BIDV Review 02

A Newsletter of Bank for Investment and Development of Vietnam JSC

Issue No. 2 | Mar 2015

11 years

an Excellent Brand

Securing

the macroeconomy

EXECUTIVE PRODUCER QUACH HUNG HIEP Senior Executive Vice President EDITOR BRANDING AND PUBLIC RELATIONS ENGLISH LANGUAGE EDITOR ROBERT SHERWOOD TRANSLATORS NGUYEN TRAN TRANG TRINH

Cover photo: Pham Quang Tung, BIDV's Senior Executive Vice President represented the bank to receive the 2014 Vietnam Excellent Brand award in Hanoi on 21 March 2015.

HEAD OFFICE 18th Floor, BIDV Tower, 35 Hang Voi str., Hoan Kiem dist., Hanoi, Vietnam Tel: (+84) 4 22200484 Fax: (+84) 4 22225316 Email: bantindautu@bidv.com.vn Licence No. 14/GP-XBBT dated 11 February 2015 by the Ministry of Information and Communications.

Printed at Vietnam Book Printing Joint Stock Company.

Editor’s Letter

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Dear readers, We are pleased to announce that our first BIDV Review was published in February and that in your hands now is our second issue. It includes up-todate, essential news about the bank and its partners since the Lunar New Year.

Now, three months after Tet, BIDV has started the year off dazzlingly, already having taken home a raft of awards, most notably Asian Banker Magazine’s Best Retail Bank in Vietnam for 2015.

More is yet to come.

Founded in 1957, this year BIDV will celebrate its 20th anniversary as a commercial bank in Vietnam (1995), a new milestone that demands ever greater accomplishments. 2015 is also marked by a number of important anniversaries in Vietnam, including 40 years since the liberation of South Vietnam. We expect this year to be lucky and prosperous for both the banking sector and economy in general.

As a leading commercial bank in Vietnam, BIDV has continuously been

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at the forefront in helping support people, businesses and the nation.

BIDV is affirming this position by further expanding its business with leading financial institutions, most recently a partnership to accept JCB cards at the bank’s ATMs and POS. Following the inaugural issue, BIDV Review No.2 features articles on key activities of the bank, its international investments, traditional and new products and services, corporate social responsibility, and more.

BIDV Review also features a look at some festivals and tourism destinations in Vietnam and abroad to give you a calming sojourn between the analysis.

This publication is for you - our customers, shareholders, partners and friends - and we hope you take a moment to give it a read each month.

We welcome and appreciate any input you may have as well as contributions you think would be of interest to our readers.

Please enjoy BIDV Review.®

contents

BIDV HIGHLIGHTS 4. The value of inspiration and trust

MARKET MOVEMENTS 14. Securing the macroeconomy

16. Vietnam regains foothold in corporate bond market

6. Nghe An investors meeting forecasts

18. BIDV gold trading makes brand glitter

investment influx

8. The rise of a retail bank 10. BSC: Your partner in success

20. Stock analysts hot on BID INTERNATIONAL INVESTMENT 22. 20 years of overseas expansion 12. Strength in the seas

24. A catalyst for change 26. LaoVietBank holds Customer Conference 26. BIDV IT lends Laos a helping hand 27. HAGL to grow agriculture business in Laos

13. BIDV supports Thai language courseÂ

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contents

PRODUCTS & SERVICES 28. BIDV network welcomes JCB cardholders

38. 11 years an Excellent Brand 38. MetLife named World’s Most Admired Company 39. BIDV sweeps Fixed Income Poll 40. BIDV named Vietnam’s Best Retail Bank 2015

29. EduCare –For your children PARTNERS 30. A prosperous rapport 32. BIDV and Sungroup: A bright partnership 34. Investor Relations – Our ethical priority

LIFESTYLE 42. Twice the happiness and prosperity

36. BIDV, Nanto Bank sign cooperation agreement 36. BIC pays out key man insurance

44. The allure of Binh Dinh

ACHIEVEMENTS & AWARDS 37. BIC wins finance award

45. Coming up: Binh Dinh Tourism Meeting 2015 CSR 46. Raising bridges for the poor 48. Fostering the future

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bidv highlights

Nguyen Tran

The value of

inspiration and trust Last month BIDV was honored to receive the Chairman of the Central Committee of the Vietnam Fatherland Front Nguyen Thien Nhan. The bank’s staff are excited to enter the New Year with greater confidence and continued success.

Offering Inspiration On the morning of February 24, the first working day of the Lunar New Year, Mr. Nhan, also a member of the Politburo, and leaders of government ministries and agencies paid a Tet visit to BIDV employees and officers.

BIDV’s Senior Executive Vice President Le Kim Hoa presented an overview of the bank’s business performance in 2014 and an action plan for 2015. In recent years, BIDV has made strong developments, successfully meeting all its business targets. The General Department of Taxation announced BIDV is one of only ten businesses paying the highest rate for corporate income tax. Furthermore, measured by total assets BIDV is one of the biggest banks in Vietnam. Credit growth was in accordance with the direction set out by the government and the State Bank of Vietnam (SBV). Credit quality has been well managed and the nonperforming loans (NPL) ratio fell.

Expressing thanks to Mr. Nguyen Thien Nhan and leaders of government ministries and agencies for their visit to the bank, BIDV

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Chairman Tran Bac Ha shared positive reports on credit growth and economic indicators in the first days of 2015. Mr. Ha said that in 2014 the banking sector made a significant contribution to supporting economic growth and that in 2015 it has the responsibility to promote strong socio-economic growth.

Mr. Ha also reported on the development of a scheme to support agriculture and rural development, especially regarding the application of modern technology. Whilst more than 70 percent of the population currently live in rural areas, he said that agricultural production has not adopted hi-tech equipment, resulting in lower yields and poor quality products. Currently, BIDV is acting as the primary bank supporting Rural Finance Projects I, II and III. According to the World Bank (WB), this is the best chain of three projects from around the world with respect to the application and improvement of living standards of rural populations, as well as supporting agricultural development. BIDV is also actively involved in other agriculture investment funds.

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Placing trust Extending congratulations to BIDV on its performance and achievements in 2014, Fatherland Front Chairman Nhan also acknowledged the bank’s contribution to the development of the national economy. Mr. Nhan appreciated BIDV’s research with 108 reports and reviews on key areas such as local, regional and international economics, macroeconomics and the banking system. Mr. Nhan praised BIDV for its role as head of the associations of Vietnamese investors in Laos, Cambodia and Myanmar.

Discussing upcoming important issues, Mr. Nhan willed BIDV to promote its creativity, aggressively implement action plans and so achieve great success in the new year. He also noted that BIDV is a pioneering bank, which not only focuses on traditional investment sectors. It needs to research methods to support the agricultural sector in order to

BIDV work with the agricultural improve the efficiency of agricultural sector to evaluate and promote exports. According to Mr. Nhan, agricultural export insurance. This Vietnam has 12 agricultural products has the potential with the highest yields to bring a level of globally (including I hope BIDV will take efforts security to farmers. rice, fish, cashews, to study the competitiveness Currently, agricultural rubber and coffee, of input and output markets product insurance etc.), yet Vietnamese for Vietnam’s major is insubstantial. farmers’ income agricultural products to help Therefore, farmers is underwhelming fine-tune the policies. face risks arising from because they sell the fluctuations of their crops to Nguyen Thien Nhan, agricultural product wholesalers at low Chairman of the Central prices. He wanted BIDV prices. Paradoxically, Committee of the Vietnam to sustain its interest Vietnam's agricultural Fatherland Front and work with the productivity is high Ministry of Agriculture yet farmers’ income and Rural Development, the SBV and is low. Consequently, Mr. Nhan has the Ministry of Industry and Trade to asked BIDV’s research team to study review the current agricultural exports the competitiveness of the input and insurance model. output markets for Vietnam’s major agricultural products.

Given the recognition and the trust placed by Mr. Nhan, BIDV is committed Recognizing BIDV’s involvement in to giving its upmost in support of the life insurance sector with the economic development and in so doing establishment of a joint venture named help Vietnam stride forward. ® BIDV MetLife, Mr. Nhan proposed

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bidv highlights

Van Nguyen

Nghe An investors meeting

forecasts investment influx Over the past seven years, soon after the lunar new year, investors gather in Vinh City in Nghe An province to share their ideas about how to improve the local economy. This year BIDV partnered with the province to hold Nghe An’s New Year Investors Meeting on March 4, welcoming more than 800 local and foreign delegates and guests.

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lso attending was Mr. Nguyen Sinh Hung, Chairman of the National Assembly, and a number of other ministry and agencylevel leaders. They witnessed the granting of investment certificates to eight projects and the signing of another nine investment agreements with a total value of nearly USD867.5 million.

In 2014, Nghe An’s GDP growth rate reached 7.24 percent with GDP per capita of USD1,256, budget revenues topped USD356 million - up 20.7 percent against 2013, food production reached 1.2 million tons – a new record, and export turnover and growth in several sectors improved.

Also during this time the poverty rate fell from 13.4 percent to 10 percent.

of support industries and efficient and environmentally-friendly energy production. Nghe An will continue to work closely with and support and facilitate access for businesses and investors that have effective and sustainable projects in the province, with an aim to become a leading socio-economic and cultural hub in Vietnam’s north-central region.

High potential

Nghe An’s success in attracting investment is largely due to flexible policies and determined administrative reform. According to Mr. Nguyen Xuan Duong, Chairman of the province, in the coming time the investment environment will be further improved to ensure continued domestic and foreign investment with an emphasis on science and technology industries and others with high added-value.

Another goal is the development

A safe home for investment

Since it started in 2008, the New Year Investors Meeting in Nghe An has become a prominent meeting point for investors. The success of the previous six meetings has opened new opportunities for attracting investment in Nghe An and has contributed to the successful fulfilment of socioeconomic development and social security goals.

