actively accelerate the growth rate and socio-economic development of the province, recognized and highly appreciated by all levels, sectors and many customers.
Functions of Joint Stock Commercial Bank for Foreign Trade of Vietnam - Bac Ninh Branch
Vietcombank Bac Ninh is a dependent accounting unit of Vietcombank, established under the Decision of the Board of Directors, operating under the authorization of Vietcombank; has its own seal and balance sheet according to Vietcombank's regulations; is allowed to open an account at the State Bank - Provincial Branch and at Vietcombank. The functions and tasks of Vietcombank Bac Ninh are specifically as follows:
- Mobilize capital according to the provisions of law and Vietcombank through forms such as receiving deposits, issuing valuable papers or receiving export financing capital and investment trust capital from foreign banks or international organizations allocated by Vietcombank.
- Lending in Vietnamese Dong and foreign currency to economic organizations, individuals and households of all economic sectors according to regulations within the scope of authority assigned/authorized by the General Director of Vietcombank.
- Perform guarantee and re-guarantee operations for domestic and foreign enterprises and financial and credit institutions according to regulations and within the scope of authority as assigned/authorized by the General Director of Vietcombank.
- Carry out international payment operations (LC and collection with documents), discount, factoring, foreign currency trading and foreign banking services according to foreign exchange management regulations of the State Bank of Vietnam and Vietcombank.
- Carry out treasury management, storage, preservation and management of valuable papers and other assets for customers according to Vietcombank's regulations.
- Provide payment services according to regulations.
- Implement accounting, financial management and financial reporting regimes according to Vietcombank's regulations and current regulations.
- Report statistics on data and operating status; conduct internal inspection and control work according to regulations of the State Bank of Vietnam and Vietcombank.
- Carry out personnel work and manage staff organization according to the regulations in Vietcombank's current staff and employee management regulations.
- Perform other tasks in the course of business operations as assigned by the Board of Directors and General Director of Vietcombank. After more than 16 years of establishment, construction and development, Vietcombank Bac Ninh has gradually affirmed its position and reputation with customers and contributed to promoting socio-economic development in the province. By the end of 2020, Vietcombank Bac Ninh had more than 3,400 corporate customers and nearly 500,000 individual customers opening transaction accounts.
By the end of 2020, Vietcombank Bac Ninh had mobilized capital reaching
11,183 billion VND (up 12.28% compared to 2019), outstanding credit reached 8,437 billion VND (up 17.2% compared to 2019). In addition, Vietcombank Bac Ninh has focused on developing card services, salary payments, and electronic banking services. As a result, nearly 500,000 ATM cards have been issued, 60 ATMs have been installed, and nearly 400 units/organizations have been linked to pay salaries and accept payments via ATMs.
2.1.2 Organizational structure of Joint Stock Commercial Bank for Foreign Trade of Vietnam - Bac Ninh Branch
The current organizational structure of VietcomBank Bac Ninh includes a Director, 02 Deputy Directors, 07 functional departments and 08 transaction offices, of which, Bac Ninh City Transaction Office and Tien Du Transaction Office were newly established in 2020. The organizational chart is as follows:
BOARD OF DIRECTORS
(1 Director, 2 Deputy Directors)
Corporate Customer Service
Retail Customer Service
c
P. Debt Management
Accounting Department
P. Human Resources Administration
P. Treasury
Front End Room Block
Block of Back End rooms
Customer Service Department
Tu Son Transaction Office
Que Vo Transaction Office
Yen Phong Transaction Office
Thuan Thanh Transaction Office
VSIP Transaction Office
Samsung Transaction Office
Tien Du Transaction Office
Diagram 2.1: Organizational structure of Vietcombank Bac Ninh
Bac Ninh City Transaction Office
With the organizational structure of Vietcombank Bac Ninh including 8 transaction offices in districts and industrial zones in Bac Ninh province. Credit officers of Transaction Offices (except for the Sam Sung Transaction Office located in the Sam Sung factory)
- Yen Phong Industrial Park mainly provides non-credit services for employees of the Samsung factory) and the Retail Customer Department can also provide customer loans. This is convenient for customer management as well as expanding customer loans.
