Introduction to the Development Process of Dong A Multi-Function Card:

Qos Assurance Methods for Multimedia Communications zt2i3t4l5ee zt2a3gs zt2a3ge zc2o3n4t5e6n7ts low. The EF PHB requires a sufficiently large number of output ports to provide low delay, low loss, and low jitter. EF PHBs can be implemented if the output port's bandwidth is sufficiently large, combined with small buffer sizes and other network resources dedicated to EF packets, to allow the router's service rate for EF packets on an output port to exceed the arrival rate λ of packets at that port. This means that packets with PHB EF are considered with a pre-allocated amount of output bandwidth and a priority that ensures minimum loss, minimum delay and minimum jitter before being put into operation. PHB EF is suitable for channel simulation, leased line simulation, and real-time services such as voice, video without compromising on high loss, delay and jitter values. Figure 2.10 Example of EF installation Figure 2.10 shows an example of an EF PHB implementation. This is a simple priority queue scheduling technique. At the edges of the DS domain, EF packet traffic is prioritized according to the values agreed upon by the SLA. The EF queue in the figure needs to output packets at a rate higher than the packet arrival rate λ. To provide an EF PHB over an end-to-end DS domain, bandwidth at the output ports of the core routers needs to be allocated in advance to ensure the requirement μ > λ. This can be done by a pre-configured provisioning process. In the figure, EF packets are placed in the priority queue (the upper queue). With such a length, the queue can operate with μ > λ. Since EF was primarily used for real-time services such as voice and video, and since real-time services use UDP instead of TCP, RED is generally not suitable for EF queues because applications using UDP will not respond to random packet drop and RED will strip unnecessary packets. 2.2.4.2 Assured Forwarding (AF) PHB PHB AF is defined by RFC 2597. The purpose of PHB AF is to deliver packets reliably and therefore delay and jitter are considered less important than packet loss. PHB AF is suitable for non-real-time services such as applications using TCP. PHB AF first defines four classes: AF1, AF2, AF3, AF4. For each of these AF classes, packets are then classified into three subclasses with three distinct priority levels. Table 2.8 shows the four AF classes and 12 AF subclasses and the DSCP values for the 12 AF subclasses defined by RFC 2597. RFC 2597 also allows for more than three separate priority levels to be added for internal use. However, these separate priority levels will only have internal significance. PHB Class PHB Subclass Package type DSCP AF4 AF41 Short 100010 AF42 Medium 100100 AF43 High 100110 AF3 AF31 Short 011010 AF32 Medium 011100 AF33 High 011110 AF2 AF21 Short 010010 AF22 Medium 010100 AF23 High 010110 AF1 AF11 Short 001010 AF12 Medium 001100 AF13 High 001110 Table 2.8 AF DSCPs The AF PHB ensures that packets are forwarded with a high probability of delivery to the destination within the bounds of the rate agreed upon in an SLA. If AF traffic at an ingress port exceeds the pre-priority rate, which is considered non-compliant or “out of profile”, the excess packets will not be delivered to the destination with the same probability as the packets belonging to the defined traffic or “in profile” packets. When there is network congestion, the out of profile packets are dropped before the in profile packets are dropped. When service levels are defined using AF classes, different quantity and quality between AF classes can be realized by allocating different amounts of bandwidth and buffer space to the four AF classes. Unlike EF, most AF traffic is non-real-time traffic using TCP, and the RED queue management strategy is an AQM (Adaptive Queue Management) strategy suitable for use in AF PHBs. The four AF PHB layers can be implemented as four separate queues. The output port bandwidth is divided into four AF queues. For each AF queue, packets are marked with three “colors” corresponding to three separate priority levels. In addition to the 32 DSCP 1 groups defined in Table 2.8, 21 DSCPs have been standardized as follows: one for PHB EF, 12 for PHB AF, and 8 for CSCP. There are 11 DSCP 1 groups still available for other standards. 