Increasing capital mobilization at joint stock commercial bank for investment and development of vietnam east hanoi brach

ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------
ĐỖ QUỲNH TRANG
INCREASING CAPITAL MOBILIZATION AT JOINT STOCK
COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT
OF VIETNAM - EAST HANOI BRACH
TĂNG CƯỜNG HUY ĐỘNG VỐN DÂN CƯ TẠI NGÂN HÀNG TMCP
ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM - CHI NHÁNH ĐÔNG HÀ NỘI
LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH
HÀ NỘI - 2020

ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------
ĐỖ QUỲNH TRANG
INCREASING CAPITAL MOBILIZATION AT JOINT STOCK
COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT
OF VIETNAM - EAST HANOI BRACH
TĂNG CƯỜNG HUY ĐỘNG VỐN DÂN CƯ TẠI NGÂN HÀNG TMCP
ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM - CHI NHÁNH ĐÔNG HÀ NỘI
Chuyên ngành: Quản trị kinh doanh
Mã số: 60 34 01 02
LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH
NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS. PHẠM THANH HÒA
HÀ NỘI - 2020

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DECLARATION
The author confirms that the research outcome in the thesis is the result of
author’s independent work during study and research period and it is not yet
published in other’s research and article.
The other’s research result and documentation (extraction, table, figure,
formula, and other document) used in the thesis are cited properly and the
permission (if required) is given.
The author is responsible in front of the Thesis Assessment Committee,
Hanoi School of Business and Management, and the laws for above-mentioned
declaration.
Date…………………………..

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TABLE OF CONTENTS
DECLARATION .........................................................................................................i
TABLE OF CONTENTS............................................................................................ii
LIST OF TABLE ........................................................................................................v
LIST OF FIGURES....................................................................................................vi
INTRODUCTION.......................................................................................................2
CHAPTER 1: OVERVIEW OF MOBILIZING RESIDENTS’ CAPITAL
ACTIVITIES OF COMMERCIAL BANKS..............................................................6
1.1. Overview of commercial banks........................................................................6
1.1.1. Commercial Bank ......................................................................................6
1.1.2. Operations of commercial banks ...............................................................9
1.2. Mobilized capital of commercial banks .........................................................13
1.2.1. Concept of mobilized capital...................................................................13
1.2.2. The role of mobilized capital...................................................................13
1.2.3. Forms of capital mobilization..................................................................14
1.2.4. Capital mobilization policy......................................................................16
1.3. Mobilizing capital from residents...................................................................18
1.3.1. Characteristics..........................................................................................18
1.3.2. Role..........................................................................................................19
1.3.3. Mobilization forms ..................................................................................19
1.3.4 Assessing activities of mobilizing residential capital of commercial banks22
1.3.5 Factors affecting the mobilization of residential capital of commercial
banks ..................................................................................................................25
CHAPTER 2: ACTUAL SITUATION OF MOBILIZING RESIDENTAL
CAPITAL ACTIVITIESAT VIETNAM JOINT STOCK COMMERCIAL BANK
FOR INVESTMENT AND DEVELOPMENT – EASTERN HANOI BRANCH ..30
2.1. Overview of Vietnam Joint Stock Commercial Bank for Investment and
Development - Eastern Hanoi Branch...................................................................30

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2.1.1. Overview of Vietnam Joint Stock Commercial Bank for Investment and
Development - Eastern HanoiBranch................................................................30
2.1.2. Business operation situation ....................................................................34
2.2. Actual situation of mobilizing residents’ capital activities at BIDV – the
Eastern Hanoi branch ............................................................................................41
2.2.1. Scale of mobilized capital........................................................................41
2.2.2. Structure of residential capital mobilization............................................45
2.2.3. Capital mobilizing activities in terms of criteria .....................................59
2.2.4. Analysis of factors affecting the results of residents’ capital mobilization....66
2.3. Assessing activities of mobilizing residential capital at BIDV – the Eastern
Hanoi branch .........................................................................................................72
2.3.1. Achievements ..........................................................................................72
2.3.2. Limitations...............................................................................................74
2.3.3. Reasons....................................................................................................76
Chapter 3: SOLUTIONS TO DEVELOP
RESIDENTS’CAPITALMOBILIZATION ACTIVITIESAT BIDV-THE
EASTERN HANOI BRANCH .................................................................................80
3.1. Future orientation of mobilizing residential capital activities at BIDV – the
Eastern Hanoi branch ............................................................................................80
3.1.1. General orientation for the development of BIDV – the Eastern
Hanoi branch.....................................................................................................80
3.1.2. BIDV's capital mobilization strategy.......................................................81
3.1.3. Orientation for mobilizing residential capital at BIDV - Eastern
Hanoi branch ....................................................................................................83
3.2. Solution to strengthen residential capital mobilizationBIDV – the Eastern
Hanoi branch .........................................................................................................84
3.2.1. Diversify mobilization forms and mobilized products............................85
3.2.2. Solutions for flexible and competitive banking services.........................87
3.2.3. Innovative organizational and management solutions.............................91
3.2.4. Human resource solutions........................................................................92

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3.2.5. Solutions to adapt to residential practices ...............................................93
3.2.6. Improve the quality of using mobilized capital.......................................94
3.3. Bank’s recommendations ...............................................................................95
CONCLUSION.........................................................................................................97
REFERENCES..........................................................................................................99
APPENDIX.............................................................................................................101

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LIST OF TABLE
Table 2.1. Business operation of BIDV - the Eastern Hanoi branch in 2015 – 2018 ......35
Table 2.2. Capital mobilized results in BIDV – The Eastern Hanoi branch In the
period of 2015 – 2018 ...............................................................................................38
Table 2.3. Other business of BIDV – the Eastern Hanoi branch ..............................40
Table 2.4. Capital mobilized in scaleofBIDV – the Eastern Hanoi branch in
2015-2018.................................................................................................................42
Table 2.5. Residents’ capital mobilized in scaleofBIDV – the Eastern Hanoi branch
in 2015-2018 .............................................................................................................42
Table 2.6. Capital mobilized in currency in 2015 – 2018.........................................45
Table 2.7. Residents’ capital mobilized in terms of maturity in 2015-2018.............47
Table2.10. Average interest rate of some state-own banks in Vietnam in 2018 ......55
Table 2.11. Residents’ capital in terms of promotion saving forms in 2016-2018...56
Table 2.12. Residents’ capital in terms of valuable paper issuing form in 2015-2018....58
Table 2.13. Residents’ capital mobilization ratio of BIDV – The Eastern Hanoi
Branch in 2016 – 2018 period...................................................................................60
Table 2.14. Interest rate and cost for residents’ capital mobilization .......................61
Table 2.15. Residentials capital in mobilizing and credit.........................................62
Table 2.16: Revenue – Expenditure differences of BIDV – The Eastern Hanoi
Branchin 2015-2018 period.......................................................................................63
Table 2.4. Capital mobilized in scale ofBIDV – the Eastern Hanoi branch in 2015-
2018...........................................................................................................................63
Table 2.17: Customer evaluation for customer management staff ...........................66
Table 2.18: Deposit mobilization productsof banks in Dong Anh area....................67
Table 2.19: Customer assessmentsabout mobilized productsof BIDV – the Eastern
Hanoi branch .............................................................................................................68
Table 2.20: Customer assessments about interest rate policy and transaction
procedure at BIDV – the Eastern Hanoi branch .......................................................69
Table 2.21: Customers’ assessment about Marketing policy of BIDV – the Eastern
Hanoi branch .............................................................................................................70

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LIST OF FIGURES
Figure 2.1: Organization chart of Eastern Hanoi branch ..........................................32
Graph 2.1. Annual resident’s capital mobilized in 2015– 2018 ...............................43
Graph 2.2. Capital mobilized in currency in 2015 – 2018........................................46
Graph 2.3. Annual residents’ capital mobilizes in 2015– 2018...............................48
Graph 2.4. Annual residents’ capital mobilizes in terms of form in 2015– 2018.....50
Table 2.8. Residents’ capital in terms of mobilized forms in 2015-2018.................52
Table 2.9. Capital mobilized in terms of currency 2016-2018 .................................54
Graph 2.5. Annual residents’ capital mobilizes in terms of currency Incommon
form (2016– 2018) ....................................................................................................54

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Thesis: “STRENGTHENING THERESIDENT’S CAPITAL MOBILIZATION
AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND
DEVELOPMENT OF VIETNAM (BIDV) -EASTERN HANOI
BRANCH”INTRODUCTION
1. Thesis’s necessaryRationale
Mobilizing capital is one of the main activities of commercial banks. In recent
years, along with the establishment of many domestic commercial banks as well as
the appearance of foreign banks, capital mobilization has faced to a fierce
competition. Each commercial bank, based on its capabilities and conditions, has set
up its measures and solutions to implement capital mobilization. Joint Stock
Commercial Bank for Investment and Development of Vietnam (BIDV) is one of
the leading banks in commercial banking system of Vietnam. Through 60 years of
establishment and development, BIDV has affirmed its reputation in the market.
Bank for Investment and Development of Vietnam – the Eastern Hanoi Branch is
one of branch in Hanoi accounting for a relatively large market share, especially in
Dong Anh, Soc Son and suburban areas. However, due to operation of many credit
and financial institutions in the area, the competition has been getting fiercer.
Therefore, the mobilization of resident’s capital of the Branch has been faced with
many difficulties which is negatively affecting to the Growth rate and market share
of the Eastern Hanoi Branch.Therefore, it is necessary to have a scientific,
comprehensive, specific and profound research to find effective solutions to ensure
that the Branch can attract capital from the residents, maintain and develop its
market share in the locality, ensure business efficiency and implement its business
plan. This is a very urgent issue which is, in one hand, meeting the practical reality
requirements of commercial banks,and in other hands, meeting the current issue in
business operation of commercial bank. Because of the above reasons, the issue of
"Strengthening the mobilization of residential capital at Joint Stock Commercial
Bank for Investment and Development of Vietnam- Eastern Hanoi Branch" has
been chosen as a topic of master's thesis specialized in Business Management.
2. Research objectives and tasks

