MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY BI VU THANH XUAN IDENTIFYING DIMENSIONS OF BIDV’S TRADE FINANCE SERVICES QUALITY IN HOCHIMINH CITY AREA MASTER THESIS Ho Chi M[.]
MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY BI VU THANH XUAN IDENTIFYING DIMENSIONS OF BIDV’S TRADE FINANCE SERVICES QUALITY IN HOCHIMINH CITY AREA MASTER THESIS Ho Chi Minh City, 2011 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY BI VU THANH XUAN IDENTIFYING DIMENSIONS OF BIDV’S TRADE FINANCE SERVICES QUALITY IN HOCHIMINH CITY AREA MAJOR: BANKING AND FINANCE MAJOR CODE: 60.31.12 MASTER THESIS INSTRUCTOR: DR TRUONG QUANG THONG Ho Chi Minh City, 2011 i ACKNOWLEDGEMENT I would like to express my heartfelt gratitude and deepest appreciation to my research supervisor, Dr Truong Quang Thong for his precious guidance, share of experience and highly valuable suggestions throughout the course of my research My special gratitude is extended to all instructors and staff at Postgraduate Faculty, University of Economics Ho Chi Minh City (UEH) for their support and the valuable knowledge during my study in UEH I also wish to thank to my colleagues in BIDV’s branches, who help me during the collection of data My thanks would also extend to the respondents, without them, my thesis could not have been done Specially, my thanks go to Ms Vu Thi Bich Ngoc for their valuable and enthusiastic support for this research study as well as for their comments of English from early draft of my thesis ii Abstract Maximizing customer satisfaction through service quality has been described as the ultimate weapon This study applied the SERVQUAL model of Parasuraman (1988) to test the dimensions to have relationship to BIDV’s trade finance service quality in Ho Chi Minh City area A study of 150 respondents from branches was conducted Multiple linear regression technique was used to test the hypotheses and research model The chosen model is modified from SERVQUAL model According to the results, empathy, responsibility, assurance, reliability were confirmed to have positive impact on service quality Some independent variables such as tangibility, price, portfolio have no enough evidence to conclude to have relationship to service quality Recommendations for related regression results are suggested to improve trade finance services quality and therefore BIDV can serve customers better Keywords: Customer satisfaction, Service quality, trade finance, SERVQUAL iii CONTENTS Acknowledgement i Abstract ii Contents iii List of tables vi List of Figures and Charts vii Chapter I: INTRODUCTION TO THE STUDY 1.1 Rationale of the study 1.2 Problem statement 1.3 Research objectives 1.4 Scope 1.5 Research methods 1.6 Structure of the study Chapter II: RELATED LITERATURE REVIEW 2.1 Understand service quality 2.1.1 Definition of service quality 2.1.2 The role of banking service quality 2.1.2.1 A significant source of competitive advantage and customer retention 2.1.2.2 Increase Bank brand 2.1.2.3 Profitability 2.2 Empirical evidence 2.2.1 Models 2.2.2 Summary and comparative evaluation of service quality models 13 2.2.3 Applications models in some countries 15 Chapter III: OVERVIEW TRADE FINANCE SERVICES IN VIETNAM 18 3.1 Trade finance in Vietnam 18 3.1.1 Exports 18 3.1.1.1 Some highlights in 2010 18 3.1.1.2 First haft of 2011 19 3.1.2 Imports 20 3.1.2.1 Some highlights in 2010 20 3.1.2.2 In the first half of 2011 21 3.1.3 Vietnam trade balance 22 3.2 Trade finance services in BIDV 23 Chapter IV: DATA ANALYSIS AND FINDINGS 28 4.1 Methodology 28 4.1.1 Data collection 28 4.1.2 Sample size 28 4.1.3 Questionnaire design 28 4.1.4 Variables 29 4.1.5 Measurement and scales 30 4.1.6 Tests Used for Data Analysis 30 4.2 Data analysis 30 4.2.1 Preliminary results 30 4.2.2 Hypotheses development 32 4.2.3 Regression results - test and analyze 32 4.2.3.1 Basic regression model 32 4.2.3.2 Optimal regression model 34 4.3 Findings 40 Chapter V: CONCLUSION AND RECOMMENDATIONS 41 5.1 Conclusions 41 5.2 Implications and recommendations 41 5.3 Assessment 42 5.3.1 Strength 42 5.3.2 Limitations 43 References 44 Appendix 48 Appendix I Database 49 Appendix II Questionnaire 55 Appendix III General statistic index 59 vi List of Tables Table 2.1: Definition of service quality .4 Table 2.2: Impact of quality improvement Table 2.3 Comparative evaluation of service quality models 13 Table 2.4 Comparing service quality dimensions with past research (by rank) .17 Table 3.1: Top 10 import products in Vietnam in 1st haft 2011 22 Table 4.1: General information of customers 30 Table 4.2: Gap score for seven