INTRODUCTION

From a bank 3 "no"s: absence of a capable and committed management apparatus, a risk
management system, a system for tracking background processes, and a customer
database, with losses that have added up to billions of dong, TP Bank has emerged as the
preeminent bank of the digital era and was a pioneer in the creation of Basel III. The
Vietnamese people's financial security is guaranteed by TP Bank in addition to serving
their basic banking needs. The analysis and comments in the next piece will be the most
thorough.
 PESTEL

Businesses employ a PESTLE study, also known as a PEST or PESTEL analysis, to

evaluate macroeconomic issues that have an influence on their operations. ( Indeed,
2022). PESTLE is an acronym for the six essential market analysis factors: politics,
economy, society, technology, law, and the environment.. When pondering a particular
concept or strategy, it provides a bird's-eye view of the entire surroundings from all the
numerous aspects that one wants to check out and keep track of ( PESTEL ANALYSIS,
no date ). A business has the potential to acquire an advantage over rivals and boost sales
if it correctly monitors the PESTLE elements.

( Martin Heubel, 2022)

In the case of TP Bank, the leading digital bank in Vietnam, external conditions including
Politics, Economy, Technology, and Social have a substantial influence on the bank's
strategic decisions, operational environment, and overall business environment.
 1.1 Political/Legal
a. Government stability

More stable governments will improve banking systems’ financial stability by increasing
the predictability of future public decisions . (Nicolae Stef , Sophia Dimelis; 2023). In
other words, a secure and sustainable development environment for the bank will be
provided by preserving consistency and stability among the government's economic,
legal, and social policies. Additionally, Vietnam has been praised for maintaining its
political and economic stability. This is because to the fact that Vietnam is only loyal to
one group and the political forces are not at odds. It may be claimed that Vietnam has
political stability, which offers a strong foundation for banks to prosper.

Tien Phong Commercial Joint Stock Bank is a private bank organized in the form of a
joint stock company. However, due to the fact that it was founded and continues to be
active on Vietnamese soil, TP Bank is still governed by the State Bank of Vietnam,
which is also responsible for strict regulations on lending practices and interest rates.
Interest rates will adhere to governmental financial system laws (TP Bank Charter, 2018).
The potential to directly handle market issues like business fraud, tax evasion, and
corruption is given to the government. However, because certain rules governing state-
owned businesses are ineffective, they also provide challenges for the business in terms
of administration and operation.

b. Corruption

According to The Corruption Perceptions Index (CPI) report 2022, published by

Transparency International (TI): Vietnam is one of six nations in the Asia-Pacific region
with remarkable improvement, with 42 points, a rise of 9 points since 2018 (with 0 being
the most corrupt and 100 being the cleanest) (Thanh Tra, 2023). This demonstrates that
Vietnam has made significant efforts and dedication throughout the years to combat
corruption. However, based on the rating, Vietnam is below average, indicating that the
country's degree of corruption remains high. The greater the country's corruption, the
lower the inflows of foreign direct investment (Vo Dut, Nga; 2015). In other words,
corruption will have an impact on bank investment activity. For TP Bank, SBI has
26,940,000 TP Bank shares, accounting for 4.61% of the bank's share capital; in addition,
28.4 million shares are tied to SoftBank, a Japanese stakeholder (Dan tri, 2018 and Vn
Express, 2023).The inclusion of powerful and experienced foreign owners will lay the
groundwork for TPBank to strengthen its financial ability, extend its commercial
activities, and significantly enhance corruption. This is a strong indication that the
bank will continue to promote an ethical and transparent atmosphere, as well as effective
anti-corruption and anti-corruption processes.

c. Basel III

Basel III is a comprehensive set of reform proposals designed to improve risk

management, supervision, and regulation in the banking sector. The Basel III Accord is
built on the Basel I and Basel II protocols, which aim to increase the ability of the
banking industry to handle stress in the financial and economic environment, improve
risk management, and increase transparency bank's white paper. ( Tạp chí ngân hàng,
2023) Basel III, in particular, sets forth new regulatory capital standards that enable big
banks to survive cyclical changes in their balance sheets. Basel III also contains
regulations on leverage and liquidity in order to discourage overborrowing and ensure
banks have adequate liquidity during times of financial crisis. Although TPBank has
several advantages in becoming Basel III, some restrictions are unavoidable.

