V IE T N A M N A T IO N A L U N IV E R S IT Y , H A N O I H A N O I SC H O O L O F B U SIN E SS D uong D anh C D E V E L O P IN G R U R A L B A N K IN G S E R V IC E S A T V IE T N A M P O S T A L SA V IN G S S E R V IC E C O M P A N Y M a jo r : B u s in e s s A d m in is tr a tio n C o d e : 60 34 05 M A S T E R O F B U SIN E SS A D M IN IS T R A T IO N T H E SIS S u p e rv is o r: D r T r a n P h u o n g L an H a n o i- TABLE OF CONTENTS C o n ten ts Page ACKNOW LEDGEMENTS V L IS T O F A C R O N Y M S vi L IS T O F T A B L E S A N D G R A P H S viii A bstract ix T ó m tắt xi C H A P T E R 1: I N T R O D U C T I O N 1.1 P ro b lem 1.2 O b jectiv es & A im s 1.3 Thesis Q u estio n s 1.4 A p p ro a c h e s 1.5 S co p e o f w o rk s 1.6 Significance 1.7 E xp ec ted R esults 1.8 Structure o f the thesis C H A P T E R 2: L I T E R A T U R E R E V I E W 10 2.1 D efinition o f rural b an kin g 10 2.2 C o m p o n e n ts o f rural banking 11 2.2.1 P ro d u cts & services 11 2.2.1.1 S avings 11 2.2.1.2 Loans 12 2.2.1.3 M o n ey transfer 14 2.2.2 S ervice providers 14 2.2.3.1 Form al service providers 14 2.2.3.2 Sem i-form al service providers 15 2.2.3.3 Informal service providers 16 2.2.3 C u sto m e rs 17 2.3 Specific characteristics o f rural banking 18 2.3.1 H ig h transaction cost 18 2.3.2 H ig h risk 18 2.3.3 H ig h illiterate rates o f the custom ers 19 2.4 Factors affecting developm ent o f rural banking 20 2.4.1 G o v e rn m e n t Policies 20 2.4.2 E xcessiv e and increasing dem and for rural banking 23 2.4.3 C ultural and custom s issues 25 2.5 Trends in develop ing the rural banking services 27 2.5.1 R ural custom er need orientation 27 2.5.2 In nov ative distribution channels 27 2.5.3 B u ild in g on existing netw ork o f distribution 28 2.5.4 M in im iz in g risks 28 2.6 Existing success m odels in developing rural banking 29 2.6.1 L arg e netw ork o f distribution 29 2.6.2 P ro d u ct m anag em ent & low cost o f operating 32 2.6.3 Risk m a n ag em e n t 34 2.7 C hapter rev ie w 37 C H A P T E R 3: ANALYSIS ON VIETNAM RURAL BANKING MARKET 38 3.1 V ietnam poverty profile 38 3.2 D em and for form al rural banking services has never been met 39 3.2.1 C alculatio n o f un-banked rural population 39 3.2.2 T h e w a y s rural households deal w ith the absence o f formal banking services 40 3.3 Rural b an k in g providers 43 ii 3.3.1 F orm al rural b an k in g providers 44 3.3.2 Semi form al rural banking providers 47 3.3 49 Informal rural banking m echanism s 3.3.3.1 F orm s o f operation 49 3.3.3.2 A d v an tag e s 51 3.3.3.3 D isad v an ta g es and negative im pacts 51 3.4 M acro policies on rural banking 52 3.4.1 The State P olicy on agriculture, countryside and farm ers (Policy o f “T am n o ne” 52 3.4.2 G ov ernm ental D ecree (No 41 /2 /N D -C P ) on credit policy for agriculture and rural developm ent 54 3.4.3 Subsidies for loans from V B S P and V D B 55 3.5 Effect o f rural inhabitant's culture & custom on their banking behavior 56 3.6 A pply model o f P E S T analysis 57 3.7 C hapter review 59 C H A P T E R 4: V I E T N A M P O S T A L S A V IN G S S E R V I C E 62 O v erview o f V ietnam Postal Saving Service C o m p a n y (V PS C ) 62 4.2 V N P o st needs an alternative business line to offset the stagnant outlook for traditional postal services 65 4.3 C hallenges facing V ietnam postal savings service 66 4.4 A nalysis on strategic adv antages o f V PS C in dev eloping rural banking services 66 4.4.1 F avorable ditions from G ov ernm en t policies 66 4.4.2 V ision o f L ead ers in developing rural banking services 67 4.4.3 P rom inent n etw ork & technical capacity 69 4.4.4 L ow transaction cost 70 4.4.5 C onv en iences and trust recognized by rural custom ers 71 4.4.6 A dv antag e in prevention o f risk from asym m etric inform ation 74 iii 4.5 A pply S W O T analysis 74 4.6 C hapter review 79 C H A P T E R 5: R E C O M M E N D A T I O N 81 5.1 Products offered 82 5.1.1 A ccum ulation savings account 82 5.1.2 Small loans 84 5.2 Solutions should be taken into consideration in designing product & process 86 5.2.1 F or savings service g^ 5.2.2 F or small lending service gg 5.3 M od el o f operation 94 C O N C L U SIO N 95 Reference 100 iv ACKNOWLEDGEMENTS I w o u ld like to express my grateful to Lecturers and staff from H SB M B A program for their know ledge and support during my M B A course at Hanoi School o f Business, especially to Dr Tran Phuong Lan for her excellent supervision, advices and com m ents I also w ant to show m y thankful to my colleagues for their discussions and assistances A nd last but not least, I m ust express my deep gratitude to m y beloved family, all those w h o w ere alw ays besides me, for their encou rag em en t and supports H a Noi, O ctober 2010 D u o n