Assignment 1 Final- Nguyen Thuy Quynh

8/3/2019 Assignment 1 Final- Nguyen Thuy Quynh

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Vietcombank Always for customers success

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Transmitted to: Vietcombank

Prepared for:

Ms. Mary Eloisa Esmenda (Lecturer)Mr. Nguyen Trung Hau (Tutor)Unit 4: Business environment

Banking Academy, HanoiBTEC HND in Business (Finance)

Prepared by:

Nguyn Thy Qunh CarolRegistration No.: ITPF02146

November 25, 2009

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Table Of Contents

EXCUTIVE SUMARY ............. .............. ............... .............. .............. .............. .............. .............. ............... ........ ..... .....7

INTRODUCTION (PART 1) ............. .............. ............... .............. .............. .............. .............. .............. ......... ...... ...... ..8I MISSION, VALUES, OBJECTIVES AND ASSESS THE INFLUENCE OF STAKEHOLDERS ...............9

I. 1. MISSION ................................................................................................................................................................ 9I. 2. VALUES. .............................................................................................................................................................10I. 3. OBJECTIVES. ........................................................................................................................................................11I. 4. ASSESSTHEINFLUENCEOFSTAKEHOLDERS. ..............................................................................................................14

I. 4. 1. Definition of stakeholders mapping....................................................................................................... 14

4. 2. Internal stakeholders.................................................................................................................................. 15

I. 4. 4. External Stakeholders.............................................................................................................................. 16

II. EVALUATE THE EXTENT TO WHICH SELECTED VIETCOMBANK ACHIEVES THE OBJECTIVE

OF THREE STAKEHOLDERS ............ ............... .............. .............. .............. .............. .............. ............... ...... ..... .....18

II. 1. INTERNAL

STAKEHOLDER

.......................................................................................................................................18II. 2. CONNECTEDSTAKEHOLDER....................................................................................................................................19II. 3. EXTERNALSTAKEHOLDER......................................................................................................................................20

III. THE RESPONSIBILITIES OF THE SELECTED VIETCOMBANK AND STRATEGIES TO MEET

THEM .........................................................................................................................................................................20

III. 1. DEFINITION: THERESPONSIBILITIESOFANORGANIZATION.........................................................................................20III. 2. SOCIALRESPONSIBILITIESOF VIETCOMBANK............................................................................................................ 21III. 3. ENVIRONMENTALRESPONSIBILITIESOF VIETCOMBANK..............................................................................................21III. 4. ETHICSANDBUSINESSOF VIETCOMBANK................................................................................................................ 21III. 5. MANAGEMENTRESPONSIBILITIESOF VIETCOMBANK ................................................................................................. 22III. 6. PUBLICRELATIONANDCORPORATEIMAGEOF VIETCOMBANK .................................................................................... 22

INTRODUCTION (PART 2) ............. .............. ............... .............. .............. .............. .............. .............. ........ ..... ...... ..23

IV. THE ECONOMIC SYSTEM OF VIETNAM ATTEMPT TO ALLOCATE AND MAKE EFFECTIVE

USE OF RESOURCES WITHIN THE COUNTRY...............................................................................................25

IV. 1. THEECONOMICSYSTEM.......................................................................................................................................25IV. 2. THEALLOCATIONOFRESOURCESWITHINTHE VIETNAM ..........................................................................................26

IV. 2. 1. Land....................................................................................................................................................... 26

IV. 2. 2. Labor.....................................................................................................................................................27

IV. 2. 3. Capital................................................................................................................................................... 28

V. THE IMPACT OF SOCIAL WELFARE AND INDUSTRIAL POLICY INITIATIVES ON

VIETCOMBANK AND THE WIDER COMMUNITY .........................................................................................30

V. 1. DEFINITION: SOCIALWELFAREAND INDUSTRIALPOLICY.............................................................................................30V. 1. 1. Social welfare.........................................................................................................................................30

V. 1. 2. Industry policy........................................................................................................................................31V. 2. VIETNAMSSOCIALWELFAREPOLICY....................................................................................................................... 31V. 2.1 Vietnams social welfare policy on unemployment ..................................................................................31

V. 2. 2. Vietnams social welfare policy on poverty alleviation. ........................................................................31

V. 2. 3. Vietnams social welfare on basic education and gender equality. ......................................................32

V. 3. ASSESSIMPACTOF VIETNAMSSOCIALWELFARE......................................................................................................32V. 3. 1. Assess impact of Vietnams social welfare on Vietcombank. ................................................................32V. 3. 2. Assess impact of Vietnams social welfare on related industry and wider community..........................33

V. 4. VIETNAMSINDUSTRIALPOLICY.............................................................................................................................. 33V. 4. 1. Vietnams industrial policy on investment in human. ........................................................................33

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V. 4. 2. Vietnams industry policy on innovation ...............................................................................................34

V. 4. 3. Vietnams industry policy on infrastructure development...................................................................... 34V. 5. IMPACTOF VIETNAMSINDUSTRIALPOLICY.............................................................................................................. 34

V. 5. 1. Impact of Vietnams Industrial policy on Vietcombank ........................................................................34

V. 5. 2. Impact of Vietnams industrial policy on related industry and wider community.................................35

VI. THE IMPACT OF MACRO ECONOMIC POLICY (FISCAL AND MONETARY POLICY)

MEASURES AND INFLUENCE OF THE GLOBAL ECONOMY ON VIETCOMBANK AND

STAKEHOLDERS IN VIETNAM............................................................................................................................ 36

VI. 1. THE MACROECONOMICPOLICIESANDITSTOOLSTHEORYANDIMPACTOFMACROECONOMICPOLICESONECONOMIC VIETNAM................................................................................................................................................................................... 36VI. 2. CURRENTSITUATIONANDIMPACTOF VIETNAMSFISCALPOLICY. ..............................................................................37VI. 3. CURRENT SITUATIONANDIMPACTOF VIETNAMSMONETARYPOLICY.........................................................................37

VI. 4. IMPACTOF VIETNAMSFISCALANDMONETARYPOLICYON VIETCOMBANKANDSTAKEHOLDER.....................................37VI. 5. GLOBALECONOMYANGLOBALFINANCIALCRISESIN US, EU, JAPAN ......................................................................38VI. 6. THEINFLUENCEON VIETNAMECONOMY, VIETCOMBANK, STAKEHOLDERS.................................................................... 39

CONCLUSION ...........................................................................................................................................................40

RECOMMENDATION.............................................................................................................................................. 41

REFERENCE ............................................................................................................................................................42

APPENDIX ................................................................................................................................................................47

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EXCUTIVE SUMARY

The proposal of project researches Vietcombank Company on various aspects. It will

show that Vietcombank will have how impaction to business environment of Vietnam.The Bank for foreign Trade of Vietnam (now Vietcombank) was established under the

Decision 115/CP dated October 30th, 1962 by separating from foreign exchange management

department of the central bank (now State bank). Vietcombank operated under the direct

management of state bank with the function of the only bank to serve external economic affairs

and export-import lending for the whole country. 1995, Vietcombank was awarded by Asian

Money which is reputable monetary magazine in Asia as the first bank in Vietnam. On

September 21st, 1996, Governor of State bank gave the decision 286/ Q-NH5 that the bank for

foreign trade of Vietnam was reorganized under the decision 90/Q-TTg dated march 7, 1994.

