PP AVCN - What could bankers do for makingg international payment?

1. TOPIC: WHAT COULD BANKERS
DO FOR MAKING
INTERNATIONAL PAYMENT?
Instructor : Mr.A Trần Thị Thanh Thủy
Class : DHTN8A
Group : 5
Presented date: Wednesday, June 11th, 2014

2. CONTENTS
Solutions for difficulties
Faculty of international
payments in Viet Nam.
Difficulties that the banks have to
face nowadays.
Definition of the international
payment.
2

3. Definition of the international payment?
3
International payment is one of the bank ‘s
operations in the payment of the value of
the shipment between the buyer and the
seller in the field of the foreign trade.

4. Definition of the international payment
The international payment method
is currently the most popular
Remittance by : Telegraphic
transfer remittance (TT) or
mail transfer remittance
(MTR)
Cash again document (CAD)
Collection
Letter of credit (L/C)
4

5. Definition of the international payment?
5
Proportions of the international payment method

6. Difficulties that the banks have to face
nowadays
6
1. Domestic
Paid primarily in cash
Raising capital and lending
• Difficulties to meet the demand for loans by enterprises
• Lending to restriction in business
Imbalance in terms of bank capital
Credit quality and non-performing loans rate in the
context of interest rates are still high, the environment
and foreign economic potential risks.

7. Difficulties that the banks have to face
nowadays
7
1. Domestic
Paid primarily in cash
Financial situation is not transparented,non-
performing loans incurred by not consuming the
product
• System administrator has not really clear, transparent.
• In addition to, the non-performing loans and sudprime
leads to the potential loss of capital in the bank system.
Poor governance risk losing capital
Banks currently depend heavily on stale bank.

8. Difficulties that the banks have to
face nowadays
8

9. Difficulties that the banks have to face
nowadays
9
2. International
Macro
aspects
Effectiveness
of VietNam ‘s
economic
situation
The decision of
the State
(the verdict):
The policies for
economic and
social
development

10. Difficulties that the banks have to face
nowadays
10
2. International
• Capacity of banks
Direct factor
• Reputation of the
banks ( Prestige bank
)
• Trade mark
• Bank charges
• Business ethics
• Qualified staff
Indirect
factor
Micro
aspects

11. Difficulties that the banks have to face
nowadays
11
2. International
Aspects of
foreign elements
Dirrectly
affected by
the world
economy
Political
factors

12. Difficulties that the banks have to
face nowadays
12

13. Faculty of international payments in
Vietnam
13
Since 1991 , Government allows the bank can expand
its field operations into the field of foreign economic activity .
The bank entered the field and find ways to pull
customers towards themselves as mode export financing
loans with simple procedures , bank rich quick , low cost .
Many commercial banks have paid sales operate major
exports such as Eximbank , Techcombank , Asia Commercial
Bank , DongA Joint Stock Commercial Bank, ... Moreover, in
the period of integration ,innovation and economic thinking
foreign Affairs has promoted export-import activities gain
greater achievements . Import and export is growing so
encouraging economic sectors involved in the production of
export goods .Import and export activities require
development the development of international payment
operations of the bank .

14. Faculty of international payments in
Vietnam
14
The development of international payment
operations
Years 2003 2004 2005 2006 2007 2008 2009 2010
Sales of
Impore/Exp
ort (Milion
USD)
3.416 4.434 5.651 6.790 7.695 11.270 12.489 15.960
Rates 30% 27% 20% 13% 46% 11% 28%
Sources: Annual Report of Viettin bank; in 2007, 2008, 2009

15. Faculty of international payments in
Vietnam
15
NPL in VietNamese banks

16. Solutions for difficulties
16
Improve the
qualify of
professional
Implement
flexible policy
banks
Improve
the qualify
of paid
staff
Innovate in
banking
technology
Consolidate and
strengthen external
relationships
Develope
marketing
activities in
banking
activities

17. Solutions for dificulties
17
Improve the quality of paid staff

18. Solutions for difficulties
Implement flexible policy banks
Promote more consulting work for clients
Have policies to suit customers
18

19. Solutions for difficulties
Technological modernization
activities international payments of the
bank in accordance with International
level.
19

20. Solutions for difficulties
Consolidate and strengthen external
relations
20

21. Solutions for dificulties
Developing marketing activities
in banking activities
21

22. 22

23. Our presentation uses some
information from this websites:
1/ www.internatinonaltrade.co.uk
2/ www.uob.com.sg
3/ www.ecop.edu
4/ www.bankingtech.com
5/ www.business.westerunion.com
23

24. QUESTIONS
Group :
Answer:
24

25. QUESTIONS
Group :
Answer:
25