ACKNOWLEDGEMENT First and foremost, I would like to express my gratitude to all those who gave me the possibility to complete this report I want to thank the teachers from Faculty of foreign languages – Department of Business English in National Economics University for giving me permission to commence this report in the first instance and to the necessary research work I am deeply indebted to my supervisors Ms … who gave materials, supported, stimulated suggestions and encouragement, helped me in all stages of this research and writing of this report Secondly, I would like to send my appreciation to staff of VPBank branch in Nam Dinh province for their support during my internship there Without their facilitation, assistance and suggestions I would have not finished my internship report successfully Also, my classmates from class Business English A course 50 supported me a great deal, and I want to thank them for all their support, cooperation and valuable suggestions I would like to express my sincere appreciation to other fellow students of the English Department for references Finally, I can not fully express my gratitude to all the people whose direct and indirect support helped me complete my assignment in time i TABLE OF CONTENTS ACKNOWLEDGEMENT .i EXECUTIVE SUMMARY vi INTRODUCTION CHAPTER 1: INTRODUCTION OF VIETNAM PROSPERITY BANK 1.1 Overview of Vietnam Prosperous Bank 1.1.1 Formation and developing progress 1.1.2 Organizational structure 1.1.3 Business status from 2008-2011 1.1.4 Introduction of VPBank Card Center .10 1.2 Status of card service development at VPBank branch in Nam Dinh province 12 1.2.1 Card services business status 12 1.2.2 Technology and human resource in card service development at VPBank branch in Nam Dinh province 13 1.2.3 Marketing application in card service development at VPBank branch in Nam Dinh province 15 1.2.4 Coordination and inspection in card service development at VPBank branch in Nam Dinh province 16 1.3 Introduction of VPSuper Card 17 CHAPTER 2: OVERVIEW OF CARD SERVICE BUSINESS DEVELOPMENT IN COMMERCIAL BANK 19 2.1 Concept, nature, role of card service business in commercial bank .19 2.1.1 Concept of card .19 2.1.2 Concept of card service business 20 2.1.3 Role of card service business in commercial bank 21 2.2 Basic content and system of evaluating criteria for card service business development in commercial bank .22 2.2.1 Basic content of card service business development in commercial bank22 2.2.1.1 Issuance .22 2.2.2 System of evaluating criteria for card service business development in commercial bank .25 ii 2.3 Factors affecting the card service business development in commercial bank 27 2.3.1 Habit of using card in the economy .27 2.3.2 The guidelines and policies of the State management agency for card business 28 2.3.3 Technology development .28 2.3.4 The quality of client evaluation 29 2.3.5 Marketing activities .29 2.4.6 Human resource .29 2.4 Experiences of some commercial banks in card service business development 30 CHAPTER 3: RESULTS AND LIMITATIONS IN VPSUPER CARD SERVICE DEVELOPMENT AT VPBANK BRANCH IN NAM DINH PROVINCE 32 3.1 Results of VPSuper card service business 32 3.2 Limitations in VPSuper card service development at VPBank branch in Nam Dinh province .34 3.2.1 Limited using-card subjects 34 3.2.2 Small card payment environment 34 3.2.3 Using cash habit in community 34 3.2.4 Risks arising form card issuance and payment .35 CHAPTER 4: SOME SOLUTIONS TO ENHANCE AND DEVELOP VPSUPER CARD BUSINESS AT VPBANK BRANCH IN NAM DINH PROVINCE 36 4.1 Business orientation at VPBank branch in Nam Dinh province 36 4.1.1 Card service competition between commercial banks in Nam Dinh province 36 4.1.2 Orientation of card service business development in the future of VPBank branch in Nam Dinh province 39 4.2 Solutions to enhance and develop VPSuper card business at VPBank branch in Nam Dinh province 39 4.2.1 Enhance card service Marketing 39 4.2.2 Develop distribution channel 42 4.2.3 Unite with other banks 43 iii 4.2.4 Develop card service products .43 4.2.5 Improve human resource quality 44 4.2.6 Modernize technological facilities 45 4.2.7 Enhance management and risk prevention .45 4.2.8 Develop relationship with economic and financial organization 46 4.3 Recommendation to enhance and develop VPSuper card business at VPBank branch in Nam Dinh province 46 4.3.1 Recommendation to State policies 46 4.3.2 Recommendation to State Bank and related ministries 47 CONCLUSION 48 APPENDIX 49 REFERENCES 50 iv LIST OF ABBREVIATIONS VPB: Vietnam Prosperity Bank Agribank: Vietnam Bank for Agriculture and Rural Development Vietinbank: Vietnam Joint Stock Commercial bank for Industry and Trade VCB: Vietcombank – Joint Stock Commercial Bank for Foreign Trade of Vietnam BIDV: Bank for Investment and Development of Vietnam VIB: Vietnam International Bank Techcombank: Vietnam Technological Commercial Joint-Stock