sapa Branch.
2.1.2. Personal business loan process at BIDV - Sapa Branch and my responsibilities
In recent years, in the increasingly strong development context of retail banking
services, Vietinbank and Techcombank play prominent roles in providing consumer loans.
However, the personal business loan service has also created its own mark in Lao Cai
Province in general and Sapa Tow in particular because it is more flexible than consumer
loans. Another reason is that customers in Coc Leu mainly work in the business fields.
Currently, personal business loans have different terms, including: short term, medium term,
and long term. In spite of such different terms, BIDV - Coc Leu Transaction Office mainly
provides short-term personal business loans. Loans are used to supplement working capital for
customers’ production and business activities. Specifically, customers use loans to pay production
& business costs such as purchasing raw materials, goods and services, etc. Currently, customers

7

with demands for personal business loans can access through methods, namely, stand-alone loans
and limit-based loans. Personal business loans are currently provided at a competitive interest rate.
For example, the interest rate for loans under 6 months is 6.7% per year while it is 7% per year for
loans from to 6 to 11 months. In addition, the interest rate will be flexibly calculated based on the
reduced outstanding principal. That allows customers both to ensure capital for their business
activities and maximally save capital costs.

 Personal business loan process at BIDV
Due to a fierce competition from credit institutions in the areas, BIDV continuously
improves and timely supplement project features. Particularly, it always optimizes the
personal business loan process to meet the requirements of customers. Thanks to basic
activities as well as flexible combination between business and risk management, BIDV has
some certain advantages in the personal business loan process. Therefore, it both timely meets
the needs of customers and ensures BIDV - Coc Leu Transaction Office’s requirements of risk
management. The process in detail is as follows:
Figure 2: Personal business loan process at BIDV - Coc Leu Transaction Office

Step 1: Receiving
loan applications

Step 2: Appraising
credit conditions

Step 3: Appraising
risks

Step 4: Approving
loan applications

Step 5:
Completing
procedures after
loan approval

Step 6:
Conducting loan
disbursement

Step 7:
Controlling loans

Step 8: Collecting
debts

Step 9: Solving
problems arising

Step 10:
Liquidating credit
contracts
Source: BIDV

8


9


 Business results of personal business loans at BIDV - Coc Leu Transaction

Office
According to the analysis results, in 2017, BIDV - Coc Leu Transaction Office’s loan
sales twice as many as those in 2016 and accounted for nearly 50% of the BIDV - Sapa
Branch’s loan sales. It shows that BIDV - Coc Leu Transaction Office’s staffs have tried their
best to gain such results. The reason for such quite large loan sales is that BIDV - Coc Leu
Transaction Office’s customers are mainly middle-sized households. Every five/six month,
BIDV - Coc Leu Transaction Office will collect debts from customers and BIDV - Coc Leu
Transaction Office will then conduct the next disbursement (based on the customers’ turnover
of goods).
Table 2: Business results of personal business loans at BIDV - Coc Leu Transaction Office in
2016-2017
(Unit: Billion VND)
Criteria
2016
2017
Sales from providing the personal business loan service
234
451
Sales from collecting debts of the personal business loan service
107
218
Total outstanding personal business loan service
127
233
Classified by business sector
234
451
Trading and services
47
138

Agricultural/farm produce
80
95
Classified by loan method
234
451
Stand-alone loans
10
15
Limit-based loans
224
436
Bad debts
0%
0%
(Source: BIDV - Coc Leu Transaction Office)
After analyzing outstanding loans at BIDV - Coc Leu Transaction Office, I realize that
at the end of 2017, BIDV - Coc Leu Transaction Office’s cumulative outstanding loans
reached 451 billion dong, an increase of 83.5% in comparison with 2016. Loans mainly focus
on the business fields, accounting for 41%. The reason is that BIDV - Coc Leu Transaction
Office is near the famous local market which is near China. Therefore, exporting and
importing agricultural products are still main activities. During the last time, customers
working in the field of producing agricultural products had quite high demands when
outstanding loans reached 95 billion dong in 2017, increasing by 15 billion dong in
comparison with 2016. Besides, limit-based loans were also preferred by customers because
these loans could bring customers flexibility and proactiveness in using credit capital sources.
Accordingly, outstanding limit-based loans reached 436 billion dong (97%), up 95% over
2016.

