In 2007, pigs increased from 1,190,000 to 1,239,000, and cows increased from
315,000 to 445,000 in 2007, poultry increased from 10,524,000 in 2003 to 10,730,000 in 2007. That shows that from raising buffaloes and cows for plowing in agricultural production, there has now been a shift towards raising meat for products and goods that are increasing rapidly according to the requirements of sub-regions in the province, the requirements of the whole province and the whole country.
In 2007, the program of converting some ineffective food production areas to concentrated grass cultivation for livestock development was also focused. By the end of 2006, the whole province had 3,905 hectares of grass, in 2007, 750 hectares were newly planted, bringing the total concentrated grass area of the whole province to 4,650 hectares.
Table 2.14. Quantity and output of livestock products in Nghe An province
Target
Unit | 2003 | 2004 | 2005 | 2006 | 2007 | |
I- Quantity 1. Livestock In there: - Buffalo - Cow 2. Poultry 3. Other livestock | child | 1,793 | 1,854 | 1,921 | 1,850 | 1,919 |
child | 288 | 289 | 294 | 288 | 292 | |
child | 315 | 350 | 388 | 426 | 445 | |
child | 10,524 | 10,274 | 10,950 | 10,156 | 10,730 | |
child | 62.5 | 80.8 | 101.3 | 124.1 | 132 | |
II. Meat output from slaughtered livestock and poultry - In there Pork | Ton | 93,623 | 105,754 | 122,074 | 124,032 | 132,008 |
Ton | 67,930 | 80,321 | 93,810 | 94,982 | 98,087 |
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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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Viewpoint on Developing Household Economy of Dong Hy District Farmers in the Direction of Commodity Production -
Current status of production cost accounting and pricing of food and beverage products and services at DMZ Tourism Joint Stock Company - 11 -
Tourism Economy Contributes to Promoting Local Products and Production -
Production Capacity of Some Garment Accessories Products in Vietnam

Source: Nghe An Provincial Statistics Office
In 2007, continued to direct the construction of concentrated livestock farms in the industrial direction. Up to now, the whole province has 297 livestock farms, including 81 pig farms; 27 poultry farms; 162 cattle farms and 27 buffalo farms. In addition to traditional livestock products such as buffalo, cows, pigs, chickens, etc., it is noteworthy that the goat and deer herds in the province are growing strongly. Typically, in mountainous districts such as Nghia Dan, Quy Hop, Tuong Duong, etc., there are favorable conditions for the development of buffalo, cow, goat and deer farming. In addition, the formation of grasslands for livestock farming creates conditions for rapidly increasing the production value of the industry and improving economic efficiency in livestock farming in the province.
The statistics in the table show that the structure is quite suitable between livestock types. In livestock farming, the province still focuses on developing all types of livestock that are popular commodities and have high economic value. Besides strongly developing livestock and poultry for meat and processing, the province also focuses on developing specialty livestock to meet the increasing demand of consumers, domestic and foreign markets such as deer, goats, etc.
The rapid development of the quantity and quality of livestock in livestock farming has contributed to increasing economic efficiency in livestock farming, increasing income for farmers, and increasing state budget revenue. The rapid development of the quantity and quality of livestock also contributes to forming a reasonable economic structure in livestock farming in the province. The development of a variety of livestock suitable to the characteristics of each locality creates a relative volume of livestock products, specifically shown through the commodity rate that the author collected from the information.
Investigation in some typical areas in the province
* Rate of agricultural products in livestock farming of Nghe An province
Through the data in Table 2.15, we see that in livestock farming, developing specialty livestock such as deer, goats... brings high commodity rates.
than livestock and poultry. Every year, the number of livestock and some other animals brings a large amount of goods, the rate of goods from these animals accounts for an average of 80% to over 90% annually. Thus, the province should have more measures and investment programs to quickly develop the quantity and quality of the herd to promote the strengths of each local area and strongly develop commodity production in the agricultural sector in general and the livestock sector in particular.
