A Newsletter of Bank for Investment and Development of Vietnam JSC Issue No. 15 | Apr 2016

BIDV joins hands to boost local tourism

ShareholderS Meeting outlInes plans

EXECUTIVE PRODUCER

QUACH HUNG HIEP

senior executive Vice president

EDITORIAL BOARD

BRANDING AND PUBLIC RELATIONS DEPARTMENT

HEAD OFFICE:

BIDV tower, 35 Hang Voi str., Hoan Kiem dist., Hanoi, Vietnam

tel: (+84) 4 22205544

Fax: (+84) 4 22225316

Contact center: 19009247 – (+84) 4 22200588

email: bidvreview@bidv.com.vn

BIDVbankvietnam

license no. 03/Gp-XBBt dated 4 January 2016

by the Ministry of Information and Communications

printed 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. the bank boasts subsidiaries in finance, banking, securities and insurance. BIDV has expanded its business to the international markets including lao pDR, Cambodia, Myanmar, Czech Republic, Russia Federation and taiwan (China). BIDV stock (BID) is listed on the Ho Chi Minh City stock exchange (Hose). For more information, please visit www.bidv.com.vn

April 201601

AEditor’s Letter

Dear readers,

pril has been a meaningful month for BIDV and its customers. On April 26, the bank reached the age of 59. On that 59-year journey, BIDV has grown in line with the country’s development, overcoming some challenging periods. Throughout both difficult and favourable times, we have witnessed the effort, enthusiasm and intelligence of BIDV generations.

In the bank’s annual general shareholders meeting held in April, BIDV released its 2015 significant business result with total profit of up to USD332 million, up 18.67 percent year-on-year. The bank boosted expansion and promoted trade and investment in markets with high potential, including Russia, Europe, the Czech Republic, Japan and Taiwan and established relationships with over 1,700 financial institutions in 122 countries and territories.

April has also seen several investment promotion conferences. On April 3, BIDV successfully held the third conference on investment and tourism promotion for Binh Dinh Province. For Quang Tri and Lai Chau Province, April marked the first conferences on investment and tourism promotion. Held in mid-April, these conferences rendered efforts to develop the province into a key tourism hub in North Central Vietnam.

BIDV received the title Vietnam Excellent Brand, making this the twelfth year in a row that the bank has been presented with the award, affirming the bank’s position in the local as well as international markets.

A new month is starting and as usual will see another issue of BIDV Review, where readers can find out about the bank’s activities as well as its new products and services.

Bidv review02

contents

BIDV hIghlIghts 4. BIDV Retail Banking: Robust performance in an

integrated climate

17. BIDV, VNPT ink cooperation agreement

8. BIDV shareholders meeting outlines plans

10. BIDV joins hands to boost local tourism

18. Fostering the development of SMEs

19. BIDV Cam Pha commemorates new level

20. BSC consultant for M&A deal

12. Making strides in tourism development

14. Unlocking Lai Chau’s tourism potential

16. Lao Cai to receive tourism boost

20. BIDV recognised as ‘excellent’ twelfth year running

21. Standard Chartered grants STP award to BIDV

April 201603

contents

ProDucts & serVIces22. Employing foreignization to reach FDI customers

Market MoVeMent28. Adverse weather effects economy

24. Manage spending with BIDV Visa Business

24. The companion I choose

25. Cash transfer through BIDV-CUB channel

25. Loans to enable car ownership

26. Overwhelming luckiness

26. Topup promotion

27. BIDV pioneers social listening hub

30. Economic recovery despite barriers to growth

31. Vietnam to remain a regional growth outperformer

lIfestyle32. Discovering Hanoi’s history

34. Quan Lan - pristine island beauty

csr36. BIDV aids disaster relief in Ca Mau

Bidv HigHligHts

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Mr. Phan Duc Tu, BIDV Chief Executive Officer, discusses retail banking - a key development area of the bank in recent years with BIDV Review.

Despite joining the retail banking sector later than its peers, BIDV has made great strides, becoming the number one retail bank in Vietnam. Could you tell us about the most important milestones and achievements the bank has made in retail banking?

BIDV's retail banking story began with the mobilisation of capital through bonds, gold-based promissory notes, and home savings in 1992. Not until 2004, when BIDV implemented projects TA1 and TA2, did BIDV shape its retail banking as an important business pillar.

BIDV’s board of directors issued Resolution 1235 in December 2009 and Resolution 155 in January 2013, clearly defining the position, requirements, objectives, and strategy for developing retail banking. Resolution 155 deployed in conjunction with the restructuring scheme for the 2013-2015 period created major breakthroughs and remarkable successes in retail banking operations, making BIDV the leading retail bank in Vietnam.

As of December 31, 2015, deposits from residents reached VND355 trillion (USD15.8 billion), accounting for 55 percent of BIDV’s total deposits. Outstanding retail credit reached more than VND145 trillion (USD6.4 billion), accounting for nearly 23 percent of the bank’s total outstanding loans. Credit quality was controlled. Net retail income reached over VND8,600

Bidv retail Banking: robust performance in an integrated climate

Mr. Phan Duc Tu, CEO, BIDV

cong cHUng

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billion (USD382 million), accounting for 41 percent of the bank’s total net income. BIDV’s individual customer base is constantly expanding, currently reaching nearly 7.7 million customers. Retail products are continuingly being improved, employing high technology to meet the needs of customers.

BIDV has robustly expanded its distribution channels, with 180 branches and 799 transaction offices currently in operation, and has launched modern banking channels such as e-banking, ATMs and POS. BIDV was the first bank in Vietnam to establish a Social Media Command Centre (SMCC) in order to listen to, interact with, and provide better services to customers. BIDV also has the biggest banking and insurance network in foreign countries.

In my opinion, the biggest success in the bank’s retail banking operations

in recent years has been in changing our mindset - putting retail banking in the right place in the system, strengthening the position of retailers in the market, and building a culture of creative, dynamic, and passionate retail banking officers.

Through these achievements, BIDV’s retail banking has earned recognition. The bank received the Best Retail Bank in Vietnam award for 2015 and 2016; Outstanding Retail Banking Award for 2015, Outstanding E-Banking Award for 2015, and four card product awards from MasterCard for 2015, amongst others.

These results have not only contributed to improving BIDV’s retail banking brand but also to the bank’s overall success. Specifically, they helped improve the competitiveness of the system, expanding its market share, and making BIDV the number

one bank in terms of scale; diversifying customers and risks (the retail banking sector is less affected by the cyclical economic crisis); enhancing the stability of the BIDV system by providing a stable revenue source; and creating a long-term capital source for BIDV to supply capital to the economy. At the same time, retail banking has made the BIDV brand even more popular, enhancing its brand recognition and strength.

What are the bank’s strategies and plans for developing retail banking in the coming time?

Vietnam's economy is on a strong path to recovery. International economic integration is being comprehensively boosted, enabling the country’s economy to develop with greater strength.

With a population of over 90 million

BIDV’s individual customer base is constantly expanding, currently reaching nearly 7.7 million

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people, mostly young, Vietnam holds huge potential for retail banking, which is expected to boom during the period 2016-2020. Banks which seize this opportunity to provide products and services to individual customers will become giants. This is the ‘fertile land’ which banks must focus on, especially when the free trade agreements (FTAs), and ASEAN Economic Community (AEC) take effect. When barriers to financial markets are removed, banks both local and international must already be prepared to enter and compete in this market.

In the period 2016 - 2020 the race among the commercial banks will be in the retail banking sector. This presents opportunities as well as challenges for BIDV. Against that backdrop, the bank’s leadership set the following business objectives:

BIDV determines the retail banking as a core business pillar for the bank’s business strategy and plan in the period 2016 - 2020, to establish the leading position in the Vietnamese market in terms of scale, quality and efficiency.

