Vietnam Joint Stock Commercial Bank for Industry and Trade - Kien Giang Branch has also developed the following services: card issuance, import-export payment, remittance payment, etc., contributing significantly to the socio-economic development of Kien Giang province. Currently, the Branch has a relatively wide network of operations, concentrated in the key economic regions of the province:
+ Transaction Office No. 4: Located at No. 36, Hoang Hoa Tham, Vinh Thanh Van Ward, City.
Rach Gia. Tel: 077.3860196
+ Rach Soi Transaction Office: Located at 15, Mai Thi Hong Hanh, Rach Soi Ward, City.
Rach Gia. Tel: 077.3864072
+ Kien Luong Transaction Office: Located at 240, National Highway 80, Luong, Kien Luong District. Tel: 077.3850298
Lo Bom Hamlet, Kien Town
+ Tan Hiep Branch: Located at Tan Hiep District. Tel: 077.2468199
112, National Highway 80, Hamlet A, Tan Hiep Town,
+ Ben Nhut Transaction Office: Located at 99A, Noi O Area, Giong Rieng Town, Giong Rieng District. Tel: 077.647.877
+ Phu Quoc Transaction Office: Located at 139, Nguyen Trung Truc, Duong Dong town, Phu Quoc district. Tel: 077.3983001
+ Hon Dat Transaction Office: Located at No. 61, Hon Street Quarter, Hon Dat Town, Hon Dat District. Tel: 077.3779678
2.1.1.2 Functions and tasks of the Branch
- Function
- Directly conduct currency, credit, banking services and other related business activities for profit purposes according to the decentralization of the Agricultural Bank.
- Organize business operations, inspection and internal control under the authorization of the Board of Directors and General Director.
- Perform other tasks assigned by the Board of Directors or General Director.
- Mission
- Capital mobilization:
a) Exploiting and receiving deposits from domestic and foreign organizations, individuals and credit institutions in the form of demand deposits, term deposits and other types of deposits in Vietnamese Dong and foreign currencies;
b) Issue certificates of deposit, bonds, promissory notes and other valuable papers to mobilize capital from domestic and foreign organizations and individuals according to VietinBank's regulations.
c) Receive funding sources and entrusted capital from the Government, local authorities, domestic and foreign economic organizations and individuals according to VietinBank's regulations.
d) Borrow capital from other financial and credit institutions operating in Vietnam and foreign credit institutions with written permission from the General Director;
d) Other forms of capital mobilization according to the Bank's regulations.
e) Capital mobilization can be VietinBank.
- Loan
by tools
other than as prescribed by
Short-term, medium-term and long-term loans and other types of loans as prescribed by the Industrial and Commercial Bank.
- Forex trading
Mobilizing capital and lending, buying and selling foreign currencies, international payments, guarantees, re-guarantees, discounting, rediscounting sets of documents and other foreign exchange services according to the foreign exchange management policies of the Government, the State Bank and the Industrial and Commercial Bank.
- Providing payment and treasury services including:
a) Providing means of payment;
b) Provide domestic payment services to customers;
c) Perform collection and payment services;
d) Provide cash collection and disbursement services to customers;
d) Provide other payment services as prescribed by the State Bank and the Industrial and Commercial Bank.
- Other banking services:
Providing banking services including: Cash collection and disbursement; buying and selling gold, silver, and currencies; ATMs, card services; safes, receiving custody, storage, discounting of commercial papers and other valuable papers, payment cards; receiving entrusted loans from financial and credit institutions, organizations, and individuals at home and abroad; financial leasing, securities, insurance agents... and other banking services permitted by the State and the Industrial and Commercial Bank.
- Pledge, discount commercial papers and other short-term valuable papers according to regulations of the Industrial and Commercial Bank.
- Fully comply with reports and statistics according to regulations and at the General Director's special requests.
- Perform other tasks assigned by the Board of Directors and General Director.
2.1.1.3 Organizational structure and functions of each department of the Joint Stock Commercial Bank for Industry and Trade - Kien Giang Branch
- Organizational structure chart
6.
(Source: Administrative Organization Department)
Diagram 2.1: Business organization structure of Vietnam Joint Stock Commercial Bank for Industry and Trade - Kien Giang Branch
(Source: Administrative Organization Department)
Diagram 2.2: Management organization structure of Vietnam Joint Stock Commercial Bank for Industry and Trade - Kien Giang Branch
- Function of each part
- Director : is responsible to the General Director and before the law for the operation of the Branch. All activities of the Branch are directed and operated by the Director. The Director has the right to organize the appointment, dismissal, reward, and discipline of officers and employees of the unit. At the same time, receive information from the Head Office and the lower branches to plan business development strategies for the Branch.
