The State is important but only in creating an environment and supporting, the self-improvement of the poor is decisive. Poverty reduction is one of the important parts of the social security policy of each country. Together with social insurance, social work, and social assistance, poverty reduction programs create a comprehensive protection net for members of society. If the subjects of social insurance are workers, social work are those who are disadvantaged and vulnerable in life, social assistance is aimed at those who have contributed to the country, then poverty reduction aims at an important vulnerable protection area in life, which is the poor. Poverty reduction contributes to ensuring long-term and sustainable social security, helping the poor escape poverty and rise up to ensure their own lives, contributing to creating a comprehensive social security network for each country. In the long term, poverty reduction contributes to reducing the burden on the social security system by narrowing the subjects needing social security subsidies. The role of the social security policy can be considered as a bridge to increase the effectiveness of other policies. The specific nature of the social security policy and social security is that the socio-economic efficiency is not clear, the investment profit is considered to be non-existent, so it is very difficult to attract other subjects to participate in investment, the role of the State is especially important.
The scope of social security protection is broad, including many components with the aim of ensuring social justice and especially social security policies are often interwoven and integrated to effectively promote resources and successful poverty reduction policies contribute to bridging the gap for subjects to access other social security policies.
Along with the poverty reduction system, the development of other support systems such as assistance for farmers to participate in the labor market, providing other basic social services such as education services, health services, clean water supply and environmental sanitation for farmers will contribute to ensuring social security for farmers.
In short, along with social security policy institutions, the State has a role in developing other socio-economic policies to create conditions for farmers to have income to participate in social security.
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Strengthening Financial Support From the State Budget to Help Farmers Participate in a Stronger Social Security System -
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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Overview of Theoretical Studies on Social Security -
Conditions on Political Security, Social Security and Tourism Development Policies -
Preserving and Developing Cultural Activities of the Central Highlands Ethnic Communities, Maintaining Social Order and Security and Protecting the Ecological Environment
2.2.2.3. The State inspects and supervises the implementation of social security policies for farmers.

Inspection and supervision are important contents of the state's role in general, and the state's role in social security for farmers in particular. This is one of the decisive factors in the successful implementation of social security programs. No matter how good a policy is, if it is not inspected and supervised, it will not be put into practice, and people will not have the opportunity to participate in insurance and assistance programs. Therefore, in the implementation process, it is important for the state to strengthen inspection and supervision to ensure the effectiveness and strictness in implementing social security goals for farmers.
Ensuring transparency and control of society, community, State and farmers in the management of social security funds is extremely important. It is necessary to maximize the role of independent auditing in helping the State, community and farmers monitor the implementation of agencies and managers of social security funds. More than anywhere else, it is necessary to thoroughly fight corruption and ensure transparency in the management of social security funds in order to mobilize all potentials of society and farmers in the formation and development of social security funds. On the other hand, in the initial stage, the role of the State is of primary importance in the formation and management of social security funds for farmers.
In the development process, the role of the community and farmers will gradually increase in the formation, development and management of the activities of social security funds. However, in every stage of development, the management institution of social security funds for farmers must clearly, transparently and specifically stipulate the contribution and participation of each subject (the State, enterprises, other organizations and farmers, etc.) and the benefits (circumstances, standards, levels of benefits, disbursement procedures, etc.) of each type of farmer. If this is not done, farmers and the community, philanthropists, enterprises, civil society organizations, etc. will not have the confidence to participate in contributing and benefiting from social security funds. This will greatly affect the financial issue of implementing social security contributions of farmers.
2.2.3. Factors affecting the role of the State in social security for farmers
2.2.3.1. State's viewpoint on social security for farmers
The role of the State in social security for farmers depends on the type of social security organization, which in turn depends on the viewpoint and will of the State. Currently, there are many different social security models in the world. However, in terms of organizational principles, there are two basic models: state social security and market-oriented social security. The representative model for state social security is the social security model in the United States, the typical market-oriented social security model is that of the Federal Republic of Germany. In addition, some developed and developing countries such as the UK and Brazil are in the process of transitioning from state social security to market-oriented social security. In these models, the role of the State in social security is different [39].
According to the US model, long-term social security programs including old-age insurance, survivor insurance, disability insurance and health insurance (called social security or OASDI) and medical benefits for the elderly (medical care) are guaranteed from contributions of working workers and funding from the state budget ( Max J. Skidmore, 2001) [112].
In essence, US Social Security is a type of state social security. The social security program is mandatory for all workers to have insurance and is funded by an income tax with employer contributions. Workers and employers pay payroll taxes to the state, and self-employed people pay taxes equivalent to the total taxes paid by workers and employers. The state uses those taxes to pay social security to workers under the program.
