Improving the efficiency of international payment activities of the Military Commercial Joint Stock Bank at the Head Office - 15

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separate but merge the document staff with the judicial staff. While the international environment really needs a team of judicial staff to help businesses recognize what is not allowed, resolve disagreements according to international law. Although, the establishment

Establishing a legal department will cost the business more money to pay for employees, but considering the damage that the business may suffer, establishing a legal department is an urgent matter that the business needs to do immediately.

Research the market carefully to choose partners.

For export enterprises: It is necessary to promote market analysis activities to grasp information about market demand, consumer tastes, strengths of the enterprise compared to local enterprises as well as regulations of that country. This review will help enterprises determine their ability to respond to that market, determine the profit that can be achieved for consideration and make it easier to borrow capital from banks as well as build a brand in that market without obstacles.

For import businesses: It is necessary to choose reputable suppliers, carefully consider the financial capacity of the partner, whether the imported goods are suitable for current market demand, etc. by collecting detailed information about the partner through the commercial bank system or the Vietnam Chamber of Commerce and Industry.

Chapter 3 Conclusion

The trend of financial integration and liberalization has brought many challenges and new prospects to the banking industry in general and MB in particular. To improve the efficiency of international payment operations at the Head Office, it is not only necessary to have the efforts of the International Remittance Department and the Import-Export Department, but also to have the support of related departments as well as the support of the Government through measures to encourage international trade activities or the trust and support from customers. Therefore, above, Chapter 3 of the thesis has proposed a number of solutions to achieve the goal of improving the efficiency of international payment operations in the coming time.

101

CONCLUSION

Nowadays, in the trend of globalization of the economy and the increasingly developing international trade, international payment has become a basic and indispensable activity of commercial banks. In the process of development, international payment activities of banks have arisen issues that need to be studied to find solutions to help this activity develop.

Based on the practice at the Military Commercial Joint Stock Bank - Head Office, applying the acquired knowledge, in this thesis I have mentioned the following contents:

1. Present the theoretical basis for international payment activities of commercial banks as well as provide indicators and factors affecting the effectiveness of these activities.

2. Analyze the current status of international payment activities at the Military Commercial Joint Stock Bank - Head Office in the period of 2013-2015, thereby evaluating the achieved results and finding out the limitations and causes leading to these limitations.

3. Through analyzing and evaluating international payment activities at the Military Commercial Joint Stock Bank - Head Office, the thesis has proposed a number of solutions to improve the efficiency of international payment activities here.

With the limitations of knowledge as well as practical experience, this thesis inevitably has errors and incomplete thoughts on the above issues. We sincerely hope to receive the help and comments of teachers to make this thesis more complete.

Hanoi, July 5, 2016 Student implementation

Hoang Huyen Trang

102

REFERENCES

A.

Documents from books

1. Dinh Xuan Trinh, 2010, International Payment Textbook, Hanoi: Labor - Social Publishing House.

2. Mai Van Ban, 2013, Commercial Banking Course, Hanoi: Statistical Publishing House.

3. Nguyen Van Tien, 2010, International Payment and Foreign Trade Finance Textbook, Hanoi: Statistical Publishing House.

4. Nguyen Van Tien, 2006, Foreign exchange market handbook and foreign exchange transactions, Hanoi: Statistical Publishing House.

5. Nguyen Van Tien, 2007, International payment handbook by L/C, Hanoi: Statistical Publishing House.

6. Phan Thi Thu Ha, 2013, Commercial Banking Textbook, Hanoi: National Economics University Publishing House.

B. Documents from the bank

1. Report of Shareholders' Meeting of Military Commercial Joint Stock Bank in 2014, 2015, 2016.

2. Business performance report of the Operation Division - Military Commercial Joint Stock Bank for the years 2013, 2014, 2015.

3. Annual reports of Military Commercial Joint Stock Bank for the years 2013, 2014, 2015.

4. Instructions and regulations on Money Transfer, Documentary Credit, Collection activities of Payment Service Center - Operation Division, Military Commercial Joint Stock Bank in 2013, 2014, 2015.

