SOLUTIONS TO IMPROVE THE INTERNATIONAL PAYMENT BY EXPORT LETTER OF CREDIT IN MEKONG HOUSING BANK (MHB)CHO LON BRANCH

VIETNAM GENERAL CONFIDERATION OF LABOUR TON DUC THANG UNIVERSITY DEPARTMENT OF BUSINESS ADMINISTRATION SOLUTIONS TO IMPROVE THE INTERNATIONAL PAYMENT BY EXPORT LETTER OF CREDIT IN MEKONG HOUSING BANK (MHB) - CHO LON BRANCH Thesis submitted as a requirement for the degree Bachelor of Business Administration Supervisor:NGUYỂN PHƯỚC KINH KHA, MSc Student: NGUYỄN TẤN KHANG Student ID:70900089 Intake: 13 HO CHI MINH CITY, 2013 ACKNOWLEDGEMENT Firstly, I would like to express my deepest appreciation to board of rectors as well as Head of Business Administration faculty of Ton Duc Thang University, for all their help for me to complete this thesis Dean of faculty provided me favorable conditions and arranged supervisor for me in order to complete it in the best way possible Secondly, I would like to give my sincere thanks to my supervisor, MSc Nguyen PhuocKinhKha, for all his help and guidance has given me during last semester He also contributed helpful feedback and help me overcome shortcomings to complete the thesis Thirdly, I would also like to acknowledge with much appreciation the crucial role of the staff of International Payment Department and Sales Department of Mekong Housing Bank – Cho Lon Branch, who gave permission to reach necessary materials and real experience to complete this study Finally, despite I am given the valuable support from my instructor and the best effort of myself, but there are still unavoidable shortcomings Therefore, I am looking forward to hearing from your comments to improve the thesis in the best way Sincerely, PLEDGE THIS STUDY IS COMPLETED AT TON DUC THANG UNIVERSITY I undertake that this study is my own research under the scientific guidance of Mr Nguyen PhuocKinhKha, MSc The contents and results of this study are faithful and not published in any form before The data in the tables which used for analyses, comments, evaluations are collected from various sources by author have stated clearly in the references In addition, the thesis also uses some comments, evaluations as well as data from other authors, agencies and organizations These information are quoted and annotated the sources If there are any faud, I will bear full responsibility for the thesis contents Ton Duc ThangUniveristyis not involved to any violation of copyright caused by me during the implementation process (if any) Ho Chi Minh City, July, 12nd, 2013 Author NGUYEN TAN KHANG JURY’S COMMENTS Student: Nguyễn Tấn Khang Student ID: 70900089 Class: 09070101 Course: 2009 - 2013 ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… SUMMARY Foreignbecome more and more important of modern ecomomy Expandingforeigntradeis not only profit seeking of firms but alsoaccelerate the economicgrowth of country Since the implementation of policy innovation, import and export companies in Vietnam have expanded business with lot of countries in the world Expanding business internationallythatwe have to comply the international regulationsincluding international paymentregulations Although MHB Cho Lonbranchis a youngbranch of theyoungbank, it hashad certain developmentrecentyears, especially in international payment This studyprovideus information about thedevelopment of MHB Cho Lonbranch as well as the result in international payment services recentyears International paymentdepartment has provedits important role in the business activites of the branch The mostpopularpaymentmethodwithhighest value in thisdepartmentis export L/C, thismethodincreasesyears by yearsboth in value and revenue However, there are obstaclesstillexist and consistrisk for the international payment, especially in export L/C By theoryframework in documentarycredit, evalulationcriteria in bothquantitive and qualitive, author has basis to evaluate the result of export L/C service According to the current situation and business report in the past, somedisadvantages come fromlack of foreigncurrencyreservation, lack of marketing in international settlements, dependent in somespecific large customers, lack of knowledgefrom the customers There are alsorisks come from the exchange rate, fraudulentpartnersoverseas Based on disadvantages and predictedrisk, thesisgivessome solutions to handle issues and minimize the risks The integratedstrategiesfrom the strengths, weaknesses, oppotunities and threatsalsohelpful in providing solutions to improve the international payment in MHB Cho Lon One of the core solutions to improvethe international payment in thisbranchisimproving the financialcapability in foreigncurrency, thisis the prerequisite conditions of the improvement in international payment Moreover, some solutions in expand the customertarget, increase the amount of exportcustomer, improve the ability of staff of departmentshouldbefocused to improve the effective of the export L/C in particular and international payment