BIDV Review 01 by BIDV Review

Editor’s Letter Dear readers, Welcome to the first monthly edition of BIDV Review. As a public bank listed on Vietnam’s stock market since 2014, BIDV is a modern enterprise with the needs of customers at our core. This publication aims to foster and develop the links between BIDV and our deeply valued customers. BIDV has long placed great importance on open and clear communication. As such, the bank has issued its Vietnamese language magazine for over 20 years named “Dau tu – Phat trien” (Investment and Development). Given BIDV’s increasingly international customer and partner base, the time is now right for a dedicated English language publication. The two publications will be the important official information channels of BIDV to valued readers. Through BIDV Review, we will bring you timely information about Vietnam’s market movements, BIDV’s business operations, international investment, corporate social responsibility and much more besides. In this inaugural issue, we provide you with an insight into the bank’s considerable international expansion. BIDV has broadened its network into countries such as Laos, Cambodia, Myanmar, the Czech Republic and

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Russia, to name a few. What’s more, new associations in many of these countries have been established to ensure the robust performance of both BIDV and the wider economy of Vietnam and its partner nations. BIDV concluded 2014 with a lot of successes and outperformed many targets set for the year, laying a solid foundation for business development in the 2015-2020 period. Entering 2015, Vietnam will be active in international markets, with participation in FTAs, TPP and AEC. BIDV will be at the very forefront of this process and this publication will keep you abreast of the headway the bank and Vietnam as a whole makes. BIDV Review also looks beyond banking and the economy to provide readers with articles on the beauty of Vietnamese nature, culture and cuisines. We will also venture outside our own borders and introduce readers to the joys of the increasing number of countries in which BIDV does business. The whole team at BIDV Review strongly hopes that you enjoy reading this publication and we would be very pleased to hear any initial feedback on what you enjoy and what you would like to see more of. To close, we would like to wish all our customers the very best wishes for the coming Lunar New Year. ¡

CONTENTS

MESSAGE 4

BIDV HIGHLIGHTS

The bright future ahead

BIDVâ&#x20AC;&#x2122;s 2014: A pioneering year

Invaluable insights

Finishing strong

BIDV people - Asset number one

Aiming high in 2015

MARKET MOVEMENT 8

Ready for integration

INTERNATIONAL INVESTMENT

Tailoring for TPP

Stock accerleration

Taking stock

BIDV R EV IEW

Bolstering oversea investment

BIDC: Investing for success

LaoVietBank - a year of thriving business

BIDV boosts Myanmar investment

CONTENTS

PARTNERS

Expansion in Europe

Prof. Ngo Bao Chau & FMathLab

Together toward success

Strenthening Russia - Vietnam ties

PRODUCTS & SERVICES 37

BIDV and JCB join forces

Go further, go Platinum

Smoother banking, lower costs

Credit for fishermen

Stepping up in Japan

CSR 48

A time for giving

LIFESTYLE

ACHIEVEMENTS & AWARDS 42

Putting down roots

Eden of the Northwest

The buzz of floating commerce

The sound of Bai Choi

Going global

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MESSAGE

TRAN BAC HA BIDV Chairman

The bright future ahead

he global economic recession in the 2007 - 2008 period with peak in 2011-2012 continued to have a negative impact on developing economies throughout 2014. However, thanks to the consistently sound governance of the Government and the joint efforts of the business community and the banking sector, Vietnam’s economy has progressively improved. Confidence in the market has been strengthened which is built on the flexible and stable policies of the government, the local authorities’ support and businesses’ efforts. Vietnam’s economy has grown stably and its reputation has increasingly been bolstered in the region and the wider world. As the lifeblood of the economy, the banking sector in the past year made great breakthroughs that helped improve the economy’s health. Specifically, M2 grew at 15.65%; credit at 11.8% with an interest rate lower than that of the 2005-2006 period; and dollarization status was minimized. Monetary policy has been paired with a supportive fiscal policy, making great contributions to the amazing achievements of Vietnam’s economy, with CPI at 1.84% - the

lowest level in the past 10 years. FDI disbursement, foreign exchange reserves and exports were high at USD12 billion, USD38 billion and USD150 billion respectively. Against that backdrop, BIDV is proud to be a financial institution, which always supports, listens to, understands and shares opportunities with businesses and partners. Such efforts made by business community and the banking sector were rewarded. Business operations of enterprises and partners have been stable and profitable which have helped improve the life of workers. The market is on the uptrend. BIDV has achieved good results thanks to solid management and governance on three aspects including doing business; acting as a means of the government; and strengthening reputation. These form a solid foundation for BIDV to overcome challenges to stand firm and grow strongly. Regarding business operations, BIDV has achieved outstanding results with total assets of VND655,000 billion (USD30.5 billion); loans outstanding reaching VND461,000 billion (USD21.5 billion); net service income of over VND2,800 billion (USD130.2 million);

BIDV R EV IEW

profit before tax at more than VND6,000 billion (USD279 million), up 20% year-on-year; and a dividend ratio no lower than 9.2%. Further to this, as a means of the government, BIDV always adheres to and proactively implements the guidelines and policies of the Government and industry. In terms of the implementation of socio-economic development goals, in 2014 BIDV proactively extended credit to priority areas and boosted the deployment of measures to remove obstacles to support businesses. As president of three associations, namely AVIC, AVIM, and AVIL, BIDV continues to make significant contributions to increase the volume, quality and efficiency of Vietnam’s investment projects in Laos, Cambodia and Myanmar. Despite the general climate of 2014 in which survival was considered a success, BIDV’s rating was still upgraded one notch by Moody’s. The bank was also evaluated as having a wide branch network and one of the best payment systems in Vietnam. The business community recognized BIDV’s sincere support and help in overcoming difficulties to survive. The government of Vietnam

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appreciated the bank for successfully implementing the political tasks assigned. In addition, the governments of neighboring countries also recognized BIDV for its great contributions to their socio-economic development and stronger friendship with Vietnam. We concluded the year 2104 with a lot of confidence while concerns remaining. The economy has bounced back and the policies of the government have been strongly and comprehensively reformed, creating a favorable and liberal environment for doing business, trade and investment. Given the severe competition, Vietnamese businesses unite and share experiences to overcome difficulties, stand firm and grow.

the socio-economic development plan in 2015. Accordingly, the government will continue strengthening macroeconomy, removing difficulties for businesses, restructuring the economy and improving competitiveness for higher growth in 2015. The government will also implement flexible monetary and fiscal policies; reduce NPL ratio and continue restructuring state-owned enterprises, and more, paving the way for a bright future for the country.

2015 promises a positive economic outlook thanks to the achievements of 2014. Vietnam will participate in a number of new free trade agreements in 2015, notably the ASEAN Economic Community and the Trans-Pacific Partnership. These will provide the conditions for Vietnam to have deeper international economic integration.

For BIDV, 2015 is the last year of a 5-year plan (2011 – 2015) and the Bank will strive to successfully fulfill the business goals set for the year, laying a firm foundation for the 2016-2020 period with strategic direction to 2030. BIDV also plays an active role in supporting the restructuring of credit institutions according to the direction of the government and the State Bank. Given the business environment in 2015 which will be mixed with opportunities and challenges, BIDV will utilize all resources and aggressively implement the business plan right from the start of the year.

On 3 January 2015, the government of Vietnam issued Resolution No. 01/NQ-CP outlining key tasks and solutions to the implementation of

Building on the achievements of the previous year, in 2015, BIDV will continue to be at the forefront of implementing three tasks. First,

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BIDV will support and strengthen the connection between businesses and banks, acting for the good of the community and the society. Second, the Bank will perform all tasks as directed by the Government and the State Bank. Third, BIDV will improve business efficiency and internal governance capacity, contributing to the successful implementation of three strategic breakthroughs of the Government (institutional reform, quality of human resources and infrastructure) in association with restructuring and improving the economic competitiveness. With 2015 being “the Year of Enterprise”, BIDV will continue to strongly innovate. The Bank will also prepare sufficient resources and share opportunities with other businesses and customers in all sectors. BIDV considers the collaboration between banks and businesses a key factor for sustainable development, integration, and brand development in domestic and foreign markets. As the Year of the Goat draws close, with confidence in the brighter economic outlook, on behalf of the BIDV, I would like to extend my best wishes to you for sustainable successes and prosperity. ¡

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Aiming high in 2015 What were the key successes for BIDV in 2014? The main goal of BIDV in 2014 was to surpass business targets. With yearon-year growth of 19-22% in total assets, deposits, outstanding loans and profit before tax, plus the improvement of credit quality, productivity, competitiveness and market share, BIDV continued to be the leading commercial bank in the market.

BIDV CEO, Phan Duc Tu, shares his thoughts about BIDVâ&#x20AC;&#x2122;s performance in 2014 and the bankâ&#x20AC;&#x2122;s plans and prospects for the coming months

BIDV implemented monetary policies in accordance with the Stateâ&#x20AC;&#x2122;s requirements; contributed to a stabilized macro economy; supplied capital to the market; eased the difficulties of enterprises; developed domestic and global markets; and contributed to social security in tandem with a wide CSR program. 2014 was a milestone year in terms of international investment. BIDV consolidated joint venture operations. The bank also expanded and enhanced its overseas representatives.

BIDV R EV IEW

Furthermore, it maintained and developed relationships with more than 2,000 financial institutions all over the world. BIDV became the most active bank operating in international markets with an extensive overseas network. In terms of corporate governance, BIDV applied international practices and has made important moves to ensure effectiveness and sustainable development for the system. What will be the main opportunities and challenges for BIDV in 2015? 2015 is an important year as the banking system finishes the first phase of the restructuring scheme for the period 2013-2015. In addition, Vietnam will be taking part in a lot of bilateral and multilateral agreements in 2015. Further, the Asean Economic Community is going to be established and Vietnam will become more open after joining the WTO. The domestic economy is forecast to grow further and the State Bank will continue to implement monetary policy strictly, but flexibly to ensure macro economic stability and support economic growth. Moreover, credit institutions will begin the second phase of a restructuring scheme, heading

MESSAGE

towards international practices; this in turn means BIDV must adopt a suitable integration strategy. Although BIDV has advantages in the market in terms of market share, total assets, customer base, network, human resources, technology as well as branding and experience, the bank still faces many challenges, including the coordination among departments, divisions and branches and lastly administrative procedures. It is fair to say that we have not taken full advantages of our resources. In 2015, Vietnam’s banking system will be more active and competitive. Banks that implement proactive solutions in response to challenges and grasp opportunities will be the winners. What will be BIDV’s strategy to realize the bank’s 2015 plan? First, BIDV will focus on improving

financial capacity and profitability, raising charter capital, managing assets and liability balance, improving asset structure, reducing assets with high risk and low return, and reducing loans to customers and sectors with high insolvency risk.

focus on retail banking. BIDV will restructure transactions offices into direct sale agencies, increasing the competitiveness of the system. We will also make a huge improvement in our distributions system by applying modern technology.

Second, BIDV will robustly implement phase two of the State Bank’s restructuring scheme, including acquisition of weak credit institutions as required by the State Bank.

Fifth, BIDV will be consistent in its business focus on effectiveness and quality. The bank will apply strict supervision and inspection procedures and evaluate and manage the progress of the plan. There will be a focus on inspection and surveillance operations at each stage of the business process in accordance with BIDV’s code of ethics and corporate culture as in banking operation, trust is the vital principle.

Third, to enhance asset quality, BIDV will restructure its asset portfolio, strictly control credit quality, ensure system safety, focus on loans to prioritised areas of the country, and continue to create conditions for customers to access capital for production and business. Fourth, BIDV will allocate capital to small and medium sized enterprises, FDI and retail customers, plus

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With the close guidance of BIDV’s management and the collaboration and determined effort of the whole system, the bank will successfully finish the 2011 – 2015 period. ¡

MARKET MOVEMENT

TRANG TRINH

Ready for integration Vietnam is in the midst of comprehensive integration into regional and international markets. Negotiations are underway for Free Trade Agreements (FTA) including the Trans-Pacific Partnership (TPP), the Vietnam and the Russia – Belarus – Kazakhstan Customs Union (VCUFTA) as well as between Vietnam and the EU (EVFTA). Participation in the ASEAN Economic Community (AEC) is also important. It is hoped that this integration will create fair conditions for banks and financial institutions to develop. However, to take full advantage of the potential benefits, credit institutions must set integration as a key target in their operational plans.

n comparison with Indonesia, Philippines, Malaysia, Singapore and Thailand, Vietnam’s banking industry is still small in terms of total assets, capital adequacy ratio (CAR) and return on assets (ROA), while its non-performing loan ratio is high. According to data from the BIDV Research Center, average ROA of Vietnam banks is lower than 0.5%, while the average figure of banks in the region is 1.9%. Among them, Indonesia’s banks have the highest return with an ROA of 3.1%, joint second are Malaysia and the Philippines (1.6%), while Singapore and Thailand are equal at 1.15%.

