INTERNSHIP REPORT BANKING ACADEMY
I. Brief introduction of the Organization Business Sector
1. Overview of the organization
1.1. Brief history
Ho Chi Minh City Development Joint Stock Commercial Bank, abbreviated as HDBank,
was founded on 4th January 1990; with its present head office based at 25 Bis Nguyen
Thi Minh Khai, District 1, Hochiminh City. HDBank is one of the pioneering joint stock
commercial banks in Vietnam. Its initial chartered capital is 3 billion VND and it is
responsible for mission of “providing international standard products and financial
services, satisfying the various demands of customers”.
After 24 years, HDBank has achieved chartered capital of 8.100 billion VND, total assets
of nearly 90.000 billion VND. Its typical shareholders are Viet Nga Infrastructure
Investment Corporation - SOVICO Holdings, Hochiminh Finance and Investment state-
owned Company – HIFU, Tan Thuan Industrial Promotion Company – IFC, Thuduc
Housing Development Corporation – Thuduc House, Saigon Real Estate Corporation –
RESCO, Saigon Trading Group – SATRA and so on.
HDBank was equipped the modern information technology system – Core Banking –
with international standard. It also developed a network of about 200 branches and
transaction offices available in most the largest economic centers of the country such as
Hochiminh City, Hanoi, Danang, Nha Trang, Binh Duong, Can Tho with a total staff of
about 4.000 people.
HDBank built up their reputation in finance and banking market, especially in credit
field, developed a solid platform and overcame the difficult and challenging periods.
HDBank’s business operation including, mobilizing capital (short-term, mid-term, long-
term in different methods such as limited, unlimited and certificates of deposits (CD);
receiving investment and development capital from national organizations, borrowing
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from another credit institutions), lending (short-term, mid-term, long-term), discounting
commercial papers, bonds, executing interbank payment service, trading foreign
currencies, bullion in domestic and foreign markets according to international standard,

conducting international payment transactions, mobilizing capital from foreign countries
and implementing another banking services in accordance with foreign banks.
With the rapid and strong development of HDBank during recent years, HDBank has
achieved outstanding results, completed organization restructuring and accumulated
financial resources, products, services, human resource, technology and so on to be ready
to start a stronger developing stage of HDBank.
During its operation, HD bank has won a range of titles and awards from prestigious
organizations nationally and internationally, including, “The best savings bank” (by
Vietnam Economic Times), “Chief Security Officer (CSO) ASEAN Awards 2012” (by
International Data Group - IDG), The Gold Award in “Annual Report Competition
Vision Awards 2012,2011” (by League of American Communications Professionals-
LACP), “High Straight-Through Rate for Payment Processing” (by Wells Fargo Bank),
“Global Payments Excellence Award (by Citi Group), “Prestigious Southeast ASEAN
Brand Award” (by Vietnam Intellectual Scientific Forum), "The best local Cash
Management Bank" (by Asiamoney Magazine) and so on.
HD Bank sets out the strategy for 2014 of continuing effective and multi-functional
operation target, providing the best service for corporations, investment and retail
banking, international network development. Therefore, HD Bank will focus on four
specific action programs, which are, credit effectiveness; safe operation; service quality
promotion and cost control. HD Bank will endeavor to fulfill these criteria, including,
total assets of 104.607 billion VND, mobilization of 76.000 billion VND; 53.700 billion
VND in lending; pre-tax profit is 1.028 billion VND; ROA: 0.81%; ROE: 9.52%.
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1.2. Nature of the organization
As can be seen from the name “Ho Chi Minh City Development Joint Stock Commercial
Bank”, its operation is the same as normal commercial banks.
Besides developing the general operation, HDBank orients to build a business culture
which is energetic, transparent, humanistic and professional as well as promote social
activities, contribute to protect national security.