dimensions .31 Table 4.3: Compare service quality dimensions with Parasuraman’s research (by rank) 40 Table 5.1 The hypotheses testing results 41 vii List of Figures and Charts Figure 2.1 Service quality model Figure 2.2 Gap analysis model 10 Figure 2.3 Attribute service quality model .12 Figure 2.4 Model of service quality, customer value and customer satisfaction 13 Figure 2.5 Model of service quality in internet banking 14 Chart 1: Major Export product of Vietnam in 2010 21 Chart 3.2 Top ten main exports of Vietnam in first quarter 2011 22 Chart 3.3: Vietnam import year 2010 23 Chart 3.4: Exports, imports and trade balance of Vietnam 25 From Jun 2010 to March 2011 Chart 3.5: Comparison export and import turnover of BIDV with some banks .29 CHAPTER I: INTRODUCTION TO THE STUDY 1.1 Rationale of the study: In a more globalized and integrated economy with increasing deregulation, competition in the banking industry has become significantly fiercer Banking industry in Vietnam has also grown rapidly especially in the growth of foreign banks This makes customers have many choices and compare the service quality among banks that they perceive Satisfying customers is one of the main objectives of every business Businesses recognize that keeping current customers is more profitable than having to win new ones to replace those lost Therefore, customer satisfaction and service quality are compelling to the attention of all banking institutions Service quality is the core problem for banks to differentiate, retain customers, make revenues and expand market share Besides, since Vietnam joints in WTO, bilateral agreements, multilateral conventions, trade barriers have been loosen This encourages the international trade to grow rapidly Vietnamese businesses have opportunities to trade with foreign partners is very high Therefore, banks in Vietnam has focused their interest in trade finance services to serve better the demand of customers This is the potential field business that banks should continue to explore Among many kinds of banking services, trade finance services bring a large source of fees for banks It is better when Vietnamese banks wants to increase the fees from services and decrease the fees and commissions from credit This is completely suitable to international trends Beside, developing trade finance services also increase the Vietnamese banks position in international market However, customers perception of service quality is a complex process Therefore, multiple dimensions of service quality have been suggested It is agreement that there is no standard model to adapt to banking service quality measurement in a specific country Because of the role of service quality and optimism of trade finance development, this research aims to identify dimensions of BIDV’s trade finance services quality in Ho Chi Minh City area 1.2 Problem statement: Service quality is an elusive concept It attracted the interest of academics and practitioners as well Service quality is a dynamic, multidimensional concept For instance, ‘… quality is what the customer says it is’ (Webster & Hung 1994) or ‘… a measure of how well the service level delivered matches the customer’s expectations’ (Lewis and Booms, 1983) Thereafter, some researchers suggest that service quality Page Model no.2: GAP model Model no.3: Attribute service Quality model Model no.4: Performance only model Model no.5: + Scale: Seven point Likert + Method of analysis: principal axis factor + Measurement through: elements + Measurement through: Physical facilities and processes, people’s behavior and conviviality, professional judgment + Scale: Seven point semantic differential + Method of analysis: principal axis factor + Measurement through: same as SERVQUAL but with performance only statements + Scale: Six The model does not explain the clear measurement procedure for the measurement of gaps at different levels It does not offer the measurement of service quality It does not offer a practical procedure capable of helping management to identify service quality problems or practical means of improving service quality Need to be generalized for all types of service settings Quantitative relationship between consumer satisfaction and service quality need to be established Model needs to 1–2–4– 6–7 -811 2–4–711 1–2–4– 5–6–7 - 11 customers’ Perceptions Directions for improvement in service quality Suitability for developing a link for measurement of customer satisfaction Diagnosing the needs for training and education of employees Flexible enough for modification as per the changes