F4: Evaluation of investment capital for tourism development in Kien Giang.
Q1 | Own capital is mainly used in investment in tourism development? | 0 | 0 | 14.6 | 85.4 | 0 |
Q2 | The scale of equity capital used in investment in tourism development is very small? | 0 | 0 | 0 | 0 | 100 |
Q3 | The demand for bank loans for investment in tourism development is very high? | 0 | 0 | 0 | 100 | 0 |
Q4 | Investing in developing eco-tourism brings large and stable income to eco-tourism business people? | 0 | 0 | 5.8 | 94.2 | 0 |
Q5 | Collateral for loans always has high value? | 0 | 0 | 10.36 | 82.64 | 7 |
Comments: The above results show that ecotourism brings great benefits to business people and therefore they desire to have better financial support to continue exploiting. Because the reality shows that, currently, ecotourism workers in Kien Giang still mainly use their own capital on a small scale. Specifically: 85.4% agree , 14.6% are neutral with the statement "Equity capital is mainly used in investment in ecotourism development"; 100% completely agree with the statement "The scale of equity capital used in investment in ecotourism development is very small"; 100% agree with the statement "The demand for bank loans for investment in ecotourism development is very high"; 94.2% agree with the statement "Investment in ecotourism development brings large and stable income to ecotourism business people"; 7% completely agree ; 82.64% agreed and 10.36% were neutral with the statement "Collateral for loans is always of high value". | ||||||
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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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4.4. RESEARCH RESULTS FOR INDIVIDUALS AND ORGANIZATIONS DOING ECO-TOURISM BUSINESS
Through a survey of individuals doing tourism business, it shows that they are currently facing difficulties in capital and are in dire need of capital to invest in development.
Table 4.8: Survey results for individuals and organizations doing ecotourism business
STT
COMMENTS | 1 | 2 | 3 | 4 | 5 | |
F1: Opinions of individuals/organizations doing tourism business on the advantages of developing tourism in Kien Giang. | ||||||
Q1 | The Party's policies and the State's laws always create favorable conditions for the development of eco-tourism? | 0 | 3.58 | 60.15 | 35.27 | 0 |
Q2 | Natural, economic, political and social conditions are favorable for the development of eco-tourism? | 0 | 0 | 7.8 | 92.2 | 0 |
Q3 | The attraction of Kien Giang for tourism is very large? | 0 | 16.12 | 38.54 | 42.68 | 2.66 |
Q4 | Is the number of tourists always stable? | 0 | 0 | 4.5 | 95.5 | 0 |
Q5 | Is the consumption of DLST products not affected by weather, climate and season? | 0 | 87.46 | 6.52 | 6.02 | 0 |
Comments: The above results show that ecotourism developers in Kien Giang share the same views as state management agencies. They highly appreciate the policies supporting ecotourism development as well as other favorable conditions in terms of economy, politics, society, the attraction of tourist destinations and the stable number of tourists for the development of ecotourism in Kien Giang. Specifically: 35.27% agree , 60.15% are neutral with the statement "The Party's policies and guidelines; the State's laws always create favorable conditions for the development of ecotourism"; 92.2% agree , 7.8% are neutral with the statement "Natural, economic, political and social conditions are favorable for the development of ecotourism"; 2.66% completely agree ; 42.68% agree , 38.54% are neutral with the statement "The attraction of Kien Giang for tourism is very large"; 95.5% agree , 4.5% are neutral with the statement "The number of tourists is always stable"; 6.02% agree and 87.46% disagree with the statement | ||||||
“The consumption of ecotourism products is not affected by weather, climate and seasonality”. However, one difficulty that ecotourism professionals also point out is the seasonality of ecotourism. The exploitation and income from ecotourism business activities are also greatly affected by weather factors. Accordingly, banks also need to pay attention to have better support and debt collection policies.
