Achievements of Lam Dong Tourism Industry

- The propaganda and advertising work to introduce the image of Lam Dong tourism is still quite weak. Information about Lam Dong tourism is known to tourists mainly through the introduction of relatives and travel agents.

- The number of domestic and international visitors to Lam Dong are mainly traditional customers, domestic visitors are still concentrated in Ho Chi Minh City, the Eastern and Southwestern regions... International visitors come mainly from France, the US, the Netherlands... Other markets are still quite modest.

- The average spending of tourists is quite high, thereby contributing significantly to the socio-economic development of the locality as well as the whole country.

2.1.9. Achievements of Lam Dong tourism industry

Since its establishment and development, Lam Dong province's tourism industry has achieved encouraging results, which are reflected in the following main aspects:

Firstly , tourism revenue has grown strongly over the years; by the end of 2010, tourism revenue reached 4,500 billion VND, this is a large number contributing to the economic development of the locality as well as the whole country.

Second, it contributes significantly to solving employment and improving people's material and spiritual life, ensuring social order and security.

Third , the infrastructure directly serving tourists has been invested in and expanded, accommodation facilities are increasingly of better quality; communication systems, public transportation, airports, banking systems, electricity, water, etc. have been invested in and expanded, thereby gradually meeting the needs of domestic and foreign tourists.

Fourth , tourism development planning has made significant progress; tourism staff have received more attention in training and retraining, gradually meeting the requirements of international integration...

2.1.10. Limitations and causes of Lam Dong tourism industry

- Diversifying capital sources for investment in tourism development still has many limitations: in recent years, attracting capital sources for investment in local economic development has been of interest to Lam Dong provincial authorities at all levels, but has not yet been truly effective, capital attraction policies still have certain limitations, and the results are not high.

- Regarding investment in building technical infrastructure for the tourism industry: technical infrastructure has not really met the requirements of the tourism industry, first of all the transportation system, hotels, restaurants, clean water supply system... the reality shows that although the road traffic system has been upgraded and repaired, the repairs are still patchwork so the road surface is still quite bad, causing difficulties for vehicles to move. The railway line from Thap Cham to Da Lat has been proposed for restoration, but so far it has not been implemented, reducing the attractiveness of a part of tourists who want to try the unique features of the cog railway system, admire the scenery when the train cars pass spectacularly...

The hotel and restaurant system has been built quite a lot by organizations and individuals, especially in the Da Lat area. However, most of the hotels and restaurants have not met the needs of tourists, most of the hotels are still very small, the equipment is still poor, the service style is not good. Many holidays and Tet in Lam Dong province often have a shortage of accommodation, tourists have to rent houses, even have to travel dozens of kilometers to find a place to stay. The restaurant system in Lam Dong has not been invested properly; currently there is no restaurant big enough, qualified enough, with hygienic food to serve tourists when there are large numbers...

Planning and investing in the development of clean water supply systems still has certain limitations. Many areas have rich and diverse tourism resources that attract tourists, but still do not have a clean water supply system or lack clean water, which greatly affects the lives of local people as well as tourists.

Investment in means of transport has made significant progress, the number of vehicles serving tourists is greater, the quality of vehicles is better. However, the number of vehicles with good quality

The high volume of traffic still cannot meet the travel needs of tourists, especially the routes from the Southwest, Central Highlands and Central provinces to Lam Dong.

- Lam Dong province's tourism products and services are not really diverse, most of the tourism products are still associated with scenic spots, historical and cultural relics... Although many exploitation points have been opened at scenic spots and historical and cultural relics, the restoration and upgrading have not received due attention. Many scenic spots and historical and cultural relics have been seriously degraded, causing a loss of sympathy from many domestic and foreign tourists, and the quality of service is still limited.

- The tourism market has not been expanded : the number of tourists to Lam Dong has grown quite well in recent years, this is the effort of the authorities at all levels as well as those working in tourism at home and abroad, but the tourism market of Lam Dong province is still concentrated in some traditional markets, many potential markets have not been exploited effectively.

