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An Overview About Vietnam Joint Stock Commercial Bank For Industry and Trade
An Overview About Vietnam Joint Stock Commercial Bank For Industry and Trade
An Overview About Vietnam Joint Stock Commercial Bank For Industry and Trade
PREFACE
The purpose of the report is to describe my valuable experience
during the internship in Import Export Office of VietinBanks Main
Operation Center. This report is also to fulfill the requirement for my
Finance and Banking course in Foreign Trade University. For the
whole internship, I had opportunity to learn general operation
process in that Bank and to observe how banking officers perform
their duties day by day. Besides that, I was able to put my
theoretical knowledge into the real cases and gain a lot experience.
In the report, I intend to concentrate on analyzing the business
performance
of
the
whole
VietinBank
and
suggesting
some
payment,
money
transfer,
card
services,
local
and
omplete
system
innovation
towards project
modernization
and
in all
aspects
of banking
act ivies; con
o-tier
nted the
bank,
organized
officially
restructuring
put Vietnam
JSC Bank
in for
terms
Industry
ofstandardization
debts
andhandling,
Trade into
general
operation
policies
& mechanisms
offices.
It
also established
correspondent
billion. And after that, these figures increased to VND 422,995 billion
and nearly VND 468 billion. Over the recession period, this bank still
Vietinbanks headquarter
Supporting divisions
Operational Center
1.1.1. Organization structure
Accounting Dept
Bank guarantee & Import Documentary Settlement 2 Dept. SWIFT & test key Dept.
Technical Dept
Factoring and Receivables Financing Dept.
Services
at
the
department
include:
export
Accounting
Division
is
responsible
for
the
mobilization
and
ledgers
(annual
accounts
and
accompanying
of
benefits
and
compensation
programmes;
strategic
approach
to
human
resources;
monitoring
Total Revenue
Total Cost
4000
Profit
3000
2000
1000
0
2009
2010
2011
2012
2013
center,
such
as
Export
Documentary
Dep.,
Import
read
and
understood
all
terms
and
conditions
of
L/C.
He
emphasized
that
understanding
the
procedure
Payment
Doc
Advising
Figure 4:
Letter of
credit
um
ent
Payment
Advising bank
Document
pay
men
t Issue
Issuing bank
1. L/C issuance
At the request of the customer (the importer), the Import
Documentary Settelemt 1 and 2 of VietinBank issues the L/C,
committing to pay to the beneficiary at sight or at maturity when
the beneficiary presents the documents in conformity with the terms
and conditions of the L/C. Depending on your credit history, L/C can
be issued with or without a deposit. Vietinbank acts like an
intermediary ensures safety for both exporter and importer; reduces
capital pressure for the importer; and give advises on the
transactions to ensure customersbenefits. This is particularly
important to bear in mind that Vietinbank only deal in documents,
not in goods. In the case L/C amendment, VietinBank amends the
L/C upon request of the customer (the importer). As illustrated in
Figure 5, L/C is issued by the following process.
Figure 5: L/C opening procedure
c
o
td
n
e
m
S
k
u
hs
:C
1
p
e
u
I2
L
:tp
/C
Se
3
R
h
p
d
n
a
k
c
o
b
:tlS te
r,v
is
u
m
c
d
n
m
y
a
:P
4
p
Srim
/C
tL
o
p
e
:la
5
u
d
n
s
v
c
SS
s
n
m
u
c
o
d
v
:a
6
p
te
Example:
SALES CONTRACT
Date: 2014-06-26
Contract No: S04688
Seller: CARGILL INTERNATIONAL TRADING PTE LTD
300 Beach Road, #23-01 The Concourse Singapore 199555
Phone: (65)6295-1112
Fax: (65)6393-8880
Co: Reg No.196700442
Buyer: HOA SEN GROUP
No. 9, Thong Nhat Boulevard, Song Than II Industrial Park
Di An Ward, Di An Town, Binh Duong Province, Vietnam
Commodity: Prime Newly Produced Hot Rolled Steel Coils
Specification: HRC grade: SAE1006
Step 1: Receive documents to open L/C
On 20th May, representative from Hoa Sen Group
sent L/C
CONCLUSION
After more than 25 years of development, Vietinbank has achieved
several accomplishments and has been one of the leading banks in
Vietnam. It is proved by the continuous efforts of all branch
employees on improving service quality as well as maintaining a
sustainable growth in both fund mobilization and credit activity.
Although there are still some certain difficulties existing, from my
point of view, the appropriate strategies and targets of the Bank will
guarantee that its stable position in the eyes of customers.
It will be an unforgettable time of my life when I had the experience
in working as a banking officer. Moreover, working as an internee
assists me to comprehend more about banking system, which is
very useful for my future career.
To conclude, I would like to express my gratefulness to everyone,
who support me accomplish the report.
REFERENCE
Anders Grath, The handbook of International Trade and Finance,
Nordia Publishing Ltd for the Institute of Export, 2005, Great Britain
Annual reports of VietinBank from 2009 to 2013, available on
VietinBanks
website:
http://investor.vietinbank.vn/FinancialReports.aspxv
Analysis of ABC securities in 2013 about VietinBanks security.
Information about VietinBank, available on website of StoxPlus,
http://www.stoxplus.com/