In addition to types of insurance such as old-age insurance, survivor insurance, disability insurance, health insurance, the social security system also includes subsidies such as subsidies for spouses of retirees, subsidies for children of retirees until they turn 18; family allowances, unemployment allowances, etc. All money spent on social security, including forms of insurance and subsidies, comes from the state budget. Thus, the role of the State in this type of social security is very broad. The State not only builds laws, mechanisms, policies, organizes inspections, and supervises the implementation of social security policies, but also directly organizes revenue and expenditure to ensure social security for workers.
Compared to the United States, the role of the State in social security in Germany is different.
After nearly 150 years of development, the social security system in Germany is now built with three parts:
- Social insurance includes statutory pension insurance, statutory health insurance, statutory unemployment insurance, statutory accident insurance and statutory care insurance;
- Compensation systems such as care for victims of war or military service, care for victims of acts of violence, care for political prisoners during the German Democratic Republic;
- The social protection and social incentive system aims to provide basic security for job seekers and pay social protection and housing allowances [52].
Regarding the social insurance system, insurance organizations in the social insurance system are identified as self-governing organizations. These organizations organize their own apparatus to carry out the goals and tasks assigned by the State. The highest organization of each social insurance organization is the board of members, completely chosen by the insured and the employer for a term of 6 years by secret ballot. The State only sets the insurance tasks and inspects the implementation of the insurance tasks of these organizations through specialized federal ministries, but does not interfere with the organization and apparatus of these organizations.
German social insurance operates on the principle of financial autonomy. The costs for the implementation of services and the organization of social insurance management do not come from the state budget (from taxes) but are made from the source of insurance obligations or social obligations of insurance participants. In other words, the insurance organizations of the social insurance system must balance their revenues and expenditures, the State does not replace or subsidize, although the tasks of social insurance are set by the State. Only in some specific cases will there be financial support from the State, but not to support insurance organizations but to support insurance participants by the State contributing part or all of the insurance obligations of these subjects. With a few exceptions in the agricultural sector, the State also participates in the costs for the implementation of some services, but in essence these are expenditures associated with the goal of agricultural protection [39]. Thus, in Germany, the State only sets out social security tasks and types of insurance, while implementation is carried out by insurance organizations.
Obviously, the choice of which social security model depends on the viewpoint and specific conditions of each country; therefore, the scope of the State's role according to the social security models is also different. This is also true for the State's role in social security for farmers.
2.2.3.2. State financial capacity and farmers' income
Financial issues are the key issue that is decisive for the implementation of the social security program for farmers. To provide assistance, the State must also have financial resources. To be able to participate in social security according to the contribution-benefit principle, workers must have income. Therefore, the economic factors affecting the construction of the social security system are first of all the capacity of the State budget and the income of farmers. The higher the income of farmers, the greater the farmers' proactive participation in the social security system, the need for assistance from the State will decrease and vice versa. At the same time, the more abundant the financial capacity from the State budget, the greater the scope and scale of assistance for farmers and vice versa.
In most developing countries, social security for farmers is one of the important factors to solve economic and political problems in the process of socio-economic development. However, the implementation of these programs is facing many difficulties. In the process of globalization and international integration, the assistance of rural communities as traditional social security for farmers is currently facing two problems. Firstly , when households and communities in rural areas are often affected by the same type of risk (for example, bad weather conditions affecting crops), every family in the community faces difficulties, the problem of sharing finances and resources to help others becomes difficult. Secondly, due to the impact of industrialization and urbanization, the strong development of the law of the market economy, the tradition of helping each other in the community and family is being eroded. Therefore, for social security programs for farmers to be effective, the participation of the State is needed. In other words, the State needs to ensure finance to implement social security according to the principle of non-contribution. However, the scale and extent depend on the viewpoint and financial capacity of the State budget.
Solving the social security situation for farmers, although still in the spirit of socialization, due to the specific nature of the agricultural sector with low income
The majority of the population is concentrated, so the prerequisite for successful implementation of this program is that, along with the socialization of the social security program for farmers, it is necessary to increase state budget expenditures to provide assistance and support farmers to participate in the social security system. In which, state budget expenditures play an essential role. Here, the Government needs to encourage and support people to actively participate in the social security system, such as through minimal financial assistance for purchasing health insurance cards, which creates opportunities for people to realize the benefits of using health insurance cards, creating a positive premise for the implementation of universal health insurance. The State should have policies to increase the monthly support level for vulnerable groups to at least ensure that people live above the minimum standard of living. In addition to spending to support vulnerable groups living above the minimum standard, the State should consider a sum of money to support training and job search for farmers, thereby helping people escape poverty.
