Chapter 3
ORIENTATION AND SOLUTIONS TO IMPROVE MANAGEMENT
STATE TOURISM IN CHIEM HOA DISTRICT, TUYEN QUANG PROVINCE
3.1. Viewpoints and orientations for tourism development
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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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The Incompleteness of the Party and State's Viewpoints and Policies for Buddhism to Participate in Environmental Protection
3.1.1. The Communist Party of Vietnam's viewpoint on tourism development
Over the past 60 years, Vietnam's tourism industry has made many positive contributions to the country's development, which have been recognized by the Party and the State. Tourism is considered a comprehensive service economic sector and its growth has had a spillover effect on many other sectors and fields; creating economic restructuring, boosting exports, contributing to hunger eradication, poverty reduction, improving living standards, improving the appearance of urban and rural areas; preserving and promoting national cultural values; ensuring security and national defense, maintaining a peaceful and friendly environment, enhancing understanding and raising the country's position in the international arena.

Recognizing that tourism development will promote national advantages, the Party and the State have had many policies to promote the development of this sector in economic and social development orientations. In 1991, the Resolution of the 7th National Party Congress identified tourism as an important economic sector that could develop into a spearhead economic sector in the national economic structure and that viewpoint continued to be affirmed throughout the 8th, 9th and 10th Party Congresses. In 1994, the Politburo issued Directive No. 46-CT/TW on tourism development in the new situation. In 1998, the Politburo continued to issue Conclusion Notice No. 179-TB/BCT on focusing on promoting tourism development commensurate with the country's potential.
In particular, the content stipulated in the Resolution of the 12th National Party Congress in 2016: “There is a policy to develop tourism into a spearhead economic sector. Encourage economic sectors to invest in tourism development with a synchronous, modern infrastructure system, diverse products and high professionalism. Create all favorable conditions for entry and exit procedures, travel and ensure safety,
security. Promote, advertise and build the Vietnamese tourism brand. Effectively and sustainably exploit cultural and natural heritages, historical sites, scenic spots and maintain environmental hygiene. Develop large-scale, high-quality complex tourism service areas” [2].
The strong policy on tourism development has been truly focused on and raised to a new level in Resolution No. 08-NQ/TW of the Politburo on developing tourism into a spearhead economic sector, signed and issued by the General Secretary on January 16, 2017. This is the first time the tourism industry has received comprehensive and profound direction from the Party leadership through the Resolution of the Politburo, demonstrating the highest determination of the Party leadership in developing tourism into a spearhead economic sector of the country.
With the task of socio-economic development in the new context, solving the problem of tourism development in the economic - cultural - environmental relationship, soon bringing Vietnam into the ranks of countries with developed tourism in the region, in the condition that our country's tourism is still in the early stages of development is a big problem, requiring the choice of an appropriate approach. Resolution 08 clearly stated the determination that "Developing tourism into a spearhead economic sector is an important strategic orientation for national development, creating a driving force for the development of other sectors and fields" and affirmed that this "is the responsibility of the entire political system, all levels, all sectors, and the whole society, with close leadership and direction of Party committees at all levels; strongly promoting the driving role of enterprises and communities, unified management of the State; focusing national resources on tourism development" [5].
Resolution No. 19/NQ-CP dated May 15, 2018 of the Government on continuing to implement key tasks and solutions to improve the business environment and enhance national competitiveness in 2018 and the following years. In particular, the content on tourism is mentioned in the Resolution with the following contents: "Research and develop key tourism products such as sea tourism, cultural tourism, eco-tourism; position highly attractive beach resort destinations; Strengthen training and development of tourism human resources, including human resources
management, administration and vocational labor; Developing tourism infrastructure, high-quality accommodation facilities and improving the quality of tourism services; Developing sustainable tourism; Strengthening tourism promotion and advertising; Improving the effectiveness of state management of tourism; Researching and proposing improvements to visa regulations" [10].
These guiding viewpoints are the compass for the entire political system to be determined to develop the tourism industry, contributing to promoting economic restructuring and on-site export; preserving and promoting the value of cultural heritage and natural resources; creating more jobs, improving people's lives; accelerating the process of international integration, promoting the image of the country and people of Vietnam.
3.1.2. Orientation and goals for tourism development of Tuyen Quang province to 2030
Resolution 17/ND-HDND 2012 approving the Master Plan for tourism development of Tuyen Quang province to 2020 and orientation to 2030 as follows:
3.1.2.1. Orientation
- Developing tourist market: Welcoming domestic and foreign tourists
- Developing forms of tourism: Cultural and historical tourism, eco-tourism, resort tourism, service tourism associated with urban areas and other forms of tourism such as high-end sports tourism, entertainment tourism...
