OPEN UNIVERSITY OF HOCHIMINH CITY UNIVERSITEÙ LIBRE DE BRUXELLES
SOLVAY BUSINESS SCHOOL

PROGRAM ON MASTER OF MANAGEMENT (MMVCFB6)





NGUYEÃN CHAÙNH TRÖÏC





DEVELOPING “VIETCOMBANK”
BRANDNAME IN THE
INTERNATIONAL ECONOMIC
INTEGRATION



THESIS OF MASTER OF MANAGEMENT







HOCHIMINH CITY

(2007)
OPEN UNIVERSITY OF HOCHIMINH CITY UNIVERSITÉ LIBRE DE BRUXELLES
SOLVAY BUSINESS SCHOOL

PROGRAM ON MASTER OF MANAGEMENT (MMVCFB6)




NGUYỄN CHÁNH TRỰC



DEVELOPING “VIETCOMBANK”
BRANDNAME IN THE
INTERNATIONAL ECONOMIC
INTEGRATION




THESIS OF MASTER OF MANAGEMENT




Adviser: Mr. Hồ Diệu, Ph.D





HOCHIMINH CITY
(2007)
OPEN UNIVERSITY OF HOCHIMINH CITY UNIVERSITEÙ LIBRE DE BRUXELLES
SOLVAY BUSINESS SCHOOL

PROGRAM ON MASTER OF MANAGEMENT (MMVCFB6)





NGUYEÃN CHAÙNH TRÖÏC





DEVELOPING “VIETCOMBANK”
BRANDNAME IN THE
INTERNATIONAL ECONOMIC
INTEGRATION



THESIS SUMMARY OF MASTER OF MANAGEMENT








HOCHIMINH CITY
(2007)
OPEN UNIVERSITY OF HOCHIMINH CITY UNIVERSITÉ LIBRE DE BRUXELLES
SOLVAY BUSINESS SCHOOL

PROGRAM ON MASTER OF MANAGEMENT (MMVCFB6)




NGUYỄN CHÁNH TRỰC



DEVELOPING “VIETCOMBANK”
BRANDNAME IN THE
INTERNATIONAL ECONOMIC
INTEGRATION




THESIS SUMMARY OF MASTER OF MANAGEMENT





Adviser: Mr. Hồ Diệu, Ph.D



HOCHIMINH CITY
(2007)

- 1 -
CHAPTER I : BRANDNAME AND THE CHARACTERISTIC ON
BUILDING IT IN VIETNAM BANKING SERVICE.
1.1 –The concept of brandname :
In the market economy, competition is an indispensable rule, the core
value of products and services is not much differentiated. So brandname is the
key that creates the differentiation. The brandname itself is making increasingly
not only the value of products and services but also the revenue to business , or
in other way, brandname is an intangible asset .
The brandname is a signal of entity on the market. It is used to recognize
and distinguise this entity to others . However, if brandname is only a signal, it
can not become an asset. Therefore, if it is simply a name, it can not a
brandname. According to view of many marketing specialists, brandname must
be the total of many factors and be given an intellectual proprietary right in that
country. The factors such as the name of entity, logo, slogan, theme, picture and
design of products are called the part of outside, the brandname is the part of
inside and showed out vision and mission. In addition, if it is not known and
understood the vision and mission in right way (due to not advertisement), it will
not be enough idea or value.
1.2- The concept of brandname of the bank :
“Brandname of the bank” is the term of marketing. It is the name of the
bank with its prestige and charater. It makes the clients getting deep memories to
the bank and differentiating to others in banking service.

In the competing and integrating condition, the brandname of a bank
exists not only history, network but also the philosophy of right, obvious
business, the advantages and the prominence on high quality service and soft
- 2 -
price that are created on the basis of using mordern technology and restructuring
the organization and management.
1.3- The composition of brandname of the bank :
The composition of brandname of the bank is protected by the State
according to the law on intellectual proprietary right .
The banks create the value in the way of making the obvious
differentiation on banking service on the basis of brandname, holding and
developing the loyalty of the clients to the brandname. These values can change
into financial income. In fact, the most valuable asset of the bank is not only
tangible asset but also intangible one such as brandname. Therefore, the
brandname of a bank is the intangible asset that is valuable and must be cared
and properly invested.
In the developing of brandname, we must think it brandname, not a name
of product and service that we are seeing on the ads at the beginning. We must
do it famous. At the beginning, the brandname must be a prism. We need to have
a strategy and a project with the clear and specific details to appraise and be
quantitative.
Because of the developing of new product/service is so important, the
marketing specialists are often to get a mistake on the history of brandname to
manage it.
Example : Vietcombank brandname, a long time, these products/service to
those, this ad to another and it has become easy to mind to clients. Today,
Vietcombank brandname has got an enough position.
Brandname management means to get lessons and experiences from the
history in order to save the time. To brand is to see it as second hand one at the
beginning.

