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Turn “brand commitment” into reality
1. I am proud to be part of the corporate brand
2. I care about the reputation of the corporate brand
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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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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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3. I find that the values that the corporate brand is pursuing are the same as the values that I value in life.
4. I put more effort into my corporate branding
5. I feel like I fit the corporate brand
Turn “action towards corporate branding”
1. I am responsible for work outside of my duties.
2. I demonstrate behaviors consistent with the corporate brand.
3. I care deeply about the impact of every action I take on my business brand.
4. I have more initiatives to maintain behavior towards the corporate brand.
5. I regularly recommend your business brand to others.
6. I impart corporate branding knowledge to new employees.
7. I would love to learn more about corporate branding.
Variable “Relationship orientation in business”
1. Managers and employees cooperate well with each other at work
2. Good corporate communication
3. All employees in the company are united in achieving the goals and values of the company.
4. Members of the business respect each other and are people who respect life values.
5. The management is trustworthy.
6. The business trusts me.
7. The company is interested in my role.
8. The company treats me like a human being.
Variable “Socialization in business”
1. The company has done a very good job of training.
2. Corporate training activities help me do my job well.
3. Colleagues support each other well at work
4. Clear business goals
5. The manager's instructions are very helpful in helping me do my job well.
6. Colleagues help each other in implementing business adjustments
7. The work environment helps me understand how to act
Variable “Employee Adoption Level”
1. I voluntarily seek information about how my business is operating.
dynamic
2. I find it interesting to receive a variety of information about my business (e.g. information about my job, marketing initiatives, customer service initiatives, how the business operates, etc.)
3. Having access to strategic information about the business (e.g. business goals) helps me know how to perform my duties better.
4. Being informed about the business and not just information relevant to my job makes my job more enjoyable.
5. I happily provide feedback on a variety of work issues to my boss.
6. I feel comfortable providing feedback to my boss.
2.2. Brand commitment variable scale of Kimparkon and Tocquer (2010)
English version

Translate into Vietnamese
1. I often tell my friends that I work for a major hotel brand.
2. I am proud to tell others I am part of my hotel brand.
Working.
3. I consider myself to be working for the best hotel brand of all the hotel brands I could possibly work for.
4. There is very little chance that I will not work for my hotel brand.
working again.
5. I am really glad that I chose to work for my hotel brand over other corporate brands that I was interested in.
6. I am really passionate about the hotel brand I work for.
7. I accept to follow any work assignment in order to continue working for my hotel brand.
8. I am willing to put in a lot of effort to make my hotel brand successful.
APPENDIX CHAPTER 3
3.1 Qualitative research to explore the concept of Internal Brand Strength in the field of Vietnamese Commercial Banking
1. Research design
1.1 Introduction
The concept of Internal Brand Strength as presented in Chapter 2 is a new concept in the context of Vietnam and in the Vietnamese commercial banking sector. Therefore, when conducting research, it is necessary to review whether in the context of Vietnam it is understood in a similar way as in the original research model. The qualitative research will therefore investigate the understanding of Internal Brand Strength of Vietnamese bank employees.
1.2 Purpose
The purpose of the study is to examine, adjust and supplement the concept of Internal Brand Strength and how to measure this concept for a specific industry in Vietnam, the banking industry. The research objective is to explore the nature of Internal Brand Strength and evaluate how to measure two factors that constitute Internal Brand Strength, which are commitment and action towards the bank brand of employees with the characteristics of the commercial banking sector in the context of Vietnam.
1.3 Research methods
The research methods used are focus group interviews and in-depth individual interviews. Focus group interviews aim to introduce new concepts and components, clarify bank employees' perceptions of concepts, identify similarities and differences in the perceptions of interviewees about concepts and how to measure concepts. In-depth individual interviews aim to clarify the nature and confirm controversial issues about the concept and how to measure internal SMTH and its components.
