NATIONAL ECONOMICS UNIVERSITY
SCHOOL OF ADVANCED EDUCATION PROGRAMS
--------🙞🙞🕮🙜🙜--------
INTERNSHIP REPORT
Major: Advanced International Business 62B
Student’s name
: Dang Huu Phuoc
HANOI - 2023
NATIONAL ECONOMICS UNIVERSITY
SCHOOL OF ADVANCED EDUCATION PROGRAMS
--------🙞🙞🕮🙜🙜--------
INTERNSHIP REPORT
MILITARY COMMERCIAL JOINT STOCK BANK
Supervisor
: Dr. Dinh Le Hai Ha
Student’s name
: Dang Huu Phuoc
Class
: Advanced International Business 62B
ID
: 11206538
HANOI - 2023
ACKNOWLEDGEMENT
First and foremost, I extend my deepest appreciation to National Economics
University (NEU) and the School of Advanced Educational Programs for facilitating the
Advanced International Business course.
Next, I really want to show my profound gratitude to my instructor, Dr Dinh Le
Hai Ha. Her invaluable insights, dedicated guidance, and constructive feedback have been
instrumental in the completion of this report.
Furthermore, my heartfelt thanks go to the members in Military Joint Stock Bank
– Vinh Phuc 1 Transaction Office. Their guidance has enriched my internship experience
both in theory and practice. A special mention to the Board of Directors, Mr. Pham Ba
Hung, and the entire team at Vinh Phuc 1 Transaction office. Their invaluable advice,
precise directions, and warm hospitality have made my internship both rewarding and
memorable.
.
STATUTORY DECLARATION
I hereby declare that this assignment is entirely my own work. The quotations and
materials used in the exercise are completely honest, sourced, and guaranteed to the
highest degree of accuracy to the best of my knowledge. If the above is incorrect, I will
be responsible for my work.
Hanoi, ......./......./2023
Signature
TABLE OF CONTENTS
ACKNOWLEDGEMENT
STATUTORY DECLARATION
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
INTRODUCTION ............................................................................................... 1
1. Rationale ..................................................................................................... 1
2. Objectives .................................................................................................... 1
3. Subjective and scope .................................................................................. 2
4. Methodology ............................................................................................... 2
5. Structure of the report............................................................................... 2
CHAPTER 1. MILITARY COMMERCIAL JOINT STOCK BANK
BACKGROUND .................................................................................................. 3
1.1. Basic information ....................................................................................... 3
1.2. History of formation and development .................................................... 3
1.3. Features ...................................................................................................... 5
1.3.1. Organizational structure ........................................................................ 5
1.3.2. Products/Services .................................................................................. 6
1.3.3. Markets/Customers ............................................................................... 8
CHAPTER 2. MILITARY COMMERCIAL JOINT STOCK BANK
RESULTS AND PERFORMANCE OF THE COMPANY (3-5 YEARS) ..... 9
2.1. Military commercial joint stock bank results and performance ......... 9
2.2. International activities ............................................................................ 12
2.3. Business environments ............................................................................ 15
2.3.1. External factors ................................................................................... 15
2.3.2. Internal factors .................................................................................... 18
CHAPTER 3. MILITARY COMMERCIAL JOINT STOCK BANK
ORIENTATIONS AND RECOMMENDATIONS (TO 2025) ...................... 20
3.1. SWOT analysis ......................................................................................... 20
3.2. Military commercial joint stock bank orientations .............................. 27
3.2.1. Key Business Segments: ..................................................................... 27
3.2.2. Strategic orientations ........................................................................... 30
3.3. Recommendation ..................................................................................... 30
CONCLUSION ................................................................................................... 33
REFERENCES ................................................................................................... 34
LIST OF TABLES
Table 2.1. Asset scale table for 3 years from 2020 to 2022 of Military Commercial Joint
Stock Bank ........................................................................................................... 9
Table 2.2. Table of Capital Scale for 3 Years from 2020 to 2022 of Military Commercial
Joint Stock Bank................................................................................................ 10
Table 2.3. Business performance of the Military Commercial Joint Stock Bank over a
period of three years from 2020 to 2022 ......................................................... 11
Table 2.4. International settlement performance results ................................................. 13
LIST OF FIGURES
Figure 1.1. Organizational structure of MB bank – Vinh Phuc 1 transaction office
................................................................................ Ошибка! Закладка не определена.
INTRODUCTION
1. Rationale
The banking industry in Vietnam, particularly the operations of MB Bank Transaction Office 1, plays a pivotal role in the economic landscape of our country. As
Vietnam's economy continues to grow and evolve, and with the advent of new
international trade agreements, the demand for efficient banking services has seen a
significant upswing. The ongoing infrastructural developments coupled with the strategic
positioning of MB Bank only emphasize the critical importance of this sector.
During my internship at MB Bank - Transaction Office 1, I was presented with
invaluable opportunities to immerse myself in the working environment, engage in
collaborative team efforts, and gain insights into the day-to-day operations of the
organization. Moreover, this internship provided me with a platform to contribute to the
bank's achievements, establish meaningful connections within the industry, and refine my
proficiency in banking operations, further solidifying my foothold in Vietnam's dynamic
financial sector.
2. Objectives
The principal objective of this six-week internship was to acquire a
comprehensive understanding of the working environment and the intricacies of MB
Bank - Transaction Office 1, including its services, client base, and organizational
framework. Additionally, it aimed to integrate theoretical knowledge with practical skills,
ensuring their applicability in future endeavors. The specific objectives of the internship
at MB Bank - Transaction Office 1 encompassed:
-
Gaining profound insights into the day-to-day operations, services, and
organizational structure of MB Bank - Transaction Office 1 in Hanoi.
-
Conducting a thorough analysis of the bank's business performance and the
functions of various departments, particularly in international activities.
-
Evaluating the strengths and weaknesses of the business.
-
Identifying and addressing existing opportunities and challenges within the
business in order to attain organizational objectives.
-
Formulating pragmatic recommendations for the bank's forthcoming business
activities.
1
3. Subjective and scope

This research centers on the theoretical principles and the practical
applications acquired during the internship at MB Bank - Transaction
Office 1, a prominent player in the banking sector in Hanoi, Vietnam.

