Company image to tourists, promotion on mass media, especially newspapers and television.
- Diversify company forms and travel products.
+ Establish multiple companies for each market segment and each tourism product to specialize the product and improve service quality for each tourist group. This both protects the brand well and maximizes market share.
+ Deepen specialization in business by separating into tour operators, wholesalers, and retail travel agents. Thanks to that, foreign travel agencies create a large customer collection system with a streamlined management system, maximizing operating costs, creating conditions to reduce product prices, increasing competitiveness in attracting customers and further expanding market share.
+ Diversify products from low to high-end, always exploit new tours and new types of tourism to maintain and develop new sources of customers.
+ Diversify target markets, exploit domestic tourist sources, stimulate tourists through strong advertising and public relations activities. Promote domestic tourism through lucky draw programs or organize special tours and attractive prices.
+ Develop shopping, entertainment, beauty care, resort, medical treatment, cultural tourism, and wild nature tourism programs to replace the usual sightseeing tours while tourists are still hesitant to go to crowded tourist attractions and places that are not highly safe.
1.3.2. Lessons applied in Vietnam
Vietnam's tourism situation in recent years has achieved great progress, but there are still many characteristics that travel businesses must consider in the process of business operations.
Vietnam's legal framework for tourism management is not yet strict enough, so there are still many foreign travel agencies that borrow the legal status of domestic companies to do business regardless of State regulations, causing unhealthy and unfair competition; at the same time, many domestic travel businesses operate without professionalism, do not respect customers, so they do not care about service quality but mainly use price dumping tricks to compete for customers.
The legal framework for cooperation between travel businesses to develop tourism business in a professional direction is still lacking.
On the business side, due to the recent transition to a market economy, the staff working in tourism is still lacking in quantity, has not received formal training, and lacks practical experience in the international business environment.
Investment of each enterprise is very limited, seriously limiting competitiveness, especially in the international tourist market.
Regarding the market, because people's income has just begun to increase, the demand for tourism has just begun to develop. Therefore, although the Vietnamese tourism market is expanding, it is actually quite small.
From the reality of tourism business in Vietnam, especially travel tourism, combined with the experience of some typical foreign travel companies, we can point out at least three lessons to apply in the travel tourism business in Vietnam. These are:
Firstly, Vietnamese travel agencies must know how to take advantage of simple, “manual” business techniques such as direct sales, mail sales, approaching customers through personal relationships, associations, etc. to suit the actual situation of our country, while boldly updating modern marketing methods such as advertising through mass media, the Internet, e-commerce, international cooperation, participation in foreign fairs and conferences, etc. to quickly move towards the professionalism of the international business environment.
Second, soon find a way to coordinate multilaterally between: travel agencies, travel agencies and tourism service providers such as airlines, transportation, hotels, restaurants, shopping stores, tourist attractions and entertainment venues...
Third, create smooth coordination between travel businesses, state tourism management agencies, and the press and television in promotion and marketing work both in the international and domestic markets.
CHAPTER 2: COMPETITIVENESS OF BEN THANH TOURISM SERVICE COMPANY
2.1 GENERAL INTRODUCTION OF BEN THANH DVDL COMPANY
2.1.1. History of formation and development
Business name: Ben Thanh Tourist Service Company English transaction name: Ben Thanh Tourist Service Company Abbreviation: BenThanh Tourist
Head office: 4-6 Ho Huan Nghiep, Ben Thanh ward, District 1,
Ho Chi Minh City
1989 is considered the year when Vietnam began to implement the open door policy, foreigners began to know Vietnam as a new destination for many different reasons such as sightseeing or looking for business investment opportunities. In order to serve the increasing tourism demand while in Ho Chi Minh City there were only a few travel companies, Ben Thanh Tourism Service Company was established under Decision No. 741/QD-UB dated December 9, 1989 of the Ho Chi Minh City People's Committee on the basis of merging a number of economic units of District 1 including: District 1 Food and Beverage Company, District 1 Trade Center, District 1 Distribution Station and a number of restaurants and hotels transferred by the City's Food and Hotel Department.