in the environment/conditions Suggests suitable measures for improvements of service quality Identify future needs (infrastructure, resources) 10 Accommodates use of IT in services 11 Capability of being used as a tool for benchmarking – – 4- Page 14 point be generalized -9 + Method of for different analysis: Path types of service analysis using settings LISREL Model variables + Measurement are measured through: through Through single relatively fewer item for items perceived price and eight items for perceptions Model no.6: + Method of Not much analysis: empirical work – - 10 Internet Qualitative carried out banking approach The model is model + Measurement based on the through: experience of Through service one web site setting, only, services needs to be encounter, validated with customer other expectation and experiences image Table 2.3 Comparative evaluation of service quality models (source: Nitin Seth and S.G Deshmukh, Prem Vrat,2005, p.943] Service Quality, Customer value and Customer Satisfaction model 2.2.3 Applications models in some countries As mentioned in table 2.3, model no.2 - GAP model and model no.4 – Performance only model satisfy more criteria than others In practice, SERVQUAL has considered as the most popular measurement of service quality, special in banking industry SERVQUAL model has been applied in many countries In retail banking - a case of Qatar, the authors applied the SERVQUAL model but modified to be suitable in this case They constructed four dimensions (reliability, competence, tangibility, and empathy) and designed 18 questions The result shows that the highest customers’ perceptions was demonstrated in the tangibility such as Page 15 infrastructure facilities of the bank, modern equipment, followed by the empathy area such as convenient time of transaction On the other hand, the lowest perceptions was in the competence, such as the method of imposing service charges followed by reliability, such as customers’ guidance In Malaysia, the authors also employed the SERVQUAL scale to measure the customer’s satisfaction and loyalty Regression analysis shows that tangibility had no significant impact on customer loyalty Reliability is found to have positive relationship with customer loyalty but not significant to customer satisfaction Findings also indicate that the relationship between responsiveness and customer loyalty was insignificant despite responsiveness found to have positive relationship with customer satisfaction Empathy, assurance had significant positive relationship with customer loyalty and customer satisfaction In India, there was a research study on service quality gap in private sector banks The study evaluates the customers’ perceptions based on service quality gap analysis Data was collected from 200 customers of Private Sector Banks using structured questionnaire The result showed that the dimensions of service quality such as empathy and accessibility had more gap because the customers’ expectations were higher than their perceived service The result also indicated that empathy-reliability-assurance positively influences the service quality In Canada, based on BSQ model, Bahia and Nantel (2000) conducted a research to develop a valid measurement of perceived service quality The questionnaire comprises 31 items classified across six dimensions as: effectiveness and assurance, access, price, tangibles, range of services offered and accuracy and reliability Nowadays, with the strong technological development, business practices has changed Electronic banking is the result of the pressure from the increasingly competitive business environment and customers’ demand Many researchers examined the service quality in an e-banking environment by providing a review of how traditional service quality perceptions have evolved A specific study was done in Australia with database of 2500 business The authors showed how the expectation rank of the five service quality dimensions is compared to that of Berry and Parasuraman’s (1991) original research The results pointed that reliability remains to be the top most important aspect of service quality for the customer Responsiveness has moved down to third place while assurance has moved up to second place in terms of importance rank Similarly, empathy has moved down a rank, while tangibles has moved up a rank Comparing the perceived performance ranking with the expectations ranking of this research, however, shows much larger discrepancies For the top two expectations, Page 16 only assurance is perceived to be doing well, while in the