VIETNAM NATIONAL UNIVERSITY, HANOI

INTERNATIONAL SCHOOL
————————

PROGRAM
ACCOUNTING, ANALYZING AND AUDITING

GRADUATE INTERNSHIP REPORT

INTERNSHIP COMPANY/INSTITUTION: Vietnam Prosperity Joint Stock Commercial
Bank (VPBank)
Address: 89 Lang Ha Street, Lang Ha Ward, Dong Da District, Hanoi City

Student’s name: Do Quynh Anh

Hanoi – Year 2022

 VIETNAM NATIONAL UNIVERSITY, HANOI
INTERNATIONAL SCHOOL
————————

PROGRAM
ACCOUNTING, ANALYZING AND AUDITING

GRADUATE INTERNSHIP REPORT

INTERNSHIP COMPANY/INSTITUTION: Vietnam Prosperity Joint Stock
Commercial Bank (VPBank)
Address: 89 Lang Ha Street, Lang Ha Ward, Dong Da District, Hanoi City

Supervisor : MA. Phan Bao Trung

Student’s full name : Do Quynh Anh
Student’s ID : 18071281
Major :Accounting, Analyzing and Auditing
Class : AC2018D

Hanoi - Year 2022

 TABLE OF CONTENTS

SIGNAL TABLE..................................................................................................................2

LIST OF TABLES................................................................................................................3

LIST OF FIGURES..............................................................................................................3

LIST OF DIAGRAMS.........................................................................................................3

ACKNOWLEDGEMENT...................................................................................................3

DECLARATION LETTER.................................................................................................5

CHAPTER 1: INTRODUCTION.......................................................................................6

1.1 BASIC INFORMATION.......................................................................................................7

1.2 ORGANIZATIONAL STRUCTURE AND MANAGEMENT APPARATUS..................................8
1.3 MILESTONES..................................................................................................................11
1.4 STRATEGY: THE VISION, MISSION, AND THE CORE VALUE OF THE COMPANY............13

CHAPTER 2: REPORT ON FINDING RESULTS ON BUSINESS ACTIVITIES....17

2.1 RESEARCH OF OPERATION OF VP BANK........................................................................17

2.2 AN OVERVIEW OF INTERNATIONAL PAYMENT OPERATIONS AT VPBANK.....................24

CHAPTER 3: THE CONTENT OF THE WORK ASSIGNED DURING THE

INTERNSHIP.....................................................................................................................33

3.1 GRADUATION INTERNSHIP OBJECTIVES.........................................................................33

3.2 ASSIGNED TASKS...........................................................................................................33
3.3 IMPLEMENTATION METHOD...........................................................................................34

CHAPTER 4: EXPERIENCE AND RECOMMENDATIONS TO IMPROVE

ORGANIZATION AT OMRON COMPANY LIMITED..............................................44

4.1 CONTRIBUTIONS AND EXPERIENCES GAINED FROM THE INTERNSHIP............................44

4.2 PRACTICAL EXPERIENCES HAVE BEEN ACCUMULATEDGRADUATION THESIS)...............48
4.3 IDENTIFY IMPORTANT PROBLEMS AND SOLUTIONS IN THE COMING TIME TO IMPROVE
ORGANIZATIONAL PERFORMANCE (ORIENTATION FOR IN-DEPTH RESEARCH FOR THE
GRADUATION THESIS)............................................................................................................48

1
CONCLUSION...................................................................................................................36

REFERENCES...................................................................................................................37

LIST OF ABBREVIATIONS

VPBANK VIETNAM PROSPERITY JOINT STOCK COMMERCIAL

BANK
L/C Letter of Credit
SWIFT Society for Worldwide Interbank Financial Telecommunications

2
 T/T Telegraphic Transfer
TTR Telegraphic Transfer Reimbursement
NOSTRO account a bank account that a bank holds with a foreign bank in the
currency of the country where the funds are held

LIST OF TABLES
Table 1.3: An overview of VPbank's 29-year history…………………………………10
Table 2.1.1: New issued cards of VPBank 2018-2021...………………………………16
Table 2.1.1: Capital mobilization in 2019-2021 of VPBank…………..…………...….19
Table 2.2.1: Indicators of international payments 2019-2021…………………………24
Table 2.2.1.2: Documentary credit payment situation in the years 2019-2021……......25
Table 2.2.2a:Below describes the performance of international payment by L/C in
VPBank in 2021…………………...…………………………………………………..26
Table 2.2.2a1: Sales of international payment by L/C…………………………………28
Table 2.2.3a: VPBank's NOSTRO accounts at foreign banks……………………….....30

LIST OF FIGURES
Figure 1.2: Organizational Chart of VPBank…………………………………………....8
Figure 1.2.1: Business Segments of VPBank………………………………………........9
Figure 1.3 Development History………………………………………...........................11

LIST OF DIAGRAMS
Diagram 2.1.1.b: Mobilized by type over the years 2019-2020…………………………18
Diagram 2.1.1.c: Outstanding balance in 2019-2021……………………………….…...19
Diagram 2.1.1.d : Credit activities of VPBank 2018-2021……………………….……...21
Diagram 2.2.1: Indicators of international payments 2018-2021…………………..........24
Diagram 3.2: Details of cash payment accounting process…………………………..…24
Diagram 2.2.2b The Quanlity of paid L/C from 2019-2021…………………….….……29

3
 ACKNOWLEDGEMENT

In recent years, the process of international economic integration has taken place in a
diverse, dynamic and colorful way. Vietnam's foreign trade relations with other countries in
the world are increasingly developing, as evidenced by the rapid increase in export turnover
since the covid-19 pandemic.
Integration is an inevitable trend of the times and it attracts all areas of society, including
banks. The Vietnamese banking system has been expanding its network and operating
contents, making a significant contribution to the process of international economic
integration. If the international payment activities of banks do not develop, international
trade activities cannot be expanded because the requirements for international payment are
best met only through banks.
Vietnam Prosperity Joint Stock Commerce Bank is gradually making efforts to improve its
international payment activities, rising to become one of the reputable banks, ensuring to
provide safe and convenient international payment services. . Currently, in international
payment methods, documentary credit accounts for a large proportion and brings
significant revenue to VPBank. Therefore, VPBank always focuses on and improves
efficiency with this payment method.
For that reason, I chose the topic "General information of International Payment
Department at VPBank" as my internship report.
I would like to say thank you so much, there is no end to my gratitude, wish you a good
health, peace and happiness.

Sincerely,
Do Quynh Anh.

4
 DECLARATION LETTER

I formally declare that my personal article was used in the report on my internship at
Vietnam Prosperity Joint Stock Commercial Bank.
I take whole responsibility for the accuracy of the data in my report.

Hanoi, 21th October 2022

Student sign
Anh
Do Quynh Anh

5
 CHAPTER 1: INTRODUCTION

 Vietnam Prosperity Bank, formerly known as Joint Stock Commercial Bank for
Non-State Enterprises of Vietnam (VPBANK), was established under the operating
license number 0042/NH-GP issued by the Governor of the State Bank of Vietnam.
August 12, 1993 with 99 years of operation. Initial charter capital when newly
established was 20 billion VND

 Then, due to development needs, over time VPBank increased its charter capital
many times. By August 2006, VPBank's charter capital reached VND 500 billion. In
September 2006, VPBank received approval from the State Bank to sell 10% of its
share capital to a foreign strategic shareholder, OCBC Bank (Singapore), whereby
charter capital would be raised to over VND750 billion. Next, by the end of 2006,
VPBank's charter capital will increase to over VND 1,000 billion. As of December
31, 2007, VPBank's charter capital has increased to VND 2,500 billion. On January
26, 2008, VPBank's Board of Directors submitted to the General Meeting of
Shareholders to approve the plan to increase charter capital, whereby VPBank's
charter capital will increase from 2000 billion to 3,000 billion. On December 30,
2010, Vietnam Prosperity Commercial Joint Stock Bank (VPBank) officially
increased its charter capital from VND 2,456 billion to VND 4000 billion. As of
2021, capital VPBank's charter has increased to VND 25,300 billion.

 During the process of formation and development, VPBank has always paid
attention to expanding its scale and strengthening its operating network. As of
December 30, 2010, VPBank had a total of 134 branches and transaction offices
nationwide.

 VPBank is gradually affirming the reputation of a dynamic, capable bank stable

financial capacity and responsibility to the community. 2019 has come to an end

VPBank's 5-year journey (2012-2019) with brilliant marks in terms of scale and

profits, making VPBank one of the leading joint stock commercial banks Vietnam.

6
  In particular, 2018 is a historic milestone for the bank when nearly 1.5 billion shares
were officially listed on HOSE, attracting much attention major focus of domestic
and international investors. VPBank's outstanding growth is vividly reflected in its
expansion level network of VPBank, transaction points nationwide with diversified
development of sales and distribution channels

 In 2020, despite COVID-19, VPBank's full-year consolidated revenue reached over

VND39 trillion, up 7.4%. Consolidated pre-tax profit reached more than 13 trillion
dong, completing 127.5% of the plan set out at the beginning of the year. At the
same time, the international credit rating agency Moody's assessed that VPBank's
credit rating indexes continued to remain unchanged at a stable outlook.

1.1 Basic Information

Name of the Bank:
 Full name in Vietnamese: Ngân Hàng Thương Mại Cổ Phần Việt Nam Thịnh
Vượng.
 Full name in English: Vietnam Prosperity Joint Stock Commercial Bank
 Abbreviated name: VPBank.

