VIETNAM NATIONAL UNIVERSITY, HANOI
INTERNATIONAL SCHOOL
***
GRADUATE INTERNSHIP REPORT
ON BANKCARD ACTIVITIES
INTERNSHIP COMPANY/INSTITUTION: Vietnam Bank for Agriculture and Rural
Development, Lai Chau City Branch
Address: 216 Tran Hung Dao Street, Doan Ket Ward, Lai Chau City
Supervisor: Mr. Chu Van Hung
Student’s full name: Hoang Hien Trang
Student’s ID: 11071591
Major: International Business
Class: IB2012B
Hanoi, 5th March 2016
i
ACKNOWLEGEMENT
To finish this report, I am deeply grateful to all those who have shared ideas, valuable
comments and encouragement during my writing of this paper.
First of all, I would like to express my deepest sense of gratitude to my supervisor, Mr. Chu
Van Hung for his useful guidance, critical comments and valuable suggestions.
Besides, my sincere thanks are also given to the Faculty of International Business,
International School for the devoted teaching of all the lecturers and for giving me the
knowledge and studying methods. Their teaching not only helps me gain essential knowledge
and skills during 5 years but also lays the foundation for my future work.
I am greatly indebted to Mr. Hoang Van Trung, accountant from Lai Chau City Branch of
AgriBank, who introduced me to Accounting and Treasury Department and continuously
encouraged me during internship time at Lai Chau branch.
I must mention the wonderful working environment and group commitment of this bank that
has enabled me a lot deal to do and observe the banking activities during my internship period
of six weeks. I would particularly like to thank all staff from Accounting and Treasury
Department and all members of Lai Chau branch of AgriBank for their help, support and
providing related information, data.
Last but not least, I convey my sincere thanks to my family friends who inspire in different
ways to complete the report and the course as well.
However, owing to my lack of experience and knowledge as well as the limited scope of the
research, some shortcomings and mistakes are unavoidable. Please kindly take into account.
Student,
Hoang Hien Trang
ii
GLOSSARY OF TERMS AND ABBREVIATIONS
AgriBank
Vietnam Bank for Agriculture and Rural Development
Agriseco
AgriBank Securities Joint-stock Corporation
ABIC
Agriculture Bank Insurance Joint – Stock Corporation
AMEX
American Express
ATM
Automatic Teller Machine
C/A
Current Account
EDC
Electronic Data Capture
FD
Fixed Deposit
HSBC
The Hongkong and Shanghai Banking Corporation
ID
Identification
ICO
International Card Organization
JCB
Japan Credit Bureau
L/C
Letter Credit
MIS
Management Information System
PG Bank
Petrolimex Group Joint-stock Commercial Bank
PIN
Personal Identity Number
POS
Point of Sale
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SBV
The State Bank of Vietnam
SMS
Short Message Services
SWIFT
Society for Worldwide Interbank Financial Telecommunication
TIN
Taxpayer Identification Numbers
UNDP
United Nations Development Programme
VCA
Vietnam Card Association
VIB
Vietnam International Bank
TABLE OF CONTENT
v
CHAPTER 1: OVERVIEW OF VIETNAM’S AGRIBANK.....................................................1
1.1 Introduction about AgriBank:........................................................................................1
1.2 Brief history:.....................................................................................................................1
1.3 Business volume................................................................................................................3
1.4 Vision:................................................................................................................................3
1.5 Mission:.............................................................................................................................3
1.6 Core values........................................................................................................................4
1.7 Organizational structure:................................................................................................4
1.7.1 Organizational chart:...................................................................................................4
1.7.2 Subsidiaries:................................................................................................................6
1.8 Products and services:.....................................................................................................6
1.9 Coming year’s strategy:...................................................................................................7
CHAPTER 2: INTERNSHIP AT AGRIBANK, LAI CHAU CITY BRANCH.........................8
2.1 Introduction of Vietnam Bank for Agriculture and Rural Development – Lai Chau
City Branch.............................................................................................................................8
2.2 Organization structure:...................................................................................................9
2.3 Products and services:...................................................................................................10
2.4 Business Performance in 2015:.....................................................................................11
2.4.1 Fund Mobilization:....................................................................................................11
2.4.2 Credit:........................................................................................................................11
