Báo cáo thực tập tiếng anh vietnam bank for agriculture and rural development, lai chau city branch

GRADUATE INTERNSHIP REPORTON BANKCARD ACTIVITIES INTERNSHIP COMPANY/INSTITUTION: Vietnam Bank for Agriculture and Rural Development, Lai Chau City BranchAddress: 216 Tran Hung Dao Street

GRADUATE INTERNSHIP REPORT

ON BANKCARD ACTIVITIES

INTERNSHIP COMPANY/INSTITUTION: Vietnam Bank for Agriculture and Rural

Development, Lai Chau City BranchAddress: 216 Tran Hung Dao Street, Doan Ket Ward, Lai Chau City

Supervisor: Mr Chu Van Hung

Student’s full name: Hoang Hien Trang

Student’s ID: 11071591 Major: International Business

Class: IB2012B

Hanoi, 5 th March 2016

I am greatly indebted to Mr Hoang Van Trung, accountant from Lai Chau City Branch ofAgriBank, who introduced me to Accounting and Treasury Department and continuouslyencouraged me during internship time at Lai Chau branch

I must mention the wonderful working environment and group commitment of this bank thathas enabled me a lot deal to do and observe the banking activities during my internship period

of six weeks I would particularly like to thank all staff from Accounting and TreasuryDepartment and all members of Lai Chau branch of AgriBank for their help, support andproviding related information, data

Last but not least, I convey my sincere thanks to my family friends who inspire in differentways to complete the report and the course as well

However, owing to my lack of experience and knowledge as well as the limited scope of theresearch, some shortcomings and mistakes are unavoidable Please kindly take into account

Student,Hoang Hien Trang

GLOSSARY OF TERMS AND ABBREVIATIONS

AgriBank

Agriseco

Vietnam Bank for Agriculture and Rural DevelopmentAgriBank Securities Joint-stock Corporation