Regarding its overall objectives and

strategic solutions, BIDV aims to maintain its position as the largest retail bank and leading retail brand in Vietnam, striving to become an ASEAN qualified retail bank based on the quality of its services and technology platform with the following strategic solutions:

First, implementing uniform measures to enhance BIDV’s competitiveness in retail banking operations to meet the requirements of competition and international economic integration; developing and finalising its business organisational model and retail banking management system in accordance with international standards and practices.

Second, focusing on developing human resources to meet the basic conditions for international standards of retail banking; thereby building a professional, skilled, and friendly retail team.

Next, establishing electronic banking and digital banking quickly and efficiently; focusing on speeding up the application of information technology in retail banking operations, and identifying information technology

as the foundation and strength for competition.

Additionally, increasing the market shares of services, cards and transactions via mobile banking and internet banking, developing both modern and traditional distribution channels.

Further, strengthening its brand promotion, linking retail banking operations with the bank's insurance operation; striving to make BIDV MetLife one of the top three life insurers in Vietnam, and BIC among the top five bancassurers in the Vietnamese market.

Finally, increasing support for commercial presences in foreign countries in order to foster retail banking operations, create connections and promote the common strength in a

A roadshow team for a big promotion program of BIDV

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large market.

The above goals are challenging, particularly given the strong competition of banks both local and foreign. How can BIDV remain confident that it will achieve these goals?

We are welcoming a great opportunity created by the business environment: a stable economy, big business and production needs; a large population with young people accounting for 51.6 percent; consumer credit in Vietnam accounting for only 5.6 percent of GDP; increased personal income and increasing consumption trend; and the development of information technology which is strongly influencing consumer behaviour.

To develop retail banking, three basic elements are needed - up-to-date

technology, a strong network and excellent human resources. Banks which possess and promote these three elements will dominate the retail market. As I mentioned above, BIDV has all three elements with superior strength compared to other banks. In addition, the bank also possesses other important advantages enabling it to confidently top the retail segment. This assumption can be supported by the following:

BIDV is now the largest scale bank in the Vietnamese market, enabling it to mobilise greater resources for retail banking operations which are backed by wholesale operations; deploying information technology applications, market research, and marketing programmes on a large scale.

With nearly eight million customers of which more than 7.7 million are

individual customers, BIDV has a valuable asset to maintain the development of its retail banking activities.

BIDV operates in both banking and insurance - life and non-life - across Vietnam and in certain other countries and territories, enabling the bank to cross-sell products and services and create further added values for customers.

Finally, BIDV possesses a large-scale and highly-efficient retail banking platform, extensive network, diverse products and professional and enthusiastic human resources as well as being a well-known brand recognised by local and international organisations.

Against this solid foundation as well as the determination and efforts of the whole banking system, I believe that the goals set out for the bank's retail banking operations will be successfully fulfilled. BIDV will become a modern bank with high innovation and modern technology as its solid foundations, customers at its centre and human resources as core to its operations.

A roadshow team for a big promotion program of BIDV

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On April 24 BIDV successfully held its 2016 Annual General Meeting of Shareholders in Hanoi. The meeting was attended by 491 investors and proxies representing 3.3 billion voting stocks, accounting for 97 percent of voting shares.

tHe HAllmArk of sUstAinABle growtH

In 2015, BIDV responded flexibly to market developments while completing its business plan for 2015, fulfilling the restructuring target for the period 2011-2015.

As of December 31 last year, BIDV’s total assets reached VND851 trillion (USD38 billion), an increase of 24 percent since the beginning of the year. BIDV ranked amongst the top six

listed enterprises in terms of market capitalisation value.

At the end of 2015, the bank had 3.4 billion floating stocks with market capitalisation of over VND70 trillion (USD3.1 billion), an increase of 90 percent year-on-year. Deposits hit VND790 trillion (USD35.3 billion), an increase of 24 percent and higher than the year plan target of 16.5 percent.

The bank’s outstanding loans hit VND806 trillion (USD36 billion). Credit quality improved and NPL ratio reached a well manageable 1.68 percent. Profit before tax also increased to VND7,473 billion (USD332 million), up 18.67 percent year-on-year. BIDV’s financial ratios were all within safe limits, with ROA at 0.79 percent and ROE at 15.5 percent. Its CAR ratio was over 9 percent.

In the first quarter of 2016, the

trAng BinH

bank’s financial ratios continued to rise. Credit growth reached 4.3 percent, deposits rose 4 percent and total assets accelerated 2 percent to VND867 billion (USD38.7 billion). Pre-tax profit hit VND1,900 billion (USD84.8 million), up 3 percent year-on-year and a 24 percent completion of the year plan.

2015 witnessed a huge change in the Vietnamese banking system due to the restructuring process. Playing an important role in the State Bank’s scheme on restructuring the credit institutions in the 2013-2015 period, BIDV and MHB sucessfully completed their merger. This merger not only helps BIDV expand its network and customer base but also cements the role and position of BIDV as the leading Vietnamese financial insitution.

strong internAtionAl cooperAtion

Panel chairs at BIDV's Annual General Meeting of Shareholders

Bidv shareholdersmeeting outlines plans

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BIDV continued its successful role of chairman of the Association of Vietnamese Investors in Laos, Cambodia and Myanmar. The bank boosted expansion and promoted trade and investment in markets with high potential, including Russia, Europe, the Czech Republic, Japan and Taiwan. BIDV took significant steps in integrating further with the global financial market, establishing commercial presences in Laos, Cambodia, Myanmar, the Czech Republic and Taiwan.

BIDV strengthened its cooperation with partners all over the world by establishing relationships with over 1,700 financial institutions in 122 countries and territories. In 2015, the bank inititated and co-hosted 13 international economic cooperation programmes to prepare for participation in the FTA, ASEAN economic community (AEC), EU and Northeast Asian market.

The bank’s subsidiaries, joint ventures and commercial presences also performed well, with total profit before tax (PBT) reaching VND438 billion (USD19.5 million), up 40 percent year-on-year. BIDV Insurance Corporation’s (BIC) PBT hit VND157 billion (USD7 million). BIDV Securities Company’s (BSC) reached VND101 billion (USD4.5 million) and BIDV Financial Leasing Company’s PBT was VND180 billion (USD8 million). BIDV’s joint ventures and commercial presences in other countries performed well in their operations, contributing to strengthening the bank’s brand and position internationally.

Of particular note, on March 4 this year, on behalf of the Union Government and the Central Bank of Myanmar, the Foreign Bank Licensing Committee announced its preliminary approval for BIDV to prepare for commencement of its banking

operations in Myanmar. The approval demonstrates the Government of Myanmar’s trust in BIDV’s capacity and acknowledgement of the bank’s prestige. BIDV is the first Vietnamese bank to receive consent to open a branch in Myanmar.

2016 will be a pivotal year for the bank to continue its radical restructuring scheme for the period 2016 - 2018. To successfully restructure, the bank must focus on strengthening its financial capacity in order to ensure sustainable business activities, as well as actively implement the charter capital increase plan through the issuing of shares and bonds. The bank must also prioritise restructuring underperforming branches in order to improve the operational quality of the whole system.

The general shareholders meeting approved the bank’s business target for 2016 as well as the charter capital increase plan. The bank plans to issue shares to foreign investors, issue convertible bonds, and issue to exisiting shareholders a total share

Business indicators set by the agM for 2016• Deposit growth: 21-22 percent • Credit growth: 18 percent• PBT: VND7,900 billion (USD352.7 million)• NPL ratio: <3 percent, expected ≤ 2 percent • Dividend payout ratio: 7 percent

value of VND9,446 billion (USD422 million). The new charter capital will help enhance the bank’s financial capacity and competitiveness, enabling it to meet the standards of international pactice and requirements under Basel II in 2016.

