LV Thạc sỹ_Limit risks in international payment by using LC at Lienvietpostbank dong do branch

NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT - - SOLUTIONS TO LIMIT RISKS IN INTERNATIONAL PAYMENT BY USING L/C AT LIENVIETPOSTBANKDONG DO BRANCH NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT - - SOLUTIONS TO LIMIT RISKS IN INTERNATIONAL PAYMENT BY USING L/C AT LIENVIETPOSTBANKDONG DO BRANCH ACKNOWLEDGEMENT During my internship period, I have received a great deal of valuable help and great support from many people Without their guidance and suggestion, this report would not have been finished First, I am heartily thankful to my supervisor, Ms …, whose encouragement, guidance and assistance from the preliminary to the concluding level enabled me to complete the writing of this dissertation She has spent time reviewing and correcting various documents of mine with great attention and care Next, I would like to take this opportunity to express my sincere thanks and heartfelt appreciation to Ms … and all the staff members of the Customer Relation Department at LienVietPostBank-Dong Do Branch for all the knowledge and practical experience they have provided me throughout my internship Without their support and advice, I could not have gotten such relevant data to finish my report I also wish to thank all teachers of the Faculty of Foreign Languages, National Economics University Thanks to the knowledge accumulated from related subjects taught by the faculty’s lecturers, I can experience my internship program smoothly Last but not least, my great appreciation goes to the support from my family and friends, their timely motivation and encouragement helped me come over all difficulties of my internship program and finish this report TABLE OF CONTENT TABLE OF ABBREVIATIONS i TABLE OF FIGURES i TABLE OF DIAGRAMS ii ii EXCUTIVE SUMMARY ii INTRODUCTION The introduction of the research topic .1 Rationales .1 Research questions Scope of the research Methodology CHAPTER I: INTRODUCTION 1.1 An overview of LienVietPostBank 1.2 An introduction to LienVietPostBank- Dong Do Branch .6 1.2.1 History and development of LienVietPostBank- Dong Do Branch 1.2.2 Main operations of branch 1.3 An overview of international payment by using L/C at LienVietPostBank 1.4 Key terms definitions CHAPTER II: THEORETICAL FRAMEWORK 2.1 International payment .9 2.1.1 Concept of international payment .9 2.1.2 The role of international payment to the bank 10 2.1.3 International payment methods 10 2.1.3.1 Cash in advance 10 2.1.3.2 Remittance 10 2.1.3.3 Open account .12 2.1.3.4 Documentary collection 13 2.1.3.5 Letter of credit 14 2.2 Payment by letter of credit .15 2.2.1 The concept of letter of credit 15 2.2.2 Classification of L/C 16 2.2.2.1 Basic letter of credit 16 2.2.2.2 Special letter of credit 17 2.2.3 Procedure of L/C 19 2.2.3.1 Parties involved in L/C .19 2.2.3.2 Basic documentary L/C procedure .20 2.3 Risks of using L/C and reason for risks 25 2.3.1 Concepts of risks in commercial bank .25 2.3.2 Types of risks in using L/C .25 2.3.2.1 Exchange Rate Risk 25 2.3.2.2 Credit risks 26 2.3.2.3 Ethical risks 27 2.3.2.4 Political and legal risks 27 2.3.2.5 Liquid risks 27 2.3.2.6 Technical risks 28 2.3.2.7 Operation risks 28 2.3.3 Reasons for risks in using L/C 28 2.3.3.1 Objective reasons .28 2.3.3.2 Subjective reasons 29 2.3.4 Solutions to reduce risks in using L/C .30 2.3.4.1 Micro solutions 30 2.3.4.2 Macro solutions 31 32 CHAPTER 3: ANALYSIS AND FINDING 32 3.1.3 Real situation of export L/C at LPB-Dong Do Branch 36 3.1.4 Reality of import L/C at LPB-Dong Do Branch 38 3.1.5 Reality of unsettled L/C 39 3.2 Risks and reasons for risks in using L/C at LPB-Dong Do Branch .40 3.2.1 Reasons for ethical risks 40 3.2.2 Reasons for technical risks .40 3.2.3 Reasons for political and legal risks 41 3.2.4 Reasons for exchange risks 42 CHAPTER IV: RECOMMENDATIONS .42 4.1 Orientation of LPB-Dong Do Branch in international payment method 43 4.2 Recommendations to reduce risks in international payment using L/C in LPB-Dong Do Branch 43 4.2.1 Continuously improving operation level of international payment staff 43 4.2.2 Innovating technologies at LPB-Dong Do Branch 45 4.2.3 Improving internal supervision 45 4.2.4 Perfecting data center .46 4.2.5 Diversifying the using in types of L/C 46 4.2.6 Continuously raising capital 47 4.2.7 Expanding marketing activities 47 4.3 Recommendations for other parties to enhance using L/C 48 4.3.1 Recommendations for the State Bank of Vietnam 48 4.3.1.1 Flexibly implementing national monetary policies .48 4.3.1.2 Improving inter-bank foreign currency market 48 4.3.2 Recommendations to LienVietPostBank – headquarter 48 4.3.2.1 Developing correspondent banking system 