TON DUC THANG UNIVERSITY

FALCULTY OF BUSINESS ADMINISTRATION

REPORT
Subject: Money and Capital Markets
Topic: COMMERCIAL BANK

Lecturer: Do Thi Thanh Nhan

Group: 02
Group members: To Vu Minh Chau
Phan Tu Quyen
Dinh Quang Hiep
Nguyen Tran Dong Quan
Major: International Business

HCMC, 10th December , 2022

 GROUP’S MEMBERS

No Name Student Division work Percentage

ID
1 Tô Vũ Minh Châu 720K0935  Present
 Summarize the
report
100%
 Conclusion
 Introduction
 Chapter 2
2 Phan Tú Quyên 720K0942  Chapter 2
 Powerpoint 100%
 Present
3 Đinh Quang Hiệp 720K0857  Present
100%
 Chapter 1
4 Nguyễn Trần Đông Quân 720K0982  Present
100%
 Chapter 3

2
 CONTENT

INTRODUCTION.......................................................................................................5
CHAPTER 1: GENERAL INTRODUCTION OF VIETNAM COMMERCIAL
BANK SYSTEM..........................................................................................................6
1.1. Definition of commercial bank........................................................................6
1.2. How does a commercial bank make money?...................................................6
1.3. Function...........................................................................................................6
1.3.1. Primary Functions..................................................................................6
1.3.2. Secondary Functions..............................................................................7
1.4. Types of commercial banks.............................................................................8
1.4.1. Public Sector Banks...............................................................................8
1.4.2. Private Sector Banks..............................................................................8
1.4.3. Foreign Banks........................................................................................8
1.5. Types of loans offered by commercial banks...................................................9
1.5.1. Term loan...............................................................................................9
1.5.2. Bank Overdraft facility..........................................................................9
1.5.3. Letter of credit.......................................................................................9
1.5.4. Bank Guarantee.....................................................................................9
1.5.5. Lease Finance........................................................................................9
1.5.6. SME collateral-free loan......................................................................10
1.5.7. SME credit card...................................................................................10
1.5.8. Commercial vehicle loans....................................................................10
1.6. Regulation by Central bank...........................................................................10
1.7. SWOT analysis..............................................................................................11
1.7.1. Strengths..............................................................................................11
1.7.2. Weaknesses..........................................................................................11
1.7.3. Opportunities.......................................................................................11
1.7.4. Threat...................................................................................................11
CHAPTER 2: THE IMPORTANCE, THE ADVANTAGES, AND
DISADVANTAGES OF COMMERCIAL BANK..................................................12
2.1. The importance of commercial bank................................................................12
2.1.1. Role of commercial banks in economic development...............................12

3
 2.2. The advantages and disadvantages of commercial bank...................................13
2.2.1. The advantages of commercial bank.........................................................13
2.2.2. The disadvantages of commercial bank.....................................................14
CHAPTER 3: TOP 5 OF THE BEST COMMERCIAL BANKS AND
ANALYSIS OF THE BEST COMMERCIAL BANK IN VIETNAM 2022.........16
3.1. Top 5 commercial Banks in Vietnam 2022......................................................16
3.2. Analysis of Vietcombank commercial bank, Vietcombank South Sai Gon
branch...................................................................................................................... 16
3.2.1. Organization Structure..............................................................................18
3.2.2. Capital analysis.........................................................................................21
3.2.3. Credit operations.......................................................................................22
3.2.4. Business report..........................................................................................23
CONCLUSION.........................................................................................................25
REFERENCES..........................................................................................................26
APPENDIX................................................................................................................ 28

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 INTRODUCTION
The banking industry consists of systems of financial institutions known as
banks that assist people in storing and using their money. Banks allow customers to
open accounts for a variety of purposes, such as saving or investing money. The
banking industry is also beneficial to the economy because it provides resources for
individuals, families, and businesses to use for transactions and investments. One way
the banking industry accomplishes this is by organizing and distributing loans to
applicants for purposes such as purchasing real estate, starting a business, or financing
a college education.
In the banking industry, there are many different types of professionals, each of
whom serves a specific purpose in managing people's money. Bank tellers, for
example, can assist customers in opening and closing accounts, making deposits and
withdrawals, and setting up recurring payments for other services. A mortgage
consultant is another type of baking professional who can assist individuals and
families in applying for mortgages that allow them to purchase real estate. Similarly, a
credit analyst at a bank can examine a client's credit to determine whether they are a
good candidate for a loan.
While the banking industry remains a constant in society, it changes as new
trends emerge. One of the most popular current banking trends is the use of online
banking, which allows account holders to access and manage their funds from home
via computer. A closely related trend is the rise of mobile banking, which allows users
to access their bank accounts via mobile devices. Both of these trends are related to
technological advancements that assist the banking industry in improving its
processes.
The rise of investment banking is another widespread trend in the banking
industry. Investment banking is a service in which banking professionals advise their
clients on where they should invest their money. Investment banking is becoming
increasingly popular as a result of advancements in artificial intelligence and
automated banking processes. Many people use investment banking to inform their
investment decisions while also saving money on professional advice because many
investment banking tasks can be automated.
Through a brief introduction to the banking industry, we can see that there are
many types of banks in the banking industry. Among the types of banks, my team
chose commercial banks as the topic of this report.

