perspective , Proceeding of the Seventh Wuhan International Conference on E-Business, pp.3521–3524.
117. Zhu, Z., & Zhao, J. (2011), The sources of e-business competitive advantages between travel agencies and online travel service firms in China , International Journal of Information Systems and Change Management, 5(2), 160 .
WEBSITE
118. www.bbc.com
119. www.euromonitor.com/
APPENDIX 1
SURVEY ON THE CURRENT STATE OF BUSINESS DEVELOPMENT ACCORDING TO THE SHARING ECONOMY MODEL OF ENTERPRISES
IN THE FIELD OF ONLINE TOURISM SERVICES IN VIETNAM
(Voucher for leaders of businesses in the field of online tourism services in Vietnam)
Dear Business,
I am Vu Thi Thuy Hang - currently a PhD student of course 30B of the University of Commerce. I am currently doing my doctoral thesis: "Business development according to the sharing economy model of enterprises in the field of online tourism services in Vietnam". I need to investigate the current situation of business development according to the sharing economy model of enterprises in the field of online tourism services in Vietnam. Therefore, I hope that enterprises will take the time to fill out this survey. The contributions of enterprises are valuable and meaningful to the research results of the thesis and help me have objective assessments, thereby proposing effective solutions for enterprises when developing business according to the KTCS model. I look forward to receiving your help!
1) I promise that all information about you will be kept confidential and not disclosed to any organization or individual.
2) For questions that already have available answers, please choose the appropriate answer by marking x in the box or the corresponding cell in the table.
Note when filling out the form: circle: choose only 1 answer, square: can choose multiple answers
A. BASIC INFORMATION ABOUT THE PERSON FILLING OUT THE BALLOT
1. Full name:……………………………………………………………………………………
2. Gender:
Male Female | Other |
Maybe you are interested!
-
Experience in Business Development According to the Sharing Economy Model of Enterprises in the Field of Online Tourism Services Around the World and Lessons Learned -
Scientific basis for perfecting state policies on foreign invested economy (FIE) in Vietnam - 2 -
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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Economic group model - operations of Vietnam Oil and Gas Group in the period 2006 - 2008 and development trends - 1 -
Research Model of Factors Impacting Work Motivation of Tour Guide Team in Binh Dinh Province

3. Phone number: ………………………………………………………………………………………...
4. Email: ………………………………..……………………………………………………...
5. Position: …………………………………………………………………………………….
B. GENERAL INFORMATION ABOUT THE BUSINESS
1. Business name:…………………………………………………………………………...
…………………………………………………………………………................................. 2. Head office address:…………………………………………………………………………
……………………………………………………………………………………………….
3. Representative office address in Vietnam:…………………………………………………...
……………………………………………………………………………………………….
(For foreign enterprises without representative offices in Vietnam, stop survey)
4. Name of legal representative in Vietnam: ………………………………………………
5. Type of business the enterprise is providing:
Intermediary providing tourist accommodation Travel Agent (OTA) | |
Tourist transport business intermediary Provide search tools and information about DL | Business of other tourism services (food, entertainment, recreation, etc.) |
Not in the above groups ( stop survey ) |
6. Website's main domain address/Mobile application name:…………………………... ( if there is no website or mobile application, stop survey )
Website/Mobile application officially launched from month………………year……………
7. Has the enterprise registered/notified with the Ministry of Industry and Trade according to Decree 52/ND-CP?
Registered Announced | |
Not registered/notified ( stop survey ) | |
o 2005 and previous years o 2011 to the end of 2013 o 2017 to the end of 2019 | o 2006 to the end of 2010 o 2014 to the end of 2016 |
8. Year of establishment:
9. Scope of business operations:
Local Domestic | International | Both domestic and international |
o Micro enterprises o Medium Enterprises | o Small business o Large enterprises |
10. Scale of business operations:
o Only 1 office o From 5 to 9 offices o From 16 to 20 offices | o From 2 to 4 offices o From 10 to 15 offices o Over 20 offices |
11. Number of offices and countries present:
12. Investment capital:
o Enterprise capital:…………………………………………………………………
o State capital:……………………………………………………………………...
o Capital from domestic and foreign investment funds:………………………………………
o Other:………………………………………………………………………………...
13. Human resources:
Staff
Quantity | |
- Sales staff | |
- IT staff | |
- Legal staff | |
- Customer care and support staff | |
- Marketing staff | |
- Corporate Relations Officer (NCC) | |
- Other staff |
C. ONLINE BUSINESS STATUS
1. DLTT services provided by businesses:
Intermediary providing tourist accommodation Room | Bedroom | House | Villa | Land | ||
Camping area | Living space | Toilet | Other forms……… | |||
Intermediary providing tourist transportation | ||||||
Airline tickets | Train tickets | Car | Motorcycle | Bicycle | ||
Electric car | Horse carriage | Cyclo | Boat | Cable car | ||
Helicopter | Elephant riding | Other forms:…………………………………. | ||||
Intermediary providing culinary, entertainment, and experience services for tourists | ||||||
Meal | Restaurant | Chef | House cleaning | Admission tickets | ||
Tools /Technology for tourism experience | Other forms:……………………. | |||||
Provide travel information search engine | ||||||
search
travel information
Social network about travel | Compare prices | Plan your trip | Other forms:……… …………… | |
Online Travel Agent (OTA) | ||||
If so, please specify which versions are supported:
