According to the Food and Agriculture Organization of the United States, there are 450–800 million malnourished people, mostly in less developed countries. Even India, a food producing country, is facing hunger.
According to the Asian Development Bank (ADB), Asia currently has about 900 million people (about 26%) living below the poverty line (income of 1 USD/day).
According to the annual report of the United Nations, currently about 35% of the world's population is living in a state of insufficient food supply.
The rate of population growth in recent years has been greater than the rate of food growth.
Limited land, erratic weather, increasingly severe natural disasters... Pests, locusts, rats... cause crop failures and losses.
The above situation makes people pay attention and accept Malthus ' theory : "the population will definitely exceed the world's food supply capacity".
From the above facts, it is necessary for humans to forecast and propose directions to solve the food problem for humanity in the future.

2.2.Contradictions in food production and supply
Food distribution is uneven between countries, within countries, and between families with different income levels. In developed countries, food production is high, population growth is slow, so food per capita increases every year, there is surplus food for storage and export. In developing countries, the opposite is true. In underdeveloped countries, there is rarely any food for storage or much of the food produced never reaches consumption.
In each country, there is a difference in living standards between rural and urban areas, highly developed and underdeveloped areas... Even in the countryside, where food is produced, after harvesting, people have to sell some of their products in exchange for other necessities, so the amount of food they consume is not much.
Malnutrition often occurs in developing countries. Developing countries, although lacking food, have to spend 65-70% of their average income on food. About 60% of the population in these countries are undernourished or malnourished (usually eat a lot of food, tubers and sugar). Malnutrition is high in these countries, especially in Africa. Developed countries, with excess food, only spend 20-25% of their average income on food. Food consumption is 5-50 times higher than in poor countries. Overnutrition is often a phenomenon.
"Green power" in food-surplus countries. This power has impacted the world's food production and supply as follows:

Developed countries use surplus food for aid and trade on the world market as an economic strategy, a powerful weapon... making some food-deficient countries dependent.

In recent years, due to increased food production, food prices on the world market have decreased, but along with this problem, rich countries, wanting to maintain food export prices, have reduced their cultivation areas...
3.Agricultural activities in the world
In the early stages of the scientific and technological revolution, people paid little attention to the food problem. Scientific and technological achievements were first applied to industry, then gradually spread to other fields, including agriculture. When the population increased rapidly beyond the ability to provide food, people paid attention and sought every measure to apply the achievements of the scientific and technological revolution to the development of agriculture and to solve food problems.

In industry, the product is the result of processing raw materials into a technological process.

In agriculture, products are created during the growth and development of plants and animals. It is a biological process, very complex and dependent on many difficult-to-control factors (weather, climate).
The main food crops used today are wheat, rice, corn and potatoes; fish, meat and animal products such as milk, eggs, cheese. Most meat comes from livestock such as cows, sheep, pigs, chickens, turkeys, geese, ducks, goats and buffalo.
Food used mostly is half of the world's rice and one-third of its fish. Poor people often eat more rice than meat.
Prospects in agricultural production:

Gradually replace traditional, conservative and individualistic agriculture with scientific farming methods.

Expanding cultivated areas: this policy has received attention from many countries, such as the reclamation in Siberia, the reclamation of the Amazon region in Latin America... In Vietnam, reclaiming land to the sea, forests, the Central Highlands, and renovating the Mekong Delta and the Red River Delta also increases the cultivated area.


Vigorously implement the Green Revolution in developing countries. There needs to be a reasonable agricultural product pricing policy.

There is a need for a reasonable population policy coupled with effective birth control.


Pest control at all stages: seed treatment, cultivation, storage. Agricultural improvement.

Efficient use of natural resources.


