BIDV Review 06

A Newsletter of Bank for Investment and Development of Vietnam JSC Issue No. 6 | Jul 2015

Transforming inTo a commercial bank

Anniversaryth

EXECUTIVE PRODUCERQUACH HUNG HIEPSenior Executive Vice President

EDITORIAL BOARDBRANDING AND PUBLIC RELATIONS

TRANSLATORSNGUYEN TRANTRANG TRINH

HEAD OFFICEBIDV 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 CommunicationsPrinted at Vietnam Book Printing Joint Stock Company

Bank for Investment and development of vIetnam JsC

ABOUT BIDVEstablished in 1957, BIDV has grown to become one of the leading commercial banks in Vietnam. By the end of June 2015, BIDV employs over 22,000 staff and has almost 1,000 transaction points as well as thousands of ATMs. It boasts subsidiaries in finance, banking, securities and insurance. In recent years, BIDV has expanded its business to the international market, with investment in Laos, Cambodia, Myanmar, the Czech Republic, and Russia. BIDV’s total assets are close to USD35 billion, with its charter capital around USD1.5 billion. BIDV stock (BID) is listed on the Ho Chi Minh City Stock Exchange (HOSE). For more information, visit us at www.bidv.com.vn

Dragon Bridge, Danang City, Vietnam

july 201501

T

Editor’s Letter

on the role and position of BIDV over the past 20 years.

Adopting the strategy of multilateral economic cooperation and market expansion, BIDV established its commercial presence in Laos, Cambodia, Myanmar and the Czech Republic. In addition, as chairman of three associations of Vietnamese investors - AVIL in Laos, AVIC in Cambodia and AVIM in Myanmar, BIDV has demonstrated its role as an effective bridge to connect economic, trade and investment relations between Vietnam and neighboring countries. BIDV Review will highlight the achievements generated from the bank’s pioneering corporation.

In this issue we also focus on BIDV’s product and service promotions and CSR activities as well as the beauty of Da Nang City. We also include information about Quang Binh province, where a tourism investment conference will be held in early August this year.

We hope that the information we provide will help readers gain a deeper understanding of BIDV. We welcome feedback to help us improve future issues for our clients and customers.

Thank you.

Dear readers,

his year we celebrate the 20th anniversary of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) operating as a fully commercial bank, as well as international integration into the economic market. On this occasion, we would like to review the significant milestones of the bank.

The past 20 years have seen significant positive developments for BIDV. From a single owner, single-function bank, BIDV has risen strongly and overcome many difficulties to grow and affirm its position in the economic market. BIDV has made great contributions to both the development of Vietnam and the relations between Vietnam and countries around the world. The bank’s efforts were recognised not only by leaders of the Vietnamese Government but also by international leaders. This issue reflects on how BIDV has grown and developed to become one of Vietnam’s leading banks.

As one of the primarily state-owned commercial banks in Vietnam, BIDV possesses strengths in international cooperation and investment. The bank has built good relations with major world institutions including the World Bank, ADB, JICA, JBIC, NIB, HSBC and Standard Chartered and more. In this issue, financial institution leaders will share their thoughts

Bidv Review02

contents

20 years a commercial bank4. Transforming across the board

28. Valuing close ties

29. Inspired by BIDV’s vision

6. BIDV - A pioneer in economic diplomacy

20. Proactive in overseas financial markets

22. International business milestones

24. Going international

Partners25. A vibrant and alive institution

26. Financial resources to thousands of viable rural

economic entities

27. Flourishing through partnership

30. Thriving as a top tier bank

31. Close cooperation

36. A Czech foothold

32: High systematic importance

33: BIDV – A trustworthy partner

international investment34. BIDV MetLife: Pursue more from life

july 201503

contents

54. Towards safer banking

56. 13 years of success

58. Developing a Japanese client base

38. Sustainable value accretion in Laos

39. Mission accomplished in Cambodia

40. Footprint in Myanmar

42. AVIL: Active cooperation

44. AVIC: Boosting Cambodia – Vietnam

cooperation

46. AVIM: A pioneer in the Golden Land

biDv HigHligHts48. BIDV outperforms first half

50. Red carpet for investors

52. Debottlenecking Decree 67

60. BIDV forges hi-tech agriculture bonds in Israel

61. BIDV Visa Platinum goes above and beyond

lifestyle62. Danang - The call of the wild

64. Deals on the fairway

csr65. Red journey 2015

66. Overseas development highlights

37. Russian relations

20 yeaRs a commeRcial Bank

Bidv Review04

Looking back on the economic renovation process during the past 30 years, it can be seen

that Vietnam has achieved many outstanding accomplishments, transforming from a closed, centrally planned economy into a proactively integrated market economy with a socialist orientation. Furthermore, driven by clear business thinking and with a focus on quality, effectiveness and competition, Vietnam has been able to become deeply integrated into both the regional and international economic markets. From an underdeveloped country, Vietnam has become a rapidly developing nation with an increasingly robust position in the world.

Together with the transformation of our nation, the banking industry has seen steady and continuous growth. During the 1990s the promulgation of two decrees on the State Bank of Vietnam and credit institutions created the foundations for changes in the Vietnam banking system, enabling it to assert its position in the economy and significantly contribute to macro-

transforming across the board

tRan Bac Ha

BIDV Chairman

During its 58-year history of establishing itself as a leading financial institution in Vietnam, BIDV has been proud of its practical and efficient contributions to the struggle for liberation of our country and the subsequent economic integration and development

economic stability, inflation control and both domestic and offshore fund mobilisation.

For BIDV, the past 20 years have been a memorable period of radical change, from a bank specialised in granting state budget funds under the management of the Ministry of Finance to a fully commercial bank under the management of the State Bank of Vietnam. BIDV relentlessly strives to adjust to its business environment, continuously self-monitoring and improving in order to develop in scale, quality and profitability, thus becoming the leading bank in implementing development financing and national monetary policies. We have also been the pioneer bank in foreign direct investment, contributing significantly to international economic

integration. BIDV has also proactively participated in the poverty reduction process through corporate social responsibility activities.

With development in every field of its operation, BIDV has now become a public company and a leading financial institution in Vietnam, with a high ranking position in Southeast Asia. Total assets have increased 40 times since 1995 to nearly USD35 billion. Profitability has improved year-on-year, with operation in line with international standards.

BIDV is also the pioneer bank in Vietnam in terms of transparency in business operation. We have adopted an international independent audit and released our financial statements under both Vietnam Accounting


july 201505

Standards (VAS) and International Financial Reporting Standards (IFRS) since 1996. We continue to release our audited financial statements and other financial information in our Annual Reports. We have been rated by Moody's Investor Service since 2006 and Standard and Poor’s since 2010.

In our development strategy, international banking has always been considered the pivotal activity and the prerequisite for BIDV to grow and attract offshore resources, obtain advanced technology and skills, expand our market share and cooperate with partners. This has contributed to elevating our operation effectiveness, affirming our brand and image in the international business community. The 1995-2005 period witnessed a quantitative and qualitative breakthrough in our international banking with the following significant outcomes.

Firstly, successful development of a long-term international banking strategy, and taking the lead in operational transparency and corporate governance in accordance with international standards and improved credit ratings.

Secondly, establishing and expanding correspondent banking relationships. BIDV has established correspondent relationships with 1,700 banks in 122 countries and territories globally, including leading banks and financial institutions.

Thirdly, extending networks and presence overseas by strongly developing our brand recognition in the regional and international markets, efficiently contributing to enhancing economic, trade and investment cooperation between Vietnam and other countries. BIDV’s presence in Laos, Cambodia, Myanmar, the Czech Republic and Russia has shown operational efficiency and has been recognised by local governments and partners. BIDV also has plans to expand its business presence in Taiwan, Japan and the United States.

In achieving these results, BIDV’s

generations of management and staff have always been grateful for the support and consideration from government leaders, competent authorities, clients, partners and particularly financial institutions that have accompanied BIDV since the beginning.

Looking back more than 20 years, when the US embargo on Vietnam was gradually lifted, the Standard Chartered Bank, Sumitomo Bank, Citibank, HSBC, and JP Morgan Chase amongst others were the first banks to establish correspondent banking with BIDV, thus creating BIDV’s direct payment channel with the international market.

The entire current agent banking services originated from the management service for the first ODA from the Italian Government of 58.5 billion Lira. The syndicated loans of USD100 million and USD30 million arranged by Krungthai Bank and Bangkok Bank helped BIDV become the first bank in Vietnam to access the international economic market. Furthermore, the establishment of VID Public Bank – a joint venture with Public Bank Berhad, Malaysia – laid the foundation for BIDV’s joint venture operation. BIDV has always recognised and appreciated the first

transactions and cooperation with international partners, marking the initial steps of integrating into the international market.

Not wholly satisfied with current achievements, BIDV has set a vision for 2030 of becoming the leading modernised and efficiently operating bank in Vietnam and being listed in the top 10 banks in Southeast Asia. With a strong ethos developed and fostered over many years and the experience gained through years of operation, we are confident of realising these targets in the not too distant future.

On this occasion, BIDV’s management and staff would like to convey our sincere thanks to government leaders, partners and clients at home and abroad for supporting BIDV during the past 20 years as well as continuing

to provide support and develop relationships in the future.

BIDV head office in Hanoi, Vietnam


Bidv Review06

Vietnam’s Prime Minister Vo Van Kiet (2nd from left) attended a ceremony unveiling the banner of VID Public Bank in Malaysia in 1992

Malaysian Prime Minister Mahathir Mohamad (L) unveiled the banner of VID Public Bank in Hanoi, 1992

Bidv–a pioneer in economic diplomacy

As one of the leading financial institutions in Vietnam, BIDV has earned the trust of the government to employ economic diplomacy and operate at a high standard. BIDV and its commercial entities take pride in their good working relationships with country leaders, resulting from their significant achievements, positive contributions to Vietnam’s development and their role in establishing harmonious relations between Vietnam and other nations.

As a primarily state-owned bank, BIDV complies with and implements government guidelines and policies. Before Vietnam joined ASEAN (July 28, 1995), BIDV was selected by Vietnam’s Prime Minister to form a joint venture with a Malaysian partner, resulting in the formation of VID

Public Bank. To mark the establishment of the joint venture VID Public Bank, the two prime ministers of Vietnam and Myanmar Vo Van Kiet and Mahathir Mohamad attended a ceremony unveiling the banner of the bank in Malaysia and Hanoi respectively.


july 201507

Vietnam’s Prime Minister Phan Van Khai (6th, R-L) visited LaoVietBank in 2004

Following the government policy on promoting and developing

comprehensive trade, economic and investment relations between Vietnam and Laos, BIDV worked with Banque Pour Le Commerce Exterieur Lao (BCEL) to establish a joint venture LaoVietBank (LVB) in 2009 with the aim of contributing to the socio-economic development and financial systems of Laos and supporting trade and economic

relations between the two countries.

On November 28, 2004, Vietnam’s Prime Minister Phan Van Khai paid a visit to LaoVietBank. He lauded the efforts and initial achievements of the bank and wished LVB solidarity to build a strong bank, operating efficiently and contributing positively to the socio-economic development of the two countries


Bidv Review08

Vietnam’s Prime Minister Nguyen Tan Dung (5th man L-R) at the opening of the BIDV representative office in Laos in October 2011

On October 09, 2011, Vietnam’s Prime Minister Nguyen Tan Dung

attended the opening of the BIDV representative office in Laos.

The BIDV representative office in Laos, an extended arm of BIDV, actively supports the Association of Vietnamese Investors in Laos, and a bridge to establish, maintain and develop relations between state regulators, partners, customers and investors in the two countries.

The Vietnamese Prime Minister

remarked on the positive results of BIDV and LaoVietBank. The Prime Minister stressed that LaoVietBank is the “son” of BCEL and BIDV - the two leading state-run banks of Laos and Vietnam respectively. BIDV not only affirmed its role as a state commercial bank, but also effectively implemented the monetary policies of the country.

In recent years, BIDV has been proactive in international investment promotion, particularly in Laos


july 201509

Vietnam’s State President Nguyen Minh Triet commented on LaoVietBank book, 2007

On August 26, 2004, in a visit to Lao-Viet Joint Venture Bank, Vietnam’s

State President Nguyen Minh Triet affirmed: “Lao-Viet Joint Venture Bank provides a beautiful image by being a successful cooperation that has actively contributed to the socio-economic development of the two countries. I wish you great future success.”

On February 6, 2007, Lao-Viet Joint Venture Bank was honored to

welcome Vietnam’s State President Nguyen Minh Triet for his second visit to the bank. The President commented:

“In recent years Lao-Viet Joint Venture Bank has developed rapidly, operated effectively, and contributed to the socio-economic development of the two countries. In the time to come, competition will be fiercer. I hope the bank will prove to have high standards of staff training and coaching, offer reasonable interest rates to serve the economy and society and the ability to overcome difficulties to achieve even greater successes”.

Lao-Viet Joint Venture Bank provides a beautiful image by being a successful cooperation that has actively contributed to the socio-economic development of the two countries. Vietnam's State President Nguyen Minh Triet, August 26, 2004


Bidv Review10

General Secretary of the Vietnam Communist Party Nguyen Phu Trong (central) visited AVIL in Laos, 2014

On April 12, 2014, the General Secretary of the Vietnam

Communist Party Nguyen Phu Trong paid a visit to the Association of Vietnamese Investors in Laos (AVIL).

The Party General Secretary expressed pleasure at the results achieved by Vietnamese businesses in Laos.

The Party Chief said although both Vietnam’s socio-economic conditions and the world economy remained difficult, Vietnamese businesses made great efforts in their business dealings

in Laos and have achieved good results.

Mr. Trong also willed Vietnamese businesses in Laos, besides doing business, to promote social security activities in Laos, strengthening the relations between the two countries.

