Analysis of International payment operation by letter of credit at VPBank – Giang Vo branch

TABLE OF CONTENT
PREFACE ........................................................................................................................ 1
Part 1: Internship dairy ..................................................................................................... 3
1.1 Information of the mentor ...................................................................................... 3
1.2 Detailed internship dairy ........................................................................................ 3
Part 2: Introduction of VPBank and VPBank – Giang Vo Branch ................................. 7
2.1 General information about VPBank ....................................................................... 7
2.2 Development history of VP Bank .......................................................................... 7
2.3 Vision, mission, development strategy and core value of VPBank ....................... 9
2.4 Introduction about VPBank – Giang Vo Branch ................................................. 10
2.4.1 Organogram of VPBank – Giang Vo branch ................................................ 10
2.4.2 Scale of VPBank – Giang Vo branch............................................................ 10
2.4.3 Banking activities of VPBank – Giang Vo in the recent years (2011 – 2013)
................................................................................................................................ 11
Part 3: Analysis of International payment operation by letter of credit at VPBank –
Giang Vo branch ............................................................................................................ 13
3.1 Situation of international payment by letter of credit at VPBank – Giang Vo
branch ......................................................................................................................... 13
3.2 Import L/C ............................................................................................................ 14
3.2.1 General .......................................................................................................... 14
3.2.2 Product description........................................................................................ 14
3.2.3 Benefit ........................................................................................................... 15
3.2.4 Condition and application process ................................................................ 15
3.2.4.1 Issuance of import L/C ........................................................................... 15


3.2.4.2 Amendment of import L/C ..................................................................... 15
3.2.4.3 Guarantee/Authorization of Shipping .................................................... 15
3.3 Export L/C ............................................................................................................ 16
3.3.1 General .......................................................................................................... 16
3.3.2 Product description........................................................................................ 16

3.3.3 Benefits ......................................................................................................... 16
3.3.4 Conditions and application process............................................................... 16
3.3.4.1 Notification/Amendment of L/C ............................................................ 16
3.3.4.2 Receiving and checking export documents............................................ 17
3.3.4.3 Conditions of discount documents ......................................................... 17
3.4 Assessment of the international payment operation by L/C at VPBank – Giang
Vo branch ................................................................................................................... 17
3.4.1 Advantages .................................................................................................... 17
3.4.2 Disadvantages ............................................................................................... 18
Part 4: Comments about the internship .......................................................................... 19
4.1 Guidance for the internship .................................................................................. 19
4.2 The internship period ........................................................................................... 19
4.3 Using the data and original document. ................................................................. 19
Conclusion...................................................................................................................... 20
Reference
Appendix


1

PREFACE
Trade finance has become a more and more essential determinant of the world
economy as well as Vietnamese economy. In recent years, the import and export
business turnover of Vietnam has rapidly increasing. This achievement has been made
not only by appropriate policies and regulations from the government, but also by the
bank system. Commercial banks have helped business activities of both domestic and
foreign firms operate smoothly and safely.
Along with the growth of international trade relations, various kinds of payment
method have been developed, such as remittance, collection, documentary credit, etc.
While the first two methods bring disadvantages for either the seller or the buyer and

the bank, as an intermediary, bears little responsibility to make payment; the last one is
considered to be much better in terms of protecting interests for all stakeholders.
Moreover, payment by letter of credit is favorable to small and medium enterprises
which hold the highest proportion in this type of service.
Realizing the importance of the issue, I decided to have my mandatory summer
internship at SME department , VPBank - Giang Vo branch (Hanoi), which is in charge
of making payment by letter of credit. My report would cover all knowledge,
experiences and skills I have gained after four weeks, including four separated parts:
- Part 1: Internship dairy.
- Part 2: Introduction of VP Bank and VPBank – Giang Vo branch
- Part 3: Analysis of International payment operation by letter of credit at
VPBank – Giang Vo branch
- Part 4: Comments about the internship
I am delighted to express my deepest appreciation to Associate Professor Trinh
Thi Thu Huong – FTU for instructing me from the very initial step. I would like to
thank Ms. Le Thi Bich Thuy, branch director and Mr. Nguyen The Dan, head of SME
department, together with all colleagues at VPBank Giang Vo for their dedicated
supports during the previous time.