2. Does the business have a version for TBDD?
Have oo No |
Mobile app for iOS or Android, Windows operating systems,... |
3. Which of the following policies does the business implement?
Have | Are not | |
Product and service refund and cancellation policy | ||
Dispute resolution and complaints policy | ||
Member Information Protection/Censorship Policy |
If so, please specify which tool?
4. Does the business deploy social media channels ?
Have oo No |
Zalo | ||
YouTube | Google Plus | |
Other:………………………………………………… | ||
5. Which of the following payment methods does the business apply?
Cash on Delivery (COD) Payment by credit card (Visa, Master Card,..) | Payment via e-wallet (Momo, VN Pay, Moca, Viettel Pay,...) | |
Payment via domestic bank transfer | Other:……………………………………………… | |
D. CURRENT STATUS OF APPLYING SHARING ECONOMY MODEL
1. What sharing economy models are businesses applying?
Market maker/electronic trading floor model (Marketplace) : Enterprises act as intermediaries between two customer sides: those with superior capacity or surplus services (supply side) and those who consume surplus products and services and pay a certain amount (demand side).
Access-based consumption model : Enterprises provide access to intangible or tangible resources. These resources can be created, rented or owned by the enterprise itself or its partners.
2. Evaluate the business development speed according to the business model of the enterprise according to the destination of the tourist?
Hanoi Hai Phong | Nha Trang | Hue | |
Ho Chi Minh City | Quang Binh | Dalat | Other:……. |
Danang | Quang Ninh | Lao Cai |
o Under 3 million VND o From 5 - 10 million VND o Over 20 million VND | o From 3 - 5 million VND o From 10 - 20 million VND |
3. Evaluate the business development speed according to the basic economic model of the enterprise based on the level of payment for a vacation of DLTT guests?
4. Benefits and limitations of business development according to the KTCS model
Businesses please rate the benefits from 1-5, in which: 1-No benefits, 2. Low benefits, 3. Average, 4. High benefits, 5- Very high benefits
Criteria for evaluating benefits
Encryption | 1 | 2 | 3 | 4 | 5 | |
Increase benefits for tourists, allowing tourists more options in the process of booking and using tourism services. | LI1 | |||||
Diversifying roles for businesses providing DLTT services | LI2 | |||||
Developing a culture of consumerism based on trust | LI3 | |||||
Reduce costs to society, reduce environmental pollution | LI4 | |||||
Manage more effectively | LI5 | |||||
Reduce operational processes | LI6 | |||||
Strengthen marketing activities and brand recognition for businesses providing tourism services | LI7 | |||||
Allows many direct DLTT service providers to work from home | LI8 |
Businesses please rate the restrictions from 1-5, in which: 1-No restrictions, 2. Slight restrictions, 3. Medium, 4. High restrictions, 5- Very high restrictions
Criteria for evaluating benefits
Encryption | 1 | 2 | 3 | 4 | 5 | |
Problems with local authorities | HC1 | |||||
Price competition | HC2 | |||||
Dispute issues | HC3 | |||||
Gap in tax liability | HC4 | |||||
Online payment problem | HC5 | |||||
Difficulties in adding additional services for DLTT customers in the KTCS model | HC6 | |||||
Some other issues (IT level of DLTT customers, virtual reviews, information security mechanism, ...) | HC7 |
E. CURRENT STATE OF BUSINESS DEVELOPMENT ACCORDING TO THE SHARING ECONOMY MODEL
1. Current status of customer segment development
a. Businesses segment customers as suppliers (hotels/travel agencies/homeowners/drivers/...) through which of the following criteria?
By accommodation type By location By location
By rating By price By amenities
According to the level of response to user questions
By opening hours By meal type: eat
morning/lunch/dinner/with restaurant
According to the suitability of the product or service
By type of product or service
According to supply capacity
By working hours By brand Other:……………..
b. Businesses segment their customers as DLTT customers through which of the following criteria?
By travel motive By demographics By income
By interests By type of tourism By spending behavior
By geographic area By need By frequency of use
By means of travel
According to booking quantity
Other:…………….........
…………………….
