Tóm tắt Luận án Brand development of joint stock bank for foreign trade of Vietnam system – Vietcombank

MINISTRY OF EDUCATION AND TRAINING VIETNAM UNIVERSITY OF COMMERCE ------------------------- NGUYEN TIEN DAT BRAND DEVELOPMENT OF JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM SYSTEM – VIETCOMBANK MAJOR: COMMERCIAL BUSINESS CODE NO.: 62.34.01.21 SUMMARY OF DOCTORAL THESIS HANOI, 2015 The Thesis was completed in: Vietnam University of Commerce Scientific Instructors: 1. Associate Prof. Dr. Nguyen Quoc Thinh 2. Associate Prof. Dr. Nguyen Van Thanh Reviewer 1: .. Reviewer 2: .. Reviewer 3: .. The Thesis will be defended before University Level Thesis Assessment Council met at Vietnam University of Commerce at.. hours date . month . year. For more details of the thesis, refer in: National Library Library of Vietnam University of Commerce List of the Scientific Research Works Published By The Author Related To The Thesis The papers published in scientific journals, research works Year of publica tion Name of Papers, Name of Scientific Works researched Name and Number of Publication Review, Title, subject code The level of participation (Author or Co-author) 2012 The issues raised for the brand development of bank sector Financial and Monetary Market Review, No. 13 (358) dated 01/07/2012, ISSN 1859-2805 Co-author 2012 Factors affecting the ability of sustainable development of commercial banks Financial and Monetary Market Review, No. 17 (362) dated September /2012, ISSN 1859- 2805 Co-author 2012 Assessment of the level of competition of the banks in the system through market concentration index Financial and Monetary Market Review, No. 18 (363) dated September /2012, ISSN 1859- 2805 Co-authors 2012 Commercial banks' synchronous implementation of many solutions to improve the quality of human resources Financial and Monetary Market Review, No. 22 (367) dated November /2012, ISSN 1859- 2805 Co-author 2012 Brand Development for Commercial Banks in Vietnam Banking Review, No. 12 dated June/2012, ISSN-0866-7462 Co-author 2012 Risks in lending coffee commercial business enterprises Banking Review, No. 23 dated December /2012, ISSN-0866- 7462 Author 2012 Brand development and the issues raised for the brand development of bank sector Proceedings of Scientific Conference of ONA and Vietnam Union of Science and Technology Associations, dated 12/08/2012 Co-author 2015 Solutions to enhance the brand power in the Vietnam Commercial Banks Financial and Monetary Market Review, No. 3+4 (420+421) dated February/2015, ISSN 1859-2805 Co-author 1 FOREWORD 1. URGENCY In the economy, the banking sector fully knows that the challenge of integration process is very large and increasingly complex, especially in the accession process of international economic integration will help the banking sector to take opportunities for growth, thereby enhancing the position and competitiveness of the banking system and the Vietnam enterprises on international market. Therefore, the duty and role of the banking sector in the overall economic development as a basis for becoming a high-tech center of Vietnam during international integration process in the future will be essential. Specifically, 2015 is in an important year for Vietnam, needs to have much more vigorous efforts in international economic integration for Vietnam to join the TPP as expected. Thus, the banking sector needs to focus on using its further efforts to complete the plans and objectives of monetary policy well, and actively and effectively implement the reform proposals and banking system innovations in Vietnam, and continue to perfect and execute powerfully the development and international integration strategies of the banking sector in the future. In conditions of fierce competition among commercial banks at present, it is necessary for commercial banks to constantly improve operational efficiency and increase brand value in the international economic integration process. The brand development of commercial banks is not only a requirement for commercial banks in Vietnam in general but also the Joint Stock Commercial Bank for Foreign Trade of Vietnam System in particular, and it is not only a matter to banking leaders, state authorities but also researchers who are interested in. With the problems posed, student has chosen the topic “Brand Development of Joint Stock Commercial Bank for Foreign Trade of Vietnam System – Vietcombank” for his thesis. Research contents will be focused on assessing the real situation of Vietcombank brand development and then recommend the system of solutions for brand development of Joint Stock Commercial Bank for Foreign Trade of Vietnam System. 