bottom two expectations, Tangibles seem to be overrated Service dimension quality Berry and Parasuraman (1991) Importance rank Reliability Responsiveness Assurance Empathy Tangibles The research Expectation rank Perception rank Table 2.4 Comparing service quality dimensions with past research (by rank) (cited in David H Wong, Nexhmi Rexha and Ian Phau, 2008, p 536) Chapter conclusion To sum up, this chapter gives the general knowledge of service quality It includes opinions, selected research models and practical researches in some countries It is very useful for shaping in my mind a model of Vietnamese banking service quality measurement: A case of BIDV trade finance services quality in Ho Chi Minh City area Page 17 CHAPTER III:OVERVIEW ON TRADE FINANCE IN VIETNAM This chapter provides the overview on trade finance in Vietnam from 2010 and specially in BIDV The analysis of BIDV’s strengths, weaknesses, opportunities, threats helps the readers understand the BIDV trade finance service position It is also one of reasons to measure the trade finance service quality and focus on enhancing the service quality 3.1 Trade finance in Vietnam After the reformation in 1986, international trade had become an increasingly important part of the Vietnamese economy Vietnam promotes trade with various policy instruments such as implementing trade liberalization, including tariff reductions and other measures designed to relax import and export restrictions Trade liberalization of Vietnam results from bilateral and multilateral commitments With the release of trade barriers, the demand of international trade and Viet Nam’s economy target, trade finance development has still been interested in 3.1.1 Export 3.1.1.1 Some highlights in 2010 Export turnover of 2010 is estimated reaching USD 71.6 billion, increasing by 25.5% against 2009 The domestic economic sector gains USD 32.8 billion, up by 22.7%; the FDI sector (including crud oil): USD 38.8 billion up by 27.8% If crude oil is excluded, the FDI sector’s export turnover is USD 33.9 billion up by 40.1% against 2009 There is also a change in the export turnover structure for some groups of commodities Textile garment is the leading export industry Followings are footwear, aquatic products and crude oil Page 18 Chart 1: Major Export product of Vietnam in 2010 (source: www.vietpartners.com/Statisticimex.htm) For exportation market, the United States is still Vietnam’s largest market with estimated export turnover of USD 12.8 billion, accounting for 17.9% of the total export turnover and up by 25.4% against the same period of 2009 Main exported items to this market are textile (USD 5.5 billion), wood and wood products (USD 1.3 billion), shoes and sandals (USD 1.3 billion), seafood Followed by EU with USD 10 billion, accounting for 13.9% and up by 15.9% with exported footwear turnover of USD billion; textile USD 1.64 billion; sea food USD billion; wood and wood products USD 594 million Exported goods to ASEAN gains USD 9.3 billion, accounting for 13% up by 19.6%, of which exported rice reached USD 1.5 billion; crude oil USD 1.4 billion; gasoline USD 653 million Exported goods to Japan reaches USD 6.9 billion, accounting for 9.6% and up by 23.6% against the same period last year; exported goods to China gains USD 6.3 billion, accounting for 8.8% and up by 48.6% 3.1.1.2 First haft of 2011 Customs statistic shows that in the 1st quarter of 2011, the total value of export is up by 36.4% and reaches US$ 19.64 billion The main exports outpacing the threshold of US $ billion are: textiles and garments, crude oil, foot wears, fishery products and coffee The total value of these main exports was approximately US $ billion, accounting for 40.6% of Vietnam total export value Page 19 Chart 3.2 Top ten main exports of Vietnam in first quarter 2011 (source: www customs.gov.vn) Total export revenue for the first six months of this year is estimated to reach US$41.5 billion, up 27.8 per cent against the same period last year Export average monthly turnover of over US$7 billion, which was higher than the average target of US$ 6.6 billion Exports to a number of large markets including the US, EU, Japan and China rose between 22-40 per cent For the whole 2011, Vietnam is forecasted to earn $74.8 billion from exporting goods, up 10% from a year earlier The group of processing industry would bring the highest export turnover of about $43.5 billion Seafood export still meets difficulties due to criteria, rules…However, it is expected to increase lightly and brings about $5.2 billion in 2011, up percent year-onyear