48 4.3.2.2 Enhancing quality of data center 48 4.3.2.3 Unifying marketing activities in all branches of LienVietPostBank 49 49 49 CONCLUSION 50 REFERENCES 52 TABLE OF ABBREVIATIONS Agribank Vietnam Bank for Agriculture and Rural Development Forex Foreign Exchange ICC International Chamber of Commercial LPB LienVietPost Joint Stock Commercial Bank L/C Letter of Credit SWIFT Society for Worldwide Interbank Financial Telecommunication UCP Uniform Customs and Practice for Documentary Credits USD United States Dollar Viettinbank Vietnam Joint Stock Commercial Bank for Industry and Trade TABLE OF FIGURES i Figure Title Page Figure 1.1 LienVietPostBank’s profit before and after tax (2008-2011) Figure 1.2 Total asset of LienVietPostBank from 2008 to 2011 Figure 2.1 The procedure of a remittance 11 Figure 2.2 The procedure of an open account 13 Figure 3.1 Revenue from international payment methods (2009-2011) 35 Figure 3.2 Contribution of each international payment method (2009-2011) The operation of export L/C in LPB-Dong Do Branch 36 Quantity and revenue of Import and Export L/C (2009-2011) 38 Figure 3.3 Figure 3.4 37 TABLE OF DIAGRAMS Diagram Title Page Diagram 2.1 The process of L/C in bank available with Issuing Bank 21 Diagram 2.2 The process of L/C in Bank available with Nominated Bank 24 EXCUTIVE SUMMARY ii The past few years have seen a dramatic decrease in trade barriers and a huge growth in international trade in Vietnam To secure international payment transactions, Documentary Letter of Credit appears to be the most effective and appropriate option for both importers and exporters This tool of payment always holds a crucial role in the total international payment operation of commercial banks Reducing risks from international payment activities, especially by using L/C terms, may benefit LienVietPostBank-Dong Do Branch greatly Not only can the Department of Customer be sure of its safe operation, but the whole bank can also boost its reputation in the field of banking For this reason, L/C should be given more concentration, and ways to reduce its possibility of risks must be studied in detail The real situation of the bank as well as its likelihood of risks in using L/C terms is analyzed basing on the data and documents supplied by the bank during the researcher’s internship program, her personal observation and other reference sources, such as reference books and other online searching engines The purpose of this report is to analyze the current situation of L/C payment services at LPB-Dong Do Branch from 2010 to 2012 and then propose a number of solutions to improve the quality of the services This dissertation is divided into four main chapters: Chapter I: Introduction This chapter presents a brief overview of LPB-Dong Do Branch establishment and main operation The author also introduces some general information about international payment by L/C at LPB-Dong Do Branch Chapter II: Theoretical framework This chapter will provide readers with an essential background related to L/C payment Chapter III: Analysis and Findings In this chapter, the current situation about the effectiveness of LPB-Dong Do Branch’s L/C payment services within years will be analyzed and evaluated At the same time, limitations and causes will be drawn out Chapter IV: Recommendations The final chapter is supposed to give some solutions to reduce risks in using L/C payment services The analysis of data revealed main findings as follows: iii The newly-established LienVietPostBank has seen continuously increasing contributions of L/C term to the total revenue of the bank However, its role seems to be modest and requires more concentration of the bank’s leaders in the coming years The operation of L/C payment at the Dong Do Branch of LienVietPostBank may face some risks The risks come from internal factors, such as its inadequate staff’s performance and experience, or external factors like its customers and other socioeconomic environment On the basic of these findings, several solutions have been recommended for LienVietPostBank to limit risks of L/C payment services as well as to increase the Bank’s competiveness in coming years The Bank should take some steps to improve its staff’s performance and its technology In addition, watchful precaution is necessary in the process of assessing customers’ strength and studying contract terms iv attention to eliminate any possibility of risks because more contracts go along with increasing risks Studying data from export and import L/C in recent years at LPB has proved the continuous development trend of international payment by using L/C Obviously, import L/C is much profitable than export L/C derived from Vietnamese practice The rapid