Vietcombank is one of oldest commercial bank for external affairs in Vietnam.

The economy of Vietnam is developing economy. After Vietnam acceded to WTO

(world trade organization), Vietnam have many opportunities to develop more than before such

as enhancing the economy potential through promoting export activities and attracting

investment. Therefore, economy of Vietnam is improving and developing quickly on some

branches. One of these branches is bank. A few recent years, bank market of Vietnam is very

exciting and has many contributions in the promoting national economy. Typical bank is

Vietcombank. It helps state implemented prudent monetary policy, flexible, stable value of

currency, and control inflation.

From the project will give conclusions about mission, objective and responsibilities of

Vietcombank within its environment. Besides that, people will also understand the economic,

social and global environment in which Vietcombank operate. After that, people can have

different recommendations about Vietcombank and Vietnam economy. For example:

Vietcombank should have more social policies for staff and responsibilities in environment. OrVietcombank can the best bank in Vietnam and want to keep their position, Vietcombank should

have more special business activities to attract investment.

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INTRODUCTION (Part 1)

After the long war, Vietnam started to build and develop new economy from 1986.

Vietnam has made many great changes, first innovation in economic thinking, the transition from

planning economy to focus, system of budget subsidies to market economy, implement

industrialization and modernization. In addition, Vietnam opens relationship with more

countries, implement open policy. With this policy, it can help Vietnam reduce poor and first

step to build industrialization and modernization.

One of the policies to develop Vietnam economy is Privatization. Privatization is the

transfer of assets or service delivery from the government to private sector (what is

Privatization?, 2006). Vietnam began privatization since 1990. When businesses implementprivatization, it brings benefits the following as: Businesses develop lager scale, orient into key

industry. Capital, Profits of business increase, so that earning of labour go up. In addition,

business applies privatization will attract investor both home and aboard. It is not only help to

enhance values of business but also develop Vietnam economy.

Bank industry also implements privatization. According to accounting: after 1year

Vietnam was member of WTO, banking system expand and include 6 trading banks, 37 join-

stock trading banks, 31 bank affiliates, 6 financial companies, and more banks. Vietcombank is

one of bank to do privatization. It established on April 1 st, 1963 the bank for Foreign Trade of

Vietnam (now Vietcombank). One of the oldest commercial bank for external affair in Vietnam

and also first commercial bank in Vietnam to deal foreign currencies always takes the largest

market share in the interbank forex market. It completes privatization in the 2007. In the future,

Vietcombank will become one of Asias leading financial groups by 2015.

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I MISSION, VALUES, OBJECTIVES AND ASSESS THE INFLUENCE OF

STAKEHOLDERS

I. 1. Mission

Mission describes behavior and actions of organization for the present and immediate

future. It includes outline the specific role of organization to fulfill within society over the long

term.

Vietcombank mission is always for customers success. They always try to implement

their MISSION. Each year, Vietcombank improves products and services both quantity and

ability. New services and products are researched carefully with purpose: satisfy customer need.

For example:

VCB-IB@nking Service online bank (it was built to undertake that Vietcombank can serve

customer everywhere, everytime by PC, Laptop, etc have connected internet).

VCB- Phone B@nking (Banking service 24hours x 7days. it can help you know information

about product and service of Vietcombank. Using ways very easy and free through phone).

In addition, people knew that Vietcombank was awarded by Asian Money which is

reputable monetary magazine in Asia as the first bank in Vietnam in 1995. (Milestones, 2001)

The mission of Vietcombank continue keeping and affirming the leading position or the best

bank in Vietnam. From mission, they never stop improving and develop all services to satisfy

customer. As a result, 2007, they continue receiving reward the best bank provided foreign

exchange service for business in 2007 by Asia Money magazine voted (Milestone and

achievement, 2008). In 2008, Vietcombank was the best bank in Vietnam and bank had the best

quality about managing cash by Asia money voted, and the best bank provided trade payment in

Vietnam by Trade Finance voted (Report from broad of management about activities in 2008 and

orientation in 2009, 2008). In 2009, Vietcombank will orient and make plan to be not only the

best bank at Vietnam but also become one of famous bank in the Asia.Moreover, Vietcombank mission is solving some existed problems (Report from broad

of management about activities in 2008 and orientation in 2009, 2008) such as some customer

services were not good and didnt have right result as estimate. Or the work of settlement and

transferring capital for state was still not complete and other problem. Vietcombank needs

changing and new policies to improve and solve problem. New policies were created by broad of

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management. For example: Vietcombank will reorganize function of customer services which

were not good.

I. 2. Values.

The values mean goals and aims of the organization will have an ideology based on

belief, values and attitudes.

Vietcombank is the leading bank in Vietnam. They always define specific their goal to

make business activities have more good results. These values are safety - quality - growth -

efficiency. (Report from broad of management about activities in 2008 and orientation in 2009,

2008). From goals, Vietcombank orients business activities into some important missions

following as

First, Vietcombank pay attention into risk management and handle bad debts with

purpose enhance safety for themselves and customer. They increase access and attract special

customer groups and individual, also avoid concentrating customer as this is a measure to limit

risk. Beside, Vietcombank controls strictly quality of credit, attention processing and limit bad

debt (below 3,5%). In addition, Vietcombank must interest to risk of market and enhance control

job, audit to satisfy requirement and compliance with international standards.

Behind safety strategy, Vietcombank pays attention to quality of service as increasingcapital mobilization, continuing to expand credit activities, and developing customer services.

For example: enhancing control customer services more than before to keep traditional customer,

loyal customer and addition new customers. Researching and give many new services with new

potential can satisfy customers. Moreover, interest rate has downward trend, fluctuating

exchange rates are difficult, challenges with Vietcombank. Vietcombank need continue flexible

and control interest rate suitable for capital mobilization policies and expanding demand for

credit

Next, one of goals to create Vietcombank value is growth element. After over 45 years,

Vietcombank grew to become the leading bank in Vietnam. The reasons to help Vietcombank

has this achievement are Vietcombank applied modern bank system, provide services and

products easy use, safety, save time for customers home and abroad. These products and services

are very fast to scoop market such as arbitrage of exchange, credit, and other services

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(Announcement, 2007). In the future, Vietcombank continue expanding bank network and

enhance the quality of human resources. (Report from broad of management about activities in

2008 and orientation in 2009, 2008). In 2009, Vietcombank oriented enhance scale of labor to10% more than compare with 2008. The training, develop quality of human resource continue

implement such as training important cadres to satisfy expanding requirement of bank.

The last element to make Vietcombank is efficiency in the work. Vietcombank knows

that if the business activities have effective, they must continue to perfect and improve the

organization structure and management tools. Vietcombank defines goals to search, select

strategic partners home and abroad to create changing management structure. In addition,

Vietcombank will provide information quickly, timely and exactly for customer (Report from

broad of management about activities in 2008 and orientation in 2009, 2008). All things with

purpose help Vietcombank enhance effective in the works. From that, they increase their image,

goodwill and values.

I. 3. Objectives.

From the vision and mission, goals are derived. Goals are the intentions behind decision

or actions, the states of mind that drive individuals or organizations to do what they do.