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Up to now, BIDV - Coc Leu Transaction Office has operating for less than two years. Its
economic situation is also quite stable. Thanks to the process of strictly appraising loan
records, granting credit limits and controlling risks, BIDV - Coc Leu Transaction Office’s bad
debt ratio was still 0% at the end of 2017. I realize that in order to get the greatest results, it is
necessary for BIDV - Coc Leu Transaction Office to develop its sale scale along with its
principles of credit quality management. To become a good customer service staff in the
banking sector, I need to carefully remember this principle.
2.1.3. My daily tasks during the internship
During the internship in BIDV - Coc Leu Transaction Office, one BIDV - Sapa Branch’s
transaction office, I was assigned by the Transaction Office’s Management Board to work as
customer relationship staff under the direction of Ms. Hoang Viet Ha - Deputy Director of the
Transaction Office.
On the first internship days, I guided how to welcome and coordinate customers to
transaction counters. These tasks allowed me to get a better understanding of basic activities
and of how transactions at counters took place. In addition, I was assigned to do some tasks
related to the preparation of customers’ documents/records. They were: photocopying,
printing, and scanning. These
tasks allowed me to support staffs
in serving customers. Thenceforth,
I had an opportunity to improve
some simple office skills.
For this mission, I did some
simple tasks such as welcoming
and coordinating customers, doing
tasks related to the preparation of
customers’ records. As a result, I got acquainted to basic activities in the BIDV - Coc Leu
Transaction Office. After that, I was assigned to draft credit documents by entering
information into the form (template) as required by BIDV - Coc Leu Transaction Office. I

implemented this task under the instruction of Mr. Tran Ngoc Son. Customer information was
sequentially entered on the basis of credit information provided by customers. I often
supported staffs in processing disbursement records and customer appraisal records. At first, I
did this task quite slowly because of BIDV’s complex forms. However, I learned office
computer skills at university, so I could fluently use Word and Excel to draft documents. After
that, I felt it easy to do this task and I also completed this task as scheduled.

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When I had no record for process, I was assigned to receive incoming calls. Depending
on each call, I instructed customers to make calls to the right lines so that their requirements
such as money transactions, product consultation or quality service complaints were solved
appropriately. This task allowed improving my communication skills. Moreover, I could
clearly understand the need of customers as well as corresponding activities at BIDV - Coc
Leu Transaction Office.
Finishing these tasks, I got a clear understanding of the business operation at BIDV Coc Leu Transaction Office. Moreover, I also improved some office skills. For example, I
could support entering customer data into the Excel file. Specifically, I supported entering 10
appraisal records and conducted a loan disbursement to 01 customer. In addition, I also
understood how to communicate with customers via telephone after receiving 20 phone calls
from customers. Customer phone calls were mainly about basic contents such as issuing new
cards, providing interest rates. For other contents, I would connect customers to the relevant
departments. I think that this was basic knowledge for me to initially access the operation
process at BIDV - Coc Leu Transaction Office.
2.2. My important internship missions associated with some business cases at
BIDV - Coc Leu Transaction Office
2.2.1. Receiving loan applications for personal business from customers
After some days of practicing at BIDV - Coc Leu Transaction Office, I basically
understood products and services provided here. In order to deeply learn about the business
activities, I was assigned to receive and initially processed customers’ loan applications. In

this task, I received and processed the records of personal business loan service. Mr. Tran
Ngoc Son directly guided me to implement this task, and he also supported me solving special
issues related to the receipt of records.

12


In this task, when learning about products and services at the Transaction Office, I also
clearly knew the list of customers with demands for loans. It is simple but important. If this
step is implemented quickly and accurately, it will save a lot of time for business staffs and
customers. Based on the required list of customers, I received customers’ records and gave
initial assessments of such records. For records submitted in the first time, Mr. Tran Ngoc Son
and I checked all documents provided by customers. Normally, there is no record which
documents are fully and accurately provided in the first time. The reason is that customers are
individuals who have no experience in accessing loans at banks. Therefore, Mr. Son carefully
guide me to do this task. Base on the list of required documents, I checked and notified
customers of lacked/inaccurately documents and then asked them to timely supplement such
lacked/inaccurately documents in the next time.
 Results obtained
Finishing this task, I received and processed 07 records from customers with the
demands for personal business loan service. Where a customer record was considered to be
typical when the customer prepared and provided documents quite fully in the first time. This
customer’s record was evaluated by Mr. Son to be a good one. Specifically:
Case No. 1 (Failed)
 Loan information: This was a personal business loan service, with a loan amount of
400 million dong, an interest rate of 7.2%/year and a loan term of 3 months. This loan was
ensured by the real estate located at Cau May Street, Sapa Town.
 Customer information: The Customer is Ms. Nong Thuy Ngan, 42 years old, residing
at 92, Cau May, Sapa Town. Currently, she has a grocery store.
 Financial position of customer: The customer’s income currently comes from the