Table 2.15. Rate of agricultural products in livestock farming in the province
Target
Unit | 2003 | 2004 | 2005 | 2006 | 2007 | |
1. Livestock - Quantity - HH rate | Ngh.con % | 1,793 77.63 | 1,854 76.84 | 1,921 82.92 | 1,850 85.32 | 1,919 87.84 |
2. Poultry | ||||||
- Quantity | Ngh.con | 10,524 | 10,274 | 10,950 | 10,156 | 10,730 |
-HH rate | % | 52.08 | 48.96 | 56.06 | 49.32 | 50.02 |
3. Other livestock | ||||||
- Quantity | Ngh.con | 62.5 | 80.8 | 101.3 | 124.1 | 132 |
-HH rate | % | 87.92 | 88.04 | 89.73 | 92.08 | 94.16 |
Source: Survey data processing
However, in recent years, livestock farming in the province has had many limitations due to continuous epidemics. Therefore, in order to further develop livestock farming, the province needs to have better measures to prevent diseases and ensure safety in processing foods from livestock products.
* Services for agricultural production
Services in agricultural production of Nghe An province in recent years have achieved a relatively high growth rate (from 1.28% in 2003 to 1.36% in 2006).
and 1.42% in 2007). This shows that services in agricultural production have been focused on developing to serve agricultural production to achieve higher efficiency. Services serving agricultural production in Nghe An province include services providing input factors for agricultural production such as: seeds, fertilizers, pesticides, herbicides, etc., services serving livestock such as seeds, medicine to prevent and treat diseases for livestock and poultry, etc., irrigation services, services processing agricultural products, etc.
In 2007, the whole province supplied 100,000 tons of urea.
5,000 tons of SA fertilizer, 25,000 tons of potassium fertilizer, 1,000 tons of phosphate fertilizer, 150,000 tons of NPK fertilizer (of which industry units supply 100,000 tons), 110 tons of plant protection drugs, 2,000,000 doses of livestock vaccination, 2,100 tons of Chinese hybrid rice, 150 tons of hybrid corn (of which industry units supply 100 tons), 400 tons of peanut seeds, 500 tons of pure rice of all kinds, 350 multi-function small plows, 100 agricultural dryers, 100 rice harvesters, and 2,000 million VND of agricultural machinery spare parts.
In addition to supplying sufficient quantity and on time, reasonable prices must be the top priority. Suppliers of materials, fertilizers, plant varieties, livestock, pesticides, veterinary drugs, mechanical machines, etc. that do not ensure quality and cause losses to producers must be responsible for compensating for all damages caused by poor quality materials.
Thus, in terms of industry structure, the province's agricultural production in recent years has developed strongly, contributing a significant part to the province's GDP, contributing to accelerating the industrialization and modernization of agriculture and rural areas. Comprehensive and sustainable agricultural development in the direction of commodity production with increasingly large scale and increasingly high efficiency with the goal of export. Nghe An agriculture is gradually asserting its position in the domestic, regional and world markets, the agricultural economy has contributed an important part.
important role in the overall economic development of the province, contributing to increasing income, improving the lives of farmers, creating conditions for farmers to get rich, significantly changing the face of the province's countryside. The reason why Nghe An agriculture has achieved the above results is because in recent years the province has paid attention and invested in the right direction in developing the agricultural economy, in which the most notable are the programs and projects on restructuring crops and livestock that the province has been applying and implementing. However, the agricultural economy of the province in the process of development and restructuring also has certain advantages and disadvantages that the province needs to draw lessons for the economic development strategy in general and the agricultural economy in particular.
2.3.2.3. Structure of components in agricultural production of Nghe An province
Participating in agricultural production of Nghe An province are the following components: State-owned enterprises, collective economy, individual economy and private economy.
Table 2.16. Production value and production structure of economic sectors of the province
Nghe An 2007
Ingredient
Production value (million dong) | Structure (%) | |
Total | 8,483,675 | 100.00 |
State Economy | 356,165 | 4.20 |
Collective economy | 2,980,425 | 35.13 |
Individual economy | 5,142,862 | 60.60 |
Private economy | 6.223 | 0.07 |
- State-owned enterprises in agricultural production of the province .