- 3 -
1.4- Branding and developing brandname in the Vietnam commercial banks :
1.4.1- The fact :
Nowadays, brandname is a new thing, the banks have not yet been
interested in. It is only mentioned when the joint stock commercial banks have
issued the shares to public and the equitization of the state owned ones. So, the
branding and developing brandname are more and more interested in and
awaked of . In 1990s, the Vietnamese commercial banks have had the activities
to brand, however, it was unprofessional because they have not yet recognized
the importance of brandname toward the business. Up to now, most banks have
recognized the branding and developing brandname , so there are many
programs that are more specific for branding and advertising brandname. Many
banks have got many success and stably stood on their own brandnames.
In 2004, Vietcombank is elected to be the bank having the strongest
brandname. Vietcombank brandname had a 43 – year history. To be a bank that
keep the most important role in Vietnam banking system, having trustworthiness
in financing, export – import settlement, foreign exchange and international
banking financing service. From 1996 to 2003, Vietcombank was continously
elected to be the bank having the best service on international standard
settlement.
In April 12
th
. 2006, Vietnam chamber of commerce and industry (VCCI)
officially announced that the Asia commercial bank (ACB) has been ranked to
be one of the 500 famous brandnames in Vietnam. With the aim of becoming a
top banking brandname, ACB is continuously giving out many products, services,
developing the technology in order to meet the clients’ needs that are more and
more increasing. A bank’s characteristic is to actively participate in the social
activities, it is a resposibility to the community development.
- 4 -

1.4.2- The activities :
1.4.2.1- Intensifying to advertise the brandname, the image of the bank :
- The symbols, the logoes or the images of the banks are more and more
appearing on the mass media, from television, newspapers, magazines, internet,
etc. to the panoes on the routes, especially in international airports, ports, fashion
shows, variety shows, football matches and sports events.
- Logoes, symbols of many banks are also more and more appearing on
the front pages or first pages of many kinds of newspapers, magazines such as
Saigon Times, Saigon Entreprenuers Magazine, Financial Magazine, etc.
- The banks are also paying attention to present logoes, symbols, images
that are salient, easy to look and making impression on the clients from head
offices to brands, transaction offices.
- Some are increasingly advertising the brandnames, the images by the
way of sponsoring to some activities such as : Vietcombank with “Stock
Exchange Bulletin” on VTC1 channel; Incombank with fashion shows, other
charity, social activities, the scholarship to the students; Techcombank with
education programs on TV; VP bank with “information on 24 hour market price”
on VTV1; ACB with “The knowledge on financing and banking” on HTV9, etc.
- Some are connecting to many famous brandnames to allure the clients
such as : East Asia Bank and Vietcombank in issuing ATM, ANZ with
Sacombank and Southern bank in widening banking service.
1.4.2.2- Public Relation :
- Organizing the advertizing show on the time of giving out new products ,
services such as fund mobilization, card issuance, loans ect. They are advertised
not only on mass media but also on banrons, brochures. The contents of
advertisement are not only insisting on usefulness but also having promotion and
- 5 -
after sale activities; must comply with the tendency that is honest, making salient
to products, services, not to compromise to the trustworthiness of other banks;
diversified and modern, designed by the famous advertising companies.