In the market, HDBank possesses a lot of strengths, of which outstanding products are
enterprise finance and individual customer products and services. Since establishment
date, HDBank always grew well at the activities of credit, capital mobilization as well as
the other service activities such as guarantee, investment, international payment, etc. For
many years, HDBank has been on the top of the group of Joint-stock Commercial Banks
and classified A level by the Bank of State. In addition, HDBank has received high
appreciation from experts about reputation, profession and product quality. It becomes
motivation for HDBank to reach the international market.
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1.3. Business volume
Figure 1: Some financial indicators in the period of 2009-2013
(Source: HDBank Annual Report)
Unit: billion VND
Items 2009 2010 2011 2012 2013
Total Assets
19.127,427 34.389,227 45.107,227 52.782,831 86.226,641
Equity
1.796,164 2.357,637 3.547,632 5.393,746 8.599,548
Chartered
capital
1.550 2.000 3.000 5.000 8.100
Deposit
17.131,668 30.494,410 39.686,417 46.368 76.304
Total
operational
income
492.643,740 710.598,660 1.246,686 1.522,408 -
Total
operational

cost
200,459 337,907 594,603 796,522 1.010,000
Profit before
provision
292,185 372,692 652,083 725,886 396
Cost of risk
provision
37,280 21,960 86,107 298,736 -
Profits after
tax
194,205 269,409 426,496 326,431 217,000
ROA
1,02 % 0,78 % 0,95 % 0,9 % 0,57 %
ROE
12,12 % 12,99 % 14,2 % 9,12 % 5,66 %
EPS
1.252,93
VND/share
1.347,04
VND/share
1.421,65
VND/share
653
VND/share
-
Number of
transaction
points
70 points 96 points 120 points 123 points 190 points
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1.4. Product lines
HDBank services the product lines which were classified into 2 types of customer: Retail
Banking and Corporate Banking.
1.4.1. Retail Banking:
 Accounts and deposits
 Current account
• Current account
• Progress account
 Fixed deposit
• Prepaid interest deposit
• Term deposit
• Short-term Gold Certificate of Deposit
 Services
 Periodical payment
 Inward remittance
 Outward remittance
 Bill settlement
 Electric bill settlement
 Make a payment for VietJet Air tickets
 Loans:
 Personal installment loan
 Home construction/ repair loan
 Car loan
 Loan on mortgage/ Savings – book discount loan
 Study abroad loan
 Personal consumer loan
 Overdraft
 Home loan
 Securities loan

 Business financing
 Private enterprise loan
 Capitalization loan
 Cash advance of sale - stock
 Supporting Business capital loan
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 Business Installment loan
 Cards and other services:
 Card products
• The identified domestic Debit Card
• Prepaid card – HDBank gift card
• Co-branded card Securities Card
• HDBank Master Card international credit card
• Smart card – HD Card
 E-banking
• mBanking
• eBanking
• SMS Banking
• Online payment
• VnTopup
• Inter-bank transfer via card
1.4.2. Corporate Banking:
 Mobilization and Financial Service:
 Current account
• Current Account
• Flexible Account
• Progress Account
• Deposit Account
 Term deposit

• Term deposit
• Term deposit with prepaid interest
• Term deposit with flexible capital withdrawal
• Short-term certificate of deposit
• Automatic accumulation deposit account
 Financial Service
• Cash collection
• Cash payment
• Bill collection
• Bill payment
• Payroll/ Commission services
• Centralized deposit account
 Other services
• Fax transactions
• Electric Bill
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 Credit and Guarantee
 Working capital finance
• Business production loan
• Overdraft
• Cashew nut loan
• Rice loan
 Export finance
• Export finance prior delivery
• B/E and export documents discount
• Loan guaranteed by export receivables
 Import finance
• Import finance
 Medium – Long-term loan