First objective of Vietcombank is to maintain the role of a leading commercial bank inVietnam and to an international bank in the region, in the next decade. The researcher applies

SMART technique to analyze it

S- specific:

Vietcombank continues being the leading commercial bank in Vietnam and to an

international bank in the region.

M- Measurable:

If Vietcombank wants to become number one about commercial bank in Vietnam, andan internal bank in the region. They must pass other commercial bank by way improve human

resources, open new departments, expand branches suitable for strategy of company. For

example: Vietcombank expands 4 branches and 64 dealing rooms in 2008. (Report from broad of

management about activities in 2008 and orientation in 2009, 2008).

A- Achievable:

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Beside things are improve human resources, expand branches, Vietcombank want to

develop retails system in 2009 and continue expanding branches and dealing rooms more than

2008. R- Realistic:

Vietcombank received reward the best bank in Vietnam by Asian money magazine

voted in 1995 (milestones, 2001) and they continue receiving reward the best bank provided

foreign exchange service for business in 2007 by Asia Money magazine voted (Milestone and

achievement, 2008). Vietcombank was also the best bank in Vietnam and bank had the best

quality about managing cash by Asia money voted, and the best bank provided trade payment in

Vietnam by Trade Finance voted in 2008 (Report from broad of management about activities in2008 and orientation in 2009, 2008). These evidences demonstrate Vietcombank has enough

potentials continue becoming the leading commercial bank in Vietnam and an international bank

in region.

T- Time bounded:

Vietcombank maintain the role of leading commercial bank in Vietnam and an

international bank in region in next decade. It means Vietcombank keeps the leading commercial

bank in next 10 years.

Second objective of Vietcombank wants to increase total assets 15% - 20% per year from

the present to 2015. It means

S Specific:

Total assets of Vietcombank increase 15% - 20% in comparison to last year

M- Measurable:

15% - 20% total assets of Vietcombank is increased per year

A- Achievable:

15% - 20% or more total assets of Vietcombank is increased per year

R- Realistic:

Vietcombank wants to become one of 70 financial institutions in Asia in 2015-2020

(Milestones and achievement, 2008). As a result, total assets of Vietcombank must increase

15%- 20% each year from now to 2015 right with progress schedule.

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T- Time bounded:

Each year 15%-20% total assets of Vietcombank is increased from now to 2015.

Next objective of Vietcombank define plan that increases owners equity 2.5 -3 billionsUSD from now to 2015. The objectives will be analyzed by SMART technique.

S- Specific:

Owners equity of Vietcombank increases to 2.5- 3 billions USD in the present to 2015

M- Measurable:

Owners equity of Vietcombank is increased 0.5-0.6 billions USD per year from now to

2015

A- Achievable:Total equity of Vietcombank has 13.790 billions VND (equally about 0.8 billions USD)

(Annual report, 2008). Therefore, 2.5- 3 billions USD or more owners equity of Vietcombank

will have from now to 2015.

R- Realistic:

Vietcombank wants to become one of 70 financial institutions in Asia in 2015-2020

(Milestones and achievement, 2008). As a result, total equity of Vietcombank must increase to

2.5-3 billions from now to 2015. Its condition to help Vietcombank perfect their project.

T Time bounded:

From the present to 2015 is challenging time to have 2.5- 3 billions USD. Its condition

to help Vietcombank implement plan become one of 70 financial institutions in Asia.

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I. 4. Assess the influence of stakeholders.

I. 4. 1. Definition of stakeholders mapping.

Stakeholders mapping (BPP Professional education, 2004, p.42)

Key players means high power, high interest and strategy must be acceptable to them,

at least.

Key satisfied means high influence, low interest and stakeholders in keep satisfied

segment must be treated with care. While often passive, they are capable of being key

players.

Keep informed is high interest, low power, and stakeholders in keep informed

segment dont have great ability to influence strategy, but their view can be important

influencing more powerful stakeholders

Minimal effort is low interest, low influence and expended on this segment.

In the organization, they have 3 kinds of stakeholder: Internal stakeholder, connected

stakeholders and external stakeholders. Vietcombank is so. Each type of stakeholders hasdifferent influence each other to organization. Therefore, the researcher evaluates 3 types of

stakeholder by stakeholder mapping to help people understand importance of each stakeholder.

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Stakeholder Mapping in Vietcombank

TYPES STAKEHOLDERS STAKEHOLDER MAPPING

KEYPLAYERS

KEEP

SATISFIED

KEEP

INFORMED

MINIMAL

EFFORT

Internal

Stakeholder

Management

Employees

Connected

Stakeholders

Shareholders

Customers

Competitors

Suppliers

External

Stakeholders

Central Government

Local Authorities

Professional Groups

Pressure Groups

4. 2. Internal stakeholders.

The Managements are stakeholders in key players segment because they have high

influences and high interest with activities of Vietcombank. They have influence in all the

activities of company such as making decision expanding Vietcombank operations. In addition,the managements are also very interested in the growth Vietcombank. The Vietcombank

managements involve Mr. Nguyen Phuoc Thanh Chief executive officer and other members

(Board of directors, 2009). Mr. Nguyen Phuoc Thanh has important role with Vietcombank. He

makes decision and has responsibilities with Vietcombank projects.

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Employees are key informed because they are human resources of Vietcombank.

Actions of employees make successful of Vietcombank. Perhaps, each employee has low

influence, but they have high aspiration with Vietcombank activities. Therefore, Vietcombankalways care about training employees such as in the report- orientation 2009, Vietcombank

enhance the ability of training human resources to satisfy demand developing of Vietcombank.

I. 4. 3. Connected Stakeholders.

Shareholders are key players because they have more contribution for company. They

have high influence in the work such as they have right to join in the assemblies and give opinion

to make decisions. Besides that, they are also very interested company because if Vietcombank

has more and more successful in the business, they will have more benefits.

Customers are also key players because they are important factor Vietcombank must

care. The business is not business when business doesnt have customers. Customers have high

influence because they are people buy and use products, services Vietcombank must find way to

make satisfy customers need. Vietcombank has more customers so they have more profits. These

reasons explain why Vietcombank pays attention to improve abilities of services and products.

They have high interest with company because they evaluates Vietcombank services are better or

less good than services of other bank. Maybe, they interest different services in Vietcombank to

change services and products bring the best convenience such as save time transfer money or

account.

Competitors are minimal effort because they interest little Vietcombank operations and

have low influence in Vietcombank. However, Vietcombank should be carefully with

competitors because they can have improvement and become threaten with Vietcombank.

Therefore, Vietcombank strategy is always improvement and creates new products and services

with two purposes: satisfy customer need & keep the strong point in the business.

I. 4. 4. External Stakeholders.

Central government is keep informed because they have high aspirations and low

influence in the Vietcombank. They have high aspirations with Vietcombank because

Vietcombank is the leading commercial bank and concern with control money policies and fiscal

polices of government. For example: Vietcombank have responsibilities in changing interest

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bank with agree of government. And they accept to implement the decision 131, 443 of

government about encourage investment. (Report from broad of management about activities in

2008 and orientation in 2009, 2008). However, they have low influence in the Vietcombankactivities because they have right control in the company.

