Service Terminal 1
Mission: to look after trucks from provinces and cities coming to Hai Phong to pick up and deliver goods and need to park overnight. In addition, there are additional support services for people and vehicles including:
- Organize counters, refreshment and food stalls for drivers and assistant drivers.
- Organize accommodation for the owner and driver to sleep overnight.
- Organize warehouse to store goods.
- Organize stores to buy and sell supplies, grease, and auto parts.
- Exploiting and transporting goods between provinces and cities.
Service Terminal 2
The services of wharfs, motels, etc. are a member unit of the company responsible for exploiting and organizing the repair of the company's means of transport as well as those of outside units. Monthly revenue is submitted to the company.
Cargo handling center.
As a member department of the company, responsible for organizing, managing and operating means of transport, exploiting and transporting goods, monthly settlement and payment to the company.
2.1.3. Advantages and disadvantages
2.1.3.1. Advantages
In recent years, the world economy has witnessed strong changes. The commodity economy has developed, goods are increasingly produced and consumed strongly, along with increasing specialization, increasing exchange of goods, leading to the need for freight transport growing not only within the territory of a country, in the region but also worldwide.
Vietnam is one of the few countries that is blessed by nature with a long coastline from North to South. Together with the current open-door policy of the Party, the State and localities are very favorable factors for the construction of a maritime industry with the function of not only serving the needs of economic and social development and ensuring national security and defense but also participating in providing services for maritime activities. The Vietnamese maritime industry has accumulated a number of facilities, means, technical labor and initial management and business operation experience, which are very valuable to enter a new stage of development in the direction of "specialization - modernization".
Implementing the provincial, district and local marine economic development program, focusing on maritime transport as a sector that creates many jobs and brings high income to workers. Hai Phong City leaders also have strong investment strategies for the transport and shipbuilding industry.
The company was established in 2013, the director is a veteran in the shipping industry, the company members are people working in shipping with many years of experience in production and actual seafaring.
Exploiting the transportation of goods by sea using the means of transport as ships with the main input fuel being DO and LO fuel oil available on the market at any port in Vietnam and internationally. Fuel prices in Vietnam are currently being stabilized by the government through import tax, so the ability to stabilize prices is very large, creating favorable conditions for businesses to balance revenue and expenditure and make business and production plans.
Marine equipment is specialized equipment for harsh working environments so it rarely breaks down.
Vietnam's seaports are suitable for medium-sized ships and are spread across the length of the territory.
Domestic labor is abundant and not of high value.
2.1.3.2. Difficulties
The maritime industry is a special economic sector, the main products are services, which are highly dependent on market fluctuations as well as natural risks. On the other hand, technical facilities always require a large amount of capital investment, but the payback period is often longer than other service industries.
Regarding service exploitation and business: The general trend of large enterprises is to organize a full-package business, which means organizing separate service enterprises such as transportation, loading and unloading, and delivery to serve themselves and compete to attract customers. The formation of large corporations along with the massive development of transportation business organizations has gradually narrowed the market and made competition increasingly fierce. This is the biggest difficulty of service enterprises, causing some enterprises to lose jobs or operate at a loss.
Regarding labor: Domestic labor resources are abundant but there is still a lack of specialized and highly skilled workers, the ability to meet work requirements is limited, and labor discipline is still low.
Economic policies are volatile, investment capital is limited, banks are tightening loans, and inflation is increasing, causing difficulties for the maritime transport and shipbuilding industries. Enterprises have difficulty accessing loans to do business and expand production and business. Although the government and specialized management agencies have paid attention to removing some obstacles in policy mechanisms, there is still no appropriate preferential protection regime for the maritime industry as some other countries do.
2.2. Analysis of the financial situation of Thanh Dat Maritime Transport Trading Company Limited
2.2.1. General analysis of Financial Reports
A general assessment of the financial situation of a business will provide the most general overview of the financial situation during the business period, whether it is positive or negative. That allows the company to clearly see the nature of the production and business process and predict the development or decline of the business, on that basis, there are effective solutions.
When analyzing the financial situation of the Company, it is necessary to evaluate the general situation through the financial reporting system, mainly the Balance Sheet and the Business Performance Report of the Company. These reports are prepared by accountants at the end of the accounting period in accordance with the regulations and instructions of the Ministry of Finance.
To have a correct assessment of the company's asset and capital usage in recent years, we create a table of the company's asset and capital structure so that we can not only see the asset and capital structure but also monitor changes in items.
