Assignment 1 Final - Nguyen Thuy Quynh

Vietcombank Always for customers success
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Transmitted to: Vietcombank
Prepared for: Ms. Mary Eloisa Esmenda (Lecturer) Mr. Nguyen Trung Hau (Tutor) Unit 4: Business environment Banking Academy, Hanoi BTEC HND in Business (Finance)
Prepared by: Nguyn Thy Qunh Carol

Registration No.: ITP F02146
November 25, 2009

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Table Of Contents
EXCUTIVE SUMARY.................................................................................................................................................7 INTRODUCTION (PART 1).......................................................................................................................................8 I MISSION, VALUES, OBJECTIVES AND ASSESS THE INFLUENCE OF STAKEHOLDERS ...............9 I. 1. MISSION ................................................................................................................................................................9 I. 2. VALUES. .............................................................................................................................................................10 I. 3. OBJECTIVES. ........................................................................................................................................................11 I. 4. ASSESS THE INFLUENCE OF STAKEHOLDERS. ..............................................................................................................14 I. 4. 1. Definition of stakeholders mapping.......................................................................................................14 4. 2. Internal stakeholders..................................................................................................................................15 I. 4. 4. External Stakeholders..............................................................................................................................16 II. EVALUATE THE EXTENT TO WHICH SELECTED VIETCOMBANK ACHIEVES THE OBJECTIVE OF THREE STAKEHOLDERS................................................................................................................................18 II. 1. INTERNAL STAKEHOLDER.......................................................................................................................................18 II. 2. CONNECTED STAKEHOLDER....................................................................................................................................19 II. 3. EXTERNAL STAKEHOLDER......................................................................................................................................20 III. THE RESPONSIBILITIES OF THE SELECTED VIETCOMBANK AND STRATEGIES TO MEET THEM .........................................................................................................................................................................20 III. 1. DEFINITION: THE RESPONSIBILITIES OF AN ORGANIZATION.........................................................................................20 III. 2. SOCIAL RESPONSIBILITIES OF VIETCOMBANK............................................................................................................21 III. 3. ENVIRONMENTAL RESPONSIBILITIES OF VIETCOMBANK..............................................................................................21 III. 4. ETHICS AND BUSINESS OF VIETCOMBANK................................................................................................................21 III. 5. MANAGEMENT RESPONSIBILITIES OF VIETCOMBANK .................................................................................................22 III. 6. PUBLIC RELATION AND CORPORATE IMAGE OF VIETCOMBANK ....................................................................................22 INTRODUCTION (PART 2).....................................................................................................................................23 IV. THE ECONOMIC SYSTEM OF VIETNAM ATTEMPT TO ALLOCATE AND MAKE EFFECTIVE USE OF RESOURCES WITHIN THE COUNTRY...............................................................................................25 IV. 1. THE ECONOMIC SYSTEM.......................................................................................................................................25 IV. 2. THE ALLOCATION OF RESOURCES WITHIN THE VIETNAM ..........................................................................................26 IV. 2. 1. Land.......................................................................................................................................................26 IV. 2. 2. Labor.....................................................................................................................................................27 IV. 2. 3. Capital...................................................................................................................................................28 V. THE IMPACT OF SOCIAL WELFARE AND INDUSTRIAL POLICY INITIATIVES ON VIETCOMBANK AND THE WIDER COMMUNITY .........................................................................................30 V. 1. DEFINITION: SOCIAL WELFARE AND INDUSTRIAL POLICY.............................................................................................30 V. 1. 1. Social welfare.........................................................................................................................................30 V. 1. 2. Industry policy........................................................................................................................................31 V. 2. VIETNAMS SOCIAL WELFARE POLICY.......................................................................................................................31 V. 2.1 Vietnams social welfare policy on unemployment..................................................................................31 V. 2. 2. Vietnams social welfare policy on poverty alleviation. ........................................................................31 V. 2. 3. Vietnams social welfare on basic education and gender equality. ......................................................32 V. 3. ASSESS IMPACT OF VIETNAMS SOCIAL WELFARE......................................................................................................32 V. 3. 1. Assess impact of Vietnams social welfare on Vietcombank. ................................................................32 V. 3. 2. Assess impact of Vietnams social welfare on related industry and wider community..........................33 V. 4. VIETNAMS INDUSTRIAL POLICY..............................................................................................................................33 V. 4. 1. Vietnams industrial policy on investment in human. ........................................................................33
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V. 4. 2. Vietnams industry policy on innovation ...............................................................................................34 V. 4. 3. Vietnams industry policy on infrastructure development......................................................................34 V. 5. IMPACT OF VIETNAMS INDUSTRIAL POLICY..............................................................................................................34 V. 5. 1. Impact of Vietnams Industrial policy on Vietcombank........................................................................34 V. 5. 2. Impact of Vietnams industrial policy on related industry and wider community.................................35 VI. THE IMPACT OF MACRO ECONOMIC POLICY (FISCAL AND MONETARY POLICY) MEASURES AND INFLUENCE OF THE GLOBAL ECONOMY ON VIETCOMBANK AND STAKEHOLDERS IN VIETNAM............................................................................................................................36 VI. 1. THE MACROECONOMIC POLICIES AND ITS TOOLS THEORY AND IMPACT OF MACROECONOMIC POLICES ON ECONOMIC VIETNAM. ..................................................................................................................................................................................36 VI. 2. CURRENT SITUATION AND IMPACT OF VIETNAMS FISCAL POLICY. ..............................................................................37 VI. 3. CURRENT SITUATION AND IMPACT OF VIETNAMS MONETARY POLICY.........................................................................37 VI. 4. IMPACT OF VIETNAMS FISCAL AND MONETARY POLICY ON VIETCOMBANK AND STAKEHOLDER.....................................37 VI. 5. GLOBAL ECONOMY AN GLOBAL FINANCIAL CRISES IN US, EU, JAPAN ......................................................................38 VI. 6. THE INFLUENCE ON VIETNAM ECONOMY, VIETCOMBANK, STAKEHOLDERS....................................................................39 CONCLUSION ...........................................................................................................................................................40 RECOMMENDATION..............................................................................................................................................41 REFERENCE ............................................................................................................................................................42 APPENDIX ................................................................................................................................................................47
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EXCUTIVE SUMARY
The proposal of project researches Vietcombank Company on various aspects. It will show that Vietcombank will have how impaction to business environment of Vietnam. The Bank for foreign Trade of Vietnam (now Vietcombank) was established under the Decision 115/CP dated October 30th, 1962 by separating from foreign exchange management department of the central bank (now State bank). Vietcombank operated under the direct management of state bank with the function of the only bank to serve external economic affairs and export-import lending for the whole country. 1995, Vietcombank was awarded by Asian Money which is reputable monetary magazine in Asia as the first bank in Vietnam. On September 21st, 1996, Governor of State bank gave the decision 286/ Q-NH5 that the bank for foreign trade of Vietnam was reorganized under the decision 90/Q-TTg dated march 7, 1994. Vietcombank is one of oldest commercial bank for external affairs in Vietnam. The economy of Vietnam is developing economy. After Vietnam acceded to WTO (world trade organization), Vietnam have many opportunities to develop more than before such as enhancing the economy potential through promoting export activities and attracting investment. Therefore, economy of Vietnam is improving and developing quickly on some branches. One of these branches is bank. A few recent years, bank market of Vietnam is very exciting and has many contributions in the promoting national economy. Typical bank is Vietcombank. It helps state implemented prudent monetary policy, flexible, stable value of currency, and control inflation. From the project will give conclusions about mission, objective and responsibilities of Vietcombank within its environment. Besides that, people will also understand the economic, social and global environment in which Vietcombank operate. After that, people can have different recommendations about Vietcombank and Vietnam economy. For example: Vietcombank should have more social policies for staff and responsibilities in environment. Or Vietcombank can the best bank in Vietnam and want to keep their position, Vietcombank should have more special business activities to attract investment.
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INTRODUCTION (Part 1)
