(ii) The thesis also prepares documents such as: preliminary research models and scales based on the process of theoretical review and previous research (including original scales from previous research articles).
Expert selection (according to expert standards)
Prepare documents, research models and preliminary scales according to previous research
(iii) The author contacted experts according to the prepared list and prioritized experts with a doctorate degree or higher, who were knowledgeable about VXH and were willing to give comments on the thesis. The contact resulted in 5 experts who were lecturers at 3 universities in Ho Chi Minh City (including 2 doctors; 3 associate professors, doctors). The author sent all relevant documents via email to the experts. The experts gave comments by ballot and notes attached to the preliminary scale table.
Synthesize expert opinions and calibrate preliminary scales
Access and send documents to collect expert opinions using opinion collection forms
Organize expert seminars
Record, discuss and agree on the scale to form the scale
Official scale
Pilot survey (n = 70)
Figure 3.2: Process of conducting qualitative research
Source: Author's suggestion
(iv) The experts are people who have researched on social sciences, so the thesis is convenient in the process of collecting opinions, the opinions of the experts are quite similar. The author synthesizes and re-adjusts the scale, however, there are still some opinions of the experts that do not match the theory and previous research, so the author still reserves the original opinion.
(v) After synthesizing expert opinions and adjusting the preliminary scale, the author conducted an expert workshop. The workshop was held at the University of Economics, Ho Chi Minh City with the participation of 10 lecturers from 3 universities in Ho Chi Minh City (including 4 experts who had previously contributed comments by ballot). At the workshop, the author presented
presented in detail the model, the initial preliminary scale and the revised scale after recording the experts' comments by ballot. At the same time, the author also raised the opinions of the experts who had previously commented but the thesis had not been revised because of concerns due to theoretical inconsistencies. At the workshop, each expert gave detailed comments on the research model and scale. The experts also gave their views and discussion opinions (including opposing opinions). The author noted and gave his own views for the experts to give further comments. At the end of the workshop, the doctoral student also agreed on some opinions with the experts to continue to revise the preliminary scale for the second time.
(vi) The scale continued to be revised after the results of the expert workshop. The author completed the scale and sent an email to two experts (two associate professors, PhDs from the Faculty of Development Economics - Ho Chi Minh City University of Economics) for final comments. After comments, the scale was revised (mainly wording and arrangement). The researcher conducted an expert workshop in the field of Statistics to record the opinions of experts in the field, to ensure that the questionnaire was clear and detailed. Here, the data collection plan was also presented.
(vii) Statistics experts (including the Statistics Department of Ho Chi Minh City and Long An Province) mainly commented on the survey on employment and income information of households (for the social affairs section, statistics experts only asked for clarification of unclear points in the survey, for example: trust - level of trust). After the statistics experts' workshop, statistics officers conducted a pilot survey in 7 research areas using a convenient method (each district/town interviewed 10 households with diverse household groups: purely agricultural, non-agricultural, and a group with both).
(viii) After completing the pilot survey, the thesis noted the unclear points, the clear sentences, the most unclear ideas to calibrate the scale. After that, the author organized a workshop in Long An province with the participation of experts and statistical officers (including the Statistics Department of Ho Chi Minh City and Long An province) to implement data collection. At this workshop, most of the opinions exchanged and discussed were related to the survey plan and data collection.
3.2.3. Results of collecting expert opinions
Scientists suggest that social capital should be measured not only in terms of quantity but also in terms of social capital quality and that it is necessary to clearly define the level at which social capital is considered (macro, meso, etc.).
