"Financial group” is a target of many big banks in Vietnam. The Industrial and Commercial Bank of Vietnam has kick-started its campaign by changing its brand name from Incombank to Vietinbank on April 15th, 2008.
According to Mr Pham Huy Hung, President of Vietinbank Board of Executives, Vietinbank is aware of the importance of Vietnam’s joining the WTO and commitment to opening the finance-banking market by 2011 at the latest. Therefore, the bank has signed a contract with the US Richard Moore Company to build a standard and globally protected and registered trademark since 2007. When conducting international registration, the bank realised that the Incombank trademark had been registered and protected by a Russian bank in 29 countries. This is the main reason for the change into Vietinbank.
To quickly complete the target of becoming a powerful financial group, in addition to trademark change, VietinBank has drawn up a retail strategy with a series of carefully targeted steps, including launching new products and services on a modern technological foundation with a large and consumer-friendly distribution network. This strategy helps bring Vietinbank closer to customers and make it more practical. However, to perfect the retail model and gain an edge over other competitors, VietinBank has to simultaneously realise three targets of product development, distribution network expansion and banking technological modernisation.
After 20 years of operation, Vietinbank now has a trading system in 56 out of 64 provinces and cities with three exchanges, 138 branches and nearly 700 transaction offices and saving funds. VietinBank is also the owner or big shareholder of many companies such as Vietinbank Stock Company, Debt Management and Asset Exploitation Company, Financial Leasing Company, Indovina Bank Joint Venture and Sacombank. The bank has established agent relationship with 800 banks all over the world, being a member of Asian Bank Association, system of Visa and Master cards, and Global Telecommunication and Financial Association. At the end of 2007, Vietinbank possessed total assets of 175,000 billion, equivalent to 15 per cent of the sector’s value, with mobilised capital up by 18.4 per cent, and total investment and lending up by 22.6 per cent. The bank’s profit increased by 83.5 per cent compared to the planned value of VND1,450 billion. Particularly, its bad debts were lowered to 1.02 per cent (much lower than the 3 per cent regulation by the State Bank).
Vietinbank has continued to win awards offered by domestic and foreign organisations, such as 2004 Vietnam’s Gold Star Award for E-payment product, 2007 Vietnam’s Gold Star Award – top 100 Vietnamese Brand Names by the Vietnam Young Entrepreneur Association and the Vietnam Youth Union. It also won the Strong Brand Name Cup for four consecutive years from 2004. The bank received the “Outstanding Bank in International Market” award in 2003 and 2004 by the Citi Group, “Trademark Cup”, “For the Community Development Cup”, and “Star Business in 2007” by The World and Vietnam Review (Foreign Ministry) in cooperation with the Economist Magazine.
It is these successes that contribute to improving Vietinbank’s prestige and image. The brand name Vietinbank is becoming more and more familiar, friendly and practical.
Doan Phuong
Vietnamese
