GRIGGS UNIVERSITY GLOBAL — HANOEL ADVANCED MASTER ADMINISTRATION CAPSTONE DEVELOPING FINANCING THE UNIVERSITY OF BUSINESS PROGRAM PROJECT REPORT MANAGEMENT ACTIVITIES THE VIETNAM NATIONAL FOR WATER DEVELOPMENT STRATEGIES SUPPLY SECTOR AT BANK (VDB) TO 2015 AND VISION TO 2020 Members of Group - M0310 Ngo Truong Giang Vu Pham Thao Ly Le Duc Dung Nguyen Minh Phuong HANOI FOR 2012 CG Global Advanced f Master of Business Administration Ha CONFIRMATION OF ENTERPRISE Hanoi, 28" August, 2012 Attention: Relevant Parties Content: Group - Comments of the Vietnam GaMBA.M0310 - The Development Global Bank Advanced on the topic of Master of Business Administration Program, University of Griggs, United States Students operation and have closely management stuck activities to the current for water situation supply in all aspects programs at of Vietnam Development Bank to the capstone project; The topic content: "Developing the supply programs at the Vietnam Development management strategies for water Bank (VDB) to 2015 and vision to 2020” refers to objectives relating to operation and management of loan scheme for water sector that VDB is making great effort to achieve, and is highly feasible; Aw Presentation and content of the topic are scientific Nguyen Thi Thuy Lan Director of Department VIETNAM DEVELOPMENT BANK Address: 25A Cat Linh — Dong Da Distric - Hanoi - Vietnam Tel: +84 37368000: Facimile: +84 37368001 Email: nhptvn(@gmail.com: Capstone Project - Website: www.vdb.gov.vn Group - M.0310 ii Global Advanced Master of Business Administration CONFIRMATION OF ENTERPRISE Hanoi, 28" August, 2012 Attention: Relevant Parties Conteat: Group 3) - Comments of the Vietnam GaMBA.M0310 - The Development Global Bank Advanced on the topic of Master of Business Administration Program, University of Griggs United States Students operation and have closely management stuck to the current activities for water situation supply in all aspects of programs at Vietnam Development Bank to the capstone project: The topic content: "Developing the management activities in the water supply sector at the Vietnam strategies for finacing Development Bank (VDB) to 2015 and vision to 2020” refers to objectives relating to operation and management of loan scheme for water sector that VDB is making great effort to achieve, and is highly feasible: Presentation and content of the topic are scientific Nguyen Thi Thuy Lan Director of Foreign Capital Management Department VIETNAM DEVELOPMENT BANK Address: 25A Cat Linh — Dong Da Distric - Hanoi - Vietnam Pel: + 84 37368000: Facimile: +84 37368001 Email: nhptvn'@ gmail.com: Capstone Project Website: www.vdb.gov.vn - Group - M.0310 il Global Advanced Master of Business Administration I Prograr DECLARATION We members of Group commit that content of this assignment has not been submitted to any Master courses as well as any degree-awarded training programs We also commit that this assignment is the effort of our group Results of the analysis and conclusions in this assignment(except quoted parts) are the brain child of our group and not copied from any other documents The members of Group sign hereunder: Ngo Truong Giang (Team leader) Nguyen Minh Phuong Vu Pham Thi Thao Ly Le Duc Dzung Capstone Project - Group - M.0310 iii G Global Advanced Master of Business Administration Prograrr TABLE OF CONTENTS Page “DEVELOPING MANAGEMENT STRATEGIES FOR WATER SUPPLY PROGRAMS IN VIETNAM DEVELOPMENT BANK TO 2015 AND VISION TO 2020” COVER PAGE CONFIRMATION i OF ENTERPRISE i DECLARATION ii LIST OF SIGNS AND ABBREVIATIONS Vil LIST OF TABLES Vill LIST OF DIAGRAMS Vill PREFACE 01 INTRODUCTION 03 General context the necessity and implication of the research project 03 Objective and scope of the study 04 Methodology of the study 04 Structure of the capstone project 04 Chapter BASIC RATIONALE OF THE REAEARCH 1.1 1.2 PROJECT 06 Concept and classification of business strategy 06 1.1.1 Concept of business strategy 06 1.1.2 Role of business strategy 07 1.1.3 Basic characteristics of business strategy 08 Process of developing business strategy 09 1.2.1 Analyze internal and external environment 09 1.2.1.1 Analyze internal environment ()0 1.2.1.2 Analyze external environment I] 1.2.2 Building matrix to select business strategy 19 1.2.2.1 SWOT Matrix 19 1.2.2.2 External Factor Evaluation Matrix 2] 1.2.2.3 Internal Factor Evaluation Matrix oe 1.2.2.4 Internal External Matrix 22 Capstone Project - Group - M.0310 iv c2 Global Advanced Master of Business Administration Load QOSPM Mairix 24 Chapter 2, ANALYZING REAL SISTUATION WATER SUPPLY PROGRAMS IN VDB 2.1 GENERAL INTRODUCTION OF IN MANAGING THE THE VDB 28 28 2.1.1 The process of establishment organizational structure and apparatus 28 2.1.2 Situation supply 30 INVESTMENT IN VDB 31 and performance in managing water programs in VDB up to June 2012 2.2 ANALYZING SITUATION IN MANAGING OF ACTIVITIES FOR WATER SUPPLY PROGRAMS 2.2.1 2.2.2 Analyze external environment 31 2.2.1.1 Macro environment 3] 2.2.1.2 Sectorial and competitive environment 36 2.2.1.3 Determine the opportunities and threats Analyze internal environment 53 2.2.2.1 For the whole of Vietnam Development Bank 53 2.2.2.2 Regarding the ODA program financing for the 3S water supply activities 2.2.3 2.2.2.3 Evaluate the financial performance 3# 2.2.2.4 Determine the strengths and weaknesses 69 Analyze and select the strategies Tế 2.2.3.1 Analyze and orientate the strategies ce 2.2.3.2 External-Internal factor evaluation matrix 79 2.2.3.3 QSPM matrix 79 Chapter RECOMMENDATIONS, 3.1 GOAL FOR MANAGING WATER VDB TO 2015 AND VISION TO 2020 S11 3.1.2 3.2 SOLUTIONS SUPPLY 84 PROGRAMS IN 84 Targets by 2015 84 3.1.1.1 Strategic target S4 3.1.1.2 Specific target S4 Vision to 2020 SELECT STRATEGIES PROGRAMS Capstone Project 84 FOR - MANAGING Group WATER - SUPPLY M.0310 85 v (C1 3.3 Global Advanced Master of Business Administration 3.2.1 Bases for selecting 85 3.2.2 Determining management strategy 85 SOME SOLUTIONS FOR IMPLEMENTATION 85 5301 Solutions to mobilize the capital for the fund 85 3.3.2 Solutions to human resource management 86 3.3.3 Solutions to Credit Management 94 3.3.4 — Solutions to beneficiaries 3.4 SOME RECOMMENDATIONS MINISTRIES AND DONORS 94 TO THE GORVERNMENT 96 3.4.1 — For the government 96 3.4.2 — 96 3.4.3 For relevant ministries — For donors 3.4.4 — 97 For VDB's leaders oF CONCLUSION 99 REFERENCES 100 APPENDIX Appendix | - FINANCIAL DATA OF VDB Appendix - AUDITED FINANCIAL BANK WATER SUPPLY PROGRAM Capstone Project - REPORT Group OF THE - WORLD M.0310 vi G Global Advanced Master of Business Administration LIST OF SIGNS AND ABBREVIATIONS VDB Vietnam Development Bank BIDV Debt/Asset WB World Bank ADB Asia Development Bank AFD Agency of French Development kfW Kreditanstalt fir Wiederautbau Bank ODA Official Developent Assistant GDP Gross Domestic Product GNP Gross National Product SWOT Strengths - Weaknesses - Opportunities - Threats EFE External Factors Evaluation IFE Internal Factors Evaluation QSPM Quantitative Strategic Planning Matrix CPM Competitive Profile Matrix TOWS Threats - Opportunities - Weaknesses - Strengths BCG Boston Consulting Group Matrix AS Attractive score PAS Total attractive score FDI Foreign direct investment BOT Built - Operation - Transfer BT Built - Transfer rer Public Private Partnership PPO Provincial People Committee MOF Ministry of Finance Capstone Project - Group - M.0310 Global Advanced Master of Business Administration €2 Proqgram LIST OF TABLES No Sign’ ‘Name oftable | 01 | Table 1.1 | Comparison h of classical and ~ modern standpoint on strategy 1.2 | 02 | Table | 03 | Table 2.1 | Total Asset growth of the eleven largest domestic banks | 04 | Table 2.2 Position | | ODA investment particularly and water supply generally 05 | Table 2.3 SWOT | Analysis comparison between VDB and other banks in | ‘The external factors evaluation matrix 06 | Table 2.4 | Finacial indicators of VDB 07 |Table 2.5 | 08 | Table 2.6 Calstila8on for chanagenienn fee of VDB ae all ODA- funded water supply projects 09 | Table 2.7 10 | Table 2.8 | The IFE Matrix SWOT SAU matrix for ODA v2pe8 Reich ener eke fund financing far water supply activities in VDB 11 | Table 2.9 | Table 3.1 Hoes Si pees Positions score for bauer se the HN with and main tasks in the PMU ee Capstone Project pm - Group perenneae - M.0310 viii €2 Global Advanced Master of Business Administration Pr gt ary LIST OF DIAGRAMS No | Sign | Name of Diagrams | 01 | Diagram 1.1 | Five Forces Model 1- Điagram 1.2 | SWOT Analysis 03 | Diagram 1.3 | IE Matrix - 04 | Diagram 1.4 | Business strategy procedure Diagram 2.1 | The IE matrix Capstone Project - Group - M.0310 ix ... Vietnam Development Bank to the capstone project; The topic content: "Developing the supply programs at the Vietnam Development management strategies for water Bank (VDB) to 2015 and vision to 2020? ??... Vietnam Development Bank to the capstone project: The topic content: "Developing the management activities in the water supply sector at the Vietnam strategies for finacing Development Bank (VDB) to. .. 2015 and vision to 2020? ?? refers to objectives relating to operation and management of loan scheme for water sector that VDB is making great effort to achieve, and is highly feasible: Presentation