BIDV R EV IEW

The financial market development of each country is also different. In Singapore, Malaysia, Indonesia, the Philippines and Thailand, there are commercial banks, investment banks, non-bank financial organizations and financial institutions which operate mainly in capital markets. In contrast, financial markets in some countries are still in the early stages of development. Myanmar has not established a stock market and only issued the first domestic credit card in 2013. Vietnam is assessed as an averagely-developed market. In addition, the distribution of branches and representative offices is still erratic. No commercial bank in the ASEAN union has branches or representative offices in all other ASEAN member states. Meanwhile, global banks such as Standard Chartered, HSBC and Citibank do have an extensive network all over the region. Currently, there are only four Vietnamese commercial banks participating in Laos financial market, five in Cambodia, one in Myanmar (BIDV’s representative office) and one in Singapore (Vietcombank’s representative office). BIDV is the sole bank to operate in the Laos, Cambodia and Myanmar. Clearly, Vietnam’s

MARKET MOVEMENT

banking system has lots of potential to expand in overseas countries. However, integration also brings lots of challenges with the fluctuation of global financial markets. Integration means the domestic market will be more sensitive to the volatility of the regional and global market, especially the exchange rate and interest rate.

Minh Ngoc has said that integration would go together with more M&A transactions, which would bring a vital source of capital into Vietnam’s banking industry.

BIDV AND INTEGRATION

According to Tran Phuong, Senior Executive Vice President of BIDV, BIDV sees integration as a key strategy Moreover, the participation of foreign to expand the bank’s banks with experience regional markets. The and modern technology basis for this strategy is According to data will put domestic banks BIDV’s quality workforce. from the BIDV at risk of market share In addition, BIDV has Research Center, loss. If enterprises do not a deep understanding average ROA of have rational business of the markets in the Vietnam banks is strategy in the integration region - BIDV has 15 years always lower than period, they might report of experience in Laos, losses which seriously 0.5%, while the six years in Cambodia affects the credit quality average ﬁgure of and experience in other of banks, raising nonbanks in the region countries. performing loans. is 1.9%. Therefore, according to experts, besides proactively preparing reasonable funds for adequate provision, raising financial capacity is a must in the period of integration. Banks should increase capital based on Basel II by attracting more deposits, issuing additional shares or M&A. Vietnam banking expert, Dr Phan

As the chairman of AVIC, AVIM and AVIL, BIDV has an overview of all these markets as well as the opportunities inside them. BIDV also actively supports Vietnamese investors in overseas countries, and consults the Government on legal framework adjustment to create mechanisms encouraging Vietnam investors to expand to external market.

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To take advantage of integration opportunities, BIDV reviews the bank’s strategy and prepares necessary conditions for breakthroughs, especially financial capacity. Vietnamese banks in general and BIDV in particular are constantly looking for opportunities to raise equity capital. In 2015, BIDV will issue additional shares to existing shareholders and secondary bonds to increase Tier 2 capital. BIDV will also focus on restructuring business operations to enhance profitability. Moreover, BIDV is developing a competitive service and product list that meets the diversified demands of both retail and corporate customers, focusing on FDI plus small and medium sized enterprises. BIDV will focus on developing retail credit to take advantage of Vietnam’s increasing income per capita and demand for more professional products and services. In terms of credit by sector, BIDV has focused on raising portfolio management capacity, defining credit limits by industry and supporting Vietnamese enterprises to invest in overseas markets. ¡

MARKET MOVEMENT

QUYNH CHI

Tailoring for TPP The Trans-Pacific Partnership (TPP) is expected to be concluded and signed in 2015, bringing valuable opportunities to Vietnam’s garment, textile and footwear companies to expand market share, attract investment and high quality human resources. Thus, the coordination between banks and enterprises to prepare capital is necessary to turn opportunities into profit. RULES OF ORIGIN, COMPETITION AND COST According to a recent report from BIDV Research Center, Vietnam’s garment, textile and footwear firms will face three main challenges with TPP. Among these, Rules of Origin is key as Vietnam has to import 80% of its input materials from China and South Korea - countries which do not take part in TPP negotiations. Meanwhile, Rules of Origin requires the TPP nation to use TPP memberproduced yarn in textiles in order to receive duty-free access.

Specifically, Kyungbang (South Korea) invested USD40 million to build a fiber plant in Binh Duong (Vietnam). The company also plans to invest an additional USD160 million to develop

In addition, Vietnam’s firms have to deal with competition pressure from foreign firms. In recent years, FDI textile and garment firms have often dominated the domestic market. With an eye on opportunities from TPP, many enterprises from non-TPP countries such as South Korea, Taiwan and Hong Kong rushed to invest in Vietnam.

BIDV R EV IEW

the plant into the biggest in Asia. Other investors, such as Texhong (Hong Kong), Mitsui (Japan), Sunrise (South Korea) and Hyosung (South Korea) have also pumped capital into Vietnam.

MARKET MOVEMENT

Based on BIDV Research Center information, Vietnam’s inherent bottleneck is resource limitation. Most of Vietnam’s garment, textile and footwear firms are small scale, while for input material and output market they depend on foreign partners. To be independent in terms of input material and to access foreign markets without mediating foreign firms, Vietnam enterprises must make huge investments, which is not their strength. Therefore, the coordination between credit institutions and enterprises is necessary to raise funds for investment and expansion.

PROACTIVE ACTION PLANS In reality, to deal with challenges arising from TPP, Vietnam’s garment, textile and footwear firms already have their own action plans. Accordingly, in the short-term, Vietnamese firms focus on investment to expand production scale so they can supply input material themselves. In 2014, BIDV signed an agreement to lend Vinatex USD600 million in the period 2014-2016. The loan is used for improving the efficiency of Vinatex’s production by establishing a garment and textile complex in the central province of Binh Dinh with a end-toend production process.

Vinatex’s borrowings include a shortterm loan of USD250 million and a medium and long-term loan of USD350 million. BIDV is the first commercial bank in Vietnam to commit funding 70% of the total value of garment projects for domestic firms to prepare for TPP.

Besides investing in production scale and quality, to prepare for TPP Vietnamese firms also coordinate with enterprises in the domestic industry and with foreign businesses. Many domestic firms have already joined hands with foreign firms for permanent processing contracts.

According to Tran Quang Nghi, Chairman of Vinatex, TPP is under negotiation and there are still many issues to deal with before coming to any conclusions. However, Vinatex is already prepared to welcome the international investment wave into Vietnam.

Vinatex cooperated with Foshan Sanshui Jialida (China) and Luenthai (Hongkong) to establish the Rang Dong Garment & Textile Industrial Park in Nam Dinh province. In the coming time with more positive signals of an early TPP conclusion, there will be more partners flocking to the Vietnam market. Therefore, BIDV Research Center suggested that enterprises should actively seek partners to have more opportunities for production expansion.

“Even though TPP has not been concluded, Vinatex is still taking the initiative in input materials and investing to export. With international agreements to be concluded in 2015, we believe that this year will mark a developmental milestone in the garment and textile industry. Therefore, the capital from banks is very necessary in this period,” Nghi said. Tran Bac Ha, Chairman of BIDV said that with BIDV’s support, Vinatex in particular and Vietnam textile industry in general had the right conditions to prepare carefully for the participation in TPP.

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According to experts from the Center, another solution to TPP challenges is focusing more on foreign markets. In the short term, domestic enterprises should gain more experience as well as enhance production capacity, improve research and development activities, especially branding activities in overseas markets. Then in the long term, Vietnamese firms can exploit international markets with diverse demands and scope for huge profits. ¡

MARKET MOVEMENT

THANH HUYEN

Stock acceleration

n 2014, there were macro economy issues that affected stock market movement, such as the East Sea incident, the sharp fall in world oil price and monetary policy adjustments. Despite this, Vietnam’s stock market still moved in a positive direction in terms of index rise, stability, and transaction volume. These facts signal that in 2015 Vietnam’s stock market will show strong growth with improved liquidity and more trust from investors. In addition, in 2015 the macro economy is forecast to continue growing and listed companies are expected to report better business results. Besides, the State’s equitisation requirements for stateowned enterprises together with solutions to develop the stock market will create an environment conducive to considerable gains. In 2014, Vietnam’s stock market was generally judged to be attractive in comparison with others in the region. Currently, VN Index is being traded at around 580-590 points and at a P/E of 14.6x, which is lower than figure of Indonesia (19.5x), Philippines (20.5x), Thailand (17.7x) and Malaysia (16.2x). The 5-year and 10-year P/E of VN Index is 12x and 16x, respectively.

BANKING STOCKS KEY Together with a bullish forecast for the macro economy and stock market, investors are putting their faith in banking stocks. In December 2014, Moody’s changed the outlook for the Vietnamese banking system from

negative to stable, reflecting the increased stability in the operating environment. Moody’s also looked at how bank creditworthiness will evolve over the next 12-18 months, judging the banking system in terms of stable operating environment, improving funding and liquidity and stable systemic support. Some giant banks such as BIDV and Vietcombank announced their outstanding business results, further boosting investor confidence for 2015. On the first trading days of 2015, banking stocks performed robustly. Transaction volume and the price of banking stocks increased significantly with notable cash flow from foreign

BIDV R EV IEW

investors. Shares of Vietcombank, BIDV and Military Bank were worthy of note with growth of 16%, 14% and 9%, respectively. Factors contributing to these improvements include the State Bank’s new requirement on loan loss provision, assets and debts classification. Moreover, the State Bank’s Circular 36/2014/TT-NHNN regulating prudential ratios for the operations of credit institutions is expected to guide banks to operate more effectively and safely. The most troublesome area is non-performing loans; however, by proactively making provision for these over the last three years, the banking system is gradually tackling this issue.

MARKET MOVEMENT

the increase in contributions from services. Currently, the bank has more than 650 transaction points, 1,500 ATM and 7,000 POS and a modern, high-performance e-banking system.

BIDV PERFORMANCE

Looking at the impressive movement of BIDV in the first trading sessions of 2015, we can see that BIDV’s ticker is attracting more cash flow from One year after domestic and foreign officially being listed investors. Specifically, on the stock market, the matching volume of BIDV has conﬁrmed BIDV’s shares reached 4 itself as a bank of million shares/session, while foreign investors stable and sustainable bought up to 1 million growth, fulﬁlling shares/session. commitments to its

BIDV also committed to paying a dividend higher than the average savings’ interest rate for a 12-month term. Therefore, BIDV’s 2014 dividend is no lower than 9% - higher than the current average deposit rate of 6-7%.

shareholders.

According to analysts, BIDV’s shares are attractive to investors as BIDV is the second largest listed bank in terms of total assets. The bank has a wide network and proactive strategy to integrate into Southeast Asian countries. BIDV’s business strategy focuses on sustainable development by identifying both corporate and individual customers. The bank’s profit structure has improved with

In comparison with banks that have the largest market capitalization value such as Vietcombank, Vietinbank, BIDV, Sacombank and Military Bank; BIDV’s shares continued to post attractive financial ratios. According to Bloomberg and KT Zmico’s estimates, 2015 P/E and ROE of BIDV respectively are expected to

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be10.7x and 11% - higher than the average of the five largest banks. Besides impressive 2014-business results as well as a positive 2015 business plan, investors can expect to witness three significant changes at BIDV in 2015. Firstly, BIDV plans to reduce its state-owned stake to 65% by selling stakes to foreign investors, but foreign stakes will not exceed 30% of the bank’s total charter capital. Secondly, BIDV will be one of the first 10 banks to apply Basel II based on the State Bank’s selection for the period 2015 – 2018. This is an important and positive step in the risk management capacity of Vietnam’s banking system. Thirdly, BIDV is targeting retail markets. With an extensive network, BIDV has advantages in serving retail customers. In fact, in 2014, BIDV’s total retail customer base reached 6.5 million, retail loans reached a threeyear high of 36%, and deposits from individual customers grew 20% yoy. ¡

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BIDV RESEARCH CENTER

Taking stock I

n 2014, with the resurgence of the world economy in association with the aggressive implementation of governance measures, including the Governmentâ&#x20AC;&#x2122;s Resolution No. 1, Vietnam has achieved encouraging results. It has fulfilled the socioeconomic objectives of the National Assembly and the Government, which include macroeconomic stability, inflation curbing and sector re-structuring associated with an innovative growth model. In this context, the BIDV Research Center has selected ten key indicators from 2014 and highlighted three key challenges.

10 INDICATORS 1. The economy in 2014 recovered, albeit at a very slow pace. Vietnamâ&#x20AC;&#x2122;s GDP growth reached 5.98% compared with 2013. This was the highest rate since 2011. Industrial production also bounced back. 2. In 2014, inflation was curbed with a low consumer price index. In December 2014 CPI fell 0.24% month-on-month, but it increased 1.84% year-on-year, with an increase of 4.09% over 2013.