The general shareholders also approved the establishment of BIDV’s subsidiary in fund management by purchasing 100 percent of stakes of Vietnam Partners (VP) in BIDV-Vietnam Partners Investment Management JVC (BVIM). BVIM is an investment management firm based in Hanoi, a 50:50 joint venture between BIDV and Vietnam Partners.

Shareholders vote at BIDV’s AGM 2015

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The conference had several aims. Firstly, to promote the position of Binh Dinh tourism

in the central coast region – the key tourism hub of Vietnam for the period 2016-2020; secondly, to announce breakthrough solutions on strategies, planning and preferential investment policies to develop tourism infrastructure and differentiated and outstanding tourism products,

to make Binh Dinh an attractive and competitive destination in the region; and thirdly, to strengthen the confidence and attractiveness of the investment climate of Binh Dinh for domestic and foreign investors, both existing and potential who will directly enable tourism development in the province.

Located in Vietnam central’s key

economic region, Binh Dinh is an important juncture in the East - West economic corridor. The province is known as the land of martial arts and literature, boasting Cham cultural relics as well as traditional martial arts, folklore and cultural festivals. The province also features coastline and beautiful inland landscapes.

In his speech, Mr. Tran Bac Ha, BIDV Chairman, said that after two years of implementing the investment and tourism promotion conferences, the province has made breakthroughs in terms of policies and mechanisms.

Specifically, the province granted four-year corporate income tax exemption as well as 7-15 year land rent exemption from the date a project is completed

Bidv joins hands to boost local tourismBIDV in collaboration with the Vietnam National Administration of Tourism successfully held the third Conference on Investment and Tourism Promotion for Binh Dinh Province. Taking place on April 3 in Binh Dinh Province, the conference saw the attendance of 500 participants, including representatives from government ministries and agencies as well as local and international investors and businesses from Japan, Singapore, Indonesia and Taiwan, amongst others.

pHAn AnH

Mr. Tran Bac Ha, BIDV Chairman speaks at the third Conference on Investment and Tourism Promotion for Binh Dinh Province on April 3

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and put into use. The province also granted 100 percent exemption of land rent in disadvantaged areas and a reduction of 20-30 percent of land use to remove obstacles in investment certificate granting and procedures. Furthermore, Binh Dinh upgraded and accelerated infrastructure investment projects for tourism development.

Over the past years, the province has attracted an increasing number of potential investors. By the end of 2015, the province had attracted 33 investment projects including six foreign ones, with total registered capital of nearly VND6,000 billion (USD268 million). Implementation of all these projects has begun.

A highlight of the conference was the master plan on tourism development until 2020 with vision to 2030 announced by the province of Binh Dinh, which focuses on investment and exploiting tourism resources professionally and sustainably, producing high quality and competitive tourism products.

Accordingly, by 2020, visitor numbers are expected to reach 5,500,000, of

which 800,000 will be international, an average annual growth rate of 15 percent. Total tourism revenue is predicted to reach VND10,000 billion, an average annual growth rate of 25 percent. The province aims to have 200 hotels, accommodating 7,500 rooms, of which 35 percent will be standard 3-5 star rooms; and 7,000 employees working directly in the tourism sector. By 2020, about 45 key investment projects for tourism development in Binh Dinh will have been implemented.

The conference saw the signing ceremony on linking tourism development between Binh Dinh, Phu Yen, Gia Lai, and Dak Lak Provinces entitled Four Provinces One Destination. The Binh Dinh Province People's Committee granted preliminary investment decisions to three enterprises, with total investment of over VND920 billion (USD41 million); and awarded investment registration certificates to three projects totaling close to VND4,200 billion (USD187 million).

BIDV also signed a master agreement to arrange funding for two projects

with total investment values of nearly VND2,531 billion (USD112.5 million), of which BIDV is committed to finance VND1,300 billion (USD58 million).

BIDV gave VND14.7 billion (USD653,000) to Binh Dinh Province to support the implementation of overall planning of socio-economic development until 2035 with vision to 2045.

Mr. Tran Bac Ha stressed, “BIDV hopes these feasible solutions will create positive social effects, strengthening the confidence of investors in Binh Dinh, making tourism a key economic sector of Binh Dinh Province, contributing significantly to the socio-economic development of the province and improving the living conditions of the local people.” He added that the strong development of tourism in the Central Region will contribute to national defense and sovereignty protection. “BIDV is committed to being a trusted companion for businesses and investors, both local and foreign, on their investment projects in Binh Dinh, offering preferential policies as well as support to make the region more prosperous.”

Ham Ho, Tay Son, Binh Dinh province

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The People's Committee of Quang Tri Province coordinated with BIDV to hold the first conference on investment and tourism promotion in Quang Tri in the middle of April, rendering efforts to develop the province into a key tourism hub in North Central Vietnam.

Prime Minister Nguyen Xuan Phuc attended the conference on his first trip to visit localities

since taking office. The conference welcomed the attendance of 450 participants from government ministries and embassies, including Korea, Japan, Thailand and Singapore, as well as JETRO, ADB, JICA, KOTRA, and FDI enterprises, economists, investors, and local and international media.

Mr. Nguyen Duc Chinh, Chairman of Quang Tri, said: “Quang Tri is the first point on the East-West Economic Corridor, featuring a uniform traffic infrastructure system, and holding potential for development in key areas including tourism, forestry, mining, building material processing, hydropower, fisheries, industrial parks.

Quang Tri is considered one of the provinces with the most favourable investment environment in Vietnam, making it an attractive and feasible destination for investors at home and abroad.”

Addressing the conference, Prime Minister Phuc spoke of his appreciation of the initiative and effort rendered by the Quang Tri authorities and BIDV in organising the conference. The

Prime Minister asked the authorities of Quang Tri to design a specific agenda for implementing projects as soon as possible, in order to foster the socio-economic development of the province. Furthermore, he directed the ministries to liberalise mechanisms and policies as well as to allocate financial resources to challenging but potential provinces such as Quang Tri, focusing on them as key tourism areas in the North Central Region of Vietnam.

making strides intourism development

vinH Hong

Quang Tri holds potential for development in key areas including tourism

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The Prime Minister urged the Quang Tri authorities to focus on three key objectives. First, building a tourism brand in Quang Tri; second, developing appropriate mechanisms and allocating land stock for tourism development within the province; and third, developing a responsible tourism model in order to build a clean, green and community-friendly tourism environment capable of attracting tourists.

Dr. Nguyen Quoc Hung, Deputy Director General of Vietnam National Administration of Tourism, said, “Given the socio-economic difficulties of the province, which suffered heavily from the devastating consequences of the war, as well as limited human resources, Quang Tri should focus on its outstanding strengths to attract investment to enable development. Tourism should be chosen as one of the key economic sectors of the province, the development of which will allow other sectors to expand.

BIDV played four roles at the conference, namely, initiator and co-organiser; focal point to call for investors and enterprises to study and invest in Quang Tri; sponsor; and lender for projects. The bank has more than ten years of professional experience in organising investment promotion conferences.

Mr. Tran Bac Ha, BIDV Chairman, said BIDV is committed to accompanying and partnering with businesses investing in the province. BIDV provides funds and services to businesses not only in their early stages but also throughout their business process, giving preferential interest rates and offering the longest term loans.

