BIDV Review 03

A Newsletter of Bank for Investment and Development of Vietnam JSC Issue No. 3 | Apr 2015

AGM 2015 FulFilling expectation and trust

MHB Merger proMises BrigHt Future

58 years

An elite history

EXECUTIVE PRODUCERQUACH HUNG HIEPSenior Executive Vice President

EDITORIAL BOARDBRANDING AND PUBLIC RELATIONS

ENGLISH LANGUAGE EDITORROBERT SHERWOOD

CONTRIBUTORSNGUYEN TRANTRANG TRINH

HEAD OFFICE18th Floor, BIDV Tower, 35 Hang Voi str., Hoan Kiem dist., Hanoi, Vietnam

Tel: (+84) 4 22200484Fax: (+84) 4 22225316Email: [email protected]

License No. 14/GP-XBBT dated 11 February 2015 by the Ministry of Information and Communications

Printed at Vietnam Book Printing Joint Stock Company

Bank for Investment and development of vIetnam JsC

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ADear readers,

April marked an important month for BIDV as the bank celebrated its 58th anniversary and held its Annual General Shareholders Meeting. The meeting covered important information regarding outstanding 2014 business results and objectives for 2015, and the recent merger of Mekong Housing Bank.

The merger of Mekong Housing Bank (MHB) into BIDV will not only help BIDV expand its network and customer base, but also strengthen its capabilities in the agriculture and rural sector. With BIDV’s great efforts to enhance its role and position as a financial institution operating under international standards and practices, the joining of the two will give BIDV the capability to compete on the regional and international levels.

April also saw continued cooperation between BIDV and its domestic and international partners. LaoVietBank - BIDV’s joint venture in Laos – and the Association of Vietnam Investors in Laos, of which BIDV is the chairman were honored to receive state President Truong Tan Sang. He appreciated AVIL and BIDV's strong support for

Editor’s Letter

Vietnamese investment in Laos and the country’s banking and insurance industries.

In the previous issue of BIDV Review we featured two articles about BIDV’s retail business and overseas investment. This month we continue to bring you more stories about BIDV’s development in the 20 years since transforming into a commercial bank. Through an exclusive interview with a former chairman of BIDV who was part of the early phases of the bank’s evolution, you can get a rare glimpse into our history of achievement.

To welcome the summer season, BIDV has launched a number of promotional programs providing a raft of incentives for BIDV customers. New, attractive credit packages are also on offer.

Finally, we have persisted in our efforts to conduct meaningful CSR activities towards promoting education, social welfare and a better life for all people in our communities.

With great pride we welcome you to the 3rd issue of BIDV Review. Thank you for taking the time to join us this month. ®

BIDV HIGHLIGHTS4. An elite history for further growth

contents

MARKET MOVEMENTS18. Q1 macroeconomy results astound

6. Fulfilling expectation and trust

8. Mekong merger promises bright future

20 YEARS A COMMERCIAL BANK10. The will to survive, the power to thrive

12. Two decades of greatness

14. 20 years fulfilling destiny

16. The next step in risk management

20. How insurance is shaping Vietnam’s future

INTERNATIONAL INVESTMENT22. Mutual success through friendship

24. Myanmar approves BIC entry

26. Vietnam, Russia eye domestic currency deal

27. A neighborly gesture

28. Nongtha complex breaks ground

contents

PARTNERS29. BIDV starts trending

30. BIDV offers VNU applicants e-payment service

31. Cement deal sets

32. BIDV, ANZ: A stronger pacific union

33. BIDV: The line for power finance

34. Streamlining social security

35. LaoVietBank and FPT synergize IT development

PRODUCTS & SERVICES36. Structured Interest Rate Swap – A proud

achievement

38. Once in a lifetime experience

39. Hotline FAQ

LIFESTYLE40. The stone houses of Dong Van

42. Graceful rice terraces in Vietnam

44. Korean culture comes alive

CSR46. BIDV lauded for CSR vision

47. New school for highland pupils

48. Bringing music to hospitals

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for Investment and Construction of Vietnam under the management of the State Bank of Vietnam.

On May 24, 1990, the National Assembly of Vietnam passed two banking ordinances that separated the regulatory function of the Central Bank and business function of commercial banks and credit institutions. On November 14, 1990, Bank for Investment and Development of Vietnam (BIDV) was founded from the Bank for Investment and Construction of Vietnam and started renovating its market-oriented business operations, laying foundation for stronger innovative steps later.

Vietnamese economic historians said that since the issuance of the two banking ordinances, banking sector including BIDV went through a period of strong developments. Could you tell more about this?

Since end-1994, thanks to a more liberal legal framework, BIDV made great strides in finalizing its business model, governance structure and product development strategy and market share.

In terms of credit, BIDV made a number of breakthroughs in eliminating state subsidies for construction investments and was

An elite history for further growthOver 58 years (26/4/1957 – 26/4/2015), BIDV has experienced ups and downs, but through all that the bank has played a pivotal role in the development of Vietnam. BIDV CEO Phan Duc Tu shared the bank’s proud history with BIDV Review on the occasion of its 58th anniversary.

proactive in raising funds for medium and long-term investments.

Regarding products and services, from a single credit operation in its earliest phases, BIDV has since developed a range of new products and services including multi-sector loans, international payments, financial leasing, e-banking, correspondent banks, entrustment, etc. This was the bank’s first step toward confirming its prestige and developing longer term deposit products.

Finally, talking about network, BIDV has grown its branch network to reach all across the country. Step-by-step the bank has reached out to regional and international markets by partnering with global banks to expand the payment and agent network.

Especially on November 8, 1994, the prime minister issued Decision 654/TTg, transferring the task of credit allocation from BIDV to the Ministry of Finance. On November 18 the same year, the governor of the State Bank of Vietnam issued Decision 293/QD-NH9 revising the functions and duties of BIDV to that of a commercial bank. This was an extremely important milestone and a historic boost to the transition of Vietnam’s banking sector into the commercial banking environment we see today.

In 2015 BIDV has transformed into a commercial bank for 20 years. Could you please tell our readers the bank’s outstanding achievements during that time?

As the bank CEO, could you please tell our readers a little bit about BIDV’s history?

The history of BIDV is a journey of an organization that has always shouldered the great tasks of Vietnam. The bank’s names through different periods shed a light of light on its objectives and tasks at these times: it was Vietnam Construction Bank from 1957 to 1981, the Bank for Investment and Construction of Vietnam from 1981 to 1990, the Bank for Investment and Development of Vietnam from 1990 to 2012 and finally in 2012 it added the term joint stock commercial bank to that title. This last title is the bank we all know today.

When BIDV was established as Vietnam Construction Bank under the Ministry of Finance, the responsibility was to rebuild the country and fight against the war in North Vietnam. The bank timely provided funds for the construction of key roads and human resources for the war resistance in the South.

After April 30, 1975, the Vietnam Construction Bank shouldered to rebuild the country and implement the second and third 5-year plans in the 1976-1980 period and 1981-1985 period. During this time, the Vietnam Construction Bank was renamed Bank

PhAn cong

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The transformation started 20 years ago is a comprehensive renovation in business mindset driven by market mechanism in accordance with international practice.

From a single-owner bank which only raised fund and provide loans domestically, BIDV is now a multi-owner banking group operating transparently and efficiently across Vietnam and is active in several other countries as well. It operates in line with international standards and best practice on corporate governance as a listed public company. BIDV has five subsidiaries and affiliates, 35 joint ventures, and nearly seven million customers including over 2,000

international financial institutions.

Not only recognized for its size, quality and efficiency - total assets and loans increased more than 40 fold against 1995, deposits increased more than 130 fold; financial capability was enhanced with owner’s equity increasing from USD11.5 million in 1995 to USD1.6 billion in 2014 and is growing year after year. Profit before tax increased from USD10.3 million to USD293 million, the number of employees increased 8 fold from 2,400 to 19,000. BIDV is gradually setting and affirming its foothold and reputation as a leading bank in the country and is trusted and recognized by the state, business community and

local and foreign partners.

The BIDV brand is known for not only being a pioneer in implementing national fiscal policy but also the first bank to set up a local joint venture with foreign partners (VID Public Bank) and joint ventures and subsidiaries operating in other countries (LaoVietBank). BIDV was also the first Vietnamese financial institution to buy shares of a foreign joint venture to form a wholly-owned subsidiary (BIDV Insurance Corporation). Especially, BIDV Chairman Tran Bac Ha is the only bank chairman to be appointed chairman of associations of Vietnamese investors in Laos, Cambodia and Myanmar, playing a key role in promoting economic and investment cooperation in these strategic locations. In this role the bank has paved the way for other Vietnamese enterprises to do business in these countries. The prestige, image and brand of BIDV have been recognized for its modern banking and financial products and services, for the responsibility and lead model in CSR activities, and for prestigious awards presented by the governments of the countries in the region.

What cultural values were most impressed upon you above these achievements?

They are cultural values that are deeply imbued in BIDV’s identity and enhanced from generation to generation, the ethic conduct, the loyalty and devotion to country, pioneering and facing challenges, the bond between BIDV employees, and the collective love for the underprivileged and community development.

BIDV has always been at the forefront of the drive for investment, development and restructuring of the economy and financial system. The merger of Mekong Housing Bank into BIDV symbolizes this position and will help BIDV push forward in its aim to become a leading bank in Vietnam and the region.