Chairman of BOD: Mr. Ngo Chi Dung

Form: VPBank is a Commercial Bank organized in the form of Joint Stock Company,
having legal status in conformity with Vietnamese laws.
Seal: The engraving, registration, management and use of VPBank’s seal shall comply with
provisions of applicable laws and VPBank’s internal regulations.
Head office:
 Address : 89 Lang Ha Street, Lang Ha Ward, Dong Da District, Hanoi City
 Tel : 84-4-39288869 Fax: 84-4-39288867
 Website : www.vpbank.com.vn
 Email: vpb@vpb.com.vn

Tax code: 0100233583

Total assests: reached nearly VND 548,000 billion (By the end of 2021)
Affiliated units: VPBank shall be entitled to establish subsidiaries, branches, transaction
7
offices, representative offices, non-productive units and other forms of commercial
presence
inside and outside the country to achieve the objectives of VPBank in accordance with
applicable laws.
Duration of operation: of VPBank shall be ninety nine (99) years as from the establishment
date and may be extended in accordance with applicable laws.
1.2 Organizational Structure and Management Apparatus
Figure 1.2: Organizational Chart of VPBank

8
Figure 1.2.1: Business Segments of VPBank

 In order to adjust to the current environment, VP Bank made changes to the

authoritative structure at each step of development. The Board of Directors serves
the interests of the shareholders who own a capital stake in the bank. It is the top
organ in this organization and has the ability to decide how development will
proceed. A General Manager and Board of Management will be chosen, and they
will be in charge of all banking operations.
 Through the chart, the organizational structure of VP bank is quietly strict that
include functional department to run all activities smoothly.
 The shareholders meeting is the VPBank's highest authority. It has the power
to make decisions regarding the direction of VP Bank, its organizational
structure, the supervision of the Board of Directors, Supervisory Board, and
Credit Committee, charter capital, the buying and selling of the bank's shares,
the bank's restructuring or dissolution, the creation of subsidiaries, and its
financial matters.
 The bank's management team, the Board of Directors, has the authority to
speak for the bank in matters pertaining to its success and interests, with the
exception of those that fall under the purview of the Shareholders Meeting.
The number of members on the board of directors of VP Bank ranges from 5

9
 to a maximum of 11. Non-executive and independent members must make up
at least half of the board.
 In addition to reporting the results of operations to the Board of Directors and
consulting with the Board of Directors prior to submitting reports, decisions,
and petitions to the Shareholders Meeting, the Supervisory Board is
responsible for examining the accuracy and legality of management, business
operations, accounting records, and financial statements. The Supervisory
Board of VP Bank must consist of at least three people, with no upper limit,
and at least half of those people must not simultaneously hold jobs at VP
Bank and other companies.
 The General Manager is responsible for overseeing the day-to-day operations
of VP Bank and putting Board of Directors and Shareholders Meeting
decisions, as well as other business initiatives, into action. It is accountable to
the Board of Directors and the law for carrying out the assigned rights and
obligations and is under the supervision of the Supervisory Board and Board
of Directors. The chief accountant, heads of departments at the corporate
headquarters, branch managers, and other positions serve as the general
manager's assistants.

1.3 Milestones
Table 1.3: An overview of VPbank's 29-year history
12 August 1993 The bank was established under the name of Vietnam Joint Stock
Commercial Bank for Private Enterprises with charter capital of
VND20 billion;
2006 Engaged OCBC Singapore as a strategic shareholder and founded two
subsidiaries, namely Vietnam Prosperity Bank Asset Management
Limited Company (VPB AMC) and VPbank Securities Company
Limited (VPBS);
2007 Became the first bank in Vietnam to introduce a chip card
2009 Launched E-Banking service;
2010 Renamed as Vietnam Prosperity Joint Stock Commercial Bank and
piloted a modern model of retail bank branches with consultation of
McKinsey & Company and formed Consumer Finance Division under

10
 the brand name of FE Credit
2014 Became one of the top 10 Vietnam's banks selected to adopt the
standard approach of Basel II;
2015 Outlook upgraded to "Positive" from "Stable" by Moody's;
19 July 2017 Became a public company under the Document No.5043/UBCK-
GSDC issued by the State Securities Commission of Vietnam;
08 August 2017 Listed on Ho Chi Minh Stock Exchange (HOSE);
17 August 2017 Traded on Ho Chi Minh Stock Exchange (HOSE);
12 Increased the charter capital to VND24,962,728,720,000;
September,2018
27November, Increased the charter capital to VND25,299,679,660,000;
2018
June 28, 2021 VPBank officially launched the all-powerful digital banking platform
VPBank NEO (NEO), upgraded from the previous VPBank Online e-
banking application, with outstanding advantages. technology,
utilities and 100% free for users.

Figure 1.3 Development History

11
1.4 Strategy: The Vision, Mission, and the Core value of the Company
 Vision:
As one of the earliest joint stock commercial banks established in Vietnam, VPBank
has made steady progress throughout the bank's history. VPBank has set strategic
goals with the ambition of becoming the most consumer-friendly bank thanks to
technology application and entering the group of 3 most valuable banks in Vietnam.
 Mission:
VPBank believes that the bank will fulfill its mission of bringing the highest benefits
to customers, paying attention to the interests of employees and shareholders,
building a strong corporate culture, and making effective contributions to customers
results in community development.
 Core Values:

The support for the implementation of the above strategy is the VPBank corporate
culture which is nurtured and built on six core values:
1. Customer Focus;
2. Productivity;
3. Ambition;
4. People Development;
5. Trust;
6. Make the Difference.
The achievements of this transition period have determined the right strategy,
with the positive changes of image, service quality, professionalism, etc. The trust
of customers for VPBank has also strengthened by the constantly increasing
number of new customers and capital mobilization. More importantly, VPBank is
becoming a desirable destination for talent in the banking and finance industry.
This key element has been, and will become VPBank’s strategic weapons in the
journey towards becoming the most consumer- friendly technology- driven bank
and among Vietnam’s top 3 most valuable banks.
In the future, despite many challenges, rapid changes in digital technology and
consumer behaviours, and new players, VPBank is willing to take both new
opportunities and challenges to sustain growth and conquer new heights. VPBank

12
 believes that its above-mentioned vision and strategy will help the Bank to
achieve its mission to maximize customers’ benefits, attach special importance to
the interests of employees and shareholders, build a strong corporate culture, and
contribute effectively to community development.
The bank has two subsidiaries with 100% of ownership namely VPBank Finance
Company Limited (VPB FC) for consumer finance and VPBank Asset
Management Company Limited (VPB AMC) for debt and asset management.

1.5 Main operation

 Taking demand deposits, term deposits, savings deposits, and deposits of other
types.
 Granting credit in the following forms:
 Lending;
 Discounting and re-discounting negotiable instruments and other valuable
papers;
 Bank guarantee;
 Issuing credit cards;
 Domestic factoring;
 Other forms of credit extension after obtaining approval from the SBV;
 Establishing current accounts for clients
 Providing domestic payment services:
 Providing payment instruments;
 Providing payment services such as check, payment order, payment
authorization, collection, authorized collection, letter of credit, bank card, and
collection and payment services as customer’s agent.
 Opening accounts: opening accounts at the SBV, other credit institutions, foreign
bank branches
 Asset management, preservation, and safe leasing services; banking consulting;
finance consulting; and cash management services
 Consulting in corporate
finance, purchasing, selling, integrating,
merging businesses, and consulting in
investments
13
 Taking part in the auctioning, buying, and selling of government bonds, Treasury
bills, negotiable instruments, SBV bills, and other valuable papers on the financial
market.
 Buying, selling government bonds, corporate bonds
 Monetary brokerage services
 Issuing certificates of deposits, promissory notes, treasury bills and bonds to
mobilize capital as per Law on Credit Institutions, Law on Securities, regulations of
the Government and guidance of the SBV
 Borrowing from the SBV in the form of refinancing according to Law on State Bank
of Vietnam and guidance of the State Bank of Vietnam.
 Borrowing, lending, making/taking deposits to/from credit institutions, foreign bank
branches, local and foreign financial institutions according to the laws and guidance
of the SBV
 Contributing capital, buying shares as per regulations of the laws and guidance of
the SBV.
 Entrusting, receiving entrustment or acting as an agency in areas related to banking
activity, insurance and asset management in accordance with legal provisions and
guidance of the SBV, including:
 Receiving and carrying out lending entrustments
 Giving and receiving a trust to buy business bonds, make a capital donation,
or buy shares
 Being an insurance company
 Other entrustment operations, accepting entrustments, and agencies relating to
banking, insurance, and asset management in compliance with statutory
requirements and SBV guidance

 In each period, trading and delivering FX services in accordance with SBV

regulations in both domestic and foreign markets, including the following services
 Basic FX trading and service provision in the domestic market including:
i.Conducting spot FX purchase and sale transactions;
ii.Conducting FX forward, swap, option transactions;

