Solution: Choosing the Right Service-Object Pairs for Public Utility Enterprises


The annual operational plan objectives of a public utility enterprise are the results that the enterprise expects to achieve after carrying out activities in the planning year. The annual operational objectives of a public utility enterprise are mainly: 1) growth rate, 2) growth quality, 3) level of participation in local socio-economic development... Usually, people divide the final objective into the level of participation in local socio-economic development and the intermediate objectives are the business results that directly determine the final objective: growth rate and growth quality. Based on the following bases: the forecast results of loan demand to support socio-economic development, the forecast results of allocated and mobilized resources, the enterprise officially decides to choose the level of the final objective and the intermediate objectives for developing activities in the planning year.

1.4.2 Solution: Selecting appropriate service-object pairs for public utility enterprises

In a market economy, what needs to be discussed is the product-customer pairs. Talking about the general market, talking about separate products, separate customers is a way of speaking that is not close to reality, and is not convincing. In the actual operation of public service enterprises in general, and of development banks in particular, there is always a need for i types of services with j types of objects. The objects served by public service enterprises can be individuals, organizations, businesses... Public service activities have many different services and effects. From there, public service enterprises need to identify all service-object pairs; based on financial capacity and the sufficient level to have qualitative changes in the objects to decide on the level of investment support in the planning year.

1.4.3 Solution: Reasonable use of mobilized resources to develop public service enterprise activities

The resources that need to be identified are the resources that serve to realize and implement the goals and service-object pairs that the public utility enterprise officially decides to choose.


Resources for achieving goals, service-object pairs that public service enterprises officially decide to choose include: financial needs, science-technology development needs, human resource development needs...

The need for science and technology is determined mainly based on the indicators of business objectives in the planning year such as: modernizing banking operations, improving service quality, increasing labor productivity... The need for finance and human resources is determined mainly based on the indicators of lending service objectives and consumption norms in the planning year.

Thus , according to Professor, Dr. Do Van Phuc [8, p. 141], planning the development of public service enterprises is the process of investing in forecasting development needs, forecasting resources from the budget and forecasting additional mobilized resources; using those forecast results to calculate and consider a number of options (scenarios), each option (scenario) has planning objectives, developing service-object pairs and planning resources. Lacking or being untrustworthy even on one basis means that the development plan cannot be used or will be used ineffectively.



Development plan

activities : goals, service-object pairs and resources



Forecasting development needs results

Forecast results attract additional resources


Forecast results of budget resources for development activities


Figure 3: The level of trust of the three bases determines the level of trust of the development plan of public utility enterprises.


CONCLUSION OF CHAPTER 1


The development planning of public service enterprises is different from that of business enterprises in that the level of competition is insignificant, and the purpose of operation is different from that of business enterprises in that the political and social purpose is as important as or more important than the purpose of profit.

Quality of operation and sustainable development are the most important things for all types of enterprises. How to evaluate the development of public service enterprises, point out weaknesses and propose solutions to develop operations is an extremely necessary issue.

This chapter has summarized and systematized the basic theoretical issues on planning the development of public service enterprises' activities to propose some solutions to develop the activities of Quang Ninh Public Bank.

The above theoretical issues are practical and systematic, serving as a basis for analyzing the development situation of more quality activities, moving towards developing activities to achieve high efficiency of NHPT in general and of NHPT Quang Ninh in particular.


Chapter 2

CURRENT STATUS OF DEVELOPMENT ACTIVITIES OF QUANG NINH DEVELOPMENT BANK


2.1 CHARACTERISTICS OF QUANG NINH DEVELOPMENT BANK

Based on the operational objectives, Vietnam Development Bank in general and Quang Ninh Development Bank in particular have the following characteristics:

- Development Bank is usually a State financial institution to

carry out the tasks of funding State development investment projects.

- Development Banks are often subject to special supervision by the Government and operate under a special mechanism with State guarantees.

- Development Banks operate not for profit, this is the most important difference compared to commercial banks.

That is why the Development Bank has no competitors.

Main activities of NHPT Quang Ninh

* Capital mobilization and capital management activities

Capital mobilization is a major and regular activity of banks. For the Development Bank, capital mobilization is even more important in terms of the need to mobilize medium and long-term capital sources with low average interest rates in the context of increasing competition with credit institutions and low State funding sources due to limited budget.