5
 CHAPTER 1: GENERAL INTRODUCTION OF VIETNAM COMMERCIAL
BANK SYSTEM

1.1. Definition of commercial bank

A commercial bank may provide its customers with loans, certificates of
deposit, savings accounts, overdrafts, and other banking goods and services. Financial
institutions earn a profit by lending customer money and collecting interest.
Commercial banks provide loans for companies, autos, residences, people, and even
colleges. 
Deposits made by customers in various accounts are used to fund loans.
Deposits are utilized to finance loan offers. A country's economy must have access to
commercial banks because of their role in developing new forms of money, credit, and
market liquidity. While the majority of these organizations are still located in
metropolitan areas, their digital equivalents are becoming more prevalent.
1.2. How does a commercial bank make money?

Commercial banks provide typical banking services to individuals and small to

medium-sized enterprises on behalf of the general public. Banks make income via fees
for customer service and other levies. Fees that may be incurred include, but are not
limited to, overdraft charges, safe deposit box fees, late payment penalties, and so on.
In addition to interest, other loan-related expenses may be incurred.

Profits are generated by banks via the issuance of loans using the funds
deposited with them. Banks earn more money from client deposits than from the
interest they charge on loans they provide. For example, a bank may give 0.30 percent
yearly interest on savings accounts but 4.80 percent on mortgages.

Typically, commercial banks are headquartered in structures that provide

customers with access to tellers and automated teller machines. Since the introduction
of faster and more dependable internet connections, the majority of banks now
provide their clients the opportunity to complete the vast majority of their banking
operations online. People may now send money transfers, make deposits, and pay bills
online.

1.3. Function
1.3.1. Primary Functions

Accepting Deposits – Commercial banks accept deposits from their customers

in the form of saving, fixed, savings rent deposits. 

Savings Deposits – Savings deposits allow a customer to credit funds towards

their ato for up to a certain limit. These deposits are preferred by individuals with a
fixed income, utilized to create ate savings over time.

6
 Fixed Deposits – Fixed deposits come with a predetermined lock-in period.
Fixed deposits are also referred to as time deposits as the funds are deposited for a
specific time frame.

Current Deposits – Current deposits allow account holders to deposit and

withdraw money whenever necessary. In some cases, current accounts also offer
overdrafts until a pre-specified limit to individuals and businesses.

Providing Loans – One of the main functions of commercial banks is to

provide credit to organizations and individuals, and profit from the earned interest.
Usually, banks retain a small reserve for their expenses while offering the remaining
amount to customers as various types of short and long-term credits.

Credit Creation – A unique function of commercial banks is credit creation.

Instead of offering liquid cash, banks create a line of credit and transfer the loan to a
business or commercial body all at once.

Categories of Secured and Unsecured Loans provided by Commercial Banks

Cash Credit – Commercial Banks and their Functions include extending

advances to individuals and organizations against bonds, inventories, and other types
of securities. This facility, commonly known as cash credit, provides a more
substantial sum when compared to other forms of credit.

Short-Term Credits – Short-term loans are usually pledged without any

security, offering a smaller loan amount and repayment tenor. These are also referred
to as personal loans.

1.3.2. Secondary Functions

Providing locker Facilities – To ensure the security of their customers'

valuables, commercial banks often install lockers within the banking premises. There
is no need to worry about theft or loss when storing belongings in a locker because of
the facility's security measures.

Dealing in Foreign Exchange – Commercial banks facilitate the provision of

foreign exchange to exporters and importers of goods. However, only authorized
foreign exchange-trading banks can engage in such deals. 

Exchange of Securities – The purchase and sale of bonds and other securities is
an additional service provided by commercial banks. Customers find it most
convenient to deal with the financial institution on their own when purchasing or
selling a unit.

Discounting Bills of Exchange – Currently, discounting business invoices is the

principal service provided by commercial banks. By discounting bills, financial firms
may profit. Because bills are considered negotiable documents, they provide a

7
continual flow of cash without the risk connected with payment. In none of these
instances is the financial institution required to participate in a lawsuit. 