3. The trade balance saw a surplus for the third consecutive year. Total export turnover was over USD150 billion, up 13.6% yoy; the foreign investment sector (including crude oil) increased by 15.2% while the local sector increased by 10.4% yoy. Total import turnover was over USD148 billion, up 12.1% yoy. The trade surplus of the whole year was nearly USD2 billion, equal to 1.3% of total export turnover. 4. Foreign Direct Investment (FDI) in 2014 reached USD12.35 billion, up 7.4% over the previous year. The number of new projects increased by 24.5% with newly registered capital increasing by 9.6% over the previous year; the number of projects increasing capital grew 25.8%. 5. The money market was stable with positive credit growth: in 2014, the State Bank always listened closely to market developments and made timely interventions. Therefore, the money market operated stably and market liquidity was good with a downtrend of interest rates. The low interest rates contributed to lower financial costs of businesses.

BIDV R EV IEW

Credit growth in 2014 continued to be negatively impacted by factors including low credit demand, bad debts, and decreasing real estate and customer quality. 6. The foreign exchange market was stable and well controlled. The State Bank only increased the USD/VND exchange rate by 1 percent on 18 June 2014 to support exports. 7. The capital market saw positive changes. Stock markets in 2014 experienced volatilities in early May 2014 due to the East Sea incident. However the stock market in general had a good year in which the VNIndex recorded a 5-year peak at the end of August 2014, increasing by 5.7% on 26 December 2014; HNX-Index soared 19.6% against end-2013. Capital raised through the stock market reached about VND240,000 billion (USD11.16 billion). 8. The real estate market continued to see changes. As of 20 November 2014, the total value of real estate inventory was about VND77,811 billion (USD3.6 billion), down VND50,737 billion (USD2.36 billion) (or 39.47%) compared with the first quarter of 2013 and

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down VND16,647 billion (or USD774.28 million), up 17.62 % compared with the end of 2013. 9. The business sector continued to be refined in a positive direction and gradually overcame the difficulties of the previous period. There were 74,842 newly registered businesses with a total registered capital of VND432.2 trillion (USD20.1 billion), down 2.7% with respect to the number of businesses, but up 8.4% with respect to the registered capital compared to the previous year. Moreover, there were 15,419 businesses which resumed operations. 10. Poverty reduction and job creation fared better than in 2013. Livelihoods were more stable and hunger was significantly reduced compared with 2013.

3 CHALLENGES 1. Demand was weak and growth quality was not high. Total retail sales of goods and services in 2014 increased by 10.6%, lower than that in 2013 (12.6%). 2. Investment and public spending

increased, increasing public debt. Vietnam’s public debt increased from 50% of GDP in 2011 to 50.8%, 54.2%, and 60.3% in 2012, 2013 and 2014, respectively. 3. Handling bad debt improved, while difficulties remained. As reported by credit institutions, the NPL ratio as of the end of September 2014 was about 3.8%. As of 23 December 2014, Vietnam Asset Management Company (VAMC) had bought VND123,000 billion (USD5.72 billion) of outstanding loan principal.

OUTLOOK FOR 2015 The main economic indicators set for 2015 by the National Assembly are as follows: GDP at 6.2%; CPI at 5%; and export growth at 5%. BIDV Research Center predicts that in 2015, Vietnam’s economy will grow stably; the Government will continue fiscal and monetary easing to serve the local market; and the Government will continue to invest in building infrastructure. Overall, economic restructuring will see positive changes.

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Regarding inflation, the consumer price index in 2015 is forecast to be affected by the following factors: increasing price pressure due to increased M2 and improved aggregate demand; and the Government’s continued fiscal and monetary easing. M2 is expected to increase by 16-18% and credit by 13-15%. Given these factors, the inflation rate in 2015 is forecast to be 4-4.5%. Regarding import and export, import turnover in 2015 is estimated to be USD169-172 billion. Hence, the trade balance deficit could be approximately USD6-8 billion. Regarding FDI, ODA and remittances, in 2015 FDI disbursement will continue to increase and could reach USD13-14 billion. Overall, ODA in 2015 will continue on its downtrend and is expected to reach USD4-4.5 billion. According to the State Bank, credit growth in 2015 could be at 13-15%. This is considered a reasonable rate that matches other projections on macroeconomic indicators and meets the capital requirements of the economy. ¡

BIDV HIGHLIGHTS

BIDV’s 2014: In 2014, together with the improved economy, the banking system saw a wealth of positive development contributing to macroeconomic stability. As a leading financial institution, BIDV had a very successful year, laying a solid foundation for 2015. Here, we select ten of BIDV’s key successes from the previous twelve months.

BIDV met business targets, showed stable and sustainable development and established an important position in the ﬁnancial market.

Actively and ﬂexibly implemented monetary policy, contributing to the macro economic stability target set by the Government and the State Bank.

To comply with the Government’s Resolution 01/NQ-CP on major tasks and solutions to socio-economic development and State Bank’s Directive 01/CT-NHNN on monetary policy implementation in 2014, BIDV provided many pratical and effective solutions and programs to support enterprises and the economy. As of 31 December 2014, BIDV’s total assets stood at VND655 trillion (up 18%), deposits hit VND502 trillion (up 20%) and profit before tax amounted to VND6,065 billion (up 20%). BIDV’s financial ratios were all within safe limits, with CAR at 9.07%, ROA at 0.8% and ROE at 14.4%. Furthermore, the bank’s non-performing ratio decreased. Importantly, BIDV’s total outstanding loans reached VND461 trillion (up 18.9%) providing evidence of BIDV’s pioneering position and extensive market share. 2014 was also a year of retail banking as BIDV’s retail loans saw breakthrough growth, reaching a three-year-high of nearly 36%, while deposits from retail customers rose 20%. Furthermore, retail services grew 24%, retail services income/ total services income reached 21% and retail customers increased sharply, reaching 6.5 million.

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Specifically, BIDV cut the lending rate three times to help reduce costs for enterprises; the average cut was 1.69% p.a. At the same time, BIDV launched 15 credit packages amounting to trillions of VND for the Government’s prioritized areas, such as import-export, fishery and social housing development. In light of Decree 67/2014/ND-CP which provided basic policies to boost fisheries development, BIDV was the first bank to spend VND3,000 billion supporting fishermen to build ships for offshore fishing and develop the marine economy.

BIDV HIGHLIGHTS

A pioneering year

Acting as chairman of AVIC, AVIM and AVIL, BIDV continued contributing to the socioeconomic development of neigboring countries as well as to national security and defense.

BIDV continued to play an important role in connecting and supporting Vietnamese enterprises to invest in overseas markets. 2014 is the 15th year of the Laos-Vietnam Joint Venture Bank (LVB) and the 5th year of BIDV investment and trade in Cambodia. In Myanmar – a new and potential-filled market - BIDV became more deeply involved by establishing a BIDV financial company in Yangon and signing an agreement to loan USD30 million to Yangon-based Small and Medium Industrial Bank (SMIDB), confirming BIDV’s long-term commitment to Myanmar’s financial market. At the same time, BIDV also consulted the Laos, Cambodia and Myanmar Governments on macro economic policy, further confirming its position of trust with these nations.

Listed on the stock market, BIDV officially became public bank.

In the context of a fluctuating securities market, BIDV stocks were successfully listed on the Ho Chi Minh City Stock Exchange (HOSE) on 24 January 2014 with the stock ticker ‘BID’. On the first trading day, over 8.4 million shares of BIDV were traded, which accounted for 10% of total shares traded on HOSE and 60% of total transferred banking stocks.

Implemented corporate governance in accordance with international standards.

BIDV successfully implemented the first phase of Balanced Scorecard (BSC) and Key Strategic Initiative (KSI), which helped raise corporate management ability and effectiveness. This project plays an important role in implementing the bank’s business strategy as well as achieving business goals for the period 2013-2015, with a vision to 2020. At the same time, BIDV continued focusing on enhancing risk management capacity based on Basel II standard, speeding up its restructure plan and enhancing corporate governance to meet international standards and practices.

BIDV’s successful listing saw the banking sector become the industry with the largest market capitalization at 27%, offering more opportunities for long-term strategic partners to become involved in Vietnam’s banking system. Also in 2014, BIDV successfully issued VND7,300 billion worth of bonds to raise Tier 2 capital, contributing to the solid and safe operation of BIDV.

BIDV also held many investment promotion programs to enhance international trade in potential markets such as Russia, Europe and Northeast Asia. BIDV made important progress in intergration into the Japanese market and making links between Japan and Vietnam.

In 2014, BIDV made significant improvements in human resource management and recruiting. Accordingly, 100 staff members were appointed to leading positions, 17,000 were trained, 3,000 were rotated and 1,000 new employees were recruited.

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BIDV HIGHLIGHTS

Invested more in research activities, providing analysis, forecasts and recommendations on macro economy management and market economic policies.

BIDV’s reports from the Research Center are an independent, objective, credible and useful reference source for the bank’s managment as well as for policymakers in macroeconomy management. In 2014, BIDV released 108 reports on important economic issues such as the international and regional economy, finance and banking issues and Vietnam’s East Sea tensions. BIDV also provided reports on the economy of Laos, Cambodia, Myanmar, Russia, Korea and Japan, which were highly appreciated by Governments, ministries and other research institutions due to their analysis and forecast quality.

Successfully ﬁnished Rural Finance Project III disbursement.

Rural Finance Project III contributed significantly to Vietnam’s success in 2014 ODA disbursement. Deputy Prime Minister, Hoang Trung Hai, stated it had the best result among others in Vietnam. Vietnam was also assessed to be the most successful country in the implementation of the Rural Finance Project model by the World Bank. From an initial fund of USD200 million (equivalent to more than VND4,000 billion), in June 2014 the total fund for Rural Finance Project III grew to USD487 million (VND9,820 billion), contributing much to the improvement in farmers’ living conditions across the country. The Rural Finance Project III and the chain of Rural Finance Projects finished, but the capital source will continue to be loaned to 2033, raising estimated gross investment of nearly USD 5 billion from the working funds managed by BIDV. Thus, in decades to come, the benefits of the project will continue to be felt strongly economically, socially and environmentaly.

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Joint venture, BIDV MetLife officially launched in Vietnam and BIDV became the ﬁrst bank with comprehensive bancassurance operation in Vietnam.

BIDV MetLife is a join venture between BIDV and Metlife, a leading global life insurance provider. It was licensed by the Ministry of Finance with charter capital of VND1,000 billion, 60% of which was contributed by MetLife, 35% from BIDV and 5% from BIC. The partnership involves an exclusive bancassurance agreement whereby BIDV MetLife’s products will be made available through BIDV’s bank network. Operating began on 3 November 2014, with BIDV Metlife focused on providing life insurance - reinsurance products and professional, new bancassurance services which meet the diverse demand of customers at a reasonable fee, ensuring maximum benefit. By participating in the life insurance market, BIDV compeletes its insurance operation model which provides customers more choices of health and business insurance.

BIDV HIGHLIGHTS

BIDV’s international credit ratings were upgraded, while the bank continued to receive more international and national awards.

In 2014, Moody’s Investors Service upgraded BIDV’s long-term local and foreign currency deposit and issuer ratings by one notch. Moody’s assessed that BIDV had an extensive network and the best payment system in Vietnam. International credit rating agency Standard & Poor’s held steady their ratings of BIDV, showing the bank’s stable operation as well as increasing international trust in it. 2014 was also a year of awards as BIDV was honored by many domestic and international organisations. The bank was honored as National Brand for the third time and among the top 10 enterprises that contributed the most corporate tax for the fifth time. BIDV also received the Best Commercial Bank award from International Banker; the Best Domestic Cash Management Bank from Asian Banker; Best Domestic Provider of Foreign Exchange Services and Best for Foreign Exchange Research and Market Coverage in Vietnam by Asiamoney Magazine.

Effective CSR

In the context of lots of natural disasters all over the world, BIDV was the most active bank in CSR activities. In 2014, BIDV sponsored hundreds of classrooms and houses, dozens of medical aid stations as well as ambulances to hospitals. BIDV also held many activities to support and develop the education system and help provincial people deal with natural disaster consequences. Alongside this, BIDV actively conducted CSR activities in neighboring countries such as Laos, Cambodia and Myanmar to help their citizens from disasters. Regarding the HD981 oil rig, BIDV implemented a program called ‘Joining hands to protect EastSea sovereignty, supporting fishermen in remote waters of the country’. This aimed to support maritime police forces and fishermen to perform their duties and protect the sea-island sovereignty of the country. BIDV has also continually paid attention to improving the physical and spiritual life of employees to inspire them and make them feel comfortable and in their job.