The drawback is that banks must set aside more capital as they accept a greater buffer to
lower operational risk as the requirement rises. Profitability will be impacted when more
money is held back for provisioning. According to TP Bank's General Director Nguyen
Hung, the bank has sacrificed earnings for sustainability. According to TP Bank
(2021), "Basel III implementation will undoubtedly require the bank to maintain more
capital reserves and also continuously increase capital to ensure scalability."
The benefit is that Basel III not only aids TP Bank in establishing a reputable brand
name with clients, but also strengthens the resilience of lending institutions to shocks to
the economy. “For other banks to observe and learn from, TP Bank will also be regarded
as a pioneer in adopting Basel III” (Pham Do Nhat Vinh-Vice-General Director of
KPMG Vietnam)
 1.2 Economy
a. GDP

In terms of GDP, Vietnam ranks fifth in Southeast Asia. According to the General
Statistics Office, Vietnam's GDP in 2022 reached $409 billion USD. According to the
IMF, this sum is significantly higher, at $413.81 billion. (Cafef.vn, 2023).

(Source: cafef.vn, 2023)

However, according to the International Monetary Fund's (IMF) most recent world
economic outlook report, Vietnam's GDP growth in 2023 would increasing significantly,
at 5.8%, placing second in the region behind Cambodia and only behind the Philippines
(Cafef.vn, 2023). With the growing economy, people's demand for saving money in
banks is increasing day by day. Customer deposits at TP Bank, particularly among
individual clients, increased considerably (12%) (Cafef.vn, 2022). Additionally, TP
Bank's deposit growth rate has risen by 40% in 2022–2023 (TP Bank, 2023). It can be
argued that TPBank has benefited from increased efficiency and trust development
thanks to the strong GDP and increasing demand for deposits from the general public.

b. Inflation

Vietnam has been significantly impacted by the need to raise interest rates in major
nations as a result of the global economy's slide into a situation of stagnant inflation.
Vietnam's inflation is still under control in 2021, despite being impacted by the Russia-
Ukraine conflict and supply chain delays caused by the Covid-19 epidemic. The inflation
rate climbed somewhat in 2022 to 3.21%, although it still fell below the average of 4–6%
(DSE, 2023). This will be a factor that benefits the bank in the context of strictly
managed inflation.

The cost of capital for the bank will be favorable first. Reduced market interest rates
and a reduced cost of capital will result indirectly from controlled inflation. (According to
Nguyễn Hưng-TPBank's General Director) From there, the bank can save the most
money on both capital and operating expenses, which would lower capital expenditures
for the bank, boost profits, and enhance its financial performance.

Second, there is additional room for TP Bank to increase client confidence and trust.
Low, well-controlled inflation is one of the underlying assumptions that TP Bank uses to
change lending interest rates for businesses and individuals in a suitable manner to fulfill
client demands. The following are some well-known interest rate changes that are well-
liked by customers: TPBank offers the highest interest rate of up to 8.05%/year when
money is deployed for a 12-month period, and the highest interest rate of 7.2%/year when
money is saved for three lengthy terms of 18 months, 36 months, and 364 days (Vietnam
Biz, 2023).

The basis for the bank's sustainable development has been laid in part by this.
 1.3 Technology:

The banking business has been significantly impacted by the fourth industrial revolution,
according to Mr. Pham Tien Dung, Director of the Payment Department (SBV). These
result may be seen in a variety of areas, including corporate structure, the delivery of
products and services, the safety feature, and bank privacy.

TP Bank has implemented several cutting-edge technological items in such a setting.