Bank ANZ: Australia and New Zealand Banking Group Limited POS: Point of Sale ATM: Automatic Teller Machine CAU: card-accepting unit LIST OF CHARTS Chart 1: VPBank’s organizational Structure Chart 2: Total assets of VPBank from 2007 to 2011 Chart 3: Net income before tax of VPBank from 2007 to 2011 .9 Chart 4: VPBank Card Center’s organizational structure .11 Chart 5: Debit card number of VPBank branch in Nam Dinh province 13 from 2008 to 2011 13 Chart 6: Customer evaluation about awareness of VPSuper card 32 in February 2012 32 LIST OF TABLES Table 1: VPSuper card Growth in VPBank branch in Nam Dinh province 33 v EXECUTIVE SUMMARY In the process of commodity exchange, monetary with intermediary role has facilitated continual transaction, promoted the development of production and commodity circulation Social production process continuously takes place and constantly expands with many diverse complex relationships Along with the characteristics and requirements of different industries, it requires a good payment organization process for solving these relationships without affecting the production process when production develops in high-level Therefore, it needs to have a suitable payment method to the open world economy And payment card was born to satisfy the development of goods production and circulation Nowadays the bank card market in Vietnam continues to strongly grow Along with the continuous development of science and technology, the needs of customers are also increasing Understanding this trend, to attract customers, the domestic banks increasingly pay more attention to improve services, particularly service facilities associated with the card Now, the card is not merely a method to withdraw cash, it becomes multi-purpose facility which enables users to access many transaction services of the bank The Vietnam Prosperity Bank (VPBank) in recent years also actively develops various types of card services, including VPSuper card During the time studying in VPBank branch in Nam Dinh province, I have made the report focusing on analyzing the real situations of VPSuper card business development and recommending improving this kind of business in the bank The report is divided into four chapters The first chapter introduces VPBank and the card development in general The second chapter builds an overall theory of card and card business development Continually, the third chapter explains the analysis of VPSuper card development in VPBank branch in Nam Dinh province And lastly, chapter four consists of some recommendations suggested to help VPBank Nam Dinh in particular and the all VPBank system in general to enhance its competiveness in developing card services vi INTRODUCTION Introduction of the research topic and rationales Vietnam is now on the road to industrialization and modernization, the achievements in the renovation of the country has become the foundation for the next development step of Vietnam in the future, to gradually prove its standing in regional and international markets This change has attracted many investors as well as international visitors coming to Vietnam, and it offers a good opportunity for Vietnam to trade and expand relationships with other countries all over the world Contributing to the country's efforts, the banking sector also extended credit relations with customers, strengthened linkages with other regional and international banks, developed modern products and services to meet the diverse needs of customers Since participating and integrating in the global economy, the number of foreign visitors to Vietnam is now on the rise, so that the demand for non-cash payment becomes more and more imperative Perceiving these demands, the banks have quickly researched and invested in card product development - a modern and popular payment method in the world Particularly to Vietnam Prosperity Bank (VPBank), card service development has become the strategic objectives of the bank in the recent years With the initial success such as launching the most modern products, creating the largest card alliances with the largest card accepting place nationwide and linking successfully with many other banks, the card payment method of VPBank has step by step confirmed its stable position on the market However, due to various effects within the banking system, the efforts of banks in improving the operation of card issuance and payment as well as fierce competition among banks to gain card market share, card issuance and payment activities of VPBank are now facing to many difficulties Decentralization of card payment services towards different groups of customer is a difficult problem requiring the answer set for VPBank After the theoretical research at VPBank branch in Nam Dinh province, training course in professional skills about card, along with the fact-finding process for card market in Nam Dinh province, I would like to make