Local authorities are keep satisfied because they have high influence and low interest

with Vietcombank. They have low interest company because Vietcombank implement right legal

not only local authorities but also government. However, local authorities influence directly to

each action of Vietcombank such as expanding customer at local.

Pressure groups are also keep satisfied because theyre so high influence and low

aspirations with Vietcombank. The reason makes pressure groups have high influence with

Vietcombank: they can impact opinion to Vietcombank in the activities such as business in local

or social welfare. However, they interest Vietcombank at low level because they dont have right

control company.

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II. Evaluate the extent to which selected Vietcombank achieves the objective

of three stakeholders

Stakeholder Types Objective Extent of achievement

Internal Stakeholder Employees High salary

High health

Training

opportunity

High extent

Not achieved

High extent

Connected Stake

holder

Customer Receiving goods

and services of a

reasonable quality

Paying a

reasonable price

for those goods and

services

Innovation

High extent

High extent

Not achievedExternal Stakeholder Central government Tax

Law

Contribution to the

national economy

Low extent

High extent

Not achieved

II. 1. Internal stakeholder.

Internal stakeholders includes people have intimately connected with company.

Employees are factor in the internal stakeholder. Employees have big contribution on the success

of a business as it is they who are responsible for all aspects of work carried out therein. Many

writers comment that employees are the most important of all of the factors of production (BPPProfessional Education). Because they are the most important factors, they always need

motivation to work. For example: interest from management. So that, they will usually be more

productive, produce a better quality product or service. More over, they are people make and

complete directly products, so they can observe and discover mistakes and repair its. In addition,

they provide ideas for improvement and guarantee ability of product.

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The researcher show evidence to prove that employee of Vietcombank can have high

extent about salary. In the budgeted business results in 2007-2010, it give data total asset of

Vietcombank 2007 is 200.914.606 million VND and 2008 is 245.375.194 million VND, 2009 is296.666.962 million VND and 2010 can pass 350.000.000 million VND (Prospectus, 2007).

People can see the number about asset Vietcombank is very big. Each year, total asset increases

significantly so Vietcombank is more and more development. Next, the data about Operating

expenses and in it has money expand for salaries. The expenses paid salaries in 2007 is 487.172

million VND (Prospectus, 2007).. From 2007 to 2008, it increased so fast from 487.172 million

VND to 712.287 million VND. IF people compare total salary between 2007 and 2009, we

showed that total salary of 2009 (998.785 million VND) is over double with total salary of 2007

(Prospectus, 2007). It can be over 1.000.000 million VND. It prove that salary of Vietcombanks

employees improves and higher than before. Salary of employee is high salary. It showed that

employees was trained good and they have enough skills, standard about health to work

II. 2. Connected stakeholder.

Connected Stakeholders includes shareholders, bankers, customers, supplies. Customers

are people who Vietcombank pays attention and satisfy their request. They want to good product

and service and reasonable price. Customers usually determine product by way is what quality is

need, what price is charged and what development is needed. Manufactory, company as

Vietcombank must listen to customers ideals. These ideas will suggest for Vietcombank

improve service, product suitable with request of costumers. From this, Vietcombank has more

customers than before and earns more profits compare with competitors.

Customers of Vietcombank received goods and service to solve financial problem such as

lending money according to short-term, middle and long-term depend on request and solvent.

Moreover, Vietcombank has many products and services such as Notes discounting, guarantee,

international payment, money transfer, card service and other services and products. All products

and services have purpose to bring benefits for customer. For example: in the transfer money,

when customer chooses Vietcombank, they can save time, and full cover about money that will

be hand receiver. If customers satisfied request, they will believe and come back Vietcombank

more times. It means Vietcombanks trade-make famous and have place in the heart of customer.

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More and more customers find to Vietcombank demonstrate that ability of Vietcombank is good.

Customers ensure pay a reasonable price for goods and services. As a result, profits of

Vietcombank go up.

II. 3. External stakeholder.

According to Business Environment, External stakeholders groups are the

government, local authorities, pressure groupsthey are likely to have quite diverse objectives

and have a varying ability to ensure that the company meets them. With Vietcombank, the report

wants to deal with central government. It has a big role to play in the success of the business

though passing of the laws and policies: Policies protect workers and customers, collecting tax asIncome tax, corporation tax, VA.

Central government has a big role to play in the success of business through the passing

of laws and polices it pursues (BPP Professional Education). Central government applied and

implemented laws to protect workers and customer. It collected tax such income tax from

individual, corporation tax and, value added tax (VAT). In addition, central government has

polices concern to contribution the national economy, because it regulates economic policies by

monetary policies and fiscal policies. Central government keeps activities and aiding exporters of

business. Therefore, people show that big role of central government.

III. The responsibilities of the selected Vietcombank and strategies to meet

them

III. 1. Definition: The responsibilities of an organization.

The responsibility of an organization includes social responsibilities, environment

responsibilities, ethics and business, management responsibilities and public relation and

corporate image.

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III. 2. Social responsibilities of Vietcombank.

Vietcombank has social responsibilities with shareholders, customer, and employees.

First, with shareholder, Vietcombank ensure bring maximize profit for them. Forexample: Vietcombank keep dividend for shareholders at level is 12% in 2008 (Annual report,

2008).

Second is customer, Vietcombank try to provide the best services and products for them

such as they create VCB- Phone B@nking (Banking service 24hours x 7days. it can help

customer know information about product and service of Vietcombank. Using ways very easy

and free through phone) (Vietcombank, 2001). Besides that, Vietcombank repairs mistake and

have polices to pass difficulties quickly such as mistake ATM card.

Next, employees are always important factor with Vietcombank. Company ensures

conditions about workplace and work practices for their employees. Vietcombank also ensure

paying salary right time for employees and increase salary as the contract. In addition,

Vietcombank interest so much about training problem and expanding scale of labor to 10%

(Report from broad of management about activities in 2008 and orientation in 2009, 2008).

III. 3. Environmental responsibilities of Vietcombank.

Its easy to see that Vietcombank have responsibilities with environmental. They join into

protect environment activities and advise customer and people protect environment together. A

simple example is Vietcombank advises their customer put cards, which is expiration date, into

recycle.

III. 4. Ethics and business of Vietcombank.

Within ethics and business, Vietcombank satisfies request implement their

responsibilities. For example: Vietcombank accepts professional ethics. They pay salary enough

for employees as the contract. In 2008, Vietcombank ensure the cost of salary is 24,88 % (Reportfrom broad of management about activities in 2008 and orientation in 2009, 2008). Besides,

Vietcombank also join reducing corruption in their company and country.

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III. 5. Management responsibilities of Vietcombank

Vietcombank has management responsibilities with employees and customers. First, with

employees, Vietcombank ensure working conditions: workplace, salary, good training. For

example: Vietcombank always improve ability of human resources. They send money and time

to train employees at home and abroad. Therefore Vietcombank can have enough potential to

create new good services and products as an important responsibility with customer. Moreover,

Vietcombank creates condition for customer by way reduce interest and always fair with

customer in all activities. For example: Vietcombank reduce growth debt for customer from

29,20% to 15, 53%. (Report from broad of management about activities in 2008 and orientation

in 2009, 2008)

III. 6. Public relation and corporate image of Vietcombank

In term of public relation and corporate image, Vietcombank has responsibilities. With

public relation, Vietcombank has joined more public activities since it was established. For

example: Vietcombank gave 17 wheelchairs for defect children in Binh Thuan with 2.5 million

VND/wheelchair (Take care of poor households in TET, 2009) Specially, the banks staff also

took part in blood donation programs with 65 people from Ho Chi Minh City and many places.

