Translation Topic: VCB and Payment Cards 1. To diversify business activities is one of the strategic objectives of Vietnam Foreign Commerce Bank (VIETCOMBANK/VCB). 2. The service of payment by international credit cards and recently the issuance of the payment cards of VCB have affirmed the determination of VCB in modernizing banking technology to develop and integrate into the world market. 3. Mr. Nguyen Duy Lo, First Deputy Director General of Vietcombank concurrently Director of HCM City VCB said: At present, 70% of cash is being circulated outside banks and only 30% of cash is liquidated through banks. 4. The use of payment cards will gradually replace the above ratio. 5. Since 1991 VCB has acted as sole agents of payment for foreign banks to put the four most common international credit cards into use in Vietnam: VISA, MASTER CARD, JCB, and AMERICAN EXPRESS. 6. Nowadays, credit cards are no longer new modes of payment to Vietnamese businesses, including even private businesses. 7. With over 500 places to receive cards in the whole country (HCM City, 330; Hanoi, 140; other cities, 30), there are favorable conditions for businesspeople and tourists coming to Vietnam. 8. Only in the first nine months of last years, VCB liquidated by international credit cards an amount of over $US 100.6 million. 9. This service has brought VCB $US 439,350 fees of service. 10. Payment by international credit card is a service bringing high economic efficiency and bears almost no risks. 11. For that reason, commercial banks, foreign bank branches in Vietnam are competing very harshly with VCB. 12. On the other hand, since 1 July 1993 VCB has begun issuing its own payment cards. 13. After more than a year of implementation, VCB has had 240 places of receiving cards (type A, type B) and issued 325 cards with an amount of money of issuance reaching 8,4 billion and the sum of payment is over 5 billion dong. 14. However, according to Mr. Nguyen Duy Lo, the issuance of payment cards is merely the "process of self- development" of VCB and this had not yet been used in bussiness circles and the people. 15. To turn the payment by card into decree, there must be the common mechanism of the State. 16. At the same time with the new decision of the Prime Minister about supplementing and amending a number of articles on managing foreign currencies to proceed to "sole use of Vietnamese dong in the territory of Vietnam", VCB will issue more cards to foreigners for their convenience.