g D anh Chung LIST OF ACRONYMS BIS Bank for International Settlements cw u C o m m u n e W o m e n ’s Union CCP C o m m u n e Cultural Point D PT D istrict Post & T elecom m unication ESBG Euro Savings B ank Group FU F a rm e rs ’ U nion GSO G eneral Statistic Office IFAD International Fund for A gricultural D evelopm ent ILO International L abor Organization LIH L o w -in co m e H ousehold LUC L and-use certificate LPC Local P e o p le ’s C om m ittee MFI M icrofinance Institutions NGO N o n-G ov ernm en tal O rganization UN U nited N ations UNDP U n ited N ations D evelopm ent Program s PCF People's Credit Fund PC P e o p le ’s C om m ittee PO Post O ffice ppr P rovincial Post & T elecom m unication ROSCA R otating Savings and Credit Association ROSLG R otating Savings and Lending G roup SBV State B ank o f V ietnam SO Social O rganization VBARD V ietnam Bank o f A griculture and Rural D evelop m en t VBSP V ietnam Bank for Social Policy VDB V ietnam D evelop m ent Bank V FU V ietnam F a rm e rs ’ U nion V N P ost V ietnam Post Corporation vi VNPT V ietn am Post & T eleco m m u n ica tio n G rou p VPSC V ietnam Postal S av in gs Service C o m p a n y V PS S V ietnam Postal S avings Service VWU V ietnam W om en 's U nion WB W orld Bank W SB I W orld Savings Bank Institute LIST OF TABLES AND GRAPHS T a b le/G p h N am e o f T able/G rap h Page Table 2.1 S u m m aries profiles o f the participating savings banks w ith its large outreach to custom ers in rural areas 30 Table 3.1 T h e Poverty Rate under the national poverty line for period 2006 -2009 39 T able 3.2 C alculation o f un-banked rural population 40 T able 3.3 T y pology o f Credit Sectors and Lending Share to H ouseholds 43 Table 3.4 N u m b e r o f outstanding Savings accounts opened w ith 44 m a in formal rural banking services providers Table 4.1 V P S C ’s business results in recent years 64 G raph 4.2 Postal savings service inside V N P o s t’s organization & operation 65 viii A bstract D E V E L O P I N G R U R A L B A N K IN G S E R V I C E S A T V IE T N A M P O S T A L S A V IN G S S E R V IC E C O M P A N Y Student: D u o n g D a n h C - M B A , 2008-2010 School o f Business, V ietnam National University H a Noi Supervisor: Dr T ran P h uo ng Lan O ctober 2010, 101 pages V ietnam is am o n g the poor countries in the world, w ith 72% o f population residing in rural a re a s' Like m ost other developing countries, rural households' access to financial services is very limited The nature o f this limitation is particularly country specific, co m m ercial banking services are only for the top 10- % o f the population O n the other side, those in extrem e poverty, the bottom -2 % o f the p o pulation are the targets o f very large socio-political directed lending program s via V ietnam B an k for Social P olicy2 This leaves the vast m iddle m arket, about 70% o f the population, those m ainly living in rural areas alm ost entirely un-banked In the text o f this absence o f appropriate form al banking services, many rural household s have to rely on informal banking services for savings and borrowing T hese inform al ban k in g service providers offer no paym ent capacity, nor flexible savings opportunity T he real attraction o f these m echanism s o f informal banking is the possibility o f qualifying for credit H ow ever, it is very insecure and there have been m a n y scandals B ut perhaps most w orrying o f all is the fact that rural househ olds are te m p ted into borrow ing at very, very high interest rates co m p o u n d interest per day is not uncom m on This fact means that 1% rural c o m m u n ities have been thirsting for essential basic formal banking services, and o f G SO : S ta tistic a l Yearbook 200H WSBI: W orking w ith S avings Banks in order to double the num bers o f savings accounts fo r the p o o r (P roject w ith Vietnam P o sta l Savings Service Com pany, 2010, pa g e 2) ix funds are plentiful As the year progresses, funds becom e scarcer, especially w hen the next crop cycle begins and necessary investm ents have been made If farm ing households have no access to loan during the lean times, they m ust hold back a larger share o f their capital to meet consum ption needs, or sell their future harvest early at a low price in return for cash W ith access to small loan (as well as savings and rem ittance), households can invest m ore confidently in their prim ary incom e generating activities because they have m ore options for m eeting both expected expenditures and unexpected shocks Small loans can also free b o rro w ers’ ow n capital by p erfo rm in g an incom e-sm oothing function, as well as directly fund agricultural investm ents that generate their ow n repaym ent flows T he incom e-sm oothing role o f