2.4.3 Domestic Payment:....................................................................................................11
2.4.4 International Banking:...............................................................................................12
2.4.5 Information Technology:...........................................................................................12
2.5 Depth-analysis about bankcard activities:...................................................................12
2.5.1 Concept and classification:........................................................................................12
2.5.2 Transaction process:..................................................................................................15
2.6 AgriBank card activities in AgriBank Lai Chau:........................................................18
2.6.1 AgiBank cards:..........................................................................................................18
2.6.2 Actual situation of AgriBank card in the branch:......................................................22
2.6.2.1 Some results of development of AgriBank card:................................................22
2.6.2.2 Evaluation on customer satisfaction level toward bankcard services:................25
2.6.2.3 Existing problems and difficulties:.....................................................................26
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CHAPTER 3: JOB PART........................................................................................................29
3.1. Internship objectives:...................................................................................................29
3.1.1 Primary objective:.....................................................................................................29
3.1.2 Secondary objectives:................................................................................................29
3.2 Internship position, duties and methodology:.............................................................29
CHAPTER 4: RESULTS ACHIEVED....................................................................................31
4.1 Content of theoretical knowledge was strengthened:.................................................31
4.2 Practical skills:...............................................................................................................32
4.3 Practical experience:......................................................................................................32
4.4 Contribution to AgriBank Lai Chau:...........................................................................33
4.5 Further recommendations for improvement:..............................................................33
CONCLUSION.........................................................................................................................36
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LIST OF TABLE AND FIGURE
Figure 1 - The organization structure of AgriBank…………………………………………….5
Figure 2 - The organization structure of AgriBank Lai Chau City Branch…………………...10
Figure 3 - Types of bankcard………………………………………………………………….13
Figure 4 - Procedure of issuing bankcard……………………………………………………..15
Figure 5: Procedure of acquiring cards………………………………………………………..17
Figure 6 - Types of AgriBank card……………………………………………………………19
Table 1 - Results of issuing cards at AgriBank Lai Chau……………………………………..23
Table 2 - Devices of acquiring cards of AgriBank Lai Chau…………………………………25
Table 3 - Customer satisfaction level toward bankcard services……………………………...25
Table 4 - Problems when do transactions at ATMs…………………………………………...27
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CHAPTER 1. OVERVIEW OF VIETNAM’S AGRIBANK
1.1. Introduction about AgriBank
Vietnam Bank for Agriculture and Rural Development is the only 100% state-owned
commercial bank in Vietnam. Throughout its development, AgriBank has always been the
largest bank in Vietnam in terms of total assets, operating network and customer base. The
bank’s market share includes 16% of the total funding sources and outstanding loans that make
up Vietnam’s banking system as a whole.
Name in English: Vietnam Bank for Agriculture and Rural Development
Abbreviation name: Ngân hàng Nông nghiệp và Phát triển nông thôn Việt Nam
Abbreviation name in English: Agribank
Legal Form: A state-owned one-member Limited Liability Company
Commencement of Business: 26th March 1988
Head Office: No.2 Lang Ha Street, Ba Dinh District, Hanoi, Vietnam
Telephone No: (+84-4)-8313717
Fax No: (+84-4)-8313719
Website: http://www.agribank.com.vn/
Email:
[email protected]
Chairman: Mr. Trinh Ngoc Khanh
1.2. Brief history
AgriBank’s milestone in development:
2
1988: Established under the name of Agricultural Development Bank of Vietnam by Decree
No.53/HDBT dated 26 March, 1988 of the Council of Ministers (now the Government).
1990: Renamed Vietnam Bank for Agriculture.
1991: Implemented loans for the household economic sector under Directive 202/CT dated 28
June 1991 by the Chairman of the Council of Ministers.
1995: Proposed establishment of the Bank for the Poor (now called the Vietnam Bank for
Social Policies) – a separate entity from the Vietnam Bank for Agriculture.
1996: Renamed Vietnam Bank for Agriculture and Rural Development.
2003: Awarded the title of “Labor Hero of the Doimoi Era” by the Party and the State.
2005: Opened first representative office abroad – Representative Office in Cambodia.
