The development of international payment at vietnam joint stock commercial bank for industry and trade thanh xuan branch

NATIONAL ECONMICS UNIVERSITY EXCELLENT EDUCATION PROGRAM BACHELOR’S THESIS Major: Banking Luận văn thạc sĩ Kinh tế Topic: The development of international payment at Vietnam Joint Stock Commercial Bank For Industry And Trade Thanh Xuan branch Student : Nguyễn Thị Minh Lê Major : Banking & Finance Class : Banking 58 Student’s ID : 11162720 Supervisor : Dr Phung Thanh Quang Hanoi, 2020 STATUTORY DECLARATION I herewith declare that I have authored the present thesis independently making use only of the specified literature Sentences or parts of sentences quoted literally are marked as quotations; identification of other references with regard to the statement and scope of the work is quoted The thesis in this form or in any other form has not been submitted to an examination body and has not been published Hanoi, … /…… / 2020 Author’s signature NGUYEN THI MINH LE Luận văn thạc sĩ Kinh tế ACKNOWLEDGMENTS First and foremost, I would like to express profound gratitude to my research supervisor, Dr Phung Thanh Quang for his invaluable support, encouragement, supervision and useful suggestions throughout this project work Without his assistance and dedicated involvement in every step throughout the process, this paper would have never been accomplished I would like to thank you very much for your support and understanding over these past two months I am also grateful for my instructor, Miss Cao Phuong Nhung and the Large corporate customer Department for providing me an opportunity to my internship and project work in Vietinbank Thanh Xuan Branch Last but not least, I am thankful and indebted to all those who helped me directly or indirectly in completion of my bachelor’s thesis Luận văn thạc sĩ Kinh tế TABLE OF CONTENTS ABBREVIATIONS …………………………………………………… … ………………… i LIST OF TABLES0…………………………………………….…………………… ……… ii LIST OF FIGURES0………………………… ………………….…………………… ii INTRODUCTION CHAPTER 1: THEORETICAL BASIS OF INTERNALTIONAL PAYMENT AT COMMERCIAL BANKS .3 1.1 INTERNALTIONAL PAYMENT AT COMMERCIAL BANKS .3 1.1.1 Overview of international payment .3 1.1.1.1 Definition of international payment .3 1.1.1.2 Characteristics of international payment .4 1.1.2 The roles of international payment .5 1.1.2.1 The roles of international payment to commercial banks 1.1.2.2 The roles of international payment to the economy .6 1.1.3 International payment operations .8 1.1.3.1 Main tools used in international payment 1.1.3.2 Terms of international payment 1.1.3.3 Methods of international payment .11 1.2 DEVELOPMENT OF INTERNATIONAL PAYMENT OF COMMERCIAL BANKS 13 1.2.1 The concept of developing international payment of commercial banks 13 1.2.2 The indicators reflect the development of international payment 14 1.2.3 Factors affect international payment operations 17 Luận văn thạc sĩ Kinh tế CHAPTER 2: CURRENT SITUATION OF THE DEVELOPMENT OF INTERNATIONAL PAYMENT AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE- THANH XUAN BRANCH 21 2.1 OVERVIEW OF VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE -THANH XUAN BRANCH 21 2.1.1 History of establishment and development of Vietnam Joint Stock Commercial Bank for Industry and Trade – Thanh Xuan Branch 21 2.1.2 Organizational structure 22 2.1.2.1 Organizational chart 22 2.1.2.2 Tasks of the departments 22 2.1.3 Business operations of Vietinbank - Thanh Xuan Branch .26 2.1.3.1 Capital mobilization activities 26 2.1.3.2 Credit operations .26 2.1.3.3 Payment activities and funds 28 2.1.4 Business situation at Vietinbank - Thanh Xuan Branch 29 2.2 CURRENT SITUATION OF INTERNATIONAL PAYMENT OF VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE 32 2.2.1 Organizational structure of international payment activities at Vietinbank - Thanh Xuan Branch 33 2.2.2 The situation of international payment under the import-export structure 34 2.2.2.1 International payment methods at Vietinbank Thanh Xuan .34 2.2.2.2 Customer structure of international payment transactions at the branch 38 2.2.3 The development of international payment activities through a number of indicators 39 2.2.3.1 Quantitative indicators 39 2.2.3.2 Qualitative indicators 42 2.3 EVALUATION OF DEVELOPMENT OF INTERNATIONAL PAYMENT ACTIVITIES AT VIETINBANK - THANH XUAN BRANCH .44 2.3.1 Advantages 44 2.3.2 Drawbacks 45 2.3.3 Reasons of drawbacks 47 2.3.3.1 Subjective reasons .47 2.3.2.3 Objective reasons .48 Luận văn thạc sĩ Kinh tế CHAPTER 3: SOLUTIONS FOR DEVELOPING INTERNATIONAL PAYMENT AT VIETNAM INDUSTRIAL AND COMMERCIAL BANK THANH XUAN BRANCH 51 3.1 OPPORTUNITIES AND CHALLENGES OF VIETINBANK - THANH XUAN BRANCH 51 3.1.1 Opportunity 51 3.1.2 Challenges 51 3.2 ORIENTED DEVELOPMENT 52 3.2.1 Business development orientation .52 3.2.2 Development orientation of international payment activities 53 3.3 SOLUTIONS TO DEVELOP INTERNATIONAL PAYMENT 54 3.3.1 Improving the qualifications of staff 54 3.3.2 Improving and renewing technologies for international payment activities 55 3.3.3 Improving the quality and developing a range of related services 