Through four years of learning at Banking university of Ho Chi Minh city, majored in English, I have learnt much useful knowledge. Internship time is an important stage for me to practice my knowledge in reality, so that I can complement new knowledge and prepare myself some required skills. In my internship time, I have chance to intern at Bank for Investment and Development of Vietnam (BIDV) - North Sai Gon branch, in International settlement field. This is one of large banks with developed international settlement services. Because BIDV- North Sai Gon branch has experienced staffs, it is chosen by many businesses to make international transactions. Moreover, BIDV- North Sai Gon branch continuously develop its services to meet the demands of many export import businesses with various kinds of services: Remittances, Collections, Documentary credits… Having perceived that point, I have focused on studying, observing and practicing carefully main transactions and processes relating to International settlement service at BIDV in time of internship. Thus, I would like to choose it as a subject for my internship report: “Process of advising letter of credit at Bank for Investment and Development of Vietnam – North Sai Gon branch” embraces three major chapters that describe clearly about the bank and what I have learnt in internship process.  Chapter I: An overview about Bank for Investment and Development of Vietnam – North Sai Gon branch  Chapter II: Internship process at Bank for Investment and Development of Vietnam – North Sai Gon branch  Chapter III: Recommendation for the bank



INTERNSHIP REPORT FOREIGN LANGUAGE FACULTY ABBREVIATIONS BIDV L/C M/T T/T CIF TF.SIBS Bank for Investment and Development of Vietnam Letter of credit Mail transfer Telegraphic transfer Code of customer in SIBS system of BIDV Software undertaking by Silverlake to support International Settlement transaction INCOTERM UCP SWIFT International commerce terms Uniform Customs and Practice for Documentary credit Society for Worldwide Interbank Financial Telecommunication VAN THI HANG 2 .

division of companies. Ha Noi (+84-4).. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM 3 (BIDV) – NORTH SAIGON BRANCH VAN THI HANG .3220 0422 (+84-4).251. division of joint ventures. BIDV is organized like a model of State   Logo: Chartered capital: VND 28.382.3220 0399 www. BIDV is divided into 5 large divisions: division of commercial bank with 114 branches.1.NORTH SAIGON BRANCH 1. 237 transaction offices. Nowadays. BIDV has had many different names appropriate to each period of construction and development of Vietnam as follow:    Bank for Construction of Vietnam (26/04/1957-24/06/1981) Bank for Investment and Construction of Vietnam (24/06/1981-14/11/1990) Bank for Investment and Development of Vietnam (from 14/11/1990) As a special governmental enterprise.000.      BIDV’S BRIEF INFORMATION Foreign name: Headquarter: Tel: Fax: Website: BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM BIDV Tower. division of investments. 1957 by the Prime Minister. 177/TTg approved on 26th April.2. Hoan Kiem Dist.000 Bank for Investment and Development of Vietnam (BIDV) was established under the government decree No. 140 points and transactions counters. 35 Hang Voi. 1.bidv. division of business units.INTERNSHIP REPORT FOREIGN LANGUAGE FACULTY CHAPTER I: AN OVERVIEW ABOUT BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM (BIDV) . and 700 ATMs all over 64 provinces and cities in

At the time of establishment. Le Thi Rieng. Tan Binh Dist.. This is 81st branch and 91st member of BIDV. the Board of Directors approved to change the name of BIDV.DIRECTOR CUSTOMER RELATIONSHIP DIVISION VICE . BIDV Tan Binh branch was the first level branch. 244 approved by the Board of Directors on 25th November. 2007.Tan Binh branch into BIDV. Cu Chi. in order to make BIDVTan Binh branch promote their roles in business. located at 354A Cong Hoa. Tan Binh. BOARD OF DIRECTORS BOARD OF DIRECTORS VICE . At first.North Sai Gon branch.DIRECTOR CUSTOMER RELATIONSHIP DEPARTMENT OPERATION DIVISION PERSONAL CUSTOMER DEPARTMENT BUSINESS CUSTOMER DEPARTMENT TREASURY DEPARTMENT CREDIT MANAGEMENT DEPARTMENT RISK MANAGEMENT DIVISION RISK MANAGEMENT DEPARTMENT INTERNAL CONTROL DIVISION FINANCIALACCOUNTING DEPARTMENT HUMAN RESOURSE DEPARTMENT CORPORATE PLANNING DEPARTMENT Figire 1: ORGANIZATION SYSTEM OF BIDV. 2005 in order to establish a nationwide network. Tan Binh branch had total assets of over 500 billions VND and two transaction offices. Now BIDV – North Sai Gon branch has six transaction offices located at some districts in Ho Chi Minh city such as: Tan Phu. On 7th December. Ho Chi Minh City. Ward 13.NORTH SAIGON BRANCH VAN THI HANG 4 . it named Tan Binh Branch. Go Vap.INTERNSHIP REPORT FOREIGN LANGUAGE FACULTY It was established under the government decree No. Cong Hoa.

