1.1.4.2. DLBV's objectives
- Increase the contribution of tourism to the economy and the environment.
- Improve and ensure social equity in development.
- Improve the quality of life of local communities.
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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services".
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Basic Conditions for Implementing Solutions -
General Comments and Assessment of Basic Conditions of the Study Area -
Principles of Ensuring Compliance with the Legal System -
Principles of Ensuring Systemicity, Inheritance and Development
- Meet the maximum and increasing needs of tourists.
- Ensure the stability and quality of the environment is maintained.

1.1.4.3. Principles of sustainable tourism
- Use tourism resources (natural, social, cultural, ...) to create a solid foundation for long-term tourism development.
- Minimize negative impacts to reduce costs, restore environmental degradation, and improve tourism quality.
- Maintain and develop ecological diversity (natural, cultural, social) to strongly attract tourists and promote tourism development.
- Tourism planning must be placed in the overall socio-economic planning of the country and locality.
- Tourism must aim to support the local economy (stable development, growth, improving living standards).
- Attracting the participation of local communities, bringing benefits to both locality, tourism businesses and tourists (using local labor, participating in restoration, ...).
- Train a team of tourism business staff with appropriate qualifications to implement solutions to improve the quality of tourism products.
- Must provide tourists with full and responsible information to enhance their understanding, respect and responsibility.
- There must be convincing explanations about the benefits for businesses, local authorities and tourists.
Thus, sustainable tourism is not a tourism trend but a tourism development platform of the times.
1.1.5. Tourist attractions
Researchers and legislators have included tourist attractions in the Tourism Ordinance signed and promulgated by the President in February 1999, according to which "a tourist attraction is a place with attractive tourism resources and the ability to attract tourists".
Thus, according to the Tourism Ordinance, “tourist spot” is a relatively open concept, not limited in terms of territorial scale. At the same time with the above concept, “tourist spot” can include: resource spots, places with attractive tourism resources and the ability to attract visitors, which may not yet be put into exploitation, functional spots – places where tourism resources have been exploited and put into service for tourists’ needs.
However, the above concept still leaves open the issue of “planning” for tourist destinations. In the case of planned tourist territories, the difference with the concept of “tourist area” defined in the Tourism Ordinance, according to which “Tourist area is a place with tourism resources… planned for investment and development to satisfy the diverse needs of tourists…” is unclear. In real life, these two concepts are often used unconsciously without clear distinction.
1.1.6. Tourist area
It is a place with attractive tourism resources with advantages in natural tourism resources, planned and invested in development to meet the diverse needs of tourists, bringing about economic, social and environmental efficiency.
Conditions for recognition as a tourist area
Tourist areas that meet the following conditions are recognized as national tourist areas:
- Has particularly attractive tourism resources with advantages in natural landscapes, capable of attracting a large number of tourists.
- Have a minimum area of one thousand hectares, including the area necessary to build works and tourist service facilities suitable to the landscape and environment of the tourist area; in special cases where the area is smaller, the central state management agency for tourism shall submit it to the Prime Minister for consideration and decision.
- Have synchronous infrastructure and technical tourism facilities, capable of serving at least one million tourists a year, including accommodation facilities and necessary tourism services suitable to the characteristics of the tourist area.
Tourist areas that meet the following conditions are recognized as local tourist areas:
- Has attractive tourism resources, capable of attracting tourists.
- Has a minimum area of two hundred hectares, including the area needed to build tourist service facilities and works.
- Have infrastructure, tourism technical facilities, accommodation facilities and necessary tourism services suitable to local characteristics, capable of serving at least one hundred thousand tourists per year.
1.2. Basic conditions and principles to ensure sustainable tourism development
1.2.1. Basic conditions for sustainable tourism development
For the tourism industry to develop sustainably, the following conditions are needed:
1.2.1.1. Diversity of tourism resources
For natural resources, associated with it is a type of ecotourism, requiring high biodiversity.
Biodiversity includes ecological diversity, genetic diversity and environmental diversity.
species.
Ecological diversity is expressed in the difference of symbiotic types that create
Living organisms and their relationships with each other and with abiotic factors that directly or indirectly affect life such as: land, water, terrain, climate, etc. These are ecosystems and the habitats of one or several species of organisms (according to the biodiversity convention adopted at the Rio de Janeiro summit on the environment).
For human resources including historical relics, revolutionary relics, cultural and architectural works... including traditional cultural values.
The system needs to be preserved and conserved so that each tourist destination has its own unique features, creating diverse appeal for the tourism industry.
1.2.1.2. Understanding of tourism
Tourism workers, especially operators, tour guides and local people, must be very knowledgeable – this is also one of the principles of Sustainable Tourism.
Understanding here includes understanding tourism resources (natural ecological characteristics, community culture), the potential impact of tourism activities on resources - environment and foreign languages. This is very important and has a great influence on the effectiveness of tourism activities. To do so, it is necessary to have a truly effective education strategy, especially for the local community about tourism knowledge and environmental protection. Because more than anyone else, only they can be aware of the benefits they enjoy and protecting the tourism environment is protecting their own lives. They are also the ones who convey that knowledge to tourists most effectively. From there, all forces participating in tourism, indigenous people together protect tourism resources and the tourism environment, which is an important condition for tourism to develop sustainably.
Traditional tourism operators are often only interested in profit and have no commitment to the conservation or management of natural areas and the environment. They simply provide tourists with an opportunity to learn about natural and cultural values before these opportunities are changed or lost forever. In contrast, to achieve sustainable tourism, tourism operators must collaborate with managers of natural reserves, local communities and environmental protection forces with the aim of protecting natural, human, local cultural and environmental values in the long term; improving life, enhancing common understanding between local people and tourists.
