I.

Introduction:
JSC Bank for Foreign Trade of Vietnam (Vietcombank) was found in 1963 and
officially operated on 02/06/2008. Its stock was officially listed on the Ho Chi Minh
Stock Exchange (HOSE) on 30/06/2009. After the past 50 or so years of operation, the
company has become one of the biggest commercial banks in Vietnam. Currently, there
are more than 15000 employees and over 500 branches/ transaction offices/
representative office/ affiliates not only in Vietnam but also abroad. Apart from it, its
Autobank system consists of more than 2300 ATMs and over 43000 merchants
nationwide. In addition, its operations receive the support of more 1726 correspondent
banks from 158 countries and territories around the world. More importantly, the
proficient and professional workers in banking and finance as well as decent sense of
contemporary and integrated business environment are the facilitator of making
Vietcombank the primary choice of large corporates, domestic and foreign organizations
and millions individual customers.
II. Basic competitive strategy of Vietcombank:
2.1 Cost leadership strategy:
Cost leadership strategy in the banking sector is mainly focused on the credit
business. By offering lower interest rates for customers as well as setting reasonable
deposit interest rates when raising capital, VCB consistently competes with other rivals.
Moreover, it allows businesses to open many types of accounts for free such as payment
deposit account, term deposit account and other deposit products and furnishes customers
with quick, safe and accurate account services at the lowest cost.
Equally important, its operation is supported by more than 1700 correspondent banks
all over the world and contracts with international fast money transfer organizations
(MoneyGram, UniTeller, TNMonex, Xoom, RIA and Money Polo, etc.) as well as auto
command swift processing, which makes the transactions become easier, faster and more
economical. Therefore, VCB maintained the top 4 position among banks receiving the
largest amount of remittances in 2017 (Thanh, 2018).
In 2002, the ATM system and Vietnam's first domestic debit card branded
Vietcombank Connect 24 were developed at VCB (VCB, 2008). With that pioneering,
VCB has signed many contracts to pay and receive salary through accounts with many
businesses as well as workers, which is timesaving and convenient.
2.2 Differentiation strategy:
As for differentiation strategy, VCB implement state-of-the-art technology in business
operations, manage risk and have security strategy. In 2015, VCB is the only bank in
Vietnam issuing both debit and credit cards with the top five card brands in the world
(Visa, Mastercard, American Express, JCB and UnionPay) and over 20 domestic and
international card products (Viet, 2015). Moreover, its electronic banking consists of
internet banking, mobile banking, sms banking, phone banking, VCB-Money, VCB-
eTour, VCB-eTopup at the present which is different and more diversified than that of
other banks. Due to boosting these retail banking services strongly, VCB was honored in
the “Typical Retail Bank” award in 2018 (Thanh, 2018).
2.3 Focus strategy:
When it comes to focus strategy, VCB concentrates on improving products and
services quality. VCB stays a notion that to be trusted by customers, the Vietcombank
must consistently prove the ability to tackle their work and be skillful. Therefore, VCB
always attaches their significance to raising awareness, capacity and skills to organize,
manage and implement science and technology activities. In order to obtain further
improvement in quality and effectiveness as well as customer experience, VCB is willing
to bring science and technology activities in its regular operations (VCB,2019).
III. Workforce requirements:
As aforementioned, it is obvious that technologies have a noticeable influence in
payments, and retail services, and other banking functions (Bank Governance Leadership
Network, 2018). Therefore, human-machine collaboration plays a significantly important
role in achieving higher productivity and competitive advantage. Having said that, new
roles will be recruited in the future.
3.1 When it comes to workforce requirements in term of employee competencies:
- High level of finance and industry knowledge of banking.
- It is necessary for banking professionals to familiarize with the regulations in
order to govern banking in Vietnam as well as new changes in the industry.
- Enhancing knowledge not only on banking but also other fields and all banking-
related aspects.
- Strong analytical thinking.
- The ability to learn and grasp new concepts with ease, high willingness to learn
new capabilities.
- Having decent proficiency when working independently and enduring high
pressures when working collaboratively.
- Being technologically savvy due to the technological revolution in investment and
retail banking.
- One of the most valuable human skills is to collaborate with artificial intelligence.
3.2 Several new roles will be needed in the future (Shook et al., 2018):
- Machine learning engineer.
- Deep learning scientist.
- Fraud Analyst.
- Alternative currency speculator.
- Lending tactician.
3.3 As for employee behavior:
- Respect the principles and standard behavior, compliance with laws and internal
regulations .
- Handle job professionally, politely and dedicatedly.
- Be ethics in business.
- Wholeheartedly devoting to work.
- Be fair and transparent; willing to help colleagues.
- Actively participate in community activities such as environmental protection and
community service.
- Always show respect, courtesy and sincerity; keep customers and partners
information in secure.
- No corruption.
IV. Specific HR policies and the activities necessary to produce these
workforce requirements:
4.1 Remuneration:
- Income is competitive in comparison to other joint stock commercial banks.
- Fixed income and bonuses are based on the annual performance of the whole bank
and the contribution of each department and individual.
- Guarantee the workers regimes in accordance with the law.
- The bank supports training costs as well as social benefits.
- Offering rewards program which have the rights to buy shares to the board of
directors’ members, officials and key employees.
4.2 Policies for employees:
The bank always attach their significance to its employees in order to achieve its
strategic objectives to 2020:
- Number one in retail banking and top two in wholesale banking.
- Having largest profits scale with high profitability.
- Attaining highest customer satisfaction.
- Ranking the first in terms of human resource quality.
- Become the best bank in terms of risk management.
- The bank with the highest transformation to a digital bank.

