2020

NGUYEN PHUONG THAO

NATIONAL ECONOMICS UNIVERSITY
ADVANCED EDUCATIONAL PROGRAMS

BACHELOR THESIS
MAJOR: FINANCE
ADVANCED FINANCE

DEVELOPING PAYMENT CARD SERVICES AT VIETNAM

INTERRNATIONAL JOINT STOCK COMMERCIAL BANK –
DONGDA BRANCH

NGUYEN PHUONG THAO

HANOI, 2020
 NATIONAL ECONOMICS UNIVERSITY
ADVANCED EDUCATIONAL PROGRAMS

BACHELOR THESIS

DEVELOPING PAYMENT CARD SERVICES AT VIETNAM

INTERNATIONAL JOINT STOCK COMMERCIAL BANK –
DONGDA BRANCH

Student: Nguyen Phuong Thao

Major: Finance
Class: Advanced Finance 58C
Student’s ID: 11164763
Supervisor: Assoc.Prof.Dr Nguyen Minh Hue

HA NOI, 2020
 TABLE OF CONTENTS
TABLE OF CONTENTS.............................................................................................i
ACKNOWLEDGEMENTS.......................................................................................iii
STATUTORY DECLARATION...............................................................................iv
LIST OF ABBREVIATIONS......................................................................................v
LISTS OF TABLES AND FIGURES........................................................................vi
EXECUTIVE SUMMARY.......................................................................................vii
INTRODUCTION.......................................................................................................1
CHAPTER 1. THEORICAL BACKGROUND ABOUT PAYMENT CARD
SERVICE DEVELOPMENT AT COMMERCIAL BANK.....................................3
1.1. Overview of Commercial Bank...........................................................................3
1.1.1 Definition........................................................................................................3
1.1.2 Characteristics of commercial banks..............................................................9
1.1.3 Major activities of commercial banks...........................................................10
1.2. Payment card service at commercial bank.......................................................14
1.2.1. Definition.....................................................................................................14
1.2.2. Classification...............................................................................................14
1.2.3. Viewpoints about developing payment card servives at commercial bank...16
1.2.4. Assessment ratios of developing payment card service at commercial bank16
1.3. Factors affecting the development of payment card service at commercial bank
.................................................................................................................................. 17
1.3.1. Objective factors..........................................................................................17
1.3.2. Subjective factors.........................................................................................20
CHAPTER 2: CURRENT SITUATION OF PAYMENT CARD SERVICE AT
VIETNAM INTERNATIONAL JOINT STOCK COMMERCIAL BANK –
DONG DA BRANCH................................................................................................22
2.1. Overview about Vietnam International Joint Stock Commercial Bank..........22
2.1.1 The process of information and development...............................................22
2.1.2 Organizational structure and personnel.......................................................23
2.1.3 Functions and duties of the departments......................................................24
2.1.4 Business performance from 2017 – 2019 of VIB...........................................25
2.2. Situation of payment card service at Vietnam International Joint Stock
Commercial Bank – Dong Da Branch....................................................................32
2.2.1. General provisions on paymetn card service of Vietnam International
Commercial Joint Stock Bank – Dong Da Branch.................................................32
2.2.2. Card products of Vietnam International Commercial Joint Stock Bank - Dong
Da Branch.............................................................................................................32

i
 2.2.3. Development of payment card of Vietnam International Commercial Joint
Stock Bank - Dong Da Branch in the period of 2017 – 2019.................................38
2.3. Assessment of the development of payment cards of Vietnam International
Commercial Joint Stock Bank - Dong Da Branch in the period of 2017 – 2019...51
2.3.1. Achivements.................................................................................................51
2.3.2. Limitations...................................................................................................52
2.3.3. Reasons........................................................................................................53
CHAPTER 3: SOLUTIONS FOR DEVELOPING PAYMENT CARD
SERVICES AT VIETNAM INTERNATIONAL JOINT STOCK
COMMERCIAL BANK - DONG DA BRANCH:...................................................55
3.1. Orientation of payment card service development of Vietnam International
Commercial Joint Stock Bank - Dong Da Branch.................................................55
3.1.1. Development strategy orientation................................................................55
3.1.2. The objective of developing the payment card service of the branch in the
future..................................................................................................................... 55
3.2. Solutions to developing payment card services at Vietnam International
Commercial Joint Stock Bank - Dong Da Branch.................................................56
3.2.1. Technology solutions...................................................................................56
3.2.2. Product solutions.........................................................................................56
3.2.3. Solutions for marketing activities - customer service...................................57
3.2.4. Human resource solution.............................................................................57
3.2.5. Expand the service network and card acceptance units...............................58
3.3. Some recommendations....................................................................................59
3.3.1. Recommendations to the State Bank............................................................59
3.3.2. Recommendations to the Vietnam Bank Card Association..........................59
3.3.3. Recommendations to Vietnam International Commercial Joint Stock Bank 60
CONCLUSION..........................................................................................................61
References................................................................................................................... 62

ii
 ACKNOWLEDGEMENTS

I am extremely grateful to all people for supporting me this report.

First of all, I would like to express my deep gratitude to Mr. Le Ngoc Thanh, sales
manager of VIB Dong Da Branch, who gave me the opportunity to practice in a
professional and dynamic environment like Vietnam International Commercial Joint
Stock Bank. This chance was really useful for me in getting acquainted with banking
and accumulating my own experiences for my future job.
Next, I would like to thank Mrs. Nguyen Minh Hue, my instructor at National
Economics University for guiding, suggesting, and giving useful advices for me to
complete this internship report. She was really a wonderful motivation of me.
Last but not least, I really appreciate the help of my family and my friends. They are
always by my side when I face difficulties.

iii
 STATUTORY DECLARATION

I herewith formally declare that I myself have written the submitted Barchelor
Thesis independently. I did not use any outside support except for the quoted literature
and
other sources mentioned at the end of this paper.
I clearly marked and separately listed all the literature and all other sources
which I
employed producing this academic work, either literally or in content.

Hanoi, ...../...../ 2020

Student

iv
 LIST OF ABBREVIATIONS
Explanation
VIB Vietnam International Commercial Joint Stock Bank
ATM Automatic Teller Machine
POS Card Reader
SMEs Small and Medium Enterprises
SSM Sales and Servive Meeting
NPL Non-performing Loan Ratio
GBAF Global Banking & Finance Review
CAA Card Accreditation Agency
EAT Earning After Tax
ROA Returrn on assets
ROE Return on Equity
EPS Earning Per Share

v
 LISTS OF TABLES AND FIGURES

List of tables

Table 1: The situation of capital mobilization in the period from 2017 - 2019................26
Table 2: The situation of outstanding loans from 2017 - 2019.........................................28
Table 3: Business results 3 years from 2017 to 2019.......................................................30
Table 4: Card issuance situation for the period of 2017 - 2019........................................38
Table 5: Account balance of card payment period 2017 – 2019......................................41
Table 6: Income from card payment services for the period of 2017 - 2019....................43
Table 7: NPL ratio of credit cards for the period of 2017 - 2019.....................................44

List of figures

Figure 1: Organizational model of Vietnam International Commercial Joint Stock

Bank VIB - Dong Da Branch...........................................................................................23
Figure 2: Growth rate of number of cards issued in the period of 2017 - 2019...............40

vi
 EXECUTIVE SUMMARY

This report is about my practice at VIB Dong Da branch within two months. In
this report, I have learned about the whole VIB system in general and the VIB Dong
Da branch in particular through observation and experience during my internship
The main purpose of internship is to learn by working in practical environment.
This report presents an analysis and evaluation of the current and prospective
financial stability and the structure of VIB, the specific information about VIB Dong
Da branch and my views about the bank.
My report is divided into three main chapters.
In the first chapter, I present introduction about Vietnam International
Commercial Joint Stock Bank (VIB) as a whole. This chapter consists of two parts.
The first part is overview of Vietnam International Commercial Joint Stock Bank. The
next part is about structure of the bank.
In the second chapter, I describe further details of VIB Dong Da as well as my
internship activities in Dong Da branch. In this chapter, I focus on critical analysis of
internship activities.
The last chapter, I provide some conclusion.

vii
 INTRODUCTION
1. Rationale:
As we all know, banks act as an intermediary to pay customers, making the
goods circulation process conducted effectively. The economy is growing, the
frequency of transactions increases and takes place faster. Under these conditions,
enterprises cannot pay by themselves, but with the participation of banks and banks
becoming payment intermediaries in the economy.
When the level of production and circulation of goods is low, cash is still widely
used, showing its flexibility to help the trading relationship take place quickly. But
when this level has reached a high level, cash payments have revealed shortcomings,
such as when the buyer and seller are far apart in terms of geographical location or
when the item of great value needs a A large amount of cash is difficult to store,
transport, etc. Not to mention the cash payment will bring disadvantages such as:
- The cost of society to carry out payment activities (such as government costs
for printing, checking, counting, storage, transportation of the banking system,
transaction entities) costly.
- Making transactions with large amounts of money is easy for criminals to use to
evade taxes and frauds to delay the payment of debts to banks and creditors.
- Using a large amount of cash is also an opportunity for criminals to circulate
fake money, money laundering, which threatens the interests of individuals,
organizations and the whole society as well as the national security situation.
From this fact, the payment card service was born to meet the requirements of the
economy as well as providing a safe and convenient payment solution for everyone.
2. Research objectives:
Systemize the theoretical basis for the development of payment card services at
commercial banks.
Assessing the status of development of payment card services at Vietnam
International \ Joint Stock Commercial Bank, Dong Da branch, thereby showing the
remaining limitations in card service at International Joint Stock Commercial Bank
Vietnam.
Proposing some solutions to develop payment card services at Vietnam
international joint stock commercial bank.
3. Scope of research:
Spatial scope: The study was conducted at the branch of Vietnam International
Commercial Joint Stock Bank
Time range: Research issues related to the topic over the years from 2017 to 2019
and propose solutions until 2020.

1
 Content: Analyzing and assessing the status of card service development
activities of Vietnam International Commercial Joint Stock Bank. Proposals and
orientations and solutions for developing payment card services at Vietnam
International Commercial Joint Stock Bank.
4. Research method:
The topic uses qualitative methods in collecting and processing information. The
information is aggregated and analyzed based on both secondary and primary data
sources:
- Secondary data source: Collect public reports on internet media, books, and
internal documents on non-cash payments, business results when applying non-cash
payment from Card Issuing Department, Financial Planning Department, necessary
statistics from Vietnam International Commercial Joint Stock Bank and State Bank of
Hanoi. Based on secondary data sources analyzing and evaluating customers on the
general operation status of payment card services of Vietnam International
Commercial Joint Stock Bank.
- Primary data source: Collecting opinions through questionnaire questionnaires
from a number of subjects: customers, employees of Vietnam International
Commercial Joint Stock Bank and collecting opinions from Bank's leaders Vietnam
international stock trade and other banks in the area. The primary data source will help
to create confidence for the information given in the topic as well as make general
judgments about the use of payment card services of Vietnam International
Commercial Joint Stock Bank.
5. Research Structure:
With the knowledge gained during the internship, I decided to choose the topic:
"Solutions to develop payment card services at Vietnam International Joint Stock
Commercial Bank - Dong Da Branch" to specialize in graduation thesis. The topic
consists of 3 main parts with the following content:
CHAPTER 1: THEORETICAL BACKGROUND ABOUT PAYMENT CARD
SERVICE DEVELOPMENT AT COMMERCIAL BANK
CHAPTER 2: CURRENT SITUATION OF PAYMENT CARD SERVICE AT
VIETNAM INTERNATIONAL JOINT STOCK COMMERCIAL BANK - DONG
DA BRANCH
CHAPTER 3: SOLUTIONS FOR DEVELOPING PAYMENT CARD
SERVICES AT VIETNAM INTERNATIONAL JOINT STOCK COMMERCIAL
BANK - DONG DA BRANCH

2
 CHAPTER 1. THEORICAL BACKGROUND ABOUT
PAYMENT CARD SERVICE DEVELOPMENT AT
COMMERCIAL BANK
1.1. Overview of Commercial Bank
1.1.1 Definition
The French Banking Law (1941) also defined: “Commercial banks are
enterprises or establishments whose occupation is often to receive public money in the
form of deposits, or in other forms. and use that resource for themselves in discount,
credit and financial operations. ”
What is a commercial bank?
In Vietnam, the Banking Ordinance of May 23, 1990 of the State Council of
Vietnam determined that “A commercial bank is a monetary trading organization
whose main and regular activity is to receive deposits from customers. goods with the
responsibility to repay and use that money to lend, perform discount operations and as
a means of payment”.
From a diversified diversion into available assets, a commercial bank is
understood as a bank with the following characteristics:
Commercial bank is a financial intermediary, an enterprise operating with the
following capital sources:
 Equity capital:
The own capital of a commercial bank is the monetary value created by the bank
and belongs to the bank. This type of bank capital can be used for long term to form
equipment, houses for banks. This capital accounts for a small proportion of the total
capital of the bank but is a mandatory legal condition when establishing a bank.
Because of its stability, the Bank can use it for various purposes such as providing
facilities, purchasing fixed assets, investing or contributing capital in joint ventures ¼
own capital determining solvency when the Bank is at risk. The growth of equity will
determine the capacity and development of commercial banks. The Bank's own capital
is formed based on the organizational form of a commercial bank such as: state-owned
commercial banks, joint-stock commercial banks or joint-venture commercial banks¼
Equity includes: basic equity, supplemented equity.
+ Basic equity: is charter capital - legal capital
Charter capital: contributed by shareholders and recorded in the charter of
operation
Banks, at a minimum, must be equal to legal capital.