2. Current status of value proposition development
a. What value does the business propose to the direct service provider of DLTT:
Increase revenue Safety instructions | Effective content management |
Increased responsiveness | Personal connection | | Flexible working hours | ||||
| Global reach | Community factor | | No investment required | |||
| Increase traffic | Localization factor | | prepay No need to argue | |||
| website Reduce risk | Advertisement | | with users Other:……………........ | |||
| Booking management Insured | Add sales channels Listen to feedback | ……………………. ……………………. | ||||
b. What value does the business propose to DLTT customers: | |||||||
| Cheap | Safety | | Easy to find, economical | |||
| Increase choice | Cashless transactions | | time Provide price estimates | |||
| Reduce risk | Has a ranking system | | and travel time No negotiation required | |||
| Function and | internal | content | Travel planning | | with supplier Other:……………....... | |
useful | ……………………. | ||||||
Convenience Participation in the travel community
Authentic Experience Honest Reviews
…………………….
3. Current status of business channel development: businesses set up sales, advertising, communication, customer care channels, etc. as follows:
Website Use email and notifications | Tour guide | |
Mobile version for website | Tiered customer support channels | Social media channels |
Mobile application | Digital advertising campaign | Traditional advertising channels |
Content and review platforms in tourism | Content marketing: through news and tutorials | Different websites owned by the company |
Paid or free search engines | Word of mouth advertising | Through sales groups for other businesses |
Meta search tools | Through the assets of the supplier (items, displays) display logo at reception desk,...) | Other:……………... ……………………. ……………………. |
Application stores such as: iTunes App Store, Google Play Store, App Store | Blog, user stories |
4. Current status of customer relationship development
a. What customer relationships does the business develop with its suppliers:
Love-hate relationship Rewarding suppliers | Collect behavioral reviews vi, tourist needs | |
Create additional and continuous income | Advice on management | Distribute SPDV through algorithm, avoid bias |
Collect traveler reviews | Flexible working hours | |
Asset protection | Promotional support | Damage management |
Other: ………………………………………………………………………………… b. What customer relationships does the business develop with DLTT customers: | ||
Sustainable relationship in providing information about suppliers | Transparency, ensuring privacy and personal data | Continuously improve regulations |
Managing negative behaviors | Authentic reviews, content, helpful travel guides | Handle customer issues promptly |
Handling customer issues | Enhance your shopping experience, discover new Local SPDV | Other:……………... ……………………. ……………………. |
Improve regulations | Risk Reduction | |
5. Current status of revenue stream development: Which of the following streams does the business develop revenue sources through?
Revenue from transactions: collect transaction fees (commission fees) from direct service providers Revenue from membership registration fees: collect deposits from direct service providers | Advertising and affiliate revenue: collect money from suppliers from advertising and affiliate services such as CPC, CPM, keywords, banners, etc. | |
Other: ………………………………………………….. | ||
6. Current status of key resource development: Which of the following key resources does the enterprise develop?
Develop proprietary algorithms Deep User Engagement (UGC) | Brand development | |
Skills training for employees | Improve user experience | Access to venture capital sources |
Invest in infrastructure and interface of website and app | Global network | Number of recent and candid reviews |
Increase the number of suppliers | Loyalty program | Intellectual property, registered trademarks |
Increase the number of destinations | High quality, professional images | Other:………………. ……………………... |
7. Current status of development of key activities: Which of the following key activities does the enterprise develop?
Enhance positive network effects Develop new services | Using artificial intelligence | |
Reduce negative network effects on both sides | Monitor and update corridor activities | Develop, partner with or acquire valuable platforms |
Provide perfect customer support service | Follow other industries | Conversion rate optimization |
Improve websites and data-driven applications | Observe the movements of direct competitors | Eliminate conflict in interactions |
Stimulate demand through Promotions | Keep and encourage participants continuously | |
Improve the “small moments” | Encourage the use of multiple utilities | Expand location |
Visibility on search engines | Provide great travel experiences | Strengthen leadership in technology and intellectual property |
Control suppliers who want to increase direct bookings | Provided according to customer's request | Other:………….. ……………………. ……………………. |
Develop customer loyalty programs design | Enhance detailed assessments |
8. Current status of developing key partners : which of the following partners does the business develop?
Property Owner Venture Capitalist | Insurance companies | |
Travel agent | Photographers | Content Creator |
Tourism operations manager at enterprises | Real estate experts | Local tourism promotion center |
Technology partners | Event planning experts | Partners providing exclusive functionality |
Search Engine | Payment platforms | Other:………….. …….. ……………………. ……………………. |
Lobbyists | Map, GPS, and identification applications |
9. Current status of cost control: How do businesses control costs?
Customer Acquisition Cost (CAC) Commissions for affiliate programs | |
Cost of Capitalization (WACC) | Public relations costs |
Cost of developing new features, constantly refining algorithms | Salary costs for permanent employees |
Cost of hiring freelancers | Asset depreciation costs |
Cost of expanding to new locations | Property and equipment costs |
Payment processing costs | Travel expenses |
Lobbying costs | Community management costs |
Cost of resolving legal issues | External services and consulting |
Infrastructure and bandwidth costs | Costs related to website and mobile application operations |
Customer support costs | Costs associated with video production for local advertisers |
Insurance costs | Shipping costs |
Offline advertising costs | Other:………….. ………………………… ……………………………................... |
Cost of generating traffic from search engines, media |



![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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