56 3.3.4 Strengthening marketing activities 57 3.3.4.1 Building broad strategy to attract customers .57 3.3.4.2 Improving promotion 58 3.3.5 Building a reasonable customer policy 58 3.3.6 Improve the quality and diversify international payment services 59 3.3.6.1 Improving the quality of international payment 59 3.3.6.2 Diversifying Payment Services: 60 3.2.7 Perform good consulting services for customers 60 3.4 RECOMMENDATIONS .60 3.4.1 For the Government 60 3.4.2 For the State Bank 61 3.4.3 For the headquarter 63 CONCLUSION 65 REFERENCES 66 COMMENT…………………………………………………………………… 73 Luận văn thạc sĩ Kinh tế ABBREVIATIONS Explanation H.O SBV Vietinbank Vietinbank Thanh Xuan VTFC Explanation Headquarter State Bank Vietnam Joint Stock Commercial Bank For Industry And Trade Vietnam Joint Stock Commercial Bank For Industry And Trade – Thanh Xuan Branch VietinBank Trade Finance Center Luận văn thạc sĩ Kinh tế No LIST OF TABLES Table 2.1: Main targets of Vietinbank Thanh Xuan in 2017 – 2019 Table 2.2: Revenue, expense and profit of Vietinbank-Thanh Xuan Branch in 20172019 Table 2.3: Export payment activities at Vietinbank Thanh Xuan Table 2.4: Import payment activities at Vietinbank Thanh Xuan Table 2.5: Quantitative indicators reflecting the development of international payment activities Table 2.6: Quality target of international payment at Branch Luận văn thạc sĩ Kinh tế LIST OF FIGURES Firgure 2.1: Organizational chart of Vietinbank Thanh Xuan Figure 2.2: International payment structure at Vietinbank Thanh Xuan 2017-2019 Figure 2.3: Payment structure according to different payment methods Figure 2.4: Customer structure of international payment transactions INTRODUCTION Urgency of research topics In the trend of world development today, international economic relations take place very excitingly, which leads to the complex diversity of international goods circulation as well as the movement of cash flows in payments The payment process has an important role for the operation of businesses, organizations and individuals in particular and the economy in general International payment takes place in a wide and complex market due to the gap between buyers and sellers, the laws of each country and the difference in the currency of payment Most businesses, organizations and individuals cannot make international payments by themselves Therefore, the demand for payment assistance is made by commercial banks International payment activities are an integral part of the commercial bank's business operation chain and increasingly prove its position and important role Nowadays, modern banks are multipurpose activities to increase income not only from traditional banking operations, but also to expand off-balance sheet operations such as international payment, foreign exchange business, and guarantee Offbalance sheet activities bring income to banks in the form of increasing fees not only in quantity but also in proportion However, off-balance sheet activities are also potentially risky, especially when some people think off-balance sheet activities bring attractive income, but banks not have to invest capital, which makes them subjective and inconsistent face the potential risks In off-balance sheet business, international payment is an important business with high growth rate, bringing increasing fees for commercial banks Luận văn thạc sĩ Kinh tế Vietnam Joint Stock Commercial Bank for Industry and Trade -Thanh Xuan Branch (Vietinbank Thanh Xuan) is a highly reputable bank in the area As a commercial bank, it has the advantage of providing international payment services in the locality However, the scale of international payment at Vietinbank - Thanh Xuan branch is still small, the quality of international payment is low, the products of international payment services are mainly traditional services, many modern operations have not been applied, few customers use international payment Therefore, it is necessary to find solutions to develop international payment activities atVietinbank Thanh Xuan From the urgency and usefulness of the problem, through the research process at Vietinbank Thanh Xuan and with the learned knowledge, the author chose to study the topic: “The development of international payment at Vietnam joint stock commercial bank for industry and trade- Thanh Xuan branch” Objectives of the study  Systematize theoretical issues on developing international payment activities of commercial banks  Analyzing the status of developing international payment activities over the years by Vietinbank Thanh Xuan branch, thereby drawing out achieved results, limitations and causes  Proposing and proposing solutions to develop international payment activities at Vietinbank Thanh Xuan branch Research subject and scope  The object and scope of the study is the development of international payment activities at Vietinbank Thanh Xuan  The report focuses on assessing the status of development of international payment activities at Vietinbank Thanh Xuan during 2017-2019 Research Methodology The report uses the method of analyzing economic information according to