2.2.5.Example of Differentiated Services We will look at an example of the Differentiated Service model and mechanism of operation. The architecture of Differentiated Service consists of two basic sets of functions: Edge functions: include packet classification and traffic conditioning. At the inbound edge of the network, incoming packets are marked. In particular, the DS field in the packet header is set to a certain value. For example, in Figure 2.12, packets sent from H1 to H3 are marked at R1, while packets from H2 to H4 are marked at R2. The labels on the received packets identify the service class to which they belong. Different traffic classes receive different services in the core network. The RFC definition uses the term behavior aggregate rather than the term traffic class. After being marked, a packet can be forwarded immediately into the network, delayed for a period of time before being forwarded, or dropped. We will see that there are many factors that affect how a packet is marked, and whether it is forwarded immediately, delayed, or dropped. Figure 2.12 DiffServ Example Core functionality: When a DS-marked packet arrives at a Diffservcapable router, the packet is forwarded to the next router based on Per-hop behavior is associated with packet classes. Per-hop behavior affects router buffers and the bandwidth shared between competing classes. An important principle of the Differentiated Service architecture is that a router's per-hop behavior is based only on the packet's marking or the class to which it belongs. Therefore, if packets sent from H1 to H3 as shown in the figure receive the same marking as packets from H2 to H4, then the network routers treat the packets exactly the same, regardless of whether the packet originated from H1 or H2. For example, R3 does not distinguish between packets from h1 and H2 when forwarding packets to R4. Therefore, the Differentiated Service architecture avoids the need to maintain router state about separate source-destination pairs, which is important for network scalability. Chapter Conclusion Chapter 2 has presented and clarified two main models of deploying and installing quality of service in IP networks. While the traditional best-effort model has many disadvantages, later models such as IntServ and DiffServ have partly solved the problems that best-effort could not solve. IntServ follows the direction of ensuring quality of service for each separate flow, it is built similar to the circuit switching model with the use of the RSVP resource reservation protocol. IntSer is suitable for services that require fixed bandwidth that is not shared such as VoIP services, multicast TV services. However, IntSer has disadvantages such as using a lot of network resources, low scalability and lack of flexibility. DiffServ was born with the idea of solving the disadvantages of the IntServ model. DiffServ follows the direction of ensuring quality based on the principle of hop-by-hop behavior based on the priority of marked packets. The policy for different types of traffic is decided by the administrator and can be changed according to reality, so it is very flexible. DiffServ makes better use of network resources, avoiding idle bandwidth and processing capacity on routers. In addition, the DifServ model can be deployed on many independent domains, so the ability to expand the network becomes easy. Chapter 3: METHODS TO ENSURE QoS FOR MULTIMEDIA COMMUNICATIONS In packet-switched networks, different packet flows often have to share the transmission medium all the way to the destination station. To ensure the fair and efficient allocation of bandwidth to flows, appropriate serving mechanisms are required at network nodes, especially at gateways or routers, where many different data flows often pass through. The scheduler is responsible for serving packets of the selected flow and deciding which packet will be served next. Here, a flow is understood as a set of packets belonging to the same priority class, or originating from the same source, or having the same source and destination addresses, etc. In normal state when there is no congestion, packets will be sent as soon as they are delivered. In case of congestion, if QoS assurance methods are not applied, prolonged congestion can cause packet drops, affecting service quality. In some cases, congestion is prolonged and widespread in the network, which can easily lead to the network being "frozen", or many packets being dropped, seriously affecting service quality. Therefore, in this chapter, in sections 3.2 and 3.3, we introduce some typical network traffic load monitoring techniques to predict and prevent congestion before it occurs through the measure of dropping (removing) packets early when there are signs of impending congestion. 