For Commercial Banks in Kien Giang Province

+ Revenue target:

In the coming years, due to higher room quality and service quality and the exploitation of many other complementary entertainment and tourism services, revenue is forecasted as follows:

From 2017 to 2020, average annual revenue increased by 24 - 25%, of which domestic revenue increased by an average of 23 - 24% annually, and international revenue increased by 21% or more [27].

Table 5.2: Revenue target by 2020

Unit: Million VND

Plan

Revenue Type

Year

2015

2016

2017

2018

2019

2020

PA I

Revenue from

international travel

45,781

59,682

69,422

80,529

93,413

168,143

Revenue from

domestic travel

267,144

308,466

343,852

467,772

699,352

1,748,380

Total

312,925

368,148

413,274

548,301

792,765

1,916,523

PA II

Revenue from

international travel

62,679

68,956

72,330

87,417

105,650

216,582

Revenue from

domestic travel

296,489

356,716

413,818

537,963

801.410

2,245,550

Total

359,168

425,672

486,148

625,380

907.060

2,462,132

Maybe you are interested!

Source: Department of Culture, Sports and Tourism of Kien Giang province [18]

To achieve the above goal, Kien Giang province needs to rapidly develop tourism business, welcome guests by ship regularly and expand, tourist areas are formed and gradually upgraded, projects need to be implemented on schedule, room quality is improved, management level and professional expertise of tourism staff are raised, and types of entertainment tourism are invested and developed.

5.2. CONCLUSION

Through the survey results on issues related to the lending activities for ecotourism development of commercial banks in Kien Giang province. The author draws the following conclusions:

 The Party's policies and guidelines; the State's relevant laws have not created the most favorable conditions for the development of ecotourism in general and credit activities for the development of ecotourism in Kien Giang in particular.

 The current ecotourism model suitable for the general development of Kien Giang province is: Marine ecotourism model, ecotourism associated with historical relics, natural forest ecotourism.

 Investment capital for ecotourism development is still limited, mainly based on small-scale self-capital of investors and therefore has not fully exploited the tourism potential of the region. Accordingly, the demand for investment capital for ecotourism development is very large.

 Bank capital is considered stable and large-scale, able to meet the capital needs for investment in ecotourism development. In cases where large capital is needed, banks can also use syndicated lending solutions.

5.3. POLICY SUGGESTIONS

5.3.1. For commercial banks in Kien Giang province

5.3.1.1. Credit pricing policy

Firstly , commercial banks in Kien Giang province should consider the types of fees applied to credit transactions with customers. If any type of fee is deemed unnecessary, it should be removed from the list of fees charged to customers, because transaction fees increase credit prices, do not create competition, so customers will not come to the bank to borrow capital even though they have a need, thereby affecting the bank's ability to provide credit.

Second , commercial banks in Kien Giang province need to consider reducing credit interest rates to create more competitive interest rates, thereby increasing revenue.

Attract more customers to borrow from banks, promote customer expansion, thereby increasing bank loan sales.

Third ; commercial banks in Kien Giang province need to improve the efficiency of capital management so that banks do not fall into a state of capital shortage to meet the demand for loan disbursement to customers, forcing banks to borrow overnight or in the interbank market with high interest rates to provide credit to customers. As a result, the cost of capital for banks increases, resulting in reduced profits.

Fourthly ; commercial banks in Kien Giang province need to develop a diverse lending interest rate policy suitable for each type of customer borrowing to develop ecotourism. Customers borrowing capital to develop ecotourism include individuals, households, and businesses, so commercial banks in Kien Giang province should develop lending interest rates suitable for each type of customer. In addition, the purpose of borrowing capital is also different, such as borrowing capital to renovate tourist attractions to serve tourism; borrowing capital to invest in building motels and hotels; borrowing capital to build restaurants and cafeterias, etc., so commercial banks in Kien Giang province can develop lending interest rates that are different for each type of borrowing purpose. In addition, banks should have a preferential lending interest rate policy for customers who regularly borrow capital from banks but have a good repayment history.

5.3.1.2. Policy to improve credit service quality

One is ; commercial banks in Kien Giang province need to establish an ecotourism credit team, these are people with experience in appraising to grant credit to customers who are households, businesses or investors who need capital to invest in developing ecotourism. People in this credit team with the ability to understand the type of ecotourism along with professional credit appraisal skills can process customer files quickly and accurately to promptly meet customers' capital needs, creating competition.