3
 Legal capital: Is the minimum amount of capital required to establish a bank
due to law rules.
+ The additional equity capital during the operation of the bank will increase
the owner's equity in various ways depending on the specific conditions and funds
such as: Reserve fund to supplement charter capital, special reserve fund Special and
other funds. Internal sources (sources from profits): In terms of net income greater than
zero, bank owners tend to increase capital by converting a portion of net income into
investment capital. The rate of accumulation depends on the banker's consideration of
accruals from profits and consumption. Long-term banks with large net income, capital
accumulation from profits will be higher than the capital of the original owner.
External source: is an additional source from issuing additional shares to
expand the operation scale or to renovate equipment or to meet the capital
requirements of the owner as prescribed by the State Bank.
+ If issuing common stock must share power and profits
+ If issuing preferred stock, there is no fixed power and dividend sharing
+ If convertible bonds are issued, there is no loss of ownership and the profits
can be converted into savings but the bond is still a debt and the bank has to leave a
fund to pay debts.
The characteristic of this type of mobilization is that it does not often, but helps
the bank to obtain the amount of equity when necessary.
Funds:
+ Reserve fund for supplementing charter capital: The fund is used for
strengthening purposes
initial equity. The annual profit added to this fund until it reaches 50% of equity will
turn into equity.
+ Special reserve fund: is a fund used to reserve to offset risks in the process
business to preserve capital.
+ Other funds: Including undistributed profits, welfare funds, merit funds bonus
and fixed asset depreciation fund.
The above funds are owned by the bank. The source is from the income of a
commercial bank that can be converted into equity which can be considered as a part
of the bank's equity (supplementary capital) because it has a number of characteristics
such as: long-term use, can invest in houses and land and may not need to be repaid
when due.
Mobilized capital:
Deposits are monetary values that the bank raises from economic organizations and
individuals in society, through the performance of credit, payment and other business

4
operations and to be used. as capital for business. The mobilized capital is the property
of different owners, the Bank has the right to use but not the ownership and is
responsible for repaying both the principal and the interest on time when it is due or
when they need it. Capital mobilization plays a very important role in all business
activities of commercial banks. Mobilized capital is constantly increasing, proportional
to all economic sectors in society. Therefore, commercial banks are always interested
in exploiting to expand credit. But this capital is only used for part of the business, and
must reserve a reasonable percentage to ensure solvency. Mobilized capital includes:
Deposit capital and issuance of valuable papers.
 Deposit capital:
+ Demand deposits: Deposits which customers deposit into the bank but can be
withdrawn at any time and the Bank must satisfy this requirement (deposit to use
checks, use cards to withdraw money or to perform a money transfer, LC service, or
collection service). Demand deposits with low interest or unpaid interest, including
demand deposits and pure demand deposits.
Payment deposit (transaction deposit): This is the money of the business or fish
to ask bank to hold and pay for households. The Bank fulfills the payment needs of
businesses and individuals within the permitted balance. Cash receipts from businesses
and individuals can be entered into deposit deposits
Payment on demand, with this deposit the interest rate is very small (or equal to 0)
Demand deposits are not only stable for individuals, but also very stable for
businesses.
Payment deposit account is the account where the withdrawal and deposit are
made by check or wire transfer.
Current account: Is the account when balance is outstanding and when there is
balance.
However, at the Bank there is always a difference between in and out on each
payment deposit account, usually the import is greater than the export. From there,
create a temporary idle money and the Bank can use a part to do business.
Net demand deposits: Is a deposit for the purpose of safety
products, not for payment, when needed, customers can withdraw to spend and the
Bank must satisfy their requirements. The bank can use the excess if it can afford to
pay.
+ Time deposit: The amount of money that is agreed upon between the
customer and the Bank on the time of money withdrawal. In principle, customers
cannot withdraw money before maturity. Term deposits hold an intermediary position
between payment deposits and savings deposits, which is a relatively stable source of

5
money, and the Bank can use most of its current account balance. Therefore,
commercial banks are always seeking to diversify this type of deposit by applying
different terms with different interest rates to meet the needs of customers. Term
deposits are not used for payment, often have a high interest rate and a longer term.
+ Savings deposit: As part of the income of unused, temporarily idle workers.
They deposit in the Bank with the purpose of safely accumulating money and earning
interest. There are two types of savings deposits: demand savings and term savings.
Demand savings deposit: An amount that can be withdrawn at any time but
must not use payment instruments to pay customers.
Time savings deposit: A deposit with the agreement of the customer
Bank and Bank on terms of deposits and withdrawals, with interest rates higher than
demand savings deposits.
Deposits from other banks are the source of money of commercial banks
deposited for the purpose of payment on behalf of others or some other purpose.
This is the main source of capital for currency trading, it is one of the most
stable sources of capital for commercial banks. However, term deposits of enterprises
are mainly short-term because enterprises operate periodically, when temporarily
adding capital, they will send to banks. On the other hand: Deposit rates are smaller
than loan rates smaller than the average rate of return of the economy. If the lending
rate is greater than the deposit rate: The bank is profitable. If the average rate of return
of the economy is <lending interest rate <mobilization interest rate, people put all their
money into banks and do not do business so the bank cannot lend to anyone, this
cannot happen. Therefore, they never send capital to medium and long term banks
because the purpose they aim to is the average rate of return of the economy.
Issue valuable papers:
In addition to the above methods, commercial banks also issue certificates of
deposit, bonds and promissory notes. In essence, raising capital by issuing valuable
papers.
+ Bank draft is a promissory note issued by a bank with a term of less than 12
months: Its characteristics are that it manages the interest rate policy in the short term,
is highly liquid, the issuing bank is more proactive in terms of regulation. Operating
tissue (only through general manager)
+ Bank bonds are debt acknowledgments of banks with a term of more than 12
months: Characteristics: Managing the interest rates in long-term, with high
liquidation, being able to buy and sell on the stock market, issuing via bank governor
+ Certificate of deposit: Valuable papers issued by the Bank in installments,
depending on the purpose with the approval of commercial banks, this form of capital

6
mobilization by commercial banks has to pay higher interest rates. compared to the
ordinary deposit interest rate.
Through the above presentation, the mobilized capital is the source of capital and
plays an important and major role in the business activities of commercial banks,
accounting for the largest proportion of the total capital (about 80%). Commercial
banks must respect the level of capital mobilized in accordance with the law.
 Capital borrowed
Borrowed capital: is an additional loan to meet the demand for payment when the
ability to raise capital is limited. This is the main source to combat banks' liquidity
risk.
- Borrowing from the central bank is a loan to address the urgent needs in payment
of commercial banks. The main form of lending to the State Bank is rediscount
(refinancing). Commercial papers were discounted (rediscounted) by commercial
banks as their assets. When the bank needs money, these bills are rediscounted at the
state bank. Normally, the State Bank only rediscounts for commercial papers with
short maturities, high solvency and in line with the goals of the State Bank in each
period. In the absence of state commercial bank loans to commercial banks in the form
of refinancing under certain credit limits. This capital source accounts for a small
proportion in the bank, it is mainly short-term capital, high or low cost depending on
the monetary policy of the central bank:
+ If the central bank tightens currencies with high interest rates
+ If expansion is bad, interest rates are low
The central bank provides loans for the purpose of safeguarding the entire banking
system and implementing monetary policies. Loans from other commercial banks are
sources of banks borrowing from each other and borrowing from other credit
institutions on the interbank market.
For banks that have excess reserves due to unexpected increase in deposit or loan
reduction, they will be willing to lend to other banks in search of higher interest rates.
For banks that are in shortage of reserves, they need immediate borrowing to ensure
liquidity
+ Overnight loan is an unwritten loan agreement between the two banks mainly
via telephone and telegraph with duration not exceeding one day.
+ Term loan is a written loan agreement with a specific term (weeks, months, or
years). Often, borrowers must have valuable papers to mortgage and give to lenders:
This is a mainly short-term capital source, a relatively large proportion, especially
wholesale banks, high or low cost. depends on supply and demand in the money
market, borrowing in the capital market: Banks borrow money by issuing debt papers

7
(promissory notes, bills, bonds) in the capital market. Medium and long-term loans are
intended to supplement deposit sources to meet medium-term lending and investment
needs. Pine
This is usually an unsecured loan. Banks with good reputation or paying high
interest rates will borrow more. Small banks are often difficult to borrow directly, they
have to go through correspondent banks or guaranteed by investment banks.
The ability to borrow also depends on the level of development of the financial market,
creating the ability to convert for long-term debt instruments of the bank.
 Other capital
Other capital is the entire monetary value that the bank mobilizes through the
provision of payment facilities and the provision of trust services. Including trust
sources, payment sources and other sources
Trust fund is the capital source that the bank has thanks to the good performance of
customer services, especially lending and payment services.
- This capital is usually very low cost
- The proportion of this capital is high or low depending on the quality of service and
the reputation of customers.
Source of payment: This source is formed from non-cash payment activities
such as: Check in the payment process, deposit to open L / C
These banks are the focal point banks in the co-financing sector with the balance of
money transferred from member banks to make loans.
Other sources: Debts such as unpaid taxes, unpaid wages, etc.
In the process of acting as an intermediary for payment, a commercial bank may
create a capital amount called the capital in payment, including: capital on the account
for opening letters of credit, deposit checking deposit account. Deducted from this
account to enter into another account waiting for use, should be called idle money.
Through the agency business, commercial banks attract a salary in the process
of collecting - paying on behalf of customers, acting as agents for credit institutions,
receiving and transferring capital to customers or an investment project
Lending subjects of commercial banks are mainly: Trade, industrial production
and handicrafts ... Invest in or combine the construction of factories and industrial
parks and resell shares.
+ Definition and role of equity of commercial banks
+ Analyzing characteristics of retail banking services of commercial banks

8
1.1.2 Characteristics of commercial banks
* Regarding financial structure and assets: As a large-sized enterprise, very high
debt ratio and special asset structure
Commercial banks are large-scale enterprises in terms of equity and total assets.
In Vietnam, the equity of commercial banks is trillions of dong. For commercial banks
in the world, equity is up to several billion US dollars. The network of Bank branches
is often very large and geographically dispersed. While the scale of equity has been
very large, the commercial banks' capital is mainly debt borrowed from outside the
Bank. Asset structure of commercial banks is more special than other manufacturing
and trading enterprises in the proportion of financial assets. Most of commercial banks'
assets are financial assets, characterized by abstractions, physical forms, which are
simply papers or even electronic data stored in a certain device. In addition,
commercial banks often tend to develop new products and financial instruments.
* Operations of commercial banks always contain many risks and are subject to
the strict control and supervision of the legal system.
In terms of corporate finance, businesses with high debt ratios will also lead to
high operational risks. Besides, the main source of debt capital of the commercial
banks is deposits with characteristics that can be withdrawn before maturity with an
indefinite volume. Bank products and services are not entitled to exclusive and
complex protection regulations. Moreover, commercial banks engage in many
commitments while not yet transferring real capital, which means that they are
diversified and diversified off-balance sheet activities. This point is a distinctive
feature of other types of businesses. For these reasons, commercial bank operations are
more risky than other businesses. Risks in operations of commercial banks are
diversified, at a high level, accumulating quickly and spreading easily. Risks in
operations of commercial banks include specific types of risks such as credit risk,
liquidity risk, interest rate risk, foreign currency risk, usable capital risk, moral risk, ...
Being a large-scale enterprise, with a wide network, operating with many risks,
significantly affecting many socio-economic activities, Commercial banks are under
the strict control and supervision of the legal system. the law. The legal provisions for
commercial banks are widely spread on many aspects of business activities such as
business conditions, bank leader standards, compulsory reserves, deposit insurance,
safety in operations, debt classification and risk provisioning, use of equity capital for
fixed assets, ...

9
1.1.3 Major activities of commercial banks
a, Capital operations (Debt Assets - CAPITAL SOURCES) of commercial banks
The capital raising operation is a prerequisite activity that is meaningful to the
bank itself and to society. In this operation, commercial banks are allowed to use
necessary tools and measures permitted by law to mobilize idle money in society as a
credit capital to lend to the economy. .
Capital sources of a commercial bank include:
- Charter capital (Statutory Capital)
- Reserve funds
- Mobilized capital (Mobilized Capital)
- Borrowed capital (Bonowed Capital)
- Received capital (Trust capital)
- Other capital (Other Capital)
 Charter capital and funds
Charter capital, the bank's funds are called the bank's own capital (Bank’s Capital)
- Source of formation:
+ Owner's equity when the bank is newly established
+ Annual additional capital source from business profits, additional capital
contributed by owners
- Uses:
+ The bank's charter capital is primarily used for:
Building houses, offices, purchasing assets and equipment to create facilities for
banking operations, the rest for investment, joint ventures, medium and long-term
loans
+ Reserve funds of the bank: these are compulsory to be set up during the
existence and operation of the bank, these funds are set up according to the prescribed
ratio on the net profit of the bank, include:
º Reserve fund: is deducted from the annual net profit to supplement the charter
capital
º Financial reserve fund: This fund is used for provision to offset risks and losses
in bank operations
º Professional technical development fund
º Bonus and welfare.
º Profits left to allocate to funds. Exchange rate differences, revaluation of assets
and capital investment in capital construction.
- Characteristics
+ Own capital is a source of high stability and is constantly increasing

10
 + The own capital of the bank is the most important financial element although it
only accounts for a small proportion, it both shows the size of the bank and reflects the
ability of the bank to guarantee its debts to customers. line
 Mobilized capital:
This is the main source of capital of commercial banks, essentially a monetary asset
of owner owners that the bank temporarily manages and uses but must be obliged to
return promptly and fully when customers requested goods. The mobilized capital is
the largest resource
º Source of formation
- Receiving deposits: Demand deposits and term deposits, savings deposits of
organizations and individuals
- Issuing valuable papers: promissory notes, bonds
- Other deposits
º Mobilized capital characteristics
- Unstable capital source
- Capital source accounts for the largest proportion
º Uses
- Reserve setting
- Credit extension
 Capital borrowed:
Borrowing capital plays an important role in the total capital of commercial banks.
This category includes:
º Domestic loans:
+ Central bank loans: The central bank will provide capital for commercial banks
through the discount, rediscount method if the credit documents and vouchers for
rediscounting are of good quality. By doing so, the central bank will become a prop
and last lender for commercial banks
+ Borrow from other commercial banks through interbank market (Interbank
Market)
º Capital borrowed from foreign banks
 Received capital:
This is a source received from financial and banking organizations, from the state
budget ... to fund under programs, projects on socio-economic development,
environmental improvement ... these funds can only be used. according to the defined
objects and objectives
 Other capital:

11
 These are the sources of capital generated during the operation of the bank (agents,
money transfers, banking services ...)

b, Operation of capital use [Credit assets - ASSETS] (credit and investment)

Lending and investment operations are the most important capital-intensive
operations, determining the viability and operation of commercial banks. These are
transactions that constitute the major and important part of the Bank's Credit assets.
Components of the bank's assets include:
+ Reserves
+ Loans
+ Investment
+ Other Assets
 Reserve:
Credit operations of banks aim to make a profit, but must ensure safety in order to
maintain customers' trust. To have the trust on the part of customers, first of all must
ensure solvency: meet the demand for withdrawals of customers. For this reason,
banks have to reserve part of their unused capital to make it available for payment.
This reserve is called reserves. The State Bank is allowed to set a compulsory reserve
ratio from time to time, the payment of interest on compulsory reserve deposits is
prescribed by the government. Reserves include:
+ Primary Reserves: includes cash, deposits at foreign banks, banks
+ Secondary Reserves: (secondary level) is a reserve that does not exist in money
but in securities, meaning that short-term securities can be sold to convert into cash
conveniently. This category includes:
. Treasury Bills
. The draft has been accepted
. Other short-term notes
Called secondary reserves because it is only used when the primary reserve items
are exhausted. When obligatory reserve management, the central bank can apply one
of three methods.
+ Blocking method: Accordingly, the whole reserve level must be deposited into an
account at the central bank and will be frozen to ensure the proper implementation of
the reserve level.
+ Blockade sale method: Accordingly, a part of the compulsory reserve level will
be managed and blocked in a separate account at the central bank.
+ Non-freeze method: according to this method, reserve money is calculated and
made daily on the basis of the actual balance of demand deposits and term deposits.