Bank as an Agent – Commercial banks serve as agents in the financial industry

by providing a variety of services to their clients, one of which is helping consumers
manage their money.

Common components of such services – Managing an estate on behalf of a

client as their administrator, trustee, or executor. Helping customers with their tax
returns, refunds, and related tasks. Facilitating the transaction of dues, loan payments,
etc. Providing a medium for the transmission of financial data electronically; this
includes the processing of payments (such as checks, drafts, and invoices).

1.4. Types of commercial banks

To explain how commercial banks work, it is helpful to first familiarize oneself

with the many other sorts of financial organizations. In general, three distinct varieties
of commercial banks exist. Here are the items:

·  Government banks

·  Private sector banks

·  Regional rural banks

1.4.1. Public Sector Banks
Banks that are owned by the state, or the public sector, are referred to as
"public sector banks." The government has a significant stake in such groups. The
Reserve Bank of India, the country's central bank, is responsible for establishing
policy for the country's public sector banks.
1.4.2. Private Sector Banks
Banks operating in the private sector are often limited liability firms. The major
part of the share capital of such companies is owned by individuals or private
businesses.
1.4.3. Foreign Banks

Banks that are based outside of the country's borders are said to be foreign
banks. There was a dramatic growth in the number of international banks operating in
India after the country's financial reform in 1991. They are crucial to a country's
economic growth.

There are commercial banks that provide loans and take deposits, and there is
the Central Bank, which is the ultimate authority when it comes to financial
institutions. The commercial banking system is regulated, interest rates are
determined, and the economy's monetary supply is managed by the Central Bank. This
financial institution does not interact with the general public in the same way as

8
commercial banks do when it comes to offering banking services. As a result, the
public will never get assistance from the Central Bank on par with that from private
banks.

1.5. Types of loans offered by commercial banks

1.5.1. Term loan
A term loan is any loan given to a business with a predetermined payback
duration. It is payable monthly or quarterly and has a set interest rate. There are both
secured (where the collateral is provided) and unsecured (where no collateral is
provided) term loans. A secured term loan will often have a cheaper interest rate than
an unsecured loan.
1.5.2. Bank Overdraft facility
A Bank Overdraft Facility refers to the capacity to draw cash more than is
available in the company's current account. Before a facility is sanctioned, the amount
of the facility and the interest rate on overdrafts are normally agreed upon. Since the
overdraft may be paid back with the next deposit, it is considered a short-term source
of financing.
1.5.3. Letter of credit
A letter of credit is an agreement between a buyer and a bank wherein the bank
guarantees payment to the seller under specified conditions. Because of this provision,
as long as the services are provided, payment will be given (usually the dispatch of
goods). Therefore, a Letter of Credit ensures the vendor will be paid as promised.
Financing via a third party is a common practice in international commerce, especially
when the parties involved are unfamiliar with one another.
1.5.4. Bank Guarantee
A bank guarantee is a written promise by a bank to pay a specified quantity of
money to a beneficiary during the guarantee's validity term if the beneficiary presents
the bank with a letter of guarantee issued on behalf of the customer. The
circumstances under which a guarantee may be called upon are often spelled out in a
guarantee letter. A line of credit would have been paid out regardless of whether or
not the other party fulfilled their contractual responsibilities, but in this case, payment
would only be made if the other party breached the terms of the contract. To protect
one party from financial loss in the event of the other party's breach of contract, a
bank guarantee is often employed.
1.5.5. Lease Finance
Lease Financing is a cutting-edge form of financing that allows borrowers to
use and benefit from specific assets for medium- to long-term periods fix payments.
Lessor (financial institution) acquires and takes title to the property. Lessor would
have earned interest on the rentals or installments paid by Lessee, and Lessor would
have recovered a large portion (or all) of the initial cost of the identified asset at the
end of the leasing period. Lessee may purchase the asset at the end of the lease term

