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

INDUSTRY ASSOCIATIONS TO PROMOTE AGRICULTURAL EXPORTS IN THE CONTEXT OF INTERNATIONAL ECONOMIC INTEGRATION
Major: Business Commerce Code: 62.34.01.21
DOCTORAL THESIS IN ECONOMICS
Scientific supervisor: Prof. Dr. NGUYEN VAN THANG
ii
HANOI - 2021
COMMITMENT
I hereby declare that the Thesis "Innovation of activities of industry associations to promote agricultural exports in the context of international economic integration" is my own independent research work under the guidance of my scientific supervisor.
The research results of the Thesis have not been published in any publications or research works; the data in the Thesis are completely honest and have clear origins.
Thesis author
Nguyen Xuan Son
ACKNOWLEDGEMENTS
The researcher would like to sincerely thank the scientific supervisor, Prof. Dr. Nguyen Van Thang, for his dedicated guidance throughout the process of implementing this research topic.
The researcher would like to sincerely thank the Board of Directors and specialized departments of the Institute for Strategy and Policy Research in Industry and Trade for their support, facilitation, and comments during the implementation and completion of the thesis. The researcher would like to express his sincere thanks to the teachers in the Council for Evaluation and Acceptance of the Topics, the Council for Evaluation at the grassroots level, and the Council for Evaluation at the Institute level for their detailed instructions and comments on the professional aspects, helping the researcher to gradually complete his thesis.
Finally, the researcher would like to thank his family, friends and colleagues for creating favorable conditions, encouraging and supporting him a lot during the time of doing the thesis./.
Thesis author
Nguyen Xuan Son
INDEX
COMMITMENT i
ACKNOWLEDGEMENTS ii
TABLE OF CONTENTS iii
1. Vietnamese abbreviation viii
2. English abbreviation ix
LIST OF TABLES x
LIST OF POLYCELAIN BOXES
INTRODUCTION 1
1. The urgency of researching topic 1
2. Research objective 3
2.1. General objective 3
2.2. Specific research objectives 3
3. Research object and scope 4
3.1. Research subjects 4
3.2. Scope of research 4
4. Research task 6
5. Research hypothesis 6
6. Research methods 7
6.1. Methodological basis 7
6.2. Theoretical framework of research 7
6.3. Research methods 8
7. Novelty and contributions of the thesis 8
7.1. Theoretical aspect 8
7.2. In practice 8
8. Structure of topic 9
Chapter 1. OVERVIEW OF DOMESTIC AND FOREIGN RESEARCH RELATED TO THE TOPIC 10
1.1. Domestic research works related to the topic 10
1.1.1. Studies related to business associations and industry associations 10
1.1.2. Studies related to business associations and industry associations for agricultural production and export 13
1.2. Foreign research works related to topic 17
1.2.1. Studies related to Chambers of Commerce and Industry Associations 17
1.2.2. Studies related to HHNH for agricultural production and export 22
1.3. Gaps in the research overview related to the topic 24
1.3.1. General comments on domestic studies 24
1.3.2. General comments on foreign studies 25
1.3.3. Identifying gaps in the overall research situation 26
CHAPTER 1 CONCLUSION 26
Chapter 2. GENERAL THEORY OF INDUSTRY ASSOCIATIONS AND INNOVATION OF INDUSTRY ASSOCIATION ACTIVITIES 28
2.1. Forms of Business Associations in a Market Economy 28
2.1.1. History of birth and development in the world and in Vietnam 28
2.1.1.1. The formation and development of business associations in the world 28
2.1.1.2. The development process of business associations in Vietnam 29
2.1.2. Some basic concepts 31
2.1.2.1. Organization 31
2.1.2.2. Association 31
2.1.2.3. Business Association 32
2.1.2.4. Chamber of commerce 32
2.1.2.5. Trade/Sector/Industry Association 32
2.2. Theory on innovation of HHNH activities to promote agricultural exports in the context of Vietnam's international economic integration 33
2.2.1. The role of HHNH for businesses, industries and the economy 33
2.2.1.1. Industry and Industry Associations 33
2.2.1.2. Organizational structure and functions of industry associations 33
a) Organizational structure of HHNH 33
b) Functions of HHNH 35
2.2.2. The concept of "Innovation" and innovation in HHNH activities 36
2.2.2.1. Innovation 36
2.2.2.2. Innovation of HHNH 37's activities
2.2.3. Content of innovation in industry association activities 37
2.2.3.1. Innovation in policies and legal framework for HHNH 37
2.2.3.2. Innovation in organizational model and operation method of HHNH 38
2.2.3.3. Innovation in HHNH 39 governance
2.7. International experience in organizing and managing business associations 40
2.7.1. Japan 40
2.7.2. Korea 42
2.7.3. Taiwan 44
2.7.4. International lessons and recommendations for Vietnam 46
2.7.4.1. Lessons from international experience 46
2.7.4.2. Some recommendations for Vietnam 46
CHAPTER 2 CONCLUSION 47
Chapter 3. CURRENT STATE OF ACTIVITIES OF INDUSTRY ASSOCIATIONS IN AGRICULTURAL PRODUCT EXPORT IN VIETNAM 49
