Contents

Contents..................................................................................................................... 1 Task 1......................................................................................................................... 3 Brief News about VPBank:........................................................................................3 The extent to VPBank meets the objectives of different stakeholders:......................4 The responsibilities of VPBank and strategies employed to meet them:...................5 Task 2......................................................................................................................... 6 How economic systems attempt to allocate resources effectively:...........................7 The impact of fiscal and monetary policy on VPBank and their activities:.................8 Evaluate the impact of competition policy and other regulatory mechanism on the activities of a selected organization:......................................................................13 Conclusion................................................................................................................. 15 Reference.................................................................................................................. 16

Vietnam Prosperity Joint - Stock Commercial Bank (formerly the Joint Stock Commercial Bankowned enterprises in addition to Vietnam (VPBANK) was established under license 0042/NH-GP activities of the Governor of the State Bank of Vietnam issued August 12, 1993 with 99 years of operation time. initial capital start-up is 20 billion. After that, to develop, over time VP has repeatedly increased its charter capital. Charter capital of the VP is now 4,434 billion. VPBank shareholder's strategy is OCBC Oversea-Chinese Banking Corporation at the rate of holding: 14.88%. Nowadays, the VP has a total of over 160 branches and transaction offices nationwide, 550 agents for the payment of remittance centers VP - Western Union VP has two affiliated companies are: -Asset Management Company VP (VP AMC) -VP Securities Co., Ltd. (VPBS)

Task 1
Brief News about VPBank:
To suppose Vision is become Retail Bank in first choice of Vietnamese customer, VPBank gives mission, value and objectives which are as follows:

Mission: VP works with the motto: the customer's interests are paramount; workers' interests are concerned; shareholder interests are focused; contribute effectively to the development of the community. - For the Client: VP Bank is committed to satisfying the maximum benefit of customers on the basis of providing customers with products, services richness, diversity, sync, utilities, taking into account the cost of edge competition. - For employees: VP interested in the material life and spiritual life of workers. VPBank ensure a stable income and high competition in the labor market, financial and banking sectors. Ensure the employee is regularly improve care professional to ensure the development of both political rights and cultural. - For shareholders: VP of interest and improve shareholder value and maintain high-level annual dividend. - For the community: VP Bank is committed to good financial obligations to the state budget; Always interested to take care of social work and charity to share the difficulties of the community.

Value: Customer : customer is fundamental pillars of the company and consulting services, so customers always considered VPB is the focal point for all activities and decisions of the Company; The people: a precious asset of the company, if no source of top quality human resources is it will not be the leading company. By the end of 06.30.2011, the total number of staff and VP system is more than 3,000 employees; over 92% of those under age 40, about 80% of employees have university degrees and post graduate education. In recent years VPBank is always interested in improving the quality of human resource management. VP regularly organizes training courses at home and abroad to improve the professionalism of staff.
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Challenger Spirit: promoting professional ethics, building a business environment of sustainable development; Integrity: always behave in an honest, straightforward

Objective: VP Bank continues to expand the network, service development, step by step "transformation" to become the leading retail bank in Vietnam and the top five commercial joint stock banks in Vietnam in 2014.

The extent to VPBank meets the objectives of different stakeholders:

Internal Stakeholder: Manager and Employees Manager: the managers of VPBank are good managers. Evidentially, there is more and more brunch of VPBank which is opened in over country. Moreover, thanks to control of Chairman of the Board Ngo Chi Dung and the staff of VPBank, VPBank is received award for business for social in the second time and award power ratio standard STP (Straight - Through - Processing), by Citibank - one of the leading U.S. banks offer.
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-Employee: Recognizing the quality of staff is the strength of the bank. Therefore, recent years have always paid attention VPBank improve the quality of human resource management. VP regularly organizes training courses at home and abroad to improve the professionalism of staff. On 10/9/1993, the VP was officially opened for trading at 18B Le Thanh Tong, the number of employees is only 18 people. Along with the development and expansion activities, the number of personnel of the VP also increased correspondingly. By the end of 06.30.2011, the total number of staff and VP system is more than 3,000 employees; over 92% of those under age 40, about 80% of employees have university degrees and post graduate education.

External stakeholder:

- The State Bank of Vietnam: building regulations for banks operating in the country making

timely decisions to the bank to work effectively, avoid many financial risks in the outlook on the economy. With VPBank, the state bank of Vietnam gives the policies in order to help VPBank attracts small and medium enterprises which want to borrow capital from bank.
- Other Bank: create a competitive market to customers have more choices. Moreover,

VPBank can get support from other banks if they encounter financial difficulties.
- Government: Through The State Bank of Vietnam, Government gives policies and law to

orients the activities of domestic bank. VPBank has to respect these policies.

