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4.2.1.2 For Dong Nai Province
The formation of farm economy is closely linked to self-concentration and land accumulation. Appropriate land policy is the fundamental step to create the premise for sustainable and effective development of farms. First of all, the Provincial People's Committee continues to carry out the work of granting land use right certificates to farms so that they can have full economic benefits, ensure their peace of mind in investing, mobilizing capital and removing other difficulties, encouraging the effective exploitation of natural conditions and socio-economic conditions of the Province.
Quickly deploy the relocation of livestock farms to concentrated livestock planning areas in districts with large livestock areas such as Thong Nhat, Trang Bom, Vinh Cuu to create concentrated livestock areas and reduce environmental pollution. From there, invest in building new, expanding, and upgrading industrial processing facilities to attract raw materials from livestock farms. In fact, the Province has been planning and relocating concentrated livestock units to planning areas, but this planning still has many shortcomings such as the planning location is far from residential areas, causing difficulties in transporting goods, hiring labor, far from raw material areas, and difficulties in consuming products; The Provincial People's Committee and localities have not had policies to support farms moving to concentrated livestock farming areas, there are no policies to encourage farms to move, the infrastructure in concentrated livestock farming areas has not been completed, etc. Therefore, it is necessary to have detailed and specific plans and policies to support pig farms to move to livestock planning areas in the coming time.
The province needs to focus more on investing in science and technology, and have effective measures to encourage and mobilize the maximum participation of all components and classes in society in researching and transferring science and technology to serve agriculture and rural areas. Increase the import of advanced foreign technology, especially breeds, livestock, machinery and equipment with high productivity and quality suitable to the specific conditions of the locality and each farm in terms of capital, human resources and other factors.
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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
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 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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For Vietnam Association of Certified Public Accountants Vacpa -
Assessment of the Quality of Sustainable Tourism Development Factors in Nghe An Province from Provincial Tourism Management Officers -
Policy of Ha Tinh Provincial Party Committee on Building Grassroots Party Organizations in Enterprises -
On behalf of the Vietnam Association of Certified Public Accountants (Vaa)
In order to ensure and proactively source veterinary medicine to serve the production and business process of farms, some proposals are as follows: The province and the agricultural sector
160

The industry needs to invest in depth in the veterinary field in the long term, both in terms of highly skilled staff with synchronized key laboratories combined with international cooperation programs on diseases related to inflammation; Research and produce vaccines to proactively and effectively prevent diseases that have existed and will exist in the future in the province; Authorities should strengthen supervision of the veterinary medicine market in the province regarding drug quality and drug prices to ensure the interests of livestock farms.
Strengthening inspection and examination to protect the environment, ensuring food safety and hygiene, thereby helping livestock farms develop sustainably and increase product value. Local authorities need to have policies to manage livestock, minimize the occurrence of epidemics, and have measures to prevent epidemics. It is necessary to raise awareness for farmers through more classes on experience in protecting safety in livestock farming.
Forming demonstration models and providing agricultural extension guidance to apply advanced techniques to help livestock farms be safe and economically efficient.
The Provincial People's Committee plans, builds, renovates and upgrades infrastructure and equipment of fresh food markets, ensuring environmental hygiene and food safety, first of all in urban areas and industrial zones.
The province has a policy to call for and encourage FDI enterprises to invest in the livestock sector to support, help, and share with other pig farms in the province about knowledge, livestock techniques, technology, and consumption markets.
On the basis of the overall socio-economic planning, the agricultural sector, together with related sectors and localities in the province, must continue to develop, supplement and complete land use planning, invest in research to build raw material areas to maximize the advantages of the climate and land of the province and to proactively source animal feed for farms. The Ministry of Agriculture and Rural Development and the Department of Agriculture and Rural Development of the province have a plan to encourage the expansion of the area of soybeans, corn, cassava, potatoes, etc. domestically and in the province to reduce the import of raw materials from abroad. To do this, in the draft Strategy for the development of the crop sector until 2020, the Department of Crop Production has proposed to prioritize increasing the area
161
Corn cultivation area will increase from 1.1 million hectares to 1.5-2 million hectares, with intensive farming applied, technical advances and new varieties introduced into production. Accordingly, part of the ineffective rice area will be converted to corn cultivation, while the summer-autumn crop season will be changed, increasing the winter corn area. In addition, it is necessary to soon apply new technology to increase crop productivity, develop livestock breeds using animal feed processed from domestic raw materials.
4.2.1.3 For the Provincial Livestock Association
The Livestock Association and provincial departments periodically organize exhibitions and fairs to introduce and promote typical high-quality, advanced products, advanced livestock equipment and technologies that FDI companies are currently applying for other farms to learn from. Organize exchanges, learning sessions, and experience sharing between livestock farms, in which FDI companies are encouraged to actively participate in these activities to share knowledge and livestock experience with other livestock farms.
It is necessary to provide full information on prices, markets, input materials, domestic and foreign product consumption markets so that farms can proactively produce and do business through seminars and experience exchanges.
