Introduction to Bank For Investment And Development Of Vietnam (BIDV Bank) and Ha Tay Branch

products and services to satisfy the rapidly changing demand of the market. 2016 marked a

difficult year for financial market . However, BIDV quickly adapted to the new business

environment and obtained successful business results in that year. Some key financial

statistics of BIDV are set out as follows:

- As of 31 December 2016, BIDV's total assets reached 1.006.404 billion, the bank

was continuing to be the leading commercial joint stock bank in Vietnam.

- With continual improvement, BIDV has won a number of impressive awards

including “National Brand” (5 times in a row), “top 2000 largest and most powerful in the

world” voted by Forbes Magazine.

1.2. Introduction of BIDV Bank – Ha Tay Branch

BIDV Ha Tay is a subsidiary of BIDV, formerly run by Ha Son Binh Investment and

Development Department. The branch was established on June 1, 1960. As of 1 January 1995,

this branch mainly operated in mobilizing short, medium and long term capital in Vietnam dong

and Dollars to carry out lending activities in three types of term.

Over 57 years, BIDV Ha Tay has operated in accordance with the direction of the

Board of Directors of BIDV as well as the guidelines, policies of the gorvernment, and make

the safe target in business to meet the biggest request of clients on products and services at the

lowest cost.

BIDV Ha Tay Branch is a relatively large branch compared with other commercial bank

branches operating in Hanoi. It is currently housing 167 staffs including 1 director and 3

deputy directors. The organizational structure of the branch is as follows:

- Board of Directors (4 persons)

- Customer Relations Management (3 rooms)

- Risk Management (1 room)

- Operation (5 rooms)

- Internal Management (2 rooms)

- Subordinate (7 transaction point)

The organizational structure of BIDV Ha Tay branch is shown in the following diagram:



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Figure 2 : The organization structure of BIDV- Ha Tay Branch



2. Overview of our project

2.1. Choice of project

Housing loan services have become an increasingly important product for each Vietnam

commercial bank. As a result, they always find some solutions to improve this type of loan.

BIDV Ha Tay located in Ha Dong District, where have a high population rate. Moreover, this

area is chosen by investors to improve some house projects for people such as Xuan Mai,

HUB3, etc. So, expanding the house loan services to meet a demand of customers is

indispensable for BIDV Ha Tay and some competitors. In recent year, investors focus on

apartment projects to help satisfy the growing demand for housing in urban areas. To improve

the house loan services, BIDV Ha Tay need to exploit a new market segment. That is also the

reason why my group selected the project: ‘Improving the house loan service at buying

apartment segment in Ha Noi’ in BIDV Ha Tay branch, where this service still faces with

some challenges.

2.2. Organizing the project implementation

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2.2.1. Objectives

- To understand customers demand

- To explore the demand of house loan service

- To exploit a new potential market

- To propose potential solution to improve house loan services

2.2.2. Introduction of group member

* This table below sets some basic information of members in group 1:

Last name

LUONG

PHAM



DANG

TA

DINH



First name

PHAN HA

(Leader)

GIA TRUONG AN

(Member)



Phone/Email

Tel: 0971878696

Email : Sep2093@gmail.com

Tel: 0965335597

Email : antruongpham1010@gmail.com



THI TUYET LINH

(Member)

THANH TAM

(Member)

THI THUY TRANG

(Member)



Tel: 0965156574

Email : Tuyetlinh.21197@gmail.com

Tel: 0985545205

Email : Tathanhtam1997@gmail.com

Tel : 0988833597

Email : dinhmia@gmail.com



II. Project implementation at BIDV Ha Tay

1. Overview of BIDV house loan service for individual

1.1. Introduction of BIDV house loan service for individual

 Overview of the product for individual customers

. Individual customers include people who reside or work frequently in the same area

with the financing BIDV branch

Product features :

method

-



The loan amount is up to 70% ( especially, 100%) the house price

The Loan period is up to 240 Months

Various payment methods include monthly, quarterly, semi-annually, annually

Interst rate usually fluctuates around 7-7.8% in the first year and 10.5 – 11% from



the second year, which does not offer more incentives than other banks do.

- Lending method applied is Partial method

- The collateral is the unit which has certification of land use right

. Condition of the customers

-



The customers must be within the working age from over 20 to not over 60 when



the loan expires

- The customers have no bad debt of more than 3 months at the bank and other credit

organizations as of the time of the loan

- The financial situation is good and have clear evidences of sound financial status

- During the committed period, customers must have enough financial capability to

take repayment of both the principle and interest.

- Customers must have enough equity capital, which related to the loan following the

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policy of the bank.

Process of house loan service for individuals

Step 1: Receiving and filling the loan application

First, customer care officer will present the information of house loan products to

customers and some advice regarding incentives, advantages and disadvantages of some

product packages.

The customer then fills in a loan proposal form. Data provided in the proposal form will

then be evaluated by credit officers.

Step 2: Appraisal of customer’s data

The profile of customer will be handled through the risk management department to

check the accuracy and the risk if any. This process will include:

+ Appraisal of Customer information: Loan conditions, legal entity, income, marital

status

+ Appraisal of loan payment ability.

+ Appraisal of customer purpose of borrowing.

+ Check the collateral asset information, and evaluate the value of asset in reality.

Step 3: Entering into a contract with a customer

The authorized leader of business can allow the loan.

The contract is established with the legal provisions on the obligations of the bank and

the customer, and the details of product package that customer receives. The customer and the

bank legal representative will execute in this contract, and the contract will take effect after

being executed by the two parties.

After that, the bank will carry out the disbursement of the loan and commence to

monitor customer’s payback activities.

1.2. Evaluating BIDV house loan product for individual

Through some data we collected and studied, we set up the SWOT table to have a

common view about BIDV individual house loan product.



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