MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY

THE MIDTERM THESIS

Major : Principles Of Macroeconomic

Lecture : Huỳnh Hiền Hải
Name : Nguyễn Đức Tuấn
Student ID : 2254030091
Class: 22BOBA02
Contents
A. Introduction ..................................................................................................................................................................... 3
B. Body ................................................................................................................................................................................ 4
I. Investors ...................................................................................................................................................................... 4
II. Banking servces provided ........................................................................................................................................... 6
i. Services for individual customers ........................................................................................................................... 6
ii. Services for corporate customers ............................................................................................................................ 6
III. Credit creation process for customers ..................................................................................................................... 7
i. Credit creation process ............................................................................................................................................ 7
IV. ACB's credit creation process can affect the economy in Vietnam. ........................................................................ 8
V. Negative Impact of Bank Credit ................................................................................................................................. 9
i. Increasing Bad Debt ................................................................................................................................................ 9
ii. Financial Bubbles.................................................................................................................................................... 9
iii. Inflation ............................................................................................................................................................... 9
iv. Credit Crisis .......................................................................................................................................................... 10
v. Financial Risk ....................................................................................................................................................... 10
VI. Make recommendations on the formation of monetary policy to increase money supply in the money market for
ACB bank.......................................................................................................................................................................... 11
C. Conclusion .................................................................................................................................................................... 11
References ............................................................................................................................................................................. 12

2
 A. Introduction
To talk about the banks with the top capitalization in
Vietnam, Asia Commercial Joint Stock Bank, abbreviated
as ACB. With its early formation from June 4, 1993 to
now, ACB has expanded its branches to almost all over
Vietnam, specifically, there are 49 provinces and cities
where ACB has set foot and there are more than 13,000 employees working at ACB Bank. In
the early years of formation, ACB focused on managing and coordinating the bank's
development of businesses effectively and safely, with a vision of targeting individual
customers and small and medium enterprises within the capacity of the private sector. After 3
years, in 1996, ACB officially issued international credit cards MasterCard and Visa cards for
ACB customers to conveniently choose the appropriate card for international payments in
different continents. By 2006, Asia Commercial Bank was officially listed on the stock
exchange. ACB's vision is "sustainable development with a spirit of transformation to enhance
competitiveness" and along with that, ACB's mission is "Bringing the best customer experience,
growth, total income at the highest level and achieving a return on equity (ROE) of 20% or
more per year1 (ACB, n.d.) ACB always puts customers at the center of all its activities. The
bank always strives to improve service quality and constantly innovate according to the market,
ACB applies advanced technologies to bring the best experience to customers. The ACB Online
electronic banking system and the ACB Mobile Banking mobile application are testaments to
ACB's pioneering role in applying technology.
ACB also pays special attention to risk management and compliance with legal regulations, to
ensure safe and sustainable operations for the bank. The bank has built an effective risk
management system, from credit assessment, internal control, to employee training in risk
management and anti-money laundering.
In addition to business activities, ACB also always aims at social responsibility, with many
programs and organizations in charity, education, health, and environmental protection. The
bank has actively contributed to community activities, supported disadvantaged situations and
accompanied the sustainable development of society.
With these continuous efforts, ACB has achieved many prestigious achievements and awards at
home and abroad, affirming its position and prestige in the banking industry. ACB is not only a
trusted financial partner of millions of customers and businesses but also an ideal working
environment, where employees have the opportunity to develop their careers and advance.

1
https://acb.com.vn/
3
ACB Bank continues to affirm its commitment to bringing the best value to customers, society
and the community, while constantly innovating and developing to meet the increasing needs of
the financial market in Vietnam.
Regarding ACB's macroeconomics, the bank has achieved many impressive achievements in a
challenging macroeconomic context. In the first half of 2024, ACB achieved a pre-tax profit of
VND10.5 trillion, with credit growth reaching 12.8%, double the industry average. The bank
also maintained a low bad debt ratio of only 1.5%. ACB continues to lead the market in terms of
operating efficiency, with a return on equity (ROE) of 23.4%. The bank has also grown well in
terms of scale, with total cumulative revenue in the first two quarters reaching VND16.8
trillion, up 5.5% year-on-year. In addition, ACB also focuses on developing the retail segment,
accounting for nearly 94% of total operations, and is expanding the medium and large enterprise
segment. This shows that ACB is on the right track in balancing credit growth in both the
personal and corporate segments2 (Vietstock, n.d.).