and micro) and both structural and cognitive aspects or just consider each aspect separately. At the same time, experts also suggest that it is necessary to clarify what relationships are present in the research area? Does the social capital of the research subject represent the family? The thesis needs to clarify the research on the social capital of the family, so it is necessary to clearly identify who the interviewees are? How to collect the social capital of the family? The social capital of the family is a new research topic, so it is necessary to consider carefully when building the scale. If the thesis only measures the social capital of the family through interviewing an individual representing the family, is the information complete? Are the factors of the head of household or the family representative (social capital and personal characteristics) considered in the research model? The thesis needs to clarify the scale for measuring the social capital of the family. If it is only measured by a few scales as in the VARHS data, it will be difficult for the thesis to be new, or if it only uses the Likert scale, who will be interviewed in the family with many people? How to synthesize the results? According to the research model of the thesis, the social capital of individuals and families needs to be clarified, whether it is approached according to the structure or trust (cognition) or both? If the social capital of families is approached according to the meso level, it is necessary to clearly identify which organizations exist in practice related to the employment and income of the family. Once those organizations are identified, the social capital scale according to the structure can be built correctly according to reality.
From the results of expert opinions (collected by questionnaire), the thesis clearly identifies the study of social capital at the micro and meso levels (individual, family), and simultaneously studies both structural and belief (cognitive) aspects. Expert opinions help the thesis clearly identify the interviewee as the main worker (the person with the highest income in the family), if not the main worker, then the person who decides the income and expenditure of the family to collect personal information and personal social capital. This choice is to ensure that the topic is in line with the orientation of social capital with employment and income. At the same time, the characteristics of the individual (the person with a certain important role in the family) are also included to consider whether they affect the social capital, employment and income of the family or not.
According to the expert's comments, the author studied legal documents and consulted with the leaders of the Provincial People's Committee and the Department of Home Affairs of Long An province to identify organizations and groups established according to the provisions of law and voluntary organizations and groups operating in Long An province. From this result, the thesis reconstructed the social capital scale of the family (structural aspect) according to the results of consulting with experts.
The expert's opinion also helps the thesis clearly see the design of the scale and the integration between personal and family social capital. Thereby, the thesis determines that personal social capital is designed to interview the main worker (the person with the highest income in the family or the person who decides the family's income and expenditure, in which priority is given to the person with the highest income) and the 5-level Likert scale is used in this case. Personal social capital is initially determined based on the theoretical framework including: the level of attachment to relationships, trust and "reciprocity".
For the social capital of the family, the thesis determined to use quantitative scales according to specific numbers, these numbers were synthesized from the interview results of all family members of working age. However, the aspect of trust is very difficult to measure and synthesize data accurately, so the initial proposed scale was built in the form of a dummy variable (whether or not to trust the organizations that the family has members participating in). The questionnaire after being edited according to the opinion collection form of each expert was presented in the workshop to collect the general opinions of experts and scientists from 3 universities in Ho Chi Minh City.
At the workshop, experts helped to solve the difficulties for this study in building a scale to measure family social capital in terms of trust. Expert opinions also proposed to consider trust, the reciprocal viewpoint in social capital with quantitative numbers. Trust, if only asked "yes or no trust", does not ensure the reliability of the data, because asking others whether they trust the government, or trust the people they know, most of them will answer yes, and if so, the data collection results will hardly discover interesting things. Expert opinions say that the most effective way to measure trust is the financial factor - "asking to borrow or lend money". Because in fact, only people who are very close and trust each other can lend money (without interest) and this also shows "reciprocity".
However, the scale was included in the workshop to solicit opinions from statistics experts, the thesis received some more detailed opinions on the aspect of trust, specifically, statistics experts said that rural people often trust the people around them, if measuring "trust by lending/borrowing money from others, it is necessary to be clear about the amount of money because people can trust each other very much but the amount of money exceeds their ability, it is difficult to lend. Regarding the aspect of MQH, statistics experts
It is necessary to clarify which relationships, because people are only limited to a number of common relationships such as relatives, neighbors, people in the same profession, friends and local authorities (only when really necessary or when the family has someone working in government agencies).
The Statistical Expert Group also agrees that households with members participating in social organizations have easier access to jobs, loans, and participation in production groups and teams. Therefore, households with members participating in social organizations have better conditions to improve their income than households without members participating in social organizations. The Statistical Expert Group proposes to measure this by the amount of social spending of individuals and households. In fact, the level of spending in general and social spending in particular can reduce the income of households.
