ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 15 April 2022 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Duong Quoc Khanh Student ID GBD191323

Class GBD1007 Assessor name Phan Tran Phuong Trang

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

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Contents
I. Introduction.........................................................................................................................................................4
II. Type and purposes:.............................................................................................................................................5
2.1. Type.............................................................................................................................................................5
2.2. Purposes......................................................................................................................................................7
III. SIZE AND SCOPE...............................................................................................................................................9
3.1. SIZE..............................................................................................................................................................9
3.2. SCOPE........................................................................................................................................................12
IV. Organizational structure and functions.........................................................................................................14
4.1. Organizational structure............................................................................................................................14
4.2. Function.....................................................................................................................................................15
V. Conclusion.........................................................................................................................................................16
References.................................................................................................................................................................17
I. Introduction

Company’s name JOINT STOCK COMMERCIAL BANK FOR FOREIGN

TRADE OF VIET NAM
Abbreviation Name Vietcombank
Representative Name Chairman of the board: Mr. PHAM QUANG
DUONG
Headquarters 198 Tran Quang Khai, Hoan Kiem District, Hanoi,
Vietnam
Tel +84 - 24 - 3934 3137
Fax +84 - 24 - 3826 9067
Type ownership Joint-stock company
Website https://portal.vietcombank.com.vn/
Industry Financials
(VCB Company Profile, 2018)

Represented the responsibility to explore patterns and sizes as well as company sizes in Vietnam for
investment research 2020-2025 as a business analyst at Wells Fargo, a financial services group
multinational based in the United States. The company was selected as Joint Stock Commercial Bank for
Foreign Trade of Vietnam, also known as Vietcombank. The Corporation will get a complete picture of
Vietcombank before deciding to invest or not.
II. Type and purposes:
II.1. Type
Vietcombank is a for-profit business. The corporation had to pay 18.451 billion VND in dividends to
shareholders, according to Vietcombank’s annual report 2020.

(Vietcombank Annual Report, 2020)

Vietcombank, on the other hand, is a public enterprise. On the trading floor of unlisted public
corporations, Vietcombank released shares to the public on December 26, 2007. (UPCoM). The shares of
Vietcombank were first listed on the Ho Chi Minh City Stock Exchange in 2009 (HOSE). Vietcombank's
stock symbol on the market is VCB (VietstockFinance, 2022).
 (VietstockFinance, 2022)

The State Bank of Vietnam (state capital representation at VCB) is the company's largest shareholder,
owning 74.8 percent of charter capital, indicating that Vietcombank is a state-owned organization.
Mizuho Corporate Bank Ltd is a strategic stakeholder that owns 15% of the charter capital. 10.2 percent
of VCB's charter capital is held by other shareholders (including domestic and international organizations
and individuals) (Vietcombank Annual Report, 2020).

(Vietcombank Annual Report, 2020)

 II.2. Purposes
During its years of operation, Vietcombank has set for itself visions, and missions, and always set high
goals to deserve the title of No. 1 bank in Vietnam.

Vision: Vietcombank aspires to be the best bank in the sector. They also have a goal of becoming one of
the top 100 banks in Asia and one of the top 300 banks in the world. They not only want to maintain
their status as the top bank, but they also want to see their bank expand (Vietcombank Annual Report,
2020).

Mission: Vietcombank's mission is to offer maintainable managing accountadministrations.

Core values:

 "Innovative" in providing actual value to its consumers

 "Continuous" to grow its customer base – its most valuable asset
 "Caring" as a means of serving customers
 "Connected" to integrate into the regional and international financial sector
 "Individual" to remain unique and best in value and quality
 "Secure" to protect the interests of its customers and shareholders

Objectives

Strategic objectives:

 Bank achieved Top 1 Retail and Top 2 Wholesale: Continue to consolidate the development of
wholesale, promote retail activities as a basis for sustainable development. Maintain and expand
existing domestic markets and develop overseas markets (Vietcombank Annual Report, 2020).
 The leading bank in terms of customer satisfaction: With the goal of gradually increasing the
number and sales from customers, focusing on target customers, Vietcombank continues to
promote product diversification, develop new products and services. advanced banking services
based on modern technology to satisfy the maximum needs of customers (Vietcombank Annual
Report, 2020).
  The leading bank in terms of human resource quality: Enhancing the quality of human resources
through innovation in recruitment, retention, training and staff rotation; strengthen the
cooperative culture in the bank; increase employee engagement and efficiency (Vietcombank
Annual Report, 2020).