Vietnam's traditional markets would be still maintained 3.1.2 Import 3.1.2.1 Some highlights in 2010 Import turnover of 2010 is estimated to reach USD 84 billion, up by 20.1% against 2009 The domestic economic sector gains USD 47.3 billion, up by 8.3%; and the FDI sector with USD 36.7 billion, up by 39.9% China is still the largest market for Vietnam’s importation with total turnover of USD 17.9 billion, up by 23.4% against the same period in 2009; ASEAN with USD 14.5 billion, up by 18%; Republic of Korea with USD 8.7 billion, up by 42.4%; Japan with USD 8.1 billion, up by 21.7%; EU with USD 5.5 billion, up by 9% Page 20 Chart 3.3: Vietnam import year 2010 (source: www.vietpartners.com/Statistic-imex.htm) 3.1.2.2 In the first half of 2011 The main import products in the first quarter of 2011 are: petroleum products, iron, steel, machine and equipment, plastics, textile, leather and foot wear material, and computer, electrical products, spare parts and components thereof Total import revenue for the first six months of this year are up 26.4 per cent compared with the same period last year, at $49 billion The country's import is expected at $93 billion in 2011, up 10.7 percent against 2010's Page 21 Top 10 imports First quarter of 2011(million USD) Compared with previous year (%) Machine and equipment 3,425 15 Petroleum products 2,296 61 Iron and steel 1,350 20 Fabrics 1,466 48 Computer, electrical products, spare parts and components thereof 1,311 32 Plastics 1,092 43 613 -1 Textile, leather, foot ware materials 638 25 Chemicals 593 32 Chemical products 531 27 Others 9,812 28 Total value 23,128 29 Animal fodders materials and animal fodders Table 3.1: Top 10 import products in Vietnam in 1st haft 2011( source: www customs.gov.vn) 3.1.3 Vietnam trade balance In the first half of this year, trade gap is estimated at around $7.5 billion to account for 18 percent of the total export turnover Page 22 Chart 3.4: Exports, imports and trade balance of Vietnam From Jun 2010 to March 2011 (source: www.customs.gov.vn) Vietnam is forecasted to incur $14.6 billion of trade deficit in 2011, accounting for 19.5% of the total exports 3.2 Trade finance service in BIDV Payments for exports and imports in 2009 were approximately USD 1,200 million and USD 5,200 million, respectively Accordingly, net fees from trade finance gained over VND 230 billion, growing by 51% over that in 2008 As 2010, export and import turnover got over USD1,184 million and USD 4,391 million respectively Export turnover was down 3% and import turnover was down 14%, compared with 2009’s Fees from trade finance gained over VND 226 billion, decreased by 2% in 2009 At the end of 2010, export - import financing volume got 26,900 billion VND and 13,905 billion VND, increased 5.9% and 52% respectively compared with 2009’s Export and import financing outstanding was 9,250 billion VND and 6,400 billion VND respectively In general, in 2010, import and export loans increase remarkably Export and import financing outstanding growth was 22 % and 98% respectively Determining the key export products, BIDV provides an export package to stimulate and share benefits with exporters BIDV identifies that, in short and long term, the bank has still focused on supporting the key industries to enhance trade finance Page 23 services fee and to contribute in economy development BIDV has financed continuously some industries as follows: Textile and garment industry: To the end of 2010, BIDV textile – garment export loans volume increases 60% with 2009, took 17% total volume Textile and garment export turnover increase continuously year on year ( about 20%) Vietnam is one of the top five export countries of this industry in the world with big partners: US, EU and Japan With the prediction of favorable conditions, the garment sector plans to earn more than $13 billion from exports in 2011 With the development policy of this industry and tariff barrier relaxation, Vietnam import and export prospect of textile garment industry continues to go up Rice industry: To the end of 2010, the number of customer set up the relationship to BIDV is 45, increase customers more than in 2009’s.While, up to date Vietnam has more than 300 companies to joint in rice export activity Clearly, this segment is still potential for BIDV to develop trade finance services The main market is Asia, especially in ASEAN Rice export is assessed to be optimist thanks to following reasons: + World rice demand: According to prediction, the demand of world rice is still high due to the disadvantageous climate in many countries + The