Build brand and create competitive advantage for vegetable, flower and strawberry products
Lam Dong province in domestic consumption and export markets.
To promote the conversion of vegetable and flower varieties applying technology.
high technology, Lam Dong Provincial People's Committee has approved the Project to improve the capacity of vegetable, flower and strawberry seed production according to high-tech agricultural processes for the period 2004 - 2010 (Decision No. 3235/QDUB, dated September 6, 2004). The project identifies solutions to support investment in infrastructure, technical machinery, laboratories for testing tissue culture and nurseries for high-tech vegetable and flower varieties.
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Policy on Development of Free Trade Zones, Industrial Parks, High-Tech Parks. -
Continue to Implement Mechanisms and Policies to Support the Development of High-Tech Agriculture -
Evaluating the effectiveness of agricultural and forestry farming models on limestone terrain in Yen Minh district, Ha Giang province as a basis for planning the district's agricultural and forestry development - 2 -
Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services".
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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high. By 2005,
Provincial People's Committee

issued Decision
Decree No. 129/2005/QD
UB, on Approval
specialized program
pair
structure
and eel
same as
plants, animals
local
believe
Lam Dong Province, period 2006 - 2010
(day
June 21, 2005), prioritize the conversion of high-quality vegetable and flower varieties with
total cultivated area
about 6,000 7,000 hectares, of which development
production
High-tech vegetables and flowers reached 1,731 hectares, and at the same time directed
Promote scientific research to select, create, and breed vegetables and flowers with high quality.
highly competitive. The province implements a policy to support farming households at a level
30-50% of the value of seedlings purchased to convert to vegetable and flower varieties. For
households in pilot model, experimental and trial model, Lam Dong province
implement 100% financial support
similar and partially supported
money
infrastructure construction
technical quality, production materials, and at the same time stipulate conditions for varieties.
and the beneficiaries include: the converted varieties must be new varieties,
The breed has high quality and better qualities than traditional breeds.
similar; similar
Supported households are those that are able to apply for benefits.
technical department
enter
production of new varieties
To improve the production capacity of high-tech vegetable and flower varieties,
On September 6, 2004, Lam Dong Provincial People's Committee approved the Project to Improve the production capacity of vegetable, flower and strawberry varieties according to high-tech agricultural processes.
of Lam Dong Agricultural Technology Application Research Center with 7 bidding packages. By 2007, the Province issued Decision No. 2122/QD
The People's Committee aims to add 3 more packages, bringing the total package to 10 packages with
The total cost was 11,326.7 million VND. By 2010, the items including specialized machinery and equipment for plant tissue culture laboratories, agricultural machinery, electrical systems, office equipment, offices, guard houses, and warehouses had been basically completed. Thanks to that, the Center's seed production capacity
The center has increased since 2010 [160, p.8].
428 thousand seedlings in 2004 to 1.8 million seedlings in 2010
Along with seed technology, in planning the development of vegetables, flowers, strawberries
technology
high, Party
Lam Dong province still only
religion
strengthen work
Transfer of science and technology, especially cultivation techniques, clean technology, high technology, post-harvest preservation technology for crops and livestock with outstanding advantages, including vegetables and flowers. Implementing the direction of the Provincial Party Committee, the People's Committee of Lam Dong province has widely applied the results of research and application of science and technology in production such as greenhouse technology, net house technology, irrigation technology and automatic control in high-tech vegetable and flower production areas. To attract farmers and the business community to produce high-tech vegetables and flowers, along with supporting seeds and materials, the Lam Dong Provincial Party Committee has also invested in building models and supporting farmers to build models for high-tech vegetable and flower production. The results of the models in localities all have yielded much higher productivity, quality, revenue and production efficiency than traditional production. Specifically, in Da Lat city, the sweet pepper model achieved revenue of 1,050 million VND/ha/year, 1.5 times higher, the fruit yield was 1.7 times higher than outdoor production; safe vegetables 7 crops/year, achieving revenue of 400 million VND/ha/year; strawberries achieved 300 million VND/ha/year; chrysanthemums 2.5 3 crops achieved total revenue of 500-600 million VND/ha/year.
Besides greenhouse and net house technology, Lam Dong province has focused on
investment in equipment and human resources in food safety control and good agricultural practices (GAP). Thanks to that, vegetable and flower products
of Lam Dong gradually
answer
meet market standards and requirements
school in condition
International integration with 7 units certified by GlobalGAP, 1 unit certified for organic vegetable production, 53 organizations and individuals producing vegetables certified for production according to VietGAP standards and 55 organizations and individuals certified for safe vegetable production with a total area of about 600 hectares.
Along with certifying safe vegetable and flower production according to national standards, the Provincial People's Committee has supported the registration of protection for the Da Lat vegetable and flower brand with mandatory criteria that they must be produced in the planning area and the product quality must be safe.