norms, the method of comparison, synthesis, method of analyzing tables and graphs based on the statistics of Vietinbank Thanh Xuan during the period of 2017 - 2019 Luận văn thạc sĩ Kinh tế The structure of the report In addition to the Introduction, Conclusion, the report is structured into chapters, including: Chapter 1: Theoretical basis of international payment at commercial banks Chapter 2: Current situation of the development of international payment at Vietnam Joint Stock Commercial Bank For Industry And Trade- Thanh Xuan Branch Chapter 3: Solutions for developing international payment at Vietnam Industrial And Commercial Bank - Thanh Xuan Branch of 6.5 or above, proficiency in office informatics skills; candidates need to be knowledgeable about the processes and operations of Banking and Finance, international payment operations - trade finance, and the domestic law provisions related to foreign exchange management and international payment 3.3.2 Improving and renewing technologies for international payment activities Solution of modernizing application technology in banking of Vietinbank Thanh Xuan will help the branch overcome the following challenges:  High requirements on integration and nature of serving globalization  Customers are increasingly diverse with higher requirements  Competitive pressure among banking products and services of other banks in the area  High-tech crimes are increasingly developing with very sophisticated tricks In order to develop international payment activities, branches need to continue investing in renovating and upgrading information technology systems in the direction of: Luận văn thạc sĩ Kinh tế  Completing the database of information systems in service of business management and administration, including: + External information database such as business environment undertakings and policies of state management agencies; policies and regulations of the State Bank + Internal information database including regulations, policies, business statistics, etc of the branch + Database of customer information including financial information; non-financial information collected during contact, customer interviews, surveys, research at customers' business premises, information provided from other credit institutions  Consolidating and upgrading the system of equipment to ensure uniformity, high processing speed, and ability to convert to the subsequent development stages  Developing the main application software of the bank; build a comprehensive security system; build remote support system Particularly, it is necessary to continue developing SMS banking and internet banking services to assist international payment customers in quickly consulting, tracing and checking transactions being processed by banks 3.3.3 Improving the quality and developing a range of related services The branch should be aware of the close relationship between the business aspects including import and export finance, international payment and foreign currency trading and consider these services as the service package the branch provides for customers to improve its efficiency and quality Therefore, the branch should actively implement diversification of the following services:  Credit import-export financing This activity promotes development of production, increases budget revenue, limits foreign borrowing and is the core basis for the development of international payment and other services Import-export finance credit will effectively exploit foreign currency capital from long-term framework agreements, preferential interest rates to import materials, equipment and techniques for export production, creating jobs jobs, creating foreign exchange revenue Vietinbank Thanh Xuan develops forms of advanced loans on the basis of the opened L / C, buys all export documents, applies advance loan interest rates and discount preferential interest rates Join loans to invest in production and export processing to effectively use the mobilized capital while strengthening customer relationships to expand and develop international payment operations Luận văn thạc sĩ Kinh tế The branch should widely deploy the discount operation for the perfect set of export documents according to the letter of credit Because of the superiority of the discounting operation of appropriate documents of L/C, exporters can receive their money soon after delivery to continue the next production cycle In order to be able to compete to attract customers, Vietinbank Thanh Xuan is required to constantly improve its international payment expertise and widely implement this type of business It can be considered that the set of export documents under L/C is a set of valuable documents and is considered as a commodity for the bank to repurchase Diversification of import-export financing credit is required in the following forms: - Packing credit: Package credit allows a bank to provide advance credit to exporters to purchase raw materials, process and manufacture exports Package credit is given when the export customer has received an export letter of credit from the issuing bank