compliance and execution of officers throughout the system.
- Continue to innovate and modernize technology to meet the increasing demands of customers in business and support management and operations.
- Strengthen external relations; effectively carry out information and propaganda activities, communication activities about the image, brand and products of NHNT in the system as well as in the market.
- Issue and complete NHNT's processes and regulations to comply with legal regulations, gradually move towards international standards and to minimize risks in operations.
- Continue to select strategic partners according to established criteria, issue shares to increase charter capital and increase safety coefficient (CAr) by 10%.
2.2 Introduction to Joint Stock Commercial Bank for Foreign Trade of Vietnam - South Saigon Branch
2.2.1 Formation and development process
With the aim of finding solutions for economic development in the early 90s in Vietnam, the Government approved the project to establish the first Export Processing Zone of Vietnam on November 25, 1991, Tan Thuan Export Processing Zone.
In order to facilitate the construction and development of the export processing zone, there must be a bank responsible for transferring capital from outside and performing banking services such as: opening deposit accounts, making payments, transferring money, granting credit, exchanging foreign currency... in the best way for investors and for companies and enterprises in the export processing zone. Therefore, on January 25, 1993, the Governor of the State Bank of Vietnam issued Decision No. 24/NHQD assigning the Vietnam Joint Stock Commercial Bank to open branches in export processing zones in Vietnam. Implementing this decision, on March 26, 1993, the General Director of the State Bank of Vietnam issued Decision No. 70/TCCB on the establishment of Tan Thuan Joint Stock Commercial Bank.
VCB Nam Sai Gon was established on September 25, 1993, headquartered in Tan Thuan Export Processing Zone, District 7, Ho Chi Minh City. It is the first branch serving investors inside and outside the Export Processing Zone, which is considered the most successful export processing zone in Southeast Asia in the 90s of the last century.
Bank for Foreign Trade of Vietnam - Tan Thuan Branch changed its name to Joint Stock Commercial Bank for Foreign Trade of Vietnam - Nam Saigon Branch according to Decision No.
533/QD.NHNT.TCCB-DT of the Board of Directors of Vietnam Joint Stock Commercial Bank for Foreign Trade dated June 5, 2008.
After 17 years of establishment and development, VCB Nam Sai Gon is now one of the largest branches in the NHNT system and the second largest branch in Ho Chi Minh City with 200 employees, 1 head office in Tan Thuan Export Processing Zone, District 7, Ho Chi Minh City, and 5 affiliated transaction offices.
On November 12, 2009, VCB Nam Sai Gon signed a contract to purchase a new headquarters at Sunrise City Commercial Area, District 7, Ho Chi Minh City.
VIETCOMBANK NAM SAIGON NETWORK
With its achievements in recent times, VCB Nam Sai Gon has been honored to receive the following outstanding awards:
- 2005:
+ Certificate of Merit from Ho Chi Minh City People's Committee for units with positive contributions to Export Processing Zones and Industrial Parks.
+ Certificate of merit from the Governor of the State Bank of Vietnam for the collective with outstanding achievements contributing to the completion of banking tasks.
+ Certificate of Merit for Excellent Labor Collective awarded by the Chairman of the Board of Directors of NHNT.
- 2006:
+ Certificate of Merit from the Prime Minister of the Socialist Republic of Vietnam.
+ Certificate of merit from the General Director of the National Bank for the leading branch in credit quality of the National Bank system.
+ Certificate of Merit for Excellent Labor Collective awarded by the Chairman of the Board of Directors of NHNT.
- 2007:
+ Third Class Labor Medal awarded by the President of the Socialist Republic of Vietnam.
+ Emulation flag of the Governor of the State Bank of Vietnam
+ Certificate of Merit for Excellent Labor Collective awarded by the Chairman of the Board of Directors of NHNT.
- 2008:
+ Emulation flag awarded by the Prime Minister of the Socialist Republic of Vietnam.
+ Emulation flag of the General Director of NHNT for the leading unit in Capital Mobilization.
+ Certificate of Merit for Excellent Labor Collective awarded by the Chairman of the Board of Directors of NHNT.
- 2009:
+ Emulation flag of the General Director of NHNT for the leading unit in Capital Mobilization.
+ Certificate of Merit for Excellent Labor Collective awarded by the Chairman of the Board of Directors of NHNT. Orientation, tasks and plans of VCB Nam Sai Gon in the coming time:
+ Make capital mobilization the core and top priority task to expand and increase the scale of operations, including expanding and diversifying customers with deposit relationships through appropriate preferential policies for each period. Special attention is paid to capital mobilization from the population, which is the most stable source of mobilization.