3.1. DropTail method DropTail is a simple, traditional queue management method based on FIFO mechanism. All incoming packets are placed in the queue, when the queue is full, the later packets are dropped. Due to its simplicity and ease of implementation, DropTail has been used for many years on Internet router systems. However, this algorithm has the following disadvantages: − Cannot avoid the phenomenon of “Lock out”: Occurs when 1 or several traffic streams monopolize the queue, making packets of other connections unable to pass through the router. This phenomenon greatly affects reliable transmission protocols such as TCP. According to the anti-congestion algorithm, when locked out, the TCP connection stream will reduce the window size and reduce the packet transmission speed exponentially. − Can cause Global Synchronization: This is the result of a severe “Lock out” phenomenon. Some neighboring routers have their queues monopolized by a number of connections, causing a series of other TCP connections to be unable to pass through and simultaneously reducing the transmission speed. After those monopolized connections are temporarily suspended, Once the queue is cleared, it takes a considerable amount of time for TCP connections to return to their original speed. − Full Queue phenomenon: Data transmitted on the Internet often has an explosion, packets arriving at the router are often in clusters rather than in turn. Therefore, the operating mechanism of DropTail makes the queue easily full for a long period of time, leading to the average delay time of large packets. To avoid this phenomenon, with DropTail, the only way is to increase the router's buffer, this method is very expensive and ineffective. − No QoS guarantee: With the DropTail mechanism, there is no way to prioritize important packets to be transmitted through the router earlier when all are in the queue. Meanwhile, with multimedia communication, ensuring connection and stable speed is extremely important and the DropTail algorithm cannot satisfy. The problem of choosing the buffer size of the routers in the network is to “absorb” short bursts of traffic without causing too much queuing delay. This is necessary in bursty data transmission. The queue size determines the size of the packet bursts (traffic spikes) that we want to be able to transmit without being dropped at the routers. In IP-based application networks, packet dropping is an important mechanism for indirectly reporting congestion to end stations. A solution that prevents router queues from filling up while reducing the packet drop rate is called dynamic queue management. 3.2. Random elimination method – RED 3.2.1 Overview RED (Random Early Detection of congestion; Random Early Drop) is one of the first AQM algorithms proposed in 1993 by Sally Floyd and Van Jacobson, two scientists at the Lawrence Berkeley Laboratory of the University of California, USA. Due to its outstanding advantages compared to previous queue management algorithms, RED has been widely installed and deployed on the Internet. The most fundamental point of their work is that the most effective place to detect congestion and react to it is at the gateway or router. Source entities (senders) can also do this by estimating end-to-end delay, throughput variability, or the rate of packet retransmissions due to drop. However, the sender and receiver view of a particular connection cannot tell which gateways on the network are congested, and cannot distinguish between propagation delay and queuing delay. Only the gateway has a true view of the state of the queue, the link share of the connections passing through it at any given time, and the quality of service requirements of the traffic flows. The RED gateway monitors the average queue length, which detects early signs of impending congestion (average queue length exceeding a predetermined threshold) and reacts appropriately in one of two ways: − Drop incoming packets with a certain probability, to indirectly inform the source of congestion, the source needs to reduce the transmission rate to keep the queue from filling up, maintaining the ability to absorb incoming traffic spikes. − Mark “congestion” with a certain probability in the ECN field in the header of TCP packets to notify the source (the receiving entity will copy this bit into the acknowledgement packet). Figure 3. 