- Coordination between sectors in tourism management, state management, and tourism business management still has many weaknesses: the situation of luring and oppressing tourists still occurs quite commonly in hotels, motels, and in many places selling specialties and souvenirs; theft, begging, street vending, etc. at tourist attractions occurs every day; many hotels and restaurants do not register guests with the authorities; on holidays and Tet, prices of hotels and food and beverage items are raised very high, this is the consequence of the lack of synchronization between related units such as: state management agencies for tourism, culture and information, police and local authorities, etc. Many scenic spots, historical and cultural relics, forest resources, etc. are increasingly seriously degraded, the cause of which is deforestation, littering, and unsynchronized planning, seriously affecting many tourism resources in the province.

- The level of tourism staff has not met the development requirements of the tourism industry: currently, there are very few tour guides working in Lam Dong tourism industry who are knowledgeable about culture, national history and

The history of the nation in the world, lack of knowledge of geography or foreign language proficiency to communicate with international visitors is still quite modest. Many tour guides do not even know who first discovered Da Lat, what day Da Lat was liberated... or when guiding foreign visitors, they cannot introduce them to understand the meanings of relics and scenic spots. There are also many problems in culture in behavior and communication that need to be overcome...

2.2. CURRENT STATUS OF BANK CREDIT FOR LAM DONG TOURISM INDUSTRY IN PAST TIME

2.2.1. Overview of the history of formation and development of commercial banks in Lam Dong province

On March 26, 1988, the Council of Ministers issued Resolution No. 53/HDBT on converting the banking model from a one-tier to a two-tier banking system. After Decree 53/HDBT and two ordinances were issued, the banking system in Lam Dong province was established, converting the one-tier banking model to a two-tier banking system, including: State Bank of Lam Dong branch, headquartered in Da Lat city, Lam Dong province; Lam Dong Investment and Development Bank branch, headquartered in Da Lat city, Lam Dong province; Lam Dong Agricultural Bank branch, headquartered in Da Lat city and all districts and towns in Lam Dong province; and Lam Dong Industrial and Commercial Bank branch, headquartered in Da Lat - Lam Dong. After more than twenty years of being separated into a two-tier banking model, along with the economic development in the area, credit institutions in Lam Dong province have continuously expanded their operations, on the one hand promoting the mobilization of local capital and lending investment, on the other hand expanding other banking services. By the end of 2010, there were 14 bank branches in operation in the province, of which 13 were commercial bank branches, including 4 branches of joint stock commercial banks and 9 branches of state-owned commercial banks, namely: Vietnam Bank for Agriculture and Rural Development, Vietnam Foreign Trade Bank, Vietnam Bank for Investment and Development, Vietnam Joint Stock Commercial Bank for Industry and Trade and

Mekong Delta Housing Development Bank (including 4 branches of commercial banks that have been equitized but the State still holds over 50% of the capital); 1 branch of the Bank for Social Policies (CSXH); 1 branch of the Central People's Credit Fund; 18 grassroots People's Credit Funds; 3 transaction offices of 2 branches of commercial banks outside the area, Dong A Dak Lak (2 transaction offices) and Nha Trang International (1 transaction office); 61 transaction offices of bank branches and credit funds in the area, of which the grassroots People's Credit Funds alone have 7 transaction offices.

Table 2.10: Network of credit institutions in Lam Dong province.

Unit : branch, transaction office

Bank name

Level 1 Branch	Level 2 Branch	Transaction office	Total
NHNo & PTNT	2	14	16	32
NH D	2		4	6
NHCT	3		7	10
NHNT	1		2	3
Other credit institutions	6		28	34
Total	14	14	57	85

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Source : State Bank of Lam Dong Branch [28]

2.2.2. Current status of mobilized capital and centrally regulated capital

2.2.2.1. Current status of capital mobilization in the locality

In recent years, in order to gradually adapt to the period of international economic integration, thereby properly performing the function of a commercial bank which is to borrow to lend, commercial banks in Lam Dong province have proposed many solutions to attract capital sources such as:

- Commercial banks have expanded their transaction networks in densely populated areas and economically developed areas.

- Gradually innovate transaction style to create sympathy for customers coming to transact.

- Initially deployed a number of new banking products and services, developed card products as well as launched many promotional programs...

- Diversify forms of capital mobilization from the population, increasingly paying more attention to the issue of mobilization interest rates.

