(Luận văn thạc sĩ) analysis, evaluations and solutions for improving effectiveness of the foreign currency business operation of the vietnam bank for agriculture and rural development

V IE T N A M N A T IO N A L U N IV E R S IT Y

HANOI SCHOOL OF BUSINESS

DANG VIET ANH

ANALYSIS, EVALUATIONS AND SOLUTIONS
FOR IMPROVING EFFECTIVENESS OF THE FOREIGN
CURRENCY BUSINESS OPERATION OF THE VIETNAM
BANK FOR AGRICULTURE AND RURAL
DEVELOPMENT
M ajor: Business Adm inistration
Code:

MASTER OF BUSINESS ADMINISTRATION THESIS

SU P E R V IS O R : HOANG ANH TUAN

H A N O I, 2004


TABLE OF CONTENTS

A B S T R A C T . ..........................................................................................................................Ui

TÓM T Ắ T ............................................................................................................. IV
A C K N O W L E D G E M E N T S ............................................................................................V
P R E F A C E .............................................................................................................................vi
TA BLE O F C O N T E N T S ................................................................................................. ix

PART I: BASIC CONCEPTS OF THE FOREIGN CURRENCY BUSINESS

OPERATION AND INTERNATIONAL PAYMENT.............................................. 10
1.1. FO R EIG N E X C H A N G E M A R K E T .......................................................10
1.1.1. B asic concepts o f the foreign exchange m ark et................10
1.1.2. Participants in the foreign exchange m a rk e t......................... 11
1.1.3. F unctions o f th e foreign exchange m a rk e t............................ 12
1.2. SO M E B A S IC D E F IN IT IO N S O F T R A N S A C T IO N S O N T H E
FO R EIG N E X C H A N G E M A R K E T ............................................................... 12
1.2.1. Spot foreign exchange tra n sac tio n ...........................................12
1.2.2. Forw ard tra n s a c tio n ..................................................................... 13
1.2.3. Sw ap tra n sa c tio n ........................................................................... 13
1.2.4. Futures tra n s a c tio n ....................................................................... 13
1.2.5. O ptions tra n s a c tio n ......................................................................14
1.3. IN T E R N A T IO N A L PA Y M E N T O P E R A T IO N S .............................. 14
1.3.1. D efinition o f international p a y m en t........................................14


IX

1.3.2. Role o f international paym ent tow ards operations o f
com m ercial banks .................................................................................15

PART II: OVERVIEW OF FOREIGN CURRECY BUSINESS OPERATION AND ITS
ENVIRONMENT.......................................................................................................18
2.1. SO C IA L E C O N O M Y E N V IR O N M EN T A N A L Y S IS ................... 18
2.2. B U SIN E SS E N V IR O N M E N T A N A L Y SIS....................................... 19
2.2.1. M a rk e t.............................................................................................. 19
2.2.2. M arket s h a r e ................................................................................. 20
2.2.3. C om petition in the bank finance m ark et................................ 21
2.2.4. SW O T a n a ly s is ............................................................................ 24

PART III: THE FOREIGN CURRENCY BUSINESS REAL SITUATION OF
AGRIBANK............................................................................................................... 27
3.1. A C H IE V E M E N T S A FT E R 12 YEARS ( 1992-2004)
. IM PLEM EN T T H E FO R EIG N CURRENCY B U SIN ESS
O PERA TIO N IN A G R IB A N K SY STEM ........................................27
3.2. A G R IB A N K ’S RESTR IC TIO N S IN TH E FO R EIG N
CU R R EN C Y B U SIN ESS O P E R A T IO N ......................................... 29
3.3. REA SO N S O F R ESTRICTIO N S IN FO REIG N C U R R E N C Y
O PERA TIO N OF A G R IB A N K .........................................................34

PART IV: RECOMMENDATIONS AND CONCLUSIONS..................................43
O B JE C T IV E S .......................................................................................... 43
R E C O M M E N D A T IO N S ......................................................................46


C O N C L U S IO N S
LIST O F R E F E R E N C E S
A PPE N D IX E S


10

PARTI
BASIC CONCEPTS OF THE FOREIGN CURRENCY BUSINESS OPERATION AND
INTERNATIONAL PAYMENT

1.1 FOREIGN E X CH AN G E MARKET
The foreign markets are truly global in that they trade the currencies o f the majority
of nation states. The foreign exchange markets never close; som ew here in the world
participants are trading currencies twenty-four hours a day. The price o f one

currency relate to another (that is, the exchange rate) changes all the time. As new
economic, political, financial and social information is released to the markets,
dealers reassess the value o f a currency.
1.1.1 Basic concepts o f the foreign exchange market
The foreign exchange market is place where execute trade m oney o f the different
countries. There are tw o types to organize foreign exchange market:
-

Exchange Trading Floor: this type has specific place and time o f transactions
were also defined specifically.