“The Vietnamese businesses not only create jobs and generate income for the local community but also promote social development and livelihoods, strengthen solidarity and contribute to the preservation of traditional ties and comprehensive cooperation between Vietnam and Laos”. Mr. Nguyen Phu Trong, General Secretary of the Vietnam Communist Party.


july 201511

Vietnamese Prime Minister Nguyen Tan Dung visited the Bank for Investment and Development of Cambodia Plc, 2010

Following the guidelines of the Government of Vietnam on the

establishment of BIDV’s commercial presence in the Kingdom of Cambodia in finance, banking and insurance, BIDV fostered relations with relevant agencies including Cambodian Investment and Development Co., Ltd (IDCC), Bank for Investment and Development of Cambodia Plc (BIDC), Cambodia-Vietnam Insurance Joint Venture Company (CVI) and Cambodia-Vietnam Securities Company (CVS) as well as the opening of the BIDV Representative Office.

During a visit to the Kingdom of Cambodia in May 2010, the former General Secretary of Vietnam Communist Party Le Kha Phieu attended the CSR activities of the Association of Vietnamese Investors in Cambodia (AVIC) and the Bank for Investment and Development of Vietnam (BIDV).

On November 15, 2010, during the official visit to the Kingdom of Cambodia, Vietnamese Prime Minister Nguyen Tan Dung visited the Bank for Investment and Development of Cambodia Plc (BIDC). The Prime Minister

commended staff on the significant growth of BIDC. He commented that BIDC was not only profitable, but also fulfilled its mission as a bridge for trade and investment between the two countries, and actively contributed to the building of sustainable relations between Vietnam and Cambodia. Vietnamese staff showed efficiency and skills in completing assigned tasks, and positively contributed to the achievements of BIDC.


Bidv Review12

Chairman of Vietnam National Assembly Nguyen Sinh Hung (with wreath of flowers) visited BIDC in 2011

On a visit to Cambodia in September 2011, a high-ranking delegation of

the National Assembly of the Socialist Republic of Vietnam led by Mr. Nguyen Sinh Hung, Politburo member and chairman of the National Assembly visited the Bank for Investment and Development of Cambodia Plc (BIDC). Speaking to the leaders and staff of BIDC, the National Assembly chairman expressed pleasure at the high performance of BIDC over its two year presence in Cambodia. Mr.

Hung also lauded BIDC for fulfilling tasks assigned by the Vietnamese Government in leading the investment activities of Vietnamese enterprises in Cambodia and its role as a bridge between the governments of the two countries, further enhancing the mutual understanding.

As a member of BIDV, BIDC is one of the six leading commercial banks in Cambodia with continuosly improved financial capability.


july 201513

Vietnam’s State President Truong Tan Sang visited BIDV’s representative office in the Czech Republic, 2015

BIDV established two presences in the Czech Republic, including the

European Investment and Development Corporation (IDCE) and its BIDV Representative Office.

In October 2011, BIDV worked with relevant units to establish the IDCE based in Prague in the Czech Republic to provide financial and banking services and products to the Vietnamese community.

Since opening its doors in November 2012, the BIDV Representative Office in the Czech Republic has been actively involved in self-promotion of its role as an extended arm of BIDV in the Czech market in particular and the European market in general.

On May 11, 2015, in a working visit to the Czech Republic, Vietnam’s State President Truong Tan Sang visited BIDV’s representative office in the Czech Republic. The President

commented on the efforts of IDCE in accessing and providing capital sources to the Vietnamese people in the Czech Republic to help them develop business and production. The President also praised the BIDV representative office for its role in supporting the transfer of remittances from the nation to Vietnam and on advising and supporting Vietnamese investors in the Czech Republic to implement national-scale projects.


Bidv Review14

Vietnam’s Prime Minister Nguyen Tan Dung (central) visited BMF office in Myanmar, 2015

In April 2010, following a joint statement of the Prime Ministers

of the two countries on 12 key areas of cooperation including banking and finance, BIDV established its representative office in Yangon. The office aims to study the market and support Vietnamese investors in its role as Chairman of the Association of Vietnamese Investors in Myanmar (AVIM).

On June 23, 2015, attending the 7th Cambodia-Laos-Myanmar-

Vietnam Summit (CLMV 7) and the 6th

Summit of Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS 6) in the Republic of the Union of Myanmar, Vietnam’s Prime Minister Nguyen Tan Dung addressed key activities of Vietnamese businesses in Myanmar.

The Prime Minister Dung praised the Association of Vietnamese Investors in Myanmar (AVIM) as well as BIDV, Hoang Anh Gia Lai Group (HAGL) and other businesses for their efforts in promoting trade and economic relations between Vietnam and Myanmar.

The achievements of Vietnamese enterprises in Myanmar during recent years have contributed greatly to the relations and bilateral cooperation between the two countries. The Prime Minister encouraged AVIM to continue promoting its role in supporting Vietnamese businesses investing in Myanmar, particularly in the 12 key areas agreed upon by the governments of the two countries.


july 201515

Front, L-R. Russian President Vladimir Putin (third), and Vietnamese President Nguyen Minh Triet (fourth), visited Vietnam-Russia Joint Venture Bank, a joint venture between BIDV and Russia's VTB in 2006

BIDV has established relationships with 31 Russian commercial banks,

whilst maintaining and promoting cooperation with the largest foreign banks in Russia to assist Vietnamese enterprises in exporting goods to the Russian market. Russia Foreign Trade Bank (VTB) has been BIDV’s main partner in the Russian market in many areas including contributing capital to establish Vietnam–Russia Joint

world leaders with BidvBy actively and effectively delivering economic diplomacy, BIDV has become a positive presence in other nations. BIDV has contributed significantly to the socio-economic development of countries where it has commercial presence and strengthened comprehensive relations with these countries. As a result, the reputation of Vietnam has greatly improved on the international stage. The praise and recognition of BIDV by international leaders are testament to this.

Venture Bank (VRB) in 2006, financing investment projects of enterprises of both countries and the formation of a local currency payment channel.

On November 19, 2006, attending the APEC Summit in Vietnam,

Russian President Vladimir Putin, and Vietnamese President Nguyen Minh Triet, visited Vietnam-Russia Joint Venture Bank (VRB) - a joint venture

between BIDV and Russia Foreign Trade Bank (VTB). Speaking at the event, the Russian president stated: “Vietnam-Russia Joint Venture Bank was the first move to improve payment mechanisms in bilateral relations. The foundation of VRB will boost trade between the two countries. Hopefully, VRB will grow in terms of both capital and scale, work efficiently, and gain the trust of both Vietnamese and Russian customers.”


Bidv Review16

R-L. Russian President Dmitry Medvedev (4th), Vietnam President Nguyen Minh Triet (3rd) and BIDV leadership in 2010

On October 31, 2010, following high-level talks and the signing of

cooperation agreements between the two countries, Russian President Dmitry Medvedev, State President of Vietnam Nguyen Minh Triet, and their delegations visited the headquarters of BIDV.

The two leaders of Russia and Vietnam listened to the reports by representatives of Bank for Investment and Development of Vietnam and Russia Foreign Trade Bank (VTB) on the results of pilot implementation of bilateral direct payment mechanism in ruble and dong to serve the import and export activities of the two countries and the cooperation of VTB and BIDV with Russian

corporations, including the Vietnam-Russia Joint Venture Bank.

President Medvedev expressed his interest in the operations of the Vietnam–Russia Joint Venture Bank (VRB) and urged the governments of the two countries to continue to support VRB. He urged BIDV and VTB to continue their efforts to contribute to the promotion of economic and trade relations between Vietnam and Russian.

Vietnam-Russia Joint Venture Bank, set up in 2006, is a familiar name for businesses and entrepreneurs who have regular transactions with both Vietnamese and Russian companies.


july 201517

Prime Minister of the Czech Republic Mirek Topolanek (1st R-L) visited BIDV in 2008

On March 21, 2008, on an official visit to Vietnam, the Prime Minister

of the Czech Republic Mirek Topolanek paid a visit to BIDV.

The Czech Prime Minister affirmed: “With good prospects for cooperation between Vietnam and the Czech Republic, I hope more Czech businesses will choose BIDV to assist with their business and investment in Vietnam. I hope BIDV can make positive contributions to support Czech businesses in seeking opportunities in Vietnam.”

On August 26, 2011, a high-ranking national assembly delegation led by

Mrs. Pany Yathortou, politburo member, National Assembly chairman visited BIDV in Vietnam. At the meeting, Mrs. Pany Yathortou expressed pleasure at BIDV’s contributions to both Laos and Vietnam and extended thanks to the bank leadership and staff for their contributions to the people of Laos.

On March 14, 2014, on a visit to the headquarters of the Association

of Vietnamese Investors in Laos (AVIL) and BIDV, Prime Minister of Laos Thongsing Thammavong acknowledged the contributions of AVIL and BIDV in recent years, particularly their role in promoting trade and investment cooperation between the two countries.

The Prime Minister also encouraged AVIL and BIDV to further promote investments of Vietnamese businesses in Laos, actively contributing to the socio-economic development of the country.

With good prospects for cooperation between Vietnam and the Czech Republic, I hope more Czech businesses will choose BIDV to assist with their business and investment in Vietnam. Czech Prime Minister Mirek Topolanek, 2008


Bidv Review18

Lao People's Revolutionary Party Chief and President of Laos Chummaly Sayasone visited AVIL and BIDV, 2012

On December 26, 2014, General Secretary of the Lao People's

Revolutionary Party and President of the Lao PDR Chummaly Sayasone visited the Association of Vietnamese Investors in Laos (AVIL) and BIDV. Vietnam’s Politburo member, Deputy Prime Minister Nguyen Xuan Phuc - Chairman of Vietnam – Laos Cooperation sub-committee, Mr. Hoang Binh Quan, Central Party Committee member, Head of Party's National External Relations Committee and leaders of ministries and investors of the two countries also attended.

The Party Chief and State President recognised the contributions made by AVIL in promoting Vietnamese business investment in Laos, particularly the key role of BIDV and Mr. Tran Bac Ha - the chairman of AVIL/BIDV.

Mr. Chummaly Sayasone also willed Vietnamese enterprises investing in Laos to continue making significant contributions to the development of Laos, considering it an important motivation to foster the special, friendly and comprehensive relations between the two countries.


july 201519

Chairman of Myanmar National Assembly Thura U Shwe Mann and his high-ranking delegation visited AVIM and BIDV, 2014

On September 7, 2014, on an official visit to Vietnam, Chairman of the

National Assembly of Myanmar Thura U Shwe Mann and his high-ranking delegation visited the Association of Vietnamese Investors in Myanmar (AVIM) and BIDV.

The Myanmar National Assembly Chairman lauded the efforts of AVIM and BIDV for their role in helping to connect the markets of the two countries. The Chairman encouraged AVIM to further promote its role and investment opportunities of Vietnamese businesses in Myanmar, particularly

in the fields of agriculture, hospitality, tourism, banking and finance.

Mr. Thura U Shwe Mann said Myanmar had been actively implementing innovative policies, focusing on institutional reforms, market opening for economic development, improving living conditions of the people. Myanmar always keeps learning from experience of countries in economic reforms in order to continually improve the legal framework, reform administrative procedures to protect the rights of and motivate foreign investors in Myanmar


Bidv Review20

ASEAN Bankers Association, ASEAN Business Advisory Council and China–ASEAN Interbank Association.

PRoactively exPanding its oveRseas PResence

In 1992 BIDV cooperated with Public Bank Berhad (Malaysia) to found VID Public Bank, BIDV’s first joint venture bank, with the aim of gaining experience in modern banking from this prestigious Malaysian bank. Since then, BIDV has established numerous joint ventures and affiliated projects in the fields of banking, insurance and fund management, with the leading counterparties from the U.S., Singapore and Russia. The financial and insurance markets have provided opportunities for BIDV to conduct business, drawing on BIDV’s strengths in networking and helping to shape BIDV towards becoming a universal financial and banking corporation in Vietnam.

As well as its active operations in the local financial market, BIDV has made firm movements to penetrate the financial and banking markets in countries throughout Southeast Asia,

Proactive in overseas financial markets

inteRnational Business exPansion

BIDV has increased its number of RMAs in correspondent banking from 60 in 1995 to 1,700 in the present day. Connecting with leading banks and their branches from 122 countries and territories around the world enables BIDV to smoothly and effectively serve its customers as well as supporting its general business development. BIDV has become the customers’ first choice when seeking new products and services in Vietnam.

Furthermore, thanks to its prestige, position and capacity, BIDV has established sound relationships with various international organisations. BIDV plays a leading role in offering agent banking services and on-lending services. It has the capacity to support large projects including three Rural Finance projects from the World Bank, with a total funding of USD548 million; and a Stress Recovery Support project of ADB, with a total funding of USD500 million. BIDV is also an active member of various regional associations including Asian Bankers Association,

including Laos, Cambodia and Myanmar as well as countries which have significant Vietnamese communities such as the Czech Republic and Russia. BIDV’s presence in the fields of banking, insurance and securities have proved its effectiveness and helped to raise BIDV’s profile, prestige and position in these countries. At the same time, BIDV has taken a leading role in connecting with Vietnamese enterprises in foreign investment through its role as the founder and chairman of the Association of Vietnamese Investors in Laos (AVIL); in Cambodia (AVIC); and in Myanmar (AVIM). By taking an active role, BIDV has made significant contributions to boosting the economic, trade and investment cooperation between Vietnam and the countries where BIDV has a presence.

a modeRn and tRansPaRent commeRcial Bank of inteRnational standaRd

As well as receiving international support and advice, BIDV has actively studied and researched the operation of modern banks in order to progress its business model in line with international practices. The organisational structure of the international business projects have been adapted to meet the business features and requirements during each operational period.