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The objectives of this thesis is suggest some solutions to strenghen
mobilization of residential capital in the coming time. .
To reach the goals of research, the thesis solve some specific tasks as follows:
Firstly, systematizing the theoretical issues of residential capital
mobilizationof commercial banks.
Secondly, analyzing the status of business operations; activities of
mobilizing residential capital of BIDV – Eastern Hanoi Branch, clarifying
achievements, shortcomings and reasons.
Thirdly, proposing feasible solutions to strenthenresidential capital
mobilization in the coming time at BIDV – Eastern Hanoi Branch.
3. Subjects and scope of research
3.1. Subjectof the research
The mobilizing residential’s capital activities of BIDV – Eastern Hanoi
Branch.
3.2. Scope of the research
- In terms of time: 2015-2017 period, some targets were updated to 2018.
- In terms of space: BIDV – Eastern Hanoi Branch.
4. Research Methodology
* Data analysis method
- Comparison method by absolute numbers
This method is used to compare year-on-year data with previous year's
figures for volatility and find out the causes of fluctuations in those indicators to
make corrective measures.
- Comparison method by relative number:
This method is used to clarify the level of volatility of economic indicators.
Comparing the growth rates of year-on-year indicators to find out the causes and
remedies.
* Visual method
- Tables: show the annual data on the tables
Formatted: Indent: First line: 0.39", Space
Before: 0 pt, After: 0 pt, Line spacing: 1.5
lines
Formatted: Indent: First line: 0.39", Space
Before: 0 pt, After: 0 pt, Line spacing: 1.5
lines

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- Charts: vividly describe the situation of increasing and decreasing over the
years.
* SWOT matrix analysis
- List strengths, weaknesses, opportunities and threats
- Combine strengths and opportunities to come up with strategies
- Define weaknesses and threats to propose solutions
- Set up opportunity assumptions to overcome or limit weaknesses
Data source is exploited from annual business performance reports of BIDV
– Eastern Hanoi Branch in 2015, 2016, 2017.
5. Literature review
Residential capital mobilization is nota new topicthat has been reviewed by
many authors. Previous studies had been studied on many different aspects, some of
them includes:
- "Solutions to increase capital mobilization from residents of Bank for
Investment and Development of Vietnam (BIDV) – Transaction Office 3" by Dang
Cong Ngoc, 2010.
- "Solutions to strengthen the mobilization of residents’ capital of JSC Bank
for Foreign Trade of Vietnam - Transaction Offices" by Nguyen Thanh Mai, 2009.
- “Some solutions to increase capital mobilization in current time of Vietnam
Bank for Agriculture and Rural Development (Agribank) - Hanoi branch" by
Nguyen Thanh Tung, 2009.
- Master thesis: "Solution to mobilize residential capital at Vietnam Joint
Stock Commercial Bank for Investment and Development - Da Nang branch" by Do
Van Nhat, 2013.
The above topics just analyzed capital mobilization activities and assessing
capital mobilization activities in separate aspects such as structure, scale of capital
mobilization or capital mobilization cost. On that basis, some solutions to increase
capital mobilizationwere proposed. However, those solutions had just met
requirements of capital mobilization revenue, but not satisfied the requirements
involved inanalysis and evaluation of effectiveness of capital mobilization
Comment [Office1]: Phầnnày em phải sơ lượ
qua đượcnhững công trìnhnàycủahọđãlàmđượcg
chưa làmđượcgìđểtừđó em mới đưa đếnkếtluậnl
công trìnhcủa em không bịtrùnglặpvới công
trìnhcủahọ

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activities. Furthermore, there was no comprehensive and effective solutions to
improve capital mobilization. It is a fact that, previous solutions cannot be accepted
by the bank to meet the target of “the cheapest cost of capital - the highest profit”.
Besides, with specific features and different development strategies in
specific period and stage, banks will have different directions and solutions to
improve its operation. It is currently similar to the situation of the Vietnam Bank for
Investment and Development Bank –Eastern Hanoi Branch.Furthermore, there is a
shortage of official research on the mobilization of residential capital of the branch.
Therefore, I would like to choose the topic: “Strengthening the mobilization of
residential capital at Joint Stock Commercial Bank for Investment and Development
of Vietnam- Eastern Hanoi Branch” as a theme for my master thesis.
6. Thesis structure
In addition to the introduction and conclusion, this thesis includes three
chapters:
Chapter 1: Overview of mobilizing residents’ capital of commercial banks
Chapter 2: Actual situation of residential capital mobilization activities at
Vietnam Joint Stock Commercial Bank for Investment and Development –Eastern
Hanoi Branch.
Chapter 3: Solutions to develop residential capital mobilization activities at
Vietnam Joint Stock Commercial Bank for Investment and Development –Eastern
Hanoi Branch.

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CHAPTER 1: OVERVIEW OF MOBILIZING RESIDENTS’ CAPITAL
ACTIVITIES OF COMMERCIAL BANKS
1.1. Overview of commercial banks
1.1.1. Commercial Bank
1.1.1.1. Concept of commercial bank
Commercial banks are banks that deal directly with companies, enterprises,
economic organizations and individuals, by receiving deposits, savings, and using
that capital to lend, discount, providing payment facilities and providing banking
services to those subjects. It wasdefined in the Banking Act of the Republic of
France (1941): "Commercial banks are institutions where careers regularly receive
money from the public. They are in the form of deposits, or in other forms, and use
that money to lend, discount and make payment”. According to regulations ofState
Bank of Vietnam (SBV)(1990): “Commercial banks are a currency trading
organization with regular operations and mainly receive customer deposits with the
responsibility to repay and use that money to lend, to discount and to use as
payment instrument”.
According to the Law on Credit Institutions No. 47/2010 / QH12 issued by
the National Assembly and passed on June 16, 2010, it was defined that: “The bank
is a type of credit institution that can be implemented all banking activities in
accordance with this Law. According to the nature and operational objectives,
types of banks include commercial banks, policy banks, cooperative banks, "and"
Commercial banks are all types of banks that are carried out all banking operations
and other business activities under the provisions of this Law and aiming at profit
target”.
Thus, commercial banks are an extremely important intermediary financial
institution in the economy. Thanks to this intermediary financial institution system,
capital sources are scattered, gathered in large numbers to provide loans for
economic organizations and individuals to serve for the purpose ofsocio-
economicdevelopment.

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Through the concepts and defines of commercial banks, it can be commented
that:
 Commercial bank is a type of corporation, because it is established to do
business and the purpose of itsoperation is for profit.
 Operations of commercial banks include currency trading and banking
services.
 Besides structural similarities and final financial goals, commercial banks
are different from other businesses. Such as:
 Business scope: Banking business is money, credit, and banking services.
 As a business, the main source of capital that the bank uses in
business is capital mobilized from outside, while the bank's own capital accounts
for a low proportion of total business capital.
 Over the Bank's total assets, fixed assets and current assets account
for a low proportion, in which financial assets accounts for significant proportion,
including bonds, negotiable instruments, stocks,debt agreements and other valuable
papers.
 Business activities of commercial banks are under the control of the
Central Bankor State Bank. Commercial banks cannot expand business activities
when the Central Bank is applying monetary tightening policies and limiting
inflation and vice versa. Therefore, the expanding or narrowing of a commercial
bank isdominated by the Central Bank.
In conclusion, it can be said that commercial bank is a combination between
capital surplus subjects (individuals who have income but do not need to use;
enterprises and organizations have just consumed products but have no need to
import materials ...) to capital deficit subjects.
1.1.1.2. Commercial bank branch
To operate effectively and expand the operating market, any commercial
bank has established its branches. Each branchof commercial bank operates in a
specific location that is responsible for attracting customers as well as providing
banking services. In order to be recognized as a branch of a commercial bank, it is

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necessary for a bank to achieve a number of standards according to the specific
requirements of each country in terms of scale of operation, number of employees,
number of services provided...The operations of commercial banks’ branchesare
depending on requirements of head office,are under the control of head office and
are accountedon head office’s account.
The branch is a dependent unit of commercial bank, has its own recognition,
carries out business activities in accordance with regulations of commercial banks.
In Vietnam, to set up a new branch, there are some specific requirements:
- Safety ratios in banking operation withinrecent three years has been
ensured as regulations of the State Bank;
- Information system met the requirements of online management of
commercial banks; There are internal regulations on management of transaction
offices and branches that ensure safe and effective operation in accordance with
recent law.
After one year from the date of opening, commercial banks can open
transaction offices and branches if following conditions are satisfied:
- The businessresult in the previous year of application for opening new
transaction offices and branches was positive; safety ratios in banking operations
were ensured; debts were classified, risk provisions were sufficiently set up
according to current regulations;
- Having an effective management, executive and internal audit systems;
- Having an internal inspection and control system according to the
regulations of the State Bank;
- Having an information system satisfied the requirements of online
management of commercial banks; strictly follow statistical reporting regimeof the
State Bank;
- There are official internal regulations (in writing form) to manage
transaction offices and branches to ensure safe and efficient operation in accordance
with recent laws;