• Term loan for fixed asset/ project
• Car loan
• Special loan for small and medium enterprise (JBIC, JICA3)
 Banking guarantee
• Domestic banking guarantee
 International settlement:
 Telegraphic Transfer (T/T)
 Cash against Documents (CAD)
 Documentary Collection
 Letter of Credit (L/C)
 Foreign currency trade:
 FX Spot Transaction
 FX Forward Transaction
 FX Swap Transaction
 E-banking:
 eBanking
 mBanking
 SMS – Banking
 Internet Banking
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1.5. Competitors:
Competitors of HDBank are the joint-stock commercial banks in Vietnam, for example:
Asian Commercial Bank, Sacombank, Techcombank, Eximbank, Dong A bank, Ocean
bank, Military Bank, etc.
2. Organizational structure
2.1. Organizational chart:
Figure 2: Organizational Structure of HDBank
(Source: HDBank Annual Report 2012)
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2.2. Number of employees:
Figure 3: The amount of staff
(Source: HDBank Annual Report)
Year 2009 2010 2011 2012 2013
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Total
employees
(including its
subsidiaries)
1.288 1.752 2.162 2.227 3.600
2.3. Main offices:
Address: 25 Bis Nguyen Thi Minh Khai, District 1, Hochiminh City, Vietnam
Tel: (08) 62 915 916
Fax: (08) 62 915 900
Website: www.hdbank.com.vn
2.4. Introduction of all departments:
There are numerous departments of each division in HDBank.
Corporate Customer Division
It includes 3 departments: Policy and Product Development Department (Dept),
International Payment Dept and Sales Management Dept. This division provides banking
services for corporations, acts as an intermediary for enterprises. It includes ODA credit
operations, large trading on the inter-bank market, co-financing activities and other
activities.
Consumer Banking Division
It includes 4 departments: Product Dept, Sales Support Dept, Card Dept and Sales and
Service Centre. The customers are individuals, households and who have stable income
at middle level and above, household business customers in production, sales, services,
etc. This division provides customers a product portfolio of standard service,

diversification, multi-utility, applying international standard, at high quality, based on
modern technology and appropriate for each type of customer in which focuses on
developing strategic products.
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Treasury Division
 Treasury Department
 Investment Department
Risk Management and Control Division
It includes 5 departments: Risk Management and Control Division, Asset Evaluation
Section, Legal Dept, Internal Control Dept and Non-performing loan Collection Dept.
This division plays an important role in monitoring the risks associated with all activities
of the bank and acts as a strategy partner to the business units, give them advice on risk
issues of their projects.
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2.5. Comments on the organizational structure:
HDBank has an obvious organizational structure. Each department of the bank has one
heading person. These departments also have been further departmentalized based on
need to serve the customer with the best-quality services.
The departments in HDBank’s system are operated independently but have strong
relationships, mutual support through regular meetings to implement the common targets
of this bank.
II. Internship activities
1. A brief introduction of HDBank Thanh Cong
With the promise of providing best benefits for customers, HDBank always concentrates
on developing network as well as operation results. On 26
th
February 2011, HDBank
opened two new offices in Hanoi. HDBank Thanh Cong was one of them. With modern

and customer-friendly transaction office system, HDBank has been promoted service
quality and become the destination satisfying all the demand of finance and banking of
people.
1.1. The organizational structure of HDBank Thanh Cong
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Figure 4: The organizational structure of HDBank Thanh Cong
1.2. Some activities results of HDBank Thanh Cong
Figure 5: The situation of capital mobilization at HDBank Thanh Cong
(Source: Annual Report)
Unit: billion VND
2012 2013 2012/2013
Amount Rate
(%)
Amount Rate
(%)
Amount +/- times
Total deposits 116.28 100.00 131.40 100.00 15.12 1.13
Term -
Non-term deposit 32.42 27.88 46.74 35.57 14.32 1.42
Term deposit 34.58 29.74 42.85 32.61 8.27 1.23
Escrow deposit 1.24 1.07 2.73 2.08 1.49 1.81
48.04 41.31 39.08 29.74 (8.96) -0.81
Source -
Residents 25.48 21.91 31.98 24.34 6.51 1.25
Businesses 90.81 78.09 99.42 75.66 8.61 1.09
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Head of Office
Deputy-Head of Office
Credit