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This year’s meeting provided investors with a big picture view of socioeconomic development and investment in Nghe An in 2014 and plans for 2015.

Also discussed was the planning of Vinh City to 2030 with a vision to 2050. The meeting welcomed a raft of constructive input and recommendations for the government, National Assembly and provincial authorities.

bidv highlights

Ho Sy Hoa, a representative for Tuan Loc Construction Investment Corporation said that given the infrastructure incentives being offered at Dong Nam Nghe An Economic Zone, particularly in terms of land clearance costs, tax incentives, human resources training and credit, he believes huge investment will pour into Nghe An in the time to come.

To help Nghe An become even more alluring to investors, Mr. Tran Bac Ha, Chairman of BIDV, was frank in his outline of the weaknesses and limitations of Nghe An’s economy.

He said that the province’s economic growth rate was trending down because a number of goals had failed to be met – particularly in terms of economic restructuring. Mr. Ha presented a number of solutions for the development of the province with a focus on the six main pillars of “green growth”. He noted that a roadmap for green growth was a priority for the development of breakthrough industries that can help shape the economic structure of Nghe An. Mr. Ha also proposed at the meeting

At this year’s meeting, BIDV as the main sponsor and provider of funding signed master contracts valued at USD423 million for four projects needing a total investment of USD646 million. These are major projects in priority areas that promise significant breakthroughs in growth and budget revenue for Nghe An and the potential entry of other investment projects.

Also at the event, BIDV presented USD700,000 to the National Technology Innovation Fund to go toward Nghe An’s green growth strategy and USD465,000 for a program that teaches about economic integration to Nghe An’s young officers.

that the government support Nghe An in creating a “big push”, specifically supporting Nghe An in forming policies that attract investment, developing and advocating a special mechanism to attract particularly large FDI projects. He also suggested that Nghe An be added to the priority list for the allocation of funds from the National Technology Innovation Fund and the list of key national tourism locations which would make the province eligible for preferential tourism development policies.

Speaking at the conference, National Assembly Chairman Nguyen Sinh

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Hung said he well appreciated the success of previous investment promotion meetings in Nghe An and urged businesses and investors in the province to support each other and focus on quality of projects to ensure sustainable development. He noted that Nghe An should address current shortcomings to further improve the investment climate by making it more liberal and stable.

Mr. Hung also asked businesses and investors to strengthen their brands so they can better compete at the domestic, regional and international levels. ®

bidv highlights

Trang Trinh

The rise

of a retail bank As a giant player in wholesale banking before turning into a commercial bank in 1995, BIDV has since focused its efforts on retail services to ensure long-term sustainable growth.

The move into retail banking Since the early 1990’s BIDV has been keen to attract more retail customers.

In 1994, at a time when people and businesses were highly concerned about inflation and therefore kept their money in gold or foreign currencies, however, BIDV already had 20 percent of its deposits from individual or corporate customers. In the following years, BIDV’s transformation into a commercial bank led to it promoting diverse products and services that attracted deposits and expanded the bank’s outgoing loan portfolio, enhancing the bank’s image in retail market.

Between 2001 and 2005, with the support of international financial institutions, BIDV successfully implemented project TA1 – Bank Modernization Phase 1. Thanks to the success of the project, BIDV’s deposits hit a record high VND43.9 trillion (USD2 billion) making up 49.82 percent of total deposits. This figure in 1995 was only VND1.7 trillion (USD79 million). 2005 was also a remarkable year for the bank’s card

business, when 293,000 bank cards were issued and the ATM network hit 200 machines, the second largest in the country.

Phung Thi Van Anh, former Chairman of BIDV said that from a bank originally known for specializing in credit to corporate customers and investment in development projects, BIDV has gained significant ground in attracting retail customers who have great faith in transacting with the bank.

In December 2008, BIDV started phase 2 of the bank modernization project – TA2. Accordingly, the bank adapted its operational model to fit international practice. Accordingly, the retail team was formed as separate from the wholesale. Since that time, the bank has been aggressive in its pursuit of retail banking.

Since 2010, Vietnam’s economy has faced a raft of challenges. BIDV battled with intense competition given liquidity pressures and a high non-performing loan rate. But determination and wise guidance from the Board of Directors, combined with great efforts from staff, paid off and the bank overcame its difficulties and is now in a new period of rapid development.

In 2014, BIDV’s retail loans grew substantially reaching a three-year high of nearly 36 percent. Deposits from retail customers rose by 20 percent, retail services by 24 percent, retail

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revenue/total revenue by 21 percent and the number of retail customers spiked to 65,000.

A vision to 2020 Over the next five years (2015-2020), BIDV has the goal of becoming Vietnam’s leading retail bank in terms of both market share and service quality to meet shareholder expectations. Specifically, the bank will standardize its business model at branches and each branch will act as a

bidv highlights

direct point of sale, primarily providing financial solutions, product packages and personal financial services.

BIDV also plans to set up compact retail branches in major cities that will be convenient banking points with 5-7 staff members that can serve 800 to 1,000 clients providing basic products and services.

The bank also plans to set up a mobile sales team that can do house-calls or meet with customers at locations of

their choice. Perhaps most importantly, knowing the importance of modern, technological services, BIDV plans to develop a hi-tech system of ATMs with more functionality as well as internet, mobile, phone, and SMS banking services including Autobank and a Contact Center that are convenient and easy to use.

Heading towards 2020, BIDV has high expectations for retail banking.

The bank plans to increase net retail income to total operating income (after

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provisioning) to 50 percent in 2020. It also has the goal of ranking second for retail credit, being in the top three for number of cardholders, and third for the size of its POS network in Vietnam.

The bank hopes to reach 13 million customers that year.

BIDV is onward and upward, but these are just the early phases of the development process and it will continue to make strong, sustainable investments into improving quality and efficiency in the coming years. 速

bidv highlights

Kim Chi

BSC:

Your partner in success As one of the first brokerages established in Vietnam, BIDV Securities Company (BSC) has achieved a leading position in providing investment banking.

Taking the reigns

A strategic advisor

BSC’s stable development and prestige is a result of its core values and longterm vision.

Under its core values and underlying principles of sustainability, a strong corporate culture, and a dedicated and skilled staff, BSC’s investment banking services – mainly equitization, IPO, corporate finance restructuring, and fund management advisory services – have gleaned major success with a string of high-profile deals.

Closely adhering to these, after more than a decade of development BSC has step-by-step made its mark on the Vietnamese stock market. In 2013 it made impressive strides by achieving the largest bond brokerage market share on the Hanoi Stock Exchange and has also set its sights on becoming the leading investment banking service provider in the country.

One such deal was providing IPO and equitization advisory to Vietnam Textile and Garment Group (Vinatex), the first to restructure in 2014. BSC

worked with Vinatex to organize successful roadshows in Hanoi and Ho Chi Minh City in July with the number of attendees well above what was expected. Vinatex has charter capital of around USD233 million and put 24.4 percent, 122 million shares, up for sale at its IPO. These shares were listed on the Ho Chi Minh City Stock Exchange and another 120 million shares sold to strategic investors; the remainder was offered to officers and employees of the group. The IPO raised a total USD58 million for the group.

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bidv highlights

Vietnam Airlines (VNA), another BSC client, made headlines last year when it conducted one of the biggest IPO deals in 2014. VNA IPO and equitization advisor Morgan Stanley invited BSC to participate in the bidding process and since 2012 the brokerage has acted as IPO, equitization and local listing consultant. The airline’s IPO sold more than 49 million shares, or 3.4 percent, for more than USD46.5 million to over 1,600 investors.

mobilize funds from the primary market. As a bond consultant and underwriter, BSC supported these customers in accessing more than USD930 million. The most notable transactions include the Vietnam National Coal and Mineral Industries Holding Corporation (Vinacomin), BIDV, the Investment and Industrial Development Corporation (Becamex) and Huong Vuong Fisheries Joint Stock Company (HVG).

In terms of the bond market, BSC has helped 10 businesses and institutions

BSC consistently pursues a strategy of rising above client expectations,

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looking to ensure long-term development value. As a professional and prudent financial consultant, in every contract BSC is careful to evaluate and propose optimal solutions. Through consultancy options, BSC’s expert team devotes energy and time to advising their clients to take an objective view of their past and present financial picture, and particularly to form a future strategy that not only helps them grow but also enhances their competitiveness. Ž

bidv highlights

Thu Trang

Strength in the seas As the first commercial bank to jump on board Decree 67, BIDV has just signed a credit contract with fishermen in Quang Nam province to build fishing vessels. The debut ship from this agreement has just been launched and is set to make its mark on the development of Vietnam’s fishery sector and the protection of national sovereignty.

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uang Nam is located along 125km of Vietnam’s southcentral coast. It has huge potential for the development of its marine economy, which would greatly benefit local fishermen and local economic development.

Given the urgency of Decree 67 on a number of fishery development policies, on March 12 BIDV Quang Nam branch signed a credit contract for off-

shore steel shipbuilding, a first for the bank in Quang Nam. Accordingly, local fisherman Phan Thu has been granted a loan to build a new steel ship valued at USD590,000.

BIDV lent him 93 percent of the total amount with collateral set as the ship itself. Construction of the ship will start in April and it will be for launch 4-5 months later.

According to Thu, the loan has made Decree 67 a reality for local fisherman in Quang Nam and is encouraging local households to continue their fishing businesses.

Quang Nam province now has 64 households/fishing businesses eligible for loans under Decree 67, accounting for 70 percent of the total number of ships in the province. Of these, BIDV Quang Nam has approached and introduced the program to 20.