BIDV’s 58-year history has laid a solid foundation for BIDV to continue its strong growth and achieve ever higher results in the time to come. ®

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Business indicators set by the AGM for 2015• Deposit growth: 16.5% • Credit growth: 16% • PBT: VND7,500 billion (USD350 M)• NPL ratio: <3%, expected ≤2.5% • ROA: 0.85% • ROE: 14%-15% • Dividend payout ratio: >9%

Fulfilling expectation and trustOn April 17, BIDV successfully held its 2015 Annual General Meeting of Shareholders (AGM) in Ho Chi Minh City. The meeting was attended by 449 investors and proxies representing 19,781 voting stockholders (accounting for 97.51 percent of voting shares).

ventures and commercial presences in other countries were performing stable operations and their profits were up against the previous year. They fulfilled all tasks assigned to them by BIDV and contributed to strengthening the bank’s brand and position internationally.

In terms of international cooperation, BIDV continued to successfully act as chairman of the Association of Vietnamese Investors in Laos, Cambodia and Myanmar. It expanded and promoted trade and investment in high potential markets such as the Russian Federation, Europe

and Northeast Asia. BIDV also took significant steps toward reaching the Japanese market and connecting the Japan-Vietnam markets. The bank had partnered with US-based MetLife to form the joint venture BIDV MetLife.

Following the SBV’s push to restructure credit institutions in the 2013-2015 period, in 2014 BIDV had fulfilled all its obligations. Specifically, all of the bank’s subsidiaries from insurance and securities to banking were equitized. BIDV was officially listed on the Ho Chi Minh City Stock Exchange (HOSE) in January 2014 and increased its charter capital through the issuance of shares to existing stockholders, bond issues, etc.

MAjoR decisions

In addition to setting out plans and objectives for 2015, the AGM also discussed establishing a consumer finance company, elections for leadership positions, and the merger with Mekong Housing Bank (MHB). With an aim to increase retail market share to diversify business and serve a wider array of consumer segments, the AGM approved the establishment of BIDV Consumer Finance Company. Regarding risk management, the new company will classify customer segments’ risk level and take on higher risk customers to ensure the bank’s solidity.

A successFul 2014

Following the Resolution set at the 2014 AGM, BIDV has fulfilled its restructuring and outperformed its business plans and ensured its committed dividend payouts. The bank also made significant contributions to the state budget.

As of December 31, 2014, BIDV’s total assets had increased 18.6 percent compared to 2013. Deposits increased 20.4 percent and outstanding loans were up 18.9 percent. Credit quality was improved and the NPL ratio was at a well manageable 2.03 percent. Profit before tax had also increased. BIDV’s financial ratios were all within safe limits with ROA at 0.83 percent and ROE at 15.15 percent. Its CAR ratio was over 9 percent and the dividend payout ratio was at 10.2 percent. The bank’s subsidiaries had also performed well with BIDV Insurance Corporation (BIC)’s profit before tax (PBT) up 9.9 percent against the previous year. BIDV Securities Company (BSC)’s PBT was comparable to other leading brokerages. Joint

Anh duc

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As part of the restructuring process, following the prime minister’s approval, the AGM discussed the merger of MHB into BIDV. The principles of the merger were to “keep operations unchanged and offer a stock swap ratio of 1:1”. The merger will give BIDV the capability to compete with other banks in the region and the world.

One of the biggest orders of business passed by the AGM was appointment of new members to the Board of Directors (BOD) and Supervisory Board for the 2012-2017 term. Accordingly, 7 persons were additionally elected

to the BIDV’s BOD including one independent member, 4 members from MHB and two other persons.

This year’s AGM also passed other important measures such as the 2015 business plan, the plan for the Board of Directors and Supervisory Board, budget and remuneration for the Board of Directors and Supervisory Board, the plan to increase charter capital in 2015, and selection of the independent auditor for the 2016-2017 fiscal year.

Thanks to an efficient, agreeable AGM, this year shows great promise for

Members of the BOD and Supervisory BoardBoard of Directors 1. Mr. Tran Bac Ha, Chairman 2. Mr. Phan Duc Tu, Member and CEO 3. Mr. Tran Anh Tuan, Member 4. Mr. Le Dao Nguyen, Member 5. Mr. Nguyen Huy Tua, Member 6. Mr. Tran Thanh Van, Member 7. Ms. Le Thi Kim Khuyen, Member 8. Ms. Phan Thi Chinh, Member 9. Mr. Hoang Huy Ha, Member

(retires June 1, 2015)10. Mr. Ngo Van Dung, Member

(effective June 1, 2015)11. Ms. Nguyen Thi Kim Thanh,

Member 12. Mr. Huynh Nam Dung, Member (*)13. Mr. Nguyen Phuoc Hoa, Member (*)14. Mr. Dang Xuan Sinh, Member (*)15. Mr. Nguyen Van Loc, Member(*)16. Mr. To Ngoc Hung, Independent

member(*) Will officially become BIDV’s BOD members upon their termination of board membership at MHB.

Supervisory Board1. Ms. Vo Bich Ha2. Mr. Cao Cu Tri3. Ms. Nguyen Thi Tam

BIDV shareholders. Not only in the form of profit, but also sustainable development.

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Mekongmerger promises bright future

hoAng oAnh

According to BIDV Chairman Tran Bac Ha, the merger of Mekong Housing Bank (MHB) into BIDV will be fully completed by May 25 and is expected to help BIDV achieve ever higher aims.

The MHB’s role in the high-tech agriculture and rural sectors is of great interest to BIDV and the merger promises reciprocal benefits. Phan Duc Tu, BIDV CEO noted that, “If we were to grow without the merger, BIDV would need seven years to achieve MHB’s network. The merger will give us an opportunity to attract more customers from the agriculture sector.”

The merger has more far-reaching benefits as well. It will support BIDV’s goal of further cementing its role as the leading credit institution in Vietnam and improving

mutually desired as MHB is seeking to enhance its financial capability and BIDV is looking to grow its network.

According to Decision No. 589/QD-NHNN dated 25 April 2015, the Governor of the State Bank of Vietnam (SBV) approved the merger of MHB into BIDV. This decision will take effect from 05 May 2015. All legal procedures for the merger have fully complied with regulations of the SBV and the Ministry of Finance. From May 25, 2015, all MHB branches and transaction offices will officially operate under the name of BIDV.

MoRe custoMeRs in hAnd

In line with the restructuring process of Vietnam’s commercial banking system, the merger of the two state-run joint stock commercial banks was

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competitiveness both at home and abroad. BIDV will also access an even wider network of customers in a variety of sectors and expand its market share in rural areas.

A stRongeR BAnk

According to the proposal passed by BIDV’s Annual General Meeting of Shareholders 2015, MHB will be merged into BIDV on an as-is basis, meaning that all assets and lawful rights and obligations of MHB will be transferred to BIDV. The MHB brand will be dissolved.

“If we were to grow without the merger, BIDV would need seven years to achieve MHB’s network. The merger will give us an opportunity to attract more customers from the agriculture sector.”

Phan Duc Tu, BIDV CEO.

A concern many shareholders had was about the stock swap ratio. At the shareholders meeting, it was agreed that the merger would take place through a new issuance of BIDV stock at a 1:1 ratio. Accordingly, BIDV will issue 336,921,100 new shares to swap for the total equivalent of MHB shares. Explaining this, a BIDV representative said MHB’s operations were stable and that the two banks’ book value per share was equivalent.

After the merger, BIDV’s charter capital will be increased to USD1.5 billion and it will have expanded its network by 44

branches and 187 transaction offices and savings kiosks. This will bring BIDV’s total network up to 182 and 798, respectively, laying the foundation for the bank to achieve the leading position in the Vietnamese market. ®

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the will to survive, the power to thrive

viet dung

Vietnam’s shift from a subsidized, centralized economy to that of a socialist-oriented market economy in the 1980s (Doi Moi) took many Vietnamese enterprises to task. They were faced with the realities of an entirely new economic era and this transition was nearly the end of BIDV.

20 yeARs A coMMeRciAl BAnk

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BIDV was initially founded to disburse capital from the state budget throughout the economy.

But during Doi Moi the bank faced dissolution as this task was taken over by the Ministry of Finance (MoF).

An even greater threat was that many banks, rather than just one, were allowed to provide credit to the economy.

At the end of 1994, when the country even further moved towards new economic policies, BIDV faced its greatest challenge when it was forced to transfer all its projects and both state and provincial capital to the MoF. The bank transferred hundreds of projects worth a total USD18.5 million and staff were left wondering if they would soon be unemployed.

If BIDV went under, it would have surely been a tragedy. The livelihoods of thousands were on the line and the bank’s connection to masses of

businesses and its network of credit and payment systems were critical to Vietnam’s fledgling financial system.

With its survival on the line, BIDV’s workforce joined hands to come up with a solution to save the bank. Former BIDV Chairman, CEO Mr. Nguyen Van Doan recollected the meeting when it was ruled via Decision 654/TTg that the state budget would be moved from BIDV to the Investment Department and how the MoF and BIDV jointly presented their solutions to keep the bank alive.

They suggested that all new projects capitalized by the state budget be transferred to the Investment Department, but that ongoing projects would continue to be managed and supervised by BIDV to ensure the state’s loans were paid back to the MoF. They argued that if ongoing projects were immediately transferred to the MoF, the process would be hugely inefficient and wasteful.

They also suggested that BIDV should be able to operate as a commercial bank and BIDV committed to using funds raised from deposits to serve the state’s 1995 economic plan in the context of a budget shortfall.

“Thanks to this proposal, BIDV got the go-ahead from the government. Since that time the bank has managed to complete the ongoing projects under its control and has expanded into a raft of other activities and services to become the Vietnamese banking giant it is today,” Doan noted proudly.