The company was granted a decision to establish a State-owned enterprise under Decision No. 216/QD-UB dated December 11, 1992 of the People's Committee of Ho Chi Minh City.
According to the State's policy on the establishment of Corporations, on December 26, 1997, Ben Thanh Corporation was established on the basis of District 1 Import-Export and Service Company as the core, including 9 member units which are state-owned enterprises of District 1. Ben Thanh Tourism Service Company became an independent accounting member enterprise of Ben Thanh Corporation.
Since its establishment, Ben Thanh Tourist has continuously developed and grown, expanded its business activities domestically and internationally, and participated in many domestic and international tourism organizations and associations. Up to now, Benthanh Tourist has been an official member of the following associations and organizations:
- Vietnam Chamber of Commerce and Industry (VCCI).
- Saigon Tourism Association (SATA).
- Japan Association of Travel Agents (JATA).
- Pacific Asia Travel Association (PATA).
- Americas Travel Association (ASTA).
2.1.2. Business functions
Services-tourism: Organizing domestic and international tours, tourist transportation, airline agents, tourism services, hotels, restaurants, dance clubs, karaoke.
Trade-Import-Export: trade-import-export business, general trade activities with a network of shops serving tourists. Production, food processing and production of souvenirs serving tourists and export. Buying and selling machinery, equipment, spare parts, supplies, raw materials and consumer goods.
Remittances: remittance services, foreign currency exchange. Payment of all types of credit cards. Import-export business of gold, silver, and precious stones.
Investment: Domestic investment and joint venture with foreign countries. Office rental for domestic and foreign customers.
Employment services: Labor export services, employment settlement services.
In which, the main business function of the company is Tourism. The fields of Trade - Import - Export, Investment, Remittance, and employment services are the business fields supporting and serving the Tourism field.
2.2 COMPETITIVENESS STATUS OF THE COMPANY
2.2.1. Resources
2.2.1.1 Human resources
Table 2.1: Company's human resources by age
Unit: person
Age
18-30 | 31-40 | 41-50 | 51-60 | Total | |
Quantity | 386 | 199 | 155 | 27 | 767 |
Proportion | 50.4% | 25.9% | 20.2% | 3.5% | 100% |
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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 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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div.maincontent .s40 { color: black; font-family:Times New Roman, serif; font-style: normal; fo](https://tailieuthamkhao.com/uploads/2022/06/06/dich-vu-phi-tin-dung-tai-ngan-hang-thuong-mai-co-phan-dau-tu-va-phat-8-1-120x90.png)
![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 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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div.maincontent .s40 { color: black; font-family:Times New Roman, serif; font-style: normal; fo](data:image/svg+xml,%3Csvg%20xmlns=%22http://www.w3.org/2000/svg%22%20viewBox=%220%200%2075%2075%22%3E%3C/svg%3E)
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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Research on current status and improvement of cropping system on coastal land of Thanh Hoa province - 19 -
Current Status of Foreign Currency Business Development in the International Market of Vietnamese Commercial Banks -
Hoang Thanh Phuc (2009), "Research on Current Status and Solutions for Developing Scattered Forestry Planting in Thai Nguyen Province", Master's Thesis, -
Current Status of Implementation of Export Risk Management Principles of Truong Thanh Wood Industry Group Joint Stock Company.
(Source: Ben Thanh DVDL Company)
The total number of employees of the company is 767 people, of which the age from 18-40 accounts for 76.3%, so the company has a lot of potential in terms of labor force, because workers at this age have the following characteristics: high productivity, quick to absorb new things, dynamic in work, long-term service to the company, convenient for training to improve skills.