the officer of the Business customer department. I was assigned many assignments and duties under the instruction of Mss.2. the issuing bank agrees to pay against bills of exchange (drafts) and commercial documents that comply with the terms and conditions of the documentary credit. Whereby.INTERNSHIP REPORT FOREIGN LANGUAGE FACULTY CHAPTER II: INTERNSHIP PROCESS AT BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – NORTH SAI GON BRANCH 2. sending fax to customers Printing transaction receipt of transactions arising in a period of time of customer Arranging and numbering documents in a set of documents Delivering documents to the Accounting department Observing remittance process: Implementing process of advising L/C Issuing Cheques for customer Answering telephone of customer 2. I have chance to read many documents about activities of BIDV.1. My responsibility is helping officers in some tasks relating to international settlement service:          Reading documents Photocopying.2. IMPLEMENTATION METHOD 2. Classification: Documentary credits are classified base on the level of comfort that they offer to the beneficiary or the payment methods envisaged in the documentary credits: VAN THI HANG 5 . especially documents relating to Documentary credit method: Definition: A documentary credit (also known as a letter of credit) is a written undertaking by a bank (the issuing bank) as the request of an importer (the applicant) in favor of an exporter (the beneficiary).North Sai Gon branch. HANDLING TASKS When working as an intern at BIDV.1 READING DOCUMENT: in the internship process at bank. Nguyen Hoang Tho.

forward the original L/C to exporter. issuing bank will pay. Reciprocal L/C. exporter collects documents stipulated in the documentary credit (6) (7) (8) Exporter presents the documents to the advising bank to ask for payment from exporter Advising bank check the documents and sends them to issuing bank. VAN THI HANG 6 . issuing bank refuse to pay. Advising bank debit to exporter’s account and advises to exporter. Negotiable L/C. After delivery. if documents are not relevant. If the documents are relevant. Confirmed L/C. Revolving L/C. Back to back L/C. Issuing bank checks the documents. (9) (10) Issuing bank send documents to importer so that importer can receive goods. Red-clause L/C. payment by letter of credit Importer instructs his bank to open a letter of credit in favor of the beneficiary Issuing bank issues and presents the L/C to exporter’s bank (advising bank) Advising bank advises the beneficiary about the opening of L/C. (5) Exporter checks the terms of the credit and make goods ready for shipment. Process of Documentary credit method: (8) ISSUING BANK (6) (7) (3) ADVISING BANK (11) (10) (2) (4) (6) (7) (4) IMPORTER (1) Figure 2: THE PROCESS OF DOCUMENTARY CREDIT METHOD EXPORTER (1) (2) (3) (4) Importer and exporter sign a sales contract.INTERNSHIP REPORT FOREIGN LANGUAGE FACULTY Irrevocable L/C. (11) Importer checks the documents and pay for issuing bank. Transferable L/C. Standby L/C.

I will inspect the authenticity of L/C. They also need to be classified into four groups: input.North Sai Gon branch (in this case is advising bank) Process of advising L/C begins from the third step of documentary credit process.3 ARRANGING. When business customer department of BIDV receive L/C from Issuing bank.2.1 Receive and check the authenticity of the L/C Business customer department receive L/C (or amendment L/C) from one of following banks: Issuing bank at foreign country Advising bank in foreign country 7 VAN THI HANG . 2. three months. I will check his payment account and issue cheque if it is adequate and legal. 2. The sequence of advising L/C is as follow:     Receive and check the authenticity of the L/C Check the contents of the L/C Advice L/C to exporter Charge the advising fee 2.INTERNSHIP REPORT FOREIGN LANGUAGE FACULTY 2. payment. I would like present clearly one part of the whole process of a documentary credit I have done in of internship process. they need to be checked to see whether they are legal and adequate or not.2 PRINTING TRANSACTION VOUCHERS: Business customer has a deposit account at BIDV to pay for activities of business.5 IMPLEMENT PROCESS OF ADVISING L/C Within the scope of the internship report subject. six months or a year).2. business will ask for transaction vouchers that reflect transactions arising in active period of business. These vouchers have to be printed clearly.2. NUMBERING DOCUMENTS IN A SET OF DOCUMENT: Documents need to be arranged in time order.2. 2.5. complete and have stamp of Business customer department.2. In a working period of time ( half month. output. he has to apply a requirement of issuing cheque. That is advising L/C at BIDV. a month. In addition. then send the original L/C to exporter to confirm whether the L/C agrees with the sales contract or not.4 ISSUING CHEQUE FOR CUSTOMER: if a customer who has payment account at BIDV wants to use cheque for payment. receipt.