Social objectives: Not only focusing on developing the bank's business activities, Vietcombank also
defines for itself noble goals for society and the community:

 Vietcombank aspires for consistent business growth, maintaining a continuous financial lifeline,
and contributing to the development of Vietnam's economy and society in general, as well as the
banking industry in general. private (Vietcombank Annual Report, 2020).
 Vietcombank's actions are constantly oriented toward the community and society, with the goal
of helping to build a wealthy and happy country. Vietcombank has consistently maintained
"Humanity" as a key value of its culture, always willing to share not only with consumers,
customers, and partners, but also to share and help the poor, people in distant and isolated
places, and ethnic minority areas, who still face many constraints. One of the key priorities stated
by Vietcombank each year is to pay attention to and devote considerable resources to social
security. As a result, Vietcombank's brand value and renown have been consistently established
and cultivated over the last 50 years (Vietcombank Annual Report, 2020).

“Greenness for life" (Vietcombank Annual Report, 2020)

III. SIZE AND SCOPE
III.1. SIZE
 (Vietcombank Annual Report, 2020)

Capital: According to the financial report for 2020, Vietcombank's total assets are public, totaling
1,326,230,092 million VN. The overall assets of 2019 are more than 103,416,400 million VND greater.
The total liabilities of Vietcombank were 1,141,859,355 Million VN in 2010, and this figure is expected to
rise to 1,232,135,113 Million VN by 2020. However, it is not a cause for alarm. The whole equity of
Vietcombank is shown next. In comparison to 2019 (when total equity was 80,954,337 Million VN), total
equity grew in 2020 to 94,094,979 Million VN.
Employees: As at 31/12/2020, the total number of employees was: 20.062 persons. With a large and
increasingly growing number of employees, Vietcombank’s BOD and BOM always focus on human
resources development and see it as the key to the success and efficiency of the Bank (Vietcombank
Annual Report, 2020).

• Human resources are managed in accordance with best practices in order to establish,
develop, and maintain a high-quality team that contributes to the Bank's mission of being
the leading bank in terms of human resource quality.
• With a serious and professional recruiting policy, employee quality is managed from the
recruitment stage; accepted staffs are suited for the intended role.
• HR planning activities are carried out thoroughly and carefully in order to develop a team
of leaders who are up to date on information and have professional experience in
operation and management.
• Training activities are pushed to increase both the quantity and quality of staff training
courses.
• A compensation system is designed on the basis of flexibility, linking remuneration to
productivity, quality, and performance in order to motivate employees.
 III.2. SCOPE

(Vietcombank Annual Report, 2020)

Vietcombank now has over 600 branches/transaction offices/representative offices/members

throughout the country and abroad, including the following: the head office in Hanoi; 116 branches; 474
transaction offices; and 04 domestic subsidiaries (Financial Leasing Company, Securities Company,
Remittance Company, Vietcombank Building Company 198); 03 foreign subsidiaries (Hong Kong Vinafico
Company, Vietcombank money transfer company in the United States, Subsidiary bank in Laos); and 01
representative office in Ho Chi Minh City. Ho Chi Minh City; 1 Representative Office in Singapore; 1
Representative Office in the United States; 3 non-business units: School of human resource training and
development; 1 Cash Processing Center in Hanoi; and 1 Cash Processing Center in Ho Chi Minh City. 03
Joint-venture and affiliated enterprises in Ho Chi Minh City In terms of human resources, Vietcombank
now employs around 20,000 people (Vietcombank Annual Report, 2020).
Furthermore, Vietcombank created an Autobank system with over 2,500 ATMs and over 60,000 card
payment acceptance devices countrywide. Banking operations are further backed by a global network of
1,249 correspondent banks in 102 countries and territories...
Vietcombank has executed a project to reform the business model with the objective of becoming the
No. 1 bank in terms of customer happiness, delivering the most advanced digital experiences, and
providing clients with ease and peace of mind. Retail Operations (RTOM) strives to modernize retail
operations completely, with a customer-centric cross-cutting focus on digital experiences and consumer
interaction. As a result, we may conclude that Vietcombank's primary market is the domestic market.
Target Customers:
In recent years, Vietcombank has implemented many policies to support customers affected by the
COVID-19 pandemic and natural disasters. Therefore, Vietcombank has expanded its customer base and
focused more on Small and Medium Enterprises (SME) and individual customers. The revenue of the
business sector decreased, in which, small and medium enterprises were the hardest hit. Vietcombank
hopes that with these practical activities, customers and banks will become more attached to and
overcome the difficulties of the pandemic together (Cam, 2022).
Moreover, in the economic conditions that are still directly affected by the COVID-19 epidemic in 2022,
Vietcombank continues to commit to maintaining interest rates at the current reasonable level to
continue supporting businesses and individuals. , business households maintain operations, adapt to the
new context; social security support for people and workers directly affected during this epidemic (Cam,
2022).
IV. Organizational structure and functions
IV.1. Organizational structure