1 RED algorithm The main goal of RED is to avoid congestion by keeping the average queue size within a sufficiently small and stable region, which also means keeping the queuing delay sufficiently small and stable. Achieving this goal also helps: avoid global synchronization, not resist bursty traffic flows (i.e. flows with low average throughput but high volatility), and maintain an upper bound on the average queue size even in the absence of cooperation from transport layer protocols. To achieve the above goals, RED gateways must do the following: − The first is to detect congestion early and react appropriately to keep the average queue size small enough to keep the network operating in the low latency, high throughput region, while still allowing the queue size to fluctuate within a certain range to absorb short-term fluctuations. As discussed above, the gateway is the most appropriate place to detect congestion and is also the most appropriate place to decide which specific connection to report congestion to. − The second thing is to notify the source of congestion. This is done by marking and notifying the source to reduce traffic. Normally the RED gateway will randomly drop packets. However, if congestion If congestion is detected before the queue is full, it should be combined with packet marking to signal congestion. The RED gateway has two options: drop or mark; where marking is done by marking the ECN field of the packet with a certain probability, to signal the source to reduce the traffic entering the network. − An important goal that RED gateways need to achieve is to avoid global synchronization and not to resist traffic flows that have a sudden characteristic. Global synchronization occurs when all connections simultaneously reduce their transmission window size, leading to a severe drop in throughput at the same time. On the other hand, Drop Tail or Random Drop strategies are very sensitive to sudden flows; that is, the gateway queue will often overflow when packets from these flows arrive. To avoid these two phenomena, gateways can use special algorithms to detect congestion and decide which connections will be notified of congestion at the gateway. The RED gateway randomly selects incoming packets to mark; with this method, the probability of marking a packet from a particular connection is proportional to the connection's shared bandwidth at the gateway. − Another goal is to control the average queue size even without cooperation from the source entities. This can be done by dropping packets when the average size exceeds an upper threshold (instead of marking it). This approach is necessary in cases where most connections have transmission times that are less than the round-trip time, or where the source entities are not able to reduce traffic in response to marking or dropping packets (such as UDP flows). 3.2.2 Algorithm This section describes the algorithm for RED gateways. RED gateways calculate the average queue size using a low-pass filter. This average queue size is compared with two thresholds: minth and maxth. When the average queue size is less than the lower threshold, no incoming packets are marked or dropped; when the average queue size is greater than the upper threshold, all incoming packets are dropped. When the average queue size is between minth and maxth, each incoming packet is marked or dropped with a probability pa, where pa is a function of the average queue size avg; the probability of marking or dropping a packet for a particular connection is proportional to the bandwidth share of that connection at the gateway. The general algorithm for a RED gateway is described as follows: [5] For each packet arrival Caculate the average queue size avg If minth ≤ avg < maxth div.maincontent .s1 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 15pt; } div.maincontent .s2 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 15pt; } 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 .s3 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s4 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s5 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s6 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s7 { color: black; font-family:Wingdings; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s8 { color: black; font-family:Arial, sans-serif; font-style: italic; font-weight: bold; text-decoration: none; font-size: 15pt; } div.maincontent .s9 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s10 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 9pt; vertical-align: 6pt; } div.maincontent .s11 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 13pt; } div.maincontent .s12 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 10pt; } div.maincontent .s13 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-d
Model system to assess the suitability of Vietnam's population-economic development process - 21