2
Due to the limit on my knowledge and the time of the internship, some mistakes
might be inevitable in spite of my best efforts. Hence, any constructive feedbacks are
highly welcomed and would seriously be taken into consideration.

Hanoi, August 2014
Student

Le Quang Minh

3

PART 1: INTERNSHIP DAIRY
1.1 Information of the mentor
-

Full name: Nguyen The Dan

-

Title: Head of SME department, VPBank Giang Vo branch.

-

Mobile phone: 098.8888.628

-

Email:

1.2 Detailed internship dairy
Wednesday, July 2
I sent an email to Ms. Thuy – Branch director and politely asked for her approval
of my internship. Fortunately, she agreed with my request and reminded me some
small points about working behaviors and appropriate appearance at the office. I took
them into consideration seriously as I needed everything would go well.
Thursday, July 3
I arrived at the office 20 minutes earlier to ensure no trouble beyond expectation
would happen on the road. The office is a modern, 7-floor building in the middle of

Giang Vo street. Despite being well-prepared, I was still quite nervous because this
internship marked an important milestone in my student life.
Ms Thuy guided me to the SME department and introduced me to the staffs here.
From now on I would be under the instruction of Mr Dan, head of SME dept. When I
came to the office, I realized that almost all of the staffs were gentlemen, and they were
quite young. That made things feel a little easier for me as I thought I could be more
intimate with them because of that.
As they were very busy to prepare for the weekly team meeting in the afternoon, I
had a quick conversation with my mentor in order to schedule the time for me to come
and the content of my report. He asked me to prepare the outline for the next coming.
Friday, July 4
It was my second day at the bank, but the very first day for me to witness the
daily life of bank staffs in a professional environment. After submitting the outline of


4
my report to my mentor and receiving some comments, I was guided to pay a visit to
every department of the branch. Somehow I thought they are all busy and in a hurry.
The working time here started from 8.30 am and as I saw, everybody seemed to
be very punctual. The front of house on ground floor looked clean, tidy, welcoming
and functional at all times. The second floor consisted of customer service department
and administrative department. Personal customer department and director room were
on the third floor. SME department and meeting room were on the top of the office
building.
Tuesday, July 8
I was assigned a seat at a cozy meeting table in SME room. My mentor gave me a
great amount of document to research which related to the bank activities in general
including some indicators provided for interns and other internal magazines. They were
very helpful to me to make this report. My mentor also told me that one of most up-todate sources of information would definitely the company’s website, so I spent time
browsing it.

Wednesday, July 9
As I got more familiar with the staffs here, I began helping them with some small
stuff like boiling the water before working, clearing and cleaning up the meeting table
to welcome customers/partners, etc. Everything went by smoothly, except for the
photocopier. Since the model was quite old and got stuck a lot, I asked for help from
staffs. Once again, I felt the warmth and support of the people here. I guessed it was
culture. No matter how many times the machine got into trouble when I was using it,
they were still willing to help me. The problems gave me some ‘tips’ to deal with this
kind of machine.
Thursday, July 10
I was told to translate some documents from Vietnamese to English. The
requirements were to be precise and neat since they would be sent to the customers
later, so I tried the best I could. The hardest part was some technical terms that made
confused and browse through sites to find the most accurate ones. Fortunately, I did


5
finish translating that 20 page document by the end of this week and got a compliment,
which was very encouraging.
Monday, July 14
I approached more closely with the work related to L/C in this week. I received a
folder containing all relevant documents in 2013 from my mentor and was asked to
read carefully before answering him the process. I politely asked him to make some
copy of them to bring home, as I needed to combine and compare them with what I had
been taught at FTU.
Wednesday, July 16
I was instructed the role of each document and the order to process them. There
were quite a lot paper and sometimes I made mistakes, but my mentor was totally
dedicated and reminding me stay focused all the times. I knew that every tasks related
to banking was very risky, so no error was permitted. At the end of the day, I was quite