The survey subjects are people working in Vietnamese commercial banks, including employees and administrators in departments, divisions, and branches (hereinafter referred to as employees) randomly selected from the list of employees of Vietnamese commercial banks (including both employees and managers, and those working in direct departments).
customer contact and indirect departments, support departments, both those working in branches and headquarters, and those working in marketing, customer relationship management, branding, human resources and other functional departments.
1.4 Content
The discussion was conducted to clarify the following issues:
(1) Employees' perceptions of the concept of internal SMTH in the banking sector
(2) The components of the internal SMTH concept include employee commitment to the brand and employee actions towards the brand.
(3) How to measure two concepts of employee commitment and action towards the bank brand
Specific content:
1. What makes a bank brand powerful in the minds of employees?
2. When you personally see the power/powerlessness of the bank brand you are working for in your mind and emotions, how is that expressed in your cognitive thinking, emotions and attachment, behavior and activities towards the bank brand you are working for?
3. It is believed that SMTH is demonstrated through the commitment and actions of employees towards the brand. In which, employee commitment to the brand is understood as a strong belief in the goals and values of the enterprise, the acceptance of those goals and values by employees, the willingness to make significant efforts when representing the enterprise, and a strong desire to maintain the relationship of the enterprise with other entities. According to you, what is employee commitment to the bank brand and how is it demonstrated?
4. Are the following statements expressing “employee commitment to the bank brand” (the scale items measuring the employee commitment to the bank brand variable include 10 observed variables) reasonable, complete and suitable for the conditions of Vietnamese banks? Do you have any further comments to add?
5. Employee actions towards the bank brand are perceived as
The process of employee behavior in “living the brand” is defined as the level of behavior based on the company’s practices, consistent with the company’s brand values, and extending the company’s brand identity. In your opinion, what is the meaning of employee actions towards the bank brand, and how should they be expressed?
6. Are the following statements expressing “employees’ actions towards the bank brand” (the scale items measuring the employee actions towards the bank brand include 6 observed variables) reasonable, complete and suitable for the conditions of Vietnamese banks? Do you have any further corrections or additions?
2. Research results
The results of the study show that most employees participating in the discussion agree that a bank brand has SMTH in employees when employees have a commitment and action towards the bank brand. These concepts need to be expressed in a more specific and understandable way. Employees' commitment to the bank brand should be understood as a strong belief, pride, interest and acceptance of the goals and values of the corporate brand of the employees, and an attitude of willingness to make efforts to contribute to make the brand more famous and become a part of their lives. Employees' actions towards the bank brand should be understood as all employee behaviors and activities that are consistent with the bank's brand value, positively affect the brand value, strengthen, increase the brand value and promote the bank's brand value to all relevant subjects.
With the measurement method of “employee commitment to the bank brand”, the employees participating in the study all agreed with the statements in the scale items of Burman & Zeplin (2009) used by King & Grace (2012), but many people disagreed with some statements in the scale of Kimparkon & Tocquer (2010).
In measuring “employee actions towards the bank brand”, most of the research participants agreed with the statements of Burman and Zeplin (2009) used by King and Grace (2012). In the focus group discussion, some individuals expressed the need for statements that reflect employee actions and the specificity of the banking industry. Example of use
KPI (key performance index) is a target assigned to bank employees to complete tasks in a certain sales period/working period to evaluate the employee's actions towards the bank brand. However, in group discussions and in-depth investigations in individual interviews, there was no high consensus on making the completion of KPI an expression of "employee actions towards the bank brand" because for the direct banking department, it is highly risky and greatly affects the achievement of KPI, for the indirect department, achieving KPI is not a factor that demonstrates "employee actions towards the bank brand".
3.2 Qualitative research to explore the influence of contextual factors on internal brand strength in the Vietnamese commercial banking sector
1. Research design
1.1 Introduction
The research model of King & Grace (2012) was verified in the service sector in Australia. In the new context in a specific field such as banking and in Vietnam, when no similar research has been conducted, it is necessary to conduct qualitative research to explore the research problem in the new context: can it be applied, are there differences, are there new points?