This export letter of credit will be kept at the bank as collateral The advance credit will be refunded when the exporter receives money from the export documents - Factoring and Forfaiting: At Vietinbank Thanh Xuan, these two products are just at the research stage, not yet implemented Factoring is a form of short-term export financing, while Forfaiting is a form of long-term export financing, in which the bank will discount receivables from exports or discount long-term liabilities arising from Export of machinery and equipment of great value These financial support services for exporters will help increase the number of transactions, the type of international payment transactions at the branch, in particular, will help increase sales of exports, improve the structure of import and export goods and increase the foreign exchange capacity of the branch - Trust receipt: This is essentially an import financing operation, in which the bank will pay the exporter on behalf of the importer and vice versa, the customer undertakes to repay the payment plus interest to the bank after a certain period of time since the date of payment obligation (30 days / 60 days / 90 days / 180 days) The trust receipt is made according to the application for issuing a trust receipt of the import customer and is only approved by the bank if the customer has a trust limit at the bank  Foreign currency trading Foreign currency trading is an indispensable banking service to close a cycle of capital transfer from import - production - export - collecting money This service ensures enough foreign currency for customers who import, export, borrow or pay via Vietinbank, giving priority to customers who are closed by Vietinbank Branches should apply a number of foreign currency trading operations such as options, foreign currency swaps Luận văn thạc sĩ Kinh tế 3.3.4 Strengthening marketing activities Through marketing activities, bank can strengthen and create a good reputation for other banks and customers, so maintaining and attracting more customers to use the international settlement service of VietinBank Besides, through marketing activities, banks can also introduce and encourage customers to use new products of the bank, thereby helping the bank increase its market share and revenue from this activity 3.3.4.1 Building broad strategy to attract customers VietinBank needs to diversify customers from all economic sectors, so there should be no discrimination between different economic sectors However, there should be reasonable incentives for traditional customers, large customers of the bank and try to meet the needs of all customers well In addition, it is necessary to conduct customer classification to evaluate and have appropriate preferential policies such as fee incentives, deposit rates,etc to encourage development, in line with the development orientation of Bank For large customers using import and export activities regularly, the bank needs to have preferential policies such as exemption and reduction of certain fees, reducing lending interest rates, preferential deposit rates when opening L/C to attract new customers and maintain relationships with existing customers For customers who have little international exchange activity, little experience in foreign trade activities, officials of the international exchange center can advise on which method of international payment is most beneficial, binding the terms that are beneficial to customers to reduce risk and create trust with customers For individual customers, the branch should have flexible measures in identifying collateral that allows customers to mortgage with their own shipments 3.3.4.2 Improving promotion VietinBank must consider this to be an important work in its business activities In the short term, it is necessary to proactively market and attract large import-export production and business enterprises in ministries, branches, corporations, local enterprises, enterprises in industrial parks and enterprises foreign invested capital and social organizations regularly doing international payment activities Paying attention to healthy and reputable financial capacity in credit and payment relations, customers have advantages in import and export activities Banks can apply many different forms of marketing such as: through mass media such as newspapers, television, on the Internet to introduce the bank or print leaflets with the purpose to see the benefits of using banking services Banking headquarters must be spacious, clean, and create favorable conditions for customers Besides, it is necessary to regularly organize customer conferences to strengthen the relationship between the bank and customers and improve customer understanding of the bank At the same time, organize market researches to find out customers and see the position of the international settlement activities of the bank Luận văn thạc sĩ Kinh tế 3.3.5 Building a reasonable customer policy Building a reasonable customer policy will contribute to build and strengthen the reputation of Vietinbank Thanh Xuan for customers in expanding the