Earlier, BIDV signed lending contracts

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with fishermen for new vessels under Decree 67 in Thua Thien-Hue, Binh Dinh, Khanh Hoa, and Vung Tau. The total value of these loans, to build seven new ships, is more than USD4.5 million. Most are steel in accordance with the Decree.

In total, BIDV has approached 531 fishing business customers with total capital needs of around USD74.6 million, mostly for the construction of high capacity steel-hulled ships for offshore fishing.

Le Trung Thanh, Senior Executive Vice President of BIDV, said that besides offering credit under Decree 67, BIDV has implemented an additional 3 loan packages for corporate and individual customers to develop fisheries infrastructure, reorganize fishing collectives, and increase seafood production and processing capacity to aid in developing the local marine economy and protecting national sovereignty. ®

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Phuong Thao

BIDV supports Thai language course

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n March 16 a Thai language course for Binh Dinh officials started at Udon Thani Rajabhat University in Thailand. This course was highly lauded by Binh Dinh province, BIDV and partners of the Nhon Hoi Petrochemical Complex project.

Attendees will focus on professional topics in Thai such as oil and gas, banking and culture. On top of the main curriculum, at least three extra-curricular trips are planned to neighboring provinces in Thailand.

At the end of the course, graduates will be granted a certificate from the

president of the university. The course is priced at nearly USD1,600 including tuition, housing and field trips. It will last eight months.

The Nhon Hoi Petrochemical Complex project in Binh Dinh (Victory Project) is listed in the Vietnam Oil and Gas Industry Development Plan approved by the government. The project has a processing capacity of 20 million tons of crude oil per year and is expected to start operations between 2021 and 2025. To ensure Binh Dinh officials have the professional competence and communication skills needed to work

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with the project’s Thai partners, BIDV proposed that Binh Dinh send officials to attend an intensive Thai language course. Given BIDV’s strong reputation, the course was approved by Udon Thani Rajabhat University – one of the most reputable institutions in Northeast Thailand. In the interest of better staff training, BIDV sent three of its own staff to join the course.

It is hoped that through the language course, the attendees will serve as a bridge connecting different parties during the implementation of the projects by the Thai partners. ®

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Pham Hanh

Securing

the macroeconomy By the end of last year, Vietnam’s economy was showing clear signs of recovery after a long period of difficulty. This was largely attributed to the government’s flexible, proactive and synchronous management, particularly in terms of monetary policy.

Flexible management Since 2011 the primary objective of Vietnam’s monetary policy has been to control inflation, stabilize the macroeconomy, support sustainable economic growth and ensure the safety of the credit system.

That said, while the overarching effort has remained the same, the State Bank of Vietnam (SBV) has been highly adaptive to the different challenges faced during that time. In the midst of a turbulent 2011-2012, the central bank was more rigid and cautious but since 2012 it has applied more flexible policies that are aimed at boosting growth.

Between the beginning of 2011 and the second quarter of 2012, the absolute focus of monetary policy was reigning in fast rising inflation. The SBV took measures to drastically reduce M2 and credit growth from 31.2 percent and 33.5 percent in the first quarter of 2011 to 12 percent and 8.3 percent in Q1 2012, respectively. This helped to curb inflation from a record high 22.5 percent in the third quarter of 2011 to 6.9 percent in the second quarter of 2012.

From quarter three 2012 to now, monetary policy has shifted towards bolstering growth while still keeping

inflation under control. The goal has been to keep M2 for this period at around 15-17 percent per year and credit growth at around 12-14 percent per year. Inflation has remained stable, which has greatly helped balance the macroeconomy.

As much as macro policies have been of great use in improving the economic situation, so have monetary tools. The central bank has used interest rates and credit limits, among others such as required reserves for banks, exchange rates and open market operations (OMO) to mitigate credit growth and means of payment, also helping to ensure tight monetary management.

As the situation improved, the SBV was more flexible and open with those tools to push up growth while still keeping total means of payment in check.

Given the increasingly important role of banks in ensuring macroeconomic stability, the SBV’s monetary policy tools have also been used to create more favorable conditions for banks. These tools have included OMOs, refinancing rates, and interest rates to help stabilize liquidity. Interest rates and forex management have worked to manage foreign exchange rates. The SBV also issued supportive but strict regulations and laws for banks to follow.

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Still a way to go Thanks to the SBV’s management and guidance, Vietnam has made it through the storm and marked significant achievements in reducing inflation from 18.13 percent in 2011 to 6.81 percent in 2012 and then to 6.04 percent in 2013 and finally to 1.84 percent last year. Liquidity has been adequate and all commercial banks have reported an abundance of capital. The interbank market is stable and interest rates are falling; credit institutions and the money market is operating smoothly.

Other areas that have been reigned in are the forex and gold markets, which have led to greater faith in the dong.

The gap between the official and black market exchange rates was narrowed and abundant foreign currency supply, trade surplus and remittance growth have all contributed to the state achieving record high foreign currency reserves in 2014.

Another positive indicator in the 2011 to 2014 period was the steep drop of lending rates, which helped enterprises access needed capital to overcome difficulties. Interest rates have fallen from 17-18 percent at the end of 2011 to below what they were in 2005-2006 of around10 percent. At current, interest rates are no longer

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an obstacle for businesses looking to access capital.

Another boon has been the shift in credit structure toward the government’s priority areas, namely agriculture, rural development, export, SMEs, support industry, and high technology.

According to BIDV’s Research Center, monetary policy should and will continue to play an important role in macroeconomic stability. However, to make policy even more effective and synchronous, the center has suggested closer coordination between monetary, fiscal and other policies to ensure inflation stays under control and economic growth improves.

Accordingly the center has suggested that the SBV, Ministry of Planning and Investment,

Ministry of Finance, and Ministry of Industry and Trade cooperate to promulgate the Regulation on Coordination of Macroeconomic Management and Operation signed on December 1, 2014 and then evaluate macroeconomic conditions and propose solutions to achieve the government’s objectives.

Additionally, the development of the stock market and long-term capital market in line with the short-term capital market of the banking system will diversify capital mobilization channels thereby reducing dependence on banks. Towards this BIDV Research Center suggested the central bank and Ministry of Finance continue to expand the financial sector and issue suitable regulations to obligate transparency and information disbursement and reduce price manipulation to ensure the market develops stably.

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Finally, BIDV’s research team proposed that in the coming time the SBV strategically expand credit growth and security. This will help enterprises overcome difficulties, promote production and business development and solidify sustainable economic growth. ®

In the first 2 months of 2015, the macroeconomy continued to be positive. Index of Industrial Production (IIP) increased 2.2 times against the same period last year and disbursed FDI stood at USD1.12 billion. The total retail sales of goods and services is estimated to grow 11.4%. Credit and M2 growth reached 0.68 percent and 2.67 percent, respectively. Stable monetary market and low interest rate helped support enterprises’ operation and production.

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Nhung Nguyen

Vietnam regains foothold in corporate bond market

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In 2014 impressive reform was achieved in Vietnam’s financial system, helping to build strength and transparency. Along the same trend, the corporate bond market last year had its own remarkable achievements, suggesting a new cycle of prosperity.

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ccording to BIDV statistics, 2014 was the Vietnamese corporate bond market’s most success since 2010 with a total bond issuance value of approximately USD2.3 billion, up 40.5 percent compared to 2013. Bond portfolios have changed significantly over to longer tenures (5-year bonds made up 84 percent of total issuances). The bond coupon rate shot downward at an average rate of 3-5 percent, marking a 10-year low. First time issuers also offered new, more flexible structures.

Commercial banks shine All of the above is a clear demonstration of the impact commercial banks had on the corporate bond market last year. The total value of their issuances over 12 months totaled USD840.5 million (36 percent of market volume). Tenures were extended to upwards of 15 years, bond structures fell under international standards, and they were transparently priced based on the issuers’ reputation. Among the major issuers last year were BIDV (three issues valued at USD409 million), VPBank (one issue valued at USD93 million), and Techcombank (two issues at USD126 million).

Electricity and minerals seize the day 2014 was also a successful year in terms of bond issues for electricity and mineral companies. They had record issue volume even with yields 1-2 percent per year lower than other corporate bonds offered in the same period. In some cases they were

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oversubscribed two to three fold.

The biggest bond issue was held by Thai Nguyen Trading and Investment Co., Ltd. (a subsidiary of Masan) with USD316 million, followed by Vietnam National Coal and Mineral Industries Holding Corporation (Vinacomin) and the National Power Transmission Corporation with nearly USD140 million and USD70 million, respectively.

A pioneering approach Also in 2014, for the first time fisheries enterprises issued Cross Currency Swap (CCS) bonds. The product helped businesses minimize their VND funding costs with all-in costs equal to the foreign currency lending rate. All doubts were washed aside by two issues

by Minh Phu Seafood Corporation (USD23.3 million) and Hung Vuong Corporation (USD46.5 million).

Masan Consumer Holding also marked a first in Vietnam with its bonds backed by the Credit Guarantee and Investment Facility (an institution under the ADB with a credit rating of AA by S&P). This opens up a whole new channel of credit for domestic businesses considering bond issues.

What is to come Vietnam’s GDP growth in 2015 is expected to continue its upward trend while the macroeconomy will also be strengthened thanks to low inflation, lower interest rates, and good liquidity in the financial market. Simply put, this means high potential for the corporate bond market. ®

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Le Dinh Quang

BIDV gold trading makes brand glitter Only a year after launching its gold bar trading business, BIDV has not only reported considerable profits but has also earned valuable experience.

First to market BIDV was one of the first banks to consult the State Bank of Vietnam (SBV) on operating in the financial market, and particularly the gold market. The bank first did careful research and then was prepared to propose to the government to establish a national gold exchange, aimed at stabilizing the gold market.