In 1996, BIDV was the first bank

In the course of BIDV’s 58 years of foundation and development, the last twenty years has seen the bank transform its entire system to become a fully integrated and innovative international-level player, maintaining a high growth rate, sound business acumen and the capacity to competitively participate in the global market.

PHam QuynH


july 201521

in Vietnam to adopt international independent auditing, and began publishing its financial statements under both Vietnam Accounting Standards (VAS) and IFRS. In this regards, BIDV was ahead of its time. Not until 1999, did all banks in Vietnam were required by the State Bank of Vietnam to adopt independent auditing under VAS.

Assessing credit rating has been standard practice in the international financial market for many years. However, this practice has only been adopted in Vietnam in the last 10 years, with BIDV being the first bank to begin credit rating assessments. BIDV established credit rating contracts with two of the three most prestigious credit ratings firms in the world, namely Moody’s Investor Service in 2006 and Standard and Poor’s in 2010. These actions confirm the bank’s commitment towards transparency and applying

international standards to BIDV’s business operations, thereby enhancing the credibility of BIDV with overseas and domestic partners and customers. BIDV’s credit rating maintains good results because the rating firms are able to work effectively with BIDV thanks to its improved corporate governance and risk management.

In 2006, BIDV became the first bank in Vietnam to successfully implement the internal rating system and debt classification under Article 7 of Decision 493, the quantitative measure adhering to international debt classification standards. This system is reviewed and adjusted regularly in order to adapt to changes in the market and with partners, helping to accurately evaluate customers’ capacity and set a stable foundation for risk management in line with international practice.

In recent years, prestigious global

and regional magazines such as Asiamoney, Finance Asia, Euromoney, Asia Risk Magazine have recognised and awarded BIDV for its outstanding products and services. Many of those awards are voted by corporates and financial institutions who form part of BIDV’s customer base, signifying the recognition of BIDV’s international standardised organisational structure, management capacity and operational efficiency in various fields.

During the last 20 years, BIDV’s international business operations have played important roles in the development of the bank. They serve to attract resources, enhance the transfer of technology and modern skills, support market share expansion and customer relationships as well as contributing to BIDV’s business efficiency and promoting BIDV’s image on the international stage.


Bidv Review22

20 years have passed since the date BIDV transformed into a commercial bank. Please tell us more about the very first days of the business.

Before 1990, the main capital for the operation of BIDV came from the State budget. As a subsidised bank, prior to 1990, BIDV only operated in the domestic market. It did not have relationships with foreign partners and it did not have its own cash fund. The international payments at that time were made by the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank).

1990 marked a milestone for BIDV because the bank established the External Relationship Department. In 1990, the department was assigned to establish the first joint venture of BIDV – the joint venture with Public Bank Berhad (Malaysia).

The BIDV management team then quickly established relationships with Asian, European and American banks and their branches in Vietnam.

BIDV’s first correspondent banks included Malaysia's Public Bank, China Construction Bank, Koram Bank (Korea) and Credit Suisse (Switzerland).

Thanks to expanding correspondent relationships and international activities, the bank successfully signed an export trade finance agreement to lend to domestic businesses. Agreements were signed with large banks such as Berliner Bank (Germany).

By 1993, BIDV had correspondent relationships with 100 banks worldwide and 20 letters of credit with a total value of USD100 million.

In 1994, BIDV joined the SWIFT

international business milestones

tRang tRinH

Mr. Nguyen Van Doan, former chairman and CEO of BIDV, talks to BIDV Review about the bank’s history and the keys to its continued growth.

international payment system and the bank’s international businesses accelerated in many aspects. BIDV had deposit and payment relationships with up to 30 large banks in the international financial market.

Also in 1994, BIDV signed the first foreign loan for long-term development and investment in Vietnam’s banking industry.

Why was it not until 1994 that BIDV became the first Vietnamese bank to receive loans from foreign banks?

BIDV has created a strong reputation in the region and around the world. Thanks to this reputation, BIDV became the pioneer bank in attracting foreign capital for long-term investment and development.

Prior to 1995, Vietnam’s economy was in serious difficulty with stagnated production and hyperinflation and embargoes. World Bank, ADB and other financial institutions were prevented from supporting Vietnam. Therefore, IMF did not allow Vietnamese enterprises to borrow for long-term investment and development.

=However, in 1994, BIDV did access some loans from foreign banks. They included a syndicated loan worth


july 201523

USD100 million from 20 foreign banks (USD5 million each). The loans were signed with the support of Krungthai Bank which encouraged 20 foreign banks to join. The loan was a huge success for BIDV as this was the first time a Vietnamese bank could attract a five-year-term loan for long-term development. At that time, many banks and financial institutions hesitated to lend BIDV.

Also in 1994 after BIDV’s first foreign loan was secured, Bangkok Bank, agreed to lend BIDV USD30 million in June. The next lenders were Public Bank Berhad (Malaysia) (USD10 million) and Societe Generale Asia Limited in Hong Kong (USD30 million on a five-year term).

This success helped create and foster international relations and set the stage for the major developments that were to come.

Looking back at the early days when BIDV became a commercial bank, what were the most impressive aspects of that period?

I see 1990-1994 as the preparation period for the fascinating development period of BIDV. Working for BIDV in that period proved to be the happiest days of my life. The more challenges BIDV faced, the stronger it became. The more difficulties it had, the more success it achieved. BIDV achieved many things that other banks had not.

These achievements included the issuance of the first secured promissory notes, the value of which tracked the gold market price; the issuance of the first investment bonds in VND and USD; the first and the sole long-term syndicated loan in Vietnam; the establishment of Vietnam’s first securities company and the support to help save another bank in Vietnam (Nam Do Bank) from bankruptcy.

Why do you think BIDV achieved things that other banks could not?

Because BIDV has 37-years of experience (1957-1994) and it is the key bank in investment and development of the country. In addition, the bank spent the 1990-1994 period preparing the foundation for a brighter and more successful future.

Secondly, the bank had a long-term business strategy right at the beginning. It has fantastic, creative people working for it who are able to make quality decisions quickly.

Moreover, the bank has very good foreign relationships and the support of many international banks and enterprises. The bank also has first-class information technology and leading banking technology which mean BIDV is well-placed to integrate into the worldwide banking market.


Bidv Review24

industRy Recognition

BIDV has been recognised for its quality of SWIFT payments by the world’s leading banks including American Express Bank, Citibank and JP Morgan Chase. These awards are based on the success rate of Straight Through Processing (STP) - one of the key criteria used to assess the quality of automated payment.

The international payment awards from the leading financial institutions have affirmed BIDV’s efforts to improve service quality in accordance with international modern banking standards.

Furthermore, BIDV has joined the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) in 2001. The bank won the Development Finance-led Poverty Reduction award in 2004, plus the SME Development award and Local Economic Development award in 2005.

BIDV has played an active role in and contributed to the sustainable development of social objectives in the Asia-Pacific region. These awards are testament to related achievements.

awaRds fRom inteRnational magazines

BIDV has continually been awarded by prestigious international magazines including International Banker,

going international

nguyen linH

Constantly growing in all business areas, BIDV has established its brand and reputation in the international market with a series of prestigious accolades.

Asiamoney, Asia Risks, Euromoney and The Asian Banker. These awards have recognised the quality of its banking products and services which meet international standards.

some accolades earned by biDv 1. UNDP ranked BIDV among the top 4 biggest enterprises in Vietnam (2007) 2. Finance Asia ranked BIDV among the top 100 banks of Asia (2007) 3. BID Quality Award from Spain-based Business Initiative Directions 4. Top 1000 world banks, The Banker in 2013, 2014 5. ASEAN Famous Brand 2013 from the Ministry of Industry and Trade of Laos 6. Best Commercial Bank in Vietnam 2014 by International Banker 7. International payment awards Bank with Excellent Performance in Swift Payment by AMEX, Bank of New York, Citibank and HSBC (2001 – 2005) 8. Best Domestic Provider of FX Services in Vietnam from AsiaMoney for three consecutive years (2007, 2008, 2009) 9. Best International Payment and Cash Management 2010 from HSBC 10. Best Local Trade Finance House in Vietnam 2012, Euromoney 11. Best Overall Domestic Cash Management Services and Best Overall Cross-border Cash Management Services 2012, Asiamoney magazine 2012-2014 12. House of the year 2012 – 2014, Asia Risks 13. Best Trade Finance Bank in Vietnam 2014, The Asian Banker 14. Best Retail Bank in Vietnam 2014, The Asian Banker

This recognition has confirmed that the BIDV brand is now one of Vietnam's leading banks providing banking products and services of the very highest standards.

PaRtneRs

july 201525

Notable among your many achievements is BIDV’s transformation into a

modern commercial bank following internationally accepted standards and practices. BIDV was the first bank in the country to be rated by an international rating agency, and also the first bank to recalibrate non-performing loans closer to international best practice standard.

BIDV is now widely recognized as one of the most advanced and financially sustainable banking institution, and this was underscored by your recent success in an attempt to broaden your equity base through an initial public offering in an otherwise sluggish securities market. Additionally, what sets BIDV apart from some other financial institutions is the high quality of its human resource, which is a strong

contributory factor to its success.

The World Bank has had a vigorous and robust partnership with BIDV over the last decade, covering three rural finance projects managed by BIDV, and focusing on strengthening BIDV, Vietnam Bank for Agriculture and Rural Development, and proving short and medium-to-long term lines of credit to finance activities in the rural sector. We were also pleased to provide technical assistance support for BIDV to initiate in 2008 the much needed institutional reform program.

We also had the privilege to work closely with BIDV to establish itself as a trusted retail bank offering a wide variety of banking products that respond to the needs of its clientele. No less important was

BIDV’s determination to upgrade its financial infrastructure (IT and core banking system modernization) by participating actively in the World Bank-assisted payment system and bank modernization project. All of these actions are indicative of a dynamic institution which recognizes its shortfalls, identifies areas for improvement, and leads the sector with a proactive evolutionary strategy - the hallmark of an institution which is vibrant and alive.

In closing, we believe that we have gained as much through this wonderful and meaningful partnership as has BIDV. We look forward to deepening and nurturing our relationship with you in the years to come.

a vibrant and alive institution

victoRia kwakwa

World Bank’s Country Director for Vietnam

PaRtneRs

Bidv Review26

The rural finance program, which has been managed by Transaction Center III on daily

basis on behalf of the wholesale bank BIDV, has provided much needed financial resources to hundreds of thousands of viable rural economic entities, generated employment opportunities, increased income for rural households and the economic entities and directly contributed to poverty reduction in Vietnam. The mobile banking vehicles helped bring financial services to rural remote and disadvantageous areas.

This program has helped the World Bank build a strong partnership with the financial institutions in Vietnam and to implement on the ground the policy initiatives where the participating financial institutions (PFIs) have benefited from technical assistance and training to improve overall operational and financial performance.

financial resources to viable rural economic entities

xiaolan wang

Sustainable Development DepartmentEurope and Central Asia Region, The World Bank

For the BIDV, the training, the technical assistance, and the continuous policy dialogue between the World Bank team and BIDV, especially the commitment and determination from the senior management of BIDV has transformed BIDV into one of the strongest and most transparent financial institutions in Vietnam.

All these achievements would not have been made possible without contributions from the strong project management team of Transaction Center III. I could not help reflecting on what we have gone through together, the heated debates over the understanding of achieving project development objectives; the tough negotiation over the ceiling of micro finance loans; the most engaging and active round-table discussions; the long journeys to the remote Vietnam; the laughter from the end-borrowers and most importantly the pride gained

through hard work and recognition.

There are so many lasting memories I would not be able to list here, I am truly privileged to work with Transaction Center III management and staff, which is the most meaningful and rewarding 10 years in my career and personal life, that I even have a daughter who is the same age as my engagement with Vietnam rural finance program.

The professionalism, the commitment, the dedication, the talents from Transaction Center III management and staff has been recognized by all external partners. The extra energy, time and effort all of you have been putting in on this has really paid off as clearly demonstrated by the achievement. Transaction Center III has become the training ground by BIDV for managers and young staff with high potential.

PaRtneRs

july 201527

It has been a great privilege for Cathay United Bank to be a witness to the significant growth and

development of BIDV. Over the past years, BIDV has established a solid operating foundation not only in traditional areas of strengths such as project finance and capital raising, but also in building a robust retail banking service platform. This, together with a strong financial base and sound corporate governance, has answer BIDV to steadily strengthen its position as a leading bank in Vietnam.

It has also been a great honor for Cathay United Bank to be long-term partner of BIDV. As a leading Taiwan bank with a strong presence in Vietnam, Cathay United Bank appreciates the opportunities we have had to work with BIDV not only in inter-bank lending, but also in various areas such as project finance, international payments and foreign exchange.

flourishing through partnership

cHang-ken lee

President & Chief Executive Officer

Cathay United Bank

In addition, we have successfully arranged a number of syndicated loans for BIDV. Going forward, we are excited about working with BIDV beyond Vietnam’s border and expanding together into banking markets in Laos, Cambodia and Myanmar. Towards this end, we are very pleased to be signing a Memorandum of Understanding with BIDV on the occasion of your 20th Anniversary of transition to a Commercial Bank.

While BIDV has achieved much over the past 20 years, this Anniversary also marks a new beginning. We strongly believe that BIDV will continue on a path of successful development and we look forward to accompanying you along the way. We are also confident that the excellent partnership between our two banks will continue to grow and flourish to the benefit of our two banks and to the benefit of all our customers!

PaRtneRs

Bidv Review28

It is an honor to send our heartfelt congratulations to BIDV on the occasion of BIDV’s 20th anniversary of successful operation as a fully commercial bank.

BIDV’s rapid and successful development so far under Chairman’s leadership has

been admirable especially over the challenging period and it has been a privilege for me to work closely with BIDV senior management and the team.