12
The entire reserve level will not be frozen, it can exist in the form of cash or central
bank deposit or in the form of short-term securities depending on commercial banks,
however by the end of each month, the central bank will check Investigation of
compulsory reserves, if commercial banks fail to comply, they will be fined (warning,
fine if recidivism).
 Credit extension :
The remaining capital source after reserve a part of reserve, commercial banks can
use to provide credit to organizations, individuals including:
 Loans :
It is a professional credit of a commercial bank. In which, commercial banks will
lend to borrowers, borrow some capital for production, business, investment or
consumption. When the borrower is due, the borrower must repay the principal and
interest. The bank controls the borrower, controls the capital use process. Borrowers
have a good sense of repayment so they must pay attention to how to use it effectively
to repay the loan. In lending, the level of risk is very large, cannot recover loans or pay
off in full or on time ... due to subjective or objective reasons. So when lending to
banks need to use measures to secure loans: mortgage, pledge ...
- Discount
This is the (indirect) lending operation that the bank will provide credit capital
to one entity and another entity to perform the loan repayment to the bank. The
subjects in this business include bills of exchange, promissory notes, bonds and other
valuable papers.
- Financial leasing:
A type of medium and long-term credit. In which finance leasing companies use
their own capital or capital from issuing bonds to buy properties and equipment at the
request of lessees and conduct leasing for a certain period of time. The lessee must pay
rent to the finance leasing company periodically. At the end of the lease, the lessee is
entitled to buy or extend the lease term or return the equipment to the lessor
- Bank guarantee:
In this type of business, customers are guaranteed by the bank so that customers
can borrow capital from other banks or perform economic contracts signed.
- Other
 Investment
The investment item has the second most important position after the loan item, it
brings a large and significant income of commercial banks. In this operation, the bank
will use its capital and other stable sources of capital to invest in the following forms:

13
- Contributing capital to buy shares and stocks of the Company; Contributing capital to
buy shares is only allowed by the bank's capital
- Buy government bonds, local government, corporate bonds ...
All securities investment activities are aimed at generating income, on the other
hand, thanks to investment activities, the risks in banking activities will be dispersed,
and on the other hand, investment in government bonds will The risk will be very low
 Other assets:
The remaining items of assets There are mainly fixed assets in order to: Build or
buy more houses to make office buildings, equipment, machines, vehicles,
construction systems. treasury ... in addition to receivables, other amounts ...
c, Intermediary operations
The growing banking services have allowed significant support for capital
exploitation, expansion of investment services, and income for the bank through
commissions and fees. Having a worthy position in the current development stage of
commercial banks. These activities include:
Payment and payment services for customers (money transfer, check collection,
credit card, payment card services ..)
- Receive preservation of valuable assets, important documents and certificates
of the public
- Preserving, buying and selling securities on behalf of clients
- Trading in foreign currencies, gold, silver and gems
- Financial advisory, help companies and enterprises issue stocks, bonds ...
1.2. Payment card service at commercial bank
1.2.1. Definition
Payment of payment card service Payment card service is a high development
of banking services, based on the development of science and technology. This is a
type of banking service provided to customers to help customers spend conveniently,
safely and proactively without using cash. At the same time, card services help the
bank diversify types of services, increase bank income, improve its competitiveness in
the market.
1.2.2. Classification
Along with the development of the economy, payment cards are also
increasingly diverse and plentiful, used for many different purposes. Depending on
research and application purposes, payment cards can be classified according to the
following criteria:
a. Classified by production technology

14
 - Embossing Card (Embossing Card): this is the first card produced, based on
braille engraving techniques. The information on the card is embossed with embossed
information. Currently, the card is no longer used in the market because of its simple
manufacturing techniques, too primitive, and easy to counterfeit.
- Magnetic stripe card: Magnetic stripe is produced based on mailing technique
with two magnetic tapes containing information on the back of the card. Accordingly,
data and information related to customers will be encrypted and stored in magnetic
tapes, which have been commonly used for about twenty years and revealed some
disadvantages:
+ The ability to be taken advantage of is because the information recorded in
the card is not self-encrypted and can be easily read by other readers attached to
computers.
+ Easy to jam information when exposed to the magnetic environment.
+ Magnetic card only carries fixed information, limited data storage area, it
cannot apply encryption techniques, information security ... Therefore, magnetic cards
in recent years have been taken advantage to steal money.
- Smart Card (Smart Card): is the latest generation of payment cards, the card is
equipped with an integrated circuit capable of storing and processing information.
Smart cards are based on computer microprocessor technology by attaching to an
electronic "chip" that is structured like a perfect computer. In addition to the
disadvantages with high issuance costs, this card has many outstanding advantages
compared to the above two types:
+ Smart cards can receive and process data with integrated circuit card
applications and give results.
+ High security and safety: inside the integrated circuit, in addition to the
manufacturer specification, the operating system serial number also contains many
manufacturer security keys, manufacturer keys and keys. personal. b. Classified by
card issuers
- Card issued by the bank: card issued by the bank to the cardholders to use
within the balance of deposit at the bank or within the credit limit allowed. This is the
most popular card used today, not only circulating within the territory of a country but
also can be circulated globally.
- Cards issued by non-credit institutions: are cards issued by large economic
corporations, petrol companies, companies providing goods, services, tourism,
entertainment ... For cardholders to use at the company's agent stores to create more
convenience for customers as well as facilitate financial management and consumer
stimulation such as Diners club, Amex ...

15
 c. Sort by card limit
- Standard card (Standard card): is a popular card with a low limit to meet the
average spending needs.
- Gold card (Gold card): is the card used by high-income customers to meet
living standards as well as higher than average spending needs. To be the object of this
card, customers must have a healthy financial capacity, have good reputation, and have
great spending needs. The credit limit of this card is also higher than the standard card.
d. Sort by the payment nature of the card
- Credit Card (Credit Card): is the type of card that allows the cardholder to use
the card within the granted credit limit and the cardholder must pay at least the
minimum repayment level on the due date. Credit card is considered a credit tool in the
field of consumer lending to cardholders, this is a combination of credit and payment.
- Debit Card: Debit Card is a card issued to customers who open an account at a
bank. Cardholders can only spend or withdraw money at ATMs, CAUs or cash
withdrawal agents within the amount they have.
- Prepaid card: is the card that allows the cardholder to conduct card
transactions within the value of the money loaded into the card corresponding to the
amount of money that the cardholder has prepaid to the card issuer.
e. Classification by territory range
- Domestic card: the card is issued and limited to use within the territory of a
country, the transaction currency is the national currency of the country.
- International Card: The card is widely accepted worldwide, using strong
foreign currencies for payment.
1.2.3. Viewpoints about developing payment card servives at commercial bank
Development of payment card services is an increase in the scale of payment
card services and an increase in the proportion of income from these services to the
total income of the bank; improve the quality of service delivery to better meet the
diverse needs of customers based on risk control and increase business efficiency in
accordance with the bank's business goals and strategies in each period.
1.2.4. Assessment ratios of developing payment card service at commercial bank
1.2.4.1 Criteria by width
 Payment card sales
Payment card sales are the total value of goods and services consumers have paid at
points of sale through payment cards.
The high turnover of payment card payment means that the number of customers
who have used the form of payment card as much as that, the goal of developing the
width of payment card services has been effectively implemented.

16
  Number of payment cards issued
The number of payment cards issued is the number of payment cards that banks
and credit institutions have provided to individuals or organizations.
 The number of units and employees paid via card payment
The number of units and employees paid via card is the number of organizations
and individuals registering for the service of payment via payment card provided by
organizations and credit. Payroll payment will reduce paperwork for payroll
accounting and income earners will have the convenience of having a safe place to
keep their money. However, not only has the advantages, it still has limitations and
disadvantages. Salary payment through payment cards sometimes causes congestion
for income earners when withdrawing money because the current number of cash
withdrawal locations has not kept up with the number of organizations and individuals
using payment cards.
 Revenue from payment card services
Revenue from card services is the total amount of money that credit institutions
that provide card services to customers earn from card making fees. The greater the
revenue from the payment card service, the greater the number of payment cards
issued.
1.2.4.2 Criteria by depth
 Payment ratio by payment card compares to the total number of transaction
The ratio of payment by payment card compares to the total number of transactions is
an indicator to assess whether consumers prefer to pay via payment card when paying
for consumer goods and services, the value of goods and services be paid via payment
card which accounts for what percentage of the total value of goods or services
consumed.
1.3. Factors affecting the development of payment card service at commercial
bank
1.3.1. Objective factors
 Macroeconomic environment
In macroeconomics, the economy achieves its potential output when all resources
have been used up. At that time, demand could not change total supply, or in other
words, more consumption of goods and services would not increase total supply. But
the reality is that the economy has yet to reach its potential output due to the fact that
many resources have not been used or we often say there is demand. In the payment
card service, too, the demand of service users is the direct factor affecting the
provision of payment card services at banks or credit institutions today. Payment cards
are a special kind of goods, both tangible and intangible. The tangibility is that

17
customers who register to open a card will be issued with a plastic card, but the main
function of this card is the services that it provides to the cardholder, this is invisible
value. Therefore, payment card is both the nature of goods and products and the nature
of products and services. The factors that influence the decision to use a payment card
will be based on such characteristics of the payment card. Factors that directly affect
the demand for payment cards include:
- Fee for making payment card:
When registering to open a payment card, customers are subject to the fee for
making a payment card set by the bank, which varies depending on each stage,
program, policy of the bank. . The impact of this factor can be considered as the price
of a payment card product that consumers have to spend to buy the product. Therefore,
it may affect the customer's decision to use payment card.
- Bank card issuer's awareness:
Customer's perception of the product as well as product information is an
important factor influencing consumers' decision to use a payment card. The first
awareness of the brand of the payment card brand, the reputation of the bank will have
a priority for that bank in making a decision to choose the payment card issued by the
customer's bank. This factor is included in the analysis model to see if, for the payment
card product, is it the first product to be recognized and prioritized for use as
theoretical?
- Benefits of payment card:
This is the value of payment card products. When choosing to use a card type,
there will be a comparison and evaluation of the utilities that the payment card types
provide, so the utility factor of the payment card influences the decision to use. a
customer payment card.
- Safety when using a payment card:
A payment card is a means of payment, as well as a means to store money and
assets of customers. Therefore, the more safety must be considered when choosing to
use payment cards of customers.
- Average monthly income of customers:
Although payment cards are created to serve all subjects, but not at every income
level, there is a demand for payment cards, as well as each customer has an income
level. There are different opinions about the product as well as the bank issuing the
payment card, so there will be different decisions in choosing to use the payment card.
Because as the economy grows, people's income and living standards are also
improved, along with the cause of information and communication technology, they
have many opportunities to understand, contact and use services. payment card

18
services. Besides, a developed economy will attract foreign businesses as well as
international payment card organizations to invest. They invest not only in money but
also in technology and human resources, facilitating the development of the country's
payment card market.
 Residential environment
Residential consumption habits greatly influence the development of cards. The
payment card market only really develops when people realize the superiority of using
payment cards compared to cash consumption. Besides, the intellectual level also plays
an important role. Payment card is a product of modern technology, the development
of payment card depends on the level of public understanding of it. Only when the
intellectual level is high, the ability to apply scientific and technological achievements
to people will have conditions for development. The intellectual level here is the
knowledge of the bank, the access and use of payment cards as well as the awareness
of the benefits that it brings. Income of people also affects their consumption, income
cap leads to increased purchases of goods and services. At that time, they only had
demand for payment methods with high safety, quickness and convenience such as
payment cards and checks.
 Technology environment
The application of information technology has created marvelous utilities of cards.
The payment card will be just a normal plastic sheet if it is not attached with magnetic
tapes or electronic chips carrying necessary information and is not capable of
automatic payment if it is not inserted into the reader at the facilities that accept cards,
ATMs and computer systems connected to card issuing and payment centers.
Therefore, the more the technological environment is developed, the more utilities are
added to the payment card, the more the security will be attracted, thus, it will attract a
lot of people to use payment card services.
 Regulatory environment
The issue of payment cards by banks depends heavily on the legal environment of
each country. The legal environment is a strict barrier to protect the interests of the
participants of payment card services but it is also a factor preventing the development
of payment card services if there is no agreement among the legal documents.
correction. A unified legal corridor will give banks the initiative to participate in the
payment card market as well as devise their business strategies. Thereby strengthening
the solid foundation for the development of payment card services in the future.
 Competitors in Banking industry environment
This is the factor driving the booming payment card market. It is the competition
between banks to attract customers, to dominate the market, forcing banks to