5. Presentation at the 2015 Party Congress of the Military Commercial Joint Stock Bank

C. Documents from newspapers and magazines

1. Nguyen Van Vy and Phan Thanh Duc, 2012, “Business process management - An approach to deploying software on the Web”, Proceedings of the scientific conference of Hai Phong University.

2. Phan Thanh Duc and the Project Implementation Team, 2015, “Informatization of the management process of science and technology activities in the Banking industry”, Journal of Banking Science and Training, No. 163, Pages 68-76.

3. Thu Minh, 2015, “Vietnam's exchange rate picture over the past 5 years”, Vietstock Electronic Newspaper <http://vietstock.vn/2015/11/buc-tranh-ty-gia-viet-nam-5-nam-qua-757-448256.htm>

4. Thuy Linh, 2016, “ Import-export 2015: Effectiveness from market expansion”, Electronic Industry and Trade Newspaper < http://baocongthuong.com.vn/xuat-nhap-khau-2015-hieu-qua-tu-mo-rong-thi-truong.html >

D. Legal documents

1. Law on Export Tax and Import Tax No. 45/2005/QH11

2. Uniform Rules for Collections – URC 522

3. Uniform Customs and Practice for Documentary Credits - UCP 600

4. International Standard Banking Practice for Examining Documents Under Letters of Credit - ISBP 681

APPENDIX

BA

SURVEY ON CUSTOMER SATISFACTION LEVEL ON INTERNATIONAL PAYMENT SERVICES AT MILITARY BANK – MBBANK

Dear Customers,

First of all, we would like to sincerely thank our customers for their trust and confidence in our bank's products and services. In order to further improve and enhance the quality of our bank's services and meet the needs of our customers, Military Commercial Joint Stock Bank (MBbank) would like to ask you to take a moment to comment and evaluate according to the questionnaire below.

We look forward to receiving your cooperation and the information you provide will be kept completely confidential.

When answering questions with available answers, please mark

(X) on the answers you choose; in case any question requires further explanation, please explain in the space provided.

Please answer all required questions completely.

1. When mentioning international payment activities, which bank do you think of first? *

(Choose only 1 answer)

 Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank)

 Joint Stock Commercial Bank for Investment and Development (BIDV)

 Vietnam Technological and Commercial Joint Stock Bank (Techcombank)

 Military Commercial Joint Stock Bank (MBbank)

 Other.

2. Have you used the International Payment service at Military Bank? *

 Used

 Not used

If the answer is " Used " please answer the questions below.

If the answer is " Not used yet ", please let us know why you have not used the service.

-------------------------------------------------- -------------------------------------------------- ----

-------------------------------------------------- -------------------------------------------------- ----

3. Through which media did you learn about the international payment activities of Military Bank?

 Relatives

 Mass media (Newspapers, television, ...)

 Find out for yourself

 Other,

4. Can you rate your satisfaction level with the following criteria of the Military Commercial Joint Stock Bank? *

Criteria

Not satisfied	Satisfied	Very satisfied
Is it easy for you to access information about international payments?
Processing time
Payment Procedure
Consultant attitude
Service costs
Have the services met the needs of customers?

Maybe you are interested!

• Improving the efficiency of international payment activities by credit method at Vietnam Joint Stock Commercial Bank for Investment and Development - Thanh Do Branch - 11
• Improving the efficiency of international payment activities by credit method at Vietnam Joint Stock Commercial Bank for Investment and Development - Thanh Do Branch - 1
• 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). div.maincontent .content_head3 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent .s1 { color: black; font-family:"Courier New", monospace; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s2 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: normal; 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• Solutions for Developing International Banking Services to Improve the Operational Efficiency of Vietnamese Banks
• Improving the management efficiency of Vietnam Joint Stock Commercial Bank for Foreign Trade in the context of international economic integration - 15

5. Are you still not satisfied with our bank's services?

…………………………………………………………………………………………

…………………………………………………………………………………………

………………………………………………………………………………………… Sincerely thank you for your contributions!

Military Commercial Joint Stock Bank

Address: 21 Cat Linh, Cat Linh Ward, Dong Da District, Hanoi Phone: 84-(4) 6266 1088 Fax: 84-(4) 6266 1088

Website: www.mbbank.com.vn