growth of domestic industries calls for great amount of fuel, material and machinery The increased demand for imported goods is good chance for LPB to serve as advising bank for Vietnamese importers To summary, the achievement of LPB in the international payment, especially import L/C is rather modest in term of both contract and revenue in comparison with other banks Although Import L/C is a lucrative field, the activities of this type of L/C face fierce competition from bigger names as Vietcombank, Viettinbank and so on Being a new bank, LPB needs more time to broaden his brand name in this market Much more should be done if LPB is ambitious to become one of a leading bank in international payment 3.1.5 Reality of unsettled L/C Although L/C is regarded as a preferable method, it does not mean that risks are eliminated totally There is possibility of risks at any step of L/C process In reality, LPB has faced unsettlement of L/C in some cases Since the number of export and import L/C are relatively small, the number of unsettled L/C seems to be inconsiderable However, studying unsettled L/C is necessary to provide a good measurement of losses and anticipate possibility of risks in coming years In 2010, there was no signed export L/C at Dong Do Branch that means export L/C avoided unsettlement while import had 30 signed contracts and three unsettled L/C In the next years, the unsettled contracts continuously increased The second year of operation in international payment, branch faced up to unsettled import contracts and two unsettled export L/C Similarly, the situation is recurrence in 2012 with export L/C while import L/C went down with only four unsettled L/C 39 3.2 Risks and reasons for risks in using L/C at LPB-Dong Do Branch Under the light of basic theories that have been studied in chapter 2, this section is spent to study real cases at LPB-Dong Do Branch Accordingly, LPB can never make sure that all risks are completely removed in such complicated process like L/C's procedures 3.2.1 Reasons for ethical risks In LPB, an ethical risk is one of the risks deriving from customers Most losses are the results of customer's purposeful fraud without the bank's anticipation Customers might not want to pay for the branch and they can give reasons to reject payment and put the branch into difficult situations The root cause of the ethical risks is that information is incomplete or inaccurate In addition, the characteristic of L/C method is that it mainly bases on the presentation of documents, not the goods That would have created openings for some fraudulent individuals The first kind of fraud is non-existing exporters In the history of international payment has witnessed many cases of non-existing exporters This means funds are still transferred to fraudulent organization but no goods are available Originally, the root of risks lies in the nature of L/C transaction mainly basing on the presentation of documents In other words, the only and main condition for the payment is submission of documents Consequently, without careful check from staff, the false documents may be submitted As the results of failure of comprehensive documents checking and hasty payment is huge losses to the bank The second kind of fraud is the deceiving arrangement by the exporters and importers The importers can give any reason to reject payment based on any gaps in terms and conditions of the trade contract Taking the role of issuing bank, Dong Do Branch may face unsettlement of payment in case of any error in the process Even when laws and legislation can serve as the last resort in such cases to reduce losses, the bank's reputation and its smooth operation may be partly threatened 3.2.2 Reasons for technical risks Theoretically, technical risks may arise from any parties involved in an L/C due to its complication and inadequately-trained staff Some failure cases in LPB have suggested three main sources driving to technical risks 40 Firstly, reality of poorly-qualified workforce of import and export business poses great possibility of risks for LPB because of deficient knowledge of international standards in L/C procedures Secondly, the partner banks can force LPB to suffer losses in a similar way to that of the exporters and importers businesses when requirements are not strictly respected No one can assure the carefulness and perfection in dealing with L/C from the partner bank However, if the mistakes come from the partner bank, not LPB’s operation, the banking making mistakes must be responsible for their failure Although LPB not have to make compensation in this case, their earnings from such contract must be threatened Lastly, technical risks can be generated from branch itself The