The Association is a bridge for the province's livestock farms to exchange information, reflect information and requests from farms about the production and consumption of products to relevant agencies as well as disseminate and propagate policies and legal documents related to the livestock industry. Timely grasp the difficulties and aspirations of the farms to have measures proposed to the superior authorities for timely assistance.
4.2.2 Micro solutions
4.2.2.1 Solutions for increasing herd size
Increasing the herd size is a condition for applying advanced and modern techniques to production, aiming at chemical production to meet market demand. Besides, the herd size greatly affects the efficiency of livestock farming due to taking advantage of the advantages of scale.
In order to plan the overall livestock industry in general within the whole province, to form key livestock areas for the main livestock species.
162
such as pigs, to increase the herd size of livestock farms. Therefore, some proposed solutions to increase are as follows:
Based on the overall socio-economic development plan of the province, the agricultural sector and related sectors, the Provincial People's Committee and districts need to implement long-term planning, stabilize industrial livestock farming areas, and concentrate farms down to the district and commune levels. Continue to build, supplement and complete land use planning, invest in research to specifically identify specialized livestock farming areas to maximize the advantages of climate and land of each different region. On that basis, develop a specific and scientific economic development plan for livestock farms for each region and locality. In addition, encourage conversion, transfer, land consolidation, plot exchange, etc. to create land funds for land allocation and land lease to organizations and individuals with feasible investment projects approved by competent authorities. Convert ineffective farming areas, especially in midland and hilly areas, etc., to develop livestock farms. In addition, the formation of farm economy is closely linked to self-concentration and land accumulation. Appropriate land policy is the fundamental step to create the premise for sustainable and effective development of farm economy. First of all, the province and district need to focus on and urgently carry out the work of granting land use right certificates to farms with full economic benefits to ensure their peace of mind in investing, mobilizing capital and removing other difficulties, encouraging the effective exploitation of hilly and deserted areas, while taking into account long-term social and ecological environmental effects in order to expand the scale of livestock farming and increase herd size.
Quickly deploy the relocation of livestock farms to concentrated livestock planning areas with 139 concentrated livestock areas in 8 districts and Long Khanh town with a total area of over 15,674 hectares in districts with large livestock areas such as Thong Nhat, Trang Bom, Vinh Cuu to create concentrated livestock areas and reduce environmental pollution. Continue to implement Resolution 04 on investment in infrastructure construction in pilot areas for concentrated livestock development of the People's Committee. Accordingly, the province will invest selectively and focus on pilot projects instead of investing widely as before. Specifically, the whole province has 4 districts, including: Thong Nhat, Trang Bom, Xuan Loc, Cam My selected as pilot areas.
163
to implement. Each district also selects pilot projects for effective investment implementation. Currently, 3/4 districts have issued plans to implement pilot infrastructure investment and have initially brought about efficiency. Specifically, Thong Nhat district has invested in nearly 12km of roads and 20km of power lines in 5/10 planning areas and needs to continue to implement in the remaining areas. From there, invest in building new, expanding, and upgrading industrial processing facilities to attract raw materials from livestock farms. In fact, the Province has been planning and relocating concentrated livestock units to planning areas, but this planning still has many shortcomings such as the planning location is far from residential areas, causing difficulties in transporting goods, hiring labor, far from raw material areas, and difficulties in consuming products; The Provincial People's Committee and localities have not had policies to support farms to relocate to concentrated livestock areas, there are no policies to encourage farms to relocate, the infrastructure in concentrated livestock areas has not been completed,... Therefore, it is necessary to have detailed and specific plans and policies to support pig farms to relocate to livestock planning areas in the coming time such as completing infrastructure in concentrated livestock areas, supporting funding for relocation according to Decision No. 36/2013/QD-UBND with levels from
5,000,000 VND/month/farm depending on the scale of farming and support for 3 months, creating a stable consumption market for farms,... to help farms feel secure to expand production.
Speed up the process of granting farm certificates: When granted farm certificates, they will be able to enjoy preferential policies during the production process, creating favorable conditions for them to confidently increase the size of their herds.
Local authorities need to have policies to manage livestock, minimize the occurrence of epidemics, and have measures to prevent epidemics. Farmers must be raised aware through more classes on experience in protecting safety in livestock farming. The state needs to have insurance policies for livestock farms to limit risks for the farm, then they will be bold enough to expand the scale of livestock farming.