Quang Tri Province called for investment in 19 key projects in areas including general infrastructure and industrial zone infrastructure; trade and tourism; industrial manufacturing; agriculture; garments; culture and sports.

Currently a number of investors are implementing major tourism projects in Quang Tri. These include Quang Tri Trade Corporation, investing in Phase 2 of Cua Viet tourism centre project (Resort Sepon); Song Hien trade and tourism company’s Ru Linh eco-project, Delta Vina Company’s amusement project on Hieu river, and eco-resort projects receiving funding from Korea, Taiwan and Thailand.

At the conference, Quang Tri Province granted licenses to 18 projects with total investment of nearly VND10,650 billion (USD473 million). Among them, BIDV signed an agreement to finance five projects with a total value of VND5,120 billion (USD227.5 million), including Huong Linh 2 wind-power plant project; Khe Sanh industrial dairy project; Cua Viet tourism centre project - phase 2 (Resort Sepon); seaport dredging and construction complex project, and shop-house project in the city of Dong Ha, Quang Tri Province.

Mr. Tran Bac Ha, BIDV Chairman speaks at Conference on Investment and Tourism Promotion in Quang Tri Province

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Lai Chau Province has the conditions for tourism and economic development as well as for developing trade links with local and international regions, however its growth has yet to be aligned with its potential.

On 23 April, the People’s Committee of Lai Chau Province collaborated with BIDV to

organise the first Conference on Investment and Tourism Promotion in Lai Chau Province. The conference aims to introduce and promote the province’s potential and advantages, highlighting preferential policies and mechanisms for investment as well as key investment projects in the province and promoting its tourism to investors at home and abroad. It will also be an opportunity for institutions, investors, and businesses both local and international to meet and

Unlocking lai chau’stourism potential

exchange experiences and establish partnerships in order to foster Lai Chau’s socio-economic development.

A large mountainous province in the northwest of Vietnam, lying roughly 450km from Hanoi, Lai Chau is bestowed with fertile land, rich resources and a magnificent mountain landscape. The mountains keep the climate cool and the province is home to the national border gate Ma Lu Thang.

Since 2004, Lai Chau province attracted 124 investment projects with a total registered capital of VND204,892 billion (USD9.1 billion), focusing on industrial production, agriculture, tourism, healthcare. In particular, several major projects have been effectively put into operation, creating more jobs for local people, such as the hydropower projects Nam Na 2, Huoi Quang, Ban Chat, Chu Va and Nam Lung.

Addressing the conference, Prime

Minister Nguyen Xuan Phuc appreciated the initiative and efforts of Lai Chau and BIDV in organizing the conference. The Prime Minister emphasized that escaping from poverty is not the wish of the province but also the desire of the leaders of the Government, ministries, and business community.

On investment, Lai Chau province is calling for investment in 21 key projects in the attractive and competitive areas such as agriculture, forestry, construction, tourism.

At the conference, 10 projects with

Representatives of BIDV (right) and Lai Chau province sign a master agreement

Lai Chau province

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total investment of VND8,294 billion (USD368.6 million) was licensed by Lai Chau province. BIDV signed a VND237 billion credit contracts with Song Da Corporation to construct Nam Thi 1 hydropower project worth VND339 billion in Lai Chau province with capacity of 12Mw; and with Hoang Nham company to build a four-star hotel worth VND200 billion (USD8.9 million).

BIDV also signed a master agreement with Lai Chau province to fund the scheme on the master plan to develop agriculture, forestry, tourism and

human resources development in the agricultural sector in Lai Chau for the period 2016 – 2018 with a maximum value of VND10 billion (USD4400.000).

The conference participants offered familiarisation trips to tourist destinations within the province such as Pu Sam Cap cave system, Gia Khau and Suoi Ho community tourism villages, as well as cultural festivals, local cuisine sampling and beautiful mountains and rivers.

The conference provided an opportunity for tour operators to learn

about and develop the tourism market in Lai Chau, making the province an attractive destination in the Northwest Region.

Immediately following the conference the province’s Cultural and Tourism Week 2016 will begin, lasting during the last week of April. The aim of the week is to promote and introduce the province’s potential in terms of natural beauty as well as honour the cultural values of the people of Lai Chau to friends both local and international, helping shape the future of tourism development in the province.

Lai Chau province

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In mid-April, as part of the Vietnam International Travel Mart Hanoi 2016, BIDV jointly organised a

press conference to introduce tourism in the Northwest Region as well as a conference on investment and tourism promotion in Lao Cai Province.

The event was part of preparations for National Tourism Year, the most prestigious tourism event in the country, which will be held in the region in 2017. The event was organised in coordination with Northwest Steering Committee, Lao Cai People’s Committee and Vietnam National Administration of Tourism.

Ha Van Thang, Director of the Department of Culture, Sports and Tourism of Lao Cai Province, said that with the majestic beauty of the Northwestern mountains, the diversity and attractiveness of its culture and natural resources, and a favourable location close to the borders of China and Laos, the Northwest region holds great potential for developing tourism.

According to Thang, there will be 23 main events during the National Tourism Year 2017. The events will focus on eight tourism products typical to the region, including community-based tourism, terraced rice fields, flower seasons and mountain trekking.

Talking at the press conference, Ms. Hoang Thi Hanh, Deputy Head of the Northwest Steering Committee, said that the region has yet to take full advantage of its potential. According to statistics from the Vietnam National Administration of Tourism, in 2015, the Northwest Region welcomed 8.9 million domestic visitors and 1.7 million international passengers, yet the quality of tourism services is currently of a low standard.

According to Mr. Tran Xuan Hoang, Senior Executive Vice President of BIDV, the press conference was organised partly to prepare for the coming conference on investment and

tourism promotion in Lao Cai Province that will take place in May this year. The conference is expected to welcome more than 500 participants, including representatives from ministries and related agencies, domestic and foreign enterprises and organisations.

Working with Lao Cai Province to enhance investment and develop tourism in the region, BIDV will call for investors to invest in key sectors of Lao Cai such as agriculture, forestry, energy, tourism and construction. The bank committed to provide a total fund of up to VND20 trillion (USD893 million) to support investors in the province.

lao cai to receivetourism boost

viet AnH

Press conference on Lao Cai's investment and tourism promotion

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BIDV has signed a comprehensive cooperation agreement for the period 2016 -2020 with Vietnam Posts and Telecommunications Group (VNPT).

Under the agreement, BIDV and VNPT are committed to cooperating closely in all areas

relevant to the functions, responsibilities and capabilities of both companies.

BIDV has been committed to being the focal point in arranging capital as well as financing projects of VNPT and its member companies, with a total value of up to VND25,000 billion (USD1.1 billion). In addition, the bank has pledged to provide the best modern banking and financial products and services to VNPT at competitive rates, enabling the telecom group to take

advantage of economic benefits from its production and business activities.

BIDV said it would prioritise using telecom services and technology provided by VNPT for its corporate governance and sustainable development. The two parties agreed to take full advantage of each other’s network and brand in order to develop new products and utilities as well as to improve their own business efficiency.

Given these commitments and the strategic orientation, VNPT and its affiliates and subsidiaries will increase the use of credit and non-credit products and other services provided by BIDV such as insurance, financial restructuring, bond issuance consultancy, cash flow management, and the development of co-branded products at transaction points of each party in order to promote and

Bidv, vnpt ink cooperation agreement

strengthen the traditional partnership and strategies and improve the business efficiency of both sides.

Addressing the signing ceremony, Mr. Phan Duc Tu, Chief Executive Officer of BIDV, said: “VNPT is a strategic, important and long-term partner of BIDV. BIDV has committed to allocate resources and utilise its network, technology, human resources and quality banking services in order to implement the cooperation to the highest standard.”