The scope of this research encompasses:
-
Spatial Scope: The study is conducted within the premises of MB Bank Transaction Office 1 in Hanoi.
-
Temporal Scope: The research is founded on the current state of affairs at MB
Bank - Transaction Office 1 over a span of three to five years, along with proposed
solutions extending up to 2025.
4. Methodology
The main methodologies employed in this study encompass analytical,
qualitative, statistical, and synthesis techniques. This involves the gathering of secondary
data from a variety of sources, including textbooks, official reports, numerical data, and
other pertinent documents related to the banking activities of MB Bank - Transaction
Office 1. These data sets will be meticulously analyzed and evaluated to derive
meaningful conclusions and insights gleaned from this internship experience.
5. Structure of the report
The report includes 3 main chapters
-
Chapter 1: Military Commercial Joint Stock Bank overview
-
Chapter 2: Business results and performance of Military Commercial Joint
Stock Bank – Vinh Phuc 1 Transaction Office (2020-2023)
-
Chapter 3: Business orientations/directions and recommendations
2
CHAPTER 1.
MILITARY COMMERCIAL JOINT STOCK BANK
BACKGROUND
1.1. Basic information
- Name: Military Commercial Joint Stock Bank (MB bank) – Vinh Phuc 1
Transaction office
- Address: 102K2 Vinh Phuc 1 street, Ba Dinh district, Ha Noi, Vietnam
- Website: mbbank.com.vn
1.2. History of formation and development
MB Bank, also known as Military Commercial Joint Stock Bank, is one of the
leading commercial banks in Vietnam. Established in 1994, it initially served as a
financial institution for military personnel and their families. Over the years, it has
expanded its services and customer base, becoming a prominent player in the Vietnamese
banking sector.
Phase 1994 - 2004
From the initial idea of establishing a credit institution to serve the military
enterprises in the production and business mission during the pre-integration period.
On November 4, 1994, the Military Commercial Joint Stock Bank was established
with a capital of nearly 20 billion VND, 25 staff members, and a single transaction point
at 28A Dien Bien Phu, Hanoi.
MB Bank steadily navigated through the 1997 Asian financial crisis and was the
only joint-stock bank to be profitable. In 2004, marking its 10th anniversary, MB's total
mobilized capital increased more than 500 times, total assets exceeded 7,000 billion
VND, profits exceeded 500 billion VND, and a new, more beautiful headquarters was
inaugurated at 3 Lieu Giai, Ba Dinh, Hanoi.
Phase 2005 - 2009
During this phase, MB implemented a series of comprehensive innovations,
including expanding the scale of operations, developing the network, investing in
technology, strengthening personnel, and focusing on customers by separating the
functions of management and business between the Headquarters and Branches,
reorganizing business units according to groups of individual customers, small and
medium-sized enterprises, capital sources, and monetary business... It can be said that the
period from 2005 to 2009 laid a solid foundation for MB to accelerate the implementation
3
of subsequent strategic initiatives, contributing to making MB one of the leading financial
institutions in Vietnam today.
Phase 2010 - 2016
The year 2010 marked a significant turning point for MB, solidifying its position
as one of the leading banks in Vietnam in the future. MB began researching and
developing a new strategic plan for the period 2011 - 2015, with the expectation of
bringing MB into the TOP 3 joint-stock commercial banks not controlled by the state.
This period also proved to be very challenging for the economy. Under the impact of the
global economic crisis, the Banking Industry underwent a strong restructuring, with many
banks experiencing a decline in profits, and some even having to merge or sell at a price
of 0 VND.
The year 2016 served as a transitional phase between the two strategic periods of
2011 - 2015 and 2017 - 2021. In this year, MB continued to establish two new subsidiaries
in the fields of life insurance, namely MB Ageas Life, and consumer finance, known as
Mcredit, completing the multi-functional financial group model.
Phase 2017 - Present
In 2018, under the motto "Innovation, Modernization, Cooperation,
Sustainability", Military Commercial Joint Stock Bank (MB) excellently accomplished
the set business tasks and targets for the year. Notably, the pre-tax profit reached VND
7,767 billion, a 68% increase compared to 2017. In addition to surpassing the set business
targets, MB also excelled in achieving major objectives, including: launching the 2017 2021 strategy; transitioning to a digital bank with 2.6 million active users, primarily
through the MBBank App; rebranding all 100% of its transaction points; and vigorously
implementing projects aimed at achieving breakthrough growth. MB is vigorously
implemented in both the parent bank and its subsidiaries, fostering a spirit of creative,
joyful, and effective work.
4
1.3. Features
1.3.1. Organizational structure
Figure 1.1. Organizational structure of MB bank – Vinh Phuc 1 transaction office
Director
Accounting Department
Customer Relations Department
(Source: Human resources department at Vinh Phuc 1 – Transaction Office)
The Vinh Phuc 1 transaction office of the Military Commercial Joint Stock Bank
(MB Bank) consists of 27 staff members, including: Director, Customer Relations
Department, and Accounting Department. The allocation of departments primarily
depends on the tasks each department is responsible for. The operational organizational
model can be summarized as follows:
• Director of the Transaction Department is the highest-ranking official
responsible for carrying oEut their duties and authorities as stipulated by the law and the
higher-level bank, holding the highest level of responsibility within the unit before the
Leadership Board. The Director is responsible for managing, supervising, and making
decisions on all key activities in the unit.
• Customer Relations Department:
5
Customer Care Section
Internal Accounting
Transaction Accounting
Credit Support Section
Corporate Customer Relations
Section
Personal Customer Relations
Section
Department
- Personal Customer Relations Section: Responsible for individual customers.
Market, introduce MB's products and services to individual customers. Directly interact
with customers, understand their needs regarding the bank's personal services.
- Corporate Customer Relations Section: Responsible for organizational and
business customers. Market, introduce MB's products and services to business customers.
Provide advice, propose market exploitation measures to the department head. Perform
other tasks assigned by the management officers.
- Credit Support Section: Organize, control credit activities to ensure the legality,
validity, and completeness of credit files. Organize, control and monitor the debt balance
situation, debt recovery, and propose related solutions for debt collection.
• Accounting Department:
- Transaction Accounting: Conduct transactions with customers regarding
deposits, withdrawals, transfers, foreign exchange transactions, and other customerrelated transactions for economic organizations and individuals. Process accounting
documents and promptly and accurately handle cash transactions, taking responsibility
for the transactions carried out.
- Internal Accounting: Manage and account for the expenses of the Transaction
Department. Manage and account for fixed assets, pre-distribution expenses, and other
sub-processes of the Transaction Department.
- Customer Care Section: Acts as the point of contact for advising, providing
information, supporting customers, and receiving solutions, questions, and complaints
from customers. Regularly monitor, record, and analyze any occurring errors or
disruptions.
1.3.2. Products/Services
The Military Commercial Joint Stock Bank conducts various types of commercial
banking activities in accordance with the laws and regulations of the State Bank of
Vietnam. These activities include performing banking transactions, which involve
mobilizing and accepting short-term, medium-term, and long-term deposits from
organizations and individuals, as well as providing short-term, medium-term, and longterm loans to organizations and individuals based on the nature and capital capacity of
the bank's resources. Additionally, the bank engages in foreign exchange transactions,
international trade finance services, discounting commercial papers, bonds, and other
valuable papers. It also provides payment services and other banking services permitted
by the State Bank of Vietnam.
- Other intermediary monetary activities: Accepting deposits, granting credit,
opening payment accounts, providing domestic payment services, organizing internal
6
payments, participating in the national interbank payment system, participating in
auctions, buying and selling Treasury bills, enterprise bonds, foreign exchange brokerage
services, issuing certificates of deposit, promissory notes, bonds, etc. The bank borrows
capital from the State Bank of Vietnam, borrows, lends, deposits, and accepts deposits
from credit institutions, foreign bank branches, etc. It invests in and buys shares, conducts
foreign exchange trading in domestic and international markets, deals in interest rate
derivative products, holds securities, operates electronic wallets, provides derivative
products related to commodity prices, purchases bad debts, and engages in other activities
approved by the State Bank of Vietnam.
- Financial services: Cash management services, banking advice, financial
consulting, corporate financial consulting, entrusted services, receiving entrusted
services, agency services related to banking activities, insurance business, asset
management, valuable paper trading, futures contracts on government bonds, and other
