2.2. CURRENT STATUS OF FABRIC PRODUCTION DEVELOPMENT IN LUC NGAN DISTRICT
2.2.1. History of lychee development in Luc Ngan
- Period 1960 - 1982: From the beginning of 1960, there were some households such as Mr. Trinh, Mr. Chieu (Chu town) planted 30 - 60 lychee trees, after 10 - 15 years, they had
for stable yield. It is found that lychee trees grown in Luc
Ngan grows well, the quality is not inferior to Thanh Ha litchi, the products are accepted by the market. Since the 1980s, canning factories in Hanoi, Vinh Phuc, Son Tay have come to Luc Ngan to buy litchi for
canned for export. In addition, fresh lychee is also consumed in
big cities like Hanoi, Ho Chi Minh City and the southern provinces. Thereby, people realized that growing lychee trees brought higher economic efficiency than other crops, from which the movement of growing lychee among the people began spontaneously. By 1982, the whole district had planted 42 hectares of lychee, with an estimated yield of 100 tons. Thus, this can be considered an experimental research phase, initially determining that lychee is
Plants suitable for Luc Ngan natural conditions.
However, the climate and soil of the district
- Period 1982 - 1998: This is the period of shifting the agricultural economic structure towards rapidly increasing the area of lychee trees, gradually reducing the area of food crops and forestry trees. To do that, the District People's Committee has effectively implemented the policy of granting long-term land use rights to farming households. During this period, 23,000 hectares of bare hills and mountains have been allocated to households. At the same time, the credit policy is also strongly oriented towards investment for lending households.
capital to develop agricultural production. Therefore, by the end of 1998, the whole
The district has planted 10,800 hectares of fruit trees, including 8,000 hectares of lychee, with an output of more than 10 thousand tons.
- Period from 1998 to present: Is the period of lychee tree development according to
Intensive cultivation, area and lychee output increased rapidly during this period.
Lychee is identified as a key crop in agricultural development in Luc Ngan district. At the same time, early ripening lychee varieties are actively introduced for planting to spread out the crop and extend the harvest time. Therefore, by 2006, the whole district had planted 19,212 hectares of lychee, with fresh fruit output reaching
52,500 tons.
2.2.2. Position of lychee in the crop production industry in Luc Ngan district
In recent years, the crop structure of Luc Ngan district has undergone a huge and comprehensive change, including lychee. Lychee trees play an important role in the economic development of Luc Ngan district. Lychee trees have contributed to helping people stabilize their lives and become rich..., especially contributing to the transformation of crop structure, increasing the production value of the crop industry in the district.
+ Shifting agricultural production value:
Table 2.3: Production value of crop production in Luc Ngan district in the period 2004 - 2006
Unit: million VND
Target
The Years | Compare ( % ) | |||||
2004 | 2005 | 2006 | 2005/ 2004 | 2006/ 2005 | Jar army | |
Total production value agriculture | 376.51 4 | 406.92 5 | 548.80 0 | 108.0 8 | 134.8 7 | 120.73 |
1. Food crops | 87,632 | 99,563 | 113.97 1 | 113.6 2 | 114.4 7 | 114.04 |
2. Industrial crops annual | 6,697 | 6,000 | 7,565 | 89.59 | 126.0 8 | 106.28 |
3. Fruit trees | 243.96 9 | 265.56 6 | 388.33 3 | 108.8 5 | 146.2 3 | 126.16 |
In which: Fabric | 187.77 0 | 223.04 0 | 367.50 0 | 118.7 8 | 164.7 7 | 139.90 |
4. Vegetables, beans and spices | 16,046 | 18,616 | 21,736 | 116.0 2 | 116.7 6 | 116.39 |
5. Other plants | 22,170 | 17,180 | 17,195 | 77.49 | 100.0 | 88.07 |
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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services".
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Current Status of Exploiting Tran Temple Festival, Thai Binh to Serve Tourism Development. -
Current status of tourism development in Lao Cai province - 1 -
Current Status of Foreign Currency Business Development in the International Market of Vietnamese Commercial Banks -
Current Status of Development of Lao Cai Border Gate Economic Zone

9 |
Source: Luc Ngan District Statistics Office
Through table 2.3, it can be seen that in recent years, the production value of the crop production sector has always increased year after year. On average, over the past 3 years, the total production value of the crop production sector has increased by 20.73%. In which, the production value in 2005 compared to 2004 increased by 8.08%, and in 2006 compared to 2005 increased by 1.08%.
34.87%.
- For food crops: Average production value increased over 3 years
up 14.04%. In which, the production value in 2005 compared to 2004 increased
13.62%, 2006 compared to 2005 increased by 14.47%.