The responsibilities of VPBank and strategies employed to meet them:

Social responsibilities: The social responsibility of an organization may be defined as the obligations that the organization has towards the people and the environment in which the company operate. To that end, managements social responsibility is concerned with the way in which the enterprise interacts with the environment. (Course book) VPBank fulfill their social responsibility by creating wealth efficiently through the provision of financial intermediation services. They are expected to meet community expectations of moral probity and good corporate citizenship. Especially, with the poor, VPBank follow the example of the public utilities and negotiate community service obligations for the provision of basic services at public expense. Environment responsibility: VPBank is a company where carries out the transactions related to money and gold. Therefore, the bank does not have factories to manufacture the product and does not have much dispose toxic waste into the environment. However, bank also disposes carbon dioxide from banks facilities. Hence, VPBank installed of photovoltaic solar systems and management of business trips. Concurrently, they developed an evaluating environmental impacts system and use goods that are environmentally friendly such as: recycle and chlorine- free paper, non- toxic cleaning products. Besides, VPBank encourages businesses and private individuals to invest in renewable source of energy. Ethics and business:

VPBank is always aware of ethics in organization on all three levels, at the macro level, at the coporate level and at the individual level. They always pay attention to how you communicate with all partners and customers. They always obey the law to avoid harming others and face the implications and Risks. Management responsibility: Management of VPBank is responsible for employees, customers, suppliers, competitors and community through salary policy, recruitment policy and retirement policy. Public relation and corporate image: Any bank has a few bank branches. Therefore, VP is not only focused on the quality of their banking at the bank branch, but also pays attention to their image. Bank branch has to work effectively to support the head office of VP. Such new VP has attracted many businesses, investors and customers. Strategies employed to meet objectives of stakeholders: VP Bank has always tried its best to meet and satisfy our customers and partners. By improving performance, making the right policies in the development of banking, to embrace the market, VP Bank has gradually become the leading retail bank of Vietnam.

Task 2

How economic systems attempt to allocate resources effectively:

Economic system: Vietnam is a poor, densely populated country, whose economy is based on agricultureprimarily wet rice cultivation. After two wars against the U.S. and France, Vietnam country has suffered many losses in both human and infrastructure equipment. Economic situation of our country is extremely difficult. Step by step, the party and people have come together to recover the country. From a country inherited an economy from the FRANAIS That Was poor, underdeveloped with a weak infrastructure, woefully exploited, and geared to serving the colonial regime in the years 1945s. Following reunification under North Vietnam in 1976, Hanoi decided to socialize the southern economy rapidly: private enterprise was abolished; land was collectivized; and wholesale, retail, and foreign trade were nationalized. in particular, Vietnam joined the Soviet-led trade block, the Council for Mutual Economic Assistance (CMEA), in 1978 and received Approximately $ 1 billion in aid annually During the Soviet Economic 1980s. From the 2000s, the Vietnamese economy has had many changes follow the regional economy and the world economy. In October 2000 Vietnam signed a bilateral trade agreement with the United States greatly liberalizes the Vietnamese trade regime, ends state subsidies, and paves the way for Hanoi's entry into the World Trade Organization. Nowadays, an economic system is one that a society attempts to meet peoples material needs and wants through the production of goods and services. Labor, land, natural resources and capital are the elements that have huge influent on the limited supply. If the scarcity of supply occurs, Government must decide the allocation of these limited resources among competing claim. By giving opportunity costs and the decision of producing a certain products and services, Government can fix this situation. Type of economics: Each country applies a model of different economic systems. In a free market economy, Most Decisions are taken through the operation of the market mechanism. Supply and demand and the ability to pay Decision-making influence. Maximize profit is seek highly by firms. Customer seeks the greatest benefit for least cost. The "Price Mechanism" decides in the free market prices. Prices Rises if there are shortages of a good or service (supply) and fall if there is a Surplus. But price will always Tend Toward the "equilibrium price" where the amount Customers wish to buy equals the amount Producers wish to supply. Besides, in command economy, resource allocation decisions are generally made by a central committee, which determines both the target level and composition of output in accordance with a medium- term plan, usually expressed on a five year timescale. To meet the requirements of the plan, detailed decisions have to be made concerning the resource requirements of each industrial sector. This, however, has some failings is lack of investment then does not have competition, no incentive to productivity and wastage of resources. The last one is missed economy. It combines elements of both private enterprises, where individuals have the freedom to set
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up in business in their own right and personally reap the rewards of their enterprise and intervention, in varying guises, by the state. Mixed economies are intended to combine the best of both command and market systems and to avoid the worst. Effective use of resources: The extent to which the mix economies, for effective allocation of resources, between the government intervention and private enterprises varies from countries to countries. Government interventions are usually in the form provision or prohibition, subsidies or tax and regulation.
- Labor resources allocation: Vietnam is a populous country Vietnam is a populous country.