After the long war, Vietnam started to build and develop new economy from 1986. Vietnam has made many great changes, first innovation in economic thinking, the transition from planning economy to focus, system of budget subsidies to market economy, implement industrialization and modernization. In addition, Vietnam opens relationship with more countries, implement open policy. With this policy, it can help Vietnam reduce poor and first step to build industrialization and modernization. One of the policies to develop Vietnam economy is Privatization. Privatization is the transfer of assets or service delivery from the government to private sector (what is Privatization?, 2006). Vietnam began privatization since 1990. When businesses implement privatization, it brings benefits the following as: Businesses develop lager scale, orient into key industry. Capital, Profits of business increase, so that earning of labour go up. In addition, business applies privatization will attract investor both home and aboard. It is not only help to enhance values of business but also develop Vietnam economy. Bank industry also implements privatization. According to accounting: after 1year Vietnam was member of WTO, banking system expand and include 6 trading banks, 37 joinstock trading banks, 31 bank affiliates, 6 financial companies, and more banks. Vietcombank is one of bank to do privatization. It established on April 1st, 1963 the bank for Foreign Trade of Vietnam (now Vietcombank). One of the oldest commercial bank for external affair in Vietnam and also first commercial bank in Vietnam to deal foreign currencies always takes the largest market share in the interbank forex market. It completes privatization in the 2007. In the future, Vietcombank will become one of Asias leading financial groups by 2015.
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I MISSION, VALUES, OBJECTIVES AND ASSESS THE INFLUENCE OF STAKEHOLDERS
I. 1. Mission
Mission describes behavior and actions of organization for the present and immediate future. It includes outline the specific role of organization to fulfill within society over the long term. Vietcombank mission is always for customers success. They always try to implement their MISSION. Each year, Vietcombank improves products and services both quantity and ability. New services and products are researched carefully with purpose: satisfy customer need. For example: VCB-IB@nking Service online bank (it was built to undertake that Vietcombank can serve customer everywhere, everytime by PC, Laptop, etc have connected internet). VCB- Phone B@nking (Banking service 24hours x 7days. it can help you know information about product and service of Vietcombank. Using ways very easy and free through phone). In addition, people knew that Vietcombank was awarded by Asian Money which is reputable monetary magazine in Asia as the first bank in Vietnam in 1995. (Milestones, 2001) The mission of Vietcombank continue keeping and affirming the leading position or the best bank in Vietnam. From mission, they never stop improving and develop all services to satisfy customer. As a result, 2007, they continue receiving reward the best bank provided foreign exchange service for business in 2007 by Asia Money magazine voted (Milestone and achievement, 2008). In 2008, Vietcombank was the best bank in Vietnam and bank had the best quality about managing cash by Asia money voted, and the best bank provided trade payment in Vietnam by Trade Finance voted (Report from broad of management about activities in 2008 and orientation in 2009, 2008). In 2009, Vietcombank will orient and make plan to be not only the best bank at Vietnam but also become one of famous bank in the Asia. Moreover, Vietcombank mission is solving some existed problems (Report from broad of management about activities in 2008 and orientation in 2009, 2008) such as some customer services were not good and didnt have right result as estimate. Or the work of settlement and transferring capital for state was still not complete and other problem. Vietcombank needs changing and new policies to improve and solve problem. New policies were created by broad of 9
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management. For example: Vietcombank will reorganize function of customer services which were not good.
I. 2. Values.
The values mean goals and aims of the organization will have an ideology based on belief, values and attitudes. Vietcombank is the leading bank in Vietnam. They always define specific their goal to make business activities have more good results. These values are safety - quality - growth efficiency. (Report from broad of management about activities in 2008 and orientation in 2009, 2008). From goals, Vietcombank orients business activities into some important missions following as First, Vietcombank pay attention into risk management and handle bad debts with purpose enhance safety for themselves and customer. They increase access and attract special customer groups and individual, also avoid concentrating customer as this is a measure to limit risk. Beside, Vietcombank controls strictly quality of credit, attention processing and limit bad debt (below 3,5%). In addition, Vietcombank must interest to risk of market and enhance control job, audit to satisfy requirement and compliance with international standards. Behind safety strategy, Vietcombank pays attention to quality of service as increasing capital mobilization, continuing to expand credit activities, and developing customer services. For example: enhancing control customer services more than before to keep traditional customer, loyal customer and addition new customers. Researching and give many new services with new potential can satisfy customers. Moreover, interest rate has downward trend, fluctuating exchange rates are difficult, challenges with Vietcombank. Vietcombank need continue flexible and control interest rate suitable for capital mobilization policies and expanding demand for credit Next, one of goals to create Vietcombank value is growth element. After over 45 years, Vietcombank grew to become the leading bank in Vietnam. The reasons to help Vietcombank has this achievement are Vietcombank applied modern bank system, provide services and products easy use, safety, save time for customers home and abroad. These products and services are very fast to scoop market such as arbitrage of exchange, credit, and other services 10
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(Announcement, 2007). In the future, Vietcombank continue expanding bank network and enhance the quality of human resources. (Report from broad of management about activities in 2008 and orientation in 2009, 2008). In 2009, Vietcombank oriented enhance scale of labor to 10% more than compare with 2008. The training, develop quality of human resource continue implement such as training important cadres to satisfy expanding requirement of bank. The last element to make Vietcombank is efficiency in the work. Vietcombank knows that if the business activities have effective, they must continue to perfect and improve the organization structure and management tools. Vietcombank defines goals to search, select strategic partners home and abroad to create changing management structure. In addition, Vietcombank will provide information quickly, timely and exactly for customer (Report from broad of management about activities in 2008 and orientation in 2009, 2008). All things with purpose help Vietcombank enhance effective in the works. From that, they increase their image, goodwill and values.
I. 3. Objectives.
From the vision and mission, goals are derived. Goals are the intentions behind decision or actions, the states of mind that drive individuals or organizations to do what they do. First objective of Vietcombank is to maintain the role of a leading commercial bank in Vietnam and to an international bank in the region, in the next decade. The researcher applies SMART technique to analyze it S- specific: Vietcombank continues being the leading commercial bank in Vietnam and to an international bank in the region. M- Measurable: If Vietcombank wants to become number one about commercial bank in Vietnam, and an internal bank in the region. They must pass other commercial bank by way improve human resources, open new departments, expand branches suitable for strategy of company. For example: Vietcombank expands 4 branches and 64 dealing rooms in 2008. (Report from broad of management about activities in 2008 and orientation in 2009, 2008). A- Achievable: 11
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Beside things are improve human resources, expand branches, Vietcombank want to develop retails system in 2009 and continue expanding branches and dealing rooms more than 2008. R- Realistic: Vietcombank received reward the best bank in Vietnam by Asian money magazine voted in 1995 (milestones, 2001) and they continue receiving reward the best bank provided foreign exchange service for business in 2007 by Asia Money magazine voted (Milestone and achievement, 2008). Vietcombank was also the best bank in Vietnam and bank had the best quality about managing cash by Asia money voted, and the best bank provided trade payment in Vietnam by Trade Finance voted in 2008 (Report from broad of management about activities in 2008 and orientation in 2009, 2008). These evidences demonstrate Vietcombank has enough potentials continue becoming the leading commercial bank in Vietnam and an international bank in region. T- Time bounded: Vietcombank maintain the role of leading commercial bank in Vietnam and an international bank in region in next decade. It means Vietcombank keeps the leading commercial bank in next 10 years. Second objective of Vietcombank wants to increase total assets 15% - 20% per year from the present to 2015. It means S Specific: M- Measurable: A- Achievable: R- Realistic: Total assets of Vietcombank increase 15% - 20% in comparison to last year 15% - 20% total assets of Vietcombank is increased per year 15% - 20% or more total assets of Vietcombank is increased per year Vietcombank wants to become one of 70 financial institutions in Asia in 2015-2020 (Milestones and achievement, 2008). As a result, total assets of Vietcombank must increase 15%- 20% each year from now to 2015 right with progress schedule.
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T- Time bounded:
Each year 15%-20% total assets of Vietcombank is increased from now to 2015. Next objective of Vietcombank define plan that increases owners equity 2.5 -3 billions USD from now to 2015. The objectives will be analyzed by SMART technique. 2015 A- Achievable: Total equity of Vietcombank has 13.790 billions VND (equally about 0.8 billions USD) (Annual report, 2008). Therefore, 2.5- 3 billions USD or more owners equity of Vietcombank will have from now to 2015. R- Realistic: Vietcombank wants to become one of 70 financial institutions in Asia in 2015-2020 (Milestones and achievement, 2008). As a result, total equity of Vietcombank must increase to 2.5-3 billions from now to 2015. Its condition to help Vietcombank perfect their project. T Time bounded: From the present to 2015 is challenging time to have 2.5- 3 billions USD. Its condition to help Vietcombank implement plan become one of 70 financial institutions in Asia. S- Specific: M- Measurable: Owners equity of Vietcombank increases to 2.5- 3 billions USD in the present to 2015 Owners equity of Vietcombank is increased 0.5-0.6 billions USD per year from now to
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I. 4. Assess the influence of stakeholders.
I. 4. 1. Definition of stakeholders mapping.
Stakeholders mapping (BPP Professional education, 2004, p.42)
Key players means high power, high interest and strategy must be acceptable to them, at least. Key satisfied means high influence, low interest and stakeholders in keep satisfied segment must be treated with care. While often passive, they are capable of being key players.
Keep informed is high interest, low power, and stakeholders in keep informed segment dont have great ability to influence strategy, but their view can be important influencing more powerful stakeholders
Minimal effort is low interest, low influence and expended on this segment.
In the organization, they have 3 kinds of stakeholder: Internal stakeholder, connected stakeholders and external stakeholders. Vietcombank is so. Each type of stakeholders has different influence each other to organization. Therefore, the researcher evaluates 3 types of stakeholder by stakeholder mapping to help people understand importance of each stakeholder.
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Stakeholder Mapping in Vietcombank