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In 2015 the market is expected to be more positive and BIDV will continue its role in promoting the stability and the development of the nation in general and the banking industry in particular. With strong capacity, consistent determination, professional human resources, modern techonogy, as well as the trust of partners and customers, BIDV is confident to step into 2015 – a year of a wealth and future successes. ¡

BIDV HIGHLIGHTS

NGUYEN MANH BIDV Research Center

Invaluable insights BIDV’s 2014 was full of achievements, among which the work of the BIDV Research Center stood out, helping to mark the bank out from its competition

n May 2008, in the context of the US financial crisis which significantly affected the global economy as well as Vietnam, BIDV’s Chairman decided to establish an independent research team. The team was assigned to provide solutions and information to BIDV’s management board. Besides that, the BIDV research team was to be a useful reference source for Government agencies.

their research tasks. Therefore, it was hard for the research team to operate professionally.

COMING OF AGE In December 2012, BIDV decided to upgrade the research team as the BIDV Research Center under the Board of Management. This

Overcoming the difficulties in the first phase of operation, the research team quickly caught up with market movements. From 2008 to 2012, the team released a considerable number of reports about Vietnam and the global economy. By exchanging information and experience with domestic and international experts and financial institutions, report quality was improved. However, the team still encountered lots of difficulties, such as lack of information, experience and connections with other research centers. Moreover, team members were working for other departments and were not able to focus 100% on

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was a breakthrough milestone in the development of the research center’s operation. After two years of development, BIDV Research center has 21 members which are divided into four groups, including Macro Economy, Finance & Banking, Industries, and International Economy.

BIDV HIGHLIGHTS

The center’s staff includes senior, experienced and professional members who are selected according to robust criteria. All of the center’s staff have a master degree or higher; two hold a doctorate and many are joining post-graduate programs. Currently, the research center continues to hire more foreign experts to strengthen the capacity of the workforce.

INFORMATIVE REPORTS 800 days since its establishment, BIDV Research Center has released 163 reports about the domestic and global economy, finance and banking and other industries in Vietnam. The Center has conducted periodical reports, such as the monthly macro economy report and the monthly report assessing BIDV business results. Besides these periodical reports, BIDV research center has also issued specialized reports on critical issues of the economy and finance and banking sector. 13 reports on Vietnam East Sea tensions were worthy of

note as they were released in May 2014, when there were many disputes around this issue.

IMPROVING EFFICIENCY

In order to build and develop the Research Center as a professional, modern and regional operation, in The center also issued reports on December 2014 BIDV management overseas markets to provide deep information from BIDV’s practical sent a specialized team to four giant operations, essential reports on Japanese and Korean financial groups monetary policy - Sumitomo Mitsui changes and their Banking Corporation In the 800 days since impacts. Reports on (SMBC), Bank of Tokyoits establishment, BIDV other industries were Mitsubishi UFJ (BTMU), Research Center has also conducted. Industrial Bank released 163 reports Of Korea (IBK) and about the domestic and Since the end of Hanabank. global economy, ﬁnance 2013, the Research

and banking and other Center has held many BIDV Research Vietnamese industries. conferences to make Centre already has their reports more the structure and popular with the public. operation of a regional research For example, the international center, however, it needs to operate conference named ‘Macro economy on a larger scale and be more movement and Vietnam commercial professional to practically support banks restructure prospect’ attracted the system. Therefore, in the coming attention and received positive time, the Research Center will focus comments from management on improving research quality and agencies, research centers, other applying modern analytical methods commercial banks, financial to directly serve the business institutions, as well as media agencies. operations of the bank. ¡

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BIDV HIGHLIGHTS

PHAN ANH

Finishing strong Following an outstanding performance in 2014, BIDV is firmly on track to fulfill the targets set for the 2011 - 2015 period. In light of this, at the bank’s January conference the bank’s management agreed on the implementation of the business plan for the coming 12 months.

IDV’s operations and the economy are closely related and the resurgent economic climate of 2014 was conducive to business development. Compounding this, capital flows from BIDV contributed further to the business growth.

A SUCCESSFUL 2014 BIDV is proud of its successful performance in 2014 in several spheres. The bank conducted research, presented forecasts and also proposed solutions to economic governance at both macro and micro levels, acting as an effective means of implementing the monetary policy of

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the government and the State Bank. Further, the bank comprehensively fulfilled the business plan with outstanding results. BIDV also acted as Chairman of three Associations of Vietnamese Investors in Laos, Cambodia, and Myanmar. Moreover, despite fluctuations and volatilities in 2014, BIDV proved its professional governance capacity, making great breakthroughs in retail operations, insurance and social security programs, to name a few. These encouraging results painted a bright picture of BIDV for the business community and customers and the bank’s 18,000+ employees

BIDV HIGHLIGHTS

were inspired to aim high. Addressing the conference, Nguyen Dong Tien, Deputy Governor of the State Bank of Vietnam, praised and recognized the efforts and significant contributions of BIDV employees to the successful governance of monetary and macroeconomic policy in 2014. The Deputy Governor stated he appreciated the positive results achieved by BIDV in doing business and building a strong organization and maintaining the tradition of the Bank, which he described as an specially important credit institution in the financial system of the State. The results of the Bank not only contribute to the national economy and life of the people, but also help strengthen the efficiency of business operations.

OPTIMISM FOR 2015 Given the positive economic forecast together with the challenges that remain in 2015, BIDV has developed action plans focusing on many fields of operations. Accordingly, the bank will continue to be at the forefront and join with the banking sector to achieve the Government’s goals. BIDV will also act as a key agent ensuring macroeconomic stability and promoting economic growth.

business targets. Particularly, deposits In addition, BIDV will focus its will increase by 16.5% yoy; loans by funds on priority areas such as 16% yoy; net service income will reach transportation infrastructure, VND3,400 billion (USD158.1 million); export finance, supporting industry, profit before tax will agriculture and rural hit VND7,500 billion development. BIDV “With support from credit (USD348.8 million); will also continue to NPL will be below apply measures to institutions, in recent 2.5%; and the ROA, facilitate customer years the State Bank ROE will be improved access to credit in has made signiﬁcant over previous years. order to do business contributions to the effectively. implementation of macro To strengthen the policies, curbing inﬂation, business and meet the In 2015, BIDV will supporting business and increasing demands of utilize resources production and sociocustomers, BIDV will to successfully economic development. develop a structured implement the BIDV is one of the leading network to improve Restructuring Project service efficiency, for the 2013 – 2015 institutions making diversify distribution period, laying a substantial contributions channels and develop solid foundation to the implementation of modern products and for 2016 - 2020. In such policies.” services. Also, the particular, the bank Nguyen Dong Tien, Deputy bank will reach out to will strengthen Governor of the State Bank of international markets, financial capability Vietnam strengthening in association with and improving improving business the performance of its overseas performance, ensuring security commercial establishments. and stability. In the meantime, the bank will actively participate in the In its second year operating as a restructuring of credit institutions public bank, in 2015 BIDV aims following the direction of the State to attract financial investors and Bank. strategic shareholders to increase its financial strength and leverage Regarding business operations, BIDV international corporate governance will follow the market closely and expertise. ¡ flexibly, striving to successfully hit

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BIDV HIGHLIGHTS

BIDV people - Asset number one For any business, a quality workforce is key to success, therefore BIDV has been investing heavily in human resources development for many years. BIDVâ&#x20AC;&#x2122;s staff training activities and its dedicated Training School have become leading examples of human resource development in the banking field.

INCREASED QUALITY AND DIVERSITY IN TRAINING According to the statistics of BIDV Training School (BTS), in 2014, 36,700 training sessions were attended by BIDV staff. They were trained via three different channels: programs centrally organized by BTS, programs organized by employeesâ&#x20AC;&#x2122; branches or departments, and outside programs that employees attended. With 18,000 employees, this means each staff member had two training courses per year on average. BTS plays a central role in staff

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training at BIDV. In 2014, it organized 267 classes, providing 17,124 sessions, which accounted for around 50% of the total volume of all BIDV training classes. In 2014, BTS focused more on training line and branch managers with an additional 611 sessions an increase of 347% against 2013. Survey data shows most learners were satisfied with the quality of training -more than 87% of learners graded their courses at 4/5 or 5/5. In delivering the training, BTS exploited both traditional and more modern methods. Of 267 classes

BIDV HIGHLIGHTS

organized, traditional training accounted for 84.6%, while the remainder were technology-based training sessions using online methods.

HO department and branch levels; training courses for BIDV senior leaders; and a course on modern retail models.

TRAINING FOR INTERNATIONAL

The above achievements are rooted INTEGRATION in the strong support of BIDV’s top Entering 2015, aiming for better leaders for its training activities. integration into the world economy, During the year, members of the the Vietnamese BIDV Board of economy in general Management and Currently, BIDV allocates and its banking sector even its CEO, Phan roughly VND35 billion in particular will face Duc Tu, gave lectures new opportunities on their professional each year for staff as well as new expertise and training - a considerable challenges. One of the experience. Besides amount of money in biggest challenges for that, BIDV has been the current climate and BIDV is maintaining actively coordinating substantial investment human resources of with reputable compared to that of other high enough quality international and organizations,. to compete against its local partners to regional competitors. provide better quality training courses, seminars and On the basis of 2014’s achievements, conferences. in 2015 BTS will continuously focus on training management skills for senior Some of the most successful management. It will also provide training courses in 2014 included a training courses on professional training course for management at

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knowledge, skills and English for both retail and corporate banking business lines. Besides internal training, BTS will cooperate with BIDV Insurance company and BIDV-MetLife Joint Venture. Young officers across 10 provinces of the country will continue to benefit from the training program on international integration knowledge. Other important tasks in 2015 are to expand international cooperation in research and training, improve IT applications and bolster e-learning. In the future, the role of training in BIDV will be more and more important. It will not only go handin-hand with current business operations, but also be key to the international integration process of BIDV as well as improving BIDV’s competitiveness by equipping its staff with cutting edge knowledge and skills. ¡

INTERNATIONAL INVESTMENT

PHUONG THAO

Bolstering oversea investment In recent years, many Vietnamese businesses have invested in neighboring countries, such as Laos, Cambodia and Myanmar. However, doing business in a foreign country is not easy from the outset. Thus, understanding the difficulties businesses may encounter, and under the direction of the Government of Vietnam, BIDV has been working with authorities and businesses to propose the establishment of associations to boost investment in these neighboring countries.

ASSOCIATION OF VIETNAM INVESTORS IN CAMBODIA

The economic cooperation, investment, trade and tourism relations between Vietnam and Cambodia have seen strong positive changes in volume, quality and efficiency. Investment ﬂows from Vietnam into Cambodia have increased sharply in terms of number of projects and investment capital. Vietnam ranks ﬁfth among the largest investors in Cambodia. Bilateral trade turnover has increased over the years with an average rate of 30%/p.a.

he Association of Vietnam Investors in Cambodia (AVIC) was founded in 2009 under Decision 1674/ QD-BNV dated 7 December 2009 by Vietnam Ministry of Home Affairs to promote the economic cooperation between the two countries. Over recent years, the Association has represented Vietnamese enterprises investing in Cambodia, thus contributing to strengthening and

promoting economic and diplomatic relations between the two nations. Currently, AVIC has 80 members operating in various fields, including banking, finance, mining, industrial plant cultivation and trade, including many large Vietnamese groups and corporations. As the bridge connecting the business communities of the two countries, AVIC regularly

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holds dialogues between Vietnamese investors in Cambodia and the two governments’ senior officials during which enterprises directly report on the investment situation and give proposals and recommendations regarding investment difficulties in Cambodia. AVIC also coordinates with Vietnamese and Cambodian

INTERNATIONAL INVESTMENT

ministries to successfully organize many cooperation events in investment, trade and tourism, most notably the annual Vietnam – Cambodia conferences on investment promotion, with the guidance of senior officials and business leaders of the two countries. AVIC recognizes the important role of social security in the promotion of investment in Cambodia. It has worked with its members to participate in CSR programs, including: providing support to build schools in Tonle Sap area; funding the Cambodian Red Cross; giving computers and equipment to schools, healthcare centers and gifts to orphanages; participating in disaster recovery; and organizing cultural activities to enhance the exchange between its members and agencies as well as partners in Cambodia. Currently, AVIC has praise in the business community for these activities.