small loans is particularly im portant for farm ing households subject to extrem e incom e variability during the course o f any given year Therefore, offering small loan, especially the short-term em ergen cy cash flow loan to keep rural househ olds aw ay from black m arket o f m o ney lenders is very im portant to and desirable by the rural households 5.1.2.2 Product description • This will be small loan that conform ity with the existing regulation on micro credit by State B an k o f Vietnam • The purposes o f the loan include agricultural prod uction and rural h o u seh o ld ’s co nsum ption • The loan application procedures will be executed at any Postal Saving Post Offices (including co m m u n e cultural points) T hen ap p licatio n’s docum ent be scanned and transm itted through Postal Savings Service transaction online system for centralized loan application appraising • The disbursem ents o f the loan if approved will be executed through paym ent 85 savings account that has been already opened by the applicant 5.2 S olu tion s should be taken into consideration in the process o f designing p roduct an d process 5.2.1 F o r savin gs service In order to actual tailor rural ho u seh o ld s’ needs for savings services, V PSC should repackage its existing savings product features to m ake a m uch m ore attractive proposition available through all post offices and m arket this in w ays that make V P S C ’s rural banking relevant to the huge un-banked m iddle m arket in Vietnam The w o rk s and activities should be carried out to repackage V P S C ’s existing savings pro ducts include: 5.2.1.1 The main activities related to product design should be carried out a) To re-eng ineer existing savings and m oney transfer products to m ake these product offered m uch m ore useable for the un -banked m ass m arket and get aw ay from co m p etin g on the same terms as com m ercial banks w ho already meet the needs o f the top 10- % o f households b) The n ew product offered after repackaged m ust be presented in m uch relevant w ays to the rural un-banked households through all post offices and com m une cultural points that reach into areas w here com m ercial banking are not available c) S o m e m app ing activities should be carried out as follows: • A gree custo m er needs: M apping out clearly the needs o f rural households and handle their needs for financial transactions; • M ap existing product features against needs: to review existing product features, ben ch m ark these against identified needs o f target m arket and recom bine them to give a revitalized service package Liaise b etw een M arketing departm ent and 86 O peration s departm ent on custom er needs and on required changes to procedures • Identify delivery issues over IT network that am o n g current available options such as: PostN et, dial-up PoS device, G PRS ect Resolving connectivity issues that stop services being delivered through the full range o f postal outlets especially those com m un e cultural points that closest to the target m arket in c o m m u n ities that have no other banking presence 5.2.1.1 The main mapping activities related to strengthening, underlying business procedures should be carried out a) M a p out p roduct w ork flow for new product packages and consequences for V P S C and V N P o s t operational units: rew orking operating procedures and V PSC com m u n ica tio n s w ith tellers to help them serve cu stom ers better so they can access services in a discreet w ay that m axim ises their control over their finances; b) Risk m anagem ent: R eview new w orkflow s for operational risk im plications using international and local best practice templates: to review revised operational procedures for doing business via post offices (inform ation flow, cash m anagem ent, service reliability, etc) M ain deliverable a risk review o f proposed new operating procedures b enchm ark ed as far as practicable to BIS guidelines and local regulation c) D raft new operating procedures to m inim ize operational risk (particularly in the area o f rem ote cash m anagem ent d) M ap out required com m unication strategy and retraining plan for V N P ost staff involved in delivering new service package to target market e) T raining and staff: to design training plan and course m aterials for different levels o f tellers responsible for delivering new service package and improve quality o f V S P C co m m u nicatio n with tellers 87 5.2.1.2 The main activities related to marketing approach should be carried out are: a) Identification o f custom er needs in mass m iddle m arket and developm ent o f new m arketing approach: developing a m arketing package that shows the relevance o f m odern postal rural banking to ordinary V