TYPES STAKEHOLDERS KEY PLAYERS STAKEHOLDER MAPPING KEEP SATISFIED KEEP INFORMED MINIMAL EFFORT
Internal Stakeholder Connected
Management Employees Shareholders
Stakeholders Customers Competitors Suppliers Central Government External Local Authorities
Stakeholders Professional Groups Pressure Groups
4. 2. Internal stakeholders.
The Managements are stakeholders in key players segment because they have high influences and high interest with activities of Vietcombank. They have influence in all the activities of company such as making decision expanding Vietcombank operations. In addition, the managements are also very interested in the growth Vietcombank. The Vietcombank managements involve Mr. Nguyen Phuoc Thanh Chief executive officer and other members (Board of directors, 2009). Mr. Nguyen Phuoc Thanh has important role with Vietcombank. He makes decision and has responsibilities with Vietcombank projects.
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Employees are key informed because they are human resources of Vietcombank. Actions of employees make successful of Vietcombank. Perhaps, each employee has low influence, but they have high aspiration with Vietcombank activities. Therefore, Vietcombank always care about training employees such as in the report- orientation 2009, Vietcombank enhance the ability of training human resources to satisfy demand developing of Vietcombank.
I. 4. 3. Connected Stakeholders.
Shareholders are key players because they have more contribution for company. They have high influence in the work such as they have right to join in the assemblies and give opinion to make decisions. Besides that, they are also very interested company because if Vietcombank has more and more successful in the business, they will have more benefits. Customers are also key players because they are important factor Vietcombank must care. The business is not business when business doesnt have customers. Customers have high influence because they are people buy and use products, services Vietcombank must find way to make satisfy customers need. Vietcombank has more customers so they have more profits. These reasons explain why Vietcombank pays attention to improve abilities of services and products. They have high interest with company because they evaluates Vietcombank services are better or less good than services of other bank. Maybe, they interest different services in Vietcombank to change services and products bring the best convenience such as save time transfer money or account. Competitors are minimal effort because they interest little Vietcombank operations and have low influence in Vietcombank. However, Vietcombank should be carefully with competitors because they can have improvement and become threaten with Vietcombank. Therefore, Vietcombank strategy is always improvement and creates new products and services with two purposes: satisfy customer need & keep the strong point in the business.
I. 4. 4. External Stakeholders.
Central government is keep informed because they have high aspirations and low influence in the Vietcombank. They have high aspirations with Vietcombank because Vietcombank is the leading commercial bank and concern with control money policies and fiscal polices of government. For example: Vietcombank have responsibilities in changing interest
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bank with agree of government. And they accept to implement the decision 131, 443 of government about encourage investment. (Report from broad of management about activities in 2008 and orientation in 2009, 2008). However, they have low influence in the Vietcombank activities because they have right control in the company. Local authorities are keep satisfied because they have high influence and low interest with Vietcombank. They have low interest company because Vietcombank implement right legal not only local authorities but also government. However, local authorities influence directly to each action of Vietcombank such as expanding customer at local. Pressure groups are also keep satisfied because theyre so high influence and low aspirations with Vietcombank. The reason makes pressure groups have high influence with Vietcombank: they can impact opinion to Vietcombank in the activities such as business in local or social welfare. However, they interest Vietcombank at low level because they dont have right control company.
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II. Evaluate the extent to which selected Vietcombank achieves the objective of three stakeholders
Stakeholder Internal Stakeholder Types Employees Objective High salary High health Training Connected holder Stake Customer Extent of achievement High extent Not achieved High extent
opportunity Receiving goods High extent and services of a reasonable quality Paying reasonable services a High extent price
for those goods and Innovation Tax Law national economy Not achieved Low extent High extent
External Stakeholder
Central government
Contribution to the Not achieved
II. 1. Internal stakeholder.

Internal stakeholders includes people have intimately connected with company. Employees are factor in the internal stakeholder. Employees have big contribution on the success of a business as it is they who are responsible for all aspects of work carried out therein. Many writers comment that employees are the most important of all of the factors of production (BPP Professional Education). Because they are the most important factors, they always need motivation to work. For example: interest from management. So that, they will usually be more productive, produce a better quality product or service. More over, they are people make and complete directly products, so they can observe and discover mistakes and repair its. In addition, they provide ideas for improvement and guarantee ability of product. 18
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The researcher show evidence to prove that employee of Vietcombank can have high extent about salary. In the budgeted business results in 2007-2010, it give data total asset of Vietcombank 2007 is 200.914.606 million VND and 2008 is 245.375.194 million VND, 2009 is 296.666.962 million VND and 2010 can pass 350.000.000 million VND (Prospectus, 2007). People can see the number about asset Vietcombank is very big. Each year, total asset increases significantly so Vietcombank is more and more development. Next, the data about Operating expenses and in it has money expand for salaries. The expenses paid salaries in 2007 is 487.172 million VND (Prospectus, 2007).. From 2007 to 2008, it increased so fast from 487.172 million VND to 712.287 million VND. IF people compare total salary between 2007 and 2009, we showed that total salary of 2009 (998.785 million VND) is over double with total salary of 2007 (Prospectus, 2007). It can be over 1.000.000 million VND. It prove that salary of Vietcombanks employees improves and higher than before. Salary of employee is high salary. It showed that employees was trained good and they have enough skills, standard about health to work
II. 2. Connected stakeholder.

Connected Stakeholders includes shareholders, bankers, customers, supplies. Customers are people who Vietcombank pays attention and satisfy their request. They want to good product and service and reasonable price. Customers usually determine product by way is what quality is need, what price is charged and what development is needed. Manufactory, company as Vietcombank must listen to customers ideals. These ideas will suggest for Vietcombank improve service, product suitable with request of costumers. From this, Vietcombank has more customers than before and earns more profits compare with competitors. Customers of Vietcombank received goods and service to solve financial problem such as lending money according to short-term, middle and long-term depend on request and solvent. Moreover, Vietcombank has many products and services such as Notes discounting, guarantee, international payment, money transfer, card service and other services and products. All products and services have purpose to bring benefits for customer. For example: in the transfer money, when customer chooses Vietcombank, they can save time, and full cover about money that will be hand receiver. If customers satisfied request, they will believe and come back Vietcombank more times. It means Vietcombanks trade-make famous and have place in the heart of customer.
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More and more customers find to Vietcombank demonstrate that ability of Vietcombank is good. Customers ensure pay a reasonable price for goods and services. As a result, profits of Vietcombank go up.
II. 3. External stakeholder.