confident to fill in the ‘Application for L/C’.
Thursday, July 17 & Friday July 18
The whole two days were spent for researching on ‘Application for L/C
Amendment’ and ‘Application for and endorsement of a B/L / assurance of a shipping
guarantee’ and some key points in customer care. After that, I arranged all the
document used recently and filed them to their folder. It was the way I revised how to
manage tons of documents.
Tuesday, July 22
There was a significant increase in the working pace of each staff as they looked
busier than ever. I was given more tasks, in particular scanning files and putting them
into correct folder in the computer, making photocopy of files and numbering
documents. I was reminded to prepare carefully for the next day to witness real
transactions, maybe outdoor ones.
Wednesday, July 23 to Friday, July 25
I had chances to witness staffs here handling real cases with the customers. As a
supporter, I brought a pack containing various kinds of blank forms to deliver to


6
customer when they needed, and collected fully filled forms. Sometimes the situations
were quite regular, so tasks were simply checking papers once again and took notes in
the recording books. Sometimes the cases were abnormal, for instance the documents
showed were not in accordance with what stated in the L/C (missing paper, missing
pages, unauthorized signatures, etc.). Each time like this, I tried to observe the staffs’
behaviors and attitudes, how to deny, even a loyal customer, without making any
offense.

Communication skills, especially listening, seemed extremely important.

Occasionally I needed to go to the customer’s office to return some documents.

Tuesday, July 29
I continued working as a supporter like the last week. I approached the
commercial invoice more frequently. The invoice resembled the one I had seen during
International trade transaction a lot. Therefore, I could understand quite a bit. For parts
that I was unfamiliar with, my mentor was so helpful as he walked through and clearly
explained to me. My final task of the day was to correct some typo in documents.
Wednesday, July 30 to Friday, August 1
I started writing this report. During that time, I still support the department with
office and administrative work. I feel more comfortable while completing my report at
the office than at home as I could find any materials or documents there and any
explanation could be provided whenever needed. In the late afternoon, all staffs stayed
one more hour to prepare for the performance at the bank festival which took place on
Saturday afternoon. This was a great chance for me to make acquaintance with staff
from other department and enjoyed another aspect of an officer’s life.
Monday, August 4
I proposed the draft of my report to my mentor and received some comments.
Tuesday, August 5
It was the last day of my internship. I attended the team’s monthly meeting and
felt as if I were a part of the department here. The staffs were so caring that they threw
me a small farewell party with fruit and snacks at the end of the day.


7

PART 2: INTRODUCTION OF VPBANK AND
VPBANK – GIANG VO BRANCH
2.1 General information about VPBank
Company’s name

: Vietnam Prosperity Joint-Stock Commercial

Bank (in short: VPBank)

Sector

: Banking and financial services

Head office

: 72 Tran Hung Dao Str, Hoan Kiem Dist,
Hanoi

Telephone

: 043.9288880

Fax

: 043.9288867

Email

:

Website

: www.vpb.com.vn

Tax code

: 0100233583

Chairman of the Board of Directors

: Mr. Ngo Chi Dzung

Chief Executive Office

: Mr. Nguyen Duc Vinh

2.2 Development history of VP Bank
Vietnam

Prosperity

Joint-

Stock Commercial Bank (formerly
known

as

Commercial

Vietnam
Bank

Joint-Stock
for

Private

Enterprises) was established on 12
August 1993. After nearly 20 years
of operation, VPBank has increased its charter capital to VND5,770 billion, raised the
number of transaction points to over 200, and had a workforce of more than 4,000
employees.
As a member of the group of 12 leading banks in Vietnam (G12), VPBank is
taking steps to reaffirm its reputation as a dynamic bank with stable financial capacity


8
and responsibility to the community. To achieve this ambitious vision, VPBank has
implemented an aggressive growth strategy for the period 2012 - 2017 with the support
of McKinsey, one of the world’s leading consulting companies. Accordingly, VPBank
will focus on organic growth in targeted customer segments, build up foundation
systems expeditiously to serve its growth needs, and monitor opportunities in the
market actively.
The remarkable growth of VPBank is vividly illustrated by the expansion of its
branch and transaction office network and the diversity of sales and distribution
channels. With the motto of “all for customers”, the layout, service model and
amenities of transaction points have been completely changed. The products and
services of VPBank have always been improved and combined with many utilities to
increase customers’ benefits, etc. These factors have contributed to satisfying existing
customers, attracting new customers, thus expanding VPBank’s customer base at a fast
pace.
To prepare for a stable and sustainable growth, VPBank has conducted
comprehensive measures to build foundation systems. The Bank has always been the
market leader in applying advanced information technology to its products, services
and operation system. Along with building a strong and effective corporate culture,
core human resources management systems have been developed and successfully