After 1995, when the macroeconomy overcame its time of crisis and started showing significant achievements, BIDV was officially licensed as a commercial bank and continued to show strong growth. The 20 years between 1994 and 2014 was a period that showcased the amazing talent and efforts of BIDV’s workforce within a corporate culture and spirit that continues to this day. ®


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The ordinances established four state-owned banks specializing in 4 major areas. They were the Bank for Foreign Trade (Vietcombank), Bank for Industry and Trade (Vietinbank), Bank for Agriculture and Rural Development (Agribank) and Bank for Investment and Development of Vietnam (BIDV). The two ordinances which took effect from the beginning of October 1990 stipulated the basis of legal and operational frameworks under which banks operate. These directly affected BIDV.

How did the two Ordinances affect BIDV?

Firstly, the bank’s name changed from Bank for Investment and Construction of Vietnam. In my opinion, the replacement of “Construction” with “Development” meant a significant change. The bank would not lend to construction only, as it did before, but would lend to grow and develop the country.

Based on this decision, BIDV’s functions were to attract medium and long-term investment from domestic

two decades of greatness

cong chung

With the upcoming ceremony marking the bank’s 20th anniversary as a commercial bank, BIDV Review interviewed former Chairman, CEO Mr. Nguyen Van Doan (1990 to 1998). His story represents an overview of innovation in banking practices.

and overseas markets. The bank continued to receive capital from the state budget for technical as well as economic projects and provided credit and banking services.

From this decision, BIDV for the first time was recognized as its own economic entity with independent accounting systems, charter capital and financial autonomy. The bank’s charter capital at that time (calculated based on current foreign exchange rates) was USD30 million.

In the first five years after changing the name to Bank for Investment and Development Vietnam, what were BIDV’s achievements?

BIDV’s first achievement in this period was to improve the organizational structure of its system nationwide. This was the basis for the bank to promote its strength and creativity in business.

Prior to 1990, it could be said that BIDV was a totally subsidized bank, receiving capital from the state budget.

Considering you witnessed a historic change in the economy, what was your assessment of the market situation and banking systems conditions in the 1990s?

BIDV officially operated as a commercial bank in 1995. This was not a spontaneous decision but resulted from objective market requirements when the country and banking system entered into a new phase.

In the 1980s, the macro economic situation required fundamental restructuring of the operational model as a matter of urgency.

The most important milestone of the 1990s was the issue of two state ordinances related to the banking system. These were Ordinance 37 relating to the state bank of Vietnam and Ordinance 38 regarding other banks, credit cooperatives and financial companies. The two ordinances were the most important legal basis for the rapid transformation of banking operations into a socialist-oriented market mechanism.


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It did not have its own budget, external payment system, or attract deposits. We did not have equipment required for banking (even a fax machine), so all banking operations were new and had to be studied from other banks.

The first success in this period was to stop the subsidization of all capital through the state budget and provide the bank capital to issue commercial credit. With VND300 billion (USD13.9 million) from the state budget, BIDV started to provide long-term loans and collected interest and fees.

The second success was attracting deposits for medium and long-term investments. BIDV had creative ideas to attract deposits in Vietnam in this period that no other banks had. Accordingly, the bank issued secured promissory notes, the value of which tracked the gold market price. (People at that time strongly preferred gold, so this kind of product was attractive to

customers). Moreover, BIDV was also the first bank to issue 5-year bonds in Vietnam.

In addition, BIDV put its effort into gaining trust and borrowing capital from foreign banks. These included million USD from regional banks in Thailand and Hong Kong. BIDV also cooperated with foreign banks in matters such as foreign affairs, international payments, corporate governance and IT.

Looking back on 20 years of innovation, development and integration in the execution of the two Ordinances, how do you feel about the success of the bank?

It was my good fortune to experience two important transition periods with BIDV: the preparation period (1990-1994) and the period of laying foundations for a commercial bank (1994-1998). It was lucky that we

had many enthusiastic and creative colleagues and partners, as well as supportive domestic and overseas customers.

Throughout all of BIDV’s departments, I could tell many stories about the bravery and creativity of BIDV staff members. The five years before turning into a commercial bank was an important and necessary process. It created conditions for the bank to achieve breakthroughs; not only to overcome the challenge of survival amid changing times, but also to find ways to develop into the future.

This year marks the 58th anniversary since BIDV was established. In those 58 years, the 20 years during which BIDV has operated as a commercial bank was the most glorious period. I am very happy that the bank has innovated, developed and integrated extensively both domestically and internationally. ®

BIDV's 40th anniversary


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customers and apply appropriate credit policies to each. This effectively turned each branch into its own small bank.

Over the 2001 to 2005 period, BIDV revised its objectives. Profit became the highest priority and the benchmark measurement of its business performance. A unified business plan was established which branches were expected to follow closely but branches were also provided annual business plans for their local operations that refocused them on the performance of the bank as a whole.

Given this shift, in 2003 the Strategy and Planning Department was established at the bank’s headquarters. This was BIDV’s first independent

20 years fulfilling destiny

chi dung

unit responsible for developing and supervising annual, medium-term and long-term plans and strategies for the national brand.

In 2006, just one year before Vietnam joined the WTO, BIDV’s Board of Directors released a new strategic plan for 2006-2010 with a vision to 2015 that was aimed at global integration. The bank employed a team of international consultants to help develop this plan, based on the many changes sure to come on the back of international integration.

Perhaps the bank’s greatest challenge came after Vietnam joined the WTO and with the onset of the global economic recession. Vietnam suffered increasing instability of its macroeconomy and BIDV was faced with a raft of before unseen difficulties. Through all this however, the bank managed to keep its operations healthy, it mitigated risk and achieved major targets.

vision FoR the FutuRe

The first stage of BIDV’s transformation into a commercial bank was developing policies that were appropriate to the tremendous changes taking place in Vietnam in the mid-1990s. By 1997 a clear strategy had been laid out that helped guide the bank’s development. The focus of this strategy was building a strong base of corporate customers and ensuring the stability of banking operations.

During this period the bank expanded rapidly as branches began implementing commercial services. The bank also decentralized, granting the freedom to branches to creatively market these services to attract new

It wasn’t until 1995 that BIDV became a commercial bank, and it was the last state-owned bank in Vietnam to do so. Given this disadvantage, early on BIDV realized that it needed a strategy that anticipated rather than followed the market. It was soon clear that the bank was destined for greatness.


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Since 2010 Vietnam’s economy and the banking system in particular has undergone a period of massive restructuring, and BIDV is no exception. The bank’s strategy has been to undergo equitization while still maintaining its position as one of three leading banks in the country in terms of scale, network, quality, and profit growth.

In 2013, BIDV fundamentally changed its strategic management, moving towards international practices by deploying the balanced scorecard (BSC) system, KSI solutions, and Dashboard across its entire network. This has helped to modernize and make BIDV more regionally competitive.

shining out oBscuRity

After Vietnam reoriented its economy in 1995 and there was no more need for a bank to disburse capital from the state budget – which was BIDV’s primary function prior to that

time – the bank has tackled its many challenges with clear, flexible strategies and aggressive action plans. As a result, it has well earned its place among Vietnam’s leading commercial banks.

At the end of 1994, BIDV was a small scale operation. Its total assets were USD403 million, deposits hit USD78.74 million and total outstanding loans topped USD254.4 million. Understandably, operational efficiency was greatly wanting. At the time there were only 55 branches with 3,600 total employees and the brand was little known both at home and abroad.

But now 20 years later, BIDV’s total assets and outstanding loans have increased 40-fold and deposits are up 130-fold. By 2014 the bank’s charter capital had increased to USD1.3 billion compared to USD11.4 million in 1995. Pre-tax profit in 2014 hit USD293 million, compared to USD10.3 million. Of significant importance, the bank is now one of the top contributors to the

state budget each year.

At present BIDV has 136 branches and 611 transaction offices/savings kiosks. It is a publically listed company and has made a significant contribution to bolstering foreign investment inflows, implementing monetary policy and supporting macroeconomic stability, and improving national social security.

In the coming time BIDV aims to have an average deposit growth of 19 percent a year, pre-tax profit growth of 20 percent a year, and total assets by 2020 of USD75-80 billion. It will also closely adhere to the central bank’s capital adequacy ratio policy, meet the capital requirements of Basel II and start the process of achieving Basel III.

Over the last 20 years BIDV has been one of the rising stars of Vietnam’s banking sector, and thanks to its long-term vision and careful planning it is expected that the bank’s successes will carry forward long into the future. ®


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In May 2012, the Asset Liability Management Committee (ALCO) was established, completing the internal risk management model at BIDV.

The transformation based on TA2 helped delineate responsibility, ensure specialization and keep the risk management focus on customers and products. Risk management then became directly involved in the lending process, establishing credit limits and ensuring safety compliance in each lending progress. Under Basel principles, risk management has gradually become an effective defensive barrier for the bank.

At a branch level, all branches established a specialized risk management division instead of continuously switching this task to different divisions.

the next step inrisk management

QuAng son

20 years after officially becoming a commercial bank, BIDV has turned its attention to risk management. In the context of a dynamic economy with the participation of many economic sectors, the aim is to make its risk management system align more closely with international standards.

So far, BIDV has made certain achievements in risk management. Risks are assessed in all policies, projects and activities. Thanks to regular training and strict monitoring and reporting systems, a culture of risk management was gradually developed. Each staff member actively detects risk and takes preventative measures to minimize risks.