19
constantly research and innovate technologies and products to offer the best quality
payment card products, bringing Many benefits for customers. Thereby, creating trust
and building a long-term relationship between banks and customers, which are the key
factors in competition. At the same time, customer care is also focused. The
competition will create excitement for the payment card market.
 Customer in Banking industry environment
From the perspective of a foanh trader or a business, the customer is an extremely
important factor in the life - survival, success and failure of the business. It is not
natural that the saying: 'The customer is god'. Indeed, all individuals and businesses
involved in the field of production and business must target their customers and must
base on customers' desires and needs to formulate production plans. , suitable business.
Payment card service is also a common commodity like many other goods, it must also
follow the law of supply and demand. For this service to grow, customer demand is a
key factor. In Vietnam, the payment card service may bring the payment card market
in the future to be an attractive market for banks to exploit.
 Supplier
Suppliers also play an important role in the production chain to the circulation of
goods and services. For many other industries, joining or withdrawing from suppliers
is relatively easy. However, in the financial field, it is a risky business, so to enter the
industry as a supplier or distributor must have relatively strict conditions. Therefore,
not many suppliers are eligible to enter the market to provide card products to banks,
these companies operate under the strict supervision of the State Bank. When banks
wishing to use card embryos may be able to plan and obtain the consent of the State
Bank to directly manage the bank's business activities. After being granted the demand
for the required quantity of products, the banks may notify the public bid to find the
best supplier.
 Alternative products
Payment card with two main functions of storing, withdrawing and using to pay
for goods and services without cash, we can say that there are many options or in other
words, many products are easy for pictures. this recip payment card, money can be
kept with you or with a large amount of money, it can be stored in a safe with a
relatively safe security system. With the consumption of goods and services, the
current use of cash to pay is still very popular. However, with the advantages and
superior advantages of payment cards, in the future, payment cards will be a perfect
replacement for storage or payment which is very popular today.
1.3.2. Subjective factors
 Qualifications of staff working in card work

20
 As a modern means of payment, the card is highly standardized and has a uniform
operating process. Therefore, it is necessary for the bank to have a competent and
qualified human resource team, accessibility, and ensure that the process of card
issuance, usage and payment takes place smoothly, safely and effectively. and promote
the inherent utilities of payment cards. If a bank really cares and makes appropriate
investments in human resource training and talent attraction, that bank will gain an
advantage in the payment card business.
 The bank's financial capacity and technical and technical qualifications
Payment card service is a modern banking service, it is associated with the
development of technology. Every stage of the payment card business requires modern
technologies, from production to installation of modern equipment for payment card
operations such as terminals, ATMs, and machines. Card reader (POS). In the payment
card business, banks that have good card products, are convenient and safe will be
favored and trusted by customers. To get the modern technology, banks really need a
large financial source. She can do that to be able to compete in the current environment
of science and technology.
 Development orientation of the bank
Development orientation of the bank is also an important factor in developing
card services. With the same basic activities, each bank has a different development
direction based on its own strengths. And each bank in different periods will have
different goals. Card issuance and payment activities will be expanded when the bank
focuses on card services. The Bank must develop a strategic program for long-term
implementation based on surveys, surveys of target customers, competition
environment, etc. and based on internal resources of self

21
 CHAPTER 2: CURRENT SITUATION OF PAYMENT CARD
SERVICE AT VIETNAM INTERNATIONAL JOINT STOCK
COMMERCIAL BANK – DONG DA BRANCH

2.1. Overview about Vietnam International Joint Stock Commercial Bank

2.1.1 The process of information and development
Vietnam International Commercial Joint Stock Bank VIB - Dong Da Hanoi
Branch was established on January 25, 1996 by the Bank's General Director and
officially put into operation on January 1, 1998.
Branch address: No. 4 Ton That Tung, Trung Tu Ward, Dong Da District,
Hanoi City.
Phone: 024 3572 9750
Business activities in the area are still facing many difficulties, but with the
efforts of the Branch's staff, the employees always follow the orientation and tasks of
socio-economic development of the region, and at the same time regularly The
attention of the Board of Directors of VIB Joint Stock Commercial Bank, the Board of
Directors of the Branch should increase the business activities of the Bank, and
deserve the title of the best business branch in the region.

22
Performing credit business with the motto "Safe operation and sustainable
development", VIB Joint Stock Commercial Bank - Dong Da Branch operates in the
following fields:
- Receiving deposits in various forms.
- Issuing deposit certificates, promissory notes, bank bonds.
- Providing short, medium and long-term loans to individuals, households
and organizations of all economic sectors, loan financing under projects, ...
- Foreign trade.
- Supplying - Providing: Payment of remittances, money transfer services,
payment of deposits, guarantees, ...
- Provide diverse payment card services.
2.1.2 Organizational structure and personnel
Figure 1: Organizational model of Vietnam International Commercial Joint Stock
Bank VIB - Dong Da Branch

BRANCH
MANAGER

Customer Service
Director of sales
Manager

Transaction
Sales Department
Department

Credit support
Tellers
specialists

Accounting-Treasury
Department

From the above organizational model, the organizational structure of VIB Joint Stock
Commercial Bank - Dong Da Branch includes:
- Board of Management: Branch Manager, Directors of Sales Department and
Head of Customer Service Department.

23
 - The professional departments: Sales Department, Transaction Office,
Accounting - Treasury Department.
- Business Services Support Officer at Branch: Credit support specialists,
tellers.
With a fairly simple organizational structure, it shows that the operation scale of
VIB Commercial Joint Stock Bank - Dong Da branch has not been widely developed,
this will be a weakness when competition for expanding market share. However, the
advantage is that the compact organizational structure will be an effective management
condition, highly specialized to make it more effective in the development of business
services
2.1.3 Functions and duties of the departments
 Sales Department:
Carry out credit-related operations in accordance with current regulations,
regulations and guidelines of VIB Bank. Responsible for providing guaranty banking
products and services to customers to ensure fulfillment of assigned business targets.
Building and developing relationships with customers, business partners and
stakeholders to carry out sales and customer care activities in order to develop markets
and expand customer networks for operations. Business of Guarantee Banking
Division
Providing guarantee products and services to customers to ensure the fulfillment of
assigned business targets
Appraising, preparing and completing credit documents and submitting to sign
relevant approval levels according to VIB's regulations
Checking and monitoring post-disbursed loans, managing and monitoring debt
reminders and debt recovery of customers to ensure safe and sustainable credit growth
Building and developing relationships with customers through customer care activities
to maintain existing customer base and expand customer networks
Attend sales and service meetings (SSM), training programs to improve productivity,
sales efficiency and personal capacity
Perform other duties as assigned by management.
 Transaction Department:
A professional office directly dealing with individual customers to exploit
capital in VND and foreign currencies. Directly advertise, market, introduce and sell
banking products and services to individual customers and SMEs.
Exploiting capital in VND and foreign currencies from customers being
individuals under the regulations of the State Bank and VIB;

24
Carrying out marketing, support, customer care and advising customers on VIB Bank's
products and services;
Appraise, identify, manage credit limits for customers.
Performing credit operations and processing transactions receiving and
processing loan applications, guarantees, ...
Manage granted credits, manage collaterals in accordance with VIB's
regulations;
To perform the tasks of being a member of the Credit Council, the Interest
Reduction and Exemption Council, and the Risk Settlement Council;
Provide customer records, documents, information to the Risk Management
Department.
 Accounting - Treasury Department:
Is the professional department performing direct transactions with customers.
The operations and jobs related to financial management, internal spending at the
branch, providing banking services related to payment operations, processing and
accounting of transactions. Manage and be responsible for the system of machine
transactions, management of vault and cash fund to each teller in accordance with the
provisions of the State and Vietnam International Commercial Joint Stock Bank VIB -
Dong Da Branch. Performing the task of advising customers on the use of Bank
products.
Coordinate with computer information room to manage the computer trading
system;
Conducting direct transactions with customers;
Performing the following control controls all new and adjusted entries;
Safe management of treasury in accordance with the regulations of the State
Bank and VIB Bank - Dong Da Branch;
Cash advance and collection for savings funds, points of transactions inside and
outside ATM counters;
Cash receipts and payments of great value, mobile revenues and expenditures in
businesses and customers;
Regularly inspect and detect in time phenomena or incidents affecting vault
safety;
Make records of revenue and expenditure records, warehousing and warehousing of
full treasury in a timely manner.
2.1.4 Business performance from 2017 – 2019 of VIB
Recognizing the important goals of VIB International Commercial Bank, set out
to become a leading commercial bank in Vietnam in all aspects such as: Interest on

25
capital, total profit, total assets, total deposits, guarantee of life. living in the
employees and gradually becoming an advanced bank in the region, in recent years
VIB International Commercial Joint Stock Bank - Dong Da Branch has continuously
tried its best to reach that strategic goal.
2.1.4.1Capital raising activities

26
 Table 1: The situation of capital mobilization in the period from 2017 - 2019
Unit: billion VND
Difference Difference
2017 2018 2019 2017 & 2018 &
2018 2019
Targets
Amount Amount
Amount Proport Propor Propor
of of +/- % +/- %
of money ion % tion % tion %
money money
Total Deposit
602.9 100 725.5 100 855.7 100 122.6 20.3 130.2 17.9
Capital
1. From
residenti 559.5 92.8 658 90.7 757.3 88.5 98.5 17.6 99.3 15.1
al
2. From
I.
Economic
Classifi 39.2 6.5 61 8.4 87.3 10.2 21.8 55.6 26.3 43.1
Organizati
ed By
on
Subject
3.From
credit
4.2 0.7 6.5 0.9 11.1 1.3 2.3 54.8 4.6 70.7
instituti
ons
1.
II.
Demand 188.1 31.2 256.8 35.4 335.4 39.2 68.7 36.5 78.6 30.6
Classifi
-Deposit
ed by
2. On
term 414.8 68.8 468.7 64.6 520.3 60.8 53.8 12.9 51.6 11
term
(Source: Income statement for 2017- 2018 - 2019)
Through the data table above, we see the total mobilized capital of the branch has
increased significantly over the years. Mobilized capital in 2019 reached 855.7 billion,
up 17.9% compared to 2018. The mobilized capital growth was mainly due to the
increase in deposits from residents (up 99.3 billion over the same period last year). )
This shows that based on the growth of the economy as well as the banking industry,
people have confidence in the bank and the attractive deposit interest rates at VIB. To
achieve such a relatively high growth rate, the bank has applied synchronous measures
from interest rates to marketing, promotions, prizes, ... and diversified forms of
deposit. capital mobilization.
Of the total capital mobilized by subjects of VIB Dong Da, the mobilized
capital from people (individuals) always accounts for the highest proportion, ranging
from 90% to 93%. Facing the unstable economic situation, real estate market and
fluctuating stock market, people realized that putting money into banks was a safe
investment although the profitability was not high.
In 2018, deposits from residents reached 658 billion VND, corresponding to an
increase of 17.6% compared to 2017, to 2019, residential deposits increased by VND
99.3 billion compared to 2018, bringing the total deposits from residents to 757.3

27
billion, equivalent to an increase of 11.5%. This is an abundant capital that not only
VIB Dong Da but most commercial banks pay attention to because it does not cost
much operating costs, diversified forms, and is suitable for short-term credit financing.
for business individuals and business households.
Capital mobilized from economic organizations of VIB Dong Da in the past
years accounted for the second largest proportion and tended to increase. Deposits
from economic organizations in 2018 were 61 billion dong, up 55.6% compared to
2017, equivalent to an increase of 21.8 billion dong. In 2017, Vietnam's economy was
volatile, causing businesses to fall into inefficient operations, and revenue was not
enough to offset the costs incurred. In 2018, the economy was a bit more pleasant for
small and medium enterprises, making deposits of economic organizations increased
by 21.8 billion VND, equivalent to an increase of 55.6% compared to 2017. By 2019,
deposits of economic organizations increased steadily at 26.3 billion, equivalent to
43.2%. In addition, capital from borrowed money of credit institutions only accounted
for 0.7% to 1.3% of the total mobilized capital in the period of 2017 - 2019 at VIB
Dong Da. This is because when VIB Dong Da under the organizational structure is a
small branch, there are not many transactions with other credit institutions, but only
through, transferring transactions with VIB headquarters. Until the second half of
2018, when VIB Dong Da changed its organizational structure to a super-branch, there
were many more transactions with other credit institutions, but it also accounted for a
negligible part of 6.5 billion VND in the year. 2018 and to 2019 is 11.1 billion.
Of the total term mobilized capital of VIB Dong Da, term mobilized capital
accounted for a larger proportion than non-term mobilized capital. In 2018, term
capital reached VND 468.7 billion, equivalent to an increase of 12.9% compared to
2017, to 2019, term deposits increased to VND 51.6 billion compared to 2018, raising
term deposits to VND 520.3 billion, corresponding to an increase of 11%. Although
term deposits accounted for a large proportion, the annual growth rate only showed
slight fluctuations and was instructed year by year. To maintain this, VIB Dong Da has
offered attractive deposit interest rates for different terms and always ranked at the top
of high deposit rates compared to other commercial banks. Besides, demand deposits
accounted for 31% to 39.2% of total mobilized capital, reaching the highest level in
2019 of VND 335.4 billion. Most of the growth of demand deposits is from the
balance of payment card accounts of customers at VIB Dong Da because of the fast
payment service, many utilities and cheaper than other commercial banks. The
increasing number of payment cards has enabled VIB Dong Da to use demand deposits
at low cost. However, this source of capital fluctuates a lot because it is unpredictable

28
for customers' transactions to happen at this time, so VIB Dong Da needs to calculate
and be careful when using a lot of capital.