business results of the grocery store in Cau May Street. The grocery store’s average revenue
in the last three months was about 125 million dong. The customer had no loan at any
organization. The customer was in need of 600 million dong to purchase goods for the
summer tourist season 2018. The customer had 200 million dong and wanted to borrow 400
million dong.
 Customer risk: After receiving the record from Mrs. Nong Thuy Ngan, Mr. Son and I
assessed that this was a complete set of records as required by the personal business loan
service. However, it only had one small issue about Ms. Ngan’s ID Card. Its date of issue was
28 April 2001. This ID Card’s validity is not suitable as regulated by BIDV. However, after
being notified of such matter, Ms. Ngan refused to add information and wanted to withdraw
her records because she raised enough money from relatives.

13


 Negotiations and result: In this case, the customer changed her demand because she
borrowed money from relatives (free interest rates), so BIDV - Coc Leu Transaction Office
failed to provide a loan for this customer. The record was returned to the customer. The
customer said that she would contact BIDV - Coc Leu Transaction Office when she had
another demand.
2.2.2. Supporting in appraising records of personal business customers
The next task in the personal business loan process at BIDV - Coc Leu Transaction
Office was to appraise customers’ records. This task allowed me to better understand
customer assessment criteria. This was implemented under the direction of Mr. Tran Ngoc
Son. In this task, Ms. Hoang Viet Ha also observed and supported Mr. Son and me in some
difficult cases requiring the participation of experience staffs.
To do this task, based on the list of loan records prepared and provided by customers,
Mr. Son guide me appraise them. Before directly appraising any record, I was required to
carefully understand the personal business loan service and to pay much attention to how
staffs appraise records. This task was very difficult and required a lot of professional

knowledge and experience, so Mr. Son would take direct responsibility for the credit process.
I was assigned to support Mr. Son in preparing records and calculating some ratios as well as
doing some tasks. For each record, Mr. Son evaluated some criteria such as business plan and
loan purposes and compared the borrowers with BIDV - Coc Leu Transaction Office’s
regulations. In addition, he also compared the customer’ loan demand with the customer’s
loan purpose, own capital, repayment schedule and repayment resources. Pursuant to the
customer’s business plan, Mr. Son carefully learned about markets, development trends, input
materials, consumption as well as competitiveness of products, goods and services. He also
gave his own assessment of the plan’ feasibility as well as its economic efficiency; calculating
the customer’s repayment sources from other plans and other income resources; evaluated
collateral; appraised assets; identified the loan to collateral ratios, loan amounts, loan terms,
interest rates, time for paying principals and interest based on BIDV - Coc Leu Transaction
Office’s regulations for the individual service loan for business.
 Results obtained
After completing this task, Mr. Son and I appraised 05 records for the personal business
loan service. Thanks to supporting Mr. Son in appraising customer records, I got a clearly
understanding of customer assessment criteria, including theoretical knowledge and practical
experience. To well appraise customers’ records, it was necessary for me to clearly
understanding products/services offered by BIDV - Coc Leu Transaction Office. However, I
needed to flexibly appraise customers’ records. I will present a typical case as follows:
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Case No. 2 (Failed)
 Loan information: This was a personal business loan service, with a loan amount of
250 million dong, an interest rate 6.9 %/year and a loan term of 4 months. This loan was
ensured by the customer’s Vios Car 2015.
 Customer information: The Customer is Mr. Tran Huy Kien, 45 years old, residing in
Coc Leu, Lao Cai City. Currently, he is distributing milk products for TH Truemilk and
Nutifood in the city of Lao Cai.

