out of the machine
-Discharge the remaining vapor in the air conditioner after removing all the liquid refrigerant.
- Test the air conditioner with air while the refrigerant is still in the
- Discharge the refrigerant naturally
- Too much refrigerant is loaded into the storage tank or recovery tank.
- Charge the refrigerant into the tank only once.
- Replace refrigerant in old system without permission
Devices that limit the escape of refrigerant into the atmosphere should be periodically checked.
as well as repair work to take timely appropriate measures.
A plan to limit the release of refrigerant into the atmosphere is the main way to reduce refrigerant leakage. The complete elimination of leakage can only be achieved by completely stopping the refrigeration systems using CFC refrigerants and replacing them with refrigeration systems using other refrigerants or other types of air conditioners. Therefore, a long-term strategy of utilizing the upgrade of old equipment or replacing with new ones is the basic measure to move towards eliminating the use of CFC refrigerants.
2.5.5. Take advantage of upgrading old equipment and replacing new equipment
The objective of this measure is to eliminate the use of CFCs by upgrading or replacing old refrigeration systems with new refrigeration systems that use refrigerants that do not affect the environment. This measure needs to be analyzed based on the proposed criteria: Is it buying all new equipment that does not use CFCs or upgrading old equipment to use refrigerants that do not contain CFCs?
Refurbishing and upgrading air conditioners requires changing the refrigerant and lubricating oil mixture to another refrigerant and lubricating oil mixture. It requires replacing sealing parts (gaskets, seals, etc.) and unsuitable materials. It may also be necessary to change the lubricating oil system. However, most of the main equipment remains the same. Reusing old equipment mainly falls into the following three categories:
- Reusing old air conditioners and upgrading simply involves changing small parts, removing the refrigerant/oil mixture in use and refilling it into the refrigerant/oil mixture system.
Refrigerant/oil replacement. This is a feasible option for newer equipment. Some gaskets and other materials used in older air conditioners may not be suitable for use with a different refrigerant/oil mixture. The incompatible materials will be replaced during reconditioning. Reconditioning may also require a reduction in efficiency or capacity, which will increase operating costs.
- Optimizing the old air conditioning system can compensate for the reduction in efficiency and capacity caused by the thermodynamic parameters of the new refrigerant due to differences with the old refrigerant. The optimization method is often to change the impeller, the drive mechanism along with providing optimal operation with the new refrigerant. Reusing old equipment can be more complicated when it is necessary to change the heat exchanger to increase the capacity of the system.
- Re-use of equipment and upgrading of traction motor is the replacement of the block with the traction motor inside with a new, re-engineered block. This is one of the most expensive methods and can be used for closed type refrigeration systems due to the material of the old system not being suitable for the new refrigerant/oil mixture.
The cost of reusing CFC refrigerant equipment depends on several factors: Material compatibility, system efficiency, system leakage rate, and drive type.
The decision to reuse or replace equipment should be made on a system-by-system basis. The actual decision to reuse or replace should be made after a financial estimate of the cost of each system has been made. Reducing the amount of refrigerant released to the atmosphere may be a priority for new high-efficiency, low-leakage air conditioners if the cost is acceptable compared to the cost of upgrading older CFC air conditioners. However, when the supply of replacement CFC refrigerant equipment becomes difficult and the cost of purchasing CFC refrigerant becomes prohibitive, replacement of the air conditioner becomes inevitable.
Even if it is possible to reuse or replace an old air conditioner in use, work to control the release of refrigerant into the atmosphere should still be done on the equipment as soon as possible.
All equipment has a certain operating life, after which it will need to be replaced. When new refrigeration systems are more efficient and have lower operating costs than older systems, the savings in operating and maintenance costs due to the new system will justify the early replacement of old equipment. Developing countries will face a shortage of CFC refrigerants in the short term. Reusing existing refrigeration equipment using alternative refrigerants is an option that can continue to exploit such equipment. However, since developing countries are allowed to produce and use CFC refrigerants 10 years later than developed countries, the shortage of CFC refrigerants will not be as severe as in developed countries. Therefore, in developing countries, curbing the use of CFC refrigerants is necessary before replacing old refrigeration systems with new non-CFC refrigeration systems.