2. complete and accurate Normally.5. If the authorized signature on L/C is incorrect or not registered at BIDV.2. my instructor checks the contents of the L/C in order to help advising bank notice some special conditions.5.1. 2. After receiving signature verified telegram from issuing bank.2 If L/C is opened by TELEX When receiving L/C opened by TELEX.INTERNSHIP REPORT FOREIGN LANGUAGE FACULTY - Domestic advising bank After receiving L/C in form of mail.2 Check the contents of L/C After my verifying the authentication of L/C. I inform manager of Business customer department to send a verification telegram to issuing bank to ask them to supply correct TESTKEY. My duty was to check the authenticity of authorized signature by comparing the previous standard signature of the BIDV’s system.1.1 L/C is opened by mail The authorized signature of the L/C issuing bank have to be on the L/C. If TESTKEY is wrong.5. To make a good checking of L/C. teller will check some following contents: VAN THI HANG 8 . errors or irregularities process of L/C. Then check the apparent authenticity of L/C as follows: 2. BIDV have to check the TESTKEY and inform the exporter that the authenticity of the L/C has been verified.5. adequacy of L/C Contents of terms of L/C should be clear. it means L/C has been verified because SWIFT system automatically decodes L/C as soon as it receives information from foreign L/C issuing bank.2. BIDV base on two requirements   Check the continuity. I will record arrival time of L/C and mark RECEIVED.3 If L/C is opened by SWIFT When BIDV receive a L/C opened by SWIFT.1. I informed manager to ask issuing bank to verify the authenticity of L/C. 2. There are two cases:   If the authorized signature on the L/C is in accordance with specimen signature at BIDV.2. Then inform the exporter so that exporter can ask importer to revise prior to implementation of L/C. I check the TESTKEY. SWIFT. TELEX. I will inspect the contents of L/C and inform to exporter.2.

a.5. place of delivery. type of L/C.4 Charge fee and advise L/C to customer BIDV establish advising L/C letter after authentication L/C and note factors that may cause adverse to customer. expiry date…) to TF-SIBS system.2. Fee will be charged by current fee schedule plus 10% VAT.5.2. goods. 2. c. 1 copy if by telegram)  Original L/C  Charge receipt (3 copies)  Debit advise (3 copies) VAN THI HANG 9 . International payment department have to input accurately. include advising fee. confirming fee. telegram… Make some documents required when advising L/C  Notification of L/C letter (3 copies if by mail.INTERNSHIP REPORT FOREIGN LANGUAGE FACULTY            2. place of shipment.3 Place and date of issuing L/C L/C issuing bank (payment bank) Number and type of L/C Name and address of parties in the L/C Value of L/C ( amount of money stated on the L/C) Expiry date and place of presentation of L/C Shipment date Transshipments and partial shipment Required documents Payment bank Rule. Current customer: international payment department use Current customer code to b. UCP or Incoterm Input data to TF.SIBS system register transaction to TF – SIBS system. issuing bank. completely information relating to transaction (information of customer. Customer will receive original L/C after pay charge. Customer with CIF number: use CIF code of customer to register to system. Bank automatically debit to deposit account to charge the fee. validity date.