14
 iii.Taking deposits, making loans in foreign currencies from/to customers
being non- credit institutions;
iv. Foreign currency – based factoring and guarantee;
v. Issuing and acting as an issuing agency for international bank cards,
making payments, acting as agency for payment by international bank cards
vi. Providing services of remittance and payment in foreign currencies in the
territory of Vietnam, Foreign currency receipt and payment services;
vii. Buying, selling, discounting, rediscounting negotiable instruments and
other valuable papers in foreign currencies;
viii. Assigning credit institutions, foreign bank branches or economic
organizations to act as an agency to provide some FX services such as foreign
currency exchange, receipt and payment services;
ix. Providing foreign currency asset management and preservation; receiving
FX – based lending entrustment;
x. Acting as an agency to issue valuable papers in foreign currencies;
xi. Providing FX consulting services to customers
xii. Opening current accounts in foreign currencies at other commercial
banks, foreign bank branches permitted to conduct FX services;
xiii. Borrowing and making FX loans from/to other permitted credit
institutions, domestic financial institutions;
xiv. Making deposits, taking deposits in foreign currencies with other
permitted credit institutions;
xv. Opening current accounts for foreign credit institutions;
xvi. Receiving deposits in foreign currencies from foreign credit institutions;
xvii. Conducting FX – based interest rate derivative transactions in the
domestic markets as per guidance of the SBV;
xviii. Conducting other FX – based interest rate derivative transactions in the
domestic markets when the SBV has guidance documents and VPBank is
permitted to conduct such transactions in VND by the SBV.
 Trading, providing FX, interest rate, monetary derivative products and derivatives
on other financial assets in the domestic and international markets after obtaining
15
 approval from the SBV.
 Trading, providing interest rate derivative product as per legal regulations and
guidance of the SBV;
 Securities custody;
 Gold bar trading;
 E-wallet;
 Commodity derivative products (after obtaining the SBV’s approval);
 Investment in government bond futures;
 Debt sale and purchase;
 Other activities (after obtaining the SBV’s approval).

CHAPTER 2: REPORT ON FINDING RESULTS ON BUSINESS

ACTIVITIES

2.1 Research of operation of VP Bank

2.1.1 Some main activities
a, Card activities
 As the economy develops, interest in usage also rapidly increases. People will
thereby discover a payment option that is quick, secure, and practical. These
tendencies of using cards in routine transactions are becoming more common in
Vietnam. Additionally, integrating cutting-edge technology in the baking system
allowed banks to finish their card payment methods, meeting client demands. The
success of VP Bank may also be seen in how well the cards are issued. Along with
providing some new card types, VP Bank has expanded its ATM and point-of-sale
network..

Table 2.1.1: New issued cards of VPBank 2018-2021

2018 2019 2020 2021
Numbe Proportion Numbe Proportion Numbe Proportion Numbe Proportion
r r r r

16
 Domestic 3587 83.1% 3679 83% 5400 84.7% 5600 80,9%
debit card
International 663 11% 654 14.7% 702 14.1% 950 13,7%
debit card
Credit card 96 2.8% 102 2.3% 270 4.3% 370 5.2%

(Source: Annual report of VPBank)

 By the end of 2018, VPBank issued 3.8 million credit and debit cards, double of that
in 2017. Card active rate increased from 64% to 68% in 2018. VPBank was one of a
few banks in the market with top average spending via cards, at VND 11.5 million
per month for each active card.
 By the end of 2019, VPBank issued 3.2 million credit cards, up 70% year on year. In
particular, the bank’s total card spending of VND 59 trillion was still highest on the
market, up 63% year on year.

b. Capital mobilization
 The funds raised will determine the size and orientation of banking operations. If
capital is regarded as inputs in the process of business of a commercial bank, the
mobilized capital is regarded as regular inputs, most major banks. Banks perform
credit operations, investments mainly rely on this source. Mobilized funds have a
major influence on the results of the commercial bank operations. Specifically, if the
bank raised abundant capital at low cost it can expand investment credit and higher
profits. In contrast, with limited scale and high costs, the bank may face difficulties
in its business activities. Cost of bank raise capital is closely related to the type of
interest rates on deposits, savings deposits interest rates and interest rate types of
debt instruments issued by banks.
 Capital mobilization is an activity that VPBank pays great attention to, with the goal
of ensuring loan capital, secure liquidity and rapidly increasing Credit assets,
enhancing VPBank's position in the banking system. Therefore, in the past years, the
activities of raising capital from the interbank sector have been fully exploited by
VPBank.

17
  In the complicated context of COVID-19, but the capital mobilization rate of banks,
especially VPBank, still grew in an increasing direction, showing the efforts of
commercial banks to maintain a stable source of input capital. Raise capital from
customers and issuance of valuable papers reached 271,549 billion dong, up 23.7%
year on year 2018. Centralized deposit growth mainly in strategic segments of the
bank.
Raising capital from customer deposits & issuing bonds reached 296,273 billion
dong, up 9.1% compared to 2019. In which, mobilized from customer deposits
goods continue to play a leading role in the source quality mobilization of the bank
with the proportion 75% of total deposits.

Diagram 2.1.1.b: Mobilized by type over the years 2019-2020

18
 2019 2020 2021
Targets
Proportio Proportio Proportio
Surplus Surplus Surplus
n n n
Funds 2.708.994.8 2.638.584, 4.242.510,
100% 100% 100%
mobilized 52 47 79
Segmentati
on by term
1.498.977,3 2.058.095, 3.394.008,
Short-term 83% 78% 80%
2 99 54
Medium and
307.019,23 17% 580.488,48 22% 848.502,25 20%
long term
Segmentati
on by
structure
Market
1.502.172, 2.657.518,
Mobilizatio 864.728,75 48% 57% 63%
83 34
nI
Market
1.122.371, 1.584.992,
Mobilizatio 941.267,81 52% 43% 37%
64 45
n II

Table 2.1.1: Capital mobilization in 2019-2021 of VPBank

c, Outstanding balance
 True to the expectation made at the beginning of the year, VPBank's business
activities in the first half of 2022 recorded impressive growth thanks to the strong
recovery of the economy. Consolidated bank credit balance reached VND 436
trillion, of which credit growth of the parent bank alone was 14.3%, higher than the
industry average of 9.35%.
Diagram 2.1.1.c: Outstanding balance in 2019-2021

19
 Outstanding balance in 2019-2021
400,000

350,000

300,000

250,000

200,000

150,000

100,000

50,000

0
2019 2020 2021

Series 1

 The focus on underpinning growth strategic segments with strong adoption

sales enablement technologies have resulted in a positive results, especially in the
second half of 2020 when under control, strategic segments regain good growth
momentum and continue to play a pivotal role core in the growth of the bank as a
whole, with a contributed 61% to VPBank's credit balance.
In 2021 is a year full of changes and difficulties for Vietnam's economy and society,
especially the community business co. Nearly 120,000 businesses have had to leave
the market. Thanks to turn challenge to chance,
consolidated credit balance, increased at 18.9% (reaching more than 384 trillion
VND)
d, Credit activities
 Credit activities is one of the sections the bank need to focus on because it can make
profit as well as is the important criteria to rate the performance of bank. By
undertaking some measure such as training employees with deep knowledge in
crediting and consulting, increasing the trust in customers as well as brand image of
bank, it helps crediting department to operate more effectively. VP Bank can lend
more money to small and medium enterprises and individual customers.
By the end of 2021, total lending from bank had an increase. Consolidated credit
balance reached more than VND 384,000 billion, up 18.9%.
 In the first months of 2021, thanks to the promotion of flexible and effective
business policies, credit balance grew positively at both the parent bank and FE
Credit. At the same time, VPBank continues to actively and flexibly regulate the

20
 balance sheetand optimize costs to help improve COF & CIR ratios, towards the
Bank's quality and sustainable growth goals row.
Diagram 2.1.1.d : Credit activities of VPBank 2018-2021
(Unit: Billion VND)
18000

16000

14000

12000

10000

8000

6000

4000

2000

0
2018 2019 2020 2021

Short term loan Medium and long term loans

 Based on the figure, the bank pays much attention to short term loans that usually
occurs 75% in total except in 2018. Although with medium and long term loans, the
bank can generate more profit, the long time and huge amount money can put the
whole bank in danger in any time. Another reason is that enterprises which usually
borrow in long term absorbs the capital from bank slowly, individual credit seems to
grow continuously in near future according to the Kalidas Ghose – vice director of
VP Bank.