F2: DLST model suitable for Kien Giang. | ||||||
Q1 | Developing marine ecotourism model? | 0 | 0 | 0 | 100 | 0 |
Q2 | Developing eco-tourism models associated with historical relics? | 0 | 0 | 25.6 | 74.4 | 0 |
Q3 | Developing a natural forest tourism model? | 0 | 70.3 | 29.7 | 0 | 0 |
Q4 | Developing ecotourism model in garden? | 100 | 0 | 0 | 0 | 0 |
Q5 | Developing a tourism model associated with medical treatment? | 0 | 100 | 0 | 0 | 0 |
Q6 | Developing ecotourism model to visit ethnic villages? | 100 | 0 | 0 | 0 | 0 |
Comments: The above results show that the investment trend in developing marine ecotourism models is of the greatest interest and investment to tourism developers. Specifically: 100% agree with "Developing marine ecotourism models"; 74.4% agree with "Developing ecotourism models associated with historical sites"; 25.6% are neutral with the opinion "Developing natural forest ecotourism models". Thus, it can be seen that marine ecotourism is the model that is prioritized for investment, followed by the ecotourism model associated with historical sites and the natural forest ecotourism model. Other models were not selected partly because they are not suitable for the general development plan of the region, partly because the economic benefits are not commensurate with the investment capital. | ||||||
F3: Difficulties in developing eco-tourism in Kien Giang. | ||||||
Q1 | Difficulty in investment capital? | 0 | 0 | 5.17 | 11.25 | 83.58 |
Q2
Human resource difficulties? | 0 | 100 | 0 | 0 | 0 | |
Q3 | Difficulty in social infrastructure? | 0 | 21.36 | 48.63 | 30.01 | 0 |
Q4 | Difficulty with service costs? | 0 | 0 | 23.42 | 62.91 | 13.67 |
Q5 | State management has not kept up with the speed of tourism development? | 0 | 28.14 | 67.32 | 4.54 | 0 |
Q6 | Can tourism development lead to environmental pollution? | 0 | 0 | 38.42 | 21.74 | 39.84 |
Comments: The above results show that ecotourism businesses face many difficulties, first of all, difficulties in capital. Specifically: 83.58% completely agree , 11.25% agree with the statement "Difficulty in investment capital"; 100% disagree with the statement "Difficulty in human resources"; 30.01% agree , 48.63% are neutral and 21.36% disagree with the statement "Difficulty in social infrastructure"; 13.67% completely agree , 62.91% agree and 23.42% are neutral with the statement "Difficulty in service costs". Next, infrastructure issues as well as costs and service prices are also concerns of ecotourism businesses in Kien Giang. In addition, ecotourism developers are also concerned about other limitations that will arise when developing ecotourism in Kien Giang. Specifically: 28.14% disagree , 67.32% are neutral, 4.54% agree with the statement "State management has not kept up with the speed of ecotourism development"; 39.84% strongly agree , 21.74% agree with the statement "Ecotourism development can lead to environmental pollution". Thus, in addition to concerns about investment capital, human resources... ecotourism developers also believe that it is necessary to develop infrastructure, especially transportation and electricity and water, and state management of tourism needs to be focused on synchronous development. In addition, the problem of shrinking water and land areas leading to flooding when developing transportation infrastructure leading to environmental pollution also makes ecotourism developers worried. | ||||||
Chapter 5: CONCLUSION AND SUGGESTED SOLUTIONS
5.1. GOAL OF ECOTOURISM DEVELOPMENT IN KIEN GIANG BY 2020
5.1.1. Basis for proposing goals
Based on the socio-economic development plan of Kien Giang province for the period 2016 - 2020 and vision to 2030. Forecast the market situation of international tourists to Vietnam and the demand for domestic tourists when our country's economy is stable, developing, and the material and spiritual life of the people is improved.
Based on the position of Kien Giang province tourism in the master plan for Vietnam tourism development to 2020, which identifies Kien Giang province as being in the key tourist area of the South.
Based on the potential of tourism and human resources, economic geography, development orientation of major tourism centers in the region such as Ho Chi Minh City, Can Tho City, neighboring areas and tourism development trends of countries in the ASEAN region.
Based on the trends and needs of domestic and international tourists for the potential of eco-tourism in Kien Giang province, tourism investment projects in the past have been licensed and projects have agreed on investment policies, projects are calling for investment in tourism sectors in Kien Giang province.
Based on the socio - economic development strategy for the period 2016 - 2020, in which tourism and services are identified as important economic sectors in the process of economic restructuring.
Based on the current growth rate of international and domestic tourists to Kien Giang province in recent times, the current status and trend of urban development, infrastructure, and tourism facilities.
Based on the above bases, the forecast of tourism development in Kien Giang province is calculated according to the following two options:
+ Option I (average option):
This option is calculated based on the current growth rate of the tourism industry based on the socio - economic development planning orientation of the province and the tourism development planning of the whole country. This is the main option to provide forecast data for the development of eco-tourism in Kien Giang province in the coming time. However, this option requires relatively synchronous investment in all fields to create a basis for implementing the high-level option [18].
+ Option II (high option):
This option is calculated with higher development targets than the current one. This option is possible to achieve in the conditions of favorable international relations, stable growth of the world economy, the ability to ensure synchronous investment in infrastructure, specialized technical facilities. Especially investment in highly attractive entertainment areas, resort areas, sea eco-tourism, etc. in Kien Giang province.