Vietcombank shared the pain with coastal people falling victims of the storm of Chanchu in May

2006. More 8000 employees of Vietcombank supported 1 billion VN to the storm victims

(Annual report, 2006). The banks social responsibilities demonstrated that Vietcombank is

organization has contribution and responsibilities with country. From public activities and their

good services and product, Vietcombank builds a good image in the minds of people. When

Vietcombank has good image and goodwill, they will be easy to implement their big project in

the future.

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INTRODUCTION (Part 2)

Privatization is a central part of industrial policy of government because privatization is

one of the important directions of process - reform of state owned enterprises. In the innovationeconomy, a major problem is given to develop forces of production and step by step build the

new production system suitable with level of human resources. To release the forces of

production, the government needs developing various commodity economies, removing system

of budget subsidies, moving the market mechanism and build new economy setups with more

forms of ownership, in which economic state is the most important role. To implement this major

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project, the government must be reform state-owned enterprises by way are privatization. In the

resolutions three of government, the government continues developing strongly privatization

process, increase management of capital, state assets and personnel in enterprises (Resolutions 3of government, 2008).

Privatization process in Vietnam started in 1990 under the decision 143/ HBT dated

May 10th, 1990. After that, the government continues give the decision to implement and

enhance privatization in enterprises. The privatization process includes 3 periods. (The

privatization process in Vietnam, 2008)

First period (from 1992 to June, 1998), Vietnam started privatization in 30 enterprises, in

which 5 businesses implemented privatization under the decision 202/CT by broad of minister.

Other enterprises were privatized under the decision of resolutions 28/CP by the government.

Second period (June 2nd, 1998- December 31st, 1999), in this time, Vietnam have more

340 state owned enterprises started implement privatization. The privatization process in this

period has more improvement than last period.

Third period (January 1st, 2000 to now), resolutions 3 of government, session IX lay

down as a policy develop quickly privatization. In 2001 2009, having new 979 enterprises

privatized. Especially in 2003, having 611 enterprises privatized. Next in 2004, 715 enterprises

privatized. From 2005 to the present, the privatization process is more and better, quick than last

periods. However, Vietnam also has limited point in the privatization process.

Now, Vietnam has more industry make privatization in which have bank industry. After

accounting: after 1year Vietnam was member of WTO, banking system expand and include 37

join-stock trading banks, 31 bank affiliates, 6 financial companies, and more banks.

Vietcombank is also one of bank to do privatization.

Impact of privatization, it creates new environment business in Vietnam. An environment

is fair about problem using land; satisfy about capital needs and other problem. Especially,privatization helps businesses enhance effective of production, high profits, increasing potential

of competition in the market. As a result, when Vietcombank privatized, they have had many

opportunities to develop in new business environment to enhance effective of Vietcombank

operations. For example: total asset of Vietcombank in 2004 was 120.006 VND billions. After 4

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years (2004-2008), total asset of Vietcombank increases to 221.950 VND billions (Annual

report, 2008).

IV. The economic system of Vietnam attempt to allocate and make effective

use of resources within the country.

IV. 1. The economic system.

Definition of the economic system is organized way in which a state or nation allocates

its resources and apportions goods and services in the national community (what are the fourdefinition of economic system?, n.d ). The economic system has three types: Free market

economy, command economy, and mixed economy.

Free market economy has no government control over factors of production (land, labor,

capital). It can call market economy. In this market, business produce goods to make profits and

prices of goods are influenced by demand and supply of goods.

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Command economy doesnt have a private sector as all resources are owned by the state.

In command economy, the government decides what to produce, what to work and what work to

perform.Mixed economy has both a private sector and a public sector. In countries have mixed

economy; the government controls the important industries such as education, health, public

transport, water and electricity supply and other things

From characteristics were listed, people can show economy of Vietnam is mixed

economy because the government of Vietnam controls many industries such as education, water

& electricity supply and different organizations. Moreover, economic Vietnam has both private

sector and public sector. For example: in the medicine industry, Vietnam has both private

hospital such as Saigon eyes hospital in Hanoi, and state hospital.

IV. 2. The allocation of resources within the Vietnam

Vietnam is a rich country about mineral resources, human resources. Vietnam has enough

land, labor. Moreover, Vietnam is a developing country and new market. Therefore, more

investors interest and research to invest capital about agricultural, marine products, and other

industries in Vietnam. Now, the researcher evaluates resources within the Vietnam.

IV. 2. 1. Land.

According to the accounting before 2005 under the decision 28/ 2004/CT-TTg dated July

15th, 2004 by Prime Minister, total lands area are 33.121.159 ha ( The decision and approving the

result inventory lands in 2005) . It involves:

Agricultural areas is 24.822.560 ha

Non agricultural areas is 3.232.715 ha

Land areas dont use and mountains dont have forest, plants: 5.065.884 ha.

Vietnam uses land law to manage their land. Land law was born 1993 by government,with purpose manages and creates land policies and control relationship between economy and

society in long term. Legal of land divides land such as lands for agricultural, industry, estate

business, tourism activities, investment, traffic, shelter, and etc. The opinion and land plan of

Vietnam divide two periods (Land policies of Vietnam in innovating period, 2009):

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First period (1981-1992), this period is development about land policies. In 1981-1992,

Vietnam had many difficulties after economic crisis society in decade 70 of century 20.

Especially, the foods were lacked so Vietnam had to have land policies for agricultural toimprove problem. For example: Hai Phong city gave resolution 24 NQ/T about the way used

land to improve quality of agricultural and they were successful. More over, the chairman of

board in board of minister encouraged enterprises and corporations invest capital into lands such

as use land to do farm. Beside that, chairman of board in board of minister gave the decision

327/CT, which is a policy uses land such as forest, strand flat, bald and mountain hill for

households. In which, each household was received 5000m2 to make farm (if land is forest),

300m2 (if land use to grow industrial crops), 700m2 (if land is strand flat). The state use 60%

capital to build infrastructure and 40% capital for household borrow no interest to develop the

plan use effectively lands with purpose bring high profits and improve the life of household.

Second period (from 1993 to the present), land polices continue improving and

supplementing some land laws attract with plan use land areas. For example: In 1998, the

government supplemented legal about problem buys and sells lands. In 2001, the government

paid attention aspect such as role of management land economy, arrangement to make

municipals and plan for using land. In 2003, land law also improved suitable with Vietnam

economy. For example: land law admitted the right use land in estate market. As a result in this

period, Vietnam enhanced implementing land policies to use fit, logical land areas in the

industries.

Vietnam receives some effectives by the way use fit land areas. There are agricultural

production develops strongly to satisfy requirements of home and aboard about foods. Land

policies attract over 10 million labors so land policies make opportunities to improve the life of

households (Land policies of Vietnam in innovating period, 2009).