Implement the directives of the Provincial Party Committee, by the year
2010, total
vegetable and flower area
application
High-tech area reaches 5,871 hectares. Area
The area of greenhouses, net houses, use of agricultural films, automatic irrigation, and drip irrigation increased from 700 hectares in 2004 to 4,712 hectares in 2010. The output of high-tech vegetables in 2010 reached 1,220,000 tons, 1.6 times higher than in 2005; the output of flowers reached 1,120 million branches, 1.8 times higher than in 2005. Revenue from vegetables and flowers in Da Lat, Duc Trong, and Don Duong reached from 200 million to 1.2 billion VND/ha, 57 times higher than traditional production. The area of certified safe vegetables according to VietGAP and GlobalGAP standards is 600 hectares. Attracting more than 60 enterprises, including 100% foreign-owned enterprises, to invest in high-tech vegetable and flower production [22, p.139].
For the flower industry, most of the flower growing area applies new technology such as greenhouse production and automatic sprinkler irrigation systems.
action, history
use system
Energy saving lighting system. At Da Lat company
Hasfarm has many flower growers that are invested in synchronously with advanced technologies such as greenhouses with control systems that meet lighting requirements.
Light, temperature, humidity, fertilization, and watering are all set automatically, with full equipment to keep flowers in the best condition, and continuous packaging, preservation, and transportation processes. By 2010, the Company's flower output reached 90 million branches/year, of which 65% were exported. In addition to supplying the domestic market, the Company has exported to Singapore, Japan, Taiwan, Thailand, and Cambodia and has become the number 1 flower growing enterprise in Southeast Asia.
both about
Area and output. Rung Hoa Investment Company
Large room
2,000 m2 with system
equipment system
modern, return
unit
first in
Southeast Asia produces flower varieties on an industrial scale with a capacity of 12 million seedlings/year with many famous flower varieties, exported to the Netherlands, Belgium, New Zealand, and China.
2.2.3.2. High-tech tea application:
To achieve the target by 2010, the average tea yield will reach 1,416 tons.
heart
bṕ/ha and leveling value
products reach 200-220 million VND/ha, in the Plan
tea area
eel
g high news
Lam Dong Province
2010
(Decision No.
243/2004/QD-UB, dated
December 31, 2004)
set determined
faithfully build
build and replicate experimental and demonstration models; research, specialization
delivery, delivery
g fast and skip
time
new and advanced technology
technical department
Production, processing, preservation, transportation and consumption of tea products; well organizing services to provide seeds, materials and techniques according to the requirements of quality tea production.
high quality. On January 30, 2007, Lam Dong Provincial People's Committee issued Decision
Decree No. 508/QD-UBND, Regarding
Approval of Proposal
Quality Tea Development Project
high yield period 2007 - 2010 Lam Dong province. In order to create a breakthrough in the tea production industry, the Project emphasized solutions on varieties,
Application of science and technology in production, harvesting and processing of quality tea
Specifically, for seed work, the Province requires: seeds must ensure
nursery variety standards by the Center for Research and Technology Transfer
Industrial and fruit tree techniques
Lam Dong;
production facility
Seed businesses have certificates of supply. Along with strict requirements on standards, the Provincial People's Committee has implemented a policy to encourage farmers to introduce new varieties into production by supporting 50% of the purchase cost.
new breed. About
technology
production, Party
Province only
reinforcement
transfer of progress
new technology
technology
irrigation, technical process
production and harvesting techniques, disease control, instructions on safe use of pesticides on tea plants; ensuring food hygiene and safety, strictly following the process of processing high-quality tea. Together
With technology application solutions, the Provincial Party Committee has pointed out
support
support
Build demonstration models to create a spillover effect in the high-tech tea planning area. Synchronously implementing the solutions directed by the Provincial Party Committee, by 2010, the area of high-yield and high-quality tea in the whole province reached 4,837 hectares [160, p.5], of which the area of tea applying automatic irrigation and water-saving technology was 506 hectares, and the nursery was 34 hectares. The output of fresh tea buds reached 191,200 tons, 1.18 times higher than in 2005. The tea yield reached 84.8 quintals/ha, of which high-yield tea reached about 20 tons/ha, generating revenue of 150,250 million VND/ha/year. By 2010, in the province, there were 20 organizations and individuals producing tea that were granted certificates of production according to VietGAP standards with a total area of 113 hectares.
2.2.3.3. High-tech dairy and beef cattle farming and cold-water fish farming
Implementing the direction of Lam Dong Provincial Party Committee on developing high-quality dairy and beef cattle farming, the Provincial People's Committee issued Decision No.
237/2004/QDUB, dated December 22, 2004, On approving the planning of a number of points
attract
self-development
farm
level
agroforestry
chicken
with blanket
dairy cow farming
eel
g high news
Lam Dong Province in 2004
2010;
Decision No. 509/QD-UBND, dated January 30, 2007, on approving the program for developing dairy, beef and buffalo farming in Lam Dong province for the period 2007-2010. Accordingly, along with planning work, the province has directed the implementation of preferential policies and investment support to attract investors in the field of dairy and beef farming in the planning areas; well managing breeding methods, improving and enhancing breed quality, producing and supplying high-quality dairy and beef breeds to breeders. Along with focusing on selecting high-quality breeds, the Provincial Party Committee has resolutely directed the elimination of dairy and beef breeds that do not meet breed standards according to the regulations of the national breed program.