ietnam ese households who currently see com m ercial banks as com pletely inaccessible to them; b) M ap com petition (both formal and informal) c) Identify w ho else reaches target market particularly well d) C om p are V P S C m arketing w ith other entities reaching target m arket well e) C o m m issio n creative w ork on advertising new service package 5.2.2 For sm all lend in g service In o rder to m in im ize risks and cost o f lending transactions, there are a lot o f features that V P S C should pay attention on while designing the products and process o f lending T hese features are: 5.2.2.1 Solutions should be taken into consideration during the process o f designing products a) Consider rural household as a unit o f business A fundam ental procedure o f a lending transaction that any lenders m ust pay attention on is ju d g in g repaym ent capacity o f the borrow ers O f w hich, the main factor that affects the b o rro w er’s repaym ent capacity is the sources for repayment In fact, m any farm ing households have been trying to diversify their incom e sources to tide them ov er difficulties diversifications include: between cycles of farm ing works These • M any o f those fan nin g households diversify their sources o f income by engag in g in a variety o f farm and non-farm activities N on-farm activities include all rural econom ic activities outside o f agricultural production and often run co unter-cyclically to agricultural activities, w ith m ost labor and resources tied up in agriculture during the crop season and available during the off-season • M any rural household m em bers engage in trading, rudim entary agricultural processing (such as rice husking), day labor and livestock husbandry, in addition to p rod ucing staple foods and cash crops H ousehold m em bers m ay also travel to other parts o f the country for seasonal em ploym ent on farms or em ploym ent in cities, or even go abroad and send back earnings (remittances) D ifferent family m em bers p e rfo rm these activities and contribute all or part o f their incom e to the fa m ily ’s savings N o n-farm in g incom e and e m p lo y m en t are extrem ely important for rural (m ainly farm ing) households This variety o f inco m e generating activities m e an that, m an y rural borrow ers can make regularly (m ay be w eekly or m o n th ly ) loan paym ents over the course o f a long term loan For exam ple, du ring process o f ju d g in g repaym ent capacity o f a rural household, lending officers m ight sit dow n w ith this family and discover that it has seed left over from the previous year that it intends to use for planting, but it needs a loan for fertilizer later in the production cycle V PSC m ay also discover that the family w ould prefer to pay o f f the fertilizer loan prior to the harvest w ith the so n ’s salary as a w orker in o rd er to clear the debt more quickly In this instance, w e might offer a three-m onth loan for the fertilizer purchase, repayable on a m onthly basis From these points o f view, in case o f lending to a rural household, V PS C should assess the b o r ro w e r ’s repaym ent capacity by looking at all o f a h o u seh o ld ’s income sources, not ju s t the incom e produced by the investm ent o f the loan proceeds By considering rural households as com plex econom ic units by this way, V PSC could be able to increase repaym ent rates dramatically 89 b) Loan terms and conditions should be adjusted to accommodate cyclical cash flow s Agricultural activities can p rod uce cash flow s that are cyclical (determ ined by crop or poultry pro duction sched ules) or that have long lead times before providing a return (e.g., tree crops o r b e e f cattle) expenditure patterns This can influence the for the w id er rural c o m m u n ity income and w here agriculture is a significant eco nom ic activity Furtherm ore, agricultural pro duction often requires staggered cash disbursem ents to meet production schedules, w hile allo w ing for large lum p-sum paym ents at or soon after harvest o r the slau gh ter or sale o f livestock This is particularly true for farmers w ho use m o dern inputs, such as im proved seed, fertilizer and pesticide, as well as hired labor for harvesting In such cases, financing arrangem ents require balloon rep ay m en ts at harvest and the flexibility to avoid situations w here households are forced to sell p ro duce w h e n m arkets are flooded and prices are low Crop cycles p ro d u ce w id ely vary ing cash flow s that m ake regular, significant loan paym ents difficult at certain tim es o f the year This is particularly the case in poor, rural areas that dep en d on agricultural p ro duction for cash income In all o f these cases, farm ing h o u seh o ld s m ust cope w ith w idely