BIDV has a strong reputation for its professionalism, as well as its progress towards becoming a modern and progressive financial institution. This is a result of the hard work and determination of the management and staff of BIDV, of whom you should be extremely proud.

This year marks 23 years since the

valuing close ties

PHam Hong Hai

CEO, HSBC Bank (Vietnam) Ltd.

relationship between BIDV and HSBC first began. We are very proud to have been one of the first foreign banks to support BIDV's growth and development, and over the years our relationship has continued to strengthen and develop.

Since the outset of our relationship, HSBC has cooperated actively with BIDV in many areas, including credit and lending, payments and cash management, treasury activities, bond issuance advisory, and securities services.

The close cooperation between 2 banks has been marked by remarkable deals: 1) HSBC acted as Bond Advisor for BIDV’s Tier 2 Bond Issuance of VND 1,362 billion in 2009 and Bond Advisor, Joint Arranger, and Bookrunner for BIDV’s Tier 2 bond issuance of VND 2.1 trillion (much higher than initial target of VND 1.5 trillion) in 2006 to reinforce BIDV’s

capital (before that, HSBC successfully advised BIDV to achieve good ratings from Moody’s with Bal/Bl for deposit & Bal/Ba3 for issuer ratings) and 2) HSBC’s USD200mio structured loan with tenor 5 years in the year 2012.

We highly appreciated BIDV Treasury business which gained many prestigious awards in recent years and has a lot of potentials to grow further. We are keen on boosting cooperation with BIDV in this area, especially in derivatives in the coming time. Honestly, I always have a trust that there is a great deal of potentials for bilateral cooperation between our organizations, a leading local bank with large customer base and a leading international bank with rich experience and diversified products.

I strongly value HSBC's close relationship with BIDV and firmly believe we have built a solid foundation to support the continued growth of both entities in Vietnam.

PaRtneRs

july 201529

Standard Chartered Bank would like to convey to BIDV our warmest congratulations on the

bank’s 20th anniversary of transition to a fully commercial bank and your great achievements over the past 20 years that has made BIDV a leading financial institution in Vietnam.

We highly appreciate the success of BIDV’s IPO in 2011 and listing on Ho Chi Minh Stock Exchange in 2014 which paved the way for continued success in the bank’s equitisation process.

We also would like to congratulate you on the establishment of the BIDV MetLife joint venture in 2014 that will leverage the might of both MetLife and BIDV to create a strong and trusted insurance provider. The recent success of the merger with Mekong Housing Bank in May is another milestone in the bank’s history that allows the bank to expand its operations nationwide

inspired by Bidv’s vision

niRukt saPRu

General Director, Standard Chartered Bank (Vietnam) Ltd.

and achieve greater economies of scale.

We are very much inspired by BIDV’s vision to provide high quality and advanced banking - financial services to customers, bring value to its shareholders and benefits for its employees both domestically and internationally. We are very impressed with BIDV’s extending local network of 180 branches and 782 transaction offices nationwide as well as its strong footprint in Laos, Cambodia, Myanmar, Russia and the Czech Republic. We believe that BIDV will continue to expand its market coverage with the bank’s ambitious strategy.

Standard Chartered Bank is a leading international banking group with more than 90,000 employees and a 150-year history in some of the world’s most dynamic markets. Our heritage and values expressed in our brand promise, Here for good. We have been in

Vietnam for more than 110 years and truly believe in the long-term prospect of Vietnam.

Standard Chartered Bank is proud to partner with BIDV in a wide range of areas, including international payment, trade finance, structured finance, capital market and Global Markets products. The collaboration - based on a shared client-oriented approach - has led to a sustainable and mutually beneficial partnership which we greatly value. Standard Chartered Bank is honoured to have presented our Straight Through Payment Awards to BIDV in the last few years.

As the capable and trustworthy partner of BIDV in its integration into the international financial market, we are committed to enhancing our support to BIDV in improving banking services and serving the clients and customers even better.

PaRtneRs

Bidv Review30

Those recent years witness remarkable changes in Vietnam’s banking sector thanks to the

positive steps taken by Vietnamese government to overhaul the banking system and improve macroeconomic stability. The creation of the Vietnam Asset Management Company (VAMC) in 2013, aggressive banking consolidations to tackle small weak banks and stricter banking regulations have increased transparency and credibility of the banking market. However, large bad debts still remains as the most prominent problem that will continue to create pressure to the profitability and stability of Vietnamese banks.

During the NPL crisis, BIDV managed to prove its stability by low bad debt ratio, continuous growth in total assets and profit together with constantly expanding network. Those great achievements emphasize the standing of BIDV in the market as one of the Vietnamese leading banks.

Since the branch establishment of SMBC in Vietnam, BIDV has been a valued Foreign Institution (FI)

thriving as a top tier bank

masanoBu nakanisHi

Country Head of Vietnam

General Manager, Sumitomo Mitsui Banking Corporation – Hanoi Branch

customer of SMBC. Our two banks have co-operated in many sectors such as Trade Finance, Commercial Loans and Money Market. By frequent bilateral communication, our two banks are able to timely support each other, update market information and cooperate to deliver better transactional banking products to customers.

On this occasion of BIDV celebrating 20 years as a commercial bank, we would like to deliver our warmest greetings and sincere gratitude to BIDV. We strongly believe in the ability of BIDV to continuously thrive as a top tier bank and have confidence that our active collaboration will mutually benefit both banks and our customers.

PaRtneRs

july 201531

determination and commitment from Mr. Tran Bac Ha, chairman of BIDV, efforts of the management team and all staff members of the bank.

Wells Fargo has been a consistent partner along the development stages of BIDV, servicing and supporting its Head office, oversea and joint venture banks. Wells Fargo is committed to bring values to the partnership through qualified products and services to support BIDV servicing its clients. Now BIDV is among the top 3 banks holding largest market share in trade

and international payment business in Vietnam.

BIDV is the premier bank in successfully affirming its presence in Indochina region, supporting Vietnamese corporate and individual clients doing business in these countries.

Over the years, Wells Fargo has been supporting BIDV with various training programs, sharing our experiences and practices to senior management as

well as operational staffs of the bank. We are very happy to witness BIDV successfully built up well-established and professional Financial Institutions team, Treasury team, AML Compliance, international model Payment Center and Trade Processing Center.

Last but not least, we appreciated and would like to thank BIDV for the business relationship and the friendship that BIDV has been given to our Vietnam team. We wish you every success and prosperity in BIDV’s new stage of development.

close cooperation

nguyen tHe PHong

SVP, Country Manager, Wells Fargo, Vietnam and Cambodia

Wells Fargo Bank N.A. has its presence in

Vietnam since 2003, but our relationship with BIDV has started much earlier, in 1996. Looking back the 19 years, we are proud to have BIDV as our important partner in Vietnam.

Wells Fargo and BIDV have set up a strong foundation for the co-operation since the early stage. Our two banks have been closely co-operating in various areas, including international payments, international trade, trade finance, investment, foreign exchange that benefit BIDV’s customers with high service quality and extensive supports at different periods.

Over the last 17 years of relationship, we have seen BIDV growing and becoming one of the regional banks with strong foot hold in Indochina region servicing your clients with modern technology and international standard services. What brought the bank to this position is the strong will,

PaRtneRs

Bidv Review32

High systemic importance

strengthening governance and lower risk appetite at some banks, reduced incidence of new problem assets on the banks’ balance sheets and improved recovery prospects for legacy problem assets.

Moody’s also appreciated BIDV’s scale, government ownership, and important role in the banking system.

category moody's rating

Outlook (as of September 22, 2014) Stable

LT Bank Deposits – Local currency B1

LT Bank Deposits – Foreign currency B2

LT Local/Foreign currency Issuer Rating B1

Bank Financial Strength E

category s&P rating

Outlook (as of August 29, 2014) Stable

Issuer Credit rating- Long term B+

Issuer Credit rating- Short term B

Stand alone Credit Profile b+

In 2014, BIDV was rated for the fifth successive year by S&P and for the ninth consecutive year by Moody's Investors Service, confirming its commitment to financial transparency and compliance with international standards.

staBle Rating outlook By s&P

The stable rating reflects S&P assessment that the bank has a “strong” business position, an “adequate” risk position, “average” funding, and “adequate” liquidity. S&P believes that the bank has “high” systemic importance in Vietnam and assesses the Vietnam government as “highly supportive”.

BIDV's business position reflects the bank’s strong business franchise in Vietnam and its good domestic geographic reach. The bank also benefits from its status as one of the four large majority state-owned commercial banks.

BIDV's stable deposit base and access to funding from the government and international lending organizations for developmental projects underpin its funding profile.

The stable rating outlook reflects S&P’s expectation that the bank will maintain its financial profile despite challenging and volatile operating conditions in Vietnam.

moody's uPgRaded Bidv's Ratings

On September 22, 2014 Moody’s affirmed BIDV’s ratings after its recent upgrade on July 29th, 2014.

Moody’s recognized the improvement in the operating environment and the banking system in terms of liquidity, underwriting standards arising from

tHu tRang

PaRtneRs

july 201533

The strategic partnership between BIDV and EY has been established for years and has

been more concrete and strengthened through times with significant milestones and projects. Succeeding consecutive assurance projects from 2006-2012, EY has supported BIDV to enhance its management and operational capabilities. As a world-class professional service provider, it is our honor to accompany and support BIDV, one of the largest banks in Vietnam in the progress of realizing its’ vision towards 2020 of integrating into the regional banking market; particularly, to become one of top 20 banks of high quality, efficiency and reputation in Southeast Asia.

Throughout our cooperation, BIDV has been a prestigious, trustworthy partner of utmost professionalism and responsibilities, with modernized and cutting - edge view in management and a strong business culture. We recognized BIDV as a demanding yet supportive client, and appreciated the comprehensive discipline, effectiveness and cooperation of the Bank during

Bidv–a trustworthy partner

duong nguyen

Partner/ FSO Leader - Vietnam, Ernst & Young

Managing Partner - Laos

our auditing and consultancy projects, e.g. cost allocation & revenue assignment, policy development, MPA system implementation and credit risk management framework.

We have seen great efforts, dedication and the pro-activeness of BIDV’s teams in timely releasing financial statements with highest accuracy standards and successfully completing assigned projects. The Bank’s values of professionalism, effectiveness and integrity have created a dynamic working environment, forming a business culture that drives the Bank toward the achievement of its ultimate goals and vision.

At the higher level, the Bank’s management has always strived towards improvement and progress, among which is to enhance operational effectiveness and management capacities. They paid high attention in EY’s key findings and recommendations in management letter to address drawbacks in real practice implementation, loopholes in operational procedures and processes.

As the result, BIDV has become a leader in the financial market with high quality and innovative products; along with flexible processes yet ensuring securities, risk management and soundness. Such mindset and attitude are a critical factor for the success of the Bank; and on another hand, they present a great source of encouragement for EY to continue our exceptional client services and bring our clients with better solutions that benefit their entire organization.

EY would like to express our appreciation for BIDV's trust in our services and their years of cooperating with EY Vietnam; and would like to congratulate the Bank on its recent achievements. With a global network in more than 150 countries around the world and with a commitment to building a better working world, EY hopes to accompany BIDV on its development path of integrating into the regional banking market and contribute to the Bank’s future success and sustainable growth.

PaRtneRs

Bidv Review34

Bidv metlife: Pursue more from life

PHan anH

BIDV MetLife Life Insurance Limited Liability Company (BIDV MetLife) is a joint venture between BIDV, BIDV Insurance Corporation (BIC) and the leading life insurance firm in the US, MetLife Limited, marking BIDV’s business expansion with U.S. partners.

According to the Insurance Supervisory Department (under the Ministry of Finance), total

premium sales in the insurance market in the first four months of 2015 was estimated at USD880 million, up 20.8 percent over the same period of 2014. Of this figure, non-life insurance premiums totalled USD460 million, up 16.5 percent against 2014 and life insurance premiums reached USD420 million, an increase of 26 percent compared to 2014.

Scope for insurance development remains large. According to Christopher Townsend, president of MetLife Asia, only about 6 percent of Vietnam’s population is covered by life insurance contracts. The ratio of life insurance premiums to Vietnam's GDP is much lower than the average ratio of the world and the wider region. Besides, Vietnam's stock market has become stable, laying the foundation for the development of investment-linked insurance products, such as unit-linked products and pension insurance

products. These are breakthrough products that help maintain a stable growth of the life insurance sector.

According to the Ernst & Young’s report, The shifting insurance landscape in rapid-growth markets, the growth in fee income and premiums made Vietnam the second most attractive market for foreign insurers.

In Vietnam, besides the more established insurers, large financial-banking institutions such as BIDV, Vietcombank, Vietinbank, SCB and MBBank, have made moves to target this market. Many foreign life insurers with representative offices in Vietnam are actively looking to set up their companies here. These include Shin Kong Life, Nashan Life, Samsung Life and Sumitomo Life.

emeRging tRend

The market is now witnessing increasing cooperation between banks and insurers as they join forces to tap the market. For example, ANZ

PaRtneRs

july 201535

partnered with Manulife Bank and AIA; SCB with Generali Vietnam; Techcombank with Manulife and Generali Vietnam; and Maritime Bank with Bao Viet and PTI. Besides, many banks such as Citibank, Standard Chartered and Techcombank have become agents of Prudential Vietnam.

In countries such as Italy, Germany and France, bancassurance account for 30-40 percent of total premium sales. Therefore, the cooperation between BIDV and MetLife to form a joint venture life insurance product base is set to gain market share.

Mr. Christopher Townsend, president, MetLife Asia said: “Vietnam is a key strategic focus for MetLife and the joint venture marks the beginning of a journey together with our partner BIDV towards our goal of becoming a top-tier life insurer in the country. BIDV MetLife’s Term Life, Critical Illness and Personal Accident products will be available to Vietnamese consumers initially through 90 BIDV transaction points in

Hanoi, with more BIDV branches being incorporated in the future. We look forward to bringing more products, technology and capabilities to Vietnam to help consumers to add more value to their lives.”

