This is a theoretical work from abroad but can also be applied well to the practical conditions of Vietnam.
The book Public Policy of the United States from 1935 to 2001 by author Le Vinh Danh mainly discusses public policy in general and illustrates it with public policy of the United States, including fiscal policy - related to capital management from the state budget. The book clarifies the content and process of state budget management quite closely in the United States through four stages: planning, expenditure approval, expenditure implementation and auditing. Development investment capital from the state budget mainly follows the output-oriented model and with a regime of transparency and accountability. This is an important suggestion in the innovation of public financial management mechanisms in general and the management of development investment capital from the state budget in Ha Giang province in particular. However, like other works, the book only mentions project management at the "micro" level.
1.4.2. Domestic studies on project investment management using state budget capital.
In the book Construction Investment Project Management by author Bui Manh Hung, the author focuses on clarifying the basic issues of investment projects, economic content of construction investment projects, assessing the socio-economic efficiency of investment projects; analyzing investment project finances; clarifying the contents and processes of construction investment project management: preparation, implementation, and completion of projects; proposing trends in applying computer programs to assist in managing investment projects. This work also mentions the requirements of state management of construction investment, some aspects and procedures of construction investment. State management of construction and construction investment projects are mentioned in the form of concretization of legal documents. However, this work does not mention the aspect of state budget capital management in construction investment projects.
Maybe you are interested!
-
Management of investment projects using state budget capital in Ha Giang province - 2 -
Basic Contents of Construction Investment Capital Management from State Budget Sources at Provincial Level Localities -
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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Preventing and Combating Violations of the Law in Basic Construction Investment with State Budget Capital Needs to Thoroughly Understand the Viewpoint of Mobilizing the Combined Strength of -
Key Solutions for Innovation in Infrastructure Investment to Serve Agricultural Production Development from State Budget Capital
The thesis Financial solutions to improve the efficiency of capital investment in basic construction from the state budget in Nghe An province by author Phan Thanh Mao has the research object of budget expenditure and the efficiency of capital investment in basic construction from the state budget. This work focuses on the financial aspect of capital investment in basic construction from the state budget, the key solution is to perfect policies, regimes, and business processes of credit for development investment... issues on management of development investment from the state budget are not specifically mentioned.

The thesis State management of construction investment projects from the state budget in Vietnam by author Ta Van Khoi focuses on the management of economic and technical activities in investment projects from the state budget, in which the quality of construction investment project management is focused, clarifying the basic contents and providing the content of state management of construction investment projects. The research results of this work suggest the content and process of managing technical activities in investment projects from the state budget. The directions and solutions that the author proposes in chapter 4, at the macro level (in accordance with the purpose of the thesis) are very valuable.
However, the management of investment projects from the state budget in Ha Giang province needs to consult specific solutions suitable to the characteristics of a mountainous province with special difficulties but occupying a position in national security and defense.
CHAPTER 2: RESEARCH METHODOLOGY
2.1. Main research questions
Research on the management of investment projects using state budget capital focuses on answering the following main research questions:
* What is the current status of management of investment projects using state budget capital in Ha Giang?
* What are the strengths and weaknesses of the management of investment projects using Ha Giang's state budget?
* Explore the possibility of integrating and harmonizing existing implementation options .
Management of investment projects using state budget capital to form a general system of indicators for implementing the management of investment projects using state budget capital in Ha Giang, what are the implementation solutions?
2.2. Research method
To obtain the necessary data information, students have combined synthesis, analysis, comparison, statistical methods with field surveys. Applying the Party and State's policies on investment and construction management according to issued regulations. Studying secondary data of statistical documents, investment project reports, records, and current investment project management work. Specifically:
2.2.1. Approach
Approach method
melon
on the process of consultation , exchange and sharing
information to get
consensus
of all parties involved in each
content
assessment . This is the process of exchange between the students themselves and the staff working in managing investment projects using the State budget of Ha Giang to jointly find out
understand and analyze the difficulties , problems and advantages
profit
, and go to
consensus
back to the cradle
need improvement
2.2.2. Data collection method
Collect secondary documents from relevant agencies from the Central Government (Ministry of Planning and Investment, Ministry of Construction, Project Management Board). Consult and collect documents from relevant agencies at the local level (Department of Planning and Investment, Department of Construction, State Treasury, General Statistics Office. Provincial People's Committee Office, Department of Finance, Department of Agriculture and Rural Development). Work in the room to review documents: including legal documents at the central and provincial levels regulating the implementation of management of investment projects using state budget funds, including summary reports, specialized reports of provincial and district departments, implementation guidance documents, training documents, etc. Based on the collected documents, trainees conduct analysis and comparison to find similarities and differences in the implementation of management of investment projects using state budget funds.
2.2.3. Information synthesis method
Data is grouped according to the content of this study, from which indicators are calculated according to the purpose of this study, and the analysis indicators are calculated on an Excel spreadsheet.
2.2.4. Method of processing survey data
The research will combine both qualitative and quantitative analysis methods, in which the qualitative method plays a leading role and the
Quantitative analysis serves as an illustration and support.
consult a specialist
expert on follow up assessment , expert on assessment
g is one
in the like
activities of this study. Based on the collected documents, conduct analysis and comparison to find out the similarities as well as differences in the management of investment projects using state budget capital.