In the past Vietnam’s gold market was highly turbulent and there was a huge gap between domestic and international prices. Then the SBV intervened and laid out strict regulations for gold bar sellers. Since, the market has been more stable.

After meeting the central bank’s stringent requirements, BIDV was

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in Hanoi. Following that, other transaction points were added in cities such as Binh Duong, Ho Chi Minh City and Danang, bringing the total number to nine.

A range of benefits After a year of operations, gold bars have gradually become the favorite of all BIDV’s products and services.

Besides sustained profits, the product has helped complete the retail package for individuals. The bank can also earn additional fees by storing customers’ gold, creating a new source of deposits.

BIDV started taking part in gold arbitrage at a time when the SBV was taking considerable measures to restrict the market. Resultantly, gold was less attractive. In the past the gap between the buy and sell price of gold was around USD7 to USD10 per mace.

But currently this gap has significantly narrowed to around USD2-3. The gap on the interbank market hovers between 50 cents and nil.

Given its brand reputation, service quality, safety and convenience, BIDV has attracted numerous gold trading customers. In 2014 alone nearly 2,000 gold transactions were conducted with around 1,000 customers, up 200 percent compared to 2013. Sales among the first banks to be officially licensed for gold trading in Vietnam.

The bank’s participation in the market has promoted its image and position and has also provided an opportunity to launch new products and diversify its product portfolio.

Well aware of the risks involved in the gold bullion business, including price volatility, gold quality, transportation and ethical risks, BIDV was careful in establishing sound business practices, trading facilities and IT support.

BIDV’s first priority when it started operations was mitigating risk. Trading was first implemented in a few select pilot branches in 2013 and then was rolled out to the bank’s network.

On May 10, 2013, the bank officially opened two gold trading centers

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revenue from gold through the bank’s branches rose 3-fold against 2013.

Thanks to its secure gold storage service, BIDV has attracted thousands of taels from customers, many of whom do not even trade with the bank.

Attracting this much gold has helped BIDV raise its total deposits. Individual customers are sound deposit sources because they often are highly stable sources of funds. The gold business helps attract new capital from retail customers and has brought in customers from other banks, in some cases high-profile accounts.

The next step By the end of 2014, just over a year after opening gold transactions, BIDV has made tremendous gains. Deals are carried out smoothly between branches, with headquarters and with customers.

In the coming time, BIDV will continue to expand its gold business. New outlets, expanding the customer base and establishing trade with the SBV and partners in the market are important steps to promote the brand. Once the Vietnam National Gold Exchange is established, BIDV anticipates being a major player in further developing the gold market. ®

market movements

thanh huyen

Stock analysts hot on BID

In the first two months of this year, bank stock rose considerably by 14.9 percent. Among these, BIDV (HOSE: BID) saw the highest increase of 48.8 percent. The closest behind BIDV were Vietnam’s other two largest banks Vietinbank (CTG) and Vietcombank (VCB) with 40.6 percent and 23.5 percent, respectively. Liquidity also improved with an average 20.1 million shares traded per session (up 183 percent), a fantastic turnaround against 2014.

up and away According to Military Bank Securities Company’s flash note on BID, the bank looks to earn a pre-tax profit this year of USD313.3 million with an EPS of VND1,698 and a Forward P/E of 9.3x. The company supported this positive outlook with four major factors. The first is the increase in net interest income thanks to good credit growth and improved NIM compared to 2014. The second was the expected drop in the cost of loan provisioning.

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“In addition, BIDV has more transparent assets than the system’s average and the banking system in general is in a recovery period,” read the flash note.

Positive outlook According to Ho Chi Minh City Securities Corporation (HSC), BIDV’s net interest income will rise 16 percent to USD844.5 million, while it forecast that BIDV’s other sources of income, such as net service earnings and

market movements

revenue from forex trading would continue to go up. The brokerage also anticipated that BIDV’s income from the settlement of non-performing loans would increase 10 percent yearon-year to USD93 million. “Given this, we expected the operations revenue of the bank to grow by 15 percent to reach USD1.16 billion.”

Moreover, HSC said that BIDV shares will continue trending upward thanks to short-term catalysts such as high business targets for 2015 and insistence that a strategic partner pay no less than VND18,500 per share.

Efficiency and profitability KT Zmico Securities Company Limited (Thailand) assessed that the Forward P/E and Forward P/B of BIDV shares are low compared to other banks, reaching 10.7x and 1.0x, respectively.

KT Zmico experts said such figures

stocks, particularly blue chips such as VCB, BID and CTG. A number of professional investment institutions have assessed that the advantages of BIDV shares include a large customer base, low capital cost, and high provisioning over the past two years.

These funds also expect BIDV to hold a successful share issue to a strategic After Tet, foreigners investor, thereby raising continued to be capital and increasing the net-buyers of efficiency.

Vietnamese stocks in

would help the bank attract strategic partners and therefore reduce the level of state ownership. “We foresee the efficiency and profitability potential of the bank going up after a successful sale to a strategic partner and once retail operations are expanded.”

Significant advantages

According to research conducted by BIDV Securities Company general and BID in Recently BID has been a hot (BSC), the biggest funds particular. tip from brokerages and as in Vietnam have only a result, price and liquidity allocated 3 percent of have gone up significantly. After Tet, their portfolios to banking stocks foreigners continued to be the netdue to uncertain market conditions buyers of Vietnamese stocks in general (market capitalization of funds on and BID in particular. the VNIndex accounts for 22 percent).

But as the market improves and This is a good sign that BID will banks strengthen, it is expected that continue to rise. ® funds will reallocate a significant amount of capital to buying up bank

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international investment

Nguyen Chi

20overseas expansion years of

In the context of struggling domestic and global markets, many local banks have been battling to maintain market share. However, from its first days of operation, BIDV defined international trade as key to its business strategy.

developing strong brand recognition regionally and internationally, BIDV was the first bank to accede to international credit rating and accounting standards.

Solid foreign market expansion

In 1996, BIDV was the first domestic bank to hire a reputable international auditing firm. Financial audit reports were produced in accordance with Vietnamese accounting standards (VAS) and international ones (IFRS).

Early on, BIDV defined its target customers and partners as being both domestic and international.

From 1990 to 1994 BIDV established banking relationships across Asia (including with Standard Chartered Bank Singapore and Sumitomo Bank of Japan). Accounts were opened in major foreign currencies such as USD, JPY and GBP. In 1994 the bank initiated international payment services for domestic and foreign partners.

Coinciding with the surge in international cooperation when Vietnam integrated more deeply into global markets, BIDV expanded its network. It established joint ventures with many foreign partner banks. For example, VID Public Bank was formed in cooperation with Public Bank Berhard Malaysia and LaoVietBank was established as a joint venture with Banque Pour Le Commerce Exeterieur Lao Public (BCEL).

BIDV contributed capital to establish BIDV - Vietnam Partners Investment Management JV Comany (BVIM), the Vietnam – Russia Joint Venture Bank (based in Vietnam) and Lao Viet Insurance Company (based in Laos). In Cambodia it set up the

Cambodian Investment & Development Company (IDCC), Cambodia Vietnam Insurance Plc (CVI), Bank for Investment and Development of Cambodia Plc (BIDC) and Cambodia – Vietnam Securities Plc. Other companies and branches were also located in foreign countries.

Besides the establishment of direct business units, BIDV has also established representative offices in Cambodia (2009), Myanmar (2010), Laos (2011), and the Czech Republic (2012), as well as in other markets in the coming time. The aim is to create conditions for the bank to further expand business activities to become a leading banking and financial group in the region.

BIDV has an active membership of many international organizations.

These include but are not limited to the Asian Bankers Association (ABA), China-ASEAN Inter-Bank Association (CAIBA), and the ASEAN Business Advisory Council (ASEANBAC). The bank played important roles in the Association of Vietnamese Investors in Cambodia (AVIC), in Laos (AVIL) and in Myanmar (AVIM), supporting Vietnamese investment in those countries.

In addition to promoting its image and

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In this regard, BIDV was ahead of its time. Not until 1999 did the State Bank of Vietnam require domestic commercial banks to have independent audits and currently there are still many banks only applying Vietnam accounting standards.

In 2006, BIDV was rated by international credit rating firm Moody’s and in 2010, BIDV invited Standard and Poor’s (S&P) to be the second credit rating provider. In 2014, Moody’s assessed BIDV to have an extensive financial network and the best payment system in Vietnam.

Standard & Poor’s ratings of BIDV reflected the bank’s stable operation.

Linking for Leverage By the end of 2014, BIDV had established relationship with over 1,700 banks and bank branches in 122 countries and territories worldwide.

To facilitate international payment activities all over the world, BIDV has opened over 35 Nostro accounts at leading banks worldwide.

international investment

BIDV continues to attract deposits from and provide loans to financial institutions. Figures for deposits and credit grew impressively over 2014, helping to ensure BIDV’s liquidity balance in particular and support the Vietnamese banking system in general.

In 2014, the total amount of overseas Letter of Credit refinancing reached USD427.3 million, which was a twofold increase on 2013. Commercial loans to foreign institutions hit USD986.8 million, a rise of roughly 30% year on year. Total import-export payments emanating from BIDV reached USD13.3 billion and fees from trade finance amounted to about USD17.6 million.

By the end of 2014, BIDV provided ratings and loans to more than 100 domestic and financial institutions (approximately 40 domestic).

Currently, credit ratings and loan limits have been implemented flexibly, meeting the transaction demands of financial institutions.

capital worth of USD4 billion. BIDV was also assigned by the World Bank and government to manage and implement three rural finance projects with funding valued at USD548 million.

Besides traditional product lines which are the strengths of the bank, a series of new products and services integrating modern technology with the aim of maximizing benefits to customers and meeting market demand were released. They included online bill payment, online state budget collection, import-export factoring and an export tax payment guarantee system.