So labor resources for production are plentiful. In the past, labor agriculture is large. However, over time, the number was down and switch to another task. This proved that Vietnam is changing and services to industrial nation. However, the number of transfer services to industrial and nation is not much. Area of rice caused by our country so much great work force unwilling to give up their traditional work. That poses major challenges for countries in transition from country to country agriculture and service industries.
- Land and natural resources allocation: Vietnam is really a rich country about natural

resources with millions ha of forest, many rivers and lakes. Especially, rivers are the main sources to provide water for consuming. It was estimated that about 80 million meter cube of water is used every year and most of them is being used for agriculture. In the period that Vietnam is developing day by day, and agriculture sector becomes less important gradually, using so much water for agriculture is unreasonable. Especially, natural resources in Vietnam are plentiful such as mineral, gold, coal and so on. Vietnam has not yet fully exploit the resources of their country is due to lack of facilities, technology and excellent staff. Vietnam government should build strategy to make effective use of natural resources.
- The allocation of capital: Foreign direct investments (FDI) and Official development aids

(ODA) are two valuable external forcing sources for Vietnams economy. After Renovation and becoming a member of WTO in 2007, Vietnam has attracted many FDI. However, how to use this source effectively is really a difficult problem.

The impact of fiscal and monetary policy on VPBank and their activities:
Government micro-economic policy and global economy influence organizations in many ways. Invariably, stakeholders are also affected due to the impacts that are created on the organizations by those policies. VPBank uses various policies including fiscal and monetary policy to try to achieve its aim.
- Fiscal policy: fiscal policy provides such items as taxation, other sources of income,

spending, borrowing and repaying and others for the purposes including stimulating
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economic growth, addressing inflation, reducing unemployment rate and other achieving non-economic objectives. The financial crisis in 2001 and a worldwide credit crunch in 2009 triggered a global recession in 2009. All information and index decreased dramatically.

Governments implemented numerous measures to restore growth and regain market confidence. Governments policy reactions have focused on fixing the banking system to help reestablish the flow of credit to the economy and implementing fiscal and monetary stimulus packages to sustain aggregate demand and prevent a downward spiral of output. Thanks to this governments policy, VPBank still survived and developed. Evidence that VPBank achieved many awards in the banking sector not only in domestic but also international.
- Monetary policy: banking system and monetary policy must work together smoothly for

the economy to run well. Money makes it possible for people to exchange goods and services without having to rely on a system of bartering. VPBank provides a means for savers to lend their money to borrowers and earn interest in the process, and it gives borrowers a place to go for loans. The aim of monetary policy is to ensure that there is sufficient money in the economy to keep it growing, but not so much that the economy overheats. When the economy overheats, the result is inflation. Inflation too much money chasing too few goods creates an inefficient price system. It also distorts decision-making, reduces productivity and lowers the economy's long-term rate of growth. This results in lower living standards for everyone. The exchange rate policy of Vietnam government has impacted VPBank in its foreign earnings from its international operations. For example, S$X million loss and S$Y million gain in currency exchange rate were reported in quarter ending Mar 2009 and 2008 respectively due to the differences of exchange rates came about from government exchange rate policy. Again, this also impacted the shareholders in the form of share dividends.
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- Global economic: In these days, Global economy is experiencing the difficult period.

Global crisis in 2009, disasters in some countries like Japan, debt turmoil in Greece and other countries in the world. Global crisis in 2009 has affected the global economy so seriously. United States is the place where depression started and then spread out other countries. The World Bank estimated that up to three trillion dollars of public and private loans in developing countries must be repaid that year. In Asia, exports from China fell 26 per cent compared with 2008.
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As we can see in the chart above, 3 countries which are representative for Asia, Europe and America have export growth which fell down so rapidly in 2009. Debt turmoil is spreading very rapidly in these days. Greece is the first country in which debt crisis started. With the population of only 11 million, total debt of Greece is $485 billion, a huge amount of money. Financial crisis is one of the main reasons which let Greece be in this circumstance. Nevertheless, debt crisis spreads out other countries in the world. Europe and North America lead the world in the Debt to GDP ratio. In contrast, Eastern Asia, except Japan and Singapore, has avoided the ills of excessive public debt. The graphic below will show clearly about global debt crisis:

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Japan has incurred the terrible disaster in 2011, including both tsunami and earthquake. This affected the economy of Japan so seriously. The disaster has damaged an estimated 7.3 percent of Japans power supply, in which 3.8 per cent due to disrupted thermal generation and 3.5 percent from nuclear. Industrial production fell down 15.5 percent from February in this year. Retail sales were down 8.5 per cent from a year ago, while machinery and business equipment sales were down 17 per cent. GDP is estimated to have fallen 3.7 per cent. Compared with the disaster in Kobe (1995), the consequences of this disaster is much more serious.

