UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Luong Tung Bao Thesis The Adoption of TradeCard payment in Vietnam Supervisor: Prof. Nguyen Dong Phong November 2013 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Acknowledgement The process of writing this thesis is a challenging task and an insightful research. Without the love, the care, the full support and guidance from my professors and my friends, I may not reach the target and complete the journey successfully. First and foremost, I would like to express great gratitude to my thesis advisor, Dr.
Nguyen Dong Phong for his help and guidance in conducting this research and thanks for his generous as well as his support during the time I study here. Special thanks to Dr. Dinh The Hoang for his dedicated guidelines in data analysis section. And further thanks go to the members of my thesis committee for their feedback, comments and encouragement.
The thesis would not have achieved this quality without their assistance. Great thanks to my special friends in for their assistance in my life and my study. Special thanks to responders for their enthusiasm to help me collect the data and thanks to ISB friends for happy moments we spent together. Finally, I would like to give my deepest and greatest thanks to my family for their love and their encouragement.
Thank to my Dad who always trust me, teach me to be more patient to achieve success in study and life; thank to my sweet Mom who always gives me tender cares and encourages my dreams and aspirations. Page i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Abstract “Vietnam continues to be one of the world’s fastest growing sourcing locales, particularly for footwear and apparel,” said Drew Dempsey, Vice President of Global Services, TradeCard Asia-Pacific in celebration of opening new offices in Vietnam in 2012. TradeCard is one of among electronics payment methods applied for over eight years in Vietnam, marking a significant development for society in general and in banking particularly. Besides that, more and more Vietnamese companies have started using TradeCard to support its business but it is still an unpopular concept for many Vietnamese people.
It has not caught on with the banks customer in Vietnam. Thus, the main purpose of this study is to identify the adoption of TradeCard in Vietnam. The study starts with the bases on some theory models such as Technology Acceptance Model (TAM), and computer anxiety in performing TradeCard payment as a moderator to employ for the analysis TradeCard payment adoption, specifically for TradeCard in Vietnam. Data of the quantitative survey is gathered from Vietnamese users in two biggest cities Ha Noi and Ho Chi Minh, who have been using this payment method with a snow ball sampling method was used to sample the subjects.
The results are expected to support the proposed hypotheses. They are expected to provide trading companies, bankers, and government with more information about the adoption of TradeCard in Vietnam. Limitations, discussions and suggestions will be explained the results in research and practice. Page ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Table of Contents Acknowledgement.
ii Table of Contents. iii List of tables. vi List of figures. vii Chapter I: Introduction .2 Research Purpose, Objectives, and Research Questions .2 Scope and Limitations .2 Chapter II Literature Review .1 Definitions of Terms .5 Electronics Payment Mean .2 Electronics Commerce Market and Electronics Payment Market in Vietnam .3 Theoretical Background of Technology Acceptance Model .1 Technology Acceptance Model (TAM) .4 Factors influencing the use of TradeCard and its relationship between Model Constructs .1 Perceived Ease of Use (PEU) .4 Information on TradeCard payment (IF) .10 Page iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.6 TradeCard payment Use (TPU) .7 The Relationship among Perceived Usefulness (PU), Perceived Ease of Use (PEU) and TradeCard payment Use (TPU) .9 Information on TradeCard payment (IF) and Perceived Risk (PR) .10 Information on TradeCard payment (IF) and Trade Card payment Use (TPU) .15 Chapter III Research Design .1 Research Questions and Associated Hypotheses .2 Subjects and Sampling .5 Pilot Test and Face Validity .20 Chapter IV Data Analysis.
The Validity and Reliability .4 Explanatory Factor Analysis .1 Information on TradeCard payment Predicting Perceived Risk with Product/Service .31 Page iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.2 Information on TradeCard payment Predicting Perceived Risk in The Context of Online Transaction .3 Variables Predicting TradeCard Payment Use .4 Comparisons between Two City Groups in Regression Analysis .1 Effective Estimation of Perceived of Use on TradeCard payment Use .2 Effective Estimation of Perceived Usefulness on TradeCard payment Use .3 Effective Estimation of Computer Anxiety on TradeCard payment Use38 4.4 Effective Estimation of Perceived Risk with Product/ Service on TradeCard payment Use .5 Effective Estimation of Information on TradeCard payment Use .1 Findings and Conclusions .1 What Significant Factors Affecting the Use of TradeCard payment in Vietnam .2 How Significant Factors Affect the Use of TradeCard payment in Vietnam .1 Perceived Ease of Use .3 Perceived Risk with Product/Service .4 Information on TradeCard Use .4 Limitations and suggestion .49 APPENDIX B – PILOT TEST ANALYSIS .54 APPENDIX C – TEST OF ASSUMSION OF REGRESSION. 56 Page v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com List of Tables Table 3-1 Measure of research variables for designing questionnaire……………………….17 Table 4-1 Response rate in Questionnaire Survey .23 Table 4-2 Response rate in Questionnaire Survey among professional groups .23 Table 4-3 Demographic Statistics with Frequency and Percentage .24 Table 4-4 Demographic Statistics with Frequency and Percentage .26 Table 4-5 Reliability of the Developed Questionnaire .28 Table 4-6 Principal Component Analysis of the Developed Questionnaire .29 Table 4-7 Correlation Coefficients among Independent Variables under Study .30 Table 4-8 Regression Analysis for Information on TradeCard payment Variables Predicting Perceived Risk in the Context of Online Transaction .31 Table 4-9 Regression Analysis for Information on TradeCard payment Variables Predicting Perceived risk with product/service .32 Table 4-10 Regression Analysis for Variables Predicting TradeCard payment use .33 Table 4-11 Hypothesis Test Summary of the Predictors Effect on Criteria .35 Table 4-12 Summary of the Regression Analysis for Separate City, Ha Noi and Ho Chi Minh .36 Table 4-13 Summary of Estimating Direct and Indirect .38 Table 5-1 Summary of Hypothesis .42 Page vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com List of Figures Figure 2-1 Research Model. The Structure of the Method approach for this Research.22 Figure 4-1 Association of the Factors in Regression Analysis Model.34 Figure 4-2 Relationships in Path Analysis Model .37 Page vii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Chapter I: Introduction 1.1 Background The Internet has grown at a remarkable pace over years, while e-commerce has become important issues nowadays, especially for international trade, TradeCard payment has been becoming an indispensable payment trend in a modern society. However, the development banking system has largely been impacted by the dominance of cash in Vietnam.