The study was conducted on the basis of a combination of comparisons of the options .
implement, summarize
results and lessons learned
horror
, construction
Strategic and practical solutions applicable to a mountainous province like Ha Giang.
CHAPTER 3: CURRENT STATUS OF MANAGEMENT OF DEVELOPMENT INVESTMENT PROJECTS USING BUDGET CAPITAL IN HA GIANG PROVINCE
3.1. Overview of the socio-economic situation of Ha Giang province
3.1.1. Natural and social characteristics of Ha Giang province
- Geographical location
Ha Giang is a northern border province of Vietnam, with a particularly important strategic position. To the north, it borders Yunnan and Guangxi provinces, the People's Republic of China. To the east, it borders Cao Bang province, to the south, it borders Tuyen Quang province, to the west, it borders Lao Cai and Yen Bai provinces. The whole province has 22 ethnic groups with a population of over 778,000 people. Ha Giang has 11 districts, cities and 195 communes, wards and towns, with a border of over 274km adjacent to the People's Republic of China, which is a very favorable condition for economic development and investment attraction while developing sustainable tourism.
Total natural land area: is 7,914.8892km2 , Ha Giang province is a
Majestic mountain range, rugged terrain, strongly fragmented, average altitude from 800 to 1,200m above sea level. In the West, with the Tay Con Linh high mountain range and the Dong Van Stone Plateau in the North, Ha Giang has a terrain that gradually increases in the Northwest and decreases in the Southeast. The terrain is fragmented, thus forming sub-regions with different characteristics in terms of altitude and climate. Ha Giang's terrain can be divided into 3 large regions: the rocky highlands in the North; the dirt highlands in the West and the low mountains.
- Terrain
Located in the mountainous region of northern Vietnam, Ha Giang is a majestic mountain range with rugged terrain and an average altitude of
The average altitude is from 800 m to 1,200 m above sea level. This is an area with many high mountains. According to recent statistics, on the Ha Giang land strip of less than 8,000 km2, there are 49 mountains from 500 m - 2,500 m high (10 peaks 500 - 1,000 m high, 24 peaks 1,000 - 1,500 m high, 10 peaks 1,500 - 2,000 m high and 5 peaks 2,000 - 2,500 m high). However, the terrain of Ha Giang can basically be divided into the following 3 regions:
- The northern highlands are also known as Dong Van plateau, including Quan Ba, Yen Minh, Dong Van, Meo Vac districts with 90% of the area being limestone mountains, typical of karst terrain. Here there are sharp cat ear rocky ranges, deep and narrow ravines, many steep cliffs. On October 3, 2010, Dong Van stone plateau joined the global Geopark (GWP) network with the name: Dong Van Stone Plateau Geopark.
- The western highlands including Hoang Su Phi and Xin Man districts are part of the Bac Ha plateau, commonly known as the Chay River uplift, with an altitude of 1,000m to over 2,000m. The terrain here is commonly dome or semi-dome, pear-shaped, saddle-shaped, interspersed with steep terrain, sometimes sharp or steeply jagged, strongly dissected, with many folds.
- The low mountainous area includes the remaining districts and towns, stretching from Bac Me, Ha Giang town, through Vi Xuyen to Bac Quang. This area has strips of old forest interspersed with relatively flat valleys along rivers and streams.
Hydrology
The major rivers in Ha Giang belong to the Red River system. Here, the density of rivers and streams is relatively high. Most of the rivers have uneven depths, steep slopes, many rapids and waterfalls, and are not very convenient for water transport.
Lo River is a large river in Ha Giang, originating from Luu Lung (Van, China), flowing through the Vietnam - China border (Thanh Thuy area), through the town.
Ha Giang, Bac Quang communes to Tuyen Quang. This is the main water supply for the central region of the province.
The Chay River originates from the southwest slope of Tay Con Linh peak and the northeast slope of Kieu Lien Ti peak. The density of tributaries is high (1.1km/km2), and the water concentration coefficient reaches 2.0km/km2. Although only the headwaters are within the province, it is the main source of water for the western region of Ha Giang.
Gam River originates from Nghiem Son, Tay Tru (China) flows through Lung Cu, Meo Vac to near Tuyen Quang town and joins Lo River. This is the main water supply for the majority of the province.
In addition, in Ha Giang province there are also shorter and smaller rivers such as Nho Que River, Mien River, Bac River, Chung River, many large and small streams providing water for production and people's lives.
Climate
Located in the tropical monsoon region and is a highland, Ha Giang's climate basically has the characteristics of the Viet Bac - Hoang Lien Son mountainous region, but also has its own characteristics, cooler and colder than the Northeastern provinces, but warmer than the Northwestern provinces. . .
The average annual temperature is about 21.60C - 23.90C, the temperature range during the year fluctuates over 100C and during the day is also from 6 - 70C. In the hot season, the absolute high temperature is up to 400C (June, July); conversely, in the cold season, the absolute low temperature is 2.20C (January).
The rainfall regime in Ha Giang is quite diverse. The whole province has an average annual rainfall of about 2,300 - 2,400 mm, with Bac Quang alone reaching over 4,000 mm, making it one of the largest rainfall centers in our country. The rainfall fluctuation between regions, years and months of the year is quite large. In 2001, the rainfall measured at Ha Giang station was 2,253.6 mm, Bac Quang was 4,244 mm, Hoang Su Phi



![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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