9
by making the final rental or installment payment, or by agreeing to a purchase price
with the lessor. As long as the lease is in effect, the lessor (finance company) retains
full ownership of the leased property. In any case, the lessee has the management of
the asset and uses it as necessary.
1.5.6. SME collateral-free loan
This is generally a business loan issued to SMEs and is collateral-free or
without a third-party guarantee. Here the borrower is not obliged to offer collateral to
receive the loan. It is made accessible to SMEs in both the start-up as well as current
stages to fulfill working capital needs, acquisition of machinery, and support growth
ambitions. However, it needs to be mentioned that small enterprises dealing in retail
trade are not eligible for this sort of loan.
Loans are available for the purchase of both new and used construction
equipment, including but not limited to excavators, backhoe loaders, cranes, and high-
end machinery. Loan terms may range from 12 to 60 months in length, depending on
the specifics of the agreement and the borrower's ability to make monthly payments.
In most cases, the machine itself serves as collateral for the loan.
1.5.7. SME credit card
Cash Credit and Term Loan - type Small and Medium-Sized Enterprise Credit
Cards are offered, with credit limits of up to 10 Lakhs.
Small factories, stores, businesses, and shipping companies may all benefit
from this lending program. Cash Credit has a 3-year payback term, whereas Term
Loans have a 5-year term.
1.5.8. Commercial vehicle loans
Commercial vehicle loans can be used to finance the purchase of any
commercial vehicle, including trucks, buses, tippers, and even light commercial
vehicles. Loan terms may range from 12 to 60 months in length, depending on the
specifics of the agreement and the borrower's ability to make monthly payments.
Companies with over 2 years of operating history, the current owner of at least
2 commercial vehicles, captive customers, and transporters are eligible for this loan
facility.
1.6. Regulation by Central bank
In every nation, commercial banks are subject to regulation from a variety of
government bodies.
Commercial banks are subject to oversight and regulation by central banks,
which helps assure compliance with the law on the part of the commercial banking
sector.
A minimum bank reserve is the amount of money that a bank is required to
keep on deposit with the central bank to fulfill the standards set out by the regulatory

10
agencies. This protects financial organizations against things like bank runs and the
inability to meet their obligations.

1.7. SWOT analysis

1.7.1. Strengths
 There has been a growth in the number of domestic banking options available
to consumers. When people have more disposable income, they are more likely
to utilize and benefit from financial services.
 The financial system, and notably major domestic banks, enjoys the trust of its
customers, who feel secure investing and transacting via the system.
 Loans tied to State policy are reducing, and so is the importance of State
commercial banks. The fact that banks can compete fairly is an indication of
the market's vitality.
1.7.2. Weaknesses

 Traditional banking services dominate the domestic financial landscape, which

is boring, of poor quality, and not focused on customers' requirements. There is
a lack of variety in the goods and services available for export.
 Small and medium-sized businesses, as well as the general populace,
particularly those living in rural and outlying locations, have poor service
access.
 Not only is the safety ratio low, but Basel II's implementation into corporate
governance is also incomplete.
1.7.3. Opportunities
 The banking and financial sector is expected to expand in conformity with
common goals. The motivation for institutional change, such as the adaptation
of commercial banking to international standards.
 Develop your retail market and enhance your offerings to increase your non-
interest revenue.
 As a consequence of the Comprehensive and Progressive Agreement for Trans-
Pacific Partnership, opportunities for the banking industry to aid firms in
expanding their operations are on the horizon.
1.7.4. Threat
 Vietnam's banking industry is still relatively small in terms of both managerial
prowess and size when compared to the other CPTPP countries.
 The increasing foreign ownership of commercial banks in Vietnam poses a
threat to the country's indigenous banking sector. Possibility of loss of
ownership and/or incorporation in the event of business failure.
 Competition is rising as new players enter the market, such as multinational
banks and foreign investment firms.

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 CHAPTER 2: THE IMPORTANCE, THE ADVANTAGES, AND
DISADVANTAGES OF COMMERCIAL BANK
2.1. The importance of commercial bank
2.1.1. Role of commercial banks in economic development
2.1.1.1. Capital Creation
A country's economic progress depends on capital production, which is a
crucial part of what banks do. Through its nationwide network of branches, they
mobilize the modest savings of the people who are dispersed across a large area and
make them available for useful uses. 
Banks now offer a lot of enticing incentives for customers to save their money
with them and transfer the funds to the organized money market. If the banks don't
fulfill this role, deposits either go unused or are used.
2.1.1.2. Credits are created
To increase the amount of money available for development projects, banks
create credit. Credit expansion has a positive impact on production, employment,
sales, and prices, which accelerates economic growth.
2.1.1.3. Channelizing the money toward profitable investment
Banks invest the savings they have raised in profitable ventures. Commercial
banks perform a variety of tasks in addition to capital formation. To boost
productivity, shared savings should be distributed among different economic sectors.
Only then can it truly be regarded to have contributed significantly to the growth of
the economy.
2.1.1.4. Promotion of the Right Industries
By offering loans to the proper kinds of people, many banks support the growth
of the right kinds of industries. They contribute in this way to the nation's
industrialization as well as its economic growth. They provide producers with loans
and advances whose goods are in high demand. By adopting new production
techniques, firms improve their output in turn and contribute to a rise in the nation's
GDP. Subprime financing is occasionally copied as well. In the US, there was an
economic crisis in 2007–2008.
2.1.1.5. Monetized debt by banks
Commercial banks convert the loan that must be returned after a specified
amount of time into cash so that it can be used right away for business operations.
Without selling items on a credit basis, manufacturers and wholesalers cannot boost
their sales. However, credit sales could cause capital to be locked up. Thus,
productivity can also be affected negatively. Businesses can conduct their economic
activities without interruption because banks can lend money by discounting bills of
exchange.