- Organizing tourism development space
- Developing tourist attractions and tourist routes
3.1.2.2. Objectives
- By 2020, welcome over 1,695,000 visitors; by 2030, welcome over
3,678,000 visitors
- Total revenue from tourists: By 2020, it will reach over 2,731.23 billion VND; by 2030, it will reach nearly 11,268.18 billion VND.
- Accommodation facilities and tourism infrastructure: By 2020, there will be 115 hotels meeting 1-star standards or higher, of which at least 10 hotels will meet 3-star standards or higher; by 2030, there will be over 180 hotels meeting 1-star standards or higher, of which at least 20 hotels will meet 3-5 star standards.
- Labor and employment: In 2020, create jobs for 20,400 workers; by 2030, create jobs for about 48,000 workers.
- Tourism investment: Mobilize all capital sources from economic sectors, State budget capital and other legal capital sources: 2016 - 2020 period needs 4,496 billion VND; 2021 - 2030 period needs 23,903 billion VND.
- By 2030, the province strives to have 2 tourist areas meeting national standards.
3.1.3. Orientation and goals for tourism development of Chiem Hoa district, Tuyen Quang province to 2030
3.1.3.1. Orientation
The orientation of tourism development in Chiem Hoa in the period of 2020 - 2030 is shown through the following contents:
- Upgrade infrastructure, areas with potential for tourism development. Create high-quality, diverse, branded tourism products, imbued with local cultural identity, competitive with other districts in the province and the northern mountainous region.
- Tourism development increasingly accounts for a high proportion in the District's GDP structure.
- Increase investment in tourism infrastructure commensurate with the potential and orientation of tourism development to become a spearhead economic sector.
- Diversify tourism products to help exploit the potential of nature, culture, local historical traditions, and protect the environment.
3.1.3.2. Objective
The Resolutions of the 15th and 16th Provincial Party Congresses of Tuyen Quang for the period 2010 - 2020 both identified tourism as one of the breakthrough sectors and set the goal of becoming an important economic sector of the province. It is estimated that by 2020, it will attract over 2.2 million tourists, total tourism revenue will reach over 6% of GRDP, creating jobs for over 16,000 tourism workers.
Immediately after the Resolution of the 16th Provincial Party Congress, relevant levels and sectors identified: In order for Tuyen Quang tourism to truly become a spearhead economic sector, there must be drastic solutions in attracting large enterprises to invest in tourism development.
In 2018, the province continued to effectively implement the Master Plan for tourism development in Tuyen Quang province to 2020 and orientation to 2030; Conclusion No. 28 KL/TU dated May 18, 2016 of the Provincial Party Standing Committee on tasks and solutions for tourism development in the period 2016 - 2020; Plan No. 51/KH-UBND dated June 23, 2016 on tourism development in the period 2016 - 2020; Action Program of the Provincial Party Executive Committee to implement Resolution No. 08-NQ/TW of the Politburo and Plan of the Provincial People's Committee to implement Action Program No. 15-CTr/TU dated June 27, 2017 of the Provincial Party Standing Committee to implement Resolution No. 08-NQ/W dated January 16, 2017 of the Politburo on developing tourism into a spearhead economic sector.
With the same spirit, Chiem Hoa District has set a goal that by 2020, the district will attract 200,000 tourists, increasing by 10% each year, of which foreign visitors will reach the target of 20% [40]. To achieve that goal, the District also focuses on attracting investment, building tourism infrastructure, especially traffic infrastructure; building local tourism products, in which unique and distinct products are identified.
3.2. Solutions to improve state management of tourism in Chiem Hoa district
3.2.1. Organize the implementation of the legal policy system and improve the capacity to enforce legal policies on tourism development in the area.
Firstly, organize the implementation of the system of policies and laws for tourism development in Chiem Hoa district.
The development of policies and laws for tourism development in Chiem Hoa district is carried out by competent authorities. Organizing and implementing the system of policies and laws helps create a suitable legal corridor, improving the quality of the institutional system, legal policies - the most important basis for entities to carry out management and operation as well as for state management objects to comply in an objective, unified and convenient manner.