Second , commercial banks in Kien Giang province need to increase

Strengthening training, coaching, and improving professional qualifications for credit officers serving credit activities for ecotourism development. From there, the assessment of production and business plans or investment projects of customers will be quick and accurate in terms of economic, social, and financial benefits to calculate the customer's ability to repay the debt. Valuing the value of collateral assets in accordance with market prices, as a basis for deciding whether to agree to lend capital to customers or not. The decision to refuse or agree to lend is greatly influenced by the appraisal report of the appraisal staff. Therefore, commercial banks should create favorable conditions for credit officers to study and improve their professional qualifications.

Third , commercial banks in Kien Giang province need to modernize their facilities to create a good image in front of customers because sometimes customers evaluate the bank's business activities based on external appearances such as offices, business equipment, transaction counter layout, etc., whether they are spacious and convenient for customers when they come to transact with the bank.

Fourthly , commercial banks in Kien Giang province should also effectively apply modern technology because technology not only helps banks improve their business processes, transaction methods, and develop new products and services, but also helps banks build a database of customer information that can be quickly accessed from the bank's system when needed. Therefore, commercial banks in Kien Giang province need to invest in equipping themselves with advanced techniques and technology, using software programs that are always updated to evaluate customers and investment projects. From there, classify and rank customers to determine the level of customer reputation, reasonable funding level, etc.

Fifth , commercial banks in Kien Giang province need to expand their networks to areas with potential for ecotourism development to facilitate customers who need to use banking services. In addition to meeting customers' credit transaction needs, tourists also need to use banking services in tourism development areas. In particular, the number of international tourists visiting Kien Giang is increasing, so the need for foreign currency conversion or withdrawal of money to serve the tour, shopping for souvenirs, and local specialties.

regional characteristics. Therefore, these transactions can generate additional revenue for banks in addition to income from credit activities.

Sixth , commercial banks in Kien Giang province regularly adjust the service attitude of their employees, because that is one of the decisive factors in the quality of the bank's credit services. If the consultant is cheerful, enthusiastic, and explains in detail what documents are required for a loan application, what steps are included in the loan process if the customer is not clear, this is simple but helps customers grasp the information to prepare valid documents if they need to borrow capital from the bank.

5.3.1.3. Customer expansion policy

First of all , commercial banks in Kien Giang province need to increase capital mobilization, especially medium and long-term capital to meet customers' borrowing needs. To increase the scale of credit for ecotourism development, banks must have an abundant source of capital with diverse terms. This is an important condition for commercial banks in Kien Giang province to be able to meet all customers' borrowing needs. Due to the nature of tourism business, customers have a high demand for medium and long-term loans, so banks also need to expand medium and long-term credit. Normally, to lend medium and long-term, banks must mainly use medium and long-term capital, because using mobilized capital for the right function and purpose will ensure the safety of the bank's liquidity. In reality, the structure of mobilized capital of commercial banks in Kien Giang province has an imbalance in terms of short-term capital surplus but lack of medium and long-term capital. Therefore, banks need to diversify their mobilization forms to suit each customer segment to attract medium and long-term capital, creating a basis for providing medium and long-term credit for ecotourism development, contributing to generating income for banks.

Next ; commercial banks in Kien Giang province need to strengthen communication and product promotion so that customers can easily access information about credit products for ecotourism development at the bank, product characteristics, information on loan interest rates, repayment period, total amount to be paid each period, etc. In addition, commercial banks in Kien Giang province need to strengthen communication and product promotion so that customers can easily access information about credit products for ecotourism development at the bank, product characteristics, information on loan interest rates, repayment period, total amount to be paid each period, etc. In addition, commercial banks in Kien Giang province need to strengthen communication and product promotion activities.

Giang also needs to increase the development of new products for ecotourism development. The main method of credit granting at banks today is cash loans, so banks should provide other credit products such as guarantees, discounting of valuable papers, factoring, etc. for customers when they need capital to invest in ecotourism development.

Finally ; commercial banks in Kien Giang province should consider providing credit without collateral for customers who regularly borrow from banks but have a good credit history. Combined with expanding loans secured by assets formed from loans for investors in ecotourism development. In addition, credit should be expanded for customers using loan guarantees by the reputation of a third party or guarantees by assets of a third party to ensure the ability to pay interest and principal to banks.