According to Business Environment, External stakeholders groups are the government, local authorities, pressure groupsthey are likely to have quite diverse objectives and have a varying ability to ensure that the company meets them. With Vietcombank, the report wants to deal with central government. It has a big role to play in the success of the business though passing of the laws and policies: Policies protect workers and customers, collecting tax as Income tax, corporation tax, VA. Central government has a big role to play in the success of business through the passing of laws and polices it pursues (BPP Professional Education). Central government applied and implemented laws to protect workers and customer. It collected tax such income tax from individual, corporation tax and, value added tax (VAT). In addition, central government has polices concern to contribution the national economy, because it regulates economic policies by monetary policies and fiscal policies. Central government keeps activities and aiding exporters of business. Therefore, people show that big role of central government.
III. The responsibilities of the selected Vietcombank and strategies to meet them
III. 1. Definition: The responsibilities of an organization.
The responsibility of an organization includes social responsibilities, environment responsibilities, ethics and business, management responsibilities and public relation and corporate image.
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III. 2. Social responsibilities of Vietcombank.
Vietcombank has social responsibilities with shareholders, customer, and employees. First, with shareholder, Vietcombank ensure bring maximize profit for them. For example: Vietcombank keep dividend for shareholders at level is 12% in 2008 (Annual report, 2008). Second is customer, Vietcombank try to provide the best services and products for them such as they create VCB- Phone B@nking (Banking service 24hours x 7days. it can help customer know information about product and service of Vietcombank. Using ways very easy and free through phone) (Vietcombank, 2001). Besides that, Vietcombank repairs mistake and have polices to pass difficulties quickly such as mistake ATM card. Next, employees are always important factor with Vietcombank. Company ensures conditions about workplace and work practices for their employees. Vietcombank also ensure paying salary right time for employees and increase salary as the contract. In addition, Vietcombank interest so much about training problem and expanding scale of labor to 10% (Report from broad of management about activities in 2008 and orientation in 2009, 2008).
III. 3. Environmental responsibilities of Vietcombank.

Its easy to see that Vietcombank have responsibilities with environmental. They join into protect environment activities and advise customer and people protect environment together. A simple example is Vietcombank advises their customer put cards, which is expiration date, into recycle.
III. 4. Ethics and business of Vietcombank.

Within ethics and business, Vietcombank satisfies request implement their responsibilities. For example: Vietcombank accepts professional ethics. They pay salary enough for employees as the contract. In 2008, Vietcombank ensure the cost of salary is 24,88 % (Report from broad of management about activities in 2008 and orientation in 2009, 2008). Besides, Vietcombank also join reducing corruption in their company and country.
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III. 5. Management responsibilities of Vietcombank
Vietcombank has management responsibilities with employees and customers. First, with employees, Vietcombank ensure working conditions: workplace, salary, good training. For example: Vietcombank always improve ability of human resources. They send money and time to train employees at home and abroad. Therefore Vietcombank can have enough potential to create new good services and products as an important responsibility with customer. Moreover, Vietcombank creates condition for customer by way reduce interest and always fair with customer in all activities. For example: Vietcombank reduce growth debt for customer from 29,20% to 15, 53%. (Report from broad of management about activities in 2008 and orientation in 2009, 2008)
III. 6. Public relation and corporate image of Vietcombank

In term of public relation and corporate image, Vietcombank has responsibilities. With public relation, Vietcombank has joined more public activities since it was established. For example: Vietcombank gave 17 wheelchairs for defect children in Binh Thuan with 2.5 million VND/wheelchair (Take care of poor households in TET, 2009) Specially, the banks staff also took part in blood donation programs with 65 people from Ho Chi Minh City and many places. Vietcombank shared the pain with coastal people falling victims of the storm of Chanchu in May 2006. More 8000 employees of Vietcombank supported 1 billion VN to the storm victims (Annual report, 2006). The banks social responsibilities demonstrated that Vietcombank is organization has contribution and responsibilities with country. From public activities and their good services and product, Vietcombank builds a good image in the minds of people. When Vietcombank has good image and goodwill, they will be easy to implement their big project in the future.
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INTRODUCTION (Part 2)
Privatization is a central part of industrial policy of government because privatization is one of the important directions of process - reform of state owned enterprises. In the innovation economy, a major problem is given to develop forces of production and step by step build the new production system suitable with level of human resources. To release the forces of production, the government needs developing various commodity economies, removing system of budget subsidies, moving the market mechanism and build new economy setups with more forms of ownership, in which economic state is the most important role. To implement this major 23
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project, the government must be reform state-owned enterprises by way are privatization. In the resolutions three of government, the government continues developing strongly privatization process, increase management of capital, state assets and personnel in enterprises (Resolutions 3 of government, 2008). Privatization process in Vietnam started in 1990 under the decision 143/ HBT dated May 10th, 1990. After that, the government continues give the decision to implement and enhance privatization in enterprises. The privatization process includes 3 periods. (The privatization process in Vietnam, 2008) First period (from 1992 to June, 1998), Vietnam started privatization in 30 enterprises, in which 5 businesses implemented privatization under the decision 202/CT by broad of minister. Other enterprises were privatized under the decision of resolutions 28/CP by the government. Second period (June 2nd, 1998- December 31st, 1999), in this time, Vietnam have more 340 state owned enterprises started implement privatization. The privatization process in this period has more improvement than last period. Third period (January 1st, 2000 to now), resolutions 3 of government, session IX lay down as a policy develop quickly privatization. In 2001 2009, having new 979 enterprises privatized. Especially in 2003, having 611 enterprises privatized. Next in 2004, 715 enterprises privatized. From 2005 to the present, the privatization process is more and better, quick than last periods. However, Vietnam also has limited point in the privatization process. Now, Vietnam has more industry make privatization in which have bank industry. After accounting: after 1year Vietnam was member of WTO, banking system expand and include 37 join-stock trading banks, 31 bank affiliates, 6 financial companies, and more banks. Vietcombank is also one of bank to do privatization. Impact of privatization, it creates new environment business in Vietnam. An environment is fair about problem using land; satisfy about capital needs and other problem. Especially, privatization helps businesses enhance effective of production, high profits, increasing potential of competition in the market. As a result, when Vietcombank privatized, they have had many opportunities to develop in new business environment to enhance effective of Vietcombank operations. For example: total asset of Vietcombank in 2004 was 120.006 VND billions. After 4
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years (2004-2008), total asset of Vietcombank increases to 221.950 VND billions (Annual report, 2008).
IV. The economic system of Vietnam attempt to allocate and make effective use of resources within the country.
IV. 1. The economic system.
Definition of the economic system is organized way in which a state or nation allocates its resources and apportions goods and services in the national community (what are the four definition of economic system?, n.d ). The economic system has three types: Free market economy, command economy, and mixed economy. Free market economy has no government control over factors of production (land, labor, capital). It can call market economy. In this market, business produce goods to make profits and prices of goods are influenced by demand and supply of goods. 25
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Command economy doesnt have a private sector as all resources are owned by the state. In command economy, the government decides what to produce, what to work and what work to perform. Mixed economy has both a private sector and a public sector. In countries have mixed economy; the government controls the important industries such as education, health, public transport, water and electricity supply and other things From characteristics were listed, people can show economy of Vietnam is mixed economy because the government of Vietnam controls many industries such as education, water & electricity supply and different organizations. Moreover, economic Vietnam has both private sector and public sector. For example: in the medicine industry, Vietnam has both private hospital such as Saigon eyes hospital in Hanoi, and state hospital.
IV. 2. The allocation of resources within the Vietnam