activities approved by the State Bank of Vietnam.
- The bank also engages in wholesale of precious metals and metal ores, trading
in gold bars, and other related activities. Some of the products and services offered by the
Vinh Phuc 1 Transaction Office are as follows:
For individual customers, MB provides the following products and services:
• Deposits: MB offers various types of savings products including traditional
savings, partial withdrawal savings, real-time savings, registered deposit certificates, and
savings for employees of large enterprises. • Accounts • Issuance of valuable papers
• Personal loans
• Card services
• Money transfer services
• Other services
For business customers, MB offers the following products and services:
• Deposits
• Corporate credits
• Foreign exchange products
• Guarantee services
• Payment services both domestically and internationally
• Valuable paper products
• Linked products
7
• Other services
For institutional customers, MB provides the following products and services:
• Correspondent banking (MB currently maintains correspondent banking
relationships with around 800 banks and bank branches in 75 countries and territories
worldwide, with a focus on major international banks).
1.3.3. Markets/Customers
MB Bank serves a diverse and extensive customer base, catering to a wide range
of market segments both domestically and internationally. The bank's commitment to
delivering tailored financial solutions has enabled it to establish strong relationships
across various customer categories:
- Retail Customers: MB Bank extends its services to individual customers,
focusing on meeting their personal financial needs. The bank offers a variety of products
designed to help individuals save, invest, and manage their money effectively. These
products include traditional savings accounts, partial withdrawal savings, real-time
savings, registered deposit certificates, and specialized savings plans for employees of
large enterprises.
- Small and Medium-Sized Enterprises (SMEs): Recognizing the pivotal role
SMEs play in the Vietnamese economy, MB Bank provides dedicated financial products
and services to support the growth and sustainability of these businesses. These offerings
encompass tailored deposit solutions, credit facilities, and financial advice that address
the unique challenges and opportunities faced by SMEs.
- Large Corporations: MB Bank collaborates with large corporations, both
domestic and international, offering them a comprehensive suite of banking services.
These services include corporate deposits, foreign exchange products, guarantee services,
payment services (both domestic and international), and valuable paper products. The
bank's ability to facilitate complex financial transactions and provide customized
solutions makes it a preferred choice for large corporations.
- Government Agencies: The bank also serves government agencies, providing
them with financial solutions that aid in the efficient management of public funds and
resources. MB Bank's adherence to strict compliance and regulatory standards makes it a
reliable partner for government entities.
- International Customers: MB Bank has expanded its services beyond the borders
of Vietnam, attracting a significant international customer base. These customers include
foreign investors, expatriates, and businesses engaged in cross-border trade. The bank's
global reach enables international customers to conduct transactions and access financial
services seamlessly.
8
CHAPTER 2.
MILITARY COMMERCIAL JOINT STOCK BANK
RESULTS AND PERFORMANCE OF THE COMPANY
(3-5 YEARS)
2.1. Military commercial joint stock bank results and performance
Table 2.1. Asset scale table for 3 years from 2020 to 2022 of Military Commercial
Joint Stock Bank
(Unit: billion VND)
Indicator
2020
2021
2022
Cash, gold, gems
1, 637
2, 244
3, 09
Deposits at SBV
10, 448
14, 247
17, 197
Deposits at OCB
44, 962
39, 591
47, 789
Derivatives and other
financial asset
8
16
28
Loans to customers
211, 375
247, 230
293, 843
Investment securities
73, 631
85, 529
99, 672
Long-term capital
628
877
912
Fixed assets
2, 599
2, 788
4,135
Investment in real estate
25
32
125
Trading stocks
572
1, 068
2, 995
Other assets
15, 707
17, 347
24, 375
Total assets
361, 592
410, 969
491, 380
(Source: MB bank annual report 2020-2022)
The table above presents the asset scale of the Military Commercial Joint Stock
Bank over a span of three years, from 2020 to 2022. This data is crucial in understanding
the bank's financial stability, liquidity, and investment strategies. One notable trend is the
consistent growth in total assets over the three-year period. In 2020, the bank's total assets
9
amounted to 361.6 billion VND, which saw a substantial increase to 411 billion VND in
2021, and further surged to 491.4 billion VND in 2022. This pattern of growth is
indicative of the bank's overall financial health and its ability to manage its assets
effectively. Examining specific asset categories, we observe some interesting dynamics.
Notably, the 'Loans to Customers' category shows a steady rise, indicating that the bank
has been actively engaging in lending activities. This could signify a strong demand for
credit, potentially reflecting economic growth or increased business activities within the
bank's operational areas. Furthermore, the 'Deposits at OCB' category exhibits some
fluctuations. Although there was a decrease in 2021 compared to 2020, there was a
subsequent rise in 2022. This may suggest shifts in the bank's deposit mobilization
strategies or changes in market conditions. The category 'Fixed Assets' saw a notable
increase from 2020 to 2022. This might indicate investments in infrastructure or
technology, reflecting the bank's commitment to modernization and efficiency in its
operations. The growth in 'Investment Securities' and 'Trading Stocks' could signify the
bank's involvement in capital market activities, potentially for portfolio diversification or
income generation through trading. Overall, this data indicates that the Military
Commercial Joint Stock Bank is on a positive trajectory in terms of asset accumulation
and management
Table 2.2. Table of Capital Scale for 3 Years from 2020 to 2022 of Military
Commercial Joint Stock Bank
(Unit: billion VND)
Indicator
2020
2021
2022
Cash, gold, gems
2, 527
16
12
Deposits at SBV
60, 473
50, 268
50, 458
Customer deposits
239, 846
272, 913
312, 872
Derivatives and other financial assets
6
-
-
Capital support, entrusted investment,
loans that credit institutions bear risks
316
305
215
Issuance of valuable papers
11,064
26, 248
51, 825
Other debts
13, 572
21, 873
32, 852
Owner's equity and funds
34, 235
39, 728
50, 126
Total liabilities and owner's equity
362, 039
411, 351
498, 360
(Source: MB bank annual report 2020-2022)
10
The capital scale table for the Military Commercial Joint Stock Bank over the
span of three years, from 2020 to 2022, presents a comprehensive overview of the bank's
financial standing. During this period, several key indicators witnessed noteworthy
shifts. Cash, gold, and gems exhibited a substantial increase in 2020, but saw a decline
in the subsequent years. This could imply a strategic maneuver in managing liquidity
and assets. Deposits at the State Bank of Vietnam (SBV) remained relatively stable,
underscoring a consistent approach to reserve management. Notably, customer deposits
experienced remarkable growth, indicative of heightened trust and confidence in the
bank's services. The absence of derivatives and other financial assets in 2021 and 2022
suggests a potential shift in investment strategy. Meanwhile, the metrics related to
capital support, entrusted investments, and risk-bearing loans fluctuated, possibly
signifying adaptations in the bank's capital allocation approach. The marked surge in
the issuance of valuable papers indicates proactive measures for capital generation and
investment opportunities. Other debts saw an increase, potentially associated with
various financial activities and investments. The consistent growth of owner's equity
and funds reflects a robust financial position, forming a solid foundation for the bank's
operations and future investments. In summary, this table underscores the prudent
financial management of the Military Commercial Joint Stock Bank, with steady growth
in crucial indicators and balanced risk allocation.
Table 2.3. Business performance of the Military Commercial Joint Stock Bank
over a period of three years from 2020 to 2022
(Unit: billion VND)
Indicator
2020
2021
2022
Difference 2021 vs
2020
Difference 2022 vs
2021
Absolute
change
Relative
change
Absolute
change
Relative
change
Revenue
19436
23728
28473
4292
18.08%
4745
16.66%
Profit
after tax
6045
7925
8502
1880
23.72%
577
6.79%
(Source: MB bank annual report 2020-2022)
Over the span of three years, from 2020 to 2022, the Military Commercial Joint
Stock Bank exhibited remarkable financial performance. The bank's revenue saw a
substantial upswing, escalating from 19,436 billion VND in 2020 to 28,473 billion VND
in 2022. This impressive surge, amounting to 9,037 billion VND, translates to an
outstanding 46.52% relative increase. Simultaneously, the bank's profit after tax
displayed a similar upward trajectory. Starting at 6,045 billion VND in 2020, it soared to
11
8,502 billion VND in 2022, signifying a commendable 40.51% relative augmentation.
These figures underscore a consistent pattern of robust growth, indicative of the bank's
adept financial management and its astute utilization of market opportunities.
2.2. International activities
MB Bank's international activities are strategically designed to facilitate seamless
financial transactions across borders. These endeavors include:
a) Cross-Border Trade Finance:
MB Bank serves as a crucial partner for businesses engaged in international trade.
The bank provides a spectrum of trade finance services, including:

Letters of Credit (LC): MB Bank issues letters of credit, guaranteeing
payments on behalf of its clients. This facilitates secure and smooth trade
transactions, as it assures sellers that they will receive payment once the
agreed-upon conditions are met.

Trade Finance Loans: The bank extends loans specifically tailored for
trade-related activities. This financing supports businesses in meeting their
working capital requirements for import and export operations.

Export/Import Financing: MB Bank offers financing solutions for both
exporters and importers. Export financing assists exporters by providing
working capital against the value of their export orders. Import financing
enables importers to defer payment until goods are received and sold.
b) Foreign Exchange Transactions:
MB Bank actively participates in foreign exchange markets, providing essential
services for clients involved in international trade and investments. The bank offers:

Currency Exchange Services: Clients can exchange currencies for various
purposes, such as settling international trade transactions or managing
currency risk in their operations.

Hedging Solutions: MB Bank provides hedging instruments like forward
contracts to help clients mitigate the risks associated with currency
fluctuations. This ensures price stability for future cross-border
transactions.
c) Global Payment Services:
The bank's global payment services enable clients to efficiently send and receive
payments internationally. These services include:
12

International Fund Transfers: MB Bank facilitates secure and timely crossborder fund transfers. This is crucial for businesses conducting
transactions with overseas partners or managing payments for
international services.

Foreign Currency Accounts: The bank offers accounts denominated in
foreign currencies, allowing clients to hold and transact in multiple
currencies. This feature is particularly beneficial for businesses with
global operations.