B. Body
I. Investors
Currently, ACB Bank has 5 major investors, including 2 individual shareholders: Nguyen
Thien Huong JENNY holding more than 60 million shares of the bank and shareholder
Nguyen Duc Hieu JONNY holding more than 47.73 million shares. The 3 joint stock
companies are Giang Sen Investment and Trade Joint Stock Company, Bach Thanh
Investment and Trade Joint Stock Company and Thien Huong International Education
2
https://finance.vietstock.vn/du-lieu-vi-mo
4
 Village Joint Stock Company3 (Anh, 2024). Major investors help ACB have more capital to
develop projects, expand its branch network, improve service quality and expand
cooperation relationships.

In order for the bank to have more capital to provide credit to customers, the bank must
mobilize capital from outside, which is a key factor to ensure sustainable development and
expand the scale of operations of Asia Commercial Joint Stock Bank (ACB). In the context
of a challenging and fiercely competitive economy, ACB is constantly looking for and
applying effective capital mobilization strategies. These methods not only help the bank
ensure a stable source of finance but also create momentum for long-term business and
investment activities.
Mobilizing deposits from customers:
Savings deposits: ACB offers many types of savings accounts with attractive interest rates to
attract customers to deposit money.
Payment deposits: Customers can open payment accounts to make daily transactions. ACB
provides convenient services such as Internet Banking, Mobile Banking for customers
convenience.
Issuing bonds:
ACB issues corporate bonds to mobilize capital from investors. These bonds can be short-
term, medium-term or long-term with competitive interest rates.
Cooperating with international financial institutions
ACB seeks loans from international financial institutions such as the World Bank, the Asian
Development Bank (ADB), and other foreign banks. This helps ACB have more capital to
develop its business.
Mobilizing capital from shareholders
ACB can issue new shares to increase its charter capital. This helps the bank to strengthen its
financial capacity and expand its business operations.
Exploiting other sources of capital:

3
https://vneconomy.vn/acb-co-them-5-co-dong-
lon.htm#:~:text=C%E1%BB%A5%20th%E1%BB%83%3A%20CTCP%20%C4%90%E1%BA%A7u%20t%C6%B0,ACB%2C%20chi%E1%BA%
BFm%201%2C252%25%20v%E1%BB%91n
5
 ACB can also exploit capital sources from investment funds, government capital support
programs, and other forms of capital mobilization such as interbank credit contracts.4 (ACB,
Báo Cáo Tài Chính , n.d.)
II. Banking servces provided
i. Services for individual customers

Payment accounts: Open payment accounts with many utilities such as money transfer, bill
payment, and personal finance management.
Savings books: Savings packages with attractive interest rates, including term and non-term
savings.
Cards: Provide credit cards and debit cards with many incentives and utilities.
Loans: Consumer loans, home loans, car loans with competitive interest rates.
Money transfer: Fast and safe domestic and international money transfer services.
ii. Services for corporate customers
Trade finance: Export and import finance and international payment services.
Cash flow management: Cash flow management, payroll and bill payment services.
Corporate credit: Loan packages for businesses with preferential interest rates
Foreign exchange services: Foreign currency transactions and exchange rate risk insurance

4
https://acb.com.vn/nha-dau-tu/bao-cao-tai-chinh
6
 III. Credit creation process for customers
i. Credit creation process
Necessary conditions to create:
To create a credit card at ACB (Asia Commercial Bank), you must have Vietnamese nationality
because only Vietnamese people can register for a credit card, must be 18 years old or older,
must have an ACB bank account in advance, provide current financial documents such as
business license, tax results or related documents, provide the owner's phone number and
contact address.
Adequate prerequisite to establish
General conditions:
Stable income: You need to prove that you have a stable monthly income. This can be proven by
a salary statement, labor contract or documents proving income from business.
Good credit history: You should have a good credit history, no bad debt or overdue loans. The
bank will check your credit history through credit institutions such as CIC (Vietnam National
Credit Information Center).
Personal documents: You need to provide personal documents such as ID card/CCCD, passport
and other related documents.
Specific conditions for each type of card
Personal credit card:
Required income: The minimum monthly income depends on the type of card you want to apply
for (Visa, MasterCard, etc.). Normally, the required income will be from 5 million VND/month
or more.
Collateral (if any): For some high-end cards, you may need to provide collateral such as a
savings book or valuable assets.
Corporate credit card:
Business registration certificate: The business must have a legal business registration certificate.
Financial report: The business's financial report for the last 6 months to 1 year is required to
prove its ability to pay.