Department
Accounting
Department
Treasury
Department
Sales
Department
INTERNSHIP REPORT BANKING ACADEMY
Figure 6: Outstanding loan on term
Unit: billion VND
2012 2013 Margin (+/-)
Total outstanding loan 41.92 70 28.08
Outstanding loan on term 0.00
+Short-term 9.26 21.40 12.14
+Mid and long-term 32.66 48.60 15.94
2. Starting and ending dates of internship:
Starting date: 20/02/2014
Ending date: 18/05/2014
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3. Detailed description of the department student worked in during internship
HDBank Thanh Cong was established and officially went into operation on 26 February
2011 and had registered office location in 101 & 201 – C18 Nguyen Hong, Lang Ha
Street, Dong Da District, Hanoi, Vietnam. HDBank Thanh Cong is one of transaction
points of Hanoi branch.
At the beginning, I felt a little bit nervous when joining the internship program. But after
my first day at work, my nervousness disappeared. The staffs at the bank were very
friendly and kindly. The working environment is very healthy and energetic.
I worked in Accounting Department which deals with the steps relating to all activities of
accounting and direct transactions such as opening cards, savings book, introducing

products, etc. for both corporations and individuals. I was guided to work and be
responsible for the position of a teller. My duty is checking the profile of customers who
want to open cards or saving books. If the documentary is efficient and legal, the other
staff in this department will help me record and submit for approval to implement the
next steps. In addition, I also supported to check the accuracy of books and the
conciliation at the end of day.
I gained the knowledge of accounting, how to use the banking software as well as how to
avoid common mistakes. I also understand more about the lessons that I learnt in the
class.
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III. Critical analysis:
Internship program helped me transform my academic knowledge learnt from various
subjects into practical knowledge in HBank Thanh Cong. This position requires the
employees to be very good at communication skills, carefulness, proper understanding of
the process implementing transactions. In internship period, I was instructed about these
skills. I applied the theoretical concept of financial ratios which was taught in class to
analyzing the financial statements in practical experience in HDBank Thanh Cong.
1. Achievements
Thanks to advantages such as stable, steady business environment and attractive policies;
moreover, DaiABank merger and SGVF acquisition, HDBank has many advantageous
opportunities to approach customers in recent years. There are some results below:
 The increase in total assets, chartered capital and transaction offices
 The expansion in customer categories
 The improvement of bank staff’s qualification
In summary, HDBank has an impressive speed of development. In comparison with other
larger banks in Vietnam, HDBank is still a new bank. However, HDBank has achieved
great successes. “The best savings bank” (by Vietnam Economic Times), “Prestigious
Southeast ASEAN Brand Award” (by Vietnam Intellectual Scientific Forum), "The best
local Cash Management Bank" (by Asiamoney Magazine) are the best proofs for

HDBank’s efforts. In this, HDBank Thanh Cong contributed by awards such as
“Excellence Savings Office 2013" and “Excellence Mission Complete 2013”.
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2. Limitations and causes
2.1. Limitations:
Besides the great success that HDBank Thanh Cong has achieved in recent years, there
still remain a lot of shortcomings that have negative impact on the development of
HDBank Thanh Cong.
 Lack of high-technology facilities.
 The undiversified customer categories: HDBank provides services for both
individuals and corporations; however, its main customers are still individuals.
2.2. Causes:
a. Objective causes:
 HDBank Thanh Cong is a savings fund, mainly provides saving products, which is
less attractive to businesses.
 The competitiveness of banking system: the fast growth of domestic commercial
banks and the appearance of foreign banks caused big challenges for HDBank.
 The changes in economic situation in Vietnam and the world.
b. Subjective causes:
 Lack of investment
 Some weaknesses of Sales Department
SWOT Analysis of the organization:
Strengths:
 Ability to limit the difficulties.
 Board of Directors’ instruction, Board of Management’s dynamics.
 Well-known and professional HDBank brand.
 Stable and new organizational structure.
 Effective operation.
 High technology system.