IV. 2. 2. Labor.

Population of Vietnam is over 80 million people. 52,8 million people have age enough

labor conditions, in which 15,8 million people in the city, and 37 million people in the

countryside (In 2006, Preparing to solve job for 1.6 million people).

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Vietnam manages their labor by labor law. Labor law talks the right and responsibilities

of labor and people use labor, labor standards, norm of labor (Labor law, 1994). For example: the

labor-conditions are people in labor age begin 15 year olds and have enough many potentials tostart labor and contract (labor law, 1994). Laborer has the right to receive salary as contract with

people use laborer (labor law, 1994).

The plan 5 years from 2006-2010, the government made some missions such as

agricultural labor hold 50% labor of society and creating job for 8 million people, unemployment

rate in the city below 5%. Besides that, other missions are given by the government such as

enhancing ability of labor and paying attention to education and train human resource (the

resolution of the government about the economic development plan- society 5 years 2006

2010).

From plan 5 years, Vietnam has happy results following as: In 2007, Vietnam created

jobs for about 1.68 million people, in which 1.6 million laborers in state and foreign countries

are about 85 thousand laborers. In addition, unemployment rate decreased to 4.91% in the city. It

means Vietnam implement successfully goals in plan 2006-2010. (The results solve job, and

develop labor market in 2007, 2008). Therefore, the life of laborers is improved about finance,

material base and spirit.

IV. 2. 3. Capital.

Capital resources of Vietnam include 12% Official Development Assistance (ODA)

capital in the total social investment capital, 28% investment capital from the national budget,

50% development investment credit of the government (Discussion on ODA capital management

of Vietnam, 2009)

Vietnam pays attention to how use effectively investment capital resources. With ODA

capital, the government gave the decision 181/2007/Q-TTg dated November 26 th, 2007 about

regulation to lend from ODA, and external aid of the government. Beside, Vietnam always

organizes conferences about ODA capital, and implements measure to control ODA capital

(Discussion on ODA capital management of Vietnam, 2009). According to the discussion on

ODA capital management of Vietnam, 2009, people can see data table about ODA capital of

Vietnam in the period 2002-2006

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Target Unit 2002 2003 2004 2005 2006

1-GDP Billion

VND

53576

2

61344

3

715307 83921

1

974266

2- Total debt BillionVND

179100

249419

311834 365229

359599

a- Debt in the state BillionVND

34728 71829 99572 139843

108477

b- Debt from foreign country BillionVND

144372

177590

212262 223386

251122

In which : ODA debt BillionVND

133173

166191

198305 200044

223497

ODA debt transfer to foreigncurrency

MillionUSD

8683 10652 12617 12611 13921

2- ODA capital according totitles

%

a- Government 61.91 56.62 56.18 54.54 54.45Japan 30.78 33.03 34.06 32.69 33.80France 4.99 5.95 6.08 5.60 5.86Russia 13.56 6.22 5.15 5.31 4.76Other 12.59 11.42 10.89 10.94 10.03b- Financial internationalorganization

38.08 43.38 43.82 45.45 45.55

ADB 12.86 14.48 14.52 14.75 15.01IDA 19.80 24.26 25.38 26.81 26.83

IMF 4.18 3.21 2.26 1.75 1.41Other 1.24 1.43 1.66 2.14 2.30

(Data from Bulletin External Debt of Treasury 2007, Scheme Perfecting the institutional

framework for debt management in Vietnam by Ministry of Finance 2008).

In period 2002 -2006, people can see that Japan is government has highest ODA capital

in Vietnam with 30.78% in 2002 and 33.80% in 2006. It demonstrates that Vietnam has good

relationship with Japan and enough potential to manage ODA capital. Moreover, Vietnam

continues appealing investment capital from other countries. For example: Vietnam appeals

business of Malaysia increase capital in Vietnam market.

The plan (2001-2010), Vietnam makes goals following as: ODA capital is still increasing

through each year, in which (2001-2005) ODA capital is 13.3 billion USD. Vietnam doesnt stop

demonstrating themselves with financial international organization, and countries to attract more

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than new organization and countries invest into Vietnam (Investment capital into Vietnam has

more effective, 2004)

From measure, and plan of government define to help Vietnam has effectives in problemallocates capital. There are Vietnam satisfies capital requirement with low cost, reduces risk and

pressure with national resources, ensures safety debt and national security about finance,

increases opportunities to join international economy (Discussion on ODA capital management

of Vietnam, 2009).

V. The impact of social welfare and industrial policy initiatives on

Vietcombank and the wider community

V. 1. Definition: social welfare and Industrial policy.

V. 1. 1. Social welfare.

Social welfare means consists of actions or procedures- especially on the part of

governments and institutions- striving to promote the basic well-being of individuals in need.

(Welfare, n.d.). Social welfare policy includes old age programmers, unemployment, sickness (or

disability), social assistance (or poverty alleviation), health (or medical care) problem,

environmental policy and other problems.

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V. 1. 2. Industry policy.

Industry policy means the government- sponsored economic program in which the

public and private sectors coordinate their effort to develop new technologies and industries.(Industrial policy, n.d.). Government provides finance, capital for business. Government uses

industry policy to create relationship between state and business with purpose develop national

economy.

V. 2. Vietnams social welfare policy.

In 2000, social welfare of Vietnam holed 24 % in total sate budgets. From 200 to 2008,

budgets for social welfare increase to 30% in total sate budgets (Social welfare will determine

the economic recovery, 2009). It proves that Vietnam interests so much to social welfare policy.In social welfare, Vietnam pays attention to unemployment, poverty alleviation, and basic

education and gender equality problems.

V. 2.1 Vietnams social welfare policy on unemployment

According to the accounting, the first quarter in 2009, Vietnam had over 110 thousand

people are the unemployed (Social welfare will determine the economic recovery, 2009).

Therefore, the government needs solutions to help the unemployed. For example: Hanoi has

decided to allocate an additional 200 billion VND (11.24 million USD) to shore up socialwelfare, targeting farmers who lost land to investment projects, and workers made redundant by

the economic slowdown. In which, over 157 billion VND will be used to helps workers who

lost their jobs because of economic slowdown, through fund of city for jobs generation and

recruitment activities for people lost job at districts and a major project on loan to 1,000 poor

households (Hanoi allocates 200 billion VND to social welfare).

V. 2. 2. Vietnams social welfare policy on poverty alleviation.

Vietnam is implementing so much poverty alleviation to help Vietnamese improve theirlife. Beside plan creates job for 1.7 million laborers in the period 2011-2020 to help them

enhance their life on finance, the government continues having social welfare policies to increase

effectively in poverty alleviation such as using nearly 8.3 billion VND is added to the poverty

alleviation budget in order to reduce 2% of the total number of poor household and build houses

for poor families. In addition, the department of labor, and other organization carry out project to

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assist poor household in breeding cows and planting trees in My Duc, Ung Hoa, Quoc Dai, Ba Vi

and Thach That (Hanoi allocates 200 billion VND to social welfare, 2009).

V. 2. 3. Vietnams social welfare on basic education and gender equality.

Basic education and gender equality problem are important problem which the

government invests and pay attention to develop, because quality of education concern with

ability of human resources. If Vietnam wants to have high quality on human resources, they

should invest into developing education, training programs.