Vietnam’s FDI to Cambodia is targeted to reach USD 4-4.2 billion and USD6 billion in 2015 and 2020, respectively. Tourist number is set to grow by 30% per annum and bilateral trade is expected to reach USD6.5 billion by 2020 and USD5 billion in 2015. Vietnam’s investments in Cambodia, with the positive contribution of BIDV (as president of AVIC), made strong breakthroughs, gradually improving economic relations between the two countries and bringing the cooperation between them to a new level. In 2015, AVIC focuses on: Continuing to promote, develop and strengthen the role of AVIC in the investment and business activities of Vietnamese enterprises in Cambodia and Vietnam’s investment promotion activities in Cambodia; Collaborating with competent authorities to organize events to promote investment activities such as business forums, investment cooperation conferences and talks

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between enterprises and leaders of Governments and ministries of the two nations; Reviewing investment projects and working with businesses to take specific measures to speed up progress and ensure effectiveness as well as to remove obstacles that businesses encounter; Continuing to coordinate with members of the association operating in the fields of banking and finance, providing banking services to businesses operating and investing in Cambodia; Organizing the second AVIC Congress, tentatively set for March 2015; Coordinating with authorities of the two countries to organize the fifth Vietnam investment in Cambodia conference as agreed by the Prime Ministers of the two countries.

INTERNATIONAL INVESTMENT

ASSOCIATION OF VIETNAM INVESTORS IN LAOS

ounded in 2011 under the Decision 1643/QD-BNV dated 9 September 2011 by Vietnam Ministry of Home Affairs with members mainly being Vietnam’s large groups, corporations and enterprises, and chaired by BIDV, the Association of Vietnam Investors in Laos aims to promote Vietnam’s investments in Laos according to the policies of the governments of the two countries. The association represents the Vietnamese business community in Laos to gather information about operations as well as difficulties faced by businesses in their operations. It also works to consolidate reasonable proposals from businesses for submission to the governments, ministries and agencies of the two countries for consideration and approval.

The association acts as a bridge to connect and support Vietnamese businesses to work with ministries and agencies in Laos, plus provide information about socio-economic development, opportunities for cooperation and potential investment projects in Laos. It also provides legal support to Vietnamese businesses with respect to investment and production in Laos. Further to this, the association supports its members to cooperate with each other and link businesses between Laos and Vietnam to strengthen financial capacity and business efficiency. With action plan set for 2015, AVIL will focus on: Investing in Laos towards sustainability, ensuring longterm stability and benefit balance

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On 10 November 2014 in Slovakia, Eximbanka SR and BIDV signed a memorandum of understanding on ﬁnancing the project to construct bonded warehouses and oil pipelines from Hon La Seaport, Quang Binh, Vietnam to Khammuane province, Laos. The Lao Government appointed AVIL/BIDV as the consultant of the project. The total investment of the project is USD300-500 million. The project is expected to be completed and put into operation in late 2017 or early 2018.

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on a win-win basis, ensuring the harmony of efficiency of businesses and national security and territorial sovereignty of the two countries; Developing a system of criteria for Vietnamese enterprises to participate in areas which have influence on the key areas of Laos and other Vietnamese businesses in Laos; Doing CSR activities to support the socio-economic development of the government of Laos; Coordinating and organizing the second Vietnam - Laos Investment and Cooperation conference; Promoting the progress of construction of a road from Samtay, Huoa Phan to Thalau on the border of Vietnam - Laos and construction of oil pipelines from Hon La Seaport, Quang Binh, Vietnam to Khammuane province, Laos.

As of end 2014, the Lao Government has licensed 415 investment projects of Vietnamese enterprises with total investment of about USD5 billion. Vietnam ranks second among countries investing in Laos, focusing on key areas such as energy, services, infrastructure, agriculture, forestry, mining, etc. To date, Vietnamâ&#x20AC;&#x2122;s accumulated FDI to Laos reaches approx. USD1.5 billion.

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ASSOCIATION OF VIETNAMESE INVESTORS IN MYANMAR

ith great achievements in Laos and Cambodia markets in terms of trade and investment volume and efficiency, and in order to strengthen Vietnam – Myanmar ties, the government of Vietnam directed the establishment of an association to connect and support Vietnamese investors in Myanmar. The result is the Association of Vietnamese Investors in Myanmar (AVIM), which was established under the Decision 236/QD-BNV dated 22/03/2010 by Vietnam Ministry of Home Affairs and introduced at an Investment Promotion Conference of Vietnam to Myanmar in Yangon City, Myanmar on 3 April 2010 in the presence of the Prime Ministers, Ministries, agencies and enterprises of the two countries. The association will help its members to cooperate with each other in

Vietnam now ranks 8th out of 36 countries and territories investing in Myanmar, with a total FDI of USD600 million. Trade turnover in this period increased by 40%/p.a on average, reaching USD350 million in 2013. The most signiﬁcant investment by AVIM members in Myanmar is the Hotels – Office Complex project of Hoang Anh Gia Lai Group in Yangon, with a total investment across two stages worth USD 600 million.

investment activities in Myanmar; provide information and assistance in doing business between the enterprises of Vietnam and Myanmar to increase financial capacity, resources, and investment efficiency; support members with difficulties, risks in production and business. Further, AVIM acts as a focal point for Vietnamese investors to study and implement investments in Myanmar.

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INTERNATIONAL INVESTMENT

Currently, AVIM has 76 official members from various economic sectors including finance, banking, petroleum, mining, aviation, food and industrial plant cultivation. These include many large Vietnamese groups and corporations, such as Bank for Investment and Development of Vietnam JSC, Vietnam National Coal - Mineral Industries Holding

Corporation Limited, Vietnam Airlines Corporation, Hoang Anh Gia Lai Group, PetroVietnam Fertilizer and Chemicals Corporation. Entering 2015 with an understanding of the new developments in Myanmar, AVIM has set an action plan, specifically: To work on the implementation of projects covering

12 areas under the Joint Statement by the Prime Ministers of Vietnam and Myanmar to make a report on the real state of Vietnamese enterprises’ investment in Myanmar and propose measures to boost investment; To continue evaluating potential areas and prospects, focusing on banking, aviation, telecommunications, oil and gas projects and other key projects; To work with Vietnam’s ministries, agencies, associations and the Vietnamese Embassy in Myanmar to organize seminars, workshops and exhibitions to introduce and exchange goods; To strengthen the cooperation between enterprises of the two countries in the form of joint ventures, business cooperation, personnel training and technology transfer to develop strengths; To call on Vietnamese enterprises to participate in CSR activities in Myanmar. ¡

In recent years, Vietnamese enterprises have spent more than USD1 million on CSR activities in Myanmar of which BIDV funded USD250,000 for technical support in agriculture; school tables and chairs and 50 scholarships to students worth USD15,000; and Hoa Sen Group funded Myanmar Football Federation with USD300,000. The CSR programs implemented by Vietnamese investors in Myanmar contribute to socio-economic stability in Myanmar, improve the lives of the local people and reduce poverty.

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NGUYEN TRAN

BIDC: Investing for success The excellent banking potential of Cambodia prompted the establishment of the Bank for Investment and Development of Cambodia in 2009 and the business has been thriving since day one.

stablished in July 2009, the Bank for Investment and Development of Cambodia (BIDC) is the result of BIDV’s acquisition of Prosperity Investment Bank plc (PIB), a small private bank with just USD1.5 million in equity. Currently, BIDC has charter capital of USD70 million and is ranked sixth in Cambodia in terms of total assets and total outstanding loans. At the end of 2014, BIDC’s total assets stood at nearly USD600 million - a three-fold increase against 2009, accounting for 6% of the total assets of Cambodia’s banking system. Outstanding loans were USD440+ million, five times higher than 2009 (up 60% on average), accounting for 7% of Cambodia’s credit market. Deposits mobilized from organizations and

residents reached over USD200 million (an average growth of 135%). Profit before tax accumulated since its founding was over USD30 million. BIDC has also continued to expand its network, with seven branches: Phnom Penh, Siem Reap, Kampong Cham, Daun Penh, Mean Chey, plus Hanoi and Ho Chi Minh City. Besides, BIDC has taken the lead in arranging and directly financing key investment projects of Vietnamese enterprises in Cambodia, with total disbursement of USD80+ million covering agriculture, health, thermal power, rubber and more. BIDC has been recognized for its outstanding performance with the award of the Most Outstanding Promising Growth Bank in Cambodia.

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Furthermore, BIDC is Vietnam’s only bank selected by the Securities and Exchange Commission of Cambodia as payment agents for Cambodia’s stock market. With confidence in 2015, BIDC plans to increase its charter capital to USD100 million to become one of the banks with the largest charter capital in Cambodia. It will also continue to expand its operating network in key areas including Phnom Penh, Sihanouk Ville, Battambang and others. The bank will also upgrade and develop its Corebanking system, providing one of the most cutting-edge information technology platforms in Cambodia, laying a solid foundation for sound governance and the development of modern banking products and services. ¡

INTERNATIONAL INVESTMENT

SON NGUYEN

LaoVietBank: A year of thriving business 2015 saw solid economic growth in Laos, with LaoVietBank posting strong results in its 15th year in business.

fter one year of effort and implementing solutions to the global and regional economic crisis, LaoVietBank has reported very strong results. The bank continued to be one of the four biggest commercial banks in term of total assets and the second largest in terms of charter capital. The bank’s total assets in 2014 increased 35%, deposits grew 50% and credit growth reached 52% - all factors which contributed to the overall development of Laos. The bank’s credit quality was well controlled and its non-performing loan ratio was lower than 2%. Moreover, net service income increased 93% yoy, and ROE was above 14.3%. The bank also continued to allocate adequate funds for loan loss provision. The expansion of the bank’s network was another significant achievement. In 2014, LaoVietBank opened a new transaction office in Oudomxay and also finished procedures to open two additional transaction offices and a transaction spot in Vientiane. The bank’s network now covers eight cities and provinces. In addition, the ATM system was supplemented with 14 machines, bringing the total to 45. Besides, LaoVietBank’s system was also connected successfully to Banknetvn of Vietnam and B-connex of Laos, creating more convenience for customers. Progress was also made toward

completing the Restructuring Scheme 2013-2017. Thus, the bank is on track to become a leading bank in Laos in terms of service and product quality, technology, human resources, market share, financial capacity and operational effectiveness. Confirmed market position As a leading financial institution in Laos, LaoVietBank actively supports Lao enterprises and Vietnamese enterprises in Laos. To do this it has reduced the lending rate to ease financial costs, helping firms overcome difficulties in the context of unfavorable market conditions. LaoVietBank also launched a credit package worth LAK800 billion (USD100 million) for exporters to improve the competitiveness of Lao’s export products. Based on modern Corebanking principles, LaoVietBank built ten new services and products, including a capital management product (Standing Instruction), the My Avatar Card, savings accounts for children and Directbanking. The bank also became the main lender for key projects including the national petroleum reserve depot, a 5-star hotel complex in Vientiane, the road linking Thamnou and Xamtai communes and an oil pipeline project, to name a few. These projects play a pivotal role in enhancing the prestige and position of BIDV and LaoVietBank.¡

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Throughout 2014, LaoVietBank continued contributing to social security and community welfare with a host of donations including USD100,000 to Laos State audit; USD15,000 to poor students in Phongsaly, Hua Phan and Sekong; USD32,000 to the Government Office mail server; and USD150,000 to upland people. Donations for the year totaled USD400,000

INTERNATIONAL INVESTMENT

BIDV boosts Myanmar investment One of the first banks to participate in Myanmar’s financial sector, BIDV is stepping-up its involvement in this potentially lucrative market.

The financial firm in Yangon was established with 70% of capital from BIDV and 30% from the Financial Micro Consumption Mahar Bawaga of Myanmar. Initially, the company will focus on microfinance, deposits, money transfer and financial activities in accordance with the legal regulations of Myanmar. According to Tran Bac Ha, Chairman of BIDV, the establishment of the BIDV Financial Company affirms the longterm presence of BIDV in Myanmar. The company also aims at supporting community development, assisting in poverty alleviation and contributing to sustainable development in Myanmar. In addition, to strengthen ties in Myanmar’s finance and banking industries as well as to connect with other financial institutions of the country, in the final months of 2014 BIDV organized a conference on international banking in Myanmar.

n 2014, BIDV signed an agreement to lend USD30 million to Myanmar’s Small and Mediumsized Industrial Development Bank (SMIDB) over five years. The loan was to support small and medium enterprises (SMEs) in Myanmar and to implement the industrial development and poverty reduction plan of Myanmar’s Government. The aim is to realize the Memorandum of Understanding (MoU) signed between BIDV and SMIDB in the middle of 2014. Previously, BIDV sent an expert team to Myanmar to conduct surveys, share experience and provide technology consulting to SMIDB. In addition, BIDV invited high-ranking delegations of SMIDB to Vietnam to share experience of core-banking as well as business activities related to trade finance and

forex trading. BIDV also pledged to lend SMIDB to invest in core-banking system at a preferential rate. U Maung Myint, Myanmar Industry Minister and Chairman of SMIDB emphasized that currently, Myanmar focuses on meeting the basic development demand of SMEs, supporting the national economy and also the country’s industrialization progress. The credit package from BIDV is an important step cementing the relationship between the two parties. Also in 2014, Myanmar Ministry of National Planning and Economic Development issued an establishment certificate to BIDV Financial Limited Liability Company in Myanmar.