Mr. Phan Duc Tu, CEO of BIDV, affirmed: “BIDV’s strong commitments to customers and continuous innovations in our retail banking system in association with MetLife's core values create a synergy that brings benefits to customers in Vietnam. Partnering with MetLife will help us develop our strength as a leading financial institution in Vietnam and access to advanced products and world leading risk experts of MetLife.”

Finance Minister of Vietnam, Mr. Dinh Tien Dung, said: “MetLife will contribute to the diversification of investment options for the people, increase flexibility, competition, and promote the development of the life insurance sector of Vietnam in particular and Vietnam-U.S. relations in general”.

biDv metlife at a glance July 21, 2014: BIDV MetLife granted Life Insurance License to Operate in Vietnam november 21, 2014: 1st sale of Term Life with Critical Illness and Personal Accident Rider march 9, 2015: EduCare Endowment product launched april 2, 2015: Launched sales 14 branches in HCMC & expanded to 24 branches in Hanoi april 23, 2015: 10,000th customer policy issued June 30, 2015: Crossed over 1 million USD in issued policy premium 16,000 customers

inteRnational investment

Bidv Review36

2015, the company’s total assets had reached CZK185 million, total outstanding loans had increased to CZK166 million and the accumulated profit after tax since establishment had reached CZK12.7 million.

One year after IDCE commenced operation, BIDV’s representative office was officially established in November 2012. This office has played an important part in connecting BIDV with the Czech Republic. The office has established cooperation with banks, financial institutions, local authorities

a czech foothold

anH tuan

BIDV’s presence in the European Union has been bolstered by the establishment of the International Development Company of Europe in the Czech Republic.

and Vietnam’s representative agencies in the Czech Republic. It has also worked to understand investment and trade opportunities between the two countries and provide consultancy and credit to Vietnamese enterprises.

Besides, the representative office has actively coordinated with IDCE to establish remittance channels from the Czech Republic to Vietnam and also run media programs to introduce the products of BIDV/IDCE to the Vietnamese community in the Czech Republic.

During a visit by the President of Vietnam Truong Tan Sang to the Czech Republic in May, 2015, BIDV worked with the Czech Confederation of Industry and Transport, CEB Bank and Export-Import Bank of Slovakia (Eximbanka) to hold a forum on economic and tourism cooperation. At the forum, four memorandums of understanding were signed between Vietnam businesses and the Czech partners. BIDV also signed an agreement with Eximbanka to extend ties between the two banks.

In the context of the Politburo’s Resolution 36 on overseas Vietnamese, BIDV coordinated

with related agencies to establish the International Development Company of Europe (IDCE) with charter capital of CZK170 million (~USD8.1 million) in Prague, the capital of the Czech Republic.

This is the first financial presence of BIDV in the Czech Republic. IDCE provides finance and banking services to many overseas Vietnamese who are working and studying in this European nation.

At the end of May,

Vltava River, Prague, the Czech Republic

BIDV representative office in Czech Republic


july 201537

In accordance with Vietnamese and Russian Government policies on enhancing the comprehensive strategic partnership between the two countries, BIDV has strengthened its cooperation with Russian financial institutions, both financing projects and boosting trade finance operations.

BIDV has established correspondent relationships with 31 Russian commercial banks, whilst maintaining and promoting cooperation with large banks to support Vietnamese enterprises to export to the country. These include IBEC, IIB, Raiffeisen Bank International (Austria), UniCredit (Italy), ING (Netherlands) and Societe Generale (France).

In 2014 BIDV’s import and export payment to Russia totaled USD142 million, an increase of 26 percent year-on-year. In the first quarter of this year, this figure reached USD24 million.

At the end of 2014, a Russian-based work group of BIDV was established, aimed at promoting investment and trade between Vietnam and Russia. The work group will represent the bank and carry out investment and trade promotion, helping Vietnamese businesses promote exports to and investment in Russia. The Vietnamese ambassador to Russia, Nguyen Thanh Son, stressed the importance of this group in the context of growing economic and trade ties between Vietnam and Russia.

Russian relations

an nHien

Russia’s VTB bank is BIDV’s main Russian partner. The bank contributed capital to establish the Vietnam-Russia Joint Venture Bank (VRB) in 2006, as well as financed enterprise projects of both countries. It also provided funds to establish and implement payment channels using local currencies of the two countries. Moreover, the bank supported VRB to restructure in order to serve the two countries’ key projects most effectively.

In order to promote two-way trade, BIDV has collaborated with Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, and a number of enterprise associations to successfully organise seminars and forums to promote economic cooperation between Vietnam and Russia. Authorities in Ho Chi Minh City and Moscow Province have negotiated and signed comprehensive cooperation agreements between the two cities. BIDV also worked directly with the Governor of Moscow Province and the relevant ministries and agencies on plans to build a light industrial zone in

Moscow Province, expected to begin in Q3/2015.

In a further move to boost investment and trade in Russia, the bank has financed the Hanoi-Moscow Trade Center with a total loan of USD142.5 million. The bank is also granting an additional loan of USD28.5 million to this project and will issue a short-term preferential credit package worth USD137.5 million to Vietnamese enterprises exporting goods to Russia.


Bidv Review38

Having begun with the establishment of Lao Viet Joint Venture Bank (LaoVietBank) 15 years ago, a strong economic relationship exists between Vietnam and Laos, with BIDV’s other commercial entities further boosting ties

In line with the Vietnamese and Laos Governments’ cooperation agreement on culture, science

and technology, and with the aim of fostering the commercial relationship between Vietnam and Laos, BIDV and Banque Pour Le Commerce Exterieur Lao (BCEL) established Lao Viet Joint Venture Bank (LaoVietBank) in 1999.

Following 17 years of operation, LaoVietBank has established itself as the leading bank in Laos in terms of charter capital and it now ranks third out of 32 in terms of total outstanding loans. LaoVietBank also prides itself on leading the way in modern IT systems for banking in Laos.

sustainable value accretion in laos

viet dung

The bank was recognised by Asian Banking & Finance Magazine in 2014 as the principal bank of modern IT application and effective operation in Laos.

By the end of June, the charter capital of LaoVietBank had risen to approximately USD100 million, making it the largest bank in Laos in these terms. At the same time, total assets of the bank reached nearly USD799 million; total deposits grew to USD667 million; and total outstanding loans stood at USD628 million. The bank’s network continues to expand, with the opening of eight branches and transaction offices in key economic areas in Laos.

To promote its commercial activities in Laos, BIDV Insurance Corporation established Lao Viet Joint Venture Insurance Company (LVI) in 2008, with a capital contribution of 65 percent. LVI saw steady profits during its second year of operation. LVI now ranks second in terms of insurance premium revenue in Laos.

By the end of June 2015, total assets of LVI reached USD40 million; owner’s equity grew to USD5.5 million, total insurance premium revenue amounted to USD6.3 million; pre-tax profit recorded USD1.15 million. The company’s accumulated income since its establishment reached USD3.4 million.

Since becoming chairman of Association of Vietnamese Investors in Laos (AVIL) in September 2011, BIDV has connected with Vietnamese enterprises investing in the country. The association has served to enhance the position, positive image and prestige of Vietnamese enterprises operating in Laos, as well as foster the economic relationship between the two countries.

Furthermore, the association has also encouraged enterprises to contribute to Laos’ social security, thus contributing to the country’s hunger elimination and poverty reduction programs, whilst strengthening the role and reputation of the Vietnam business community in Laos.


july 201539

After five successful years of operation, BIDV’s commercial entities in Cambodia have reported positive results, significantly strengthening the bank’s position in this emerging market

Adhering to the government’s desire to establish commercial entities in the financial and insurance markets in Cambodia, BIDV has established relations with relevant companies in these fields. These include BIDV’s Cambodian Investment & Development Company (IDCC); the Bank for Investment and Development of Cambodia Plc (BIDC); Cambodia-Vietnam Insurance Plc (CVI); Cambodia–Vietnam Securities Plc (CVS); as well as BIDV’s representative office in the country.

BIDV’s Cambodian Investment & Development Company (IDCC) is the primary company financially supporting the establishment of BIDV’s units in finance, banking, insurance and other key sectors of the Cambodian economy. BIDC has seen growth in both scale and business effectiveness. With a charter capital of USD70 million, BIDC ranked sixth amongst all banks in Cambodia in terms of total assets and total outstanding loans.

The bank’s total assets at the end of June stood at USD550 million, with deposits from economic organisations and local residents reaching USD215

million; total outstanding loans of USD480 million; and accumulated pre-tax profit since its establishment hitting USD35 million.

BIDC was also selected by the Securities and Exchange Commission of Cambodia (SECC) as one of the three payment banks for the Cambodia stock market. Headquartered in the capital city Phnom Penh, BIDC has seven branches across important economic locations in Cambodia.

BIDV/BIDC played important roles in arranging and providing credit directly to key projects of Vietnamese enterprises in Cambodia, with total capital of USD300 million. The two banks have utilised the international bank transfer system Inpay to increase

mission accomplished in cambodia

the efficiency of transaction payments between Vietnam and Cambodia. The value transferred through BIDC-Inpay payment system from BIDC increased to USD120 million in 2014.

With charter capital standing at USD7 million, Cambodia-Vietnam Insurance Plc (CVI) has achieved positive business results in its five years of operation and confirmed its position in the Cambodian market. CVI ranked fifth amongst insurance companies in Cambodia and first in terms of air transport insurance, with total premium revenue of USD4.6 million in 2014. Furthermore, CVI accounted for 8 percent of total premiums in Cambodia’s insurance market. The company’s accumulated pre-tax profit since its establishment has reached USD1.5 million.

QuynH cHi


Bidv Review40

with local insurers and Vietnamese investors trading with Myanmar.

In October 2014, BIC applied

for a license for establishing a representative office in Myanmar and it was approved in principle. In June 23, 2015, BIC officially opened its

footprint in myanmar

anH duc

After five years in Myanmar, BIDV is upping its presence in the nation’s finance, banking and insurance markets, with the opening of BIDV Insurance Corporation’s first representative office and increasing cooperation with Global Treasure Bank.

Bic’s RePResentative in myanmaR

In 2012, BIDV directed BIDV Insurance Corporation (BIC) to implement insurance schemes and establish partnerships in non-life reinsurance in Myanmar’s market. In 2014, a team of insurance market experts from BIC studied Myanmar’s market and found opportunities for partnerships

HAGL Myanmar Center, Yangon, Myanmar


july 201541

representative office in this potential country. The successful opening of BIC’s representative office in Myanmar was attributed to the efforts of both BIDV and BIC.

Previously, in April 2010, BIDV also established its representative office in Myanmar with an eye to studying the business environment and banking market in Myanmar. This would allow BIDV to seek investment opportunities, establish relationships with local financial institutions, and look forward to opening a bank branch in Myanmar once permitted by local law.

BIDV also acts as the chair of the Association of Vietnamese Investors in Myanmar (AVIM) (established in March 2010). The association aims at helping shape, promote and support Vietnamese investors in Myanmar.

Vietnam Prime Minister Nguyen Tan

Dung lauded the efforts of AVIM/BIDV in promoting the economic, trade and investment relations in Myanmar. He said that there was high potential for business cooperation between two countries, especially in the context that the two countries have been promoting economic reform and the ASEAN economic community is to be established by the end of this year.

Banking PRomotion

To build a sustainable partnership in Myanmar, BIDV has proactively established channels to communicate regularly with its financial institutions. Through the BIDV representative office in Myanmar, BIDV quickly established relationships and boosted cooperation with the primary banks in Myanmar in key areas such as payment, staff training and current banking methods.

BIDV has established connections with

Global Treasure Bank, one of the five largest private banks in Myanmar, to reach a mutually beneficial agreement. Under the agreement, the two parties will cooperate on the exchange of information, the provision of banking services and products, customer marketing, and on financing in the areas of plantation and livestock, aquaculture, professional support, and information technology. BIDV will share its resources and support Global Treasure Bank in implementing modern banking risk management, IT systems, operational processes and the development of modern banking products and services.

In addition, BIDV is actively preparing for the establishment of a branch in Myanmar as early as 2015 with officers already sent to Myanmar to work, get experience prepare customer base, infrastructure, and IT systems to ensure the new branch will operate stably and efficiently.


Bidv Review42

In the first six months of 2015 there have been many highlights of Vietnam-Laos economic cooperation with the Association of Vietnamese Investors in Laos (AVIL) contributing to and fostering the close partnership between the neighbouring nations

According to the Ministry of Planning and Investment of Vietnam, Vietnam has 261

licensed projects in Laos, with total FDI capital of USD5.22 billion. In the first half of 2015, there were eight newly-licensed projects with FDI capital of USD95.2 million. Vietnam ranks second among the top investors in Laos and Laos is the country that Vietnamese enterprises invest in most.

To date, the total accumulated disbursed capital of Vietnamese

enterprises in Laos is USD1.5 billion, focused mainly on energy, services, infrastructure, agro-forestry and mining. Vietnam investment contributed USD200 million to Laos state budget revenue in 2014. In 2015, this figure is expected to reach USD240-260 million and help to generate jobs for more than 30,000 people.

The bilateral import-export turnover of the two countries hit USD1.3 billion in 2014 , increasing 17.7 percent compared to 2013. In the first five months of this year, this figure reached USD571.6 million, of which Vietnam’s exports to Laos amounted to USD263.4 million (up 32.2 percent year-on-year) and imports from Laos hit USD308.2 million (down 30.7 percent year-on-year).

In 2014, the number of Vietnamese tourists to Laos reached 1.1 million (up 21.7 percent year-on-year). In the first

avil: active cooperation

tRinH viet

five months this year, this figure hit 415,000.