varying cash flow s that not m atch the rigid rep ay m en t schedules required by the lenders P rom oting flexible paym ent options could help add true flexibility to the loan products offered to rural households Because o f ab ov e m e n tio n e d real conditions, V PS C should m odify loan term s and conditions to track these cash -flo w cycles m ore closely The follow ing repaym ent options to better suit the cash flow s o f agricultural activities relative to the loan products should be considered: • O ne-tim e pay m en t o f capital and interest • Periodic paym ents o f equal am oun ts 90 • Periodic interest paym ents, with paym ent o f capital at the end o f the loan term 5.2.2.2 Solutions should be taken into consideration during the process o f offering rural credit a) Bringing specialized agricultural knowledge into the credit process O ffering loan to rural households requires participating into chains o f agricultural production It also m eans that the lender m ust have eno ugh kno w ledge about farm ing w ork To ensure these requirem ents, agricultural lenders must have specialized s ta f f w ith training in crop and livestock production Similarly, VPSC should hire ag ro nom ists and veterinarians to support loan decisions and m ethodologies Just as urban micro enterprise loan officers can quickly tell how well a small shop is m anaged, specialized s ta ff in rural areas can ascertain how well a farm ing activity is pursued Specially trained loan officers can optim ally adjust the terms and conditions o f an agricultural micro loan to the investm ent opportunity presented and the incom e flows o f the farm ing household to m inim ize risk to the lender F or exam ple, V P S C should send its loan officers to training courses in agriculture and agribusiness T hese training courses could help loan officers understand farm ing as a business and thus more effectively m o nito r farm er clients Such skilled staff can d ev elo p sophisticated tools to support the credit decision process Furtherm ore, V P S C also should adapt agricultural finance techniques, for example, by integrating crop-based analysis into client analysis and adjusting repaym ent schedules to take into account seasonal income cycles b) Technical criteria in selecting borrowers, setting loan terms and enforcing repayment In order to reduce credit risk, V PSC should develop lending m odels that com bine reliance on character-based m echanism s, such as group guarantees or close followup on late paym ents 91 If a lender has reliable k n o w led g e o f a potential clie n t’s character, as is the case w ith a w ell-fu nction in g credit inform ation bureau, the lender can make a loan based on that p e rs o n ’s history o f repaying financial obligations and on its assessm ent o f that p e rs o n ’s financial situation and plans B ut existing V ietnam banking environ m en t alm ost never has a credit reference system with good coverage o f poor and rural households M icro credit tech niques w ere developed as a substitute for micro le n d ers’ lack o f k n o w ledge about the characters o f potential clients and their w illingness to repay debt To serve small farm ers and farm ers in rem ote or m arginal rural areas, g rou p-based savings and lending techniques m ay be essential to mitigate risk, reduce op erating costs and enforce repaym ent A practice in rural lending is that rural h o useho ld s can not meet the collateral requirem ents for loans that I f the lenders are not flexible in requiring the collateral for the loan, then the collateral req uirem ent will never been met So, the solution should be applied in this circum stances is using a com b in ation o f personal guarantors and pledges on hou seh old assets (including production equipm ents), rather than o n ly relying on land and property titles Therefore, V P S C should accept personal guarantors, land w ithout titles, h o u s e h o ld s ’ items and business equipm ent as loan collateral c) Addressing the challenges o f liquidity management In case that V P S C tailors its loan to agricultural cycles, there m ay experience challenges in liquidity m a n a g e m e n t and periods o f low asset productivity during the off-season O f course, V P S C w ill have to tailor crop and livestock production cycles M o st o f these m a y be on e-y ea r loans and involve balloon paym ents, which results in periods o f excess and then tight liquidity over the year V PS C can m itigate these liquidity constraints by strengthening savings m obilization in urban areas as well as c o m p en sa tin g w ith rem ittances transferred from household m em b ers w o rk in g in an oth er part o f the co untry or abroad 92 d) Contractual arrangements to reduce price risk and to help