According to scientists (university lecturers) and reality, spending levels are related to income. Among spending items, Vietnamese people have social spending (funerals, weddings, parties, etc.) that accounts for a large part of personal and family spending. Spending reflects income to some extent because people usually spend according to their income. Therefore, social spending reflects social capital best, showing the level of connection with the social community, the level of connection and quality of relationships of individuals and families. Expert opinions have helped the thesis complete the scale and questionnaire, forming the official research model and scale.
3.3. Official research scale
Domestic and foreign studies related to the relationship between social capital and employment, income, and income distribution of households mostly use few observed variables representing social capital. In particular, the number of observed variables representing social capital of households is even smaller. Previous studies that mentioned social capital of individuals or households mostly used a 5-level Likert scale or a qualitative scale (dummy variables). This leads to research results that cannot measure social capital according to the characteristics of the household, the quality and quantity of social capital.
Furthermore, the VXH variables of the household need to be calculated for the whole household, so measuring them with specific numbers will help compare the VXH levels of the households with each other. According to expert opinion, all 8 observed variables related to VXH of the household have been adjusted (Table 3.1).
Table 3.1: Scales and basis for scale design
Variable code
Scale initial | Official scale (after expert opinion) | Basis for building the scale | |
Personal social security | |||
MINUS | Likert 5 level | Likert 5 levels | Ommen et al (2009); Kang (2012); Mohsenzadeh & Ahmadi (2013); Savari, Eslami & Monavarifard (2013), Hasan, Gholamreza & Maryam (2014), Pham Huy Cuong (2014), Shin & Lee (2016); Edinger & Edinger (2018); Gültekin (2019). |
COS | Likert 5 level | Likert 5 levels | |
REH | Likert 5 level | Likert 5 levels | |
BOR | Likert 5 levels | Likert 5 levels | |
Personal work | |||
SASJ | Likert 5 level | Likert 5 levels | Spector (1985), Teymouri et al. (2007), Wang (2008), Savari, Eslami & Monavarifard (2013). |
SASI | Likert 5 level | Likert 5 levels | |
Social Security of the Family | |||
- Structural aspect: | |||
NPART | Yes/No | Number | Lin & Dumin (1986), Bekkers et al. (2012) and expert opinion |
NPOLO | Yes/No | Number | Nega et al. (2009), Khai & Danh (2014) and expert opinion |
NPROO | Yes/No | Number | Zhang (2010), Chau Ngoc Hoe & Nguyen Hoang Yen (2020) and opinions expert |
NVOLO | Yes/No | Number | Pellizzari (2010), Hoogendoorn (2017) and expert opinion |
- Cognitive aspect: | |||
NBORM | Yes/No | Number | Henly, Danziger & Offer (2005), Barr, Di Falco & Mourato (2011), Goulden (2013) and expert opinion |
COSTC | VND/person | Million VND/month/family (take logarithm) | Yusuf (2008), Hoang Ba Thinh (2009) and expert opinion |
COSTG | VND/person | Million VND/month/family (take logarithm) | Yusuf (2008), Chau Ngoc Hoe & Nguyen Hoang Yen (2020) and opinions expert |
COSTF | VND/person | Million VND/month/family (take logarithm) | Lin (2001), Yado & Yano (2017) and their expert opinion |
Maybe you are interested!
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![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services".
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Expert Survey Results on Research Scales -
Accounting for income, expenses and determining business results at Family Gas Company Limited - 2 -
Expert Opinion Summary of Factors -
Expert Opinion Summary
Source: Author's synthesis after comments from experts
3.4. Data and data collection methods
3.4.1. Sampling method and sample size
The survey on social capital, employment and income of households aims to collect information on social relations, employment and income to serve the study of the impact of social capital on employment and income of households. The scope of the survey is all towns and districts in the Dong Thap Muoi region, Long An province including Kien Tuong town and 6 districts: Thu Thua, Tan Hung, Vinh Hung, Moc Hoa, Tan Thanh and Thanh Hoa. The survey subjects are households and members of working age of the household.