business scope with certainty, giving customers a sense of confidence when delivering International payment transactions with the Bank The branch should arrange, periodically re-evaluate the customer system and develop a reasonable customer policy through:  Implementing a flexible service fee policy: + Building a flexible and competitive service fee bracket for each type of customers, from time to time, ensuring the cohesion between credit activities, deposits and service provision It is possible to accept low service fees in the short term to attract more profitable services + The branch possibly lowers the average service charge for priority customers, especially for enterprises in sectors, fields or areas that need to be prioritized to encourage development, however, the branch should ensure the overall operational efficiency of the whole branch + For important customers, the branch is necessary to regularly use reputable and branch services  Expanding approaches, creating and maintaining relationships with customers: + Focusing on customers who have just established or used the service, especially at the time when customers are hesitant to choose the organization providing financial services This is a sensitive time that the branch should have flexible measures to offer the banking services that customers expect + Diversifying forms of customer access; meeting each customer group + Organizing customer conferences to listen to suggestions, organizing seminars and presentations to provide information about the services of Vietinbank Thanh Xuan, new laws and regulations to customers  Facilitating customers by improving service quality  Shortening transaction time through simplifying business processes and service procedures  Promoting customer care, timely settlement of customer complaints  Implementing the mechanism of online transactions, reducing intermediaries Luận văn thạc sĩ Kinh tế 3.3.6 Improve the quality and diversify international payment services 3.3.6.1 Improving the quality of international payment For VietinBank, product quality is the guarantee to customers about their ability to pay, make faultless payments to ensure safety for customers, fast payment speed, bank payments It not only helps businesses but also helps the bank get an income source In order to improve payment quality, VietinBank needs to constantly improve the payment process, improve techniques to ensure safety and speed of payment for customers VietinBank also needs to encourage officials working on international exchange to promote creativity, participate in scientific projects, and contribute ideas to develop international payment activities through forms of material and spiritual rewards At the same time, banks also need to expand the relationship to collect information with the goal of accuracy and safety 3.3.6.2 Diversifying Payment Services: In recent years, the international payment services at VietinBank have reduced the excessive disparities as before, but the voucher credit still accounts for the largest proportion Therefore, VietinBank needs to diversify its services, expand the scale, and improve the quality of these services In the context of the current global economic, the use of trade finance products for international trade has changed dramatically For businesses that have difficulty in liquidity, using less guaranteed payment methods such as money transfer, open accounts, etc gradually reduce and be replaced by guaranteed payment methods like letters of credit or guarantees This also motivates product development banks to share risk among banks In order to provide guaranteed bank payment methods, banks must be very knowledgeable of their customers and this is an opportunity for VietinBank Thanh Xuan Branch to increase its competitiveness with foreign banks Therefore, the current commercial payment products not only stop at traditional products such as L/C, collection, guarantee but also develop into new products such as factoring, refinancing 3.2.7 Perform good consulting services for customers The effectiveness of international payment operations depends not only on the banks but also on customers, which are import-export business units participating in payment at banks As we all know, the experience of foreign trade business, understanding of international practices and practices in international business and international settlement of these units is limited Therefore, in order to reduce risks and bring about efficiency in international payment activities, the advisory role for customers of banks is extremely important International exchange officers need to advise clients when signing import-export contracts should choose any commercial conditions; advising customers on which payment method is most beneficial Luận văn thạc sĩ Kinh tế In addition, VietinBank needs to regularly hold seminars and seminars to introduce products and services to customers and thereby access to learn more about customers, this is also a way to promote and create a good reputation in the eyes of its customers 3.4 RECOMMENDATIONS 3.4.1 For the Government  