Studying two options in the overall socio - economic development of Kien Giang province in the period of 2016 - 2020 to 2025, option I will be achieved smoothly. However, the growth rate of tourism in Kien Giang province will be slow and face many difficulties in economic integration. Option II meets the wishes of the locality, bringing the development speed of tourism in general and eco-tourism in particular one step faster as a driving force to promote the socio-economic development of the province.
Option II will be the next option and is feasible in the period from now to 2020 and vision to 2030. Option II is very suitable to meet both the general development plan of the tourism industry and the economic capacity of the province and tourism forecasts in the coming years. From this option, it is the basis for directing the development directions of tourism in general and eco-tourism in particular in Kien Giang province in the economic restructuring, which is creative, in accordance with natural laws and reality in Kien Giang [18].
5.1.2. Objectives
+ Market target:
Market identification is an important issue in business. In the short and long term, both international and domestic tourism must be taken seriously. Currently, facilities and equipment have been improved a lot. However, tourism types, especially eco-tourism, have not kept up. Therefore, in the short term, domestic tourism still plays an important role. In addition, it is necessary to promote the exploitation of the international tourism market.
Domestic tourism market : Focus on the tourist market of Ho Chi Minh City, Can Tho City, Mekong Delta provinces, the extended Mekong sub-region, reaching out to the markets of the South Central provinces, Southeast, Hanoi capital and the Northern provinces [18].
International market : Targeting markets in France, Germany, Canada, Australia, the US, China, Japan, Korea, Taiwan, world environmental organizations and countries in the ASEAN region, China, Japan and overseas Vietnamese residing in some countries such as the US, Australia, Canada, France, Germany... [18]
+ Customer target:
In recent years, the number of tourists to Kien Giang province has grown rapidly. In the coming years, when the living standards and socio - economy are improved, the demand for tourism of the people will increase rapidly. The forecast of the number of tourists is closely related to the issue of building new ones, upgrading, increasing the number of guest rooms in hotels that meet the standards to welcome international visitors; the demand for management staff, labor force and related organizations in serving tourists; based on the demand for eco-tourism of countries around the world, based on the situation of tourists to Kien Giang in recent years, favorable and difficult factors, projects in the whole province investing in developing eco-tourism areas; on the other hand, when the infrastructure conditions, especially the transportation system, are invested in and upgraded to shorten travel time and welcome a large number of domestic and foreign tourists, it is possible to predict the number of tourists in the coming time as follows [18]:
Table 5.1: Target number of tourists to Kien Giang province by 2020
Unit: Thousand people
Plan
Customer type | Category | Year | ||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||
PA I | International | Total number of guests | 46 | 85 | 116 | 198 | 230 | 295 |
Date of stay | 1.52 | 1.96 | 2.03 | 2.89 | 2.89 | 3.01 | ||
Total number of guest days | 69.92 | 166.6 | 235.48 | 572.22 | 664.7 | 887.95 | ||
Inland | Total number of guests | 598 | 670 | 760 | 985 | 1,689 | 2,394 | |
Date of stay | 2.15 | 2.15 | 2.15 | 2.32 | 2.32 | 2.41 | ||
Total number of guest days | 1,285.7 | 1,440.5 | 1,634 | 2,285.2 | 3,918.48 | 5,769.54 | ||
PA II | International | Total number of guests | 86 | 124 | 183 | 246 | 328 | 450 |
Date of stay | 1.52 | 1.96 | 2.03 | 2.89 | 2.89 | 3.01 | ||
Total number of guest days | 130.72 | 243.04 | 371.49 | 710.94 | 947.92 | 1,354.5 | ||
Inland | Total number of guests | 657 | 762 | 845 | 968 | 1,569 | 2,625 | |
Date of stay | 2.15 | 2.15 | 2.15 | 2.32 | 2.32 | 2.41 | ||
Total number of guest days | 1,412.55 | 1,638.3 | 1,816.75 | 2,245.76 | 3,640.08 | 6,326.25 | ||
Source: Department of Culture, Sports and Tourism of Kien Giang province [18]
The number of international visitors is currently low, due to the impact of inadequate investment in exploiting tourism potential; many policies and guidelines make domestic and international investors not bold enough to invest... However, in the coming years, we can take advantage of existing relationships with domestic and international units such as joint ventures with Saigon Tourist and exploiting cruise tourism to Thailand, Cambodia, Malaysia, which will create a regular source of international visitors. For domestic visitors, if we pay attention to exploiting well tourism products that complement ecotourism such as: Festival tourism, shopping tourism, and origin tourism, the growth rate in the coming years will be higher. However, the length of stay of tourists will increase due to good service and the exploitation of more and more tourist destinations and routes.


![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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