First, TPBank has added an extra layer of protection (3D Secure) to all foreign credit and
debit cards in order to boost safety. The bank also developed the most cutting-edge
payment transaction security method available today by successfully integrating
contactless (contactless) technology with 100% of the world's EMV chip card
technology. It is hard to ignore the use of Al & Big Data technology for credit rating and
line of credit issuance to consumers entirely online and automatically (TP Bank, no date).
Since that time, TP Bank has grown to have a sizable customer base. By 2022, the bank
had 3.7 million more individual clients, increasing the total number of consumers with
payment accounts to 8.5 million. In addition, there were 1.2 million newly established
credit card accounts, which is a 2.5-fold increase over the total number of cards issued in
2021. In just one year of business, TPBank has amassed more than 1.1 million clients that
routinely utilize and favor TPBank DICO digital financial services. From this, it can be
inferred that technology had a significant impact on the growth of TP Bank.

Technology, however, is not necessarily a good thing. TP Bank's technological services

have been abused by several people to trick customers: The item urged the user to
click on a suspicious link to carry out actions like changing passwords or transferring
money after which it purposefully sent money to the incorrect client or pretended to be an
SMS Brandname of the banks. The utilization of odd connections will cause the subject
to steal private information and engage in illicit profiting. ( TP Bank, 2022)
 1.4 Social:
a. Confucius

Confucianism is not an economic philosophy and has no bearing on the efforts being
made to create a socialist economy through economic laws. However, it decides the issue
of economic construction with perspectives on how to live, by thinking, calculating, by
motivating, and by psychology (Tran Dinh Huu, 2009). With Confucius' ideas at its core,
TP Bank has adopted the idea of credibility in its relationship-building with clients in
the age of openness and global integration. Integrity, Creativity, Progression, Synergy,
and Persistence are the company's five key principles, which all employees are infused
with and constantly use as a guide while managing work with partners and coworkers.
Additionally, TP Bank promotes the need of trust in order to live up to the claim that
"Because we understand you,". As a result, TP Bank has been selected by VNR as one of
50 prestigious and successful public firms, ranked fourth in the list of distinguished
private banks in Vietnam in 2022. (Vn Express, 2022).

b. Population growth rate

The population of Vietnam is quickly expanding on an annual basis. In 2020, the total
population of Vietnam is nearly 98 million people, placing it 15th out of 195 nations (and
dependent territories) in terms of population. (Worldometer, no date) . Demand for
financial services such as savings accounts, loans, mortgages, and investment goods will
rise as more individuals and businesses require them. The TP Bank will have the chance
to take advantage of this and satisfy the growing client demand for banking services.
Population expansion also means a rise in the number of individuals who may deposit
money in banks; TP Bank will be able to attract a large number of deposits, adding to
a steady capital source for lending activities. On the other hand, rapid population
expansion can lead to strong rivalry among banks (TPBank's competitors include
American Express, HSBC, Citibank, SCB, SeABank, SHB, HDBank, VIB, OCB,…
those banks are also well-known in Vietnam). Furthermore, in order to reduce the risk of
bad debt, TP Bank must carefully analyze the repayment ability and solvency of
borrowers in the rising population. In conclusion, the pace of population expansion
impacts banks in a variety of ways. To successfully service their clients and manage the
changing financial market, TP Bank must understand and react to the dynamics of
population growth.

c. Geert Hofstede

- Power distance:
As is evident, Vietnam has a significant power gap, and individualism has the lowest
position. A power gap of 70 indicates that people are compliantly subservient to the
authority and accept a hierarchical structure (Working with Vietnamese; no date). Japan,
in contrast, has a lower PD score of 54 points, indicating that it doesn't place a lot of
stress on social class, power, or wealth and can only say a limited amount to managers.
whether they are standing low or high. Because the employer constantly guarantees that
every employee carefully complies with corporate standards, the firm may be efficiently
regulated in conjunction with TP Bank's management. Employee innovation is still
being constrained by negative repercussions.