in general of MHB Cho Lon CONTENTS Page INTRODUCTION CHAPTERI: THEORETICAL FRAMEWORK 1.1 Overview of International Payment 1.1.1 Definition of International Payment 1.1.2 Characteristics of International Payment 1.1.3 Roles of International Payment 1.1.4 International Payment Conditions 1.1.5 International Payment Methods 1.2 Overview of Documentary Credit and Export L/C 1.2.1 Definition of Documentary Credit 1.2.2 Involved parties in Documentary Credit 1.2.3 Letter of Credit (L/C) 1.2.4 Role of bank in Letter of Credit 15 1.2.5 Export Letter of Credit 16 1.3 Evaluation methods of international payment in commercial banks 17 1.3.1 Quatitative criteria 17 1.3.2 Qualitative criteria 18 SUMMARY OF CHAPTER I 21 CHAPTERII: OVERVIEW OF MEKONG HOUSING BANK (MHB) 22 2.1 Introduction of Mekong Housing Bank 22 2.1.1 History and development 22 2.1.2 Operation 22 2.1.3 Achievement 24 2.1.4 Toward the future 25 2.2 Overview of Mekong Housing Bank – Cho Lon Branch 25 2.2.1 History and development 25 2.2.2 Organizational structure and human resources 26 2.2.3 Roles of departments 27 2.2.4 Business report – MHB Cho Lon Branch 29 SUMMARY OF CHAPTER II 33 CHAPTER III: THE CURRENT SITUATION OF EXPORT L/C SERVICE IN MHB – CHO LON BRANCH 34 3.1 Export L/C process in MHB – Cho Lon Branch 34 3.1.1 L/C Advising process 34 3.1.2 L/C Payment process 44 3.2 Analysis of current situation of export L/C in MHB – Cho Lon 55 3.3 Evaluation of export L/C service in MHB – Cho Lon Branch 63 3.3.1 Achievement 63 3.3.2 Branch’s advantages 63 3.3.3 Branch’s disadvantages 64 3.3.4 Limited of MHB Cho Lon branch 65 3.4 Current situation of export in Vietnam 67 SUMMARY OF CHAPTER III 71 CHAPTER IV:SOLUTIONS TO IMPROVE THE INTERNATIONAL PAYMENT BY EXPORT L/C SERVICE IN MHB – CHO LON BRANCH 72 4.1 Development orientation of international payment by Letter of Credit in MHB – Cho Lon 72 4.2 Risk management in export L/C service 74 4.2.1 Political and social risk 73 4.2.2 Exchange rate risk 73 4.2.3 Risk from the limitation of exporter’s knowledge 73 4.2.4 Importer lose ability to pay 74 4.2.5 Operational risk from bank 75 4.3 Recommendation for MHB – Cho Lon Branch 76 4.3.1 SWOT and integration strategies 76 4.3.2 Improving financial capability – strengthen foreign currencies 78 4.3.3 Providing other package services 78 4.3.4 Staff development and training policy 79 4.3.5 Customer attraction strategies 79 4.3.6 Customer abilities 80 4.3.7 Determine the customer target 81 4.4 Recommendation for the state management 82 SUMMARY OF CHAPTER IV 83 CONCLUSION 84 REFERENCES 86 LIST OF ABBREVIATIONS D/A Document Acceptance D/P Documents against Payment FX Foreign Exchange HCMC Ho Chi Minh City MHB Mekong Housing Bank L/C Letter of Credit SMEs Small and Medium Enterprises SWIFT Society for Worldwide Interbank and Financial Telecomunication T/T Telegraphic Transfer 74 some enterprises not have enough information about overseas partners that contain lot of risk if there are less prestigious partners Mistakes in completing the documents are also popular problems of lack experience firms These issues are impact to the export procedures of firms and of course badly impact to the business of the bank  Solutions International payment department should allocate a specialist working as a consultant in foreign trade in order to consult for customer when doing business overseas Consultant will help exporter in overseas partner examination, complete documents, choose the most suitable payment method based on the price, secure, reliable The helpful advises from the bank will improve the prestige to customer, become a “good friend” of export/import enterprises as well as reduce risks can be occurred while doing business with less experience customers Besides the limitation of exporter, the reliability of Vietnamese exporter should also be inspected Lot of exporters and goods of Vietnam are banned to export in high expectation market such as USA, EU, Japan because of commercial tricks MHB should examine the customer profile and prohibit trick activities from exporter 4.2.4 Risks come from unwilling partners MHB has responsibility for the veracity and validity of the L/C (including signature verification, testkey, telex form ) before announcing to the exporter Risk happens to MHB when it receives L/C fraud (or amendment fraud) without any notices According to the international regulations, advising bank has fully responsibility with any loss in the future 75 In the customer view, if there are any unpredictable problems occur with the importer even bankrupt, overseas issuing bank will get in stuck for making the payment on time, as the chain reaction, MHB Cho Lon also get in trouble Anyway, issuing bank has to make the payment for MHB, however, it maybe late If MHB Cho Lon discounted the documents for exporter, their capital would had been hold and impact to the business  Solutions To prevent itself from the fraudulent risks, MHB Cho Lon should pay