The signing of the agreement marked a milestone in the strategic partnership between BIDV and VNPT, confirming the bank’s long-term commitment to accompanying VNPT in particular and the telecommunications industry in Vietnam in general, while affirming VNPT’s role in BIDV’s sustainable growth.

Representatives of BIDV and VNPT sign agreement

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On April 22, Vietnam’s Small and Medium-sized Enterprise Development Fund (SMEDF) was officially launched, with total charter capital of VND2 trillion (USD89.3 million). The fund was established with the aim of supporting private sector enterprises, creating the momentum for economic development.

At the launching ceremony, SMEDF signed credit authorisation agreements with

BIDV and other commercial banks.

SMEDF is a public financial institution under the Ministry of Planning and Investment (MPI). The fund’s functions are to support SMEs to develop and implement feasible business plans and projects belonging to priority sectors in line with the fund’s operational purposes; to manage the State budget capital as well as resources from domestic and foreign organisations and individuals; and to enhance the competitiveness of enterprises and contribute to raising incomes and creating more jobs.

According to the MPI, there are currently around 500,000 SMEs across the country, accounting for 98 percent of the total number of operational enterprises. They contribute 45 percent of Vietnam’s GDP, 33 percent of the total State budget revenue and provide

62 percent of the total number of jobs created among enterprises. However, SMEs are still facing difficulties in accessing financial sources due to high lending rates and strict loan conditions.

In 2016, SMEDF will offer loans through authorised banks only, with preferential interest rates and terms, together with capacity building activities to ensure the effectiveness and efficiency of these loans. Maximum loans of up to VND30 billion (USD1.34 million) with ten year tenure will be offered. Interest rates will be 5.5 and 7 percent per year for short term loans and medium and long term loans, respectively. Interest rates

fostering the developmentof smes

tHU trAng

will remain fixed throughout the loan term, with some special cases being considered for reduction.

The operation of SMEDF is of great significance for Vietnam SMEs who are unable to develop to their potential due to shortage of capital.

Prior to the launching ceremony, a MoU signing ceremony between SMEDF and Johnan Shinkin Bank (JSB) of Japan took place in March. Through this MoU, SMEDF in coordination with JSB will implement the exchange of information and financial consultancy for SMEs, as well as running workshops on business connection and financial assistance.

Representatives from BIDV (L) and SMEDF signed credit authorisation agreement

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On April 20 BIDV Cam Pha Branch held its official opening ceremony to mark its transformation. Established in 1960 as a secondary branch of BIDV, this year the branch has begun operating as a primary branch.

At the beginning of the year, the branch had deposits of VND4 trillion (USD178.6 million),

outstanding loans of VND3 trillion (USD134 million), and total numbers of customers of over 60,000. After three months of successfully operating as a primary branch, the branch remains stable with well-managed credit quality, completing its business plan for the first quarter of the year. The branch’s total deposits and loans have increased

by VND1 trillion (USD44.6 million).

Currently, BIDV has five branches in Quang Ninh including Quang Ninh, Southwest Quang Ninh, Ha Long, Mong Cai and Cam Pha as well as 29 transaction offices situated in the province’s economic centre. So far these branches have reaped total profits of VND300 billion (USD13.4 million), with credit and deposit market shares at 17.4 percent and 18.7 percent, respectively.

Quang Ninh Province is a key economic province in the north of Vietnam. It has a geostrategic position with both an international border with China and a maritime boundary line. The economic growth of the province in 2015-2020 is targeted at 14-15 percent per year and GDP per capita is expected to reach USD8,000-8,500.

Cam Pha city is an economic hub of Quang Ninh Province. It ranked 15th place amongst the 20 biggest cities in Vietnam, with a population of more than 200,000. The city owns 19 mines, accounting for 70 percent of the province’s coal reserve.

Cam Pha has been identified as an urban area targeted for sustainable industrial development under modern service orientation. It has a special position in terms of national defense and security in the northeast of the country. These conditions provide an advantage for attracting investment and developing the urban infrastructure of Cam Pha. Furthermore, they have enabled the BIDV Cam Pha branch to assist in the development of Quang Ninh Province in general and Cam Pha in particular.

Bidv cam phacommemorates new level

viet AnH

BIDV leaders unveil the banner to commemorate the new operation of BIDV Cam Pha Branch

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Eurowindow has officially announced Japanese

company Bunka Shutter as its major shareholder, with the two companies acting as strategic partners for each other. Bunka Shutter is a major firm in the field of rolling door and building materials manufacturing. BIDV Securities Company (BSC) and Amidas acted as consultants for the deal.

The cooperation between Bunka and Eurowindow will not only help both companies to develop better products for the Vietnamese and international market, but will also promote production management and corporate governance in order to increase the efficiency of their respective business operations.

The deal is a typical M&A that BSC implemented in accordance with international practice with the participation of many international organisational consultants including Amidas (Japan), Deloitte (Japan and Vietnam), and Baker McKinney (Japan, Singapore and Vietnam). The successful conclusion of the transaction brings added value to the companies and their clients and satisfaction to the parties involved.

The success of the transaction will motivate BSC to develop further M&A consultancy with partners and foreign investors.

Bsc consultant for m&A deal

BIDV recently received the title Vietnam Excellent Brand, making this the twelfth year in a row that the bank has been presented with the award.

The award was launched in 2003 by Vietnam Economic Times and is now an annual event for FDI

companies and local enterprises.

The award aims to recognise and incentivize enterprises with outstanding performance in their

HAi AnH

Bidv recognised as ‘excellent’ twelfth year running

business transactions and provision of services, solutions and environment-friendly technology as well as those who comply with tax obligations, ensuring employees’ benefits and actively participating in social security activities. It also aims to connect media agencies with regulators, policy-makers, economists and the wider business community, as well as producers and consumers.

This year, 75 FDI enterprises received the Gold Dragon award and 100 local businesses received the Vietnam Excellent Brand award.

BIDV's representative receives the Vietnam Excellent Brand award

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April 201621

BIDV has been recognised by Standard Chartered for its advanced payment capabilities, receiving the award for Straight Through Processing (STP) Excellence 2015.

The STP award is granted to banks demonstrating high quality of payment services based on straight through processing (STP) rate, an important indicator for accuracy and automation of payment messages.

With an STP rate of over 96 percent in 2015, BIDV is able to provide timely and accurate payment services, saving time and costs for itself and its clients. The award also confirms the advanced IT infrastructure and excellent capabilities of the operations staff at BIDV.

Standard Chartered is one of BIDV’s most important correspondent banks,

having had an effective and diverse partnership with BIDV in many areas.

Receiving the award on behalf of the bank, Ms. Phan Thi Thanh Nhan, Head of Operation and Trade Finance, BIDV, said, “The STP award demonstrates recognition by correspondent banks with which BIDV has a relationship. It is evidence that the services provided by BIDV to customers meet the essential criteria of safety, accuracy and speed.”

The prestigious award acknowledges the operational capacity of BIDV and recognises the bank’s outstanding efforts to improve its service quality in processing international payments, reinforcing BIDV’s reputation as a market leader in operations and service quality.

As well as Standard Chartered, many other international banks including

The Straight-Through Processing Rate (STP) is a broadly recognised initiative of the international banking community aimed to increase the quality and to optimise the speed at which payment transactions are processed, substantially decreasing the settlement risk by allowing information that has been electronically entered to be transferred from one party to another in the settlement process without manual intervention.

standard chartered grants stp award to Bidv

pHUong tHAo

Citibank and HSBC have also recognised and granted international payment awards to BIDV for a number of recent consecutive years.