In addition, BIDV also recognizes the importance of anti-money laundering and continuously invests to combat it. Based on its contribution towards international crime prevention, in 2014 BIDV was granted a Certificate of Merit for outstanding achievements towards countering money laundering by the State Bank Governor Nguyen Van Binh.

stAndARdizAtion towARds inteRnAtionAlizAtion

More recently the bank saw a significant transformation in its risk management. BIDV constructed a roadmap and thorough plan to implement Basel II. Working towards this the bank has established a steering committee with nine members and a project management board with

FiRst stePs

Along with a diversified range of products and services to meet customer demands, BIDV acknowledged the importance of risk management to ensure safe, efficient and sustainable development. In August 2004, BIDV was one of the first commercial banks in Vietnam to establish an independent risk management department. In the first phase of operations, this department primarily focused on research and received risk management advice from the Technical Assistance project TA1 and TA2.

Based on TA2, by 2008, BIDV had switched operations, so the risk management department comprised of three separate units including credit risk management, market & operational risk management and credit management.


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80 members from nine departments to direct the implementation of Basel II.

BIDV also completed and submitted a gap analysis and assessment of the implementation of the Basel II roadmap to the central bank. This was a challenge for the bank's risk management department as well as the whole bank to comprehensively remodel the risk management system.

There were benefits for BIDV in making the risk management system closer to international standards as it was selected to be one of the first 10 banks by the central bank to apply Basel II.

Although BIDV may encounter difficulties regarding time, resources, IT and finance to successfully implement Basel II, the application will bring new opportunities to the bank.

These include an enhanced brand reputation with domestic and foreign strategic shareholders, an upgrade in the outlook of credit rating agencies and bring BIDV to a new height in risk management.

Deputy Director of the Department of Banking Operation Safety Policy Le Trung Kien, said that the implementation of Basel II was one of the most important features of the restructuring process with the State Bank of Vietnam (SBV) governor directing implementation, which faced challenges in personnel and financial capacity.

According to experts, the implementation of Basel II could cost USD3-5 million. However, the application is necessary. Mac Kalyan, general director of Canada’s BlackIce

said the enactment of Basel II in 10 pilot banks was a very positive trend which would help banks mitigate risk and preserve capital.

In reality, many banks around the world not only apply Basel II but are also about to implement Basel III in an effort to further promote risk management to ensure sustainable development. By the end of 2013, BIDV issued a general risk management framework. It is expected that from 2004 to 2016, the bank will complete a specific risk management framework for different kinds of risk (operational, market, credit and account risk), meeting the Basel II and III implementation routine required by the SBV. This will result in the bank’s risk management capacity being strengthened, increasing value for shareholders, customers and partners. ®

A policeman supervises the replenishment process


Bidv Review18

Q1 macroeconomy results astound

tRAng tRinh

The macroeconomic reports for this year’s first quarter have announced astounding growth, setting the stage for a very strong quarter two.

Other macroeconomic figures were also on the rise. The manufacturing industry was up 9.6 percent year-on-year. The index of industrial production (IIP) grew by 9.1 percent and total revenues from retail sales and services were up 10 percent. March’s CPI rose 0.74 percent compared to the same period last year.

Also during the first quarter, disbursed FDI hit USD3.05 billion, an increase of 7 percent year-on-year.

According to the Ministry of Planning and Investment, the number of enterprises that returned to normal production capacity during the period was up 12 percent and export orders increased.

However, a report on the macroeconomy by BIDV Securities Company (BSC) expressed concern about the shortage

According to reports from the General Statistics Office (GSO), Vietnam’s economic growth

rose to 6.03 percent in the first quarter ending March. This was significantly higher than first quarter growth in the years 2011-2014 and has been attributed to the mining, industrial and construction industries.

The market was shocked when this figure was released and there was concern about the accuracy of the data. But relevant ministries double-checked their data and confirmed its legitimacy.

The industrial and construction sector posted its highest quarter growth since 2010 at 8.35 percent. The mining sector saw growth of 6.7 percent year-on-year in the first three months, fuelled by crude oil and coal output increases of 9.8 and 3.2 percent, respectively.

MARket MoveMents

apRil 201519

of new FDI into the country.

Total registered FDI in the first quarter hit only USD1.84 billion, down 45 percent year-on-year. Notably, FDI from Japan fell from USD414 million in 2014 to USD294 million. Of note was that FDI continued to focus on mining and oil exploitation rather than sustainable industries such as agriculture and green energy.

BSC also expressed concern over the increasing trade deficit, which reached USD1.8 billion in this year’s first quarter, putting pressure on the foreign exchange market. This was a result of Vietnam’s sharply increasing demand for input materials, rising prices of fuel and minerals, and a global increasing supply.

However, BSC still said it anticipated a stable foreign exchange market in the second quarter, as the State Bank was considering selling some of its vast stocks of USD domestically to balance supply and demand. ®

CPI FORECAST April May June Average Q2/2015

% CPI (mom) 0.23 0.26 0.22 0.24

% CPI (yoy) 1.08 1.14 1.06 1.09Source: BSC

GDP GROwTH EACH QUARTER (%)

Source: GSO, BSC

8.00

7.00

6.00

5.00

4.00

3.00

2.00

1.00

0.00

2010 2011 2012 2013 2014 2015

5.86.2

6.56.8

5.6 5.6 5.8 5.9

4.64.4

4.75.0 4.8 4.9 5.1

5.45.1 5.2

5.65.98

6.00

MARket MoveMents

Bidv Review20

won’t require additional government funding. This has helped support fiscal policy.

According to reports by insurance companies, the total value of insured assets in the economy now stands at trillion USD.

But insurance has done much more than just raising and preserving investment; it has also strongly bolstered social security. By the end of 2014 the insurance industry had generated jobs for more than 400,000 people. Nearly 22 million people had medical insurance, 18 million travelers had travel insurance, 12 million were covered for rail accidents and 1,620 million people had transport insurance.

how insurance is shapingvietnam’s future

Quynh chi

Over the last decade, the insurance market in Vietnam has made a significant contribution to socioeconomic development and macroeconomic stability and all signs point to this being a continuing trend.

Mr. Pham Quang Tung, Chairman of BIDV Insurance Corporation, said insurance is all about people. “An insurance company is a financial intermediary with whom people can share risk. The investments into insurance from those who are lucky go towards those that are unlucky. This sharing is a principle of insurance.”

Pham Quang Tung, BIDV Senior EVP, BIC Chairman

FAR ReAching BeneFits

According to a just-released report on Vietnam’s insurance market in 2014 by the Insurance Supervisory Authority under the Ministry of Finance, between 2011 and 2014 the life insurance market attracted USD3.9 billion from the market, increasing savings for the economy.

Additionally, the insurance industry supplemented long-term capital to the market by investing USD6 billion by the end of 2014, of which USD3.24 billion was put into government bonds.

At present, most of the state’s infrastructure and works are insured, meaning that if disasters occur, they are financially protected and

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PReMiuM PotentiAl

The insurance industry's social benefits are not the only highlight expected in 2015. Its commercial strengths are also expected to bring a raft of opportunities to the local economy.

According to Tung, the average premium for an insured individual in Vietnam is low, at around USD17-18/year. This is minimal compared to premiums in Japan or the US where they are USD3,600-3,700/year.

Having recognized opportunity, in recent years BIDV has put significant effort into developing the insurance business and in 2014 the bank teamed up with MetLife – a leading US insurer – to establish the joint venture BIDV MetLife. According to Tung, BIDV focuses on both promoting BIDV’s subsidiary insurer BIC (non-life insurance) and BIDV MetLife (life insurance). BIDV now plans to develop bancassurance products.

“In the next10 years BIDV aims to have insurance product revenues overcome that of non-credit products – a strategy that is massively different than other banks,” Tung stressed.

Dustin Ball, CEO of BIDV MetLife, agreed that Vietnam has great potential, particularly for life insurance. A recent report by MetLife on the Vietnamese market showed that rising demand and a growing population were the greatest strengths. The report also noted that incomes are expected to increase 3-fold by 2020.

According to the Insurance Supervisory Authority, the double-digit growth of Vietnam’s insurance industry is expected to continue in 2015. Total premium revenues are forecasted to rise 12.6 percent year-on-year to USD2.96 billion. Non-life and life insurance premiums are expected to go up by 10 and 15 percent, respectively. Total insurance premiums via brokers are estimated to reach USD324.1

million, up 16.2 percent. Vietnam’s insurance market reported total premium revenues of USD2.63 billion in 2014, up 14.2 percent against 2013.

Minister of Finance Dinh Tien Dung also stressed the potential of the insurance market. He said that focus must be put on evaluating the management and administrative effectiveness of insurance companies, evaluating the balance between meeting market demand within the parameters of state guidelines and further enhancing the legal framework for insurance to help it reach its full potential. ®

“In the next10 years BIDV aims to have insurance product revenues overcome that of non-credit products – a strategy that is massively different than other banks,” Pham Quang Tung - BIDV Senior EVP, BIC Chairman.

MARket MoveMents

inteRnAtionAl investMent

Bidv Review22

Mutual success through friendshipIn an official visit to Laos, State President Truong Tan Sang spent time working with the Association of Vietnamese Investors in Laos and LaoVietBank. D

uring a meeting, the Association of Vietnamese Investors in Laos (AVIL) reported to the state

president about ongoing cooperative economic efforts between Vietnam and Laos and the plan for moving forward of AVIL and BIDV from 2015 to 2020. In recent years, with the considerable efforts of Vietnamese enterprises, including the support of the AVIL (from 2011), investment and trade between Vietnam and Laos has developed and achieved remarkable results in terms of scale, quality and areas of opportunity.

hoA Quynh


apRil 201523

Vietnamese enterprises operating in Laos were assessed to have improved responsibility for sustainable development and advanced cordial and cooperative relations between the two nations.

Speaking at the meeting, State President Truong Tan Sang acknowledged the efforts and achievements of Vietnamese investors in Laos as well as the role of the AVIL. Sang also confirmed the principle of "helping friends develop to bring mutual success”. This is a political notion between the two "brother countries" - Laos and Vietnam.

