Running head: STRATEGIC MANAGEMENT IN TCB 1

Strategic Management in Techcombank

DAO Ngoc Thao Uyen - DAON02557800
LE Thi Minh Chau - LEXT16537902
TRAN Thu Hang - TRAH16618207
HUYNH Phuoc Long - HUYP08108101
NGUYEN Ngoc Chi - NGUN16028208
PHAN Thanh Hoang - PHAT04098808
MBA8422-096-Strategic Management
Nov 20th, 2022
Professors: Kamal Bouzinab, Ph. D
STRATEGIC MANAGEMENT IN TCB 2

Table of Contents
Executive Summary ............................................................................................................ 3

Company Background ........................................................................................................ 4

External Analysis ................................................................................................................ 5

Internal Analysis ................................................................................................................. 7

Economic Value Creation & Indicators .............................................................................. 9

As Is – Strategy ..................................................................................................................11

Corporate strategy ..........................................................................................................11

Business strategy ............................................................................................................11

Business model ..............................................................................................................11

Strategy map ................................................................................................................. 12

Strategy Formulation ........................................................................................................ 13

Scenarios Analysis ........................................................................................................ 13

Revised Strategy Map ................................................................................................... 15

Conclusion ........................................................................................................................ 15

Bibliography ..................................................................................................................... 16

Appendices ........................................................................................................................ 17

External Analysis .......................................................................................................... 17

Internal Analysis ........................................................................................................... 18

Economic Value Creation & Indicators ........................................................................ 19

Strategy Formulation .................................................................................................... 20

STRATEGIC MANAGEMENT IN TCB 3

Executive Summary
Techcombank (TCB) is a publicly listed Vietnamese bank. The vision of the company is
transforming the financial industry, raising the value of life; motivating each person to unlock
their potential and act bravely for outstanding things. Also, its mission is leading the
digitalization journey of the financial industry, creating motivation for individuals, businesses,
and organizations to develop sustainably and breakout successfully. The company has 6 core
values, including: customer-centric, innovation and creativity, collaboration for common
objectives, self-development, and work efficiency. To perform the strategic management process,
the company fulfills the following tasks.
External Analysis
By using Porter Five forces, it is found that the thread of new entrance is weak;
substitution is moderate; bargaining power to customer is strong; and competitive rivalry is
strong. Key success factors are defined as diversify the product, digital investment, financial
capability, and talent management. From the analysis of PESTEL model, digital transformation
and legislation support of government are pointed out as two main driving forces to create four
scenarios: bright future, grey zone, fierce competition, and the worst. Lastly, key success factors
in each scenario are presented.
Internal analysis
Four key resources are defined: the source of fund, technology, data driven supported by
modern technologies, the huge investment on the back-end system, and human resources. All of
these propose the strategic capabilities. They are financial control, comprehensive system
experiences and integrated for external and internal, data capabilities and talent management.
They lead to the distinctive competencies with three pillars of a triangle: data, digital and talent.
Consequently, the competitive advantages of TCB are identified as the dual advantage to
response to the customer centricity.
Economic Value Creation & Indicators
The bank have specific ratios to measure profitability and efficiency. They are CASA
(Current Account Savings Account ratio), CIR (Cost to Income Ratio), and NIM (Net Interest
Margin). TCB is proved to be always at the top of banks which have effective business results.
Corporate and Business Strategy
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They are identified in current situation and in each scenario in four scenarios created.
Followings are business models and strategy maps. Finally, recommendations are mentioned in
all situations.
In conclusion, strategic management is very crucial for a long-term development of the
company accompanied with its vision, missions. However, this work only generates benefits if it
is performed with a right method, right information, and right decision.
Company Background
Vietnam Technological and Commercial Joint Stock Bank, commonly referred to as TCB,
is a publicly listed Vietnamese bank. Its shares are traded on the Ho Chi Minh City Stock
Exchange under ticker TCB.
TCB has been established since 1993 by Vietnamese businessmen, with a charter capital
of only 20 billion VND, today has become one of the largest banks in terms of charter capital. Its
domestic investors include Vietnam Airlines and Masan Group. Also, it is invested by other
global companies such as global bank HSBC and US private equity firm Warburg Pincus. The
global HSBC bank acquired 20% stake in 2008 and in 2017 sold its 172 million share stakes in
TCB. The US private equity firm Warburg Pincus invested $370 million in the TCB in 2018
Today, TCB is one of the largest joint stock banks in Vietnam. As of 2019, it had more
than 300 branches and serves more than 5 million customers and became top 3 most profit
private enterprises in 2019 and 2020.
TCB determines the goal of becoming the center for all financial solutions,
accompanying people and businesses to develop sustainably and raise the value of life. The
company is characterized by its vision, mission, and core values.
Vision
Transforming the financial industry, raising the value of life; motivating each person to
unlock their potential and act bravely for outstanding things.
Mission
Leading the digitalization journey of the financial industry, creating motivation for
individuals, businesses, and organizations to develop sustainably and breakout successfully.
Core values
Customer-Centric
Exceed expectations: We put the customers at the center of everything we do
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Innovation and creativity