Commercial banks in the province are aware that "mobilizing maximum local capital before borrowing capital from higher-level banks". Thereby, the mobilized capital of commercial banks in the province has achieved quite a growth, specifically:

Mobilized capital classified by deposit term : total mobilized capital on-site of commercial banks in Lam Dong province as of December 31, 2010 reached

12,260 billion VND, an increase of 3,721 billion VND compared to 2009, an increase of 43.6%, of which: demand deposits reached 2,091 billion VND, an increase of 404 billion VND compared to 2009, an increase of 23.94%; term deposits under 12 months reached 9,017 billion VND, an increase of 2,879 billion VND compared to 2009, an increase of 46.9%; term deposits of 12 months or more reached 1,152 billion VND, an increase of 438 billion VND compared to 2009, an increase of 61.34%. Compared to 2005, the total capital mobilized on the spot by commercial banks in Lam Dong province increased quite high, specifically: by December 31, 2010, the total capital mobilized increased compared to 2005 by 9,532 billion VND, an increase of 349.4%, of which: demand deposits increased by 1,229 billion VND, an increase of 142.58%; deposits with a term of less than 12 months increased by 7,619 billion VND, an increase of 545%; deposits with a term of 12 months or more increased by 684 billion VND, an increase of 146.2%.

On average, in the period from 2005 to 2010, the average capital growth rate of commercial banks in Lam Dong province was 24.58%, of which: the average growth rate of demand deposits was 15%; the average growth rate of term deposits under 12 months was

28.44% and the average growth rate of mobilized capital from 12 months or more is 18.06%.

Through statistics, we can see that demand deposits and term deposits under 12 months account for a fairly high proportion, accounting for 90.06% of total mobilized capital, of which capital mobilized under 12 months accounts for the highest proportion at 73.55%, followed by demand deposits accounting for 16.51% of total mobilized capital and term deposits over 12 months only accounting for 9.94% of total mobilized capital.

Table 2.11. Mobilized capital classified by deposit term of commercial banks in Lam Dong province.

Unit : billion VND

Target

Year
2005	2006	2007	2008	2009	2010
Total mobilized capital	2,728	3,700	4,992	6,560	8,539	12,260
Non-term deposits	862	1,008	1,418	1,134	1,687	2,091
Term deposits under 12 months	1,398	2,253	2,909	5,077	6.138	9,017
Term deposits of 12 months or more	468	439	665	349	714	1,152

Source : State Bank of Lam Dong Province Branch[28]

Mobilized capital by economic sector : in 2010, deposits of economic organizations increased by 2,296 billion VND compared to 2005, an increase of 252.3%; deposits of residents increased by 7,236 billion VND, an increase of 398.02%. Compared to 2009, in 2010, deposits of economic organizations increased by 771 billion VND, an increase of 31.66%; deposits of residents increased by 2,950 billion VND, an increase of 48.33%. If calculated on average for the whole period from 2005 to 2010, deposits of economic organizations increased by 20.65%, deposits of residents increased by 26.16%.

Table 2.12. Capital mobilized by economic sector of commercial banks in Lam Dong province.

Unit : billion VND

Target

Year
2005	2006	2007	2008	2009	2010
Economic organization	910	1,143	1,503	1,923	2,435	3.206
Population	1,818	2,557	3,489	4,637	6.104	9,054

Source : State Bank of Lam Dong Branch [28]

Unit: billion dong

14000

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10000

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2005 2006 2007 2008 2009 2010

Figure 2.2: Capital mobilized by commercial banks in Lam Dong province (2005-2010 period)

Mobilized capital classified by currency of commercial banks in Lam Dong province: domestic and foreign currency mobilized capital of commercial banks increased steadily over the years; in 2010, total mobilized capital of commercial banks reached 12,260 billion VND, of which domestic currency mobilized capital reached 11,173 billion VND, accounting for 91.13% of total mobilized capital, foreign currency mobilized capital reached 1,087 billion VND, accounting for 8.87% of total mobilized capital. Compared to 2005, total mobilized capital increased by 9,532 billion VND, 4.494 times higher than in 2005, on average in the period from 2005 to 2010, the average growth rate of total mobilized capital of commercial banks was 24.58%.

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