Chapter 1
THEORETICAL ISSUES OF INSTITUTIONAL IMPLEMENTATION
RESPONSIBILITIES OF HEADS OF MINISTRY-LEVEL STATE ADMINISTRATIVE AGENCIES IN ADMINISTRATIVE PROCEDURE REFORM
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Viewpoints on Ensuring Institutional Implementation of the Responsibility of the Head of the Ministry-Level State Administrative Agency in Administrative Procedure Reform -
Improving the Quality of Administrative Procedures and Strengthening the Direction and Management of the Heads of State Administrative Agencies at the Ministry Level -
Regularly Improve Administrative Procedures Combined With Reviewing And Issuing State Legal Documents In The Field Of Inspection -
Payment Methods Procedures at Head Office – Military Commercial Joint Stock Bank -
Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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At that time, the Branch had to set aside a provision for credit risks, which reduced the 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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1.1. HEADS AND RESPONSIBILITIES OF HEADS OF MINISTRY-LEVEL STATE ADMINISTRATIVE AGENCIES IN ADMINISTRATIVE PROCEDURE REFORM
1.1.1. Concept of the head of a state administrative agency at the ministerial level

1.1.1.1. Concept and characteristics of the head of a ministerial-level state administrative agency
In every agency, organization, or unit, there exists a “head”. These are people whose authority, responsibility, and representation for the agency, organization, or unit are established by law (or the organization’s charter). The head of an agency, organization, or unit is the leader, manager, and has the primary responsibility and highest legal responsibility for the organization and operation of that agency, organization, or unit.
In our country's political system, there are organizations led by the chief regime, there are organizations led by the collective regime, but regardless of the regime, the head (the leader, manager) is very important. Associated with the "head" in an agency, organization, or unit is always authority and responsibility. Authority is the power of the head given by law, superiors, or organizations so that they have the right to decide on major tasks and lead the organization to carry out those tasks in the agency, organization, or unit, at the same time they must also be responsible for the issues they have decided and organized to carry out.
Thus, the head of an agency, organization or unit is the leader, manager, person with primary responsibility and highest responsibility for that agency, organization or unit.
The ministerial-level administrative agencies are the central-level administrative agencies with their own authority, organized and operating according to the principle of responsibility of the head, including: Ministries and ministerial-level agencies (collectively referred to as Ministries). The head of the ministerial-level administrative agency (collectively referred to as the Minister) is the person with the highest position in the ministerial-level administrative agency, with the highest authority in leading and managing the activities of the Ministry and ministerial-level agencies to implement the set leadership and management goals. Therefore, it can be understood that: The head of the ministerial-level administrative agency is the Minister who is given the authority to manage the state over the industry and field nationwide and is personally responsible for his/her management decisions.
The head of a ministerial-level public administrative agency has the following characteristics:
- As a member of the Government, empowered to perform the responsibilities of the head of a Government agency, perform the function of State management over sectors and fields nationwide; and manage state public services in the assigned sectors and fields.
- Has the authority to make management decisions and is personally responsible for his/her management decisions nationwide; at the same time is responsible for organizing, commanding, and supervising the implementation of issued management decisions.
- Responsible for guiding and coordinating with competent authorities in organizing the implementation of management decisions related to the industry and field in charge.
1.1.1.2. Role of the head of a ministerial-level state administrative agency
The head of a ministerial-level public administration agency is the person responsible for directing, managing, and orienting all systematic vertical public administration activities.
from central to local levels to implement the goals and requirements for industry and sector development. The role of the head of the ministerial-level public administrative agency is shown in the following contents:
- Organize and direct the implementation of the functions and tasks of the Ministry according to the provisions of law (Assist the Government in unifying State management of assigned sectors and fields; organize the implementation of legal documents, direct and direct agencies and organizations under its authority...).
- Advise and issue legal decisions within authority (advise and submit to the Government for issuance of documents within the authority of sector and field management; issue legal documents and individual administrative decisions within the authority to manage, direct and operate within the scope of sectors and fields...).