ABIC Agriculture Bank Insurance Joint – Stock Corporation

Management Information System

PG Bank Petrolimex Group Joint-stock Commercial Bank

SBV The State Bank of Vietnam

United Nations Development Programme

TABLE OF CONTENT

CHAPTER 1: OVERVIEW OF VIETNAM’S AGRIBANK 1

1.1 Introduction about AgriBank: 1

1.2 Brief history: 1

1.3 Business volume 3

1.4 Vision: 3

1.5 Mission: 3

1.6 Core values 4

1.7 Organizational structure: 4

1.7.1 Organizational chart: 4

1.7.2 Subsidiaries: 6

1.8 Products and services: 6

1.9 Coming year’s strategy: 7

CHAPTER 2: INTERNSHIP AT AGRIBANK, LAI CHAU CITY BRANCH 8

2.1 Introduction of Vietnam Bank for Agriculture and Rural Development – Lai Chau City Branch 8

2.2 Organization structure: 9

2.3 Products and services: 10

2.4 Business Performance in 2015: 11

2.4.1 Fund Mobilization: 11

2.4.2 Credit: 11

2.4.3 Domestic Payment: 11

2.4.4 International Banking: 12

2.4.5 Information Technology: 12

2.5 Depth-analysis about bankcard activities: 12

2.5.1 Concept and classification: 12

2.5.2 Transaction process: 15

2.6 AgriBank card activities in AgriBank Lai Chau: 18

2.6.1 AgiBank cards: 18

2.6.2 Actual situation of AgriBank card in the branch: 22

2.6.2.1 Some results of development of AgriBank card: 22

2.6.2.2 Evaluation on customer satisfaction level toward bankcard services: 25

2.6.2.3 Existing problems and difficulties: 26

CHAPTER 3: JOB PART 29

3.1 Internship objectives: 29

3.1.1 Primary objective: 29

3.1.2 Secondary objectives: 29

3.2 Internship position, duties and methodology: 29

CHAPTER 4: RESULTS ACHIEVED 31

4.1 Content of theoretical knowledge was strengthened: 31

4.2 Practical skills: 32

4.3 Practical experience: 32

4.4 Contribution to AgriBank Lai Chau: 33

4.5 Further recommendations for improvement: 33

CONCLUSION 36

LIST OF TABLE AND FIGURE

Figure 1 - The organization structure of AgriBank……….5

Figure 2 - The organization structure of AgriBank Lai Chau City Branch……… 10

Figure 3 - Types of bankcard……….13

Figure 4 - Procedure of issuing bankcard……… 15

Figure 5: Procedure of acquiring cards……… 17

Figure 6 - Types of AgriBank card………19

Table 1 - Results of issuing cards at AgriBank Lai Chau……… 23

Table 2 - Devices of acquiring cards of AgriBank Lai Chau………25

Table 3 - Customer satisfaction level toward bankcard services……… 25

Table 4 - Problems when do transactions at ATMs……… 27

CHAPTER 1 OVERVIEW OF VIETNAM’S AGRIBANK

1.1 Introduction about AgriBank

Vietnam Bank for Agriculture and Rural Development is the only 100% state-ownedcommercial bank in Vietnam Throughout its development, AgriBank has always been thelargest bank in Vietnam in terms of total assets, operating network and customer base Thebank’s market share includes 16% of the total funding sources and outstanding loans thatmake up Vietnam’s banking system as a whole

Name in English: Vietnam Bank for Agriculture and Rural Development

Abbreviation name: Ngân hàng Nông nghiệp và Phát triển nông thôn Việt Nam

Abbreviation name in English: Agribank

Legal Form: A state-owned one-member Limited Liability Company

Commencement of Business: 26th March 1988

Head Office: No.2 Lang Ha Street, Ba Dinh District, Hanoi, Vietnam

1988: Established under the name of Agricultural Development Bank of Vietnam by DecreeNo.53/HDBT dated 26 March, 1988 of the Council of Ministers (now the Government).

1990: Renamed Vietnam Bank for Agriculture

1991: Implemented loans for the household economic sector under Directive 202/CT dated 28June 1991 by the Chairman of the Council of Ministers

1995: Proposed establishment of the Bank for the Poor (now called the Vietnam Bank forSocial Policies) – a separate entity from the Vietnam Bank for Agriculture

1996: Renamed Vietnam Bank for Agriculture and Rural Development

2003: Awarded the title of “Labor Hero of the Doimoi Era” by the Party and the State

2005: Opened first representative office abroad – Representative Office in Cambodia

2006: Obtained Vietnam Gold Star Award

2007: Ranked by UNDP as the largest enterprise in Vietnam

2008: Awarded the “Second-Class Independence Medal” by the Party and the State

Took up Chairmanship of the Asia-Pacific Rural and Agricultural Credit Association(APRACA)

Top 10 Vietnam Gold Star Award

2009: Recognized as the first bank to be awarded the “Top 10 Vietnam Gold Star” Awardtwice

Officially kicked off the IPCAS II, connecting online all 2,300 branches and transactionoffices

2010: Named in top 10 of the 500 largest enterprises in Vietnam

Opened first branch abroad – Branch in Cambodia.

2011: Converted into a State-owned one-member limited liability company

2012: The only bank in the top 10 ranking of the 500 largest enterprises in Vietnam –VNR500

Top ASEAN Enterprise, Top brand name of ASEAN; Top Bank for Payment, TopBanks of Vietnam

2013: 25th anniversary of the establishment, honorably received the Third-Class Labor Medalfrom the Government

2014: Implemented Restructuring Plan with the aim of continuing to play a key role in thesystem of credit institutions in Vietnam, directly responsible for implementing the policy ofthe Party and State on development assistance and the provision of financial services foragriculture, rural areas, and framers

The only bank in the top 10 ranking of the 500 largest enterprises in Vietnam – VNR500

1.3 Business volume

In view of the above, the Bank within a period of 28 years of its operation achieved a

remarkable success In 2015, AgriBank possessed total assets of VND 762 trillion (USD 36billion), a broad operating network of 2,252 branches and transaction offices across thecountry (covering 63 provinces and cities) and nearly 40,000 staff AgriBank’s customersinclude 10 million house-holds, individuals and 30,000 enterprises

 Fast and accurate customer service.