a report on “Some solutions to enhance and develop VPSuper card business at VPBank branch in Nam Dinh province” Research questions The report will be analyzed to answer these questions as follows: What is the real status of VPSuper card service at VPBank branch in Nam Dinh province? What are the limitations of VPSuper card development at VPBank branch in Nam Dinh province? How will VPSuper card business be developed at VPBank branch in Nam Dinh province? Methodology The study is primarily based on the knowledge gained from figures and data of VP Bank branch in Nam Dinh province With these data, I applied some methods of studying report in my research such as figures collection, comparison, and data evaluation combining with secondary data from Internet and reference books Moreover, the output analysis applied for the VPBank card trading This analysis tells VPBank card payment’s status Also, pie chart and table chart analysis are used to further clarify this topic Scope of the study Banking and Finance sector includes various fields with broad knowledge, so in the limitation of about 30 pages graduation report, I cannot cover all issues related to this In the scope of research, I just focus on analyzing the real status of VPBank Nam Dinh branch’s VPSuper card, therefore propsoing some solutions to improve the bank’s competitiveness in Nam Dinh market CHAPTER 1: INTRODUCTION OF VIETNAM PROSPERITY BANK 1.1 Overview of Vietnam Prosperous Bank 1.1.1 Formation and developing progress Vietnam Prosperity Bank (VPBank) was established under License No 0042/NH-GP, issued by the State Bank on 12 August 1993, and License No 1535/QD-UB granted by Hanoi People’s Committee on September 1993 The Bank came into operation since September 10, 1993 The main operating functions of VPB include some following activities: - Raising short, medium, and long term funds in the forms of VNDdenominated term and non-term deposits from organizations and individuals - Receiving trust funds for investment and management from domestic organizations - Borrowing capital form the State Bank and other financial institutions - Lending short, medium and long-term loans to organizations and individuals - Discounting notes, bonds and other commercial paper - Co-investing, forming joint ventures, or acquiring shares in accordance with current regulations - Providing payment services for customers - Trading foreign exchange, gold and international payment markets, raising capital from various foreign sources, providing other banking services related to foreign entities where permitted by the State Bank - Brokering and consulting in stack market investment, providing securities custody and underwriting and cooperating financial advisory services - Providing services in the fields of investment The chartered capital when VPBank was established was 20 billion VND Then, because of developing demand, VPBank has increased chartered capital many times In August 2006, chartered capital was raised to 500 billion VND, and until July 2007, it reached around 1,500 billion VND In the establishment and development process, VPBank has undergone a lot of noticeable milestones: - From 1994 to 2004: this was the period when VPBank actively expanded its network and developed news products, in order to acquire market share and increase customers Many of VPBank branches and transaction offices were started up during this period - 2005: VPBank designed a new logo and brand-recognition system with two main colors being green and bright red Changing logo to the new one was a strategic transformation, starting an important development process that geared VPBank to enter a new phase with many professional and modernized improvements - 2006: It was an exciting year with VPBank – a turning point with many remarkable events In February, the headquarter was relocated to the building at No Le Thai To strt Hoan Kiem Dist Sprawling spaces at the most esthetic place in the capital offered VPBank the best conditions to business in the most effective way, and to solidify trust from the customers and partners In March, VPBank formally chose its strategic shareholder which was a foreign financial institution – the Singaporean OCBC Bank And in April, VPBank bought the core banking system software (Core Banking T24 of Temenos from Switzerland) This was an important step moving forward in the banking infrastructure modernizing process Also during this year, 18 branches and transaction offices were opened - 2007: VPBank launched VPBank Platinum MasterCard, the first chip card in Vietnam - 2008: With the approval of the State Bank of Vietnam, VPBank increased its charter capital to 2,117 billion VND, with OCBC’s share position rising to 15% - 2009: VPBank signed a cooperation agreement with Prudential Vietnam under which the Bank became Prudential Vietnam’s official agent to distribute Bank Assurance products VPBank, in cooperation