For many years, cash is still the “king” in Vietnam and most transactions are dominated by cash since the considerable personal consumption is done through the medium of cash up to now. For corporations in particular, this has resulted to problems of cost and delay, arising from the counting, bundling, transporting and depositing of large volumes of cash which has to be handled manually, as well as the risk and inconvenience in transactions with their fellow trader. The State Bank of Vietnam (SBV) made efforts in reducing the volume of cash payment transactions in the year 2006 by issuing non-cash-transaction project launched in 2006, and expect to finish this project on 2020 (SBV, 2008). The result is total liquidity composition in Vietnam changed significantly in a positive manner when the ratio of cash in total liquidity continued reducing to 14,6% in the year 2008 (as compared to that of 16,36% and 17,21% in 2007 and 2006 respectively) (SBV, 2008).
Soon after joining WTO in the year 2004, many opportunities and threats for Vietnam economic in general and banking industry are brought up for enterprises. Vietnam has to change payment transaction behaviors to adapt the inevitable trend in the world. Recent years, many new models of business have been appeared such as e-commerce, e-business, thus, IT has to be equipped in banking system to enhance their quality of services in satisfying customer’s expectation. Since almost banks offer same services, the application of new technology in bank becomes the determinant factors deciding the success of bank in compete customer’s belief in long term resulted to many kinds of modern banking applications are now applied in Vietnamese bank.
The State Bank of Vietnam has made efforts in reducing the volume of cash payment transactions by issuing non-cash-transaction project in 2006 throughout 2020. Besides, banks alliances are formed and developed quickly, TradeCard payment forms are more diversified as a standard payment term for international trading. Thereby it is time to enhance customer awareness and disseminate the TradeCard payment system in society. Page 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com There have been some previous research on e-commerce and e-banking before, but they only focus on developed countries with the advantage in IT technology.
For example, researches on the adoption internet banking in European, North America, and Finland the leading countries in online banking technology and usage. Later other researchers extent in other regions including a mix of developed and developing countries are Singapore (Tan &Teo, 2000), Hong Kong (Chan & Lu, 2004; Ho & Ng, 1994). Despite a few works are done to address the electronics payment (Ho & Ng, 1994; Plouffe, Hulland & Vandenbosch, 2001), however, authors just focus on developed countries with advantage in IT knowledge. Therefore, this research will analyze the TradeCard payment in Vietnam, which is known as a developing country.
Differently, this study focuses on TradeCard payment which is a typical TradeCard payment of e-commerce and e-transactions in a developing country in which IT and e-banking systems are still young.2 Research Purpose, Objectives, and Research Questions The main purpose of this study is to identify adoption of TradeCard payment in Vietnam through factors influencing directly to its payment process for a developing country case as well as how the factors influencing the adoption of TradeCard payment in Vietnam. The study hopes to bring general knowledge about electronics payment transaction to Vietnamese customers by clarifying which factors are essential and critical for TradeCard payment use. Factors influencing the adoption of TradeCard payment may be the foundation of related organizations that can help them can propose programs in order to approach and serve the customers effectively. This study aims to examine the factors influencing the adoption of TradeCard payment with the these specific objectives identified as following 1.
To identify significant factors that influence customer’s adoption of TradeCard payment. The corresponding research question developed was: Q1 What are main factors influencing adoption of TradeCard in Vietnam? 2. To explore how the factors affect customer’s adoption of TradeCard payment in Vietnam. The corresponding research question developed was: Q2 How do the factors influencing adoption of TradeCard in Vietnam? 1.1 Research Structure This research is organized into 5 chapters (ch.1) Introduction is to provide general introduction of the research, (ch.2) Literature review is a brief review of the literature on Page 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com technology acceptance model (TAM) and relevant theories, (ch.3) Research design is presented with the research model and set of research hypotheses based on the theories in the preceding section and methods used to test proposal model, (ch.4) Analysis is to discuss of data collection and analysis to support validation of relationships between variables and (ch.5) Results is the final chapter to present results of study and discussion of the implication of study followed by presenting limitations and future research recommendation.3 Scope and Limitations This study aims to research the adoption of TradeCard payment in Vietnam by examining factors affecting to the tendency use of TradeCard in Vietnam.