- Represent the Ministry in relations with other state agencies in the state apparatus (preside over and coordinate with members of the Government to organize the implementation of tasks within its authority; report to the National Assembly and the Government on the implementation of State management tasks in the sectors and fields under its management authority...).
- Manage the staff under authority (recruitment, appointment, training, fostering, rewarding, disciplining the staff under management authority...).
1.1.2. Concept of administrative procedure reform and responsibility of heads of state administrative agencies at the ministerial level in administrative procedure reform
1.1.2.1. Administrative procedure reform
The State is a special organization that performs management functions to ensure order, stability and social development through the State apparatus. In principle, the State apparatus of any country is composed of three systems of State agencies, including: agencies that exercise legislative power, agencies that exercise executive power and agencies that exercise judicial power.
law. In which, the agency that exercises executive power is called the system of state administrative agencies that have the role of managing, maintaining, promoting social development and ensuring the provision of public services to society according to certain goals. By performing the executive function, the state administrative agency performs state management through organizational and power impact to operate social relations, in order to increasingly ensure human rights and civil rights as prescribed by law. At the same time, along with the process of development and democratization of social life, the role of state administrative agencies is increasingly important and expanding. However, along with the development of the economy and the impact of economic, political, cultural and social conditions, the activities of state administrative agencies also reveal or hide certain shortcomings and limitations compared to the requirements of development (such as: backwardness of institutions, ineffective administrative organization model, bureaucracy of civil servants...), therefore, the state administrative system must be reformed to eliminate or improve limitations to better meet development goals.
That shows that administrative reform is an inevitable requirement to ensure that the administration operates more effectively and efficiently to meet the objective requirements of social development. Therefore, to meet the goals of creating positive changes in the relationships between state administrative agencies and citizens and society, administrative reform must be carried out synchronously for many factors, in which institutional reform is an important issue and is most clearly demonstrated through regulations on administrative procedures - the procedures by which state administrative agencies handle requests and requests of individuals and organizations to ensure the legitimate rights and interests prescribed and guaranteed by the State.
In the most general sense, administrative procedures are the procedures and methods of handling work of competent state administrative agencies in the internal relationship of the sector and between state administrative agencies and individuals and organizations to ensure the achievement of goals, in accordance with the authority of state agencies or individuals and organizations in state administrative management. However, when approaching from the perspective of ensuring the legitimate rights and interests of individuals and organizations as prescribed by law and providing public services, administrative procedures must be strictly regulated in terms of procedures, methods and certain requirements and conditions. From that, it can be understood that: administrative procedures are the procedures and methods of handling work of competent state administrative agencies in the internal relationship of the administrative sector and the relationship between state administrative agencies and individuals and organizations.
With such a concept, administrative procedures can be considered as a " bridge" between state administrative agencies and individuals and organizations to perform state management tasks and ensure the rights and obligations of individuals and organizations as prescribed by law. Therefore, to ensure the service goal of the administrative system in response to the requirements and demands of social life and to improve the effectiveness and efficiency of state management, administrative procedure reform needs to be carried out regularly and can be considered a basic condition for ensuring human rights and civil rights; properly resolving the relationships between the State and citizens and meeting the requirements of building a service-oriented administrative system in the conditions of building a socialist rule-of-law state of the people, by the people and for the people in our country.
In the period of building a socialist rule-of-law state and the process of international integration, in the process of gradually shifting from a traditional administration to a service-oriented administration, administrative procedure reform is a more urgent requirement than ever. Because administrative procedure reform is a necessary condition to strengthen the relationship between the State and the people, and enhance people's participation in state management. Thus, associated with administrative reform, administrative procedure reform is an important content and is placed in the overall task of reforming the state administrative institution. Considered below
In terms of content, implementation methods, goals and results, administrative procedure reform is a process of reviewing and evaluating to eliminate unreasonable and unnecessary steps and procedures, strictly controlling the issuance of new administrative procedures according to legal regulations and publicly and transparently implementing all administrative procedures in practical and appropriate forms.
From the above analysis, it can be understood that: Administrative procedure reform is the planned amendment and replacement of old, unreasonable or no longer suitable administrative procedures to achieve the goal of perfecting administrative procedures, ensuring the legitimate rights and interests of the State, society and people.