The achievements of Vietnamese enterprises concerning investment, commercial and tourism sectors in Laos have contributed significantly to the economic development of the country, as well as state budget revenues and job creation.

The president appreciated BIDV’s leading role in growing Laos's banking and insurance markets and in generating capital to invest and reinvest in key projects for Vietnamese enterprises in the country. In addition, Sang welcomed and encouraged the social welfare programs of Vietnamese enterprises within the Lao community.

MoRe to Be done

Regarding AVIL’s upcoming plans, State President Sang emphasized the determination and comprehensive measures required to push bilateral turnover past USD2 billion in 2015. He said AVIL should continue its solid governance of ongoing projects and persevere to overcome setbacks arising from investments in sectors such as hydropower and mineral exploitation.

country, but also their own business”.

AVIL’s objective in 2015 is to bring Vietnam’s direct investment in Laos to USD5.4 billion. Vietnam will continue to be one of three largest countries to invest in Laos and could become the largest in the coming 3-5 years. Regarding trade turnover, AVIL will find solutions to expand import-export growth by 40 percent. Estimated total bilateral trade in 2015 should reach USD2 billion and the number of tourists could top 1.25 million (up 3.5 percent year-on-year).

According to Tran Bac Ha, Chairman of BIDV and AVIL, AVIL’s operations have always been transparent with a view to friendships. In the 16 years since LaoVietBank, a joint venture between BIDV and Laos' BCEL, was established this goal has remained steady. ®

One of the President’s areas of concern is the successful exploitation of potassium in Laos. According to the President, this was a project that Vietnam proposed to invest in. The project would help Laos exploit natural resources in problematic conditions and help to ensure Vietnam’s food security.

Sang also noted that AVIL enterprises must take a serious approach to the implementation of transport and energy projects that have been based on high-level agreements between the two countries.

In addition, Sang required Vietnamese operations in Laos to focus not only on profit but also on Laos's general development. “Vietnamese enterprises should comply with the commitment made between our two countries leaders; it will not only help the


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BIDV Insurance Corporation (BIC), a Hanoi-based non-life insurer, was officially licensed

by the Directorate of Investment and Company Administration and the Ministry of National Planning and Economic Development of Myanmar on March 23 this year. This is one of the first steps to receiving a full operational license. BIC is the first of Vietnam’s non-life insurers to enter Myanmar since the country started its economic liberalization process three years ago.

The license gives Vietnam’s BIC the right to operate in Myanmar for five years and is retroactive to November 2014. The representative office is located in Yangon and shall serve as a base for promoting trade and insurance

Myanmar approves Bic entryHaving recognized the huge potential of Myanmar’s fast growing insurance industry, BIDV Insurance Corporation recently became the first Vietnamese non-life insurer to receive a license to open a representative office in the country.

services between the two countries. The office will also conduct research to provide information on Myanmar’s insurance sector to Vietnamese insurance companies and organizations.

Myanmar is a country rich in natural resources and has a large, young population. Recent political and economic reforms have fuelled rising demand for risk management products and services, particularly in the infrastructure, construction, transportation, telecom and energy sectors. As domestic insurers are young, they need time to get more experience in the business. Myanmar has taken serious measures to improve its insurance sector and according to the roadmap, foreign insurance firms will be allowed to fully enter

tue Minh


apRil 201525

BIC’s total premium-based earnings in 2014 stood at USD52 million, of which gross written premiums made up USD46 million, an increase of 24.7 percent compared to 2013 and above the average growth rate of the insurance market as a whole (10.5 percent). BIC was listed on the Ho Chi Minh Stock Exchange (HOSE) in September 2011. As of December 31, 2014 BIC had charter capital of nearly USD35.5 million.

the country within the next two to three years. BIC’s early access to the market lays a solid foundation for the establishment of a BIC subsidiary in Myanmar in the coming time.

BIC’s presence on the ground allows the firm to liaise closely with both local and global clients and insurers in Myanmar, as well as to strengthen and build relationships with current and potential clients. The firm’s investment in Myanmar is also consistent with the Vietnamese government and parent bank BIDV’s objectives to expand business activity, offshore investment and regional economic integration.

On 20 April 2015 BIC’s General Shareholders Meeting passed the proposal on increasing its charter

across the country. BIC aspires to become one of the top five non-life insurance firms in terms of market share and the most recognized insurance brand in Vietnam. ®

capital by issuing an additional 41 million shares (or 35% of its charter capital) to foreign strategic investors in the form of private placement.

BIC is now the Vietnamese insurance firm with the largest operating network in foreign markets. It also has affiliates in Laos and Cambodia. According to the Association of Vietnamese Insurers, BIC is one of the 10 leading non-life insurance companies in terms of gross written premiums and one of the fastest growing firms in the market. BIC is the market leader in the bancassurance and e-business channels.

At present BIC has nearly 800 employees serving clients in 22 member countries, 104 trading desks, and more than 1,000 insurance agents


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The agreement is expected to help Vietnam – Russia Bank (VRB) better serve customers in the two

countries, thus accelerating economic co-operation between Russia and Vietnam.

Accordingly, BIDV and VTB (Russia Foreign Trade Bank) will research and report to the relevant authorities within their respective countries for approval of a payment channel to support the import-export activities between Vietnam and Russia. The two parties agreed to appoint VRB as an intermediary bank for this payment channel. The parties will establish a joint working group and set a specific schedule towards using domestic currencies for payment.

vietnam, Russia eye domestic currency deal

The two parties will also seek approval from their governments for themselves and VRB to service key projects and bilateral programs at a governmental level, covering various sectors such as nuclear energy and defence. VRB will provide services such as accounts, payments, credits, guarantees, L/C, deposits, FX, etc.

Regarding further enhancement of the financial and operational capacity of VRB, the two parties have agreed to support VRB at the highest levels to help it successfully fulfill its restructuring plan. This includes submitting to the governments, central banks and appropriate ministries of the two countries for direction and assistance.

Earlier on April 6, 2015 during a state visit to Vietnam by Prime Minister Dmitry Medvedev, the Russian Prime Minister called for cooperation in the fields of energy, oil and gas. He also said Vietnam and Russia should take advantage of the potential of VRB and seek a new cooperation model for payment in domestic currencies to facilitate bilateral payments as well as enhance the financial capacity of VRB.

VRB was founded in 2006 in the presence of Russian President Vladimir Putin and Vietnamese President Nguyen Minh Triet. As of March 31, 2015 VRB’s total assets stood at USD477 million with outstanding loans placed at USD 269 million. VRB has become the payment hub for businesses, organizations and individuals engaged in trade between Vietnam and Russia with total payments valued at over USD219 million. ®

On April 7 BIDV and VTB signed a memorandum of understanding enhancing the role and potential of their joint venture, Vietnam – Russia Bank.

Phuong thAo


apRil 201527

Amongst those attending the signing ceremony were Lao Prime Minister Thongsing

Thammavong, Lao deputy prime ministers, Vietnamese Politburo member Le Hong Anh and leaders of the Vietnam Ministry of Planning and Investment and State Bank of Vietnam, along with a host of important delegates from other enterprises

Following the cooperation agreement between the two countries regarding socio-economic development, (especially concerning infrastructure in the Houaphanh and Xiang Khouang provinces) BIDV was assigned to study and propose a plan for the funding of the construction projects. BIDV worked with the two governments to decide

A neighborly gesture

that the loan will be non-profit and concessional with a tenure of up to 15 years, including a 3-year grace period and a fixed lending rate of 3 percent per annum. In addition, the loan allows the Lao Government to decide on the appointment of consultants, contractors, and material suppliers for the projects.

Earlier on December 27, 2014, BIDV financed USD53.16 million for the construction of the 67km Xamtay – Thalau road. The USD26.84 million loan for the Xamtay – Thongthu road construction increases the total funding to USD80 million to the route which has been expanded to 97 km. The second component of the agreement is the project in Xon

district, which BIDV is funding with USD120 million. Aside from those two programs, a USD30 million loan for an irrigation dam in Luang Namtha province is still under negotiation between BIDV and the Lao Government and the two sides look set to finalize a deal by May this year.

Xon is one of the poorest districts in the country with a poverty rate of 70 percent and GDP per capita of USD50, only a fifth of the average GDP of Laos. The support for infrastructure development will help improve the living standards of local communities and contribute to the economic development of Houaphanh province, enabling it to draw level with other regions in the country.

Loans for the projects will help connect the border gates of Vietnam’s Nghe An and Thanh Hoa provinces to Laos and promote economic development and tourism between the two countries. ®

BIDV and the government of Lao PDR signed a credit agreement worth nearly USD147 million for two central projects in Houaphanh province, Laos on April 11. These projects are to build the Xamtay-Thongthu road and further infrastructure development in Xon district.

hA An


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On April 12 in Vientiane, Laos, the Nongtha Complex project, owned by LaoVietBank, held

its ground breaking ceremony. The complex is located in Nongtha Paradise Land (at 222/01 DonDaeng road, Nongtha village, Chathabuly district, Vientiane, Laos, 3.5km north of Vientiane and 6km from Wattay International Airport. The total land area of the complex is nearly 4 hectares. The complex boasts office buildings, hotels and residential properties with a total investment of USD15 million.

Through big investment projects in

nongtha complex breaks ground

Laos, BIDV has affirmed its commitment to long-term and sustainable investment in the country. The Nongtha complex exemplifies BIDV’s vision and aspiration in creating a solid infrastructure for the operation of its commercial presence, contributing to the improvement of Vientiane.

