Orientation of International Payment Activities at Branches

For example, according to the provisions of Article 46 of the Government's Decree No. 160/2006/ND-CP dated December 28, 2006 and Point 18.2 of Circular 04/2001/TT-NHNN dated May 18, 2001 of the Governor of the State Bank on Guidance on foreign exchange management for foreign-invested enterprises and foreign parties participating in business cooperation under Decree No. 24/2000/ND-CP dated July 31, 2000, when transferring foreign currency abroad to pay for services, foreign-invested enterprises and foreign business cooperation parties must present to the bank the service contract with the foreign party and documents proving that the service contract has been performed (Minutes of acceptance or receipts for payment of contractor tax and Visa passport of foreign experts performing services for these enterprises). But in reality, for some foreign-invested enterprises, before or after the service is performed, the partner only issues an invoice (INVOICE) to demand payment, without any other documents showing that the service has been performed, and the enterprise only presents such documents for payment. The bank refuses to make the transfer and the enterprise has closed its account and switched to transacting at a foreign bank branch. These are large enterprises, the suspension of transactions of these enterprises has significantly affected Vietcombank's import-export payment turnover.

The lack of uniformity in understanding and implementation of legal regulations among ministries and sectors causes difficulties for money transfer activities of banks as well as businesses.

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For example, in Circular No. 186/2010/TT-BTC dated November 18, 2010 guiding the implementation of profit transfer abroad by foreign organizations and individuals with profits from direct investment in Vietnam according to the provisions of the Investment Law, Article 5 stipulates that "Foreign investors directly or authorize enterprises in which foreign investors participate in investment to make a notification of profit transfer abroad according to the form issued with this Circular and send it to the tax authority directly managing the enterprise in which foreign investors participate in investment, at least 07 working days before transferring profits abroad." However, when the enterprise submits the notification in accordance with the regulations and VCB implements

Currently, the State Bank does not allow money transfers abroad because there is no tax settlement document.

- Human problem

The staff working in import-export payment still lack knowledge about the industry and experience in customer service. Vietcombank system has a wide network across the country, in each locality, province there are many large and small companies of all kinds with many different industries. Each industry has different requirements for each type of import-export document, requiring import-export payment staff to have a fairly thorough understanding of that industry to be able to provide good consulting services for businesses. However, most import-export payment staff at Vietcombank still lack knowledge about production and business industries and the characteristics of each foreign bank. Therefore, the ability to contact, advise and take care of customers is limited.

Poor customer service attitude. Because Vietcombank has the advantage of operating for many years, the number of customers coming to transact is quite large compared to other commercial banks, and there is a lot of work, so most of the import-export payment staff still have the attitude that customers need to go to the bank or for other objective reasons, the customer service attitude is not good, making customers dissatisfied.

Lack of close and smooth coordination between departments, not yet creating a closed service including import-export payment, credit, foreign currency trading for customers. When product marketing is not organized in a systematic way, in most branches, customer service officers are the main marketing force, the responsibility of customer marketing of the import-export payment department is not only ineffective but also not convincing enough for customers, even delaying the processing of on-site transactions.

In addition, because the staff have not been trained in the system, they have difficulty exploiting the system's utilities, thus not fully exploiting the advantages of information technology, and not creating convenient products to meet market needs.

Besides the limitations of the operational staff, the management staff of the system also has many shortcomings, lacking expertise in general management and human resource management in particular, leading to the lack of the best human resource measures to maximize the capabilities of subordinates.

- Specific service prices are unreasonable service charges.

In general, the fee is not flexible, not reasonable, and does not encourage customers to increase transactions: the current fee for transferring money abroad is applied equally to both commercial and non-commercial payments; the fee for notification and payment of export L/C is applied equally to all customers, there is no distinction between long-term customers and new customers, between customers with large payment values, frequent transactions and customers with very few transactions and low values.

Service fees are one of the top concerns of customers. However, most branches in the Vietcombank system do not have information on specific service prices of foreign correspondent banks to advise and support customers when choosing a transaction; they do not really care about the costs of customers for a transaction but only stop at the purpose of collecting money for goods. Therefore, when customers complain about the costs deducted from the money by foreign banks, bank staff cannot explain accurately and convincingly.