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Tax reporting: Provide corporate income tax reports to demonstrate that the business is
operating efficiently and has stable income.

IV. ACB's credit creation process can affect the economy in Vietnam.
Credit provision: When ACB provides credit to businesses and individuals, it helps increase
business and investment activities, thereby promoting economic development.
Business support: When ACB provides credit to businesses, they help these businesses have
capital to expand production, invest in new technology or expand markets. This not only helps
businesses grow but also creates new job opportunities and promotes overall economic
development.
Personal support: Personal loans from ACB can help people buy houses, cars or invest in
education. This not only improves the quality of life but also promotes consumption and
stimulates the economy.
Risk management: ACB's credit creation process includes the examination and
management of economic risks, helping to maintain the stability of the financial system.
Credit assessment: ACB conducts a thorough credit examination and assessment process
before granting loans, ensuring that borrowers have the ability to repay their debts. This helps to
minimize the risk of bad debts and maintain the stability of the financial system.
Efficient capital allocation: By closely managing risks, ACB can allocate capital
effectively, ensuring that loans are used for projects and economic purposes with the highest
potential to create value.
GDP growth: Providing credit to support large investment projects can contribute to
Vietnam's GDP growth.
Investing in large projects: When ACB provides funding for large projects such as
infrastructure, manufacturing or energy, these projects can create significant economic value.
The increase in investment and production from these projects will contribute to the country's
GDP growth.
Increasing labor productivity: Loans from ACB help businesses purchase new equipment
and technology, improving labor productivity and production efficiency. This contributes to
increasing the gross domestic product (GDP).
Creating jobs: When businesses receive credit, they can expand production and hire more
workers, helping to reduce unemployment.

8
 Expanding production: When businesses receive credit from ACB, they can expand
production and hire more workers, creating many new jobs. This not only reduces
unemployment but also improves people's income and living standards.
Startup support: ACB provides startup support loans, helping young entrepreneurs
develop their business ideas. The success of startups not only creates new jobs but also
promotes innovation and economic diversification.

V. Negative Impact of Bank Credit

i. Increasing Bad Debt
Cause: When banks grant credit without carefully checking the customers' ability to repay,
or when many customers are unable to repay due to economic fluctuations.
Impact: Increasing bad debt weakens the bank's financial system, reduces lending capacity
and increases the risk of bankruptcy. When bad debt becomes a major problem, banks may face
capital loss and reduced profits, negatively affecting the entire economy.

For example, before 2015, DongABank granted many loans without carefully checking the
customers' ability to repay, causing the bank's bad debt to increase dramatically, forcing the
bank to restructure and be subject to special supervision from the State Bank of Vietnam. This
incident reduced customer confidence and affected the bank's business5 (Mến, 2022).
ii. Financial Bubbles
Cause: When too much credit is provided to industries such as real estate or stocks, asset
values can increase rapidly and uncontrollably.
Effect: Financial bubbles can burst, leading to economic instability when asset prices
suddenly fall sharply. This causes great losses for investors, businesses and individuals, creating
a cycle of financial and economic crises6 (Bong bóng kinh tế là gì? Cách hình thành bong bóng
kinh tế, 2023).
For example, in 2008, the US had a real estate bubble burst, causing an economic crisis that
followed a series of major US commercial investment banks, with organizations and individuals
going bankrupt. This caused many businesses to be delayed and stagnant, causing
unemployment and many homeless people7 (Blog, 2023).
iii. Inflation
Cause: When the amount of money in circulation increases too quickly compared to the
output of goods and services, leading to an increase in prices.

5
https://vneconomy.vn/vu-dai-an-dong-a-bank-truy-trach-nhiem-cua-nhan-vien-ngan-hang-cong-chung-vien.htm
6
https://www.vietcap.com.vn/kien-thuc/bong-bong-kinh-te-la-gi-cach-hinh-thanh-bong-bong-kinh-te
7
https://topi.vn/khung-hoang-kinh-te-2008.html
9
 Effect: Inflation reduces the value of money and people's purchasing power. This makes it
difficult for consumers, especially those with fixed incomes, puts pressure on the cost of living
and production, and undermines confidence in the currency8 (Huy, 2023).
For example, uncontrolled money printing and rapid credit growth have led to inflation.
Inflation reduces the value of the bolívar, people's purchasing power decreases sharply, and the
economy falls into crisis. Goods become scarce and prices rise out of control9 (Ngọc, 2021).