12
 2.1.1.6. Finance for the government
In impoverished nations, the government promotes companies by providing the
necessary financing. Banks give the government long-term credit by investing their
money in government assets, and they give it short-term credit by buying Treasury
Bills. In the fiscal year 2018–19, the RBI distributed 68,000 crores to the Indian
government or 99% of its surplus.
2.1.1.7. Creation of Jobs
After the nationalization of large banks, the banking sector experienced
significant growth. The opening of new Bank branches typically creates new
employment possibilities.
2.1.1.8. Banks boost business performance
Recently, banks have taken on the responsibility of encouraging young
entrepreneurs to take on well-formulated ventures and providing counseling services
like technical and management support, especially in emerging nations like India. 
For worthwhile initiatives that are both technically and financially feasible,
banks offer 100% credit. Therefore, commercial banks support the growth of
entrepreneurship in the nation.
2.2. The advantages and disadvantages of commercial bank
2.2.1. The advantages of commercial bank
Commercial banks have the following advantages:
 Information Confidentiality: When lending money or accepting deposits,
banks do not share the information with anyone. Banks respect their
customers' privacy by keeping their personal information confidential.
Customers' or account holders' personal information is kept secure by banks.
 Economical: Commercial banks are widely regarded as the least expensive
source of funding. It is a cost-effective source because it does not require the
issuance of a prospectus, underwriting fees, or any other fees. Banking
services provided by commercial banks are free of any hidden fees.
 Versatile: Commercial banks are regarded as a versatile source of funding
because borrowers can easily borrow money from them whenever they require
money or funds. Borrowers can easily increase or decrease the number of
borrowings based on their convenience and needs. Banks make funds available
to borrowers as and when they are required. Borrowers can also repay the
money if they do not feel the need.
 Less Formalities: Borrowers can easily raise funds from commercial banks
because there are no stringent formalities to follow up on. As a result, there is
no paperwork involved in the entire borrowing process. It does not necessitate
any formalities such as seeking an underwriter or issuing a prospectus. As a
result, it simplifies and streamlines the process.

13
  Encourage saving: Commercial banks encourage saving among the general
public through their operations. Banks, through this service, provide a safer
way for individuals to collect money that they might otherwise consume
impulsively. The amount of savings is subject to a fixed interest rate.
Individual savings, whether small or large, increase capital accumulation with
banks, which can then be used to invest or lend to the general public.
 Facilitates digital transactions: As digitization has grown, commercial banks
have emerged as important financial institutions by providing a
technologically advanced platform for making digital payments. Apart from
basic services, it facilitates online transfers, the use of cheques, ATMs, bank
drafts, and so on. The availability of online wallets is a relatively new feature
of commercial banks. Individuals and businessmen used to have to handle
large sums of money that were vulnerable to theft, but now they can keep their
money safe in their wallets and use it to make digital payments.
2.2.2. The disadvantages of commercial bank
Commercial banks have the following drawbacks:
 Procedural Difficulty: When lending funds to borrowers, commercial banks
must ensure that the advances are made to the correct entity. The only way to
be sure is to conduct a thorough investigation into the firm's history and
financial affairs. It adheres to strict rules, making the borrowing process
difficult and rigorous.
 Difficulty in Renewal: Commercial bank loans are typically only available for a
short period. It is nearly impossible to renew or extend the borrowings.
Furthermore, extending the term of borrowed funds can be difficult, and only
new loans can be obtained.
 Security is required: Commercial bank loans cannot be made without security.
There is a requirement for any asset or personal guarantees from the borrowers
against which borrowings can be issued for any amount of loan or advances.
Most of the time, the loan amount is less than the value of the security. As a
result, it has become detrimental to the general public and businesses.
 Strict terms and conditions: Before lending loans or funds, commercial banks
may impose a few difficult conditions on borrowers. Terms and conditions can
be so difficult to meet that the entire borrowing process is hampered. As a
result, firms' borrowing decisions are restricted to the point where they
withdraw from this source of funds and shift to another source of funds with
more favorable terms and conditions.
 Bankruptcy: Banks may be unable to provide the amount requested by
borrowers even if the money belongs to the customers and has only been
deposited in their savings account. This occurs when bank management fails to
take proper care of depositors' or investors' finances and instead mismanages