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- Not being sanctioned by the Bank Inspectorate for a total of thirty million
VND or more within one year up to the time of requesting for a new transaction
office or branch;
1.1.2. Operations of commercial banks
Along with the formation history of commercial bank, current operation of
commercial bank today is far different from that of early commercial banks in the
past. Due to business today requirements and fierce competition, the commercial
banking system has expanded into many typesof financial institutions which
providing utility banking services to customers.Althoughsome traditional operations
are still inseparable from the operation of the bank, hereinafter we explore some
types of services that banks provide for the economy.
* Foreign exchange trading
One of the very first and typical services provided by banks is foreign
exchange trading, whereby the bank buysseveral currencies in exchange for another
currency. Banks will receive fees and spread for this type of transaction. Thisservice
isvery important for international tourists when traveling in the host country.
Additionally, at the same time, commercial banks also carry out capital
mobilization, foreign currency loans, and more importantly, international payment
for international trade activities.
*Deposits
As mentioned above, in order to have capital for business activities,
commercial banks must mobilize from various subjects in the economy.
Commercial banksarepermitted to receive all deposits of residents, businesses,
economic organizations and professional social organizations with appropriate
interest rates announced. Currently when customers come to send money, the bank
will open an account to help customers conveniently transact and check.
* Lending
Lending is the main income-generating activity for commercial banks in
developing countries (while in developed countries, the main income comes from
service fees), there are now some types of loans, including:

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- Commercial lending and commercial paper discount: This transaction was
appeared right from the beginning of the bank's establishment. Commercial banks
discount commercial paper, which is to lend to local businesses. After the lending,
those business would sell their debts (receivables) to banks to get cash. It is a
transition from discounting to direct lending to customersto help them access capital
to purchase stockpiles or build offices orprocure production equipment.
- Consumer lending: In the history of banks’ formation and development,
most commercial banks did not actively lend to individuals and households because
they believe that, on the one hand, consumer loans were generally small and, in
another hand,there was a relatively high risk of default.Therefore, this type of loan
became low-profit. However, in the early twentieth century, banks began to rely
more on customer deposits to finance large commercial loans. Otherwise, fierce
competition in deposits and loans has forced banks to target consumers as loyal and
potential customers. Many major commercial banks in the world today have
established a strong consumer credit department.
- Financing and co-financing: Banks are becoming increasingly active in
funding and co-financing for new plans with high cost constructions, especially in
high-tech,large-scale industriesand long-timeoperation.
* Preserving valuables
This is a medieval business when the bank was still in its primitive form, and
banks preserved valuables of customers in their warehouses. One interesting thing is
that these valuable papers, such as bank-issued certificates for customers (recorded
on the asset being kept), can be circulated like money - this is the first form of
check and card payment. Today, preservation service is often carried out by a
specific department of bank, namely "preservation department".
* Trading through accounts and payments
When businesses set up deposits, they find that banks not only preserve but
also make payment orders on behalf of customers. Payment via bank has been
considered as a form of non-cash payment. That means, itis not necessary for
depositors to go to a bank with cash withdrawal,but a payment request instead to

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pay to the bank. In another way, customers may bring documents (Check, signed by
other customers) to the bank to receive money. The provision of this payment
service has played an important role in saving transaction time for both banks and
customers, reducing costs.Especially banks will expand their network to meet the
customers’ demandquickly and conveniently. Thereby banks would encourage
businesses, individuals to deposit into banks and use the services provided by the
bank. Therefore, a new and important service is developed that is the deposit
account (demand deposit), which helps depositors write checks, authorize payments
to pay for the purchase of goods and services. The introduction of this type of
service is seen as one of the most important steps in the banking industry.
* Management of funds
With the function of the treasurer of businesses and many other individuals
in the economy, banks will open accounts and keep money for them. It in turn will
tightly encourage the relationship between banks and customers. Additionally,
commercial bank is very experienced in budget managing, so they have provided
the services of managing and agreeing to manage the revenue and expenditure for
the customers especially for the enterprises and using the temporary cash surplus. to
the purpose of the bank until the customer needs to withdraw money or pay.
* Sponsoring Government activities
This is one of the many types of banking operations applied, because the
banking industry's activities are directly related to the overall picture of the
economy's operation. Therefore, since the establishment of the bank, Sponsoring
Government activities have been subject to direct or indirect management and
regulation of the Government. Normally, banks must commit to buy a certain
amount of government bonds on the total amount of money it mobilizes. Banks
pledge to lend to the Government, or to finance government projects and programs
in necessary cases.
* Leasing
In order to sell equipment and machinery, especially high-value equipment,
many manufacturers and traders have leased (instead of sold) devices. At the end of

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the lease, the customer can proceed to renew the lease, or redeem (if the contract is
a lease). With its strong financial potential, commercial banks also have the right to
choose the necessary equipment and machinery to rent equipment and machinery
through a lease or hire purchase contract, in which the bank purchases equipment
and machineryfor rented customers, with commitments made by the parties.
Normally, customers must commit to pay two-thirds of the rental property value.
Thus, in fact, this is a form of lending made by banks for customersIt is often
classified into medium and long-term credit.
* Providing trust services and consulting
Because the bank's operations are mainly in the financial and monetary field,
the bank often focuses on investment portfolios as experts. When individuals,
organizations, and businesses request, the bank conducts investment advices,
financial managements, establishment/separation of enterprises, and securities
trading. At the same time, the bank also manages customer assets, and in many
cases, the bank also provides trust services for customers such as investment
entrustments, entrusted issuances, entrusting loans to households.
* Providing brokerage and securities investment services
Due to the demands of competition in the economy, commercial banks are
increasingly interested in providing as much service to customers as possible.
Currently most commercial banks offer securities trading services, providing
customers with the opportunity to buy stocks, bonds and other securities without
resorting to stock traders. Many banks now have established securities companies
and securities brokerage companies.
* Provide insurance services
In recent years, banks have sold insurance to customers (mainly deposit
insurance, or credit insurance), which ensures the ability of customers to return to
banks when not sewing customers at risk of affecting health, health or risks in
production and business activities.
* Provide agency services

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Due to many objective and subjective factors, some banks have no
conditions to open a Branch, or regional representative office at other related
countries. Large commercial banks provide correspondent banking services for
other banks, household payment agents, issuing agents of deposit certificates, and a
leading bank for co-sponsors... In addition, some commercial banks also provide
other services such as retirement services, support fund services and subsidies ...
This shows the trend of expanding activities of banks, diversifying banking
services.
1.2. Mobilized capital of commercial banks
1.2.1. Concept of mobilized capital
Mobilized capital of commercial banks is the monetary value mobilized by
commercial banks in the market through deposits, loans and other capital sources.
Parts of mobilized capital make sense to decide the ability of each commercial bank
to operate.
In this research, the financial resources mobilizing from the community is
defined as the total amount of financial contribution from individuals, households,
and enterprises.
1.2.2. The role of mobilized capital
Determining the solvency of commercialbank:
The higher the bank's solvency, the greater the bank's available capital.
Therefore, excluding other factors, the bank's solvency is directly proportional to
the bank's capital in general and with the bank's available capital also. With great
capital potential, the bank can operate with an expanding business scale, effectively
carry out competitive activities to keep the prestige and enhance the bank's position.
Determining the scale of credit operations and other business activities of
commercial bank:
The bank's capital is crucial factor decide to expand or narrow the volume of
credit. Normally, small banks have a range of business activities, investment items,
low lending volume and less diversity. Therefore, affecting the ability to attract
capital of economic organizations and people, not even meeting the demand for

14
loans of enterprises. They will lose customers and not take advantage of business
opportunities. If banks become bigger, they would have abundant capital, and
therefore surely meet the demand for capital and conditions to expand credit
relations with many businesses and credit markets.
Determines the competitiveness of banks
It has been proven thatscale, professional qualifications and technical
facilities of a bank are the premise factors for attracting capital. At the same time, a
larger capital capacity is a favorable condition for banks to expand credit relations
with economic sectors in terms of size and volume; proactive in terms of time and
duration for borrowing, even deciding a reasonable interest rate for customers.
Furthermore, large banks' capital will create favorable conditions for the combined
use of other capital sources. On that basis, it will help the bank have enough
financial capacity to do multi-purpose business in the market, not only to lend but
also to expand forms of joint venture, business of leasing services (leasing), buying
and selling debt (factoring), trading in stock market.
1.2.3. Forms of capital mobilization
The forms of capital mobilization applied by commercial banking systems
often include:
In terms of capital mobilization object
- Mobilizing capital from residents: commercial banks mobilize idle funds in
the population (residents), through savings, payment, entrustment to the investment
banks. However, deposits in the population always account for a significant and
primary proportion of commercial banks. This source is featured byhighly stable;
mainly medium and long term;low transaction costs (in relative numbers); high
stabilitycustomers; low volatility. Furthermore, it is very convenient for commercial
bank to plan in both operation policies and capital mobilization policies.
- Mobilize capital from enterprises: Social organizations, professional social
organizationsdo not often deposit money into banks for the purpose of saving but
for the purpose of daily performance. Base on business cycles of enterprises, banks
recommend or encourage enterprises and organizations to deposit according to

15
specific instruments and agreements between both parties as well as the current
provisions of law. Some state-owned enterprises (SOE) are not allowed to deposit,
they send this type of capital in the form of a entrusted investment.
- Mobilizing capital from credit institutions: Mobilizing from the inter-bank
market and other credit institutions, only applicable in case of temporary
commercial bank shortages in payment for customers, or in case the bank lacks
reserve according to the regulations of the State Bank or to meet force majeure
circumstances. The proportion of this source is often low, the stability is not high,
the interest rate is often high, so commercial banks are very limited in using this
source.
For deposit purposes
- Savings deposits: This activity gives the bank a main capital source in total
operating capital. Through the actual situation of the bank, economic development
indicators, current capital demand and forecast in the future, which commercial
banks have reasonable, normal capital mobilization policies is an interest rate tool to
attract customers' attention, thereby attracting customers to deposit money into
banks with different objectives, depending on the needs of depositors and the
portfolio providedby banks.
- Performance deposits: This deposit is referred to deposit for current paying
of customers. This source mainly serves the needs of regular payment or daily
consumption of the bank's customers. This is not stable, but commercial banks can
use some proportions of this source according to its purpose and reasonable
calculation of the law and fluctuations of this type of deposit.
- Entrusted investment deposit: Many customers (both individuals and
organizations) of the bank have a large amount of money in their hands. Customers
do not have time to invest, or they lack information. However, they still want to
make interest from their capital instead of low saving interest rate. They entrust
investment banks under the agreements. Additionally, there are businesses that are
not allowed to deposit their savings into banks, so they turn their positions in the
form of investment trust.