- Organizing the clients meetings, marketing
- The sponsorship to the sport games such Agribank with Agribank Cup,
Viecombank with Vietnam Football Team, East Asia Bank took the power on
Ho Chi Minh Police Team and renamed “Dong A – Pomina” Team and sponsors
to Vietnam badminton championship.
- Filing to patent in overseas such as Bank of Investment and
Development of Vietnam (BIDV) in USA.
- Differentiating to products, services .
- Applying to soft price on the basis of public relation in stead of the
transaction in passing time according to the strategy on bank – client relation.
- Changing process of service supply that is making clients more
convenient.
- Widening channels and lenghthening the working time. Making the
differentiation in channels by the way to set up specializing branches such as
Sacombank with March 8
th
branch that only serving to ladies.
- Using modern equipments to serve clients quick, convenient and more
accurate.
- Upgrating service quality by the way to set up service center, call center
- Applying new technology in management and service supply.
- Employing and training.
1.4.3- Limitations :
The process of building the brandname of the banks is not yet
professional, still unprompted. Moreover, though the banks all have brandnames
- 6 -
but they are unsustainable. Example : Asia Commercial Bank (ACB) where
there is a rumour, it has got the risk of liquidition immediately.
The brandnames of the banks are only famous in domestic market , not in
foreign ones. The main reason is that the competing capability of Vietnamese

banks ia still low such as asset, safety and effectiveness in business, the
capability on service supply, banking technology :
Firstly, the equity of Vietnamese banking system is about one billion USD
and is chiefly concentrated on five state owned commercial banks , in the
meanwhile, the average equity of a bank in ASEAN such as : Singaporean bank
is one billion USD and Citibank is 20 billions USD.
Secondly, the products, services of the Vietnamese banks are not
diversified. In average, the total of the services of the Vietnamese banks are
400, in the meanwhile, there are more than 2,000 in Thailand, 5,000 in Janpan.
Thirdly, the return of a bank is characterized by ROE and ROA. ROE of
the Vietnamese banks get from 4% to 14%, ROA from 0,2% to 2%. In the
meanwhile, Malaysian banks get ROE 17,6%, ROA 3,6%. It is said that the
business result of the most of the Vietnamese banks are not yet symmetrical to
the widening scale of asset.
1.5- The building and development of Vietnamese banks’ brandnames in the
international integration process :
The international integration process is increasingly wide and deep, the
pledges to the Treaties are obvious. There is no time to execute them while the
competition of the Vietnamese banks is still very low. Therefore, the
Vietnamese banks had to hurry up to build and develop their own brandnames in
order to take a existence in globalization environment.
- 7 -
The Vietnamese banks should learn how to make brandname from the
multinational banking corporation :
- Meeting the customer needs in everywhere.
- Choosing the main target markets and advertising, developing the
brandnames.
- Planning .
- Developing the competitive capabilities.
- Making the strategy for developing brandnames in the line with

booking, supervision, technology renewal, training.

















- 8 -
CONCLUSION OF CHAPTER I
In this chapter, we have clearly made the concepts of brandname,
brandname of the bank, the composition of the bank brandname, the fact of
building and developing of Vietnamese banks in present.
In order to clearly understand the building and developing Vietcombank
brandname, we shall continuously research in chapter 2 as below.





















- 9 -
CHAPTER 2 : BUILDING AND DEVELOPING “VIETCOMBANK”
BRANDNAME IN PRACTICE
2.1- Vietcombank profile :
On the legislation, the history of the appearance of the word
“Vietcombank” had a point that is noted. The decree with the number 171/CP
dated on October 26th, 1961 which was promulgated by the government
regulating on the function, mission, authority and organization chart of the State
bank of Vietnam, was the first time the name “Bank for Foreign Trade of
Vietnam” mentioned. In detail, it was obviously stated at article 4 of this decree
that relating to the organization chart of the State Bank of Vietnam, amongst the
bureaus and offices, there was “Bureau of Foreign Exchange, Bank for Foreign
Trade”. It was an unit that replacing The Service of Foreign Exchange
established in January 1955, in the organization chart of the Central Bank at that
time, called Vietnam National Bank until January 1st, 1960, it was changed the