branch with its experience of more than three years can hardly meet requirements of L/C process which requires high preciseness and wise judgment 3.2.3 Reasons for political and legal risks When a bank joins international payment activities, it must face differences in political and legal environment in other countries from that in its border LPB and Dong Do Branch is not an exception Such factors may be transformed into huge losses when conflicts come up The first point of concern refers to any unexpected changes in political upheaval including adjustment in monetary policy, limits on foreign transfers, revolution in trade policy Moreover riots or civil wars may cause damage to goods and unexpected settlement Recent years, there is a fact that many LPB's international partners are located in many countries with high risks of economic and politic turmoil, such as the USA and China Another possibility of risks comes from legal factors The bank will be put in disadvantage when problem arise without legal understanding Moreover, Vietnamese businesses are hardly competent enough to win international commercial disputes To say about Vietnamese legal environment, Cao Bá Khoát stated that Vietnamese legal environment is complex and at low level of development compared to other countries in Asia These disadvantages may brings chances for the fraudulent businesses and create threat to the security of LPB's operation in general, Dong Do Branch in particular 41 3.2.4 Reasons for exchange risks In recent years, circumstances of uncontrolled floating foreign exchange presents a threat of risk for commercial bank in international trade Dong Do Branch has suffered from losses in some case because of unpredictable FX For example, when the applicant makes a deposit with VND and decides to buy USD from branch to settle his payment In this case, the devaluation of VND against USD causes a loss for the bank because it holds the deposit of VND That is illustration for losses come directly In other hand, losses may come indirectly when the exporters and importers are firstly struck by the rise and fall of FX rate In fact, threats to either party may enlarge possibilities of risks for LPB when its customers lose paying ability Serving as a financial intermediary, LPB must take such factors into careful consideration to reduce the possibility of risks In the next chapter, the author will suggest more recommendations to limit risks in using L/C for LPB In summary, being the leading branch of a newly-established bank, Dong Do Branch has to carry out many responsibilities and face with many difficulties Particularly, the period from 2010-2012 has seen the tremendous financial turmoil when many countries stuck in crisis rising more and more disadvantages for LPB in operating international transaction However, through the great achievements in 2012, LPB staff's effort in approaching customers and expanding its new brand has been proved CHAPTER IV: RECOMMENDATIONS This chapter is to suggest several helpful steps to minimize the possibility of risks in using L/C based on previous theories on relevant information 42 4.1 Orientation of LPB-Dong Do Branch in international payment method Guided by the long-term strategy, LienVietPostBank will strive to become a leading retail and universal bank with the motto: “Now Everyone can Bank.” 2013 is forecasted to be a difficult year for Vietnam’s economy and banks in Vietnam will face various complex obstacles Nevertheless, it is also a year of many opportunities especially for those who act fast and have good vision This context emphasizes the essential contribution of international payments to archive targeted goal To enhance the quality of international payment methods used at LPB-Dong Do Branch, the bank offers international traders with consultation of services and simplification of the process without losing security for parties involved Continuously application of advanced technology also shows its efforts to become a desirable supplier of financial services Periodically, LPB issues documents of guideline to its departments which include clarification and modification of existing system in accordance with national and international regulations In conclusion, international payment is proved as a significant activity that bares profit for LPB in the context of globalization Therefore it deserves to receive great attention and investment 4.2 Recommendations to reduce risks in international payment using L/C in LPBDong Do Branch 4.2.1 Continuously improving operation level of international payment staff Operation level of international payment staff is one of the most important factors to ensure the smoothness, safety of international payment