In conjunction with banking agents, BIDV has maintained working relationships with over 20 leading credit institutions worldwide.

Committed capital and operating revenues are growing annually. BIDV’s banking agents and trusted service helps increase the proportion of service income as well as total income, reaffirming the bank’s brand.

Based on BIDV’s trustworthiness and professional operation, international organizations choose BIDV to disburse their assistance funds. Up to now, BIDV has already lent and collected Official Development Assistance (ODA) funds for 150 projects with total

The outstanding results of the bank’s operations as well as comprehensive cooperation with multilateral organizations have increased BIDVs international integration and elevated the prestige of the bank domestically and globally. ®

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international investment

Van Thang

A catalyst for change LaoVietBank, a joint venture between the Banque Pour Le Commerce Exterieur Lao Public (BCEL) and BIDV, has over the last 15 years had tremendous forward motion in terms of its network, total assets and brand recognition throughout the Lao market. It is recognized for its significant contributions to the economic and social development of Laos and as a model for economic cooperation between the two countries.

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ith a simple goal of putting customers first, LaoVietBank is a leader in providing banking and financial solutions and actively supports trade relations between Vietnam and Laos. The bank also plays a key role in bridging bilateral payments between the two countries – it provides credit and guarantees to Lao businesses and individuals, as well as Vietnamese individuals investing in

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Laos. The bank also provides advisory and investment promotion services to Vietnamese businesses that plan to enter the Lao market. LaoVietBank’s lending portfolio is largely focused on major industries such as rubber growing and manufacturing in the south of the country, perhaps the most notable of which is Hoang Anh Gia Lai’s rubber plantations. Other sectors for which the bank has provided capital

international investment

include mining and energy – with an emphasis on hydropower. Through LaoVietBank, economic cooperation between Vietnam and Laos have continued to grow.

Believing that technology and human resources are the key to success, LaoVietBank has proactively implemented banking solutions and human resources training. To date, the bank’s multimillion dollar corebanking transformation project, using Flexcube software, has fully met core-banking requirements.

Training on the system is conducted regularly to ensure staff can adapt to contemporary banking platforms.

Through this training and more, LaoVietBank has provided Laos with a workforce that has expertise and management skills on par with other countries in the region, helping to build and modernize the country.

Solutions to integration and development

Social security and sustainable development

As a landlocked country that was severely impacted by the war, the Lao government recognized the need for economic reform, less centralization and to build a market economy starting in the 1980s. So far, the economy has made great gains in terms of timber exports, mineral resources, importing technology and equipment, and accessing investment from developed countries. As such, LaoVietBank has acted as the country’s link to trade around the world. The bank also provides legal assistance for investors entering Laos and also Lao investors looking to invest elsewhere to ensure a sound financial and banking system and acting as an important channel for foreign exchange, particularly Vietnam dong for the Bank of Lao P.D.R.

LaoVietBank recognizes that its responsibilities go far beyond just business. It is a pathfinder for social security in Laos and is active in supporting impoverished citizens by giving them access to basic needs.

Such activities are of great political, social and humanitarian significance.

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The founding of LaoVietBank was a historical milestone that marked a new era of economic development and friendship between the nations of Vietnam and Laos. It has helped cement and strengthen the political and social cooperation between the two. Through its human resources and solutions-based approach, LaoVietBank continues to play a key role in the prosperity of both peoples and businesses. ®

international investment

BIDV IT lends Laos a helping hand

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nder its commitment to support the Lao Government Office’s IT system, BIDV recently held its first of five IT training sessions for the office.

The training is aimed at helping the Government Office’s IT staff improve their management and operation of the system, as well as prepare for the debut of an e-government system in Laos in the near future.

LaoVietBank holds Customer Conference

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n February 9 at the Lao International Trade Exhibition and Convention Center (Lao ITECC), LaoVietBank held its annual Customer Conference. The event welcomed representatives from the Bank of the Lao P.D.R., ministerial and local-level officials, Vietnam’s ambassador to Laos, and representatives from the two parent banks, namely BIDV and Banque Pour Le Commerce Exterieur Lao Public (BCEL) as well as more than 800 customers and partners.

At the ceremony, LaoVietBank CEO Doan Viet Nam reported on the performance of the bank in 2014 and expressed sincere thanks to its loyal customers and partners.

The first training course was focused on information security and was held from February 9 to 11. The upcoming courses will cover Microsoft Windows Server, SQL Server, Microsoft SharePoint, and scripting language PHP. They will be held from March to June this year.

BIDV’s IT center is sending its experts to Laos to conduct the training.

As well as IT training, BIDV has offered to sponsor the internal email system to enhance communication and information exchange within the Lao Government Office and also with external units.

Through LaoVietBank, BIDV will purchase the necessary IT equipment and mail server and will send experts to Laos to install and operate the email system. Total sponsored funds for the project are USD84,500. ®

In 2014 LaoVietBank held a special savings program for the occasion of the bank’s 15th anniversary that ran nearly the entire year and gave away nearly 107 awards.

Also at the ceremony LaoVietBank introduced its latest Savings Program 2015 and Bank Plus system – an application for smartphones developed in cooperation with Unitel, Laos’ leading telecom.

This service allows customers to conduct payment transactions such as electricity, water, and telephone bills as well as buy air tickets from their mobile devices.

At the conference, BIDV lauded its partner bank for its successes last year. Also noted for excellent performance was Lao-Viet Insurance Joint Venture Company. ®

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international investment

Quang Son

HAGL to grow agriculture business in Laos From 2007, HAGL initially identified four areas for investment in Laos: rubber, minerals, hydropower and sugarcane. The group’s total investment in Laos has now reached USD1.2 billion, with projects mainly in Attapeu (in the south) and Huaphanh (in the east).

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oang Anh Gia Lai Group (HAGL) has strong financial resources and professional management and as an active member of the Association of Vietnamese Investors in Laos, it has been expanding abroad.

Following on from a successful two year period, the group is intending to focus operations towards agriculture.

HAGL’s most recent agricultural project was a cattle farm in Attapeu province, Laos. There it is advancing the production of high quality Australian beef. According to chairman of HAGL Doan Nguyen Duc, the project will take advantage of many favorable factors. These include an abundance of fertile land, a range of food sources

(such as corn, oil palm and sugar cane by-products) and modern technology, which increases efficiencies in irrigation, grass mowing and feed processing.

In 2014, HAGL raised 10,000 heads of cattle in Attapeu, and the group now plans to increase the Australian cow herd in Laos to 80,000. Lao Deputy Prime Minister Somsavat Lengsavad stressed that HAGL’s project of raising Australian cattle using the applicaton of modern techniques was of great importance to the economic development of Laos and a notable step forward in its economic, trading and investment relationship with Vietnam.

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According to HAGL’s strategic plan, the group will intensify cattle rearing operations (with a total investment of VND6,300 billion (USD293 million), which is a relatively new direction in its agriculture business. The total intended number of cattle is 236,000 (120,000 milk cows and 116,000 beef cows). 4,000 hectares is being assigned for cattle production, of which 3,400 hectares is to be set aside for planting grass and 600 hectares for infrastructure. The total number of HAGL’s cattle currently stands at approximately 40,000.®

Since its establishment in 2011, the Association of Vietnamese Investors in Laos (AVIL) has played an important role in connecting and supporting Vietnamese enterprises investing in Laos. The association is striving to raise Vietnamese investment in Laos to USD5.8 billion, (up 11.6 percent yearon-year) and two-way trade to USD2 billion in 2015 (up 42 percent). The total investment in South Central Laos is targeted to reach USD1-1.2 billion; a 1.5-fold increase from 2014.

products & services

Tue Minh

BIDV network welcomes JCB cardholders

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ith card payments fast becoming popular in Vietnam and local banks racing to partner with card companies to provide more options to customers, on March 12 BIDV officially started accepting JCB cards at its ATMs and POS, marking a new milestone in Vietnam’s plastic payment market.

Since entering Vietnam in 1991, JCB has partnered with 10 banks and financial institutions. Through these partnerships, JCB has had the opportunity to promote the development of card payment services and to meet the various needs and lifestyles of Vietnamese consumers.

According to Quach Hung Hiep, BIDV’s Senior Executive Vice President, the demand for card payment by both local and international customers is on the

rise. BIDV’s acceptance of JCB cards has opened up new opportunities to 200,000 cardholders in Vietnam, helping to diversify their payment options. With access to BIDV’s wide network of more than 15,000 ATMs and POS, JCB has pledged to further cooperation with the bank to make JCB cards one of the most popular and effective payment instruments in Vietnam.

Kimihisa Imada, Vice President of JCBI, said the acceptance of JCB cards by BIDV will enhance the user experience of cardholders visiting or living in Vietnam. He noted that JCB considers Vietnam one of the highest potential countries in their Asia business expansion strategy, and that the company will continue to work closely with BIDV into the future. ®

JCB is a major global payment brand and a leading credit card issuer and acquirer in Japan. JCB launched its card business in Japan in 1961 and began expanding worldwide in 1981. Its acceptance network includes over 27 million merchants and over a million cash advance locations in 190 countries and territories. JCB cards are now issued in 17 countries and territories, with about 87 million card members. As part of its international growth strategy, JCB has formed alliances with more than 350 leading banks and financial institutions globally to increase merchant coverage and card-member base.

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products & services

Dinh Thu

EduCare

–For your children All parents hope the best for their children and BIDV MetLife is proud to help them make their dreams come true.

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IDV MetLife is starting the second quarter with the introduction of an innovative financial product called EduCare. This is part of the company’s regional EduCare platform to provide children innovative education financial solutions in Asia and is designed to help customers plan their children’s education from birth through to university graduation.