Create breakouts: We actively discover and bring with outstanding experiences
Collaboration for common objectives
Have the same direction: We promote collective strength and always connect or the
common goal.
Self-development
Push the potential: We always try to improve ourselves
Work efficiency
Take ownership: We always promote the spirit of ownership and sense of responsibility.
The company has 4 main business
Collecting short, medium and long-term deposits from organizations and individuals.
Granting short, medium and long-term loans.
Conducting SBV-approved settlement, cash and other banking services
Investments in associates, joint-venture companies and bonds and foreign exchange.
Their key players include: ACB, SCB, MB, VIB, Sacombank, VB bank
External Analysis
In the first step in designing scenario planning and strategy, the authors shall look at the
banking industry from the outside. It consists of all factors that can affect its potential gain
sustain competitive advantage. By analyzing these external factors, the authors can define the
key success factors, mitigate the threats, and leverage opportunities. The external analysis shall
include firm transactional environment and firm contextual environment.
Firm Transactional Environment Analysis. In this portion, the author shall use Porter
Five forces to breakdown the components of competition in industry and environment. The
underlying forces will reflect the attractiveness of the banking industry and suggest the key
success factor at present.
The Threat of New Entrance. (Weak) In Vietnam, the monetary policy is governed by State
bank of Vietnam. It is difficult to establish a commercial bank. Moreover, the overseas bank just
provided the services for foreign companies which the bank belonged to. In this time, M&A in
banking is significant activities operated by the Government.
Substitution. (Moderate). There are some organizations can provide some services like banks
such as digital wallet, financial institution, fintech, black market, etc. Nevertheless, their
STRATEGIC MANAGEMENT IN TCB 6

diversification is weaker than the bank and the market is lack of legal barrier for these
organizations.
Bargaining Power to Customer. (Strong). The customer has much stronger bargaining power,
which is based on the credit rating, borrowed amount, borrowed time, and collateral/mortgage.
With these elements, the customer reserves the right to deal with the bank to get appropriate
benefit.
Bargaining Power to Supplier. (Moderate). The number of suppliers in the banking industry is
big. Besides, banking is being transformed by digital innovation to improve their services. Banks
are operated and managed by State Bank of Vietnam. Consequently, the bargaining power to
suppliers in this industry is medium.
Competitive Rivalry (Strong). The players in the industry begin to provide various products and
services with attractive promotion. Therefore, the banks compete severity by some factors:
capital, reputation, product differentiation and customer services.
Key Success Factor. The customer needs the low cost with more value added. They will choose
the bank based on the simplified task, security, trust, and convenience. Thus, the author defined
key success factors shall be Diversify the product, digital investment, financial capability, and
talent management
Firm Contextual Environment Analysis. The authors shall use PESTEL model
illustrate the external environmental factors surrounding this banking industry in the year 2030.
Based on that, the driving forces and potential scenarios that happened shall be defined.
PESTEL model. These factors are driven by political, legal, economic, technological, economic,
and social-cultural aspects and from those results, the authors can identify potential opportunities
or threats that external environment may impact to the company. The details of evaluation of
each factor are in the Appendix
Criticality/
Factor Impact of Factor
certainty
Stable political and diplomatic relations with 178
Uncritical
Political countries. Besides, Vietnam is the members of WTO,
/certainty
APEC, FTA, etc.
STRATEGIC MANAGEMENT IN TCB 7