- Uncertainty avoidance
With a ranking of 92, one of the most unstable nations, Japan will never cease worrying
about unanticipated uncertainties in their daily lives. They are unable to analyze recent
innovations, but they can create and test them since they don't mind taking chances.
Vietnam must therefore get ready for dangers. Vietnamese managers as a result take risks
extremely rapidly and feel very at ease making choices right away. But since 2015, TP
Bank has implemented stringent liquidity risk management guidelines and increased
client confidence. This has aided TP Bank's development and several of its successes,
forecasted to expand more rapidly.

- Individualism
Vietnam barely has a 20 percent individualism rate, compared to the United States' high
level. Vietnam, without a doubt, has a collectivist social structure. This is demonstrated
by a dedication over a prolonged period of time to the "member" group, whether it be a
family, an extended family, or extended connections. (Working with Vietnamese; no
date). Given the tendency towards the Vietnamese community, TP Bank's objective is to
be a highly socially responsible corporation that actively participates in local activities
with the aim of assisting people and promoting national development (TP Bank, no date).
Collectiveism also has advantages such as fewer disagreements and more staff
dedication.
 SWOT

Strength Weakness
- Large size with an excellent - Customers and stockholders are out
reputation: 75 branches and of balance: Customers want good
transaction offices around the quality and competitive interest
nation ( included rural areas) , rates, while shareholders want
named "The strongest bank" by profit.
The Asian Banker, "Top 10 - Climbed bad debt: Bad debt
prestigious banks in Vietnam" by reached by 84% from the beginning
Vietnam Report,.. of 2023 to 2,496 billion VND
- Large charter capital: Expected to ( Thanh tra, 2023).
rise from VND 15,817 billion in - Regulators urge banks to comply,
2022 to VND 22,016 billion in while employees seek equal
2023. (TP Bank, no date) treatment and progress.
- High-quality human resources:
Each employee must demonstrate
integrity, creativity, synergy, and
perseverance in the workplace.
- Products and services that are
highly competitive and diverse,
with contemporary and
complicated technological and
information systems.
- Policy that is adaptable to any
situation and is close to clients
(individuals and enterprises).
 Opportunity
- Gaining access to and increasing
the number of clients nationwide
- The capital market in Vietnam has
enormous demands. Maintaining
and fulfilling Basel III's capital
requirements at the same time
- Strong demand for credit and debit
cards. Vietnamese people are
becoming more used to utilizing
banking services.
- Vietnam is moving toward
economic globalization.
Threat
- Decide if shareholders or customers
will win a trade-off for more
money.
- The growth strategy of foreign
banks in Vietnam
- Risk associated with using a credit
card
- Vietnam's stock market and real
estate sector appear to be
recovering
 1. S-O:

Since TP Bank pioneered the digital age, it now needs to make greater investments in
innovation to keep up with the banking industries in Singapore and Japan. In order to
address the expanding investment demands of the Vietnamese people and to open up the
market to additional regions, TP Bank should next broaden its production services and
areas of operation. Additionally, with a big and youthful staff resource, TP Bank has to
increase training opportunities and continually assess quality. Finally, in order to draw in
new clients and foreign investment through varied and fiercely competitive operations,
TP Bank must extend its product distribution channel through branches equipped with
cutting-edge technology.

2. S-T:

In order to draw in more individual consumers and small and medium-sized businesses,
TP Bank must expand its branch network in response to signals of recovery in the
Vietnamese stock market and real estate. Next, TP Bank should broaden its programs to
help staff members learn technology and human resource management from local and
foreign banks as it has plenty of money and top-notch human resources. TP Bank must
announce robust fraud detection and prevention procedures, inform clients about
responsible credit card use, and proactively monitor transaction data in order to reduce
the risks associated with using credit cards. Finally, to meet these stakeholder
expectations, TP Bank may make technological investments to enhance the client
experience, long-term plans to advance responsible banking, and effective corporate
governance frameworks to increase transparency and accountability.

3. W-O

TPBank must effectively utilize available chances in order to overcome fundamental

shortcomings. Banks must promote the availability of financial services and qualified
guidance across the nation in order to assist customers—particularly those who live in
rural places where they are more likely to fall victim to fraud—in managing their
personal finances and reducing the danger of bad debt. Additionally, TP Bank need to
assist and promote foreign trade in the context of globalization by fostering the delivery
of international financial services. The bank will thereafter be able to entice large
corporations and overseas investors to purchase shares. Customers and shareholders will
be treated more fairly as a result.