name “The State Bank of Vietnam”. Whether Vietcombank was set up in
October, 1961 by the decree number 171/CP above - mentioned?
Since 1961, after the period of restoring and improving, the socio-
economy of North Vietnam got a lot of achievements, the government began the
mission of re-building the socio – economy in the north with larger scale and
executed the 5 – year plan (1961 – 1965). The mechanism on exclusively
holding foreign exchange and foreign trade was constructed. In the field of
foreign exchange, the management and business got the higher requests. It was
necessary to obviously state on them in the functional unit of the State bank of
Vietnam. As a result, the decree with the number 171/CP called it “Foreign
Exchange Service – Bank for Foreign Trade”.
- 10 -
It meant that, in the organization chart of State bank of Vietnam at that
time, Bureau of Foreign Exchange took responsibility for the function of
management on foreign exchange and the function of business belonged to Bank
for Foreign Trade. (Actually, the writing “Bureau of Foreign Exchange” was
enough, but adding the name “Bank for Foreign Exchange” behind made the
misunderstood on setting up a new legal person)
Practically, at the that time of Vietnam National Bank, if they just called
“Bureau of Foreign Exchange”, it could not enough contain 2 functions : the
management and business on foreign exchange of Vietnam National Bank at that
time; in the meanwhile, the Bureau of Foreign Exchange also carried out enough
the duties of a commercial bank, and the banking services and products was
more and more diversified.
With the above awareness, in reality, the State Bank of Vietnam just used
the name “Bureau of Foreign Exchange” and did not add the name “Bank for
Foreign Exchange” behind; it proved that the Bureau of Foreign Exchange was
mainly the Service of Foreign Exchange before, if there is a difference, it could
be the scale of business on the international market at that time much more
developed and enlarged than before. The indifference from the name “Service

of Foreign Exchange” in the past, at that time, the name used in international
trade had to be State Bank of Vietnam (a legal person) with cable name
Vietbank.
Why they had to establish Vietcombank with the official brandname
“Vietcombank” in replacement to VietBank? The domestic background was
said as above – mentioned.
- 11 -
At that time, the international background was in the period of the cold
war between two systems as the socialism and the capitalism which were led by
the Soviet Union and the United States. Because of the tendency of international
deùtente, peace and pushing up the commercial and economic coorperation,
emulation in production pushed up by the socialists, there was the appearance of
internal chances for developing cooperation and trading relationship with other
countries, especially, that was the cooperation of trading in bloc of the socialist
countries; between the socialist countries and capitalist ones; the others also
strengthened the diversification of trading relationships. The development of
trading economy relationships between North Vietnam and other countries was
too. Specially, in the business of Bank for Foreign Trade, at the end of 1960’s,
they had had the relationship with 171 banks in 34 countries.
In conditions of new development, the system of State bank of Vietnam
recognized the demands on the seperation between the function of currency
management and the business activity. That was the reason of the appearance
the new organization chart in the big cities and provinces “The Branch of State
bank” in order to carry out the role of management on banking business and the
system of the business branches of State Bank at the towns and districts. That
was the foundations for the State Bank carrying out the business for directly
serving customers.
In the organization of Central Bank, Bureau of Foreign Exchange
continued to shoulder the business as Bank for Foreign Trade. It was the time to
give out the request that there had to be a professional bank about foreign

exchange, having had the legal position and the brandname on domestic and
international market. It replaced the business function of the State bank of
VietNam. That was mainly the reason why the Central bank had reported to the
- 12 -
Government for setting up Vietcombank after the decree 171/CP, being the
Vietnamese first and unique commercial bank at that time exclusively banking in
Foreign Exchange. To this problem, Vietnam consulted the experiences of
Soviet Union and other socialist countries. For example, Mr. Nguyen Au, former
officer of Bureau of Foreign Exchange – former deputy director of Vietcombank,
wrote his memoirs as follows:
“In May 1958, the Vietnamese bank delegation lead by Mr. Le Viet
Luong attended the first conference of the socialist bankers in Praha (Czech and
Slovakia). After that, the banks in socialist countries carried out a re-
engineering. In 1961, Soviet Union, Czech and Slovakia, East Germany and
Bungary set up Bank for Foreign Trade. In Vietnam, because of the new demand
and duty in the correlation of foreign activities and good service for the
successful construction the socialism in the North and struggle for unification. In
1963, Vietcombank brandname officially appeared. (The banking magazine , No
4 – April 1998)”.
As a result, the establishment of Vietcombank at that time was an
optimistic growing demand of the history of foreign banking activity in Vietnam.
There was an opinion that the appearance of Vietcombank was either an
unexpectation, a situation or dealing with a lawsuit was not accurate. The
establishment of Vietcombank was a strategy of State Bank with the key role of
the officers of Bureau of Foreign Exchange at that time.
It was completely suitable with Vietcombank chairman’s speech : “After
the period of restoring and transforming the economy of North Vietnam,
matching the expansion organization and activity of State bank of Vietnam, it
was really necessary to establish Vietcombank (in April 1963) in order to meet
the requirement of economic and cultural development following the first 5