Vietnam is a rich country about mineral resources, human resources. Vietnam has enough land, labor. Moreover, Vietnam is a developing country and new market. Therefore, more investors interest and research to invest capital about agricultural, marine products, and other industries in Vietnam. Now, the researcher evaluates resources within the Vietnam.
IV. 2. 1. Land.
According to the accounting before 2005 under the decision 28/ 2004/CT-TTg dated July 15th, 2004 by Prime Minister, total lands area are 33.121.159 ha ( The decision and approving the result inventory lands in 2005) . It involves: Agricultural areas is 24.822.560 ha Non agricultural areas is 3.232.715 ha Land areas dont use and mountains dont have forest, plants: 5.065.884 ha. Vietnam uses land law to manage their land. Land law was born 1993 by government, with purpose manages and creates land policies and control relationship between economy and society in long term. Legal of land divides land such as lands for agricultural, industry, estate business, tourism activities, investment, traffic, shelter, and etc. The opinion and land plan of Vietnam divide two periods (Land policies of Vietnam in innovating period, 2009):
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First period (1981-1992), this period is development about land policies. In 1981-1992, Vietnam had many difficulties after economic crisis society in decade 70 of century 20. Especially, the foods were lacked so Vietnam had to have land policies for agricultural to improve problem. For example: Hai Phong city gave resolution 24 NQ/T about the way used land to improve quality of agricultural and they were successful. More over, the chairman of board in board of minister encouraged enterprises and corporations invest capital into lands such as use land to do farm. Beside that, chairman of board in board of minister gave the decision 327/CT, which is a policy uses land such as forest, strand flat, bald and mountain hill for households. In which, each household was received 5000m2 to make farm (if land is forest), 300m2 (if land use to grow industrial crops), 700m2 (if land is strand flat). The state use 60% capital to build infrastructure and 40% capital for household borrow no interest to develop the plan use effectively lands with purpose bring high profits and improve the life of household. Second period (from 1993 to the present), land polices continue improving and supplementing some land laws attract with plan use land areas. For example: In 1998, the government supplemented legal about problem buys and sells lands. In 2001, the government paid attention aspect such as role of management land economy, arrangement to make municipals and plan for using land. In 2003, land law also improved suitable with Vietnam economy. For example: land law admitted the right use land in estate market. As a result in this period, Vietnam enhanced implementing land policies to use fit, logical land areas in the industries. Vietnam receives some effectives by the way use fit land areas. There are agricultural production develops strongly to satisfy requirements of home and aboard about foods. Land policies attract over 10 million labors so land policies make opportunities to improve the life of households (Land policies of Vietnam in innovating period, 2009).
IV. 2. 2. Labor.
Population of Vietnam is over 80 million people. 52,8 million people have age enough labor conditions, in which 15,8 million people in the city, and 37 million people in the countryside (In 2006, Preparing to solve job for 1.6 million people).
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Vietnam manages their labor by labor law. Labor law talks the right and responsibilities of labor and people use labor, labor standards, norm of labor (Labor law, 1994). For example: the labor-conditions are people in labor age begin 15 year olds and have enough many potentials to start labor and contract (labor law, 1994). Laborer has the right to receive salary as contract with people use laborer (labor law, 1994). The plan 5 years from 2006-2010, the government made some missions such as agricultural labor hold 50% labor of society and creating job for 8 million people, unemployment rate in the city below 5%. Besides that, other missions are given by the government such as enhancing ability of labor and paying attention to education and train human resource (the resolution of the government about the economic development plan- society 5 years 2006 2010). From plan 5 years, Vietnam has happy results following as: In 2007, Vietnam created jobs for about 1.68 million people, in which 1.6 million laborers in state and foreign countries are about 85 thousand laborers. In addition, unemployment rate decreased to 4.91% in the city. It means Vietnam implement successfully goals in plan 2006-2010. (The results solve job, and develop labor market in 2007, 2008). Therefore, the life of laborers is improved about finance, material base and spirit.
IV. 2. 3. Capital.
Capital resources of Vietnam include 12% Official Development Assistance (ODA) capital in the total social investment capital, 28% investment capital from the national budget, 50% development investment credit of the government (Discussion on ODA capital management of Vietnam, 2009) Vietnam pays attention to how use effectively investment capital resources. With ODA capital, the government gave the decision 181/2007/Q-TTg dated November 26th, 2007 about regulation to lend from ODA, and external aid of the government. Beside, Vietnam always organizes conferences about ODA capital, and implements measure to control ODA capital (Discussion on ODA capital management of Vietnam, 2009). According to the discussion on ODA capital management of Vietnam, 2009, people can see data table about ODA capital of Vietnam in the period 2002-2006
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Target 1-GDP 2- Total debt a- Debt in the state b- Debt from foreign country In which : ODA debt ODA debt transfer to foreign currency 2- ODA capital according to titles a- Government Japan France Russia Other b- Financial international organization ADB IDA IMF Other
Unit Billion VND Billion VND Billion VND Billion VND Billion VND Million USD %
2002 53576 2 17910 0 34728 14437 2 13317 3 8683
2003 61344 3 24941 9 71829 17759 0 16619 1 10652
2004 715307 311834 99572 212262 198305 12617
2005 83921 1 36522 9 13984 3 22338 6 20004 4 12611
2006 974266 359599 108477 251122 223497 13921
61.91 30.78 4.99 13.56 12.59 38.08 12.86 19.80 4.18 1.24
56.62 33.03 5.95 6.22 11.42 43.38 14.48 24.26 3.21 1.43
56.18 34.06 6.08 5.15 10.89 43.82 14.52 25.38 2.26 1.66
54.54 32.69 5.60 5.31 10.94 45.45 14.75 26.81 1.75 2.14
54.45 33.80 5.86 4.76 10.03 45.55 15.01 26.83 1.41 2.30
(Data from Bulletin External Debt of Treasury 2007, Scheme Perfecting the institutional framework for debt management in Vietnam by Ministry of Finance 2008). In period 2002 -2006, people can see that Japan is government has highest ODA capital in Vietnam with 30.78% in 2002 and 33.80% in 2006. It demonstrates that Vietnam has good relationship with Japan and enough potential to manage ODA capital. Moreover, Vietnam continues appealing investment capital from other countries. For example: Vietnam appeals business of Malaysia increase capital in Vietnam market. The plan (2001-2010), Vietnam makes goals following as: ODA capital is still increasing through each year, in which (2001-2005) ODA capital is 13.3 billion USD. Vietnam doesnt stop demonstrating themselves with financial international organization, and countries to attract more
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than new organization and countries invest into Vietnam (Investment capital into Vietnam has more effective, 2004) From measure, and plan of government define to help Vietnam has effectives in problem allocates capital. There are Vietnam satisfies capital requirement with low cost, reduces risk and pressure with national resources, ensures safety debt and national security about finance, increases opportunities to join international economy (Discussion on ODA capital management of Vietnam, 2009).
V. The impact of social welfare and industrial policy initiatives on Vietcombank and the wider community
V. 1. Definition: social welfare and Industrial policy.
V. 1. 1. Social welfare.
Social welfare means consists of actions or procedures- especially on the part of governments and institutions- striving to promote the basic well-being of individuals in need. (Welfare, n.d.). Social welfare policy includes old age programmers, unemployment, sickness (or disability), social assistance (or poverty alleviation), health (or medical care) problem, environmental policy and other problems.
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V. 1. 2. Industry policy.
Industry policy means the government- sponsored economic program in which the public and private sectors coordinate their effort to develop new technologies and industries. (Industrial policy, n.d.). Government provides finance, capital for business. Government uses industry policy to create relationship between state and business with purpose develop national economy.
V. 2. Vietnams social welfare policy.