2. RESEARCH GOALS - Research goals: On the basis of brand development principles and brand development reality of Vietcombank system, recommending some solutions for brand development of Joint Stock Commercial Bank for Foreign Trade of Vietnam System– Vietcombank. - From such research goals, the research tasks include:  Overview and systematization of simple theoretical basis of brand, service, bank brand, bank brand development and brand development of banking system for commercial banks.  Research of branding experience of some domestic and international banks. Thence, drawing experiences for Vietcombank.  Analysis of real operations of brand development of Vietcombank system in recent years showing the limitations to be overcome in this bank.  Recommendations of some solutions to suit the new context for brand development of Vietcombank system. 3. RESEARCH QUESTIONNAIRE By considering the goals and objectives of this research, the following questionnaire has been set up to achieve the objectives and goals of the research: - Question 1: What is the conception of brand or brand development? What are evaluation criteria of brand? - Question 2: For the banking sector, what is the conception and definition of brand? What is the feature of the banking brand? - Question 3: What are experiences in brand development of the domestic and foreign banks? - Question 4: What is the difference between corporate branding and banking branding? Which factor will decide the bank brand development? - Question 5: In the context of the banking sector in Vietnam, what is actual situation of brand development in the banking sector at present? And what about Vietcombank? - Question 6: What are solutions for brand development of Vietcombank system in period 2015-2020? 4. OBJECTS AND SCOPE OF RESEARCH - Research object: Brand development of Joint Stock Commercial Bank for Foreign Trade of Vietnam System. - Research scope:  For space: Overview of researching situation on brand theory and brand development for commercial banks in Vietnam and around the world; the basic theoretical issues of bank branding and brand development of commercial banks in the trend of international integration; the basic issues of branding and brand development at Joint Stock Commercial Bank for Foreign Trade of Vietnam.  For time: The thesis focuses on researching brand development situation at the Joint Stock Commercial Bank for Foreign Trade of Vietnam in the period from 2010 to 2014; and sets out the brand development 2 orientation and solution for Joint Stock Commercial Bank for Foreign Trade of Vietnam for the period 2015 – 2020. 4. RESEARCH METHOD Measurement of branding results is done with the aim of gathering information to measure the perceived value of the Joint Stock Commercial Bank for Foreign Trade of Vietnam’s brand. However, the purpose of the research is to explain the role and development of the Joint Stock Commercial Bank for Foreign Trade of Vietnam system. Moreover, the purpose of the research is also to resolve the inspection and determination of relationships between the variables studies and measuring efficiency of Vietcombank’s brand value. Research approach refers to the way used to answer the questionnaire. Four types of research methods have been developed, including: - Qualitative research methods. - Quantitative research methods. - Comparison, analysis, synthesis, interpretation and inductive methods. - Interview and investigation methods. These research methods used in this research will help the generalization of results on objects selected for survey and investigation. Moreover, the quantitative tools are used to collect and analyze data to identify and clarify the effectiveness of brand value measurement of Vietcombank. The research has selected objects to be surveyed, including individual customers using banking services and other ones are organizations/companies with relationship to Vietcombank. In this research, the number of individual customers and companies nationwide surveyed directly was 456 individual customers and 152 corporate customers. 5. THESIS STRUCTURE Besides the foreword, conclusion and list of references, the main contents are structured into four chapters as below: Chapter 1: Overview of studies Chapter 2: Some theoretical issues of brand and brand development of commercial banks Chapter 3: Brand Development Reality of Vietcombank system Chapter 4: Brand development orientation and solution of Vietcombank system CHAPTER 1 OVERVIEW OF STUDIES 1.1. THE SITUATION OF DOMESTIC STUDIES Currently, there were a lot domestic and international scientific research projects, books and magazines mentioning the contents related to brand theory. Some studies of science and domestic policies, students have referred the conception of brand as follows: Scientific studies in 2010 - Le Thi Kim Tuyen – “Building a sustainable brand for Vietnam Joint-Stock Commercial Bank for Industry and Trade – Vietinbank” has been successful when