Under our philosophy of putting customers at the heart of everything we do, Gia An Toan My (EduCare) is BIDV MetLife’s commitment to support parents and children through all stages of life. A small investment today ensures future financial protection and the opportunity of a high-quality education.

To bring something extra to customers by focusing on the physical and mental development of children, BIDV MetLife has partnered with leading national and international education institutions to form the GATM Club (EduCare Club). GATM customers will

automatically become members of the club, eligible to enjoy its many benefits and special discounts.

makes it easy for parents to decide on an investment plan that suits both them and their children.

EduCare features flexibility in terms of planning and payment and an extensive range of guaranteed benefits

EduCare will be available at 24 BIDV branches in Hanoi and 14 in Ho Chi Minh City starting in early April.®

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partners

Hoang Phuong

A prosperous rapport Thanks to its close partnership with BIDV, Vietnam Posts and Telecommunications Group is making great strides.

Connecting People Vietnam Posts and Telecommunications Group (VNPT) is well known for having laid the foundation for the country’s land and mobile communications, and since that time it has earned a much more broadly recognized reputation – it has played a major role in making Vietnam’s telecom sector one of top ten fastest growing in the world. The group now has more than 50,000 officers and employees and it operates an advanced telecom infrastructure and network covering all 64 provinces and cities across the country. VNPT is proud to be Vietnam’s number one service provider, serving more than 60 million mobile, 10 million landline, and tens of millions of internet subscribers.

VNPT plans to stay the telecom leader

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in Vietnam and to this end has boosted its investment into infrastructure and modern technologies. The group has gone even further by building a strong international telecom infrastructure using submarine optical and land cables, as well as a satellite that connects its network to more than 240 countries and economic hubs worldwide. VNPT’s national network ensures seamless connections in all circumstances.

By the end of 2014, VNPT expanded the capacity of its North-South network to more than 700 Gbps. The ring network in the North, Northeast and South Vietnam has a total capacity of 6,000 Gbps. Together with the Metro-link networks in the 4 major cities (Hanoi, Ho Chi Minh City, Danang and Can Tho), as well as other VNPT services, they create the strongest inter-provincial

transmission network in Vietnam.

Vision for the future VNPT did not achieve all this success by itself. The group’s relationship with BIDV, particularly the bank’s Quang Trung branch in Hanoi, led to the signing of a long-term strategic cooperation agreement that promotes the strengths and operations and advances the strategies of both parties.

With VNPT as a strategic partner, BIDV Quang Trung has financed a number of key investment projects for BIDV, including a nationwide wireless access system with 2G/3G integration, a project to equip a new transmission system in the central region, and a project to expand the VN2 network to serve two million new subscribers.

The project, which started in 2011

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had a total investment of USD200 million, with BIDV providing nearly USD70 million. Now operational, the investment has paid off with improved transmission quality and mobile and internet coverage available nationwide.

One of the greatest benefits was expanding telecom services to remote, mountainous and border areas.

BIDV Quang Trung also works with VNPT in other areas besides investment, such as deposits, cash flow management and centralized revenue management, helping to support the group’s restructuring process.

VNPT is on the rise, not only locally but also internationally. As a reliable partner, BIDV Quang Trung will continue to do its utmost to support VNPT’s ambitions and strategies both now and into the future. ®

partners

Anh Duc

BIDV and Sungroup:

A bright partnership The strong partnership between BIDV and Sungroup has created a new future for Vietnam’s tourism hubs.

Vision and success Before investing in Vietnam, Sungroup was already known to be one of the largest corporations in Ukraine.

In 2007, Sungroup expanded to contribute to Vietnamese development.

Unlike Vingroup and Massan or other Vietnamese economic groups previously in Eastern Europe and based in Hanoi or Ho Chi Minh City, Sungroup chose Danang as its base of operations.

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Over the past 7 years in Danang, Sungroup has been proud to be one of the leading economic organizations making a positive contribution to the development of the city’s tourism industry. In 2009, Sungroup started operating the Ba Na - Suoi Mo cable car system, allowing tourists to see the landscape of Vietnam’s central region. Three years later, Sungroup opened Novotel Premier in Danang - the highest 5-star hotel and resort in the city and the Intercontinental Sun Peninsula Resort and Spa. In 2013 this resort was named the Best Resort in Asia. Also in 2013, Sungroup continued to invest in improving and enhancing the service quality of the Ba Na - Suoi Mo resort. This included the opening of a third cable car route running from the base of Ba Na mountain to Nui Chua mountain.

In addition, Sungroup initiated investment in the 18-hole Ba Na golf course at the foot of Ba Na Mountain.

In 2014, Sungroup began operating the Premier Village resort to optimize the needs of tourists to Danang.

Besides financing tourism development in Danang city, Sungroup has recently expanded its business to North Vietnam. In 2013, it initiated the construction of the Fansipan cable car project (in Sapa, Lao Cai) - the world's longest three-rope cable-car system.

partners

Also in 2014, Sungroup launched the Ha Long Ocean Park and Quang Hanh resort projects in Ha Long City.

BIDV capital helps shape growth

Through this agreement, BIDV and Sungroup solidified their relationship.

The comprehensive partnership enables long-term and sustainable cooperation, allowing both parties to best exploit their potential.

BIDV’s financing for ecological urban projects along Hoa Xuan river in Danang marks the first cooperation between the bank and Sungroup. The project has been running since 2010, during which time BIDV financed USD23 million. The loan was repaid by Sungroup in October 2014. This was the foundation for the close partnership between BIDV and Sungroup.

Based on the agreements, BIDV and Sungroup joined hands to promote the business expansion and development activities of each party in both domestic and foreign markets. Through Sungroup’s projects on real estate development, tourism, hospitality, entertainment and other business ventures, BIDV has had opportunities to expand its investment channels and supply of banking products and services. Through BIDV’s operations, Sungroup can access stable funding to support its projects and improve business performance.

In April 2013, BIDV, represented by its Quang Trung branch, and Sungroup signed a business cooperation agreement for the 2013-2015 period.

At the end of 2014, total outstanding loans to Sungroup’s projects from BIDV Quang Trung stood at more than USD124 million (excluding syndicated

As a solid partner of Sungroup over the years, BIDV is one of the largest financial institutions to finance the group’s projects.

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loans at financial institutions). This figure includes outstanding loans to the Intercontinental Resort and Hoang Van Thai BT projects standing at over USD38 million, the Sunhome social housing project valued at more than USD3.8 million and the Ba Na - Suoi Mo resort project worth more than USD47 million.

In the foreseeable future, BIDV and Sungroup will work more closely as strategic partners to implement new projects in Danang and other locations across the country such as Lao Cai, Quang Ninh and Phu Quoc.

The effective cooperation between BIDV and Sungroup showcases the leading position of the bank in general (and BIDV Quang Trung in particular) in the banking sector. Further, the partnership also contributes to the development of modern works. This, in turn, helps to enhance the image of the country, positively influencing the growth of the Vietnamese tourism industry. ®

partners

Thanh Huyen

Investor Relations

–Our ethical priority After BIDV’s listing in early 2014, investor relations at BIDV have been further improved to ensure compliance with regulations for public companies and the safeguarding of shareholders’ rights.

The importance of transparency In January 2013, BIDV officially established a separate investor relations (IR) team under the Board of Directors Secretariat. Its main functions are to oversee an information database, distribute information, and manage relationships with investors.

One of the most important tasks of the IR team is to ensure the success and effectiveness of the annual general meeting of shareholders (AGM).

BIDV’s previous AGMs were wellmanaged in order to represent both the bank's reputation and its respect for shareholders. Announcements regarding the closing date of the

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shareholder list and invitations to the meeting were published in national newspapers and on the bank’s website.

In accordance with regulations, a full set of materials were published on the bank’s website, providing shareholders with convenient access to meeting documents prior to them being held.

BIDV’s AGMs were held in an open and transparent manner, complying with legal requirements and enabling shareholders to exercise their rights.

After the meeting, approved AGM documents were published on the bank’s website in compliance with professional disclosure requirements.

The expedient and transparent disclosure of information is a key task of the IR team that continues to this day. To this end, they have developed

partners

information disclosure processes and a systemized database. BIDV ensures transparency and maintains an efficient and effective two-way communications channel between BIDV and the investment community.

BIDV publishes extraordinary and specifically requested disclosures of information that include corporate governance reports, quarterly, bi-annual and annual financial statements, annual reports, and announcements about the opening of new branches.

In an attempt to actively and equitably provide accurate and updated information to shareholders, BIDV developed an investor relations section on the bank’s website at www.bidv. com.vn. Since the time BIDV shares were officially listed, the website has been updated with stock information including real-time updates of transaction data, price charts and a

record of transactions. It is updated on a 24 hour basis and upon the release of financial statements.

Working with shareholders BIDV has a handbook for investor relations in which regulations relating to shareholder relationship management have been systematized.

The bank has also worked together with BIDV Securities Company (BSC) to provide services for investors such as dividend payments, adjustments of shareholder information and share transfers. It has also actively assisted investors and responded to their enquiries via regular communications channels.

Improved communication has been a focus of BIDV in order to attract potential investors. BIDV has frequently met with several large banks and investment funds from major financial markets such as the U.S.,

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EU, Japan, Singapore and Hong Kong.

Discussions have centered on business and investment opportunities in BIDV. Also, BIDV holds regular meetings to present on its business performance and answer questions from securities companies and investment funds.

These meetings reflect BIDV’s commitment to transparency and the best interests of the bank’s investors.

In 2015, in order to better satisfy investor expectations, BIDV plans to carry out more meetings with analysts, investment funds, securities companies, the financial media and potential investors. The IR team will promote communications about the bank’s business performance with analysis of the factors affecting profit and income growth, as well as enhance a proactive disclosure of information.

