The 11th City Party Congress (held from March 29 to 30, 1989), based on analysis and assessment of the actual situation, affirmed the achievements after 3 years of renovation in the spirit of the 6th Party Congress, creating a basic and favorable premise for the city to move forward in the following years. The Congress also pointed out the shortcomings and weaknesses in many aspects, including the economy, and approved the direction and key tasks for 2 years (1989-1990), with the policy of "It is urgent to innovate the management mechanism and build policies to liberate the productive forces, exploit all potentials and new factors in all economic sectors, expand the autonomy of establishments, expand joint ventures and associations. Focus on key tasks to implement 3 economic programs: food, consumer goods and export goods" [46; p.3]. At the same time, continue to implement Resolution 10 of the Politburo of the Central Party Executive Committee "On innovation in agricultural economic management".
Based on the spirit of Directive 154/CT of the Chairman of the Council of Ministers, dated May 15, 1991, the City allowed small-scale industrial and service cooperatives to choose products, scale, technology and business form.
The Political Report of the Party Central Committee at the 7th National Party Congress (June 1991), based on the achievements and the current situation of the country, proposed a policy of consistently implementing a multi-sector economic policy in the direction of socialism. The Congress adopted the Platform "Building the country in the transitional period to socialism" and approved the basic content of the Strategy "stabilizing and developing the socio-economy until the year 2000".
In the light of the Resolution of the 7th National Party Congress, the 6th Bac Thai Provincial Party Congress (October 1991), the policy is to strive to form an agricultural-forestry-industrial-service economic structure; in each district, city, and town, depending on the conditions, a suitable economic structure will be formed, the policy is to
Building "Professional, humanitarian, and friendship associations... are voluntary organizations of the masses in each profession and each aspect of life with political and social nature at different levels, established according to law... In organization and operation, unions and mass organizations implement the principle of self-management and self-selection of their own cadres" .
Maybe you are interested!
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The Birth and Current Status of Social and Professional Organizations in Thai Nguyen City -
Social and Professional Organizations in the Field of Culture and Education -
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 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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Building and Maintaining Social Capital Through Membership in Groups, Organizations, and Social Networks -
Entrusting loans for poor households between the social policy bank and socio-political organizations in Bang Thanh commune, Pac Nam district, Bac Kan province - 6
From the achievements and limitations in the first years of implementing the Party's renovation policy, the 12th Thai Nguyen City Party Congress, held from January 20 to 22, 1992, set out the goals and tasks for 4 years (1992-1995), which are: "stabilize and develop the socio-economy with a multi-sector economic structure. Clearly form an industrial-agricultural-commercial and service economic structure. Build a number of key economic zones and economic sectors, create many spearhead products, meet essential needs in the area and reach out to foreign markets. Promote urban planning and construction, maintain political security, social order and safety, implement Party innovation and rectification, improve the State's management capacity, innovate the activities of people's organizations. Gradually build a city with comprehensive economic development; worthy of being the political, economic and social center of the province" [52; pp.34-35].
At the 8th National Congress (June 1996) of the Party, it was determined: "The goal of industrialization and modernization is to build our country into an industrialized country with modern technical facilities, a reasonable economic structure, and progressive production relations suitable to the development level of the productive forces" [53; p.18].

Thai Nguyen City, June 29, 2001, the Standing Committee of Thai Nguyen Provincial Party Committee issued Resolution No. 02/NQ-TU "On the construction and development of Thai Nguyen City in the period of 2001-2005, with development orientation to 2010", stating: "Thai Nguyen City must take the lead in the cause of industrialization and modernization; develop rapidly, comprehensively, and steadily, representing the development of the province; be the driving force for the development of other localities in the province and become a
"A prestigious center of the Viet Bac region and one of the important regional centers of the whole country." That orientation is completely consistent with the advantages and potentials of the city, as well as consistent with the general orientation of our Party and State.
To effectively implement the policies and orientations of the Provincial Party Committee Standing Committee, the 14th City Party Congress (held from January 14 to 16, 2000) proposed the policy of taking economic development as the key task, striving to achieve an average economic growth rate (GDP) of 7%/year, in which industry and construction increased by 8%/year; trade and services increased by 7%; agriculture and forestry increased by 3.5%/year. The proportions of sectors in the economic structure are: Industry and construction 50% - trade and services 40%; agriculture and forestry 10% [55; pp.87-88].
The above documents, resolutions and reports have demonstrated the innovation guidelines and policies of the Party Central Committee, the Provincial Party Committee and the People's Committee of Thai Nguyen city towards industrialization and modernization from 1986 to 2016.