According to Mr. Tran Thanh Van, BIDV’s BOD member, the complex will serve the external affairs of BIDV in Laos. While it is on one hand a place for human resource training, it will also be a place for BIDV staff in Laos to live and work and a cultural landmark in the hearts and minds of the Lao people. ®

hA An

Vietnamese Politburo member Le Hong Anh (L) and Lao Deputy PM Phankham Viphavanh (R) at the ground-breaking ceremony

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On April 8, BIDV officially launched its Social Media Command Center. This is the

first social media model that interacts with customers in Vietnam's banking sector, reflecting the bank’s belief in being innovative and customer-centric with the constant aim of satisfying customer needs.

The launch of the SMCC brings significant benefits to consumers. It is a channel for both providing and gathering information and feedback to and from customers. They will always

Bidv starts trendingbe listened to, advised, supported and updated with market information by the bank through the professional data analysis reports produced by the social media monitoring system. Above all, customers will experience better banking with BIDV.

Social media is the closest and most friendly communication channel between a business and its customers. With a view of optimizing business performance on social networks, large organizations around the world have successfully applied the SMCC

model to measure their performance, better connect with customers and continuously advance their products and services. After one year of studying the SMCC model in foreign countries and working with experienced experts and partners, BIDV officially opened the first complete SMCC in Vietnam.

Boomerang is the provider of IT infrastructure and solutions for BIDV SMCC operations. The founding of this platform confirms the bank’s principles of actively listening, engaging and innovating. ®

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Bidv offers vnu applicants e-payment service

Last week, BIDV and Vietnam National University in Hanoi successfully cooperated

in collecting examination fees electronically. This is the first phase of BIDV ultimately handling both examination and tuition fees electronically for the university.

Electronic payment allows flexible payment channels for applicants. They may go to a BIDV transaction office or use BIDV’s online banking service. They can also make payments via BIDV

ATMs. Those with accounts at other banks with e-banking accounts can also make a simple fund transfer. No transaction or transfer fee is charged when applicants make payments to Vietnam National University (VNU) via BIDV branches or via online banking.

As assigned by the Ministry of Education and Training, VNU organized computer-based entrance exams for the first time this year. Results are used to determine admission to the university. The exams are organized twice a year between May and August. BIDV’s electronic payment service will streamline the exam payment process and students will benefit most. They don’t have to go all the way to the university’s finance department to make payment. This service is part of BIDV and VNU’s efforts to help realize the Ministry of Education and Training’s policy to reform the administrative procedures related to exams and education.

BIDV was one of the first banks to support online payments for organizations and is continuously evolving its IT platform. Its cooperation with VNU is a pilot program that will soon be expanded to schools nationwide. ®

University applicants after an examination

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Formerly known as Do Luong Cement Project, the Song Lam Cement project is based in Bai

Son commune, Do Luong district, Nghe An province. Initially, the project had a production capacity of 2,500 tons of clinker per day or 910,000 tons of cement per year, with investment from state corporations. However, due to restructuring, the original investors asked to divest from the project.

In April 2014 the Vissai Cement Group was given approval by the Prime Minister to assume responsibility of the Do Luong cement plant project. Consequently it was renamed the Song Lam Cement plant with total investment in the first phase of nearly

cement deal setsOn April 15 in Ho Chi Minh City, BIDV, Techcombank and Song Lam Cement Joint Stock Company (part of the Vissai Group) signed credit contracts to finance the Song Lam cement plant in the presence of senior members of the Ministry of Construction, Nghe An and Ninh Binh provinces.

USD425 million and plant capacity increased to 12,000 tons of clinker per day or 4 million tons per year.

Under the agreement, BIDV and Techcombank will finance the Song Lam Cement Plant project with a maximum value of USD281.3 million (USD258 million by BIDV and USD23.3 million by Techcombank) with loan tenor up to 12 years. BIDV and Techcombank will also provide a full range of banking products and services to support developers in completing the project on schedule.

The Vissai Group has a firm position within the cement industry. Currently, the group is ranked second in terms of

cement production in the country and first in cement production capacity and export capability. With investment in the Song Lam Cement Plant, the group now has seven cement plants with total capacity expected to reach 17 million tons of cement per year. The acquisition of the Song Lam Cement project is part of the development strategy to increase cement supply capacity nationwide, with emphasis on the Central Region, for both domestic use and export.

BIDV Chairman Mr. Tran Bac Ha stressed that with Vissai Group’s extensive experience in building and operating large cement plants, BIDV and Techcombank believe that the Song Lam Cement Plant project will be efficiently completed and put into operation as planned. This will create jobs for local people and contribute to the economic development of Nghe An province as well as the country in general. ®

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future both parties intend to agree upon a scope of cooperation and will direct their subsidiaries to enhance activities based on this partnership.

key investMents

One of the key issues discussed by senior leaders of BIDV and ANZ was investment cooperation in agricultural development in Vietnam. Australia is a developed economy with many technologically advanced industries. The agriculture sector, especially regarding beef production, is a good example of this. Vietnam’s domestic demand for beef is increasing while supplies are limited. At the moment, over 60 percent of beef is imported from Australia, USA and EU, etc.

Seeing the potential growth in this area, BIDV’s business customers have been implementing large-scale beef production projects with plans to increase from 200,000 to 500,000 heads in the next 3 years. A partnership was proposed with ANZ to connect Australia’s leading agri-businesses with BIDV customers to develop areas such as feed production and cattle management systems. Both banks have committed to finance businesses to implement these projects. ®

Bidv, Anz: A stronger pacific union

PhAn Anh

expansion in the ASEAN region.

The soon-to-be-signed agreement between BIDV and ANZ will provide a framework for extensive cooperation on a range of services including capital market transactions, foreign exchange, payment and trade finance, derivatives, commodities, co-financing, and international bond issuance advisory. To develop expansion within the ASEAN region the two banks will promote their relative strengths. As well as its core activities in Vietnam, BIDV has effective commercial presences in Laos, Cambodia and Myanmar. In the near

In March 2015, Prime Minister Nguyen Tan Dung paid an official visit to Australia. During the trip, a

BIDV delegation headed by Chairman Tran Bac Ha worked with leading global bank ANZ to further enhance the relationship between the two institutions.

A stRongeR Bond

The trip to Australia saw senior leaders of BIDV and ANZ hold practical talks to enhance cooperation. An emphasis was placed on the signing of a comprehensive cooperation agreement and market

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Bidv: the line for power finance

The signing ceremony on March 26 between BIDV and the Ministry of Finance (MoF), and

witnessed by representatives of the MoF, the State Bank of Vietnam, the Government Office, Electricity of Vietnam (EVN), and National Power Transmission Corporation (NPT), signaled access to USD500 million of World Bank (WB) loans for the Transmission Efficiency Project (TEP).

Accordingly, BIDV was authorized to onlend the WB loans for the TEP. This on-lending will help enhance power station infrastructure and stabilize power generation to reduce outages in key economic areas and cities including Hanoi, Ho Chi Minh City, the Mekong Delta and the Central Region. Part of the TEP framework will be the National Power Transmission Corporation (NPT) smart grid strategy

to upgrade the control system of the five 500kV and eleven 220kV stations.

It was the SBV’s recognition of BIDV’s proven track record of cooperation with previous large-scale operations involving Official Development Assistance (ODA) that influenced the SBV’s decision to go with BIDV instead of other banks. In addition to the WB, BIDV has successfully cooperated with the Asian Development Bank, European Investment Bank, French Agency for Development, and the Nordic Investment Bank. BIDV was already the organization of choice to distribute loans of USD312 million to the Vietnam Power Sector Reform Development Policy Operation from the WB, along with USD480 million directed to power transmission projects in North Vietnam from the Asian Development Bank. ®

The dramatic growth of Vietnam means that access to more capital will fuel the construction of infrastructure vital to the country’s future. Stable electricity is a key component of the growth equation for a better Vietnam.

vAn hAi

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On March 25, BIDV and Vietnam Social Security (VSS) signed an extension to the contract

concerning the collection of social, health and unemployment insurance payments. Earlier on July 14, 2014, BIDV and Vietnam Social Security inked a contract relating to the collection of insurance payments from businesses with current accounts at BIDV in 31 provinces in North and central Vietnam. After the cooperation, 13,138 enterprises opened current accounts with BIDV of which 7,780 pay insurance to Vietnam Social Security via BIDV.

streamlining social securityThe successful cooperation in the collection of insurance in North Vietnam prompted a nationwide expansion of the agreement between BIDV and VSS.

The total amount collected by Vietnam Social Security is about USD114 million. The successful implementation lays a solid foundation for cooperation between the two organizations in a further 32 provinces in South Vietnam.

Through the agreement, BIDV will provide modern banking services to help businesses pay insurance premiums in a quick, secure and cost-effective manner. BIDV will provide more services to customers especially offering loan packages to help them fulfill their obligations to VSS.

The agreement also supports VSS by strengthening collection from businesses of insurance payments and arrears. It will also improve capital efficiency and reduce administrative and personnel costs thanks to BIDV’s modern banking platform. In addition, the partnership will help VSS to improve its ability to monitor insurance funds, develop insurance fund sources and maximize investment efficiency. In the long term this ensures social insurance funding and better serves employers and insurance beneficiaries.

The expanded partnership in insurance collection between BIDV and VSS is of great significance to the insurance sector and commercial banks. ®

do hoA

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Last month, LaoVietBank and FPT Information System Corporation cosigned a memorandum

of understanding on strategic cooperation in information technology development in Vientiane, Laos.

Accordingly, FPT Information System Corporation (FPT IS) will become the principal partner of LaoVietBank for the implementation of an IT strategy over the next five years.

FPT IS and LaoVietBank will work together to implement IT systems which will maintain and reinforce IT activities within LaoVietBank as well as expand cooperation with other financial and credit institutions operating in Laos.