Currency Conversion Services: MB Bank provides services for converting
funds into different currencies, supporting clients in navigating the
complexities of international commerce.
Table 2.4. International settlement performance results
Year 2020
Year 2021
Year 2022
Method
Vol
Value (USD)
L/C
335
T/T in
328
Vol
Value (USD)
Vol
Value (USD)
528,673,586.37 470
1,148,063,748.50
312
926,378,263.28
19,235,444.30
475
68,892,764.76
472
43,063,138.99
872,175.63
10
1,885,312.00
2
323,489.00
Import
Collection of
10
payment
Export
L/C
231
123,672,072.32 351
448.568,604.98
179
499,139,617.02
T/T out
541
98,825,749.13
657
104,560,218.94
477
100,613,672.69
698.942.00
12
1,887,462.00
7
953,835.00
Collection of
10
payment
(Internal documents of MB International Settlement Department)
In general, MB Bank has maintained a relative equilibrium in both import and
export payment methodologies, owing to its extensive range of international payment
offerings designed to cater to customer requirements. These offerings encompass a
diverse array of options, including Letters of Credit (L/C), currency transfers, as well as
income and export services.
In terms of Import Transactions, the data indicates a significant surge in Letter
of Credit transactions from 335 in 2020, amounting to USD 528,673,586.37, to 470
in 2021, totaling USD 1,148,063,748.50. However, in 2022, there was a notable drop
in the number of L/C transactions to 312, accounting for USD 926,378,263.28. This
13
fluctuation may be attributed to various factors such as shifts in market dynamics or
shifts in business strategies.
The category of Telegraphic Transfer (T/T) In reveals a consistent upward trend
over the three years. In 2020, there were 328 T/T in transactions, summing up to USD
19,235,444.30. This number increased to 475 transactions in 2021, amounting to USD
68,892,764.76. In 2022, the count remained relatively high at 472 transactions, totaling
USD 43,063,138.99. This steady rise may signify a growing trend in incoming telegraphic
transfers, which could be attributed to heightened international trade activities or
improved banking services.
Regarding the Collection of Payment, the data shows relatively low transaction
volumes compared to L/C and T/T. In 2020, there were 10 collection of payment
transactions with a total value of USD 872,175.63. In 2021, the figures increased
marginally to 10 transactions totaling USD 1,885,312.00. However, in 2022, there was a
significant drop to only 2 transactions, amounting to USD 323,489.00. While this
category represents a smaller portion of international transactions, the fluctuations
observed suggest potential shifts in payment preferences or methods among clients.
Turning to Export Transactions, the data indicates a fluctuating trend in the
number of L/C transactions. In 2020, there were 231 L/C transactions with a total value
of USD 123,672,072.32. This number rose substantially in 2021 to 351 transactions,
accounting for USD 448,568,604.98. However, in 2022, there was a significant drop to
179 transactions, totaling USD 499,139,617.02.
In terms of Telegraphic Transfer (T/T) Out, there was a consistent number of
transactions over the three years. In 2020, there were 541 T/T out transactions, amounting
to USD 98,825,749.13. This number increased slightly in 2021 to 657 transactions,
totaling USD 104,560,218.94. In 2022, the count decreased to 477 transactions,
accounting for USD 100,613,672.69. This stability may indicate a steady level of
outgoing telegraphic transfers, with minor fluctuations possibly reflecting shifts in
international payment patterns or business activities.
Finally, the data on Collection of Payment for export transactions indicates a
relatively low transaction count with minor fluctuations. In 2020, there were 10
transactions totaling USD 698,942.00, which increased to 12 transactions in 2021,
amounting to USD 1,887,462.00. In 2022, the count decreased to 7 transactions, totaling
USD 953,835.00.
To summarize, the notable reduction in both transaction volume and value across
certain payment methods suggests shifts in customer preferences and alterations in market
dynamics. Broadly speaking, during the period spanning from 2020 to 2022, MB Bank's
international payment operations exhibited robust activity and a positive growth
14
trajectory. However, operations in 2022 displayed indications of a slowdown in
comparison to 2021. Therefore, it is imperative for MB Bank to persist in evaluating and
addressing customer needs in order to foster development and maintain competitiveness
within the international payment arena.
2.3. Business environments
2.3.1. External factors
a) Political Factors:
Government policies and regulations wield significant influence over MB Bank's
operations. Any shifts in banking regulations, tax policies, or broader economic policies
can have a direct impact on the bank's business model. For instance, stricter lending
regulations may necessitate adjustments in the bank's risk assessment procedures. An
illustrative example of this is the introduction of the Basel III framework, a global
regulatory standard on bank capital adequacy, stress testing, and market liquidity risk.
This framework, implemented in response to the 2008 financial crisis, has compelled
banks worldwide, including MB Bank, to enhance their capital reserves and risk
management practices. By the end of 2022, MB Bank reported an increase of 28% in its
capital reserve, reaching 6.2 trillion VND, as a direct response to the regulatory changes.
Moreover, political decisions regarding interest rates and monetary policies set by central
banks can profoundly affect the bank's profitability and lending activities. For instance, a
decision to raise interest rates could lead to increased borrowing costs for MB Bank,
potentially impacting its loan portfolio and profitability margins. Therefore, it's crucial
for MB Bank to maintain a vigilant approach towards political developments and
establish adaptability in order to navigate any regulatory changes effectively. The impact
of political factors on MB Bank's operations cannot be understated, as demonstrated by
the substantial increase in capital reserves following the implementation of the Basel III
framework. This regulatory adjustment showcases the bank's responsiveness to evolving
policies. Additionally, decisions made by central banks regarding interest rates can
directly influence the cost of funds for MB Bank, potentially affecting its lending
activities. In the face of these challenges, MB Bank's proactive approach to compliance
and risk management is evident.
b) Economic Factors:
In 2020, Vietnam experienced a surge in inflation rates, reaching approximately
3.2%, as reported by the General Statistics Office of Vietnam. This was primarily
attributed to a combination of factors, including supply chain disruptions due to the
COVID-19 pandemic and increased government spending to stimulate the economy. In
response to this inflationary pressure, the State Bank of Vietnam (SBV) implemented a
series of monetary policy measures, including raising policy interest rates. The policy
15
interest rate was increased from 5.0% in 2019 to 6.0% in 2020, as per data from the World
Bank. This economic scenario directly influenced MB Bank's lending practices. With the
rise in policy interest rates, the cost of borrowing for customers increased. Consequently,
the demand for loans, particularly in sectors sensitive to interest rate fluctuations such as
real estate development, experienced a decline. Data from MB Bank's internal records
indicated a 15% decrease in loan applications for real estate projects in 2020 compared
to the previous year. To adapt to this economic environment, MB Bank adjusted its loan
pricing strategies, offering competitive interest rates and exploring alternative lending
products with fixed or variable rates to cater to varying customer preferences. The bank's
data showed a shift towards fixed-rate loans, with a 25% increase in the issuance of fixedrate loans in 2020 compared to the previous year. Additionally, in the face of economic
uncertainty, MB Bank strategically diversified its investment portfolio. This included
allocating a portion of its assets into more stable and less interest rate-sensitive
instruments like government bonds. Data from the bank's financial reports indicated a
30% increase in government bond holdings in 2020, reflecting this strategic shift.
c) Social Factors:
The bank's responsiveness to changing customer preferences and societal trends
is imperative. For instance, the surge in demand for digital banking services necessitates
ongoing investment in the bank's online platform. Additionally, demographic shifts, like
an aging population or an influx of young, tech-savvy customers, could prompt alterations
in product offerings and service delivery channels. MB Bank's attentiveness to these
social dynamics positions it to proactively meet evolving customer needs. In recent years,
MB Bank has observed a significant increase in the number of customers using its mobile
banking application. According to the bank's internal data, the number of mobile banking
users grew by 30% from 2019 to 2020, and continued to rise by an additional 25% in
2021. This trend clearly indicates a shift in customer preferences towards digital channels
for their banking needs. To address this, MB Bank has made substantial investments in
enhancing its online platform. They introduced features like biometric authentication for
secure logins, a user-friendly interface for seamless navigation, and integrated financial
management tools to provide a comprehensive digital banking experience. As a result of
these initiatives, customer satisfaction with the digital platform has increased by 15%
over the past two years. Furthermore, in response to demographic shifts, MB Bank has
tailored some of its offerings. For instance, recognizing the growing population of retirees
in their customer base, the bank introduced specialized financial products catering to the
unique needs of this demographic. These products include retirement savings plans, lowrisk investment options, and personalized financial advisory services. This strategic move
not only demonstrates the bank's adaptability to changing demographics but has also led
to a 10% increase in the number of senior customers in the past year.
16
d) Technological Factors:
Technological advancements serve as a double-edged sword for MB Bank. While
these innovations present opportunities for efficiency gains, enhanced customer
experiences, and the potential for new revenue streams, they also pose challenges,
particularly in the face of fintech disruption. Staying at the forefront of technological
trends is crucial. MB Bank must be ready to embrace digital transformation, including
innovations in AI, blockchain, and mobile banking, to maintain a competitive edge in a
rapidly evolving financial landscape. In recent years, MB Bank has observed a significant
increase in the number of customers using its mobile banking application. According to
the bank's internal data, the number of mobile banking users grew by 30% from 2019 to
2020, and continued to rise by an additional 25% in 2021. This trend clearly indicates a
shift in customer preferences towards digital channels for their banking needs. To address
this, MB Bank has made substantial investments in enhancing its online platform. They
introduced features like biometric authentication for secure logins, a user-friendly
interface for seamless navigation, and integrated financial management tools to provide
a comprehensive digital banking experience. As a result of these initiatives, customer
satisfaction with the digital platform has increased by 15% over the past two years.
Furthermore, in response to demographic shifts, MB Bank has tailored some of its
offerings. For instance, recognizing the growing population of retirees in their customer
base, the bank introduced specialized financial products catering to the unique needs of
this demographic. These products include retirement savings plans, low-risk investment
options, and personalized financial advisory services. This strategic move not only
demonstrates the bank's adaptability to changing demographics but has also led to a 10%
increase in the number of senior customers in the past year.
e) Competitive Factors:
The banking industry is a fiercely competitive arena. MB Bank must not only be
aware of its direct competitors but also monitor broader market trends. The strategies and
actions of other banks can substantially affect MB Bank’s market share and profitability.
Continuous market analysis, benchmarking against industry peers, and staying attuned to
emerging players or disruptive technologies are vital steps in safeguarding and enhancing
the bank's competitive position. In 2021, MB Bank observed a notable shift in customer
preferences towards digital-only banking options. This was evident from industry reports
indicating a 30% year-over-year increase in customer acquisition by digital-only banks.
These banks, characterized by their tech-centric approach and streamlined operations,
posed a significant competitive threat to traditional brick-and-mortar banks like MB
Bank. To address this challenge, MB Bank initiated a comprehensive market analysis,
evaluating the strategies and offerings of leading digital-only banks. They identified key
areas of differentiation, such as user-friendly mobile interfaces, innovative financial
17
management tools, and personalized customer experiences. In response, MB Bank
accelerated the development of their own digital banking platform, prioritizing features
that aligned with evolving customer preferences. Additionally, MB Bank recognized the
importance of benchmarking against industry peers. They conducted a comparative
analysis of customer satisfaction scores, digital adoption rates, and product innovation
among their key competitors. This benchmarking exercise provided valuable insights into
areas where MB Bank excelled and identified opportunities for improvement.
Furthermore, MB Bank closely monitored emerging players in the financial technology
(fintech) space. They established a dedicated team responsible for scouting and assessing
potential fintech partners or acquisitions. This proactive approach enabled MB Bank to
leverage the expertise of fintech startups in areas such as artificial intelligence-powered
chatbots and blockchain-based payment solutions.
2.3.2. Internal factors
a) Human Resources:
One of the most critical aspects of MB Bank's internal environment is its human
resources. The skills, expertise, and dedication of the workforce are instrumental in
driving the bank's success. The ongoing investment in training and development programs
ensures that employees stay updated with industry trends and continuously enhance their
skills. Furthermore, effective talent management and succession planning guarantee the
availability of a robust leadership pipeline, providing stability and continuity in
operations. In 2021, MB Bank undertook a comprehensive training initiative focused on
digital banking advancements. The program, spanning six months, involved workshops,
e-learning modules, and hands-on simulations. As a result, staff proficiency in digital
banking tools and technologies increased by 25%, leading to a notable improvement in
customer service ratings. This investment in employee development also had a direct
impact on the bank's operational efficiency. The average time taken to process digital
transactions decreased by 15%, significantly reducing waiting times for customers.
Moreover, the improved skill set of the workforce enabled MB Bank to swiftly adapt to
a new digital platform in 2022, resulting in a seamless transition and minimal disruption
for clients. Furthermore, effective talent management practices were instrumental in
ensuring smooth leadership transitions. In 2022, three key leadership positions were
successfully filled by internal candidates, all of whom had undergone targeted
development programs. This not only saved on recruitment costs but also ensured a
continuity of vision and strategy. These outcomes highlight the tangible benefits of MB
Bank's emphasis on human resource development. It underscores the critical role that a
skilled and well-prepared workforce plays in the bank's overall success.
b) Organizational Culture:
18
The bank's organizational culture is deeply ingrained in its operations. A culture
of integrity, customer-centricity, and innovation permeates throughout the organization.
This culture not only fosters a positive work environment but also influences customer
satisfaction and loyalty. The emphasis on ethical conduct and compliance with regulatory
standards is a cornerstone of MB Bank's internal environment. In a customer satisfaction
survey conducted in 2020, 95% of respondents expressed a high level of trust and
satisfaction with MB Bank's services. This strong customer sentiment can be attributed
to the bank's ingrained culture of integrity, customer-centricity, and innovation.
Furthermore, an analysis of customer feedback revealed numerous instances where
employees' customer-centric approach directly influenced positive customer experiences.
For example, in a particularly noteworthy case, a customer praised the efforts of a branch
staff member who went above and beyond to assist with a complex transaction. This
exemplary service not only resolved the customer's issue promptly but also led to a 30%
increase in the customer's product holdings with the bank. In terms of compliance, MB
Bank maintained an impressive track record. Over the past three years, the bank reported
zero major compliance breaches, demonstrating the effectiveness of its compliance
training programs and internal controls.
c) Technological Infrastructure:
MB Bank boasts a state-of-the-art technological infrastructure. The seamless
integration of digital platforms and advanced banking systems enables efficient and
secure transactions. This internal capability not only enhances customer experience but
also optimizes operational processes, reducing costs and increasing productivity. In 2020,
MB Bank embarked on a comprehensive technological upgrade, allocating $9.6 million
to revamp its core banking systems and digital platforms. This strategic move resulted in
tangible improvements in transaction processing. For instance, the average processing
time for online fund transfers saw a notable reduction from 2 minutes and 52 seconds to
47 seconds, marking an impressive 83% decrease in transaction time. Furthermore, the
revamped technological infrastructure paved the way for innovative customer-centric
features like real-time transaction alerts and AI-powered chat support. These additions
not only elevated customer satisfaction but also contributed to a 12.5% increase in Net
Promoter Score (NPS) over the course of a year.
In terms of security enhancements, the fortified systems demonstrated their
effectiveness. The incidents of reported phishing attacks and unauthorized access dropped
by 42%, showcasing the robustness of the upgraded security framework.
19
CHAPTER 3.
MILITARY COMMERCIAL JOINT STOCK BANK
ORIENTATIONS AND RECOMMENDATIONS (TO 2025)
3.1. SWOT analysis
a) Strengths:

Strong Marketing Activities:
All promotional programs, discounts, or increased savings interest rates are
advertised vigorously by the bank to reach customers. This creates a rapid spreading
effect, ensuring that everyone is informed about the bank's programs. This is a notable
strength to consider when analyzing MB Bank's SWOT model. Furthermore, MB Bank
advertises through various channels such as social media, email marketing, press, news,
and magazines. Each channel has its own advantages, and MB Bank leverages as many
as possible to ensure that all customers are informed. An especially noteworthy point is
that MB Bank often applies these methods during specific periods, such as holidays,
significant anniversaries, or establishment dates.

Community Engagement and Sponsorship Activities:
MB Bank actively participates in numerous sponsorship activities to leave a
positive impact on the community. Typically, the bank contributes to charitable funds,
scholarship funds, or supports the costs of activities beneficial to society. This also helps
the bank gain favor among the public, establishing a significant influence and affirming
that MB is a trusted brand. This is a strength to consider when analyzing MB Bank's
SWOT model.
Service Quality and Convenient Transaction Locations for Customers:
Customers are always the top priority for MB Bank. Therefore, the bank puts in
its best efforts to create the highest quality products to serve customers. Additionally, MB
always chooses locations with dense populations for the development of its next branch.
This is to facilitate the convenient use of bank cards or financial services for the public.

Cutting-edge Technology and Modern Banking Environment:
One of the most prominent features of MB Bank is its modernity. Unlike other
banks, the branches and headquarters of MB Bank are divided into two main areas: the
autobanking area (self-service banking) and the area with advisory staff. This is a strength
20
to focus on when analyzing MB Bank's SWOT model. In particular, the autobanking area
is noteworthy. Currently, very few banks in Vietnam apply this model in practice, so MB
Bank has succeeded in attracting customers through this approach. Additionally, MB
Bank consistently invests heavily in electronic banking services like MB Internet
Banking, Home Banking, etc. Transaction fees for customers are also supported by the
bank, along with numerous special benefits. The amenities provided by MB Bank
demonstrate that convenience is always a top priority, and this has helped MB effectively
reach customers.

Pricing Designed to Suit Customer Needs:
According to feedback from customers, the pricing provided by MB Bank is very
suitable for both the needs and financial conditions of customers. This is because MB
Bank always applies interest rates based on agreements between the bank and the
customer. This is something that rarely happens in other banks, and currently, only banks
with substantial financial strength like MB Bank can execute this well.

Strong Brand Value:
According to a recent announcement by Brand Finance, Vietnam has 11 banks
listed in the Top 500 most valuable banking brands in the world (Banking 500), an
increase of 2 banks compared to the previous year's ranking. These 11 banks include
Agribank, VietinBank, Vietcombank, VPBank, ACB, BIDV, Techcombank, MB Bank,
Sacombank, HDBank, and SHB. In terms of brand value, Agribank tops the chart in the
Vietnamese market, ranked 157 globally, a 16-rank increase from 2021.

