Bad debt management of small and medium enterprises at Vietnam Bank for Agriculture and Rural Development - Quang Binh branch

MINISTRY OF EDUCATION AND TRAINING HUE UNIVERSITY

UNIVERSITY OF ECONOMICS

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TRAN VAN TIEN

BAD DEBT MANAGEMENT OF SMALL AND MEDIUM ENTERPRISES AT THE BANK FOR AGRICULTURE AND RURAL DEVELOPMENT OF VIETNAM BRANCH

QUANG BINH PROVINCE

MAJOR: ECONOMIC MANAGEMENT

CODE: 8 34 04 10

MASTER'S THESIS IN ECONOMICS

SCIENTIFIC INSTRUCTOR: ASSOCIATE PROFESSOR, DR. MAI VAN XUAN

HUE, 2018

COMMITMENT

I hereby certify that the data and research results in this thesis are genuine and have never been used to defend any academic degree. I also certify that all assistance in the preparation of this thesis has been acknowledged and the information cited in the thesis has been disclosed.

AUTHOR

Tran Van Tien

ACKNOWLEDGEMENTS

I would like to sincerely thank the teachers of the University of Economics - University of

Hue has enthusiastically taught me during the past school years.

I would like to sincerely thank the Board of Directors and colleagues at Agribank Quang Binh for creating conditions and helping me during my studies and completing my thesis.

I would like to especially thank Associate Professor Dr. Mai Van Xuan for his dedicated guidance.

complete this thesis.

STUDENTS

Tran Van Tien

THESIS SUMMARY

Student's name: TRAN VAN TIEN

Major: Economic Management; Training orientation: Application

Code: 8 34 04 10; School year: 2016-2018

Scientific supervisor: Associate Professor, Dr. MAI VAN XUAN

Topic name: BAD DEBT MANAGEMENT OF SMALL AND MEDIUM ENTERPRISES AT THE BANK FOR AGRICULTURE AND RURAL DEVELOPMENT OF VIETNAM, QUANG BINH PROVINCE BRANCH

1. Purpose and objects of research

Analyze the current situation of bad debt management of small and medium enterprises at Agribank Quang Binh, thereby providing solutions to better manage bad debt of small and medium enterprises at Agribank Quang Binh.

The research object of the topic is bad debt management of enterprises.

Small and medium enterprises at Agribank Quang Binh.

2. Research methods used

Data collection method: Secondary data; Primary data

Data processing and analysis methods: Using descriptive statistics, comparison methods, structural analysis methods, experts...

3. Main research results and conclusions

- The author has systematized theoretical and practical issues on debt management.

bad for small and medium enterprises...

- Analysis of the current status of bad debt management of small and medium enterprises in

Agribank Quang Binh.

- Based on research results to propose solutions for bad debt management

Small and medium enterprises at Agribank Quang Binh are better.

Author

Tran Van Tien

LIST OF ABBREVIATIONS

ADB Asian Development Bank

Vietnam Bank for Agriculture and Rural Development

Agribank

Agribank Quang Binh

Male

Vietnam Bank for Agriculture and Rural Development

South - Quang Binh province branch

CBTD Credit Officer

CIC National Credit Information Center of Vietnam

State-owned enterprises State-owned enterprises

SMEs Small and Medium Enterprises

DPRR Risk Reserve

VAT Value Added Tax

Cooperative Cooperative

JBIC Japan Bank for International Cooperation

KHDN Corporate customers

KH HSX&CN Customers Production households and individuals

Business results Business results

State Bank of Vietnam

Commercial Bank Commercial Bank

Agriculture Rural

Credit institutions

TSBĐ Collateral

VCCI Vietnam Chamber of Commerce and Industry

VCB VIETCOMBANK

RRTD Credit Risk

INDEX

COMMITMENT i

ACKNOWLEDGEMENTS ii

THESIS SUMMARY iii

LIST OF ABBREVIATIONS iv

TABLE OF CONTENTS v

LIST OF TABLES viii

LIST OF CHARTS AND DIAGRAMS ix

LIST OF CHARTS ix

LIST OF MAPS ix

PART 1: INTRODUCTION 1

1. Urgency of the topic 1

2. Research objective 2

3. Research object and scope 2

4. Research method 2

PART II: RESEARCH CONTENT 4

CHAPTER 1: SCIENTIFIC BASIS OF BAD DEBT MANAGEMENT FOR SMALL AND MEDIUM ENTERPRISES AT COMMERCIAL BANKS 4

1.1. Overview of credit for small and medium enterprises at Commercial Banks 4

1.1.1. Concept and characteristics of small and medium enterprises 4

1.1.2. Concept and characteristics of credit for small and medium enterprises at Commercial Banks 10

1.1.3. The role of bank credit for small and medium enterprises 12

1.2. Bad debt management for small and medium enterprises at commercial banks

................................................................ ................................................................ ..............................15

1.2.1. Basic issues on bad debt in credit activities of Commercial Banks 15

1.2.2. Bad debt management in credit activities of Commercial Banks 21

1.2.3. Bad debt management experience of some domestic commercial banks.

................................................................ ................................................................ ..............................30

CHAPTER 1 CONCLUSION 34

CHAPTER 2: CURRENT STATE OF BAD DEBT MANAGEMENT FOR ENTERPRISES

SMALL AND MEDIUM ENTERPRISES AT AGRIBANK QUANG BINH 35

2.1. Overview of Agribank Quang Binh 35

2.1.1. The formation and development process of Agribank Quang Binh [4] 35

2.1.2. Organizational structure of Agribank Quang Binh [3] 35

2.1.3. Business performance of Agribank Quang Binh from 2014 to 2016 [3] 38

2.2. Current status of bad debt management for small and medium enterprises at Agribank

Quang Binh 44

2.2.1. Indicators related to bad debt for small and medium enterprises in

Agribank Quang Binh period from 2014-2016 44

2.2.2. Bad debt management activities have been applied to small businesses.