The cooperation between LaoVietBank and FPT IS is of mutual benefit. LaoVietBank will be prioritized in the provision of state of the art IT products and in return, LaoVietBank pledges to offer its best banking products and services to FPT IS.

FPT IS’s experience in implementing IT systems and products will help LaoVietBank have effective business management and support skills training and human resources development.

laovietBank and FPt synergize it development

hoA Quynh

Aside from bilateral support, FPT IS also committed itself to coordinate with LaoVietBank in promoting IT applications in credit institutions throughout Laos.

Accordingly, FPT-IS has cooperated with LaoVietBank to research IT systems in key Laotian institutions (including Lao’s Central bank, the Ministry of Finance and

commercial banks). Studies involve IT infrastructure comparisons with Vietnam and other ASEAN countries in the region such as Thailand and Myanmar. Based on the survey, both parties will jointly construct a reference document for the Laos Government. On this basis, IT strategic development consultancy will create opportunities for LaoVietBank to invest in IT development. ®

PRoducts & seRvices

Bidv Review36

ngoc thuy

BIDV is a leading partner in Vietnam’s derivatives market. In 2014 it grew in stature through a new product in the Interest Rate Swap category, named “Structured Interest Rate Swap” (SIRS). The new product focuses more deeply on clients’ hedging demands.

As the US economy has returned better than expected economic indicator figures, the Federal

Reserve (Fed) has recently dropped its promise to withhold raising interest rates. An interest rate hike is possible as soon as June this year. As a result, the USD LIBOR, a key factor in determining interbank interest rates, is forecasted to increase immediately after or even before The Fed’s rate hike decision.

Consequently, the second half of 2014 was a golden time to replace

floating rate obligations denominated in USD with fixed interest rates over the medium and long term. One of the most popular hedging solutions was the plain Interest Rate Swap (IRS). With 10 years experience in the field, BIDV is honored to be a leading IRS supplier in the Vietnamese market with products tailor-made to match economic cycles in general and interest rate movements in particular.

Derived from an IRS, a Structured Interest Rate Swap (SIRS) helps clients not only exchange a floating interest rate obligation for a fixed interest rate obligation but also reduce the cost of hedging, so long as the real interest rate does not increase beyond a forecasted level. Clients receive a subsidy for the original floating rate obligation for the remainder of the tenure.

structured interest Rate swap—A proud achievement

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decree 67 throws Phu yen fishermen a line

At the end of March, BIDV signed credit contracts with two fishermen in Phu Yen province to

build fishing vessels. They are the first two contracts signed in Phu Yen deriving from Decree 67, which impacts a number of fishery development policies.

The total contract value stands at USD740,800. Specifically, the total investment value of the ships is VND11.3 billion (USD523,530) each, of which BIDV will lend up to 70 percent of the value, equivalent to VND7.9 billion (USD366,007) each with a loan tenor of 11 years.

Construction of the ships will commence in April with launching expected to be 4-5 months later.

Under Decree 67, up to now, BIDV has disbursed loans to build new vessels in 6 provinces including Thua Thien-Hue, Khanh Hoa and Vung Tau. The total value of these loans, to build eight new ships, is more than USD4.9 million. ®

hoAng Anh

SIRS is a better hedging solution subject to a slight interest rate hike for two reasons. Firstly, hedging costs for an SIRS are less than for a regular IRS with the condition that the interest rate is below a forecasted level. Secondly and conversely, clients are subsidized for the original floating rate obligation.

Being the first SIRS supplier in Vietnam was a meaningful accomplishment for BIDV’s derivatives division and BIDV as a whole. Firstly, the cooperation between BIDV and clients has been improved by the consulting service which aims to better understand and fulfill client’s demands. Secondly, BIDV surpassed its counterparts in the Vietnamese market including both domestic and foreign financial institutions to become the best supplier for SIRS. Thirdly, thanks to SIRS, BIDV has achieved three consecutive “House of the year, Vietnam” awards presented by Asia Risk magazine.

Over the last 10 years, BIDV has proved to be the best partner for consulting on and supplying hedging, as well as investment solutions qualified at international standards. ®

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once in a lifetime experienceThanks to the brand cooperation between Manchester United and BIDV, a number of the bank’s Manchester United MasterCard customers were given a once in a lifetime experience that money can’t buy.

PhAM ngoc

After a 16-hour flight, BIDV’s delegation of VIP customers arrived at London on a warm,

sunny day. We were all very excited with the architecture and historic beauty surrounding us. We had the chance to visit famous sights including Buckingham Palace, the London Eye,

BIDV - Manchester United cardholders and MU players at AON Training Complex

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BIDV’s contact center hotline can be reached at 1900 9247. The 247 means BIDV is ready to answer questions 24 hours a day, 7 day a week. It is a trusted service for our customers. In the spirit of customer service, BIDV Review will post some of our most frequently asked questions.

Q I have just bought a new phone sIm. I do not

use BIDV services but often receive messages reporting the transactions of a person with an account at BIDV. What should I do to stop this?The phone number you have just bought might have been registered to BIDV’s BSMS previously. Please bring the sim to the nearest BIDV branch to cancel the service.

QDoes BIDV have card products for corporate

customers?Currently, BIDV has a corporate credit card, which links to the payment account of the enterprise. BIDV’s corporate credit card has the same functions as an international credit card, such as cash withdrawal, balance inquiry and transaction processing. Please contact the nearest branch to find out about the card issuance process as well as other related issues.

Q Can I have a savings account at BIDV and

gradually withdraw for consumption?BIDV provides a demand deposit account, which meets your needs. You can deposit a minimum of USD2,314 and flexibly withdraw money based on demand while the remainder continues to earn an attractive deposit rate. Customers can easily withdraw capital at ATMs or branches across the country. ®

Hotline FAQ

Tower Bridge and of course Big Ben clock tower, where we heard the chiming of the renowned bells.

In the following days, we continued our trip north towards the theatre of dreams – a place of wonderment for millions of United fans around the world. It took 4 hours by road past the charming English suburbs and villages. The landscape was filled with fields of yellow rapeseed flowers, lush green meadows and herds of leisurely grazing sheep.

The BIDV delegation headed to Old Trafford to see the classic Manchester derby - a football match between rivals Manchester City and Manchester United. First, we were given the unique prospect of meeting the legendary football players. We were invited to a VIP area, about two hours prior to kick off. Guests had the opportunity to meet and take pictures with Bryan Robson, Lou Macari, Arthur Albiston and many more.

With a capacity crowd of 75,000 people, the stadium was covered with Manchester United red. Despite the cold and rain, the raw enthusiasm of the fans and electric atmosphere

heated the stadium. When the starting whistle blew, the experience we had anticipated for so long began.

In the stands the crowd cheered, clapped and belted out their traditional club anthems. The excitement in the air took our breath away. At the end of 90 minutes, the referee blew the whistle to signal the end of the match and the stadium erupted with delight: the final score was 4-2. We jumped up and down, hugged, smiled and celebrated the result.

Nguyen Van Chi - the oldest customer in the group said he had seen Manchester United thousands of times on television, but nothing could compare to witnessing the event live.

At the end of the trip, we were invited to the players training ground. Manager Louis van Gaal and most of the regular team players were present: Rooney, de Gea, Van Persie, Fellaini, Young, Mata and a host of others. We were allowed to take pictures with the team and each player gave us an autograph as a present. At that moment we had fulfilled the dreams of millions of fans.®

VIP BIDV - Manchester United cardholders met former MU players at VIP area of Old Trafford Stadium

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Dong Van Stone Plateau in Ha Giang province is not only known for its beauty and allure, but also the long established culture of the local ethnic people, the H’Mong. Their traditional stone houses symbolize the culture of Ha Giang people.

ngoc lAn

heteRogeneous ARchitectuRe

H’Mong people’s houses are deeply influenced by the harsh climate, nature and terrain of the stone plateau, as is their culture.

The architecture of these houses is relatively uniform regardless of size or a family’s economic status. The main

house features 3 rooms and two doors (one main and a side door) and at least two windows. In the main house the middle room, normally the largest, is used for the family altar, welcoming guests and eating meals, while one of the side rooms is for cooking and also the bedroom of the house owners and the other is for a fireplace and bedroom for guests.

The stone houses of Dong Van

H’Mong homes always have a mezzanine floor for keeping things such as rice and corn away from mold and worms. The mezzanine can also be used as an additional bedroom for guests when the house is overcrowded. Women however are not allowed to sleep there. The traditional houses of the H’Mong people are tile-roofed on a wooden frame. These materials make the house warmer in the winter and cooler in the summer.

The H’Mong people are very careful about choosing the right land for their houses. After finding a suitable

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location, building begins. Construction of the walls is very sophisticated and the soil used to make them must be free of impurities such as rubbish, tree roots and gravel.

After completing the frame, the H’Mong start the process of roofing the houses, usually using tiles or thatch. Richer H’Mong often roof them with double tiles. These double tiled roofs are a traditional architectural style in the stone plateau. Nearby the main house they build a storehouse or barn. This does not have walls but the roof is similar to that of the main house.

The main door, which is made of mood, always opens inward. The H’Mong people believe that if a door latch is made of iron, it will make the house cold and uncozy. The H’Mong also use images of bats to pray for good fortune.

iMPRessive stone Fences

Another interesting feature of H’Mong houses is the outer stone fence. Most of the houses include this feature and are built just as sophisticatedly as the houses.

To build a stone fence of a 1.5-1.6m height, the H’Mong spend months collecting stones and placing them. The fence affirms their property border as well as blocks the wind and prevents dangerous animals from entering and tamed animals from getting out.