16
1.2.4. Capital mobilization policy
- Policy to attract customers
Any bank would pay attention in this policy, because, it includes all the
content related to the operation and business of the bank. The success or failure of a
bank is determined by the ability to attract customers. However, here we only study
the scope of capital mobilization policies of commercial banks only. As stated
before, the policy of commercial bank mobilization at each time has different
changes, it depends directly on the socio-economic context, capital and actual needs
of the bank as the beginning of the year, the middle of the year, the end of the year,
or the seasonality of the bank's industry.
- Interest rate policy
Interest is understood as the price of the right to use the loan for a certain
period that the user pays to its owner. Thus, interest rates are directly related to the
sources of money mobilized by commercial banks.
In the history of banking industry, interest rate instrument is always
considered as a factor contributing to the creation of capital for banks through
mobilization from the economy. Although at different periods of time, the interest
rate offered by banks is different but still ensure to be attractive factors enough for
customers, both retaining traditional customers and seeking new customers at the
same time.
- Policy to expand network by branches
Expanding the network not only helps banks improve capital mobilization,
but also meets performance goals set by the bank. Although today, the bank's utility
services have been adopted by many banks, but it is still important for banks to
expand its network. That creates a sense of security for customers coming to the
bank. In addition to expanding the network, strategic decision makers cannot ignore
the geographical position, serving the branches and transaction offices for their
banks. A branch located in a densely populated area, urban area and industrial zone
will be an ideal environment for all activities of the bank and especially the capital
mobilization of the bank. In contrast, in areas where economic and social

17
development capacity is limited, banks will not ignore it, but sometimes the bank
must accept loss-making business to gradually create a relationship in expanding the
market.
- Policies on expanding relations with credit institutions, commercial banks,
individuals and social organizations
The relationship with these organizations helps commercial banks set up
strategic plans. Especially, direct relationship with organizations, individuals,
businesses will help commercial banks in predicting cash flow. More importantly,
because of close relationship, the bank will have reasonable priorities to encourage
customers.
- Marketing policy
Marketing is understood as a system of strategies, program measures,
operational plans, to influence entire process of providing banking services to
satisfy the target customers. Theoretically, marketing activities cover almost
contents related to the performance of commercial banks, including the operation of
the capital mobilization policy. Through understanding and considering factors of
micro and macro-economic environment, marketing planners will offer the most
appropriate program accordingly. Marketing policies include the impact of many
factors such as: method of valuation (determination of interest rates), product
policies (providing services that banks can afford), distribution policies, promotion
policies - communication, ...
- Policy to support customers
This is an activity in which the bank will support and advise customers on
issues related to the financial-monetary-banking sector and more importantly, help
customers get the portfolio target, and select the types of services that the bank
provides. Through this business, the bank will help customers understand the effect
of not using cash in circulation and the effect of depositing money and assets in
banks rather than storing themselves.
- Policy to take care customers

18
The operation of this policy helps the bank strengthen its relationships with
customers, and at the same time, can expand the scope of activities. Because
customer in general wants to be highly respected and wants to be interested in by
others. Therefore, this policy helps banks strengthen the mutual relationship
between banks and customers. It is necessary for a bank to combine all policies to
achieveitsown goals, and most importantly, it is very important for a commercial
bank to pay attention and take care for customers.
1.3. Mobilizing capital from residents
1.3.1. Characteristics
Capital mobilization from residents’ accounts for a small proportion of
commercial banks' capital, but it is an annual growth target of commercial banks.
Therefore, commercial banks often find solutions to maintain and attract capital
mobilized from residents.
Large scale of residents’ deposit: Mobilization from the population is the
temporary idle mobilization in society that is stored by the people as a savings to
recover for future demand. Because the population is the most crowded object in the
economy, capital from this object will create a large-scale capital source for
commercial banks. From banks’ perspective, these are the sources that banks
organize to mobilize from residents to re-invest, so the cost of capital mobilized
from residents will create a great impact on the overall mobilization cost of the total
funds. This cost is considered as one of the most important criteria for commercial
banks to determine lending interest rates.
Residential deposits are the most stable source: This is the basis for
commercial banks to determine reserve ratios and lending rates.Due to the
continuous movement of cash flow in the economy, mobilized capital from other
credit institutions and socio-economic organizations are often unstable. Moreover,
equity has a very high cost of ownership, so it is not effective for banks to set up
lend. Meanwhile, capital mobilized from residents has a stable nature. When
depositing money in commercial banks, purpose of residents normally is to

19
accumulate to a higher amount of money in the future, so the bank has a plan and
can forecast its rise and fall time.
Capital mobilized from the population is a relatively long-term capital, which
is a premise for commercial banks to provide medium and long-term loans. this is
regulated by the cumulative behavior of people when sending money or lending to
commercial banks. Other sources, such as borrowing from the State Bank and
socio-economic organizations, are short-term due to the frequent use of these
organizations' capital.
1.3.2. Role
For society: Mobilizing residential deposits increase savings and reduce
spending, create jobs for workers, increase production and business, save issuance
costs and cash circulation for the society.
For residents: Increasing income for the people through interest income,
difference in buying and selling valuable papers, income from gifts from the form of
savings.
For commercial banks: increase the capital of commercial banks, like a
buffer for business activities of banks, residents are not only the object of
commercial banks but also customers of commercial banks, thereby business of
commercial banks becomes effective.
1.3.3. Mobilization forms
1.3.3.1. Savings
Savings deposit is an amount of money deposited into a savings account,
certified on a savings card, and entitled to interest in accordance with the
regulations of the savings organization and insured in accordance with the
provisions of law on deposit insurance. Savings are reserved for individuals for
future consumption purposes but are temporarily deposited in banks to earn interest.
This is an important capital source of the bank to serve mainly lending of all
economic sectors. The main purpose of the savings deposit is not to use in the
transaction but to earn interest through the accumulated amounts.

20
Savings deposits are categorized according to different terms:time-deposit
account and demand-deposit account.
Time-deposit
Time deposit account is a type of non-term savings deposit that customers
send to banks without an agreement about the time of withdrawal.Customers can
deposit or withdraw at any time. They also can withdraw some or all of savings
according to their requirements. However, unlike personal accounts, senders are not
entitled to bank payment services. Mostofnon-term savings customers do not
identify specific spending needs in the future, but they want to enjoy an interest rate
during the maturity. Although time-deposits are not considered as long-term capital
sources, they are considered ascheap, relatively stable sources of capital. Therefore,
banks just use them for a longer term at a certain level. Banks often pay higher
interest rates for this type of depositthan that ofpayment deposits
The most disadvantage oftime-deposits are the volatility.Therefore the bank
cannot use all this savings for its programs.
Term savings deposit (demand-deposit accounts)
This is the type of saving in a bank based on an agreement on term, interest
rate, payment method, etc. For this type of deposit, the client is only withdrawn
when it is due. In fact, the bank can still respond if the customer needs to withdraw
money before the maturity date with low interest rates (usually at the interest rate of
demand deposits) or even no interest. For banks, this is a stable source of capital for
credit activities. With this type of savings, the main purpose of the sender is
profitability, so the interest rate issue is an important issue. In order to serve the
different needs of customers as well as their capital needs, the bank can apply
regular term savings deposits (depositors only receive interest in each period).
Furthermore, it is possible to apply bonus savings with interest to encourage people
to deposit their savings into the bank. Banks also apply different savings deposit
term to senders to choose the most suitable option for them (1month, 3 months, 6
months ...). For each differentterm, the banks usually apply different interest rates
and always ensures that: the longer the termis, the higher the interest rateis. In

21
addition, classification can be based on type of currency: local currency and foreign
currency savings deposits.
Savings deposit in local currency
The bank mobilizes savings deposits in Vietnam Dong through various forms
of mobilization for many purposes. To commercial banks in Vietnam, mobilized
deposits in VND accounts for high proportion, meeting the demand for bank's capital
use
Savings deposits in foreign currencies
Besides mobilizing savings deposits in VND, the bank also mobilizes
savings deposits in foreign currencies. The amount of savings in foreign currency
converted into VND also accounts for a large proportion in the bank's operations.
The purpose of mobilizing foreign currency deposits of banks to meet international
payment needs as well as foreign currency trading activities of customers and
banks. Currently, the bank's savings in foreign currencies are mainly USD or EUR.
1.3.3.2. Personal account
Commercial banks can mobilize residential deposits in the form of personal
accounts for payment purpose. Personal payment account is the type of account that
the user has full rights to use within the balance as a customer can withdraw money
at the counter or at an automated teller machine. Personal payment account can be
used to make payment via Bank. The customer must comply with the bank's
regulations and instructions during the payment process, and the bank must perform
the liquidity as requested by the customer and will only be denied when the
payment amount exceeds the current balance or illegal documents. Deposits from
customers via personal accounts are a source of funds that banks can get at low cost
because depositors are willing to ignore some of the interest to obtain a liquid asset
for easy use in payment. Personal accounts create a premise for expanding payment
operations through banks, reducing the widespread use of cash in the economy.
From this activity, the bank will collect fees and change its revenue structure,
diversify banking services. However, there are also disadvantages arising from the
use of this fund because of its low stability, completely dependent on business