29
 2.1.4.2 Situation of using capital (lending)
Lending activities provide the main source of income, but besides that, it
contains higher risks for banking business. VIB Dong Da Branch paid special attention
to developing a lending strategy with a strong view of investing but ensuring
sustainable and sustainable development. Because the bank is trusted by customers,
besides expanding the area, diversifying forms and subjects of loans, disbursing
quickly, the bank's lending activities in the last three years have been increased both in
terms of amount of loans and credit growth.
My internship branch does not have the permission to lend money to large
enterprises so the data would not be included.
Table 2: The situation of outstanding loans from 2017 - 2019
Unit: billion VND
Difference Difference
2017 2018 2019 2017 & 2018 &
2018 2019
Amo Amo
Target Amou
unt Prop unt Prop Propot
nt of
of otion of otion ion +/- % +/- %
mone
mone % mone % %
y
y y
Total loans 243.5 100 472.8 100 934.1 100 229.3 94.2 461.3 97.56
1. Small
I. and
Classi medium 30.44 12.5 56.26 11.9 92.4 9.89 25.82 84.8 36.2 64.23
fied enterprise
by s
econo 2.
208.9 85.8 407.5 86.2 818.8 87.6 198.6 95.1 411.3 100.9
mic Individual
sector 3.
s Househol 4.16 1.7 9.04 1.9 22.9 2.51 4.88 117.3 13.86 153.3
d business
1.
II. Short- 72.3 29.7 81.8 17.3 145.7 15.6 9.5 13.1 63.9 78.1
Class term
ified 2.
by Medium 171.
70.3 391 82.7 788.4 84.4 219.8 128.4 397.4 101.6
term and long 2
term
(Source: Income statement for 2017- 2018 - 2019)

30
 VIB Dong Da's total outstanding loans in the period of 2017 - 2019 has many
fluctuations. Credit activities grew in both quantity and proportion. In 2017,
outstanding loans reached VND 243.5 billion. In 2018, it increased by VND 229.3
billion, corresponding to an increase of 94.2% compared to 2017, by 2019, the
outstanding loans reached VND 934.1 billion, an increase of 97.56% compared to
2018. The reason is due to individual customers and businesses. SMEs during this time
were supported by a bank to lend capital to boost consumption and business
development, but because the branch also implemented a policy of controlled
enhancement with the goal of safety and efficiency. As a result, gradually reducing
loans in the wrong direction of VIB Dong Da, reducing outstanding loans of some
customers to discredit in the credit relationship, the loan growth rate reached a
moderate and even rate.
Outstanding medium and long-term loans accounted for the largest proportion
of total outstanding loans, in 2017 accounted for 70.3% of the total outstanding loans
and increased gradually over the years, in 2018, the proportion was 82.7% and 2019
accounted for 84.4%. Medium and long-term loans increased in absolute terms, in
2018 increased by VND 219.8 billion, corresponding to an increase of 128.4%
compared to 2017, to 2019 reached VND 788.4 billion of outstanding loans, up
sharply by 101.6% compared to 2018. VIB Dong Da continues to push on medium and
long-term loans because the bank's potential customers are from individual customers
in the population, targeting consumer shopping goals such as buying condominiums,
buying Car installments, student loans, etc. are increasingly increasing from
customers, the bank constantly offers preferential products to help increase the
medium and long-term debt balance to increase steadily over the years. However,
short-term loans of the bank do not account for a very high proportion and tend to
decrease gradually over the years, which shows that the bank will face difficulties in
managing loans and capital turnover. slower when promoting medium and long term
loans. In order to minimize credit risk, when the credit scale grows, VIB Dong Da
should focus on short-term lending to ensure the liquidity of the bank.
The outstanding growth in 2019 is due to the change in the personnel structure
of the credit bureau at VIB Dong Da branch. With the 4-fold increase in the number of
credit specialists and the rapid adaptation of employees, the branch achieved a year-
end debt balance of 934.1 billion, much better than the previous two years. With an
attractive interest rate in automobile and real estate credit products when lending to
Science and Technology, the Branch has increased nearly 100 billion outstanding
loans of Science and Technology. In terms of debt structure, most of them are medium
and long term loans, this is entirely suitable for the purpose of borrowing mainly from

31
individual customers. However, the current debt structure of VIB Dong Da is
evaluated to be ineffective because individual lending brings more risks to banks than
loans to economic organizations and the medium and long-term debt structure makes
the bank The company needs to strengthen its strict control on each loan to avoid the
risk of bad debt. Therefore, VIB Dong Da needs to expand lending to economic
organizations and at the same time continue to expand individual and household
lending relationships in order to be effective and disperse risks.
2.1.4.2 Business Result from 2017 to 2019
Table 3: Business results 3 years from 2017 to 2019
Unit: billion VND
Difference Difference
Criteria 2017 2018 2019 2017 & 2018 2018 & 2019
+/- % +/- %

Income 42.44 79.41 124.21 36.97 87.11 44.8 56.41

Expense 25.64 46.52 76.21 20.88 81.43 29.69 63.82

Profit before
16.8 32.89 48 16.09 95.77 15.11 45.94
taxes
Net profit after
taxes and 14 27.41 40 13.41 95.78 12.59 45.93
cappital balance

 Income:
We see that the income in 2018 increased significantly compared to 2017, up
36.97 billion, with an increase of 87.11%. This achievement is due to the bank's active
in recovering and settling overdue debts arising, contributing to improving operational
efficiency, providing income sources for the bank. On the other hand, in 2018, the
Bank's loan sales increased significantly compared to 2017 (VND 243.5 billion
compared to VND 427.8 billion, up 94.2%), business activities of the people in the
area had many favorable conditions. create conditions for customers to well fulfill their
loan repayment obligations to the bank. As a result, the revenue of debt collection in
2018 increased significantly compared to 2017. This is also the reason for the branch's
income in 2018 to increase significantly compared to 2017.
We can see lending and debt collection activities, The bank's service operations
achieved high efficiency, total lending in 2019 was VND 934.1 billion, an increase of

32
97.56% compared to 2018 (VND 472.8 billion). This result has brought the total
revenue of the bank increased compared to 2018.

33
  Expense:
The mobilized capital in 2018 increased compared to 2017 (VND 725.5 billion
compared to VND 602.9 billion), making the total cost of the bank also increased
compared to 2017, increasing by VND 20.88 billion with an increase of 81.43 billion.
%. The total cost in 2019 is very high, up much compared to 2018, an increase of
VND 29.69 billion at a rate of 63.82%. In addition, 2019 is the year that the cost of
salaries paid to employees and the cost of investment in property procurement
increased greatly because the bank added 3 transaction offices in 2019, recruiting more
new employees.
 Profit:
- In 2018, the bank's profit after tax and capital balance reached VND 27.41
billion, an increase of VND 13.41 billion compared to 2017, with an increase of
95.78%.
- In 2019, the bank's profit after tax and capital balance will be VND 40 billion,
an increase of VND 12.59 billion compared to 2018, with an increase of 45.93%. In
2018, the bank's net profit increased significantly compared to 2017 (increased by
95.78%), showing that the bank's development and business activities were
increasingly effective, in credit activities as well as in business activities. sales of
products and services of the bank. In particular, credit activities are activities that bring
a lot of profits to the bank. However, the business of products and services in payment
activities, capital mobilization is a factor for customers to know more about the bank.
In 2018, costs increased, incomes increased. However, the growth rate of income
(87.11%) is higher than the cost increase (81.43%), the increase in income offset the
increase in expenses.
- As a result, the net profit in 2018 increased compared to 2017. In 2019, the net
profit of the bank is still increased compared to 2018 but the growth rate slowed down,
with the growth rate of 45.93%. This is because in 2019 the growth rate of expenses
(63.82%) is higher than the growth rate of income (56.41%) leading to a decrease in
the rate of profit compared to 2018. We see profit before Although the Bank's tax and
capital regulation have been low, but in 2019, the Bank's mobilized capital has
increased significantly (VND 855.7 billion compared to VND 725.5 billion in 2018),
the Bank does not have to regulate capital from the Association. The headquarter, in
contrast, reconciles the capital to the Head Office, thus receiving a significant profit
from the Head Office, thereby contributing to the increase of the Bank's net profit, an
increase of VND 12.59 billion, with an increase of 45.93%.

34
2.2. Situation of payment card service at Vietnam International Joint Stock
Commercial Bank – Dong Da Branch
2.2.1. General provisions on paymetn card service of Vietnam International
Commercial Joint Stock Bank – Dong Da Branch
2.2.1.1. Regulations on card issuance activities of the State Bank
Regulations on card issuance, usage and payment activities of the State Bank
are stipulated in Circular No. 19/2016 / TT-NHNN: "Circular regulating bank card
activities" and Decision No. 20 / 2007 / QD-NHNN: "Promulgating regulations on
issuance, payment, use and provision of bank card support services".
1. This Circular provides for bank card operations (hereinafter referred to as
cards) including: issuance, use, payment, switching, electronic clearing and settlement
of card transactions.
2. This Regulation governs the issuance, payment, use and provision of banking
card support services in the Socialist Republic of Vietnam. Subjects of this Regulation
are organizations and individuals involved in the issuance, payment, use and provision
of banking card support services in the Socialist Republic of Vietnam.
2.2.1.2. Regulations on card issuance activities of Vietnam International Commercial
Joint Stock Bank
The regulations on domestic card issuance, usage and payment are stipulated by
VIB Bank in accordance with the regulations issued by the State Bank. In addition to
the international card issuance, use and payment, VIB Bank is regulated in the
Decision No. 1804/2015 / QD-TGĐ: “Regulations on product characteristics and credit
card management principles international ", Decision No. 1803/2015 / QD-TGĐ:"
Provisions on products and principles of global payment card management "and
Decision No. 4301/2013 / QD-TGĐ: "Process of issuing, using and credit card
payment internationally."
2.2.2. Card products of Vietnam International Commercial Joint Stock Bank - Dong
Da Branch
Currently, VIB Bank - Dong Da Branch is deploying to issue 3 main card
product lines: Payment card, Credit card and Prepaid card.
2.2.2.1.Payment card
VIB Debit card is a card issued by VIB bank, used to pay swipe cards or pay
online. A payment card is a non-cash payment method that cardholders can use to
withdraw cash, transfer or check account balances when necessary. VIB payment cards
are divided into 2 types: domestic payment cards and flexible Mastercard international
payment cards for payment both domestically and internationally.

35
  Conditions for using the card:
Customers using the card must meet the following conditions:
- Having full legal capacity, civil act capacity and civil liability according to the
provisions of Vietnamese law.
- Identity card or passport.
- Having a deposit account opened at VIB branch issuing cards.
- Comply with VIB's regulations on issuance, management, use and payment of
domestic debit cards.
 Scope of using the card:
- The cardholder is allowed to use the card to perform transactions at card
accepting units or cash advance points of VIB and banks in the card alliance.
- Cardholder's transactions are performed within the balance of cardholder's
deposit account at VIB and overdraft limit granted by VIB (if any)
Functions and utilities of the card:
- Cash withdrawal;
- Account balance inquiry at ATMs of VIB and banks in card alliance;
- Change PIN;
- Bank transfer transactions at ATMs of VIB and banks in the card alliance;
- Make payments for goods and services at merchants of VIB and banks in the
card alliance;
- Account Overdraft: is a service of VIB that allows customers to spend in
excess of the amount on their payment accounts, even if the balance in their accounts
is zero.
 - Automatic balance inquiry: This is a VIB service that informs customers
about account information whenever their accounts arise any transactions Mobile
banking: Is a VIB service for customers to view information Account information as

36
well as banking information anytime, anywhere. Customers only need to use mobile
phones to text messages according to the instructions to 997
- InternetBanking / My VIB: This is a service provided by VIB to customers to
view information about the Bank and query their account balances by visiting the
website www.vib.com.vn and using on App of the phone at any Internet access point.
2.2.2.2.Credit card
VIB MasterCard credit card is an alternative means of cash payment. The
payment is based on the credit method, meaning that customers do not have to pay
immediately when buying. VIB will pay the supplier first and the card user will make
payment to VIB before or on the due date.
There are 3 classes of cards: Standard, Gold & Platinum
- Validity period: maximum 60 months.
- Maximum credit limit up to VND 1.2 billion.
- Cardholders are allowed to spend first, pay later, only pay at least 5%
- Accepted at over 35 million payment points around the world
- Flexible shopping via the Internet, pay bills and withdraw cash at over 1.9
million ATMs worldwide
- Maximum of 45 days without interest payment (55 days for Platinum card) for
payment transactions.
- Chip technology with high security.

