Internship Report Essay


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.

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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 II. Content:

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 Vietnam and to be an international bank in region in the next decade.

Overview of Vietcombank

Long an branch: 

Brief Introduction: Vietcombank had its first branch in Long an Province, which was inaugurated on October, the tenth 2005, contributing to the total nationwide branches of 64. Vietcombank – Long an branch is located at 134-136-138 Nguyen Huu Tho Street, Ben Luc District, Long an Province. Account- ing Dept Payment and Business Services Dept

Customer Dept Treasury Dept Inspectors Division Personnel Dept Transacti- on Office 1 (Tan An City) Duc Hoa Transacti- on Office Can Giuoc Transacti- on Office Can Duoc Transacti- on Office DIRECTOR BOARD In its initial phase of operation, Vietcombank- Long an branch will implement its existing advantages of payments in the import-export, expedite investment in the projects of Industrial Parks in Long an Province as well as grant credit to a wide range of customers from the FDI enterprises, joint-venture companies, mediocre and small companies to individuals.

Besides these major activities, Vietcombank- Long an branch will also focus on such services as paying salaries, issuing and making transactions through cards, making foreign exchange, savings, and mobilizing deposits…

Organizational Structure:

Part 2: Given tasks during the internship in Vietcombank- Long an branch –

Reading the guidance of the process of implementing Documentary Credits in Vietcombank- Long an branch – Receiving training and explanation of the process from the instructor – Observing the instructor to categorize documents and carry out the practice of Documentary Credits – Recording the real process and comparing with the process in guidance to make the report – Copying materials

Part 3: Steps of implementing the Documentary Credits (D/C) in Vietcombank- Long an branch and some differences from the theoretical process drawn out 1.

Steps of practicing the Documentary Credits in Vietcombank- Long an branch: A. Advising L/C or rectifying exporting L/C:

  • Receiving, sending the arrival of L/C and origin L/C to customers or rectifying origin L/C
  • Recording copies of L/C, rectifying L/C and the informing letter of L/C, advising to rectifying L/C B. Receiving the documents for exporting L/C:
  • Receiving the request to pay based on the established documents; the necessary papers consist of:
  • The letter requesting payment
  • Origin L/C
  • The letter confirming L/C with the right signature
  • Corrections for origin L/C (if present) The letter rectifying L/C with the right signature (if present)
  • The documents (consisting of the origin one for sending and the copied one for recording)
  • Scanning the documents: Comparing the documents with the content of L/C or the corrections of L/C with the letter requesting payment:
  • Expiring date of L/C/ validation of presenting the documents (in case of expiring, it is necessary to inform customers)
  • Types of receipt
  • Number of each type of receipt
  • The amount on the invoice
  1. Clearly putting date, time to receive the documents on the letter requesting payment of customers. Putting up the detailed list.
  2. Sending fax/ scan of the list and all papers of the documents to the head-quarters.
  3. While awaiting the result from the headquarters, it needs to check the compatibility of the documents:
  4. For the compatible documents: using express delivery to send the entire list and the documents to the headquarters
  5. For the incompatible documents: suggesting corrections or substitute documents from customers
  6. Having the express delivery to send the entire list and all documents to the headquarters.
  7. Copying and recording the entire documents.
  8. C. Payment for the exporting documents:
  9. After receiving the credit informing, passing to customers.
  10. Recording the list and the copy of credit informing.

Receiving the request to discount the exporting documents: -After receiving the request to discount, Vietcombank- Long an branch will check the discount limit. In case customers have got the discount limit, the bank will grant it under its own authority. -Scanning the documents with which the discount application is attached -Faxing/ scanning the transaction receipt to the headquarters. Establishing the informing to sponsor trade for the transaction. In case the documents have defects, the bank will be answerable to its decision. -Establishing the list, the informing to sponsor trade, application to request discount, the documents (if present) and then sending all to the headquarters.

Recording the transaction receipt. E. Receiving the request to issue/ rectify importing L/C -Receiving the request to issue/ rectify L/C from customers.

The application consists of:

The letter to issue/ rectify L/C A copy of trade contract or any paper that has the equal value of the contract.

A copy of the registration for business certificate and the business code of the export-import companies for the first time they open L/C +The decision to allow importing from Trade Ministry or Professional Control Department for the exports with specific conditions. -Checking the quantities, content and the commensuration of the application to issue/ rectify L/C

The letter to open/ rectify L/C must be signed by the account’s owners or chief accountants. Any amendments on the letter must be signed to confirm by the account’s owners or the one who is authorized by the account’s owners; and bank clerks are not allowed to amend, supplement any detail in the favor of the one who open L/C.

Signing and putting clearly date, time of receiving the request application to open/ rectify L/C

Checking the limit of issuing L/C: In case customers have not got the limit, Vietcombank grants the limit of issuing L/C under its authority to grant credit. Establishing the informing to sponsor trade for the transactions.

