Foreign trade plays a vital role in the economy of every country, especially in the international integration; and thanks to which the demand for commodities, services manufactured domestically less than needed and the supply of commodities and services that are in need of other countries can be met. Foreign trade assists participating countries rectify shortcomings, defects existing in the domestic economy. In order to help the development of foreign trade, international payment has been born.
International payment is the final stage for the completion of commercial activities. Exporting- importing in particular and foreign trade in general only develop on the right track only when the process of international payment is implemented correctly. Not only does the international payment maintain the foreign trade, but it also expedites the foreign trade’s progress.
Amongst many methods used in the international payment, the Documentary Credits (D/C) stands out to be the most prevalent one on the account of its advantages. However, the process as to how it is practiced in reality is not exactly the same in every bank system; and in this report I would like to present steps of implementing the Documentary Credits in Vietcombank- Long an branch after my internship there.
My internship report consists of 5 parts:
Part 1: Introduction of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and Vietcombank- Long an branch Part 2: Given tasks during the internship in Vietcombank- Long an branch Part 3: Steps of implementing the Documentary Credits (D/C) in Vietcombank and some notes from the real process drawn out Part 4: Experience after the internship in Vietcombank- Long an branch Part 5: Recommendations for Vietcombank- Long an branch
Part 1: Introduction of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and Vietcombank- Long an branch 1. Overview of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank):
Date of establishment:April 1st, 1963
- Head office:198 Tran Quang Khai, Ha Noi
- Telex:411504/411229 VCB-VT
- Swift:BFTV VNVX
- Phone number:84-4-825 1322--8240976
- Fax:84-4-826 9067
- Contact centre:1900 54 54 13
Leading bank for prosperous Vietnam with the motto “Always for customers’ success” As the oldest commercial bank for external affairs in Vietnam, Vietcombank has always been known as the most prestigious bank in trade finance, international payment, foreign exchange, guarantee and other banking and financial services including credit cards: Visa, Master Card… On April 1st, 1963 Vietcombank was found under the Decision 115/CP dated October 30th, 1962 by separating from the Foreign Exchange Management Department of the Central Bank (now State Bank). Vietcombank operated under the direct management of the State Bank with the functions of the only bank to serve external economic affairs and export-import lending for the whole country. Vietcombank is a leader amongst Vietnamese commercial banks in adopting advanced technology – computerization of banking profession in the whole network, and an agent for VISA cards payment for BFCE Singapore. With the paid-up capital 3,955 billion Vietnam Dongs, the Bank is a special state-owned corporations, organized under “90, 91 Corporation” structure, an interbank forex payment center for over 100 domestic banks and foreign banks’ branches operating in Vietnam, as well as the first commercial bank in Viet Nam to deal foreign currencies, and always takes the largest market share in the interbank forex market. Vietcombank currently aims at 3 categories of customers: Individuals, corporate and financial institutions. With the motto “Always for customers’ success”, the bank’s dominant objective is to maintain the role of a leading commercial bank in...