The efficiency of international settlement operations of Vietcombank 2015 - 2017: Khóa luận tốt nghiệp Đại học / Nguyen Da Thao

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STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING

BANKING UNIVERSITY OF HO CHI MINH CITY

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NGUYEN DA THAO

THE EFFICIENCY OF INTERNATIONAL SETTLEMENT

OPERATIONS OF VIETCOMBANK 2015 - 2017.

BACHELOR’S THESIS

MAJOR: FINANCE - BANKING

ID: 734021

HO CHI MINH CITY, 2018

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STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING

BANKING UNIVERSITY OF HO CHI MINH CITY

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NGUYEN DA THAO

THE EFFICIENCY OF INTERNATIONAL SETTLEMENT

OPERATIONS OF VIETCOMBANK 2015 - 2017.

BACHELOR’S THESIS

MAJOR: FINANCE - BANKING

ID: 734021

SUPERVISOR

DR. NGUYEN PHUOC KINH KHA

HO CHI MINH CITY, 2018

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DECLARATION

The thesis, which I have submitted, is my own research and, with the exception of

quotations (which are clearly marked and referenced), is written in my own words.

Signature:

Date:

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ABSTRACT

The process of internationalization of the world's socio-economic life has been

more and more intense, and international trade has more and more conditions for

development. For a developing country like Vietnam, import-export activities play a

very important role in the economic development, thus, the international payment of

commercial banks should recieve more attention in banking operations. Viet Nam

Foreign Bank is the most outstanding bank in Vietnam regarding of international

settlement. In recent years, Vietnam Foreign Trade Bank has always paid attention

to innovation in external relations in order to improve the efficiency and

development of international settlement, enhancing the prestige and

competitiveness as an international bank regionally and globally.

Based on the research on the efficiency of international settlement operations at

Vietcombank, it can be seen that besides the positive results, there are still some

limitations in the development of settlement quality as well as bringing efficiency to

this activity. Therefore, in order to improve the efficiency of international

settlement operations at the Foreign Trade Bank of Vietnam in particular and

commercial banks in general, there should be synchronized coordination from many

parties, not only the relationship between banks and clients but the strong

combination among solutions. The implementation should be carried out at the

same time to bring about its effect.

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Table of Contents

DECLARATION ...................................................................................................................................3

ABSTRACT...........................................................................................................................................4

LIST OF ACRONYMS..........................................................................................................................7

LIST OF PICTURES ............................................................................................................................8

INTRODUCTION.............................................................................................................................. 10

1. Rationale .....................................................................................................................................10

2. Literature Review ....................................................................................................................12

3. Research Objectives ................................................................................................................12

6. Data and Methodology............................................................................................................13

7. Dissertation Outline................................................................................................................13

CHAPTER I........................................................................................................................................ 14

THEORETICAL BACKGROUND OF OPERATIONAL EFFICIENCY OF

INTERNATIONAL SETTLEMENT................................................................................................ 14

1.1. Fundamental theories of international settlement................................................14

1.1.1. Definition of international payment.....................................................................................14

1.1.2. Characteristics of international payment ..........................................................................14

1.1.3. The role of international payment........................................................................................15

1.2. The efficiency of international settlement operations in Commercial Bank 17

1.2.1. Definition of the efficiency of international settlement operations........................17

1.2.2. Criteria to evaluate the efficiency of international settlement operations in

Commercial Banks ........................................................................................................................................19

1.2.3. Quantitive criteria for evaluating the operational efficiency of internationl

settlement operations .................................................................................................................................21

1.2.4. Quanlitative criteria for evaluating the operational efficiency of international

settlement operations .................................................................................................................................23

CHAPTER II ...................................................................................................................................... 25

ASSESSMENT OF THE EFFICIENCY OF INTERNATIONAL SETTLEMENT

OPERATIONS AT VIETCOMBANK ............................................................................................. 25

2.1. An Overview Of Bank For Foreign Trade Bank Of Vietnam ........................................25

2.1.1. The history and development of Vietcombank................................................................25

2.1.2. The organizational structure...................................................................................................26

2.2. The reality of international settlement operations at Vietcombank ...............28

2.2.1. Structure of International settlement – Trade Finance Centers and Branches..28

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2.2.2. The reality of international settlement operations at Vietcombank ......................30

2.3. Assessment of the efficiency of international settlement operations at

Vietcombank ........................................................................................................................................35

2.3.1. The efficiency of international settlement operations evaluated by quantitative

criteria 35

2.3.2. The efficiency of international settlement operations evaluated by qualitative

criteria 36

2.4. Advantages and drawbacks.............................................................................................42

2.4.1. Advantages......................................................................................................................................42

2.4.2. Drawbacks ......................................................................................................................................43

CHAPTER III..................................................................................................................................... 47

ENHANCEMENT OF THE EFFICIENCY OF INTERNATIONAL ECONOMIC

OPERATIONS IN VIETNAM.......................................................................................................... 47

3.1. Orientations for development and expansion of business in general and

International Settlements in particular in Vietnam. .............................................................47

3.1.1. General development orientation.........................................................................................47

3.1.2. Orientation to enhance the efficiency of International settlement operations at

Vietcombank ...................................................................................................................................................48

3.2. Recommendations to enhance the efficiency of international settlement

operations in Vietnam. .....................................................................................................................49

3.2.1. Recommendations to Vietcombank......................................................................................49

3.2.2. Collaborative recommendations to clients........................................................................60

3.2.3. Recommendations to the government................................................................................61

CONCLUSION.................................................................................................................................... 63

REFERENCES.................................................................................................................................... 64