Completing the legal system in international settlement activities The system of legal documents governing international exchange operations includes international laws and conventions, sources of national laws, international practices and practices (sorted by descending legal character) However, the relationship between responsibilities and obligations between entities participating in international payments such as importers, exporters, L/C issuing banks, notification banks and collection banks in International payment methods so far have not been adjusted by any domestic legal documents Currently, domestic banks mostly use international practices and practices such as UCP 600, URR, URC and Incoterms 2000 in international payment transactions However, international practices are only arbitrary legal documents and there is no adjusted national law source, the legal nature is under national law, the contracting parties may exclude, modify or supplement the terms of international practices and practices Until now, commercial banks conducting international payment transactions still have to learn from different law sources such as civil law, commercial law, foreign exchange law, negotiable instruments law, international payment law, and even international conventions This has caused a lot of difficulties and problems for international exchange staff, difficulties for banks and it is very easy to make mistakes due to not fully understanding the law sources Therefore, the government needs to build and improve the legal framework in international settlement activities to be more suitable in the integration period  Improving the quality of macro-monetary management, credit, maintaining the floating exchange rate policy regulated by the State Strengthening the State's management role in monetary policy to encourage and promote import and export activities is essential Moreover, the government needs to drastically reform administrative procedures in import and export management, streamline customs procedures, further combat anti-smuggling and domestic market management in order to increase budget revenue, protect households domestic production, strengthening foreign currency payment through banks Currently, the exchange rate of VND against other currencies such as USD, EUR constantly changes affecting import-export activities, so the State should have policies to regulate exchange rates as well as measures to encourage exports and import protection in the country Luận văn thạc sĩ Kinh tế 3.4.2 For the State Bank  Completing mechanisms and policies on the operation of commercial banks The State Bank should continue to develop and improve the policies and mechanisms for banking activities, creating a comprehensive legal corridor for banking activities in all aspects including currency, credit, foreign exchange, payment in accordance with Vietnamese law, international standards and practices as well as bilateral and multilateral commitments to which Vietnam is a signatory The formulation and completion of a project to amend the Law on Credit Institutions should be oriented towards international economic integration, in which the State Bank has a relatively more independent right  Renewing foreign exchange management policy The State Bank should continue to renovate and manage foreign exchange management policies and exchange rate management mechanism The State Bank should regulate the exchange rate with the motto: "Flexibility in the short term and stability in the long term", accordingly, the exchange rate in the short-term fluctuates based on market prices, and is equal to the macro-finance measures to stabilize long-term exchange rates, creating confidence for businesses engaged in foreign trade activities and banks with international payment activities On the other hand, the exchange rate policy "Flexible in the short term and stable in the long term" also facilitates the development of foreign currency trading operations such as forward trading, call / put option, encourage businesses to use these types of transactions in order to increase profits or ensure to avoid losses for exchange rates The State Bank should continue to implement the exchange rate mechanism to loosen the amplitude, gradually reduce administrative intervention and improve the management capacity of the State Bank It is necessary to enhance the overall capability of the State Bank in managing foreign exchange transactions, improving the effectiveness of the foreign exchange management mechanism in the condition of current account liberalization and selectively control capital transactions in accordance with the roadmap to open financial markets.Another important task is to build a conversion framework for the Vietnamese Dong and reduce dollarization in the economy, creating a real strength for the Vietnamese Dong when participating in international payment activities Luận văn thạc sĩ Kinh tế  Providing solutions to accelerate the process of international integration in banking sector This is a central task of the State Bank of Vietnam in the coming period In order to accelerate