implemented at VPBank. In addition, the Bank has taken steps to develop an
independent, centralized, and specialized risk management system which meets
international standards and aligns with the Bank’s business strategy. While complying
with international best practices in corporate governance, VPBank also refines its
organizational structure according to a clear and transparent corporate governance
policy.
With constant efforts, VPBank’s brand has become increasingly stronger and
reaffirmed by many prestigious awards such as: The Best Payment Bank awarded by
Citibank and Bank of New York, Bank with the most satisfactory service quality for


9
customers, National Brand in 2012, Top 500 biggest enterprises in Vietnam and many
other awards.

2.3 Vision, mission, development strategy and core value of VPBank
As one of the earliest-established Joint-stock Commercial banks in Vietnam,
VPBank has achieved steady development throughout its history. Especially since
2010, VPBank has grown dramatically with the development and implementation of
the strategic transformation program diligently with support from one of the world’s
leading consulting companies.
Following this strategy, VPBank aims to become one of the 5 leading joint-stock
commercial banks and one of the 3 leading retail joint-stock commercial banks in
Vietnam by 2017. This vision is realized through the two-pronged strategy as follows:
 Aggressive organic growth, focusing on personal and SME customers, and
exploiting opportunities in the segment of large business customers and
consumer credit.
 Building strong foundation systems in terms of organization, human
resources, technology, operation, etc.
The support for the implementation of the above strategy is the VPBank corporate

culture which is nurtured and built on six core values: Customer Focus; Productivity;
Ambition; People Development; Trust; Make the Difference.
The achievements of this transition period have determined the right strategy,
with the positive changes of image, service quality, professionalism, etc. The trust of
customers for VPBank has also strengthened by the constantly increasing number of
new customers and capital mobilization. More importantly, VPBank is becoming a
desirable destination for talent in the banking and finance industry. This key element
has been, and will become VPBank’s strategic weapons in the journey towards
becoming one of the 5 leading joint-stock commercial banks, and one of the 3 leading
retail joint-stock commercial banks in Vietnam by 2017.


10
VPBank believes that its above-mentioned vision and strategy will help the Bank
to achieve its mission to maximize customers’ benefits, attach special importance to the
interests of employees and shareholders, build a strong corporate culture, and
contribute effectively to community development.
2.4 Introduction about VPBank – Giang Vo Branch
VPBank – Giang Vo branch was established on 19th April 2004. After ten years
of growing up, VPBank Giang Vo has gradually developed, kept pace with the changes
in information technology and dealt with challenges in the period economic recession,
especially in the finance and banking sector. It is still on the way to assert its role in
series of VPBank branches as an effective multifunctional level I branch.
2.4.1 Organogram of VPBank – Giang Vo branch

Giang Vo branch director

Figure 2.1: Organogram of VPBank – Giang Vo branch
Personal customer dept
SME dept

Customer service dept

Administrative dept

Cat Linh Branch

Standard branches

Thanh Cong Branch
Hao Nam Branch
Source: student compiled

2.4.2 Scale of VPBank – Giang Vo branch


11
At the moment I wrote the report, there were twenty five staffs working for the
branch. The details are as follows:
-

One branch director: Ms. Le Thi Bich Thuy.

-

Personal customer department: a head of department and six staffs.

-

SME department: a head of department and six staffs.

-

Customer service department: a head of department and twelve staffs (including
five sales assistants, three tellers, two supervisors, a lobby manager and a
treasurer).

-

Administrative department: a head of department and a staff.