There is no system to monitor and update information related to competitors in the area to be able to determine which banks are the main competitors as well as their advantages in attracting customers, and from there, to be able to find appropriate solutions to retain old customers as well as attract new customers.

- Not investing and having a suitable strategy to promote and market products and develop Vietcombank brand

It can be said that Vietcombank's product and brand marketing started late. The proof is that in 2011, Vietcombank started the project to standardize the brand image of the entire Vietcombank system nationwide by designing uniforms for employees and transaction counters at Vietcombank transaction points with the support of Irish experts. To date, that project has not been completed.

Every year, Vietcombank has not yet established a specific budget for Marketing. Most branches balance their own budget, utilizing fund sources to serve Marketing activities if the branch has a need.

The headquarters has not yet built and allocated costs for the branches to implement according to

General marketing strategy of the system in each specific period.

2.4.3. Causes

- Objective reasons

+ Economic and political factors: The average income per capita in our country in general and in Thua Thien Hue province in particular is still low, the province's production situation has not been promoted yet. Industrial zones and extraction zones are not large and have not been expanded.

+ The legal framework for banking activities in general and international payment activities in particular is still lacking and inadequate. Regulations are scattered in different legal documents or sub-laws, causing difficulties in application to minimize or resolve disputes.

+ Customers: On the customer side, there are difficulties such as the fact that besides long-standing businesses with experience in the field of international payment, there are many units that do not have experience. Therefore, it leads to errors that cause damage not only to the business itself but also to the reputation of the bank.

+ Competitors: Because it has been doing this business for a long time, it can be said that the Branch is very strong in terms of international payment compared to its competitors. However, the number of competitors and the level of competition between banks in the area are increasingly fierce. This is the main reason why the Branch's market share has decreased.

- Subjective causes

+ Branches have not actively sought out customers and foreign banks, leading to limitations in finding transaction needs, partners, and correspondent banks. This is also the reason for the decline in market share because customers are invited by other banks.

+ Not investing and having a suitable strategy for promoting and marketing products and developing Vietcombank's brand. It can be said that Vietcombank's marketing and promoting products and brands started late. The proof is that in 2011, Vietcombank started the project to standardize the brand image of the entire Vietcombank system nationwide by designing uniforms for employees and transaction counters at Vietcombank's transaction points with the support of experts.

Ireland. Up to now, that project has not been completed. Vietcombank has not yet built a certain budget for Marketing activities every year. Most of the branches balance their own budget, taking advantage of fund sources to serve Marketing activities if the branch has a need. The headquarters has not yet built and allocated costs for branches to implement according to the general marketing strategy of the system in each specific period.

+ Poor customer service attitude. Because Vietcombank has the advantage of operating for many years, the number of customers coming to transact is quite large compared to other commercial banks, and there is a lot of work, so most of the import-export payment staff still have the attitude that customers need to go to the bank or for other objective reasons, the customer service attitude is not good, making customers dissatisfied.

+ Specific service prices are unreasonable service fees. Most branches in the Vietcombank system do not have information on specific service prices of foreign correspondent banks to advise and support customers when choosing a transaction; they do not really care about the customer's costs for a transaction but only stop at the purpose of collecting money for goods. Therefore, when customers complain about the costs deducted from the goods by foreign banks, bank staff cannot explain accurately and convincingly.

CONCLUSION OF CHAPTER II

In this chapter, the study has analyzed in depth the current status of international payment services of Vietcombank Hue through secondary data on many aspects. Along with processing primary data, the study has also drawn more accurate conclusions about the current quality of international payment services at Vietcombank Hue. Inheriting the theoretical basis and the model for measuring the quality of international payment services, the study has analyzed the current status of international payment service quality at Vietcombank Hue according to customer evaluation. Using the SERVQUAL model theory to analyze and evaluate customers' opinions after using international payment services of Vietcombank Hue, the study has also identified the causes leading to the existing limitations of the current quality of international payment services of Vietcombank Hue, as a basis for proposing solutions to improve service quality in the next chapter.