 Balanced growth strategy

 High standard business ethics

 Steady return on shareholders' equity

 Innovative banking at a competitive price

 Attract and retain quality human resource

 Firm commitment to the society and the growth of national economy

on AgriBank’s organization structure:

Figure 1 - The organization structure of AgriBank

BOARD OF DIRECTORS SUPERVISORY BOARD

SECRETARIAT

TO BOD

RISK MANAGEMENT COMMITEE

GENERAL DIRECTOR

DEPUTY GENERAL DIRECTOR

CHIEF ACCOUNTANT

FUNCTIONAL DEPARTMENTS

SUBSIDIARIES

ADMINISTRATIVE ENTITIES

REPRESENTATIVE OFFICES

TYPE I, TYPE II BRANCHES

OPERATIONS

CENTER

BRANCHES TYPE III

BRANCHES

TRANSACTION

OFFICES

TRANSACTION OFFICES

Source: AgriBank - Annual report 2012

1.7.2 Subsidiaries

1 Agribank Leasing Company No.1

2 Agribank Leasing Company No.2

3 Agribank Banking Services Company Limited

4 Agribank Jewelry Company Ho Chi Minh City - VJC

5 Haiphong Trading and Investment Development Company Limited

6 Agribank Gold Joint-stock Corporation (AJC)

7 Agribank Securities Joint-stock Corporation (Agriseco)

8 Agribank Insurance Joint-stock Corporation (ABIC)

9 Agribank Tourism and Trading Joint Stock Company

10 Agribank Asset Management Company

1.8 Products and services

- Accounts and deposits: accepting deposits and mobilizing savings with the diver, attractiveinterest rates such as promissory notes, bonds, certificates of deposit

- Loans: lending in short, medium or long term, daily life consumption, investment trusts;mortgage lending by valuable papers, co-sponsored loans, lending by issuing creditcards

- Guarantee: implementing businesses; payment guarantees; bid guarantee; contractperformance guarantee, contract of guarantee, guarantee confirmation

- Domestic payment services: domestic money transfer services, service of collectionand payments; state budget collection services, bill payment services, automaticcollection services

- Securities: the point of providing Agriseco’s services, implementing transactions of openingaccounts, securities registration, securities trading

- Foreign Exchange Services: import and export payments under the credit methodssuch as L/C; cash transfer; foreign currency trading; remittance payment ;currencyexchange

- Border payment with Laos: including bank drafts, cross-border money transfers documents,trading transaction payment, deed of trust and e-transfers, letters of credit and letters of tradeborder payment guarantee letter

- Card Services: issuing domestic debit card (success); international debit card (master/visadebit); International credit cards (Master/Visa credit); business card set

- Electronic banking (e-banking): mobile banking services (VnTopup - phone rechargingservices via SMS, SMS banking; Atransfer – SMS money transfer service); VnMart services,internet banking; Apaybill

- Insurance: Security credit insurance; Insurance for international cardholders, cargoinsurance, fire insurance; insurance of automobiles, motorcycle, human; other kinds ofinsurance

- Other services: provide account information; automatic salaries paying and receivingservice; safe leasing services; consulting services and other services

1.9 Coming year’s strategy

 Ensure fund mobilization and liquidity, balance capital needs for business expansion

 Ensure credit growth at reasonable level, consistent with the deposit growth rate andensure the bank’s prudent ratios; continue to provide credit to “Tam Nong”,households and individuals, and SMEs

 Implement measures for bad debt recovery, closely monitor credit quality, makeprovisions and handle risks according to regulations, ensure safe and effectiveoperation

 Continue to reform and strengthen management models to improve efficiency anddiscipline in business operations

 Improve mechanism of effective financial management, equitable and transparentincome distribution, creating motivating business activities.