164
4.2.2.2 Input factor solutions
Firstly , about animal feed: to proactively source feed in animal husbandry and limit dependence on raw materials for animal feed processing from abroad. Some proposed solutions are as follows:
The Ministry of Agriculture and Rural Development and the Department of Agriculture and Rural Development of the province have a plan to encourage the expansion of the area of soybeans, corn, cassava, potatoes, etc. domestically and in the province to reduce the import of raw materials from abroad. To do this, in the draft Strategy for the development of the crop sector until 2020, the Department of Crop Production has proposed to prioritize increasing the corn growing area from 1.1 million hectares to 1.5-2 million hectares, applying intensive farming, introducing technical advances and new varieties into production. Accordingly, part of the ineffective rice area will be converted to corn, while the summer-autumn crop season will be changed, increasing the winter corn area. In addition, it is necessary to soon apply new technology to increase crop productivity, develop livestock breeds using animal feed processed from domestic raw materials. In order to build a raw material area for animal feed production, the State needs to soon have policies to support farmers in converting crops. The State and credit institutions should have preferential policies for businesses to borrow capital to invest in creating raw material areas. In addition, businesses, especially animal feed processing businesses, must act as a bridge, signing consumption contracts so that farmers can be completely assured in production. When the source of raw materials for animal feed processing is self-sufficient, animal feed processing businesses will not have to pay additional transportation costs, import taxes on raw materials, etc. This will both contribute to reducing production costs and stimulating agricultural production, creating jobs and income for farmers.
It is necessary to diversify the sources of imported animal feed ingredients by allowing foreign enterprises to import and distribute directly to Vietnamese enterprises, building an animal feed trading floor, increasing the capacity to reserve raw materials such as corn, soybean meal, fish meal, etc. for a long time. Strengthening propaganda and guidance on the use of industrial animal feed to increase the rate of use of this type of feed in livestock farming; From a macro perspective, the State needs to have policies to stabilize the macro economy, stabilize monetary policies (exchange rates, interest rates) and essential goods such as gasoline; have preferential policies for enterprises.
165
activities in the field of animal feed such as simplifying import procedures, reducing import taxes,...
Research institutes and scientists need to focus on researching feed mixing formulas suitable for our country's livestock farming conditions, soon introducing genetically modified crops into production; encouraging fishmeal processing; encouraging research to create new raw materials such as: supplementary feed, feed additives.
The Provincial People's Committee and specialized agencies have policies to support capital to help domestic animal feed processing facilities improve financial resources, technology, capacity and management experience as well as expand production scale and build long-term business strategies, meeting the demand for animal feed of farms to limit dependence on animal feed of foreign processing facilities. In addition, domestic animal feed processing facilities need to change their production thinking, have long-term business strategies, be creative, take advantage of market knowledge, culture, customer psychology and limit outsourcing production for FDI enterprises to improve production capacity and product consumption.
Implementing a 3-party model: bank - farm - animal feed processing facility, in which the bank supports capital and interest rates for animal feed processing facilities and livestock farms, animal feed processing facilities provide animal feed to farms with many forms of support such as support, consumption of animal feed output throughout the farm's livestock cycle, applying reasonable selling prices, avoiding sudden price increases. In addition, the specialized functional agencies of the Province strengthen inspection and supervision of animal feed processing facilities in the Province on product quality, product selling prices, publicly posting product selling prices; strictly punish animal feed processing facilities, animal feed agents that speculate for profit, increase selling prices causing market manipulation.
Second, about breeds: In order to prepare and proactively source good breeds for livestock farms, some recommendations are as follows:
The livestock industry in general and pig farms in Dong Nai apply scientific and technical achievements in breeding work. Strengthen the development of breeding pig herds, upgrade the province's livestock breeding facilities to ensure proactive breeding sources through good management of breeding sources from outside, tighten livestock quarantine, minimize external epidemics, ensure
166
quality of breeding stock. Pay attention to crossbreeding measures for good breeding stock, strive to proactively source breeding stock locally. The province has policies to encourage investors within the province to build large-scale farms specializing in providing high-quality breeding pigs to meet the breeding needs of livestock farms in the province.
In addition, there should be measures to encourage and promote businesses and scientific research agencies to research and select breeds and import advanced breeds from around the world to create good breeds, creating conditions to gradually help Dong Nai's livestock products become more competitive.
Third , regarding veterinary medicine: In order to ensure and proactively provide veterinary medicine sources to serve the production and business processes of farms, some suggestions are as follows:
The province and the agricultural sector need to invest in depth in the veterinary field.
long-term in terms of highly skilled staff with synchronized key laboratories combined with international cooperation programs on diseases related to inflammatory pathogens. The research center under the Provincial Veterinary Department needs to research and produce vaccines to proactively and effectively prevent diseases that have existed and will exist in the future in the province. To do this, it requires investment support from the Provincial People's Committee budget to build laboratories, invest in equipment and tools for research; have policies to create conditions and support research staff such as sending them for in-depth research training at universities and research institutes, and allowances for research staff.
The authorities strengthen supervision of the veterinary medicine market in the province regarding the quality of medicine and the selling price of medicine to ensure the rights of livestock farms. Specifically, they regularly inspect veterinary medicine stores and agents regarding the posting of selling prices and checking product quality; violators will be fined appropriately depending on the severity.
Farm owners need to coordinate with provincial and local veterinary agencies in disease prevention and control through timely and accurate monitoring and disease information to provincial veterinary agencies for timely handling measures. Monitoring and information systems must be built from province to district and must be implemented regularly and closely.

![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
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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