In plan 2008-2015, the projects assist apprentices on tuition fees and make good policy to

create good conditions for student debts, student apprentices under the decision 157/ Q-TTg of

the Prime minister (Ensuring social welfare with solving job for laborers, 2009). In addition, thegovernment also assists education, training programs about finance such as Hanoi has decided to

use 200 billion VND to shore up social welfare, in which, vocational training establishments also

receive subsidies from the funding (Hanoi allocates 200 billion VND to social welfare, 2009).

V. 3. Assess impact of Vietnams social welfare.

V. 3. 1. Assess impact of Vietnams social welfare on Vietcombank.

Beside social welfare policy of government, Vietcombank also agree with these policies.

In addition, Vietcombank obey and join into social welfare policy. In the company, Vietcombank

ensure safety working conditions for employees. More over, Vietcombank also pay attention to

training their staffs. Especially, Vietcombank increases scale of labor to 10% in 2009 (Report

from broad of management about activities in 2008 and orientation in 2009, 2008). It means

Vietcombank creates opportunities for laborers have jobs.

Furthermore, Vietcombank also joins many social activities such as putting low interest

rate 200 billions VND to the bank for the Poorer, sets aside a part of allowance fund to support

the school for disable and orphan children, donated 5 billions VND to build house of love,memorial for Ben Duoc- Cu Chi revolutionary martyrs and children park in Nha Trang City.

Vietcombank contributes annually more than 100 million VND to the fund Vietnamese Children,

gifts to the association of aged people and other activities (Social activities, 2001). All activities

demonstrate that Vietcombank has many contributions on implementing social welfare policies.

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V. 3. 2. Assess impact of Vietnams social welfare on related industry and wider community.

In 2009, Vietnams social welfare had good impaction to related industry and wider

community. To keep effective of social welfare policies with industries, the Bank for investmentand development of Vietnam used 272 billion VND to use for social welfare in the period 2009-

2010 to assist reducing poor households (272 billion VND use for goal of social welfare in

period 2009-2010). In the plan, social welfare policies assist some industries such as educated

industry, medical industry, building industry and other industries with total money is 122 billion

VND (272 billion VND use for goal of social welfare in period 2009-2010). Therefore, social

welfare policies help many industries pass through economic crisis. From that, it also helps

keeping growth rate of country and improving the life of people. In 2008, poor household rate

reduced to 13.1% and 1.615 million people have job (Ensuring social welfare with solving job

for laborers, 2009).

V. 4. Vietnams industrial policy.

Vietnam is a socialist country and developing country. Nearly time, Vietnam became a

member of WTO (World trade organization). When Vietnam joined into WTO, they have both

advantage and disadvantage points. With advantage points, Vietnam has opportunities on export

and import, attracting investment capital. However, Vietnam must already face to challenges

such as competitive product, competitive price with competitor from foreign country. In

addition, Vietnam must demonstrate their potential to keep existing in WTO. Therefore, Vietnam

should have good policies to help them exist in international market. One of policies is industrial

policy. According to Ngoc Minh Phan doctor said that Vietnam should be flexible to change

industry policies depend on budget subsidies to new industry policies depend on WTO law

(WTO and Industry policy, 2006).

Industrial policies include many problem such as investment in human, research&

development, and infrastructure development in Vietnam.

V. 4. 1. Vietnams industrial policy on investment in human.

Human is the best important element to make success. Therefore, Vietnam pays attention

so much investment in human. In period (2001-2005), Vietnam gave targets to trained and

educated about 25 thousand professions in the information technology industry. In addition,

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Vietnam enhanced training human resources with large scale satisfy educated conditions.

Specially, the decision 40/2000/QH10 dated December 19 th, 2000 told about increasing teach

and study foreign language, computing in the high school (Training plan for human resources todevelop information technology in Vietnam 2001-2005, 2006). These evidences demonstrate

Vietnam has a good preparation about human resources and they also continue improving quality

of education and train to develop more than level of human. From this reasons, industries of

Vietnam enhance effective in the work.

V. 4. 2. Vietnams industry policy on innovation

Innovation is important part in industry policy of Vietnam. Vietnam implements innovation

on more industries such education, industry, agricultural. In the agricultural, the governmentassists capital for farmers to invest transplant, equipment. In addition, the government increases

investing for research plants as enhance quality and amount of plant (Behind WTO with

agricultural and poverty in Vietnam, 2007). From innovation, Vietnam will develop strong point

of agricultural more than in international market. Moreover, innovation in agricultural help

enhance profits and improve the life of farmers about finance, spirit.

V. 4. 3. Vietnams industry policy on infrastructure development.

Infrastructure development problem is a problem which Vietnam interests so much. In

2008, Vietnam borrowed 500 million USD to develop infrastructure. In which, Vietnam invests

infrastructure development at Da Nang, project for developing electricity in the countryside, and

project for financial agricultural (Vietnam borrows 500 million USD to develop infrastructure,

2008). Infrastructure development is basis to develop industry in the future. Moreover, Vietnam

has a good infrastructure, they have enough condition to compare and attract investor into

Vietnam market.

V. 5. Impact of Vietnams industrial policy

V. 5. 1. Impact of Vietnams Industrial policy on Vietcombank

The industrial policy impacts Vietcombank through ways. For example: when Vietnam

borrowed money to infrastructure development with amount of money is 500 million, very big.

Each year, the government has money policy and fiscal policy so polices will link with bank

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system in which Vietcombank. Especially, Vietcombank is the leading commercial bank.

Therefore, Vietcombank will be impacted so much. Beside that, industry policy helps Vietnam

improve about infrastructure such as electricity, water, building, traffic. It means infrastructuresof Vietcombank also improve to create working condition better than for employees. In addition,

innovation in the industries will develop economic Vietnam. Therefore, Vietcombank also has

more conditions to expand scale of company such as expending 10 transaction offices to

branches and having new 70 transaction offices in 2009 (Report from broad of management

about activities in 2008 and orientation in 2009, 2008).

V. 5. 2. Impact of Vietnams industrial policy on related industry and wider community.

Industrial policy has important role in economic Vietnam. Its not only help Vietnam

attracts investment capital from foreign country through policies make good human resources,

infrastructure but also make increasing rate of economic growth and avoid reducing production

of industries. Moreover, industrial policy help the government of Vietnam understands economic

situation of enterprises. From it, the government evaluates to giving capital fund suitable for each

industries. For example: agricultural is strong point of Vietnam, so the government will interest

to find way develop agricultural such as Vietnam borrowed 500 million USD to invest three

projects in which agricultural hold one in three projects (Vietnam borrows 500 million USD todevelop infrastructure, 2008). The government can limit enterprises from board establish in

Vietnam or control them by industrial policy. For example: when business of Japan goes to

Vietnam marketing to sale electric product. However business of Japan must accept industrial

policy of Vietnam such as the tax in business. It will help electric product of Vietnam have

advantage when two kinds of product compete in Vietnam market.

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VI. The impact of macro economic policy (Fiscal and monetary policy)

measures and influence of the global economy on Vietcombank and

stakeholders in Vietnam.

VI. 1. The macroeconomic policies and its tools theory and impact of macroeconomic

polices on economic Vietnam.