2006: Obtained Vietnam Gold Star Award.
2007: Ranked by UNDP as the largest enterprise in Vietnam.
2008: Awarded the “Second-Class Independence Medal” by the Party and the State.
Took up Chairmanship of the Asia-Pacific Rural and Agricultural Credit Association
(APRACA).
Top 10 Vietnam Gold Star Award.
2009: Recognized as the first bank to be awarded the “Top 10 Vietnam Gold Star” Award
twice.
Officially kicked off the IPCAS II, connecting online all 2,300 branches and transaction
offices.
2010: Named in top 10 of the 500 largest enterprises in Vietnam
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Opened first branch abroad – Branch in Cambodia.
2011: Converted into a State-owned one-member limited liability company.
2012: The only bank in the top 10 ranking of the 500 largest enterprises in Vietnam –
VNR500.
Top ASEAN Enterprise, Top brand name of ASEAN; Top Bank for Payment, Top
Banks of Vietnam.
2013: 25th anniversary of the establishment, honorably received the Third-Class Labor Medal
from the Government.
2014: Implemented Restructuring Plan with the aim of continuing to play a key role in the
system of credit institutions in Vietnam, directly responsible for implementing the policy of
the Party and State on development assistance and the provision of financial services for
agriculture, rural areas, and framers.
The only bank in the top 10 ranking of the 500 largest enterprises in Vietnam – VNR500.
1.3. Business volume
In view of the above, the Bank within a period of 28 years of its operation achieved a
remarkable success. In 2015, AgriBank possessed total assets of VND 762 trillion (USD 36
billion), a broad operating network of 2,252 branches and transaction offices across the
country (covering 63 provinces and cities) and nearly 40,000 staff. AgriBank’s customers
include 10 million house-holds, individuals and 30,000 enterprises.
1.4. Vision
To stand out as a strong, modern and prestigious multiple banking and financial group in the
local market as well as international market.
1.5. Mission
High quality financial services with the help of the latest technology.
4
Fast and accurate customer service.
Balanced growth strategy.
High standard business ethics.
Steady return on shareholders' equity.
Innovative banking at a competitive price.
Attract and retain quality human resource.
Firm commitment to the society and the growth of national economy.
1.6. Core values
Honestly
Discipline
Creativity
Quality
Efficiency
1.7. Organizational structure
1.7.1. Organizational chart
With a long history of development, AgriBank affirms its prestige day after day through a
diversity of areas: Wholesale banking, retail Banking & network, Treasury, Risk management,
finance and Accounting, Operations and Business Supports. For more logical and clearer view
on AgriBank’s organization structure:
BOARD OF
DIRECTORS
SUPERVISORYBOA
RD
5
RISK MANAGEMENT
COMMITEE
SECRETARIAT TO
BOD
CO
GENERAL DIRECTOR
DEPUTY GENERAL
DIRECTOR
CHIEF
ACCOUNTANT
Dd
FUNCTIONAL DEPARTMENTS
OPERATIONS
CENTER
TRANSACTION
OFFICES
TYPE I, TYPE II
BRANCHES
REPRESENTATIVE
OFFICES
ADMINISTRATIVE
ENTITIES
BRANCHES
OFFICES
ENTITIES
TYPE III
BRANCHES
OFFICES
TRANSACTION
OFFICES
Figure 1 - The organization structure of AgriBank
Source: AgriBank - Annual report 2012
SUBSIDIARIES
BRANCHES
6
1.7.2. Subsidiaries
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Agribank Leasing Company No.1
Agribank Leasing Company No.2
Agribank Banking Services Company Limited
Agribank Jewelry Company Ho Chi Minh City - VJC
Haiphong Trading and Investment Development Company Limited
Agribank Gold Joint-stock Corporation (AJC)
Agribank Securities Joint-stock Corporation (Agriseco)
Agribank Insurance Joint-stock Corporation (ABIC)
Agribank Tourism and Trading Joint Stock Company
Agribank Asset Management Company
1.8. Products and services
- Accounts and deposits: accepting deposits and mobilizing savings with the diver, attractive
interest rates such as promissory notes, bonds, certificates of deposit...