with OAAG (Singapore), unveiled a golf program for holders of VPBank MasterCard Platinum - 2010: VPBank was granted State Bank of Vietnam approval to change its name from Vietnam Joint Stock Commercial Bank for Private Enterprises to Vietnam Prosperity Joint Stock Commercial Bank VPBank introduced a new logo and brand identity With these changes, the Bank has stepped into a new phase of development with approaches better suited to current economic conditions VPBank was granted State Bank of Vietnam approval to change its name from Vietnam Joint Stock Commercial Bank for Private Enterprises to Vietnam Prosperity Joint Stock Commercial Bank VPBank introduced a new logo and brand identity With these changes, the Bank has stepped into a new phase of development with approaches better suited to current economic conditions exploited much, and this is a great opportunity for foreign companies to issue card, because payment cards are used much more and more in the shopping centers and on the purchase online network The research shows that Vietnamese people always keep positive attitude in accepting the use of payment cards, although cash still plays a role as a main payment method The number of credit cards, debit cards and international cards issued in Vietnam is growing exponentially In 1996, in Vietnam market, there were only 400,000 cardholders, but by 2011 this figure turned to 34.6 million cards In the past few years, Vietnamese people have also become acquainted with the concept of borrowing money from banks to consume It proved that Vietnam is a potential market for advanced financial products More importantly, when Vietnam economy develops, it will form parts of the rich in society As economists predicted, by 2015 there will have over a quarter of the population earning 12 million VND per month, and this is a type of customer that all banks are targeting to conquer In fact, all banks realize the potential of this market and actively invest technology in their Bank Card Center to create versatile utilities for card users Besides, the increase of the value of included utilities, lower fees, simultaneously multiple payment requirement serve, association and partnership payment such as gasoline, electricity, water, telephone, ticket payment, etc has attracted people to use the card services; thereby, it created intense competition among banks in the development of market share  Challenge The above opportunity is clear, if VPB quickly recognizes and seizes this, it will create the momentum to develop customers participating in the payment service But opportunity also comes with the challenge, whether these challenges will be obstacles or pressure on the development path of VPB - Competition: In banking competition, the bank which has best technology investment, good quality services, various utilities and low fees will seize the most of market share Big banks like Agribank, VCB, Vietinbank which have the advantage of scale, capital, and technology will always overwhelming in this competition Therefore, if VPBank cannot plan its own path to aim, it will not be able to compete with other banks and win in getting customer fight 36 - Customer care: In the card business, the incidents that banks often suffer such as loss of money in the account, unit conversion error, and electric leakage at the ATM affect strongly the trust and feeling of customers VPBank during the operation also has met these troubles, however by defining the strategy since foundation, VP Bank always fixes the errors in the shortest time and has a team of call centre supporting enthusiastically to the customer - Promotion and communication strategies: In the bank card business, it is necessary to research customer needs, thereby offer products that meet these needs, promote to attract customers known to the bank's products Currently, the advertising information on features and utilities of the cards are not widely advertised to consumers, and many customers not even know about their cards The introduction of effective distribution channels and communication strategies to the consumer put the banks in facing with a big challenge - Risk when participating in the card market: Being a product with high technology related to financial sector, card is always attacked by criminals Therefore, the requirement of a tightly controlled system has been put on the top in the card operation 4.1.2 Orientation of card service business development in the future of VPBank branch in Nam Dinh province VPBank aims to build a modern card system, including most of the business cards on the market in the country: - Debit card - Credit card 4.2 Solutions to enhance and develop VPSuper card business at VPBank branch in Nam Dinh province 4.2.1 Enhance card service Marketing Banking activities are raising strong competition with the participation of many state-owned banks, joint-stock banks and foreign banks