more attention in the examination not only in overseas importer but also in issuing bank It may classify the issuing bank into reputation levels for examination in the future If there are any fraudulent signals from the L/C or related documents, MHB must inform immediately for customer and issuing bank to handle problems In L/C, issuing bank has responsibility to handle payment for exporter whether importer has ability to pay or not However, no one wants to get in stuck with the bad debt or delay in payment, so the exporter should consider when doing business with overseas partner Risks which come from reliable partners are much lower than the strangers In addition, branch should help customers in examine the partners MHB should widenthe correspondent banks network overseas, especially in high risk markets such as China, Middle East, Africa Thanks to the wide network, MHB can reduce the transaction cost andcollect a huge database of foreign partners to prevent from risk 4.2.5 Operational risk from bank International payment specialists are always try their best in operation However, the workload is quite heavy and the pressure is higher than before, it maybe contains mistakes in examine the document or L/C Moreover, there are 76 many reference materials, regulations with many different types and version required the specialists have to insight If the specialists are not master these regulations, it would cause of risks  Solutions MHB Cho Lon should concentrate on labor force development, it needs to consider the recruitment, assure the quality of new staff based on the openess and fairness in recruitment The more professional and potential staff the more effective in development Bank should focus on training policy to enhance the professional for current staff Branch should also organize seminar, training courses and motivate staff in self learning to improve qualifications Preferential policies and appropriate wage are also appreciated With these improvements, international payment department are not only avoid from operational risk but also improve the international payment service in MHB Cho Lon 4.3 Recommendation for MHB – Cho Lon Branch 4.3.1 SWOT and integration strategies Table 4: SWOT and the recommended integration strategies for MHB Cho Lon SWOT Strengths (S) Weaknesses (W) S1 – Has wide relationship W1 – Simple services, less with more than 300 diverse services correspondent banks overseas W2 – Low workforce in S2 – State in one of business international settlement center of HCM (Cho Lon).Has W3– Do no active in looking for wide (9) sub-branches network new customer S3 – Verified prestige brand by W4 – Low reputation and low 77 Vietnam State international and market share in export/import financial payment institutions S4 – Has quality employees S1O1O2 Opportunities (O) – O1 – Vietnam has deeply relationship integrated with the world correspondent Expand with the W1O2 – Diversify the other international payment services to banks, satisfy the customers need especially in countries which W2O4 – Strengthen the O2 – Government has Vietnamese customers have workforce by recruiting more young quality employees and policy to improve the business export/import activities of S2S3O3 – Get the support and training them economic incentives from other financial W3W4O4– Recruit and set up staff to working as the marketing O3 – Be able to get the institutes support from other S2S3O2 – Enhance branding to and sales to promote and looking attract more export/import for new customers financial institutes firms O4 – Supply of human companies resource in banking S2T2 – Push for mobilization W2T1T2 Threats (T) T1 – competitiveness – Cooperate with the sub-branch related departments to build Fierce through from network especially in foreign policies in interest rate and currency other banks promotion to attract customers, – Experienced focus on foreign currency T2 – Difficult in foreign S4T3 employees should examine W4T3T5 – Diversify customer currency mobilization and partners groups and increase the number T3 – Risk from fraudulent documents carefully to prevent from risks of customers to minimize the parties T4 – Effect economic crisis of risk from large customers (By the S4T5 – International payment specialists should guide marketing and sales) T5 – Customers are lack of experience and knowledge in procedure export/import customers about necessary W5T4 – Economic crisis has knowledge and experience in shortened the gap between MHB foreign trade and other concentrate competences competitors on by core 78 4.3.2 Improving financial capability – strengthen foreign currencies supply Foreign currencies are the most important requirement of international payment of any commercial bank MHB Cho Lon often gets in troubles with foreign currencies such as the lack of foreign currencies for customer, high price of foreign currencies MHB Cho Lon branch should ensure the plentiful source of foreign