22
characteristics as well as customer credit. Therefore, banks are less active in using
this capital.
1.3.4 Assessing activities of mobilizing residential capital of commercial banks
1.3.4.1 Quantitative goals
As mentioned in the above contents, we know that the capital mobilized from
the population always accounts for a large proportion of the total mobilized capital
of commercial banks and this is a relatively stable source of money. Therefore,
capital mobilized from the population is a major source of capital used by banks for
lending and other investment activities to make a profit. Thus, the mobilization of
residential capital will directly affect the business performance of the bank.
Therefore, banks always focus on controlling the amount of capital mobilized from
the population.
In order to do this, banks need to identify the specific needs of capital
mobilization from residents and clear and detailed implementation plans. If the
capital is too small, banks are forced to mobilize more from other sources at higher
costs and less stable. Conversely, if the mobilized capital is too large and the bank is
unable to lend, then the bank still must pay the full interest to the customer while
not having interest income. Therefore, if the bank cannot determine the exact size of
mobilized capital, the bank's capital mobilization efficiency will be negatively
affected. When determining the specific and accurate mobilization scale,
commercial banks will be easier to implement specific capital mobilization
programs and products.
Therefore, the efficiency of mobilizing capital from the population will be
assessed through the following criteria:
Rate of completing capital mobilization plan:
Completed capital
mobilization ratio
=
Actual mobilized capital
Expected mobilized capital
*100% (1)

23
If (1)> 100%, that means that, in fact, the bank has mobilized beyond the
original expected level. When banks do not lend capital, the efficiency of bank
mobilization will be reduced. This difference increases the cost of capital
mobilization because banks still must pay interest to customers while the bank does
not make any profit from mobilized capital. (1) The greater than 100% the (1) is, the
less effective the mobilization of capital from banks is.
If (1) <100%, that means, the capital that the bank has mobilized capital is
not enough for the target. In order to meet the demand for capital for credit or other
investment, the bank must mobilize additional funds from other sources such as
mobilized capital from other financial and credit institutions, bank loans State ...
Thus, banks will incur higher mobilization costs, and at the same time, the bank
loses the opportunity to increase income due to not having enough loans. This has a
negative impact on the profitability of commercial banks.
The ratio of capital mobilized from the population to the total mobilized
capital of the whole bank
Capital mobilized from
residentsout of total mobilized
capital of the whole bank
=
Total mobilized capital from residents
Total capital mobilization of the whole bank
This ratio should be carefully considered because the mobilized capital from
the population always accounts for a large proportion of the total mobilized capital
of the bank. The capital mobilized from this source as well as the cost to mobilizing
create a huge impact on the total capital mobilization of the bank. Depending on the
strategy and plan of each manager, this ratio will be adjusted so that it is reasonable
and suitable to the different business cycles of the bank.
Mobilization cost/Mobilized capital scale: Because the cost of mobilization
includes interest payment and non-interest expenses, we can divide this ratio into
the following two ones:
+ Interest payment / mobilization capital scale: This indicator indicates how
much an average bank must pay to customers per a unit of mobilized capital.

24
+ Non-interest expenses / mobilized capital scale: This indicator indicates
how much the bank must pay for management, advertising and marketing activities
per a unit of mobilized capital.
Capital mobilization is effective if the mobilization cost / mobilization scale
is at the lowest level possible. To do this, commercial banks need to determine
reasonable interest rates to increase costs but not too low to attract customers and
ensure competitiveness, and to minimize other interest expenses.
Average deposit savings per capita: This indicator assesses the level of
mobilization from residents.
Average deposit savings per
capita ratio
=
Total savings deposit within the area
Total population within the area
If this rate is high enough, that means capital mobilization has achieved good
results, because the bank has affected the sense of savings, the sense of depositing
money in banks and has attracted a temporary source of idle capital from population
to serve the cause of economic development.
1.3.4.2 Qualitative criteria
In addition to the above quantitative criteria, the mobilization of capital from
residents is also assessed through qualitative criteria.
Stability of capital mobilized from residents
One of them is the stability of mobilized capital. Stability in mobilized
capital is understood as the size of mobilized capital without sudden changes in
short time periods. When mobilizing capital from the population, the bank can
estimate the time it is possible to use that capital for its business activities. Because
the term deposits usually account for a high proportion of the total mobilized capital
from the population, the bank's capital mobilization is only effective when the
bank's time is expected to be used. using measured capital sources for the purpose
of your business. Mobilized capital sources are highly stable and do not change
abruptly. For example, there is no simultaneous withdrawal of customer deposits,
causing insolvency as well as a large decrease in total deposits of banks.
Stability of mobilized capital structure

25
In addition to assessing the stability in mobilized capital, banks' capital
mobilization efficiency is also considered by the structure of mobilized capital in
currencies, by term or by capital mobilization form.
The mobilization of banks' capital is effective if the capital structure does not
fluctuate too much between currencies, maturities or between different forms of
mobilization in a short time. Besides, if the mobilized capital structure is too
volatile, the bank's plan to use capital will be changed. Since then, the bank's
business results will not be guaranteed, leading to a decrease in mobilization
efficiency.
1.3.5 Factors affecting the mobilization of residential capital of commercial banks
All business activities are subject to certain impacts of the surrounding
environment. The mobilization of residential capital, a leading important business
of commercial banks is not outside of that rule. In the market mechanism,
commercial banks are forced to compete to attract large capital at low cost to
survive and develop. Therefore, it is necessary to study the influencing factors and
find solutions to improve capital mobilization. Factors affecting mobilization are
inherent and varied, but there are two groups of factors: objective and subjective.
1.3.5.1 Objective factor
- Economic development cycle: In the condition of stable and stable
economic development, people's income is guaranteed and stable, the demand of
population accumulation is higher, from which the amount of deposits banks
increase or the ability to mobilize residential capital increases. On the other hand,
when the economy grows high and stable, the demand for capital increases. The
bank can expand credit by raising deposit rates to stimulate people to deposit money
into banks. Therefore, banks can create capital to meet the demand for credit for the
economy. In contrast, when the economy falls into recession, the real income of
workers decreases, reducing consumer confidence in the stability of the currency.
At the same time, when the income is low, the amount of idle money in the whole
economy will decrease, making the amount of money deposited into the banking

26
system at risk of being withdrawn. At that time, the bank will face difficulties in
capital mobilization.
- Legal environment: All business activities, in which the bank's operations
are subject to the legal system. The activities of commercial banks are subject to the
Law on Credit Institutions and the system of other legal documents of the state.
Commercial banks must comply with the regulations issued by the State Bank in
each period on interest rates, reserves, lending limits ... In the binding of laws, the
elements of the capital mobilization operation change will change the scale and
quality of capital mobilization activities. On the other hand, commercial banks are
enterprises operating in the monetary field, which is a very risky field, so banks
must strictly comply with the provisions of law.
- Competitive environment: The financial market is becoming more and more
active due to the participation of various types of banks and non-bank financial
institutions. Currently, the number of banks is increasing, along with the strong
development and developmentof many non-bank organizations. Meanwhile, idle
capital in the population and economic organizations is limited. Therefore, the
monopoly of the banking system declined and affected the bank's operational
efficiency. Banks mainly compete in the form of interest rates and services.
Therefore, the bank must build the most reasonable and attractive interest rate
combined with its reputation and prestige to gain market share.
- Environment - society: The life and income of the people are the direct
factors that determine the amount of money deposited into the bank. Indeed, the
higher the income of a worker, the greater the capital mobilized into the bank.
Because, the need to accumulate people will tend to increase when income
increases. This accumulated amount will be used to satisfy higher demand in the
future.
Psychology and consumption habits of the people are also social factors
affecting the bank's capital mobilization. In developed countries, the demand for
non-cash payment via banks is very developed. Meanwhile, in the underdeveloped
countries, the preference for cash and the accumulation of money not deposited in

27
the bank is quite common. In addition, psychology and consumption habits are very
different between ethnic groups and regions. Therefore, rapid development of non-
cash forms is important in mobilizing capital from banks.
- Technology: When banks increase the application of high technology, the
ability to raise capital is increased also. The reason is that technology helps the bank
increase the ability to access to customers and reduce the processing time ...
Currently, commercial banks in Vietnam have introduced ATM machines to the
market for customers to use, therefore, customers can withdraw money anytime,
anywhere.
1.3.5.2 Subjective factor
Interest rate policy:
Interest rate is an important factor, which creates a significant impact on the
capital mobilization of commercial banks, especially for the capital that the senders
or people invest in banks for the purpose of interest.Interest rate isa factor that
banks use to compete with other banks and the money market. Therefore, only a
small difference in interest rates can push capital flows in the population to invest in
different directions. That is also the reason and motivation for investors or
depositors to transfer capital from one bank to another. Therefore, determining a
reasonable and competitive interest rate is an extremely important issue, must be
studied, considered, meticulous and comprehensive. However, banks must calculate
so that interest rates are both competitive and must ensure the lowest input costs and
profitable business.
Business strategy of the bank:
Business strategy is another factor that directly and indirectly affects capital
mobilization. When a bank has the right business strategy, it will achieve the set
objectives of cost as well as profit. The bank's strategies will involve service
products, price strategies, interest rates, distribution strategies, personnel
development strategy, etc., have a strong impact on capital mobilization. The Bank's
business strategy system is a realistic practice to assess the bank's capability and
management of business operations. Reasonable strategy will create trust for