14
 them. However, it may also occur as a result of poor economic health, such as
during a recession, when customers withdraw more than they borrow.
 Online fraud risk: Growing digitization has not only simplified operations but
also given rise to online fraud. Cyber attacks have become more common and
frequent in recent years; ATM cards are more vulnerable to theft, and hackers
hack digital payment accounts and passwords and steal money online. There is
an urgent need to improve the internet banking game.
To summarize, commercial banks are a critical component of the entire banking
system. In addition, commercial banks' economic outlook is gradually improving over
time. Commercial banks in less developed countries provide a well-organized
financial market by providing financial assistance and meeting the financial needs of
individuals, firms, and businesses.

15
 CHAPTER 3: TOP 5 OF THE BEST COMMERCIAL BANKS AND
ANALYSIS OF THE BEST COMMERCIAL BANK IN VIETNAM 2022

3.1. Top 5 commercial Banks in Vietnam 2022

Figure 1. Top 10 prestigious Vietnamese commercial banks in 2022

The best Vietnamese commercial banks in 2022 were officially revealed
on June 29, 2022, by Vietnam Report Joint Stock Company (Vietnam Report).
This is an annual activity researched and published by Vietnam Report since
2012. And in early August, Forbes announced the list of the Top 50 best-listed
companies in Vietnam in 2022, in which the banking industry has 7
representatives: Vietcombank, Vietinbank, BIDV, VIB, ACB, MB, and
TPBank. Accordingly, the Top 5 Vietnamese commercial banks in 2022
include the Joint Stock Commercial Bank for Foreign Trade of Vietnam
(Vietcombank); Vietnam Joint Stock Commercial Bank for Industry and Trade
(VietinBank); Vietnam Technological and Commercial Joint Stock Bank
(Techcombank); Military Commercial Joint Stock Bank (MB); Vietnam
Prosperity Joint Stock Commercial Bank (VPBank).
3.2. Analysis of Vietcombank commercial bank, Vietcombank South Sai Gon
branch
Vietcombank's full name is the Joint Stock Commercial Bank for
Foreign Trade of Vietnam, which came into operation in 1963. The predecessor

16
 of the organization was the Foreign Exchange Department, under the State
Bank of Vietnam. This is also the first unit selected by the Government to pilot
the equitization model. Therefore, in 2008, Vietcombank changed to a joint
stock commercial bank. In 2009, shares with stock code VCB were officially
listed on the Ho Chi Minh City Stock Exchange.
Up until this point, Vietcombank has evolved into a bank with many
different functions. Customers can access all financial services, including
project financing, credit, and capital raising, here. The Autobank system, which
has more than 2,500 ATMs and more than 60,000 card payment merchants
nationally, was also used to promote the e-banking service segment.
The company also consistently receives votes for "Best Bank in
Vietnam" and is listed in The Banker Magazine's list of the Top 500 World's
Leading Banks. In addition, Vietcombank is the only company from Vietnam
to appear in Forbes' list of the Top 1,000 largest publicly traded firms in the
world.
The Vietcombank South Sai Gon branch was founded on January 10,
1993. After 29 years of development, Vietcombank South Sai Gon has so far
proved to be much more durable despite encountering challenges and issues as
well as significant changes. Located in Tan Hung ward, district 7, Ho Chi Minh
City, at the dawn City building, 23 Nguyen Huu Tho street.
The second-largest branch in the Ho Chi Minh City region and one of
the top branches in the Vietcombank system is Vietcombank South Sai Gon.
This branch has more than 250 staff and 18 departments as of right now,
expanding to an increasingly larger extent (including 6 transaction offices). The
branch's business performance has consistently ranked among the top 10 in the
Vietcombank system, and it has earned praise for its many professional
accomplishments as well as participation in social activities, befitting its
position as the area's leading branch
 Transaction name: Joint Stock Commercial Bank for Foreign Trade of Vietnam
– Saigon South branch
 Branch address: Him Lam new urban area, Sunrise City building No. 23
Nguyen Huu Tho-Tan Hung ward-district 7-Ho Chi Minh City.
 Tax code: 01002437.003
 Director: Nguyen Nhu Tuong
 Phone number: 028 3770 1634
 Fax Number: 028 3770 1635
Vietcombank South Saigon branch currently has 6 transaction offices and 1
branch office:
 Branch office

17
  Tan Thuan Transaction Office
 Tan My Transaction Office
 My Toan Transaction Office
 Phu My Hung Transaction Office
 Transaction Office District 4
 Trung Son Transaction Office
3.2.1. Organization Structure
Time stamps:
 3:48 - 4:39, 
 6:00 - 6:30, 
 7:25 - 8:33, 
 9:32 - 10:26
The organizational chart of Vietcombank is as follows:

Figure 2. Organizational chart of Vietcombank

The Management structure provided by Vietcombank contains three levels

of leadership and management, along with various departments and
professional blocks:

18
 Figure 3. Management Structure

The organizational chart of Vietcombank South Sai Gon branch is as

follows:

19
 Figure 4. The organizational chart of Vietcombank South Sai Gon branch

The organizational structure is divided into several departments,

divisions, and blocks to strictly control the process and regulations of currency
trading:
 Branch Managers and Deputy Directors are the leaders that oversee and direct
the development of the bank branch
 Business department: finding customers, developing markets, and providing
financial operations services.
 Service department: provides management of banking services. Consulting or
providing services, answering customers' questions, and handling complaints
related to the service.
 Risk department: identification, measurement, and analysis is an assessment of
risks related to financial activities. From there, take professional measures to
overcome and limit risks as much as possible.
 Support department: serving and supporting other departments with paperwork,
healthcare, technology as well as people management.
 Credit Council and internal inspection: assess the business situation, prepare
reports and check, review the steps taken properly and in accordabyations with
the foreign trade bank as well as the provisions of the law and state bank.
Organizational features:
 Functional online organizational structure.
 Leveraging the capabilities of departmental managers.

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  Clear accountability.
 Create unity and centralization.
 Make good use of human resources.
Each functional line has its organizational structure inside Vietcombank.
Businesses may make the most of the competencies of directors and
departments thanks to this decentralization. Each department has distinct duties
that come together to create a highly centralized whole. Human resources
always follow the proper procedures and successfully perform the tasks given
to them. On the other hand, it is simple to connect with them and coordinate
many different vocations. To reduce instances of financial infractions,
mistakes, or fraud, Vietcombank has increased the size of its internal
supervisory committees and councils. This guarantees a fair and transparent
working atmosphere and affirms professionalism, both of which make
customers feel comfortable utilizing the service. 
In July and December 2021, To improve service quality and prepare for the
4.0 revolution, Vietcombank created two new divisions: the operations division
and the information technology/ digital transformation division, the bank also
hired two new staff members for its main office at the same time. The goal was
to improve service quality across the board; free up resources at the
headquarters and branches to concentrate on sales; actively and actively seek
out, suggest, and recommend to the board of directors strategies to foster and
build high-quality human resources to adapt to digital transformation, first and
foremost for the operations division. This is an important decision carefully
considered, referring to international practices, experiences of previous banks,
and consulting reputable and experienced international organizations to choose
an optimal and suitable model for the characteristics of Vietcombank. The
establishment of the operation department and the information
technology/digital transformation block is necessary and inevitable to
contribute to improving service quality and customer experience, improving
internal service quality and operational efficiency. These actions show that
Vietcombank has been gradually realizing its strategic goal of becoming one of
the 100 largest banks in Asia and the 300 largest financial banking groups in
the world.
3.2.2. Capital analysis
Capital sources of Vietcombank Nam Sai Gon are diverse, including:
 Equity
 Mobilized capital
 Borrowed capital from organizations
 Borrowed capital from the State Bank
 Other sources of capital

21
 Which, mobilized capital accounts for a large proportion of 70%-80%
and is the most important part of the bank's capital structure.
 
Mobilized capital is a monetary asset of organizations and individuals
that the bank only has the right to use but has no ownership right and is
responsible for repaying both principal and interest when it is due or when
customers have capital withdrawal demand. Mobilized capital is also known as
the Bank's liabilities and it exists in many forms, in other words, banks
mobilize capital from many different sources, the most common are the
following sources:
 Demand deposit (checkable deposit).
 Term deposit.
 Savings deposit.
 Savings deposit without term.
 Term Savings deposit.
 Capital raised through the issuance of valuable papers 
A significant amount of the bank's overall capital is made up of mobilized
capital. This capital is primarily what powers the bank. This cash source
dictates how big the bank's activities and credit are. Because clients can
withdraw money at any time, this source of funding is unstable, so the bank
must have all payment reserves to be prepared to handle any withdrawal
requests to maintain secure operations. preventing an unexpected drop in the
bank's capital. This is a very competitive source of capital, and Vietcombank
has continually raised the attractive interest rate range to entice customers. As a
result, this source of capital has a relatively high cost of use. Mobilized capital
determines the bank's solvency and guarantees its reputation in the market and
economy. Commercial banks are only permitted to use this capital in credit and
guarantee activities; they are not permitted to use it for investment because of
the characteristics above.
3.2.3. Credit operations
Credit operations in bank credit are very diverse and rich. Here are some of
the main types of credit.
 Advance credit
 Line of credit
 Overdraft
 Discount
 Factoring
 Leasing
 Bank Guarantee