iv. Credit Crisis

Cause: When too many loans are not paid on time, leading to a lack of liquidity and a credit
crisis.
Impact: Credit crisis reduces the ability of businesses and individuals to borrow capital,
negatively affects economic activities, increases unemployment and causes economic
recession10 (Thao, 2018).
For example, many Asian countries had taken on large foreign debts, and when their currencies
lost value, banks were unable to repay them. This caused a financial crisis that spread across
Asia, causing many banks to fail, businesses to close, and millions of people to lose their jobs.
The region's economy declined severely for many years11 (BNews, 2022).
v. Financial Risk
Cause: If banks do not manage credit risk effectively, they may invest in projects that are
not feasible or profitable.
Impact: Financial risk can lead to the collapse of banks, causing loss of public confidence
and severely affecting the national financial system. This can lead to economic and social
crises.
For example, WaMu issued too many high-risk loans without strict controls. In 2008, WaMu
went bankrupt with huge losses, becoming the largest bank in US history to fail. This event
shocked the financial markets and contributed to the global financial crisis12 (Bella, 2023).

The negative impacts of bank credit highlight the importance of strict and responsible
credit management. Banks need to carefully examine customers' ability to repay, ensuring that
credit is provided to projects and individuals who are capable of repaying, thereby contributing
to the sustainable development of the economy.

8
https://vneconomy.vn/lam-phat-o-dau-cao-nhat-the-gioi.htm
9
https://tapchinganhang.gov.vn/cac-yeu-to-anh-huong-den-rui-ro-tin-dung-cua-cac-ngan-hang-thuong-mai-viet-nam.htm
10

https://hvnh.edu.vn/medias/tapchi/vi/04.2019/system/archivedate/B%C3%A0i%20c%E1%BB%A7a%20TS.Hu%E1%BB%B3nh%20Th%
E1%BB%8B%20H%C6%B0%C6%A1ng%20Th%E1%BA%A3o.pdf
11
https://trungtamwto.vn/tin-tuc/21296-nhung-bai-hoc-tu-cuoc-khung-hoang-tai-chinh-chau-a
12
https://www.washingtonpost.com/business/2023/03/11/silicon-valley-bank-washington-mutual-failure/
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 VI. Make recommendations on the formation of monetary policy to increase
money supply in the money market for ACB bank13

Reducing interest rates: is an important tool of monetary policy to stimulate economic

growth. When ACB reduces interest rates, the cost of borrowing becomes lower, encouraging
businesses and individuals to borrow capital for investment and consumption. Increased
borrowing will lead to an increase in the amount of money circulating in the economy, thereby
promoting economic activity and creating a larger money supply.
Reducing the reserve ratio: is a measure to reduce the reserve requirement for
commercial banks. When the reserve ratio is reduced, commercial banks can retain a larger
portion of deposits for lending and investment. This increases the amount of money available in
the economy and promotes economic growth

Increasing the money supply in unison: through providing credit to commercial banks or
other financial institutions. ACB can provide short-term loans at low interest rates to other
banks, helping them have more capital to lend. This will increase the amount of money in
circulation and encourage investment and consumption.
Encourage foreign investment: providing preferential credit packages helps ACB design
special credit packages specifically for foreign enterprises, including short-term and long-term
loans, with lower interest rates than the general market. This will help investors reduce financial
costs and increase investment efficiency.
Applying these monetary policies can help ACB increase the money supply in the money
market, thereby promoting economic growth and supporting businesses and individuals in
investment and consumption. These policies not only help reduce borrowing costs but also
create favorable conditions for the development of the Vietnamese economy.

C. Conclusion
Asia Commercial Joint Stock Bank (ACB) is one of the leading financial institutions in
Vietnam, providing a wide range of financial services such as deposits, credit, credit cards,
insurance and investment. ACB's credit creation process not only supports the financial needs of
individuals and businesses, but also plays an important role in promoting national economic
growth. Credit from ACB helps businesses expand production, create jobs and improve people's
living standards. However, to ensure the stability and sustainability of the economy, establishing

13
https://www.sbv.gov.vn/webcenter/portal/vi/menu/trangchu;jsessionid=7Gq_iBOAxN0VDZebZtnLLhuNDYPKuCezDIU0LsdEjo-
Hyn9q1L2v!305569485!-
38923873?_afrLoop=5316832240042774#%40%3F_afrLoop%3D5316832240042774%26centerWidth%3D80%2525%26leftWidth%3
D10%2525%26rightWidth%3D10%2525%26showFooter%3Dfalse%26showHeader%3Dfalse%26_adf.ctrl-state%3Dwplll4b16_4
11
a reasonable monetary policy is extremely necessary. Proposing measures such as reducing
interest rates, reducing the required reserve ratio, increasing the money supply in unison and
encouraging foreign investment can help increase the money supply in the market, promote
economic growth and maintain financial stability. These efforts not only benefit ACB and its
customers, but also contribute to creating a developed and sustainable Vietnamese economy.