CHAPTER III: SOLUTIONS TO IMPROVE THE QUALITY OF INTERNATIONAL PAYMENT SERVICES AT JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM - HUE BRANCH

3.1. Orientation of international payment activities at the Branch

International payment is one of the main activities that the Foreign Trade Bank, Hue Branch, is interested in investing and developing. After more than 20 years of operation, the branch has established the orientation and tasks for international payment activities in the coming time, which is considered an inseparable part of the general development orientation of the Bank, in line with the goals set by the Bank in its development strategy. Some main orientations for international payment activities at the Branch can be summarized as follows:

Firstly, maintain and promote relationships with traditional customers (those who have both financial potential and prestige and long-term relationships with the bank), for example: TT-Hue Textile Joint Stock Company, Frit Joint Stock Company, Phu Nam Fiber Joint Stock Company, MedipharcoTenamyd Central Pharmaceutical Joint Stock Company, etc.

Second, in addition to consolidating and enhancing comprehensive cooperation, the Branch always plans to expand and develop relationships with major banks around the world, access and deploy increasingly advanced and modern forms and means of international payment, contributing to improving the quality of the Branch's international payment, laying the foundation for sustainable development.

Third, in the coming time, it is necessary to develop and encourage more enterprises to participate in export activities, focusing on small and medium enterprises to act as agents, satellites or processors for foreign enterprises, large export enterprises of the province as well as other import-export companies. At the same time, support training and consulting on foreign trade for officers and employees of Vietcombank Hue Branch and leaders of companies having relationships in transactions with the branch.

Approach and build e-commerce business development strategy

in international trade activities. Investing in construction and renovation of technical facilities; establishing

Payment guarantee fund (credit guarantee fund) for customers who are small and medium enterprises; promote the work of approaching, consulting and finding more diverse customers in the import-export industry.

Deploy and implement preferential policies well, support customers in granting credit to ensure business operations as well as expand production scale.

Always build and develop brands, enhance competitiveness; strengthen relationships with Ministries and Branches to promptly grasp mechanisms, regulations, operating programs, preferential policies, capital sources, development funds... for export activities such as: Sources from the Provincial Export Support Fund, the Government's Development Support Fund and other credit sources, National Key Trade Promotion Program...

Coordinate synchronously with functional sectors: Trade, Industry, Planning - Investment, Customs, Statistics, Tax, Economic Police and other related sectors to effectively manage import and export activities.

3.2. Solutions to improve the quality of international payment services at Vietcombank- Hue

Improving the quality of international payment services plays a very important role in the business activities of the entire Vietcombank system in general and each branch in particular. Through the process of researching the topic, it is found that besides the achievements, there are still too many limitations in both micro and macro aspects. With limited knowledge and working experience, based on self-study as well as collecting, systematizing and developing comments through discussions of the interviewees and especially based on the SERVQUAL model of the research, the author would like to present some solutions to improve the quality of international payment services at Vietcombank Hue in the most effective and resource-saving way as follows:

3.2.1. General solution

3.2.1.1. Perfecting customer care policy

Customers are the ones who bring profit and success to the operations of each bank. To develop and attract more customers is difficult, but to maintain and retain new customers is even more difficult. Realizing this, banks today have invested and researched very systematically to build customer care policies, improve customer service efficiency and so that each customer can become a loyal customer. To do this well, the entire Vietcombank branch in general and Vietcombank Hue Branch in particular need to focus on implementing many synchronous solutions to take better care of customers, bringing satisfaction to customers. In particular, Vietcombank Hue Branch needs to implement some of the following specific solutions:

- Develop customer policies for each target customer group. It is necessary to study the needs of each customer and customer group in order to offer diverse and closed product packages and meet the diverse needs of customers for banking services. Designing services suitable to the needs of each customer group will help the Branch not only expand the market size but also increase the loyalty and commitment of customers to the bank.

- The bank classifies customers, identifies important customers and builds a loyalty program. Customer care programs are limitless and the possibilities for creativity are enormous, requiring branches to build appropriate programs based on their capabilities, resources and characteristics of customer groups.

- Strengthen customer care activities. Good customer care is serving customers in the way that customers expect and more than what customers expect when using the bank's services, especially import-export payment services. Good customer care is the best way to create customer engagement and loyalty to the bank, thereby maintaining customers.

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