1.2.1.3. Ensuring infrastructure and technical facilities for tourism
Transportation: ensure adequate quality of safe travel for tourists to tourist destinations.
guest.
Communication: ensure that tourists can contact their families and relatives. Electricity and water: fully provided for tourism activities and daily life of tourists.
Accommodation: quality and suitable for the local tourism environment. Other tourism services: dining, shopping, etc. must be guaranteed on a fresh basis.
living, food safety, price must be reasonable.
1.2.1.4. Satisfying tourists' need to improve their knowledge
Satisfying and enhancing tourists’ understanding of nature and local culture is often difficult, but it is a necessary need for the long-term survival of the tourism industry. Therefore, services to satisfy tourists are of second importance only to the conservation of what they visit.
1.2.2. Principles to ensure sustainable tourism development
1.2.2.1. Using resources sustainably
The conservation and sustainable use of natural, cultural and social resources is essential and is a lever for long-term business development.
All economic activity involves the use of natural resources (natural and human), many of which are non-renewable, non-renewable, and non-substitutable.
Sustainable development advocates leaving to future generations a stock of natural resources no less than that enjoyed by previous generations. Preventing irreversible changes to irreplaceable environmental assets, preventing the loss of the ozone layer and species, and the destruction of essential ecosystem functions, which also means taking into account the services provided by the natural environment, which are not given away as free goods but must be included in the costs of economic activity.
The same principles apply to human resources. Local cultures, ethnic traditions, livelihoods and the land on which people depend for their livelihoods must be respected.
The sustainable use, conservation and protection of these resources is vital for their sound global management and also makes positive business sense.
1.2.2.2. Reducing overconsumption and waste will avoid costly environmental damage restoration costs and contribute to the quality of tourism.
Excessive consumption leads to global environmental destruction and is contrary to sustainable development. This type of consumption is characteristic of industrialized countries and is spreading rapidly across the globe.
The wasteful and unnecessary consumption of environmental resources and other resources has caused pollution and cultural and social disruption. Ignoring or not managing waste from projects that are implemented without environmental impact assessment causes long-term environmental degradation that is difficult to overcome. Therefore, there must be sanctions for the above projects.
1.2.2.3. Maintain diversity
Maintaining and enhancing natural, cultural and social diversity is essential for sustainable tourism development and is the lifeblood of the tourism industry.
Diversity in natural, cultural and social environments is a strength that provides resilience to mutations and stresses. Diversity and survival avoid over-reliance on one or a few sources of survival support.
Sustainable development advocates leaving to future generations a diversity of both natural and human life no less than that inherited by previous generations, recognizing that changes in the biological, cultural and economic environments are inevitable outcomes of any form of development.
The World Conservation Strategy (1980) emphasized the need to conserve genetic diversity. Since then the aim has been broadened to include diversity of political, socio-economic and cultural structures.
1.2.2.4. Integrating tourism into the planning process
Integrate tourism development and, within the framework of national and local strategic planning, conduct environmental impact assessments to increase the long-term viability of the tourism industry.
Conflicts of interest, overuse of resources and overdependence can be avoided or reduced by integrating one sector with another based on two principles: long-term strategic planning and environmental impact assessment.
The strategic planning framework allows for the assessment of the impacts of development on economic, social and environmental conditions at both local and regional levels in the short, medium and long term.
Environmental impact assessment, carried out during the planning and implementation stages of a project, will minimise harm to the natural, economic and social environment. Environmental impact assessment includes the direct and indirect impacts of humans on flora and fauna, land, water, climate and landscape; and the interactions of these factors with human resources. However, this assessment has only taken place mainly in the European Community, most other countries are still in the pilot phase.
1.2.2.5. Support local economy
Tourism that supports local economic activities, taking into account environmental values and costs, protects the local economy and avoids environmental damage.
Economic growth is reflected in the growth of Gross National Product (GNP), which is expressed in the value of goods on the market; the value of services and environmental resources is not counted, leading to environmental destruction.
Sustainable development, on the one hand, satisfies human needs and welfare while maintaining and improving the environment. Attention to economic function and environmental impact assessment of investment projects is very important.
important
The core of sustainable economic development is independence, increasingly
development and diversification. It requires a reconfiguration of the market system to rationalize services in terms of environmental and broader social costs of production.
Economic activities that care about the environment also care about the interests of local people.
1.2.1.6. Strictly comply with regulations on capacity
In order to minimize the impact of tourism activities on tourism resources and the environment, and achieve sustainable tourism, it is necessary to organize with strict compliance with regulations on "carrying capacity". The concept of "carrying capacity" is understood from four aspects: physics, biology, psychology and sociology. All of these aspects are related to the number of visitors at each time in the same location.
From a physical perspective: “capacity” is understood as the maximum number of visitors that an area can receive. This is related to the minimum standards of space for each visitor, as well as for their living needs.
From a biological perspective, “carrying capacity” is understood as the maximum number of visitors, which if larger will exceed the environment’s capacity to receive, causing ecological impacts due to tourist activities and the facilities they use. This capacity will be reached when the number of visitors and the facilities they use begin to affect the living habits of wild animals, causing ecosystem degradation, damage to human resources and the gradual loss of traditional values.
From a psychological perspective: Capacity is understood as the limit of the number of visitors that if exceeded, visitors themselves feel uncomfortable because of the crowding and their activities are affected by the presence of other visitors. In other words, the level of satisfaction of visitors drops below normal due to overload.
From a social perspective: carrying capacity is the limit on the number of tourists at which the negative impacts of tourism activities on the cultural - social and economic - social life of the area begin to appear. The normal life of the local community

![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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