currencies to meet the demand of payment Lot of enterprises buy foreign currency instead of loan it from the bank because they think it can reduce the risk to currency fluctuation in the future That causes the deficit in foreign currency resource of branch Branch should decrease the interest rate in foreign currency to a competitive rate to attract customer make the credit from MHB It helps the bank reduce the deficit in foreign currency and even get more from the interest Besides the reduction of credit interest rate, MHB Cho Lon bank should increase the deposit rate in foreign currency to get the mobilization from customers Branch should continuously look for alternative foreign currency resources to get the price as low as possible It’s better if the branch has good relationship with other branches or banks which have plentiful resources Financial institutes which have surplus foreign currency position and far from deficit position are potential targets for MHB Cho Lon to get the currency 4.3.3 Providing other package services Branch should apply new services such as export-import package that mean the bank cooperate with the forwarders, insurance agencies to create a full package of service This service will reduce the cost of customers and make the export-import procedure more convenience It certainly improves the business of both bank and enterprise 79 Besides improving the export L/C service, MHB Cho Lon should also combine it with other method to bring more addition value for customers as well as encourage the development international settlements Some related methods such as foreign currency (include swap, future contract ), discount export L/C are popular methods combined with the export L/C Export L/C has leaded the value of international payment method recent years In opposite, the import L/C has decreased years by years, however, this is the high profit service that most of commercial banks want to improve MHB Cho Lon should pay attention in the import L/C as prevent from depend on export L/C 4.3.4 Staff development and training policy In order to remain the international payment process smoothly, efficiently and to avoid risks, international payment specialists must be able to handle processes masterly, correctly and compliance with international practices Specialist is not only has knowledge in international payment procedure but also has general knowledge about foreign trade and market which they are in charge The workload is heavier days by days, however there are only employees in international department, so the branch should consider to recruit more employees to share the pressure Branch should set up training courses periodically to update new international regulations as well as improve the knowledge and skill of employees Hold seminar and discussion panel for sharing experience among employees from sub-branches and other branches 4.3.5 Customer attraction strategies MHB Cho Lon should have the appropriate incentives for longtime and large customers, branch should satisfy their need flexibly to maintain the close relationship 80 Depending on some large customers contains lot of risks, branch should expand the customers network International payment department should be more proactive in seeking new customers and also enlist the support from other department for abundant customer resources Branch needs to diversify the customers in all of economic sectors then classify and evaluate for appropriate incentives to encourage the business both branch and customers In case of customers who have less experience in international payment, international payment specialist should guide and give the advice in most suitable method Specialists with experience should help customers to get favorable conditions and minimize the risk in foreign trade For personal customers, bank should flexible in measure the mortgage even mortgagee by the shipments With customers who have the good credit background, branch should reduce the deposit rate to facilitate for customers in foreign trade MHB should not only wait for L/C from issuing bank, it also needs to interact with potential exporter and find out their expectation in foreign trade By understand the customer need, MHB Cho Lon can offer suitable service for them, it can suggest specific prestige banks for customer and require the importer to open L/C from these banks In additions, economic crisis has shortened the gap between commercial banks, MHB as well as Cho Lon branch should take this opportunity to position as one of the most the secure, prestige and stable banks in international payment 4.3.6 Customer abilities One of difficulties of the international payment in MHB Cho Lon is the limited in knowledge in foreign trade as well as international payment of export/import enterprises in Vietnam, so the support from branch is very important 81 MHB Cho Lon should issue guideline documents to give customers the essential overview