THESIS:
Thanh Hoa Social Insurance
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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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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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Initial Research Model on Factors Affecting the Internal Control System on Social Insurance Collection -
Current voluntary social insurance participation of workers in Doan Hung district, Phu Tho province - 15

Introduction
1. Urgency of the topic
Social insurance policy is one of the important policies in the social security policy system of countries around the world. In Vietnam, the Party and the State pay great attention to the field of social security in general and the field of social insurance in particular. Social insurance policies are always innovated, in line with the socio-economic development of the country, contributing to ensuring the lives of workers, stabilizing society, and promoting economic development.
Thanh Hoa Social Insurance is an agency under the Vietnam Social Insurance system. Thanh Hoa Social Insurance is the agency directly organizing the implementation of social insurance regimes and policies for employees in Thanh Hoa province.
However, in addition to the basic successes, the management and decentralization of social insurance revenue and expenditure management in Thanh Hoa still have issues that need attention. District-level social insurance is strongly decentralized in management, but they are not provided with adequate conditions to implement that decentralization. For example, the staff of social insurance officers and civil servants is still lacking, and the facilities and technical conditions are still difficult....
2. Research status of the topic
There have been many research works by domestic and foreign authors related to the topic. These works can be grouped into the following two groups:
National research topics:
- Doctoral thesis of author Do Van Sinh: " Improving the management of social insurance funds in Vietnam " in 2005.
- Doctoral thesis of author Nguyen Kim Thai: " Strengthening state management by law for current social insurance activities in Vietnam " in 2005.
- Master's thesis of author Tran Quoc Tuy: " Improving the management of social insurance collection in the non-state sector in Vietnam " in 2006.
Research topics within Thanh Hoa province
- Master's thesis of author Nguyen Van Tam: " Improving social insurance management in Thanh Hoa province " in 2004
- Industry-level topic of author Do Quang Hieu: " Current situation and solutions for managing payment of long-term social insurance regimes in Thanh Hoa province " in 1999 and " Research on social insurance revenue and expenditure model at commune, ward and remote areas in Thanh Hoa province " in 2000.
The above research works have clarified many issues on the theoretical and practical basis of social insurance, studying many different aspects of social insurance both at the macro and micro levels. The doctoral thesis of author Do Van Sinh studies the issue of social insurance fund management. The doctoral thesis of author Nguyen Kim Thai studies the issue of state management of social insurance activities. The master's thesis of author Tran Quoc Tuy studies the field of social insurance revenue management in non-state enterprises in Vietnam. The two industry-level topics of author Do Quang Hieu study the perspective of long-term payment management and study of social insurance revenue and expenditure models at commune, ward and remote areas in Thanh Hoa province. The master's thesis of author Nguyen Van Tam studies the issue of social insurance management in Thanh Hoa province in the period 1995-2003. However, these studies were conducted in the context of social insurance policies being developed and implemented according to the Charter issued by the Government, and not yet supplemented or amended according to the provisions of the current Law on Social Insurance. Many urgent issues arising in the management of social insurance revenue and expenditure in the new period have not been resolved in the above works. On the other hand, decentralization of social insurance revenue and expenditure management is a new issue, related to the functions, tasks and powers of each management level in the social insurance system. However, up to now, there has been no research on this issue. However, these works are still very valuable reference materials in the research of this topic.
3. Purpose and research tasks of the thesis
The purpose of the thesis is to contribute to clarifying the theoretical basis of management and decentralization of social insurance revenue and expenditure management. Assessing the current situation of this issue in Thanh Hoa province.
Chemistry. On that basis, propose solutions to improve the decentralization of social insurance revenue and expenditure management in Thanh Hoa province.
To achieve the above purpose, the thesis has the following tasks :
- Systematize and clarify the theoretical basis for management and decentralization of social insurance revenue and expenditure management.
- Analyze and evaluate the current status of management and decentralization of social insurance revenue and expenditure management in Thanh Hoa province.
- Proposing solutions to improve the decentralization of social insurance revenue and expenditure management in Thanh Hoa province to meet the requirements of the new period.
4. Research object and scope
- Thesis researches on decentralized management of social insurance revenue and expenditure.
- The scope of the thesis is to study the decentralization of social insurance revenue and expenditure management in Thanh Hoa province. In terms of time, the thesis studies the decentralization of social insurance revenue and expenditure management in Thanh Hoa from 1995 to present, in which the research focuses on the period 2003 - 2007. The data are updated to 2007.
- In addition to dialectical materialism and historical materialism, which are methods used in scientific research in general, the thesis also focuses on using theoretical research methods and practical summary; analysis, synthesis, deduction, induction; systematization, comparison, investigation, and statistical methods based on synthesized data, reports, and investigations on the socio-economic situation and social insurance activities in Thanh Hoa province.
6. New contributions of the thesis
- The thesis contributes to systematizing and clarifying basic theoretical issues on management and decentralization of social insurance revenue and expenditure management.
- Clarify the content of decentralization of social insurance revenue and expenditure management at the provincial level.
- Assess the current status of decentralization of social insurance revenue and expenditure management in Thanh Hoa province, clearly indicating the results, limitations and main causes of that situation.
- Propose solutions to improve the decentralization of social insurance revenue and expenditure management in the coming time, including the proposal to decentralize social insurance revenue and expenditure management to the commune, ward and town levels in Thanh Hoa province.