+ Improve risk management, expand retail banking services, develop lending to small and medium enterprises, individual lending, and secured lending to improve capital structure and capital use towards increasing stability and risk dispersion. Expand the credit market for enterprises in industrial parks, export processing zones, and foreign-invested enterprises.
+ Enhance the position of NHNT in the field of project financing, strengthen the role as a focal bank in arranging finance for large, feasible and effective projects.
+ Focus on handling bad debt, propose measures to handle bad debt effectively, improve the branch's credit quality to be sustainable and safe.
+ Actively implement the set of standards issued by the State Bank.
+ Developing branch network, planning to open 02 more transaction offices.
+ Closely follow the direction and guidance of the Head Office, perform well and complete the planning targets assigned by the Head Office.
2.2.2 Business performance in recent times
2.2.2.1 Capital mobilization
Capital mobilization is extremely important in banking operations, ensuring liquidity, creating competitive advantages for banks in terms of capital costs, as well as affecting other operations. To expand credit, it is necessary to increase capital mobilization, the capital mobilization structure determines the credit structure.
In recent years, VCB Nam Sai Gon has always made efforts and applied many synchronous solutions to increase capital mobilization - considered the top priority task:
- Expand the network of transaction offices and ATM network, increase the issuance of ATM cards, provide treasury services such as salary payment via envelopes, accounts, collection, and home delivery.
- Improve service quality in both domestic and international payments, teller services, treasury, money transfer... Provide more convenient services for customers such as querying information about customer accounts by phone, via the Internet, payment via VCB - money...
- Expanding many forms of capital mobilization such as flexible term savings, non-term savings, term bonuses... Using automatic investment accounts for businesses, using flexible preferential interest rates for each subject...
Table 2.1: Capital mobilization situation in the period 2005-2009
Unit: billion VND
Year
Total capital | Total Mobilization | |
2005 | 1,830 | 1,701 |
2006 | 2,570 | 2,439 |
2007 | 3,064 | 2,388 |
2008 | 3,981 | 3,570 |
2009 | 5,499 | 4,886 |
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![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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div.maincontent .s40 { color: black; font-family:Times New Roman, serif; font-style: normal; fo](https://tailieuthamkhao.com/uploads/2022/06/06/dich-vu-phi-tin-dung-tai-ngan-hang-thuong-mai-co-phan-dau-tu-va-phat-8-1-120x90.png)
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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(Source: VCB Nam Sai Gon Business Performance Summary Report)
Billion VND
Chart 2.1: Capital mobilization situation in the period 2005-2009
Capital mobilization situation in the period 2005-2009
12000
10000 4. 8 86
3,570
8000
2,388
6000 2 .439 5.499
4000 1,701 3,981
3 .064
2000 1.830 2 .57 0
0
2005 2006 2007 2008 2009
Total capital mobilized | Year |
In Ho Chi Minh City, there is strong competition in interest rates with attractive promotions from banks. Therefore, capital mobilization becomes more and more difficult, interest rate competition among commercial banks is very fierce and fluctuates continuously due to the following reasons:
- Payment deposits from economic organizations decreased because capital sources of companies often concentrate at the end of December of the previous year, causing deposit balances to increase but then transfer money in January of the following year.
- Mobilized capital is greatly affected by economic fluctuations. From the end of 2007 to the end of August 2008, many commercial banks fell into a difficult liquidity situation due to previously over-lending compared to capital sources. In the outstanding credit balance, capital mobilized from interbank accounts for a large proportion. The liquidity situation became more serious when the State Bank implemented a tightening policy, the VND shortage in the market forced commercial banks to mobilize at all costs with the highest possible interest rates. Initially, they still accepted high-interest loans from other credit institutions (mainly state-owned commercial banks), but when the interbank market "closed", commercial banks pushed up overnight, weekly, 1-month interest rates, and short-term interest rates from customers to replace them. They always targeted customers of commercial banks, where there were payment deposits from large economic organizations. The residential customer base of VCB Nam Sai Gon was also attracted by the 19 - 20% interest rate of commercial banks. There was not much money left in the economy, so the movement of money from one bank to another was a common phenomenon during this period. Interest rate policy and
The capital mobilization of the branch during this period was very flexible, the initial capital mobilization growth plan was replaced by measures to minimize the movement of capital sources, not to be drawn into the interest rate race but also to be very flexible when negotiating interest rates with customers. In early 2009, the domestic currency market situation was quite stable (the State Bank reduced the basic interest rate from 8.5%/year to 7%/year and this interest rate was applied from February 2009 to November 2009), VND mobilization of commercial banks was quite even and at a suitable level. However, at the end of the year, capital mobilization interest rates were adjusted to an upward trend. In which, VND mobilization interest rates continuously increased in the months near the end of the year; Especially in October 2009 and early November 2009, VND mobilization interest rates increased by 0.2% - 0.99%/year compared to September 2009. At the end of 2009, the highest VND mobilization interest rate was 10.49%/year; along with the basic interest rate increasing from 7%/year to 8%/year. Commercial banks competed fiercely in mobilizing capital in the last months of the year to ensure liquidity safety.