about foreign trade and international payment procedure MHB Cho Lon should provide information about regulations related to foreign trade and international payment via mail or e-mail, it will remind customers about the service and the branch For new customers who have lack of experience, besides providing the guideline, Cho Lon branch should help customers in completing the documents before forwarding overseas It can help customers can avoid from rejection by overseas partners 4.3.7 Determine the customer target According to the report of Vietnam Customs, the export situation has improved a lot in comparison with 2011 That is the positive dynamic to promote the exporting growth in the future The export proportion of FDI enterprises quite impressive with 63%, however, most of MHB Cho Lon customers are SMEs and State enterprises To improve the export L/C, MHB Cho Lon should determine enterprises which have potential in exporting, especially FDI enterprises, these firms usually the business overseas and have a strong financial resource Furthermore, it is about 75% amount of value at MHB Cho Lon comes from Viet Tien Corporation – one of the biggest Garment and textile Corporation in Vietnam However, there are product groups with high potential which MHB maybe forget such as cellphone and accessories, crude oil, footwear, fishery Especially, cellphone and accessories export volume has increased impressively, MHB Cho Lon should focus on this field for more benefit 82 Therefore, focus on FDI enterprises and/or enterprises which have new potential products will help the bank improve it position and income in comparison with other competitors 4.4 Recommendation for the state management The interbank market is the top-level foreign exchange market where banks exchange different currencies The banks can either deal with one another directly, or through electronic brokering platforms In Vietnam, the interbank market plays a important roles in handling exchange between commercial bank and State Bank, among commercial banks In order to expand the relationship with overseas partners and improve the export/import activities of Vietnam enterprises, State needs to develop the interbank foreign trade market by following recommendation: Firstly, State Bank must monitor transactions in interbank foreign trade market and force commercial bank to handle the foreign trade balance within each day by transactions in interbank market Secondly, expand the limited of participants in the market beside the State Bank and commercial banks Other financial institutes which have international payment or brokers are also able to take part in this market The more participants take part in, the better price we get Thirdly, diversify the foreign currencies and type of transactions such as: spots, futures, options State bank also need monitor the exchange rate flexibly under the market mechanism Finally, State bank should build the appropriate reserve structure in foreign currencies to get a positive position It has ability to modify the foreign currency if there are any issues in the exchange rate and speculations in the market 83 SUMMARY OF CHAPTER IV Based on the theory framework and current situation of international payment in MHB Cho Lon branch recent years, there are still problems that we need to handle as well as improving the international payment by export L/C Chapter IV shows the orientation of international payment activities in MHB Cho Lon in the future then giving suggestions to minimize the risks and weaknesses of international payment in MHB Cho Lon To strengthen the international payment, branch should improve the financial capability in foreign currency, this is the prerequisite of the improvement Beside the financial capability, MHB branch must pay attention in customer development to attract more export enterprises use the service Branch should not depend on some biggest enterprises and forget less potential enterprises Service diversification to adapt different classes of customer is also a good strategy to maximize the profit Last but not least, risk management is stage that the bank has to consider during the time, especially in documentary credit Doing business with overseas partners always consist risks, international payment department should prevent from these risks by focus on examination and always update regulations as well as international practice 84 CONCLUSION Vietnam has joined the market economy and integrated with the foreign trade economy since the late of ‘80s Foreign trade and banking are more active and develop rapidly with the attendance of foreign investors and foreign bank International payment activities are not only increase in value but also in quantity and quality Along with this development trend, services of commercial banks in Vietnam are expanded However, these activities are facing with difficulties due to the stiff competition from joint-venture banks or branches of