28
customers, so the bank attracts more and more customers. In terms of customer
strategy, banks should classify customers by groups that have appropriate policies
for each type of customer.
Prestige and position of the bank:
Normally, customers choose reputable banks and market position to trade,
borrow, pay and guarantee ... The prestige and position of the bank has an important
meaning in the selection of customers, expressed specifically in financial capacity,
business performance, history, marketing quality ...Therefore, banks adopt the
quality of their operations (service quality, modern technology and civilized and
polite working style) ... will best satisfy all customer requirements. This is
considered a practical strategy to improve reputation and position in the market....
Forms of capital mobilization and services:
In the competitive conditions of the commercial banking system, the
diversification of banking products and services to meet customers' needs has a
great impact on the bank's business operations. With many different types of
products, customers can choose a product that fits their ability conditions. Thus,
commercial banks can attract more and more customers. Moreover, the bank has to
offer good and diversified services to increase its competitive advantage. By
offering more and more utilities, banks can attract more and more capital from all
economic sectors and people in society. Thereby, commercial banks would create
more close relationships between banks and customers.
Business network of the bank:
Organizing a wide and reasonable network in the residential area helps the
bank have more opportunities to attract more capital, helping customers save time
and costs to carry out transactions. However, the opening of the branch should be in
accordance with the conditions of the bank's capacity. Location factors also affect
customer psychology. A convenient location such as central area, densely populated
area, convenient transportation ... helps banks attract more customers. It can be said
that all customers want to deal with banks with beautiful locations, modern
facilities, dedicated and polite staff. A bank equipped with modern technology will

29
shorten the processing time, ensuring high accuracy in economic transactions.
Moreover, modern facilities, technology level, staff with high professional
qualifications are necessary conditions for them to solve their work quickly and
effectively ... Therefore, improve more quality of banking services provided to the
market. This is what customers are very interested in.

30
CHAPTER 2:
ACTUAL SITUATION OF MOBILIZING RESIDENTAL CAPITAL
ACTIVITIESAT VIETNAM JOINT STOCK COMMERCIAL BANK FOR
INVESTMENT AND DEVELOPMENT – EASTERN HANOI BRANCH
2.1. Overview of Vietnam Joint Stock Commercial Bank for Investment and
Development - Eastern Hanoi Branch
2.1.1. Overview of Vietnam Joint Stock Commercial Bank for Investment and
Development - Eastern HanoiBranch
BIDV was founded on 26 April 1957 under the initial name of Bank for
Construction of Vietnam, then renamed Bank for Investment and Construction of
Vietnam (1981 - 1990), Bank for Investment and Development of Vietnam (1990 -
2012), and Joint Stock Commercial Bank for Investment and Development of
Vietnam (since 2012).
Joint Stock Commercial Bank for Investment and Development of Vietnam -
Eastern HanoiBranch is a branch of Vietnam Joint Stock Commercial Bank for
Investment and Development, established in 1967 with the name of Dong Anh
Branch 4. The Dong Anh Branch 4was initially a branch of Hanoi Construction
Bank (old), with only 10 employees at the beginning.
The function of the branch was to carry out the allocation and lending
management of works within the two districts of Hanoi: Dong Anh and Soc Son. In
1983, it was split into Dong Anh Investment and Construction Department and Soc
Son Bank Branch. In 1987, it became the Dong Anh Investment and Construction
Bank Branch. Until 1990, the branch changed its name to Dong Anh Bank for
Investment and Development and was the second level branch directly under the Bank
for Investment and Development of Hanoi. The branch is responsible for carrying out
activities in the field of currency, credit and banking services with basic operations,
including receiving deposits, granting credits and providing payment services.
On November 28th, 2008, with the approval of BIDV Vietnam, Dong Anh
Branch changed its name to Eastern Hanoi branch – a branch ofInvestment and

31
Development Bank under the decision of no.983/QD-HĐQT. This had affirmed the
broader operation and its new position in the area.
On May 1st, 2012, the Board of Directors of Vietnam Joint Stock
Commercial Bank for Investment and Development issued the Decision No. 30/QD-
HDQT on the establishment of branches and transactions under Vietnam Joint Stock
Commercial Bank for Investment and Development. Accordingly, Vietnam Bank
for Investment and Development –Eastern Hanoi branch became Vietnam Joint
Stock Commercial Bank for Investment and Development - Eastern Hanoi branch
and hasofficially operated in the form of Joint Stock Commercial Bank under the
registration certificate code 0100150619086 registered for the fifth change on
August 16, 2012.
Field of business activities
Vietnam Joint Stock Commercial Bank for Investment & Development –
Eastern Hanoi Branch is an active branch of BIDV Bank in the eastern area of Hanoi,
this is a state-owned enterprise and functions as a commercial bank with following
services:
• Card services: ATM cards, international credit cards ...
• Overseas remittance service.
• Guarantee
• Loans: Short-term, medium-term and long-term, import and export
financing, consumer loans ...
• Payment service.
• Payment for import and export.
• Domestic payment
• Savings, deposits of economic organizations
• Insurance: Property insurance, damage insurance, construction and
installation insurance, fire and explosion insurance, motor vehicle insurance ... with
a large scope of operation and reasonable cost.
• Foreign currency trading.
Organizational structure:

32
According to Decision No. 3166 / QD-BIDV dated November 30th, 2016 of
the Board of Directors of Vietnam Joint Stock Commercial Bank for Investment
and Development on approving the organization model of the Branch and
promulgating regulations on main functions and tasks of Departments / Divisions,
Transaction Offices, Branch. At the request of Eastern Hanoi Branch, approving the
organizational apparatus of Eastern Hanoi Branchincludes departmentsas illustrated
in Figure 2.1:
Figure 2.1: Organization chart of Eastern Hanoi branch
The organizational structure of Eastern Hanoi Branch includes departments
with the main tasks:
Director
DeputyDirector
DeputyDirector
DeputyDirector
Corporate Department 1
Personal Department
Corporation Transaction Office
Personal Transaction Office
Treasury & Service Department
Financial Department
Integrated Planning Department
Credit management Department
Risk management Department
Phu Lo Transaction Office
Lien Ha Transaction Office
Duc Tu Transaction Office
Soc Son Transaction Office

33
- Board of Directors: including 1 director and 3 deputy directors. This is the
highest leadership, directly manage all activities of the Branch in general and
departments.
* Functional rooms:
+) Main tasks of the Corporate Department:
- Marketing services and developing business customer relationships;
- Trade finance operations and perform other duties as required by the
Branch Director.
+) Main tasks of the Personal Department:
- Sales of retail banking products and services
- Perform other duties as required by the Branch Director
+) Main tasks of Customer Transaction Offices:
- Directly manage accounts and transactions with customers
- Implementing the prevention of money laundering for arising transactions
in accordance with regulations of the State and BIDV; detect, report and promptly
handle transactions with suspicious signal oil in an emergency.
- Perform post-inspection for all accounting transaction activities at
Customer Transaction Office.
+) Main tasks of Treasury and Service Department:
- Directly perform operations on warehouse management and fund import /
export. Take full responsibility for ensuring the safety of treasury and monetary
security, ensuring asset safety of Branches / BIDV and customers.
+) Transaction Office: is the authorized representative of the Branch to carry
out: Transaction Office is a book-keeping unit under the Branch, operating in the
Hanoi area under the supervision of Branch Manager; has the function of carrying
out the operations of mobilizing savings capital, lending customers as individuals,
performing current payment services in the locality and operations related to deposit
accounts of the legal.
There are close relationships among departments at Eastern Hanoi Branch.
The departments always support and coordinate with others to facilitate the smooth

34
and organized process of implementing activities. The internal working process of
the Branch is carried out exactly like a chain where each department is a link.
Although independent departments perform their own operations, there is always a
link between the departments to work together to create a unified block throughout
the branch. The transaction offices are in many different locationswhich are not
concentrated in the same location, but the operation is always linked to other
departments and to the Branch to perform in the fastest way.
2.1.2. Business operation situation
Since its establishment, Eastern Hanoi branch operates in an upward
trendwith high profit. The branch always innovates to suit to the new economic
context. In order to survive and develop in the market economy, the Eastern Hanoi
branch defines a strategic to integrate and to compete with many domestic and
foreign commercial bank branches in Hanoi city. The branch operates closely with
the industry's orientation, and regularly reorganizes the bank structure in line with
business objectives in each specific period. With flexible monetary and credit
policies according to the change of the monetary market as well as the development
of the economy, the Eastern Hanoi branch has created a positionwith certain
activities in the area andcreated the trust with customers. Thus, the business
activities are always effective. the Eastern Hanoi branchin recent years has always
been a key branch of BIDV, successfully completed the assigned tasks, contributed
to the overall success of the BIDV system. Some important business targets of the
Eastern Hanoi branchare illustrated in Table 2.1.