As an international bank in Vietnam, Standard Chartered has enthusiastically promoted the international settlement business for local banks.

BIDV representatives receive the STP award from Standard Chartered

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By providing professional foreign exchange products and services, BIDV aims to become a domestic bank that multinational enterprise communities from the United States and Europe, and Asian countries such as Japan, Taiwan and Korea, can trust to establish cooperative relations.

wide-open opportUnities

A series of important free trade agreements (FTAs), as well as bilateral and multilateral agreements were signed in 2015, including an FTA with the European Union, Vietnam-Korea FTA, and the Trans-Pacific Partnership (TPP). These have opened up many opportunities for development in all of Vietnam’s economic areas, especially import-export activities. In 2015, the total value of imports and exports from the FDI sector reached USD208 billion, a 16.7 percent growth from last year, accounting for 63 percent of the country’s total import-export turnover. These figures are expected to continue to improve in 2016.

This creates a potential pathway for domestic banks to expand their

tHAnH tHUy

employing foreignization to reach fdi customers

BIDV's FDI Banking department has been launched since February 2016

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FDI customer base. The potential to approach these customers through credit activities is extremely limited as FDI enterprises often receive loans with considerably low interest rates from banks in their own country. Foreign exchange products can provide an ‘entrance’ for domestic banks in terms of reaching FDI customers.

Despite being one of the leading banks in providing foreign exchange products and services in Vietnam, BIDV has only shifted its focus towards FDI customers in the last two years. Therefore, BIDV’s FDI customer base is still relatively weak. Recently, the number of customers and sales of foreign exchange with this group has only accounted for 10 percent and 7 percent respectively of those of total customers trading in foreign exchange. Compared with the overall market, the market share of forex sales with FDI customers in BIDV is only a modest one digit number.

refining to trAnsform

By understanding the situation and following market trends, since the end of 2013 BIDV management has been actively promoting the enhancing of

By the end of 2015, the number of FDI customers had increased by 16 percent compared to the same period last year, of which, the number of FDI customers completing FX transactions and the total amount of FX sales grew by 28 percent and 23 percent, respectively.

service quality and developing its FDI customer base along all business lines. With respect to forex sales, the bank's treasury and head office collaborated with the FDI department and branches in striving to build professional staff, improve processes, diversify products and change the bank’s service style towards “foreignizing” domestic factors as appropriate to match the special characteristics of this group.

Recognising that language barriers are the first obstacle when approaching FDI customers, BIDV has developed a professional staff team from head office down to its branches, possessing business savvy and language skills in English, Chinese and Japanese. Forms and contracts have been translated into relevant languages for the convenience of customers during the transaction process.

The transaction process has seen many improvements. Besides the transactional method through contracts, customers can opt for flexible methods of transactions by phone, email or fax.

FX products have also been designed to

tailor with customer demand, especially the demand for hedging exchange rate risks together with free market counseling services and preferential exchange rate policy for VIP customers buying/selling FX products including spot, forward, swap and option.

In the coming years, opportunities from trade agreements, policies targeting FDI customers and possessing the strength of a state-owned bank with experience in FX sales will create leverage for BIDV to empower its position in approaching FDI customers. Given the change and transformation, close coordination between the head office (including the treasury and FDI departments) and the branches will be a key factor in the bank’s ability to meet the needs of FDI customers.

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From now until the end of June, individual customers can participate in BIDV’s programme

titled The Companion I Choose – or Ban dong hanh toi chon - and enjoy many free services.

The programme provides customers with three options: a Smart Account Package; Convenient Service Package; and Modern Service Package.

BIDV is offering free card issuance and two-month no-fee mobile SMS or BIDV’s Smart Banking (mobile

the companion i choose

application) in 2016 for customers joining the Convenient Service Package. Customers opting for the Modern Service Package will enjoy a reduction of 0.1 percent in interest rates for home and auto loans, applicable for the first year of the loan. The bank is also offering SMS tokens for the BIDV online service as a gift for customers.

Furthermore, the first 10,000 customers who successfully register for the programme will receive a bonus of VND50,000 into their account.

manage spending with Bidv visa Business

On January 20, BIDV launched its BIDV Visa

Business Card - an international credit card for corporate customers. The new product will provide businesses with comprehensive payment solutions and spending management services as well as many other utilities and promotions.

BIDV Visa Business Card has a grace period of up to 45 days. Businesses can simplify the payment process and manage expenditure effectively. Customers will receive SMS notifications upon making transactions. Customer support services are available 24/7, including overseas emergency assistance. The credit card is equipped with the leading security technology, an EMV chip, ensuring customers’ account information remains secure whilst payments are made.

On the 20th of each month, BIDV will send financial statements detailing the transactions of each individual card linked to the account of the business card, enabling businesses to control their expenditures and spending more efficiently.

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In recent years, an increasing number of Vietnamese people have moved to Taiwan to work and

study. To meet the increasing demand for transferring remittance from Taiwan to Vietnam, many Taiwanese banks have launched a remittance service, including Cathay United Bank (CUB) – a partner of BIDV.

In April this year, BIDV signed a bilateral cooperation with CUB to deploy overseas remittance services. As a result, Vietnamese people living in Taiwan can transfer remittance at CUB to their BIDV account. Customers

cash transfer through Bidv-cUB channel

loans to enable car ownership

Customers can now buy their own car

financed by the auto loan programme: Bring home your new car from BIDV. The programme is effective from March 28 to June 30, 2016.

Targeted customers are individual customers or households and super-micro businesses wishing to purchase automobiles for personal or business purposes. Customers can enjoy the preferential rate of 7.5 percent per year, with a loan term of up to 84 months and flexible options. The programme is applicable to new disbursements with terms of 36 months or more.

can also benefit from other utilities and promotions. From April 22 to July 22, 2016, the first 500 remittance transactions made through the BIDV – CUB channel will receive a bonus of VND50,000/transaction.

According to the Financial Business Statistics Summary released by the Financial Supervisory Commission (FSC) in February 2015, Cathay United Bank (CUB) ranks seventh in Taiwan in terms of net worth and eighth in terms of total assets. The bank is also ranked 286th in the world in terms of total assets.

Taipei, Taiwan (China)

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over-whelming luckiness

Also for the occasion of New Year, BIDC launched the promotion programme called

New Year Gifts from BIDC TOPUP. TOPUP is a service allowing customers to easily top up a prepaid phone account by sending an SMS to short code 2222 or through the BIDC Mobile Banking Application.

The promotion will take place from April 04 to May 29, 2016. 56 daily prizes are offered for customers who have the highest topup amount daily, with a minimum value of USD5. Eight

topuppromotion

customers with the highest topup amount each week will have the chance to win prizes, worth USD20. A further two monthly prizes, worth USD100 each, are available for customers with the highest monthly topup amount. The accumulated prize value of the programme is USD640.

The names of winners will be officially announced on the BIDC Website each week. Bonus will be directly transferred to the account of BIDC customers no later than a week after the winners are announced.

To celebrate Khmer New Year 2016, the

Bank for Investment and Development of Cambodia Plc (BIDC) is offering a fixed deposit promotional programme called Overwhelming Luckiness.

The promotional period will last from 21 March until 15 June 2016. The programme is available for all individual customers making deposits in USD at BIDC, including Cambodian individual customers and foreigners living and conducting business in Cambodia. The total prize value will be USD65,000. Customers can choose from an electronic lucky draw, scratch cards given right after making deposits or a lottery lucky draw at the end of the programme.

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BIDV launched its Social Listening Hub on the last day of March, becoming the first Vietnamese bank to operate a model of this kind.

