- All kinds of anti-collision cushions, wharf cushions, rubber roller shafts, soft rubber tanks for storing oil of all kinds.
- Power cables, control cables with copper core and rubber sheath; all kinds of ladder belts.
- Car tires and tubes, solid tires for defense and economy.
- Standard conveyor chains; Standard flanges; Standard bolts; Hydraulic shafts and cylinders; Spiral bevel gears, spur gears, bevel gears; Gear boxes; Agricultural machinery spare parts.
2. Main business lines of KTQP enterprises operating in the field of construction and building materials (including 14 enterprises)
Maybe you are interested!
-
State Management Viewpoints on Defense Economic Enterprises -
Current State Management of Capital and Assets at Defense Economic Enterprises -
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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Current Status of State Management Activities for Tourism Enterprises in Hanoi -
State management of enterprises in Hanoi city - 1
- Construction of road and railway traffic works, road bridges, railway bridges, airports, stations, ports, and signal information systems;
- Construction of hydraulic works, dykes, dams, reservoirs, irrigation systems;

- Construction of hydroelectric projects, construction of power transmission lines and transformer stations;
- Construction of industrial and civil works, water supply and drainage works, public works, urban and industrial park infrastructure; interior and exterior decoration of construction works; investment in infrastructure development and housing business;
- Consulting, surveying, construction design; installation of construction equipment, production lines, fabrication and installation of steel structures;
- Road and river transport;
- Production and trading of construction materials, concrete components; equipment, spare parts, construction supplies;
- Gasoline dealer;
- Maintain, embellish, repair and upgrade conservation works, museums and historical relics;
- Construction and installation of optical fiber cables (postal and telecommunications projects).
3. Main business lines of KTQP enterprises operating in the fields of trade and services (including 12 enterprises)
- Port and warehouse services;
5
- Construction and repair of hydraulic works, industrial and civil works (wharfs, ports, slipways, docks, warehouses);
- Transit port; open port;
- Road and river freight transport services, ship towing,
- Dredging and rescue services at sea and on rivers;
- Freight forwarding services;
- Ship supply services;
- Export production: wooden products, handicrafts, all kinds of paintings and statues: lacquer, silk, embroidery on fabric, wood carvings; garments...;
- Export: agricultural, forestry , aquatic products, rattan, wood, footwear, cosmetics, consumer goods, cereals, garments...;
- Import: materials, machinery and equipment for production, chemical products, consumer goods, motorbikes, etc.;
- Processing, assembling, maintaining electronic machinery, refrigeration, consumer goods, handicraft products, garments, labor cooperation services and sending students for training and self-funded study abroad...
- Production and trading of preservation materials, environmental protection, chemicals, and pesticides;
- Production of biological products, application and technology transfer from research results of the Tropical Center;
- Production and trading of construction materials;
- Import and export products, materials and equipment serving the production of products that the Company is permitted to produce;
- Construction of water supply, wastewater and waste treatment facilities;
- Production of raw materials and supplies for preserving grease;
- Installation, operation and repair of electromechanical equipment;
- Trade (buying and selling production materials, supplies, raw materials for production, machinery, equipment and spare parts for production, means of transport, consumer goods, parking services and space rental).
6
4. Main business lines of KTQP enterprises operating in the fields of agriculture, forestry and seafood (including 8 enterprises)
Fishery logistics services; Aquaculture and seafood exploitation; Ship mechanical repair; Maritime transport; Oil and gas services; Planting, caring for, exploiting, purchasing and processing coffee and rubber; Forestry exploitation and processing; Mineral exploitation; Non-ferrous metallurgy industry; Construction of traffic roads and forestry roads; Forest planting and maintenance (including business);
5. Main business lines of KTQP enterprises operating in the fields of electricity, electronics, and telecommunications (including 6 enterprises)
Providing telecommunications services; Transmission; Postal; Distribution of terminal equipment; Communications; Production and trading of materials, components, electronic equipment, refrigeration, specialized and civil electrical appliances, industrial gases, motorbike assembly; Electronic engineering services, information technology, communications, power networks (lines and stations); receiving electronic technology transfer.
6. Main business lines of KTQP enterprises operating in the textile, garment and footwear sectors (including 3 enterprises)
- Weaving - Dyeing - Printing - Sewing, exporting textile and garment products manufactured by enterprises;
- Manufacturing and processing mechanical products and all kinds of tents;
- Production and trading of industrial garments;
- Garment industry, production of fabric shoes, leather shoes, plastic industry;
- Export of footwear and garment products;
- Import machinery, equipment, supplies and raw materials for production.