Table 2.1.1.d:
2019 2020 2021
VND loans 261.798.526 296.802.101 436
Foreign currency 0 0 100
loans
Overdue debt ratio 3.0% 2.95% 2.87%
(Source: Annual report of VP Bank)
 By the end of 2020, more than 110,000 guests at VPBank have been supported to

21
 reduce interest rates interest rate with total outstanding loans of over 50 trillion
dong. Most loans are affected by Covid-19 has received structural support from
VPBank return to normal state
 The highlight that we can see is that the rate of foreign currency loans increases in
2021, while in 2019 and 2020 the total outstanding loans are paid in VND. This
difference can be due to a number of reasons. Firstly, reducing the USD lending
interest rate may have stimulated market demand after the covid-19 pandemic.
Interest rates decreased by 1% compared to 2020, of which short-term interest rates
are about 3.0-4.5%/year and medium and long-term lending rates are at
4.2-6.0%/year. Moreover, USD is not as volatile as VND, which will help the debt
not to be disturbed by the exchange rate between VND and USD. In addition, in
2021, the exchange rate is stable and under the control of state banks, so businesses
give priority to using USD - a stronger foreign currency than using VND in
transactions.
 In 2019, in the face of difficult financial market situation along with complicated
developments of the covid-19 pandemic, individuals and businesses had difficulty
paying debts. Besides, the credit management ability is still not synchronized and
weak. Therefore, the rate of overdue debt is quite high, accounting for 2.95% of total
outstanding loans. Until 2021, the economic recovery as well as thanks to the
experience and banking tools, the management can estimate risks more accurately
should be a successful year for VP Bank in acquisition and disposal. overdue.
Branch debt has decreased from 3.00% in 2020 to 2.85% in 2021
Another point of credit activities is that personal credit has become the mainstream
of retail banks due to diversified products and the right strategy. Mr. Kalisdas Ghose
said that the difficult situation of the economy did not have a big negative impact on
personal consumption demand like other economic sectors. It is growing steadily
that can force personal loans at VP Bank.
 Managers believe the trend will continue because VP Bank attracted 57% more new
clients in 2020 than it did in the corresponding period in 2019. The bank will create
new types of products and services, such as payment methods for card services,
flexible loans with clear procedures for customers' asset purchases, and investment
22
 products, to implement the personal credit operations.
Due to improved risk management and more effective capital management, the
Basel II implementation roadmap makes VP operations safer and more reliable. Due
to the rising cost of capital, the deployment also has an impact on the interest rate
disparity. In order to address the issue, the Board of Directors of VP Bank has taken
proactive actions to safeguard the interests of shareholders and investors, such as
increasing management efficiency to cut down on operating expenses and deeply
specializing to boost labor productivity.
In general, after long time of development, the bank has tight operation to manage
risk and control risk of loan portfolio. Providing more diversity of loan product as
well as relevant strengthening risk management policies to attract more customers is
a big purpose the bank pursue in long term.
2.2 An overview of international payment operations at VPbank
 The primary duty of the International Payment Sector is to advise executives on
matters pertaining to the bank's corporate development initiatives. In addition, the
sector is in charge of organizing, controlling, and keeping track of the branch's
goods and services, including foreign payments and credit for import/export
businesses. International Payment is currently one of the division's business areas.
 The International Payment Sector carries out the following duties in accordance with
branch regulations:
 Providing payment products and services including packs of payment,
traveling check, Western Union payment, etc.
 Executing trust funds from overseas people and organizations, valuing and
putting together paperwork for clients looking to acquire a letter of credit.
 Putting into practice sales and marketing initiatives to increase the service
market's size and creating regular statistics reports

2.2.1 The international payment situation of VPBank in recent years

VP Bank received the accolade "The Bank has international payment quality
excellence" for the eighth time in a row from Bank of New York Mellon (BNYM).
This is an annual honor given to a bank for having a high standard of international
payment transaction rate (also known as STP, or Straight Through Processing),
23
 which is a crucial factor in determining the effectiveness of an automatic payment
bank. BNYM reports that the VP Bank STP rate is close to 98%.
Table 2.2.1: Indicators of international payments 2019-2021
(Unit: Thousand USD)
2019 2020 2021
Import L/C 179 250 573
Export L/C 140 234 521
TTR 130 184 250
Collection of 39.6 49.9 57.2
Payment
(Source: Annual report of VPBank)
700

600

500

400
2019
300 2020
2021
200

100

0
Import L/C Export L/C TTR Collection of
Payment

Diagram 2.2.1: Indicators of international payments 2018-2021 (Unit: Thousand USD)

As Vietnam's economy works to recover from the Covid-19 outbreak, there is a growing
need for international payments. In 2021, the import L/C value will jump significantly from
250,000 USD in 2020 to 573 USD in 2021. The value of export L/Cs will then reach
$521,000 in 2021. TTR value also increased steadily during a three-year period. five. In
conclusion, VP bank can entice an increasing number of customers to use its baking system
by combining professional experience with cutting-edge technology.

Table 2.2.1.2: Documentary credit payment situation in the years 2019-2021

24
 Service
L/C ENTER 2019 L/C ENTER 2020 L/C ENTER 2021

UNI UNI
UNIT VALUE VALUE VALUE
Currency T T
USD 227 17,770,838.28 230 16,592,709.86 233 37,109,446.86
JPY 51 154,293,131.00 51 100,060,500.00 36 157,707,255.00
EUR 15 387,146.00 12 371,381.94 20 744,646.52
GBP 2 12,000.00 0 0 0 0
AUD 2 44,632.50 0 0 2 51,264.00
NZD 0 0 0 0 0 0
SGD 0 0 0 0 2 27,142.50
THB 0 0 0 0 0 0
CHF 0 0 0 0 0 0
TOTAL 297 VND154,736,909.50 293 VND117,024,591.80 293 VND195,639,754.90
(Source: International Communication Department – OPS Department – VPBank
Hanoi)
 From the report on international payment situation, it shows that import L/C
payment is mainly in USD, JPY, EUR. However, the increase in import payments in
2019 was mainly payments with European, US, and Japanese partners.
 The year 2020 is influenced by the Covid-19 pandemic was complicated, the total
L/C decreased by 7.8% compared to 2019
 In 2021, VPBank pioneered to issue online L/C to support businesses in safe and
economical transactions, so total revenue increased by 6.1% in 2020 Seizing the
opportunity for VPBank to expand payments to other Asian countries: Australia,
Singapore. In 2021 VPBank will expand payment to other Asian countries:
Australia, Singapore. Revenue from L/C payment imported from the United States is
up to 37 million USD, up from 2020 is 21 million USD (348,936 million VND), in
addition, VPBank increased payment revenue in European countries to 744,646, 52
EUR (201,717 million VND) an increase of nearly 200% compared to 2020.
Overview of payments by documentary credit Imports in 2021 will increase
significantly (50%) compared to 2020 mainly from Vietnamese enterprises sharply
increased imports from the US market and at the same time is gradually shifting to
cooperate with European markets and some other Asian countries (Singapore)

 Remittance, collection, and letter of credit are the three primary means of foreign
payment. Due to its benefits, including a high level of security for both buyers and
sellers, a reasonable fee, and others, letter of credit is the technique that is used the
most commonly. Additionally, this approach has generated the most income for the
branch. The revenue generated by each of the three ways used by VPBANK during
the past three years is clearly displayed in Figure 5 below (2019,2020 and 2021).

25
Table 2.2.1.3: Revenue according to methods of international payments of VPBank

Methods of payment Remittance and Collection Letter of credit (L/C)

Time
2019 42.41 % 57.59 %
2020 31.28 % 68,72 %
2021 27.08% 72.92 %
( Source: report of VPBank from 2019 to 2021)
 The table shows that revenue from payments made by letter of credit increased
gradually between 2019 and 2021. The overall return from L/C transactions in 2019
was USD 64,505 thousand, or 57.59% of all foreign payment revenues. This amount
climbed to USD 81,823 thousand in 2020, making up 68.72% of the total. The
overall revenues from payments made by L/C in 2021 totaled USD 84,934 thousand,
or 72.92% of all foreign payment revenues.
 The branch's data from 2019 to 2021 show that L/C payments were still used more
frequently than the other two options overall. The documentary credit mode of
payment generated USD 78,405 thousand in income in 2019, or 57.59% of the total.
This amount climbed to USD 81,823 thousand in 2020, accounting for 68.72% of
the overall revenue. The amount was USD 84,734 thousand in 2021, making up
72.92 percent of the entire revenue. This growth demonstrates that international
payments, particularly the L/C technique following the COVID-19 epidemic, have
improved. This is a good outcome for VPBank because it managed to maintain such
a high growth rate in the face of intense competition in the banking industry and
adverse economic effects.

2.2.2 The efficiency of international payment by documentary credit at VPBank

a. Financial norms
Table 2.2.2a:Below describes the performance of international payment by L/C in VPBank in
2021

Months The number of Cost of L/C (USD) Revenue by L/C

26
 L/C opened (VND)

FEB 9
76,019,76 1,211,179,905
MAR 10
13,001,600 1,297,992,360
APRIL 8
10,205,488 981,523,755
MAY 9
10,068,406 946,460,205
JUN 8
11,0015,32 986,792,535
JULY 9
12,173,950 1,053,774,555
AUG 9
12,2048,26 1,133,660,130
SEP 8
13,613,336 1,113,534,045
OCT 9
13,001,218 1,138,782,315
NOV 12
17,120,484 1,954,325,820
DEC 11
18,916,752 1,405,589,835

SUM 102

138,909,568 13,223,615,460

(Source: VPBank’s report on international payment by L/C in 2021)

 It is clear that from February to December of 2021, there were a very consistent amount
of L/C opened in the 8–12 pack range. According to VPBank's annual reports for 2019–
2021, more L/Cs were opened during this time period. There were 65 packs of L/C
opened in 2019. In 2020 and 2021, this number increased by 90 packs and 102 packs,
respectively. Even though the number of L/C opened by VPBank wasn't as large as the
number opened, the rising number of L/C opened throughout time has demonstrated the
bank's never-ending efforts to grow its clientele and conduct business.
Because the number of L/C opened from 2019-2021 increased, its payment value also
increased. The fact can be found in table 7 below.
27
 Table 2.2.2a1: Sales of international payment by L/C

Years
2019 2020 2021
Norms

Payment value of L/C (USD)20,591,653 50,735,421 69,454,784

Next year/previous year 2.4 1.3

(Source: VPBank’s report about sales of international payment in 2019, 2020 and 2021)
It’s seen that the sales of L/C payment has an increasing trend over years. The sales in
2021 increased 1.3 times compared to the sum in 2020 which increased 2.4 times compared
to 2019
b, Non- financial norms
Diagram 2.2.2b The Quanlity of paid L/C from 2019-2021
 In the non-financial indicators group displays the total L/C payments from 2019 to
2020, demonstrating the effectiveness of L/C’s foreign payment activities.