3.1. Current status of policies and legal framework on industry associations 49
3.1.1. General concept of industry association 49
3.1.2. Industry association policy 51
3.1.3. Legal framework on industry associations 53
3.2. Current status of organizational model and operation method of the 55th National Bank Association
3.2.1. Number of industry associations 55
3.2.2. Membership size 55
3.2.3. How HHNH 57 works
3.3. General status of HHNH 58's operations
3.3.1. Current status of human resources 58
3.3.1.1. Industry association leaders 58
3.3.1.2. Middle management and specialists 59
3.3.2. Financial revenue and operating expenses 59
3.3.3. Performing the functions and tasks of HHNH 61
3.3.3.1. Representative function for members 61
3.3.3.2. Policy advocacy, industry development 63
3.3.3.3. Providing services to members 64
3.4. Case study on the current status of the activities of the NHNH in promoting the export of agricultural products of Vietnam 66
3.4.1. The role of agricultural exports in Vietnam's economy 66
3.4.2. The role of HHNH in exporting some key agricultural products 68
3.4.2.1. VASEP and seafood export activities 68
3.4.2.2. VIFOREST and wood and wood products export activities 76
3.4.2.3. VFA and rice export activities 80
3.5. General assessment of the current status of the role and activities of the State Bank in agricultural exports. 83
3.5.1. Some results achieved 83
3.5.2. Some problems, limitations and causes 86
3.5.2.1. Existing problems and limitations 86
3.5.2.2. Causes of existing problems and limitations 88
CHAPTER 3 CONCLUSION 89
Chapter 4. INNOVATIVE SOLUTIONS FOR INDUSTRY ASSOCIATIONS' OPERATIONS TO PROMOTE VIETNAM'S AGRICULTURAL PRODUCTS EXPORTS IN THE PERIOD UP TO 2025, WITH A VISION TO 2030 90
4.1. The context of international economic integration and opportunities and challenges for Vietnam's agricultural exports 90
4.1.1. Economic integration and achievements of Vietnam's international economic integration 90
4.1.1.1. Overview of international economic integration 90
4.1.1.2. Some achievements of Vietnam's international economic integration 90
4.1.1.3 Impact of international economic integration on Vietnam's economy 92
4.2. Opportunities and challenges for Vietnam's agricultural exports 93
4.2.1. Opportunities for agricultural exports 93
4.2.2. Challenges facing agricultural export activities 94
4.2.3. Some important markets for Vietnam's agricultural exports 96
4.2.3.1. United States 96
4.2.3.2. China 97
4.2.3.3. EU Area 97
4.2.3.4. Japan 98
4.2.3.5. Korea 99
4.2.4. Forecasting agricultural export market trends in the coming time 100
4.3. Proposing and recommending solutions to innovate the operations of the HHNH to promote agricultural exports in the period up to 2025, with a vision to 2030 101
4.3.1. Recommendations to competent state agencies 101
4.3.1.1. Perfecting policies and legal framework on HHNH 101
4.3.1.2. Innovation in State management methods for industry associations 104
4.3.1.3. There are appropriate policies and support mechanisms for the smooth development of HHNH 105
4.3.2. Proposing innovative solutions for industry associations 106
4.3.2.1. Group of common solutions on innovation in management of HHNH 106
(1) Thoroughly implement the purpose of "Serving members' interests" and the principles of "Democracy, professionalism, efficiency" in the activities of HHNH 106
(2) Comprehensively innovate management work, improve operational efficiency of HHNH 107
(3) Focus on the function of "policy advocacy", promoting industry progress 108
(4) Promote the formation of agricultural value chains, enhance the competitiveness of Vietnamese agricultural products 108
(5) Promoting the implementation of social responsibility of the industry 109
4.3.3. Group of solutions to innovate methods to promote agricultural exports in the context of international economic integration 110
(1) Guide businesses to comply with legal regulations and quality standards of import markets 110
(2) Innovation in trade promotion activities and provision of export support services 110
(3) Focus on building and promoting "Industry Brand" 111
(4) Participate in resolving PVTM cases from import markets; support businesses in resolving international trade disputes 112
(5) Strengthen international cooperation with agricultural cooperatives and relevant international organizations 113
CHAPTER 4 CONCLUSION 114
CONCLUSION 116
LIST OF PUBLISHED SCIENTIFIC WORKS 119
REFERENCES 120
1. Vietnamese Document 120
2. English Document 123
3. Some websites 125
APPENDIX 126
Appendix 1. Some research results as a basis for proposing innovative solutions for Industry Associations 126 Appendix 2. VASEP's activities in efforts to remove the IUU yellow card 144
Appendix 3. VCCI's HHDN capacity self-assessment toolkit 148



![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 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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