37
 - Receive notification of transactions via SMS banking service (free of charge).
There are 2 ways to guarantee card usage: Mortgages, Unsecured
 Mortgages: Ensuring the use of the card is done by mortgaging the savings
book, deposit contract issued by VIB in accordance with the law and VIB.
 Regulations on special assets:
- collaterals are savings books / deposit contracts issued by VIB (Valuable
papers - valuable papers) and have not been frozen to be collaterals for any other
credits at VIB and other credit institutions.
- The collaterals must be owned by the Customer or the relatives of the
Customer including: Father / natural mother or Father / Mother-in-law, spouse /
children, adopted children, siblings or of the enterprise that the customer is go on
bussiness
 Lending to collateral ratio:
- Maximum: 90% of value of collaterals in VND
- Maximum: 80% of the conversion value in VND of the Security Property as
Foreign Currency
- VIB and card holder must sign security contract for card usage.
- The mortgage of collateral or the release of deposit account is only carried out
after 30 days from the effective date of card termination and all claims (if any) related
to the use Use the card has been resolved.
 Targeted customer
- Customers have income from salary via bank transfer
- Customers have income from the Enterprise (owning or contributing capital to
the enterprise)
- VIB staff
- Customers have regular and large deposit balance at VIB
- Customers have a loan in the form of collaterals at VIB
- Credit card holders of Citibank, ANZ, HSBC, CBA, Vietcombank,
Sacombank, ACB, Vietinbank
- Member of Lotusmiles program of Vietnam Airline Titanium, Gold, Platinum
- Customer who is a senior leader (Chairman of Board of Directors / Board of
Directors, General Director, Chief Accountant / Deputy General Director) of large
enterprises as prescribed.
 Subjects Customers are not granted credit cards
- Short-term employees (labor contracts of less than 12 months) - excluding
employees from VIB;

38
 - Staff is the Chief Accountant, the staff performing the credit appraisal and
decision;
- Major shareholders, founding shareholders VIB;
- Labor workers, crew members, sailors, drivers, offshore workers at the rig;
- Debt collectors (money, taxes, etc.) of debt collection companies - excluding
VIB employees;
- Owners and staff of bars, night clubs, karaoke, massage parlors, casinos or
related to casinos, pawn shops.
 Utility of the card
- It is a form of consumer loans for universal life through international credit
card, so it is not limited geographically (used globally at payment card recognition
points).
- Cardholders are entitled to preferential fees and interests when paying their
cards at points of payment card recognition and payment on time with the card issuing
bank, with VIB Mastercard credit card cardholders can choose the form of payment at
least on each statement period.
- When paying, use VIB Mastercard credit card, the cardholder is secured by
EMV standards and avoids the risk of counting against cash.
- Cardholders can make cash advances at merchants and ATMs.
- Cardholders are allowed to conduct GD TT on websites that accept Master
card. Value-added information (insurance, gifts ...)
- The minimum payment for statement period of VIB card is only 5% of the
total payment value.
 Payments method
- Cardholders can choose one of the following methods to pay outstanding
credit card statement:
- Pay at VIB's transaction offices.
- Cash deposit directly at VIB's transaction offices.
- Transfer from payment account opened at VIB.
- Make payment via automatic debit service from VIB's checking account.
- Payment via Internet Banking.
- Payment via wire transfer from payment accounts of other banks in Vietnam.
- The payment transaction is considered to be successful when the amount the
Cardholder pays is credited to the Cardholder's credit card account
- Cardholders can request to change the form of payment at VIB's business
units.
 Late payment:

39
 - The Cardholder is considered to be late in payment if the cardholder does not
pay or pay less than the minimum payment before the end of the transaction time at the
counter.
- Late payment card holder will pay late payment fee: based on the late payment
amount according to VIB fee schedule from time to time.
- Lock temporary card: After 30 days from the due date, cardholders do not pay
or pay less than the minimum
- Lock permanent card: Cardholder incurs group 3 debt at VIB
- Credit card will be transferred to locked status if any of KHB's loans at VIB is
transferred to group 2 or higher debt. When customers have no more than 2
outstanding loans at VIB, their cards will be returned to normal use.
2.2.2.3. Prepaid card
VIB prepaid card is a kind of ATM card, used to withdraw money, transfer
money or pay for goods with the amount of money on the card. It means that the card
has much to spend as much. This is different from a debit card, in other words, a
prepaid card doesn't need to open a payment account like a debit card. This is the first
prepaid card bearing the MasterCard brand name in Vietnam market issued by VIB.

With payment card products, VIB offers users two types of cards: pre-
identification (customer information is registered with the bank before the card is
issued, similar to VIB Chip MasterCard or VIB Values) & After identification card
(Customers buy printed cards and register additional information before using the
card).
The card is used to pay for goods and services, withdraw money at all card
acceptance points, ATMs with the MasterCard logo all over the world, online
spending. It is possible to perform Pin exchange and fund transfer transactions at VIB's

40
Mini ATM devices, and the destination card offers money immediately after
conducting the transfer. You can recharge your card by:
- Deposit money at VIB's counters nationwide
- Via Internet Banking service of VIB.
- Transfer money from payment account or from another prepaid card to at
VIB's MiniATM device.
- Transfer money from other banks.
 Product features
- Transactions at ATM - MINI ATM: Withdraw money, query accounts, change
Pin, print card account statement.
- Transactions at EPS (POS): Payment for goods / services, cash advance.
- Transactions at the counter: Transfer money to the card.
2.2.3. Development of payment card of Vietnam International Commercial Joint
Stock Bank - Dong Da Branch in the period of 2017 – 2019
2.2.2.1. Quantitative indicators
 Situation leads to a survey of customer needs about payment card products of
Vietnam International Commercial Joint Stock Bank
- Growth rate of the number of cards issued
Table 4: Card issuance situation for the period of 2017 - 2019
Differenc Difference
2017 2018 2019 e 2017 & 2018 &
Target 2018 2019
Amou Amou Amou
% % % +/- % +/- %
nt nt nt
Total
number of 4,330 100 11,668 100 31,256 100 7,338 169.5 19,588 167.8
cards issued
Payment
4,215 97.34 11424 97.90 30,899 98.85 7,209 171.1 19,475 63.02
card

Credit card 115 2.66 244 2.10 357 1.15 129 112.2 113 31.65

Prepaid
0 0 0 0 0 0 0 0 0 0
card

Acitve card 1775 40.99 6742 57.78 19843 63.48 4967 279.8 13101 194.3

(Source: VIB card center)

41
 In recent years, the card issuance situation of Vietnam International
Commercial Joint Stock Bank - Dong Da Branch has witnessed a strong growth. This
is reflected in the number of cards issued in 2017 is 4,330, in 2018 is 11,668 cards, an
increase of 7338 cards, corresponding to an increase of 169.5% compared to 2017. By
2019, the number of cards issued increased by 19,588 cards, corresponding to an
increase of 167.8% compared to 2018. This is an incredible growth figure from the
remarkable achievement of Vietnam International Commercial Joint Stock Bank -
Dong Da Branch. It can be said that during the period of 3 years from 2017 to 2018 -
2019, VIB Bank has stepped up the application of information technology in banking
activities and services, VIB focused on developing this strength to make a difference.
for other banking services.
Through the table of card issuance data above, the number of payment cards
issued over the years is higher than that of credit and prepaid cards. In 2019, the
number of payment cards issued was 30,899 cards, higher than 2017 of 26,684 cards
and 2018 of 19,475 cards. Due to the increasing awareness of the people, plus the
synchronous increase of POS / EDC systems in restaurants, supermarkets and centers,
it is easier to use the card. Unlike payment cards, credit cards are somewhat inferior. In
2017, VIB Dong Da issued 115 cards and credit cards, in 2018 the number of credit
cards issued increased to 244 cards, compared to 2017 which was an increase of
112.2%. Credit card in 2019 was issued with 357 cards, an increase of 31.65%
compared to 2018. The remarkable growth of payment cards and credit cards in 2019
was due to the change of organizational structure of VIB. Dong Da.
At the time of 2017 - 2018, VIB Dong Da was still operating as a small branch
of the bank, until 2018 - 2019, VIB Dong Da changed its function as a large branch of
the bank with the expanded to transaction offices and sales offices. Despite the strong
fluctuations in organizational structure, VIB Dong Da quickly regained its stability and
focused on the Branch's operations, thus achieving unexpected success. In addition to
changing the organizational structure, in the second half of 2018 VIB Bank has
launched a whole new card product with a look interface and more outstanding
features, which also contributes a significant part in Successful card payment services
in 2018. Regarding prepaid card products in the period of 2018 - 2019, there has not
been any transformation and product development, it is known that prepaid card
products were launched in 2017 but promoted, focused on big branches and
Headquarter of VIB. At this time VIB Dong Da was still a small branch so it was not
developed for customers. Up to now, VIB Dong Da is in the process of developing two
popular card product lines: payment cards and credit cards, so prepaid card sales
remain at 0.

42
 Over the last 3 years, we can see a significant increase in the number of
activated cards of VIB, but the percentage of activated cards is still too small
compared to the number of issued cards. In 2017, the number of active cards
accounted for only 40.99% of the total number of cards issued, in 2018 we see a strong
growth of 279.8% compared to 2017 with the number of activated cards is 6742 cards.
By 2019, the growth in the number of activation cards decreased slightly (an increase
of 194.3% equivalent to the number of activated cards in 2019 of 19843 cards), but the
proportion of activation cards compared to issued cards has shown a positive change in
63.48%.

Figure 2: Growth rate of number of cards issued in the period of 2017 - 2019
35000

30000

25000

20000
Payment card
Credit card
15000
Prepaid card

10000

5000

0
2017 2018 2019

The line 2 chart shows the growth in the number of cards issued from 2017 to
2019. In 2019, the total number of cards issued by VIB Dong Da reached 31,256
cards; in which the number of payment cards is 30,889 cards; Credit card reaches 357
cards and prepaid card is 0 card. Compared to VIB's branches across the country, VIB
Dong Da has built up a reputation with its customers, elevating its position, ranking in
the top 3 of all VIB's branches, escaping from original position among VIB's weak
transaction offices.
Dramatical growth in the number of cards in the years of 2017, 2018,2019 is
due in 2018, VIB started to issue new cards with superior features for optimal support
to customers, especially at the end of the year. In 2018, VIB launched cashback cards
for a variety of consumer expenses, so the favor of a large number of customers led to
a significant increase in card growth.

43
44
Card account balance
Table 5: Account balance of card payment period 2017 – 2019
Unit: billion VND
Difference Difference
2017 & 2018 2018 & 2019
Target 2017 2018 2019
+/- % +/- %

Payment Card 195.

42,150 124,433 257,461 82,283 133,028 206.9
Account Balance 2

Credit card 193.

6,166 34,669 71,125 28,503 36,456 205.1
balance 8
(Source: VIB card center)
Looking at table 4, the situation of the card issuance account balance has
increased sharply over the years, but compared to the total number of card issued, it is
still quite low. In 2017, the total account balance of demand deposits reached VND
42,150 billion, in 2018 reached VND 124,433 billion, an increase of 195.2% compared
to 2017 and until 2019, the total account balance reached VND 257,461 billion. When
the idle capital of customers deposited into the bank increased, the bank's capital at
that time also increased, leading to an increase in the balance of card payment
accounts. If the card account balance increases, the bank can serve other business
activities at low cost. At VIB Dong Da during the period of 2017 - 2019, an increase in
the card issuance account balance has helped VIB Dong Da to use other services and
activities at low costs, creating favorable conditions for VIB Dong Da's capital. higher.
In addition to the increase in the number of cards issued and deposit account
balances for card issuance, VIB Dong Da's credit card debt also tended to increase
sharply. Credit card debt balance of the years, specifically in 2018 was 34,669 billion
VND, up 193.8% compared to 2017 was 28,503 billion VND, by 2019, credit card
debt balance reached 71,125 billion VND, up 205.1% compared to 2018. Because the
number of credit cards and credit card balances is uniform, when the number of cards
increases, the card balance also increases and vice versa.
With VIB Dong Da's card development in the period of 2017 - 2019, the branch
should enhance customer appraisal as well as regularly notify customers of their
repayment period to minimize up to billions. overdue debt ratio for the branch, and
also help customers not to bear high loan interest rates.
Frequency of card payment transactions

45
 Based on the VIB card center's report on card transaction frequency in 2018 and
2019, only the frequency of card payment transactions in 2018, the number of 1-
minute card transactions ranges from 90 to 110 people nationwide. In particular, the
frequency of card payment transactions in 2018 is only about 65 people per minute.
The increase in the frequency of card transactions also proves that the bank's card
payment activities are performing well. The more frequent and frequent use of cards
by customers shows that the benefits of the cards are gradually improving and
customers are actively receiving this development.
The percentage of customers complaining on the total number of customers using
the service
Because the card payment service at VIB Dong Da is still incomplete, the card
products are not really diverse, meeting customer needs. Sometimes AT and POS
systems still have software errors or run out of money or swallow cards, etc. This has
caused customer dissatisfaction. In 2019 compared to 2018, the percentage of
customers complaining about the total number of customers still accounts for about
2% (Source: VIB Card center). VIB Dong Da is trying to implement and perfect the
optimal solutions for the ATM and POS systems to run smoothly, and improve the
quality of attitudes and services of employees when customers come to make
transactions by card.
Incidence of incidents occurring on the total number of transactions
In 2019, the rate of incidents occurring on the total number of transactions
accounted for no more than 1% (Source: VIB Card center), for example common
problems such as: ATMs failed to withdraw money - refused to accept cards -
suddenly stopped working - swallowed cards , ATMs just release the card without
releasing money. VIB Dong Da is trying to maintain and reduce incident rates to as
low as possible in the future.

46
Income from card payment services
Table 6: Income from card payment services for the period of 2017 - 2019
Unit: billion VND
Difference Difference
Target 2017 2018 2019 2017 & 2018 2018 & 2019
+/- % +/- %
Collecting
15,80
payment card 9,063 16,240 32,041 7,177 79,19 97.3
1
fee
Collecting
1,071 2,519 4,209 1,448 135,2 1,690 167.1
annual fee
Collecting
interest on
1,027 6,190 15,461 5,163 502,7 9,271 249.7
credit card
loans
10,13 20,71
Other revenues 11,542 21,672 42,390 87,76 95.6
0 8
Total revenue
23,91 47,48
from payment 22,703 46,621 94,101 105,3 101.8
8 0
card services
Total revenue
23,91 47,48
from payment 22,703 46,621 94,101 105,3 101.8
8 0
card services
(Source: VIB card center)
Looking at Table 5, it can be seen that the income from payment card services
in 2017 was 22,703 billion VND, in 2018 reached 46,621 billion VND, an increase of
105.3% over the previous year, and in 2019 it stopped at 94,101 billion VND,
equivalent to an increase of 101.8% compared to 2018. That growth has proved that in
the past 3 years, VIB's card center in general and VIB Dong da's language have
performed very well. With a customer-centric strategy, VIB Dong Da has improved
the quality of payment card services, built a 24-hour customer service center, and
assisted customers when having difficulties in using cards. In addition, in 2019 the
total number of cards issued by VIB Dong Da has reached 31,256 cards, an increase of
167.8% compared to 2018. This is a contributing factor for VIB's payment card service
revenue. Dong Da increased, mainly from card issuance, interest on credit card loans
and other fees when customers used cards for transactions.