The Quanlity of paid L/C from 2019-2021

135

130

125

120

115

110

105

100
2019 2020 2021

Series 1

(Source: VPBank’s report about payments by L/C in 2019-2021)

 According to VPBank's report on international payment operations in 2021, 102
packs of L/Cs were opened, including 20 packs of export L/Cs and 82 packs of
28
 import L/Cs. Because the majority of VPBank's clients are import or export
businesses with large quantities of raw materials and equipment, each pack
frequently had a significant payment value. In actuality, VPBank's L/C openings
represent one-third of all L/Cs VPBank opens in 2021.

2.2.3 An evaluation of international payment by L/C at VPBank

 As analysis above, the international payment operations by L/C in VPBank gained some
achievements and faced up with some limitations.

a, Achievements
 In terms of scale: VPBank has 9 accounts serving international payments in the
world, including 4 USD accounts with 4 major US commercial banks. Besides,
VPBank also opened other foreign currency accounts such as EUR, JYP, CAD,
AUD, SGD...

Table 2.2.3a: VPBank's NOSTRO accounts at foreign banks

Account Bank with VPBank's NOSTR account
Address
Type NOSTRO account number
One Madison Vavenue. 3rd
Standard Chartered Bank 3583 099 925 001 Floor, New York, N.Y.
10010, USA
111 Wall Street, 21st Floor,
City Bank 361 148 35 New York, New York
10043, USA
TK USD
5th Floor, 1290 Avenue of
The Bank of New York 980 041 8893 Americas, New York
10104, USA
11 Penn Plaza, 4th Floor,
Wachovina Bank N.A. New
200 0191 008 650 New york, New York
York Branch
10001, USA
Bockenheimer
BHF Bank Aktienges
TK EUR 746 833 Landstransse 106 0323,
Ellchaft
Frankfurt, Germany
P.O. Box 194.
The Bank of Tokyo -
TK JPY 653 042 8582 Nohombashi, Tokyo 103 -
Mitsubishi Limited
8684 Japan
Commonwealth bank of 1005 4450 2UAD Level 2, 120 Pitt St, Sydney
TK AUD
Australia 112601 NSW 1155 Australia
44 King Street West,
CAD The Bank of Nova Scotia 527 120 313 114 Toronto, Antonio, Canada,
M5H.1H1

29
 OCBC Centre, 9th Floor,
Oversea Chiness Banking
TK SGD 501 891 592 001 65 Chunia Street,
Corporation Limited
Singapore 049513
 In terms of quantity: From Table 5, we see: If in 2019 and 2020 VPBank makes
payments mainly in strong foreign currencies such as: USD, EUR, JPY, AUD, NZD,
SGD... It proves that VPBank has expanding with customers not only in the two
traditional markets of the US and Europe, but also exploiting its strengths in other
Asian markets.
 The technology used in international payments in general and method of L/C in
particular has been moderner and has toughed international payment standards
 Payments by L/C has always occupied high rate in revenue from international
payments Therefore, it has created favorable conditions for developing other
banking activities.
 The time implementing international payment operations has been shorter and its
security has been higher.

b, Limitation
 The progress of expanding payment through correspondent banks abroad is still
slow and lacks orientation:
 Currently, VPBank has USD accounts at 4 banks in the US (Standard Chartered
Bank, City Bank, The bank of New York, Wachovia Bank N.A New York
Branch), so the ability to expand import and export payments in other foreign
currencies is still difficult. difficult when most payment transactions use USD.
 Besides, the USD is not stable, but VPBank's NOSTRO accounts are mainly in
USD and located at major US banks, while import-export businesses in Vietnam
are targeting Middle East markets. , South America and some other Asian
markets...
 The number of payments in a year is small:
 In the context of the Covid-19 pandemic in 2020 increased by about 29.8 %
compared to 2019, the revenue as well as the number of credit payments for
imported goods in 2020 decreased significantly. Thereby, it shows that VPBank's
marketing to build brand and reputation is not promoting its full strength.

30
  Moreover, VPBank's position compared to other state-owned commercial banks
is still limited, so it is relatively difficult to win large payments from these banks.
 The international payment market is shrinking because joint venture banks and
branches of major banks in the world are acquiring the international payment market
in Vietnam. Therefore, opportunities for VPBank will become challenges if VPBank
does not promote its strengths even at home.
c, Objective causes
 First off, in 2020 COVID-19 epidemic has had a significant impact on all banks
worldwide, including VPBank. As a result, there is significant currency volatility in
overseas payments. More specifically, as the USD price rose, the Department of
Foreign Exchange and Capital Management's transaction expenses rose, decreasing
the number of payment transactions for imported goods with customers of all banks.
On the other hand, the customer cautioned with all kinds of international payment
transactions. Therefore, the international payment operations by L/C really met
obstacles
 The government of Vietnam's commercial policy was also unstable, which made it
difficult for commercial banks to conduct business with foreign parties. The price of
items fluctuates due to the ongoing adjustment in import taxes. So, a challenging
scenario arose between the importer and the commercial bank. While the
government's direction for import plans of commercial banks and decision to
business strategies of firms is extremely significant

Finally, the client was the source of the issues. Actually, a lack of information and
global linkages caused businesses to really consider their partner selection. It is
acknowledged that clients don't really know a lot about laws and other international
standards when it comes to overseas payments. As a result, it was occasionally
challenging for the consumer and the bank to work together on overseas transactions

31
 CHAPTER 3: THE CONTENT OF THE WORK ASSIGNED DURING THE
INTERNSHIP
3.1 Graduation internship objectives.
 The initial objective is to be able to put the specific knowledge of accounting that
has been acquired to use in real work, in addition to using accounting software at the
bank proficiently, knowing accounting legislation, and having the capacity to
quickly comprehend the most recent tax law rules. Gain knowledge and experience
performing accounting tasks, including payment tasks involving invoices and
vouchers. By diversifying accounting and payment operations in an international
payment position or an accounting job with other companies, the international
payment internship position aids in developing skills appropriate for the payment
accounting career. The abilities required for the future objective of becoming a
controller include inspecting, assuring the accuracy, timely, and exact reflection of
the data of emerging economic transactions, etc.

3.2 Assigned tasks

In the work of a general international payment intern at the enterprise, there will be duties
such as:
 Support to receive transaction requests, check and verify the supplied documents (if
necessary) and provide services, process/account transactions as assigned, ensure
ensure accuracy, timeliness and compliance with current regulations; including
support for other departments/rooms in the Center when needed.
 Arrange and complete documents correctly, fully and timely according to VPBank's
regulations
 Perform reconciliation and balance of accounts managed by the department,
compare transactions between systems to promptly detect and coordinate to handle
deviations.

32
  Implement customer experience activities during the transaction period, ensuring
that all activities focus on customers (including external customers and internal
customers).
 Receive and/or summarize customer's problems and complaints (including external
customers and internal customers) arising in the process of providing services,
operating daily business processes, reporting promptly go to the superior for the
superior to assist in handling and solving.
 Track data/information (both qualitative and quantitative) and make periodic reports,
in defined formats and guidelines or as required, covering process-related issues
provide services and operate day-to-day transactions, including but not limited to:
transaction errors, system errors, bounced/rejected transactions, exception approvals,
debt-to-delivery documents translation, fraudulent/suspicious transactions…

3.3.Implementation method
International payment includes conditions such as: currency, location, international
payment method conditions, time conditions. Here are the most popular international
payment methods today:
Method 1: Remittance method
 In international payment methods, this method causes many risks for both parties.
The importer requests his bank to transfer a certain amount of money to the exporter
(beneficiary) at a certain location by means of remittance specified by the importer.
 In fact, there are many cases where the importer will not transfer money to the
exporter until the goods are fully received. This is an advantage for the importer but
a risk for the exporter when the goods have been delivered but the money is not
paid, payment is delayed or payment is not complete. However, the importer can
also bear the risk, especially in the case of money transfer before delivery such as:
receiving the full amount of goods before delivery, deposit, advance, etc.

Method 2: Documentary credit method (Letter of Credit – L/C)

 Among international payment methods, payment via letter of credit is used quite
commonly. This is a method of transferring the payment responsibility from the
importer to the bank to ensure that the exporter delivers and receives the goods
33
 safely and quickly, and the importer receives the invoice for shipping goods on time.
Therefore, to a certain extent, L/C is a payment method that balances the interests of
both exporters and importers and resolves conflicts of distrust of both parties.
 However, in the process of applying, the parties should pay attention to the
following legal features of the letter of credit to avoid misapplication, causing
damage to themselves.
 L/C is an independent contract with international sales contract (base
contract) L/C is formed on the basis of base contract (goods sale contract,
service contract) …) but when released it is completely independent of the
underlying contract. The bank opening the letter of credit and other banks
participating in the letter of credit operation only follow the provisions of the
letter of credit.
 Letter of credit is a "type of sale of documents". According to Article 5 of
UPC600: “Banks transact on the basis of documents and not with goods,
services or other performance to which the documents relate”.
 As such, the bank is obligated to pay the exporter when he/she presents documents
in accordance with the terms and conditions specified in the L/C. The bank is not
allowed to use the reason that the buyer has not received the goods to refuse to pay
if the documents presented by the seller are in accordance with the terms and
conditions specified in the L/C.\
 The figure below depicts the key processes in a typical documentary credit
transaction, as stated in Export Finance Navigator- a guide to financing for SME
exporters:

34
 Goods shipper
Importer/ Applicant Exporter/
(5)
Beneficiary
(1)
Contract of sale

(2) Payment
application (8) (8) Advise (4) (5) (6) Payment
Documents Application Documents
for L/C
Payment
(7)
Issuing Bank (7) Negotiating and
Documents Advising Bank
(3)
Advise

Note for diagram:

(1) The contract of sale, which the buyer and seller agree upon, specifies the terms and
conditions of the transaction. One of the requirements will be to issue a documentary credit.
(2) The importer requests that the bank establish the documentary credit and is required to
make the following checks:
 The bank has provided enough financing to cover it. The bank may demand
additional security in the form of surety if it determines that the financial risk is
excessive.
 The transaction has a Reserve Bank approval reference number or complies with the
pertinent exchange control decisions.