In addition, the IR team will organize advanced training courses to strengthen their own abilities in line with international standards. ®

partners

BIC BIDV, Nanto Bank sign cooperation agreement

pays out key man insurance

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n February 11 at the BIDV Ha Tay branch headquarters, BIDV Insurance Corporation (BIC) met with and paid USD186,000 in compensation to Tay Do Joint Stock Company, which has the company's Directors and Officers Insurance policy.

Hoang Phu Chinh, the company's CEO, represented the firm in receiving the amount.

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IDV and Nanto Bank (Japan) have signed a cooperation agreement to provide banking services to Japanese firms doing business in Vietnam. This is the 19th Japanese bank to sign such an agreement with BIDV. Accordingly, the two banks will join hands to meet the various needs of customers in terms of banking products and services ranging from opening and managing accounts to deposits, credit, guarantees of domestic and international payments,

Tay Do Joint Stock Company, which operates in the timber industry, is a customer of BIDV Ha Tay and a policyholder since September 18, 2014. The insured was Hoang Phu Toan, the former CEO who was insured at the highest level for the aforementioned amount. Under the policy, BIC was obliged to pay out the company in the case of accidental death or permanent disability. currency trading, derivatives, and more. The two sides will also work together to provide information to and advise customers on Vietnam’s business and investment climate and legal system.

Following this, the banks signed a second agreement in which Nanto Bank agreed to send one Japanese officer to work at BIDV’s Japan Desk to help support Nanto Bank’s customers in Vietnam. ®

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BIC was one of the first insurers to offer Directors and Officers Insurance. The product has been distributed via bancassurance across the BIDV system since last year. Tay Do was the first company to receive a payment for an accidental death. ®

achiEvements & awards

Manh Hai

BIC wins

finance award B

IDV Insurance Corporation (BIC) was honored with the Best Financial Leverage Index Performer in the insurance industry award at the Vietnam Best Company program last month.

The Vietnam Best Company used polls conducted by the Institute of Business Research and Development, the Vietnam Association of Accountants and Auditors, the Vietnam Association of Corporate Directors – in collaboration with the Vietnam Business Forum newspaper, and the Vietnam Young Entrepreneurs Association.

The results were based on analysis of audited financial statements under

strict regulations and international standards of 1,088 listed companies in Vietnam. The organizer selected 147 companies to list on the good financial capability index based on their financial leverage, business efficiency, payments, profitability, capital adequacy ratios and other indicators.

In Vietnam’s insurance industry, BIC was one of only a handful of companies to be shortlisted by the program.

BIC was officially listed on the Ho Chi Minh City Stock Exchange (HOSE) in September 2011. Since then BIC has consistently been among the top insurers with the largest charter

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capital. By the end of 2014, BIC’s charter capital reached more than USD35.5 million and it has plans to further increase this figure after it successfully sells its stakes to strategic investors. Given the firm’s strong business performance and solid financial position over the last five years, A.M. Best, one of the world’s leading rating agencies, assigned a financial strength rating of B+ (Good) and an issuer credit rating of bbbto BIC. This was considered a very successful position for a first time rating and a boost to BIC’s efforts to attain international standards, access more international investment, and allure potential strategic investors. ®

achiEvements & awards

11 years an

Excellent Brand

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n March 21 BIDV was named Most Excellent Brand in Vietnam by Vietnam Economic Times (VET) for the 11th straight year.

The award is conducted via a poll held each year organized by VET and the Vietnam Trade Promotion Agency under the Ministry of industry and Trade. It celebrates local enterprises with excellent business and social performance.

According to VET, nearly all businesses to receive this award are growing, highly competitive and well prepared for long-term integration.

Through its long history, BIDV has consistently contributed to the economic development of the country and helped to curb inflation, reduce lending rates, and ensure social security. The bank has also put great emphasis on expanding its network and increasing its operational efficiency to affirm its leading position in the market. ®

MetLife named World’s Most Admired Company

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ast month MetLife Inc., BIDV partner, earned the top spot among life and health insurers on Fortune magazine’s list of the World’s Most Admired Companies. MetLife rose from second last year and fifth in 2013.

The survey was fielded by Fortune magazine in November and December last year among more than 4,000 executives, directors and securities analysts based on nine key attributes: innovation, people management, use of corporate assets, social responsibility, quality of management, financial soundness, long-term investment, quality of products and services, and global competitiveness.

Founded in 1868, MetLife is a global provider of life insurance, annuities, employee benefits and asset management. Serving approximately 100 million customers, MetLife has operations in nearly 50 countries and holds leading market positions in the United States, Japan, Latin America,

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Asia, Europe and the Middle East.

In Vietnam, MetLife has partnered with BIDV and BIC to found the BIDV MetLife Life Insurance Co., Ltd. (BIDV MetLife), officially launched on November 3, 2014 with charter capital of approximately USD48 million. 60 percent of the company is owned by MetLife and 40 percent by BIDV and BIC. Leveraging MetLife’s financial reliability and global expertise, BIDV’s domestic credibility and wide network, and BIC’s long-established experience in the insurance market in Vietnam, BIDV MetLife aims to become the leading life insurance company in Vietnam in bancassurance after 5 years and the top-five in market share after 10 years.

The innovative insurance products of BIDV MetLife and BIDV’s financial services will provide customers with a banking-insurance service bundle to meet the diversified needs of customers, contributing to the development of the insurance market in Vietnam.®

achiEvements & awards

Quynh Ngoc

BIDV sweeps

Fixed Income Poll Thanks to its business excellence, it was no surprise when BIDV won 11 Asiamoney awards last year as a reflection of its significant efforts to drive forward Vietnam’s financial sector.

Asiamoney’s evaluations are in-depth and professional and are conducted by gathering the opinions and assessments from 2,229 voters from 1,969 different organizations that include businesses, banks, investment funds, asset management companies and more from all across Asia Pacific. The votes reflect a full picture of financial institutions as per the following criteria: level of understanding and ability to research products and services, quality of products and services, diversity of products and services, and the understanding and ability to meet the needs of customers.

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IDV was the most outstanding performer in Asiamoney’s 2014 Fixed Income Poll for Vietnam, outperforming other major financial institutions and sweeping every category for Vietnam’s debt capital markets. The awards were handed out at the New Year Awards Dinner recently held in Hong Kong. This is the second year BIDV has been awarded by the poll.

Established in 1989 and now a leading financial publication in Asia, Asiamoney is a division of global media group, Euromoney Institutional Investor plc. It is a trusted and soughtafter news source popular among

financial institutions, investors and corporations throughout the region because of its in-depth, sharp and multi-dimensional content supported by leading experts.

Asiamoney Polls & Awards is held annually to honor leading financial institutions in Asia. The Fixed Income Poll in particular is a key component that focuses on fixed income from capital trading products, including derivatives, debt capital (bond bookrunning and issuance), and market research. Since its inception the program has attracted a raft of leading financial institutions from around the world and region.

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BIDV’s continued successes in the Asiamoney Fixed Income Poll since 2013 reflect the bank’s position as Vietnam’s leading lender and its tireless pursuit of quality. Over the years BIDV has continuously researched credit sales and trading and aggressively innovated and introduced specialized products in accordance with international standards and practice. On top of traditional products, namely foreign currency, interbank currency and bond trading, BIDV was the first local bank to set up specialized teams to launch derivatives, corporate bond issuance and book-running and analysis to best serve customer needs.

For these reasons and more, BIDV is proud to have been recognized by financial experts worldwide for its efforts and accomplishments.®

achiEvements & awards

Tinh Tam

BIDV named Vietnam’s Best Retail Bank 2015

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achiEvements & awards

On March 19, at the awards ceremony held by Asian Banker Magazine, BIDV’s Senior Executive Vice President and representatives from the bank’s retail team proudly accepted the award for Best Retail Bank in Vietnam for 2015.

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he Asian Banker Excellence in Retail Financial Services International Awards is the most rigorous, prestigious and transparent awards programme for consumer banking in Asia-Pacific, Central Asia, the Middle East and Africa. A total 250 banks from 42 countries participated on the national, regional and product and processes levels, undergoing a thorough evaluation process. The programme, refereed by prominent global bankers, consultants and academics, is the most prestigious of its kind. A stringent three-month long evaluation process based on a balanced and transparent scorecard, determines the winners and the position of different retail banks in the region.

The selection of Best Retail Bank is judged on a host of criteria including retail business performance, key retail banking projects, risk management, human resources and training, position in the market and corporate social responsibility.

get the best. BIDV is currently finetuning its retail banking model from the top down, looking to modernize its distribution channels. BIDV is constantly looking to improve its human resources and create innovative products, services and technology to ensure its market leader status.

BIDV’s breakthrough developments in retail banking over recent years are a testament to the bank’s vision. Its retail arm has generated solid revenue, helped reduce risk, expanded the marketplace, improved competitiveness and provided medium and long-term capital to people and businesses that needed it. This diversity of services is ensuring the sustainability and efficiency of the bank as a whole.®

Though there were strong contenders in various categories as Vietnamese banks improve their performance, risk management and sales capabilities, BIDV’s overall performance dominated the Vietnamese banking sector.

BIDV was recognized for its significant investments into IT, products and services, processes, risk management, assets, but most importantly, its people. BIDV is always looking to provide the most competitive personal financial services and also emphasizes the importance of improved processes and transaction spaces tailored to the needs of customers. The bank held promotion campaigns, debuted new products and strengthened its partnerships to ensure customers

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The Asian Banker is the foremost provider of strategic business intelligence on the financial services industry in the Asia Pacific and Middle East regions.