foreign banks Mekong Housing Bank – Cho Lon branch is one of domestic bank which faces with this problem To remain the viability and improve the prestige of the bank, branch should define the target and orientation to expand the business in general and the international payment in particular  Limitation of the study Although receive the enthusiastic support from staff in international payment department and I tried my best in this study, it still exists issues in this study Due to the policies of the branch, I cannot access period report of other departments, so there are lacked of comparison among departments with the international payment department I cannot access the cost in international payment activities to define the profit in international payment Because of the limitation of the time, I can only research the export L/C aspect instead of whole international payment of the branch Solutions in this study are still subjective and lack of measurable evaluation It maybe still consist mistakes, I am looking forward to listening feedback from the jury and supervisor 85 I hope the study and solutions above will be helpful to the activities of international payment activities in MHB Cho Lon, contributing to the expansion of export L/C service in this department as well as the business of the branch in general 86 REFERENCES Tran Hoang Ngan (2007), International payment, Statistics Publisher, Ho Chi Minh City Nguyen Van Tien (2008), International payment by letter of credit Handbook, Statistics Publisher, Hanoi Dinh Xuan Trinh (2006), International payment, Foreign Trade University, Hanoi Muthumani S (2010), “Kind of Letter of Credit”, International Trade 2010, Sathyabama University, India, pp 85 – 86 Le Phi Hai (2011), Solutions to reduce the risks in import L/C in EximbankTransaction Center I, Thesis,Ho Chi Minh University of Technology, Vietnam Pham Thi Tam Trang (2008), Improving the international payment by letter of credit in Bank for Investment and Development of Vietnam (BIDV) – Quang Trung branch, Thesis, Vietnam Mai Thi Hai Yen (2009), International payment service by opening Letter of Credit at Vietnam Eximbank Hanoi Branch, Thesis, Foreign Trade University, Vietnam Mekong Housing Bank (2013), MHB annual report, Ho Chi Minh City Mekong Housing Bank (2013),Annual report 2012 anddevelopment orientation 2013 MHB – Cho Lon branch, Ho Chi Minh City 10 Mekong Housing Bank (2013), International Payment report 2012 in MHB Cho Lon branch, Ho Chi Minh City 11 Mekong Housing Bank (2012), International Payment report 2011 in MHB Cho Lon branch,Ho Chi Minh City 12 Mekong Housing Bank (2011), International Payment report 2010 in MHB Cho Lon branch, Ho Chi Minh City 13 Mekong Housing Bank introduction,MHB Official Website From:http://mhb.com.vn/en/?p=gioithieu.asp 87 14 MHB International Payment Process, internal materials 15 Export situation of Vietnam in Decemer and 12 months of 2012, Vietnam Customs, Retrieved 1, 2013 From: http://www.customs.gov.vn/lists/tinhoatdong/Print.aspx?ID=19213 16 International Payment in Vn, StudyMode.com, Retrieved 11, 2012.From http://www.studymode.com/essays/International-Payment-In-Vn1220505.html 17 The Letter of Credit Process,Ec-finance.com, from http://www.ec- finance.com/site/about_lcs/letter_of_credit_process.htm 18 Method of Payment,Knowledge of methods and costs of payment, Retrieved 04, 2001, from:http://en.wikiversity.org/wiki/Methods_of_Payment 19 What is a credit on security? Documentary Credit,Bansard International, from: http://www.bansard.com/en/handy-tool/documentary-credits 20 What is a Letter of Credit?, Creditguru.com, from:http://www.creditguru.com/guestarticleLC.htm 21 Parties to Letter of Credit,Letterofcredit.biz, from: http://www.letterofcredit.biz/Parties_to_Letters_of_Credit.html 22 Letter of Credit,Investopedia, from: http://www.investopedia.com/terms/l/letterofcredit.asp 23 International payment related information: - Minh Duc, Forex Market: how to solve current problem?,Retrieved 08, 2009, Vneconomy, from(http://vneconomy.vn/20090801024832794P0C6/thitruong-ngoai-hoi-lam-sao-de-thao-nut-that.htm) - Hong Suong, Banks break the USD interest rate fence, Retrieved 07, 2012, Sai Gon Tiep Thi, Newspaper - Thanh Hien, Overview about the foreign trade situation in 2012, Retrieved 12, 2012, Cafef.vn and General Statistics Office (GSO) ... international payment is usually not cash, it is available under payment form such as remittance, Telegraphic Transfer remittance (T/T), promissory note, cheque - Payments between countries are implemented... that parties choose the most suitable method 1.1.5 International Payment Methods 1.1.5.1 Remittance Remittance is the payment method which customers (buyer, importer ) request the bank to transfer... Document against Payment - D/A: Document against Acceptance 1.1.5.4 Letter of Credit (L/C) Letter of Credit (Documentary Credit) is the most important payment method and the most popular method in