Congress of the Party Committee of the Central Bank

authority for the term 2020-2025 happened
successfully
Critical
Economic Attracting capital to increase operations activities.
/uncertainty
1/2 households will be middle class by 2030 Uncritical
Social Rural residents in 2030, which number 61 million, are /certainty
expected to spend a total of USD 173 billion
Digital banking, E-commerce and digital driven. critical /uncertainty
Technological
Technology infrastructure
Demand on green banking, green credit, clean energy, critical /uncertainty
Environment
renewable energy
Compose and enact the Deposit Insurance Law
critical /uncertainty
Noncash payment decree,
Legal
Applying a new legal framework for Fintech
development
Driving forces and Scenarios. With the PESTEL analysis, Banking industry is facing
some challenges to maintain its activity and product in legal and environment. On the other hand,
the economic growing and young population applied IT transformation are the positive factors
that provide opportunities for commercial banks. As a result, Digital Transformation will be the
main driving force, and it co-relates to the Legislation Support of Government. They will create
04 scenarios:
• The bright future: The world is flat with disruptive digital innovation & open
regulation on money policy
• The grey zone: Unsupported, highly regulated money policy & vibrant technology
• The fierce competition: internet becomes a story, serving for local market
• The worst: Internet & economic in deep decline
Internal Analysis
There are some different approaches for the internal analysis, in this section, the resource-
based is the approach in this analysis. The basic concept is the identification of the TCB’s
strengths and weaknesses from three resource groups: tangible resources such as cash, borrowing
STRATEGIC MANAGEMENT IN TCB 8