the process of international integration in banking sector, the State Bank with a vertical management role needs to update and disseminate information on liberalization, bilateral international commitments and multilateral trade, services, especially banking At the same time, it is necessary to selectively open gradually the banking service markets to foreign credit institutions Accelerating the process of international integration in the banking sector also requires the removal of unreasonable protections for domestic credit institutions, ensuring equality among domestic credit institutions and foreign credit institutions  Supporting to improve the financial capacity of banks In order to be able to integrate internationally in the banking sector, the first important task is to improve the financial capacity of domestic credit institutions, especially for state-owned commercial banks Over the years, the State Bank has provided additional funding to a series of state-owned commercial banks in order to better prepare their financial capacity before fully opening the domestic financial market However, improving the financial capacity of domestic credit institutions not only requires the support of the State Bank, it also requires the effort of the commercial banks themselves in providing accumulation of legal capital In addition, based on the periodic reporting system from commercial banks, the State Bank can make development forecasts for the period of 2020-2025 and develop the plan of service and network development These will be important guidelines for Vietnamese commercial banks to develop business operations in general and international payment services in particular 3.4.3 For the headquarter  The head office should make timely amendments to the international payment operation process, guidelines and implementation of new services As analyzed above, the international payment operation process is the legal basis for implementing and implementing international payment activities at Vietnamese commercial banks Despite long-term operations in the field of international payment, but as we all know, after Vietnam joined the WTO and then signed a series of trade agreements, in order to comply with international practices, many regulations of the State on foreign exchange management, exchange rate policy and regulations on the field of international payment often change Therefore, VCB Headquarter with the role of directing the international payment activities of the whole system, urgently research and promulgate official documents as well as documents related to the operation international payment so that branches can operate as regulations on international payment activities, lending mechanism for import and export finance and professional instructions such as instructions on mail transfer Using and guiding the implementation of new products and services of international payment Luận văn thạc sĩ Kinh tế At the same time, along with the fundamental changes of the whole system such as the application of ISO product quality management system or the operation of Modernization, business processes should be renewed in a timely and synchronized manner to avoid legal problems when conducting professional operations  Supporting branches in all aspects Vietinbank Thanh Xuan is just one of many newly established branches, aged 27 years compared to the nearly 32-year-old tradition of Vietinbank Vietnam Naturally, the younger branches always face many difficulties and challenges when joining the areas, the market has many long-time rivals and fierce competition Practical experience shows that when first entering the market, banks always create competitive pressure by reducing interest rates, reducing service fees, and buying and selling foreign currencies for payment international Therefore, the H.O needs to set aside an appropriate rate of capital, support foreign currencies with low interest rates along with local mobilization in order for the branch to have conditions to implement customer policies such as lower lending rates averagely, the service fee is more competitive, ensuring the entire source of foreign currency loans imported at the request of the branch with preferential interest rates to encourage branches to find customers and feasible projects to support; support in whole or in part for export loan capital; ensure the source of foreign currency or foreign currency business so that the branch has its own operating conditions It is probable in a short time that these branches have temporarily not brought about business results as expected, but these are temporary steps, necessary to create a foundation for strong and sustainable development in the future The support of the Head Office is also shown by prioritizing a number of major programs and projects for newly established branches (based on the actual capacity of the branch) to create development and branches have opportunity to approach customers, step by step enter the market Luận văn thạc sĩ Kinh tế CONCLUSION International payment is an important stage in the process of buying and selling