guarantee repayment A gricultural lenders have consistently sought to m itigate the risks inherent in agricultural production, m any o f w h ic h cannot be controlled by small farmers, regardless o f their skills Som e o f these risks are posed by catastrophic natural disasters S om e are posed by seasonal w eath er patterns that vary by year and change the am oun t and tim ing o f available water, the prevalence o f pests and the yields o f crops Som e risks are only relatively controllable, such as the quality o f seed and fertilizer and the tim ing o f certain agricultural activities such as planting, harvesting and so on A s a w ay o f en su rin g the supply o f a sufficient quantity and quality o f a particular product, by build ing form al contractual relationships b etw een rural households, financial institutions and agribusinesses could reduce the risk related to loan Specific characteristics o f these kind contractual relationships are: + They are p ro d u ct-b a se d instead o f based on the financing needs o f the farmers only; + The p ro d u c t’s buyer, i.e the processing or m arketing com pany, is the key player in the supply chain finance structure, as they ultim ately control the cash flow backw ards and forwards; + Farm ers not receive cash but inputs in kind, such as fertilizer, seeds, pesticides etc; + R isk-sharing arrangem en ts need to be arranged for all beneficiaries o f the scheme: processors, farm ers, input suppliers and the loan provider; U nder this approach, a rural ho useho ld receives a loan from V PS C through agribusiness or farm input suppliers, and the rep aym ent is d educted from the price that an ag ribusiness pays for the f a rm e r’s crop The agribusiness may also provide 93 inputs and advice to the rural households, or these inputs m ay be provided by a third party 5.3 M odel o f operation Traditionally, m any banks now has been w orking prim arily through full-service branches, w hile in case o f offering retail banking, it is m ore effective to have a model w ith few er o f these full-service branches, but m ore outlets for product delivery that are linked to back office that w ork as an operation centre This model will reduce exp en ses for m aintaining a plural o f branch offices, while a small num ber o f o peration centers with sufficient size can em ploy high qualified and professional bankers M aking use o f ab ove m entioned reasoning, V P S C should m aintain its existing model o f offering savings services Whereas, for the small lending services, V PSC should deploy a m odel with some regional back offices that w ork as operation centers that controlling, appraising and approving lending transaction that being executed at post offices This model will reduce ex penses for m aintaining a plural o f branch offices, while a small num ber o f operation centers w ith sufficient size can em ploy high qualified and professional bankers 94 c) S easonality and co-variance o f agricultural and farm production activities, which low er m argins and increase the risks o f such operations d) Rural clients possess low' education background They also lack sufficient fixed assets to satisfy banks' collateral formalities A lth ou gh inform al ban kin g service m ech an ism has m any d isadvantages and b rought about negative impacts, it still a sign ificant source o f financial interm ediation for rural com m u n ities and can b rin g about lessons for formal banks in d ev elop in g and m an agin g rural b an kin g services O fferin g rural b an k in g services by form al institutions is very significant to the rural socio-econom ic It could help majority population and household business in the rural areas have chance to access to the formal banking services that safe, reasonable, stable, professional instead o f unofficial lending that expensive, unstable, grabbed and illegal It is also a key tool that helps creating se lf em p lo y m en t and raising farm ers’ incomes C ollateral req u irem en ts can be elim inated or reduced by grou p liability This m ech an ism in fact has prom oted its effectiveness ow in g to the rural inhabitant, as a tradition, alw ays respect com m u n ity G ro u p lend in g can reduce adm in istrative costs o f lend in g to rural households This m e ch an ism provides econom ies o f scale in lending to ho m og eno us groups rather than geographically dispersed households B o rro w er access is enhanced and transaction costs for the borrow er are likewise reduced G o v ern m en t d evelop m en t assistance has focused on subsidized credit as a m eans to exp an d credit flow to poor h ouseholds H o w ever, the real existence has sh ow n that the success w as limited 96 alternative business lines for growth and profitability that many postal