PRACTICAL SKILLS:  Language skill: at BIDV. and important international documents sent to BIDV are in English. Moreover. 2.1 1. Thanks to that.2% VALUE OF PAYMENT 20 USD 20USD Table 1: GUARANTEE FEE SCHEDULE OF BIDV 2.AMENDMENT OF INCREASING MONEY . Hence.4 LIST OF FEE GUARANTEE GUARANTEE ADVISE OF FOREIGN BANK ADVISING OF ISSUING L/C ADVISING OF AMENDMENT L/C ADVISE OF CANCELATION COLLECTION OF FEE UNDER ADVISED L/C . ACHIEVEMENTS 1.3. Bank draft or Western Union). when reading.INTERNSHIP REPORT FOREIGN LANGUAGE FACULTY CODE D 1 D001 D002 D003 D004 D005 D006 D007 D008 D009 1. VAN THI HANG 10 . most of software.OTHER AMENDMENT FEE (without VAT) LEAST COST 25 USD 15USD 15USD 15 USD 0. I have a chance to review. Documentary credit…and especially in Documentary credit method.T/T.6 1.2 1.COLLECTION . practice and compare what I have learnt at university in Bank accounting and International settlement subject. I understood intimately about many kinds of service: Remittance (Mail transferMT.3 1.5 1. Collection. inputting data. observing business activities. Telegraphic transfer. I contacted with many troubles in reality and knew how to solve them. UCP and can apply them in some situations of International settlement. KNOWLEDGE OF INTERNATIONAL SETTLEMENT: When working with documents.PAYMENT GUARANTEE CONFIRMATION AMENDMENT CONFIRMATION .AMENDMENT OF RENEW VALIDITY DATE . international settlement service at a large bank as BIDV. data input. I understood many terms and conditions in Incoterm.

PRACTICAL EXPERIENCES:  Discipline: Following the BIDV’s rules makes me more disciplined. checking documents and inputting data. Thanks to that. I used computer regularly to input data.  Documentary skill: thanks to contacting regularly with many kinds of documents at bank. numbered.  Carefulness: The way of working of officer in Business customer department make me knows that every task in activity of BIDV must be done carefully even the most simple task or more complex task.INTERNSHIP REPORT FOREIGN LANGUAGE FACULTY arranging.  Computer skill: process of internship at BIDV. especially in international settlement. This is very important to a professional business environment as BIDV. used copiers. thanks to the whole. Besides. I learnt how to express my ideas to customer or colleague: communication must be clear and concise because if I am not direct and my language is ambiguous. It is one of the best ways for me to apply and use my vocabulary and grammar into practice. I instructed customer to fill the form. classifying. signed and stamped of Business customer department. I am sure this is very important for my future career. CONTRIBUTIONS Through process of interning at BIDV. used fax machine to fax documents to customer. and do some simple procedure when making a transaction. I got used to with arranging or storing documents.hearted guidance of every officer at Business customer department. I can improve my translation skill by translating contracts’ details into English or Vietnamese. 4. I have archived much valuable experience that I cannot learn at university.  Communication skill: interning at BIDV gives me a chance to contact directly and through telephone with customers. VAN THI HANG 11 . every document are arranged. For example. I always went to work on time and finished my responsibilities in internship time. it will be difficult for clients or co-workers to accomplish any of my expectations. printers to copy documents. 3. I can broaden my vocabulary and knowledge in business. Now I am proficient in using many kinds of machine in office.

printing transaction vouchers. I am sure that my contributions have helped her work easier and faster. business activities of Business customer department of BIDV become more comfort and more effective.INTERNSHIP REPORT FOREIGN LANGUAGE FACULTY To acknowledge that guidance. Therefore. VAN THI HANG 12 . transfer documents… Working at Business customer department is busy because of large volume of work. I have tried to contribute my own effort to support my instructor some small works when interning at bank: Photocopying.

Firstly. Secondly. I still would like to contribute some recommendations with the hope to improve effect of BIDV’s activities in International settlement service. However. BIDV should establish a good relationship with many banks all over the world. BIDV should help businesses to understand clearly about terms and condition of UCP and Incoterm when making an international transaction. VAN THI HANG 13 . especially documentary credit service. Import and export activity in our country has developed recent years. In business. bank should supply customer more service such as consulting service to help business choose appropriate and useful commercial terms when signing an import and export contract. In order to deliver good international payment services to customer. customer is an important factor that will decide that bank will success or fail. establish and maintain relationship with export-import business.INTERNSHIP REPORT FOREIGN LANGUAGE FACULTY CHAPTER III: RECOMMENDATIONS FOR THE BANK Time of internship at BIDV is a useful time in my student life. Thirdly. I realized that BIDV is a prestigious bank for both domestic and foreign market because it supply customers many effective services especially in International settlement service. They fell difficult in signing a contract followed terms of UCP and Incoterm. BIDV is a prestigious in international payment field and it has a good relationship with many big enterprises. establishing and maintaining good relationships with foreign banks is very important. export-import businesses of our country still lack of experiences in signing sales contract. However. BIDV still should be more effort to find more partners both in foreign country and in Vietnam so that it can widen its network all over the world. It helped me to prepare carefully for my career future for both knowledge and experience. Therefore.




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