Another amount of money that the State budget has to spend every year is the amount of money to provide emergency assistance to those who are unfortunately facing economic risks due to natural disasters, war, etc. That is the case of implementing social security without contributions.
Financial resources for social security without contributions are often very large, because natural disasters and enemies are often unpredictable and the losses they leave behind are not small, so financial revenue often mobilizes additional charitable contributions from people and businesses in society.
2.2.3.3. Capacity of social security management system for farmers
The capacity of the social security management system is reflected in the suitability of the organizational system and the quantity and quality of the staff working in social security. Establishing a management organization system and ensuring a professional staff to implement the policies of the social security system, meeting the development needs, has a strong impact on the implementation of the State's role in social security. Because the policies and guidelines on social security are only theoretical, whether they can be implemented or not, they must be implemented in each village and each farmer's household. The capacity of the management system not only affects the implementation of passive social security programs but also affects the participation of voluntary subjects in the form of active social security (Contribution - benefit).
In principle, it is possible to establish an independent organizational system for each component, but it is also possible to use the existing government apparatus for implementation, depending on the specific conditions of each country. A universal policy institution has low management costs and a compact management organization, and conversely, a complex institution has more expensive management costs.
The organizational system and apparatus are usually designed to manage the activities of each component and are divided into four levels from the central to the provincial, district and communal levels. This organizational system is subject to vertical control and territorial control. Depending on the mechanism of resource formation of each component and the management mechanism, the role of vertical control or territorial control occupies the leading position. For example, in the early period of innovation, health insurance in our country was controlled by territorial control, but it proved unreasonable in balancing and regulating resources because some provinces lacked resources, while others had surplus resources but could not regulate each other. After that, our country had to amend the management mechanism to apply the vertical control model. Social insurance has always applied the vertical management mechanism since the social insurance policy was introduced; while other components such as special subsidies and social insurance are controlled by territorial control (provincial and district levels), they hold an important position. Because the central budget is balanced for localities to ensure sufficient funding for special assistance and social security.
Having a reasonable apparatus, but also needing a team of cadres with sufficient capacity to implement will bring positive effects in implementing social security programs for beneficiaries. This is reflected in the need to have a sufficient number of cadres and have sufficient professional qualifications to meet operational needs. To do so, it is necessary to focus on training a team of cadres with qualifications and responsibilities that will convey the concern of the Party and State for farmers' lives, convey the benefits of participating in the social security system to farmers. Only then will farmers trust and agree with the policies of the Party and State.
Not only that, for the beneficiary group, a team of highly qualified, competent and responsible staff will create conditions for farmers to access the State's social security policy system in the easiest way. Once participating in the social system, farmers will receive help from the State and they have solved the most basic problem of "income". With a team of dedicated staff
With the dedicated and thoughtful staff, farmers will receive all the benefits they are entitled to, in addition, they will also receive advice and assistance from staff on how to use the subsidies most effectively. From there, farmers can rest assured to develop their economy and stabilize their lives.
2.2.3.4. Social awareness of social security for farmers
Participation in the social security system depends not only on economic factors but also on social factors, in which customs, habits and social awareness play an important role.
Normally in countries with developed market economies, all people are familiar with participating in the social security system, so implementing social security according to the contribution-benefit principle becomes a matter of course, and all people are willing to participate. However, for countries that have shifted from an agricultural, decentralized production base to a market economy like Vietnam, the term social security is still very new. Implementing contribution-benefit according to the principles of the social security system is almost unfamiliar to them. Moreover, in countries with economies operating under a subsidy mechanism, asking-giving, contribution-benefit is also very difficult to be accepted by the people. Therefore, the issue of participation in the social security system of people in the individual agricultural sector and the unstructured sector like in Vietnam is very difficult. Here, the work of dissemination, propaganda, education and guidance for people to participate is of great significance. To do so, it is necessary to pay attention to a number of issues such as disseminating and propagating the State's laws and policies on developing the social security system to the people; mobilizing other social forces such as associations and organizations to participate in propagating and mobilizing people to participate in the social security system; guiding people to participate in the system and jointly monitoring the implementation of the social security policy system.
2.3. EXPERIENCES OF SOME COUNTRIES IN THE WORLD ON THE ROLE OF THE STATE IN SOCIAL SECURITY FOR FARMERS AND LESSONS FOR VIETNAM
2.3.1. Experience of some countries in the world on the role of the State in social security for farmers
2.3.1.1. Experience of the Federal Republic of Germany
The Federal Republic of Germany is a country with a long tradition and much experience in building a social security system in general and for farmers in particular, so it has


![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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