22
 Recently, Vietcombank has been approved by the State Bank to increase its
credit balance by 2.7% up to December 31, 2022, to support economic
recovery and development in the final months of 2022. Thus, throughout the
year, Vietcombank has increased its credit at a rate of 17.7% compared to the
ending balance as of December 31, 2021. After being allowed by the State
Bank to increase the maximum credit balance, Vietcombank will continue to
control credit growth in essential sectors and industries of the economy,
priority areas of the Government, and control good liquidity, good control of
credit risk, ensuring that the bad debt ratio is controlled at a low level,
maintaining the level of deposit interest rates, lending interest rates, ensuring at
a reasonable level, support for the process of economic recovery and
development as well as the recovery and development of businesses.
Vietcombank South Saigon Signed the “Midtown The Peak project” Credit
and Guarantee Agreement:
 On the morning of March 27, 2019, at the headquarters of Saigon South
Branch, the signing ceremony of the Credit and Guarantee contract for the
Midtown - The Peak (M8) project took place between Vietcombank South
Saigon and Phu Hung Thai Joint Stock Company. – is a joint venture of Phu
My Hung Development Company Limited and DNS Asia Development PTE
Ltd.
 Speaking at the ceremony, Mr. Nguyen Nhu Tuong - Director of Vietcombank
South Saigon - emphasized the good cooperation during the past 18 years
between Vietcombank South Saigon and Phu My Hung Development Co., Ltd.
Vietcombank South Saigon has accompanied and sponsored many projects of
Phu My Hung such as Crescent Mall, Crescent Residence, Chateau, Scenic
Valley, Green Valley ... contributing to the creation of a modern and
prestigious urban area. Currently, in Vietnam, one of the most livable urban
areas in Ho Chi Minh City is Phu My Hung Urban Area.
3.2.4. Business report
The finance report of Vietcombank on 31st December,2021

Target 2021 (million 2020 (million

VND) VND)

Net interest income  42.399.617  36.285.475

Net profit from service activities  7.407.073 6.607.317

Net profit from foreign exchange business 4.374.820  3.906.399

23
 Target 2021 (million 2020 (million
VND) VND)

Net profit from trading securities 104.114 1.810

Net loss from trading investment (85.126) (98)

securities

Net profit from other activities 2.393.261 1.800.253

Income from capital contribution, share 129.810 461.385

purchase

Operation cost (17.574.188) (16.038.250)

Net profit from operating activities 39.149.381 33.024.291

before the cost of provision for credit risk
customers

Provision expense for credit risk (11.760.801) (9.974.730)

Total profit before tax 27.388.580 23.049.561

Cost of corporate income tax (5.449.535) (4.577.043)

Total profit after tax 21.939.045 18.472.518

Non-controlling shareholder interests (20.232) (21.207)

Net profit of the Bank's shareholders 21.918.813 18.451.311

Basic earnings per share (VND/share) 4.195 3.387

(adjustment)

24
25
 CONCLUSION

From the work presented above, we have better overview what is commercial
bank.; commercial bank’s function, it advantages and disadvantages of commercial
bank and more basic information about commercial banks. Also, we go into more
detail about commercial banks and take the Vietcombank as an example of a
commercial bank to analyze. Our knowledge and skills have increased during
searching the commercial bank information to do Final Report of Money and Capital
Market course. In addition, the group work is evidence of our teamwork and also a
skill that we need to gradually improve.
To manage something is not easy and with a project, it is way more difficulties.
There are some common points that each project can relate such as: not be able to
manage the members and may have conflicts in between and there will be risks
happen anytime and anywhere. From that, we recognize the importance of planning
carefully for any projects that can be carried out in the future or right away. We found
out that each project has a different goal and that goal is not always the same as the
initial purpose.
During the process of practicing, we have improved ourselves with knowledge
and skills of Money and Capital Market course. Once again, we would to thank
Ms.Do Thi Thanh Nhan, the lecturer of our course and the knowledge we gained for
our major International Business in general. Although we have tried our best, there
will be some mistakes from our group and we are looking forward to the comments
and evaluation from professional instructors so that we can have a better basement
for future career.

26
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Conclusions-LH.pdf

28
 APPENDIX
Figure 1. Top 10 prestigious Vietnamese commercial banks in 2022.........................16
Figure 2. Organizational chart of Vietcombank..........................................................18
Figure 3. Management Structure.................................................................................19
Figure 4. The organizational chart of Vietcombank South Sai Gon branch................20

29