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The conference welcomed 35 representatives, including directors of the General Administration of the Central Bank of Myanmar and experts from 15 leading commercial banks in Myanmar. The conference focused on exchanging and sharing experiences, international common practice, international payment methods and risks in international commerce. The organization of this conference, the USD30 million loan and the establishment of BIDV Financial Co., Ltd. are all parts of BIDV’s general commitment framework for supporting bank system development in Myanmar. These acts also signal the promotion of cooperation between Myanmar and Vietnam. ¡

INTERNATIONAL INVESTMENT

TUE MINH

Expansion in Europe

ith a vision to go global, BIDV has opened a representative office in Prague, Czech Republic. The office represents BIDV in the Czech Republic and neighboring countries to support operations, and promote trade relations and business cooperation between Vietnam and the Czech Republic. The office has key tasks including: promoting trade and investment relations between Vietnam and the Czech Republic; exploiting the business potential of the Vietnamese community in the Czech Republic;

research and evaluation of business opportunities between Vietnam and the Czech Republic; effectively supporting the provision of BIDVâ&#x20AC;&#x2122;s services in the Czech Republic; and supporting trade promotion and cultural exchanges, contributing to the enhancement of Vietnam position in the Czech Republic. In 2014, the office cooperated with IDCE and Cyrrus (Czech Republic) to start a remittance research project, with a tentatively launch date in 2015. It also supported the seeking of funds for export projects in Vietnam and actively obtained information about the Czech market, and reported to BIDV. Previously, on 10 November 2010, IDCC Europe Financial Company was officially launched at Sapa Trade Center, Prague. The founding shareholders of the company

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include IDCC Investment Company (a subsidiary of BIDV), ILG (Czech Republic) and Sportisimo (Czech Republic). The company receives great support from the two governments as well as full assistance from BIDV, one of the leading banks in Vietnam, and prestigious founding members in the Czech Republic. IDCC Europe focuses on financial operations, including: (1) funding; (2) trading real estate and investment in projects to support business of the community; (3) Property lease and management; (4) Financial advisory and investment, working with BIDV to provide investment advisory services to Vietnamese enterprises investing in the Czech Republic; (5) Financial leasing; (6) Other permitted business activities. Given the difficult business climate in the Czech Republic due to the past economic recession, in 2014, IDCE made great efforts to maintain business stability, with PBT at 7.23 million CZK (~USD302,000), and good credit quality. ÂĄ

INTERNATIONAL INVESTMENT

THU CHI

Strengthening Russia-Vietnam ties Acknowledging that Russia is a strategic market to develop, BIDV has started up a work group in Russia to support Vietnamese enterprises and forge connections with Russia partners

t the end of 2014, the Russia-based work group was established, aimed at promoting investment and trade between Vietnam and Russia. Vietnamese ambassador to Russia, Nguyen Thanh Son, stressed the importance of the group in the context of growing economic and trade ties between Vietnam and Russia. The work group will represent the bank and carry out investment and trade promotion activities, helping Vietnamese businesses promote exports to and investment in Russia. It will also establish relationships with Russian banks and set up safe, stable payment modes to assist Vietnamese businesses in investment and trading activities in the Russian market. The work group is responsible for providing up-to-date information about the economic, political and

social situation in Russia and proposing timely measures to help Vietnamese businesses make the most of opportunities to access the Russian market. According to Tran Bac Ha, Chairman of BIDV, the Customs Union of Russia, Belarus and Kazakhstan is soon going to be concluded and is expected to see two-way trade between Vietnam and Russia reach USD12 billion in the next five years. Currently, Vietnam and Russia are boosting cooperation in a MoscowHCMC light industry park, which covers nearly 130 hectares in Moscow and involves Russian enterprises and the Vietnam National Textile and Garment Group (Vinatex). Notably, BIDV will consider providing loans for Vietnamese businesses which want to invest in building light industrial zones in Russia.

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Also in 2014, BIDV pledged to provide a short-term preferential credit package worth VND3 trillion (USD140 million) for Vietnamese businesses to boost exports to Russia. The rate applied to this credit package is 2-2.5%, lower than BIDVâ&#x20AC;&#x2122;s common lending rate. The term of loans under this package is three to six months. At the work group launching ceremony, BIDV signed a memorandum of understanding (MOU) with Russian businesses, including AMI Group, ALLA and EVARZ PARK. Under the MOU, BIDV will provide support to these Russian businesses to promote links with Vietnamese companies. Its partners will help BIDV deploy operations in the Russian market and assist Vietnamese businesses in completing necessary administrative procedures related to exports to Russia. In 2006, BIDV coordinated with VTB Bank of Russia to establish the Vietnam-Russia Joint Venture Bank. To date, BIDV has established relationships with 34 commercial banks in Russia helping to boost trade between the two countries. ÂĄ

PRODUCTS & SERVICES

MANH HUNG

DO HANH

BIDV AND JCB JOIN FORCES

GO FURTHER, GO PLATINUM

n 22 December 2014, the BIDV card system was officially connected with Japan Credit Bureau (JCB), making it the fourth international card accepted at BIDV’s ATM/POS alongside VisaCard, MasterCard and UnionPay. This is a significant milestone in the bank’s product development and helps improve competitiveness in Vietnam’s card market. Founded in 1961 in Japan, JCB is one of the leading world brands for credit card issuance and payment. JCB has been aggressively expanding its business overseas since 1981. As of December 2014, JCB had 22.25 million cards accepted in 190 countries and territories. JCB credit cards are issued in16 countries and territories with 77.46 million cardholders.

Given the rapid development and growth of Vietnam’s card market in recent years and the strong competition in the market, partnering with JCB will improve BIDV’s position and reputation, helping diversify card products and services, improve competitiveness and increase revenue from card business operations. BIDV has conducted market research and developed feasibility reports on card connection with JCB since 2011. ¡

On 8 January 2015, BIDV officially introduced the feature-packed BIDV Visa Platinum credit card for VIP customers

he BIDV Visa Platinum credit card is tailored to VIP clients. Apart from the basic features of an ordinary credit card, it also has attractive additional benefits for both entertainment and tourism. Specifically, BIDV Visa Platinum cardholders can enjoy free green fees at golf clubs in Ho Chi Minh City, Dong Nai, Quang Nam, Hanoi and Hai Duong when registering via (+84) 8 38240578. Cardholders also have the opportunity to shop at attractive prices at thousands of merchants across the world. Further, when making payments by BIDV Visa Platinum, cardholders can accumulate rewards points which can be redeemed for cash or flight tickets under the Golden Lotus program (GLP) of Vietnam Airlines. For safe travel, BIDV offers Visa Platinum credit cardholders global travel insurance with coverage of VND10.5 billion (USD488,400) with a leading insurance company. In addition, customers are also insured in case of flight delays and baggage loss. The card allows you to buy now and pay later and you can easily manage your spending plans with the automatic messaging services (BSMS) and online banking (BIDV Online). This service is provided by BIDV free of charge to cardholders during the term of the card.

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With the introduction of the card, BIDV launches a promotion program - Enjoying BIDV Visa Platinum Card. Accordingly, from 20 January 2015 to 19 April 2015, customers taking out a BIDV Visa Platinum credit card will have chance to receive a high-class leather passport wallet, and VND2 million (~USD100) or 8,000 Golden Lotus reward miles with Vietnam Airlines.

Payment methods are flexible and include payment at transaction counters, automatic debits from BIDV bank accounts, or transfers from any account at any bank. With quick issuance procedures, a flexible credit policy, unlimited credit limits, and safe and secure chip card technology, customers will not face any obstacles in accessing this modern and handy payment method. ¡

PRODUCTS & SERVICES

QUYNH CHI

Smoother banking, lower costs

ietnam National Financial Switching Joint Stock Company (Banknetvn) and Smartlink Card Services Joint Stock Company (Smartlink) signed a merger agreement at the end of 2014. The newly merged venture is named Banknetvn. The merged card alliance is expected to help banks save resources and infrastructure investment costs. Payments and money transfer transactions will be more convenient and faster and customers will have the opportunity to enjoy more benefits from the wide card network throughout the country. According to Mr Nguyen Dong Tien, Deputy Governor of the State Bank of Vietnam, the merger of the two companies will help reduce costs, bring more convenience to customers, and reduce payment errors and fraud. It also helps banks save ATM and POS (points of sale) investment costs and supports state regulators in their administration and management. Further to this, the merger will promote non-cash payment in Vietnam. The merger helps optimize the operations of ATM and POS machines. One POS or ATM can be used for transactions with different banks. Until now, the inconsistency of the POS network in Vietnam has hindered the non-cash payment process. Mrs Le Kim Thu, Head of BIDV Card Center, said that the merger will ease customer worries about which bank

via ATMs. Besides, the time taken to process customers’ complaints and queries will be reduced significantly. Thu also said that transaction quality should be better because a single card network will ensure a uniform technical quality. “Banks will have more convenience to cooperate and handle transactions. And the icing on the cake is that the costs can be lower because banks only have to connect to a single network which helps save resources,” she said. the ATM/POS belongs to. The ATM/ POS network across the country will be smoothly connected, offering convenience and useful services to customers for their card use, including interbank money transfers

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A representative of BIDV said that with the merger, the market for POS payment and online transactions will grow significantly in the coming time and improve the card payment habits of customers. ¡

PRODUCTS & SERVICES

Credit for fishermen

IDV is a leading bank involved in the development of the Government’s policies and mechanisms on fisheries development and is at the forefront in implementing the Government’s Decree 67/2014/ND-CP concerning support to the development of aquaculture in association with sea and island protection. Prior to the issuance of the Decree 67, BIDV cooperated with the People’s Committees of Binh Dinh and Quang Ngai provinces to launch a program on “extending credit for offshore aquatic exploitation” on 15 April 2014. BIDV has implemented Decree 67 consistently across the system. Specifically, the bank established a Steering Committee and issued lending documents and processes as directed by the State Bank and the ministries. To help ship-owners and fishermen access the loans, BIDV branches in all provinces approached ship-owners/fishermen to guide them through loan procedures and

requirements to ensure simplicity and transparency. Up to now, BIDV has achieved positive results, specifically: BIDV branches approached 531 customers with total capital needs of about VND1,604 billion (USD74.6 million), mostly for steel-hulled ships with high capacity for offshore fishing. Initially, BIDV is committed to lend 30+ customers approximately VND250 billion (USD11.6 million). BIDV is the first commercial bank enacting medium and long-term loan disbursement under the Decree 67 to fishermen in Thua Thien Hue province. The bank’s determination and efforts are recognized by the Government. Based on the bank’s recommendations and proposals, Deputy Prime Minister, Vu Van Ninh, instructed ministries to take steps to remove bottlenecks in the implementation of Decree 67, thus creating momentum for consistent implementation throughout the country. ¡

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Marking the ﬁrst of a raft of loan agreements for the ﬁshermen of Binh Dinh under Decree 67, four credit agreements were signed totaling VND61 billion (USD2.84 million) on 3 February 2015. BIDV Binh Dinh branch signed credit agreements with three customers in Hai Cang ward, Quy Nhon city to build new off-shore steel ships, each costing VND18 billion (USD 0.84 million). BIDV offered a loan to value ratio up to 95%.

PRODUCTS & SERVICES

TRANG TRINH

Stepping up in Japan The close partnership between Japan and Vietnam has continuously grown over the years in terms of both diplomacy and investment. As a leading credit institution of Vietnam, BIDV has set a specific plan to attract more Japanese companies to invest here and a key part of this is the dedicated BIDV Japan desk.

ver more Japanese firms are eyeing the Vietnamese market. This is in line with increasing investment from individual investors as well as the investor preferences switching from the China market to Asean countries. This market trend means commercial banks in Vietnam must enhance their capability to coordinate with Japanese enterprises. There are more than 2,000 Japanese companies operating in Vietnam, most of which are small and medium sized enterprises. Due to the limitations of language, products and services, Vietnam’s banks have not met the demand of Japanese firms. Therefore, most Japanese companies in Vietnam choose to use Japanese mega banks. However, such mega banks have limitations in terms of providing services in provinces outside Hanoi and Ho Chi Minh City – the two biggest cities of Vietnam. Therefore, with extensive networks and its leading position, BIDV is actively prepared to take advantage of Japanese investment. Specifically, BIDV established the BIDV Japan Desk in Hanoi in November 2013, and

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opened a branch in Ho Chi Minh City in July 2014 to accelerate the provision of banking products and services in the Japanese language. BIDV’s Japan Desk is an independent unit that includes staff fluent in Japanese. They have the ability to consult and provide professional banking services, promoting the practical cooperation of BIDV with Japanese partners. BIDV’s Japan Desk offers products based on the demands of Japanese customers. This specialized department has also established a close relationship with Japanese banks, local authorities, and the main contractors of key industrial parks that attract huge Japanese investment. This will help the Japan Desk create an effective network to support Japanese enterprises in Vietnam.