1.2 Purpose
The purpose of the study is to examine the applicability of the research model of King & Grace (2012) and help form the author's research model in the banking sector in Vietnam. The research objective is to explore the contextual factors affecting internal SMTH at Vietnamese commercial banks, focusing on two groups of factors: work environment and individual bank employees.
1.3 Research methods
The research methods used are focus group interviews and in-depth individual interviews. Focus group interviews focus on exploring contextual factors that may influence internal SMTH, in-depth individual interviews focus on the elements of the proposed research model.
1.4 Content
The discussion was conducted to clarify the following issues:
(1) What contextual factors influence employees' commitment and actions towards the bank brand?
(2) What is the nature and impact of each of the above factors on employee commitment and actions towards the bank brand?
(3) Which factors belong to the group of personal factors of bank employees and to the working environment in the bank, and evaluate the level of impact of the two groups of factors.
Specific content:
1. In your opinion, what factors influence employees' commitment to the bank brand? (clarify employees' perceptions of each factor mentioned)
2. According to you, what factors influence employees' actions towards the bank brand? (clarify employees' perceptions of each factor mentioned)
3. What is the nature (positive/negative) and level of impact (strong/weak) of each mentioned factor on employees' commitment and actions towards the bank brand?
4. This is a diagram of factors affecting internal SMTH summarized from studies in the service sector in the world in general (Appendix 3.7). Explain the diagram: the concept of each factor, the nature of the impact of each factor on the commitment and actions of employees. In your opinion, are these impacts similar in the banking sector in Vietnam and in the specific context of the bank you are working for?
5. In your opinion, in this influence factor diagram (Appendix 3.8 - supplemented with factors mentioned by respondents during the discussion), which factors have an important influence on employees' commitment and actions towards the bank brand in the banking sector in Vietnam?
6. Now, please review the following factors (Appendix 3.8 - with additional factors mentioned during the discussion) and classify them into two groups: “individual bank employees” and “bank working environment” if possible. In your opinion, which group of factors is more important, “individual bank employees” and “bank working environment”?
7. The banking situation since 2007 has affected SMTH
of the banks in the staff?
2. Research results
The results of the study showed:
The group of working environment factors including relationship orientation, socialization, direct leadership and incentive and compensation mechanisms are considered important factors that strongly and positively influence commitment and action towards the bank brand.
The group of personal factors includes the level of employee receptivity (activeness in receiving influences from the external environment at work), the individual's assessment of the suitability between the individual employee and the organization (personal interests in the organization in comparison with other individuals inside and outside the organization, the fit of values and characteristics of the individual and the organization, the fit of personal development orientation and development orientation of the organization), personal psychological characteristics (introversion/extroversion), the individual's experience with the bank brand in daily work life positively affects both commitment and action towards the bank brand. The level of employee receptivity and their interests in the organization are considered important in this group of factors. In terms of interests, individual employees are always placed in correlation between the bank's response to personal needs compared with other job positions, other banks, other businesses; the relationship between an individual's contribution to the organization and the individual's needs that need to be met.
The group of work environment factors is considered to be a more important group of factors than the group of personal factors to internal SMTH because the banking sector has the characteristics of including large organizations with extensive network systems and is subject to many risks from the environment. The work environment factors, once established by the bank, will create a mechanism that requires thousands of individuals to adapt and help the operations in the bank avoid/less suffer from the consequences of industry risks.
The context of the Vietnamese banking industry from 2007 to present has greatly influenced the influence of the working environment and personal factors (mentioned above) on internal SMTH. Accordingly, the influence is different between banking groups. The operational and financial situation of the bank greatly influences this influence, in which the operational and financial situation should be based on the ranking.
ratings of international credit rating agencies.
3.3 Qualitative research examines the impact and measurement of four factors: Relationship orientation, socialization in banking, employee acceptance level and the fit between individual needs - bank response affecting Internal Brand Strength in the field of Vietnamese Commercial Banking
1. Research design
1.1 Introduction
This study focuses on four factors that have theoretical foundations and are considered important by bank employees in Vietnam in influencing internal SMTH, creating the author's research model.