Directing research to the problem of synthetic food production. Foods with microbial genetic modification.
II. ENERGY DEMAND
Energy is needed for the human body (as well as other organisms) to develop and maintain body processes. Humans get energy from plants in the form of hydrocarbons, fats, and proteins. Animals cannot use these substances directly – in the animal body they are oxidized through respiration, releasing an energy-carrying compound called Adenosine Tri Phosphate (ATP). Body parts receive energy through ATP. When a glucose molecule is completely oxidized, 38 ATP molecules are released and stored in the cells:
C6H12O6 + 6O2 = 6CO2 + 6H2O + 38ATP
With the help of chlorophyll, plants process food by converting solar energy into chemical energy through photosynthesis. CO2 and H2O are the two main substances in this process. The simple equation of the photosynthesis reaction can be written as follows:
6CO2 + 6H2O C6H12O6 + 6O2
Plants can be used for food; wood (for building houses, making furniture); fuel to provide energy (firewood). Firewood is one of the most common sources of energy. Coal, oil, and natural gas are other common sources of energy, formed from plants and animals that lived long ago and were buried deep under suitable pressure and temperature for thousands of years. These are important fuel sources today.
Other sources of energy used by humans are electricity and nuclear energy. Electricity is produced from water, oil, coal or from atoms (atomic nuclei). The energy obtained from atomic nuclei is enormous.
Human beings need energy to survive and to improve their standard of living. Energy is needed in the production of food and feed, in industry, in transportation, in housing, etc. The level of energy use is related to
standard of living. Industrialized countries have higher standards of living and use more energy than developing countries.
III. NEEDS FOR SPACE AND TERRITORY
In addition to the needs of food, water, air and energy, all living things also need space to live. The space required by living things depends on many factors. The space required by plants and microorganisms is directly related to the availability of food, light, air and water.
For animals and humans, the need for space and territory depends on many factors.
Humans have a very clear concept of territory. Countries have borders, and border violations can lead to armed conflict and war. Agencies have walls and gates, and entry and exit follow certain regulations.
Geographic space refers to the limits of ownership of a person, an organization, or a nation or a number of nations. Geographic space can be as large as a country or as small as a front yard.
Housing is always an important need for people in social life. That is to say, the relationship between the house and the housing problem of people.
In primitive societies, people lived on nature, so houses were mainly caves, etc. to withstand the adverse factors of nature and wild animals. Gradually, people learned to transform nature to change the way of living, change the place of residence that today is called "housing". At first, houses were made of simple materials, simple structures and they have been constantly improved to have modern structures like today.
Housing issues are decided by people and depend on each component, age, occupation, number of people in each family, number of generations in each household, economic conditions, customs, social relations ... to design houses and reasonable spaces for parts of the apartment as well as the correlation between types of apartments in a house and between houses in the residential area. Therefore, at first glance, the need for housing seems simple, but in reality, it is very complicated in solving the relationships between houses and between houses in the residential area.
As early as the first century BC, the Roman architect Vitruvi, in his "Ten Books on Architecture", set forth the requirements of "durability, utility and beauty" for a house.
Nowadays, due to the development of society, science and technology in general and construction in particular, due to the development of new aesthetic perspectives, the demand for housing is increasing. Specifically, housing must be comfortable, suitable for the diverse life of people, ensuring rest, contact, entertainment and education of children. This requirement requires:

The house must have rooms that meet different living needs. The house must ensure technical and hygienic conditions for people, and must have additional spaces such as kitchen, bathroom, balcony, etc.

Housing must address the relationship between living conditions and the outside climate, ensuring hygiene, heat resistance, wind resistance, lighting, sound insulation, and moisture resistance.

Issues of ethnic customs and ethnicity are also focused on.

Housing is designed according to the user's occupational conditions and has corresponding appropriate requirements.

Housing must also meet aesthetic requirements.
IV. INDUSTRIALIZATION AND URBANIZATION
1. Industrialization
Industrialization is the process of transforming the economy from manual, backward production to production by machines with improved technology and techniques. The industrialization process profoundly changes the face of society and the natural environment.
The main content of the industrialization process in the world: equipping modern techniques and technology and thereby building a reasonable economic structure in all sectors of the national economy. The industrialization process in the world is associated with scientific and technological revolutions.
Before the 18th century, there were many significant achievements such as: using explosives in mining, using new lever mechanisms, pumps... These achievements caused significant changes to social production, but in reality the production method was still manual. Although labor productivity increased, there were no leaps in quality and quantity.
From the second half of the 18th century until now, there have been three scientific and technological revolutions:
1. The coal and steel revolution in the second half of the 18th century. Coal became an important energy source of special value. Iron and steel were also produced.
2. The electrical and mechanical revolution in the late 19th century. In 1870, Belgian Gramn invented the electric generator. Edison invented the electric light. About 8 years later, Diesel completed the internal combustion engine, which was more compact and powerful than the steam engine, running on gasoline extracted from petroleum. From then on, cars appeared, shipbuilding techniques completely changed, airplanes were born in the late 19th and early 20th centuries. From 1913 to 1960, world industrial output increased 4 times, electricity increased 20 times, aluminum 70 times.
The two revolutions brought about extremely important changes in human beings, increasing productivity and industrial output.
3. The scientific and technological revolution in the last decades of the century
20. The characteristics of this revolution are the development of the following industries: synthetic chemistry, electronics, telecommunications, automatic machinery and biology. The essence of this revolution is to innovate the production apparatus of the economy on the basis of using new technologies that are fundamentally different.
Scientific and technological revolutions have created favorable conditions for countries around the world to carry out industrialization.
2. Urbanization
Along with industrialization, urbanization is seen as an important aspect of social progress.
The large-scale urbanization trend on a global scale only began in the 19th century. In 1975, only about 1/3 of the world's population lived in urban areas. It is predicted that by 2025, this ratio will increase to 2/3. In the United States, in 1800, only 6% of the population lived in urban areas, by 1970, the number of people living in urban and suburban areas had reached 75% (PREhrlich, JPHoldren, 1973).
Most of the rapid urbanization is occurring in developing countries (3.5 million), while in developed countries it is increasing more slowly (91%). Cities with unexpected increases include Tokyo (27 million), San Paulo, Brazil (16.4 million), and Bombay, India (15 million).
Urban population (million people) | % of global population | |
Early 19th century | 29.3 | 3.0 |
Early 20th century | 224.4 | 13.6 |
1990 | 2,234 | 42.6 |
Predictions for the year 2000 | 2,854 | 46.6 |
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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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zt2a3gsnon-credit services, joint stock commercial bank
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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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Current status of production cost accounting and pricing of food and beverage products and services at DMZ Tourism Joint Stock Company - 11 -
State Nature in Production and Supply Activities -
Some solutions to promote food business activities at the General Food Exploitation and Supply Enterprise - 1 -
Commoditization of the Electricity Industry and Commercialization of Electricity Production and Supply in Power Companies.