- Loans: lending in short, medium or long term, daily life consumption, investment trusts;
mortgage lending by valuable papers, co-sponsored loans, lending by issuing credit
cards....
-
Guarantee:
implementing businesses; payment guarantees; bid guarantee; contract
performance guarantee, contract of guarantee, guarantee confirmation.
- Domestic payment services: domestic money transfer services, service of collection
and payments; state budget collection services, bill payment services, automatic
collection services...
- Securities: the point of providing Agriseco’s services, implementing transactions of opening
accounts, securities registration, securities trading...
- Foreign Exchange Services: import and export payments under the credit methods
such as L/C; cash transfer; foreign currency trading; remittance payment ;currency
exchange ...
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- Border payment with Laos: including bank drafts, cross-border money transfers documents,
trading transaction payment, deed of trust and e-transfers, letters of credit and letters of trade
border payment guarantee letter.
- Card Services: issuing domestic debit card (success); international debit card (master/visa
debit); International credit cards (Master/Visa credit); business card set
- Electronic banking (e-banking): mobile banking services (VnTopup - phone recharging
services via SMS, SMS banking; Atransfer – SMS money transfer service); VnMart services,
internet banking; Apaybill...
- Insurance: Security credit insurance; Insurance for
international cardholders, cargo
insurance, fire insurance; insurance of automobiles, motorcycle, human; other kinds of
insurance.
- Other services: provide account information; automatic salaries paying and receiving
service; safe leasing services; consulting services and other services...
1.9. Coming year’s strategy
Ensure fund mobilization and liquidity, balance capital needs for business expansion.
Ensure credit growth at reasonable level, consistent with the deposit growth rate and
ensure the bank’s prudent ratios; continue to provide credit to “Tam Nong”, households
and individuals, and SMEs.
Implement measures for bad debt recovery, closely monitor credit quality, make
provisions and handle risks according to regulations, ensure safe and effective
operation.
Continue to reform and strengthen management models to improve efficiency and
discipline in business operations.
Improve mechanism of effective financial management, equitable and transparent
income distribution, creating motivating business activities.
Continue the implementation of AgriBank restructuring plan; reform the business
model and organizational structure, rearrange branches and departments at the Head
Office,
improving
effectiveness
of
management
activities;
strengthen
the
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organizational structure and improve the quality of internal audit and control activities;
complete documents, regulations on management mechanisms, business operations,
etc.
Deploy projects in Information Technology (IT), banking modernization, and product
and service development in an effective and timely manner.
Formulate AgriBank Human Resources Development Plan 2015-2020; continue to
improve quality and effectiveness of recruitment, training and development of human
resources.
Improve the effectiveness of marketing and communications associated with social
security activities in order to enhance the position, reputation and brand image of
AgriBank.
CHAPTER 2. INTERNSHIP AT AGRIBANK, LAI CHAU CITY BRANCH
2.1. Introduction of Vietnam Bank for Agriculture and Rural Development – Lai
Chau City Branch
In 2013, Vietnam Bank for Agriculture and Rural Development – Lai Chau City Branch was
founded under Decision No 1292/QĐ/HĐQT/TCCB dated October 15 th, 2013 by the Board of
Directors of AgriBank with the primary staff of 28 people.
Located in 216, Dien Bien Phu Street, Tan Phong ward, Lai Chau city a vast residential area
with many convenient economic conditions, AgriBank Lai Chau has advantage to do business
effectively. Right from the beginning of its operation, though was difficult due to the lack of
manpower and facilities , but the leadership and staff of the branch has made great efforts
to achieve good results and significant contributions to the development of AgriBank, as
well as shift economic structure, promoted the further economic-social development of Lai
Chau city in a comprehensive and sustainable way.
Since its establishment, AgriBank Lai Chau has continuously extended trading networks,
diversified items of business, currency, and credit, promoted capital sources. The branch is
also focusing on improving the qualification of staff both in professional knowledge, skills and
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foreign languages. Lai Chau branch concerns not only stabilizing and expanding the network
but also the living conditions of employees. Facilities are modernized, especially information
technology, to serve the business better. From its establishment, the branch always makes
profits, the revenue is higher year after year, contributing to the State budgets increasingly,
creating credibility with customers.
