The physical infrastructure includes thousands of hotels, hundreds of travel companies, and increasingly rich and diverse tourism services to create a combined strength sufficient to welcome and serve millions of international tourists a year.
1.2 Contents of international tourism business activities.
Tourism business activities are very diverse and rich with the target audience being tourists, so tourism business activities include: Travel business, accommodation business, tourist transportation business and tourism information service business.
Travel business: Is a type of business that deals with signing transactions with domestic and foreign tourism business organizations to build and implement tourism programs sold to tourists.
Travel business is divided into: International travel business and domestic travel business, depending on the functions and tasks of each travel company.
International travel business is the organization, construction and implementation of tourism programs for foreign tourists, overseas Vietnamese entering Vietnam and Vietnamese tourists traveling abroad.
Domestic travel business is the organization, construction and implementation of tourism programs for domestic tourists traveling within the territory of Vietnam and foreigners living and working in the territory of Vietnam to travel to all parts of the country.
Tourist accommodation business: Is a type of business that organizes, welcomes, provides accommodation, food, entertainment and sales to tourists.
In the overall tourism business, accommodation business is a public service.
service to tourists so that they can complete their chosen tour program.
Types of accommodation facilities in Vietnam include:
+ Hotel
+ Villa
+ Tourist village
+ Tents, camps
In addition, in the accommodation business, it is necessary to provide services such as: Entertainment services, food services...
- Tourist transportation business: Is a type of business that helps tourists move by means such as: airplanes, cars, trains, ships, boats, cable cars and other means such as: horse-drawn carriages, boats, cyclos...
- Tourism information service business.
Tourism information service business includes many different forms: The simplest form is tourism brokers who find addresses, information about prices... Higher forms are consulting services in legal fields, organizing tourism investment arguments, information on customer sources, customer needs... Organizing propaganda, advertising tourism fairs, promoting tourism development, helping companies sign tourism economic contracts, or tourism investment projects.
2. CONCEPT AND CLASSIFICATION OF BUSINESS PERFORMANCE.
2.1. Concept.
Efficiency from the perspective of system theory is a category that reflects the need for time-saving laws. This law operates in many modes of social production, so this category also exists in many modes of social production. Wherever and whenever, people want to operate most effectively.
In economic analysis, economic efficiency is reflected through economic and technical indicators determined by the comparative ratio between output resources and input resources of the social production system, reflecting the level of resource use and creating benefits to achieve socio-economic goals. Economic efficiency is understood as the level of use of available resources to achieve the highest business results at the lowest costs.
Unlike other national economic sectors, when talking about tourism efficiency, we must consider both aspects: economic efficiency and social efficiency. Social efficiency demonstrates the will to contribute to protecting society and improving the health of working people.
thereby increasing the life expectancy and working capacity of the people. The social efficiency of tourism is also reflected in the level of social contribution, the working capacity of the residents in the tourist area, improving social awareness, and the level of environmental resource protection.
Economic efficiency: is reflected in the level of utilization of production factors and tourism resources within a certain period of time to create a volume of high quality goods and services to satisfy the needs of tourists at the lowest cost and to protect the environment.
In the normal production and business sector, economic efficiency represents the correlation between production results and production costs. As for tourism business activities, the standard of economic efficiency is achieved through the goal of ensuring the highest income (in both foreign and local currency) with the lowest cost of living labor and materialized labor (under economic conditions that are profitable for the industry and the national economy).
2.2. Classification of international tourism business efficiency.
Depending on different research contents and purposes, people divide international tourism efficiency into different types.
* Economic efficiency and social efficiency.
* Immediate and long term effects.
- Immediate effectiveness: evaluates the effectiveness of serving a certain number of tourists in a certain period of time (usually less than 1 year) and earning a certain amount of foreign currency (or hinge) greater than the cost. This indicator is often applied to businesses with low service capacity, quick capital recovery and unstable operations.
- Long-term effectiveness: Similar to immediate effectiveness, but determined over a longer period of time (usually over 1 year). This indicator applies to large-scale enterprises, stable operations and the ability to expand the market.
*Overall efficiency and part efficiency.
- Divisional efficiency: is the efficiency determined on each customer market that the company serves in the overall markets.
- Overall efficiency: is the sum of the partial efficiencies, is the efficiency calculated for the entire system.
- In the scope of this article, we are only interested in the first classification, that is, efficiency is divided into economic efficiency and social efficiency. All economic components participating in social production must pay attention to the above two criteria. Depending on each economic component, the proportion of these two criteria is different. For private enterprises, limited liability companies, and foreign companies, economic efficiency is more important than social efficiency, while for state-owned enterprises, social efficiency is more important.
Economic efficiency is determined through a comparison between business performance indicators (revenue) and the costs incurred to achieve those results.
The concept of business efficiency can be expressed as follows:
+ Relatively.
Business efficiency: H= DT
CF
In there :
H is business efficiency.
DT is the revenue of business activities (usually in 1 year). CF is the cost necessary to carry out business activities.
+ Relatively.