 Continue the implementation of AgriBank restructuring plan; reform the businessmodel and organizational structure, rearrange branches and departments at the HeadOffice, improving effectiveness of management activities; strengthen theorganizational structure and improve the quality of internal audit and control activities;complete documents, regulations on management mechanisms, business operations,etc

 Deploy projects in Information Technology (IT), banking modernization, and productand service development in an effective and timely manner

 Formulate AgriBank Human Resources Development Plan 2015-2020; continue toimprove quality and effectiveness of recruitment, training and development of humanresources

 Improve the effectiveness of marketing and communications associated with socialsecurity activities in order to enhance the position, reputation and brand image ofAgriBank

CHAPTER 2 INTERNSHIP AT AGRIBANK, LAI CHAU CITY BRANCH

2.1 Introduction of Vietnam Bank for Agriculture and Rural Development – Lai Chau City Branch

In 2013, Vietnam Bank for Agriculture and Rural Development – Lai Chau City Branch wasfounded under Decision No 1292/QĐ/HĐQT/TCCB dated October 15th, 2013 by the Board ofDirectors of AgriBank with the primary staff of 28 people

Located in 216, Dien Bien Phu Street, Tan Phong ward, Lai Chau city a vast residential areawith many convenient economic conditions, AgriBank Lai Chau has advantage to do businesseffectively Right from the beginning of its operation, though was difficult due to the lack ofmanpower and facilities , but the leadership and staff of the branch has made great efforts

to achieve good results and significant contributions to the development of AgriBank, as

well as shift economic structure, promoted the further economic-social development of LaiChau city in a comprehensive and sustainable way.

Since its establishment, AgriBank Lai Chau has continuously extended trading networks,diversified items of business, currency, and credit, promoted capital sources The branch isalso focusing on improving the qualification of staff both in professional knowledge, skills andforeign languages Lai Chau branch concerns not only stabilizing and expanding the networkbut also the living conditions of employees Facilities are modernized, especially informationtechnology, to serve the business better From its establishment, the branch always makesprofits, the revenue is higher year after year, contributing to the State budgets increasingly,creating credibility with customers

Position of the branch in the whole system:

The branch implements of the full functions and responsibilities of a modern and prestigiousbank AgriBank Lai Chau was upgraded to type I branch in 2015 affirming important position

of the branch in AgriBank system

2.2 Organization structure

Through years of operation, AgriBank Lai Chau has developed widely, at the present time ithas a business network of 2 transaction offices AgriBank Lai Chau is organized under themodel of a supervisor Board of Management including a General Director and two DeputyDirectors

Organization structure of AgriBank Lai Chau is divided into functional blocks as follows:

Services &

Marketing

Department

Administration Department

No.2

Deputy Director

No.1

General Director

Internal Supervision

Deputy Director

Plan &

BusinessDepartment

Accounting

& Treasury Department

Transaction Office

Figure 2 - The organization structure of AgriBank Lai Chau City Branch

Source: Administration Department of Agribank Lai Chau

2.3 Products and services

AgriBank has been made an effort in developing traditional services as well as other modernand valued added services This has enabled AgriBank to diversify its own products suitable toeach segment of customers At the present time, AgriBank becomes the leading bank indeveloping products: Mobile banking, SMS banking, VNTop up, SMS remittance (A transferservice), etc

To AgriBank Lai Chau, inherited reputation and successes of AgriBank, the branch has itsdecisions, policies to precede those successes AgriBank Lai Chau posts in the account

dependently, has its own seals, organizes and operates under Regulation on organization andoperation of AgriBank AgriBank Lai Chau provides products and services which serve:

- Personal customers: They are individual, households join transactions in the branch Thebranch provide these customers: Individual account, loans, savings and investment,remittance, AgriBank card, foreign exchange

- Corporate customers: They are target customers of the branch Money flows often in agreat number They are organizations, corporate… Services and products include: guaranteeservice, international payment, account, lending, check services, valuable notes, payment,border payment, saving deposit, leasing, foreign exchange, factoring

- Financial institutions: AgriBank hope to “provide various services in order to satisfycustomers coming from financial institution sectors” These services are: retail banking,foreign exchange, treasuring, financial trading, project based lending

As of 31 December 2015, the total outstanding loans amounted to VND 757 billion, increasing

by 8.2% compared to that of 2014, achieving the set target and reflected a reasonable growthrate in a difficult year of 2015

2.4.3 Domestic payment

In 2015, AgriBank Lai Chau’s volume of payment transactions went up by 15.8% compared tothat of 2014 with 413,907 transactions; transaction payment value reached VND 989 billion

Payments via Internal Payment and Customer Accounting System (IPCAS) increased by11.79% in number of transactions and 6.66% in total amount compared to those of 2014; theaverage number of transactions per day grew by 10.91% compared to that of 2014.