capability, intangible resources, for instance, technological capabilities, culture and human
resources, known as skilled/know-how or the communication or collaboration capacity so that
they can determine the strategic capabilities, subsequently, be able to describe the unique
competencies and competitive advantage for the bank accordingly, however the strategic
capabilities and competitive advantages have to be consider whether it is valuable, rarely, hardly
imitate and unique or unable to substitute.
To be more specific, from the SWOT analysis focusing on the internal resources, the key
resources are identified, First, the source of fund where TCB had the remarkable result in CASA
ratio in 2021, it pushed to 50.5% in general, in which rose by 30.8% YoY in retail segment and
increased by 24.7% in SME segment. Furthermore, the USD 800 million largest ever offshore
loan in Vietnam at the competitive cost compared to local financial markets, made a stronger in
credit rating as well as gaining the confidence from international lender (Techcombank, 2022).
Second, the technologies that visible to customers, TCB is leading banking technology, they
were one of the first bank provided the super app to end users where their customers can do
almost every banking transaction quickly, easily, and reliable on their own devices, that brings
the different experiences and excitement to target customers which are Gen Y and Gen Z.
Moreover, the platform allows end users to maximize their personalization as well as capturing
user’s behaviors to suggest a better user experiences while using their banking apps. On the other
hand, the new generation of loan origination, and the anti-money laundering platform are
developing to create more value proposition to their customers. Third, the data driven supported
by modern technologies, the huge investment on the back-end system in order to support for the
instantly and securely banking system integration, operational system automation and decision-
making support systems such as core banking system, data governance, business intelligence. To
maximize the benefits from those integrated systems, the solutions of machine learning, AI and
RPA have been implemented with Amazon cloud services. Fourth, the human resource, it
reported about 23.6% in people expenses in 2021 versus the year before, another huge
investment to serve customers and communities, building technology and driving the innovations
for now and in the future. In the context of workforce shortage, their turnover rate is quite low,
and roughly 4.6 years in average for 12.500 employees in total and 17% of them in the
technology field indeed.
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Those four key resources are interrelation and support for four strategic capabilities are
defined which are the financial control, the comprehensive system experiences and integrated for
external and internal, the data capabilities and the talent management. Subsequently, the
distinctive competencies are defined as the triangle of data, digital and talent after careful
considering of four characteristics: valuable, rarely, difficulty in imitate and unique. Ultimately,
the competitive advantages of TCB are identified as the dual advantage to response to the
customer centricity.
Economic Value Creation & Indicators
Similar to companies in other sectors, banks have specific ratios to measure profitability
and efficiency that are designed to suit their unique business operations. Also, since financial
strength is especially important for banks, there are also several ratios to measure solvency. Now
we focus on three below unique ratios:
1. CASA - Current Account Savings Account ratio, the bank with higher Casa ratio the
better the financial health of it, and the ability to expand business.
2. CIR - Cost to Income Ratio, is a metric that allows you to gauge how efficiently a
business or organization is functioning.
3. NIM - Net interest margin ratio is a measure of the net return on the bank's earning
assets, which include investment securities, loans, and leases
From Figure 4, the financial indicators of TCB have increased steadily over the years and
are always at the top of banks which have effective business results. For the year 2021, TCB is
the top 2 of bank has achieved one billion USD profit target, right after Vietcombank. CASA rate
of 50.5% is the leading position in the industry and much higher than 20.5% of average industry,
CIR is 30.1% vs 36.7% and NIM 5.6% vs 2.8% respectively.
In the Q3'2022:
• TCB's CASA ratio is still leading the banking industry with 47.5% and much higher
than 16.8% of average industry (vietnamnews, 2022).
• In the top banks with the best CIR at 29.9%, TCB's operating expenses increased by
20.9% over the same period, reaching VND9.4 trillion.
• Net Interest Income expanded significantly primarily driven by NIM at 5.6%
From the internal analysis, key success factors together with above financial indicators,
we can confirm TCB has dual advantage to response to customer centricity. The BOM's direction
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was established from the vision and mission, foreseeing the need in business digitization, so they
focused on investing in technology to digitize comprehensive banking activities, put in digital
applications to meet the customers’ needs and convenience for them to use quickly and safely.
TCB proves their wide moat economic via competitive advantage over rivals as follows:
• TCB focuses on diversifying products for customers, from cards, savings, and bank
credit services to associated with other services in the same ecosystem such as
investment services, insurance and other payment utilities...
• With the vision of "Transforming the financial industry, raising the value of life",
TCB constantly invests in Data - Digitization - Talent to bring practical financial
solutions to customers in different industries, optimization customers experienced.
Now with just one touch on a mobile phone, users can access almost all TCB's
financial services from buying and selling new products, transactions, and planning to
increase their potential finance for their business as well as for themselves.
• TCB has partnered with Amazon Web Services (AWS) to harness the potential of
cloud data. Data cloud will help enhance customer experience, improve product
services, thereby boosting labor productivity thanks to digitized processing operations
and synchronized customer care information system wide.
• TCB invests a lot in market research and customer insights to build appropriate
solutions for each segment and for different customer groups to help users save time,
optimize expenses management with TCB's professional and automatic processing.
• TCB has large customer data, by the end of 2021 there are about 9.6 million
customers, an increase of 1.2 million compared to the previous year. This increase in
customer transactions results in a significant increase in revenue at a constant cost,
and so increasing their economies of scale.
From the above actions and results, the TCB has been building a proper development
roadmap in accordance with the orientation and initial goals set, the BOM as well as all their
employees unanimously implement the goals of the company through following achievements:
• It has been ranked as the bank with the highest reputation is the sustainable base for
further development by Moody's magazine.
• Achieved awarded the Top 2 Top Financial Brands by Forbes Vietnam.
STRATEGIC MANAGEMENT IN TCB 11