Based on the policies and guidelines of the Central Government, the province and the city Party Committee, Thai Nguyen city has not only gradually developed its economy, but also developed comprehensively: The average GDP growth rate of Thai Nguyen city reached 9%/year, industrial production increased by 19.5%/year, agriculture - forestry reached 4.5%/year, service sectors reached 9.4%/year... That is the condition for the birth and development of social - professional organizations in Thai Nguyen city. Up to now, the city has had 16 social - professional organizations established: Oriental Medicine Association (October 25, 1962); Red Cross Association (1965); Thai Nguyen Retirement Club (June 27, 1986); Gardening Association (January 20, 1990); Ornamental Plants Association (Decision No. 1897 dated June 27, 1995); Thai Nguyen City Bar Association (No. 946/QD-UBND dated October 28, 1999); Association for Promotion of Education (No. 131/QD-UBND dated January 29, 2002); Association of the Elderly (766/QD-UBND dated July 2, 2003); Association of the Disabled (No. 2942/QD-UBND dated December 23, 2005); Association of Former Youth Volunteers
(February 3, 2006); Literature and Arts Association (No. 950/QD-UBND dated May 28, 2007); Association of Agent Orange/Dioxin Victims (July 25, 2008); Business Association (No. 1276/QD-UBND dated June 2, 2010); Vietnam-Laos Friendship Association (No. 52- HHNVN-L dated June 1, 2011); Vietnam Ho Chi Minh Trail and Truong Son Tradition Association (No. 2028/QD-UBND dated September 15, 2014). Social and professional organizations are increasingly developing and participating in many different fields such as: economic; cultural - educational; medical...
2.2. Socio-professional organizations operating in the economic field
2.2.1. Business Association
Thai Nguyen City Business Association is a voluntary social-professional organization of enterprises and entrepreneurs of all economic sectors operating in production and business in Thai Nguyen City. The Association was established under Decision No. 1273/QD-UBND dated June 2, 2010 of the Chairman of Thai Nguyen Provincial People's Committee.
The Association represents the business community of Thai Nguyen city with the aim of uniting members, protecting the legitimate rights and interests of members, supporting each other to operate effectively, contributing to the socio-economic development of Thai Nguyen city.
The main task of the association is to coordinate with State agencies to organize forums, dialogues, and meetings between enterprises, employers and State agencies to exchange information on issues related to enterprises in business; Protect the legitimate rights and interests of enterprises and employers in domestic and international business relations; Organize propaganda activities, mobilize enterprises to strictly comply with the law, improve social responsibility, ethics and business culture; Build harmonious labor relations, protect the environment and participate in other social activities in line with the Association's goals.
In addition, the Association conducts activities to build, promote and enhance the reputation of Vietnamese enterprises, entrepreneurs, goods and services; promote business development support services; support enterprises in developing business and investment relations at home and abroad.
During its operation, the Association helps members register and protect intellectual property rights and technology transfer in Vietnam and abroad; Organizes trade promotion and investment promotion programs to develop businesses and the economy of Thai Nguyen city.
In specific cases, the Association collects and studies the opinions of enterprises to reflect and propose recommendations to competent state agencies on legal issues and socio-economic policies to improve the business environment; Participates in the development and implementation of socio-economic development strategies and international economic integration, participates in conferences and economic and trade negotiation delegations in accordance with the provisions of law; Organizes business delegations to go abroad to introduce goods and products, promote relations with international business organizations, and enhance the position of Thai Nguyen city.
With the above functions, tasks and powers of the Association have been clearly defined in the Charter of Operation. Since its establishment, the Business Association has received attention and support from all levels of government, the Provincial Business Association and especially the City People's Committee. Therefore, in recent years, member businesses in the city have had many positive changes in business, contributing to the economic development of the city in particular and Thai Nguyen province in general.
By promptly grasping the development trends of the market and business partners, the Association has also shifted and connected large enterprises with a leading role, helping small enterprises develop together. Therefore, in the context of the country's economy facing many difficulties, many enterprises have and
Although the Thai Nguyen City Business Association is facing the risk of bankruptcy, it has maintained its stable development. The evidence is that in recent years, the number of affiliated branches and new members has continuously increased and no member has gone bankrupt.
During the production and business process, the Association always cares and helps each other to complete the plans and targets well. Compete to achieve no tax debt, no insurance debt, no worker salary debt.
Enterprises join hands to support each other in production and business. In recent years, internal trade has reached about 260 billion VND. Many enterprises have exceeded the planned targets.