H = DT - CF
For state-owned enterprises, talking about business efficiency means talking about economic efficiency and social efficiency. Based on the business goals and strategies of that industry, even if there is little, no or loss in economic efficiency, but in return still achieves social efficiency, then it is still considered business efficiency.
Thus, the effectiveness of international tourism business in particular or business effectiveness in general is considered on the overall table of two economic and social aspects and calculated according to the formula.
H q = H kt + H xh
In which: H q is business performance
H kt is economic efficiency H xh is social efficiency.
2.3. The need to improve the efficiency of international tourism business.
Improving business efficiency is not the concern of any individual, any business or any economic sector, but the concern of all economic sectors in the national economy. Achieving business efficiency also marks a step forward in economic development.
In the context of our country's current economy, implementing the industrialization and modernization process, enhancing measures to improve business efficiency is even more important. The common development of all economic sectors will contribute to bringing Vietnam's economy closer to integration with the economies of countries in the region and the world. All innovations are truly meaningful when and only when they increase business results, thereby increasing business efficiency. Business efficiency also reflects the quality of the entire management work and ensures the highest results of business activities.
With international tourism activities, business efficiency reflects the level of organization, management, and development strategies of a country for tourism activities as well as the development of international tourism businesses.
We have known the role of international tourism in the national economy. Therefore, we understand more clearly the importance of improving the efficiency of international tourism business. Tourism development will stimulate the development of other economic sectors such as transportation, communications, hotels, service sectors including scenic spots, historical relics and traditional industries. Tourism development also contributes to improving the international balance of payments, increasing foreign currency revenue and creating jobs for workers. The efficiency of tourism business also plays an important role.
important in rebuilding the economy, improving machinery and equipment, and business means.
Achieving business efficiency in international tourism also means saving resources and raw materials for society, which is the basis for businesses to be able to expand production, increase customer service capacity, increase prestige and expand international relations.
For workers, labor efficiency (salary and social benefits) is a driving force that stimulates workers to work enthusiastically and confidently, and to pay more and more attention to work efficiency, their responsibilities to the company, and to contribute more and more to the company's development.
Thus, the effectiveness of international tourism business plays an important role for tourism enterprises and the country. To achieve high efficiency, the company must complete the goals and directions set out in each period that are suitable for the company and suitable for the country's context.
3. Indicators for evaluating the effectiveness of international tourism business.
The economic efficiency index of international tourism activities is built on the basis of basic production factors and is expressed as follows:
- Profitability indicators: show the level of cost (or capital) utilization in the process of serving customers, or in other words, profit is the percentage between profit and cost (or capital).
Profit is expressed by the following formula:
d = L x 100 C
d = L x100 V
In which: d - profit (%) calculated by cost or capital L - Profit
C - Cost V - Capital
This indicator shows us that revenue depends on 2 factors:
Net income per dollar and expenses (or capital).
How much profit does a 1% increase in cost (or capital) generate?
The index allows to accurately assess the source of the enterprise's profit, on that basis the enterprise can propose solutions to adjust costs (or capital) appropriately.
- Revenue profitability ratio
H = L
D
In which: L - Profit
D - Revenue
The indicator allows to determine how much profit the business will earn per 1 dong of revenue.
- Overall efficiency index
In there :
E = D
C
E - business efficiency of the enterprise calculated by cost D - revenue
C - Cost
This indicator evaluates the production and business capacity of an enterprise to see how much revenue each dong of cost the enterprise will earn.
If 0 < E < 1, the business is losing money, the revenue does not cover the expenses. The business needs to re-evaluate the expenses, possibly due to purchasing too much equipment, increased costs for tourism programs, skyrocketing prices on the world market while the company's costs do not increase... the business needs to adjust the business plan accordingly.
If E > 1, the business is profitable. Continue to maintain operations as before, if possible, expand customer service capabilities such as opening additional services, investing in equipment and means of tourism service.
In addition to the above indicators, businesses also use a number of other indicators.
other.
- Average revenue per tourist:
D bq = D
n
In which: D bq - Average revenue per tourist.
D - Revenue
n - total number of tourists
- Average productivity per worker
K = D
m
In there :
or K = L
m
K - average labor productivity calculated by revenue (or profit).
D - Revenue
m - Total number of employees
- To be able to evaluate the correlation between advertising costs and revenue in determining the effectiveness of international tourism business, we use the following linear regression function:
y = a + bx (in time).
According to this equation we have: x: advertising cost. y: revenue function
a: impact on revenue due to factors other than advertising. b: impact of advertising costs on revenue.
a, b are calculated as follows:
b =
x
2 = ⎯ x 2 - ⎯ x 2
xy xy
2
x
a = ⎯ y - b . ⎯ x
For example: There is a company with the following data table:
Year
n - 1 | n | n + 1 | |
Advertising expenses | 10 | 20 | 24 |
Revenue | 400 | 450 | 500 |
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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 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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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
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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Improving the competitiveness of Vietnam's tourism industry in the period of international economic integration - 12 -
Current Status of Foreign Currency Business Development in the International Market of Vietnamese Commercial Banks