References
ACB. (không ngày tháng). ACB. Được truy lục từ https://acb.com.vn/

ACB. (không ngày tháng). Báo Cáo Tài Chính . Được truy lục từ acb: https://acb.com.vn/nha-dau-tu/bao-cao-tai-chinh

Anh, H. (2024, Dec 15). ACB có thêm 5 cổ đông lớn. Được truy lục từ vneconomy: https://vneconomy.vn/acb-co-them-5-
co-dong-
lon.htm#:~:text=C%E1%BB%A5%20th%E1%BB%83%3A%20CTCP%20%C4%90%E1%BA%A7u%20t%C6%B0,ACB%
2C%20chi%E1%BA%BFm%201%2C252%25%20v%E1%BB%91n

Bella. (2023, Mar 11). Even after Silicon Valley Bank’s collapse, WaMu’s is still the biggest. Được truy lục từ
washingtonpost: https://www.washingtonpost.com/business/2023/03/11/silicon-valley-bank-washington-
mutual-failure/

Blog. (2023, Oct 12). Khủng hoảng kinh tế 2008 và những tác động của nó tới thị trường Việt Nam. Được truy lục từ topi:
https://topi.vn/khung-hoang-kinh-te-2008.html

BNews. (2022, 08 05). Những bài học từ cuộc khủng hoảng tài chính châu Á. Được truy lục từ trungtamwto:
https://trungtamwto.vn/tin-tuc/21296-nhung-bai-hoc-tu-cuoc-khung-hoang-tai-chinh-chau-a

Bong bóng kinh tế là gì? Cách hình thành bong bóng kinh tế. (2023, 04 26). Được truy lục từ vietcap.com:
https://www.vietcap.com.vn/kien-thuc/bong-bong-kinh-te-la-gi-cach-hinh-thanh-bong-bong-kinh-te

Govement. (không ngày tháng). Được truy lục từ sbv.gov:

https://www.sbv.gov.vn/webcenter/portal/vi/menu/trangchu;jsessionid=C8vdcR_sfkGeR7TDcuy0nt8C5NTks5YNz
V-HKR981ZgvEEWkNGac!-
74295359!850412165?centerWidth=80%25&leftWidth=10%25&rightWidth=10%25&showFooter=false&showHe
ader=false&_adf.ctrl-state=wplll4b16_4&_

Huy, A. (2023, 02 12). Lạm phát ở đâu cao nhất thế giới. Được truy lục từ vneconomy: https://vneconomy.vn/lam-phat-
o-dau-cao-nhat-the-gioi.htm

Mến. (2022, 6 17). Vụ đại án Đông Á Bank: “Truy” trách nhiệm của nhân viên ngân hàng, công chứng viên. Được truy lục
từ vneconomy: https://vneconomy.vn/vu-dai-an-dong-a-bank-truy-trach-nhiem-cua-nhan-vien-ngan-hang-cong-
chung-vien.htm

Ngọc. (2021, 09 27). Các yếu tố ảnh hưởng đến rủi ro tín dụng của các ngân hàng thương mại Việt Nam. Được truy lục từ
tapchinganhang: https://tapchinganhang.gov.vn/cac-yeu-to-anh-huong-den-rui-ro-tin-dung-cua-cac-ngan-hang-
thuong-mai-viet-nam.htm

Thao. (2018, 12 11). Ảnh hưởng của rủi ro tín dụng đến hiệu quả hoạt động của ngân hàng thương mại Việt Nam. Được
truy lục từ hvnh.edu:
https://hvnh.edu.vn/medias/tapchi/vi/04.2019/system/archivedate/B%C3%A0i%20c%E1%BB%A7a%20TS.Hu%E1
%BB%B3nh%20Th%E1%BB%8B%20H%C6%B0%C6%A1ng%20Th%E1%BA%A3o.pdf

Vietstock. (không ngày tháng). Vĩ mô. Được truy lục từ vietstock.vn: https://finance.vietstock.vn/du-lieu-vi-mo
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