The Social Listening Hub is a system comprising of display screens. It acts as a public

presentation of up-to-date information and feedback posted by customers and the community on the internet so that BIDV, its customers and the community can track discussions about the bank.

The birth of the hub has been welcomed by customers. Mr. Do Minh, a customer

of BIDV, said: “I was pleasantly surprised by BIDV’s social listening hub. I feel it represents BIDV’s care and attention to its customers’ feedback and the bank’s willingness to receive and address complaints. It shows that BIDV is on the right track to serve its customers.”

Mr. Le Trung Thanh, BIDV’s Senior Executive Vice President, commented, “The installation and operation of the Social Listening Hubs in public places are aligned with the bank’s customer-centric strategy. This step shows the bank’s willingness to openly receive all comments from its customers. BIDV’s customers can feel assured that their feedback will always be received, respected and handled timely

Bidv pioneers social listening hub

according to regulations, enabling BIDV to make improvements and better serve its customers.”

The Social Listening Hub epitomises a Social Media Command Centre. This the place where specialists use social listening tools to receive and handle as well as forward comments on the ebank, thus providing optimal support to customers and enabling improvements to be made, tailoring products and services to meet customers’ expectations.

BIDV was the first bank in Vietnam's banking sector to officially launch a Social Media Command Centre, in April last year.

BIDV's Social Listening Hub screens in Hanoi

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Although Vietnam’s macroeconomy has recovered, growth during the first quarter of this year was slower than that of last year, due to the adverse weather conditions that hit the country. Growth over the next quarter is forecast to increase, however knock-on effects from the first quarter are expected to continue.

A cHAllenging Q1

According to figures from the General Statistics Office of Vietnam, the core inflation rate in the first quarter of 2016 was 1.76 percent. During this period, Vietnam’s main indicators moved in a positive direction. Gross Domestic Product (GDP) saw growth of 5.46 percent year-on-year; total IIP increased 6.3 percent and total retail sales of goods and services was up 9.1 percent. The number of foreign visitors increased 19.9 percent. However, product values in the agricultural, forestry and fishery industries fell by an average of 1.3 percent.

The BIDV Research Centre confirmed that economic growth has been slow so far this year. GDP growth over the first quarter of last year was 6.12 percent, higher than this year’s 5.46 percent. GDP from agriculture, forestry and fishery has reduced 2.69 percent year-on-year, showing a low compared with recent years. Industry and construction increased, however only by 6.72 percent, a figure much lower than the 8.74 percent growth seen in the same quarter last year.

“Slow economic growth has been attributed to several climatic factors: a severe cold in the north of Vietnam, drought in the central and highland regions and salinisation in the Mekong Delta region. These adverse weather conditions negatively affected agricultural, industrial, and import-export sectors in the first quarter of this year,” an expert from the centre emphasised.

The ANZ research team produced an updated report for Vietnam which supported the research centre’s claims. It stated that reduction in GDP growth was mainly due to the contraction in agricultural output. Furthermore,

there are increasing indications that agricultural exports may be in for a tough year on the back of prolonged effects of El Nino.

However, despite slow GDP growth, Vietnam’s other economic indicators remain strong, particularly the number of visitors to Vietnam and the amount of foreign direct investment (FDI). FDI to Vietnam in the first three months of this year reached USD4.03 billion, a sharp increase of 119 percent compared to the same period last year. Disbursed FDI hit USD3.5 billion, up 14.8 percent year-on-year, demonstrating the increasing

Adverse weathereffects economy

trinH trAng

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April 201629

attractiveness of Vietnam’s investment environment.

A firm QUArter AHeAd

Based on the Q1/2016 macroeconomy, the BIDV Research Centre forecast that Vietnam’s second quarter will experience stable economic indicators including inflation, exchange rates, interest rates and FDI. However, the complicated drought and salinisaton conditions are expected to continue throughout April and possibly longer, therefore many challenges will remain for business, production and exports. GDP is forecast to reach 5.9-6.0 percent

in the second quarter of this year and 5.7-5.8 percent for the first half of 2016. IIP rate is expected to be 7.5 percent, lower than that of the same period last year.

ANZ stated that it is not entirely surprising that some domestic risks to growth are emerging and these are primarily arising from the agricultural sector. Predictions for the second quarter acknowledge the downside risks to GDP growth forecasts of 6.9 percent for 2016 and 6.5 percent for 2017, with the low Q1 GDP growth of 5.46 percent year-on-year being mainly due to reduced agricultural output

and the effects of El Nino expected to continue.

The slower growth of GDP in the first quarter and long-lasting effect of unfavourable weather conditions has impacted the GDP forecast of many other foreign institutions and organisations.

HSBC’s updated report Vietnam at a Glance stated that their 2016 and 2017 forecasts on Vietnam’s GDP have been downgraded to 6.3 percent and 6.6 percent respectively, from the initial predictions of 6.7 percent and 6.8 percent, for two main reasons. Firstly, the growth of 5.6 percent year-on-year in Q1/2016 was much weaker than expected. Secondly, newly proposed administrative tightening measures should keep credit growth contained, resulting in a moderation in investment relative to 2015.

In a more positive view, following a stronger than expected performance in 2015, ADB forecasts the Vietnam’s economy will remain stable in 2016, with growth of 6.7 percent, followed by a modest slowing of growth to 6.5 percent in 2017.

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Like other Asia Pacific countries, Myanmar has recently been hit by adverse weather conditions. As a result, the country’s economic growth declined to 7 percent in 2015–16, but is projected to increase to 8 percent in the coming time.

According to the World Bank, economic growth in Myanmar eased to 7 percent in real

terms in 2015–16 (year-end at March 31) due to flooding in July 2015 which affected some of the poorest and most vulnerable people in the country, and resulted in a slowdown in new investments. The floods contributed to rising food prices and slower private consumption growth. Private investment growth in 2015–16 also slowed due to a combination

of structural constraints and a moderation in new investments.

In a similar analysis, ADB stated in its latest report, Asian Development Outlook 2016, eased economic growth has arisen as a consequence of severe flooding and landslides that have damaged agricultural land and slowed growth in the People’s Republic of China (PRC), affecting trade and investment.

However, both organisations expect the impact of flooding on agriculture will lessen during this year. ADB forecast that Myanmar’s GDP growth will recover to 8.4 percent in FY2016 and record a similar pace in FY2017. FDI will be a major catalyst for economic growth, and is expected to get a boost from the successful completion of the national elections. Additional FDI is seen flowing into newly established special economic

zones and the rapidly expanding transport and energy industries.

However, transportation is one of Myanmar’s major challenges. Following decades of underinvestment, Myanmar’s transport infrastructure generally provides poor access to markets and services, therefore perpetuating poverty and regional inequality, and hampering business development.

Energy is another barrier to Myanmar’s development. According to the World Bank, structural constraints to investments will remain a major challenge to medium-term growth. Despite progress over the last four years, expansion of private business activities is now running into bottlenecks due to inadequate electricity supplies and limited access to capital, land, and skilled labour.

economic recovery despite barriers to growth

viet dUng

Myanmar

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According to Moody's Investors Service, Vietnam, rated as B1 stable, will remain a regional growth outperformer on the back of robust manufacturing activity and strong foreign direct investment flow.

In a report on growth outlook of ASEAN economies released on 22 March, Moody’s stated that the

growth outlook of ASEAN economies is likely to diverge during 2016 and 2017, due to general decreased global demand.

“The growth prospects of ASEAN's major export-orientated economies, including Singapore, Malaysia and Thailand, will remain weaker than those of more domestic demand-driven economies like Indonesia and the Philippines in 2016 and 2017,” says Rahul Ghosh, Senior Research Analyst and Vice President of Moody's.