35
Table 2.1. Business operation of BIDV - the Eastern Hanoi branch in 2015 – 2018
Unit: Bil. VND
Criteria
2015
2016 2017
2018
Results
Compared
to 2015
(+/-)
% Results
Compared
to2016
(+/-)
%
1 Earnings before tax (EBT) 135.5 180.24 44.74 33.02% 232.3 52.06 28.88% 307.7
2
Revenue &Expenditure difference
(included: seller payments, risk,
FPT VAMC’s debt)
209.2 275.42 66.22 31.65% 359.6 84.18 30.56% 491.1
3 Capital mobilization 8940 11850 2910 32.55% 12660 810 6.84% 14145
4 Credit 5900 6796 896 15.19% 8205 1409 20.73% 9481
5 Service income 68.97 97.95 28.98 42.02% 114.79 16.84 17.19% 148.2
6
Net income from services (exclude
currency trading and derivatives)
47.39 72.42 25.03 52.82% 70.82 -1.6 -2.21% 88.4
7 Retail credits 1167 1642 475 40.70% 1815 173 10.54% 2791
8
Retail creditexcluded: discount,
over-draft and credit card)
1115 1314 199 17.85% 1542 228 17.35% 1865

36
9 Currency trading and derivatives 19.6 13.53 -6.07 -30.97% 21.2 7.67 56.69% 23.6
10 Net income from card service 2.49 3.1 0.61 24.50% 13.73 10.63 342.90% 18
11 Insurance income 9.1 11.28 2.18 23.96% 14.44 3.16 28.01% 18.6
12 Debt collected from HTNB 22.04 25.47 3.43 15.56% 19.79 -5.68 -22.30% 34.3
13 Debt collected from VAMC 0 13.7 13.7 100% 1.48 -12.22 -89.20% 70.2
14 Bad debt ratio 0.68% 1.04% 1.26% 1.15%
15 Bad debt ratio from retails 2.36% 3.04% 2.18% 1%
16 Group 2 debt ratio 1.35% 0.93% 2.23% 0.98%
17 Risk provision
73.68
89.76 16.08 21.82% 124.66 34.9 38.88% 183
18 Mobilizing from retails 3163 4920 1757 55.55% 6015 1095 22.26% 6617
19
Mobilizing from financial
institutions
5011 4550 -461 -9.20% 3754 -796 -17.49% 3343
20 Mobilizing from organizations 766 2380 1614 210.7% 2891 511 21.47% 4185
21 Overhang interest
33.85
47.7 13.85 40.92% 64.9 17.2 36.06% 62.2
(Source: Business Report of BIDV – The Eastern Hanoi Branch in 2015-2018)

37
The above table shows that the branch's business results are always profitable in
the period of 2015-2018. Pre-tax profit of the branch increases annually. if 2015 EBT
reached VND135.5 billion by 2016, the figure had reached 180.24 billion, up 33.02%
compared to 2015. Until 2017, profit before tax reached 232.3 billion, up 28.8%
compared with 2016. Expected profit before tax in 2018 reached 307.7 billion. The
main business activities have been increasingly expanded and achieved high efficiency,
specifically:
* Credit activity:
Credit balance of the Branch has increased nearly 11 times, the average growth
in the period 2005 - 2015 reached 28% / year. Since 2015, credit growth has still
ensured according to the plan but there has been a decrease compared to the previous
period with an average growth rate of 17%.
The orientation of credit operations of the Branch always follows the
development orientation of the Head Office. Besides maintaining and developing large
enterprise customers, the Branch has strengthened the development of small and
medium-sized enterprises, new retail customers. Until now, the debt of this customers
in the Branch currently accounts for 58% of the total debts.
In addition, the credit quality of the Branch is always focused and strictly
controlled. The ratio of bad debts and overdue debts of the Branch has decreased from
over 22% in 2005 to 1.15% in 2018, lower than the overall orientation of the system
(<2.5%). Especially, the debt ratio of Group 2 is always maintained below 1%. Every
year, the Branch always makes a full provision of 100% risk provisions according to
debt classification.
* Capital mobilization
Capital mobilization has always been a strong point of BIDV – the Eastern
Hanoi branch. The branch always focuses and actively implements and applies
mechanisms and policies in managing the mobilization of the Head Office to enhance
the capital mobilization activities (Table 2.2).

38
Table 2.2. Capital mobilized results in BIDV – The Eastern Hanoi branch In the period of 2015 – 2018
Unit: Bil. VND
Criteria
2015 2016 2017 2018
Result (%) Result (%)
Com-
pared
to
2015
(%)
Result (%)
Com-
pared
to
2016
(%)
Result (%)
Com-
pared
to
2017
(%)
Capital mobilized in total 8.940 100 11.850 100 32,55 12.660 100 6,8 14.145 100 12
1 From retails 3.163 35 4.920 42 55,55 6.015 48 22,3 6.617 47 10
2
From financial
institutions
5.011 56 4.550 38 -9,20 3.754 30 -17,5 3.343 24 -11
3 From organization 766 9 2.380 20 210,7 2.891 23 21,5 4.185 30 45

39
As shown in Table 2.2,the current capital mobilization result of the Eastern
Hanoi branch has been very positive with good annual growth. In 2018 mobilized
capital reached 14,145 billion VND, 10 times higher than that in2005 when the
branch was established. The average growth rate in the period of2015 - 2018
reached 17%. This is a very positive signal in the context of fierce competition
among commercial banks.
Capital mobilization structure has changed significantly in the period from
2015 to 2018. In 2015, mobilizing capital from financial institutions still accounted
for the majority with the proportion of 56% of the total mobilized capital. From
2016, there has been a change, capital mobilized from retail activities has become
the main driving force for capital mobilization of the branch with the proportion of
2016, 2017 and 2018 respectively 42%, 48 % and 47%. This shows that BIDV – the
Eastern Hanoi branch is really transforming itself to become the leading retail bank
in Vietnam.
* Other business activities
In addition to the main business activities of credit operations, BIDV – the
Eastern Hanoi branch actively implements other business activities such as foreign
currency trading and derivative activities, card, insurance cross-selling. They are
shown in table 2.3.

40
Table 2.3. Other business of BIDV – the Eastern Hanoi branch
Unit:Bil. VND
Criteria 2015
2016 2017
2018
Result
Compar
ed to
2015
(+/-)
% Result
Compar
ed to
2016
(+/-)
%
1
Net income from
services (exclude
currency trading
and derivatives)
47 72 25 52.82 71 -2 -2.2 88
2
Currency trading
and derivatives
20 14 -6 -30.97 21 8 56.7 24
3
Net income from
card service
2 3 1 24.50 14 11 342.9 18
4 Insurance income 9 11 2 23.96 14 3 28 19
Table 2.3 shows that other business activities of BIDV – the Eastern Hanoi
branch also had a good increase in the period 2015-2018.
Net income from card and insurance business activities has achieved high
growth rates. In 2017, net income from card business reached VND 21 billion, an
increase of 342.9% compared to 2016 and continued to grow in 2018 with an
increase of 14.3% compared to 2017.
The insurance cross-selling business has also made steady steps, with
continuous high growth, with an increase of 23.96% in 2016, 28% in 2017 and
35.7% in 2018.
Net service fee of BIDV – the Eastern Hanoi branch also achieved good
growth. In 2015, net service fee (excluding foreign exchange and derivative fees)
was only VND 47 billion. By 2018, this number has reached 88 billion, an increase
of 87% compared to 2015.

41
The branch's foreign currency trading activity is also very stable in the period
2015-2018. With increasingly diversified products, the branch's foreign currency trading
activities on the one hand have met the needs of customers, on the other hand, ensuring
abundant foreign currency supply for banks. The fee that BIDV – the Eastern Hanoi
branch obtained from this activity is relatively stable in the last 4 years. By the end of
2018, the fee collected was VND 24 billion, an increase of 14.3% compared to 2017.
This shows that other business activities of BIDV – the Eastern Hanoi branch
are having a good contribution to the business results of the whole branch.
2.2. Actual situation of mobilizing residents’ capital activities at BIDV – the
Eastern Hanoi branch
2.2.1. Scale of mobilized capital
In recent years, the world economy and Vietnam's economyaswellhave
experienced many changes. In addition, there is a fierce competition among
commercial banks to attract idle capital in the economy. BIDV – the Eastern Hanoi
branch is not outside the above-mentioned impacts. Table 2.4, table 2.5 and Graph
2.1 reflected some results of capital mobilization of BIDV – the Eastern Hanoi
branch in the period from 2015 to 2018.