Based on good seed sources, the Provincial Party Committee directed the planning of land funds for growing grass for raising cows; encouraged livestock farming according to the farm model.
camp;
investment in dairy, meat, animal feed and infrastructure processing industry
floor
Technical services for livestock development. In addition to dairy cows, the Provincial Party Committee has directed the development of high-quality beef cattle farming in the direction of agroforestry, while improving the local yellow cattle breed in the direction of Sindization. In addition, the Party Committee has also directed the implementation of veterinary solutions, the development and implementation of disease-free zone plans in planned dairy and beef cattle farming areas in the province.
Thanks to that, by 2010, the herd of cows reached 99,500, of which dairy cows
3,400 Sind crossbred cattle, 3 times higher than in 2005 [22, p.141]. In the province, many beef cattle farms with a scale of more than 500 cattle have appeared, such as Mai Tien Company, which invested in 600 Sind crossbred cattle and imported 400
Brahman. For dairy farming there is Campina Joint Venture Company.
Vinamilk with a scale of more than 20 hectares, investment of 35 billion VND; Dalat Milk Joint Stock Company with a scale of 700 selected dairy cows, pasture area of 400 hectares;
Thanh Son Company with a scale of 450 dairy cows and about 200 hectares of pasture [160, p.6].
Besides dairy cows, Lam Dong
is local
in the south there are natural conditions
ideal for developing cold water fish farming (sturgeon, salmon) thanks to abundant water resources and low water temperatures (below 200C).
Salmon and trout are special and valuable fish.
economy
high market demand
The domestic consumption market is very large but the supply is very limited.
Recognizing the above potential advantages, Lam Dong Provincial Party Committee has directed the Provincial People's Committee to establish a project to pilot cold-water fish farming in Da Lat and neighboring districts. Implementing the direction of the Provincial Party Committee, the Department of Agriculture and Rural Development has coordinated with the Fisheries Research Institute 3 to carry out the pilot salmon farming project.
In April 2006, the first salmon fry were tested at
K'Long village, Da Chais commune, Lac Duong district with a temperature of about 16
180C. Along with salmon, Russian sturgeon was also tested in Tuyen Lam Lake (Da Lat City) and some other neighboring lakes in the province. The results of the experimental models all showed that cold-water fish breeds developed well, with high productivity, output and meat quality. Based on the success of the experimental models, the Province supported investment in 05 cold-water fish farming models (03 sturgeon farming models, 02 Russian salmon farming models) in Da Lat, Duc Trong and Don Duong localities. The models all achieved good results with the survival rate of the fry reaching over 90%; the production value per unit area was 15-20 times higher than that of traditional fish. Practical testing from the models has opened up the great potential of the locality to promote the development of high-quality cold-water fish farming. Therefore, in 2008, Lam Dong Provincial Party Committee added cold water fish to the list of subjects applying the high-tech agricultural development program. In order to develop the cold water fish farming industry, the Provincial Party Committee directed the application of modern foreign farming technologies and techniques; developed feed factories for the subject.
cold water fish statues; research on production and breeding to proactively source fish. To supplement investment resources for the development of the cold water fish industry, the Province has directed the implementation of policies to promote investment attraction from businesses.
inside and outside the province. By 2010, Lam Dong province had 21 enterprises.
registered investment enterprises, in which Hoang Pho Company has invested 5 billion VND to raise salmon and Russian sturgeon in K'Long, K'Lanh, Tuyen Lam lake and Da Nhim lake; Ha Quang Company plans to invest 8 billion VND; Company 75 has established a project to invest more than 44 billion VND; there are 9 enterprises investing in seed production. The area for commercial cold-water fish farming reaches 40 hectares, the output reaches 400 tons. The average salmon yield is 13.5 tons/ha, the revenue reaches 34 billion VND/ha/year, the cage farming of sturgeon reaches 3040 kg/m2, the revenue is 68 billion VND/1,000 m2/year [160, p.9].
2.2.4. Implementation of the
mechanism, policy
support
agricultural development
high-tech industry
2.2.4.1. Technical support, technology transfer
Implementing the policy of Lam Dong Provincial Party Committee on promoting the application of science and technology, especially modern technology in production to accelerate and create steps for local socio-economic development, on October 21, 2004, Lam Dong Provincial People's Committee issued Decision No. 195/2004/QDUB, on Approval
Lam Dong province's science and technology and human resource training program
The program has identified the tasks of science and technology to serve the industrialization and modernization of agriculture and rural areas in the coming years.
2004 2010 including: basic research
regime
mechanical conversion
tree structure
planting, livestock; application of biotechnology, processing technology, preservation of agriculture and aquaculture
product, technology
clean production to
improve productivity, quality and ability
competitiveness of agricultural products; building and replicating models
transfer of technology
high technology
new to production; focus
Research on production organization models linked to consumer markets to increase





![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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