- 13 -
year plan in Vietnam. It was a bank carrying out all of banking service with the
international standards under the macroeconomic directions of State Bank
(Appendix of Vietcombank information, No 3 and 4, issued in 1998).
Vietcombank was officially established in November 30th, 1962 by
decree No.115/CP of Government .
With 2 decrees No.171/CP and No.115/CP, in the State bank at that time,
theorically, there were 2 defined organizations : Bureau of Foreign Exchange
with the function for management of foreign exchange and research of
macroeconomic policy , and Vietcombank has done business on foreign
exchange.
The logic was to promote to establish Vietcombank. On that basis, all
foreign exchange activities of State bank in the decree No.171/CP would be
transfered from Bureau of Foreign exchange to Vietcombank. Bureau of Foreign
Exchange managed the organization model on foreign exchange and researched
macroecomomic policy and Vietcombank has done in foreign banking activitiy.
At that time , Vietnam obviously knew the practical experiences in China (1955)
and Soviet Union as well as some other countries in East Europe such as
Romania, Poland, Bungary, East Germany and Czech and Slovakia (since 1961).
Yet the history of the activity of Bank for Foreign Trade in Vietnam
happened in another way. Was it a creative solution in compliance with the
situation was being splited and struggling for independence? Vietnam could not
follow the route of the others above - mentioned.
After preparation, in April 1
st
1963, Vietcombank officially inaugurated to
operate in reality with an independent legal person and being done business in
the domestic and international markets as a professional bank for foreign trade of
State Bank of Vietnam with the brandname “Vietcombank”.
- 14 -

The history of brandname “Vietcombank” in the domestic and
international market since 43 years before was a key feature in the history of
Vietnam banking industry.
Nowadays, Vietcombank has played a crucial role in the banking system
of Vietnam. Vietcombank is ranked as one of 23 special corporations by the
State and is one of the first members of the Vietnam Bankers Association and
member of the associations including the Asian Bankers Association, Asean
Pacific Banker’s club.
With long experience in banking services and a contingent of well-trained,
dynamic and enthusiastic staff, Vietcombank continues to play a crucial role in
Vietnam’s banking sector. Six years in a row, since 2000 to 2005, thanks to its
excellent performance, Vietcombank has been awarded “Bank of the year in
Vietnam” by The Banker Magazine.
As the oldest commercial bank for external trade in Vietnam, Vietcombank
has long been recognized as the most prestigious bank in trade finance, import-
export payment and other international banking and financial services. By the
end of 2005, Vietcombank was also recognized for its well-established network
consisting of:
- A nationwide domestic network of 26 branches, 41 sub-branches and 47
transaction bureaus;
- 1 finance company and 3 representative offices overseas;
- 3 subsidiaries;
- Investment in 6 enterprises (2 insurances company, 3 real estate
company and 1 technology investment company), 7 banks and 1 credit fund;
- Participation into 4 joint-venture enterprises;
- 15 -
Vietcombank has established correspondent relationships with over 1,250
banks in 90 countries and territories around the world to serve the demand of our
customers internationally. Apart from being the leading bank in utilizing the
global telecommunication payment system (SWIFT), Vietcombank is considered

as the most modern bank in Vietnam in terms of IT. More importantly,
Vietcombank has well-trained and enthusiastic staff.
Vietcombank has also marked the accomplishment the first stage of
restructuring project. Now, Vietcombank has become one of the most modern
bank in Vietnam with modern technology system that can do integrated
connection to all products, services and having made good conditions to supply
modern banking services to customers with high quality. Due to strongly apply
the other state of the art methods, Vietcombank has been making steady
advances in order to become a financial banking holdings corporation of the area
and the world.
2.2 – Business activities in 5 years (2001 – 2005) :
From 2001 to 2005, overcoming 5 years in doing restructure program,
Vietcombank has gotten the successful results : cleaning NPLs and upgrating
financial power; widely opening the business activities; modernating technology
and giving out new services; renewing and arranging the organization structure,
upgrading managing power. This result is stable steps to make equitization in the
next years.
In 5 years, total sources of funds are 20% per year in average, taking
19.8% market share. At the end of 2005, total fund is 138,665 billions dong, more
2.1 times than year 2001.
In the stage 2001 – 2005, credit line was going up, especially in 2002,
28% per year in average – higher than the speed of increasing total asset, the
- 16 -
rate total loans and total assets at the end of the year 2005 reached 40.5%, higher
than the figure of 2000 with 22.9%. Up to the end of year 2005, outstanding loans
increased 4 times higher than the year 2000, had significantly improved the loan
market share of Vietcombank.
In accordance with the policy to increase credit activities, credit quality
has also been improved. Overdue debts were controlled and upheld at the low
level with the rate being accounted for 2.7% at the end of year 2005.