-

Over The C ounter (OTC): Market where transactions are conducted over the
telephone and computer network o f dealers, rather than on the floor o f an
exchange

The derivative product transactions as swap, futures and options are traded at over
the counter market.


!1

Spot foreign exchange and forward transactions are also traded at over the counter
market on the w orldw ide scope; operate continuously during 24 hours by uneven
time zone between different areas. Thus when a market closed, other market is still
operating.
The operation schedule o f some big foreign exchange market following will show
operation continuously o f the foreign exchange market.
GMT

0

4

8

12

16

20

24

---------►

.4------------ T o k y o __________ p.
------------Frankfurt------------ ►
<------------London------------- ►
<------------

New York

The big foreign exchange transaction centers o f the world are London, New York
and Tokyo. Daily turnover o f foreign exchange transaction following1:
- England

30%

- Hong Kong

6%

- The United States

16%

-S w iss

6%

-Japanese

10%

-G erm any

5%

- Singapore

7%

- France

4%

1.1.2 Participants in the foreign exchange market
The core members o f the foreign exchange market including:

BIS Central Bank Survey 1995

►


Central Bank
-

Commercial Bank and financial institution

-

Companies

The Central Bank participates in the foreign exchange market to maintain the
foreign currency reserve; exchange rate stabilization, monitor exchange rate and
intervene to restrict the changing o f exchange rate.
The commercial banks participate in the foreign exchange market to serve payment
demand o f custom ers, insure the exchange rate risks and perform the foreign
currency business.
The companies participate in the foreign exchange market to serve demands about
investment and commerce operations.
1.1.3 Functions o f the foreign exchange market
Foreign exchange market exists and develops to serve the following demands:
-

Trade and investment demand: the import export companies need foreign
currency to serve the payment demands.

-

Hedging demand: the members participate in the foreign exchange market
with purpose is exchange rate risks reducing.

-

Speculation demand: entrepreneurs exploit the exchange rate changing to get
profit.

1.2 SOME BASIC DEFINITIONS OF TRANSACTIONS ON THF FOREIGN
EXCHANGE M ARKET
1.2.1 Spot foreign exchange transaction


13

Spot foreign exchange is the purchase or sale o f an amount o f one foreign currency
against an am ount o f another currency, the exchange rate is determ ined at
transaction date, for which settlement takes place one or two business day(s) later
depending on the currencies involved.
1.2.2 Forward transaction
Forward contracts are agreements directly entered into between a buyer and a seller,
calling for delivery o f a specified amount o f a specified asset at a specified, future
date. The exchange rate is determined at transaction date. The buyer and the seller
are direct contractual counterparties to one another.
1.2.3 Swap transaction
This term is used in many contexts. In general it is the simultaneous purchase and
sale o f foreign exchange or securities, with the purchase being affected at once and
the sale back to the same party to be carried out at a price agreed upon today but to
be com pleted at a specified future date. Swaps include interest rate swaps, currency

swaps, and credit swaps. A "swap rate" is a forward foreign exchange quotation
expressed in terms o f the num ber o f points by which the forward rate differs from
the spot rate.
1.2.4 Futures transaction
An agreement to buy or sell a set amount of a commodity or security in a designated
future month at a price agreed upon today by the buyer and seller. A futures
contract differs from an option because an option is the right to buy or sell, whereas
a futures contract is the promise to actually make a transaction. A future is pan o f a


14

class o f securities called derivatives, so nam ed because such securities derive their
value from the worth o f an underlying investment.
1.2.5. Options transaction
An option is a contractual agreement that gives the holder the right to buy (call
option) or sell (put option) a fixed quantity o f a security or commodity (for
example, a commodity or commodity futures contract), at a fixed price, within a
specified period o f time. May either be standardized, exchange-traded, and
government regulated, or over-the-counter custom ized and non-regulated
1.2.5.1 Call option
An option that gives the buyer (holder) the right, but not the obligation, to purchase
a specific asset or obtain a long futures position at a fixed price w ithin a specified
period o f time.
1.2.5.2 Put option
An option that gives the option buyer the right, but not the obligation, to sell the
underlying futures contract at a particular price on or before a particular date.
1.3 INTERNATIONAL PAYM ENT OPERATIONS
1.3.1 Definition o f international payment
International paym ent is currency payment obligations which arise from the

economic relations, commerce and other relations betw een subjects o f countries.
Different with local payment, international payment has special features following:


15

-

Subjects participate
countries. Each

in the international payment operation at various

international payment transaction relates at least two

countries.
-

International paym ent operation relates legal system o f various countries,
even contrast. Thus each subject usually selects unify the legal procedures
and accordance w ith international standards...
Popular language is used in the international paym ent is English.
International paym ent operation requests high professional ability and
technology have to match with international.

1.3.2 Role of international payment towards operations o f com m ercial banks
1.3.2.1 International paym ent creates condition to attract custom er, expand the
business market share o f commercial banks.
The commercial banks are financial middleman, execute the business functions in
currency field, credit and provide the banking services. Through the business

operations, commercial banks established relationships not only organizations, local
customers but also other international business organizations and becom e a subject
participate in the international payment operation.
In the international paym ent field, commercial banks are not only payment
middleman but also consultant for customers about payment conditions, ask
management...


16

In a fierce competitive environment o f banking sector, especially participation of
joint venture banks, foreign banks’ branches, foreign trade developm ent trend and
international financial investment, international payment operation is indispensable
for a commercial bank to maintain traditional customers and attract new customers.
1.3.2.2 International payment contribute increase profit for comm ercial bank
International payment is not only increase mobilization capital source, expand credit
operation but also create measurable income by paym ent service charges, export
sponsor and foreign currency business.
1.3.2.3 International payment will reduce risks
Through international payment operation, banks can control use borrowing capital
and supervise custom er’s business activities, create condition to manage and raise
the investment effectiveness. On the other hand, business in fields will disperse risk
in business operation o f banks.
1.3.2.4 International paym ent raises liquidity
International payment operation is not only create condition to attract customer,
raise the payment deposit but also create cheap capital source and relative stable by
implement the international payment method for customer, especially letter o f credit
method as importers have to collateral to open the letter o f credit.
1.3.2.5 International payment raises the foreign affairs relationship
International payment create condition to banks integrate with international banks,

raising prestige. Since then, bank develops the correspondent banking relation;


17

exploit the sponsor sources from the international financial m arket and international
banks to satisfy the capital demands.


18

PART II
OVERVIEW OF FOREIGN CURRECY BUSINESS OPERATION AND ITS ENVIRONMENT

2.1 SOCIAL ECONOM Y ENVIRONMENT A N A LY SIS
During last period, although incur influenced by som e difficult as flu epidemic,
disadvantage happening o f the basa catfish suit, shrimp dum ping into the United
States market and some other products into the European market, consum er price
index was high in agriculture and food products w hich created influences on export
performance, but import and export activities o f V ietnam during six months o f this
year achieved good result: total export-import turnover reach USD 25.96 billion.
Including total export turnover reached USD 11.8 billion, an increase o f 19.8%
against same period o f last year; total import turnover reach USD 14.6 billion, an
increase o f 14.7% against the same period o f last year.
In the recent years, Vietnam has integrated the world economy; trade free;
investment encouragement; foreign affairs relation reinforcem ent. Participate the
international and local trade agreements as AFTA, CEPT, and W T O ...; encourage
the export and foreign investment. In the next years, when the American-Vietnam
trade agreement has entire validity, the financial bank sector will confront many
difficulties with strongly participant o f the foreign bank into local market.

Vietnam is implementing the economy innovation, private econom y development
encouragement. This is good motivation to promote the economy development in


19

the near future and also create opportunities in order to local banks have condition
to develop.
Furthermore, business environment o f bank sector was loosened according to rule
as bank has self-control right and they bear full responsibility for their business
operation. Competition o f bank sector in Vietnam is increasing by system expansion
strategies, modem technology applying and reinforce the new service product
promotion strategies. The participant o f bank in Vietnam finance market is
diversification as foreign commercial banks, joint-venture banks, state commercial
banks, and joint stock commercial banks.
2.2 BUSINESS ENVIRONMENT AISALYSIS
2.2.1. Market
2.2.1.1 Local m arket
Nowadays, the state bank o f Vietnam allowed the commercial banks can implement
the foreign currency business types as: spot; forward; swap and option right
transactions. But have little foreign companies which were used to using the
exchange rate insurance instrument as forward, option, Vietnam companies only
implement

the

spot

foreign

currency

transactions

when

requests.