BECOMING AN FDI MARKET LEADER In 2014, BIDV signed important agreements with Japanese financial institutions, including Shinkin Central Bank, SuMi TRUST, Yokohama, Chiba, Juroku, and other provincial

PRODUCTS & SERVICES

Shinkin banks. These banks act as partner banks to help BIDV and its Japan Desk support Japanese customers, expanding investment and businesses.

other banks will come to join Japan Desk teams in both Hanoi and Ho Chi Minh City.

According to the Ministry of Planning and Investment’s Foreign Investment Agency, total FDI registered in Vietnam topped USD20.23 billion in 2014. Among 60 countries and territories investing in Vietnam, South Korea took the lead with USD7.32 billion, accounting for 36.2% of total FDI. This was followed by Hong Kong (USD3 billion, or 14.8 %), Singapore (USD2.79 billion, or 13.8 %) and Japan (USD2.05 billion, or 10.1 %).

The cooperation of BIDV’s Japan Desk with Japanese partners in the first phase mainly entailed providing services and products to customers of BIDV’s partner banks. Recognizing that a closer connection with partner banks will help the Japan Desk operate more effectively, BIDV is working with experts from partner banks. These experts are experienced staff members who will team up with BIDV to offer the most suitable products to Japanese enterprises in Vietnam.

In 2015, the Japan Desk will observe market movements and the operation of branches to provide suggestions and solutions to foster trading activities with Japanese customers. Accordingly, the department will review existing services and products, plus research and develop new ones. In addition, the Japan Desk will coordinate with the association of Vietnamese investors in Japan to increase the Japanese customer base.

Juroku Bank is the first one to send an expert to BIDV’s Japan Desk at the Hanoi branch. In 2015, experts from

This specialized department will build business goals for each branch

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as part of a road map to first develop the Japanese customer segment for the 2015-2017 period. According to banking experts, the strategic partnership, TPP, similarities in culture, and the development of commerce and tourism relations between the two countries are fundamental to the continued growth of investment between Japan and Vietnam. ¡

ACHIEVEMENTS & AWARDS

KIEU VAN

Going global L

ast year in Hong Kong, BIDV was named by Asiamoney as the Best Domestic Provider of FX Services in Vietnam and the Best for FX Research and Market Coverage in Vietnam. The awards were voted for by businesses and financial institutions. Do Ngoc Quynh, Head of BIDV Treasury and Currency Trading, talked to BIDV Review about the accolades. Why are the Asiamoney awards so highly regarded by banks? It is undeniable that there are many organizations giving awards in the financial-banking sector. The reputation and voting methods of the bodies garner different levels of respect. Asiamoney is a leading economic â&#x20AC;&#x201C; financial magazine in Asia managed by Euromoney Institutional Investor plc, a global media group. Readers of the magazine include leading business people and those who have a robust understanding of the market, including leaders of large financial institutions. The magazine awards banks operating in the region in different categories. The awards draw the attention of many leading global and regional organizations and financial institutions, such as Citibank, Deutsche Bank, HSBC, ANZ, BNP and Standard Chartered Bank, to name a few. The award of Best Domestic Provider of Foreign Exchange Services is one of the Asiamoneyâ&#x20AC;&#x2122;s key annual awards voted by the customers who use the services of a bank, not the

organizers. As a result, the bank cannot intervene in the result. So, the award is an objective assessment by customers of the quality of products and services. This helps the bank to innovate and improve its products and services. How did BIDV win this important award, given the strong domestic competition? Understanding the strong integration trend of the economy, BIDV determined that research, development and supply of foreign exchange services is one of the important activities of the banking

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sector in general and of BIDV in particular. Given the strong competition from local and foreign players, we needed the right strategy and financial strength together with experienced staff in order to constantly develop, improve and make its foreign exchange products and services strongly competitive. BIDV has made positive breakthroughs in both interbank transactions and customer services. As a leading bank in the country with respect to asset size, branch network and customer base, BIDV has always acted as a key market maker and offered stable services with the most competitive rates. BIDV also pays special attention

ACHIEVEMENTS & AWARDS

Best in class 2014 was a year of many accolades and awards at BIDV to and is at the forefront of forex research and market coverage for business purposes of the bank, thus helping local and foreign customers and partners.

different advantages, strengths and weaknesses due to their starting point and development history. In Vietnam, given the development history of credit institutions, there are three main Upon applying for the award, BIDV groups of banks: and other banks State-owned sent information The award of the Best to customers banks (BIDV, Domestic Provider of FX so they could Vietcombank, Services in Vietnam was vote and decide Vietinbank, polled by Asiamoney the winner. Agribank, and between 4 June 2014 and 3 BIDV received MHB); Joint-stock July 2014 and voted for by 461 votes from commercial businesses and ﬁnancial businesses who banks; and institutions. are using the foreign banks, BIDV’s foreign including jointcurrency ventures and products and services. Further to wholly foreign owned banks. this, the bank also won votes from other financial institutions - that We actively conduct research means our competitors also voted to properly evaluate the for us. We have outperformed domestic banks, including foreign competitiveness of rival banks operating in Vietnam groups to strongly improve to win the award of the Best our organizational model and Domestic Provider of Foreign technology and especially Exchange Services in Vietnam for human resources. However, two years in a row (2013 - 2014), we understand that in today’s making it the fifth time we have competitive environment, won this award. innovation is an on-going process, How would you evaluate BIDV’s and we could be left behind at competitors heading into the next any time without it. Customers award race? will choose banks which offer good services and products at a Every bank, depending on their reasonable price. To cement our ability to research and forecast, reputation and the trust of our will have strategies, approaches customers, we are always open to to products, customer segments innovation and improvement of and policies to compete in the products and services. ¡ sector. Of course, each bank has

FEBRUA RY 2015

In May 2014, BIDV was announced by Asian Banker as Vietnam’s ‘Best Domestic Cash Management Bank’, an award based on the analysis of the scale of operation, quality and quantity of products and much more. In July 2014, BIDV was named by International Banker magazine (UK) as Best Commercial Bank in Vietnam. BIDV is the first and only bank in Vietnam to receive this accolade. The award is presented annually to financial institutions based on a strict evaluation process with transparency and objectivity. On 30 October 2014 in Hong Kong, BIDV was honored to be named by Asia Risk magazine as ‘House of the year, Vietnam’ for being at the forefront of the country’s economic development. The bank was especially recognised for its success in modernising risk management systems and its development and improved provision of new, innovative financial products, such as energy-derivative based hedges. This is the third consecutive time the bank has been honored to receive this prestigious award. On 2 December 2014, BIDV’s E-banking service was named ‘Typical E-Bank 2014’ by Vietnam Banks Association (VNBA) in collaboration with International Data Group (IDG). BIDV outperformed competitors to receive this prestigious award.

PARTNERS

VAN TRAN

Prof. Ngo Bao Chau & FMathLab In Vietnam, mathematics in natural sciences is popular and widely applied yet not in socio-economic areas, especially economics â&#x20AC;&#x201C; banking and finance. Though public funding for applied research exists, it remains ineffective. The establishment of FMathLab in Vietnam brings new hopes.

IDV and the Vietnam Institute for Advanced Study in Mathematics (VIASM) have cooperated to set up new infrastructure for applied research with the commitment of industry experts and academics at a ceremony on 12 January 2015.

The Lab for the Research and Application of Mathematics in Economics, Finance and Banking (FMathLab) will study and

experiment with econometrics analyze, forecast and manage economic development. According to

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Director of VIASM, FMathLab will be a leading research center in Vietnam. The lab will use mathematical models to serve government agencies in managing macroeconomics and making will also encourage the country to use mathematical theories more in and banking goals. The lab wishes to involve renowned local and researchers. At the launch ceremony, VIASM

PARTNERS

and BIDV signed a memorandum of understanding (MoU) on the research and application of mathematics in The two parties will cooperate on research projects, training programs, conferences and workshops that produce practical value to serve the regulators and society. In the interim, the two sides will leverage their potential to promote the research and application of mathematics in creating research projects into applicable commercial products for international integration. Under the MoU, BIDV will provide human resources for the operation of the lab. It will fund the lab with a sum of VND22 billion (USD1 million) and appoint experts with

! and banking, invite representatives from State regulators to join research programs to understand the needs of the industry, and give direction on research and application strategy. Mr Tran Bac Ha, BIDV Chairman, said that BIDV is interested in funding and granting non-refundable credit to technological development activities in association with the countryâ&#x20AC;&#x2122;s socioeconomic development. He added that the bank is a pioneer in executing the governmentâ&#x20AC;&#x2122;s policy and innovating sponsorship activities. The grant to the lab expresses BIDVâ&#x20AC;&#x2122;s commitment to the development of the industry in particular and the country in general. In recent years, BIDV has extended its comprehensive partnerships

FEBRUA RY 2015

â&#x20AC;&#x153;With BIDVâ&#x20AC;&#x2122;s commitment, I believe great strides will be made through mathematics in Vietnamâ&#x20AC;&#x2122;s economics, ďŹ nance and banking. I also believe that FMathLab will make great contribution to the strategic development of VIASM. The Center will be a focal point to connect researchers to ensure research results are successfully acted uponâ&#x20AC;?. Prof. Bui Van Ga, Deputy Minister of Education and Training

with key universities nationwide. It has already partnered with 163 universities and colleges and construction of infrastructure and facilities and funding scholarships. ÂĄ

PARTNERS

HOANG OANH

Together toward success After a successful 2014 filled with remarkable achievements, BIDV organized a Customer Conference in Hanoi at the start of the New Year. This was not only a way to express the bank’s gratitude to customers who have been loyal for up to 58 years, but also an opportunity to reflect on challenges overcome and the significant headway made into the world market.

he Customer Conference is one of the bank’s key annual events. It is organized at the start of the New Year to express gratitude to customers for their loyalty to BIDV, thus it always receives the attention and participation of many loyal customers and partners. However, in the 2012-2013 period the economic climate was difficult as a consequence of the global economic recession. This was worsened in Vietnam by the country’s internal weaknesses, such as a paucity of demand, and a frozen real estate market. These factors combined to prevent the country’s economy from achieving the growth targets set. Due to these factors, in 2014, there was no Customer Conference. In contrast, at the close of 2014 the bank could reflect on and be proud of the achievements which were earned through solid effort, creativity and determination. Now that the lunar

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PARTNERS

New Year is around the corner, BIDV is full of hope for a stronger economy and also full of confidence about integration into the global economy. Given the above facts, BIDV resumed the Customer Conference in 2015 with a view to sharing its joy with its customers and outlining targets for future development. This significant event was the bank’s way of giving sincere thanks to its customers who are loyal and place their trust in the bank, even during tough periods.

A BRIGHTER FUTURE Delivering an opening speech at the ceremony, BIDV Chairman Tran Bac Ha talked almost 400 customers through the key economic developments and milestones of recent years. He explained how, with good macroeconomic policy-making efforts, the economy has bounced back robustly. The Chairman spoke

in stirring tones, delivering a speech that inspired confidence among the delegates. Looking to the future, BIDV organized a talk titled Deriving new understanding, learning from the past. This gave all participants a better understanding of how the business overcame the tough period. It also gave an insight into the economic outlook for 2015 and how it will impact the business. BIDV invited economic experts such as Professor Tran Hoang Ngan, Dr. Tran Du Lich, Dr. Vo Tri Thanh and Tran Quang Nghi - Chairman of Vinatex, to the ceremony for detailed discussion. Also taking part were Mr. Phan Duc Tu, Chief Executive Officer of BIDV and Mr. Can Van Luc, Vice President of BIDV. The issues discussed were insightfully analyzed by the participants.