process Since poorlyqualified staff may be the root of risks, insurance of staff qualification and enhancement of their performance are necessary Competence of staff can be achieved through several following ways: 43 • Careful recruitment: Well-conducted recruitment helps the bank having more chances to employ a right labor whose proficiency is obvious Skillful staff is expected to be able to deal with complexity of international payment process in LPB without any mistakes • Effective training course: Continuous training programs help developing staff's performance Especially, in the context of the dominant trend of advanced technologies' application in the field of banking, the role of training course at LPB becoming more and more important • Organizing talks or seminars: Through seminar which held frequently, specialized knowledge and real experience can be exchanged among LPB staff • Sending officials abroad: Learning experience from countries with advanced banking system helps LPB staff improve their performance • Periodical examination: Purpose of examination which held annually is to find out staff without adequate qualification • Constant notification of adaptation of new regulations: LPB-Dong Do Branch needs to adjust its process continuously to conform to international regulations And the staff must be informed about adjustment in order to avoid technical risks Along with setting quality standards in operating, a worthy treatment should be done, comfortable and professional working environment should be created to motivate employees 44 4.2.2 Innovating technologies at LPB-Dong Do Branch In the operation of international payment, enhancement of payment technology will put a positive impact on the competiveness and effectiveness of LPB With the help of modern technologies, the process of L/C will be quicker, more accuracy and secure Although establishment of such technologies necessitates costs, this promises the bank bright prospect Below are several suggested technological applications: _ _ T24 core banking- TEMENOS: Temenos T24 is a complete front to back office, CRM and product lifecycle management software platform that powers your retail, corporate, wholesale, universal and private banking operations Running 24/7 and in real-time, T24 combines comprehensive business functionality with an advanced, secure, scalable and modular architecture that future-proofs your banking operations to meet the banking technology and market challenges of today and tomorrow CorePlus Micro Finance Software (MFS) - Probanx Micro Finance Software: CorePlus MFS opens the doors for MFIs to operate modern information technology with the capabilities and the power which was previously only available for larger banks After years of experience in banking software design and development, Probanx has repackaged the latest release of our flagship retail banking solution CorePlus to distribute it as a MFS version at a very competitive price 4.2.3 Improving internal supervision As presented in previous chapter, in LPB-Dong Do Branch has staff that specializes in checking such L/C processes as establishing, funding and settling 45 payment The direct superiors and director of branch are responsible of authorizing the paper The internal supervision is enhancing in branch to reduce the possibility of risks 4.2.4 Perfecting data center A hasty decision of issuing an L/C or acceptance of payment can be a fatal mistake in case of lack of information In addition, the assessment of submitted documents can be hardly performed without enough information of LPB’s partners For this reason, perfecting a data center is required A data canter brings information about organizations and institutions timely and correctly A data center should be employed three suggested measure: maintaining, testing and modernization in order to enhance its reliability Maintaining: maintaining a data center is a complex task which required the contribution from well-trained professionals to keep operation running smoothly The possibility of malfunction can be increased without constant maintenance Testing: through testing, defects are recognized and risky situation is prevented Modernizing: modernized equipment help development of the whole data center concluding gathering, analyzing and delivering information 4.2.5 Diversifying the using in types of L/C Flexible choices of different L/C types allow LPB and its customers to access to a wide selection The characteristic of the contract and the current situation have great impact on the agreement of L/C types Diversifying the use of L/C types can also lessen possibilities of risks when the type of L/C with more security terms for bank is applied 46 4.2.6 Continuously