(Vietcombank Annual Report, 2020)

Functional structural diagram of Vietcombank. The General Meeting of Shareholders is the Company's
highest authority and has the ability to make decisions within the scope of its duties and powers as
defined by the law and the Company Charter. When the Supervisory Board believes it is essential, in
accordance with the resolution of the General Meeting of Shareholders, or at the request of large
shareholders, it assesses yearly financial statements and investigates each individual issue linked to
financial activities. The General Director is solely in charge of subsidiaries and affiliates. The Risk
Management Committee, Personnel Committee, and Human Resources Committee monitor the general
director and the board of directors. Departments operate autonomously based on their functions.

IV.2. Function
Supervisory Board: Members of the Supervisory Board participated in expert pieces of training and
courses for a better understanding of administration to connect transformation projects; proactively
checked, encouraged, and coordinated with Departments/Divisions/Centers at the Headquarter and the
Branches to perform Supervisory Board proposals, internal reviews, and suggestions from outside
assessment units (Bao, 2020).

Risk Management Committee: The Risk Management Committee is responsible for advising the Board of
Directors on the adoption of acceptable risk management policies and orientations in each period,
including the Bank's calculation of ratios, restrictions, and risk exposure. Risk Management Committee /
The Chairperson of the Risk Management Committee has made comments on the loan and/or total loans
that exceed 10% of Vietcombank's equity or on other matters as requested by the Chairperson of the
Board of Directors (Bao, 2020).

Personnel Committee: The Personnel Committee is in charge of advising the Board of Directors on the
election, appointment, removal, dismissal, and public planning of senior management staff under the
appointment authority of the Board of Directors at the request of the General Director, as well as
promulgating regulations on salary, remuneration, bonus, staff recruitment, training, and other
remuneration policies for Vietcombank's senior managers and key personnel (Bao, 2020).

Human Resources Committee: The Human Asset Committee advises the Board of Directors on human
assets, compensation techniques, pay rates, incentives, and other Vietcombank compensation
arrangements. Following the survey and issuance of new rules on human asset administration, the
Human Resource Committee successfully reviewed and monitored the personnel under its competence.
Previously, the Human Asset Committee authorized the arrangement and reappointment of pioneers at
the Head Office and commerce units, leading to advancements in capacity and quality of staff
management (Bao, 2020).

Board of Directors: Except for subjects within the jurisdiction of the General Meeting of Shareholders,
the Board of Directors is the governing body of Vietcombank and has complete ability to act on its behalf
to make decisions and fulfill the Bank's rights and duties. The Board of Directors of Vietcombank is
accountable to the General Meeting of Shareholders under the legislation for the fulfillment of given
responsibilities and powers (Bao, 2020).

The Board of Directors and the Human Resources Committee have a working partnership in which the
Human Resources Committee advises the Board of Directors on human assets, compensation
methodologies, pay rates, incentives, and other Vietcombank compensation arrangements. The Human
Resource Committee effectively assessed and supervised the employees within its jurisdiction and
permitted the arrangement and reappointment of pioneers at the Head Office and commerce units,
resulting in improvements in capacity and staff management quality (Bao, 2020).

V. Conclusion
Based on the findings of the preceding analysis, it is possible to infer that Vietcombank is a promising
investment in the next years. With the accomplishments, it has made in recent years. Profits always
climb year after year, and Vietcombank always meets, if not exceeds, the aim set forth the previous year.
References
Bao, N. Q., 2020. VIETCOMBANK – JOINT STOCK COMMERCIAL, Ho Chi Minh : FPT University.

Cam, H., 2022. Vietcombank tiếp tục triển khai nhiều chính sách hỗ trợ khách hàng. [Online]
Available at: https://laodong.vn/kinh-te/vietcombank-tiep-tuc-trien-khai-nhieu-chinh-sach-ho-tro-khach-
hang-1001814.ldo
[Accessed 13 April 2022].

VCB Company Profile, 2018. VCB Company Profile. [Online]

Available at: https://vcbs.com.vn/en/Research/Company?stocksymbol=VCB
[Accessed 1 April 2022].

Vietcombank Annual Report, 2020. Vietcombank Annual Report. [Online]

Available at: https://portal.vietcombank.com.vn/VCBDigital/2020/vi/bao-cao-cua-ban-lanh-dao/
[Accessed 1 April 2022].

VietstockFinance, 2022. VCB: Ngân hàng TMCP Ngoại thương Việt Nam. [Online]
Available at: https://finance.vietstock.vn/VCB/thong-ke-giao-dich.htm
[Accessed 1 April 2022].