In 2000, social welfare of Vietnam holed 24 % in total sate budgets. From 200 to 2008, budgets for social welfare increase to 30% in total sate budgets (Social welfare will determine the economic recovery, 2009). It proves that Vietnam interests so much to social welfare policy. In social welfare, Vietnam pays attention to unemployment, poverty alleviation, and basic education and gender equality problems.
V. 2.1 Vietnams social welfare policy on unemployment
According to the accounting, the first quarter in 2009, Vietnam had over 110 thousand people are the unemployed (Social welfare will determine the economic recovery, 2009). Therefore, the government needs solutions to help the unemployed. For example: Hanoi has decided to allocate an additional 200 billion VND (11.24 million USD) to shore up social welfare, targeting farmers who lost land to investment projects, and workers made redundant by the economic slowdown. In which, over 157 billion VND will be used to helps workers who lost their jobs because of economic slowdown, through fund of city for jobs generation and recruitment activities for people lost job at districts and a major project on loan to 1,000 poor households (Hanoi allocates 200 billion VND to social welfare).
V. 2. 2. Vietnams social welfare policy on poverty alleviation.
Vietnam is implementing so much poverty alleviation to help Vietnamese improve their life. Beside plan creates job for 1.7 million laborers in the period 2011-2020 to help them enhance their life on finance, the government continues having social welfare policies to increase effectively in poverty alleviation such as using nearly 8.3 billion VND is added to the poverty alleviation budget in order to reduce 2% of the total number of poor household and build houses for poor families. In addition, the department of labor, and other organization carry out project to 31
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assist poor household in breeding cows and planting trees in My Duc, Ung Hoa, Quoc Dai, Ba Vi and Thach That (Hanoi allocates 200 billion VND to social welfare, 2009).
V. 2. 3. Vietnams social welfare on basic education and gender equality.
Basic education and gender equality problem are important problem which the government invests and pay attention to develop, because quality of education concern with ability of human resources. If Vietnam wants to have high quality on human resources, they should invest into developing education, training programs. In plan 2008-2015, the projects assist apprentices on tuition fees and make good policy to create good conditions for student debts, student apprentices under the decision 157/ Q-TTg of the Prime minister (Ensuring social welfare with solving job for laborers, 2009). In addition, the government also assists education, training programs about finance such as Hanoi has decided to use 200 billion VND to shore up social welfare, in which, vocational training establishments also receive subsidies from the funding (Hanoi allocates 200 billion VND to social welfare, 2009).
V. 3. Assess impact of Vietnams social welfare.

V. 3. 1. Assess impact of Vietnams social welfare on Vietcombank.
Beside social welfare policy of government, Vietcombank also agree with these policies. In addition, Vietcombank obey and join into social welfare policy. In the company, Vietcombank ensure safety working conditions for employees. More over, Vietcombank also pay attention to training their staffs. Especially, Vietcombank increases scale of labor to 10% in 2009 (Report from broad of management about activities in 2008 and orientation in 2009, 2008). It means Vietcombank creates opportunities for laborers have jobs. Furthermore, Vietcombank also joins many social activities such as putting low interest rate 200 billions VND to the bank for the Poorer, sets aside a part of allowance fund to support the school for disable and orphan children, donated 5 billions VND to build house of love, memorial for Ben Duoc- Cu Chi revolutionary martyrs and children park in Nha Trang City. Vietcombank contributes annually more than 100 million VND to the fund Vietnamese Children, gifts to the association of aged people and other activities (Social activities, 2001). All activities demonstrate that Vietcombank has many contributions on implementing social welfare policies.
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V. 3. 2. Assess impact of Vietnams social welfare on related industry and wider community.
In 2009, Vietnams social welfare had good impaction to related industry and wider community. To keep effective of social welfare policies with industries, the Bank for investment and development of Vietnam used 272 billion VND to use for social welfare in the period 20092010 to assist reducing poor households (272 billion VND use for goal of social welfare in period 2009-2010). In the plan, social welfare policies assist some industries such as educated industry, medical industry, building industry and other industries with total money is 122 billion VND (272 billion VND use for goal of social welfare in period 2009-2010). Therefore, social welfare policies help many industries pass through economic crisis. From that, it also helps keeping growth rate of country and improving the life of people. In 2008, poor household rate reduced to 13.1% and 1.615 million people have job (Ensuring social welfare with solving job for laborers, 2009).
V. 4. Vietnams industrial policy.

Vietnam is a socialist country and developing country. Nearly time, Vietnam became a member of WTO (World trade organization). When Vietnam joined into WTO, they have both advantage and disadvantage points. With advantage points, Vietnam has opportunities on export and import, attracting investment capital. However, Vietnam must already face to challenges such as competitive product, competitive price with competitor from foreign country. In addition, Vietnam must demonstrate their potential to keep existing in WTO. Therefore, Vietnam should have good policies to help them exist in international market. One of policies is industrial policy. According to Ngoc Minh Phan doctor said that Vietnam should be flexible to change industry policies depend on budget subsidies to new industry policies depend on WTO law (WTO and Industry policy, 2006). Industrial policies include many problem such as investment in human, research& development, and infrastructure development in Vietnam.
V. 4. 1. Vietnams industrial policy on investment in human.
Human is the best important element to make success. Therefore, Vietnam pays attention so much investment in human. In period (2001-2005), Vietnam gave targets to trained and educated about 25 thousand professions in the information technology industry. In addition,
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Vietnam enhanced training human resources with large scale satisfy educated conditions. Specially, the decision 40/2000/QH10 dated December 19th, 2000 told about increasing teach and study foreign language, computing in the high school (Training plan for human resources to develop information technology in Vietnam 2001-2005, 2006). These evidences demonstrate Vietnam has a good preparation about human resources and they also continue improving quality of education and train to develop more than level of human. From this reasons, industries of Vietnam enhance effective in the work.
V. 4. 2. Vietnams industry policy on innovation
Innovation is important part in industry policy of Vietnam. Vietnam implements innovation on more industries such education, industry, agricultural. In the agricultural, the government assists capital for farmers to invest transplant, equipment. In addition, the government increases investing for research plants as enhance quality and amount of plant (Behind WTO with agricultural and poverty in Vietnam, 2007). From innovation, Vietnam will develop strong point of agricultural more than in international market. Moreover, innovation in agricultural help enhance profits and improve the life of farmers about finance, spirit.
V. 4. 3. Vietnams industry policy on infrastructure development.
Infrastructure development problem is a problem which Vietnam interests so much. In 2008, Vietnam borrowed 500 million USD to develop infrastructure. In which, Vietnam invests infrastructure development at Da Nang, project for developing electricity in the countryside, and project for financial agricultural (Vietnam borrows 500 million USD to develop infrastructure, 2008). Infrastructure development is basis to develop industry in the future. Moreover, Vietnam has a good infrastructure, they have enough condition to compare and attract investor into Vietnam market.
V. 5. Impact of Vietnams industrial policy