- Deputy Director : is responsible for supporting and assisting the Director in managing all activities of the Branch according to the assignment and authorization of the Director, and is responsible to the Director for assigned tasks.
- AccountingDepartment : Performs accounting management tasks at the Branch such as Branch payments to internal banks and other banks, liquidity management, and synthesizing the financial business plan of the entire Branch.
- General Department : responsible for statistics, reporting, proposing plans and advising on policies on interest rates and promotional programs.
- Corporate customer room : is the room that directly deals with customers.
corporate banking to exploit capital in VND and foreign currencies, perform credit-related operations in accordance with current regulations and guidelines of the State Bank of Vietnam.
-Retail department : deals directly with retail customers , individual customers and households to exploit capital sources.
- Treasury and currency department : The department manages treasury safety and cash funds according to the regulations of the State Bank and the Vietnam Joint Stock Commercial Bank for Industry and Trade. Advance and collect money for transaction offices and accounting department tellers .
- Organization and Administration Department : Carry out the work of organizing and training staff in accordance with the State's policies and regulations of the Vietnam Joint Stock Commercial Bank for Industry and Trade, carry out political work, office work, business activities and security work for the Branch, arrange staff to advise the Board of Directors.
2.1.1.4 Organization of accounting work
Organizational chart of accounting department
Diagram 2.3: Organization of accounting apparatus
Applicable accounting regime and form
- Accounting mode:
Accounting work is accounted for based on accounting instructions for transactions.
Capital mobilization of the State Bank according to Decision No. 497/2004/QD-NHNN dated
April 29, 2004. Decision No. 807/2005/QD-NHNN dated June 1, 2005, and Decision No. 29/2006/QD-NHNN dated July 10, 2006 for credit institutions.
- Applicable accounting form:
Choosing the form of accounting is important for organizing accounting work. Vietnam Joint Stock Commercial Bank for Industry and Trade - Kien Giang Branch has applied the form of accounting by bookkeeping vouchers according to State regulations.
Diagram 2.4: Accounting entry sequence according to accounting voucher form
Note:
Daily recording Monthly or periodic recording Check reconciliation
Daily, based on the accounting vouchers or summary tables of accounting vouchers of the same type that have been checked, used as the basis for the vouchers to be recorded in the books, the accountant creates the vouchers to be recorded in the books. Based on the vouchers to be recorded in the books, the vouchers to be recorded in the books are then used to record in the general ledger. The accounting vouchers after being used as the basis for creating the vouchers to be recorded in the books, the related detailed accounting cards.
At the end of the month, the books must be closed to calculate the amount of economic and financial transactions arising during the month in the voucher registration book, calculate the total arising credit and balance of each account in the general ledger to create an accounting balance sheet.
After comparing the correct data recorded in the general ledger and the detailed summary table (made from detailed accounting books and cards), it is used to prepare the financial report.
Reconciliation and checking ensure that the total debit and credit balances of all accounts on the balance sheet are equal and the total amount of money on the voucher registration table is equal. The total debit balance and the total credit balance of the accounts on the balance sheet must be equal to the balance of each corresponding account on the detailed summary table.
- Application of information technology in accounting work
Currently, the application of information technology in the Bank's financial accounting management has covered most of the financial operations, helping to reduce the work of professional staff, increase the amount of completed work, and facilitate operational activities, which has brought about good results.
The bank uses its own software to perform accounting work. Every day when there is a document arising, the accountant enters it into the computer, and the computer processes it automatically. At the end of the month, when accounting information is needed, the accountant will print out the relevant book reports and compile them into books to keep in the accounting department. In addition, the bank also uses Excel software to support accounting work. Excel has many useful functions that are often used in the banking sector, specifically: FV and PMT functions are applied in deposit activities, while PPMT and IPMT functions are applied in bank lending activities.
Note:
Figure 2.5: Computerized accounting
Enter daily data
Print books, reports at the end of the month, end of the year. Compare and check.