Table 2.2: Company's human resources classified by level - field of operation
Unit: person
Expertise Level
Commerce | Hotel - Restaurant | Travel services | Manage | Add | Proportion | |
Master | 1 | 2 | 3 | 0.4% | ||
University | 11 | 27 | 55 | 58 | 151 | 19.7% |
College | 4 | 3 | 7 | 0.9% | ||
Intermediate | 4 | 12 | 10 | 15 | 41 | 5.3% |
Below intermediate | 19 | 472 | 64 | 10 | 565 | 73.7% |
Total | 34 | 511 | 134 | 88 | 767 | 100% |
(Source: Ben Thanh DVDL Company)
In terms of professional qualifications, the number of employees with university degrees or higher accounts for 20.1% of the total number of employees in the whole company, of which 68% of managers have university degrees and above, 13.8% of employees with university degrees or higher are concentrated in the tourism service sector accounting for 8.2%, hotels - restaurants accounting for 4%, and commerce accounting for 1.6%.
The company's leadership team has many years of experience, trained through practice combined with training and fostering to improve management skills. However, there is still a lack of managers at the level of development requirements.
The direct service staff such as security guards, kitchen staff, waiters, room service staff, etc. have mostly been professionally trained. Those who directly contact customers such as tour guides, receptionists, etc. mostly know a foreign language at level B or higher. However, the number of workers who know two or more foreign languages is still small and the majority of workers know common foreign languages such as English and French, while the number of people who know other foreign languages such as German, Korean, etc. is very small, thus making it difficult to research and expand the international travel market.
2.2.1.2 Loan
As of December 31, 2004, the total capital of the company was: 262,884,745,000 VND, however, this capital is mainly potential because up to 62% of the capital is from the State capital allocated in the form of land use rights (163 billion) for joint ventures with foreign countries, but currently due to objective circumstances, the joint venture projects have not been implemented, so this land allocation capital has not been effective. Therefore, the capital for the company's business needs is still limited, affecting the company's competitiveness and investment in expanding its business network.
Table 2.3: Size, asset structure and capital of the company as of December 31, 2004
Unit price: 1,000 VND
ASSET
VALUE | SOURCE OF FUNDING | VALUE | |
A. Current assets and short-term investments | 53,279,277 | A. Liabilities | 72,000,205 |
1. Money | 3,567,841 | 1. Short-term debt | 52,020,644 |
2. Short-term financial investment | 2. Long-term debt | 18,044,017 | |
3. Accounts receivable | 18,293,188 | 3. Other debts | 1,935,544 |
4. Inventory | 28,704,698 | ||
5. Other current assets | 2,713,548 | ||
B. Fixed assets and long-term investments | 209,605,467 | B. Equity capital | 190,884,539 |
1. TSCÑ | 17,953,073 | 1. Business Capital & Fund | 189.888.866 |
2. Long-term financial investment | 174.175.489 | 2. Other funding sources and funds | 995,673 |
3. Long-term deposits and bets | 575,287 | ||
4. Long-term prepaid expenses | 1,576,727 | ||
Total assets | 262,884,745 | Total capital | 262,884,745 |
(Source: Financial report of Ben Thanh Service Company)
2.2.1.3 Facilities
The company currently manages 35 premises, of which 27 premises were transferred fixed assets by the City People's Committee, 3 premises were purchased by the company itself, 1 was rented from the City's housing management company, 2 were rented from the District 1 housing management company, 2 were assigned by the state to form joint ventures with foreign partners. All of the above premises are located in District 1, right in the city center, with extremely favorable locations for business, this is a huge advantage compared to competitors. In addition, the company also rents a number of other premises outside District 1 for business and network development, including:
9 | |
- Hotel system: | 3 (154 rooms) |
- Restaurant - discotheque - karaoke system: | 14 |
- System of stores and shopping centers: | 10 |
- Warehouse system: | 4 |
Despite the advantage of location, most of the company's premises are quite small in scale, with inadequate and outdated facilities and equipment, unable to meet development requirements.