goods and services between organizations and individuals from different countries Without international payment activities, foreign economic activities will hardly exist and develop If international payment activities are fast, safe and accurate, it will solve the goods-monetary circulation relationship between buyers and sellers smoothly and effectively The development of this service segment brings great benefits to the bank On the one hand, this is a service that brings quite a stable revenue and helps the bank to have certain foreign currency capital Besides, this payment service also helps demonstrate the importance of banks in the international market, through connecting with partners around the world In recent years, Vietinbank Thanh Xuan Branch has well performed its role as an international payment intermediary The bank has achieved many successes in sales and constantly improved and developed this business The branch has become a reliable companion, effectively supporting the business activities of individuals, organizations and businesses Luận văn thạc sĩ Kinh tế REFERENCES VIETNAMESE GS Đinh Xn Trình (2016), Thanh tốn quốc tế ngoại thương tài trợ thương mại quốc tế, NXB Thống kê, Hà Nội GS.TS Nguyễn Văn Tiến (2015), Ngân hàng thương mại, NXB Thống kê, Hà Nội PGS TS Trầm Thị Xuân Hương tác giả (2015), Thanh toán quốc tế, NXB Thống kê, Tp Hồ Chí Minh PGS TS Phan Thị Thu Hà (2013), Ngân hàng thương mại, NXB Đại học Kinh tế quốc dân ENGLISH Eric Bishop (2004), Finance of international trade, Butterworth Heinemann, London Anders Grath (2010), The handbook of international trade and finance, Kogan Page, London and Philadelphia Dr Elmar B.Koch (2007), Challenges at the Bank for International Settlements: An Economist's (Re)View, Springer, New York Eward G.Hinkelman (2003), A Short Course in International Payments: How to Use Letters of Credit, D/P and D/a Terms, Prepayment, Credit, and Cyberpayments in International transactions, World Trade Press Stephen Millard, Andrew Haldane and Vitoria Saporta, (2010), The future of Payment Systems(Routledge International Studies in Money and Banking Book 43) Anonymous author (2019), Making remittances cheaper, The Economists Anonymous author (2019), Future Banking payments, The Economists Luận văn thạc sĩ Kinh tế Anonymous author (2020), Fintech takes aims at the steep cost of international money transfer, The Economists WEBSITE Francis S Pierce and other authors 2010 International payment and exchange Address: https://www.britannica.com/topic/international-payment (Accessed on 15/03/2020) Minh Thuy 2018 VietinBank: Nổi bật Thanh toán quốc tế Tài trợ thương mại Address: https://www.vietinbank.vn/vn/tin-tuc/VietinBank-Noi-battrong-thanh-toan-quoc-te-va-tai-tro-thuong-mai-20180112154302.html (Accessed on 15/03/2020) Business activities and network 2020 Address: https://www.vietinbank.vn/web/home/en/index.html (Accessed on 20/03/2020) Annual report 2017 Address: https://www.vietinbank.vn/sites/mediafile/VTB141446 (Accessed on: 02/04/2020) Annual report 2018 Address: https://www.vietinbank.vn/sites/mediafile/VTB139349 (Accessed on:02/04/2020) Annual report of SBV 2017 Address: https://www.sbv.gov.vn/webcenter/ShowProperty?nodeId=/UCMServer/SBV40343 5//idcPrimaryFile&revision=latestreleased(Accessed on : 16/03/2020) Annual report of SBV 2018 Address: https://www.sbv.gov.vn/webcenter/ShowProperty?nodeId=/UCMServer/SBV35521 7//idcPrimaryFile&revision=latestreleased (Accessed on : 16/03/2020) Ngân hàng nhà nước Việt Nam 2019 Cán cân toán quốc tế Address: https://www.sbv.gov.vn/webcenter/portal/vi/menu/trangchu/tk/ccttqt? _afrLoop=5553281064187539#%40%3F_afrLoop %3D5553281064187539%26centerWidth%3D80%2525%26leftWidth %3D20%2525%26rightWidth%3D0%2525%26showFooter%3Dfalse %26showHeader%3Dfalse%26_adf.ctrl-state%3Dribdx12w8_162 (Accessed on: 16/03/2020) Overview of Vietinbank 2020 Address: https://www.vietinbank.vn/web/home/en/about (Accessed on: 03/04/2020) V Jeníček, V Krepl 2017 The role of foreign trade and its effects Address: https://www.agriculturejournals.cz/publicFiles/06929.pdf (Accessed on: 26/04/2020) Luận văn thạc sĩ Kinh tế Stijn Claessens, Omar Hassib, and Neeltje van Horen 2014 How Foreign Banks Facilitate Trade in Tranquil and Crisis Times: Finance or Information? Address: https://www.imf.org/external/np/seminars/eng/2014/trade/pdf/VanHoren.pdf (Accessed on 26/04/2020) 10 Wameek Noor, Andria Thomas 2017 International Remittances and Branchless Banking: Emerging Models Address: https://www.cgap.org/blog/internationalremittances-and-branchless-banking-emerging-models (Accessed on: 29/04/2020) 11 Thông xã Việt Nam 2017.Address: http://thoibaotaichinhvietnam.vn/pages/kinh-doanh/2017-12-05/doanh-nghiep-cancanh-giac-trong-thanh-toan-quoc-te-51180.aspx (Accessed on: 29/04/2020) 12 Anonymous author 2019 Address: https://www.theguardian.com/money/2018/dec/09/banking-swift-money-transferworldwide-delay(Accessed on: 15/05/2020) Luận văn thạc sĩ Kinh tế COMMENT …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… Luận văn thạc sĩ Kinh tế …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………… …