4. W-T

Faced with the trend of international banks expanding into new markets and fierce
competition from domestic banks, TP Bank needs to fortify connections, gain knowledge
from, and deepen ties with adversarial institutions. Additionally, TP Bank must have a
clear investment strategy and constantly prepare for the worst circumstances in order to
prevent the development of bad debts and win the trust of its clients.
 CONCLUSION

The analysis of the key variables that significantly affect TP Bank has demonstrated that
macroenvironmental and PESTLE elements will continue to form the basis of any
opportunities or challenges the bank encounters in the future. A critical method for
identifying possibilities or challenges is SWOT analysis. TP Bank must make use of its
advantages and implement incentives to counteract its weaKỏknesses in order to make up
for this chance. In the end, both tools show how TP Bank differs from its competitors.
APPENDIX
 REFERENCES
1. (2022) What is a pestle analysis? factors, examples and uses. Available at:
https://www.indeed.com/career-advice/career-development/what-is-the-pestle-
analysis
2. What is pestle analysis? an important business analysis tool (2023) PESTLE
Analysis. Available at: https://pestleanalysis.com/what-is-pestle-analysis/
3. Dimelis, S. and Stef, N. (2023). Finance 2023/3 .French financial association
4. TP Bank (2018) Điều lệ Ngân hàng thương mại cổ phần.

5. Chỉ số cảm nhận tham nhũng 2022: Việt Nam tiếp tục tăng điểm, thuộc nhóm
nước có tiến bộ nổi bật (2023) https://thanhtra.com.vn. Available at:
https://thanhtra.com.vn/quoc-te/chi-so-cam-nhan-tham-nhung-2022-viet-nam-tiep-
tuc-tang-diem-thuoc-nhom-nuoc-co-tien-bo-noi-bat-206757.html (Accessed: 01
June 2023).
6. Võ Văn Dứt, Nguyễn Thị Phương Nga (2015). ẢNH HƯỞNG CỦA THAM
NHŨNG ĐẾN DÒNG VỐN ĐẦU TƯ TRỰC TIẾP NƯỚC NGOÀI VÀO CÁC
QUỐC GIA CHÂU Á. Tạp chí khoa học trường Đại học Mở TP.HCM – số 10(3)
2015