2.1.2 Economic characteristics of Vietnam Joint Stock Commercial Bank for Industry and Trade - Kien Giang Branch
2.1.2.1 General assessment of business performance of Vietnam Joint Stock Commercial Bank for Industry and Trade - Kien Giang Branch in 2011-2013
Table 2.1: Business performance of the Bank over 3 years
(2011 – 2013)
Unit: Million VND
Target
Year | 2012/20 11 | 2013/2012 | ||||
2011 | 2012 | 2013 | Amount | % | Amount | % |
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1. Total income
393,368 | 385,849 | 352,536 | (7,519) | (1.91) | (33,313) | (8.63) | |
2. Total cost | 361,278 | 350,183 | 307,961 | (11,095) | (3.07) | (42,222) | (12.06) |
3. Profit | 32,090 | 35,666 | 44,575 | 3,576 | 11.14 | 8,909 | 24.98 |
(Source: Vietinbank General Department)
Comment :
Over the past 3 years, Vietnam Joint Stock Commercial Bank for Industry and Trade - Kien Giang Branch has achieved certain specific results as follows:
- Regarding total income : In 2011, the total income of the Branch reached 393,368 million VND but in 2012 it only reached 385,849 million VND, a decrease of 7,519 million VND compared to the previous year, a decrease of 1.91% due to the continued consequences of the global financial crisis and the prolonged public debt crisis in the European region, so the world economy is not developing favorably. The growth of most developed and developing economies reached a low level, strongly affecting the economy as well as the business situation of the Bank. In 2013, the total income of the Branch only reached 352,536 million VND, a decrease of 33,313 million VND, a decrease of 8.63%.
- Regarding total expenses : The main expense that the Bank has to pay is interest expenses. In addition , there are other expenses such as transportation and loading costs, fees, depreciation of fixed assets, equipment purchases, salaries of officers and employees, etc. Along with the unstable increase and decrease in total income, expenses also increase and decrease: in 2011, the total expense was 361,278 million VND, in 2012, the total expense was 350,183 million VND, a decrease of 11,095 million VND, equivalent to 3.07%. However, in 2013, the economy was somewhat unstable, so deposits from people to the Bank decreased, leading to a decrease in interest expenses. The total expense in 2013 was 307,961 million VND, a decrease of 42,222 million VND, equivalent to 12.06%.
- About total profit : Profit is equal to income minus expenses. The Bank's total profit has increased steadily over the past 3 years. In 2011, total profit reached 32,090 million VND, by 2012 it increased by 3,576 million VND to 35,666 million VND , an increase of 11.14%. In 2013, total profit was 44,575 million VND, an increase of 24.98%.
Chart 2.1:
Business performance results
Branch's revenue over 3 years (2011 - 2013)
2.1.2.2 Main products and services of the Branch
Capital mobilization:
- Mobilize deposits from businesses and individuals in VND, foreign currency, gold with diverse terms and attractive interest rates.
- Savings programs with prizes and promotions.
- Flexible savings: Saving for education, retirement, consumption, real estate, travel...
- Saving products for women in collaboration with MeTro: MeTro Cash & Carry Card, JCB Card – Golden Hour Card Swipe, Accumulated Savings for Children….
Credit:
- Short term loans:
- Loans to supplement working capital
- Loans for production of export goods
- Medium and long term loans:
- Long-term investment loans, factory construction, machinery and equipment purchase, loans to support education, consumption, domestic and foreign guarantees...
- Trust loans, co-financing loans, co-guarantees...
Services:
- Pay for Vietnam Airline tickets with Ipay service
- Remittance services
- MOMO e-wallet, Mobile BankPlus
- Domestic and international money transfer, guarantee verification
- SMS Banking, Internet Banking services
- Domestic and international money transfer services
Other services
In addition, the Bank also supports many programs with profound humanity such as 'Online Charity', 'Kindness'...
2.1.3 Characteristics of the business environment of Vietnam Joint Stock Commercial Bank for Industry and Trade - Kien Giang Branch
2.1.3.1 Characteristics of the Branch's business environment
branch
Working environment
VietinBank always creates a professional and modern working environment, maximizing the right to work, contribute, develop and honor employees and harmoniously combining the interests of the enterprise with the interests of staff and employees.
Labor policies
With the motto that human resources are the core value, VietinBank always focuses on training and fostering the capacity, qualifications and qualities of its staff through the following forms:
- Basic/in-depth theoretical training and practical experience exchange at
VietinBank Human Resource Development and Training School. This isa large - scale , modernof cooperation and association with 15 prestigious training institutions. The school provides all training and development services; scientific research and financial and banking consulting services and has full capacity to receive technology transfer and modern training forms.