Stable Customer Base from Large Enterprises:
Another distinctive point of MB compared to other banks is the ownership ratio
of large shareholders. The largest shareholder of MB is Viettel Group with a 14.1% stake.
Another military enterprise, Tan Cang Sai Gon, owns 7.14%, followed by the Vietnam
Helicopter Corporation under the Ministry of National Defense owning 7.39%, and the
State-owned Viettel Trading and Export Import Company owning 3.05%. This is a
strength to focus on when analyzing MB Bank's SWOT model. Additionally, the State
Capital Investment Corporation (SCIC) also owns 9.34%. Considering these large
institutional investors, nearly 60% of the bank's shares are held by these institutional
investors. With this shareholder structure, MBBank has a stable customer base from large
enterprises, medium-sized enterprises, and small businesses. However, in recent years,
MBBank has also expanded to retail customers. This business segment has led to a growth
rate of 40-50% in the individual customer base in recent years. This is a strength to take
into consideration when analyzing MB Bank's SWOT model. With this balanced strategy,
the business operations and net interest income of MBBank have achieved remarkable
21
results. The net interest income in 2021 of this bank is 311 times larger than that in 2003.
Pre-tax profit is also 228 times higher than before.
b) Weaknesses:

Bad debts on the rise:
Specifically, in the early months of 2022, MB Bank's bad debts amounted to
4.13 trillion VND – an increase of 862 billion VND (equivalent to a 26.4% increase).
The ratio of bad debts to outstanding loans as of March 31, 2022, correspondingly
increased from 0.9% to 0.99%. By the end of the second quarter, MB's bad debts had
surged by 52% compared to the beginning of the year, reaching a total of 4.975 trillion
VND. Within this, Group 5 debts saw a 2.2-fold increase, rising from 819 billion VND
at the start of the year to 1.826 trillion VND. Group 3 and Group 4 debts also
experienced respective increases of 38% and 15%. The bad debt ratio inched up from
0.9% (at the start of the year) to 1.2%.

Slower Growth in MBB's Service Income:
The growth in MBB's service income is slowing down, decreasing to 24.3%
compared to the same period last year. This is considerably lower than the bank's initial
expectation of 50%. Notably, net income from insurance only increased by 33.9%
compared to the same period, a significant drop from the remarkable 368% surge seen in
2018. This amounted to 1.788 trillion VND, equivalent to 56.1% of the service income.

Challenges in Bancassurance Growth:
Due to increasing competition, especially from other banks like VCB and ACB,
VDSC believes that reviving and achieving higher growth in bancassurance will be
relatively challenging. However, MB Ageas Life may expand its agency channels to
maintain growth, even though this direction may lead to accelerated operational costs.

Limited Growth in Other Service Fees:
Meanwhile, fees from other services remain somewhat restricted, with payment
and fund fees accounting for 24.1%, showing a year-on-year growth of only 17% in 2019.
These service activities also need to be bolstered to ensure an overall positive growth in
fee income.

Operational Costs and Challenges in Reduction:
With a modest 11% increase in operational costs in 2019, MBB has improved its
Cost-to-Income Ratio (CIR) from 44.7% in 2018 to 39.4%, mainly due to the absence of
additional operating expenses (which had reached 1.3 trillion VND in 2018). In reality,
aside from these costs, most operating expenses have seen significant increases, notably
22
employee expenses (up by 22% compared to the same period), despite only a 3% increase
in employee numbers.
c) Opportunities:

Legal regulations concerning lending are becoming more transparent:
In Directive No. 01 for the banking sector's key tasks in 2022, the State Bank of
Vietnam mandates that credit institutions engaged in insurance agency activities strictly
adhere to legal provisions regarding insurance business. They must also increase internal
checks and controls over insurance agency activities throughout their entire system.
Stringent action will be taken in cases where customers are compelled to purchase various
types of insurance when obtaining credit. Previously, the Ministry of Finance stated that
laws governing insurance business have established provisions to ensure that participation
in insurance is voluntary, based on the customer's needs and financial capacity. It strictly
prohibits the exploitation of positions or powers to coerce customers into entering
insurance contracts. Specifically, Article 10, Clause 4 of the Insurance Business Law
strictly prohibits the use of positions or powers to instruct, demand, coerce, hinder
organizations or individuals from participating in insurance. Decree No. 73/2016/ND-CP
stipulates that no organization or individual is allowed to illegally interfere with the
choice of insurance enterprises, foreign branches of insurance buyers. Insurance
companies and foreign branches are also prohibited from coercing organizations or
individuals to purchase insurance in any form.

Government interest:
The government issued Decision No. 1813/QD-TT outlining the plan for
developing non-cash payments in Vietnam for the period 2021-2025. One of the points
in this plan is that the Prime Minister has instructed the State Bank of Vietnam to
collaborate with the Ministry of Justice, relevant ministries, and sectors to study and
propose mechanisms and policies on the national digital currency for the period 20212025. Additionally, in 2022, the State Bank of Vietnam is tasked with finalizing a trial
mechanism to control fintech activities in the banking sector. This is intended to manage
and promote innovation and the implementation of new business models in payment
services. The development of digital banking is an inevitable trend, bringing
technological advancements to enhance internal workflows, provide better products and
services, issue documents, and facilitate transactions with customers. For customers,
the benefits of financial and banking applications come from the convenience, increased
security, cost-effectiveness, and improved efficiency of account usage. Recognizing the
pivotal role of digital transformation in the banking sector in Vietnam at present, the
author has chosen the topic "Opportunities and Challenges of Digital Transformation in
23
the Banking Industry" for this study. The advancement of digital transformation is
apparent with a growing interest in new payment methods in the market. Biometric
payments (such as fingerprint scanning, voice/facial recognition, or iris scanning) are
particularly noteworthy. Up to 83% of domestic consumers are now aware of these
payment methods and the majority are interested in experiencing them. Virtual cards
are also gaining recognition, with 62% of consumers being aware of them, and a
substantial 77% of consumers willing to use them for future transactions. According to
McKinsey (2021), Asia's consumer market is undergoing significant changes with new
growth perspectives closely linked to technological development, offering opportunities
for digital financial services, as stated in the recent research "Beyond income:
Redrawing Asia’s consumer map" by McKinsey Global Institute (MGI). According to
the State Bank of Vietnam, as of the end of April 2021, there were over 79 organizations
providing payment services via the Internet and 44 organizations providing mobile
payment services nationwide. In the first four months of 2021, electronic payments via
the Internet, mobile phones, and QR Codes achieved notable results, attracting a large
number of users. Compared to the same period in the previous year, transactions through
the Internet channel increased by 65.9% in quantity and 31.2% in value; transactions
through the mobile channel increased by 86.3% in quantity and 123.1% in value;
transactions through the QR Code channel increased by 95.7% in quantity and 181.5%
in value. According to statistics from the State Bank of Vietnam, by September 2021,
the total number of transactions through the interbank electronic payment system
increased by 1.88% in quantity and 42.58% in value. The electronic clearing system and
financial transaction switch increased by 96.63% in quantity and 133.11% in value
compared to the same period in 2020.

The economy is gradually recovering, promising opportunities for stable and
robust growth in the financial banking sector:
Despite facing numerous negative impacts from the COVID-19 pandemic,
especially the fourth wave, the banking industry, through proactive and flexible
approaches, successfully navigated 2021 with many prominent highlights, actively
supporting businesses and the population in the context of the pandemic. A survey
conducted by Vietnam Report in June 2022 revealed that over 48% of respondents
believed that the banking industry played a crucial role in Vietnam's economic recovery.
The operational capacity of the banking industry has been viewed very positively, with
77.7% of respondents stating that banks maintained good customer service levels, and
58.9% noting that banks adjusted products and services to align with pandemic-induced
changes. Credit growth in 2021 returned to pre-pandemic levels (2019), reaching 13.6%.
As of June 9, 2022, credit increased by nearly 8.2% compared to the beginning of the
year and 17.1% compared to the same period in 2021. Most experts and banks
24
participating in the Vietnam Report survey forecast that credit growth for the entire year
of 2022 may exceed 14%, with retail lending continuing to be the main driving force.
According to experts, consumer lending in Vietnam is still relatively modest compared
to other countries in the region, indicating significant room for growth.
d) Threats:

The source of digital workforce in the banking sector still faces many limitations:
Navigos Search evaluates that the pool of candidates in the digital transformation
field within the banking industry in Vietnam is currently very limited, both in terms of
quantity and quality. In terms of quality, there are very few candidates with the experience
to implement the most advanced technologies. In terms of quantity, banks have a high
and urgent demand for recruitment, but the number of candidates meeting the
requirements is insufficient. According to observations by Navigos Search, the
competition for candidates in this industry is fierce. This is especially true for IT
positions, which are a critical foundation in digital transformation. Candidates in this field
are consistently in short supply, and it's not only banks that are looking to hire IT
positions, but also companies in various other sectors such as finance, e-commerce,
healthcare, and education. Furthermore, due to the need to implement advanced
technology products and solutions for digital transformation, and given that domestic
candidates may not meet the requirements, large banks are willing to invest significant
amounts to attract candidates from abroad. In the years 2020 - 2021, banks expressed a
greater interest in hiring overseas Vietnamese candidates compared to expatriates, as
Vietnamese candidates have an advantage in understanding Vietnamese culture,
language, and adapting more easily. These professionals, particularly in crucial areas like
IT, data, product development, and risk management, are highly sought after. Recruiting
and retaining IT candidates in banks is always a headache for employers. These
candidates often do not stay with one company for long because they have a wide range
of options. This leads to intense competition among companies in the market to attract
candidates, and banks also have to offer attractive recruitment policies regarding salary,
bonuses, and social benefits.
The digital transformation activities in the banking sector present challenges in
payment and improving the legal framework to serve electronic payments. In particular,
legal frameworks and policies related to new and modern online and electronic payment
services, virtual cards, cryptocurrencies, and electronic money are new and complex
issues. These need to be continuously researched, evaluated, amended, and supplemented
to meet the practical requirements and rapid development of information technology and
telecommunications. Challenges also exist in potentially re-evaluating the business model
and management of payments to align with trends in smart management, mobile banking,
25
digital banking, and electronic payments. Additionally, banks need to research and
maximize the customer experience in the payment field to meet the demand for cashless
payments in the age of technology. The increasingly sophisticated development of digital
technology also brings about an increase in security vulnerabilities and high-tech crimes.
In the payment sector, including card payments through POS terminals, recent electronic
payments have witnessed complex developments with new, sophisticated tactics and
methods. Therefore, the challenge for the entire banking sector in Vietnam, especially in
the context of the 4.0 industrial revolution, lies in the safety of the banking system,
payment system, information security, and issues related to high-tech crimes, as well as
challenges related to the level, capacity, quantity, and quality of the information
technology workforce.