Faxing/ scanning and then sending the list, the informing and application to open/rectify

L/C to the headquarters. Recording the transaction documents. F. Receiving and transferring the documents of importing L/C:

After receiving the fax/ scan of the documents, the bank informs its customers of “the outside” of the documents. -Recording the list of documents, the copied one G. Guaranteeing collecting freights according to L/C: Receiving the application of issuing the guarantee of collecting freights from customers

Checking and comparing between the application of guarantee and the copy of invoice, bill of lading and other conditions stipulated on the L. C Signing and putting clearly the collecting time

Establishing the detailed list of documents

Faxing/ scanning the application and the documents to the headquarters -Recording the copy of the guarantee and authorized document (if present). Some notes drawn out from the real process:

Firstly, small branches or provincial branches do not have right to establish L/C, but all information needed for the process will be sent to the headquarters. In case importers working in Long an province request Vietcombank- Long an branch to open L/C for their favor, their documents, papers, applications are subject to the first examination of the bank clerks in Long an branch before being sent to its headquarters and the establishment is made there only. Secondly, L/C after being made is sent to issuing banks for verification and suggestion to rectify if necessary.

When export-import companies do not have a legitimate assurance of the documents they have made, they can send the L/C to their banks for the assistance of checking and recommendations of amendments if the documents really lack. The reason is that, unlike the nine-step process in textbook or theoretically taught, banks rarely make L/C because most of the export-import companies have their own international payment department in which the establishment of documents, L/C and other necessary papers are made.

Except some new-starts or small ones without the separated department of international payment, they would need the assistance to open and release L/C from their banks.

Part 4: Experience after the Internship in Vietcombank Long an Branch

After the internship in Vietcombank- Long an branch, I myself now can understand the real process of Documentary Credits; and I also have discovered the reasons why the real process has some differences from the theoretical one as mentioned in sub-section b of Part 3.

The internship in Vietcombank- Long an branch is really helpful as it provided me with new knowledge as well as consolidate the theoretical one. Moreover, I have had real chance to mix myself into the working environment of a bank; thanks to which I can learn other skills such as how to communicate with, and how to work harmoniously cooperate with colleagues. Besides, after the internship I learnt how to use the photo machine to have materials copied.

Above all, the internship has presented me with the opportunity to join in a real organization, which will help me much to overcome the feeling of “fish out of water”, join quickly and work effectively in my future job in a bank.

Part 5: Recommendations for Vietcombank- Long an branch

Enhancing and developing D/C service alone and other services in general: Vietcombank- Long an branch can develop D/C product through enhancing the remittance operation by the way to diversify remittance services in phone banking, mobile banking, internet banking…in order to bring bank’s operation closer to customer in country and in over the world.

Besides, Vietcombank- Long an branch had better to invest to establish more transaction offices in Long an Province in order for customers in isolated locations such as Tan Hung, Vinh Hung District…to get access to D/C service of Vietcombank in particular and other services in general more easily; save time, cost.

Widening the advertisement, marketing activities of remittance operation to customers: D/C operation of Vietcombank is well-known by customers because of its long-term prestige.

However, since Finance Banking field is developing quickly, Commercial joint stock banks are competing harshly, building a suitable and long-term customer strategy is really necessary to Vietcombank. First of all, Vietcombank needs promote marketing by introducing the advantages of products directly to customers. In details, Vietcombank should divide customers into different group (in area, business profession, scale of companies…) with the purpose of introducing products suitable to needs and reality of their operations.

As for the customers transacting for the first time, Vietcombank needs to instruct them carefully about procedure sequence to help them complete the transaction quickly. As for the familiar customers with prestige, Vietcombank had better have a favor about the services fee…with purpose of establishing a system of closer customers who trust and choose services of Vietcombank only. In order to do so, Vietcombank has to have a professionally trained staff.

Besides, Vietcombank also needs intensify broadcasting the image, brand name of the bank on the means of communication like newspapers, radio, television, internet…in order to approach the customers quickly.

Innovating technology, using modern equipments frequently: Nowadays, applying the modern technical equipments into dealing process, resolving work, saving process, tracking documents is the essential thing to do of the bank. Modernizing the bank’s transactions not only helps work more efficiently; save time, fee; but also reduces the pressure of work for officers, satisfies the stricter demand of customers.

Vietcombank needs perform the test, maintenance to ensure the stability of every operations of the bank, and avoid breaking the system down and have influence on the speed of work. Moreover, Vietcombank also needs to develop the application of information technology in broadcasting the image of the bank. In details, the formal website of Bank is needed to invest more in both interface and contents; and frequently updates the information (price list, promotion programs, new products…).

Training and developing the human resource:

Since the high professional human resource is the biggest competitive advantage of the bank, developing the human resource must be the first element in the policies of the bank. So, opening the courses about training transactions to improve the skill for employees; updating the new technological process, new regulations relating to Bank operation; and paying much attention to recruit the employees good at professionalism, having a lot of experience in order to specialize gradually the D/C in particular and other services of the bank in general.


With experience of nearly 50 years in banking field, Vietcombank now has stood out becoming one of leading banks in Vietnam, especially in the international payment. Thanks to nonstop self-upgrading and updating new professional knowledge, technology, services together with expanding worldwide connection network with leading banks around the world, Vietcombank Long an is always the first choice of those who are working in the export-import field in Long an Province.

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Internship Report Essay. (2016, Oct 10). Retrieved from