Besides investment and trade, Vietnam’s contribution to social security in Laos also grew and the total now stands at approximately USD65 million, mainly funding medicine and education. Specifically, HAGL provided about USD40 million to construct welfare projects in Attapeu Province while BIDV and LaoVietBank invested USD11.5 million.

avil’s linking Role

The positive cooperation between


july 201543

Vietnam and Laos has helped foster the active role of BIDV in the nation. Established to perform tasks as directed by the Prime Minister, AVIL has fulfilled its role of becoming an association connecting Vietnamese investors and supporting Vietnamese enterprises to invest in Laos.

The association helps solve the problem of unfair competition between Vietnamese enterprises in the same investment field. It also protects the legal rights of Vietnamese enterprises in Laos and produces timely reports for the two countries’ governments and related ministries.

In 2015, AVIL expects to support Vietnam’s FDI to Laos to reach USD5.4 billion, two-way import-export turnover is set to increase to USD2 billion (up 40 percent) and the number of Vietnam-Laos tourists is expected to reach 1.25 million (up 3.5 percent year-on-year).

Important meetings held thus far include a meeting between Vietnamese enterprises in Laos and the Vietnam Minister of Public Security General Tran Dai Quang. Moreover, the Lao Deputy Prime Minister and politburo member of the Lao People's Revolutionary Party Thongloun Sisoulith paid a working visit to BIDV/AVIL in Hanoi.

To increase Vietnamese enterprises’ investment effectiveness, AVIL suggests the Laos Government and related ministries provide development and investment orientation to Vietnamese enterprises as well as a

list of projects currently calling for investment. In addition, it is necessary to have a flexible mechanism for alleviating the difficulties for investors, especially land-related and foreign labour issues.


Bidv Review44

In the first half of 2015, five new Vietnamese enterprise projects were granted an investment license

in Cambodia, with a total registered FDI of USD44.3 million, increasing the number of Vietnamese investment projects in the country to 172. The total Vietnamese FDI in Cambodia reached over USD3,613 million and Vietnam remains amongst the top five foreign investors here.

Currently there are 50 Vietnamese investment projects operating in Cambodia. These include projects in key areas such as finance and banking, telecommunications, mining and agriculture (sugar production, fertilisers and rubber). Leading Vietnamese enterprises in Cambodia include Hoang Anh Gia Lai Group (HAGL), Vietnam Rubber Group, BIDV, Nam Sao Group, Vietnam Airlines Corporation (VNA) and Viettel Group.

According to Vietnam Customs, in

avic: Boosting cambodia–vietnam cooperation

Quang dieu

Economic cooperation between Vietnam and Cambodia has continued to grow, enhancing the socio-economic development and bilateral relationships between the two nations.

the first five months of this year the total import-export turnover between Vietnam and Cambodia was USD1,235 million, a decrease of 4.2 percent year-on-year.

The estimated registered funding for social security from Vietnamese enterprises reached over USD35 million, primarily in health care and education. Active donors include Viettel Group (USD20 million), BIDV (USD6 million), HAGL (USD3 million) and Vietnam Rubber Group (USD3 million).

avic - timely suPPoRt

Association of Vietnamese Investors in Cambodia (AVIC) is active in promoting and supporting cooperation between Vietnam and Cambodia. The association follows the progress of Vietnam’s investment projects in Cambodia, collecting and updating information about any problems which arise. AVIC then reports to the relevant countries’


july 201545

government and related ministries and agencies to address any difficulties.

AVIC also holds meetings and bilateral talks between government leaders and representatives from both countries and Vietnamese investors in Cambodia. In these meetings, Vietnamese enterprises can take direction from the two countries’ leaders.

The association also actively cooperates with related parties to propose solutions to regulators to protect the legal rights and benefits of Vietnamese investors in Cambodia. In addition, Vietnamese enterprises can receive support from AVIC in terms of using market surveys and accessing potential investment. AVIC will advise and support its members to complete the procedure for permission to invest in Cambodia as well as support them in credit application.

Over the past five years, AVIC has held

four periodical cooperation conferences with ministries and agencies, with the aim of continuing to enhance the economic relationship between the two countries. These events have enabled enterprises from both countries to find and secure investment and cooperation opportunities through providing up to date information regarding Cambodia’s policy changes and offering solutions to problems and barriers.

towaRds BetteR Results

Based on the economic cooperation plans of the two governments, registered FDI from Vietnam to Cambodia is targeted to reach USD4-4.2 billion. Bilateral import-export turnover is expected to increase by 50 percent to USD5 billion in 2015, along with an expected growth in tourism of 30 percent, equating to 1.6 million visitors.

To achieve these targets, AVIC recommends that the governments of

both countries direct related ministries and agencies in developing a long-term bilateral strategy. The strategy should specify the priority investment areas as well as list Cambodia’s key economic projects that would benefit from Vietnamese involvement.

Furthermore, AVIC recommends that governments consider coordinating with the Laos Government to design a legal framework for future economic cooperation between Laos, Cambodia and Vietnam. Such cooperation could enable the three economies to integrate deeper in the ASEAN market.

Another recommendation from AVIC is for Cambodia Central Bank to direct Cambodian commercial banks to coordinate with Vietnamese banks to co-fund large projects with high economic outcomes and social significance. This is hoped to create favourable conditions for Vietnamese commercial banks to operate in Cambodia.


Bidv Review46

Economic cooperation between Vietnam and Myanmar has enabled significant achievements through a number of investment projects in which the Association of Vietnamese Investors in Myanmar (AVIM), under BIDV’s leadership, has played a major role.

According to AVIM, there are 73 Vietnamese enterprises investing in Myanmar, of which 65 operate in the services sector, four in industry, one in commerce, one in tourism, one in hospitality and one in banking services. Eight projects have been

granted investment licenses, with total FDI of USD688.5 million. This figure accounts for 1.27 percent of the total FDI in Myanmar. Since 2009, the number of projects has increased four-fold and the project value increased 30-fold.

In the first half of this year, an additional six enterprises opened branches in Myanmar, with registered capital of USD10.2 million.

Major Vietnamese FDI projects in Myanmar include Hoang Anh Gia Lai Myanmar Center of Hoang Anh Gia Lai Group; Viettel Group’s international telecoms infrastructure project; and Vietnam Airlines direct flight routes

from Hanoi and Ho Chi Minh City to Yangon (8 flights per week). Further projects are those of FPT Group, which provides electronic products and IT training in management software; and the opening of BIDV’s representative office, which aims to support the establishment of a BIDV

avim: Pinoneering in the golden land

nguyen Quang

branch in Myanmar. Moreover, BIDV Myanmar Finance Company Limited (BMF) and the Representative Office of BIDV Insurance Corporation (BIC) were both inaugurated in June, 2015.

These initial investments will provide the foundation for long-term effective economic collaboration between the two countries.

In trade and commerce, the first five months of this year saw total two-way export and import turnover between the two countries reach USD183.6 million, a decrease of 20.1 percent year-on-year. Meanwhile, Vietnam’s exports to Myanmar hit USD154.6 million, an increase of 15.7 percent year-on-year. Furthermore, the number of visitors to Myanmar from Vietnam increased to 7,900, a 23 percent increase year-on-year.

avim – PRoviding comPReHensive suPPoRt

Vietnam's PM Nguyen Tan Dung and Myanmar's Vice President Sai Mauk Kham at the ribbon-cutting ceremony on handover of phase 1 of HAGL Myanmar Center in Yangon, Myanmar, June 2015


july 201547

The Prime Minister of Vietnam stated that Vietnamese enterprises investing in Myanmar should form a unified organisation to enhance investment between the two countries. In March, 2010 the Association of Vietnamese Investors in Myanmar (AVIM) was established comprising more than 40 members, and it has since grown to 80 active members, including PetroVietnam (PVN), Vietnam Airlines, Vietnam Rubber Group and Song Da Corporation.

Since establishment, AVIM has arranged for 200 enterprises to undertake more than 5,000 entrepreneur visits to conduct research on investment in Myanmar. The association also coordinated with ministries and relevant agencies to organise events, in particular visits from high-ranking officials.

The association has organised three Vietnam–Myanmar investment

promotion conferences and entrepreneur forums, with the participation of nearly 5,000 Vietnamese and Myanmar-based enterprises. Furthermore. 11 seminars and conferences to promote trade, investment, tourism and cooperation in the fields of agriculture, IT and engineering have been held. These events attracted more than 1,000 enterprises from the two countries. In addition, the association held the annual commodity fair of Myanmar in Vietnam and that of Vietnam in Myanmar.

In 2015, it is expected that Vietnam investment in Myanmar will reach between USD800 million and USD1 billion, the disbursed capital will reach USD400-500 million and two-way export and import turnover will hit USD500 million. Tourist numbers from Vietnam to Myanmar are targeted to increase to 35,000.

To achieve these projected figures, the

association suggests plans that include an investment focus on the agreed areas of both countries in the eighth meeting of the Vietnam-Myanmar Joint Committee. These areas are trade and investment; finance and banking; industry; agriculture, fisheries and forestry; transportation and post and telecommunication.

The association also selects groups and corporations with financial strength, proactive strategies and feasible projects to invest in key investment areas in Myanmar. These enterprises are expected to contribute to the country’s socio-economic development and support other Vietnamese enterprises in Myanmar.

AVIM recommends that the Myanmar Government should continue supporting and creating favourable conditions for BIDV to establish bank branches in Myanmar in order to enhance bilateral trade.

Vietnam's PM Nguyen Tan Dung and Myanmar's Vice President Sai Mauk Kham at the ribbon-cutting ceremony on handover of phase 1 of HAGL Myanmar Center in Yangon, Myanmar, June 2015

Bidv HigHligHts

Bidv Review48

Thus far this year, BIDV has achieved strong business growth, laying a solid foundation for the fulfillment of the 2015 target and the 2013-2015 restructuring scheme.

outstanding Results

BIDV maintained stable growth and led the market in net service income. Profit before tax in the first half of 2015 stood at VND3,016 billion ( USD139 million), an increase of 25 percent year-on-year (yoy).

BIDV's market share in the sector increased sharply: credit increased to 12.7 percent, up 1.1 percent against 2014; and deposits reached 11.59 percent, up 1.28 percent compared to 2014. Given these outstanding results, BID and BIC stocks grew 110 percent and 98 percent YTD respectively; for context, the average level of the market was 14-16 percent.

BIDV was among top market leaders with total assets of VND730 trillion (USD33.6 billion), up 25 percent yoy and 14 percent YTD. Outstanding loans stood at nearly VND535 trillion (USD24.7 billion), up 31 percent yoy and 9.1 percent YTD, far higher than the average level of 6 percent of the

Bidv outperforms first half

banking sector as a whole.

Credit was channeled to priority areas such as agriculture and rural development, exports, supporting industries, small and medium-sized enterprises, hi-tech enterprises and retail in accordance with the direction of the government and central bank.

Credit quality was well controlled with a NPL ratio of approximately 2 percent. Deposits grew and met the capital demand: deposits from market 1 reached over VND574 trillion (USD26.5 billion), up 33 percent yoy and 11.2

percent YTD, higher than the average rate of 4.4 percent of the banking sector. Retail banking continued to grow, evidenced by the award of Best Retail Bank in Vietnam in 2015 from the Asian Banker Magazine.

cHaRteR caPital incRease

BIDV’s charter capital after the merger reached VND31,481 billion (USD1.5 bin), a sharp increase from VND28,112 billion (USD1.3 billion) at the start of the year, with an increase of VND3,369 billion (USD155 million) coming after the MHB merger.

Hai Hoa

Bidv HigHligHts

july 201549

In the time to come, BIDV will complete the procedures for an additional increase of VND2,692 billion (USD124 million) under the plan passed at the bank’s AGM and approved by the central bank. BIDV will continue to increase capital by seeking strategic shareholders/investors, issuing bonds to increase tier 2 capital and issuing additional shares to existing shareholders.

BIDV continues innovative internal restructuring and expects to complete all restructuring targets by the end of 2015. BIDV’s two subsidiaries, namely BIDV Insurance Corporation (BIC), and BIDV Securities Company (BSC) have also been seeking strategic investors. BIC officially signed an agreement with Fairfax (Canada) - the global insurance and reinsurance company. BIDV also made divestment from non-core business following the government’s guidelines. From 2013 to the end of Q2/2015 BIDV divested more than

VND700 billion (USD32.3 min) and is on target to complete the procedures for divestment from VID Public Bank to improve operational efficiency and increase charter capital.

Business exPansion

In the first six months of 2015, BIDV took over 44 branches and 187 transaction offices from Mekong Housing Bank (MHB) after the merger, and established nine new branches and 11 transaction offices, bringing BIDV’s total network to over 1,000 transaction points.

In overseas markets, BIDV established BIDV Myanmar Finance Co., Ltd (BMF) and signed cooperation agreements with Japanese banks. BIDV also signed a MoU with Russian Foreign Trade Bank (VTB) following the joint statement between the two governments on enhancing the role and potential of Vietnam-Russia

Joint Venture Bank (VRB). Following the direction of the governments of Vietnam and Russia, BIDV and VTB stepped up bilateral negotiations on local currency payment to strongly promote trade relations between the two countries and remove bottlenecks in payments.

Besides these positive business results, BIDV has focused on management capacity enhancement, administrative and institutional reforms towards international standards and practices and also increasing the use of IT applications in all areas of operation and governance.

Given the positive macroeconomic outlook, it is expected that by the end of Q3, BIDV will fulfill 75 percent of PBT target set for 2015 and fully achieve the business targets set by the 2015 General Shareholders' Meeting, successfully completing the 2013-2015 Restructuring Scheme.