2.6. Alternative refrigerant
2.6.1. The media are suspended immediately.
Refrigerants that are immediately suspended are refrigerants with high ODPs, these substances as well as refrigeration systems using these refrigerants are banned from production. Only old refrigeration systems can continue to operate for a while under the condition that there is no refrigerant leakage. Refrigerants needed for repair and maintenance can only be used from discarded systems or systems converted to new refrigerants. These refrigerants will no longer exist on the market. The banned refrigerants are: R11, R12, R13, R113, R114, R115, R500, R502, R13B1
2.6.2. Transient refrigerants
Transitional refrigerants are those that contain little chlorine, have a small ODP and a small GWP. Transitional refrigerants are often called Retrofit or Service Refrigerant. Transitional refrigerants are used during the transition period from old refrigerants to new refrigerants. These refrigerants will be replaced in the next one to two decades. Representatives of transitional refrigerants are R22 and blends containing R22 (Blends) which are HCFCs and HCFC blends.
Table 1.1. Introduction of transitional refrigerants
ASHRAE symbols
Trademark | Manufacturer | Chemical composition or formula |
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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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- | Many companies | CHCLF 2 | |
R123 | - | dupont | CHCL 2 -CF 3 |
R401A | MP39 | dupont | R22, 152a, 124 |
R401B | MP66 | dupont | R22, 125a, 124 |
R409A | FX56 | Elf Atomic | |
R402A/B | HP80/81 | dupont | R22/125/Propan |
R403A/B | 6i/L | Rhome Poulenc | R22/218/Propan |
R408A | FX10 | Elf Atomic | R22, other |
R22
Transitional refrigerants are mainly used to replace banned refrigerants in older refrigeration systems.
2.6.3. Future refrigerants
The refrigerants of the future are chlorine-free, i.e. HFCs. Since they do not contain chlorine, their ODP is zero and the GWP is lower the less fluorine they contain. The refrigerants that have attracted the most attention are R134a, R404a, R407a/b/c and R507. They are considered the refrigerants of the future, replacing R12, R22 and R502. With these new refrigerants, special attention should be paid to the lubricating oil. Mineral oils are insoluble in these refrigerants. Ester oils are more suitable. When converting a refrigeration system to this new refrigerant, it should be noted that the amount of mineral oil remaining in the system should not exceed 1% of the newly charged ester oil.
Table 1.2 shows some of the future chlorine-free refrigerants and their associated refrigerant oils. In addition, R134a, R23, R227 are single components, all the others are mixtures of two or more components.
Table 1.2. Chlorine-free refrigerants and accompanying refrigeration oils
ASHRAE symbols
Trademark | Manufacturer | Ingredients or formula chemistry | Lubricant | |
R134a | Many caves | CH 2 F-CF 3 | POE |
HP62 Reclin 404A FX 70 | Du Pont Hoechst Elf Atomic | R125,143a, 134a (44/52/4%) | POE | |
(R407C) | SUVA 9000 Reclin HX3 Klea 66 | Du Pont Hoechst ICI | R32, R125, R134a | POE |
(R410A) | AZ20 | Solvay, Allied Signai | R125, 32 | POE |
(R410B) | SUVA 9100 | Du Pont | ||
R507 | Reclin 507 AZ 50 | Hoechst Solvay, Allied Signal | R125, R143a (50/50%) | |
- | Reclin HX4 | Hoechst | ||
(R407 A/B) | Klea 60/61 | ICI | A 40% 20% 40% R125, 32, 134a B 70% 10% 20% | POE |
R600a/R290 | Izobutan/Pro pam | |||
R23 | Reclin23 | Hoechst | CHF 3 | |
R227 | Reclin227 | Hoechst |
R404A
The mixtures can be isoboiling, near isoboiling or non-isoboiling with a sliding temperature of boiling and condensing at constant pressure. The mixtures mainly consist of R134a, R125, R32, Propane, which will produce thermodynamic parameters close to R12, R22 and R502 to replace these refrigerants in old and new refrigeration systems.
2.6.4. Natural refrigerants
In contrast to refrigerants that can only be produced by artificial synthesis, natural refrigerants exist in nature. They
do not destroy the ozone layer and have virtually no greenhouse effect. Ecologically, they are non-polluting substances.
However, due to other disadvantages such as explosion, toxicity or high pressure, their applications are limited. Representatives of this group are CO 2 (R744), NH3 (R717), Propane (R290) and butane (R600)... They are being researched to expand their applications as future refrigerants.