2.4.4 International banking

Foreign Currency Exchange:

In 2015, AgriBank Lai Chau achieved the total volume of foreign currency trading of USD 23million equivalent to 478.4 billion, increasing by 17% compared to 2014 and making 107% ofthe set target Of which, the buying volume was USD 3.4 million, increasing by 18%; theselling volume was USD 2.3 million, increasing by 11% compared to 2014

2.4.5 Information technology

To absolutely ensure the operation of the whole system, AgriBank Lai Chau was placed a highpriority on intensifying information security by means of the improvement of the One TimePassword (OTP) authentication system, implementation of the Public Key Infrastructure(PKI), issuance of the regulation on ensuring the security of the IT system in Agribank’soperation, training, disseminating and upgrading the knowledge of information security for theusers via training and news-letters on information security

2.5 Depth-analysis about bankcard activities

2.5.1 Concept and classification

Everyday millions of people all around the globe are using bankcards for making credit cardpayments for their purchases

Figure 3 - Types of bankcard

Source: Author

* Payment method:

- Debit card: A plastic card used to initiate a debit transaction In general, these transactionsare used primarily to purchase goods and services and to obtain cash, for which thecardholder's asset account is debited by the issuer

Debit card consist of two basic types:

+ On-line debit card: An online-debit card deducts funds from the bank accountimmediately, as soon as the card is used There is no delay for processing the transaction + Off-line debit card: An off-line debit card does not deduct funds from the checkingaccount immediately Transactions are processed like a regular credit card and the funds arenot deducted for 24-72 hours

Most issuers of debit cards are moving to this type of card rather than on-line debit card

- Credit card: A plastic card bearing an account number assigned to a cardholder with acredit limit that can be used to purchase goods and services and to obtain cash disbursements

on credit, for which a cardholder is subsequently billed by an issuer for repayment of the

basis

- Cash card: Cash cards are similar to pre-paid phone cards The card is worth a certainamount of cash and the retailer must use a special cash card reader to debit the card Eachpurchase is deducted from the value left on the card until the pre-paid amount is spent Thesecards are just like cash – if lost or stolen, there is no way to retrieve the money on the card

* Issuer:

- Bankcards: Banks, financial institutions around the world distribute cards A cardholderborrows money against a credit line and repays those funds with interest if the balance iscarried over from month to month

These cards are used all around the world, such as: Visa USA, MasterCard…

- Travel and entertainment cards: travel and entertainment corporations distribute their owncards so they are not considered bankcards since they are not issued by a financial institution.These cards are widely used by business for their travel and entertainment expenses, such asAmerican Express (AMEX), Dinners Club…

* Area of using card:

- Domestic card: Card is used in domestic only with legal tender of that nation

- International card: Card is used around the world, used strong currencies in transactions

2.5.2 Transaction process

* Issuing:

Figure 4 - Procedure of issuing bankcard

Source: Author

+ Customers:

- Customers fulfill and sign on the application and credit card agreement

- Required documents: photograph 3x4 or 4x6, Copies of Identity card, copies of passport,visa or residence permit…

- Types of guarantee for card payment

+ Issuing banks:

- Checking customer’s application, then decide to approve or not

- Approving

- Sending their requests of opening a new card to the card centre

- Receiving new card and personal identity number (PIN) from the card centre

- Handing new card and PIN over customers

- Guiding the customer to use card

+ The Card centre:

- In responsibility of receiving information of customers from issuing banks

- Produce a new card

- Deliver cards to issuing banks

* Acquiring: