Assessment of the Current Status of Credit Expansion for Ecotourism Development at the Bank for Agriculture and Rural Development of Vietnam

Therefore, customers need to improve their situation if they want to continue receiving credit from the Bank. Because solving the problem of capital financing for customers who currently have a credit relationship with the Branch is often much more favorable than for customers who are not granted continued credit and have to start over to find financing from elsewhere.

Credit refusal: Credit refusal has an adverse effect on MRTD. The more credit refusals, the more MRTD is reduced. This result is also evidence that contributes to confirming the theory mentioned in the above section. The standardized regression coefficient of the credit refusal component (β = - 0.269) at the sig. = 0.005 shows that when the credit refusal factor increases by one unit, the MRTD level will decrease by 0.269 units. Therefore, customers need to base on the Branch's required standards to adjust and supplement accordingly. Conversely, the Branch also needs to make recommendations and resolve customers' problems during the credit consideration process. If these standards are ensured, the problems resolved will contribute to increasing MRTD.

Difficulty in credit transactions: The difficulty in credit transactions component has a negative impact on MRTD. This result is also a proof to confirm the theory mentioned in the above section. The standardized regression coefficient of the difficulty in credit transactions component (β = - 0.148) at the value of sig. = 0.005 shows that when the difficulty in credit transactions increases by one unit, the level of MRTD will decrease by 0.148 units. Therefore, if there are few difficulties in credit transactions, the ability of MRTD of the Branch will increase.

The results obtained from the quantitative study show that there are five components that affect MRTD. To implement MRTD, managers should focus on solving the problems in the following order: (1) Credit price, (2) Credit service quality, (3) Continued credit granting, (4) Credit refusal, (5) Credit transaction difficulties.

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2.5. Assessment of the current status of credit expansion for ecotourism development at the Bank for Agriculture and Rural Development of Vietnam - Ben Tre Branch in the period 2010 - 2015

2.5.1. Achievements

In the period from 2010 to 2015, in general, the credit for developing tourism at the Branch has expanded in terms of customer scale, credit turnover, and credit balance. The Branch achieved the above expansion due to the following reasons:

- Before the race for deposit interest rates of commercial banks in 2010 reached its peak, there were commercial banks mobilizing with interest rates of 18%/year. To stabilize the interest rate level, on March 3, 2011, the State Bank of Vietnam set the ceiling interest rate at 14%/year. The ceiling interest rate was continuously adjusted down in the following period. The branch also had to follow the instructions, so the deposit interest rate was adjusted down, thereby leading to a decrease in credit interest rates. Because the cost of using credit capital of the Bank decreased, people tended to borrow more capital to invest in developing local tourism, so the credit activities of the branch were also expanded.

- The capital mobilization situation at the Branch during this period continuously increased. In 2011, it increased by 24.2% compared to 2010, in 2012, it increased by 32.98% compared to 2011, in 2013, it increased by 11.05% compared to 2012, in 2014, it increased by 14.16% compared to 2013, and in 2015, it increased by 15.58% compared to 2014. We can see that the mobilized capital increased, so it can meet the capital demand to expand credit for customers.

- People's demand for credit capital also increases because this place has natural conditions and human resources favorable for eco-tourism development, the transportation system is increasingly invested in to reduce travel time from Ho Chi Minh City and other provinces to Ben Tre, attracting domestic and foreign tourists to visit and travel by Ho Chi Minh City - Trung Luong highway, investing in the construction of Rach Meu bridge connecting Tien Giang with Ben Tre, the road system within the province is also expanded and

upgrade. Therefore, the demand for investment capital in transport infrastructure, accommodation facilities, food and beverage services, entertainment, etc. to serve tourism development here is high, leading to an increase in credit activities at the Branch.

- In addition to the above factors, credit quality such as staff service attitude, quick loan processing, flexible repayment time... are also important factors determining MRTD ability at the Branch. Because when customers need capital to invest in developing DLST, customers have the right to choose which bank has better service quality to apply for a loan.

- The situation of bad debt for credit activities for tourism development is decreasing, which is a sign of customers' ability to repay and the Bank's debt collection work is getting better. From there, the ability to continue to provide credit to old customers of the Branch is increasing, so the credit expansion activities of the Branch also increase.

