F12-044 - Lam Thanh Giang.v.1.1.docx

14 critically analyse the performance of vietinbank

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1.4 Critically analyse the performance of Vietinbank According to the table of business indicators (Appendix 1- Figure 1.2) , Vietinbank’s business during the five-year period proved to grow consistently and strongly. Almost all indicators such as shareholders’ equity, total funding and gross loans went up sufficiently after 5 years. More specifically, in 2017, total assets were VND 1,095,061 billion, an increase of 15.4% as in comparison with that of 2016. In terms of lending activities, the indicator for it in 2017 was 18% much more than that for 2016, which were VND 840,156 and 712,642 billion, respectively. Also, the turnover from FOREX trading on primary market of Vietinbank went up by 17% from 2016 to 2017. In general, in 2017, the bank achieved and even went beyond all the business objectives set at the General Shareholders’ Meeting (2016). 1.5 Assess the future directions of the Vietinbank in terms of, for instance, growth,
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market objectives, among others. The bank has started out the project of restructuring for the period 2016-2020 with the medium and long-term goal to be the best-performing financial group in Vietnam by 2020. To be more precise, Vietinbank decide to pursue the approach of selective, effective, and sustainable growth. In terms of market objectives, the bank will put more emphasis on SME and retail banking, and private sector as it is being the main driver of the economy. Vietinbank shall keep selectively holding market share of state-owned enterprises and focusing on large corporate and FDI corporate customers. Moreover, automatic service with high utilities, non-credit service, modern technology service payment will also be developed and applied in the near future. Task 2: Write a report to explain the size and scope of different types of organisations 2.1 Differences and similarities between Vietinbank and HSBC bank HSBC bank (Vietnam) Ltd is 100 percent owned by the Hongkong and Shanghai Banking Corporation Limited. It comes with the form of a single shareholder limited company and is one of the biggest international banks in Vietnam (HSBC website, 2018). There are some differences between Vietinbank and HSBC bank. Differences Vietinbank HSBC bank Total Assets(2017) VND1,095,061 billion VND87,786,108 million Owner’ equity/ Shareholders’ equity (2017) VND63,765 billion VND11,186,927 million Objectives and goals(2018) -Increase labour productivity -Restructure business -Increase customer number -Take market share
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10 -Boost service income and non-interest income -Grow benefit on a consistent basis -Invest in technology Total employees 23000 1294 Branch Network -2 representative offices -155 branches -1000 agencies over the country -2 branches -42 agencies Business activities: Key products and customers -SME and retail banking customers(Vietinbank Annual Report 2017, p13) - corporate and retail banking customers, moreover -Connecting clients to the global banking -Supporting FDI and multi-national enterprises to invest in Vietnam and vice versa. (Pham Hong Hai, CEO of HSBC Vietnam, 2017) From the table above, it is clear that HSBC bank Vietnam is smaller than Vietinbank both in its size and scope. While Vietinbank has a wide range of domestic network, HSBC bank takes the advantage of having international relations as it has a sector named Global Banking
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