raising capital First of all, enhancing capital rising is the primary goal of every development strategy of commercial banks Rich and stable sources of capital make sure of the banks’ liquidity, so ability of financing international transaction is increased Large and steady source of capital will be a good platform for further development of the branch in proving services to customers both in quantity and quality 4.2.7 Expanding marketing activities For any business operations, customer will always be a determining factor to the existence and development And banking operations in general or banking activities in LPB-Dong Do Branch are no exception to that rule, especially in the market economy and fierce competition today The marketing activities should be given more attention by branch to differentiate it from other banks Several ways are suggested below: • Establishing the marketing department to contact regularly • and understand customers’ need Enhancing advertising activities and marketing on the mass • media to attract customers who have demand in international transactions Building a flexible price policy Price (interest rate • financing, payment fees) is a direct factor affecting customer’s demand for export financing In the context of fierce competition, the branch needs to offer affordable policies for each object, each type of services Conducting a serious PR strategy to differentiate it from other banks 47 4.3 Recommendations for other parties to enhance using L/C 4.3.1 Recommendations for the State Bank of Vietnam 4.3.1.1 Flexibly implementing national monetary policies In the context of unstable situation in national and international market, flexibility in implementing national monetary policies is required Suitable policies motivate international transactions and create favorable conditions for banks in the field of international payment 4.3.1.2 Improving inter-bank foreign currency market State Bank needs to focus on perfecting the inter-bank foreign currency market to establish foreign exchange market in Vietnam The diversification of the currencies on trading market and forms of trading are two main important conditions for bank to expand business operations in foreign currency, import and export payments and meet customer demand in the market economy 4.3.2 Recommendations to LienVietPostBank – headquarter 4.3.2.1 Developing correspondent banking system The consolidation and development the correspondent banking network are extremely important for banks in the present day due to the large expansion of foreign trade relations A wide correspondent banking system will enable LPB to implement international payment smoothly, fast and accurately without implementation through other intermediary banks 4.3.2.2 Enhancing quality of data center The role of data center should be highly valued, and its quality needs constantly maintaining and modernizing Increasing quality of the data center helps provide financial and credit information of both domestic and foreign businesses When such requirements are met, risks in international payment seem to be far away 48 4.3.2.3 Unifying marketing activities in all branches of LienVietPostBank Marketing activities should be consistent throughout the branches of LPB to attract more clients in systematic and coordinated policies and avoid conflict within the LPB If only a bank of LPB in an effort to develop marketing activities, the result may not be high due to limited resources LPB should have the proper policies to ensure the marketing activities which will offer the highest efficiency for all branches Additionally, business strategies specific for each region and area should also be explored, built and identified 49 CONCLUSION The global trend of continuously increasing integration opens a wide window for international trade Therefore, exportation and importation among countries are strongly promoted This reality emphasizes the important role of credit institutions which becoming bridges between imports and exports In detail, the smoothness of international transactions depends greatly on the international payment method which is the way money and funds are transferred among parties However, international transaction may lurk implicit risks Therefore, safety and guarantee of transactions become the first priority for international traders The efficiency of L/C method in international trade has been proved through practices and previous experience Commercial bank’s role in L/C transactions is more and more important With the participation of commercial bank, L/C transactions are guaranteed for the smoothness and safety Being financial intermediaries, the banks must consult their customers about steps of an L/C