systematizing the basic issues of brand, leading problems logically from corporate brands to Commercial Bank ones. Le Thi Kim Tuyen has gone toward a new direction: building a sustainable brand for Vietinbank. She has systematized the brand theories as well as the evaluation criteria of the same. Scientific study, Assoc. Prof. Dr. Nguyen Quoc Thinh & Master Le Thi Thuan, a scientific research of sectored levels: “A number of major solutions to build and protect brands for Vietnam goods exported in the context of international economic integration”; and Can Anh Tuan, in his doctoral dissertation: “Developing a powerful brand for Vietnamese enterprises” where has discussed on the conception of brand is sign to distinguish goods and services among enterprises’ ones, is image of the goods and services of each enterprise, and is the corporate image in the minds of consumers. In the opinion of Assoc. Prof. Dr. Nguyen Quoc Thinh & Master Le Thi Thuan in their scientific research of ministry level (2003), there will be no any particular and sustainable pattern for the building and development of goods brand. Can Anh Tuan has been succeeded in systematizing the theoretical base of issues related to brand and powerful brand building of Vietnam enterprises. He has systematized and interpreted more clearly some theoretical issues of powerful brand building for enterprises; delimiting and clarifying the conception and connotation of the brand, brand valuation method, thereby making the conceptions of powerful brand, powerful branding order, evaluation criteria system and factors affecting the powerful brand building. Scientific studies “Building and development of brand for Vietnam Bank for Agriculture and Rural Development” by Dr. Tran Ngoc Son (2009), has succeeded in developing solution system for the Bank for Agriculture and Rural Development, including five solutions: 3 With view of brand accession by Doan Cong Khanh in scientific research of ministry level (Ministry of Commerce, 2005), the term of brand is understood: “Brand is a man, has quality, personality, empathy, name, logo, appearance and color, etc. Mentioning brand is to refer goods labels has come to life, was saved in the memory of consumers. Thus, in fact, brand is the specific expression of the t goods label in commercial life, is something sticking to operations of an enterprise”. Dr. Tran Thi Ly, in his doctoral dissertation: “Building and development of Hoa Loc mango brand, Cai Be, Tien Giang”, have the same view of the approach to brand as the same of Doan Cong Khanh. She has presented the theoretical basis of brand from the role, function and component, core value in production and operation activities of enterprises in the economy opening worldwide economic integration. With her research in a doctoral thesis on “Building and development of Hoa Loc mango brand, Cai Be, Tien Giang”, she has found that brand development is to resolve all beneficial relationship. As the results of linear regression model, she has showed that the building and development of Hoa Loc mango brand last time was successful and built its reputation to consumers. Regarding to the brand development, Nguyen Thi Quy (2005), has evaluated that the brand development of commercial banks in Vietnam is still poor and mainly limited by competitive capacity. Theme “Branding for Trong Tin Garment Company Limited by increasing online touch points to brand”, Nguyen Thi Diep Anh, Department of Electronics and Commerce, University of Commerce (2011). This has mentioned the main contents is to propose some measures to develop the brand for Trong Tin Garment Company Limited by increasing brand touch points, however, it is not focused on perfecting the brand touch points. 1.2. THE SITUATION OF FOREIGN STUDIES Regarding to issues of brand development, now there are more works with different viewpoints. Currently, according to the research and understanding of Student, there are some researches on frontal brand development for the banking system in Vietnam and only a few topics mentioning these problems such as: According to research by Joe Marconi (1999), how to create a value-added brand in the global competitive market at present, it is to create an appropriate and effective strategy covering advertising, marketing, public relation and investigation. He has compiled and given to the reader how to build a successful brand strategy and build loyalty to the brand. In Designing Brand Identity Book: An Essential Guide for the Whole Branding Team, given the main contents of design and development by designing application, introduced five stages and methodologies for the creation and implementation of effective brand identity. In The Brand Gap Book: How to Bridge the Distance Between Business Strategy and Design, considered the book offered the unified theory of