Under the circumstance, VPBank should pay more efforts to reach customers and introduce products and services, focus more on marketing programs, advertisement, and promotion 37 Besides, VPBank should enhance the training of professional sales team in charge of the card or cooperation with service companies which have professional sales team, appropriate sale process, strong experience in carrying on marketing programs, and collecting customer information 4.2.1.1 Improve marketing and advertisement effect Activities to introduce products and services to customers along with effective customer care methods play a very important role in attracting customers using the bank card services  Advertising activities on the mass media The mass media have a tremendous advantage in promoting the products of the units because of the huge number of customers and audiences VPBank should take advantage of the strengths of mass media to conduct advertisement, marketing; and it will bring about practical results On the basis of the access to audiences of the media, VPBank also needs to improve and diversify the forms of advertisement in newspapers, on television; build the trailer about products and services of the bank or write articles about bank monthly; combine with television, newspaper to conduct banking service advisory programs  Advertising banner Banners and campaign for the issuance of new products should be consistent and uniform in the entire system to maintain nice images of VPBank in general on all operating points  Development of various types of brochures and leaflet of products and services VPBank should develop the professional brochures and leaflet in a systematic way, each activity in the bank will attach with a professional leaflets detailing specific instructions and requirements, stating the rights of customers Since then, VPBank can develop guidance leaflets to become banking transaction handbook for customers, widely publish them to show the bank's attention to the interests of customers as well as serve the needs of information about bank Customers will enjoy joining in bank’s services when knowing how these activities are implemented and which benefits they will receive; thereby they will become active communicators in introducing products and services of the bank 38  Advertisement on the Internet Nowadays, each bank has its own website to help customer easily access to banking products and services Therefore, setting up an attracting and easy-to-use website is one of crucial tasks to decide VPBank’s success in the competition between card issuing banks 4.2.1.2 Develop distribution network and cardholder  Development of distribution network To develop the non-cash payment services of the bank, VPBank needs to build the network of ATM and POS In which, the POS plays an extremely important role If the POS is available everywhere, accepts payment for all spending and consumption of all commodities and goods, people will increasingly understand the utilities of bank card services - At the head office: + Prepare all equipment and materials as well as machinery to promptly meet the needs of network development + Build the image synchronized to the ATM network and card-accepting units (color of uniform, design, etc.) by standardizing card service images of VPBank - At the branches: + Develop customer care program under the following subjects: cardholder, card-accepting units + Develop potential card-accepting units and efficient ATM place  Development of cardholder - Set up promotion and discount programs on the base of the link with reputable partners - Increase advertisement and promotion for card products, hold opening ceremony for new products - Combine with powerful partners to issue alliance card 39 - Complete a comprehensive marketing direction and implement regular customer treatment policies based on customer classification and key markets - Monitor and evaluate regularly customer service quality towards applying a standard quality management system (ISO) to customers Characteristics of banking activities in general are intangible, inseparable, instable, and unstored, therefore, ISO certification will be a concrete manifestation with the customer about the quality of bank activities 4.2.1.3 Build and develop VPBank brand Marketing activities have a great impact in building the VPBank’s icon to contribute to the socialization of the image, impression and reputation of bank for the purpose of competition The card service promotion of VPBank should have its own features differing from the cards of other banks In addition, VPBank should also pay attention to the business strengths of region to implement marketing activities to develop the bank's image through investing in the main manufacturing sector; thereby attractting potential customers from their initial business orientation 4.2.1.4 Select the target market and find out the