This

is

development restriction o f market; it makes the foreign currency market don’t
operate effectively. Because Vietnam is a developing country, carrying out the
industrialization and modernization, Vietnam economy always are excess of
imports over exports. Thus, the foreign currency dem and always is larger than
foreign currency supply in the future. Tne State Bank o f Vietnam controls the rate


20

o f exchange vibration amplitude between USD and VND; it creates advantage
conditions and also brings challenges for the commercial banks in order to
guarantee the custom er’s payment demands and avoid losing by the rate o f
exchange fluctuation.
From internal mobilization standpoint and the international econom y background as
today, Vietnam has more big local projects o f the important economy sectors need
to sponsor by domestic capital. Practically, in the recent years, borrowing demand
o f the big projects increase quickly, especially foreign currency demand.
For this reason, any banks in Vietnam if promote and gain the initiative in the

foreign currency business operation, these banks have more opportunities to occupy
the local market, expand and raise the business effectiveness.
2.2.1.2 E xternal m arket
Vietnam time zone is difference from other countries, thus V ietnam ’s banks have
many advantages in the foreign currency business perform ance on the international
market to get profit and enhance effectiveness to control the b an k ’s assets. Up to
now, Agribank has established the agency relationship with 854 foreign banks in the
world biggest finance centre (New York, London, Singapore, Hong Kong,
Frankfurt...), many foreign banks have granted the foreign currency business limits
and the import-export sponsor borrowing limits for Agribank. This is advantage
condition to develop the Agribank's business operation.
2.2.2 Market share


Although the foreign currency business operation o f Agirbank in the recent years
achieved high growth speed but the A girbank’s market share in the foreign currency
field only occupy small rate in total turnover o f export and import o f Vietnam.
Total turnover o f export and import in 2003 reached USD 24.955 billon, export
turnover o f the whole year reached USD 19.780 billion, while the Agirbank’s
foreign currency business turnover only reached USD 1.5 billion that mean only
reached about 6% o f turnover of import or about 7.5% o f turnover o f export. Thus if
eliminate the foreign currency which bought from the State Bank o f Vietnam,
overseas national currency exchange and other commercial banks, the total o f the
foreign currency that bought direct from export customers is not much compare
with V ietnam ’s total turnover o f export and import. This number showed that
Vietnam was excess o f imports over exports reached USD 5.058 billion in 2003.
Nowadays, had 6 State commercial banks, more than 30 foreign bank branches and
28 joint stock commercial banks operate in Vietnam.

The competition between

banks in the foreign currency business operation is increasing.

Because o f the

history and mechanism features, the Vietcombank are State commercial bank had
the largest advantage competition in the foreign currency business field.
2.2.3. Com petition in the bank finance market
Bank finance market is competing fiercely. Some banks as Citibank, ANZ,
Vietcombank, A C B ...achieved some success and lead in creative dynamic in their
business. Those banks developed rely on the m odem technology, interested the


wholesale markets and invested the technology to develop the retail markets by the
good services, w idening agency system. On the other hand, also have the small joint
stock banks confront difficultly in business.
When evaluate the competition competence o f banks on the market, we need to
examine the following elements:
-

Capital, strategies and development capability

-

Technology quality

-

M anagement and human resources

-

Services product
Branch system, services product distribution

- ‘Promotion advertisement operations

Hence, A gnbank reinforced, maintained and developed relationship with the banks
and financial organizations in the world as: expanded the cooperation relation;
diversified the relation field; diversified the services, products; increased the
turnover and profit; especially A girbank’s prestige was raised, created the good
condition for A gribank’s integration process. On the other hand. A gnbank still had
many restrictions, don’t have much advantage competition compare with other
banks and A gnbank has consolidated to development. Hence, each Agribank’s staff
needs to follow to catch information, market changes and must implement their
mission, strategies to improve and develop Agirbank’s business operation on the
market.


