notes to the consolidated financial statements - Sacombank

STRATEGIC ORIENTATION FOR 2011-2020 PERIOD
STRENGTHENING INTERNAL RESOURCES –
DEVELOPING SUSTAINABLY
2011 was a transitional year for the launch of the
Sacombank Development Strategies for the period
of 2011-2015, with a vision up to 2020 approved by
the 2012 General Meeting of Shareholders, with the
vision of becoming the “Top Retail Bank in the Region.”
Having experienced financial crises in the region (1997)
and the world (2008-2010), Sacombank has a thorough
understanding of the many challenges that the finance
and banking sector may face as the economy changes.
Accordingly, in its development strategies for each period,
Sacombank always sets out appropriate Objectives and
Solutions and a Roadmap, which are in line with the
development orientation of the Government and the
banking sector, and prepares back-up plans in response to
changes in the business environment. The focal point of the
development strategies for the new period of 2011-2020 is:
“Strengthening internal forces for developing sustainably.”
2011-2012 period: Stabilising and strengthening to
create a firm foundation
Vietnam is becoming ever more integrated into the world
economy and will be influenced by the general changes
in the global economy. The Vietnamese Government has
been introducing market-oriented economic reforms,
gradually eliminating protection for industries, especially
in the finance and banking sector, in order for the economy
to genuinely operate according to market rules. This will
create significant challenges for Vietnamese commercial
banks that find themselves in competition with large
global financial institutions that enter the domestic
market. To Sacombank, such challenges are regarded as
opportunities for development: competition will create the
motivation for Sacombank in particular and commercial
banks in general to constantly improve their business
model and management framework, improve service
quality and employee productivity, and remain constantly
innovative and creative to satisfy the needs of customers,
hence contributing to the development of the financial
and monetary market of the country.
According to many domestic and foreign experts,
Sacombank is among the few banks that have shown
strong and impressive growth in line with the development
trends of the country in the era of economic integration.
In the late 20th century, the name Saigon Thuong Tin
or Sacombank was virtually unknown in the financial
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ANNUAL REPORT 2011
market of Vietnam. However, only just over a decade later,
Sacombank has become the Bank of the Indochina Region
with a network covering almost two thirds of the country,
from Ca Mau to the Northeastern mountainous region,
along with its entry into the financial markets of Laos
and Cambodia over three years ago. The story is not only
about Sacombank’s large network, with 408 Transaction
Offices today, but also its impressive growth, showing the
financial strength of a dynamic, private bank which is brave
in thought and actions: its initial charter capital of VND3
billion has grown to VND10,740 billion today. All of this
shows that, for the past 20 years, Sacombank has chosen
the right development direction for itself and has a good,
up-to-date vision.
Those enterprises which have good business strategies
and long-term vision and are able to set their position and
business plans in line with the circumstances of the macroeconomy,
after the stages of incorporation, emergence
and strong development, will be able to overcome
saturation and depression to approach a strengthening
(maintaining stability) and sustainable development
period. Sacombank’s past and present experience shows
that 2011-2012 will be a “strengthening” period for the Bank
with proactive adjustment of business expansion plans,
focusing on maintaining all stable activities and/or proper
growth in accordance with the growth rate of the banking
industry and in harmony with the benefits of shareholders
and customers and ensuring the livelihoods and jobs of the
nearly 10,000 employees of the Bank. The Bank will then
launch business strategies that have proved to be strong in
order to maintain its position as the Top Commercial Bank
in Vietnam, or even the Top Commercial Bank in the Region.
2011-2020 period: Prioritising Strategic Solutions in
line with market moves
(i) Human resources development strategies:
Sacombank currently has almost 10,000 employees based
in 47 provinces and cities across Vietnam as well as in
Laos and Cambodia. Sacombank always considers human
resources development to be one of the core values and
the human resources as the most precious resources of
the Bank. Therefore, the human resources strategies of
the Bank for the 2011-2020 period were developed with a
view to strengthening the quality of the existing workforce
and attracting potential talent with professional and
selective recruitment policies, fundamental training based