7. Other industries (5 enterprises)
- Food, beverage, pharmaceutical
- Handicrafts, fine arts, wooden furniture
7
APPENDIX 2-2
Results of converting KTQP enterprises by 2010
Economic and technical enterprises transformed into 100% state-owned LLCs: including 17 enterprises
1. Truong Son Construction Corporation; 2. Construction Company 384; 3. Construction Company 99; 4. Construction Company 470; 5. Company 472; 6. Foreign Service Company; 7. Construction Company 319; 8. Van Tuong Company; 9. Aviation Construction Company; 10. Military Telecommunications Group; 11. Dong Bac Corporation; 12. Lung Lo Construction Company; 13. Thao Son Company;
14. Thanh An Corporation; 15. Hung Vuong One Member LLC; 16. Lung Lo 3 One Member LLC; 17. 319-3 One Member LLC.
Economic and technical enterprises converted their operating model to parent company-subsidiary company: 12 enterprises
1. Vietnam Service Aviation Corporation; 2. Corporation 15; 3. Military Telecommunications Group; 4. Truong Son Construction Corporation; 5. Company 622; 6. Technical Application and Production Company; 7. Phuong Nam Company; 8. Defense Industry Materials Company; 9. Construction Company 319; 10. Van Tuong Company; 11. Aviation Construction Company; 12. Lung Lo Construction Company
Economic and technical enterprises implementing equitization: 12 enterprises
1. Viet Bac Company; 2. Tay Bac Company; 3. Company 17; 4. Company 532;
5. Construction Design Consulting and Survey Company; 6. Chemical Informatics Electronics Company; 7. Truong Thanh Company; 8. Technology Investment and Development Consulting Company; 9. Construction Company 789; 10. Company 59; 11. Pharmaceutical and Military Pharmaceutical and Medical Equipment Company; 12. Dong Tan Company
Merged KTQP enterprises:
8
- Song Hong Company merged into Construction Company 319;
- Textile Company 7 merged into Dong Hai Company;
- Company 404 merged into Company 622;
- Company 621 merged into Company 622;
- Xuan Khanh One Member LLC merged into Company 622;
- Production and Service Company merged into Military Printing Factory 2
- Construction Company 394 merged into Thai Son Company.
Dissolved KTQP enterprises: 3 enterprises
They are: 1) Eastern Construction Company; 2) Eastern Investment Company; and
3) Minh Thanh Company.
Economic and technical enterprises transferred to dependent accounting : Number: 2, including: 1) Company 53, dependent accounting of Truong Son Construction Corporation; and
2) Company 711, accounting dependent on Corporation 15.
Bankrupt KTQP enterprises : Number: 1. Construction Company 56.
9
APPENDIX 2-3
Tax Magazine
The establishment of the Large Enterprise Tax Management Department (General Department of Taxation), with the main function of directly organizing tax management for large enterprises, on the one hand creates expectations for enterprises that they will receive attention and timely removal of obstacles from the tax authorities, supporting these enterprises more actively and effectively, thereby contributing more to the budget, but at the same time, there are concerns that they will be "in a double bind" due to being under the management of both the local tax department and the Large Enterprise Tax Management Department. The General Department of Taxation, Ministry of Finance has issued Decision 856/QD-BTC on announcing the list of enterprises under the General Department of Taxation's direct organization of tax management (including Viettel Military Telecommunications Group).
At the conference of the Ministry of Finance in dialogue with large enterprises on tax policy, organized by the Ministry on June 19, 2010 in Hanoi, enterprises expressed many concerns: The Deputy General Director of Petrolimex shared that with business areas spread across 63 provinces and cities, each locality has certain business characteristics. Even the same tax problem occurs in different localities, but the Tax Department of each locality has a different way of handling it. This has caused many difficulties for enterprises in their operations. Now Petrolimex is under the direct management of the General Department of Taxation. If tax authorities at all levels do not have a clear and smooth coordination mechanism with each other, it is easy for enterprises to face new complications arising in the process of registration, declaration, and tax settlement. Sharing the same concern, a representative of Viettel Group said: management activities, especially the inspection and examination work of tax authorities in recent times, have revealed many shortcomings, causing enterprises to spend a lot of effort and time in the process of complying with tax regulations. Therefore, along with clarifying the coordination mechanism between the General Department of Taxation and the provincial Tax Departments in tax management of large enterprises, tax authorities need to announce to enterprises the inspection and examination plan.
10
periodically, to avoid trouble for businesses... Even when there is a clear coordination mechanism between the General Department of Taxation and the Provincial Tax Departments, there is still a rather sensitive issue that makes businesses worried. That is, for a long time they have declared and paid taxes in the provinces and cities, so they have more or less contributed to the local budget. Now, implementing the new tax management mechanism, they have to deal with another "one-stop shop" at the General Department of Taxation, causing businesses to spend more time and effort in the process of fulfilling their tax obligations...
In response to concerns of enterprises, the Large Enterprise Tax Management Department reassured: The General Department of Taxation will implement regulations on direct tax management for 35 corporations and general companies in a way that ensures minimizing problems that may arise for enterprises. In the immediate future, these enterprises will continue to register, declare, pay and settle taxes directly with the Tax Departments of provinces and cities. The General Department of Taxation will carefully study before issuing instructions on the Regulations on coordination between the Large Enterprise Tax Management Department and the Tax Departments of provinces and centrally run cities in directing and managing taxes for enterprises on the List issued with Decision 856/QD-BTC, ensuring convenience for enterprises and avoiding overlap. The Ministry of Finance believes that, in addition to the goal of helping to improve management and budget collection, a major goal when the Ministry of Finance decided to establish the Large Enterprise Tax Management Department is to more effectively support large enterprises in fulfilling their tax obligations. This idea is based on the fact that large enterprises make important contributions to the state budget and operate in many sectors and fields, so they need a special tax management mechanism to support them in more effective production and business.
11



![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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