Bidv HigHligHts

Bidv Review50

Previously a tourist backwater, Quang Binh is now hot property with highly enticing investment policies and new found fame as a Mecca for cave tourism.

Potential foR touRism

Quang Binh is regarded by many as one of the provinces with the best business and investment environments in Vietnam. The region is now an alluring destination for local and foreign investors due in large part to its remarkable natural beauty. Alongside the UNESCO-listed Phong Nha-Ke Bang National Park with the incredible, record-breaking Son Doong cave, Quang Binh also boasts magnificent beaches such as Da Nhay and Bao Ninh.

Quang Binh is well situated on the east-west corridor with excellent air, sea, river and road links. The opportunities

Red carpet for investors

nguyen tRan

for growth are numerous in sectors such as tourism, forestry, mining, building materials, electricity, economic zones (namely Hon La economic zone and the Cha Lo border gate economic zone) and industrial parks.

Nguyen Huu Hoai, Chairman of Quang Binh province, reports that there are now 320 licensed projects with a total registered capital of over USD5 billion. Moreover, 11 FDI projects have total registered capital of USD107 million and 158 projects have been implemented with total registered capital of nearly USD4 billion.

A number of major investors are exploring large-scale tourism projects. These include Sungroup, which is eyeing a project in the Phong Nha – Ke Bang National Park as well as the Bao Ninh – Hai Ninh golf course project. Another investor, An Viet Infrastructure Investment and Development Joint Stock Company, has a major resort and golf course in the pipeline. In addition, Korean and Indian firms are studying a number of coastal areas for potential opportunities.

inviting investoRs

At a meeting with potential investors co-held by Quang Binh People’s Committee and the Joint Stock Commercial Bank for Investment

In 2014, Quang Binh received nearly 2.8 million visits, up 99.8 percent on 2013. International visits reached around 44,000, up 26.5 percent compared to 2013. Total revenue from tourism hit nearly USD127 million, the highest figure to date and 130 percent higher than 2014.

Son Doong cave, Quang Binh province, Vietnam

Bidv HigHligHts

july 201551

and Development of Vietnam (BIDV) on 30 June 2015 in Hanoi, leaders of Quang Binh province announced special mechanisms and policies for businesses and investors.

Accordingly, the province will roll-out a highly enticing incentive framework. This will include tax and land incentives; ground clearance assistance; the building of infrastructure for industrial parks and economic zones; labour training subsidies, and more.

Mr. Tran Bac Ha, Chairman of BIDV, said that the cooperation model between the state, investors, and banks is of major importance. The model was initiated by BIDV in 2005

and it has been used to facilitate promotion programs in the Central Highlands, Northwest Highlands, the South Central Coast region and other regions. He added that these programs have contributed to the socio-economic development of the regions and the country as a whole.

The meeting was held ahead of the upcoming Quang Binh tourism conference which is scheduled in early August 2015. The conference will focus on tourism investment and promotion in Quang Binh. The province is set to give priority to 35 key projects in the area of trade and tourism infrastructure, with total expected investment of up to nearly USD1.1 billion.

As an experienced consultant to investment promotion programs in regions across the country, BIDV will act as the co-organiser and financial sponsor of the conference. The bank will also provide funds to feasible and promising projects.

Son Doong Cave – the world’s largest - has been heavily featured across many media, including a live broadcast on Good Morning America which then had 60 million views on the internet. As a result, it is predicted that the number of visitors to Quang Binh is set to rise sharply.

Son Doong cave, Quang Binh province, Vietnam

Bidv HigHligHts

Bidv Review52

Decree 67 forms the most comprehensive policy for the development of the fisheries

sector in Vietnam. The Decree aims to provide fishermen with a means of financial security through securing loans to invest in the upgrading of their ships. However, in the ten months since it was first issued, the expected developments have not yet been seen. In June 2015, 26 out of 28 cities and provinces produced approved lists of shipowners eligible for the loans. Accordingly, 840 out of total of 2,284 ships (or 37 percent) were declared by the Ministry of Agriculture and Rural Development to qualify for the loan

debottlenecking decree 67

ky anH

A credit package of USD46 million is being offered to fishermen under a new government decree, marking a significant move towards supporting them to sustain viable livelihoods.

Bidv HigHligHts

july 201553

The Government’s Decree 67 issued in July 2014 prescribes investment, credit and insurance policies, tax incentives and a number of other policies for the development of fisheries. Under this decree, fishermen may borrow up to 70 percent of their ship value.

for ship upgrading and maintenance. Of these, commercial banks evaluated and approved credit for just 79 shipowners. BIDV agreed loan contracts with 45 of these shipowners.

Deputy Prime Minister Mr. Vu Van Ninh has concluded that there are significant difficulties in the implementation of the decree which need addressing. Government ministries need to provide clear guidelines on areas such as the approval of ship design, valuation and VAT refund for new and upgraded ships.

The biggest hurdle faced by fishermen attempting to secure the loans from commercial banks is that they are short of or cannot prove their existing capital, which must equal 30 percent of the loan value.

Reducing difficulties

In an attempt to efficiently execute Decree 67 and provide loans to

fishermen, BIDV made proposals and recommendations to the government, the State Bank and concerned ministries.

To accelerate the implementation of Decree 67 effectively, BIDV launched a USD46-million credit package for individual customers as capital to secure loans for ship building. The package is effective from July 1, 2015 to December 31, 2016 with a maximum loan per customer of VND500 million (USD23,000), interest rate of 6 percent p.a. and a loan term of up to 36 months from the first disbursement date.

Currently the medium and long-term interest rate on loans of credit institutions in Vietnam is between 11 percent and 12 percent. At the mid-year review of the State Bank of Vietnam (SBV), the SBV governor recommended that commercial banks reduce the medium and long-term interest rate by 1 percent - 1.5 percent. A reduction of 1.5 percent

would result in interest rates of 10 percent. Therefore the 6 percent rate offered by BIDV in the credit package is comparatively low. Fishermen were approached one week prior to the launch of the credit package and it was well-received.

It is expected that the launch of the USD46-million credit package for fishermen to enable loan securement for building ships under Decree 67 will contribute to the sustainable development of the fishing industry.

Bidv HigHligHts

Bidv Review54

On March 26, 2015, after choosing PricewaterhouseCoopers (PwC) Vietnam as contractor, BIDV established GAP and Master Plan Basel II PMO (GAP&MP Basel II) with the overall objective of coordinating with the relevant units to implement the GAP&MP Basel II project. The leadership of BIDV and the Basel II PMO management group have gathered a strong team of experienced and young talented staff to work on this project.

“Given the international integration, BIDV has been strongly innovating to adapt to the increasing competitive environment. BIDV is proud to be among 10 banks* trusted by the State Bank of Vietnam to implement Basel II.

This is a challenge for the bank. I hope that the success of the implementation of Basel II will lay a solid foundation for BIDV to become a bank with a risk management system that meets international standards and practice”, said Tran Luc Lang, senior executive vice president of BIDV.

PwC’s support in the implementation of the project will contribute to solve the current difficulties and shortcomings, meeting the time requirement of the roadmap set by the State Bank of Vietnam. Also, BIDV can benefit from PwC experts’ knowledge and experience in implementing Basel II to improve risk management.

PRePaRedness

Implementing Basel II will lay a solid foundation for BIDV to become a leading bank with a risk management system that meets international standards and practice.

towards safer banking

to uyen

When cooperating with foreign investors and institutions, risk management and

financial capacity must be in-line with international standards. In light of this, on September 15, BIDV’s Basel II Project Management Unit (PMO) headed by CEO Phan Duc Tu with the participation of 85 members from various business units was established.

Bidv HigHligHts

july 201555

Under the cooperation agreement between BIDV and PwC Vietnam, PwC and its leading experts from Malaysia, Hong Kong and China will help BIDV develop the most appropriate implementation plan in the coming years to make BIDV become a bank with a strong risk management system, meeting the requirements of Basel II and the world’s best risk management practices.

Human resources can be the biggest challenge in the application of Basel II. Understanding this, BIDV has prepared human resources, infrastructure and technology for the application of Basel II. BIDV leadership has showed determination to implement concrete steps to meet the Basel II requirements.

Dinh Hong Hanh, Director, Advisory Services, PwC said: “We appreciate the strategic vision of BIDV Leadership in this key project. Implementing Basel II will significantly improve the risk management culture of the bank, and require the bank to restructure its management platform to meet the safety requirements, develop sustainable business management processes to better identify and control risk”.

It is believed that with the support of the bank’s leadership, BIDV will overcome difficulties to become one of the first banks in Vietnam to meet Basel II requirements set by the State Bank to become a safe and trusted financial institution.

(*) The 10 banks chosen by the State Bank of

Vietnam to pilot the implementation of Basel II:

BIDV, Vietcombank, Vietinbank, MB, Sacombank,

Techcombank, ACB, VPBank, VIB and Maritime

Bank.

Basel II is a set of banking regulations put forth by the Basel Committee on Bank Supervision, which regulates finance and banking internationally. Basel II requires financial institutions to maintain enough cash reserves to cover risks incurred by operations. Basel II is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision.

Bidv HigHligHts

Bidv Review56

13 years of success

For 13 years, BIDV’s Transaction Center III has been developed from a wholesale bank to an entity operating a diversified portfolio of projects, making a significant contribution to BIDV’s business on a domestic and international level.

Transaction Center III has been assigned to implement a series of three Rural Finance Projects

(RFP) with the total capital of USD548 million financed by the World Bank (WB). The Transaction Center III manages the projects’ funds and takes responsibility for disbursing the funds through participating financial institutions (PFIs) to sub-borrowers such as rural individuals, households and enterprises. The aim is to develop agriculture and rural areas in order to meet the goals of hunger elimination and poverty reduction.

To date, the RFPs’ credit has been fully disbursed. The projects’ outstanding loans at the end of 2014 stood at USD361 million. RFPs provided capital of USD2.1 billion for agriculture and rural development, of which 49 percent was concentrated in two key regions of agricultural production and poverty reduction - the Mekong River Delta and the Northern highland region.

The projects provided loans to over 1.7 million rural households and enterprises in 60/63 provinces nationwide to carry out their production and business plans, creating around 410 thousand new jobs in rural areas. The chain of three RFPs has been assessed as very successful, not only in terms of project management, institutional and implementation arrangements, but also in terms of socio-economic impacts on Vietnam’s rural areas.

Following the successful implementation of the RFPs, Transaction Center III has been assigned by the government and the World Bank (WB) to act as the wholesale bank for the lines of credit of the Sustainable Agriculture Transformation Project (VnSAT). This is a new project aiming to support implementation of the Vietnam’s Agricultural Restructuring Plan towards greater added value and sustainable

manH Hung

Bidv HigHligHts

july 201557

development. The project has the IDA financing of USD238 million and is expected to commence in the third quarter of 2015. They will continue to effectively contribute to agriculture and rural development, create employment, improve living conditions in rural areas, and help to implement the National Target Programs of Building the New Rural Areas and Sustainable Poverty Reduction.

stRong agent Banking

Acting as a focal point of BIDV’s system for the agent banking operation, Trasaction Center III has upheld its strong position to become a leading agency in serving the projects mandated by the government and ministries.

To date, Transaction Center III has served more than 200 ODA projects financed by the bilateral and unilateral donors like WB, ADB, AFD, Japan,

Transaction Center III has managed over 200 ODA projects authorised by the government, both as wholesale bank and agent bank, thereby, it has contributed positively to national socio-economoc development and poverty reduction. Transaction Center III has been honoured with many commendations including the Labour Medal of Third Class and the two Labour Medals of Second Class presented by the State President.

Germany, Russia, China, Italia, Holland, Austria, Sweden, Swiss and Israel.

At the end of 2014, outstanding loans of the projects managed by Transaction Center III reached over USD2.1 billion. Some projects that have been served by Transaction Center III include the Noi Bai – Lao Cai highway valued USD1 billion and the Mong Duong thermo-electric power plant valued USD902 million.

diveRsified oPeRations

Beside acting as a wholesale bank and providing agent banking services, Transaction Center III has also deployed commercial banking operations since July 2007. Transaction Center III has seen solid, comprehensive and sustainable growth. Commercial outstanding loans in the period of 2010-2014 saw an average growth rate of 30 percent p.a, from USD81.3 million in 2010 to

USD206 million at the end of 2014.

Since establishment, by the end of 2014, total outstanding loans of Transaction Center III had increased 22 times, from USD120 million to USD2.7 billion. Meanwhile, deposits went up by 11 times, from USD33.5 million to USD378.8 million and profit before tax grew 35 times.

Bidv HigHligHts

Bidv Review58

developing a japanese client base

vuong tHanH long

Head, BIDV Japan Desk

BIDV’s economic diplomacy has paved the way for the bank to participate more fully in the international finance market.

Diplomatic relations between Vietnam and Japan have developed consistently over

recent years, with a strong strategic partnership now existing between the two countries. Whilst ODA and FDI capital from Japan to Vietnam has opened up business opportunities, Vietnam still faces significant challenges in business cooperation which must be overcome.

BIDV has conducted market and consumer research in order to prepare for approaching and developing the potential Japanese customer segment. BIDV officially opened BIDV Japan Desk in November 2013 as an independent business unit dedicated to Japanese clients. With a team of relationship managers speaking fluent Japanese, possessing a deep understanding of Japanese business culture and capable of providing consultancy and all-in-one banking products and services, BIDV Japan Desk is an innovative unit enabling the development of cooperation with Japanese partners.

Following BIDV’s lead of becoming the primary bank serving Japanese clients in Vietnam, Japan Desk has secured its role as an independent strategic business unit. Japan Desk has achieved positive results in its two years of operation. 160 new Japanese clients for the bank branches have been secured, increasing the number of Japanese customers at BIDV from 110 to nearly 300 - a growth rate of approximately 300 percent. As well as this, Japan Desk has worked with the relevant units at the BIDV headquarters, forming connections and signing the cooperation MOU with nineteen Japanese financial institutions. Amongst these are leading Japanese banks including Sumi TRUST, Yokohama Bank, Chiba Bank and Shinkin Banks. So far, BIDV has received 08 experts seconded by Japanese banks to support the connection of BIDV with Japanese businesses.