- Three dỉrectly - under standard branches: Cat Linh (standard level I branch),
Thanh Cong (standard level II branch) and Hao Nam (standard level II branch).
2.4.3 Banking activities of VPBank – Giang Vo in the recent years (2011 –
2013)
Through years, Giang Vo branch, whose total assets hold more than 7% of
VPBank, has always been a leading force in the VPBank system, the market share is
about 4.2% of total outstanding balance and it has brought over 10% of earnings for the
BIDV. The business activities of the branch has always been safe, effective and able to
achieve all target assigned.
Table 2.1: Business result of VPBank Giang Vo branch (billion VND)
Indicator

2011

2012

2013

Capital mobilization

20,413.7

20,844.8

17,303.0

Net service earnings

100.9

145.6

183.2

8,196.3

8,862.2

9,583.0

304.0

574.3

668.0

21,891.6

23,116.9

16,728.0

Credit outstanding balance
Earnings before taxes
Total assets

Source: Branch annual report
The act of maintaining and increasing capital resources is difficult during the
recent years due to the fluctuation of business environment. However, the branch
succeeded in mobilizing capital sources, which was at a very high rate over the total


12
mobilized capital sources of the bank (over 8%). Nevertheless, the capital sources were
unstable as the sources focused on corporate customers and financial institutions, in
particular Oversea Chinese Banking Corporation Limited. Hence, there was a
fluctuation in the amount of capital mobilization, from 20,413 billion VND (2011) to
20.844 billion VND (2012), then fell to 17,303 billion VND (2013). Though there
exists a downward trend in capital mobilization, these figures have shown have shown
the best efforts of the branch during a keen competitive environment.
VPBank Giang Vo holds large amount of credit outstanding balance in the bank
system due to the fact that it has always complied with the transaction limit managed
by the headquarter. The annual credit outstanding balance keeps a good growth rate. In
addition, VPBank Giang Vo branch is of the highest service earnings holding. Until
2013, the total service earnings of the branch reached 183.2 billion VND. The service
earnings were gradually increased since 2011 as shown on the table above.


13

PART 3: ANALYSIS OF INTERNATIONAL PAYMENT
OPERATION BY LETTER OF CREDIT
AT VPBANK – GIANG VO BRANCH
3.1 Situation of international payment by letter of credit at VPBank – Giang
Vo branch
In 2013, VPBank continued expanding the international payment operation. In the
end of 2013, it has become agent and built up relation with more than 690 foreign
banks and bank branches. However, the operation of international payment by
documentary credit tended to shrink in comparison with that in 2012.

Table 3.1: Sales of international payment services at VPBank Giang Vo
2011
Sales
No of
(USD
items
1,000)

2012
Sales
No of
(USD
items
1,000)

2013
Sales
No of
(USD
items

1,000)

Import L/C

850

165,000

1,200

290,000

750

123,000

Export L/C

550

35,000

800

75,000

700

47,500

Sales of international
payment services

550,000

680,000

650,000

Sales of import, export

360,000

400,000

450,000

Source: SME dept
In terms of importing: the branch has opened 750 L/Cs, valued USD 123 million,
decreasing 57% compared with that in 2012.
In terms of exporting, the branch has sent claim document and collected 700
items, valued USD 47.5 million, decreasing 36% compared with that in 2012.
In terms of collection: the branch has collected 230 items, valued USD 6.2
million, decreasing 72% compared with that in 2012.


14
In 2011, sales of international payment reached USD 550 million, increasing
18%. In 2002, the figure increased 23% which was equivalent to USD 680 million. In
the most recent year 2013, it fell off to USD 650 million, decreasing 4.4% compared

with 2002, but the sales from import – export transactions went up 12.5% in
comparison with that in 2012.
In 2013, the exchange rate among USD, EURO and VND kept rising gradually
while exporting price of various goods such as coffee, rice and other agricultural
products shirked significantly that slow down the rate of exporting . Additionally, the
threat from US government against Vietnamese dumping on agricultural product
(frozen basa fish and shrimp) and the intense competition from imported goods made
domestic firms afraid of selling foreign currency for banks. The supply for foreign
currency became scarcer in 2013. Predicting these difficulties well in advance, VPBank
- Giang Vo branch had mobilized enough foreign currency for international payment
operation, minimized the chances of late payment for clients. As a result, the sales of

import – export transactions of VPBank – Giang Vo branch reached USD 450
million (increasing 12.5%). It was considered as a very positive outcome in such
a rough year like 2013.
3.2 Import L/C
3.2.1 General
This product is the conditional committment issued by the bank for the buyers
towards L/C beneficiary (sellers or service suppliers) to making payment of a certain
amount of money when the beneficiary presents the documents according to the terms
and conditions of L/C in a particular period of time as regulated in L/C
3.2.2 Product description
-