Table 2.2: Structure and capital mobilization situation
Unit: billion VND
Target
2005 | 2006 | 2007 | 2008 | 2009 | |
Total mobilized capital | 1,830 | 2,570 | 3,064 | 3,981 | 5,499 |
Amount of money mobilized at the Branch | 1,701 | 2,439 | 2,388 | 3,570 | 4,886 |
Mobilization rate at Branch | 93% | 95% | 78% | 90% | 89% |
Amount raised from Head Office | 130 | 131 | 676 | 411 | 613 |
Mobilization rate from Head Office | 7% | 5% | 22% | 10% | 11% |
Amount raised VND | 1,203 | 1,752 | 2,376 | 3,000 | 3,948 |
VND mobilization rate | 66% | 68% | 78% | 75% | 72% |
Amount raised USD | 627 | 818 | 688 | 981 | 1,551 |
USD mobilization rate | 34% | 32% | 22% | 25% | 28% |
Personal fundraising amount | 638 | 1,086 | 1,528 | 2,323 | 2,966 |
Personal mobilization rate | 38% | 45% | 64% | 65% | 61% |
Amount of money raised by the organization | 1,063 | 1,353 | 861 | 1,247 | 1,920 |
Organizational mobilization rate | 62% | 55% | 36% | 35% | 39% |
(Source: VCB Nam Sai Gon Business Performance Summary Report)
Mobilization rate at branches and Head Office
0%
20%
40%
60%
80%
100%
Mobilization rate at Branch Mobilization rate from HSC
Chart 2.2: Mobilization rate at branches and Head Office
89% | 11% | |
2008 | 90% | 10% |
2007 | 78% | 22% |
2006 | 95% | 5% |
2005 | 93% | 7% |
VND & USD mobilization rate
0%
20%
40%
60%
80%
100%
VND mobilization rate
USD mobilization rate
Chart 2.3: VND &VND mobilization rate
72% | 28% | ||
2008 | 75% | 25% | |
2007 | 78% | 22% | |
2006 | 68% | 32% | |
2005 | 66% | 34% |
Chart 2.4: Rate of individual and organizational mobilization
Individual & Organizational Funding Rate
2009
61%
39%
2008
65%
35%
2007
64%
36%
2006
45%
55%
2005
38%
62%
0%
20%
40%
Personal mobilization rate
60%
80%
100%
Organizational mobilization rate
Table 2.3: Structure and capital mobilization situation
Unit: billion VND
Target
2005 | 2006 | 2007 | 2008 | 2009 | |
1. From customers | 1,701 | 2,439 | 2,388 | 3,570 | 4,886 |
a.No term | 860 | 1.155 | 1.110 | 1.123 | 1,391 |
b. Term | 841 | 1,284 | 1,278 | 2,447 | 3,495 |
< 12 months | 670 | 1,035 | 851 | 1,800 | 2,681 |
> 12 months | 171 | 249 | 427 | 647 | 814 |
2. From Credit Institutions | 0 | 0 | 0 | 0 | 0 |
3. Head Office Loan | 130 | 131 | 676 | 411 | 613 |
Short term | 0 | 270 | 120.6 | 0 | |
Medium and long term | 130 | 131 | 406 | 411 | 613 |
Ratio of mobilized capital/Total capital | 93% | 95% | 78% | 90% | 89% |
Total | 1,830 | 2,570 | 3,064 | 3,981 | 5,499 |
(Source: VCB Nam Sai Gon Business Performance Summary Report)