 Financial position of customer: The customer’s income currently comes from the
distribution of milk products in the area. The customer’s average revenue in the last three
months was about 94 million dong. The customer had a loan secured by his house at MB
Bank - Sapa Transaction Office. The Customer wanted to borrow 350 million dong to make
payment for the next milk shipment. He had 100 million dong and want to borrow 250 million
dong.
 Customer risk: After appraising his loan records and checking his information at the
Credit Information Center (CIC), we realized that during the 12 last months, the Customer’s
loan was overdue twice at MB Bank - Sapa Transaction Office. Therefore, Mr. Son assessed
that this customer had a bad habit of repayment and the bad financial position, so it was likely
to occur overdue debts and bad debts in the future if BIDV - Coc Leu Transaction Office
provided him a loan.
 Result: As required by Mr. Son, I asked the customer about his overtime debts. The
customers said that he went on business and could not make payments on time. To accurately
evaluating the financial position of customer, I asked him to provide BIDV - Coc Leu
Transaction Office with other input and output records, but he refused to provide such
records. Therefore, BIDV - Coc Leu Transaction Office refused to provide him a personal
business loan.
2.2.3. Completing the procedure after personal business loan approval
While participating in appraising customers’ loan records, I clearly understood how to
appraise a loan record at BIDV - Coc Leu Transaction Office. After that, I was assign to
complete records and approval procedures of the service loan service for business to
understand the final approval procedures.
To perform this task, Mr. Tran Ngoc Son guided me to carry out this task. Firstly, I
prepared credit/loan contract and mortgage contracts under BIDV - Coc Leu Transaction
Office’s forms. Then, I sent them to Mr. Son for reviews. Then, I sent such revised contracts
to customers for reading and for initially signing on the contract pages and directly signing in
front of notaries. Then, I submitted them to the Deputy Director of Transaction Office for her
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initial signatures and submitted to the Director of Transaction for signing. After records were
completed, customers would register the secured transactions. And then, customer service
staffs would make minutes of handing over assets, make storage slips and transfer the original
certificates of assets to the asset warehousing unit. Also, loan records and documents/invoices
were transferred to credit administrators to enter customer information into the system.
 Results obtained
After completing the task of prepare loan records for approval, I got a clear
understanding of internal procedures at the transaction office. These procedures are applied to
ensure business security at BIDV - Coc Leu Transaction Office. Of the records I participated
in appraising, there was a typical one. The details are shown as follows:
Case No. 3 (Succeeded)
 Loan information: This was a personal business loan service. The customer had one
loan with a credit limit of 1 billion dong. This time, the customer wanted to borrow 400
million dong with an interest rate of 7.1%/year and a loan term of 4 months. This loan was
ensured by the real estate located in Hoang Van Thu, Coc Leu ward.
 Customer information: The Customer is Mr. Do Duc Hien, 34 years old, residing in
Hoang Van Thu Street, Coc Leu ward. Currently, she has a clothes shop in the town of Sapa.
 Financial position of customer: The customer’s income currently comes from the
business activities of clothes in the area. The customer’s average revenue in the last three
months was about 53 million dong. The Customer’s had a loan contract in BIDV - Coc Leu
Transaction Office with a credit limit of 1 billion dong. However, the customer has not used
this loan. Currently, the customer wanted borrows 400 million dong to make payment for the
next clothes shipment.
 Customer risk and result: In this case, the Customer fully prepared and provided
documents as required for BIDV - Coc Leu Transaction Office in the first time. Therefore,
BIDV - Coc Leu Transaction Office agreed to provide a loan for the customer. In this loan
disbursement, the customer had to just add her disbursement records, including: sales
contract, delivery slip, purchase order and amount payables (400 million dong) to sellers) in
accordance with the regulation of BIDV. This customer was disbursed immediately in two to

five hours after BIDV - Coc Leu Transaction Office received a full set of documents as
required.
2.2.4. Participating in disbursing personal business loans approved
In the fourth mission, I was assigned to support conducting disbursement to customers
who met the disbursement conditions of the personal business loan service. I was

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implemented this task under the instruction of Mr. Tran Ngoc Son. He gave me detail
guidance of steps in the loan disbursement process.
To implement this task, under the direction of Mr. Tran Ngoc Son, I asked customers
to provide BIDV - Coc Leu Transaction Office with documents proving loan purposes,
economic contracts, and minutes of debt acknowledgment, and written requests for
disbursement. After that, Mr. Son guide me to check disbursement purposes (reasonably),
prepare credit contract to submit to leaders for approval and to send to customers for signature
(3 copies: customer, Credit Management Department and accountant). The Credit
Management Department reviewed Customers’ records and created accounts for monitoring.
After that, contracts would be given to tellers for disbursements.
I was assigned to provide clear instruction for business loans to pay goods and input raw
materials for the sellers who do not have any account at a bank. For loans used borrowers to
purchase agricultural products and confectionary, BIDV - Coc Leu Transaction Office will
disburse to customers by cash or the disbursed amount is below 100 million dong (according
to No. 09/TT/NHNN). For fixed assets loans, if the customers’ sellers have accounts at BIDV
or any bank, BIDV Coc Leu Transaction will directly disburse into the sellers’ accounts.
 Results obtained
The disbursement process was done quite quickly. Under the direction of Mr. Son, I
disbursed to 04 customers. Where Ms. Hua Thi Thanh Thuy was a typical case.
Case No. 4 (Succeeded)
 Loan information: This was a personal business loan service, with a loan amount of