23

2.2.4. SW OT analysis
Strengths
Agribank is a com m ercial bank which has the biggest branch system in Vietnam
-

Agribank is one o f the com m ercial banks have good prestige in Vietnam
Agribank occupied most agriculture and rural market which are interested o f the
international organizations as well Vietnam government

-

The foreign currency business operation o f A gnbank is growing

Weaknesses
-

Prestige o f A gnbank is low on international market

- The foreign currency business market share is small
A gnbank's markets usually confront with objective risks by natural calamity...
- The staffs who have experiences, good specialized, good foreign language

are

little
- Information technology is not modem
Opportunities
-

With indispensable integration trend o f all eras, Vietnam is active to prepare the
necessary conditions to integrate in local and international community, in there
have integration o f the banking-finance system.
Before international integration requesting, Vietnam government is innovating
financial, banking system in accordance with the international standard. Vietnam


is perform ing m easure to reorganize the financial system. Vietnam government
is interested in the innovation process in banking system; it is important field in
economy innovation process to promote the growing o f Vietnam .

International integration will create opportunities and potential to exchange and
cooperate international in financial field. As the same time, it will raise
international position o f A gnbank in international finance transaction.
In the new period, international integration will create condition to Agribank
approach

the

international

capital

sources

and

international

technology

assistance to A gnbank satisfy better capital demand for local economy.
Integration requesting will m otivate promote the innovation process o f Vietnam
banking system; raise the management ability, staffs’ standard in according with
international standards.
Information technology field on the world is developing strongly; create the
advantage condition for integration process and technology transfer.
Foreign policy o f Vietnam is expanding with guideline “cooperation, integration
and developm ent” , Vietnam

is official joint AFTA, APEC and prepare

participate W TO. The V ietnam -A m enca trade agreement has effected.
Politics and econom y environm ent o f Vietnam are stable. The administrative
formalities and investm ent environment are innovating strongly.
Relationship betw een Vietnam and European, ASEAN, A m erican North areas
are more and more improving.


25

Agribank was official member o f the international credit organizations as
APRACA: . C IC A -.
T h re a ts
-

Compare with the State commercial banks, Agribank is w eaker m any aspects as
many staffs but management standard and business are limit. The financial index
is weakness, profitable ability is low. The com petitive advantage will be
weakness in international process.

-

Agribank’s business system is wide but operation market share only concentrate
on rural areas where degree o f understanding about financial is low. not is
familiar with financial instruments.
Up to now, Vietnam has 6 State commercial banks, a policy bank. 4 joint
venture banks. 28 foreign bank branches. 34 joint stock banks and 42
representative offices o f foreign banks. These foreign banks are occupying about
10% market share. In Vietnam financial markets d on’t open entirely towards the
foreign financial institutions, above market share is large if com pare with other

countries which opened entirely financial market as Germ any (4%), Korea
( 12%), Southeast Asia countries about (16-18%). Thus, from now to 2006, when
all regulations about banking business restriction towards A m erican's banks will
be loosening, come to abolish entirely in 2010, market share o f foreign banks
will be higher.

" Asian Pacific Rural A griculture Credit Association
J Coniédéaiion international du Credit Agricole


26

-

Globalization trend, especially liberalization trade is creating the innovation
pressures.

-

Trade and investment environm ent o f Vietnam (adm inistrative form alities, legal
environm ent...) are not attraction.

-

Infrastructure and information technology are limits.

-

Financial fraud activity appearance, money laundering.

-

International terrorism develops strongly, threat peace and security on the world.

-

Fierce com petition not only custom er attraction field but also “brain-drain” field.

In general, the foreign banks operate in Vietnam are large banks, high prestige on
local and international markets so competition from these banks are fierce. At
present, customers o f the foreign banking branches are the foreign investment
capital area and Vietnam commercial banks are confronting with lose market share
in local market. Including the foreign currency business operations are the fiercest
competition field.


27

PART III
THE FOREIGN CURRENCY BUSINESS REAL SITUATION OF AGRIBANK

3.1 ACHIEVEM ENTS AFTER 12 YEARS (1992-2004) IMPLEMENT THE
FOREIGN CURRENCY BUSINESS OPERATION IN AGRIBANK SYSTEM
Agribank changed from planning mechanism, subsidy to the market mechanism in
February 1992, together with other banks as: Vietcombank, Vietnam Investment
B ank...w ere allowed to carry out the foreign exchange business operations by the
G overnor o f the State Bank, created the legal status to expand the new business
operations to become the modem commercial banks.
After 12 years o f the foreign currency business implement, Agirbank has achieved
following:

The fir s t, Agribank succeeds with purpose is service product diversifying by success
o f the new foreign currency business operations as the foreign currency credit;
foreign

projects;

international

of

payment;

guarantee;

foreign

currency

mobilization; foreign currency business; and other operations as the international
credit card; overseas national currency exchange...
The achievements o f the foreign currency operation field up to 31 December 2003:
- Foreign currency capital: reached USD 780 million, accounting for 9% o f total
capital o f Agribank.