To attract abundant labor resources, the City Business Association has coordinated with the Provincial Labor Federation to join other units to successfully organize the Job Fair, creating job search opportunities for new graduates and workers in the city. The Job Fair helps businesses attract labor suitable to their business and production conditions.
The Association also forms a joint venture between associations to help each other in difficult times, listen and share advantages and disadvantages to develop together, create a playground and activities connecting the City Business Association, the City Veterans Business Club and the City Businesswomen Association; Regularly organize connection sessions between banks and businesses to help member businesses access preferential capital regularly and quickly. The Association has organized connections between the City Bank for Agriculture and Rural Development with 30 businesses in the area. The Association organizes meetings to listen, share and create preferential business capital for businesses. The City Business Association is always a bridge for internal trade between businesses in the province as well as in the whole country.
The Association always cares about the spiritual life of enterprises, especially enterprises with female directors. On International Women's Day, March 8, the Association organized an intimate meeting with more than 20 female directors of enterprises and female journalists and television journalists. They are collaborators who always accompany the Association on all fronts, regularly meeting with each cluster of enterprises to listen to and share the difficulties of enterprises and together solve those difficulties.
The purpose is to create conditions for local business associations to develop and introduce their products and crops to the market near the Lunar New Year. The Executive Committee of the Business Association organized a delegation to visit and work at the Cam Gia Ward Business Association, visit the Cam Gia peach blossom craft village to create a brand and help people widely promote ornamental peach trees to the market. The Association regularly participates in major programs and events of the city: Opening ceremony of Hoan My Thai Nguyen Furniture Dealer - Hoang Gia Thai Nguyen Construction Company Limited.
The Association's Executive Committee and the Association's office regularly provide guidance to all participating enterprises to fill out the survey forms that tax authorities and the Provincial Competitiveness Index (PCI) survey forms. Therefore, the Association was awarded a certificate of merit by the Chairman of the Thai Nguyen Provincial People's Committee for "The Association of Enterprises with outstanding achievements in implementing the Provincial Competitiveness Index (PCI) in 2016".
The City Business Association coordinated with the Thai Nguyen Provincial Tourism Association to organize for 65 enterprises and members to visit and learn about the tourism production and business model at the Royal Thai Nguyen Trade Center; Thai Nguyen Investment Company Limited; and to Hong Kong, China and 3 provinces of the Central Highlands. The trip was highly appreciated by the enterprises. In particular, the Association coordinated with the FLAMIGO Dai Lai tourist area to organize a delegation of more than 30 enterprises to visit and sign business cooperation agreements at the Dai Lai tourist area.
To celebrate the founding anniversary of Thai Nguyen city on October 19, members of the city's Business Association had 6 projects with the sign "Business Association celebrating the 55th anniversary of the city's founding" and contributed more than 10 billion VND to the celebration.
Responding to the patriotic emulation movement launched by the City People's Committee. The City Business Association has had 21 enterprises awarded. And 02 enterprises received the Provincial flag, 01 enterprise received the Government flag. 01 enterprise received the international silver medal for tea products in the US. 01 enterprise received the national award "Enterprise for workers".
Having successfully implemented the new rural movement at the beginning of last year, 03 member enterprises of the Association were awarded certificates of merit by the Provincial People's Committee for "Contributing to the new rural program in 2016".
Thai Nguyen City Business Association, in addition to the purpose of uniting members, protecting the legitimate rights and interests of members, supporting each other in activities contributing to the socio-economic development of the city. In recent years, the association has paid great attention to social work such as: During the Lunar New Year, the Association has mobilized and directed branches to give gifts to policy beneficiaries and the poor, with 2,250 gifts, each worth 300,000 VND. The total value is 675 million VND; Organizing gifts to honor heroic martyrs and relatives of heroic martyrs: 5 member enterprises gave gifts to mothers and relatives of heroic martyrs worth 12.5 million VND; directly visited and gave gifts to mother Nguyen Thi Ty, a heroic Vietnamese mother, in Phuc Xuan commune.
Some businesses have sponsored Associations with poor, disadvantaged, lonely members who have no place to rely on and need help, such as participating in supporting the "Fund for the Happiness of the Blind" and the "City Red Cross" support fund, the City Youth Volunteers Association, the Association for the Promotion of Education, the Association for the Disabled... Building charity houses, supporting the Heart Fund for children with about 400 million VND.
To commemorate the fallen comrades of the 915 Youth Volunteer Team, the Business Association members have sponsored more than 30 billion to rebuild the 915 Youth Volunteer Memorial in Gia Sang.



![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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