V. 5. 1. Impact of Vietnams Industrial policy on Vietcombank
The industrial policy impacts Vietcombank through ways. For example: when Vietnam borrowed money to infrastructure development with amount of money is 500 million, very big. Each year, the government has money policy and fiscal policy so polices will link with bank 34
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system in which Vietcombank. Especially, Vietcombank is the leading commercial bank. Therefore, Vietcombank will be impacted so much. Beside that, industry policy helps Vietnam improve about infrastructure such as electricity, water, building, traffic. It means infrastructures of Vietcombank also improve to create working condition better than for employees. In addition, innovation in the industries will develop economic Vietnam. Therefore, Vietcombank also has more conditions to expand scale of company such as expending 10 transaction offices to branches and having new 70 transaction offices in 2009 (Report from broad of management about activities in 2008 and orientation in 2009, 2008).
V. 5. 2. Impact of Vietnams industrial policy on related industry and wider community.
Industrial policy has important role in economic Vietnam. Its not only help Vietnam attracts investment capital from foreign country through policies make good human resources, infrastructure but also make increasing rate of economic growth and avoid reducing production of industries. Moreover, industrial policy help the government of Vietnam understands economic situation of enterprises. From it, the government evaluates to giving capital fund suitable for each industries. For example: agricultural is strong point of Vietnam, so the government will interest to find way develop agricultural such as Vietnam borrowed 500 million USD to invest three projects in which agricultural hold one in three projects (Vietnam borrows 500 million USD to develop infrastructure, 2008). The government can limit enterprises from board establish in Vietnam or control them by industrial policy. For example: when business of Japan goes to Vietnam marketing to sale electric product. However business of Japan must accept industrial policy of Vietnam such as the tax in business. It will help electric product of Vietnam have advantage when two kinds of product compete in Vietnam market.
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VI. The impact of macro economic policy (Fiscal and monetary policy) measures and influence of the global economy on Vietcombank and stakeholders in Vietnam.
VI. 1. The macroeconomic policies and its tools theory and impact of macroeconomic polices on economic Vietnam.
Macroeconomic policies are any policy intended to influence the behavior of macroeconomic variables, especially unemployment and inflation (Deardorffs glossary of international economics, 2001). Macroeconomic policies include monetary and fiscal policies; they concern things as price controls and incentives for economic growth. Fiscal policies are the means by which a government adjusts its level of spending in order to monitor and influence a national economy (Reem Heakal, n.d.). Fiscal policies impact all enterprises through tax, VAT. Monetary policy is the way that government, or central bank uses to control the supply of money, rate of interest, cost of money (Monetary policy, n.d.) In addition, monetary policy and fiscal policy help government control transfer foreign currency, have way avoid inflation and exit crisis situation.
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VI. 2. Current situation and impact of Vietnams fiscal policy.
Economic world is dropping in economic crisis. Therefore, Vietnam applies capital resources from fiscal policy use to compensate for the damage of economic crisis. Beside that, it limits reducing consumption demand of private business and State Corporation. These ways spend to help economic Vietnam exit difficult situation. The government uses 78,000 billions VND to assist directly demand stimulating activities through interest rate, exempt from taxes and other things. In addition, the government continues using 60,000 billion to assist indirectly demand stimulating activities (limitation of monetary and fiscal policy in the demand stimulating activities in Vietnam, 2009). As a result, growth rate of Vietnam is 3.9% at safe level, total industrial production increase 5.1% and total sale and services also grow up 18.3%. The last, fluctuated cost rate of consumption is 10 % (limitation of monetary and fiscal policy in the demand stimulating activities in Vietnam, 2009). This result is passable good result demonstrate that economic Vietnam is gradually steady state.
VI. 3. Current Situation and impact of Vietnams monetary policy.

In the situation, economy of the world is developing slowly and dropping in crisis. Vietnam gives monetary policies in the demand stimulating situation. Monetary policies use to expand supply of money with goal is still low interest rate to avoid declining opportunity cost and investment capital. The state bank uses a way that is decrease the most risk in the loans and controls interest rate of loans. The goal of state bank avoid and decrease stress or pressure foreign currency. Therefore, economic Vietnam will be excited than before. Sale activities of company also increase and bring effective for company operation. From result, it enhances economic Vietnam to exit gradually crisis.
VI. 4. Impact of Vietnams fiscal and monetary policy on Vietcombank and stakeholder.
In 2009, economic Vietnam is influenced by economic crisis and economic Vietnam develops slowly. The government request financial ministry and bank industry with other implement monetary and fiscal factory. In this situation, Vietcombank also implement policies to
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help the state control economic situation at the present. In the plan, Vietcombank must contacts with ministries and industries to know and implement fiscal policies, monetary policy to suitable with requirement of government. After that, Vietcombank continues controlling basic interest rate and interest rate of market by way: keeping stable basic interest rate at 7%/ year and dividends, addition controls flexible monetary policies (Market interest rates will continue to stabilize in the last months of year, 2009). Fiscal and monetary policy also influence to stakeholder. For example: In the economic crisis, the government applies the demand stimulating activities with control interest rate at banks in which has Vietcombank. In the last months in 2009, the interest rate of Vietcombank was 7 %/year. It reduced 3 % compare with beginning of year (Marketing interest rates will continue to stabilize in the last months of year, 2009). It means amount of customer gave money or used services of Vietcombank will reduce. Therefore, profits of Vietcombank are also influenced. When profits reduce so it means dividend of each stakeholder also decrease.
VI. 5. Global economy an global financial crises in US, EU, Japan