332 million dong, an interest rate of 7.3%/year and a loan term of 3 months. This loan was
ensured by the real estate located in Ngo Quyen Street, Kim Tan, Lao Cai City.
 Customer information: The Customer is Ms. Hua Thi Thanh Thuy, 38 years old,
residing in Ngo Quyen Street, Kim Tan, Lao Cai City, Lao Cai Province. Currently, she is
trading stationery products/items in the City of Lao Cai.
 Financial position of customer: The customer’s income currently comes from trading
stationery products/items in the area. The Customer’s average revenue in the last three months
was about 55 million dong, including wholesale and retail revenues. The customer had a
demand for a short-term loan to pay the next goods shipment.
 Customer risk and result: In this case, this is a typical customer with a good
repayment and a clear business loan purpose. In addition, the customer’s income comes from
the wholesale of stationery items for schools and agencies in the area. The customer’s income
resource is quite stable. The customer has a good status and a good attitude of timely

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repayment with the full interest amount under the credit contract signed between the customer
and BIDV - Coc Leu Transaction Office.
2.2.5. Controlling personal business loans and collecting debts
The fifth mission which I implemented in the personal business loan process was to
control loans and collect debts. This task allowed me to clearly understand after-disbursement
activities and debt collection. Ms. Hoang Viet Ha directly guide me to do this task so that I
could get a deep understand of after-disbursement management at BIDV - Coc Leu
Transaction Office.
This mission was quite important in the credit process, so I would have observed how
Mr. Tran Ngoc Son did the task, under the orientation of Ms. Hoang Viet Ha. Controlling
loans after disbursement consists of checking whether customers used their loans for the right
purpose or not and checking the loan use efficiency of customers. After that, Mr. Son would
make a report of checking customer’s loans as regulated. 5 to 7 days prior to the debt

collection, Mr. Son informed customers of the repayment of principal and interest. In case
where there is not enough balance on the customer’s payment account to pay principals and
interest in the payment period, Mr. would collect direct debts from the customer’s payment
account. In such cases, I supported Mr. Son in making phone calls to customers to ask them to
deposit into their payment account for debt collection.
 Results obtained
After observing the process of controlling after-disbursement loans and collecting debts
at BIDV - Coc Leu Transaction Office, I realized that this was a very important stage. Any
arising matter in this process reduce the efficiency of loans. I will present one typical case I
participated in the observation process.
Case No. 5
 Loan information: This was a personal business loan service, with a loan amount of
650 million dong, an interest rate of 8.3%/year and a loan term of 8 months. This loan was
ensured by the real estate located in Hoang Lien Street, Lao Cai City.
 Customer information: The Customer is Mr. Ngo Quoc Nam, 48 years old, residing
in Hoang Lien Street, Lao Cai City. Currently, Mr. Nam is trading high-class cosmetics in
Sapa town.
 Financial position of customer: The customer’s income currently comes from trading
high-grade cosmetics such as chalk, perfume, shampoo, etc. The Customer’s average revenue
in the last three months was about 105 million dong, including wholesale and retail revenues.
The customer had a demand for a short-term loan to pay the next goods shipment.

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 Customer risk and result: Mr. Ngo Quoc Nam’s business activities were relatively
stable, but in the past two months, he made late repayment. After visiting his business
establishment, I notice that his sales actives for tourists was suspended due to his repairing
and upgrading the shop. Therefore, his sales during the two months was affected. After talking
with Mr. Nam, I noticed that his repair was completed and the number of customers buying