Issuance of L/C

-

Amendment of Import L/C

-

Guarantee / authorization of shipping


15
-

Endorsement of B/L

-

Payment of L/C

3.2.3 Benefit
With quick issuance of L/C, diversified issuance methods widely-accepted by
most banks worldwide, this service helps to increase enterprise's reputation and
position as well as ensure their competitiveness
Highly professional staffs are willing to support and consult customers.
3.2.4 Condition and application process
3.2.4.1 Issuance of import L/C
Issuance Documents
-

Request to open import L/C / Request to amend import L/C

-

Foreign trade contract

-

Import quota (import-export product by quota)

-

Trustee contract

Condition of Import L/C Issuance
-

Legal documents (if doing transaction with VPBank for the first time)

-

Deposit as regulated

-

Import goods are easily consumed and not forbidden

3.2.4.2 Amendment of import L/C
Amendment documents
-

Request for Amendment of Import L/C.

-

Documents related to Amendment of Import L/C: appendix of foreign

trade contract, import quota, agreement for Amendment of Import L/C
between importers and exporters, etc.

3.2.4.3 Guarantee/Authorization of Shipping
Documents
-

Notification of delivery from shipping company/airline agent

-

B/L


16
-

Commercial Invoice

-

Request to issue Guarantee/Authorization of Shipping

-

Endorsement

-

Request for Endorsement

-

Commercial Invoice

-

Sea freight

3.3 Export L/C
3.3.1 General
The notification/amendment of received L/C or amendment of L/C from foreign
banks will check the authenticity of the L/C or L/C amendment and directly notify
customers.
3.3.2 Product description
The notification/amendment of received L/C or amendment of L/C from foreign
banks will check the authenticity of the L/C or L/C amendment and directly notify
customers.
To receive and check export documents
VPBank to support enterprises in making set of documents in accordance with the
conditions and terms of L/C and advise customers to fix discrepancies and make
additions (if any).
Documents transfer and claim for export L/C
VPBank transfers the set of documents to foreign bank to pay for L/C
To support customers keep track of document status.
3.3.3 Benefits
To ensure customers' business capital
To be proactive in capital flows in the business activities of the enterprises
3.3.4 Conditions and application process
3.3.4.1 Notification/Amendment of L/C

17
-

Export and import corporate customers request VPBank to consult the
terms of payment, selection of L/Cissuing bank before signing contract

-

Inform import partners to issue L/C with notification via VPBank

-

Upon receipt of L/C or the amendment of orginal L/C from VPBank,
customers check carefully the terms, conditions of L/C together with
support from the bank

-

In case of inability to perform terms, conditions in the notification of L/C,
request the importers to amend L/C according to the importer's bank

3.3.4.2 Receiving and checking export documents
-

Customs Declaration (if required)

-

Goods delivery documents of exporters

-

Request for discount (if any)

-

Notification attached with original copy of L/C and amended copies of L/C
(if any)

3.3.4.3 Conditions of discount documents
-

Irrevocable L/C

-

VPBank is the negotiating bank for L/C

-

Perfect set of documents

-

Customers commit to reimburse the discount by VPbank in case the
paying bank refuses to pay

-

L/C issuing bank must be a reputable bank

3.4 Assessment of the international payment operation by L/C at VPBank –
Giang Vo branch
3.4.1 Advantages
To some extent, the current process of international payment by L/C is quite
reasonable; ensures the smooth operation from the initial step (opening a L/C) to the
final payment and recording all the necessary documents. Any problems arising out of


18
expectation are quickly resolved, relevant documents are transferred to other
department on time. In general, the system runs fast and effectively.
Moreover, the branch has been well equipped with modern technology (new
desktops, high speed internet access, etc.) which contributes to decrease the waste time,
makes the customer feel more comfortable.
Finally, the branch has detailed, clear and consistent guidelines of international
payment by L/C and other services for customers to refer to. If the customers are still
not sure what they need to do, the young, dedicated staffs will be willing to clarify for
them.
3.4.2 Disadvantages
The branch still has to face up with a number of difficulties and limitations
arising from not only internal but also external sources.
First and foremost, documentary credit is the sophisticated part among banking
tasks which requires not only knowledge, but also experience and attention. However,
the staffs in SME department are generally young; as a result they may lack practical
experience. It might be risky if they forget any section in the documents. The importer
can take advantage of this mistake to delay making payment, which reduces the bank’s
reputation.