- Regularly summarize and evaluate the implementation of tourism policies, laws, and plans in the District to get an overview of the policies and their impacts on tourism development and the local socio-economic life. From there, draw lessons from advanced models as well as from limitations and weaknesses.
- Systematize policies and laws on tourism development, put them in correlation with cultural and environmental policies as well as socio-economic development policies of regions and localities. Systematize and review all policies and legal documents of the State on tourism development to have a comprehensive view, based on considering the systematicity, legality and rationality of the policies to propose new policies that need to be issued, outdated and inappropriate regulations that need to be amended or abolished. This is especially important for these policies to keep up with the development and requirements of tourism development, becoming a factor promoting and supporting tourism development in Chiem Hoa district.
- Continue to perfect appropriate and breakthrough mechanisms and policies to develop tourism into a spearhead economy, meeting the requirements and nature of a comprehensive economic sector operating under a market mechanism. Issue mechanisms and policies to mobilize maximum social resources to invest in tourism development in the direction of restructuring the tourism industry. Ensure legal consistency, contribute to creating an open legal corridor, and promote tourism development. It is necessary to focus on the following policies:
+ Regarding investment, issue policies to encourage and provide incentives for investment in tourism, especially in key areas, remote areas with tourism potential, unique tourism products, and training and development of tourism human resources.
Strengthen public-private partnership to mobilize social resources for tourism development. Conduct bidding for construction, use and development of tourism resources in the form of public-private partnership (PPP).
Tuyen Quang province and Chiem Hoa district need to prioritize capital allocation for planning, human resource training, and tourism promotion.
+ Regarding tourism infrastructure development, developing tourism infrastructure, high-quality accommodation facilities and improving the quality of tourism services.
Continue to review and build a system of toilets, rest stops, restaurants, and shopping facilities to ensure service requirements for tourists.
Enhance connectivity and ensure quality consistency in the tourism product supply chain.
Standardize and control the quality of products, services, conditions and facilities for tourism, ensuring safety, security, environmental sanitation and sustainable development.
Research and develop key tourism products such as cultural, historical, and eco-tourism; position high-end resort destinations. Expand the development of new, potential tourism products such as community tourism, adventure tourism, medical tourism, entertainment tourism, event participation, art performances, etc.
+ Regarding finance, convert the sightseeing fee mechanism to a service price mechanism; adjust the electricity price applied to tourist accommodation establishments to be equal to the electricity price for production; have appropriate policies on land use tax and land rent for tourism projects with low land use coefficient for construction and height restrictions.
Establish and have a mechanism for managing and effectively using the Tourism Development Support Fund. The State budget initially supports the Fund and is supplemented annually from revenue from entry visa fees, tourist fees, contributions from businesses, tourists and other legal sources.
+ Regarding entry procedures, continue to improve and issue policies to create maximum convenience and simplicity in entry visa procedures for international tourists coming to Vietnam.
Second, improve the capacity of organizations to implement the system of policies and laws on tourism development in the area.
Improve the capacity of agencies, organizations and individuals in directing and organizing the implementation of policies in a proactive, positive and flexible manner to ensure effectiveness and efficiency in state management of tourism in Chiem Hoa district. Determining the completion and concretization of regulations and policies on sustainable tourism development in Chiem Hoa district is an important step to effectively implement sustainable tourism development, therefore, the Department of Culture and Information needs to continue to coordinate with departments and branches of the district to advise the People's Committee of Chiem Hoa district to develop and promptly issue documents to concretize regulations and policies on tourism development at all levels in accordance with the actual conditions of the locality, perfecting tourism incentive policies such as attracting investment in tourist destinations. On that basis, annually, develop a plan to implement tourism development in the area;
- Regularly coordinate with relevant agencies to promote the implementation of tourism, service and entertainment projects.
- Ensuring consistency in implementation but also requiring flexibility and initiative based on local characteristics. This aims at the ultimate goal of effectiveness in implementing policies and laws. Special attention should be paid to improving policy implementation capacity, most directly the capacity of state management staff and civil servants. Capacity should be viewed in all three aspects: Knowledge, skills and attitudes, that is, the team of tourism management staff and civil servants must have understanding and awareness of tourism management; must have solid and fluent state administrative management skills; must have a positive and proactive attitude. Therefore, training and fostering to improve the capacity of the state management team on tourism must be considered one of the fundamental solutions.
+ Strengthen coordination between state agencies and people, mass organizations, and between agencies and sectors in implementing tourism policies and laws to ensure consistency, unity, effectiveness and efficiency.




![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 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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