his products/goods was stable again, even increased due to his upgrading the shop. The late
payment amount would be deposited into his payment account at BIDV to pay principals and
interests in accordance with BIDV - Coc Leu Transaction Office’s regulations.
2.3. Analysis of personal business loan service at BIDV - Coc Leu Transaction
Office
2.3.1. Conducting a customer survey on personal business loan service at BIDV - Coc
Leu Transaction Office
After participating in the personal business loan process at BIDV - Coc Leu Transaction
Office to get certain knowledge of this service, I was assigned to conduct a customer of the
service quality. Under the direction of Ms. Hoang Viet Ha - Deputy Director of the
Transaction Office, I started to design the questionnaire and conduct a survey on the
customers going to BIDV - Coc Leu Transaction Office for transactions. The survey was
expected to bring many objective information so that BIDV Coc Leu Transaction could
evaluate its advantages and disadvantages in the business activities.
To do this mission, firstly, I designed the questionnaire. with the following main
contents, namely: customer information (name, age, gender, occupation, income) and survey
questions about the customer service quality. Questionnaires were printed on A4 paper and
distributed to customers going to BIDV - Coc Leu Transaction Office for business loans.
Within nearly one month, I distributed 150 questionnaires to customers. After screening
information, I collected 131 valid questions for research. I summarized and entered data into
the Excel file under the direction of Mr. Hoang Viet Hoa. My survey took place quickly and
conveniently because I had some experience in summarizing statistics.

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 Results obtained
The survey sample includes 131 customers, most of who are at the age of 30 to 60
(80%) and most of whom are male (68%). 56% of these customers are currently working in
the fields of agriculture, forestry and fisheries. Customers trading and providing services

account for 30%.
Figure 3: My survey sample
Ag e

Ge nder

Female;
32.06%

Business fie lds

< 30; 8.40%
Male; 67.94%

>60; 11.45%
40-60; 47.33%

30-39; 32.82%

Trade and Others; 4.58%
services;
Agriculture,
29.01%
forestry,
Industry and fisheries;
construction; 55.73%
10.69%

According to my survey results, it can be seen that the quality of services provided by
BIDV - Sapa Branch - Coc Loc Transaction is generally evaluated quite well by the majority

of customers (78%). However, 29 customers (22%) said that the service quality was only at
Level 1 and Level 2. It requires that BIDV - Coc Leu Transaction Office should solve such
matter as soon as possible to improve its quality service to attract more customers. In fact,
other banks are also gradually attracting more customers than BIDV - Sapa Branch - Coc Loc
Transaction.
Figure 4: Customer assessment of the personal business loan service at BIDV - Coc Leu
Transaction Office
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

15.27%
25.95%

34.35%

36.64%
17.56%
0.05

39.69%
22.90%

3.05%
0.08

Very dissatified

11.45%
42.75%

12.21%
33.59%

21.37%
16.79%
0.1

25.19%
19.08%
0.06

Dissatified

Acceptable

15.27%
25.95%
33.59%
19.08%
0.19

Satified

2.29%
41.98%

18.32%
32.06%

22.90%
13.74%
0.11

22.14%
16.79%

Very satified

Survey results show that BIDV’s reputation and influence are highly appreciated by
many customers. 97% of customers said that BIDV’s reputation were at Level 3 to Level 5.
However, lending interest rates can also affect whether customers can want to continue to use

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BIDV’s services in the future or not when customers (30%) evaluate that such lending interest
rates have not been reasonable.
To create simple procedures as well as to bring convenience to customer, its necessary
for BIDV to pay attention to such as criteria when 76% of customers are not satisfied with
BIDV’s procedures. Many customers evaluate that staffs’ service quality are not good in term
of qualification and attitude. 43 of 131 customers (33%) gave assessments of such service
quality at Level 1 and Level 2.

Figure 5: Customer satisfaction on personal business loan service at BIDV - Coc Leu
Transaction Office

Very satified;
16.79%
Satified;
35.88%

Very
dissatified;
14.50%
Dissatified;
12.98%
Acceptable;
19.85%

BIDV - Coc Leu Transaction Office’s location and infrastructure quality is evaluated to
have well met the requirements of customers. The reason is that BIDV - Coc Leu Transaction
Office is located in the center of Lao Cai City and it has just invested into its facilities.
Therefore, BIDV - Coc Leu Transaction Office should take such advantages to further
develop in the future.
2.3.2. Competitor analysis of BIDV - Sapa Branch on personal business loan service
Currently, BIDV is the leading bank in providing the personal business loan service
because it has many advantages such as having a longstanding customer base and working as
a state-owned bank trusted by many customers. Its competitors include other State-owned
banks such as Vietcombank, & Vietinbank and other joint stock commercial banks such as
Techcombank and MBBank. These competitors are also giving threats to BIDV’s position in
this service.
 Service
To better the customers’ demands for business loans, banks have always innovated and

improve their project features. For example, MB Bank can provide loans for customers with a
loan amount of up to 90% of the customers’ demands and with a lot of loan purposes such as
working capital loans; additional working capital loans; Apartment, house and project land
loans; construction, lease, repair loans for factories, stalls and stores. Meanwhile, Vietinbank

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