Position of the branch in the whole system:
The branch implements of the full functions and responsibilities of a modern and prestigious
bank. AgriBank Lai Chau was upgraded to type I branch in 2015 affirming important position
of the branch in AgriBank system.
2.2. Organization structure
Through years of operation, AgriBank Lai Chau has developed widely, at the present time it
has a business network of 2 transaction offices. AgriBank Lai Chau is organized under the
model of a supervisor Board of Management including a General Director and two Deputy
Directors.
Organization structure of AgriBank Lai Chau is divided into functional blocks as follows:
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General Director
Deputy
Director
Services &
Marketing
Department
Internal
Supervision
Plan &
Business
Department
Deputy
Director
Accounting
& Treasury
Department
No.1
Administration
Department
Transaction
Office
No.2
Figure 2 - The organization structure of AgriBank Lai Chau City Branch
Source: Administration Department of Agribank Lai Chau
2.3. Products and services
AgriBank has been made an effort in developing traditional services as well as other modern
and valued added services. This has enabled AgriBank to diversify its own products suitable to
each segment of customers. At the present time, AgriBank becomes the leading bank in
developing products: Mobile banking, SMS banking, VNTop up, SMS remittance (A transfer
service), etc.
To AgriBank Lai Chau, inherited reputation and successes of AgriBank, the branch has its
decisions, policies to precede those successes. AgriBank Lai Chau posts in the account
11
dependently, has its own seals, organizes and operates under Regulation on organization and
operation of AgriBank. AgriBank Lai Chau provides products and services which serve:
- Personal customers: They are individual, households join transactions in the branch. The
branch provide these customers: Individual account, loans, savings and investment,
remittance, AgriBank card, foreign exchange
- Corporate customers: They are target customers of the branch. Money flows often in a
great number. They are organizations, corporate… Services and products include: guarantee
service, international payment, account, lending, check services, valuable notes, payment,
border payment, saving deposit, leasing, foreign exchange, factoring
- Financial institutions: AgriBank hope to “provide various services in order to satisfy
customers coming from financial institution sectors”. These services are: retail banking,
foreign exchange, treasuring, financial trading, project based lending.
2.4. Business performance in 2015
2.4.1. Fund mobilization
As of 31 December 2015, fund mobilized from organizations and population reached VND
1,995 billion, an increase of 21.5% compared to 2014, exceeding the planned target.
2.4.2. Credit
As of 31 December 2015, the total outstanding loans amounted to VND 757 billion, increasing
by 8.2% compared to that of 2014, achieving the set target and reflected a reasonable growth
rate in a difficult year of 2015.
2.4.3. Domestic payment
In 2015, AgriBank Lai Chau’s volume of payment transactions went up by 15.8% compared to
that of 2014 with 413,907 transactions; transaction payment value reached VND 989 billion.
12
Payments via Internal Payment and Customer Accounting System (IPCAS) increased by
11.79% in number of transactions and 6.66% in total amount compared to those of 2014; the
average number of transactions per day grew by 10.91% compared to that of 2014.
2.4.4. International banking
Foreign Currency Exchange:
In 2015, AgriBank Lai Chau achieved the total volume of foreign currency trading of USD 23
million equivalent to 478.4 billion, increasing by 17% compared to 2014 and making 107% of
the set target. Of which, the buying volume was USD 3.4 million, increasing by 18%; the
selling volume was USD 2.3 million, increasing by 11% compared to 2014.
2.4.5. Information technology
To absolutely ensure the operation of the whole system, AgriBank Lai Chau was placed a high
priority on intensifying information security by means of the improvement of the One Time
Password (OTP) authentication system, implementation of the Public Key Infrastructure
(PKI), issuance of the regulation on ensuring the security of the IT system in Agribank’s
operation, training, disseminating and upgrading the knowledge of information security for the
users via training and news-letters on information security.
2.5. Depth-analysis about bankcard activities
2.5.1. Concept and classification
Everyday millions of people all around the globe are using bankcards for making credit card
payments for their purchases.
* Concept:
In simple terms: A bankcard can be described as a plastic card issued by a bank or a financial
institution which the cardholder can gain access to the financial resources of the bank as a line
of credit.
* Classification:
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