• Is recognized as improved digital services and the Most Recommended Retail Bank
in Vietnam at The Asian Banker Vietnam Awards 2022 (Euromoney, 2022).
• And a lot of other awards…
All of those are the solid foundations for TCB to continue implementing the strategies
that have been planned up to now and constantly researching new solutions to optimize future
operations.
As Is – Strategy
Corporate strategy
TCB follows a strategy of growth through concentration, horizontal integration. It
focuses on banking business, and the digital transformation as core to expand and synergize the
portfolio with relevant businesses as securities, fund management and asset management.
“Growing firms in a growing industry tend to choose these strategies before they try
diversification” (Wheelen & Hunger, 2012) – and that’s exactly what TCB is doing.
Business strategy
In the lens of Competitive strategy, it (banking business) decided to go with Dual
competitive advantage. Differentiation by corporate reputation for quality and technological
leadership. With 3 pillars on talent, digital, data. It achieved 47.1% EBIT grow in 2021 and is the
1st non-state bank to exceed 1 billion dollars EBIT nationally(Techcombank, 2022). From
perspective of Scope Strategy, it decided to go with segmentation, with customer in the high-
income segment remains as the bedrock for funding structure. It reflects on rank 1 on CASA,
30% growth YoY. From the view of Disruptive Strategy, TCB is a First Mover, it embraced
cloud-first transformation, it is the 1st bank with end-to-end omni channel experience, well
awarded with national most pioneer banking.
Business model
TCB banking business has more than 9.6 million individual customers are mainly
generation X and baby boomer; the targeted customers also included the SME with high demand
on automation and digital services. Its value proposition in the retail and commercial banking
services. It delivers value to customer via more than 300 branches office, online and mobile
banking products. The customer relationship is developed via direct branch interaction, hotline or
self-service in app and web banking. The key activities include technology innovation, talent
STRATEGIC MANAGEMENT IN TCB 12

development and digital transformation. The main revenue streams coming from 2 main sources:
interest from loan, income from deposit, security services.
Strategy map
Let’s take a top-down approach to draw the strategy map for TCB, consider the company
vision embarking on change banking, change life. The strategy map must then define the logic of
how to arrive at that destination.
Financial perspective. Building a strategy map typically starts with a financial strategy
for increasing shareholder value. let’s focus on 2 basic levers of financial: revenue growth and
productivity (Kaplan & Norton, 2000). The former one generally has two components: gain
revenue from new markets, new products, and new customers; and increase value to existing
customers by deepening relationships with them via seamless banking experience for customers.
Sample of key performance indicators by 2025 are: 55% CASA ratio, and 20 billion USD market
capital. The later one also has 2 parts: improve company’s cost structure and use asset more
efficiently. This is achieved by the asset management business and reduction in the cost of funds
due to high CASA.
Customer perspective. The core of any business strategy is the customer value
proposition. Typically, the value proposition is chosen from among three differentiators:
operational excellence, customer intimacy, and product leadership (Kaplan & Norton, 2000).
TCB consistently pursue customer centricity as the principle for their strategy. The targeted
customer segment is upper middle class, who is willing to pay premium to get a better service. It
strives to develop better products, creating a seamless banking experience for customers. It is
recently ranked 6th in Asia’s top 10 most recommended retail banks by BankQuality consumer
survey. It has mobile app for both retail customers and corporate customers, which in turn enable
fast and intuitive payments, and making banking services accessible through multiple channels
for better customer experience.
Internal process perspective. Once an organization has a clear picture of its customer
and financial perspectives, it can then determine how it will achieve the differentiated value
proposition for customers and the productivity improvements to reach its financial objectives.
(Kaplan & Norton, 2000). The internal process perspective typically includes four high-level
processes: innovate new products and services and by penetrating new markets and customer
segments; increase customer value by deepening relationships with existing customers; achieve
STRATEGIC MANAGEMENT IN TCB 13