capacity of Vietnam rice production: The export and store quantity is about 11.4 million tons, in which the balance can be exported is 5.8 – 6.3 million tons in 2011 + Expansion markets: Africa, Middle East, America are the new target markets Seafood industry: It is expected that seafood industry continues to have a remarkable number thanks to world demand and expansion market to new area To keep the strong brand position, to increase the trade finance service quality, BIDV continues to keep its promise as the slogan “share opportunities, share successes” BIDV takes opportunities, develops its strengths and gradually overcomes the weaknesses as well as threats Opportunities: + International Finance Corporation (IFC) has loaned a record US$505 million for the fiscal year 2011 Now, Vietnamese banks can help local companies increase foreign trade through its Global Trade Finance Program + The HSBC surveyed Trade Confidence Index Enterprises were asked about their six-month outlook on trade volume; buyer and supplier risks; the need for trade finance; access to trade finance; and the impact of foreign exchange and government trade regulations on their businesses The results were used to calculate an index ranging from to 200, where 200 represents the highest confidence level, represents the lowest Page 24 and 100, neutral The results shows a slight decrease in the confidence of traders in Vietnam: in 1H10 Vietnam scored 132 (the peak in five survey periods), gradually slipping 10 points to 122 in 2H10 and then six points to 116 in 1H11 However the survey also shows that businesses in Vietnam are still optimistic about trade outlook and expect their trade volume to grow This clearly reflects the caution of Vietnam traders regarding the challenges ahead, especially their rising concerns on fluctuating exchange rates, high interest rates and buyer/supplier risks Although there was a slight decrease in the trade confidence index, Vietnam traders remain positive, with the majority of respondents saying that they expect trade volume to increase (70 percent in 1H11) Tải FULL (68 trang): https://bit.ly/3QMd759 Strengths: Dự phòng: fb.com/TaiHo123doc.net + Place (network distribution): By 2010-end, BIDV has 120 branches and 483 transaction offices The Bank’s network has covered 63 provinces/ cities, spreading from crowded residential and urban areas to commercial and financial centers nationwide To traditional distribution, BIDV ranks 3rd position in banking system Besides, BIDV has expressed its international cooperation experiences by developing the correspondent banking relationship with over 1,600 financial institutions worldwide BIDV implements large projects with international financial institutions such as WB, ADB, JBIC, IMF, ECB The bank also expands its business into: Cambodia, Myanmar, Lao, Russia… + People (human resource): BIDV has placed adequate emphasis on the recruitment and placement of qualified and professional staff for all positions to ensure sufficient staff to meet the demands of business development and network expansion At the end of 2010, the total number of employees was more 16,000 The quality of staff has been improved educationally and professionally The graduated and post-graduated employees accounted for 85.3%, increased by 2.69% compared to those of 2009 Their professional and managerial competence have been improved to enable them to master modern banking technology and adapt to the competitive working environment + Products: BIDV initially focus on diversification of trade finance products such as: discount without recourse, Trade card discount, import L/C finance for agricultural products through GSM 102 – 103 program of U.S Department of Agriculture Weaknesses: + Poor services portfolio: Some trade finance products have not developed such as export import factoring + Place: Despite BIDV is ranked 3rd position in banking system, the modern distributions such as home banking, internet banking are still limited Page 25 + Policy: Foreign exchange rate is less competitive The financing procedure is complex These prevent trade finance operation development and make some customers leave BIDV Moreover, BIDV encounters some threats from other competitors: + Foreign banks: Increased presence of foreign banks with the priority of capital, technology, human resource, portfolio services… + Vietinbank: Vietinbank, Ho Chi Minh city branch gives a special package of 2.000 billion VND to finance export firms with the preferential interest With this program, exporters can borrow from the bank at the down interests in 