process and anticipate any risks for parties involved in transaction LienVietPostBank-Dong Do Branch has joint the playground of banking services for only several years, but its development cannot be denied Nevertheless, this period requires more caution than ever before For this reason, current situation at the bank should be studied to anticipate possibility of risks With the aim of helping branch to prevent risks in international payment in using letter of credit, the author has carried out this report In this report, the real situation in international payment by L/C has been deeply analyzed and a number of practical solutions to limit risks have also suggested The author hopes that with options and recommendations made above, the report will be a practical reference supporting commercial banks in general and LienVietPostBank-Dong Do Branch in particular to improve efficiency in international payment method by L/C in the context of current integration Because of the complexity of the field and time limitation, shortcomings of this report is unavoidable The researcher would like to receive contributions and guidance from reader to better this report 50 APPENDIX Income statement of LienVietPost Joint Stock Commercial Bank (2010-2012) Unit: VND Million No I II Items Interest and similar income Interest and similar expenses Net interest income Fee and commission income Fee and commission expenses Net fee and commission (expenses)/income III 2011 2,489,081 (1,264,774) 1,224,307 43,381 (10,646) 32,735 2012 5,193,132 (3,135,436) 2,057,669 39,314 (79,763) (40,449) Net gain from trading of foreign 22,804 currencies 49,513 103,318 IV Net loss from trading of securities 5,693 held for trading (222) - V Net (loss)/gain securities 17,239 23,155 VI VIII IX Other income Other expenses Other income – net Operating expenses Profit before allowance provision expenses 4,391 (447) 3,944 (511,106) 816,410 43,458 (39,827) 3,631 (939,539) 1,161,475 28,542 540,053 540,503 1,607 (57,510) 758,900 (76,000) (76,000) 758,900 1,871 (75,194) 1,086,281 (109,253) (109,253) 1,086,281 1,776 1,607 1,510 1,679 X XI XII XIII XV from 2010 1,108,678 452,177 656,501 16,552 6,164 10,388 investment 185,870 10,234 911 9,323 322,018 and 568,595 Allowance and provision expenses Profit before tax Income tax expense – current Total income tax expenses Net profit after tax Basic earnings per share (VND/share) XVI Diluted earnings per share (VND/share) REFERENCES Vietnamese Đinh Xn Trình (2009) Giáo trình tốn quốc tế, 323-366, NXB Thông tin truyền thông, Hà Nội Nguyễn Văn Tiến (2008) Cẩm nang tài trợ thương mại quốc tế, 384-435, NXB Thống Kê, Hà Nội Nguyễn Văn Tiến (2011) Quản trị rủi ro kinh doanh ngân hàng, NXB Thống Kê, Hà Nội Trần Hoàng Ngân (2001) Giáo trình tốn quốc tế, 122-156, NXB Thống Kê, Hà Nội Trầm Thị Xuân Hương (2006) Thanh toán quốc tế, NXB Thống Kê, Hà Nội Nguyễn Thị Thu Thảo (2009) Nghiệp vụ toán quốc tế, 213-237, NXB Tài chính, Hà Nội Nguyên Hằng (2011) Ngân hang rủi ro khoản, retrieved from: http://cafef.vn/tai-chinh-ngan-hang/ngan-hang-va-rui-ro-thanh-khoan2011041808562843ca34.chn Nguyễn Thanh Hải (2008) Những rủi ro thường gặp phịng ngừa, giải pháp tốn L/C, retrieved from: http://thanhai.com/2008/03/14/nh%E1%BB%AFng-r%E1%BB%A7i-ro-th %C6%B0%E1%BB%9Dng-g%E1%BA%B7p-va-nh%E1%BB%AFngphong-ng%E1%BB%ABa-va-gi%E1%BA%A3i-phap/ Cao Bá Khoát (2008) Thông điệp từ môi trường pháp lý, retrieved from: 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http://www.bis.org/publ/econ36.pdf Eitaman, K D (2009) Multinational Business Finance Everest Publishing House Hinkelman, G E (2003) A Short Course in International Payment (2nd Edition) World Trade Press, California USA International Chamber of Commercial (2007) Uniform Customs and Practice for Documentary Credit, ICC Publication No.600 Rochet, C J (1996) Controlling risks in payment system, Ohio State University Press, USA The Bank of Nova Scotia (1999) Documentary Letter of Credit- A Practice Guide, 7-17, Canada Basel Committee on Banking Supervision (1999) Principles for the Management of Credit Risk - consultative document, Switzerland ... situation of international payment by using L/C in LienVietPostBank- Dong Do Branch? What kind of risks does LienVietPostBank face? What solutions should be done to limit risks from using L/C at LienVietPostBank? ... international payment using L/C in LPB -Dong Do Branch 43 4.2.1 Continuously improving operation level of international payment staff 43 4.2.2 Innovating technologies at LPB -Dong Do Branch. .. quantity That motivates me to study the topic related to L/C method and risks in using it Rationales In banking operations, international payment in general and payment by L/C in particular is an independent