Vietcombank Analysis
I. Macro-environment
1. Economic
One of the biggest successes of 2007 was the annual economic growth rate reaching an impressive 8.48 per cent. This high growth creates an important premise for Vietnam to move to a higher development plan in the coming years. 10.6 percent growth rate of the industrial sector shows the economy’s ability to develop sustainable. (Ministry of foreign affairs)
The economic growth of the Viet Nam relied on chiefly into contribution the number of investment element. It is estimated that at the end of November 2007 total lending account outstanding and investment in banking increase nearly 34% (Vietnamnet). This number shows that the banking industry is concerned by a lot of financial institution, big company and so on.
2. Demographic
The country’s population was last recorded at 84.16 million in 2007. According to the statistics, about 65 percent of the Vietnamese populations are in the working age group (15-59 years old) (Vietnamnet). These figures indicated that there are a great number of Vietnamese people who have ability to earn and save the money.
3. Technological element
Nowadays, Vietnamese banks have applied new technology: Host (the internal network and international network to connect all Banks’ branches over sea.) Besides, each bank also uses an information management system to control all branches’ database. Preventable risk system was established because the experiences from the past. A lot of banks could not survive when they lost a lot of money which customers loaned and did not pay. In April 2004, USAID experts assessed the bank’s information technology systems and recommended improvement. Integrating ATMs, credit, debit cards and e-banking into existing services make the transactions between the customers and bank become more comfortable and easier.(USAID)
4. Social/Culture Many Vietnamese people have traditional thinking is that they deposited their money into bank just for safe and interest.
5.
1. Economic
One of the biggest successes of 2007 was the annual economic growth rate reaching an impressive 8.48 per cent. This high growth creates an important premise for Vietnam to move to a higher development plan in the coming years. 10.6 percent growth rate of the industrial sector shows the economy’s ability to develop sustainable. (Ministry of foreign affairs)
The economic growth of the Viet Nam relied on chiefly into contribution the number of investment element. It is estimated that at the end of November 2007 total lending account outstanding and investment in banking increase nearly 34% (Vietnamnet). This number shows that the banking industry is concerned by a lot of financial institution, big company and so on.
2. Demographic
The country’s population was last recorded at 84.16 million in 2007. According to the statistics, about 65 percent of the Vietnamese populations are in the working age group (15-59 years old) (Vietnamnet). These figures indicated that there are a great number of Vietnamese people who have ability to earn and save the money.
3. Technological element
Nowadays, Vietnamese banks have applied new technology: Host (the internal network and international network to connect all Banks’ branches over sea.) Besides, each bank also uses an information management system to control all branches’ database. Preventable risk system was established because the experiences from the past. A lot of banks could not survive when they lost a lot of money which customers loaned and did not pay. In April 2004, USAID experts assessed the bank’s information technology systems and recommended improvement. Integrating ATMs, credit, debit cards and e-banking into existing services make the transactions between the customers and bank become more comfortable and easier.(USAID)
4. Social/Culture Many Vietnamese people have traditional thinking is that they deposited their money into bank just for safe and interest.
5.