appropriate policy VPBank needs to analyze in detail of various segments of the population and subjects of foreign residents and non-residents to find the group of potential customers, from that applying the appropriate marketing measures for the consumers who have strong financial resources 4.2.2 Develop distribution channel 4.2.2.1 ATM network development - Speed up the process of ATM system completion, first put about 20 machines into use in the main streets of Nam Dinh city - Accelerate the connection plan between system and the domestic and international card organization - Invest a number of tools to support ATM systems such as supervisory cameras or electronic diaries - Set up and manage logical and effective ATM network map 40 - Research to develop new products and services to most make use the available features and utilities of ATM system - Enhance the ATM control and evaluation to improve ATM-using performance 4.2.2.2 POS network development CAU network development plan of VPBank needs to focus on two different objects; one includes corporations, large store chains, large service distribution chains and the rest consists of individual customers, the small chain stores or service delivery chain  For large group or corporation VPBank should direct to the large corporations such as Vietnam Petroleum Corporation, telecommunications corporations, or the large service distribution companies such as Saigon Tourist travel company, Trung Nguyen Coffee, Highland Coffee, Nettra, Big C, Metro, Mai Linh Taxi which have many business establishments in many provinces and cities across the country These potential customers with the large scale will quickly help VPBank in promoting brand, and they will also be the pioneer in training people familiar with using payment cards However, signing contract with these units is not an easy task for VPBank because all banks are moving toward them with the same purpose So that, VPBank needs to self-evaluate the relationships, the ability to implement its decisions to focus resources, ensure the efficient investment principle The approach, negotiation and customer care require the unification; hence, VPBank should set up specific plans and solutions associated with each object  For individual customers, and small-scale businesses The access to these customers must be derived from the branch because it is a place understanding the customer and the local market the most Card center has to build approach process to the target customer, negotiation skills to train for the branch in the development of the CAU 4.2.3 Unite with other banks Currently, the banking sector appears more and more alliances between financial institutions and banks, creating fierce competition in the card-issuing 41 activity VPBank is not out of the game List of card alliance banks with VPBank is now up to the number of 27 and it will rise in the near future But at the present time, the bank card alliances with VPBank have still not opened a branch in Nam Dinh yet This is a weakness reducing competitiveness of VPBank in card activities In Nam Dinh province, it has just appeared only branch offices of large state-owned banks and some commercial banks such as Agribank, BIDV, Vietinbank, Maritimebank , PGBank, therefore making the alliance with these bank in the card issuance payment will be a big step in the development of VP Bank’s card services not only in Nam Dinh province in particular but also in the whole Vietnam in general 4.2.4 Develop card service products The development of products and services is crucial to card business because this is a prerequisite for customers to choose products and services of VPBank Also, the products and services provided to customers directly influence the development of VPBank’s card brand in particular, and VPBank brand in general For products and services are about to deploy: - When putting products into use, regularly review and estimate the service needs of customers to recommend appropriate upgrading activities - Learn from other banks which successfully deployed the product development process towards professionalization to ensure product supply service meet customer requirements and requirements of the market - Enhance connecting activities with domestic and overseas suppliers of products and services to offer benefits to consumers and increase the attractiveness of VPBank card services - Apply the appropriate fee, reduce or exempt certain types of fees such as verification, issuance for some objects with especially low-income like workers or students - Continually explore the utilities on the card with the slogan: always put the customer at the center of all policies and development strategies VPBank will continue to exploit existing technology platform, research market and needs of each customer group to design and put into use many products with high utility with the goal: To strive to become one of