28

- Total

foreign currency outstanding loans: reached USD 632.6 million,

accounting for 8.5% of total credit. Including, the medium and long term loan
reached 47.9%
- Guarantee operation: reached USD 20.3 million.
- International payment: total payment o f export and import in 2003 reached
USD 3.1 billion (not including o f cross-border payment between Vietnam and
China reached USD 340 million, accounting for 70% o f total cross-border
payment through Vietnam bank system).
- Foreign currency business operation: the total o f foreign currency transactions
o f whole system reached USD 6.3 billion. Along with domestic foreign
currency business to satisfy the customer’s export-import payment demand, in
2003 Agribank established a Dealing Room in the Agribank’s headquarter in
order to concentrate on the foreign currency business operation and capital on
the international market.
- Overseas national currency exchange service: reached USD 300 million in
2003, accounting for 11% market share in Vietnam bank system.
-

Receiving

and

implementing

foreign projects:

Agribank

received 26

investment projects with total value reached USD 660 million. On other hand,
A gnbank perform ed much other service as correspondent bank for 20 projects
with total value reached USD 1 billion.


29

The second, foreign currency operation developm ent contributed increase prestige,
raise the competition capabilities, develop the A g n b an k ’s market share. From the
foreign currency operations, Agribank approached and familiarize Agribank’s staffs
with the international bank operations, created good condition to receive more
foreign projects. Furthermore, through these operations, have more foreign banks
know Agribank as the bank participates the international commercial sponsor field.
Thus, A gnbank has received the effectiveness help from the international banks
with thousand o f A gribank’s staffs were participated the training programs,
organize the external and internal seminars w hich help to raise the operation
treatment skills o f A g nbank’s staffs specialize in the foreign currency business.
The third, through the foreign currency business operation. A gribank’s prestige was
increased. The foreign companies believed the payment transactions which were
perform ed by A gnbank. The international payment turnover o f A gnbank rose
quickly. The A gnbank’s correspondent bank system has expanded in order to serve
for

the

international payment,

up to

now

A gribank

has

established

854

correspondent banks in 110 countries and tem tories. In the first quarter, Agribank
received two awards by HSBC and Standard Chartered Banks.
3.2 AG RIBANK S RESTRICTIONS
BUSINESS OPERATION

IN

THE

FOREIGN

CURRENCY

A gnbank implemented most foreign exchange business operations in accordance
with business license but together with good developm ent operations as investment
mandate capital management, loan the foreign currency capital o f internal and
external organizations.. .Agribank still confront the challenges following:


30

3.2.1. Total o f foreign currency capital o f A gribank is not much, up to 30 June
2000, foreign currency capital source reached about USD 930 million, accounting
for 10% total o f capital (compare with total o f foreign currency capital source o f
Vietcombank reached USD 4 billion), including the fund raising from inhabitants
reached 46.7% and the credit organizations reach 20%. Only 33.3% capital source
structure was mobilized from the economy organization, it is one o f reasons that
made the input average interest rate o f Agribank is higher than other commercial
banks. With small foreign currency capital source and high input interest rate made
reduce the competition, investment, payment capability o f Agribank.
3.2.2. The foreign currency business operation o f Agirbank achieved high grow
speed in the recent years, but Agribank’s market share in Vietnam only reach a
small rate in total turnover o f export and import (only reached about 6% o f turnover
o f import or about 7.5% o f turnover of export).
3.2.3. Agribank’s international payment turnover grew steady in the recent years but
value total o f settlem ent is small, accounting for 6.8% total turnover o f export and
import in 2003. On other hand, in Agribank had big imbalanced o f settlement
turnover between export and import. In 2002 and 2003, settlement turnover o f
export was increasing but it is slower than settlem ent turnover o f im port Total
different value betw een export and import payment reached USD 1.1 billion in
whole Agribank system or an increase o f USD 406 million against 2002.
International payment activities were quick but unstable, not safety guarantees.