- Annual industrial crops: Average production value over 3 years
increased very little by 6.08%. In which, the production value in 2005 compared to 2004
down 10.41%, 2006 compared to 2005 increased 26.08%.
- Fruit trees: Over 3 years, average production value increased by 26.16%. Year.
2005 compared to 2004, production value increased by 8.85%. 2006 compared to 2005
2005 increased by 46.23% (in which the average production value over 3 years of the tree)
lychee increased by 39.89%). This shows that the
fruit tree
speak
In general, lychee trees in particular increasingly contribute significantly to the total production value of the crop sector of Luc Ngan district. However, in the process of developing fruit trees, there are still many risks caused by weather and pests.
Therefore, in the coming time to strongly develop fruit trees, especially
Lychee trees need synchronous solutions in production, processing and consumption.
+ Converting crop structure:
Table 2.4 shows the structure (CC) of annual crop land area.
accounts for a low proportion of total agricultural land area and tends to
decreased over the years. The structure of lychee area in the total agricultural land area increased over the years, specifically as follows:
In 2004, the area of land for annual crops was 6,289.7 hectares, accounting for 27.2% of the total agricultural land area, and the area of lychee trees was 13,562 hectares, accounting for 58.7% of the total agricultural land area.
In 2005, the area of land for annual crops was 5,127.64 hectares, accounting for 18.1% of the total agricultural land area, and the area of lychee trees was 19,192 hectares, accounting for 67.7% of the total agricultural land area.
In 2006, the area of land for annual crops was 5,225.24 hectares, accounting for 18.6% of the total agricultural land area, and the area of lychee trees was 19,212 hectares, accounting for 68.3% of the total agricultural land area.
43
41
Table 2.4. Land use structure of agricultural sector in Luc Ngan district in the period 2004-2006
Target
Total agricultural land area
The years | Compare (%) | |||||||||
2004 | 2005 | 2006 | 2005/2004 | 2006/2005 | ||||||
Area (ha) | CC (%) | Area (ha) | CC (%) | Area (ha) | CC (%) | Area (ha) | CC (%) | DT (ha) | CC (%) | |
23,115.61 | 100 | 28,348.87 | 100 | 28,144.93 | 100 | 122.64 | 100 | 99.28 | 100 | |
1. Land for annual crops | 6,289.70 | 27.2 | 5,127.64 | 18.1 | 5,225.24 | 18.6 | 81.52 | 66.47 | 101.90 | 102.64 |
- Rice fields, rice fields | 5,511.60 | 23.8 | 4,456.90 | 15.7 | 4,518.00 | 16.1 | 80.86 | 65.94 | 101.37 | 102.11 |
- Upland | 240.07 | 1.0 | 175 | 0.6 | 175 | 0.6 | 72.90 | 59.44 | 100 | 100.72 |
- Land for growing other annual crops | 538.03 | 2.3 | 495.74 | 1.7 | 389.69 | 1.4 | 92.14 | 75.13 | 78.61 | 79.18 |
2. Land for growing perennial crops | 15,650 | 67.7 | 21,982 | 77.5 | 21,622 | 76.8 | 140.46 | 114.53 | 98.36 | 99.08 |
- Including: Fabric | 13,562 | 58.7 | 19,192 | 67.7 | 19,212 | 68.3 | 141.51 | 115.39 | 100.1 | 100.88 |
3. Mixed garden land | 1,147.44 | 5.0 | 1,228.26 | 4.3 | 1,286.72 | 4.6 | 107.04 | 87.28 | 104.76 | 105.52 |
4. Water surface for aquaculture product | 28.47 | 0.1 | 10.97 | 0.04 | 10.97 | 0.04 | 38.53 | 31.42 | 100.00 | 100.00 |
Source: Luc Ngan District Statistics Office
44
2.2.3. Area and yield of some main fruit trees in Luc Ngan district
With its geographical advantage, land potential, and relatively favorable weather and climate for agricultural development in the mountainous areas of Luc Ngan district, especially fruit varieties.
People in Luc Ngan district have had the habit of growing lychee for a long time, especially since 1990, in most communes in the district, lychee is grown. In parallel with the development of lychee trees, some other fruit trees are also grown but the area is not significant. The development of fruit tree production in Luc Ngan district over the past 3 years is shown in Table 2.5.
Through table 2.5, it can be seen that after 3 years from 2004 to 2006, the area of fruit trees in the district continued to increase, especially lychee, which increased by 5,630 hectares.
but mainly focus on the early ripening U Hong litchi group developed
to increase muscle mass
strip fabric texture
harvest. 1999 crop
collect
The lychee harvest period, which used to last about 30 days, has now extended to 45 - 50 days thanks to the variety structure and intensive farming measures to extend the season.