Weaknesses:
 Lack of scientific organizational scale.
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 Less attractive reputation compared to large banks.
 High margin fee.
Opportunities:
 Increasing demand of consumer banking: Trust and reliability creates chances to
enhance deposit, lending and other services.
 Increasing profitability: The vast network of domestic and overseas branches
linking to transaction office can help to expand business.
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Threats:
 Economic difficulties:
Economic difficulties also affect the commercial banks, as incomes from services
declined sharply. Many customers tend to restrict the use of commercial bank services in
order to cut their input costs. In addition, the world’s economic problems also affect the
enterprise in Vietnam due to high input costs. Many companies go under and cannot
adapt the high lending interest rates. As a result, it is not easy for banks to find the proper
borrowers in 2014.
 Risk of Defaults:
The failure of projects can make the bank get into difficulties to recover their funds from
these defaulters.
 Trend of banks merging:
There is a trend of mergers among the banks to become prominent in the market and to
get the maximum market share. This trend can result into the union of some leading
banks which can give tough time to the bank and it will become difficult for the bank to
compete with them.
 Trust of customers:

Recently, there were many scandals in banking field that make the belief of people in
banking system go down. Banks have to face with customer’s worries.
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IV. Conclusion
The integration into the World Trade Organization (WTO) has had active impacts on
Vietnam economy such as high foreign direct investment, expanded export and import
market. Besides opportunities, Vietnam is still facing a lot of challenges. Taking
advantages of chances, dealing with all difficulties are two top duties of our country. With
a view to supporting nation development, establishing a solid position in domestic and
foreign financial market, HDBank in general and HDBank Thanh Cong in particular must
be well aware of developing capital mobilization.
On the basis of various study method, theoretical knowledge, the internship report has
already completed three main tasks. First of all, the report has collected and analyzed
theoretical problems about capital mobilization systematically then delved into
researching this method. After that, some financial and nonfinancial norms are introduced
to show the real situation. Moreover, the report has also mentioned subjective and
objective factors influencing the quality of services. Due to the limit of conditions and
research time, graduation thesis still has a lot of insufficiencies. It is my honor to give
support and advice from all teachers and my school- fellows.
Hope that my report and petitions will make a small contribution to develop capital
mobilization at HDBank Thanh Cong so that this bank can be improved much better in
the near future. As a consequence, Vietnam economy integrates more widely and deeply
to the world economy in upcoming years.
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V. Recommendations for improving
 Completing organizational structure
After M&A, HDBank needs to focus more on organizational structure. Completing
management system is necessary at this time.

 Renovating technology and information network
HDBank should attend to equip high technology and modern information network system
in order to provide safest and effective products to various customer categories.
 Improving the ability of managers and broadening professional knowledge for staff
Training courses are available in almost organizations. Nevertheless, with the demand of
high quality staff, banks like HDBank need to hold training program frequently for staff
as well as managers to get the best results in banking market.
 Promoting reputation
HDBank has many achievements in recent years. To increase its competitiveness, this
bank should build professional and energetic culture to boost HDBank reputation.
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REFERENCES
Ho Chi Minh City Development Joint Stock Commercial Bank. (2009). Annual Report.
Ho Chi Minh City Development Joint Stock Commercial Bank. (2010). Annual Report.
Ho Chi Minh City Development Joint Stock Commercial Bank. (2011). Annual Report.
Ho Chi Minh City Development Joint Stock Commercial Bank. (2012). Annual Report.
Ho Chi Minh City Development Joint Stock Commercial Bank. (2013). Annual Report.
Website:
Website:
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