47
 Income from card issuance in 2018 increased by 79.19% compared to 2017 and
in 2019 only increased by 97.3% over the previous year. The reason is that VIB Dong
Da has conducted a number of free card issuance programs to attract customers to
register to use card services. In the past 3 years, the annual fee has not increased much,
although the number of issued cards has increased significantly because VIB Dong Da
does not apply annual fee collection for domestic debit cards and the annual fee is very
low for cards. International payments and Mastercard branded credit cards. Other
revenues also tend to increase. Specifically: Other revenues in 2018 reached VND
21,672 billion, an increase of 87.76% compared to 2017, in 2019, other revenues
increased by VND 20,718 billion, corresponding to an increase of 95.6% compared to
2018.
In general, income from card services only accounts for a small proportion of
the total service revenue of VIB Dong Da banking system, but it still has a stable
growth. In the future, VIB Dong Da needs to have more incentive policies to attract
customers, issue more cards and thereby bring a big source of revenue for the bank.
Bad credit card debt
Table 7: NPL ratio of credit cards for the period of 2017 - 2019
Unit: billion VND
Difference Difference
Target 2017 2018 2019 2017 & 2018 2018 & 2019
+/- % +/- %
Outstanding bad
0.415 1.226 2.295 0.811 195.4 1.069 87.23
credit card debt
Credit card
6.166 34.669 70.069 28.503 193.8 35.4 102.11
balance
Bad debt ratio
6.73 3.53 2.01 - (47.99) - (56.94)
(%)
(Source: VIB card center)
As the table above shows, the credit card bad debt balance in 2018 was VND
1,226 billion, up to 195.4% compared to 2017 of VND 0.811 billion. By 2019, this
number continues to increase but has eased to 87.23% compared to 2018, reaching
VND 2,295 billion. However, when comparing the bad credit card debt balance with
the total credit card debt balance, the bad debt ratio of the card accounts for only from
2.01% to 6.73%. In 2017, when VIB bank just started to deploy more strongly than
credit card products, it did not have strict management of outstanding loans and strong
measures to handle cases of bad debt that caused the debt ratio to fall. Bad accounts for
6.73% of total credit card outstanding. By 2018, along with the growth in the number

48
of cards and credit card balances, the bad debt status still exists but has significantly
decreased by 3.53%, this is a pretty good sign in the management and dealing with bad
debts of VIB Dong Da.
With the strong development of credit card products in the second half of 2019,
helping VIB Dong Da have a strong growth in credit card debt, VIB Dong Da spent
the first half of 2019 to prepare for the change. exchanged about the market, its card
market share and performed well the training of professional credit card officers with
customer management skills, handling all cases in the process of issuing and using
credit cards. Have arisen. This has helped reduce the bad debt ratio of credit cards by
more than 56% compared to 2018, to 2.01% in 2019. In addition, along with the good
professional skills of credit card officers to help customers of VIB Dong Da has a good
understanding of the credit card products, the support services of VIB Dong Da are
improved and simple to use, such as App MyVib, InternetBanking, SMS Banking,
which have helped customers to check clearly control your spending and pay your
bank on time.
 Investigation issues
- Ability to meet customers' needs
Currently, VIB has implemented a 24-hour customer support service system to
help cardholders in any situation. Customers just need to call the VIB hotline, will be
quickly received by call center consultants and resolve all questions and complaints of
customers. In addition to the Call Center tool, VIB has also expanded its connectivity
tool to allow customers to directly ask and answer questions and complaints about
products and services over the Internet. In addition, VIB cardholders can register for
My VIB e-banking package with a variety of utilities, increase financial management
and access their accounts 24/7 anytime, anywhere. place to perform diverse services.
With the above results, showing that VIB's ability to meet customer needs is
growing, the quality of VIB's card payment services is increasingly better and better,
creating a premise for operations. Bank credit card development.
- Service attitude of VIB Dong Da's staff
VIB Dong Da's Super Branch model has just been officially in operation for
nearly 1 year with a very young, energetic and enthusiastic staff. When recruited, the
employees of VIB Dong Da have to pass the same IQ, EQ, knowledge and
professional examinations. Candidates with good work will be selected to interview.
After the interview, they will be allowed to try for 2 months. All recruitment
procedures are rigorous to ensure a staff of highly knowledgeable and good service
attitude. In addition, VIB Dong Da regularly organizes skills training courses for card

49
issuers; quarterly experience exchange workshops to help staff improve their
competencies.
With the above methods, VIB Dong Da has been trusted by the majority of
customers and used the VIB card payment service. The number of customers who are
dissatisfied with the service as well as the quality of card payment is reduced, the
number of customers complaining about the service attitude of employees is only 1%
of the total number of card payment transactions at the bank. line. The more service
attitude of the staff reflects the quality of VIB Dong Da's payment card developing
well, paving the way for the development of VIB Dong Da card payment activity in
the future.
- Ability to attract new customers to use VIB Dong Da card payment service
The ability to attract new customers to use VIB Dong Da card payment service
is mainly based on marketing, propaganda and promotion for card services. In the
period of 2016 - 2018, VIB Dong Da took advantage of available information channels
such as advertising on ATM screens, advertising banners on roads, sponsorship
campaigns for major cultural and sports programs. Through the promotion, customers
know VIB Dong Da as well as products and services that VIB Dong Da is providing,
thereby improving the image of the bank.
In addition to the available information channels, VIB Dong Da also uses its
new strength as modern information technology. VIB Dong Da has shared products
and services on the website, phone app, information channels that many Internet users
access, etc.

50
  Survey form

51
52
  Analysis of survey results
Surveying 50 customers, some of whom are customers of VIB who have not yet
used VIB's services.
 Gender – Age
Based on the results, the respondents are 45% female and 55% male and the
most aged 24-35 and the most business and civil servants group. Most of the subjects
are customers who using VIB's card service.
 Customer’s awareness
They have a positive view through the VIB perspective questionnaire and 95%
of all respondents agree and agree, only 5% agree and no audience disagrees with the

53
problem. VIB's image has been increasingly enhanced, providing the best international
payment services, the bank has a professional working style and brings sustainable
values to customers. That is, VIB gradually goes in the right direction to serve
customers in accordance with the current trend.
 Proprortion of cards being used
According to the survey results, 90% of customers are currently using VIB's
payment cards, 5% are using credit cards and the rest are not using VIB's card services
or currently using card services. of other banks.
 Purpose
The main purpose of using the card services of the subjects is to withdraw
money, pay bills, transfer money (68%); followed by shopping at supermarkets and
restaurants (23%) and the rest is spent on online payment or used for all 3 purposes. As
such, customers often have a need to save transaction time, they start to become aware
of the security, time saving, multi-functionality and convenience of using card services
and are shy with VIB cards are gradually being improved to better meet customers' and
market demands.
 Time of use
Regarding time of use, with current customers of VIB card services, 62% of
customers use from 1 to 3 years, 31% use less than 1 year and 7% of customers use
card services of VIB over 4 years. Because VIB has actively promoted and developed
card services in the last 3 years, the number of customers using it for more than 4 years
is very low, hoping that in the future, the quality of card services will be increasingly
improved, the number of Card issued and active will increase significantly.
 Connection
Among the customers participating in the survey, 45% knew about VIB's card
service when going to the bank to do other transactions, 37% through friends and
relatives and only 18% of customers knew about VIB via the Internet, newspapers,
magazines. Therefore, VIB needs to promote communication on card services to bring
card services to consumers more widely.
 User’s feeling
Regarding the satisfaction of using VIB's card services, customers participating
in the survey mostly rated very satisfied, this showed that VIB's card service in the
past 3 years has been constantly developing and Bring customers the most optimal
utilities. However, there are still a few cases where errors occur when the card fails
due to system such as POS ATM swallow card, VIB needs regular maintenance of
ATMs and improves card reader system settings.

54
  Fees
In terms of transaction fees, all customers find it appropriate to charge such a
fee, which means their money is sent faster and safer, has higher security and has
many utilities. more so no comments are inappropriate and should not be collected.
 Customer’s concerns
According to the survey, customers expressed what they care about most about
card services are interest rates, incentives, and confidentiality. VIB should grasp this
and focus on development. The surveyed customers found the credit line very suitable
because VIB issued cards based on customers' monthly income.
 Customer’s attitude
Most of the customers participating in the survey were very enthusiastic and
would recommend good service of VIB to their relatives and friends, showing that
VIB is developing very positively in the card service which attracts customers to use
the product of the bank.
 Customer’s desiration
The criteria that most customers are interested in choosing banks are reputable
and have good customer support services, customer support services should be
improved, developed and put on top by VIB to treat as well as attract more customers.
VIB can refer to the way of developing card services of Techcombank and Citibank
because these are the two banks that are most chosen by survey customers through the
16th survey question.
2.3. Assessment of the development of payment cards of Vietnam International
Commercial Joint Stock Bank - Dong Da Branch in the period of 2017 – 2019
2.3.1. Achivements
After more than 10 years operating under a small branch organization model
and 1 year operating under a large branch model, VIB Dong Da has always tried to
improve and achieve significant achievements. Along with the application of advanced
technologies to the payment card service, with high payment speed, VIB Dong Da has
increased safety, quickly and conveniently for customers, improving customer
satisfaction. goods and fastidious customers. The Bank also regularly sends staff to
check machines, maintain ATM, EDC / POS systems, try to avoid ATM / POS not
receiving cards, upgrade machines to increase security for customers, reduce the
situation. theft and other possible risks.
In the period of 2017 - 2019, VIB Dong Da has also continuously expanded its
payment network throughout Hanoi. The number of transaction points and the number
of EDC / POS machines installed in many supermarkets, restaurants, shopping places

55
increased, helping POS network in 2018 to gradually integrate into payment alliances,
bringing Back to customers the utility service and really safe.
The percentage of customers complaining about card service and quality only
accounts for 1% of total transactions. Most customers feel safe and happy to use a card
product with modern technology.
Besides, the payment card service also contributed significantly to increasing
the card market share and increasing the position of VIB Dong Da in the card market
of VIB in general and in the card market of Vietnam in particular. After restructuring
management, VIB Dong Da has outlined solid strategies for branch development,
especially in payment card activities. In just a short time, VIB Dong Da has issued a
large number of payment cards, applying technology combined with superior features,
which has attracted many businesses as well as science and technology using cards.
This helps VIB Dong Da to take advantage of customers' deposit balance into the
business activities of the branch such as raising medium and long-term capital without
spending much money.
With the above achievements, the card service has contributed significantly to
the development of VIB Dong Da in particular and the whole VIB in general.
Therefore, in 2018, VIB has also received many major domestic and foreign awards
for its successes and contributions to the overall development of the country: 2
International Awards for Digital Banking by The Asset voted, Vietnam Bank Award
for the most innovative Mobile Banking 2018 by Global Banking & Finance Review
(GBAF), Vietnam Best Credit Card Issuing Bank 2018 voted by Global Banking &
Finance Review (GBAF), on the occasion before the Lunar New Year 2019, VIB also
attracted the attention of the community as a Vietnamese bank paid the highest
employee salary to nearly 100 million VND / month. These are evidences for VIB's
efforts in building and developing human resources.
2.3.2. Limitations
Although the situation of payment card services has gained significant
achievements, there are still some limitations that hinder this activity:
- Card issuance growth
Based on the situation of card issuance in the period of 2017-2019, the number
of cards issued has increased sharply in the past 3 years, but the number of active cards
still accounts for too little, leading to a profit of the card business. The bank's payment
has not been strengthened and customers have not really found VIB's payment card
useful and necessary to bring it into operation. They only open the card because they
see many benefits but still do not really understand and want to use, so they have not

56
activated the card and put it to use in payment activities.The network for accepting
cards has not been widely and evenly distributed.
- Restrictions on the balance of the payment card
Based on the table of data on the mentioned card account balance, the situation
went in a positive direction, with a strong increase but the rate is too small compared
to the number of cards issued for the card business. VIB has only focused on
introducing card products so that customers are interested and then register to open
cards but not really take care of customers, activate cards and instruct card users how,
how to most effective use. This needs to be improved if VIB wants to excel in the
rapidly growing market of payment cards.
- Restrictions on resolving customer complaints
Not only VIB in particular, but the banking industry in general still has
technological limitations when ATM POS is the most effective tool of payment card
service but there are still unwanted phenomena such as card stucking error, card
reading error, machine maintenance, system error sometimes make customers unable
to pay at the place of accepting card payment and they feel bothered when the service
they use is not as what they expected.
- Restrictions on solving bad debts
Comes with the strong development of payment cards and bad debt card
numbers. VIB has promoted credit card products but has not been strictly managed and
strong measures to handle bad debt cases have made the bad debt ratio still quite high.
It may also be due to the fact that customers who use the card do not know the rules of
repaying the card balance, thus the bad debt ratio of the credit card has also increased.
2.3.3. Reasons
- Objective reasons
º Influence of socio-economic environment
The average income of Vietnamese people is low, so access to card payment
services is limited. Besides, cash consumption habit also significantly affects card
payment activities. People often spend small amounts so their access to payment card
services is limited. Shopping activities in markets and small retail outlets often
consume directly with cash without using cards. People are still not aware of personal
PIN security and do not pay attention to the recommendations of the bank. This has
made the development of card payment activities difficult.
- Competition from other banks
More and more domestic banks and foreign banks are participating in the card
market. The diversity of different card products and utilities has created a great
competition between banks. More than that, VIB Dong Da is also a new bank branch

57
that is heavily involved in the card market, with limited capital and finance, little
experience, so the card payment development activity is not high.
- Subjective reasons
º Limited capital and efficiency of capital investment
Because VIB Dong Da is a branch of VIB International Bank, the capital of the
branch is transferred daily to VIB's headquarters, the investment activities of the
branch are also under the control of the headquarters. VIB. On the other hand, card
payment activities are based mainly on modern application technologies, requiring a
large scale network which means a lot of capital investment. From the cost of
installing ATM, POS, management software costs, monitoring; technical staff
maintenance costs.
Regarding the efficiency of capital use, due to capital limitations, network expansion
still faces many difficulties. Investing in the cost of installing and maintaining ATMs
than POS systems also results in capital efficiency that does not achieve much results.
º Marketing policy is not really effective
Advertising activities of card products are still weak, asynchronous and diverse. In
addition to the success that attracts the attention of customers with many banners
advertising card products on major streets of Hanoi, other forms of advertising and
playing clips on the standby screen of ATMs are not abundant. The bank's website also
has ads for the card service, but all the ads on that site's ads are introductory. Issuance
of cards for customers is only done through the counter or through the sales office for
bank staff to directly consult and do business without connection to the Internet so that
customers can open it themselves. online card.
The policy of service fee for card payment via POS is quite high (from 1.1% - 3.6% of
payment value depending on card type). Therefore, the points of supply of goods are
not salty with this form of payment.
º Restrictions on the qualifications of bank staff in card payment activities
Although VIB Dong Da has made great efforts in training and recruiting personnel,
the actual branch still faces many difficulties in the fluctuating personnel situation,
most of them are new employees. On the other hand, compared to local banks, the
current salary of VIB staff is only average, but the amount of work at the branch is
higher than that of other banks. This is the reason why the bank has lost many
competent employees and lack of creativity in the working process.
The officers in charge of marketing and risk management have not received
intensive training, they have only been in charge of receiving and handling, but there
have not been many positive measures to limit the risks that may occur.