2.6.5. Some important substitutes
2.6.5.1. General properties
Introduction to the properties of banned refrigerants and some of the most important substitutes for them Table 1.3
Table 1.3. Important refrigerants
Medium
Replace for | Temperature range | ODP (R11=1) | GWP (CO 2 = 1) | PRC (CH 4 = 1) | Temperature slip,K | Toxicity TLV,ppm | |
Prohibited refrigerants | |||||||
R11 | C | 1.0 | 3500 | x | 0 | 1000 | |
R12 | C,M,(F) | 1.0 | 7100 | X | 0 | 1000 | |
R502 | (C),M,F | 0.23 | 4300 | X | 0 | 1000 | |
Refrigerant overload | |||||||
R22 | R11 | C,M,F | 0.05 | 1600 | x | 0 | 1000 |
R123 | 0.02 | 70 | x | 0 | 30 | ||
Non-co-boiling blends with R22 (Retrofit Blends) | |||||||
R401a | R12 | C,M | 0.03 | 1025 | X | 6.4 | 800 |
R410b | R12 | F | 0.035 | 1120 | x | 6.0 | 840 |
R409a | R12 | M | 0.05 | 1340 | x | 8.1 | x |
Future refrigerant (chlorine-free) | |||||||
Blends
R12(R22) | C,M(F) | 0 | 1200 | 0 | 0 | 1000 | |
R404a | R502 | M,F | 0 | 3520 | 0 | 0.7 | 1000 |
R407a | R502 | M,F | 0 | 1960 | x | 6.6 | 1000 |
R407b | R502 | M,F | 0 | 2680 | x | 4.4 | 1000 |
R407c | R22 | C,M | 0 | 1600 | 0 | 7.4 | 1000 |
R507 | R502/R22 | M,F | 0 | 3600 | x | 0 | 1000 |
Natural refrigerant | |||||||
R209 | R22/R502 | C,M,F | 0 | 0 | 300 | 0 | 1000 |
R600a | R12 | C,M,F | 0 | 0 | 400 | 0 | 1000 |
R717 | R22 | C,M,F | 0 | 0 | x | 0 | 50 |
R134a
X- Unknown; C- Conditioning mode; M - Medium cooling mode.
– Cooling); F- Freezing mode. Toxicity limit Value (TVL; Allowable toxicity limit – ppm (part per million) or AEL (Acceptale exposure Limit)
- The application temperature range for each refrigerant is different because only within that temperature range structure can the refrigerant achieve high temperature efficiency. There are refrigerants that can be used for all three modes C, M, F but there are refrigerants that are effective for only one mode, for example R11, R410b...
- Temperature drift is the temperature shift or condensation of a mixture of two or more non-iso-boiling refrigerants at constant pressure. For example, when evaporating at constant pressure, R409a has an initial boiling point of t0, and the end of the evaporation process has a boiling point of t0 + 8.1K. The vapor produced at the beginning of the evaporation process, the concentration of the more volatile substance is maximum, then gradually decreases and reaches a minimum at the end of the evaporation process. This condition is disadvantageous when the system leaks, because the loss of volatile substances is greater than that of less volatile substances. After a while, the required concentration of the mixture in the system will be deviated. This does not happen with iso-boiling mixtures such as R507 or is unlikely to happen with boiling mixtures such as R404a (temperature drift is only 0.7K)
The choice of a suitable alternative refrigerant depends on several factors. First of all, the age and condition of the refrigeration system in use, then the ability to
Clean the system from old lubricating oil is mineral oil, the ability to replace automatic devices, throttle... In fact, the following alternative refrigerants can be used:
+ R11 – No suitable replacement refrigerant has been found. Du Pont introduced R123 but it has not been widely accepted, but perhaps R123 is the only transitional refrigerant to replace R11 in turbine air conditioners.
+ R12 – Replaces R123a, R401a/b, R409a
+ R502 – Replace with 402a/b, R403b, R408a, R404a, R407a/b, R507,
R290
+ R22 – Replace with R407c, R507, R717, R290
+ R134a – R134a is the first refrigerant with ODP = 0 to be commercialized.
and has been produced for 20 years. R134a is used to replace R12 in high and medium temperature ranges, especially in car air conditioners, general air conditioners, dehumidifiers and heat pumps. At low temperatures, R134a does not have favorable properties, its energy efficiency is very low so it cannot be applied. R134a has a global warming index GWP of 90% of R12 and also has many properties similar to R12 such as
- Non-flammable
- Non-toxic, no adverse effects on living organisms
- Relatively stable chemically and thermally
- Has good properties with machine-made metals
25
- Has suitable thermodynamic and physical properties



![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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zt2a3gsnon-credit services, joint stock commercial bank
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At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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