4.2.1 Salary and allowances:

Apart from the basic salary received in terms of the working title and position
which is calculated not only on the salary scale system but also the annual performance
of the business and each unit, VCB’s staff is also entitled to business salary, attractive
allowance including risk allowance, seniority allowance, toxic allowance, travel
allowance, mobile phone allowance, lunch allowance, working-trip allowances, and other
allowances in accordance with the provisions of the Labor law.
4.2.2 Bonus regime to promote innovation, scientific research and technological
innovation:
VCB always appreciate any promotion of initiatives, actions to save materials and
costs, ideas in innovation of work processes and technological innovation, scientific
research, etc. as well as furnishes its employees with great bonus regime.
4.2.3 Leave of absence and holiday regime:
Number of days allowances: 14 days/ year
Holidays and New Year holidays are according to the provisions of the Labor Code.
4.2.4 Training support regime:
The bank considers the training and development of staff as one of the basic
objectives of human resources management. Therefore, the bank regularly organizes
training courses of the State Bank, Banking Association and other prestigious education
institutions for its employees.
If employees wish to attend any other banking-related courses, VCB could provide
partial or full support such as travel expenses, tuition fees, etc.
4.2.5 Promotion opportunities:
 VCB always facilitates all progressive employees. Employees have the
opportunity to express and promote their own capabilities.
V. Suggestions for metrics to measure the success of the HR strategy:
There are several metrics to evaluate how successful the HR strategy is:
- Staff turnover: if the HR strategy is effective and successful, the number of
employees leaving the company should be low and the turnover is healthy.
- Staff engagement survey: doing proper survey regarding staff engagement sets out
the level of HR strategy effectiveness.
- Revenue per employee: total annual revenue of the company is divided by the
number of employees. If the ratio is higher than that in the past, the HR strategy
could be considered as successful straetegy.
VI. References:
Vietcombank annual report 2017
Ngân hàng thương mại cổ phần Ngoại thương Việt Nam - Vietcombank. (2019).
Retrieved from
https://www.vietcombank.com.vn/News/Vcb_News.aspx?ID=8274
Thanh, T. (2018). Vietcombank được trao giải ngân hàng bán lẻ tiêu biểu – VnExpress
Kinh Doanh. Retrieved from https://vnexpress.net/kinh-doanh/vietcombank-duoc
trao-giai-ngan-hang-ban-le-tieu-bieu-3847006.html
Chiến lược kinh doanh của Vietcombank - Luận văn, đồ án, đề tài tốt nghiệp. (2013).
Retrieved from http://www.luanvan.co/luan-van/chien-luoc-kinh-doanh-cua
vietcombank-19381/
Thanh, T. (2018). Vietcombank thu hút kiều hối cuối năm - VnExpress Kinh Doanh.
Retrieved from https://vnexpress.net/kinh-doanh/vietcombank-thu-hut-kieu-hoi
cuoi-nam-3819907.html
VCB. (2008). Vietcombank khẳng định thương hiệu ngân hàng bán lẻ - VnExpress Kinh
Doanh. Retrieved from https://vnexpress.net/kinh-doanh/vietcombank-khang
dinh-thuong-hieu-ngan-hang-ban-le-2691938.html
Viet, P. (2015). Vietcombank hướng tới vị trí số 1 về ngân hàng bán lẻ - Báo Nhân Dân
điện tử. Retrieved from http://www.nhandan.com.vn/kinhte/item/28276102
vietcombank-huong-toi-vi-tri-so-1-ve-ngan-hang-ban-le.html
Bank Governance Leadership Network. (2018). The future of talent in banking:
workforce evolution in the digital era. Retrieved from
https://www.ey.com/Publication/vwLUAssets/ey-the-future-of-talent-in
banking/$FILE/ey-the-future-of-talent-in-banking.pdf
Shook, E., Knickrehm, M., Mcintyre, A., Woolf, A., Browne, Y., & Lavelle, K. (2018).
FUTURE WORKFORCE SURVEY - BANKING REALIZING THE FULL
VALUE OF AI. Retrieved from
https://www.accenture.com/t20180502T023813Z__w__/us-en/_acnmedia/PDF
77/Accenture-Workforce-Banking-Survey-Report.pdf