International settlements of Vietcombank has reached the stable growth.
In the stage of 2001 – 2005, Vietcombank upheld as much as 28% of the total
export and import payments of the country at the average level 26% per year.
Vietcombank is also the leader in card service, supply new products with
new utilities, state of the art and safety for customers. About the market share,
card payments handled 50%, international card 40% and 60% for local cards. By
putting ATM card and POS network of the whole system, card services had
gained achievements, the bank’s international card payment volumn increased
300% within 5 years of restructuring program. By developing new products –
ATM connect 24 – attracted nearly one million customers within the lastest 3
years (in 2006, more than one million customers).
Year 2001, Vietcombank Core Banking was put into use, marked the
development of Vietcombank technology and concentrated all informations and
settled transactions and changed the practices on transaction of customers as
well. On this base, Vietcombank has developed the mass products such as :
- “Vietcombank online” has activated on May 2002 and has been
developed by all branches. The customers can withdraw their money anytime at
all offices of Vietcombank in the country.
- 17 -
- “Vietcombank money” was a service that is supplying “Home Banking”
and “eBank” to the customers . The customers do not need going to the bank for
transaction.
- “Credit card service”, “ATM system” and “Vietcombank Connect - 24”
which got international standards have been occupying card service market share
in Vietnam; this system can also be connected to other banks in Vietcombank
card coalition .
- “Vietcombank Cyber Bill Payment” makes easier to customers in using
Vietcombank Connect – 24 card from ATM in order to pay fees for electricity,
tap-water, telephone, bills, credit cards, ect.
- “Vietcombank Global Trade” is a commercial funding product with

integrated capacity to other ones, meeting customers’ demands on commercial
transactions all over the world.
- “Vietcombank Treasure” is a treasuring product with concentrated
managing capacity to the fund of customers, making many facilities to intensify
profitability of the fund. Otherwise, in the line with concentrated management on
communication, Vietcombank is also to bring forward advices to customers in
using banking services that making maximum advantages to customers.
Being aware of the importance of the bank’s reform is to renew
management and organization, so the restructurring project (phase 2) of
Vietcombank concentrates on model of customer oriented organization and
management based on international standards. Due to the assistance from World
Bank and Dutch Government, Vietcombank completed the new organization
project and submitted to State Bank of Vietnam as well as having deployed the
model of credit risk management in 3 branches (HaNoi, DaNang, Hochiminh
city) and in the whole system in 2006. In 5 passing years, the mass of the mode
- 18 -
of modern risk management has been researched and applied such as : the
scoring and rating systems for corporate customers, credit control, treasury
management etc.
To gain the growth and the network development of Vietcombank, the
human resources is always increased both quantity and quality. Up to now, the
numbers of employees in the whole system has reached 6,700 persons (increased
2.5 times compared with the year 2000), including 21 Doctor (Ph.D), 192 MBA
and more 6,000 BA. Yearly, Vietcombank has appointed hundreds of the
employees to attend short, middle and long term courses for training in the
country as well as the overseas to collect new knowledges, to consolidate and to
upgrade the advanced level with the aim to meet customers’ demands.
The earning before tax of Vietcombank increased 17% per year in
average, gained VND1,900 billion in the year 2005. However, this figure
reached nearly VND3,000 billion if including provision, 5 times more than year