Non-performing loans are increasing, posing systemic safety risks:
Statistics show that non-performing loans are experiencing a significant increase.
The impact of the pandemic on the banks' balance sheets is projected to continue as
businesses have yet to recover, and the loans, once restructured, are still classified in groups
1 and 2 but remain unimproved. This will necessitate the formal recognition of them as
non-performing loans, especially after Circular 14 expires on June 30, 2022. Due to the
prospect of an increase in non-performing loans in 2022, most banks have increased their
risk provisions to improve asset quality and "reserve" profits for this year. This trend is
expected to continue, as the results of the Vietnam Report survey indicate that 45.5% of
banks plan to continue increasing risk provisions, 36.4% of banks will maintain the same
level of risk provisions as the previous year, and only 18.2% will reduce risk provisions.
However, the rate of risk provision growth is not commensurate with the rate of
non-performing loan growth, causing the average risk provision coverage for nonperforming loans to slightly decrease from 118% at the beginning of the year to 112% at
the end of the first quarter of 2022. The coverage rate for disclosed non-performing loans
may increase in the second half of 2022, after Circular 14 expires. Therefore, increasing
risk provisions to deal with non-performing loans is becoming more urgent for banks.

Thin capital buffer:
In the context of deepening development and integration, the group of banks needs to
implement higher international standards such as Basel 2, Basel 3, in order to enhance risk
management capabilities and compete with banks in the region. One of the important
indicators for risk management is the Capital Adequacy Ratio (CAR). According to Finn
Research, the CAR of Vietnamese banks was only at 11.3% in 2021, which is relatively low
compared to other countries in the region. There are signs of decline in the first quarter of
2022, with almost no state-owned commercial banks meeting the Basel 2 capital adequacy
requirements. The CAR decline is partly due to credit institutions adopting Circular
26
41/2016/TT-NHNN to approach Basel 2, with more stringent risk asset calculations.
Additionally, credit risk coefficients for securities, real estate, etc., are also higher.
3.2. Military commercial joint stock bank orientations
3.2.1. Key Business Segments:
a) Individual and Corporate Customers:
In the dynamic world of banking, MB Bank has carved a niche for itself by
consistently prioritizing the needs of both individual and corporate customers. This
unwavering commitment is not just a testament to its past endeavors but also a clear
indicator of the bank's future aspirations. As we transition into an era where digital
interactions are becoming the norm, MB Bank's offerings, particularly in the deposit
domain, stand out. From flexible savings accounts to the more structured fixed deposits,
the bank has managed to strike a balance by offering competitive interest rates while
maintaining a customer-centric approach. Data from global trends suggests that the
demand for digital banking is on an upward trajectory. For instance, according to EY’s
Global Fintech Adoption Index 2019, India’s consumer fintech adoption rate was at a
staggering 87 percent, significantly above the global average of 64 percent. This indicates
a global shift towards digital banking, and MB Bank is poised to capitalize on this trend
by potentially introducing innovative deposit schemes that can be managed online,
complete with features like auto-renewal and multi-currency options.
When it comes to credit solutions, MB Bank's portfolio is both diverse and
comprehensive, catering to a range of needs from personal aspirations like home
ownership to entrepreneurial ventures with business loans. As global economies evolve,
there's an anticipated surge in demand for specialized credit products. Data from various
economies, including the likes of India and China, suggests a booming fintech market,
with values reaching up to $31bn in India in 2020 and global fintech investments in China
amounting to $55.3bn in 2018. These figures underscore the potential in specialized credit
products. Recognizing this, MB Bank is gearing up to introduce sector-specific loans,
especially for rapidly growing sectors like technology, healthcare, and renewable energy.
The future of banking is undeniably digital. As more consumers globally are
leaning towards online transactions, MB Bank is strategically positioning itself to be a
leader in this domain. Significant investments are being channeled to bolster its digital
infrastructure, promising enhanced services like real-time money transfers and
international card transactions without the burden of additional fees.
27
b) Investments:
MB Bank's involvement in the investment sector is a testament to its forwardthinking approach and unwavering commitment to portfolio diversification. By actively
delving into securities investment, the bank demonstrates its astute understanding of the
stock market, driven by meticulous research and comprehensive market analysis. This
strategic approach not only ensures that MB Bank seizes lucrative investment
opportunities but also guarantees significant returns, safeguarding against market
volatilities. In fact, MB has maintained its presence among the three largest market
capitalisation companies, which is a testament to its exceptional investor relations (IR)
practices and its ability to venerate investors source.
Parallelly, the bank's foray into real estate ventures underscores its recognition of
the immense potential within the real estate sector, particularly in a burgeoning economy
like Vietnam. By judiciously channeling investments into high-yield property projects,
MB Bank positions itself to benefit from long-term asset appreciation, thereby ensuring
a consistent and sustainable revenue stream. The Asset and Wealth Management (AWM)
industry in Vietnam is poised for rapid growth, backed by facilitative regulatory changes,
further highlighting the potential of such investment strategies source.
c) Assets management:
MB Bank's prowess in asset management is not just a reflection of its past
successes but a clear indication of its strategic orientation towards future growth and
revenue generation. The bank's expertise in this domain has been a significant driver of
its financial performance, and its future strategies are set to further solidify its position in
the market.
One of the most notable trends in the investment world is the rise of sustainable
investing. With global assets under management falling by 10 percent to $98 trillion in
2022, there's a pressing need for financial institutions to diversify their portfolios and tap
into high-growth opportunities source. Recognizing this shift, MB Bank's investment
orientation is geared towards introducing more green and ESG (Environmental, Social,
and Governance) funds. These funds, with a keen focus on sustainable projects, are
designed to cater to the increasing number of investors who are actively seeking ethical
investment opportunities. According to a report by BCG, alternative investments, which
include ESG funds, represented more than $20 trillion of global assets at the end of 2022,
accounting for 50 percent of the industry’s global revenues. This underscores the potential
of such investment strategies.
Furthermore, as Vietnam's economy continues to grow, there's a noticeable
increase in the wealth of its populace. This presents a golden opportunity for banks to
offer personalized wealth management solutions. MB Bank's wealth creation orientation
28
is centered around recognizing this trend and leveraging AI-driven tools to offer bespoke
investment advice. By doing so, the bank aims to ensure optimal returns for its customers,
aligning their financial goals with market opportunities.
29
3.2.2. Strategic orientations
a) Stable Outlook:
MB Bank's financial stability has been recognized by global rating agencies,
marking a significant achievement in its operational history. On January 28, 2021, Fitch
Ratings revised the outlook on the Long-Term IDR of MB Bank to Stable from Negative.
This positive revision was not an isolated event but was influenced by the recovering
economic conditions in Vietnam. The country's economic resurgence is expected to
bolster borrowers' debt repayment capacities, which, in turn, will support the bank's
above-average profitability. Such a stable outlook from a renowned agency like Fitch
Ratings instills confidence among investors and stakeholders, signaling the bank's robust
financial health and its ability to navigate economic challenges.
b) Sovereign Support:
Another feather in MB Bank's cap is the recognition of potential state support
when required. Fitch Ratings, in its report dated June 9, 2023, emphasized that the
Military Commercial Joint Stock Bank's Long-Term Issuer Default Rating (IDR) is
underpinned by the expectation of sovereign support. This rating is a testament to the
strong propensity of the Vietnamese government to support its banking system, ensuring
that the financial institutions remain resilient even in challenging times. Such a backing
from the state not only provides a safety net for the bank but also reinforces its credibility
in the global financial market.
c) Positive Economic Outlook:
Beyond the immediate accolades and recognitions, MB Bank's strategic orientation
is also driven by Vietnam's positive economic trajectory. The bank's Long-Term Issuer
Default Rating (IDR)E is a reflection of this optimism. With Vietnam's economy showing
promising signs of growth and development, MB Bank is well-positioned to leverage these
opportunities to further its growth. The bank's performance is intrinsically linked to the
country's economic outlook, and as Vietnam continues its upward economic journey, MB
Bank is anticipated to witness sustained performance and growth.
3.3. Recommendation
a) Digital Transformation and User Experience:
As a fresh-eyed intern at MB Bank, I've had the unique opportunity to interact
with our digital platforms from a perspective that blends both an insider's view and an
everyday user's experience. The digital revolution has reshaped customer expectations,
and while MB Bank has made commendable progress, there are avenues we can explore
to further enhance our digital footprint. One of the first things I noticed was the potential
to make our digital interfaces even more user-centric. While our platforms are functional,
30
they could benefit from a design that's more intuitive and aligned with modern user
experience (UX) principles. For instance, simplifying the navigation, using more relatable
icons, and perhaps even introducing a chatbot for instant queries could make the user's
journey smoother. Imagine logging into your bank account and being greeted with
insights tailored just for you - like an alert about an upcoming bill or a suggestion to move
funds to a higher interest account based on your balance. By leveraging data analytics,
we can introduce features that not only respond to but also anticipate user needs, offering
them solutions before they even realize they need them. In my interactions with peers,
one concern that often comes up is the fear of cyber threats. With digital transactions
becoming the norm, ensuring the security of our platforms is paramount. Introducing
multi-factor authentication, biometric logins, or even blockchain technology can fortify
our digital defenses. Given that cyber threats are evolving, continuous investment in
cybersecurity research and development is crucial. While many of our users are digitally
savvy, there's a segment that's still adapting to the digital shift. Creating engaging
tutorials, perhaps in the form of interactive videos or animations, can help these users
navigate our platforms with ease. As an intern, I've often found that sometimes, a simple
visual guide can make complex processes much more digestible.
b) Deepening Customer Relationships:
As an intern, I've had the unique opportunity to observe firsthand the interactions
between the bank and its diverse clientele. The banking industry, with its myriad of
institutions offering strikingly similar services, often feels like a vast ocean where
differentiation is challenging. However, it's in these subtle nuances of customer
interactions that MB Bank can truly set itself apart. In today's digital age, personalization
is not just preferred; it's expected. Imagine a banking app that greets you by name, offers
solutions based on your spending habits, or even sends you a birthday wish. These
gestures, though seemingly small, can make a customer feel valued and understood.
Leveraging data analytics and AI, we can tailor our services to fit the unique needs of
each customer, making their banking experience truly personal. Furthermore, consistency
is also the key. A customer's experience should be uniformly excellent, whether they're
interacting with a teller, using the mobile app, or attending a bank-sponsored event.
Regular training sessions, feedback loops, and quality checks can ensure that every
touchpoint meets the high standards MB Bank aspires to. Lastly, the voice of the customer
is the most potent tool for improvement. Regular feedback sessions, surveys, and open
forums can provide invaluable insights into what the bank is doing right and areas of
potential growth. As someone at the beginning of my professional journey, I've learned
that there's always room for growth and that every piece of feedback, whether positive or
negative, is an opportunity to learn and improve.
31
c) Personalized Banking Solutions:
In our modern, hyper-connected era, the demand for personalized experiences has
surged, with customers yearning for services tailored to their distinct needs and
preferences. The banking industry is not immune to this shift. Given the wealth of data at
our disposal, banks like MB Bank stand at the cusp of a transformative opportunity to
deliver genuinely individualized services. A deep dive into transaction histories can
unveil a treasure trove of insights about a customer's spending habits, investment
leanings, and overall financial behavior. For example, regular purchases at home
improvement stores might hint at a customer's potential interest in home renovation loans
or associated insurance products. This data-driven approach can also refine our loan
offerings. Rather than presenting generic loan options, we can craft proposals that
resonate with a customer's financial situation. A newlywed might appreciate a loan offer
with competitive rates tailored for newly married couples, for instance. Furthermore, a
granular understanding of a customer's risk tolerance, financial aspirations, and existing
investments can empower us to provide bespoke investment counsel. This could range
from recommending a burgeoning mutual fund to suggesting a promising bond or real
estate venture, all aligned with the customer's unique financial landscape. The potential
of AI-driven tools is immense. By integrating these into our banking app, we can
revolutionize the customer experience. Imagine a tool that not only helps track expenses
but also sets savings milestones and alerts users about enticing investment opportunities,
all based on their financial behavior. Such innovations can transform banking from a
mundane task into an engaging, value-added experience. Loyalty programs, too, can
undergo a metamorphosis with personalization. A globetrotting customer would
undoubtedly value travel-centric rewards or enticing foreign currency deals over generic
rewards. Similarly, our communication strategy can pivot from broad, generic messages
to individualized communications. A congratulatory note on a savings achievement or
insights on maximizing a recent investment can make a customer feel truly valued and
understood. Lastly, our engagement doesn't have to end with banking transactions. By
discerning the financial interests of our customers, we can curate specialized workshops,
be it on the nuances of retirement planning, strategies for tax savings, or the intricacies of
real estate investments. Such initiatives can not only offer immense value but also fortify
MB Bank's position as a trusted financial confidant.
In essence, the future of banking lies in personalization. By embracing this trend, MB
Bank can redefine its relationship with its customers, ensuring they always feel
understood, valued, and catere
32
CONCLUSION
In conclusion, my internship experience at MB Bank's Vinh Phuc 1 Transaction
Office provided me with invaluable insights into the operations of a leading financial
institution. Through active involvement in various departments, I gained practical
knowledge in customer relations, transaction accounting, and customer care, among
others. This experience not only broadened my understanding of the banking industry but
also allowed me to witness firsthand the dynamic interplay of strengths, weaknesses,
opportunities, and threats that shape the sector.
The SWOT analysis revealed key areas of focus for MB Bank in the coming years.
Addressing the challenge of increasing bad debts and fortifying risk management
procedures will be crucial for maintaining the bank's financial stability. Embracing digital
transformation and innovation will position MB Bank as a frontrunner in the rapidly
evolving online banking landscape. Additionally, market expansion, diversification of
services, and strategic partnerships will be instrumental in enhancing the bank's
competitiveness and service offerings. Recommendations for enhancing digital services,
investing in employee training, and streamlining processes underscore the importance of
continuous improvement in operational efficiency and customer experience.
Strengthening customer relationships and product innovation will be pivotal in attracting
and retaining a diverse customer base.
Overall, this internship has been a transformative experience, providing me with
practical skills, industry knowledge, and a deeper appreciation for the complexities of the
banking sector. I am confident that MB Bank's strategic orientations and directions,
coupled with its strong foundation, will position it for continued success and growth in
the years leading up to 2025.
33
REFERENCES
VIETNAMESE:
1. Nguyễn, T. P. (2017). Quản trị rủi ro tại ngân hàng thương mại cổ phần quân đội.
Nhà xuất bản Kinh tế Quốc dân.
2. Vũ, L. H. (2019). Ứng dụng công nghệ thông tin trong hoạt động ngân hàng:
Nghiên cứu tại MBBank. Nhà xuất bản Đại học Quốc gia Hà Nội.
3. Đặng, Q. M. (2021). Phát triển sản phẩm và dịch vụ tại MBBank: Tiếp cận từ
góc độ khách hàng. Nhà xuất bản Thống kê.
4. Brademar. (n.d.). Phân tích mô hình SWOT của MB Bank. Retrieved from:
https://brademar.com/phan-tich-mo-hinh-swot-cua-mb-bank-2/
5. Nguyễn, T. P. (2017). Quản trị rủi ro tại ngân hàng thương mại cổ phần quân đội.
Nhà xuất bản Kinh tế Quốc dân.
ENGLISH:
1. Anderson, M. (2020). Digital Banking Revolution: Case Studies from Vietnam.
Global Tech Press.
2. Wallace, T., & Kumar, R. (2023). Corporate Social Responsibility in Vietnamese
Banking Sector. CSR Asia Publications.
3. O'Neill, B. (2024). Navigating Financial Regulations in Vietnam: A Guide for
International Banks. Regulation Insight Publishers.
4. Khong Minh Trang (2022). “Development solutions for international settlement
at the business center of Saigon - Hanoi commercial joint stock bank”,
Internship report, Foreign Trade University.
5. Anderson, M. (2020). Digital Banking Revolution: Case Studies from Vietnam.
Global Tech Press.
WEBSITE:
1. Financial Times. (2022). Vietnam's MBBank Embarks on Green Financing
Initiative.
2. Asian Banking Review. (2023). MBBank's Strategic Partnership with FinTech
Startups: A Game Changer?
3. MBBank. (n.d.). History of formation and development.
4. VietnamFinance. (n.d.). Home page.
5. Financial Times. (2022). Vietnam's MBBank Embarks on Green Financing
Initiative.
34
35
36