(3) The bank sends the documented credit to its foreign correspondent in accordance with
the applicant's instructions (the advising bank).
(4) The advising bank gives the beneficiary the documentary credit.
(5) The credit recipient ships the products and creates the paperwork. Payment under
documentary credits is demanded once the beneficiary provides the negotiating bank with
the documents that comply with the credit's terms and conditions.
(6) The negotiating bank pays the beneficiary after receiving a drawing that satisfies the
conditions of the documentary credit.

35
(7) The negotiating bank delivers the supporting documentation to the issuing bank and
requests payment. The issuing bank will verify that the documents are in compliance with
the documentary credit.
(8) After receiving and examining the documents, the buyer's issuing bank either pays if
there are no discrepancies or sends the paperwork to the buyer for inspection and approval
if there are.
Method 3: Cash against document method
 In Vietnam's import and export activities, in the past, only 3 methods were used:
documentary credits, collection vil Remittance, from the 1990s onwards, some
banks in our country began to apply CAD method. . This international payment
method is very beneficial for exporters, ensuring that they can pay quickly and
securely.
 CAD (cash against documents is a method of payment in which the importer
requests the bank to open a trust account for convenient payment for the exporter,
when the exporter submits all the required documents)
After completing the delivery obligation, the exporter will present a set of
documents to the consignor to receive payment
 After signing a foreign trade contract with the Exporter (in which the prescribed
payment method is CAD), the importer needs to go to his bank to request CAD
services.To do that, the importer and the bank will agree and sign a Memorandum of
Understanding (Memorandum), including the following contents:
 Means of payment: CAD.
 The margin amount (Pledged Amount) is worth 100% of the deal.
 Required Documents.
 Service fee (Commission).

Method 4: Method of collection

 Collection method is a payment method in which the party with the funds from the
payment instrument (the creditor) entrusts the bank to collect the money written on
that payment instrument from the debtor.

36
 Common international payment instruments include: bill of exchange; Promissory
Note, International check, Financial Invoice.
 There are two methods of collection, namely, by smooth collection and by collection
with documents:
Clean collection method
 Smooth collection is one of the international payment methods applied in the
contract of sale and purchase of goods abroad in which the exporter entrusts
the bank to collect the money stated on the payment instrument without any
conditions for transfer. delivery of documents.
 In the business process of this payment method, there is a feature related to
the interests of the exporter, which should be particularly noted:
 The exporter ships the goods and sends the documents directly to the
importer, usually before the time of payment. This can be a disadvantage for
the exporter, the importer has not yet paid for the goods but has held the
documents to receive the goods from the carrier but then intentionally
misappropriates capital, makes late payment, lacks, refuse payment. The bank
is just an intermediary for collection and may be rejected by the importer.
 Therefore, in international goods trading activities, it is necessary to limit the
application of this method. If this payment method is applied, it should only
be applied when both parties are reliable partners of each other, and in
international goods sale and purchase contracts, there should be strict
sanctions to ensure the importer pay. For example: Liability for damages due
to non-payment, late payment or incomplete payment; bear interest on late
payment, pay penalty for breach of payment obligation...

Documentary collection method

 Documented collection is one of the international payment methods applied in
foreign goods sale and purchase contracts in which the exporter entrusts the bank
to collect the money stated on the payment instrument with conditions will
deliver the documents if the importer pays, accepts payment or fulfills other
conditions specified.
 In the business process of this payment method, there is one point to note:
37
 The exporter does not deliver the documents directly to the importer. The
importer must pay the new bank to deliver the documents to bring the documents
to receive the goods. Thus, this method protects the interests of the exporter,
avoiding the situation of capital appropriation by the importer, late payment,
incomplete payment or refusal of payment.

Method 5: Documentary credits method

The main rights and obligations of this Bank are:
 Upon receiving the letter of credit notice from the opening bank, this bank will
transmit the entire contents of the letter of credit received to the exporter in writing.
 The advising bank is only responsible for transmitting the original text of the
telegram, but is not responsible for translating and interpreting technical words and
dialects. If the Bank fails to notify the received messages, the Bank shall be
responsible.
 Therefore, at the end of the letter, there is always the sentence: "Please, note that we
assume no responsibility for any error or omission in the transmission and
translation of the cable". That is: "We are not responsible for any errors or omissions
in the transmission and translation of this telegram".
 Upon receipt of a set of payment documents from the exporter, the Bank must
immediately and intact transfer such documents to the Bank opening the letter of
credit.
 The Bank shall not be liable for any consequences arising from delay or loss of
documents en route to the issuing Bank, provided that it proves that it has sent such
documents intact and on time via post office.

3.3.1 Process of international payment by Telegraphic Transfer (T/T) and

Telegraphic Transfer Reimbursement(TTR)
 Import and export activities are growing, leading to the development of payment
methods. From there, businesses also have more choices of payment methods. T/T
payment is one of the most popular transaction methods today.
 International money transfer is an essential service that banks are providing to
businesses dealing with foreign suppliers and partners. According to the normal

38
 international money transfer process, customers must prepare all paper documents
and bring them to the counters of banks to wait in line for approval with a minimum
time to complete the remittance transaction. 24 hours. If the application is
incomplete, the waiting time may be longer.
 In the trend of digitizing banking services, especially after the complicated
development of the Covid-19 epidemic, VPBank has just launched an online
international money transfer service (TTR online), optimizing the entire complicated
process. of the transaction, saving time and resources with a 100% free transfer fee
offer
 With online TTR service, SME customers can sit at any location with an internet-
connected device to actively create money transfer orders and "upload" the
necessary documents on VPBank's e-banking application. Businesses can monitor
the status of transaction processing in real-time and receive notification messages as
soon as the transaction is successful. As such, all the previously complicated steps of
handling an international money transfer transaction can now be reduced to just a
few online operations. The person executing the order can completely monitor the
progress of the transaction to proactively arrange the business plan.
 For banking transactions, in addition to responding quickly and conveniently to
customers, security is a top priority. With VPBank's online TTR, the security level
has been raised to a higher level thanks to the application of technology. If before,
the transaction authentication via smart OTP, now VPBank provides an additional
method of authentication with a digital signature (the signature that the business has
registered with the units that provide digital signature services). be licenced). This
security method is recognized by major financial institutions in the world as one of
the highest transaction security methods available today.
 The transition from over-the-counter transactions to fully online transactions
shortens processing resources for both customers and banks, while ensuring
complete transparency and confidentiality through transaction processing. believe.
In order to encourage businesses to gradually get used to this new form of money
transfer, VPBank offers a series of incentives such as: 100% free online
international money transfer fees and electricity fees, foreign currency transaction
39
 limit up to 3 million USD per month. transactions with other preferential programs
depending on the bank's regulations from time to time.
 The active development and application of new technologies into the customer
experience over the past time has helped VPBank become a pioneer in the market,
bringing great benefits to the SME business community. Products and services such
as: opening eKYC online accounts, online disbursement, online overdraft, online car
loans, online business support solutions Simplify - Ecompay, health measurement
tools for businesses.. VPBank has been supporting enterprises in production and
business and economic development and social security in the context of post-
pandemic recovery.

3.3.2 Details of the international payment by Telegraphic Transfer (T/T) and

Telegraphic Transfer Reimbursement(TTR)
Although they are two completely different payment methods in nature, the payment
process by TT and TTR basically has the following steps:

 Step 1: The exporting party will transfer the goods and the goods documents to the
importing party.
 Step 2: After the importer has finished checking the goods or the set of documents,
if it is in accordance with the requirements and agreement of the two parties, the
procedure for transferring money to the serving bank will be established.
 Step 3: The money transfer bank will set up a procedure to transfer money through
an agent bank or a branch – the paying bank.
 Step 4: The paying bank will pay the beneficiary.