Secondly, the exchange rate and interbank exchange rate rising gradually places a
burden on import activities, which indirectly have negative effects on international
payment operation of banks in general, VPBank Giang Vo in particular. Lending
money in a currency and paying in another one, whose exchange rate is higher, make
loss and thus the branches tends to be more careful while processing relevant request.
Last but not least, the competition among banks is becoming more and more
intense. Although the cost for international payment services at VPBank – Giang Vo
branch is quite attractive, it cannot bring a great competition advantage as besides it,
the clients also look for other factors like reputation, accuracy and customer care. The
branch needs to try harder in order to assert itself in such activities.


19

PART 4: COMMENTS ABOUT THE INTERNSHIP
4.1 Guidance for the internship
In my opinion, the internship plays an important role in a university curriculum.
It is the first time for student to get approached to practical operation of a company and
get valuable experience. Thus, it deserves more attention from the university. The
faculty should organize a seminar before the internship to help the students prepare
both morale and essential skills to avoid making great mistake. The seminar can also be
attended by student of previous intake; they would share their own experiences in both
working and writing academic report. The instructors could show us more in detail the
requirements in terms of content so we could be more confident.
4.2 The internship period
Five weeks for an internship (including writing a report) is quite short. The
shortness of the internship makes my mentor feel less comfortable while instructing
me. Moreover, even I wanted to make acquaintance with the staff at VPBank – Giang
Vo, I had few chances to do so.
4.3 Using the data and original document.

Due to security requirements, although I made every effort to get permission for
using data and original documents in my report, the amount I get was very limited. In
other words, it is harder for me to present what I have learnt from the internship in the
report.


20

CONCLUSION
In the recent years, Vietnamese economy has gone through ups and downs, turned
from stable to overheating growing status then become frozen. In the recovery period
after such great depression, foreign trade plays a key role in economic restructure and
development. While export not only generates capital for import but also creates more
jobs for citizens, import solves the problem of shortage of technology and ensures the
diversity for the economy. International payment methods are indispensable in such
international commercial activities, in which documentary credit has contributed a
significant section.
The internship has given me a valuable opportunity to get deep insights into the
currents of international payment by letter of credit at VPBank – Giang Vo branch.
Through the previous five weeks, I have worked on a complete process to handle
enquiries related to letter of credit; compared theories studied at university to real
practices and drew lessons for myself. I could not have finished this report without the
enthusiastic support from all staffs at the branch, especially my mentor: Mr Nguyen
The Dan and the branch director: Ms Le Thi Bich Thuy. Working with professional
people also helps me to improve communication, teamwork skills and to adjust
behaviors.
Once again, I take this opportunity to express my profound gratitude and deep
regards to my supervisor Associate Professor Trinh Thi Thu Huong for her exemplary
guidance, monitoring and constant encouragement throughout the course of this report.
Due to my limited knowledge and experience, minor mistakes may take place in this

report. Thus, I highly appreciated any comments from you and other readers to make
my latter thesis better.


REFERENCE
1. Assoc.Prof Nguyen Van Tien, 2008, International payment, Statistics publisher.
2. International Chamber of Commerce, 2007, The Uniform Customs and Practice
for Documentary Credits
3. Standardizing finance management skills for SMEs, 2013. Available from:
[July 2013].
4. VPBank Giang Vo branch, 2011, Annual report
5. VPBank Giang Vo branch, 2012, Annual report
6. VPBank Giang Vo branch, 2013, Annual report
7. VPBank, 2013 A , Training materials: Trade finance October 2013.
8. VPBank, 2013 B, Prospectus 2013