Hai Phong Private University Graduation Thesis
Table 2.1: Horizontal analysis of asset structure
Unit: million VND
Target
2016 | 2017 | 2018 | Comparison 2017/2016 | Comparison 2018/2017 | |||
Amount | % | Amount | % | ||||
A. Current assets | 103,733 | 151,929 | 162.011 | 48,196 | 46.5% | 10,082 | 6.6% |
I. Cash and cash equivalents | 38,857 | 66,841 | 61,797 | 27,983 | 72.0% | (5,044) | -7.5% |
II. Short-term financial investments | - | - | - | - | - | ||
III. Short-term receivables | 33,879 | 30,586 | 38,372 | (3,293) | -9.7% | 7,786 | 25.5% |
1. Accounts receivable from customers | 20,514 | 21,041 | 32,145 | 527 | 2.6% | 11,104 | 52.8% |
2. Prepayment to the seller | 2.014 | 1,843 | 2.301 | (171) | -8.5% | 458 | 24.9% |
3. Other receivables | 11,351 | 7,702 | 3,926 | (3,649) | -32.1% | (3,776) | -49.0% |
IV. Inventory | 29,641 | 35,737 | 44,428 | 6,097 | 20.6% | 8,691 | 24.3% |
V. Other current assets | 1,356 | 18,765 | 17,415 | 17,409 | 1,283.8% | (1,350) | -7.2% |
B. Long-term assets | 319,178 | 554,070 | 533,980 | 234,892 | 73.6% | (20,091) | -3.6% |
I. Fixed assets | 302,330 | 511,523 | 493,658 | 209,194 | 69.2% | (17,866) | -3.5% |
1. Original price of fixed assets | 378,414 | 649,705 | 633,313 | 271,292 | 71.7% | (16,393) | -2.5% |
2. Accumulated depreciation | 76,084 | 138,182 | 139,655 | 62,098 | 81.6% | 1,473 | 1.1% |
II. Long-term financial investments | 11,116 | 34,134 | 39,459 | 23,018 | 207.1% | 5.325 | 15.6% |
III. Other long-term assets | 5.162 | 6,929 | - | 1,767 | 34.2% | (6,929) | -100.0% |
1. Long-term receivables | 5.162 | 6,929 | - | 1,767 | 34.2% | (6,929) | -100.0% |
Total assets | 422,912 | 706,000 | 695,991 | 283,088 | 66.9% | (10,009) | -1.4% |
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Some measures to improve the financial situation at Thanh Dat Shipping Trading Company Limited - 10 -
![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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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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Financial analysis and solutions to improve the financial situation at Quang Doanh Transport and Trading Services Company Limited - 1 -
Financial analysis and solutions to improve the financial situation at Quang Doanh Transport and Trading Services Company Limited - 11 -
Analysis of financial situation at Hoang Quan Trading - Service - Real Estate Consulting Joint Stock Company - 16
(Source: Financial report 2016 - 2018)
Student: Nguyen Thi Quynh Anh 34 Class: QT1801T
Comment:
Through the analysis table above, we see that the company's total assets in 2017 increased.
283,088 million VND compared to 2016 (up 66.9%); 2018 was 695,991 million VND, down 10,009 million VND, corresponding to a decrease of 1.4% compared to 2017.
Short-term assets in 2017 increased by VND 48,196 million (up 46.5%) compared to 2016; in 2018, it increased by VND 10,082 million (up 6.6%) compared to 2017. Long-term assets in 2017 increased by VND 234,892 million (up 73.6%) compared to 2016; in 2018, it decreased by VND 20,091 million compared to 2017, corresponding to a decrease of 3.6%.
The above data shows that the change in total assets is mainly due to the increase in the value of current assets each year. The increase in current assets is a good sign. The increase in current assets is mainly due to receivables, specifically:
- Receivables in 2017 decreased by 3,293 million VND compared to 2016 (down 9.7%), in 2018 increased by 7,786 million VND (equivalent to 25.5%) compared to 2017, so the company's receivables have not been consistent over the years. Receivables in 2018 increased due to receivables from customers increasing by 11,104 million VND (up 52.8%), prepayments to sellers also increased by 458 million VND (equivalent to 24.9%), and other receivables decreased by 3,776 million VND (down 49%) compared to 2017. The data shows that receivables from customers increased sharply, maybe the company has let customers owe money and debt collection has not been effective. The company needs to take measures to improve debt collection ability.
- In addition, the company's cash capital in 2017 was VND 66,841 million (an increase of VND 27,983 million, equivalent to 72%) compared to 2016, and in 2018 it decreased by VND 5,044 million (equivalent to a decrease of 7.5%) compared to 2017. Cash capital in 2018 decreased slightly due to an increase in receivables, specifically a sudden increase in receivables from customers in 2018.
- The balance sheet shows that the company's inventory in 2017 increased by 6,097 million VND compared to 2016 (equivalent to an increase of 20.6%), and continued to increase by 8,691 million VND (an increase of 24.3%) compared to 2017. Inventory management is extremely important in the production and business activities of the company, a shortage or surplus in inventory proves the expense in the organization and operation. Through the data, we can see that the company has not done well in releasing inventory over the years, this is not
beneficial for businesses because it will increase inventory management costs, as well as prolong production time and distribution of goods, causing costs. But it is also impossible to cause a shortage of inventory, which may not meet market demand. In terms of both value and proportion, inventory demand has been increasing over the past 3 years.