The area of lychee trees accounts for a high proportion of the total area of fruit trees, specifically as follows: In 2004, the total area of fruit trees was 15,650 hectares, of which lychee trees were 13,562 hectares, accounting for 86.66%. In 2006, the total area of fruit trees was 21,622 hectares, of which lychee trees were 19,192 hectares, accounting for 88.76%.
Table 2.6 shows that: In 2004, the total area of lychee was 13,562 hectares, with a high output of 75,108 tons. In 2005, the total area was 19,192 hectares, an increase of 41.5%, but the output was low at 44,608 tons, a decrease of 30,500 tons, equivalent to a decrease of 40.6% compared to 2004. In 2006, the total area of lychee was 19,212 hectares, an increase of 20, and the output of lychee was 52,500 tons, an increase of 7,892 tons, equivalent to an increase of 17.7% compared to 2005.
High or low lychee yield also depends on factors such as: care techniques, investment capital, weather... These are issues that need attention.
43
Fruit tree | The Years | Compare (%) | ||||||||
2004 | 2005 | 2006 | 2005/2004 | 2006/2005 | ||||||
Area (ha) | Product quantity (ton) | Area area (ha) | Product quantity (ton) | Area (ha) | Product quantity (ton) | Area (ha) | Product quantity (ton) | Area (ha) | Product quantity (ton) | |
1. Orange, Lemon, Tangerine | 24 | 65 | 226 | 72 | 226 | 150 | 941.67 | 110.77 | 100.00 | 208.33 |
2. Label | 380 | 1,485 | 465 | 2,128 | 465 | 2,320 | 122.37 | 143.3 | 100.00 | 109.02 |
3. Lychee | 13,562 | 75,108 | 19,192 | 44,608 | 19,212 | 52,500 | 141.51 | 59.39 | 100.10 | 117.69 |
4. Mango | 102 | 342 | 102 | 378 | 102 | 360 | 100.00 | 110.53 | 100.00 | 95.24 |
5. Pink | 820 | 3,920 | 1,080 | 5,740 | 1,080 | 6.120 | 131.71 | 146.43 | 100.00 | 106.62 |
6. Sodium | 160 | 512 | 250 | 625 | 220 | 550 | 156.25 | 122.07 | 88.00 | 88.00 |
7. Other fruit trees | 602 | 1,355 | 667 | 2,725 | 317 | 2,440 | 110.80 | 201.11 | 47.52 | 89.54 |
Total | 15,650 | 82,787 | 21,982 | 56,276 | 21,622 | 64,440 | 140.46 | 67,977 | 98.36 | 114.51 |
Table 2.5. Area and yield of some fruit trees in Luc Ngan in the period 2004 - 2006
Source: Luc Ngan District Statistics Office
44
Table 2.6. Area and yield of lychee varieties in Luc Ngan in the period 2004 - 2006
Target
The years | Compare (%) | ||||||||||||||
2004 | 2005 | 2006 | 05/04 | 06/05 | |||||||||||
Total revenue (ha) | DT Collect plan (ha) | Output (tons) | Total revenue (ha) | DT Collect plan (ha) | Output (tons) | Total revenue (ha) | DT Collect plan (ha) | Output (tons) | Total area (ha) | Production (ton) | Total area (ha) | Production (ton) | |||
Total | 13. 5 62 | 12. 5 60 | 75. 1 08 | 19. 1 92 | 13. 9 40 | 44. 6 08 | 19. 2 12 | 15. 0 00 | 52. 5 00 | 141 , 5 | 59, 4 | 100 , 1 | 117, 7 | ||
Lai Chua | 145 | 145 | 725 | 145 | 145 | 420 | 140 | 140 | 466 | 100 | 57.9 | 96, 6 | 111, 0 | ||
U Hong | 810 | 540 | 3159 | 2072 | 620 | 2046 | 3198 | 798 | 2864 | 255 ,8 | 64.8 | 154 ,3 | 140, 0 | ||
Lai Thanh Ha | 300 | 128 | 742 | 300 | 188 | 583 | 290 | 200 | 700 | 100 | 78.6 | 96, 7 | 120, 1 | ||
Thanh Ha | 12.3 07 | 11.7 47 | 70.4 82 | 16.6 75 | 12.9 87 | 41.5 59 | 15.5 84 | 138. 62 | 48.4 70 | 135 ,5 | 58.9 | 93, 5 | 116, 6 | ||
Source: Report of Luc Ngan district economic department

![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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