Firgue 3.3.2: Flowchart of international payment by Telegraphic Transfer (T/T)

40
a, The relationship between TT and TTR
In L/C, there can also be two forms of payment: TT and TTR. That's when the credit
payment of L/C consolidated with TT occurs. In there:
 TT is used in L/C when:

 In the first case, the bank side opens the L/C document credit payment method to
settle for the exporter when the bank decides to call for money. However, the
condition here is that the set of documents must be properly verified. In this case,
the exporter will not choose to discount the set of documents.
 The second case is when the bank opens the L/C document credit payment
method to the discounting bank, but on condition that the bank must receive the
correct set of documents and the discounting bank also calls for money. At this
time, the exporter will choose to discount the set of documents.
 TT becomes TTR when:
 In certain cases TT is also understood as TTR and used in L/C. That is when the
bank side opens the L/C to pay the discounting bank, but only after receiving a

41
 request for money from the discounting bank. At this time, the set of documents
is not required to come first. Meanwhile, the exporter also chooses to discount
the set of documents without recourse.

b, The difference between TT and TTR

 TT is an independent wire transfer international payment method and is not related
in any way to other payment methods. With TT, the buyer will go to the bank to
make a money transfer order to the seller in two forms: prepaid money transfer and
immediate or postpaid money transfer.
 TTR is a form of payment in the L/C payment method. If the L/C allows TTR, the
import-export side only needs to provide a reasonable set of documents in
accordance with the law, notified by the bank, and it will be settled immediately.
The amount will be refunded within 36 hours, the documents will be paid later.
 If the L/C does not allow TTR, the exporting side needs to wait for the documents to
be sent to the issuing bank for verification and another 7 days to know if the
payment is correct or not.

c, Set of documents in international payment

 Payment before delivery: Having document for international payment:
 Contract of purchase and sale of goods)
 Commercial invoice
 Packing list
 Import license (if any)
 Commitment letter to supplement original documents
 Payment after delivery: Having document for international payment:
 Contract of purchase and sale of goods
 Commercial invoice
 Packing list
 Bill of lading
 Customs declaration
 Import license (if any)

42
Contract of purchase and sale of goods: This is the most important document in
international payment when the international sale and purchase of goods is signed by the
buyer and the seller after the completion of the exchange, negotiation and negotiation
process for a period of time. determined location. The subjects of the contract are usually
organizations (enterprises) with clear legal status. The contract is intended to clearly define
the responsibilities and obligations of the parties in a purchase and sale transaction.

43
Invoice: is an important document made by the seller after the two parties sign a contract of
sale, it determines the value of goods or services that the buyer must pay before or after
delivery or under specific conditions. invoiced to the seller.

Invoice classification
Proforma Invoice: A document that has the same form as an invoice, but is not used for
payment like a commercial invoice. Proforma invoices are often used as documents for
customs declaration, export permits, as a basis for declaring the value of goods to be
exhibited, or sent for sale, etc.
Provisional Invoice: An invoice used in the preliminary payment of goods in cases such as:
The price of goods is only a temporary price, temporarily collecting goods because the final
payment will be based on Depending on the weight determined at the unloading stage, the
goods are delivered many times but only partially paid for each time until the seller has
finished delivering the goods to liquidate.
Commercial Invoice: In cases where temporary invoices are used, when making the final
payment, the seller must issue an official invoice.

44
Detail invoice: An invoice used to describe the details of goods in the case of diverse items,
many types, etc. In a detailed invoice, the price is divided into very different items. detail
Packing list: This document in international payment can completely be made (on the same
file) with the invoice (invoice), because the information required on this document is the
information on the invoice.
Bill of lading: is a document made by a carrier to determine ownership of the goods during
transportation, in addition, it is also considered a contract of carriage to determine the rights
and obligations between the carrier. transfer and import-export people. Some specifics are
as follows:

Customs declaration:
After the goods arrive at the importer's port, the importer will carry out customs declaration
procedures and other procedures to receive the goods (please refer to the article on customs
declaration process).
A set of documents in international payment requires a declaration as a mandatory
condition, because it identifies the exact amount to be paid as well as proves that the
importer actually imported a shipment. Of course, from the perspective of state
management, the country needs to avoid transferring money abroad for other purposes….

45
46
 CHAPTER 4: EXPERIENCE AND RECOMMENDATIONS TO IMPROVE
ORGANIZATION AT OMRON COMPANY LIMITED
4.1 Contributions and experiences gained from the internship
During my internship at VPBank, I was able to perform international payment
services:Receive documents and/or requests for international payment services from
customers,Guide customers to fill in information or supplement records according to
professional requirements (if any),Checking and accounting for TTR payment documents,
international money transfer payments of customers at the branch,Checking and accounting
for L/C payments, L/C export, import/collection, etc. and other transactions related to
international payment,Prepare reports related to international payment operations at the
branch (as assigned),Reconcile with H.O International Payment Department on data related
to international payment and related Nostro transactions (if any) to ensure the accuracy of
payment transactions, Checking international payment transactions / checking anti-money
laundering compliance in accordance with the current IVB Regulations and procedures to
ensure customer service quality and limit risks in...
To be able to do a good job of a payer, in addition to professional knowledge, you also
need to have good general skills, or in other words, all the work related to each employee's
responsibilities. pay. You also need to know, from making all kinds of statements, books,
making tax reports, handling invoices and documents, customs documents... to preparing
financial statements, you must understand and do well. Therefore, businesses when
appointing the position of payers often choose those who have deep knowledge of
accounting and law, have undergone many payment operations, have accumulated a lot of
experience and have a general mind. , competently. handle real-life situations.
4.2 Practical experiences have been accumulated
Handling skills from customer information
 Listening skill: I must pay attention when consumers speak in order to gather
information from them. To avoid the possibility of misunderstandings during the
talk, do not interrupt them with your own subjective hint. Allow customers to
communicate their desires in their own way, and only inquire about items that
are still unclear after the client has given their full expression.
 Information analysis skills: This is a crucial stage in figuring out what clients
require. Customers that make multiple requests should have their transactions
divided, sorted, and grouped together. I will then need to review each request
once more.
47
  Skill feedback: You'll need this ability to build strong relationships with
customers.
 Communication skills by telephone: This skill is probably less noticed but it can
make impressive on the image of a bank. They can guess the culture of a bank
through a brief communication on the phone. A courtesy greeting, warm voice,
slowly, accurate information and affable banker's client will be appreciated.
Building relationships skill
 Based on customer psychology, combined with the information received from
the customer, information processing, to meet the needs or can refuse but always
satisfying customers with the information they get feedback, it is responsible of
employee.
 In addition, the appearance is also important when communicate directly to
customers. express to how his guidance is easy to understand and concise for the
visitors, the show's dedicated service providers.
Teamwork skills
 People will often spend a lot of time talking, talking through meetings, or
brainstorming sessions. Thereby helping each member of the team improve their
own communication skills. In addition, this is also an opportunity for people
working together to learn, share and help each other when facing difficulties in
the process of doing work.
Time management skills
 When working in groups, general meetings are inevitable, sometimes taking
place very often. Therefore, you need to organize your time so that you can
participate as much as possible. Besides, it is also necessary to manage the time
to complete the assigned work so as not to affect the overall work of the group.
-
4.3 Identify important problems and solutions in the coming time to improve
organizational performance (orientation for in-depth research for the graduation
thesis)
4.3.1Advantages
Over the years, VPBank has achieved remarkable achievements. Overcoming many
challenges in an imperfect business environment. VPBank is gradually contributing to
promoting socio-economic development and affirming its reputation in domestic and
international markets. Along with the strong change of the market economy and the trend
of international economic integration. VPBank realized that its operation revealed many
limitations and inadequacies. In order to improve the efficiency of its business operations,
VPBank has developed the following specific strategic orientations:

48
  Maintaining a reasonable capital mobilization policy, regulating the amount of
mobilized capital in accordance with usage needs, ensuring the best capital use
efficiency. Promote capital mobilization, lending and other healthy activities in
order to consolidate and increase market share, increase profits, maintain
stability of traditional deposit customers, focus on exploiting capital sources of
unions. social body.
 Continue to expand the retail credit market share to serve small and medium
enterprises and the consumption needs of the population, reduce the rate of
overdue debt to less than 5%.
 Along with the development of the network of activities, employee training is set
as a key task in the new period, namely:
 Organize professional training courses at the bank, invite reputable
lecturers to teach.
 Encourage employees with long-term commitment to work at VPBank to
attend advanced training courses. The Bank will create favorable
conditions for employees to go to school and provide financial support on
the condition that employees commit to return to the Bank after
completing their studies.
 Strengthen marketing activities to expand international payment and remittance
services, expand Western Union money transfer payment network, promote products
and services, and provide additional customer service facilities.
 In the past years, international payment activities in general and CBT payment in
particular at VPBank have made significant progress. But this activity still faces
many difficulties and limitations. Therefore, it is necessary to propose solutions and
development strategies to expand operations while ensuring compliance with the
practices and trends of international economic integration about the Bank to achieve
the common goals set forth by the Bank. suggest.
4.3.2 Disadvantages
- Risks in international payments.
- Facilities of the accounting department are not fully equipped.