2% per year for VND loans and 1.5% per year for USD loans + Vietcombank: The bank signs a memorandum with the largest Italia Bank Thanks to this, Vietcombank can support Vietnamese corporate customers who need to set up or expand their business in international markets + LienVietBank: The bank joints in Global trade finance Program with IFC Thanks to this program, LienVietBank has the opportunity to cooperate with more than 400 big banks in the area and on the world Tải FULL (68 trang): https://bit.ly/3QMd759 Dự phòng: fb.com/TaiHo123doc.net Chapter conclusion Export – Import picture is opened little by little with the optimism in 2011 The chart 3.5 indicate that BIDV should make efforts to increase trade finance services quality to enhance its position with other competitors BIDV will have opportunities to serve export – import better if BIDV has a specific strategy for improvement of trade finance services quality It is one of the efficient business fields because it brings the big fee income and contributes in the balance of the demand and supply of foreign exchange It is also quite suitable with the modern banking models in the area and on the world The point is that it increases the income from charges of services and gradually decreases the ratio of credit Page 26 35 30 Billion USD 25 20 2008 15 2009 2010 10 VCB ICB BIDV Techcom Eximbank Banks Chart 3.5: Comparison export and import turnover of BIDV with some banks (Abbreviation note: VCB: Vietcombank, ICB: Incombank, BIDV: Bank for investment and development of Vietnam, Techcom: Techcombank) Page 27 CHAPTER IV: DATA ANALYSIS AND FINDINGS The previous chapters provide the theoretical framework for the research Although SERVQUAL has the limitations, it has been applied in many researches especially in banking industry Therefore in this thesis, initially the author uses the SERVQUAL model with the available scale and questionnaire Then, as mentioned in the literature review, because the SERVQUAL has its flaw, it may be modified to be suitable As the result, I will consider to add two variables (price and portfolio) to reflect the practical case study – trade finance services quality in BIDV, HCMC Regression analysis based on only the customers’ perception scores 4.1 Methodolody 4.1.1 Data collection Data for this study was collected using a quantitative survey technique This study was conducted in two stages Stage one involved a pilot study which was conducted to refine the test instrument Pre-testing of the questionnaire shall be administered to a sample size of about respondents to ensure that there are no biases in the questions or the questions are constructed clearly and understandably for the respondents Stage two involved the distribution of 150 surveys to BIDV’s branches in Ho Chi Minh City 4.1.2 Sample size The population for this study is limited to corporate customers of BIDV who use the trade finance services of BIDV in Ho Chi Minh City Due to the limitations of time and budget, this study uses convenience sampling It is said that there is no consensus in the previous researches on how large the sample size should be to represent a population A formulas to calculate the sample size was provided However it is not easy to apply The sample size for this study was intended to be 150 respondents The researcher gathered 123 questionnaires, yielding a response rate of 82 per cent Finally, 100 questionnaires (81.3 per cent) were fully and correctly completed 4.1.3 Questionnaire design A questionnaire was used to collect the data The questionnaire is designed in part with the profile information of respondents In part 2, questionnaire based on 22- item survey instrument of SERVQUAL model for measuring service quality But it is short description and also translated into Vietnamese Two meaningful variables (price and service portfolio) was considered to add in this study The questionnaire focused not only on the components of service quality but also on the overall quality Respondents were Page 28 6674659 ...MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY BI VU THANH XUAN IDENTIFYING DIMENSIONS OF BIDV’S TRADE FINANCE SERVICES QUALITY IN HOCHIMINH CITY AREA... measurement: A case of BIDV trade finance services quality in Ho Chi Minh City area Page 17 CHAPTER III:OVERVIEW ON TRADE FINANCE IN VIETNAM This chapter provides the overview on trade finance in Vietnam... trade finance service quality and focus on enhancing the service quality 3.1 Trade finance in Vietnam After the reformation in 1986, international trade had become an increasingly important part of