2.1.3 Business performance of Joint Stock Commercial Bank for Foreign Trade of Vietnam, Bac Ninh branch
Fundraising activities
- In the period of 2017-2020, the domestic economy in general and Bac Ninh province in particular had a strong recovery and growth, creating many great opportunities for Vietcombank Bac Ninh to develop business activities, including capital mobilization activities. From the end of 2019 - 2020, the economy was affected by the Covid 19 epidemic, but Vietcombank Bac Ninh's capital mobilization activities still reached an impressive figure of 11,183 billion VND.
50
Table 2.1. Capital mobilization activities of Vietcombank Bac Ninh over the years
Unit: (billion VND)
Target
2017 | 2018 | 2019 | 2020 | 2018/2017 | 2019/2018 | 2020/2019 | ||||||||
ST | TT(%) | ST | TT(%) | ST | TT(%) | ST | TT(%) | ST | TT(%) | ST | TT(%) | ST | TT(%) | |
Total capital mobilized dynamic | 7,679 | 100 | 8,683 | 100 | 9,960 | 100 | 11,183 | 100 | 1,004 | 13.1 | 1,277 | 14.7 | 1,223 | 12.3 |
By subject | ||||||||||||||
Deposits of credit institutions other | 15 | 0.2 | 2 | 0.02 | 3 | 0.03 | 3 | 0.03 | -13 | -86.7 | 1 | 50 | 0 | 0 |
Deposits of TCKT and population | 7,664 | 99.8 | 8,681 | 99.98 | 9,957 | 99.97 | 11,180 | 99.97 | 1,017 | 13.3 | 1,276 | 14.7 | 123 | 12.4 |
By deadline | ||||||||||||||
+KKH deposit | 4,269 | 55.6 | 4,659 | 53.7 | 4,957 | 49.8 | 5,785 | 51.5 | 390 | 9.1 | 298 | 6.4 | 828 | 16.7 |
+ CKH deposit <12 month | 2,580 | 33.6 | 2,972 | 34.2 | 3,697 | 39.8 | 3.401 | 30.4 | 392 | 15.2 | 725 | 24.4 | -296 | -8 |
+CKH deposit ≥ 12 month | 815 | 10.8 | 1,050 | 12.1 | 1,303 | 10.4 | 1,994 | 18.1 | 235 | 28.8 | 253 | 24.1 | 691 | 53 |
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(Source: Vietcombank Bac Ninh Business Performance Report 2017-2020)
Through the table above, it can be seen that the capital mobilized by Vietcombank Bac Ninh has increased over the years. In 2018, the total mobilized capital reached VND 8,683 billion, an increase of VND 1,004 billion, equivalent to an increase of 13.1% compared to the total mobilized capital in 2017. Among the mobilized capital sources, the unit's non-term deposits always account for a large proportion (over 50% of the total mobilized capital. This is a cheap capital source (because the non-term deposit interest rate is much lower than the term deposit interest rate) helping Vietcombank Bac Ninh have the premise to lower the lending interest rate, increasing the competitiveness of Vietcombank Bac Ninh in the province. Vietcombank Bac Ninh has designed a variety of mobilization channels and products with specific characteristics suitable for many customer groups such as: Flexible savings deposits suitable for customers with sudden capital needs, online savings help customers deposit money anytime, anywhere without having to go to the bank; flexible in internal capital transfer policies to encourage and motivate mobilization growth; simultaneously deploying projects, The program aims to increase current account balances, diversify funding sources and reduce funding costs.