operational excellence by improving supply chain management, the cost, quality, and cycle time
of internal processes, asset utilization, and capacity management (Kaplan & Norton, 2000); The
major focus on digital, data and talent enable TCB to gain customer insight and optimize their
direct customer service. This is achieved by a “Cloud first” approach, strategic partnership AWS,
and heavy investment to employee development.
Learning and grow perspective. The foundation of any strategy map is the learning and
growth perspective, which defines the core competencies and skills, the technologies, and the
corporate culture needed to support an organization’s strategy (Kaplan & Norton, 2000). The 3
pillars of digital, data and talent are the bedrocks for the entire strategy map.
Strategy Formulation
Scenarios Analysis
The Bright Future. The world is flat with disruptive digital innovation & open
regulation on money policy. In this scenario, the customers want to have ease of financial access
(super app, peer banking, cryptocurrency), and demand for higher layer of elements of value, like
Social Impact, Life changing. The trend is moving toward the services which is personalized,
tailored-made, and most importantly secure and safety. In order to survive in such scenario, it is
required to have fully digitalized banking services, empowered by the state-of-the-art
technologies like block chain, AI, and quantum cybersecurity. Altogether to diversify premium
service.
Key Success factors. Including risk management, 3 pillars digital, data and talent, prestigious
banking service.
Corporate, Business strategy implications. The implication for strategy in this scenario is to be
the pioneer of digital bank in the region.
Recommendation. First, to enhance customer experience by providing a real time data of their
portfolio. Second, to utilize large sales channel to develop new services and gain more market
share. Third, to strengthen the training and development for employees, to get ready for the new
system implementation, gaining operational effectiveness
The Grey Zone. Given the corporate strategy with a direction of growth with the
condition in which high technology are welcomed and fully adopted; however, the government
introduces restricted regulation applied to the banking industry. The bank would continue to
leverage its cost advantages so that the customers can be attracted by financial products with low
STRATEGIC MANAGEMENT IN TCB 14

interest rates and useful addon services with no fee. That leads to increase in its customer
emotional engagement to the bank and give them more trust.
Key Success factors. The key success factors in this scenario consist of business transformation,
cost optimization, diversification to the product and top-up services. Finally, the bank must
manage all risks very well.
Corporate, Business strategy implications. In this scenario, the bank would continue to invest in
digital transformation and cost optimization. The bank also could increase its intense
competitiveness by providing product composition based on solid fundamental analysis. Hence it
is necessary to keep updated and analyze the market trends. Moreover, the bank could expand the
target market by approaching the second generation of wealth in the family of its current
customers. Extensively it offers various programs and promotions to maintain customers
satisfaction as well as build up the brand reputation.
Recommendation. Following are suggestions to the bank in this scenario
• Concentrate on digital banking.
• Moderate Cybersecurity.
• Customer Insight Analytics.
• Promotions & Marketing campaigns.
• Attract FDI funding.
• Competency leadership
The Worst. Due to the geopolitical issues across the world, the government constructs a
high restriction on money policy, raises the interest and limits the credit capacity. The high-
speed internet would be highly dependent on the fiber cables from USA and that connection
could be not available anymore. There would be only local network for intra-country
communications. The economy become isolated, self-serving for its 130 million citizens.
Key Success factors. The key success factors in this scenario consist of cost optimization,
diversification to the product and top-up services. Finally, the bank must well manage all risks.
Corporate, Business strategy implications. In this scenario, the bank would prioritize to stabilize
its business through this period with a lot of uncertainty. The bank needs to strengthen their
relationship with its customers. Gaining more and more trust is required. Moreover, paying close
attention to the government policy changes and having dedicated to managing the relationship
with the policy makers.
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Recommendation. Following are suggestions to the bank in this scenario