Regarding transportation, the company is equipped with 14 vehicles, of which 5 vehicles (1 15-seat vehicle, 2 6-seat vehicles, 2 4-seat vehicles) are used for daily business trips, the remaining fleet consists of 9 vehicles.
to transport tourists including 4 45-seat cars, 1 30-seat car, 2 25-seat cars, 2 16-seat cars. This fleet of cars has not actually met the demand for transporting tourists. One of the investments in the tourism sector is investing in tourist transport vehicles. In the past, the unit's transport vehicles were still lacking and old, and needed to be strengthened and renewed.
2.2.1.4 Brand reputation
In the context of increasingly deep international and regional economic integration, fierce competition and more and more foreign products, goods and services entering the Vietnamese market have forced businesses to create their own brand in the market. Famous brands not only have great competitiveness in the market but also have other comparative advantages such as being easily accepted by customers, not spending much time and money on promotion... The reputation of the brand has a direct impact on customers when choosing travel programs or services when deciding to buy. In addition, the difference between branded products and unbranded products has made the price of each product of the same type but different brands higher. The benefits of branded businesses are often clearly shown in the price of products and services provided to customers. This really brings advantages to businesses because in the same business process, reputable businesses often bring much higher economic efficiency.
Realizing the importance of brand as a tool and competitive weapon, the company always focuses on building and strengthening the brand. With the motto "customer is king - service quality above profit", over the years the company has achieved very positive business results and become a reliable address for many tourists and international partners. Ben Thanh tourism brand is now known by many domestic and foreign tourists as one of the leading travel agencies in Vietnam, achieving the Topten title for 6 consecutive years (1999-2004) and 3 consecutive years achieving the title of "domestic travel agency with satisfaction" voted by consumers by Saigon Marketing Newspaper. These achievements are due to the efforts to rise up and strive continuously for many years by the company's Board of Directors together with the staff. Therefore, it must be affirmed that Ben Thanh Tourism brand is a prestigious brand, with the strength that many other units in the tourism industry aspire to achieve. Because of this advantage, the ability to compete and attract tourists to Ben Thanh tourism is increasing, economic organizations all want to cooperate with the company to do business and show off their reputation.
2.2.2 Business situation
2.2.2.1 About the product
Unlike other products, tourism products sold to customers are tourism programs, which are mainly a combination of natural resources.
However, human resources along with customer service facilities such as transportation, food, accommodation, ... and service attitude. Thus, the nature of tourism is not the purchase and sale of normal consumer products but the purchase of "spiritual goods". Therefore, to improve competitiveness, businesses must build unique, attractive, quality tourism products that meet the needs of tourists and have their own features compared to other businesses to have a competitive advantage in the tourism market.
Realizing that importance, the company constantly improves the quality and diversifies tourism products, meeting the increasingly diverse and rich needs of tourists as well as constantly researching, creating, and building new and unique products to create its own competitive advantage.
In the field of international tourism, in addition to pure tourism and resort, the company has built its own unique features - the cross-Vietnam tour program (trekking) with increasingly improved tour quality has attracted a significant number of international visitors. In addition, there are specialized tours to learn about culture and ethnicity, tours for veterans to visit old battlefields, bicycle tours, hunting tours, etc.
In the field of domestic tourism, the tour programs built by the company are flexible and can be changed according to the requirements of each customer group such as picnic programs, campfire activities for students, summer travel programs for teachers, vacation programs for employees, weekend travel programs... The company also searches for and opens new tour products such as going to the forest and down to the sea, discovering new emotions, visiting ecological areas... unique and suitable for new trends.
In particular, grasping the potential and development trend of MICE tourism, the company quickly moved a tourism office to establish a Conference and Event Center to exploit this potential market. This is one of the first tourism centers in the city to exploit the MICE market. Although newly established, the center has successfully organized many large conferences, attracting a significant number of tourists.
2.2.2.2 About the market
Asian international tourist market
The company's key customer markets are the Netherlands, Japan, Germany, France, and the United States. The company's potential markets are China, ASEAN, Korea, and Russia. Up to now, the company has established relationships with 38 companies from 23 countries around the world.