Assessment of enterprise loans management at Asia Commercial Bank - Hoang Cau branch for the period of 2017-2019

BANKING ACADEMY OF VIETNAM

FACULTY OF FOREIGN LANGUAGES

GRADUATION THESIS

TOPIC:

ASSESSMENT OF ENTERPRISE LOAN MANAGEMENT

AT ASIA COMMERCIAL BANK – HOANG CAU

BRANCH FOR THE PERIOD OF 2017-2019

Student : Nguyen Hoang Dieu

Class : K20ATCC

Academic year : 2017 – 2021

Student ID : 20A7510030

Advisor : Dr. Can Thuy Lien

Hanoi, May 2021

i

CERTIFICATE OF ORIGINALITY

I hereby undertake that the thesis “Assessment of enterprise loans management at

Asia Commercial Bank - Hoang Cau branch for the period of 2017-2019” is

completed based on the results of my research and that these findings have not been

used for any other studies of the same level.

I understand that the work submitted may be reproduced and/or communicated to

detect plagiarism.

Author’s signature

Nguy

Approved by

SUPERVISOR

(Dr)

Date: …………………………………

ii

ACKNOWLEDGEMENT

I am indebted various great thanks to many people for giving support me while

doing this thesis.

In the first place, I would like to express honest appreciation to Dr. Can Thuy Lien

for her guide in doing this thesis. She spent time and effort discussing and giving

me helpful advice to ensure that the research was kept on the right track.

Consequently, I was able to complete the research successfully.

Secondly, I would like to thank all the lecturers of Banking Academy who are

always enthusiastic for helping me gain knowledge and experience during the

studies.

Thirdly, I would like to express my gratitude to the leaders of ACB’s branches in

general and the ACB Hoang Cau branch, particularly for their help and support

during my studies. I also thank my family for their encouragement, support as well

as motivation.

Last but not least, I would like to thank all of my friends who encourage my spirit

and put much effort into helping me check my writing styles.

Thank you!

iii

TABLE OF CONTENTS

CERTIFICATE OF ORIGINALITY....................................................................... i

ACKNOWLEDGEMENT........................................................................................ii

TABLE OF CONTENTS.........................................................................................iii

LIST OF ABBREVIATIONS................................................................................... v

LIST OF TABLES ................................................................................................... vi

LIST OF FIGURES ................................................................................................ vii

ABSTRACT............................................................................................................viii

CHAPTER 1: INTRODUCTION............................................................................ 1

1.1. Introduction....................................................................................................... 1

1.2. Background of the Study .................................................................................. 2

1.3. Objectives of the Study..................................................................................... 3

1.4. Significant of the Study .................................................................................... 3

1.5. Scope and Limitation of the Study ................................................................... 4

1.6. Definition of Terms .......................................................................................... 5

CHAPTER 2: LITERATURE REVIEW................................................................ 7

2.1. Literature review............................................................................................... 7

2.2. Theoretical and Conceptual framework.......................................................... 10

2.2.1. Theoretical framework............................................................................................ 10

2.2.2. Conceptual framework............................................................................................ 11

CHAPTER 3: RESEARCH METHODOLOGY ................................................. 13

3.1. Locale of the study.......................................................................................... 13

3.2. Research Design ............................................................................................. 13

3.4. Source of Secondary data ............................................................................... 14

3.5. Evaluation criteria of Secondary data............................................................. 14

3.6. Statistical treatment ........................................................................................ 15

3.7. Reliability and validity ................................................................................... 15

CHAPTER 4: FINDINGS AND DISCUSSION ................................................... 16

4.1. Overview of Asia Commercial Joint Stock Bank and the ACB Hoang Cau

branch..................................................................................................................... 16

4.1.1. Overview of Asia Commercial Joint Stock Bank............................................ 16

iv

4.1.2. Organizational structure at ACB Hoang Cau ................................................... 17

4.2. Credit operation at ACB Hoang Cau .............................................................. 18

4.2.1. The orientation of lending to enterprise customers at Asia Commercial

Bank - Hoang Cau branch until 2022............................................................................. 18

4.2.2. Lending regulations to enterprise customers at ACB Hoang Cau .............. 20

4.2.3. The basis of making loan plan of ACB - Hoang Cau branch....................... 21

4.2.4. Lending process at ACB Hoang Cau to enterprise customers..................... 23

4.3. Capital mobilization at ACB Hoang Cau ....................................................... 26

4.4. Enterprise loans management at ACB Hoang Cau......................................... 31

4.4.1. Enterprise loan management planning at ACB Hoang Cau ......................... 31

4.4.2. Outstanding loan of enterprise customers at ACB Hoang Cau ................... 34

4.4.3. Enterprise customers debt collection and debt collection coefficient........ 37

4.4.4. Bad debt caused by enterprise customers at ACB Hoang Cau from 2017

to 2019 .................................................................................................................................... 38

4.4.5. Provision for credit risks to enterprise customers at ACB Hoang Cau

from 2017 to 2019 ............................................................................................................... 39

4.4.6. Examine and supervise the implementation of the enterprise loan plan at

ACB Hoang Cau from 2017 to 2019.............................................................................. 42

CHAPTER 5: SUMMARY OF FINDING, CONCLUSION, AND

RECOMMENDATION .......................................................................................... 44

5.1. Summary of findings ...................................................................................... 44

5.2. Conclusion ...................................................................................................... 44

5.3. Recommendation ............................................................................................ 45

5.3.1. Orientation for perfecting management of lending activities at ACB

Hoang Cau ............................................................................................................................. 45

5.3.2. Recommendations to the State Bank .................................................................. 46

5.3.3. Recommendation to the ACB Hoang Cau ........................................................ 46

5.3.4. Recommendation to relevant Departments....................................................... 48

BIBLIOGRAPHY ..................................................................................................... 1

v

LIST OF ABBREVIATIONS

ACB Asia Commercial Bank

ACB Hoang Cau Asia Commercial Bank – Hoang Cau Branch

CPI Consumer Price Index

CASA Current Account Savings Account

GDP Gross Domestic Product

GR Growth rate

KPI Key Performance Indicator

Vietcombank Joint Stock Commercial Bank for Foreign Trade of Vietnam

Sacombank SBL Sacombank Leasing

SMEs Small and Medium Enterprises

VND Viet Nam Dong

Vietin Bank

Vietnam Joint Stock Commercial Bank for Industry and

Trade

Techcombank Vietnam Technology and Commercial Joint Stock Bank

VinGroup VinGroup Joint Stock Company

VIP Very Important Person