• Focus on cost optimization.
• Have dedicated teams to manage relationships with policy makers.
• Customer Insight Analytics.
• Promotions & Marketing campaigns.
The fierce competition. Vietnam’s digital transformation is not up to speed of global,
along with the globalization, plenty of new competitors enter Vietnam market, and the bank is
not ready for competing. Government is staying close to support with regulation and tax matters.
Key Success factors. Additional key success factors in this scenario entail up-to-speed and
innovative solutions for digital banking, super application, and talented employees with loyalty
Corporate, Business strategy implications. In this scenario, the bank would leverage its
technology advantages to introduce new and innovative financial products such as peer landing
and crowdfunding platforms. Through technology, the bank can provide customize products to
attract Gen Z customers.
Moreover, the bank practices international standards for customer services so that it can
provide high quality services and attract middle and upper classes in the market. As the results,
its customer bases can be expanded. Also, this is important in this scenario that the bank need to
maintain a good relationship with the state bank and policy makers.
To strengthen key activities, the bank should continue to update and create solutions for
digital banking, super mobile application, and talented employee with loyalty.
Recommendation. Following are suggestions to the bank in this scenario
• To strengthen the government and customer relationship management.
• Encourage loyalty to strengthen employee engagement and brand awareness.
• Required aggressive investment to IT / digitalization
Revised Strategy Map

Conclusion
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Bibliography
Euromoney. (2022). awards for excellence 2022: Best Bank in Vietnam - Techcombank.
Euromoney. https://www.euromoney.com/article/2ackhtmzg4z62d69w4w74/awards/awards-
for-excellence/awards-for-excellence-2022-best-bank-in-vietnam-techcombank
Kaplan, R. S., & Norton, D. P. (2000). Having trouble with your strategy? Then map it. Harvard
Business Review, 78(5).
Techcombank. (2022). TCB Annual report 2021. Techcombank.
https://techcombank.com/en/investors
vietnamnews. (2022). Cheap capital sources at most banks decline in Q2. Vietnamnews.
Wheelen, T. L., & Hunger, J. D. (2012). Strategic Management and Business Policy (13rd ed.).
Person.
STRATEGIC MANAGEMENT IN TCB 17

Appendices
External Analysis
Figure 1: Banking Industry life cycle

Impact/ Uncertainty Grid For Banking Industry

Figure 2: Impact/ Uncertainty Grid For Banking Industry

Ec
Investment in banking
Strong CRITICAL UNCERTAINTIES
Transparent for sustainable L
Apply new legal
TRENDS Ec
development Ecommerce and
framework for bank,
T fintech
digital driven
Decree of Congress for One in two households will Digital
P S T
development of bank be middle class Green banking, banking
En
green credit
Ec
rural residents are
Many opportunities for
One party, stable political S expected to spend a total Attract capital to
banking P
of USD 173 billion Ec increase operation
Encourage in renewable L Non cash activities
Potential En energy, clean energy payment decree
Impact
S En L

SECONDARY ELEMENTS
CASA

Weak

P Political Ec Economy S Social T Technical En Environment L Legal

Low Uncertainty High

STRATEGIC MANAGEMENT IN TCB 18

Internal Analysis
Figure 3: Techcombank Internal analysis
STRATEGIC MANAGEMENT IN TCB 19

Economic Value Creation & Indicators

Figure 4: Techcombank Financial ratio over years

Ratio Year 2018 Year 2019 Year 2020 Year 2021

CASA 28,70% 34,50% 46.1% 50.5%
NIM 3,70% 4,20% 4.9% 5.6%
CIR 31,80% 34,70% 31.9% 30.1%
ROA 2,90% 2,90% 2.99% 3.58%
ROE 21,50% 17,80% 18.03% 21.53%
CAR (Basel II) 14,60% 15,50% 16.1% 15,00%
Bad debt ratio 1,80% 1,30% 0.5% 0.7%
LDR 65,50% 76,30% 78.1% 71,9%.
Short-term capital for medium
31,50% 38,40% 33,90% 28,80%
and long-term loans
Figure 5: Techcombank - Recently Ranking Efficient Scale