The basic requirement for the capital sources of the NHPT is to ensure the link between maturity and interest rate.

i mainly operates to finance long-term projects with low profitability and high risk; the NHPT must mobilize many capital sources with high interest rates.


low interest rate, long term and risk acceptance; Therefore, the NHPT must know how to combine many advantages in terms of State legal policies, socio-economic conditions and efficiency in the Bank's operations.

Capital sources for the operation of the NHPT include: Owner's capital; Annual budget capital to implement projects as assigned by the Government; Loan capital from State funds, domestic organizations designated and guaranteed by the State; Self-mobilized capital in the market: including mobilizing deposits from organizations; issuing Government bonds, bank bonds under State guarantee and debt instruments in the capital market...

The capital structure of the National Development Bank also differs between countries. In developing countries, the capital of the Development Bank is often provided by the State budget or guaranteed for the issuance of bonds on the capital market. For developed countries, the capital of the Development Bank mainly comes from the issuance of bonds and debt instruments on the capital market due to the reputation and financial capacity of the bank itself, less dependent on the capital provided by the State budget. This makes the Development Bank more proactive in terms of capital and is a criterion for evaluating the development of the Development Bank's activities.

Thus, capital mobilization activities are very important for the Development Bank, requiring it to meet many specific factors in the operation of the Development Bank. However, the factors of using and managing mobilized capital to meet capital needs for socio-economic development goals are vital factors for the existence of the Development Bank.

* Development support activities

With the goal of socio-economic development, the NHPT conducts activities with the main function of financing investment projects. However, the subjects and methods of financing are also different from those of commercial banks. Firstly, the subjects of loans: investment development projects (DTPT) in important sectors and fields.


Importantly, regions need support to encourage investment from the State. Second, the method of financing investment development credit depends on each development bank and the characteristics of each country. However, focusing on financing methods including:

Firstly, financing for development investment projects: This is the most important task of the Development Banks, especially in developing countries, as a lever for socio-economic development. In these countries, the transport infrastructure, communications and social infrastructure are underdeveloped, so in the early stages, it is necessary to focus on investing a large amount of capital for development investment. Forms of financing include loans, credit guarantees, and interest rate support when borrowing from commercial banks.

Second, providing credit to support exports: Countries often develop support policies to promote the export of goods and investment abroad. Export credit activities include: lending to exporters (to carry out export contracts); lending to foreign importers (to purchase export goods of the sponsored country); Guarantees for the performance of export contracts; Bid guarantees, Payment guarantees and other non-financial guarantees; export credit insurance... This form of credit is supported by the State with low loan interest rates, low guarantee fees, long loan terms and is implemented through the Development Bank or the Export-Import Bank.

Third, funding for development of small and medium enterprises (SMEs) and solving social and environmental issues:

Form of financing to develop small and medium enterprises, a dynamic part of the economy. Many development banks often use financing measures through the network of commercial banks, development banks act as wholesale banks providing retail banks with preferential loans for the target group of customers, which are small and medium enterprises.

In addition, NHPT also sponsors projects of high social significance to solve social problems such as: housing for low-income people, training


vocational training, lending capital to reduce poverty, develop health care, education, lend capital to help businesses solve environmental problems... These activities are highly focused on by development banks in developed countries to develop society and improve the quality of life of people.

* Other activities of NHPT

Like any other bank, NHPT must also carry out activities such as debt collection, investment project appraisal, risk management, etc. to ensure the safety and development of the Bank's operations. Among the above activities, investment project appraisal and risk management (including bad debt handling) are very important activities that determine the effectiveness of the Bank's operations.

With the characteristic of funding for investment and development projects, the appraisal of investment and development projects is not only based on financial efficiency like commercial banks but also takes into account the socio-economic efficiency of the project, so it is necessary to build a separate system of standards used when appraising investment projects.

Thus, the difference between Development Bank (DB) and Commercial Bank (CB)

Commercial banks (CBs) are specifically as follows:


STT

Characteristic

NHPT

Commercial Bank

1

Purpose of operation

Maximize socio-economic efficiency

Maximize profits (financial benefits) and shareholder benefits

2

Management agency

Established by the State and closely supervised by the Ministry of Finance

Operating under the supervision of the State Bank

3

Legal system

Laws and sub-law documents regulating activities

Laws and related legal documents

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Solution: Choosing the Right Service-Object Pairs for Public Utility Enterprises

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