42
Table 2.4. Capital mobilized in scaleofBIDV – the Eastern Hanoi branch in
2015-2018
Unit: Bil. VND
Source
2015 2016 2017
2018
Re-
sults %
Re-
sults %
Re-
sults %
Re-
sults %
Capital mobilized in
total 8940 100 11850 100 12660 100 14145 100
1
From
Residents
3163 35 4920 42 6015 48 6617 47
2
From
financial
institutions
5011 56 4550 38 3754 29 3343 23
3
From
organization
766 9 2380 20 2891 23 4185 30
Table 2.5. Residents’ capital mobilized in scaleofBIDV – the Eastern Hanoi
branch in 2015-2018
Year
Residents’ capital
Growth rate (%)
Compared to total
capital mobilized
(%)
Amount
(Bil. VND)
2015 35 3163 27
2016 42 4920 55.55
2017 48 6015 22.3
2018 47 6617 10
Comment [Office2]: Xemlạicáccộttỷlệ %
cộnglạiquá 100%

43
Graph 2.1. Annual resident’s capital mobilized in 2015– 2018
Table 2.4 and chart 2.1 have shown that the scale of population mobilization
in the period of 2015-2018 saw a strong growth, with the average growth rate of the
whole period reaching 28.7%. 2016 marked the strongest growth with a growth rate
of 55.55%, with the mobilized capital of VND 4,290 billion. This 2016-year marked
a strong shift in capital mobilization structure of BIDV – the Eastern Hanoi branch.
Capital mobilization from residents became the main driving force in the
total capital mobilization scale of BIDV, accounting for the largest proportion of
capital mobilization compared to other mobilized components. This is completely
reasonable when BIDV in general and BIDV – the Eastern Hanoi branch are
gradually shifting to the leading modern retail banking model in Vietnam.
However, in the context of the volatile economy and fierce competition of
banks in the area as well as other branches, the mobilization of capital from
commercial banks for investment and development costs ofBIDV – the Eastern
Hanoi branch has shown certain difficulties. Although the mobilized capital has
increased, the growth rate of the last 2 years has slowed. In 2016, the growth rate
was over 55%, in 2017, this figure was only 22.3%, and by 2018, it was only 10%.
This figure reflects an increasingly competitive environment in banking services so
people will have more choices. Especially in the context of easily accessible
information, it makes the level of competition in attracting capital from the residents
become more severe.
3163
4920
6015
6617
27 55.55 22.3 10
35 42 48 47
0
1000
2000
3000
4000
5000
6000
7000
8000
2015 2016 2017 2018
mobilized
Residents’/tot
al capital
mobilized (%)
Growth rate
(%)

45
2.2.2. Structure of residential capital mobilization
2.2.2.1. In terms of currency
Table 2.6. Capital mobilized in currency in 2015 – 2018
Unit: Bil. VND
Capital
mobilized
2015 2016 2017 2018
Amount (%) Amount (%)
Compared
to 2015 (%)
Amount (%)
Compared
to 2016
(%)
Amount (%)
Compared
to 2017
(%)
From residents 3163 100 4920 100 55.5 6015 100 22.3 6617 100 10.0
VND 3083.9 97.5 4811.76 97.8 56.0 5900.72 98.1 22.6 6504.511 98.3 10.2
Foreign
currencies
(converted into
VND)
79.075 2.5 108.24 2.2 36.9 114.285 1.9 5.6 112.489 1.7 -1.6

46
Graph 2.2. Capital mobilized in currency in 2015 – 2018
Table 2.6 and chart 2.2 have shown that the mobilized capital of the bank
over the years of 2015-2018 is mainly domestic currency, foreign currency only
accounts for a small proportion. The proportion of resident mobilization in local
currency always accounts for over 97%, especially in 2018, accounting for 98.3%.
This reason is mainly due to the interest rate gap between VND and foreign
currencies, causing the comparison of customers when sending money. In fact, from
September 28, 2015, the interest rate applicable to USD deposits of organizations
(except for credit institutions and foreign bank branches) is 0% / year; The
maximum interest rate applicable to personal deposits is 0.25%/year. Therefore,
customers tend to sell foreign currency to banks and deposit in local currency.
2.2.2.2. In terms of maturity
98% 98% 98% 98%
03% 02% 02% 02%
00%
20%
40%
60%
80%
100%
120%
2015 2016 2017 2018
Vietnam Dong
Foreign
currencies
(converted into
VND)

47
Table 2.7. Residents’ capital mobilized in terms of maturity in 2015-2018
Unit: Bil. VND
Criteria
2015 2016 2017 2018
Compared
to 2015
(%)
Amount (%)
Compared
to 2016
(%)
Amount %
Compared
to 2017
(%)
Residents’ capital 3163 100 4920 100 55.5 6015 100 22.3 6617 100 1
Time-deposits 411.19 13 492 10 19.7 601.5 10 22.3 727.87 11 21
Less than
12months
2435.51 77 3542.4 72 45.4 4511.3 75 27.4 5028.92 76 11
More than
12months
316.30 10 885.60 18 180 902.3 15 1.9 860.21 13 -4.7

48
Graph 2.3. Annual residents’ capital mobilizes in 2015– 2018
Deposit term greatly affects the proportion of each term in the total
mobilized capital.
Table 2.7 shows that short-term deposits always account for over 70% of
the total mobilized capital from the residents. Short-term deposits include time-
deposits, demand-deposits and savings, loans with less than 12month terms. In fact,
non-term mobilized capital ofBIDV – the Eastern Hanoi branch has contributed
greatly to the bank's business performance because this is the capital source with the
lowest interest payment. Although short-term capital is highly volatile, but due to
large numbers, transactions (sending, withdrawing) occur regularly. Therefore, the
volatility of short-term capital does not cause too much concern about bank’s
liquidity. Trust and prestige are the competitive advantages of BIDV – the Eastern
Hanoi branch in attracting demand deposits. These advantagesare formed from the
following factors: tradition, prestige and long-term prestige, modern technology,
effective interest rate management regime, good service quality, appropriate service
fee schedule, ... Besides, BIDV is a strong unit in payment by debit card products,
ATM cards, .... Non-cash payment services.
Digital banking services such as BIDV SmartBanking - are outstanding
productswith many utilities, that enable customers to proactively carry out
transactions, manage finance safely and quickly. The convenient services of BIDV
Smart Banking include: 24/7 money transfer, bill payment (electricity, telecom, air
13% 10% 10% 11%
77%
72% 75% 76%
10%
18% 15% 13%
2015 2016 2017 2018
Time-deposit
Less than 12m
More than 12m

49
ticket, train ticket, hotel booking, tuition payment, cable TV ...); Recharge (phone,
buy game card, load e-wallet ...), Online deposit / withdrawal, Online shopping.
In addition, BIDV Bank Plus or the popular and widely used credit card
products have also mobilized a large amount of idle capital in the population with
low interest payment costs maintained in deposit accounts.
BIDV's digital banking products have developed rapidly and are trusted
by consumers. On 11/29/2018, Joint Stock Commercial Bank for Investment and
Development of Vietnam (BIDV) has successfully passed hundreds of nominations
to be in the Top 10 businesses voted by consumers at the program "Trust & Use
Vietnam 2018”. In 2017, the total number of new customers registering electronic
banking services reached over 2 million, with an annual growth rate of over 35%. It
is expected that by the end of 2018, the growth rate will continue to have a strong
increase. The number of transactions via E-banking channel reached 44 million
transactions. The number of inter-bank money transfer transactions via electronic
banking accounts for 45% of the total money transfer transactions to the BIDV
system. BIDV ranked No.1 in terms of quantity and value of transactions,
accounting for 22.25% of the total trading volume of the whole market through
NAPAS channel. By the end of June 2016, BIDV had more than 14 million bill
payment transactions on electronic banking channels, of which BIDV
SmartBanking was the focus.
The development of this form of mobilization not only enhances the
mobilized capital at low cost but also contributes to promoting the implementation
of the policy of non-cash payment development of Government.
Besides non-term deposits, term deposits, especially term deposits and
promissory notes, deposit certificates ... are an important additional source. Due to
high stability, term capital increases the capital utilization ratio, increases the ratio
of medium and long-term capital investment. BIDV – the Eastern Hanoi branch has
applied many forms of mobilization to attract this capital source: saving term of 01
month, 02 months, 03 months, 06 months, 09 months, 12 months, ..., 60 months
with different interest rates. In addition, the branch also implements savings
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50
mobilization campaigns, issuing promissory notes and bonds with preferential
interest rates according to the general guidelines of Joint Stock Commercial Bank
for Investment and Development of Vietnam. “Send a place, withdraw many
places” process at any of BIDV's transaction points nationwide create favorable
conditions for customers to deposit and withdraw money and thus contribute to
eliminating the psychology of holding cash of residents, encourage them to send
money to the bank. Therefore, the deposit rate of residents with a term of over 12
months in BIDV – the Eastern Hanoi branch in recent years has been kept at a
stable level, steadily growing along with the new growth rate of the Bank's capital
mobilization.
2.1.1.1. In terms of mobilized forms
Graph 2.4. Annual residents’ capital mobilizes in terms of form in 2015– 2018
a. Common mobilization form
This is a form of mobilizing temporarily idle funds from residents as well as
foreign citizens in Vietnam in VND and foreign currencies. This type of savings has
many flexible terms: non-term, 1 month, 2 months, 3 months, 6 months, 9 months,
12 months, 18 months, 24 months and greater than 24 months; For each term and
different types of money, there will be an appropriate interest rate for customers to
choose. For term savings, if the customer does not withdraw both principal and
interest at maturity, the interest will be credited to the original and transferred to the
new term. In this case, each term has an appropriate interest rate for customers to
choose; The current interest rate will be applied to the new term. With savings of 6
78% 75%
88%
73%
16%
20%
11%
26%
06% 05%
01% 01%
00%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2016 2017 2018
Common form
Promotion
savings
Valuable papers
issuing
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51
months or more, the bank applies various forms of interest payment such as
monthly interest payment, interest payment every 3 months.

52
Table 2.8. Residents’ capital in terms of mobilized forms in 2015-2018
Unit: Bil. VND
Criteria
2015 2016 2017 2018
Compared
to 2015
(%)
Amount (%)
Compared
to 2016
(%)
Amoun
t
(%)
Compared
to 2017
(%)
mobilized
3163 100 4920 100 55.5 6015 100 22.3 6617 100 10
Common form 2464 77.9 3690 75 49.8 5275.16 87.7 43
4843.6
4
73.2 -8.2
Promotion savings 512.41 16.2 993.84 20.2 94 667.665 11.1 -32.8
1693.9
5
25.6 153.7
Valuable papersissuing 186.62 5.9 236.16 4.8 26.5 72.18 1.2 -69.4 79.40 1.2 10
7004143

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