2000.
The growth of the Vietcombank’s income in the lastest years is one of the
important factors which makes the premise to consolidate financial potential of
Vietcombank.
Other indicators proved the growth of profit that was maintained yearly,
the Bank’s capital adequacy ratio (CAR) has been improved (8,5% according to
IAS) and met the demand of international standard.
The mission that set up in 2005 was carried out well. Three year in a row ,
Vietcombank has significantly reached in business results. Total income
amounted VND 10,100 billion in the year 2005, increased 13.5% compared to
that of 2004. This is the first year the bank’s total income gained over VND
10,000 billion in which interest income from loans is 48%, forex operation
- 19 -
income is 30% of total income. Total expense was VND 7,700 billion, an
increase of 51.6% compared to that of 2004 in which interest expense is 62% of
total expense (increased 45% in comparision with the year 2004)
The earning before tax on the whole system at the end of the year 2005
reached VND1,900 billion after provision, an increase of 32% compared to that
of 2004 and reached 18.6% of total earning before tax of the overall banking
sector.
2.3 - The choice for “Vietcombank” brandname :
Each brandname strategy has both strong and weak points. However, to
choose a good brandname strategy, Vietcombank can not only rely on its strong
and weak points . Because of the choice of brandname strategy does not make a
particular style, but being a strategic decision to Vietcombank brandname with
the reason is to improve reputation and the customers’ loyalty. Therefore, the
choice for brandname strategy of Vietcombank must rely on three factors which
are carefully analized such as the diversification and utility of banking service,
habit and passion of customers, and the bank’s competitive position in the
market.

By expanding network, diversifying methods of mobilizing funds as well
as after service programs for customers, the Vietcombank activity of mobilizing
funds has been developing. The Bank’s funding structure has been changed.
About credit activities accompanied with corporate customers after many years,
credit activities have highly grown. Vietcombank has paid more attention to
major projects such as : petrolium and gasoline sectors, electricity sector, postal
service, infrastructure projects which are the life-line of the economy. However,
although total outstanding loans have highly grown, the market share has been
- 20 -
modest about the bank’s achievements in comparision with other banks. Credit
activites has been always controlled by the bank.
In paralel with its development on fund mobilization and credit growth,
the service of the bank has also continued to be expanded. Vietcombank with its
strong position in the international settlement, it is also one of the banks which
lead in supplying new utilities for customers such as : Vietcombank online,
Vietcombank core banking, Vietcombank connect 24, etc.
Due to significantly efforts of 6,700 employees in the whole system, the
operation of Vietcombank has gained the achievements. It ensures that
Vietcombank completed the burget contribution as well as provision to settle
NPLs that being one of the main targets of the restructuring project. Up to now,
Vietcombank has gained satisfactory results on capital, forex dealings, IT, IMEX
settlements , ect. Good results of Vietcombank were auditted by Ernst and
Young Auditing Company.
The Banker Magazine is one of the reviews of Financial Times (British)
has awarded “Bank of the Year in Vietnam” to Vietcombank.
2.4 - Community activities :
Community activities have always been considered and carried out with
VND 5,135,898,000 in total for 2003-2005.
In addition, Vietcombank has also participated in other social activities
such as : Hai Ba Trung Temple embellishment; Gold Heart Fund for supporting

to employees who meet with the accident at worksite; giving allowance and gifts
to beneficiary, social welfare and children in poor rurals; blood donation;
supporting to the wounded soldiers in Thuan Thanh procinct, Bac Ninh province;
contributing to Fund for handicapped children in Hochiminh city; sponsoring for
campaign “together take care of martyrs”; supporting to Tuyen Quang province;
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supporting to tribesmen in Dac Lac province; supporting to Patronizing
Association for Poor Patients in Hochiminh city; supporting to Cuban people for
Dennis storm; helping victims of dioxin and tsunami.
2.5 - Marketing activities to develop Vietcombank brandname at present :
To affirm that, up to now, Vietcombank has gained many achievements in
the restructuring project. In addition, Vietcombank continues carrying out
reforming program, upgrading the competitive capability .
One of the solutions is to settle NPLs, to make balance sheet clean – up,
to increase the bank’s equity, to renew IT and organization and management
capabilities, to diversify services, etc. Renewing and enhancing of banking
marketing method is one of the important solutions to improve quality, business
outcomes at present. Studying the real situations and using marketing research to
develop Vietcombank brandname, some of comments are considered as follow:
Firstly, marketing activities are moving towards international standards.
Vietcombank is applying general marketing methods as : popularizing
brandname, marketing “door-to-door” to customers, diversifying forms of
advertisement, promotion, focusing on service, product and customers.
About popularizing Vietcambank brandname : Vietcombank has no
change logo, symbol, but just emphasize to colour, e.g, “Vietcombank” is always
green colour. As a whole, to affirm that, logo or symbol have modern
characteristics that comply with international standard, emphasizing of
Vietcombank’s specification , making good impression to customers, having
graphic, art characteristic, having been listed on copyright at Vietnam industrial
property office.

Vietcombank has diversified the methods to popularize symbol, logo,
image according to international standard such as : supporting to Vietnam