Provision for
Profit
BANK ROA ROE Credit Losses CIR NIM CASA Total Asset Ranking Current P/B
Growth
(PCL)
MBB 2.8% 24.1% -0.37% 33.1% 4.3% 39.1% 26.5% 656.804.225 1 0.9
TCB 3.2% 19.6% 0.33% 29.9% 4.0% 42.5% 15.3% 671.353.524 2 0.9
ACB 2.4% 23.8% 0.37% 36.1% 3.2% 23.6% 13.1% 561.113.724 3 1.4
VCB 1.6% 20.6% -1.70% 33.8% 2.4% 32.9% 19.8% 1.649.664.327 4 2.6
HDB 2.0% 21.5% 1.04% 37.0% 3.6% 10.9% 37.0% 399.152.572 5 0.9
VIB 2.5% 27.5% 1.83% 34.6% 3.4% 13.5% 39.8% 340.910.343 6 1.4
STB 0.7% 11.2% 0.26% 45.4% 2.1% 21.1% 76.5% 564.192.851 7 0.8
VPB 3.0% 17.5% 2.71% 22.3% 5.7% 18.2% 37.9% 595.901.874 8 0.7
MSB 2.4% 17.8% 0.81% 34.8% 3.5% 36.3% 1.4% 194.182.015 9 0.7
TPB 1.9% 19.8% 0.36% 36.0% 3.0% 15.9% 13.5% 317.327.732 10 1.1
LBP 1.4% 19.2% 0.14% 36.2% 3.0% 6.2% 81.3% 313.480.212 11 0.7
EIB 1.5% 13.6% 1.57% 41.0% 2.4% 15.1% 116.0% 183.674.150 12 2.4
CTG 0.9% 14.8% -1.02% 27.3% 2.1% 19.9% 23.2% 1.750.789.603 13 1.1
BID 0.8% 16.3% -0.81% 28.8% 2.1% 18.4% 8.9% 2.048.952.817 14 1.7
SSB 1.7% 15.5% 0.85% 33.1% 2.3% 9.2% 46.4% 229.145.802 15 2.5
SHB 1.5% 19.4% 1.35% 21.3% 2.8% 7.5% 26.2% 528.560.025 16 1.3
AVG 1.5% 15.7% 1.5% 39.2% 2.7% 16.8% 26.8% 1.27
STRATEGIC MANAGEMENT IN TCB 20

Strategy Formulation
Figure 6: TCB Corporate Strategy

GROWTH
“We have taken the initial steps towards being a top 10
regional bank by 2025”

Concentration, Horizontal Integration “Techcombank

will further build capabilities with the aim of serving all
our customers’ daily banking needs”
Corporate Strategy
Digital Transformation Strategy
adopted a ‘Cloud First’ strategy for technology
infrastructure, serious investment in cloud infrastructure

Bussinesses
- Banking (transaction offices)
Businesses Strategy - TCBS (Securities)
- TCC (Fund management)
- AMC (debt settlement & Asset management)

Figure 7: TCB banking business strategy

Dual
- Differentiation by corporate reputation for
Generic Strategy
quality and technological leadership. With 3
pillars on talent, digital, data
- Customer centric is a part of strategy, rank 6
Asia topmost recommended retail bank
Cost leadership Differentiation - 47.1% EBIT grow! 1st bank 1B $ EBIT
- Low-cost distribution

Scope Strategy
Segmentation
- high-income customer segment
remains the bedrock of our funding
Product/Market
structure Segmentation Geographical
scope
- Rank 1 on CASA, 30% growth YoY

Disruptive Strategy First Mover

- Cloud-first transformation
- 1st bank with an end-to-end
omni-channel experience
First mover Blue ocean Specialization Concentration - Vietnam most pioneer banking
STRATEGIC MANAGEMENT IN TCB 21

Figure 8: TCB banking business model