The household survey is a random sampling survey. The survey sample includes 1,260 households. To ensure that the selected sample represents the entire study population and facilitates field investigation, the sampling method applied to this survey is the 3-stage sampling method, with the sampling method applied in stage 1 being the sampling method based on probability proportional to population size, this method will help select a representative sample for the entire study population and give the lowest sampling error compared to other random sampling methods; the sampling method applied in stages 2 and 3 is the systematic sampling method. The specific sampling design is as follows:
Phase 1. Select sample wards/communes/towns
The sampling unit of phase 1 is the ward/commune/town. The sample list is all the wards/commune/towns of the Town, district in Dong Thap Muoi region, Long An province. The total number of wards/commune/towns in Dong Thap Muoi region is 74 wards/commune/towns. The number of sample units is 14 wards/commune/towns selected by the probability sampling method proportional to the population size of the wards/commune/towns. List of selected sample wards/commune/towns (Table 2, Appendix 3).
Phase 2. Select survey location
In each sample ward/commune/town selected in phase 1, based on the list of survey areas established from the 2019 Population and Housing Census in Long An province, 3 survey areas were selected using the systematic sampling method. The total number of sample survey areas is: 3 sample survey areas * 14 sample wards/commune/towns = 42 sample survey areas. List of sample survey areas of sample wards/commune/towns (Table 2, Appendix 3).
Phase 3. Select survey households
To select a sample of households for survey in each sample area, first, a list of households in the sample survey area was made. Based on the list of households in the sample area,
30 sample households were selected using a systematic sampling method based on a random number table (Table 3, Appendix 3). The total number of sample households selected was: 30 households * 42 sample survey areas = 1,260 sample households.
3.4.2. Characteristics of the research area
Seven districts and towns in the study area have a labor force/population ratio lower than the provincial average. Of which, 7 districts and towns except Tan Thanh district have a higher ratio than the provincial average, the remaining localities are much lower. This shows that the study area has a low labor force per population, the number of people outside of working age is higher than the provincial average.
Table 3.2: Labor force/population size ratio
(Unit: %)
Local
2015 | 2016 | 2017 | 2018 | 2019 | Preliminary 2020 | |
Kien Tuong Town | 60.44 | 60.03 | 59.97 | 59.99 | 62.37 | 60.09 |
Tan Hung District | 60.49 | 60.08 | 60.02 | 60.04 | 62.42 | 60.14 |
H. Vinh Hung | 60.48 | 60.07 | 60.01 | 60.03 | 62.41 | 60.13 |
Moc Hoa District | 60.50 | 60.09 | 60.03 | 60.05 | 62.43 | 60.15 |
Tan Thanh District | 60.96 | 60.55 | 60.49 | 60.51 | 62.89 | 60.61 |
Thanh Hoa District | 60.76 | 60.35 | 60.29 | 60.31 | 62.69 | 60.41 |
H. Thu Thua | 60.51 | 60.10 | 60.04 | 60.06 | 62.44 | 60.16 |
Provincial average | 60.73 | 60.39 | 60.34 | 60.38 | 62.59 | 60.55 |
Source: Data provided by Long An Provincial Statistics Office (2021)
The employed labor force by economic sector of the seven districts and towns is also lower than the average of the whole province. The employed labor force in all three economic sectors of the seven districts and towns is mostly in sector I, sector II also has a proportion of 8-10%, while sector III has a very low proportion (mostly below 5% except Thu Thua district). This is because the research area was formerly a purely agricultural area, in recent years there have been a few areas shifting to industry - construction, while services are mainly small-scale trading activities. Except for the three districts of Thu Thua, Tan Thanh and Thanh Hoa which have the advantage of being located right on National Highway 62, convenient for transportation so the economic structure shifts faster, the remaining districts and towns have a high proportion of agricultural economic structure. Kien Tuong town is oriented towards economic development in sectors II and III,