branding. In Logo Design Love Book: A Guide to Creating Iconic Brand Identities, provided a guide for designers (and customers), those who want to understand the mystery behind the logos of a company, access to the brand identity system as an important touch point contributing to feelings to customers. In Building Better Brands Book: A Comprehensive Guide to Brand Strategy and Identity Development, seem to be an essential guide to create and develop brand towards building brand identity. The problems of touch points and brand dialogue emphasized are conditions required for the service brand. In Brand Meaning book, Mark Batey, offered a holistic perspective and general view of how consumers search and how to create a meaning of brand. It explored the underlying conscious and unconscious factors connecting people with products and brands. The conception of traditional marketing and a meaningful framework of new brand were introduced. In How to Launch a Brand Book, Finien Consultancy, given a comprehensive guide to launch a brand: from the name to differentiate, how to design based on over a decade of professional experience transforming a new company of products and services from the idea stage to tangible brand reality. 1.3. COMMON POINTS AND GAPS OF STUDIES In addition to the results of previous studies has been achieved, there were still some gaps of previous authors have not studied, clarified and the thesis will conduct further research and clarify some gaps as follow: Firstly, theoretical basis of the banking brand is still limited and needs to continue to improve the contents of banking brand. It should continue to improve the theoretical basis of banking brand associated with competition in current business environment theoretically and particularly. Secondly, access theoretically and particularly the brand development of banking system and specifically set on banking services. Building sequences and contents of developing a brand for a particular bank in Vietnam and Joint Stock Commercial Bank for Foreign Trade of Vietnam. Thirdly, expanding to research on the development of “brand touch points”, which are factors that can realize the worst points and best ones. On that basis, approaches and solutions to enhance brand value is mostly effective. Fourthly, expanding to research and propose link between “internal brand” and “corporate culture”. 4 Researching the relationship of “corporate culture” to develop the internal and external brand of commercial bank. Fifthly, building a solution system based on the development orientation of Joint Stock Commercial Bank for Foreign Trade of Vietnam and mutual development of the banking sector in particular. Researching the model “brand center” at Joint Stock Commercial Bank for Foreign Trade of Vietnam. Thesis has approached and clarified the above-mentioned gaps in the research and use of assessment tools of inside and outside environmental factors to assess the reality of the brand value of Joint Stock Commercial Bank for Foreign Trade of Vietnam compared to the competitors on the target market and found out its basic advantages. CHAPTER 2 SOME THEORETICAL ISSUES OF BRAND AND BRAND DEVELOPMENT OF COMMERCIAL BANKS 2.1. OVERVIEW OF BANK BRANDS 2.1.1. Operational Features of Commercial Banks 2.1.1.1. Bank and bank forms 2.1.1.1.1. State Commercial Bank By law on credit organizations, the banks is considered the type of commercial bank when it is established with 100% state-capital and commercial banks now have 51% of dominant shares defined as the state commercial banks. 2.1.1.1.2. Joint-stock commercial bank: a bank is established as a joint stock company. Individuals or organizations will hold a certain number of shares of the bank and cannot hold the executive management. 2.1.1.1.3. Joint venture bank: is a form of capital contribution between foreign bank established in Vietnam and commercial banks in Vietnam 2.1.1.1.4. Foreign Bank Branch: a form of foreign bank is allowed to be opened and established in Vietnam. Such as: Citibank; Bangkok Bank; Deutsche Bank; 2.1.1.1.5. Commercial banks with 100% foreign capital: This is a form of bank established as a limited liability company with one member or two or more members and is established in Vietnam with 100% charter capital owned 50% of charter capital. Table 1: The number of credit organizations in Vietnam in period 2010 - 2015 Year 2011 2012 2013 2014 5/2015 Number 126 124 123 123 123 State commercial bank 5 5 5 5 5 Joint stock commercial bank 37 34 33 33 33 Joint venture bank 4 4 4 4 4 Foreign bank 48 48 48 50 50 Finance companies, finance leasing 29 30 29 29 29 Cooperative Bank 1 1 1 1 1 Policy Bank 1 1 1 1 1 Development Bank 1 1 1 1 1 Source: National Financial Supervisory Commission 2.1.1.2. Operational Features of Commercial Banks With the understanding of the commercia