Chart 2.1. Total capital mobilized over time of Vietcombank Bac Ninh
(2017-2020)
12000 11183
9960
10000 8683
8000 7679
6000
4000
2000
0
2017 2018 2019 2020
In 2020, the total mobilized capital was 11,183 billion VND, an increase of 12.3%, equivalent to 1,223 billion VND compared to 2019. Although this increase is not as high as in 2019, it is also a remarkable result in the current volatile and fiercely competitive currency market, especially when the economy is greatly affected by the Covid 19 pandemic.
Chart 2.2: Capital mobilization ratio of Vietcombank Bac Ninh over time
1303
100%
90%
80%
4957
70%
4269
4659
5785
60%
50%
40%
30%
3697
3401
2580
2972
20%
10%
815
1050
1994
0%
2017
2018
2019
2020
Term >12th Term <12th KKH
Current status of loan sales and debt collection sales of Vietcombank Bac Ninh
Implementing the policy of the Government and the Head Office on preventing economic recession, promoting production and business development through the interest rate support program for businesses borrowing working capital, Vietcombank Bac Ninh has actively provided loans to finance production, business and consumption activities of individuals and businesses. In 2018, the total loan turnover reached 7,455 billion VND, an increase of 26.1% compared to 2017, at the end of 2019 this figure was 7,194 billion VND, a decrease of -3.45% compared to 2018. However, in 2020, Vietcombank Bac Ninh's outstanding debt was 8,437 billion VND, an increase of 17.21% corresponding to 1,239 billion VND. The reason for the sharp increase in lending sales is that 2020 was a year of great instability due to the huge impact of the Covid 19 pandemic. The appearance of the Corona virus has caused huge damage to the Vietnamese market economy in general and Bac Ninh province in particular. Businesses suffered losses, even on the brink of bankruptcy. Therefore, borrowing from banks is a measure considered as a "lifebuoy" for businesses in difficulty. On the other hand, due to the impact of the epidemic, the state has also decided to require commercial banks to support lending to businesses in difficulty.
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Table 2.2: Outstanding loan situation at Vietcombank Bac Ninh over the years.
Unit: Billion VND
Target
2017 | 2018 | 2019 | 2020 | 2018/2017 | 2019/2018 | 2020/2019 | ||||||||
ST | TT (%) | ST | TT (%) | ST | TT (%) | ST | TT (%) | ST | Ratio (%) | ST | Ratio (%) | ST | Ratio (%) | |
Total outstanding debt | 5,893 | 100 | 7,455 | 100 | 7,198 | 100 | 8,437 | 100 | 1,562 | 26.51 | -257 | -3.45 | 1,239 | 17.2 |
By term | ||||||||||||||
Short-term debt | 4,881 | 58.2 | 5,733 | 76.9 | 5,760 | 80 | 6,344 | 75.2 | 852 | 17.46 | 27 | 0.47 | 584 | 10.1 |
Medium and long term debt | 1,012 | 41.8 | 1,722 | 23.1 | 1,438 | 20 | 2,093 | 24.8 | 710 | 70.16 | -284 | -16.49 | 655 | 45.5 |
By collateral | ||||||||||||||
Outstanding debt with collateral | 5.558 | 94.3 | 7,306 | 98 | 7,032 | 97.7 | 7,354 | 87 | 1,748 | 31.45 | -274 | -3.75 | 322 | 4.6 |
Outstanding debt without collateral | 335 | 5.7 | 149 | 2 | 166 | 2.3 | 1,083 | 13 | -186 | -55.52 | 17 | 11.41 | 917 | 552.4 |
According to the target audience | ||||||||||||||
Organization | 4,859 | 82.5 | 6.203 | 83.2 | 5,559 | 77.2 | 6.207 | 73.6 | 1,344 | 27.66 | -644 | -10.38 | 648 | 11.7 |
Individual | 1,034 | 17.5 | 1,252 | 16.8 | 1,639 | 22.8 | 2,230 | 26.4 | 218 | 21.08 | 387 | 30.91 | 591 | 36.1 |
(Source: Vietcombank Bac Ninh Business Performance Report 2017-2020)