Solution to complete international payment activities by documentary credit method at ANZ Bank Vietnam

International export by L/C is a dual solution, mentioned first to both increase export payment turnover by L/C and attract foreign currency for international payment activities of banks.

- Content : ANZ Bank Vietnam needs to diversify its activities to attract foreign currency by mobilizing deposits from domestic residents and foreigners living in Vietnam, foreign companies operating in Vietnam, joint ventures, non-governmental organizations, etc.

-In addition, in addition to mobilizing foreign currency from domestic individuals and organizations, banks can also attract foreign currency capital from abroad through loan contracts from financial and credit institutions and foreign banks to invest in projects in Vietnam.

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3.3.6 Solution Evaluation

To achieve the goals and directions set for 2014, it is necessary to coordinate the implementation of solutions well. However, not all solutions must be implemented at the same time and within the same period of time. There are solutions that need to be implemented immediately, there are solutions that need to be implemented in a short period of time, but there are also solutions that need to be implemented in the long term, and there are also solutions that are effective when implemented together. Specifically:

Prerequisite solution: Sometimes due to shortcomings from the customer side, international payment activities by documentary credit method have not achieved high efficiency in quality. Besides, if customers do not have much experience, there are many risks in the market. Therefore, currently, international payment department staff are having to perform dual tasks of professional work and disseminating basic knowledge about international payment activities by L/C method to customers who do not have much experience. And to avoid wasting time processing international payment documents as well as reducing the capacity of staff in the department, the establishment of a customer consulting department for the payment department needs to be implemented as soon as possible. Consulting for customers not only demonstrates the reputation of the bank, thereby attracting more potential customers.

Short-term solution: ANZ Bank Vietnam needs to diversify its activities to attract foreign currency by mobilizing deposits from domestic residents and foreigners living in Vietnam, foreign companies operating in Vietnam because import enterprises have a need for foreign currency for payment. And promoting international payment activities for export goods by documentary credit is a two-way solution, both increasing export payment turnover by L/C and attracting foreign currency for the bank's international payment activities.

Long-term implementation solution: Putting good technology into use in banking operations in general and in international payment operations in particular will reduce costs, data processing time, increase transaction speed but it takes a long time to implement. Banks need to prepare well in terms of potential and resources to equip this technology application widely in all branches. At the same time, improve the level of technology application for international payment department staff in particular and other functional departments in general.

Synchronous coordination solution: Having more and more loyal customers is very important for ANZ Vietnam Bank in expanding its international payment market share by documentary credit method. Besides, the number of customers paying for export L/C is still small and transactions are slow. Therefore, the bank needs to build marketing activities to attract customers combined with developing and improving the quality of human resources in the coming time is extremely necessary.

3.4 Some recommendations

3.4.1 For state macro management agencies

- Creating a legal environment for foreign economic activities is very important, including international payment activities. The State needs to soon issue legal documents guiding international payment transactions by L/C method, which clearly stipulates the rights and obligations of enterprises participating in foreign trade contracts as well as banks participating in international payment contracts. At the same time, the State needs to reduce administrative procedures in import and export activities in a scientific manner, facilitating this activity. The State also needs to develop the Banking Association.

Vietnamese goods, helping Vietnamese banks integrate into the world community.

- In addition, the State needs to encourage import and export activities of enterprises, thereby increasing the frequency of import and export payment activities by L/C method, by many methods. The State needs to improve the international balance of payments because this is a factor related to the payment capacity of banks, affecting the country's foreign exchange reserves. The State needs to promote exports and control imports to reduce the deficit in the international trade balance.

- The period of economic opening of Vietnam to the world is bringing many opportunities for export activities. The State in the role of promoting export needs to have measures such as: investing in export products in which Vietnam has advantages such as rice, rubber, seafood, coffee... encouraging production and processing of products for export by reducing taxes, lending interest rates for export businesses with exchange rates favorable to exporters.

- The State needs to promote attracting foreign investment. In the period of economic integration, investment activities in Vietnam are taking place very actively. In that condition, a favorable legal environment for which the State is responsible is extremely important for investment activities to take place more effectively.

3.4.2 For the State Bank

- International payment is an activity related to many different fields. Therefore, solutions to improve the quality of international payment activities, including international payment activities by documentary credit method, require coordination between macro management agencies, including the State Bank. The State Bank needs to implement an exchange rate policy that is beneficial to importers and exporters, thereby promoting import-export activities and import-export payment activities by L/C method.

- The State Bank needs to develop the interbank foreign exchange market and promote foreign exchange market activities to solve the supply and exchange of foreign currency between banks.

3.4.3 For import-export businesses

- Be careful in choosing partners. Customers need to carefully research their potential partners through partner information from various sources such as newspapers, the internet, banks, Vietnamese representative agencies abroad, and the Vietnam Chamber of Commerce and Industry.

- Enterprises themselves must improve their foreign trade and international payment skills to ensure efficiency when signing foreign trade contracts and self-evaluate the banking services they are using.

- Some practical experiences that import-export businesses in the Vietnamese market need to note:

+ For importers, to reduce risks when opening L/C, it is necessary to monitor the contract, clearly and specifically state the seller's responsibility for delivering and supplying goods, especially the terms of goods, type, quality, and unit price must be concise and clear to avoid the seller intentionally misunderstanding.