7. Dantri.com.vn (2018) Lộ diện nhóm Nhà đầu tư ‘Khủng’ mua hơn 17 triệu cổ
phiếu TPBank, Báo điện tử Dân Trí. Available at: https://dantri.com.vn/kinh-
doanh/lo-dien-nhom-nha-dau-tu-khung-mua-hon-17-trieu-co-phieu-tpbank-
20180607183440248.htm
8. VnExpress (2021) Nhóm cổ đông Softbank mua xong 24 Triệu cổ phiếu TPBank,
vnexpress.net. Available at: https://vnexpress.net/nhom-co-dong-softbank-mua-
xong-24-trieu-co-phieu-tpbank-4383344.html
9. Basel III: Quá Trình Thực Hiện Tại Việt Nam và Một số Khuyến Nghị (2023)
Trang chủ. Available at: https://tapchinganhang.gov.vn/basel-iii-qua-trinh-thuc-
hien-tai-viet-nam-va-mot-so-khuyen-nghi.htm
10. (2021a) Basel III – Bước nhảy vọt Tiên Phong Của tpbank. Available at:
https://tpb.vn/tin-tuc/tin-tpbank/basel-iii-buoc-nhay-vot-tien-phong-cua-tpbank
11. Thu Quỳnh. (2023) GDP Việt Nam đứng thứ bao nhiêu thế giới năm 2022?, Kênh
thông tin kinh tế - tài chính Việt Nam. Available at: https://cafef.vn/gdp-viet-nam-
dung-thu-bao-nhieu-the-gioi-nam-2022-20230320092746924.chn
12. Minh Tiến. (2023) Các tổ chức quốc tế dự báo GDP Việt Nam 2023 đạt bao nhiêu
tỷ USD?, Kênh thông tin kinh tế - tài chính Việt Nam. Available at:
 https://cafef.vn/cac-to-chuc-quoc-te-du-bao-gdp-viet-nam-2023-dat-bao-nhieu-ty-
usd-188230417101336063.chn
13. Thu Thủy. (2022) Người dân ngày càng gửi nhiều tiền vào Ngân Hàng, Kênh
thông tin kinh tế - tài chính Việt Nam. Available at: https://cafef.vn/nguoi-dan-
ngay-cang-gui-nhieu-tien-vao-ngan-hang-20220724002713874.chn
14. (2023) Cập nhật lãi suất ngân hàng TP Bank mới nhất tháng 5/2023. Available at:
https://vietnambiz.vn/cap-nhat-lai-suat-ngan-hang-tpbank-moi-nhat-thang-52023-
2023591204960.htm
15. TPBank Tiên Phong trong ứng dụng công Nghệ Số Cho Sản Phẩm thẻ (2023)
Ngân Hàng TMCP Tiên Phong. Available at: https://jobs.tpb.vn/tin-tuc/tpbank-
tien-phong-trong-ung-dung-cong-nghe-so-cho-san-pham-the.35a53cdb/vi
16. (2023a) Số lượng khách hàng và thẻ tín dụng mở mới của TP Bank tăng kỷ lục.
Available at: https://tpb.vn/tin-tuc/tin-tpbank/so-luong-khach-hang-va-the-tin-
dung-mo-moi-cua-tpbank-tang-ky-luc.
17. Trần Đình Hượu. (2009) Chúngta.com, Nho giáo và kinh tế: Suy ngẫm & Tự vấn.
Available at: https://www.chungta.com/nd/tu-lieu-tra-cuu/nho_giao_va_kinh_te-
f.html
18. An Nhiên (2022) TPBank vào top 4 Ngân Hàng Tư Nhân Uy Tín Việt Nam 2022,
vnexpress.net. Available at: https://vnexpress.net/tpbank-vao-top-4-ngan-hang-tu-
nhan-uy-tin-viet-nam-2022-4486240.html
19. Tỷ lệ lạm phát của Việt Nam qua các năm thay đổi ra sao? (2023) Entrade X by
DNSE. Available at: https://www.dnse.com.vn/hoc/ty-le-lam-phat-cua-viet-nam-
qua-cac-nam
20. Lan Hương (2023) Tổng giám đốc TPBank: Lãi suất và chi phí vốn chắc chắn hạ
thời gian tới, Laodong.vn. Available at: https://laodong.vn/tien-te-dau-tu/tong-
giam-doc-tpbank-lai-suat-va-chi-phi-von-chac-chan-ha-thoi-gian-toi-1196901.ldo
21. (2023a) TPBank Chiếm Trọn Niềm Tin Trên Hành trình đồng hành bền bỉ Cùng
Hàng Triệu Khách Hàng. Available at: https://tpb.vn/tin-tuc/tin-tpbank/tpbank-
chiem-tron-niem-tin-tren-hanh-trinh-dong-hanh-ben-bi-cung-hang-trieu-khach-
hang
22. (No date) TPBank Cảnh Báo Hành VI Lừa đảo Chiếm đoạt Thông Tin Của Khách
Hàng. Available at: https://tpb.vn/tin-tuc/tin-tpbank/18142022-tpbank-canh-bao-
hanh-vi-lua-dao-chiem-doat-thong-tin-cua-khach-hang
23. Công Minh (2023) Nợ xấu tăng vọt, TPBank chấp nhận đánh đổi dự phòng lấy
tăng trưởng lợi nhuận?, https://thanhtra.com.vn. Available at:
https://thanhtra.com.vn/kinh-te/tai-chinh-ngan-hang/no-xau-tang-vot-tpbank-chap-
nhan-danh-doi-du-phong-lay-tang-truong-loi-nhuan-209717.html