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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
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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Ministry of Education and Training
National Economics University

------------------------------------------
Mai Ngoc Anh
IN THE MARKET ECONOMY CONDITIONS IN VIETNAM
Major: Economic Management
Code: 62.34.01.01
PhD thesis in economics
Scientific instructor:
Guide 1: Associate Professor, Dr. Mai Van Buu Guide 2: Dr. Nguyen Hai Huu
Hanoi, 2009
Commitment
I hereby declare that this is my own research work. The data and research results in the thesis are honest and have never been published in any other scientific work.
Thesis author
Mai Ngoc Anh
INDEX
COMMITMENT i
TABLE OF CONTENTS ii
LIST OF ABBREVIATIONS iii
LIST OF TABLES iv
LIST OF FIGURES
INTRODUCTION 1
CHAPTER I: THEORETICAL BASIS OF SOCIAL SECURITY SYSTEM FOR FARMERS IN THE CONDITIONS OF MARKET ECONOMY DEVELOPMENT 6
1.1. SOCIAL SECURITY FOR FARMERS IN MARKET ECONOMY CONDITIONS: NATURE AND ROLE 6
1.2. CONTENT, CONDITIONS FOR BUILDING AND COMPLETING THE SOCIAL SECURITY SYSTEM
ASSOCIATION FOR FARMERS IN MARKET ECONOMY CONDITIONS 23
1.3. EXPERIENCES OF SOME COUNTRIES IN BUILDING AND IMPROVING SOCIAL SECURITY SYSTEMS FOR FARMERS 47
CHAPTER 1 CONCLUSION 68
CHAPTER II: ASSESSMENT OF THE CURRENT STATE OF THE SOCIAL SECURITY SYSTEM FOR VIETNAMESE FARMERS 70
2.1. OVERVIEW OF THE DEVELOPMENT PROCESS OF THE SOCIAL SECURITY SYSTEM FOR THE COUNTRY
WITH VIETNAMESE FARMERS 70
2.2. ASSESSMENT OF THE DEVELOPMENT OF THE SOCIAL SECURITY SYSTEM FOR AGRICULTURE
VIETNAMESE PEOPLE TODAY 100
2.3. CAUSES OF LIMITATIONS OF SOCIAL SECURITY SYSTEM FOR FARMERS
VIETNAMESE PEOPLE TODAY 121
CHAPTER 2 CONCLUSION 134
CHAPTER III: ORIENTATIONS AND SOLUTIONS TO BUILD AND IMPROVE THE SOCIAL SECURITY SYSTEM FOR VIETNAMESE FARMERS IN THE COMING YEARS 135
3.1. CONTEXT OF SOCIO-ECONOMIC DEVELOPMENT AND ISSUES RAISED IN BUILDING AND IMPROVING THE SOCIAL SECURITY SYSTEM FOR VIETNAMESE FARMERS IN THE COMING YEARS 135
3.2. ORIENTATION FOR BUILDING AND PERFECTING THE SOCIAL SECURITY SYSTEM FOR THE EMPLOYEES
FOR VIETNAMESE FARMERS IN THE COMING YEARS 144
3.3. SOLUTIONS TO DEVELOP SOCIAL SECURITY SYSTEM FOR FARMERS
VIETNAM IN THE COMING YEARS 173
CHAPTER 3 CONCLUSION 187
CONCLUSION AND RECOMMENDATIONS 188
LIST OF AUTHOR'S WORKS 190
REFERENCES 191
APPENDIX 199
LIST OF ABBREVIATIONS
ADB: Asian Development Bank ASXH: Social Security
BHTN: Unemployment insurance
Health Insurance & Social Insurance: Health Insurance and Social Insurance
Health Insurance for the Poor: Compulsory Health Insurance for the Poor
LĐTBXH: Labor, War Invalids and Social Affairs
Agriculture and Rural Development: Agriculture and Rural Development
BTC: Ministry of Finance BYT: Ministry of Health
Federal Republic of Germany: Federal Republic of Germany GDR: Slavery
CNXH: Socialism CSHT: Infrastructure CXNT: Primitive commune
DNS: State-owned enterprises DVXHCB: Basic social services
Science and Technology: Science and Technology KTTT: Market Economy
MTQG: National target CNY: Chinese Yuan
State budget: State budget NS&VSMT: Clean water and environmental sanitation Publisher: Publishing House
PCT: Informal
PT Askes: Health insurance for civil servants, retired veterans and their relatives
PT Jamsostek: Social security for workers
PT Jasa Rahaja: Traffic Accident Insurance
PT Taspen: Social insurance for civil servants
TECHCĐ: Children in special circumstances TGBHYTTN: Number of participants
TGLVNT: Working time in rural areas
ESCAP: Economic and Social Commission for the Region TGĐX: Emergency Assistance
Asia - Pacific GDP: Gross Domestic Product HGĐ: Household
Cooperative: Cooperative
HSSV: Students ILO: International Labor Organization
IPP: Personal Insurance Program KCB: Medical examination and treatment
Industrial Park: Industrial Zone Export Processing Zone: Export Processing Zone
TGTX: Regular assistance TGXH: Social assistance TLHGN: Poverty reduction rate
TNND: Farmer income TNNND: Farmer household income WHO: World Health Organization
XĐGN: Hunger eradication and poverty reduction
UNDP: United Nations Development Programme Social Incentives: Social Incentives
LIST OF TABLES
Table 1.1: Distinguishing between social security and social security system 10
Table 1.2: Comparison of health insurance under social insurance and business health insurance 31
Table 1.3: Pension and old age insurance for German farmers 48
Table 1.4: Cost and funding levels of agricultural accident insurance 49
Table 1.5: ESCAP 66 social security system model
Table 2.1: Summary of voluntary health insurance participants 81
Table 2.2: Comparison of Nghe An farmers' social insurance with national voluntary social insurance in 2008 84
Table 2.3: Percentage of rural households with hygienic latrines by region (2005) 99
Table 2.4: Number and structure of rural households by region (2006) 103
Table 2.5: Average living expenses of farming households in 108
Table 2.6: Social insurance participation 2003-2005 in rural areas 111
Table 2.7: Number of primary school dropouts in Vietnam during 2003 – 2007 114
Table 2.8: Malnutrition rate and mortality rate of children under 1 year old in Vietnam (2004) 115
Table 2.9: Summary of revenue and expenditure of Vietnam's health insurance in the period 2000-2006 118
Table 2.10: Quantity and proportion of the State budget spent on social security programs for the region
rural areas in the period 2000 - 2007 (billion VND) 123
Table 2.11: Input prices of some essential goods for farmers' production 126