In addition, the company's long-term assets have changed over the years. Long-term assets increased by VND 234,892 million in 2017 (equivalent to 73.6%), but in 2018, long-term assets decreased by VND 20,091 million compared to 2017 (down 3.6%). The value of long-term assets is mainly affected by the increase in fixed assets and long-term financial investments. Specifically, fixed assets in 2017 increased by VND 209,194 million (up 69.2%) compared to 2016; In 2018, the value of long-term assets was VND 533,980 million, a decrease of VND 20,091 million (equivalent to 3.6%) compared to 2017. The company invested in fixed assets in investing in the transport fleet, architectural structures as well as purchasing and repairing other machinery and equipment.
However, horizontal analysis of assets only shows us the fluctuations of indicators over the years without seeing the increase or decrease in the proportion of indicators in total assets. Therefore, to analyze the asset structure more thoroughly, we need to analyze the asset structure vertically.
Hai Phong Private University Graduation Thesis
Table 2.2: Vertical analysis of asset structure
Unit: million VND
Target
2016 | 2017 | 2018 | ||||
Value | Proportion | Value | Proportion | Value | Proportion | |
A. Current assets | 103,733 | 24.5% | 151,929 | 21.5% | 162.011 | 23.3% |
I. Cash and cash equivalents | 38,857 | 9.2% | 66,841 | 9.5% | 61,797 | 8.9% |
II. Short-term financial investments | - | 0% | - | 0% | - | 0% |
III. Short-term receivables | 33,879 | 8.0% | 30,586 | 4.3% | 38,372 | 5.5% |
1. Accounts receivable from customers | 20,514 | 4.9% | 21,041 | 3.0% | 32,145 | 4.6% |
2. Prepayment to the seller | 2.014 | 0.5% | 1,843 | 0.3% | 2.301 | 0.3% |
3. Other receivables (from Tax, from Employees, others) | 11,351 | 2.7% | 7,702 | 1.1% | 3,926 | 0.6% |
IV. Inventory | 29,641 | 7.0% | 35,737 | 5.1% | 44,428 | 6.4% |
V. Other current assets | 1,356 | 0.3% | 18,765 | 2.7% | 17,415 | 2.5% |
B. Long-term assets | 319,178 | 75.5% | 554,070 | 78.5% | 533,980 | 76.7% |
I. Fixed assets | 302,330 | 71.5% | 511,523 | 72.5% | 493,658 | 70.9% |
1. Original price of fixed assets | 378,414 | 89.5% | 649,705 | 92.0% | 633,313 | 91.0% |
2. Accumulated depreciation | 76,084 | 18.0% | 138,182 | 19.6% | 139,655 | 20.1% |
II. Long-term financial investments | 11,116 | 2.6% | 34,134 | 4.8% | 39,459 | 5.7% |
III. Other long-term assets | 5.162 | 1.2% | 6,929 | 1.0% | - | 0% |
1. Long-term receivables | 5.162 | 1.2% | 6,929 | 1.0% | - | 0% |
Total assets | 422,912 | 100% | 706,000 | 100% | 695,991 | 100% |
(Source: Financial report 2016 - 2018)
Student: Nguyen Thi Quynh Anh 37 Class: QT1801T
120%
100%
100%
100%
100%
80%
75.5%
78.5%
76.7%
60%
40%
24.5%
21.5%
23.3%
20%
00%
2016
2017
2018
Current assets
Long-term assets
Total assets
Chart 2.1: Asset Fluctuation over Time
Comment:
Through the above analysis table, we can see that in the total assets of the company, short-term assets account for a smaller proportion than long-term assets. Specifically, in 2016, short-term assets accounted for 24.5%, long-term assets accounted for 75.5% of total assets; in 2017, short-term assets accounted for 21.5%, long-term assets accounted for 78.5% of total assets; in 2018, short-term assets accounted for 23.3%, long-term assets accounted for 76.7% of total assets. It can be seen that short-term assets in 2018 increased compared to both 2016 and 2017, increasing quite evenly but the growth rate was relatively slow and long-term assets, although decreasing, still accounted for a large proportion of total assets. This is reasonable for a shipping company like Thanh Dat Shipping and Trading Company Limited, which always has to invest in ships, as well as increase maintenance and repair activities of machinery, equipment, and old transport vehicles to improve the company's operational capacity.
In current assets:
- Cash capital accounts for the largest proportion of short-term assets. In 2016, it accounted for 9.2% of total assets, in 2017, it accounted for 9.5% of total assets and decreased to 8.9% of total assets in 2018. Because the company operates in the field of maritime transport, it needs a certain amount of available money to be able to respond promptly when incidents occur to the ports, factories, equipment and also to reserve for its payment activities.
- Short-term receivables also account for a significant portion of short-term assets. In 2016, receivables accounted for 8% of total assets, in 2017