58
 CHAPTER 3: SOLUTIONS FOR DEVELOPING PAYMENT
CARD SERVICES AT VIETNAM INTERNATIONAL JOINT
STOCK COMMERCIAL BANK - DONG DA BRANCH:
3.1. Orientation of payment card service development of Vietnam International
Commercial Joint Stock Bank - Dong Da Branch
3.1.1. Development strategy orientation
In the current developed economy, card payment services play an important part
in banking activities. Recognizing its influence now and in the future, VIB Dong Da
has constantly focused and promoted the work of perfecting and improving the quality,
developing card payment services to enhance its position and image. themselves across
VIB and the Vietnamese banking market. To do this, VIB Dong Da will continue to
develop many convenient card products, apply modern technologies to card payment
services through ATMs, POS and Smart Phones.
In addition, VIB Dong Da is also constantly innovating, researching and
developing new products, enhancing functions and utilities to create the most suitable
product, best satisfying customer needs and meeting the trend. Current consumption
potential. VIB Dong Da has also promoted training programs for employees on both
knowledge and professional skills to be able to serve customers most thoughtfully and
carefully.
The card products provided to customers will be issued according to advanced
technology, safety and quick assurance. In order to attract customers to use card
payment services, VIB Dong Da regularly offers incentive programs and good after-
sales services for card payment customers at restaurants, hotels, spas, etc. .. have been
on the reduced list.
3.1.2. The objective of developing the payment card service of the branch in the
future
Based on the performance in the time, based on the evaluation of the achieved
goals, the unfulfilled goals and the development orientation in the coming time, VIB
Dong Da sets the set goals. calculate and quantify targets to develop card payment
services.
- Qualitative goals
Investing in modern technology in facilities, systems of ATMs, POSs,
computers at transaction points near branches in order to increase the ability to meet
the needs of customers. Try to shorten transaction time but still ensure all processes are
carried out safely, confidentially and accurately.

59
 Diversify high-value utility products and services to meet customers' needs, and
expand the bank's card payment market share.
Develop marketing and customer service activities both before and after using
the card payment service.
Continue to implement priority banking services, focusing on high-income
customers.
Organizing seminars to train soft skills for employees, creating conditions for
employees to meet, exchange, exchange experiences, learn from each other and learn
from experiences to improve and improve their quality. customer service in general
and service attitude of employees in particular.
- Quantitative goal
Continuing to deploy the plan of developing the system of issuing and paying
payment cards, credit cards, setting POS acceptance points and installing ATMs. The
goal is to reach 100 POS in 2019 at supermarkets, restaurants and trade centers.
Continue to install 10-20 more ATMs, increasing the total number of ATMs and
focusing on populated areas, businesses, and residential areas.
Improving the quality of card products and services: the rate of faulty
transactions via ATM / POS devices must not exceed 1% of the total card transaction
volume; Continuing to grow the number of cards issued: from now until the end of
2019, VIB Dong Da will set a target of issuing over 500 credit cards out of the total
number of cards issued. Improving the capacity of card staff, reducing customer
complaints about card product quality and customer service quality, maintaining at less
than 5%.
3.2. Solutions to developing payment card services at Vietnam International
Commercial Joint Stock Bank - Dong Da Branch
3.2.1. Technology solutions
(for restrictions on resolving customer complaints)
Technology is considered the foundation for the development of banking
products and services to actively support the development of card payment services.
Therefore, VIB Dong Da needs to constantly upgrade its modern technology platform,
perfect and upgrade existing programs. At the same time, to enhance the automatic
processing techniques in the processes of receiving customers' requests, professional
processing to increasingly automate transactions, minimize manual transaction
processing.
3.2.2. Product solutions
(for restriction on card issuance growth)

60
 Improving the utility of cards issued by VIB: must develop more card
recognition units so that users can pay and buy and sell goods in many places.
Diversifying card products comes with checking account information via phone and
email. The development of associated services will increase costs for VIB. Therefore,
VIB requires a thorough research and collaboration with departments to develop.
Deploying modern utilities on ATM: paying bills of electricity, water,
telephone, buying buses, trains, airplanes, exchanging foreign currencies, ...
Diversify the whole card product by developing more impressive card brands in
terms of name, design and printing.
It is necessary to shorten the time for card issuance from 5-7 days to 2-3 days or
may issue the same day in important areas.
3.2.3. Solutions for marketing activities - customer service
(for restriction on balance of the payment card and card issuance growwth)
Regarding marketing and advertising: VIB Dong Da must further promote
advertising and selling card products and services to customers. Because at present,
most people still do not know about the card payment services and utilities that the
card offers. Therefore, marketing, marketing and advertising solutions are also suitable
for each market to get the highest efficiency. Using traditional advertising methods
such as posting on newspapers or television, distributing leaflets, sending letters of
introduction about card products to VIB Dong Da's customers or potential customers.
Using modern methods such as: sending email, posting advertisements on forum
pages, websites visited by many people; organize introduction and propaganda
programs about products and services.
Regarding promotion policies: VIB Dong Da needs to choose an appropriate
time to carry out promotions such as giving gifts when issuing cards during major
holidays, New Year, student festivals, etc. and building key policies. books for
exemption and reduction according to the number of cards issued for gold cards, gift
vouchers at supermarkets, discount percent when paying by card, organizing the
winning lottery with valuable prizes.
Regarding customer service: VIB Dong Da needs to do a good job in
segmenting the market and identifying target customers, traditional customers,
potential customers. VIB Dong Da also needs to regularly make surveys and customer
surveys about product quality as well as service quality of VIB Dong Da.
3.2.4. Human resource solution
(for restrictions on card issurance growth, balance of the payment card and solving
bad debts)

61
 Constantly recruiting new quality personnel to meet the work needs. Organizing
more professional card training courses, training courses, improving qualifications for
card specialists.
Send employees to learn professional qualifications, experience abroad on card
operations.
Make periodic training plans, organize a test of the employee's knowledge
comprehension level after each training session, and learn how to master using modern
technology.
Creating a comfortable and close working atmosphere between employees and
leaders, between employees is also a very important factor to create employee-bank
close ties.
Improving the salary regime, rewarding and treating employees appropriately in
addition to the standard salary prescribed by the bank to encourage and train
employees.
Employees with a strong track record, marketing of card payment services will be
rewarded, with promotion opportunities at work.
In addition, it is necessary to train the professional skills of the credit card
officers to help VIB Dong Da's customers understand the credit card products, the
support services of VIB Dong Da are improved. With simple and convenient methods
like App MyVib, InternetBanking service, SMS Banking, it helps customers clearly
control the amount of money they have spent and pay the bank on time.
3.2.5. Expand the service network and card acceptance units
(for all the restrictions mentioned)
The network of merchants is an indispensable subject in the card payment
process, which is the direct contact with customers. Therefore, when the arrival of
merchants is increasing, the utility of using the card is increasing. Moreover,
customers' awareness is getting more and more advanced, they have found the utility
in using card payment services, so VIB Dong Da wants to compete with other banks:
Continuing to implement card business plan, further developing the merchants,
expanding the network of merchants throughout Hanoi.
Focus on promoting advertising and marketing to many shops, amusement
parks, shopping centers so that customers can see the convenience of using bank cards.
VIB Dong Da also needs to invest in POS facilities and equipment at units that
accept card payment to collect more hotels, restaurants and centers for making CAA.
Regularly provide the CAA with updated information on the application of technology
in card payment for fraudulent and fraudulent tricks.
Improve payment quality by shortening payment time for merchants.

62
 Providing technical support for equipment use and maintenance for the CAA to
ensure the most convenient card payment operation.
There are flexible discount rates for each type of business, policies to reduce
agent discount fees for merchants with high transaction turnover in VIB Dong Da card
payment.

63
3.3. Some recommendations.
3.3.1. Recommendations to the State Bank
The State Bank plays an important role in strategic direction for commercial
banks in developing card payment services. Therefore, the State Bank should continue
to improve the legal framework of card payment services, especially in complaints and
risk disputes, as a basis for dealing with problems.
There are policies to promote non-cash payments such as tightening cash
management, collecting cash usage fees for people to switch to other forms of
payment, and also need preferential policies for services. Cashless payment.
Develop a personal credit information system for banks to obtain cardholder
information in order to manage risks in card issuance activities.
Provide orientation and development roadmap for card business for commercial banks
to build their development directions, avoid overlapping wastefulness, resulting in
failure to take advantage of common advantages.
The State Bank of Vietnam needs to act as an intermediary to agree on a
agreement between commercial banks in collecting card service fees, creating a
healthy card business environment for commercial banks to develop ATM / POS and
creating favorable conditions for cardholders. in order to improve the quality of card
services to meet the increasing needs of customers.
Strengthening the inspection and supervision of the implementation of the
regulations of the State Bank, providing specific sanctions for banks that do not
comply with the regulations to ensure fairness and fair competition.
Actively coordinate with the Ministry of Public Security and direct the
commercial banks to take measures to prevent crime in card business activities to
ensure security and safety at the location of ATMs in order to protect customers' rights
and reduce minimize losses for commercial banks.
3.3.2. Recommendations to the Vietnam Bank Card Association.
In the coming time, the Vietnam Bank Card Association needs to perform a
good advisory role for the State Bank and maintain close relationships with
international card organizations in order to facilitate and accelerate the issuance. card
service development in Vietnam.
Organizing the management and association of member banks to participate in
card issuance and payment, and promoting the real role of becoming a bridge for
member banks to compete healthily, promote card payment at Vietnam develops
together.
Facilitating the analysis of information, giving timely measures to prevent possible
risks to member banks.

64
 Updating market fluctuations on prices and fees, in providing services and
announcements, guiding member banks to implement these policies.
Organize training for member banks when there are changes in card
organization's policies and regulations. Training to improve card operations and risk
management, counterfeiting prevention, traceability and complaints handling skills,
introducing card products domestically.
Organizing seminars on topics that help commercial banks share experience and
useful information. In addition, Vietnam Bank Card Association needs to cooperate
with international card organizations, domestic and international banks to meet,
exchange and learn.
3.3.3. Recommendations to Vietnam International Commercial Joint Stock Bank
Vietnam International Commercial Joint Stock Bank needs to continue
supporting Vietnam International Commercial Joint Stock Bank - Dong Da Branch in
improving the quality of card credit officers, especially expanding the understanding
of payment card products. of domestic commercial banks in general and payment card
products of international commercial banks in particular. On the one hand, this affects
the quality of the bank's payment card service and helps credit card officers to gain a
deep understanding of the bank's payment card service.
In addition, Vietnam International Commercial Joint Stock Bank needs to
continue researching on payment card products, trends and tastes of payment card
products from users to be more creative in terms of features and utilities. Card
products, helping to promote the development of card services.

65
 CONCLUSION

Payment cards are increasingly affirming the role and advantages compared to
other non-cash payment instruments. Payment by card not only benefits individual
users, service providers but also brings practical benefits to the entire economy and
society. The development of payment card services is extremely necessary,
contributing to building a civilized consumer environment and integration into the
international banking and financial community.
Recognizing the importance of this, VIB Dong Da has focused on retail banking
services, especially payment card services. In order to exploit this potential service,
VIB Bank, together with local commercial banks, has developed development oriented
policies to suit customers' needs, focusing on customers. However, VIB Dong Da is
still facing many difficulties and challenges at the present and in the future. The bank
needs to find solutions to overcome the limitations while also promoting its inherent
strengths, taking advantage of favorable opportunities to develop payment card
services in particular and banking operations. general.
Due to the limited knowledge and limited research time, the thematic articles
cannot avoid shortcomings and limitations. I look forward to receiving the comments
and suggestions of the teachers so that my graduation thesis will be more complete.
Thank you sincerely.

66
 REFERENCES

1. Nguyen Minհ Due (2007), Risk Management Lecture, Hanoi University of

Science and Tecհnology.
2. Nguyen Minհ Kieu (2009), Banking Risk Management, Statistics Publisհer –
Hanoi.
3. Nguyen Van Tien (2009), Banking Monetary - Finance, Statistics Publisհer –
Hanoi.
4. Pհan Tհi Kim Cuc (2009). Commercial Banking Management, Transport
Publisհer.
5. Tհe State Bank of Vietnam (2005) Decision No. 493/2005/QD- NHNN dated
22/04/2005on classification of debts, provision and use of provision for dealing
witհ credit risk in banking operation of credit organizations.
6. Tհe State Bank of Vietnam (2007) Decision No. 18/2007/QD-NHNN dated
25/04/2007on amending and supplementing some articles of tհe regulation on
classification of debts, provision and use of provision for dealing witհ credit risk
in banking operation of credit organizations issued under Decision
No.493/2005/QDNHNN
7. Tran Huy Hoang (2007), Commercial Banking Management, Labour and
Social Affairs Publisհer.
Refences webpages:
հttp://vneconomy.vn/
հttp://www.vnexpress.net/
հttp://www.vpbank.com.vn/
հttp://www.luatnganհang.com/

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 SUPERVISOR COMMENTS

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(Evaluating the student’s attitude, effort, work efficiency, and contact frequency
with the supervisor in the process of writing internship report.)

Supervisor

(Sign & write full name)

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