organizations as well as V ietnam Post Corporation have chosen is postal banking 10 A financial institution like V ietnam Postal S avin g s Service C om p a n y with its existing u n iq u e, specific characteristics and com p etitive advantages, together w ith a p ro p er m odel o f operation can offer rural b an kin g at the m ost effective and the least transaction cost As naturally, prod uctio n cost o f offering rural banking services is rather high H ow ever, thanks to V P S C ’s existing prom inent n etw ork o f post offices and its unique characteristics o f operation based on the participating o f PPTs, D P T s and POs, V P S C can keep low operation cost w hen m aintain w idespread rural netw ork o f transaction post offices With respect to m odel o f operation, for savings services, V P S C should maintain its existing m odel o f offering savings services W hereas, for the small lending services, V PSC should deploy a model with som e regional back offices that w ork as operation centers that controlling, appraising and app rov in g lending transaction that being executed at post offices This model will reduce expenses for m aintaining a plural o f branch offices, while a small n um ber o f operation centers with sufficient size can em p lo y high qualified and professional bankers The above m e n tio n ed com petitive advantages m ech an ism o f outlets for product delivery, together w ith model o f back office that w ork as an operation centre could keep the m ost effective and the least transaction cost for V PS C in developing and offering rural banking In conclusion, rural b anking service plays an im portant role in facilitating rural com m unities in acc um u lating asset, financing agricultural production activities as well as co n su m p tio n and can for instant fostering rural developm ent H ow ever, this role has not b een bro ugh t in to play dues to the reluctant o f existing formal banking service providers From that point, the thesis explains V P S C ’s inbuilt com petencies 98 to develop and offer rural banking services By these foundations, the thesis proposed suggestions and solutions related to model o f operation, product & process designing in order to ensure the most effective and the least transaction cost for V P S C in developing and offering rural banking services./ 99 R E F E R E N C E A N D B IB L I O G R A P H Y A D B : K ey in d ica to r 2007 C itibank: S u rvey on B est P ractices in P o sta l Banking, 2007 F A O In vestm en t C entre: M icro -en terp rise D evelo p m en t P roject P rep a tio n R eport No 17/94 IF A D -B G D G en era l S ta tistic O ffice: + S ta tistic a l H a n d book 2008; + S ta tistic a l Yearbook 2008; + Vietnam H o u seh o ld s L ivin g S ta n d a rd Survey, 2006 G m een F oun d a tio n : A ssess to M icro credit; M icrofinance - basics IF A D : M a n a g in g risks & d esig n in g p ro d u c ts f o r a g ricu ltu l m icrofinance, 2006 In fo R eso u rces: F ocus No2, S ep 2008: A c c e ssin g F in a n cia l S ervices in R ural A rea s IL O : E x p a n d in g a ccess to insurance a n d sa vin g s service in Vietnam, 2007 Ja p a n P o st B ank: A n n u a l R eport Year e n d e d M a rch 31, 2009 10 N a tio n a l E co n o m ics U niversity & U niversity o f B irm in g h a m : A ccess to cred it a n d h o u seh o ld p o v e rty reduction in ru l Vietnam, 2005 11 P revio r & Vietnam P ostal Savings Service: S u rvey on m icro credit by, 2007 12 Voice o f Vietnam h ttp ://en g lish vo ew s.vn /H o m e/V ietn a m -m isses-p o vertyred u ctio n -g o a ls-fo r 2008/200812/100718 vov 100 13 V ietnam ese C o m m unist Party: C entral C o n feren ce N o on agriculture, co u n trysid e a n d fa rm ers (Tam nong Policy) 14 V N P T -L ienvietB ank: D raft on P roposal o f L ien vietP o stB a n k 15 WB: + W o rld D evelo p m en t Indicators data b a se, 24 A p ril 2009 + P ro jects w ith Vietnam + F o re c a ste d co u n try Vietnam 16 WB: D F C and M ek o n g Econom ics V olum e 1, V ietnam , 2006 W SBI: W orking w ith S avings B anks in o rd e r to d ouble the n um bers o f sa vin g s a cco u n ts f o r the p o o r (P roject w ith Vietnam P o sta l S a vin g s Service, 2010) 18 W SB I & E SB G : P ersp ectives N o56: Who a re the clien ts o f Savings banks, A p ril 2008 19 A lva d o a n d C h a rm el (2002) a n d B erdegué (2003) 20 G o n za lez Vega, 2003 21 Hirschland (2003a) and Allen (2002) 22 Le Lan, N h u -A n Tran: Tow ards a viable m icro fin a n ce secto r in Vietnam IL O W orking p a p e r series No 5, 2005 23 M cC arty: M iro fm a n ce in Vietnam, 2001 24 P ham Thi Thu Tra & R opert lensink: H o u seh o ld B o rro w in g in Vietnam, J o u rn a l o f E m erg in g M arket Finance, 2008 25 R iedinger, J e ffre y M., Innovation in R u l F inance: In d o n esia 's B adan K redit K eca m a ta n Program , W orld D evelopm ent, Vol 22, No [...]