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Impacts of the 1995 Kobe and 2011 Tohoku earthquakes Dimension of tragedy Site of tremor (Richter scale) Lives lost Missing people People left homeless Estimated property damage (% of GDP) Initial disruption to power system (% of generating capacity) Medium-term disruption to power system (% of generating capacity) Industrial production growth (month of disaster) Quarterly GDP growth (quarter of disaster) (Source: World Bank) Kobe 1995 7.3 6,434 300,000 2.5 Tohoku 2011 9.1 15,202 8,718 450,000 4.5 7.3 3.8 -15.3 -3.7

-0.1 2.9

All of the events above have big influence on Vietnam because many countries have close economic relationship with Vietnam, especially Japan, China, US and some countries in Europe. Certainly, the investment will decrease, and it will affect the FDI and ODA. Regarding to VPBank, VPBank's leaders have been trained to respond in any situation. Moreover, VPBank will always receive the support of government and the State bank of Vietnam. We note that the international economic integration occurs as popular and has led to a much bigger economic system in which business are more interdependent globally. VPBank can take experiences from other countries (especially is above countries) to have the best prepare to the development of VPBank.

Evaluate the impact of competition policy and other regulatory mechanism on the activities of a selected organization:
Currently, the fierce competition in the financial banking sector have created opportunities for the commercial banks of Vietnam to develop and assert itself, but it also creates great challenges that the banks up against. In terms of this circumstance, when the market shares of banks gradually occupied by other financial institutions, what should commercial banks of Vietnam do to maintain its position?

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A new direction that the commercial banks of Vietnam found and is in the first steps of implementation: It's retail banking strategy. Retail banking is banking primarily provides services directly to businesses, households and individuals, with the scale of small transactions, including savings deposits, ATM accounts, loans mortgage loans personal consumption. The market for retail banking in Vietnam is now the property market and profitability rather than another potential form. Retail banking strategy is towards the bank to a business more profitable. VPBank is aware of that thing so they have adjusted their operations to become the leading retail bank in Vietnam. However, with the actual conditions of the banks in Vietnam today and with funds available, abundant human resources but in terms of technology and infrastructure is weak, VPBank should gradually implement its strategy carefully. Firstly they makes consumer lending activities, and consider as a further step to the initial safety and efficiency in retail banking strategy. In addition, along with the development of market economy, products and services consumers are becoming increasingly rich, diverse, and suitable with the needs of the buyer. However, with current income levels, most consumers cannot pay for all shopping needs at the same time, especially for expensive items. If consumers can borrow money from banks, they can satisfy their needs in the current that increases consumer goods, boosting production and business activities of firms increase number and types of products, contributing to overall economic development of society quickly, creating more jobs for workers in society. Therefore, using this service, on one hand VPBanks can create harmony between supply and consumption; on the other hand can be solved tasks enable the consumer economy International. Undeniable those in recent years, the competitiveness of the market VPBank Vietnam has made remarkable progress. In comparison with other large commercial banks in Vietnam such as ACB, Vietcombank, then the service of the VP has built its competitive position. Services market expanded, the number of clients is constantly increasing, sales of products and services are growing and service charges are competing with other commercial banks. VP Bank has raised a lot of promotions with big incentives for investors and its customers. VP also spent a significant amount of money spent on this. VP Client to not only get quality enthusiastic service attentive staff with the best quality service, customers can receive attractive incentives such as gift for special days, card gym in central California fitness & Yoga center, incentives paid subscribers Mobifone spending, lower interest rates for business loans.

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Conclusion
In the current trend, the banking system in Vietnam, including commercial banks and investment banks have been trying to invest for growth. VP also, investment in both width and depth are the strategic direction of the VP. Through the development process of ups and downs, so far, VP has become a reputable bank, have relatively high growth rate, and is gradually asserted its position in Vietnam's banking system and banking system international customers. VP Operations of banks achieved many positive results; the scale continues to expand, increasing the quality of service high. With the goal of becoming a commercial bank leading retailers in Vietnam, VP Bank has continuously strived to improve themselves to move forward quickly and surely.

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Reference
1. Course book Business Environment Unit 1, 2, 3, 4, 5. 2. Everyday Economics http://dallasfed.org/educate/everyday/ev9.html 3. Fiscal policy http://en.wikipedia.org/wiki/Fiscal_policy 4. Job Responsibilities http://www.jobresponsibilities.org/bank-manager.html 5. Monetary policy http://en.wikipedia.org/wiki/Monetary_policy 6. VietnamEconomic System http://www.bookrags.com/research/vietnameconomic-system-ema-06/ 7. VPBank ngan hang Vietnam thinh vuong www.vnb.com.vn

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