"strong", Dong A Bank Can Tho branch is making great efforts to utilize available resources, promote strengths and overcome limitations to achieve two major goals: by 2010 "Make Dong A Bank become the best bank in Vietnam" and "Make Dong A card products become the leading payment card brand in Vietnam".

3.2. INTRODUCTION TO DONG A MULTI-FUNCTIONAL CARD

3.2.1. Introduction to the development process of Dong A Multi-function card:

Since its inception, the Dong A Multi-function Card has gone through two stages.

development stage and increasingly bring more convenience to users.

Phase 1 :

As an event to celebrate the 10th anniversary of its establishment, since July 2002, Dong A Bank has learned from the experience of other banks and issued Dong A Payment Card. At that time, the transaction channel was only rudimentary POS machines installed like ATMs and agents were responsible for payment.

During this period, Dong A Bank brought the Multi-function card to customers who have relationships with the Bank. In addition, the Bank launched the Multi-function card in association with service providers such as Manulife, Mai Linh, Viet Tien... With the strategic orientation of the card in phase 1 being the width of the network, at that time, a Bank could not cover. Therefore, the formation of the VNBC (Vietnam Bank Card) system has maximally met the network needs of card users.

Since September 2003, Dong A Bank has cooperated with leading suppliers such as: Ciso, Juniper, Oracle, EMC, Iflex, Vietcard, Tomcom, TI and especially cooperated with GRG of China in its development. With a long-term and direct cooperation agreement, GRG has integrated the first generation of ATMs into the Vietnamese market, put into specialized applications for Dong A Bank and these ATMs have served well for nearly one million card customers of Dong A Bank over the years.

Phase 2:

The first characteristic of Dong A Bank in this period is to bring

Magnetic and chip composite cards with microelectronic applications, employee cards, health insurance,

social insurance... this card is used on both ATM and POS systems.

The second characteristic of this stage is to focus on the masses who do not have cards to create investment and technology, creating conditions for them to access the Bank so that they accept the card as their life need. The Bank has launched the 24/24 Automatic Bank, abbreviated as ABC (Automatic Banking Center). With a design integrating many modern, compact, and multi-functional devices, ABC is capable of serving all customers, with or without cards, even customers who have never transacted with the Bank. More specifically, ABC can serve the most ordinary customers according to the Bank's policy, with a touch screen system, smart transaction devices, simple to use. With this integrated system, ABC can provide customers with financial services similar to those at the Bank's branches during 24/24 service hours with a series of outstanding modern functions such as: Foreign currency exchange; Opening Dong A card; receiving savings interest; Buy prepaid cards of all kinds; Pay utility bills; Top up cash into card accounts; Top up cash into savings accounts; Fast money transfers; Transfer from card accounts to savings accounts; Combined transaction counter and ATM functions - 24-hour service.

3.2.2. Types of Dong A multi-function cards and utilities:

3.2.1.1. Types of Dong A multi-function cards on the market today:

East Asia Multi-Function Card:

- Utilities:

+ Withdraw cash at 783 ATMs (system)

VNBC), more than 100 POS Points.

+ Deposit money via ATM 24/24.

+ Transfer via ATM/SMS Banking/Internet Banking.

+ Pay for online purchases at online supermarkets: www.golmart.vn ; www.123mua.com.vn

+ Earn interest on the money in your account.

+ Pay for purchases at supermarket systems and stores: Co-

op Mart, MaxiMark, Metro, PNJ, Kinh Do...

+ Automatic payment of electricity, water, phone, internet, insurance, taxi, loan repayment.

+ View and print ATM statements.

+ Buy scratch cards (phone, internet,... prepaid) via ATM or Bank

electronics

+ Receive salary by card.

+ Transactions via "Dong A Electronic Bank" channel: money transfer, online payment, buying scratch cards, topping up Vcoin, receiving automatic information when there is a balance change, checking balance, listing transactions...

- Card validity period: 3 years

- Card issuance time: maximum 24 working hours

- Card usage fee:

+ Open free card.

+ Annual fee: 50,000 VND/year. Currently, there are many policies to exempt/reduce annual fees.

+ Exemption for most transactions in the province/city where the customer opens

card.

Richland Hill Multi-Purpose Card:

- Utilities:

+ Have the opportunity to reserve and draw lots to buy an apartment in

Richland Hill Complex

+ Get updated information about Richland Hill project and other projects of Thai Thinh Capital Company

+ Use the card's utilities and features as a Multi-function Card

East Asia

- Card validity period: 3 years.

- Card issuance time: Maximum 24 working hours.

- Card usage fee:

+ First release: Free

+ Expired card issuance fee: Free

+ Annual fee: 50,000 VND/year (collected immediately upon card registration)

+ Card replacement fee due to lost or damaged card by the Cardholder: 50,000 VND/card

CK Card Multi-purpose Card:

- Utilities:

+ Free service to view or print statements at Dong A Bank transaction counters located at Securities Companies.

+ Free payment service for buying/selling/depositing/receiving dividends,... securities.

+ Use the product "Sell securities - Get money immediately" between

Dong A Bank cooperates with Securities Companies to implement.

+ Be able to conduct online securities transactions: such as buying and selling securities, making deposits, paying dividends, etc. (of Securities Companies affiliated with Dong A Bank).