5.3.1.4. Policy to strengthen risk control

First , commercial banks in Kien Giang province need to check whether customers use loans for the right purposes as committed in the credit contract or not, because if customers use loans for the wrong purposes, it may lead to the possibility of not being able to recover the loan or being able to recover it but not on time.

Second , commercial banks in Kien Giang province regularly check customers' financial situation through their deposit accounts to assess the bank's ability to recover loans.

Third , commercial banks in Kien Giang province need to classify debts and set aside risk provisions from credit activities for ecotourism development in accordance with current laws.

5.3.2. For relevant agencies

5.3.2.1. Policy on planning for ecotourism development

- Region 1. Ha Tien - Kien Luong

Continue to upgrade some landscapes in the ten landscapes of Ha Tien: Thach Dong, Mui Nai, Mac Cuu Tomb Area. Exploit the Hon Chong natural scenic reserve, invest in upgrading and expanding Bai Duong, Hon Phu Tu... which are both good beaches, beautiful landscapes and entertainment areas.

Renovate and embellish Hang Pagoda according to Buddhist cultural requirements. Quickly restore handicrafts in Ha Tien town (tortoise shell, black stone) and Kien Luong district by encouraging and giving incentives to handicraft households and having specific projects. Plan in detail the eco-tourism area in Dong Ho, plan in detail some caves such as: Thach Dong, Hang Tien, Moso and some islands.

In order to exploit the advantages and natural resources, this place has gathered many factors that can form the image of the country's famous landscapes, this is a unique feature of the area, so it is possible to propose the project "Ha Tien - a little bit of Vietnam", Promote construction plans to develop ecotourism resources, exploit ecotourism attractions well. Build ethnic cultural villages, Hon Chong and Hon Trem tourist areas, expand Chua Hang and Mui Nai tourist areas. Build cultural tourism products. Restore and recreate Giang Thanh Co to create a unique feature for ecotourism. Restore the natural landscape of Hon Phu Tu.

Gradually improve the electricity, water, infrastructure and technical facilities to serve tourism development. It is necessary to renovate, upgrade and expand the planting of trees along the roads, build main roads to tourist areas and connect scenic spots, and build relationships between the mainland and islands and archipelagos.

Continue to invest in building Mui Nai tourist area, soon making this tourist area one of the important tourist areas in the Mekong Delta. Upgrade existing hotels to meet star hotel standards. Invest in more water and land vehicles, form a fleet of cars and yachts specializing in transporting tourists. Gradually implement projects in the detailed planning of Dong Ho, Hang Tien, Moso, Thach Dong and the islands as a premise for developing eco-tourism in the following years.

The main types of tourism are sightseeing tours, historical sites, marine eco-tourism, entertainment and beach resorts... At the locations

can organize types of ecotourism:

In Dong Ho : Organize a cruise, eat specialties; visit Mac Cuu tomb, Thach Dong, ancient pagodas, ... (especially Mac Cuu tomb complex, Co Nam tomb and Phu Dung Tu); listen to folk songs, recite Mac Thien Tich poetry, Dong Ho poetry, Chieu Anh Cac poetry on the boat, floating houses; visit ethnic cultural village, visit tropical caves. Cruise to Hon Nghe to visit Buddha statue, visit pagoda on the island.

Mui Nai Area, Hon Trem : Eco-tourism, swimming and surfing, entertainment on water and on land.

Hon Chong : Swimming, visiting Hang Pagoda, visiting Tien Well Cave, Tien Cave, Moso, Phu Tu Islet, cruise to visit the islands: (Hon Nghe, Hon Heo, Hon Dam.)

Ba Lua Archipelago : Swimming at Hon Heo Beach, cruising to the islands, organizing fish farming at Ba Hon Dam, choosing an island to raise monkeys, visiting monkey circus. Cruising to the Pirate Archipelago, organizing many different types of tourism: Relaxation, fishing, diving.

Develop tourism cooperation well with An Giang province and Ho Chi Minh city to create inter-provincial tours, exploit the source of pilgrims visiting the festival, develop inter-route tours with Kep city (Cambodia) and expand to countries in the region.

Converting some fishing boats and passenger boats to serve coastal tourists. Investing in forming a fleet of tourist boats to serve visitors to the islands. Training and fostering crew members to have the style of welcoming and guiding visitors.

Guide, propagate, and create conditions for local residents to understand the policy to have civilized behavior and participate in the work of welcoming and serving guests, train professional security and rescue teams to ensure the safety of tourists during their visit.

Research and consider detailed planning of Dong Ho eco-tourism area,

Comment