2.5.2. Limitations and causes

Credit activities for tourism development at the Branch during the period from 2010 to 2015 have expanded, however, the expansion rate is not high although the demand for investment capital for this type of tourism in the province and some other provinces in the Mekong Delta region is very large, due to the following main reasons:

- Originating from customers:

+ The management capacity of the leader does not meet the job requirements. Ecotourism owners are mainly individuals or households without basic knowledge of economics and business management, so it is difficult for them to come up with a feasible production and business plan or plan a specific business strategy, so it is not convincing enough for the bank. This partly limits the ability to access credit of units investing in ecotourism development.

+ No collateral or insufficient collateral to meet loan needs at the Bank because the collateral is mainly agricultural land or garden land with low value.

+ The financial situation report is not complete, not transparent, and not clear due to the following two main reasons: accounting work has not been given due attention and the ideology of not valuing the timely and complete implementation of reports to monitor business activities of the leadership department. Therefore, it does not meet the requirements and therefore is not eligible for loans from the Bank.

- From the bank:

+ The capital supply for granting credit in the form of customer deposits at the Branch increased but at a decreasing rate during the period from 2010 to 2015. This caused MRTD at the Bank to increase but slowly because the main capital use activity at the Branch is granting credit to customers.

+ Customers' capital needs for developing tourism are mainly medium and long-term loans. Due to the nature of the industry, the Bank is required to provide medium and long-term credit, but the Bank's medium and long-term mobilized capital accounts for a very low proportion of the total mobilized capital, so it cannot meet the customers' capital needs.

+ The new green tourism development credit policy mentioned in Directive 03 of the State Bank requires commercial banks and other credit institutions to increase the proportion of credit granted to individuals or businesses that need capital support for investment to preserve natural resources and not cause environmental pollution. This has not been specifically regulated in the credit policy at the Bank, which also affects the ability to expand credit activities at the Branch to develop ecotourism.

+ There is no specific credit process for granting credit for tourism development. Therefore, there needs to be a specific credit process guide if MRTD wants to develop tourism locally.

+ Normally, the purpose of the customer's loan is to renovate the orchard, coconut garden, raise livestock, grow crops, repair houses, etc. Then use the family's orchard to open for visitors, buy fruit, serve cuisine, play traditional music, etc. to make a profit, so it requires the appraiser to have a deep understanding of this type to more accurately appraise the financial capacity of the production and business plan/Investment project to properly assess the customer's ability to repay debt in the future. If the customer has a feasible production and business plan but the appraisal result is not feasible, then the decision is not to grant credit. Therefore, the MRTD ability of the Branch is reduced.

+ Banks set more barriers for individuals (households) in accessing loans such as: financial reports must be clear and transparent, must have collateral, good financial capacity,... The majority of customers borrowing capital to develop ecotourism are individuals (households). Many customers want to find capital in the form of bank loans, but not all subjects can access it. Most large, reputable, branded tourism businesses can meet the requirements of banks.

Chapter 2 Conclusion

The entire chapter 2 studies the credit situation, the development of DLST, then analyzes the MRTD situation, evaluates the achievements, limitations and causes of limitations in MRTD developing DLST at the Branch. Study the factors affecting MRTD developing DLST by surveying credit officers, owners/managers of DLST and using quantitative methods to measure the credit price factor that has the strongest impact on MRTD at the Branch, credit quality factors, credit rejection, continued credit granting and credit transaction difficulties also affect MRTD at the Branch. From finding out the factors affecting MRTD, we will continue to propose solutions for MRTD to develop DLST at Agribank Ben Tre in chapter 3.

Chapter 3: SOLUTIONS TO EXPAND CREDIT FOR ECO-TOURISM DEVELOPMENT AT THE BANK FOR AGRICULTURE AND RURAL DEVELOPMENT OF VIETNAM - BEN TRE BRANCH

3.1. Orientation for ecotourism development and expansion of credit for ecotourism development by 2020

3.1.1. Orientation for ecotourism development to 2020

Implementing the Vietnam Tourism Development Strategy to 2020, with a vision to 2030, on January 22, 2013, the Prime Minister issued Decision No. 201/QD-TTg approving the Master Plan for Vietnam Tourism Development to 2020, with a vision to 2030. This is a document that outlines the fundamental direction of the tourism industry with a long-term vision according to the viewpoint, objectives and solutions of the Strategy, which is to develop "green tourism" linking tourism activities with the preservation and promotion of resource values and environmental protection. The whole country develops tourism into 7 regions, each of the 7 regions has the potential to develop eco-tourism with the following typical products:

+ The Northern Midlands and Mountains region includes 14 provinces and cities: Hoa Binh, Son La, Dien Bien, Lai Chau, Yen Bai, Phu Tho, Lao Cai, Tuyen Quang, Ha Giang, Bac Kan, Thai Nguyen, Cao Bang, Lang Son and Bac Giang. Directions for exploiting special products:

. Travel to the source, visit and learn about national cultural identity; high mountain ecosystems, caves, midlands.

Mountain vacation; weekend getaway.

. Sports, discovery.

Border tourism associated with border trade .

+ The Red River Delta and Northeast Coast region includes 11 provinces/cities: Hanoi, Vinh Phuc, Bac Ninh, Hai Duong, Hung Yen, Thai Binh, Ha Nam, Ninh Binh, Nam Dinh, Hai Phong and Quang Ninh. Direction of exploitation of typical products:

Cultural tourism associated with the Red River rice civilization .

. Island tourism.

. MICE tourism (Meetings, Incentives, Conferences, Exhibitions).

Rural agricultural ecotourism .

. Festival and spiritual tourism.

Weekend travel, high - end entertainment.

+ The North Central region includes 6 provinces and cities: Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien - Hue. Direction for exploiting typical products:

Visiting heritage and historical and cultural sites .

. Sea and island tourism.

Visit and study the ecosystem.

Border tourism is associated with border gates .

+ The South Central Coast region includes 8 provinces and cities: Da Nang City, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan. Direction of exploiting typical products:

. Sea and island tourism;

. Tourism to visit the heritage system relics combined with tourism to study cultural identity (Cham culture, ethnic minorities in the Eastern Truong Son;

. MICE tourism (Meetings, Incentives, Conferences, Exhibitions).

+ The Central Highlands region includes 5 provinces: Kon Tum, Gia Lai, Dak Lak, Dak Nong, Lam Dong. Two typical product exploitation directions:

. Central Highlands cultural tourism; visit and learn about the cultural identity of Central Highlands ethnic groups.

Mountain resort; visit and study the highland ecosystem associated with products such as flowers, coffee, and elephants .

Border tourism associated with border gates and development triangles.

+ The Southeast region includes 6 provinces and cities: Ho Chi Minh City, Ba Ria - Vung Tau, Dong Nai, Binh Duong, Binh Phuoc, Tay Ninh. Two typical product exploitation directions:

. MICE tourism (Meetings, Incentives, Conferences, Exhibitions).

Cultural tourism, festivals, entertainment .

. Beach resort tourism, weekend entertainment tourism, sports tourism, shopping tourism.

Border tourism associated with border gates .

+ The Mekong Delta region includes 13 provinces and cities: Can Tho city, Long An, Dong Thap, An Giang, Kien Giang, Ca Mau, Bac Lieu, Soc Trang, Ben Tre, Tra Vinh, Vinh Long, Tien Giang, Hau Giang. Two typical product exploitation directions:

. Ecotourism in gardens and wetlands.

. Sea and island tourism.

Cultural tourism, festivals .

Therefore, in the Master Plan for Ben Tre tourism to 2015, with a vision to 2020, Ben Tre tourism development must be consistent with Vietnam's tourism development plan, based on the main types of tourism: eco-tourism, cultural-historical tourism and entertainment tourism. Promote socialization of tourism development, focusing on building technical infrastructure for the tourism industry, constantly improving quality, diversifying products, building unique and attractive tourism products to attract visitors, especially international visitors.

3.1.2. Orientation for expanding credit for ecotourism development until 2020

According to Decision No. 403/QD-TTg National Action Plan on Green Growth for the period 2014 - 2020 of the Prime Minister dated March 20, 2014, there are 66 activities, of which activity No. 44 regulates the development of ecotourism specifically: Perfecting institutions, encouraging investment, training human resources to develop ecotourism with the aim of creating jobs, increasing income for people, while improving the quality of life.

Assessment of the Current Status of Credit Expansion for Ecotourism Development at the Bank for Agriculture and Rural Development of Vietnam - Ben Tre Branch

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