... tới các khu vự c n ông thôn -phát triển và ch iếm lĩnh thị trư ờn g ngân hàng bán lẻ cho khu vực nô n g thôn Bản luận văn này p h ân tích những hạn chế trong tiếp cận các dịch vụ ngân hàng tại khu vự c nô n g thôn, chỉ ra nhữ ng ảnh hưởng của dịch vụ ngân hàng đối với sinh kế của ngư ời dân nôn g thôn Trên cơ sở thực tế nhu cầu thị trường, bản luận văn xác định cơ hội kinh doan h trong việc phát triến... người dân nô n g thông đang rất cần đến các dịch vụ ngân hàng cơ bản và họ có đủ khả năng chi trả các chi phí hợp lý cho các nhà cung cấp dịch vụ chính thức Với qui m ô 7 0 % dân số V iệt N am , trong đó đa phần sống tại khu vực nô n g thôn chưa được sử dụ n g các dịch vụ ngân hàng thiết yếu, rõ ràng là cơ hội rất lớn cho C ông ty D ịch v ụ Tiết kiệm bưu điện (T K B Đ )-vớ i m ạng lưới bưu cục rộng lớn... trong việc phát triến và cung cấp dịch vụ ngân hàng cho khu vực nô n g thôn cho các định chế tài chính như công ty D ịch vụ Tiết kiệm B ư u điện Đ ồng thời, bản luận văn đề xuất n h ũ n g giải pháp phù họp cần được cân nhắc áp dụng trong quá trình thiết kế sản phẩm, thiết kế quy trình và cung cấp dịch vụ xii C H A P T E R 1: IN TR O D U C TIO N 1.1 Problem 1.1.1 Majority o f rural households are un-banked... ợ n g p hục vụ của các chư ơng trình cho vay hỗ trợ của Chính phủ thông qua N gân h à n g C hính sách xã hội Đặc thù này dẫn đến thực trạng phần lớn dân cư thuộc nh ó m có thu nhập thấp và trung bình, chiếm kho ản g 70% dân số và đa phần sinh sống tại khu vực nông thôn chưa được đáp ứng các dịch vụ ngân hàng T ro n g bối c ả n h thiếu v ắng các dịch vụ ngân hàng cung cấp bởi các định chế ngân h àn g... iên giám thốrì% kê 2008 ỉỉiệ p h ộ i n g â n h à n ẹ íiẽt kiệm thế giới: N hóm d ự án với các ngân hàng tiết kiệm nham nhân đôi so lư ợ n g tài kh o à n tiêỉ kiệm cho ngư ời rtẹhèo (D ự án tài trợ C ông ty D ịch vụ Tiếí kiệm Biỉĩỉ điện Việt Nam 2 0 ỉ 0, tra n g 2) xi hàng không chính thức thực sự không an toàn cho cả nhà cung cấp dịch vụ và khách hàng V à điều đáng lo ngại nhất đối với hình thức này là... B I) and Bill & M elinda Gates F oundation facility for savings banks in order to double the nu m ber o f savings accounts for the poor Secondary data was gathered from do cum entary sources in the form o f reports, records and review o f literature x T óm tắt PH Á T T R IẾ N DỊCH V Ụ NGÂN HÀNG CHO KHƯ vực NÔNG THÔN TẠI CÔNG TY DỊCH v ụ TIẾT KIỆM BƯU ĐIỆN Sinh viên: D ư ơ n g D an h C hung - M B A ,... sĩ Trần P hư ơn g Lan T háng 10 năm 2010, 101 trang V iệt N a m thuộ c nh ó m các nước đang phát triển trên thế giới, với 72 % dân số sinh sống tại k h u vự c nông th ô n 1 G iống như hầu hết các nước đ an g phát triển khác, tiếp cận dịch vụ tài chính của các hộ gia đình nông thôn rất hạn chế Bản chất của sự hạn chế này m a n g y ếu tố đặc thù, xuất phát từ việc các ngân hàng thư ơng mại chỉ phục vụ. .. dân có thu nhập thấp và trung bình ở khu vực nông thôn buộc phải lựa chọn sử dụng các hình thức cu ng cấp dịch vụ ngân hàng không chín h thức C ác hình thức này không cung cấp các dịch vụ thanh toán và các sản p h ẩm tiết k iệm linh hoạt Đ iểm cơ bản hấp dẫn của hình thức này là sự dễ dàng trong việc đáp ứ ng các điều kiện cho vay Tuy nhiên, cơ chế cung cấp dịch vụ ngân 1 To n g cục T h ố n g kẽ: N iên... m ass o f population residing in the rural areas w ho are currently below the poverty line by extending credit to the sm allest scale eco no m ic activity; b) F inancial objective: involve increasing the accessibility o f banking services to the rural p oor and households in a com m ercially sustainable manner M ajority o f the rural population in developing countries depends on agriculture for survival... characteristics, com petitive advantage and practical capacity B ased on that to identifying the potential and com petitive advantages o f V ietnam Postal Savings Service in offering rural banking services; f) S ug gesting appropriate products offered and p roposing key solutions to ensure the feasibility, effectiveness, risk control and profitability o f dev eloping offering rural banking services through ... thị trường, luận văn xác định hội kinh doan h việc phát triến cung cấp dịch vụ ngân hàng cho khu vực nô n g thôn cho định chế tài công ty D ịch vụ Tiết kiệm B u điện Đ ồng thời, luận văn đề xuất... g ngân hàng bán lẻ cho khu vực nô n g thôn Bản luận văn p h ân tích hạn chế tiếp cận dịch vụ ngân hàng khu vự c nô n g thôn, nhữ ng ảnh hưởng dịch vụ ngân hàng sinh kế ngư ời dân nôn g thôn Trên... records and review o f literature x T óm tắt PH Á T T R IẾ N DỊCH V Ụ NGÂN HÀNG CHO KHƯ vực NÔNG THÔN TẠI CÔNG TY DỊCH v ụ TIẾT KIỆM BƯU ĐIỆN Sinh viên: D n g D an h C - M B A , 2008-2010 K hoa Q