Export growth is slumping across the region; however, the overall economic impact will vary based on the relative importance of trade to GDP.

According to Moody's, total trade - the sum of exports and imports - accounts for 346 percent, 131 percent and 130 percent of GDP in Singapore, Malaysia and Thailand, respectively, figures much higher than the 41 percent

recorded for Indonesia and 58 percent for the Philippines.

“Singapore, Malaysia and Thailand are susceptible to a prolonged period of subdued global demand due to both the export channel and weaker investment demand," says Ghosh, "We forecast G20 GDP growth at 2.6 percent in 2016, similar to last year and rising to only 2.9 percent in 2017. Furthermore, downside risks to global growth are increasing.”

Ghosh was quoted in Moody's newly-released edition of Inside ASEAN, which examines the implementation of major policy reforms in Malaysia that have mitigated the negative impact of

vietnam to remain a regional growth outperformer

lower oil prices on the government's fiscal position.

Moody's notes that external pressures - including increased capital flow volatility and consequent exchange rate depreciation - have led to a deterioration in Malaysia's growth and external metrics thereby supporting Moody's earlier decision to revise the sovereign rating outlook to stable from positive.

In Southeast Asia, Moody’s assigned Singapore the highest rating, at Aaa, Malaysia at A3, Thailand at Baa1, Indonesia at Baa3 and Philippines at Baa2. All these countries currently have a stable outlook.

Ho Chi Minh city - the most dynamic economic hub in Vietnam

mArket movements

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Visitors wishing to escape the bustle of the capital while discovering its history can head to the Central Sector of the Imperial Citadel of Thang Long, awarded UNESCO World Heritage Site status in time for Hanoi’s millennial anniversary in 2010.

of those. The most important and best-preserved part of the ancient Imperial Citadel is the Central Sector. Its universal values are reflected in its historical longevity, its continuous role as a seat of power, and its multiple cultural layers.

Excavation work took place between

Discovering Hanoi’s history

An nHien

2002 to 2004 and as a result many artifacts and items from the 6th to the 20th century belonging to the Ly, Nguyen, Tran and Le eras were found.

Foundations of old palaces, relics, ancient roads, ponds and wells were discovered. On top of these findings, archaeologists unearthed bronze coins, ceramics and pottery from China and other places in Asia, all of which provide evidence of the close trading relationships that existed in the area at that time.

The citadel is located next to Ba Dinh Square, opposite the Ho Chi Minh mausoleum

and near many important political buildings including the Vietnamese Presidential Palace. The ancient site was the political centre of the country for 13 consecutive centuries, serving as the capital of Vietnam for eight

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Discovering Hanoi’s history

The most recent excavations were carried out across the main road, unearthing the remains of earlier 11th century buildings. Remnants of wells, walls, pottery and sculptures were found.

Foreign visitors to the site are impressed by the relics’ meanings. The pictorial exhibits offer insightful texts, enabling visitors to derive an understanding of life when this historic site was at its prime.

Visitors should come with ample time,

as the site has much to offer those interested in the history of Vietnam. The complex is huge and each section has a different story to tell. There are archives from different eras, displaying war bunkers and archaeological sites.

As well as gaining insight into Hanoi’s history, visitors can enjoy a few hours of peace in the large calm space in the capital’s centre. The citadel is home to a collection of Bonzai trees, with an amazing array of varieties, some of which are very old. Numerous groups of students can be seen posing for graduation photos in the Citadel’s central area.

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Quan Lan Island has long been sparsely inhabited. Home to only a few thousand residents,

the island sees an influx of local tourists from Hanoi at weekends and holidays. The island is sandy with little in the way of forest, unlike neighbouring islands such as Ban Sen.

Quan Lan comprises of two villages, Quan Lan and Minh Chau. The island is roughly 20km long and very narrow - stretching only about 100m at its narrowest point. Quan Lan and Minh Chau villages lie about 12km apart.

Upon arrival, visitors’ first impressions of the islands usually come from the transport they use to journey from the pier – a three-wheeled vehicle known as a tuk tuk, which pass through the white sand, casuarina trees and cool breeze of the ocean. This is the most popular means of transportation and easily the best and most interesting way to visit the island.

Quan Lan village lies in the centre of the island, with a street of guesthouses, restaurants, and karaoke venues aimed at tourists. The island’s

three beaches - Quan Lan, Son Hao and Minh Chau - possess pristine beauty, with clear blue seawater and fine white sand banks that stretch along the rows of bright green casuarinas. The beaches of Minh Chau and Son Hau are claimed to be some of the best in northern Vietnam, by locals and foreigners alike.

Visitors are attracted to Quan Lan by the island’s breathtaking natural beauty, with stretches of soft white sand dunes lined by feathery casuarina. The sand here is different from sand elsewhere, it is whiter and sparkles in the sunshine and beneath the clear waters of Quan Lan Beach.

As well as stunning beaches, Quan Lan Island is home to a range of cultural relics, including Quan Lan Communal House - one of the two

Quan Lan- pristine island beauty Located 195km northeast of Hanoi in Quang Ninh Province, Quan Lan Island is fast becoming a popular holiday destination, boasting some of the best beaches in northern Vietnam.

tUe minH

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oldest communal houses in Quang Ninh Province. The island was the first trading port of Vietnam, established during the 11th century. Many vestiges of the ancient port together with relics of foundations of ancient architecture, such as water wells and a layer of broken ceramic and porcelain pieces, some metres thick, were found at Cai Nang Wharf, confirming that the port was once thriving and prosperous.

The communal house’s architecture consists of a forecourt and harem, with scale tiled roofs in the shape of two dragons flanking the moon. The house has 32 main pillars, 26 small pillars made of precious wood, and doors and tie beams finely carved with designs of dragons, phoenix and flowers.

Quan Lan currently has around 40 hotels and guesthouses with over 500

rooms, of which 20 are two-star hotels. Visitors can also opt to stay in resorts, with fresh green spaces overlooking the windy beaches.

Quan Lan island has two distinct seasons - a hot and humid summer and a cold, dry winter. The temperature varies between 15°C and 25°C. The tide rises on the island about 3.5- 4m/day. A pleasant day or two can be spent cycling through small villages and alongside pretty white sand dunes, enjoying the peace and quiet of island life and escaping the hustle and bustle of the city.

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On March 25 BIDV donated VND1 billion (USD44,500) to the authority of Ca Mau in an effort to assist the province to overcome the devastating consequences of the recent drought and salinisation.

Earlier, BIDV announced to donate VND23 billion (more than USD1 million) to 23 provinces in South

Central Vietnam, the Central Highlands and the Mekong Delta Region, including Ca Mau, to support the local government and people to recover from the drought and salinisation disaster.

BIDV is the first bank in the banking system to offer support to those provinces heavily affected by the adverse weather.

In mid-March, all 13 provinces and cities in the Mekong Delta Region experienced saltwater intrusion. The provinces experiencing the most serious effects were Ben Tre, Ca Mau and Kien Giang.

Mr. Phan Mong Thanh, Deputy

Chairman of Ca Mau Province’s Fatherland Front said that, since the announcement of the drought, the province has received financial support from the Vietnam Fatherland Fronts of Hanoi and Ho Chi Minh City as well as BIDV, with VND1 billion coming from each. It is hoped these funds can support the localities of Tran Van Thoi, U Minh and Thoi Binh to build freshwater pumping stations and systems which process saltwater

Bidv aids disasterrelief in ca mau

into freshwater for production and for use by local people in their daily activities.

The province is calling for sponsors, organisations and enterprises to join hands to support Ca Mau in overcoming problems arising from the current situation and assisting local farmers in the regions affected by the recent adverse weather conditions.