1.2 Purpose
The purpose of the study is to examine the applicability of the author's proposed research model in the banking sector in Vietnam. The research objective is to clarify the nature and influence of four factors: Relationship orientation, socialization in banking, employee acceptance level and the fit between personal needs - bank response to employee Commitment and Action towards the bank brand.
1.3 Research methods
The research method used is in-depth personal interviews to facilitate the clarification of the nature and assessment of the impact level as well as the measurement of the factors of the research model.
1.4 Content
Each in-depth individual discussion is conducted to clarify the following issues:
(1) The nature of each factor: Relationship orientation, socialization in the bank, level of employee acceptance and the fit between individual needs - bank response and how to measure these factors.
(2) What is the nature and impact of each of the above factors on employee commitment and actions towards the bank brand?
(3) Evaluate the importance of each factor in the model and the importance of the two groups of factors to the internal SMTH.
Specific content:
1. How do you understand the relationship orientation in banking (with explanation of terms, presentation of scale items)? Are the statements expressing the relationship orientation in banking suitable for the conditions of Vietnamese commercial banks? Do any more statements need to be edited or added to suit the banking sector in Vietnam and the characteristics of the bank you are working at?
2. How do you understand the socialization in banking (with explanation of terms, presentation of scale items)? Are the statements expressing the socialization in banking suitable for the conditions of Vietnamese commercial banks? Do any more statements need to be edited or added to suit the banking sector in Vietnam and the characteristics of the bank you are working at?
3. How do you understand the level of employee acceptance (with explanation of terms, presentation of scale items)? Are the statements expressing the level of employee acceptance suitable for the conditions of Vietnamese commercial banks? Do any other statements need to be edited or added to suit the banking sector in Vietnam and the characteristics of the bank you are working for?
4. How do you understand the suitability of employee needs - bank response (with explanation of terms, presentation of scale items)? Are the statements expressing this factor suitable for the conditions of Vietnamese commercial banks? Do any more statements need to be edited or added to suit the banking sector in Vietnam and the characteristics of the bank you are working for?
5. How do the factors of relationship orientation, socialization in the bank, employee acceptance level and the fit between personal needs and bank response affect employee commitment and actions towards the bank brand (positive/negative, strong/weak)?
6. How do you rate the importance of each factor/group of factors to internal SMTH?
7. Has the banking performance since 2007 affected the SMTH of banks among employees?
2. Research results
The results of the study showed:
In general, bank employees have a similar understanding of the concepts.
The concept of relationship orientation, socialization in banking, the level of employee acceptance and the match between individual needs - bank response and how to measure these factors. However, there are some notes as follows: (1) Relationship orientation: emphasizes specific relationships such as direct - indirect employees, employees - other department employees, employees - direct boss, not just referring to the general relationship between employees - businesses. (2) Socialization in banking also needs to include helping employees take actions towards the brand, not just helping employees learn and identify the values of the organization. (3) Some words in the statements should be kept in a neutral state so that the scale can help assess the status of the surveyed person correctly, for example, do not use the word "very", should use the word "not yet" instead of the word "no".
Bank employees agree on the positive and strong influence of factors on internal SMTH. Work environment factors are considered more important than employee personal factors in influencing commitment and action towards the brand. The factor “fit between personal needs – bank satisfaction” is considered to have the strongest influence and affects internal SMTH both in the short and long term.
The context of the Vietnamese banking industry from 2007 to present has greatly influenced the influence of the working environment and personal factors (mentioned above) on internal SMTH. Accordingly, the influence is different between banking groups. The operational and financial situation of the bank greatly influences this influence, in which the operational and financial situation should be based on the ratings of international credit rating organizations.
3.4 Focus group interview guide
FOCUS GROUP INTERVIEW GUIDE
Part 1 : Introduction
- Introduce the interviewer: PhD student, lecturer at National Economics University, currently conducting the topic: "Factors affecting brand strength within Vietnamese commercial banks"
- Purpose of group interview: to serve the research topic of the PhD student, to record all comments and contributions as useful for the research,

![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 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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