Furthermore, BIDV Japan Desk has built good relationships with the embassies of both countries

Bidv HigHligHts

july 201559

as well as Japanese international organizations including JBIC, JICA and JETRO, associations, ministries, local authorities and industrial zone management bodies in order to expand their customer base and promote the BIDV brand. BIDV’s official Japanese website was launched in July 2015 at http://japandesk.bidv.com.vn/

Becoming comPetitive inteRnationally

FDI into Vietnam has seen steady growth in recent years. By the end of 2014, realized FDI reached USD125 billion out of a registered FDI of USD289 billion. This formed an important source of capital for total social investment, accounting for 21.7 percent of investments of the entire economy. Whilst the number of FDI’s accounted for only 3.5 percent, managed assets accounted for 21.7 percent, contributing 20 percent to the GDP, highlighting the financial strength and superior efficiency of this segment. With such potential, it is

hoped that FDI enterprises will form a large segment of the Vietnamese market and be magnets for attracting investment from leading banks. However, FDI enterprises have their own characteristics, requiring banks to have a clear understanding of these as well as their own expansion strategies.

Having made headway in the Japanese customer segment, BIDV sees the Japan Desk as the starting point for international expansion, with plans to infiltrate markets from the other countries and territories with large FDI to Vietnam such as South Korea, Singapore, Taiwan, etc.

To date, BIDV has established a commercial presence in Laos, Cambodia, Myanmar and the Czech Republic, as well as signing numerous cooperation MOUs with Japanese banks. Through its international expansion, BIDV has shown itself to be a pioneer for international economic integration. As Vietnam diversifies its international relations, BIDV can play a

pivotal role in leading and connecting local and foreign businesses through its position as chairman of the Associations of Vietnamese Investors in Laos, Cambodia, and Myanmar.

However, international market access is not without its challenges. The international cooperation of BIDV in particular and the integration and FDI attraction of Vietnam in general have created a new customer segment: customers with foreign investment capital. Fierce competition exists in the international environment, requiring BIDV to make rapid improvements to its operational capacity and workforce expertise. BIDV must prepare financial resources to develop an appropriate business model with a qualified and skilled workforce in order to become an international competitor. Whilst BIDV has a clear vision, it must acknowledge the need to take concrete and consistent action from strategy planning to execution if this vision of achieving global success is to be realised.

Bidv HigHligHts

Bidv Review60

A delegation led by Mr. Vuong Dinh Hue, Head of the Central Economic Commission - a think tank for major socio-economic policies and strategies - paid a fruitful working visit to Israel.

On June 29, the delegation headed by Mr Vuong Dinh Hue worked with Mr. Uri Ariel,

Minister of Agriculture and Rural Development of Israel at the ministry headquarters in Tel Aviv. The BIDV team learned about mechanisms and policies to incentivize and support enterprises to invest in the hi-tech agriculture sector.

The hi-technology transfer policies of Israel and the agriculture insurance

fund were also covered. On the same day, the delegation met with scientists of the Volcani Institute which works under the Israel Ministry of Agriculture and Rural Development.

On June 30, the mission met with Mr. Avi Hasson, Scientific Director of the Israel Ministry of Economy. Areas covered included the economic growth model and the establishment and operating mechanism of venture funds in Israel to support start-up businesses. The BIDV team learned about the scientific director model; the operating mechanism of venture funds; and also policies to effectively promote hi-tech agricultural research and application.

On July 1 and 2, the mission worked with a research institute at the University of Ben-Gurion and also

the Israel Export and International Cooperation Institute. A meeting was also held with Netafilm - a company which specializes in drip irrigation solutions and technologies. BIDV announced it is ready to act as a bridge to arrange funds for cooperation projects between Netafilm and Vietnamese businesses.

A number of hi-tech agricultural projects have already been financed by BIDV and this working trip was a valuable experience which will assist in the evaluation of high-tech agricultural projects and potential financing of them in future. BIDV also forged relationships with leading Israeli enterprises for agricultural solutions and technologies and paved the way for future connections between businesses of the two countries.

Bidv forges hi-tech agriculture bonds in israel

tRan nguyen

BIDV team joined a mission led by Mr. Vuong Dinh Hue, Head of Party's Central Economic Commission to Israel, June 2015

PRoducts & seRvices

july 201561

BIDV has launched the Experience More with BIDV Visa Platinum promotion applicable to new and

existing holders of BIDV Visa Platinum cards for purchases of VND1,000,000 and above.

BIDV Visa Platinum, co-branded by BIDV and VISA, is the premium card of BIDV. With an elegant black design the card offers special features and privileges in banking, insurance, entertainment and tourism. The BIDV Visa Platinum card aims to afford customers a more luxurious lifestyle. The promotion is effective from June 24, 2015 until September 21, 2015.

casHBack oR RewaRd miles

During the promotion period, BIDV Visa Platinum card-holders who make card payments* will be entitled to one of two options: Cashback of 100 percent of the first transaction value, up to VND2,000,000 (USD92); or up to 15,000 reward miles depending on your GLP class. Conditions apply.

lucky-dRaw

All BIDV Visa Platinum cardholders making a valid payment transaction

Bidv visa Platinum goes above and beyond

tue minH

of VND1,000,000 or more will receive a code to join a lucky draw. For every VND 1 million (USD46) spent, customers will receive one code, with a

maximum of ten codes per transaction.

The winner will receive a Ha Long Bay tour by seaplane and L'Azalee yacht for two worth VND19.8 million (USD912). The prize may be exchanged for 75 percent of the value in cash. Conditions apply.

* Payments must meet the following conditions:

(i) the first transaction must be made

immediately after card activation (consequent

transactions will not be considered) and (ii) the

minimum value is VND1,000,000.

lifestyle

Bidv Review62

Just 10km from downtown Danang, the Son Tra peninsula is one of the gems of Central Vietnam. It is

home to long, white sandy beaches, sweeping mountain-top vistas and dense primeval forest, making it a must-see for any visitor to the region.

Covering a total area of 4,370 hectares, Son Tra is the habitat of more than 100 species of fauna, including eight rare animals such as the red-shanked doucs. The diverse flora here totals 289 plant species, including 64 large tree species and 107 medicinal and ornamental plants.

One of the best ways to see the area is

Danang-The call of the wild

viet anH

Danang is a city on the up, with new bars, restaurants and hotels opening every month, but it was the peaceful retreat of the nearby Son Tra Peninsula that drew Viet Anh for an escape from Hanoi.

by motorbike. We hired some wheels and headed off on a loop of around 40 kilometers, the highlight of which is a 16km stretch cresting the top of the Son Tra Mountain which crowns the peninsula.

Tourists can jump off their bikes to explore the forest terrain and view the many plants and animals in Son Tra National Conservation Park. The other big attraction on the peninsula is Linh Ung Bai But Pagoda, which was completed in July 2010.

Those who do not want to venture into the forest can enjoy the extensive array of beaches that ring Son Tra, including

InterContinental Danang Sun Peninsula Resort, Danang, Vietnam

lifestyle

july 201563

Figures from the Danang Department of Culture, Sports and Tourism reveal that in the first six months this year, there were over 2 million visits to Danang - an increase of 25 percent over 2014. Foreign visits hit 600,000 (up 33 percent on 2014), while domestic visits reached 1.6 million (up 22 percent on 2014). The number of accommodation options climbed to 478, up 68 on last year. Meanwhile, the number of rooms rose by 3,400 to 17,600.

Bai Bac, Bai Nam and Bai But; both are heaven for beach lovers and also offer great opportunities for swimming.

Fishing off these beaches is also highly popular and it is also possible to delve into the extraordinary underwater world of coral reefs. The sea here is home to 191 coral species as well as three species of sea-grass, 72 species of seaweed, 53 species of mollusks, 23 kinds of echinodermata (starfish and urchins) and 221 plankton species.

inteRcontinental danang sun Peninsula ResoRt

Some may say that modernization destroys natural beauty, but the InterContinental Danang Sun Peninsula Resort certainly does not. Unlike other coastal areas in Danang, the Son Tra peninsula has benefited from a conservation order, which has kept big resorts at bay. Only two properties presently exist here, which means it

remains a scenic escape from the rapidly growing urban area of Danang city.

The InterContinental Danang Sun Peninsula Resort is a masterpiece of human creativity designed by star architect Bill Bensley of Bensley Design Studios Bangkok. Even those who have visited many luxury resorts will be impressed by the InterContinental’s restaurant, private beach, fragrant spa and romantic rooms.

What first strikes guests is the dramatic design which is a masterful interplay of traditional Vietnamese design and modern architecture. The colours and patterns are intense, with black-and-white fabrics splashed with a fiery red that begins in the marble lobby and continues throughout the 197 guest rooms.

Everything at the InterContinental Danang Sun Peninsula Resort is dramatic, including the outside dining spaces and

the freeform pool which is surrounded by loungers and shady palm trees.

What I love most is to sit and soak in a Jacuzzi here and enjoy the gorgeous view of the long coast line as the sun slowly sets, turning the sky a myriad of warm tones while the salty scent of the sea mingles with the fresh fragrance of the forest. At moments like these, time truly stands still creating moments that will last a lifetime.

InterContinental Danang Sun Peninsula Resort, Danang, Vietnam

lifestyle

Bidv Review64

Golf isn't merely a leisure sport - it is increasingly a forum where business relationships are formed and deals are made.

wellbeing. Exercising in a green space can positively impact mental health by reducing stress levels, enhancing mood and raising self-esteem. It’s the perfect restorative environment for relaxation.

Golf is inherently sociable and provides opportunities for forming deep and lasting connections with clients, potential business partners and colleagues. There’s plenty of time to talk between holes and in the clubhouse – and a shared interest in the sport can provide a conversation opener for golfing partners old and new.

Vietnam is one of the world’s most up-and-coming golf destinations, having been named the 2012 Golf Destination of the Year for Asia and Australasia

Deals on the fairwayby the International Association of Golf Tour Operators (IAGTO). 35 golf courses operate in Vietnam, with plans in place for another 65 projects.

There are around 30,000 golfers in Vietnam, of which half play regularly. The game is rising in popularity and this number is expected to continue to increase. Golf has a positive image in Vietnam, often viewed as a ‘noble’ sport for businesspeople who want to combine business and leisure. If Vietnam can develop professional golf training facilities as well as courses for amateurs, the golf industry will continue to gain popularity and status as both a leisure pursuit and a professional sport.

The golf course is an ideal place for businesspeople to relax, unwind and recharge their batteries.

Business can be discussed, relationships with partners strengthened and new investment opportunities found. Indeed, evidence suggests that time spent on the golf course can enhance business capacity and enable personal and professional development.

Like other outdoor leisure pursuits, golf has been shown to boost mental

nguyen tRang

csR

july 201565

Red journey

2015BIDV is the financial sponsor of the Red Journey 2015 blood donation program, organised by the National Steering Committee for Voluntary Blood Donation.

The Red Journey 2015 will be Vietnam’s third nationwide blood donation campaign and

will be held by the National Institute of Hematology and Blood Transfusion in 22 provinces and cities across the country. The donation program has been organised in response to the The Red Blood Drops Campaign 2015 initiated by the National Steering Committee for Voluntary Blood Donation. BIDV is the co-sponsor of the campaign for the second consecutive year.

The main purposes of the Red Journey 2015 are to advocate voluntary blood donation; to receive a large amount of blood available for transfusions at local hospitals to address the scarcity of blood; for local blood transfusion centres across the country to prepare for receiving large volumes of blood donations; and to educate young people and the wider community, both

on congenital hemolytic anemia and on blood donation in general.

BIDV will provide funding for the organisation of the program in each province as well as promoting the campaign to its customers and the community. Furthermore, BIDV’s trade union and youth union will hold a blood donation campaign before, during and after the Red Journey 2015, commencing June 27, 2015. In 2014, BIDV staff contributed 70,590ml of

blood to the donation program.

BIDV has also been implementing other CSR programs such as funding health clinics, medical equipment and ambulances for hospitals; funding congenital heart surgery for children and eye examinations for the elderly; and providing financial assistance for building houses and schools for disadvantaged communities in remote areas.

QuynH Hoa

csR

Bidv Review66

In the first six months of this year, BIDV’s total fund for overseas social security reached USD1

million. In Laos and Cambodia this was used mainly for education, health care and the financial support of governments and ministries.

In Laos, BIDV completed nine social security programs including four in education and five to finance Laos agencies. The total fund for this program is around USD810,000.

Projects include the construction of schools in Muang Xon Town, Houaphanh Province (USD377,000); financial support for operations of the Lao Government Office (USD142,300) and also the Ministry of Public Security (Laos) (USD96,330).

In Cambodia, BIDV financed three

overseas social security highlights

kim dung

A pioneering bank in overseas investment, BIDV contributes considerably to social security in the foreign countries in which it operates.

social security programs valued at USD183,500. They include scholarships for Cambodian students (USD68,900); funding for the Cho Ray-Phnom Penh Hospital (USD29,587); and financial support for operations of the Ministry of Interior of Cambodia (USD96,330).

In the coming time, BIDV will continue sponsoring social security, focusing on education, health care and poverty reduction.

In addition, as the chairman of AVIC, AVIL and AVIM, BIDV also encourages other Vietnamese enterprises to contribute to the social security of the countries where they are operating. These associations also require these enterprises to focus on environment protection to improve the image of Vietnamese enterprises in foreign markets.

BIDV Review 06

Documents

Transcript of BIDV Review 06