the strongest banks in the development of card 42 services, with diversified products, superior value, good service quality, and highly competitiveness However, to increasingly promote new products, VPBank should set up a comprehensive marketing direction Researching customer needs for products and services of banks and business development needs of clients, as well as introducing costs and risks of different types of products and services to customers will help VPBank show interest in learning needs and aspirations of customers, create close relationships between bank and customers 4.2.5 Improve human resource quality Card payment business activities are relatively new to commercial banks in Vietnam in general and to VPBank in particular, so staff training and development courses should focus on the following issues: - Organize, search for training programs about card activities; coordinate with domestic and international banks to provide training courses for staff to help them adapt to changes in the issuance of payment cards in the world; encourage experience exchange and enhancement the for staff about card - Increase training activities for CAU through the professional training program, the handbook, guiding book, etc - In addition, pay attention to human resource development through reward and discipline, appropriate remuneration policies to encourage staff continuously practice training and adhere to the bank for a long time - Hold professional exchange, review and respond to the problems - Further stabilize and strengthen organization and operating model of the card center in the future 4.2.6 Modernize technological facilities Good technology base is a priority for the development of products and services in general and card service in particular Modern technology will bring a lot of benefit to customer Therefore, VPBank needs to propose practical solutions to modernize card technology, create a solid foundation to develop in card service business 4.2.7 Enhance management and risk prevention 43 4.2.7.1 Ensure general security requirements It includes the following suggestions: - Comply with security in operation - Enhance inspection and supervision - Implement extraordinary and periodic reports - Manage and supervise the activities of technical management system 4.2.7.2 Limit risks in card service To limit the risks in card services, VPBank should focus on card issuance and payment security - Card issuance security: + Develop customer evaluating criteria, especially in the case of issuing credit cards to minimize the occurrence of bad debts, customers who cannot afford the payment + Develop criteria or support system to rate the reliance of customers for VPBank + Request for card issuance programs which can check customer information from the core banking system to limit teller in mistyping customer information - Card payment security: + Introduce and train CAU in preventing counterfeit payment card and invalid transactions along with the development of CAU + Classify CAU according to risk level; propose support development policy for each CAU + Set up targets and equip counterfeit card warning systems 4.2.8 Develop relationship with economic and financial organization Currently, the forms of capital management and salary payment to employees through personal accounts have become more and more popular and are being favored because of its advantages It is noted that this form is now applied by many large companies in Vietnam If VPBank seizes this opportunity with its potential to 44 attract large corporations to become traditional customers, it will be able to extend issuing card, especially domestic debit card 4.3 Recommendation to enhance and develop VPSuper card business at VPBank branch in Nam Dinh province 4.3.1 Recommendation to State policies The support of the State is an extremely important issue for all sectors and all levels When deploying card services, if VPBank can take the assistance from the Government in tax policies and law, this service will bring about positive results, contribute to develop society in the long term, implement stable monetary policy, and modernize banking technology The Government should apply strong measures, specific regulations which are suitable with the overall development of the economy for organizations and individuals Also, it should make policies to encourage agencies and organizations to pay for officials and employees via bank accounts, especially the units in the financial system such as tax, customs, insurance, etc In addition, the State should establish crime prevention agency about card When card crime is increasingly popular, card fraud forms have increasingly sophisticated and the damage to banks, consumers and the economy also grows The establishment of these agencies is very important in preventing and handling crime beyond the control of the bank Lastly, propaganda about payment