Macroeconomic policies are any policy intended to influence the behavior of

macroeconomic variables, especially unemployment and inflation (Deardorffs glossary of

international economics, 2001). Macroeconomic policies include monetary and fiscal policies;

they concern things as price controls and incentives for economic growth.

Fiscal policies are the means by which a government adjusts its level of spending in

order to monitor and influence a national economy (Reem Heakal, n.d.). Fiscal policies impact

all enterprises through tax, VAT.

Monetary policy is the way that government, or central bank uses to control the supply of

money, rate of interest, cost of money (Monetary policy, n.d.) In addition, monetary policy and

fiscal policy help government control transfer foreign currency, have way avoid inflation and

exit crisis situation.

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VI. 2. Current situation and impact of Vietnams fiscal policy.

Economic world is dropping in economic crisis. Therefore, Vietnam applies capital

resources from fiscal policy use to compensate for the damage of economic crisis. Beside that, itlimits reducing consumption demand of private business and State Corporation. These ways

spend to help economic Vietnam exit difficult situation. The government uses 78,000 billions

VND to assist directly demand stimulating activities through interest rate, exempt from taxes and

other things. In addition, the government continues using 60,000 billion to assist indirectly

demand stimulating activities (limitation of monetary and fiscal policy in the demand stimulating

activities in Vietnam, 2009). As a result, growth rate of Vietnam is 3.9% at safe level, total

industrial production increase 5.1% and total sale and services also grow up 18.3%. The last,

fluctuated cost rate of consumption is 10 % (limitation of monetary and fiscal policy in the

demand stimulating activities in Vietnam, 2009). This result is passable good result demonstrate

that economic Vietnam is gradually steady state.

VI. 3. Current Situation and impact of Vietnams monetary policy.

In the situation, economy of the world is developing slowly and dropping in crisis.

Vietnam gives monetary policies in the demand stimulating situation. Monetary policies use to

expand supply of money with goal is still low interest rate to avoid declining opportunity costand investment capital. The state bank uses a way that is decrease the most risk in the loans and

controls interest rate of loans. The goal of state bank avoid and decrease stress or pressure

foreign currency. Therefore, economic Vietnam will be excited than before. Sale activities of

company also increase and bring effective for company operation. From result, it enhances

economic Vietnam to exit gradually crisis.

VI. 4. Impact of Vietnams fiscal and monetary policy on Vietcombank and

stakeholder.

In 2009, economic Vietnam is influenced by economic crisis and economic Vietnam

develops slowly. The government request financial ministry and bank industry with other

implement monetary and fiscal factory. In this situation, Vietcombank also implement policies to

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help the state control economic situation at the present. In the plan, Vietcombank must contacts

with ministries and industries to know and implement fiscal policies, monetary policy to suitable

with requirement of government. After that, Vietcombank continues controlling basic interestrate and interest rate of market by way: keeping stable basic interest rate at 7%/ year and

dividends, addition controls flexible monetary policies (Market interest rates will continue to

stabilize in the last months of year, 2009).

Fiscal and monetary policy also influence to stakeholder. For example: In the economic

crisis, the government applies the demand stimulating activities with control interest rate at

banks in which has Vietcombank. In the last months in 2009, the interest rate of Vietcombank

was 7 %/year. It reduced 3 % compare with beginning of year (Marketing interest rates will

continue to stabilize in the last months of year, 2009).

It means amount of customer gave money or used services of Vietcombank will reduce.

Therefore, profits of Vietcombank are also influenced. When profits reduce so it means dividend

of each stakeholder also decrease.

VI. 5. Global economy an global financial crises in US, EU, Japan

Globalization is increase economic interdependence of national economies (Global

economy, n.d.). Its the same process by which national economies become integrated.The global financial crisis began in 2008. In the recession situation, almost countries

have problem about economy such US, EU and Japan. With European Union, industrial

production reduced 1.9%. European car sales also declined 7.8% compared with last year. Retail

sales fell by 0.6% in June compare with May. And economic analysts said the crisis continues

raising and the risk of the euro also grow up. In the second quarter, the euro economic zone was

reported to have decrease by 0.2%. However, the EU organization continues dropping in crisis

again in the third quarter (Downfall of seven largest economies in 2008, 2009). In the market

downturn fall 2008, stocks in North America, EU, and other region went down by about 30%

compare with the beginning of year (Downfall of seven largest economies in 2008, 2009). Japan,

Hong Kong, Singapore and some countries went into crisis in third quarter in 2008 (Downfall of

seven largest economies in 2008, 2009).

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VI. 6. The influence on Vietnam economy, Vietcombank, stakeholders.

Vietnam is one of all countries drop in economic crisis. According to the data of general

statistics office, Vietnam GDP reduced 1%, and unemployment rate increases 0.35% in 2008 that

year began to influence from economic crisis at Vietnam (Influence of the economic crisis to

Vietnam, n.d). The economic crisis influence directly Vietnam. According to estimate plan, if

GDP rate in 2009 is 4.5% lower 2% than rate of plan , so it means 300 thousand people dont

have job (Influence of the economic crisis to Vietnam, n.d). Beside that, export and import also

decrease amounts and profits because economic Vietnam is staying financial crisis so Vietnam

market develops slowly, business activities also stagnant, and people will consider spending

money for important needs. More over, inflation can happen and monetary, fiscal policy has somany risks (Influence of the economic crisis to Vietnam, n.d).

The crisis influences indirectly to Vietcombank such as retail system of Vietcombank

dont develop right with plan in 2008. In the economic crisis, Vietcombank loses opportunities to

develop and have high profits. So that, dividend of stakeholders also reduce.

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Conclusion

Vietcombank is the leading commercial bank, and they always define mission, values, and

objective to develop their strong points. From this project, people have more knowledge about

Vietcombank such as influence of stakeholders in Vietcombank. Stakeholder includes 3 types:

internal, connected, external stakeholders. After that, we understand role of each kinds of

stakeholder and evaluate them by stakeholder mapping. Next, the report produces more

information about responsibilities of Vietcombank though social, environmental, management

responsibilities, ethics and business, and public relations and corporate image.Economic system was expressed by 3 factors of production: land, labor, and capital. As a result,

we know Vietnam how allocated resources and use them. Beside, the government Vietnam has

plans to use resources and give goal to develop economy from plan for each year. In the term of

social welfare and industrial policy, Vietcombank was influenced by government through two

policies. In addition, the report talks about the impact of macro-economic policy through

monetary and fiscal policies to economic Vietnam and Vietcombank. In the economic crisis, the

report deal with government of Vietnam applies two policies to help national economy exit the

crisis situation. And 2 policies: monetary and fiscal also have impaction with Vietcombank such

as : control interest rate and more problems.

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Recommendation.

Vietcombank is the best bank and famous. This recommendation is right because in the report

show reward of Vietcombank though years 1995, 2007, 2008. Vietcombank satisfy enough all

responsibilities. Vietcombank also one of important element to help government control financial

policies. In my opinion, If Vietcombank keeps image, goodwill and continues try to develop so

Vietcombank will one of 70 financial institutions in Asia in 2015-2020 as their plan.

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Reference

1. BPP professional education (2004) Business environment- 1st Ed, Great Britain by W M

Print

2. Civillawinfor (2008).Nhin lai qua trinh co phan hoa doanh nghiep nha nuoc o nuoc ta.

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