7. Structure of the thesis
The thesis consists of 95 pages. In addition to the introduction, conclusion, list of references and appendix. The thesis is structured into 03 chapters and 07 sections.
Chapter 1
the basics
on social insurance management and decentralization
1.1. Social insurance management
1.1.1. Some concepts
* Concept of social insurance management.
First of all, let's talk about the concept of social insurance. The Law on Social Insurance passed by the 11th National Assembly of the Socialist Republic of Vietnam on June 29, 2006 has determined: " Social insurance is a guarantee to replace or partially compensate the income of employees when they have reduced or lost income due to illness, maternity, work accidents, occupational diseases, unemployment, retirement age or death, based on contributions to the Social Insurance Fund" [33, p.10].
Thus, social insurance is a form of protection for workers based on the use of contributions from workers, employers and state funding to provide material support to social insurance payers, in case they have reduced or lost income, or die according to the provisions of law. Therefore, social insurance has the following basic characteristics:
Firstly , social insurance is insurance for workers during and after the working process.
Second , the risks of workers related to their income such as illness, maternity, work accidents, occupational diseases, unemployment, old age, death. Due to these risks, workers have reduced or lost their income. They need to have other sources of income to stabilize their lives. This is the most basic feature of social insurance.
Third, employees who want to be entitled to social insurance benefits must have the obligation to pay social insurance. Employers must also be responsible for paying social insurance for employees they manage, hire, and use. That contribution is called the contribution of the parties participating in social insurance. It forms a financial fund called the social insurance fund. This fund is used to pay benefits when there is a need to enjoy social insurance benefits.
Fourth, social insurance activities are carried out within the framework of the law. Social insurance regimes are also regulated by law. The State sponsors social insurance activities.
Social insurance is a form of insurance implemented in all countries and the State in all countries participates in social insurance management. So what is social insurance management?
Social insurance management can be defined in many different ways. Based on the application of the general management concept to the field of social insurance, we can define the concept of social insurance management as follows: Social insurance management is the impact of the management agency on social insurance activities to achieve the goals set in each period.
The management agency (management entity) of social insurance management is the Vietnam Social Insurance agency from the central to local levels. According to Decree No. 19/CP, dated February 16, 1995 of the Government on the establishment of Vietnam Social Insurance, the social insurance management agency at the central level is Vietnam Social Insurance. At the local level, the social insurance management agency has the social insurance of provinces and centrally run cities, social insurance of districts, towns and provincial cities. At the commune, ward and town level, there is no social insurance management agency but only a payment representative board authorized by the social insurance management agency of districts, towns and cities to manage the payment of social insurance benefits to beneficiaries of social insurance benefits in the commune, ward and town.
The subjects of social insurance management are social insurance activities, the subjects participating in and enjoying social insurance regimes. These are employers and employees themselves.
The goal of social insurance management is to protect workers from work hazards, contributing to ensuring the stability and development of the whole society.
The social insurance management mechanism includes regulations on the organization of social insurance collection and payment, regulations on inspection and control of the implementation of social insurance policies and regimes.
* Distinguish some concepts .
State management of social insurance is the impact of state agencies on the social insurance sector to achieve the goals set by the state in each specific period.
Social insurance management and state management of social insurance are distinguished in the following five points:
Firstly , unlike the social insurance management entity, the state management entity on social insurance includes many agencies such as the National Assembly, the Government, the Ministry of Labor, War Invalids and Social Affairs, ministries and ministerial-level agencies related to the social insurance sector, and provincial and district People's Committees. The social insurance management entity is the social insurance agency. At the central level, Vietnam Social Insurance is under the direct direction of the Prime Minister; the state management of the Ministry of Labor, War Invalids and Social Affairs and relevant state management agencies, and the supervision of trade union organizations. At the local level, the social insurance management agency is under the direct vertical direction of Vietnam Social Insurance and the state management of People's Committees at all levels (provinces and districts).
Second , the subject of state management of social insurance is the social insurance sector, and the subject of social insurance management is social insurance activities, the participants and beneficiaries of social insurance regimes and policies. Thus, it can be seen that the subject of state management of social insurance has a much broader scope than the subject of social insurance management. The subject of social insurance management and social insurance agencies are also subject to state management of social insurance.
Third , the goal of state management of social insurance is to create a solid legal basis, creating fairness and equality for all workers in all economic sectors to exercise their rights and obligations when participating in social insurance relations, achieving the goals of socio-economic development, social security and political stability. The goal of social insurance management is to build and form a stable and solid social insurance fund based on the contributions of social insurance participants, invest in the growth and development of the social insurance fund; promptly pay social insurance benefits to social insurance beneficiaries and serve the socio-economic development goals of the country.
Fourth, the state management mechanism on social insurance includes laws related to social insurance, strategies, plans, and social insurance policies and regimes. The social insurance management mechanism includes regulations on the organization of social insurance collection and payment, regulations on inspection and control of social insurance collection and payment.
Fifth , the content of state management of social insurance includes seven main contents:
i) Develop and organize the implementation of social insurance strategies, regimes and policies;
ii) Promulgate and organize the implementation of legal documents on social insurance;
iii) Disseminate and popularize social insurance policies and laws;



![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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