by card should be carried on widely Nowadays, there are still many people who have never heard of the card, even many government officials with card in hand did not understand the characteristics and benefits of using payment cards Therefore, along with the efforts of bank, the State should organize extensive propaganda about the features and advantages of payment by card with the community 4.3.2 Recommendation to State Bank and related ministries State Bank plays a major role in shaping the overall strategy for commercial banks to carry on card business through solutions supporting commercial banks, promulgating policies, creating a legal framework, directly managing investment in building payment system among banks On the other hand, the relevant ministries such as Ministry of Public Security, Ministry of Posts and Telecommunications, Ministry of Finance should 45 cooperate closely with the State bank to study the issuance of legal documents to guide to handle specific cases related to payment by card and build a legal environment for the card development CONCLUSION Card is a modern and efficient non-cash payment; with the primacy it offers many benefits to the user as well as the banks The biggest success for the card market development is to contribute to limit the amount of cash in circulation, enhance the efficiency of State management But in current reality of Vietnam card market, the Government offices have still not paid proper attention to card services, the equipment investment and management system between banks are raising the inconsistencies, and also people still prefer to use cash in consumption Therefore, the incomplete card issuance and payment operation cannot be escaped and it is the task of all banking system This report “Some solutions to enhance and develop VPSuper card business at VPBank branch in Nam Dinh province” focused on theoretical issues as well as the results achieved in the development of card services, status of VPSuper card issuance and payment, the reasons for the lack of complete operation and VPBank Nam Dinh branch’s efforts to improve reality, thereby to propose some recommendations and solutions The report was written after the research of theoretical basis and practice in VPBank branch in Nam Dinh province However, because of time and knowledge 46 limitation in this field, the report may not escape from mistakes and limitation It is my great pleasure to receive all comments and contributions to improve my report 47 APPENDIX Key operation indicators Indicator Total assets 2007 18,137 2008 18,648 2009 27,543 Unit: Billion VND 2010 2011 59,807 80,665 Mobilized capital 15,448 15,609 24,444 48,719 67,287 Outstanding loans 13,323 12,986 15,813 25.324 36,194 Nonperforming loan ratio (%) Net income before tax 0.49% 3.41% 1.63% 1,20% 1,76% 313.5 198.7 382.6 663.1 1,060 Charter capital 2,000 2,117 2,117 4,000 5,050 Return on asset (ROA ) 1.80% 0.8% 1.3% 1,15% 1,12% Return on equity (ROE ) 17.63% 6.7% 13.9% 22,65% 27,49% TABLE A: Business status of VPBank from 2008 to 2011 (Source: VPBank’s annual report in 2011) 48 REFERENCES ENGLISH MasterCard International Incorporated (1997), An Overview of the Bankcard Industry, New York VIETNAMESE GS.TS Nguyễn Thành Độ, PGS.TS Nguyễn Ngọc Huyền (2009), Quản trị kinh doanh , NXB Đại học kinh tế quốc dân PGS.TS Hoàng Minh Đường, PGS.TS Nguyễn Thừa Lộc (2009) Giáo trình quản trị doanh nghiệp thương mại, NXB Lao động xã hội PGS TS Phan Thị Thu Hà (2006), Ngân hàng Thương mại, Nhà xuất Thống kê, Hà nội TS Nguyễn Minh Kiều (2008), Nghiệp vụ ngân hàng, NXB Thống Kê, TP Hồ Chí Minh PGS.TS Nguyễn Năng Phúc (2008), Giáo trình phân tích báo cáo tài chính, NXB Đại học Kinh tế Quốc Dân, Hà Nội PGS.TS Nguyễn Ngọc Quang (2011), Phân tích báo cáo tài chính, NXB Tài Chính, Hà Nội VPBank, (2011), Báo cáo kết kinh doanh thường niên 2011 VPBank Card Center (2011), Báo cáo hoạt động kinh doanh thẻ Nam Định 2011 Hiệp hội thẻ Việt Nam (2010), Báo cáo tổng kết hoạt động thẻ Việt Nam 10 Hiệp hội thẻ Việt Nam (2011), Báo cáo tổng kết hoạt động thẻ Việt Nam Website: http://www.vpb.com.vn/vi/khach-hang-ca-nhan/dich-vu-the http://www.vpb.com.vn/vi/gioi-thieu/cacsukiendangghinho http://dantri.com.vn/c25/s76-472436/de-nguoi-dan-hang-hai-mo-the-thanh-toanquoc-te.htm http://vietbao.vn/vn/lien-minh-the/ngan-hang-viet-nam-thinh-vuong/ 49 50 ... What is the real status of VPSuper card service at VPBank branch in Nam Dinh province? What are the limitations of VPSuper card development at VPBank branch in Nam Dinh province? How will VPSuper. .. management and risk prevention .45 4.2.8 Develop relationship with economic and financial organization 46 4.3 Recommendation to enhance and develop VPSuper card business at VPBank branch... 4.1.2 Orientation of card service business development in the future of VPBank branch in Nam Dinh province 39 4.2 Solutions to enhance and develop VPSuper card business at VPBank branch