1.2.2.2. Responsibilities of heads of state administrative agencies at the ministerial level in administrative procedure reform
According to the Vietnamese Dictionary, responsibility is understood as: 1. The assigned work or considered assigned work, must be completed, if the result is not good, must bear the consequences; 2. The obligation to their words and actions, ensuring correctness, if wrong, must bear the consequences [31, p.1020] . According to this definition, responsibility consists of two basic components: i) Things that should be done, must be done, must be done (understood as duties, tasks, powers); ii) Commitment to the results of performing tasks, powers and being responsible for those results. In which, the first part is considered the cause and the second part is considered the inevitable consequence . Therefore, it can be understood: Responsibility is the things that should be done, must be done, must be done with good results; if the results are not good, must bear certain consequences.
From a legal perspective, the term "responsibility" can be understood as duty, attitude towards assigned duties, tasks, work or the ability to suffer negative consequences when failing to properly perform prescribed obligations or assigned work.
The Minister is the head of the Ministry-level State administrative agency, both a member of the Government and the head and leader of the Ministry. Therefore, the responsibility of the head of the Ministry-level State administrative agency is also understood in both meanings as above. Accordingly, the responsibility of the head of the Ministry-level State administrative agency may include all functions, tasks, and powers prescribed by law that the head must perform and must be responsible for. In case of violation (due to failure to perform or improper performance of assigned functions, tasks, and powers), the responsibility will be handled according to the provisions of law depending on the nature and level of violation.
From the above approach, it can be understood that: The responsibility of the head of a ministerial-level public administrative agency is to perform all tasks, powers and obligations of the head of the Ministry; any violation will be handled according to the provisions of law.
According to the provisions of Decree No. 157/2007/ND-CP dated October 27, 2007 of the Government regulating the responsibility regime for heads of State agencies, organizations and units in performing tasks and public duties, the responsibility regime for heads of ministerial-level State administrative agencies includes the following basic contents:
- Be responsible for all activities of the agency, organization, unit assigned to lead and manage; Be exemplary and strictly comply with the Party's guidelines, policies, the State's laws and instructions from superiors; organize and operate the agency, organization, unit to properly perform its functions, tasks, powers, with quality and within the assigned time limit; decide on policies and necessary solutions to complete tasks and be responsible for such decisions;
- Issue or submit to competent agencies and individuals for issuance of legal documents to ensure the legality of documents (including: legal documents, individual documents, directive and administrative dispatches, and internal rules, regulations, charters, and provisions applicable within agencies, organizations, and units under management).
- Based on regulations on assignment, decentralization and assigned tasks and powers, issue documents specifying the functions, tasks, powers and responsibilities of deputies, agencies, organizations and constituent units; ensure no overlap, duplication or vacancy.
- Recruit, use, evaluate, train, foster, raise salary, nominate for promotion exams, decide on promotion, appoint, reward, discipline, dismiss and manage the staff in accordance with the Party's policies and the State's laws;
- Effectively manage and use assigned public assets; prevent and fight fires and explosions and ensure labor safety at agencies, organizations and units in accordance with legal regulations; regularly manage and inspect to prevent corruption, waste, damage, loss and leakage; Strictly implement legal regulations on office culture.
- Organize the implementation of the Democratic Regulations in agencies, organizations and units; resolve complaints and denunciations within the scope of authority in accordance with the provisions of law; Comply with the provisions of law on protection of state secrets; on speaking, exploiting, managing and using the Internet in agencies, organizations and units....
In case of failure to properly perform functions, duties and powers as prescribed by law, the head must bear legal responsibility - adverse consequences such as: Disciplinary responsibility (Reprimand; warning; dismissal; dismissal; salary reduction; demotion; forced resignation); civil responsibility; criminal responsibility; disciplinary responsibility.
In the field of administrative procedure reform, the responsibility of the head of a ministerial-level administrative agency is understood as the responsibility to perform tasks and powers in advising on regulations and controlling administrative procedures applied in the sector and field under the management authority of the Ministry.





![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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