- Card validity period: 3 years.

- Card issuance time: Maximum 24 working hours.

- Card usage fee:

+ Free first card issuance.

+ Free annual fee for the first year.

+ Annual fee from the 2nd year: 50,000 VND/year.

+ Card issuance fee upon expiration: Free.

+ Free value-added services at Dong A Bank transaction counters located at securities companies.

3.2.3. Introducing some services using Dong A multi-function card:

With many available utilities such as an automatic bank: Cash withdrawal, balance inquiry, money transfer, payment for services at supermarkets or stores, restaurants accepting payment by ATM, buying phone cards, taking taxis... anytime, anywhere... Dong A Bank also has many breakthroughs in investing in technology, applying modern banking utilities into its operations, in order to best serve the needs of customers through programs: payment, collection, ....

Transfer money via mobile phone:

From August 1, 2006, Dong A Bank's Multi-Function Cardholders can transfer money via mobile phone. Dong A Bank is the first bank in Vietnam to deploy this convenient service.

With SMS banking service, all customers using Dong A Bank's Multi-function card can make transactions with the Bank, without time or location restrictions, with just simple operations on their phones. Specifically, customers can receive free automatic messages via mobile phone (sent by the Bank to customers) to notify changes in balances and promotional programs. In particular, customers can make transfers between Multi-function card accounts right on their mobile phones with a transfer limit of 2 million VND/day. Customers can pay service fees in 2 ways: pay a lump sum fee of 9,900 VND/month or pay the actual fee of 400 VND/message. (Source: ATM training documents - Dong A Bank, page 18)

Water bill collection program via Dong A multi-function card:

On August 29, 2007, the leaders of Dong A Bank and Binh Duong Water Supply and Environment Company signed a cooperation contract to implement the service of collecting water bills through the multi-function card of Dong A Bank. Thereby, all customers (households and organizations, groups) using water sources provided by Binh Duong Water Supply and Environment Company, if they agree to use this service, only need to go to Dong A Bank to open a card account and register to use the service with very simple and convenient procedures... Every month, based on the water bill sent by the company, the Bank will pay this part on behalf of the customer, at the same time notify the customer by text message via the mobile phone that the customer is using and transfer the payment bill directly to the customer, but without having to pay any cost. Currently, Dong A Bank is promoting many similar water bill collection contracts with Water Supply and Environment Companies nationwide.

Buy prepaid mobile cards via SMS / Internet Banking:

Cardholders can buy popular types of cards today such as mobile phone cards, Internet cards, prepaid phone cards (Internet Phone cards, VoIP Phone cards)... through 2 channels: Internet Banking or SMS Banking. In addition, cardholders can also buy cards via SMS Banking with just a mobile phone. Dong A Bank will provide the parameters of the prepaid card to be purchased such as card serial number, card code, expiration date... after receiving a valid response message from the cardholder.

Pay for online purchases with Multi-function card:

From February 1, 2007, customers using Dong A Multi-Function Card can pay for online purchases. Payments will be transferred immediately to the seller, and cardholders can easily manage them via the Internet or mobile phone messages. The first partner to cooperate with Dong A Bank to deploy this service is Golmart Electronic Supermarket - a unit providing a variety of products online.

Pay landline phone bills:

From May 4, 2007, Dong A Multi-Function Cardholders can pay for Saigon Postel fixed-line telephone and internet bills when Saigon Post and Telecommunications Company (SPT) sends a payment request via Dong A Bank's ATM system. This service is part of the cooperation between Dong A Bank and SPT; participating cardholders are completely free of charge.