FEBRUA RY 2015

BIDV’s traditional torch relay was one of the most impressive moments of the night, with a vivid clip of an athlete carrying the BIDV torch while running through the regions and areas of work associated with the bank nationwide. It expressed the bank’s message and was a symbol of the power of solidarity and cooperation between BIDV and the business community, inspiring the bank to conquer challenges. Chairman Tran Bac Ha, CEO Phan Duc Tu, Chairman of Trade Union Le Thi Kim Khuyen, Secretary to Youth Union Pham Son Tung, Chairman of Vinatex Tran Quang Nghi representing the business community moved forward together, holding hands to light the flame of victory and success for 2015. This was followed by a spiritual Vietnamese song, Big Circle of Hands, expressing the wish for a bright economy in 2015. ¡

CSR

A time for giving BIDV’s charitable program went into full swing for Tet with gifts and health insurance worth VND25 billion (USD 1.2 million) handed out to Vietnam’s poor

ith the lunar New Year (Tet) drawing near, BIDV employees have been busy preparing gifts for the poor. This annual charitable activity has been organized since 2009. With the desire to bring the poor a warm Lunar New Year 2015, BIDV’s Trade Union raised funds for 66,666 Tet gifts worth VND20 billion (USD0.93 million) for disadvantaged people in 63 cities and provinces in the country. Each gift has a value of VND300,000 (USD14) BIDV’s Senior Executive Vice President Quach Hung Hiep explains that BIDV has carried out the program for seven years with priority given to ethnic minorities, people in remote or calamity-hit areas, poor state employees and workers, poor patients, the elderly, and homeless children. At the announcement of the program in Hanoi, BIDV directly presented

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VND250 million (USD12,000) to the National Fund for Vietnamese Children under Vietnam General Confederation of Labour for gifts to needy children at child protection centers. It also gave VND1 billion (USD47,000) to the Golden Heart Fund for Tet gifts for poor state employees and workers in 63 provinces and cities. Nguyen Thi Thu Hong, Vice President of the Vietnam General Confederation of Labour, said “Funding Tet gifts for the poor is a social activity which shows humanity and should be implemented on a grand scale. The activity shows the mutual love, solidarity and sharing of the society, contributing to the implementation of policies and guidelines of the Party and State to help people with difficulties. BIDV and the Confederation of Labor have worked

CSR

Truong Thi Ngoc Anh, Vice President of the Central Committee of Vietnam Fatherland Front, spoke with BIDV Review about BIDV’s CSR activity

Please share your view on BIDV’s Tet gift program? together to bring Tet gifts to the poor people throughout the country for the past seven years and we hope that this traditional activity will continue to be maintained by BIDV.”

improve the quality of the poor’s lives, especially vulnerable women, and reduce the maternal mortality ratio.

“BIDV will actively coordinate with the Provincial Fatherland In addition to the Tet gifts, BIDV Front Committees and also announced the sponsorship Confederations of Labour in of health insurance cards for provinces and cities to bring the poor women of the country the gifts to each locality and with a total value of VND5 billion the poor,” said Truong Nguyen (USD240,000). Phuong Lan, Vice Chairman of BIDV Trade Union. “BIDV will BIDV will work with the Ministry finish the presentation of gifts of Health, and before 3 February the State Bank of 2015. Also, BIDV BIDV has donated a total Vietnam to buy will work with of over 404,000 gifts 27,000 health the Ministry of worth VND111.2 billion insurance cards Health to quickly (USD5.2 million) to the in 2015. With give health poor since 2009. The bank BIDV’s support, insurance cards has been recognised some 27,000 to poor women to for its social welfare disadvantaged help them access activities by Government women will have health services.” ministries and agencies the opportunity to access stateprovided health care.

with many awards.

Currently, many women are at high risk of serious health problems due to their poverty and limited access to healthcare service; therefore the health insurance cards will help

With the announcement of the Tet gifts and health insurance cards for the poor, BIDV brought much happiness to needy families throughout the country, giving them more confidence and ability to overcome their difficulties. ¡

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Actually, BIDV’s great social responsibility made me feel moved. Though banking operations in this period are in difficulties, BIDV stepped up to its clear responsibilities in supporting the poor. How can we involve businesses in supporting the poor to have a warmer Tet? Actually there are still many poor people in need of assistance, especially during Tet festive season. The hearts and love of the BIDV staff are of great signiﬁcance to them. We are also working with social and political organizations to celebrate Tet for the poor. However, the fund is limited at just VND 3 billion (USD140,000) and we try to ensure that poor people have a happy Tet. How do you see the future of this meaningful charitable activity? I am glad to know that BIDV has launched the program for seven years. BIDV implements this social security program out of compassion for and the lives of the poor. Therefore, I hope the media and those who know this program will spread information about it widely to inform and encourage other people and organizations to join. Vietnam Fatherland Front has also made efforts to connect organizations and businesses to support the poor. I hope BIDV will continue to achieve success in 2015 and maintain and contribute more to this charitable program. ¡

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THY HUONG

Putting down roots Robert Speers, Chief Distribution Officer at BIDV MetLife, a joint venture between BIDV and MetLife Inc., talks to BIDV Review about his plan for Lunar New Year (Tet) holiday and his life in Vietnam.

Please tell our readers a bit about your background. I am originally from Canada. After completing my University degree, I decided to take a year to travel and see Asia and Australia. After my travels, I joined a direct sales company and helped to develop my strong interpersonal, selling and leadership skills. In 1996, I set up my own company in Australia and then spent the next six years building the companyâ&#x20AC;&#x2122;s operations

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in Singapore and Hong Kong. After six years, I wanted a new challenge and an opportunity to continue learning, so I sold my company and joined American Express with whom I worked for five years. In February 2010 I joined MetLife in their Asia Regional Office in Hong Kong. I spent the first three years working with MetLife companies in Hong Kong, China and Korea, helping to improve our bancassurance partnerships in those markets.

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In June 2012, I came to Hanoi for the first time and met with the team at BIDV to start discussions on a potential long-term partnership between our two companies. I feel very lucky to not only have been a part of the original team that worked on putting together this great partnership, but because MetLife valued my contributions and asked me to stay on as Chief Distribution Officer for the new Joint Venture.

the food, especially the freshness of the ingredients and simplicity of the cooking style. The people here are young and energetic, willing to work hard and learn and share their experiences. That is what makes working here so enjoyable.

How many times have you been to Vietnam and what do you think about life here?

I can truly say that Vietnam is very unique. The people, language, cultures and foods are quintessentially Vietnamese. I have only travelled to a few places in Vietnam including Hanoi, Ha Long Bay, Ho Chi Minh City and Da Nang (during its rainy season), and I enjoyed seeing the different sides of Vietnam as well as exploring the countryside. I’m excited to explore more of this diverse country.

I’ve lost count of how many times I’ve been to Vietnam now! Maybe 60 times? I love the food and atmosphere. Originally, I saw Vietnam as an opportunity to challenge myself personally and professionally and a great place to start a family. I love

You have travelled to many countries all over the world, could you make some comparison between Vietnam and other countries?

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The Lunar New Year (Tet) is near and Vietnamese people are preparing. Have you ever spent Tet in Vietnam? Do you have any plans during the Tet holiday? I have yet to experience being in Vietnam during Tet, but 2015 will be my first opportunity to do so. My family and I are planning to take some vacation time off as we were very busy through the Christmas and New Year season preparing to finalize our move from Hong Kong. We plan to spend time in Da Nang, Hue and Hoi An and look forward to enjoying the festivities with the local Vietnamese people there. As with most festivals around the world, the food is what I enjoy most and so I look forward to sampling some more of the traditional Vietnamese food during the holidays. ¡

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THUY HANG

Eden of the Northwest Moc Chau is one of the most alluring destinations for photographers thanks to its rolling green tea hills, resplendent valleys of Mexican sunflowers and the delicate white of endless peach blossom fields

rriving late in Moc Chau, we stopped at the Ang village pine forest - a famed destination.

What we found was a very mysterious, natural and wild place. In contrast to the cold climate in the Northwest highlands at this time, we later felt warm when gathering around a fire,

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chatting and dancing with friendly local Thai girls and boys to the sound of their graceful flute and gong music. The climate is a special gift of the Moc Chau plateau. In the spring, it is very charming with wildflowers blooming along the road. In autumn, the whole plateau is covered with a beautiful

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Just 200 km northwest of Hanoi along Highway 6, Moc Chau is covered in vast ﬁelds of white peach blossoms, Mexican sunﬂowers and lush green tea hills. In Moc Chau, you will also be impressed by the sight of white peach blossoms. Almost all the fields and hills in Moc Chau are blanketed in the soft white of peach blossoms, mixed with the green color of maize, green tea and the deep brown of the fertile soil. From a distance, the valleys look like a fluffy white cloud while the air is filled with a sweet floral fragrance and a cool mist. What’s more, when the sun rises the young, green tea leaves shimmer with tiny dew drops as beautiful as crystal. and fresh green color. Apart from the beauty of the vast flower fields, Moc Chau is also known for beautiful sites such as Dai Yem waterfall, green tea hills, the pine forest in Ang village and historical and cultural ethnic villages.

attractive. After heading through the

The Dai Yem waterfall is particularly

untouched.

forest, you will see two streams of water cascading dramatically down from the height of about 100 meters. The lake into which the falls crash is always clean and clear and the scene surrounding it is very natural and

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Following our tour guide, we visited orchid and lily gardens with all sorts of colors among which houseson-stilts were hidden behind early morning fog. Lush green meadows with cows grazing evoked a feeling of peace. Making these discoveries, we felt pride and love for this country and its people. ¡

LIFESTYLE

HA ANH

The buzz

he Cai Rang market is the largest floating wholesale market in the Mekong Delta. It is located just a 6km 30-minute boat ride from Can Tho city. The main market is open from 3am to 9am but some vendors continue until noon. The market remains a hive of activity even during the New Year (Tet) holiday.

Deep in the Mekong Delta, the Cai Rang floating market buzzes with the trade of fruit and other agricultural products sold from boats of all sizes making it a wonderful way to get a glimpse of everyday life in the South of Vietnam.

During the early morning, a fleet of large boats anchors, creating lanes that smaller boats weave in and out of. This is not really a place for souvenirs - people come here instead to buy large quantities of goods, mostly foodstuffs. This means that for tourists it is a great place to get an idea of what water commerce in the Delta really looks like. Life on the river is sometimes richer than that on land. Joining the lively atmosphere of the market, visitors can observe and learn about the life of many generations living on the same boat. Some boats are like mobile houses on which people plant flowers, raise animals, watch TV and even keep their motorcycles.

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At the Cai Rang ﬂoating market, beside watching the boats packed with fruits, you also have the opportunity to enjoy the southern dishes of Can Tho city, such as noodle soup (hu tieu). Tourists can also sample the local coffee and enjoy ﬂoating pubs. Today, though the road network has developed, the floating market continues to thrive. At this time of year it is crowded with boats lining the river to sell good for the Tet festival so they are filled with the brilliant colors of flowers. Every day, the market receives thousands of boats from the regions selling and buying essential goods.

A WORLD APART Unlike onshore markets, the boats are not arranged by the type of goods they sell. Moreover, the sellers do not have to call out about their goods because they can be seen from a distance and what’s more, their cries would not be heard above the noise of boat engines. It is quite an experience to see that boats advertise what they are selling by hanging samples on the top of a long pole called cay beo. If visitors want pineapple, they simply scan the horizon for the fruit hanging from one of these poles. They also have the opportunity to interact with some of the floating traders. Most of the

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sellers are farmers and they sell what they grow at a reasonable price with a friendly attitude. The inherent characteristics of the Cai Rang floating market have remained unchanged for years making it an interesting destination for those who love rivers and want to see the life of southerners in the Mekong Delta. ¡

Rough Guides (England) describes the Cai Rang ﬂoating market as one of the most impressive markets in the world for its originality and friendliness.

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PHAN LOC

When the spring comes with its light rains and warm sunshine, the people of Binh Dinh are eager to enjoy a traditional Tet holiday complete with the sounds of Bai Choi.

ai Choi is a game in which people sing folk songs in village huts while using playing cards. No one knows exactly when Bai Choi appeared, but when the year-end comes, we can see and hear people singing Bai Choi from morning to night. After a day of hard work, Binh Dinhâ&#x20AC;&#x2122;s farmers sing Bai Choi to ease their tiredness, while in the evening, people gather beside a warm fire to sing and express their love of life. The game of Bai Choi often takes place in a wide yard in front of communal houses and brings the entire community together. Bai Choi performances involve five or six players. One of the cottages contains a troupe of musicians and instruments. A deck of playing cards is split in half, with one stack distributed amongst

the players, and the other placed in the central house. The cards are then stuck onto bamboo poles and erected outside the cottages. The game mastersinger delivers a flag to each cottage, all the while singing Bai Choi before drawing a card from the central house. Whoever holds the card closest in value to it wins. Bai Choi is a traditional aspect of local culture. Nowadays, with the desire to make this art form more familiar among tourists as well as Vietnamese people all over the county, the song lyrics have been adjusted to suit more kinds of player. The Binh Dinh Department of Culture and Information holds a regular Bai Choi weekend festival to attract people and promote this cultural art form. ÂĄ

Over the years, BIDV has sponsored traditional festivals in the Tet holiday, including Bai Choi signing. Bai choi was listed as a form of national intangible cultural heritage in late August, 2014. Early this year, an international workshop on Vietnamâ&#x20AC;&#x2122;s Bai Choi and similar arts was held in Quy Nhon city, capital of Binh Dinh province. The event is expected to help complete a dossier seeking UNESCO recognition of Bai Choi as an intangible cultural heritage in 2016. The expected cost to complete the dosier is VND8.25 billion of which Binh Dinh province will contribute VND2.03 billion and BIDV will cover VND2.52 billion.

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