Globalization is increase economic interdependence of national economies (Global economy, n.d.). Its the same process by which national economies become integrated. The global financial crisis began in 2008. In the recession situation, almost countries have problem about economy such US, EU and Japan. With European Union, industrial production reduced 1.9%. European car sales also declined 7.8% compared with last year. Retail sales fell by 0.6% in June compare with May. And economic analysts said the crisis continues raising and the risk of the euro also grow up. In the second quarter, the euro economic zone was reported to have decrease by 0.2%. However, the EU organization continues dropping in crisis again in the third quarter (Downfall of seven largest economies in 2008, 2009). In the market downturn fall 2008, stocks in North America, EU, and other region went down by about 30% compare with the beginning of year (Downfall of seven largest economies in 2008, 2009). Japan, Hong Kong, Singapore and some countries went into crisis in third quarter in 2008 (Downfall of seven largest economies in 2008, 2009).
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VI. 6. The influence on Vietnam economy, Vietcombank, stakeholders.
Vietnam is one of all countries drop in economic crisis. According to the data of general statistics office, Vietnam GDP reduced 1%, and unemployment rate increases 0.35% in 2008 that year began to influence from economic crisis at Vietnam (Influence of the economic crisis to Vietnam, n.d). The economic crisis influence directly Vietnam. According to estimate plan, if GDP rate in 2009 is 4.5% lower 2% than rate of plan , so it means 300 thousand people dont have job (Influence of the economic crisis to Vietnam, n.d). Beside that, export and import also decrease amounts and profits because economic Vietnam is staying financial crisis so Vietnam market develops slowly, business activities also stagnant, and people will consider spending money for important needs. More over, inflation can happen and monetary, fiscal policy has so many risks (Influence of the economic crisis to Vietnam, n.d). The crisis influences indirectly to Vietcombank such as retail system of Vietcombank dont develop right with plan in 2008. In the economic crisis, Vietcombank loses opportunities to develop and have high profits. So that, dividend of stakeholders also reduce.
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Conclusion
Vietcombank is the leading commercial bank, and they always define mission, values, and objective to develop their strong points. From this project, people have more knowledge about Vietcombank such as influence of stakeholders in Vietcombank. Stakeholder includes 3 types: internal, connected, external stakeholders. After that, we understand role of each kinds of stakeholder and evaluate them by stakeholder mapping. Next, the report produces more information about responsibilities of Vietcombank though social, environmental, management responsibilities, ethics and business, and public relations and corporate image. Economic system was expressed by 3 factors of production: land, labor, and capital. As a result, we know Vietnam how allocated resources and use them. Beside, the government Vietnam has plans to use resources and give goal to develop economy from plan for each year. In the term of social welfare and industrial policy, Vietcombank was influenced by government through two policies. In addition, the report talks about the impact of macro-economic policy through monetary and fiscal policies to economic Vietnam and Vietcombank. In the economic crisis, the report deal with government of Vietnam applies two policies to help national economy exit the crisis situation. And 2 policies: monetary and fiscal also have impaction with Vietcombank such as : control interest rate and more problems.
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Recommendation.
Vietcombank is the best bank and famous. This recommendation is right because in the report show reward of Vietcombank though years 1995, 2007, 2008. Vietcombank satisfy enough all responsibilities. Vietcombank also one of important element to help government control financial policies. In my opinion, If Vietcombank keeps image, goodwill and continues try to develop so Vietcombank will one of 70 financial institutions in Asia in 2015-2020 as their plan.
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17. No name (n.d.). Deardoffs glossary of international economics.[online]. Available from http://www-personal.umich.edu/~alandear/glossary/m.html [accessed 14 November, 2009]. 18. No name (n.d.). Global economy. Available from http://en.wikipedia.org/wiki/Global_economy [accessed 14 November, 2009]. 19. No name (n.d.). Industrial policy. [online]. Available from http://encyclopedia2.thefreedictionary.com/industrial+policy. [accessed 12 November, 2009]. 20. No name (n.d.). Monetary policy. [online]. Available from http://en.wikipedia.org/wiki/Monetary_policy. [accessed 12 November, 2009]. 21. No name (n.d.). Monetary policy.[online]. Available from http://en.wikipedia.org/wiki/Monetary_policy [accessed 14 November, 2009]. 22. Saigon (2004). Hoi nghi nhom tu van cac nha tai tro cho Vietnam. [online]. Available from http://www.sggp.org.vn/kinhte/nam2004/thang12/26303/.[accessed 12 November, 2009]. 23. Thongtinphapluatdansu (2009). Chinh sach dat dai o Vietnam trong thoi ky doi moi. [online]. Available from http://thongtinphapluatdansu.wordpress.com/2009/09/08/3770/ [accessed 12 November, 2009]. 24. Tin tuc thuong mai (2009). 272 ty dong gianh cho muc tieu an sinh xa hoi giai doan 2009-2010. Available from http://tintucthuongmai.vn/?url=detail&id=2533. [accessed 12 November, 2009]. 25. To Kim Ngoc (n.d). Gioi han cua chinh sach tien te va chinh sach tai khoa trong kich cau o viet nam.[online] Available from http://www.docjax.com/document/view.shtml? id=1230760&title=Gi%E1%BB%9Bi%20h%E1%BA%A1n%20c%E1%BB%A7a%20ch %C3%ADnh%20s%C3%A1ch%20ti%E1%%20BB%81n%20t%E1%BB%87%20v %C3%A0%20ch%C3%ADnh%20s%C3%A1ch%20t%C3%A0i%20kho %C3%A1%20trong%20k%C3%ADch%20 [accessed 14 November, 2009] 26. Tuyen giao (2009). Bao dam an sinh xa hoi gan voi giai quyet viec lam cho nguoi lao dong.[online]. Available from http://www.tuyengiao.vn/Home/MagazineStory.aspx? mid=39&mzid=283&ID=783 [accessed 15 November, 2009]. 44
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27. VFEJ.VN (2009). Hanoi allocates 200 billion VND to social welfare. [online]. Available from http://www.vfej.vn/en/detail/18218/hanoi_allocates_200_billion_vnd_to_social_welfare [accessed 12 November, 2009]. 28. Vietbao (2006). Nam 2006, du kien giai quyet vie clan cho 1.6 trieu lao dong. [online]. Available from http://vietbao.vn/Xa-hoi/Nam-2006-du-kien-giai-quyet-viec-lam-cho-1-6trieu-nguoi/65040550/157/ [accessed 12 November, 2009]. 29. Vietcapital securities (n.d.). Anh huong cua khung hoang kinh te the gioi den Vietnam. [online]. Available from http://www.vcsc.com.vn/Upload/bantinthitruong/%E1%BA %A2nhH%C6%B0%E1%BB%9FngC%E1%BB%A7aKh%E1%BB%A7ngHo%E1%BA %A3ngKinht%E1%BA%BFTh%E1%BA%BFGi%E1%BB%9Bi%C4%91%E1%BA %BFnVi%E1%BB%87tNam.pdf. [accessed 12 November, 2009]. 30. Vietcombank (2006). Annual report 2006-Vietcombank and social activities. [online]. Available from http://www.vietcombank.com.vn/en/annual%20report/2006/6Vietcombank-and-Social-Activities.pdf [accessed 15 November, 2009]. 31. Vietcombank (2007). Prospectus. [online]. Available from http://210.245.5.35/uploads/news/Vietcombank%20Prospectus%20-%20final.pdf [accessed 12 November, 2009]. 32. Vietcombank (2008). Announcement.[online]. Available from http://www.vietcombank.com.vn/News/Vcb_News.aspx?ID=4041 [accessed 12 November, 2009]. 33. Vietcombank (2008). Milestone and achievement.[online] Available from http://www.vietcombank.com.vn/About/Milestones.aspx [accessed 12 November, 2009]. 34. Vietcombank (2008). Milestones.[online]. Available from http://www.vietcombank.com.vn/en/Content/About%20VCB/Milestones.htm [accessed 12 November, 2009]. 35. Vietcombank (2008). Social activities.[online]. Available from http://www.vietcombank.com.vn/En/Content/About%20VCB/Social%20activities.htm [accessed 11 November, 2009].
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36. Vietcombank (2009). Board of directors. [online] Available from http://www.vietcombank.com.vn/en/annual%20report/2008/Board%20of %20Directors.pdf [accessed 12 November, 2009]. 37. Vietcombank (2009). Market interest rates will continue to stabilize in the last months of year.[online]. Available from http://vcbxuanan.com.vn/new_9_2_126.vcb [accessed 14 November, 2009] 38. Vietcombank annual report (2008). Financial ratios.[online]. Available from http://www.vietcombank.com.vn/en/annual%20report/2008/Financial%20highlights.pdf [accessed 12 November, 2009]. 39. Vneconomy (2009). Chinh sach an sinh xa hoi se quyet dinh su phuc hoi kinh te. [online]. Available from http://vneconomy.vn/2009103109323237P0C9920/chinh-sach-an-sinhxa-hoi-se-quyet-dinh-su-phuc-hoi-kinh-te.htm. [accessed 12 November, 2009].
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Appendix
1. Stakeholder Mapping in Vietcombank
TYPES STAKEHOLDERS KEY PLAYERS STAKEHOLDER MAPPING KEEP SATISFIED KEEP INFORMED MINIMAL EFFORT
Internal Stakeholder Connected
Management Employees Shareholders
Stakeholders Customers Competitors Suppliers Central Government External Local Authorities
Stakeholders Professional Groups Pressure Groups
47
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2. Evaluate the extent to which selected Vietcombank achieves the objective of three stakeholders Stakeholder Internal Stakeholder Types Employees Objective High salary High health Training Connected holder Stake Customer Extent of achievement High extent Not achieved High extent
opportunity Receiving goods High extent and services of a reasonable quality Paying reasonable services a High extent price
for those goods and Innovation Tax Law national economy Not achieved Low extent High extent
External Stakeholder
Central government
Contribution to the Not achieved
3. Stakeholder Mapping.
48
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. (BPP professional education, 2004, p42)
49

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Vietcombank Always for customers success

Transmitted to: Vietcombank

Prepared by: Nguyn Thy Qunh Carol

November 25, 2009

Vietcombank Always for customers success

Vietcombank Always for customers success

Vietcombank Always for customers success

Vietcombank Always for customers success

Vietcombank Always for customers success

Vietcombank Always for customers success

Vietcombank Always for customers success

Vietcombank Always for customers success

Vietcombank Always for customers success

Vietcombank Always for customers success

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

Vietcombank Always for customers success

Stakeholder Mapping in Vietcombank

Internal Stakeholder Connected

Management Employees Shareholders

Stakeholders Customers Competitors Suppliers Central Government External Local Authorities

Stakeholders Professional Groups Pressure Groups

Vietcombank Always for customers success

Vietcombank Always for customers success

Vietcombank Always for customers success

Contribution to the Not achieved

II. 1. Internal stakeholder.

Vietcombank Always for customers success

II. 2. Connected stakeholder.

Vietcombank Always for customers success

II. 3. External stakeholder.

Vietcombank Always for customers success

III. 3. Environmental responsibilities of Vietcombank.

III. 4. Ethics and business of Vietcombank.

Vietcombank Always for customers success

III. 6. Public relation and corporate image of Vietcombank

Vietcombank Always for customers success

Vietcombank Always for customers success

Vietcombank Always for customers success

Vietcombank Always for customers success

IV. 2. The allocation of resources within the Vietnam

Vietcombank Always for customers success

Vietcombank Always for customers success

Vietcombank Always for customers success

2002 53576 2 17910 0 34728 14437 2 13317 3 8683

2003 61344 3 24941 9 71829 17759 0 16619 1 10652

2004 715307 311834 99572 212262 198305 12617

2005 83921 1 36522 9 13984 3 22338 6 20004 4 12611

2006 974266 359599 108477 251122 223497 13921

Vietcombank Always for customers success

Vietcombank Always for customers success

V. 2. Vietnams social welfare policy.

Vietcombank Always for customers success

V. 3. Assess impact of Vietnams social welfare.

Vietcombank Always for customers success

V. 4. Vietnams industrial policy.

Vietcombank Always for customers success

V. 5. Impact of Vietnams industrial policy

Vietcombank Always for customers success

Vietcombank Always for customers success

Vietcombank Always for customers success

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

Vietcombank Always for customers success

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