Banking was once one of the most popular professions among college graduates as it was believed to offer both high income and stability. That is, until the national economic recession hit.

Now, to slow down the trend to get rid of bank staff, the Ministry of Education and Training has asked schools not to open new faculties in banking and finance from this year.

According to the Bank Training and Consultancy Institute, in four years, the number of college graduates in finance and banking who will fail to find jobs might reach 13,000.

The institute also predicted that this year, about one third of an estimated 32,000 fresh graduates from banking and finance institutes would be either unemployed, or would have to find work in other fields.

During the past two years, the recession has caused many companies, including banks, to struggle. This has led to many staff cuts.

Nguyen Anh Tuan, who formerly worked as corporate customer relationship officer at a branch of Techcombank in Ha Noi, said that the pressure to achieve high targets had forced him to leave the bank.

Tuan said he quit his job realising that the target of attracting corporate customers was too hard to achieve. He was not the only person who left because of similar pressures.

He said, however, that cutting down on staff was now a common trend among most banks as they are struggling to cope.

Nguyen Thi Nga, a bank officer in Ha Noi, said there were several reasons for the situation.

Since last year, the State Bank of Viet Nam's policy was to prevent banks from opening new branches and offices.

There were also pressure to save costs that had led to restructuring and mergers of different units.

Recent financial statements released by many banks reveal that they plan further cuts in human resources, either by reducing the staff numbers or by reducing salaries and bonuses.

Techcombank's financial report for the first quarter of the year showed that the number of staff had been slashed by more than 1,000 since last year.

The Maritime Bank told shareholders this year that it planned to cut staff by nearly 700.

ACBank's financial statement for the first quarter of the year also revealed that the cost of human resources during the first three months was 72 per cent of that for the same period last year.

Vietcombank, a leading State-owned bank, is no exception. The bank's first quarter financial statement showed that the total costs for human resources had been cut by more than 12 per cent compared to the same period last year, while the cost for severance allowances had increased five-fold.

According to Manpower Viet Nam, a human resource consulting firm, many banks are giving priority to enhancing the efficiency of their operations and raising productivity at the lowest cost possible to cope with economic difficulties.

The company said cutting staff and salaries followed staff restructuring at several banks, describing this as a natural process, especially after a period of staff growth.

However, Manpower warned that banks risked losing essential staff it they did not have a good plan.

It also noted that banks were still trying to find talented staff for senior positions.

The strategy to raise productivity and save costs also meant banks were becoming demanding towards job applicants.

Nguyen Thuy Linh, who recently graduated from the Ha Noi – based Banking Academy, said she was not optimistic about finding a good job soon because banks currently required a lot from their applicants, including work experience and good soft skills.

"I am young and without experience, so it is difficult to negotiate a good salary. I might have to compromise given the current difficult period," Linh said.

Source: VNS