Each house of course has a gate, which may or may not include a roof. The H’Mong often build their houses on an elevated piece of land with the back against a hill or mountain. Around the houses the H’Mong often grow peach, plum and pear trees.

On the vast plateau, the small traditional houses of the H’Mong people represent the depth of their culture, leaving visitors with an unforgettable impression.®

On March 20, 2015, the workshop on “Ha Giang socio-economic development with link to Northeast and Northwest region development” was held by the Northwest Steering Committee, Central Economic Department and Ha Giang province. As a partner, BIDV was committed to support poor provinces including Ha Giang by providing preferential fund for socio-economic and tourism development and living standard improvement for the local.

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Lying in the mountainous area of Northwest Vietnam, Sapa is an incredibly picturesque place

famous for its rugged scenery and cool climate. If you’ve come to Vietnam and you don’t make the journey up to Sapa you are missing out on one of the best things to see and do in the whole country.

Sapa is host to rice terraces, most notably the Ta Van – Hau Thao – Lao Chai (Sapa district). Readers of US magazine Travel and Leisure voted the area one of the seven most beautiful and impressive in Asia. Rice terraces in Sapa are slopes reclaimed for cultivation by local hill tribes. From generation to generation these people have built the rice terraces into what we see today.

Seen from afar, the terraced steps

Graceful rice terraces in VietnamRice terraces are a highlight in Sapa. A blend of nature and the diligent effort of the hill tribes living around the valleys make it an alluring destination for visitors.

create an astounding vision of nature and humanity combining in harmony. The colors of this picture change through seasons, arguably exhibiting its most alluring charm with the vivid green growth of a new crop.

In April and May when the terraces are filled with water in preparation for a new crop, the tiered surfaces glisten, reflecting the contrast of the reddish

Phuong thAo

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Sapa is located in Lao Cai province, 350km from Hanoi and boasts the highest peak in Vietnam, Fansipan at 3,142m above sea level. Sapa is home to a great diversity of ethnic minority people. The climate is moderate during summer months, whilst being foggy and cold in winter with an occasional snowfall.

brown of soil, the deep blue of the sky high above and the green of surrounding forests. Embankments surrounding these terraces look like threads softly lined on a tapestry of nature.

In June and July, when the rice is fully-grown and forest trees are at their fullest cacophony of green stretches out to the horizon before disappearing in the mist. When autumn ends,

tourists can absorb the bounty of nature throughout the area as rice ripens, making the mountainous landscape astonishingly beautiful.

The rice terraces in Sapa have been an alluring place for a range tourists, especially photographers. They do not mind climbing mountains or crossing rivers to capture these most beautiful images. ®

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Korean culture comes aliveThe latest slogan of the tourism industry in South Korea is Korea Be Inspired. Upon landing in Seoul, Busan, Jeju or Nami visitors will immediately be impressed by the energy and color of life here.

A nouveAu destinAtion

In recent years, Korea has become a competitive tourist destination in contrast to other more established powers such as China, Thailand, and Japan. Since 2000 the Hallyu movement has spread across Asia and South Korea’s tourism industry has flourished. Hallyu in Korean means wave, a concept that captures the enthusiasm for Korean culture arising from films, TV series and K-pop. It is an instrument through which Korea can introduce and promote itself to the world. Consequently, the nation’s tourism industry as a whole

benefits much from the movement.

shoPPing centRAl

Seoul surpasses the expectations of eager visiting shoppers. Insadong is a name that cannot be missed among

the bustling markets in Dongdaemum, Itaewon and Myeongdong. It is the only place in Seoul where you can drink coffee on the sidewalks while gazing across finely made craft items. Starting from Tapgon Park, Insadong stretches along a 700 meter street.

vinh duc

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South Korean history and culture make it an ideal destination for visitors. The most suitable time to visit Gyeongju is in the fall when the whole city is covered with the vivid reds of the Momiji trees.

The Insadong market is the central location for souvenirs, antiques, books and handicrafts. Here you can peruse and buy an array of products from a hanbok (the traditional dress of Korean women) to ancient books, stamp collections, vibrant masks and antiques.

Many shops in the Insadong market are family run businesses passed on from generation to generation. The family name and reputation ensures the quality of goods. Haedong Godoja is reputable throughout Korea for its high quality ceramics while Wuriot is known for excellent hanbok. There are also stalls that sell paintings and calligraphy. The market is like an open museum which serves to preserve the traditions of earlier Korean dynasties. On Sundays, vehicles are not permitted down the street, which allows space for traditional cultural performances.

About 400km south of Seoul is Gyeongju which at over 2,000-years-old

is the oldest city in Korea. The most suitable time to visit Gyeongju is in the fall when the entire city is embraced with the bright red colors of Momiji trees. The city is considered to be the birthplace of Korean Buddhism with temples dating back hundreds of years built high on the mountains. Millions of locals visit here annually to worship and pray for a peaceful life. A lot of the cultural heritage of Gyeongju is recognized by UNESCO.

Busan is South Korea's largest commercial port city. 330km southeast of Seoul and with a warm climate, it is set amongst rugged mountains and adjacent to one of the most beautiful beaches in the country. Busan is also a shopping hub with humming streets. Three of the most famous beaches in Busan are Haeundae, Gwangalli, and Songjeong which are ideal for tourists. Boating, parachuting and kayaking are popular activities here. In summer, many festivals are held on the beaches. The

two subway routes take you to all the famous tourist destinations in the city.

One of the places which you should not miss out on in Busan is Beomeosa temple, situated on the Geumjeongsan Mountain. This temple was built about 1,300 years ago by the great master Ui Sang in the period of King Munmu under the Silla Dynasty. Next to the temple is the Fantasia amusement park which promises adventure and excitement. If you have more time, consider visiting Huangsan Mountain which, because of its role in deterring invaders, is regarded as the Great Wall of Korea. ®

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Bidv lauded forcsR visionOn April 11 BIDV received the Good Social Security & Community Development Award from the Ministry of Planning and Investment. T

his prestigious award aims to recognize corporations who have exemplified commitment

to improving social and community development in the country. This is the third year BIDV has been chosen for this accolade.

In 2014, BIDV continued to implement many CSR programs focusing on four areas: education, healthcare, poverty relief and disaster response. BIDV sponsored the construction of 32 schools and 150 houses for families below the poverty line. Furthermore, 19 education foundations were supported and hundreds of scholarships granted. Medical equipment at three medical facilities was upgraded along with the provision of 16 ambulances to service hospitals. Tens of thousands of Tet gifts were handed out to the poor and in flood prone areas students received over 3,000 life jackets - bags.

Since 2008, BIDV has funded CSR programs to the tune of nearly VND1,300 billion (USD60 million). This award confirmed BIDV’s longstanding belief in conducting CSR in local communities. ®

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new school for highland pupilsOn April 3, BIDV and Van Ho District (Son La province, Northwest Vietnam) held a ground-breaking ceremony for the construction of Sao Do Primary School. This is one of the central actions in the plan to develop the region.

construction of 12 schools, three clinics and 1,190 houses for the poor within the district of Sop Cop. In addition to Sop Cop, BIDV also agreed to support other poor districts in the province with a total value to the tune of about USD2.4 million. ®

construction of Sao Do Primary School. The 2-storey school will consist of 10 classrooms and other education related facilities.

Senior Executive Vice President of BIDV Tran Xuan Hoang said education and training are the responsibility of the education sector, the political system and society as a whole. Not only investing in and providing loans for the construction of schools nationwide, in the last five years, BIDV has assigned a portion of its profits and employees’ contributions worth hundreds of billions of Vietnamese dong to fund the education sector.

In Son La, following the Government’s Resolution 30a, BIDV was committed to provide USD1.5 million for the

PhAM vAn

At the workshop on Investment Promotion in the Northwest region held on April 4, 2015 in Son La province, BIDV signed 3 important credit contracts with Anpha Hydropower Investment Company, Phuc Khanh Energy Development and Construction Company and Nam Tien Lao Cai Company worth USD15.6 million; USD15.7 million and USD12.9 million, respectively.

Founded in 2013, Van Ho is a new district alongside Moc Chau district, largely consisting of

poorer communes. It has an under-developed education infrastructure that prevents pupils from pursuing their study. With the desire to provide the district’s children with suitable learning environments, BIDV decided to sponsor nearly USD233,000 for the

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Youth Federation and National Volunteer Center with the message "We bring music to make you smile".

Started three years ago, the project has been expanded to over 80 hospitals in Hanoi, Hai Phong and Ho Chi Minh City, as well as in the Northern mountainous provinces of Hoa Binh,

Lao Cai and Ha Giang and the central province of Nghe An.

This volunteer broadcast attracts the participation of over 500 artists countrywide. It generates a significant boost to patients and their families in some small measure, helping to relieve their pain.

In 2015, 23 music events are scheduled for Hanoi, 11 for Ho Chi Minh City, six to other provinces including Ly Son Island in Quang Ngai province. In total these reach 80,000-100,000 people.

According to BIDV’s representative, Bringing Music to Hospitals is a humanitarian effort. The artists bring transcendent happiness to patients and serve to raise the awareness of younger generations of those less fortunate.

Along with the other charitable endeavors to support the health sector (such as funding for hospitals, health center construction and eye surgery for the elderly), BIDV’s Bringing Music to Hospitals affirms the bank’s care for the health and wellbeing of society as a whole. ®

Realizing the importance of music to improving patients’ spirits, BIDV has continued to

sponsor the program Bringing Music to Hospitals for the third year in a row.

The program was developed in coordination with the Ho Chi Minh Communist Youth Union, the Vietnam

Bringing music to hospitals

vAn hAi

BIDV Review 03

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