Table 3. Urban population continues to increase rapidly
Some of the advantages of increasing urbanization: Urbanization is seen as a center of commerce and industry; Medical and political centers; High national income. The World Bank predicts that in developing countries, about 80% of future economic growth will take place in cities and towns; Improved health; Higher education; Improved quality of life along with many other advantages such as information, diversity, dynamism, and innovation.
Some disadvantages of urbanization:

Urban population density is at an unprecedented level.

The demand for land increased, leading to a gradual narrowing of the average area per capita;

The products released into the environment directly threaten health and quality of life. Mexico City, considered the most polluted home in the world, has a large number of children exposed to high levels of lead.

Air pollution has serious consequences such as the greenhouse effect; Ozone depletion, with concentrations three times higher than those set by the World Health Organization, forcing governments to restrict car use and technology to help clean the air. Recent studies have suggested that the main culprit of urban pollution is the burning of oil for heating and cooking.

Urban society is gradually divided into two groups: high-income people (rich people) and low-income people (poor people).

Lack of clean water.
Table 4. Water supply and urban sanitation conditions in 1994 in different areas
Area
Provide
Africa | Asia Pacific | Middle East | Latin America | |
Water (%) | 68.9 | 80.9 | 71.8 | 91.4 |
Sanitary conditions (%) | 53.2 | 69.8 | 60.5 | 79.8 |
3. Urbanization in Vietnam
The urbanization process corresponds to the initial stage of industrialization, so the level of urban development is still low. Vietnam has the lowest urbanization rate in the world. The ratio of urban population to the total population of the country has not changed much.
Table 5. Urban population by years
1965 | 1970 | 1989 | 1993 | 1994 | 1996 | |
15.1% | 17.3% | 21.4% | 20.3% | 19.5% | 19.9% | 21.4% |
1960
The urbanization process in Vietnam also follows the trend of rural people flocking to some of the country's major cities. Ho Chi Minh City alone accounts for 1/3 of the country's total urban population. If Hanoi and Ho Chi Minh City are included, the number will increase to over 50% of the total urban population.
V. OTHER HUMAN NEEDS
1.Learning needs
It is very necessary for every person to improve themselves and equip themselves with specialized knowledge. The need for learning is closely related to other needs such as industrialization and urbanization; intellectual resource development; and improving the quality of life.
Human's need to learn is to improve qualifications, find new things, create materials to serve life...
For countries, investing in education is a way to increase intellectual resources and is also a trend to popularize vocational training for young people and workers.
Currently, there are many forms of meeting people's learning needs:
(a) Type: There are currently 2 types of education

Mass education: to improve the intellectual level of the people.

Selective education: to meet the learning needs of students and also to meet the need to train talents for the country.
(b) The library system is networked… because the library is not only a place to provide knowledge for learners but also builds the necessary learning style in university: self-study and self-reading.
(c) Increase GDP; or other measures such as studying abroad, inviting foreign teachers...
2. Information needs
To satisfy the human need to grasp the world situation, sympathize and share, also to improve the level and understanding. The need for information is increasing and accompanied by increasingly modern means of response. To satisfy the increasing need for information of people, the forms of communication have changed over time such as the simplest by mouth, communication by sound, signs; the most modern and complex forms of today's electronics industry such as

![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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zt2a3gsnon-credit services, joint stock commercial bank
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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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