Use cards linked to Dong A multi-function card:

In addition to the official multi-function cards issued by Dong A Bank, customers can also choose to use some types of cards associated with Dong A multi-function cards depending on the purpose of use such as: Dong A - Manulife joint card, Dong A - Mai Linh joint card, student joint card, etc. These types of cards also have all the features of Dong A multi-function cards, and at the same time, cardholders will be able to use additional accompanying services such as: For Dong A - Mai Linh joint card, the Bank will collect service fees for Mai Linh for corporate or individual customers using Mai Linh's taxi, travel services, etc. without charging the cardholder; for Dong A - Manulife joint card, the Bank will collect insurance fees for customers using Manulife insurance products ; Student link cards apply magnetic card technology to student management such as: Managing library access, computer room access, paying tuition, student scholarships via card,.. and a number of other applications suitable for the most superior features of current card technology.

3.3. ANALYSIS OF MULTI-FUNCTIONAL CARD BUSINESS SITUATION AT BANKS

DONG A GOODS CAN THO BRANCH

3.3.1. Development status of multi-function cards at Dong A Bank branch

Can Tho:

3.3.1.1. Card business performance results:

Table 2: RESULTS OF MULTI-FUNCTIONAL CARD BUSINESS ACTIVITIES OF DONG A BANK, CAN THO BRANCH 2005 - 2007

Unit: million VND

INDICATORS

YEAR			DIFFERENCE 2006/2005		DIFFERENCE 2007/2006
2005	2006	2007	+/-	%	+/-	%
INCOME	1,462.67	2,576.41	2,934.79	1,113.74	76.14	616.38	23.92
EXPENSE	1,340.59	2,412.35	2,657.25	1,071.76	79.95	514.9	19.38
PROFIT	122.08	164.06	277.54	41.98	134.39	155.46	94.75

Maybe you are interested!

(Source: Accounting Department of Dong A Bank, Can Tho branch)

Cost Income Profit

Amount

3000

2500

2000

1500

1000

500

2934.79

2576.41

2412.35

2657.25

1462.67

1340.59

122.08

164.06

277.54

2005 2006 2007

Year

Figure 5: Card business performance of Dong A Bank

Can Tho branch 2005 - 2007

Comment:

Through the card business performance table of Dong A Bank, Can Tho branch above, we can see that: along with the increase in costs for card business activities, the revenue from this activity also increases and increases faster than the cost of leading.

The profit from Dong A Bank's card operations has increased over the years. This is because the Bank has been investing more and more in card operations. With the motto of considering "Card strategy as the main strategy", the Bank has increased its investment in both financial and human resources in this activity, bringing satisfaction to customers using cards. Therefore, more and more multi-function cards are issued in parallel with the increasing number of customers using cards and the services of multi-function cards bring significant revenue to the Bank, so although the cost is very high, the Bank still makes a profit from card business over the years.

Regarding costs: We can see that the costs that Dong A Bank invests in card services have increased over the years. In 2006, the cost was 2,412.35 million VND, an increase of 1,071.76 million VND, equivalent to 79.95% compared to 2005. Because in this year, the Bank focused its resources on investing in card services: the number of ATMs and POS points installed this year increased by over 300% compared to 2005, at the same time, the cost for card marketing activities this year was also very large because the Bank used the form of collaboration with collaborators to open cards and pay them a fee (3,000 VND/card), besides, the free card opening activity at large supermarkets also cost a lot. This caused the cost of card operations to increase significantly compared to 2005. In 2007, the cost of card operations was VND 2,657.25 million, an increase of VND 514.9 million, equivalent to 19.38% compared to 2006. In this year, the Bank continued to expand the installation of ATMs and POS points in the city. Although the Bank did not carry out large-scale card promotion programs as in 2006, marketing and card promotion activities for businesses using salary payment services via the Bank's card accounts this year also cost a lot of money.

Regarding revenue: revenue from card business activities comes from card opening service fees, annual card usage fees, card-related service fees and temporarily idle ATM account balances that the Bank can use to invest in business to earn interest. We can see that revenue from card business of Dong A Bank, Can Tho branch has increased over the years. In 2005, because the Bank's card activities had not yet developed strongly, and at the same time, the salary payment service via account had not been implemented, the revenue from card activities was only about 1,500 million VND.