In 2007, the production value of State-owned enterprises reached 356,165 million VND, accounting for nearly 4.20% of the total production value of the agricultural sector of all economic sectors. This shows that State-owned enterprises have made good progress.
role in agricultural production in recent years. The production value of state-owned enterprises has continuously increased in recent years. State-owned enterprises hold a very important position in developing agricultural production towards commodity production in Nghe An province. These enterprises are both the place to supply input factors and the place to consume agricultural products produced by farmers without processing, creating conditions to improve the quality of agricultural and forestry products, and enhance the competitiveness of agricultural products in the domestic and world markets.
- Collective economic component.
The collective economy in agricultural production of the province in recent years has also had significant developments, typically agricultural cooperatives, this economic sector has contributed significantly to the value of agricultural production in the province in recent years, this economic sector has increasingly promoted its capacity and brought high efficiency with the total value of agricultural production of the collective economic sector annually reaching over 2,500 million VND. Specifically: in 2006 it reached 2,780,046 million VND, in 2007 it reached
2,980,425 million VND (accounting for 35.13%). Currently, 8 new cooperatives have been established in the province, reaching 53.34% of the plan, bringing the total number of cooperatives in the province to 378. The number of cooperative members increased by 5,275 people, the number of employed workers increased by 5,970 people. Of which, 133 cooperatives have profits of over 20 million VND/year and 36 cooperatives have new capital contributions from members, granting business licenses to 231 agricultural cooperatives.
Thus, in general, the initial steps have created a change in people's awareness of the new type of cooperative, gradually improving the efficiency of production, business and services, contributing to promoting the development of household economy.
- Individual economic components.
In recent years, the individual economic sector has developed quite rapidly, mainly in the form of family farms.
Currently, in rural areas in the whole province, there are 1,252 farms, including: 646 crop farms; 119 livestock farms; 178 aquaculture farms and 309 general business farms. The number of farms granted certificates in the year is 188 farms.
Farm economy is essentially a household economy producing agricultural commodities (including forestry and aquaculture), with a relatively large scale compared to the average household economy in the locality corresponding to each specific production sector.
Every year, the farm economy has created a considerable amount of goods, meeting the demand for agricultural products domestically and internationally. The total production value of the farm economy in 2006 reached 4,373,182 million VND, in 2007 it reached 5,142,862 million VND (accounting for 60.6%). However, the farm economy in the province is generally small in scale, scattered, and the production and business efficiency is not high.
- Private economic sector.
The private economic sector's participation in agricultural production is insignificant. In 2007, the production value of this economic sector reached 6,223 million VND (accounting for 0.07%). This is because the private economic sector operating in agriculture was only formed in 2005 on a small scale and has not really promoted its role and capacity in agricultural production, so the achieved efficiency is still very modest.
In general, agricultural production in Nghe An province has had the diverse participation of economic sectors, in which the individual economic sector, focusing on farm economy, has developed quite strongly, promoting the potential advantages of some regions in the country. The participation and development of
Economic components in agriculture have contributed greatly to the higher growth rate of agricultural production. However, in addition to the achieved results, agricultural production in Nghe An province in recent years still has many limitations and shortcomings, requiring more practical and effective solutions to accelerate the process of industrialization and modernization of agriculture and rural areas and develop sustainable and stable commodity production agriculture.
2.3.3 Achievements and shortcomings in the economic restructuring of the agricultural sector of Nghe An province
* Results achieved
- Through the policy of converting crop structure and building high-income fields, the awareness of officials and farmers in Nghe An province about arranging crop structure with high economic efficiency has been strongly and deeply changed. Gradually shifting from producing what we have to producing what the market needs and paying more attention to product quality and design.
In 2007, agricultural production in the province faced many difficulties, but the conversion of crop structure and the construction of high-income fields continued to be promoted in localities, the effectiveness of the conversion was confirmed on both sides: Increasing total social product and increasing income for farmers. There has been a strong change in the development of crops with high economic efficiency by using specialized vegetable formulas or using rotation formulas with at least one vegetable crop; especially the watermelon area has reached over 1000 hectares. Many localities (communes, cooperatives) have been proactive in finding markets and consuming products, creating stable output for products, so production efficiency is very high.
- The form of conversion is quite diverse, along with the guidance of the Department of Agriculture and Rural Development, farmers have created many technologies.

![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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