+ For exporters, when receiving L/C, it is necessary to promptly detect ambiguous areas, unfavorable terms that are difficult to implement, and terms that are different from the contract, and request immediate amendment of the L/C. When preparing L/C payment documents, follow available scientific templates that are easy to follow and avoid errors.

Above are general solutions and specific solutions to improve the efficiency of import and export payments by letter of credit at ANZ Vietnam Bank.

CONCLUDE



In the current strong trend of international economic integration globally, Vietnam's banking industry is not out of the influence. Any bank that is not equipped with enough human resources, technology, and necessary services will not be able to survive. As analyzed above, although ANZ Vietnam Bank has achieved significant achievements and is a successful example of the Vietnamese banking industry; however, ANZ still has many shortcomings that need to be overcome in the near future.

During my internship at ANZ Vietnam Bank, I have been exposed to the bank's human resources and the bank's operational practices as well as being provided with internal information. Along with the research of specialized documents and additional information in newspapers and the internet, I would like to give some ideas to help promote international payment activities here. Due to limited time and my personal understanding is not comprehensive, I really hope to receive comments from teachers to make this topic more complete.

REFERENCES

Books and textbooks

1. Associate Professor, Dr. Tran Hoang Ngan, Dr. Nguyen Minh Kieu (2007). International Payment, Statistical Publishing House.

2. Prof. Meritorious Artist Dinh Xuan Trinh (2006). International payment textbook in foreign trade , Labor - Social Publishing House, Hanoi.

3. Associate Professor, Dr. Nguyen Van Tien (2007). Handbook of international payment by L/C , Statistical Publishing House.

4. Associate Professor, Dr. Le Van Te, Editor-in-Chief. Commercial Banking Operations , Statistical Publishing House.

5. Vo Thanh Thu (2005). Questions and answers on import and export payments via documentary credit method , Statistical Publishing House.

6. Doan Thi Hong Van (2005). Foreign Trade Engineering Textbook , Statistical Publishing House.

7. ANZ Bank Vietnam (2009, 2010, 2011, 2012, 2013). Annual report, Business performance report, Import-export payment activity report , ANZ Bank Vietnam.

8. Hoang Minh Duong, Nguyen Thua Loc (2005). Business Administration Textbook , Labor - Social Publishing House, Hanoi.

Newspapers and Magazines

9. Nguyen Thuy Linh (2006). Solutions to improve export payment activities at the Transaction Office of the Bank for Foreign Trade of Vietnam , Banking Magazine, (No. 10), pp. 50-55.

10. Lu Kim Ngan (2005). Some ideas to contribute to limiting risks in international payments , Banking Magazine, (No. 3), pp. 44-45.

11. Hong Phuc (2005). Vietnamese enterprises lack experience in international payments.

Economy , Vietnamnet Electronic Newspaper, issue 02/08/2005.

12. MSc. Dinh Thi Thu Hong (2008). Exchange rate - The source of financial risks for enterprises , Economic Development Journal (No. 212 ).

Theses and dissertations from previous courses

13. Nguyen Duc Dung (2010). Perfecting the L/C payment process at Lien Viet Commercial Bank Headquarters , Graduation thesis, Banking University, Ho Chi Minh City.

14. Nguyen Thi Thanh Loan, Phuong Thi Kim Phung (2011). Improving customer satisfaction using services at the Bank for Agriculture and Rural Development of Vietnam, Binh Duong branch , Master's thesis in Economics, University of Economics, Ho Chi Minh City.

15. Group of students from the Faculty of Commerce and Economics (2010). Project on PR planning - Developing customer relationships at ANZ Bank , Hoa Sen University, Ho Chi Minh City.

Source from Internet

16. ANZ Bank Vietnam. Information Center

http://www.anz.com/vietnam/vn/about-us/our-company/media-centre/

17. Trung Hieu. Promoting export activities , April 18, 2014 http://thanglong.chinhphu.vn/Home/Day-manh-hoat-dong-xuat-khau-hang-flower/20144/10968.vgp

18. MSc. Tran Thi Thai Hang. Risk management of international payment methods at foreign trade banks http://donga.edu.vn/LinkClick.aspx?fileticket=H6%2BUT8ToJFg%3D&tabid

=438

19.http://luatminhkhue.vn/quan-tri/ty-gia-%E2%80%93-nguon-goc-rui-ro-tai-government-for-businesses.aspx

APPENDIX A: SURVEY QUESTIONNAIRE

Survey form: “CUSTOMER OPINIONS ON INTERNATIONAL PAYMENT ACTIVITIES AT ANZ BANK VIETNAM”

Hello! My name is Pham Thi Bich Ngoc, currently a final year student at Ho Chi Minh City University of Technology. I am conducting a research project on "Survey of customer opinions on the quality of international payment activities of ANZ Bank Vietnam". I would like to ask you to spend some of your valuable time filling out this survey. Please note that no opinion is wrong, all of your opinions are valuable and contribute to the success of the research. We look forward to receiving your comments.

Thank you very much!

General information

1. .. Name of respondent: ..........................................................................................

2. Gender:  Male  Female

3. Currently working for company, business: ..................................................

................................................................ ................................................................ ..........................

4. Please indicate your business type:

 Production - Business  Trade - Services

 Import and Export  Other

Main content:

Please read each statement carefully and mark an X in the box that best represents your opinion.

Question 1 : Do you have an account at ANZ Vietnam Bank?

 Yes  No