Table 2.12: Percentage of households outside the formal sector receiving financial support from domestic and foreign organizations and individuals 127
Table 2.13: Average income per person (2007) 128
Table 3.1: Contribution capacity and need for State support for foreign workers
formal sector when participating in social insurance 137
Table 3.2: SWOT matrix (strengths, weaknesses, opportunities, challenges) 138
Table 3.3: The ability of people to benefit from the social security system for
Farmers in the current market economy conditions in Vietnam 139
Table 3.4: Ability for people to actively participate in the farmer social security system 141
Table 3.5: Women participating in self-employment activities in agriculture 152
Table 3.6: Increased investment in labor and occupational change in rural areas
will create conditions to increase income for farming households 163
Table 3.7: Social welfare goals for farmers in the period 2011 - 2015 164
Table 3.8: Social security goals for farmers in the period 2015 - 2020 165
Table 3.9: State support level for implementing universal health insurance and expanding the voluntary social insurance coverage network to 40% of agricultural workers 176
Table 3.10: Forecast of state budget expenditure for purchasing health insurance cards for beneficiaries
passive participation in the health insurance and social insurance system 177
Table 3.11: Forecast of state budget expenditure for farmers eligible for assistance from the social security system in the period 2011-2020 179
Table 3.12: Estimated total cost of implementing social security for Vietnamese farmers
Men 2011 – 2020 period 180
LIST OF DRAWINGS
Figure 1.1: Social development and social security issues through stages 7
Figure 1.2: Life cycle and risks in human life 8
Figure 1.3: Using capital to deal with health shocks
human 9
Figure 1.4: Forms and systems of management of participation in the social security system
Association for farmers in market economy conditions 27
Figure 1.5: Poverty is the root cause of hunger 36
Figure 1.6. The relationship between poverty, unemployment, social exclusion and social security 36
Figure 2.1: Distribution of disabled people who are farmers living in 8 regions of Vietnam (2006) 88
Figure 2.2: Number of beneficiaries of regular subsidies (2000-2008) 89
Figure 2.3: Damage caused by storms, floods and droughts (2000 - 2007) 90
Figure 2.4: Resources to assist victims of natural disasters in the period 2000-2007 92
Figure 2.5: Vietnam's poverty reduction rate according to international poverty standards 94
Figure 2.6: Number and proportion of communes with general schools nationwide (2006) 95
Figure 2.7: Number of communes with health stations and private medical facilities nationwide (2006) 96
Figure 2.8: Number of communes with centralized domestic water supply works and implementing activities
Environmental sanitation campaign nationwide in 2006 98
Figure 2.9: Development of the public service system in rural Vietnam (2006) 102
Figure 2.10: Structure of rural labor shift from agriculture, forestry,
seafood to service 104
Figure 2.12: Average monthly income and expenditure of Vietnamese farmers in the period 1999 - 2007 106
Figure 2.13: Average value of agricultural, forestry and fishery output in the period 1992 - 2005 107
Figure 2.15: Percentage of poor people receiving compulsory health insurance cards in the period 2001 - 2006 109
Figure 2.17: Current status of community social assistance in the period 2000-2007 112
Figure 2.18: Poverty rate in Vietnam in the period 1998 - 2007 113
Figure 2.19: Poverty rate of Kinh and ethnic minority households in total poor households in Vietnam in the period 1992 - 2005 113
Figure 2.20: Percentage of outpatient visits with physician contact in rural areas
2002 115
Figure 2.21: Results of clean water supply for rural areas by region (2005) 116
Figure 2.22: Forms of participation in the social security system for farmers in
Vietnam 120
Figure 2.23: Workers' choices of lifestyle in old age (%) 121
Figure 2.24: Conditions for farmers to participate in the social security system
national security in general and social security for farmers in particular 124
Figure 2.25: Percentage of untrained workers in 8 regions of Vietnam in 2004 125
Figure 2.26: Percentage of villages with doctors 132
Figure 3.1: Social security model for Vietnamese farmers by author 146
Figure 3.2: Mechanisms and policies on voluntary health insurance and social insurance to mobilize farmers
Vietnamese people actively participate in the next 150 years
Figure 3.3: Model of orientation for building laws, mechanisms and policies to help farmers better integrate into the social security system for farmers in
Vietnam in the coming time 167
Figure 3.4: Job creation model to increase income, thereby encouraging farmers of working age to participate well in the social security system for
Farmer 169
Figure 3.5: Income generation model for people beyond working age in rural areas
can participate well in the social security system for farmers 171
Figure 3.6: Support for learning and future career orientation for children in the area
rural area 172
Figure 3.7: Improving the awareness of officials and farmers in implementing
Social security policy for Vietnamese farmers in the coming period 174
Figure 3.8: State budget expenditure for social security program for farmers 175





![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
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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