49
4.3.3 Recommendations
Control foreign currency sources to meet payment needs
 Along with the increasing value of L/C in terms of quantity as well as the diversity in
trading relations with countries around the world, the purchase of foreign currency to
meet the payment needs of import customers is increasing. Foreign currency source is a
necessary factor to meet the payment needs of the Bank in international payment
activities. Therefore, the Bank needs to take appropriate measures to attract and
strengthen foreign currency trading activities, create abundant foreign currency sources,
avoid shortages and increase borrowing costs.
 In addition, VPBank also needs to have appropriate policies to attract foreign currency
sources. Foreign currency sources can be attracted from residents, businesses and credit
institutions at home and abroad. In recent years, the source of foreign currency from the
population accounts for a large proportion because the amount of remittances remitted
to the country is increasing sharply. Therefore, VPBank needs to develop foreign
currency exchange services, increase foreign currency deposit interest rates or have
promotional activities and free accompanying services for customers.
Linking and coordinating with the credit department to improve the quality of customer
appraisal
 The appraisal of business capacity of import-export customers is a rather complicated
job and requires a high level of analysis. Therefore, in order to improve the quality of
customer appraisal, the corporate customer department and the international payment
department need to coordinate and link with the credit department. With the
professional functions and operations of the credit department, customer appraisal will
become more accurate and effective, reducing risks due to low appraisal quality,
incompetent import-export businesses. to repay the bank when the bank has made the
payment to the exporter.
 When linking and coordinating with the credit department, the credit department will be
responsible for assessing the customer and thereby making an appropriate decision to
determine the credit limit for the customer opening the L/C. The credit department will
be responsible when there are risks, so it is necessary to arrange highly qualified staff in
charge of units that open foreign currency accounts for import and export activities
50
Developing and improving the quality of consulting and customer guidance services
 Documentary credit method is a secure and safe payment method, but it is quite
complicated, requiring the implementation of the order, the procedures must be
accurate and standardized. Therefore, even though they may have known about this
method, the importing enterprises could not help but be embarrassed when filling
out the application form for L/C opening, when completing the documentation
procedures… It is important that VPBank needs to train its team. qualified and
enthusiastic staff in their work to advise customers in a specific, detailed and
thoughtful way.
 When dealing with customers, VPBank, specifically the staff of the international
payment department - corporate customer service department - needs to fully consult
the necessary content to minimize errors and help customers goods perform the
procedure quickly. In addition to directly advising customers, VPBank can use a
number of other methods such as printing specific instructions to distribute to
customers, or can organize seminars, discuss and listen to customers' concerns.
problems encountered by customers, thereby giving the right advice.
 Improving the quality of customer consulting services will attract more and more
customers to VPBank along with increasing payments.
Structure the organizational structure and strengthen the training of staff with professional
qualifications and ethics to meet the requirements of international payments
 This is a common solution for a modern banking model to improve the quality of
operations in all areas of banking activities in general and in the field of L/C
payment in particular.
 In international payment activities, especially international payments by
documentary credit, the quality of staff is especially important. Documentary credit
is a method with a complicated payment process, many modern technologies, and
international transactions. Therefore, human training becomes an important solution
in documentary credit.
 In addition to professional training, it is necessary to ensure the training of payment
officers with good political and ethical qualities and a sense of responsibility in
order to improve work efficiency and reduce risks from from the payer's side.
51
  VPBank needs to have a timely incentive and reward policy, invest more in
professional references and experience from foreign banks on documentary credit
payment methods.

CONCLUSION

The import and export payment activities by documentary credit method have been
contributing to making foreign trade activities in Vietnam stronger and stronger. This
activity is not only increasing in turnover but also in both scale and quality.
Along with that development, the activities of domestic commercial banks are increasingly
expanding. However, this activity also faced many difficulties due to fierce competition
with joint venture banks and branches of foreign banks. VPBank is also among the
domestic commercial banks that are facing this situation. In order to maintain VPBank's
position and develop its reputation in the international payment market in general and
documentary credit payments in particular, in addition to improving payment quality,
VPBank should develop a strategy "long-term" to expand payments around the world,
especially those that have the potential to develop foreign trade with Vietnam in the future.
During the research and implementation process, I have tried to fully exploit the strengths
and limitations in the expansion of international payments in general and documentary
credit payments in particular at VPBank. However, due to limited knowledge and little

52
practical experience, the thesis cannot avoid shortcomings. I look forward to your
comments to improve my report.

I want to express my gratitude to the Head of Department and the teachers for their
instruction and for giving me the knowledge I need to put it into practice and avoid being
shocked when I graduate and find a job that is related to my academic field.
Sincerely thanks!

53
 REFERENCES

Vietnamese
1. International payment for foreign trade finance – Dr. Nguyen Van Tien – Statistical
Publishing House. [offline]
2. Textbook of Banking and Accountancy - Dr. Nguyen Vo Ngoan. [offline]
3. Report on business results for the year 2019-2021 [online]
Available at:
http://cmsv5.stoxplus.com/medialib/Crawler/2020/2020-04/2020-04-07/110028_-VPB--
BCTN--2019.pdf
https://www.vpbank.com.vn/quan-he-nha-dau-tu/bao-cao-thuong-nien

English
4. BIS (2007), Triennial Central Bank Survey of Foreign Exchange and Derivative Market
Activity in 2007, Bank of International Settlement, Basle.

5. Annual report of Sacombank in 2010, 2011, 2012

URL : http://www.sacombank.com.vn

6. Saurabh Kumar (2008). The Foreign Exchange Market, April 2010.

54
URL: http://www.scribd.com/doc/3928782/The-Foreign-Exchange-Market

7. Jeremy Evans. Foreign Currency Trading, forex on demand, April 2010.

8. URL : http://en.wikipedia.org/wiki/Letter_of_credit

9.URL:
http://www.eximguru.com/exim/guides/export-finance/ch_3_letter_of_credit_1c.aspx)
10.
Wiley, J. (2007). Accountant Handbook. Canada.
11. http://russellbedford.vn/index.php?option=com_content&view=article&id=40:-kim-
soat-cht-lng-kim-toan-ca-cac-cong-ty-kim-toan-p2&catid=10:assurance-a-audit-
&Itemid=18
12.Zhao, J. (2019). Accounting for the corporate cash increase. Peking University HSBC
Business School, Shenzhen, China
13.Goterziki, L. (2021). The productive accountant as (un-)wanted self: Realizing the
ambivalent role of productivity measures in accountants’ identity work. Department of
Accounting, Stockholm School of Economic.

55
 VIETNAM NATIONAL UNIVERSITY, HANOI SOCIALIST REPUBLIC OF VIETNAM
INTERNATIONAL SCHOOL Independence-Freedom-Happiness

WEEKLY PLAN OF THE GRADUATION INTERNSHIP

1. Internship Company/Institution: Vietnam Prosperity Joint Stock Commercial Bank

2. Supervisor: Mr Phan Bao Trung
3. Student’s full name: Do Quynh Anh
Student’s ID: 18071281 Major: Accounting, Analyzing & Auditing
Class: AC2018D

Week Tasks performed Results Remark

1 The first week, I learned about the I've got the basics needed for next
(From company's products and how each week's assignment.
20/07/2022 to product function helps the
26/07/2022) company's growth.
I was guided by the chief I have been quite proficient in
2
accountant about the data items, the getting acquainted with and
(From
accounting concepts used working with the accounting
27/07/2022 to
frequently at the company and the accounts at the company. This
02/08/2022)
common accounting accounts. helps me develop soft skills a lot.
3 This week, I improved my data This week I improved my MISA
(From processing and working with MISA working skills. I can type faster,
03/08/2022 to software. I can type faster, more more carefully, and more
09/08/2022) carefully, and more accurately. accurately.
4 This week I have to understand the After a week of data collection, I
(From company's financial statements and have grasped the form of business
10/08/2022 to how to close the books. data collection for the company
16/08/2022) for analysis and reporting.
This week I learned about the I was only dedicated by the
5
results of the analysis of the company's accountant to
(From
company's business performance at recording and analyzing the
17/08/2022 to
the end of the month. company's reports at the end of
23/08/2022)
the month.
Submit reports and give comments I was fortunate to join in the
6 to develop the strengths and company's meeting in the last
(From overcome the weaknesses of the quarter to offer personal solutions
24/08/2022 to company after the assessment. to help the company increase
30/08/2022) revenue next month as well as
next year.

4. Comments about student’s weekly plan of the graduation internship:

…………………………………………………………………………………………………..
Supervisor at Company/ Institution Student
(Signature and Full name) (Signature and Full name)

56
 VIETNAM NATIONAL UNIVERSITY, HANOI SOCIALIST REPUBLIC OF VIETNAM
INTERNATIONAL SCHOOL Independence-Freedom-Happiness

GRADUATION INTERNSHIP EVALUATION

(For Supervisor)

Supervisor’s full name: Phan Bao Trung

Position: ………………………………………..
Student’s to be supervised:
- Student’s full name: Do Quynh Anh
- Student’s ID: 18071281
- Major: Accounting, Analyzing & Auditing
- Class: AC2018D
Internship Company/Institution: Vietnam Prosperity Joint Stock Commercial Bank
Comments about student’s internship throughout supervision:
Evaluation
Factors
Good Average Bad

1. Knowledge

2. Skills

3. Awareness and Attitude

4. General evaluation for student’s

internship report
Other comments (If any):
……………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………
…………………………………………………………………………………

Ha Noi, 30th August 2022

Supervisor
(Signature and Full name)

57
 VIETNAM NATIONAL UNIVERSITY, HANOI SOCIALIST REPUBLIC OF VIETNAM
INTERNATIONAL SCHOOL Independence-Freedom-Happiness

GRADUATION INTERNSHIP EVALUATION

(For Supervisor)

Supervisor’s full name:

Position:
Student’s to be supervised:
- Student’s full name:
- Student’s ID:
- Major: Accounting, Analyzing & Auditing
- Class: AC2018B
Internship Company/Institution:
Comments about student’s internship throughout supervision:
Evaluation
Factors
Good Average Bad

1. Knowledge

2. Skills

3. Awareness and Attitude

4. General evaluation for student’s

internship report
Other comments (If any):
……………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………
…………………………………………………………………………………

Ha Noi, 30th August 2022

Supervisor
(Signature and Full name)

58