The organization has offices in Singapore, Kuala Lumpur, Beijing and Dubai as well as representatives in Shanghai, London and New York. With a business that revolves around publications, research services, training and forums, the organization is highly regarded in the financial services community for its incisive and independent commentaries on developments in the industry.

lifestyle

le thang

Twice the happiness and prosperity

Every April, the Lao people hold the Bunpimay festival, one of the most captivating festivals in the region.

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lifestyle

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IDV officers working in Laos are fortunate to have two opportunities to enjoy traditional new year festivities; that is both Vietnam’s Lunar New Year (or Tet) and Laos’s Bunpimay festival. Following the Buddhist calendar, Bunpimay usually takes place over three days in April according to the Buddhist calendar every year - the hottest time of the year. The festival is celebrated as an expression of renewed life, the chance of prosperity and good health.

During this time, jovial people splash water, give blessings and pray for good weather, a prosperous New Year and happiness. Bunpimay festival is often referred to by its epithet Bun, which means doing good deeds.

Lao people have a spiritual connection to water. For them water is the source of life on earth and something that cleanses our souls, eliminates evil spirits and cures disease. The first day

of the festival is also known as the last day of the old year. People prepare for the new year by cleaning houses and preparing fragrant water and flowers.

In the afternoon, villagers can be seen gathering at Buddhist temples for worship and prayer. Then, a Buddha statue is placed in a solemn place for three days. Locals then come to bathe Buddha. The fragrant water used during this ceremony is later applied to the body to heal the soul.

The most exciting activities are held on the third day, which is seen as a time for jubilation. Before the water splashing, people often wish each other well for the upcoming year. As a mark of respect, young people splash water on older people in the hope of their health and prosperity. They not only splash water onto people but also on animals, work tools and inside the home. The more water they get, the luckier they will be. Therefore, if you should be

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splashed with water, do not be angry but rather count your blessings.

Laotians also prepare special food for the occasion. While Vietnamese people have banh chung (a traditional rice cake which is made from glutinous rice, mung beans, pork and other ingredients) at Tet, the most famous Lao dish at their new year is larb. This is a deliciously spicy mixture of marinated meat and/or fish that is sometimes raw with a combination of herbs, greens, and spices. To the local people, larb means luck, so the more larb you make, the more luck you will have.

Being lucky enough to celebrate two New Year festivities in one year, BIDV officers in Laos also get two opportunities to wish for prosperity and happiness. This motivates them to do business and act as a bridge for the development, cooperation and friendship of the two countries.®

lifestyle

phan loc

The allure of Binh Dinh

Binh Dinh, a province in central Vietnam, entices nature lovers with its diversity of coastline, mountains, rivers, islands, countryside villages and traditional Champa cultural festivals.

Mysterious Cham towers Quy Nhon, a city in Binh Dinh province, central Vietnam is a city of both beautiful coastal scenery and poetry. Indeed whilst there you can visit the tomb of Han Mac Tu, a Vietnamese poet of the colonial era.

Looking along the sandy shore from the panoramic viewpoint of Quy Nhon, you can see the landscape of Ghenh Rang – Tien Sa. At night the city’s charms come alive and the green and red lights twinkling from the offshore ships provide a perfect backdrop.

Within the province you can explore natural landscapes and historic sites such as Ham Ho, Nui Mot ecological lake, Phuong Mai Island and the ancient Cham towers. Basking in the wind and sun, for over a thousand

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years these mysterious towers have remained as vivid evidence of the period when the Cham culture flourished.

Discovering untouched Hon Kho It would be a lifelong regret for you to visit Binh Dinh without bathing at Hon Kho. With sandy beaches and well-preserved coral reefs, the mostly uninhabited island is only ten minutes by boat from Nhon Hai Commune.

Hon Kho is also a turtle conservation center. If you have a chance to stay the night, you may run across turtles scuttling to the shore to lay eggs.

Indeed viewed from Nhon Hai commune, Hon Kho looks like a

lifestyle

Coming up:

Binh Dinh Tourism Meeting 2015

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he Binh Dinh tourism investment promotion meeting is scheduled for March 30 in Quy Nhon City, Binh Dinh province. The meeting aims to attract investment into the tourism industry, enhance the promotion of the province’s tourism potential, and call on businesses to explore investment opportunities. It will also be a forum for local authorities, investors and travel businesses to share ideas and solutions to improve the local investment environment.

Binh Dinh has 134km of coastline and features a number of beautiful locations including the Cham Towers built between the 10th and 15th centuries.

The province has all the features of a location ready for tourism development.

of various shapes diving in to giant turtle. Throughout the year, the sea. The mountain holds the this turtle's back is like a shield sea and the sea plays around the protecting Hai Giang beach from mountain. Boats the ocean waves. To are speckled reach Hon Kho from along the horizon Quy Nhon you cross the The Hai Giang resort and birds twitter Thi Nai bridge and take project in Nhon Hai a 10 minute boat ride island, Quy Nhon city, was in the sky. from Nhon Hoi. developed by Vingroup In the past, it after being licensed by was challenging The ever Binh Dinh province. Here for visitors to impressive Eo Gio Hon Kho remains an come to Eo inspirational landmark.

Gio, however Eo Gio is an arc-shaped now it just strait near the hamlet takes a 20-kilometer motorbike of Hung Luong Hamlet on Nhon Ly trip. As one of the most famous island. Here you can listen to the destinations in Quy Nhon, Eo wind whispering through mountain Gio maintains its reputation for walls and waves crashing into untouched beauty.® caves along the shore. Eo Gio has a unique beauty with rock cliffs

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In March of last year, BIDV joined with Binh Dinh and the Central Region Development Fund to organize a tourism development workshop. The workshop identified and analyzed the advantages and potential for tourism development in Binh Dinh against the bigger picture of the south central region. Breakthrough ideas came out of this discussion and a year later the number of total tourists was up by 25 percent, reaching 2 million visitors by the end of 2014 and 2.5 million expected in 2015. Revenue from tourism increased 30 percent last year to USD37 million with an expected USD47 million this year.

With investor commitments, it is expected that by 2020 Binh Dinh’s tourism industry could make up a significant portion of the province’s economic structure and will make it an alluring hub in the region.®

CSR

Quynh Chi

Raising bridges for the poor

Remote, mountainous and disadvantaged areas currently face a raft of transportation difficulties. The demand for bridges is especially high given common geographic and environmental challenges such as steep slopes, fast flowing rivers and streams, and unexpected floods.

Capital Bottleneck Accordingly, the Ministry of Transport (MoT) has set out a plan to construct suspension bridges in a number of areas struggling with poverty. The long term plan is to build 187 suspension bridges in 28 cities and provinces in mountainous or highlands region.

According to the Vietnam Road Administration, 180 of the aforementioned 187 bridges have been designed and of those 138 are already under construction by 46 developers. 42 of these bridges will start construction by March 10 this year with a further 7 to be constructed

by March 20. They are all scheduled to be finished by the middle of this year.

However, a shortage of investment poses a threat to this plan. In the past, these suspension bridges were largely funded by local government budgets, which are now growing thin.

Other sources of capital, most notably Official Development Assistance (ODA) primarily go towards urban infrastructure. Presently there are no capital sources focused on rural transport infrastructure construction.

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In response to this, Minister of Transport Dinh La Thang has suggested Asian Development Bank (ADB) fund the suspension bridge program to ensure safe transport for ethnic minorities. The Vietnamese government has already allocated nearly USD19 million from the central budget to the MoT to advance progress on the bridges but more is needed.

Individuals and businesses have also been called on to provide assistance in getting these thousands of new bridges built They are expected to

CSR

improve the living conditions and support the economic development of impoverished communities. An MoT program themed Reach of Love was aimed at attracting sponsors for the project. In just one week, nearly USD17 million was raised.

A Reach of Love debut In the middle of February this year, the Nam Cong suspension bridge was inaugurated in Thanh Tan Commune of Ha Nam province. This was the first bridge to see funding from the Reach

of Love Program when BIDV joined as a major sponsor. Total investment in the project was USD605,000 and after only four months, the local people celebrated their new local bridge.

The Nam Cong is the largest suspension bridge in Ha Nam province – a key location located along the North-South transportation corridor.

The new bridge will facilitate the transportation of around 1,500 local people, including 200 school children, on a daily basis.

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The bridge is a symbol of the community, private enterprise and the state’s concern for the welfare of people in Thanh Tan commune. At the inauguration ceremony, BIDV granted another VND70 million (USD3,260) to 222 impoverished or nearimpoverished households.

BIDV is a leader in banking sector when it comes to social welfare projects. In terms of the suspension bridge program, BIDV has committed funding for up to 12 bridges totaling nearly USD2.5 million. ®

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Hai Kieu

Fostering the future On February 11 in Hanoi, BIDV and the Vietnam National Economics University signed a comprehensive cooperation agreement for the 2015-2019 period on training, research, technology development and the provision of banking services. At the signing ceremony BIDV awarded USD70,000 in five-year scholarships to top students at the university.

A mutual benefit The agreement signed between BIDV and the Vietnam National Economics University (NEU) committed both sides to cooperation in all areas specific to their purviews including, for the university, research, workshops and seminars, and training courses for BIDV employees. BIDV will conversely send experts to lecture at the university to further improve the quality of undergraduate training.

Both sides also agreed to support the other's respective recruitment, communications, brand development, and other areas.

In terms of banking services, BIDV will provide funding to support the university’s expansion and provide banking products and services tailored to the university. Given its nationwide network, BIDV is well-positioned to fully meet the needs of NEU, as well as its staff and students. Services

offered include processing tuition fees, managing accounts and deposits, providing card services and retail credit.

At the signing ceremony, BIDV committed USD70,000 for the BIDV Scholarship, a USD14,000 per year award for the 2015-2019 period granted to excellent students based on NEU evaluations and grading. BIDV hopes the scholarship will motivate students to do their best and later use their skills to contribute to the university and country.

A better workforce BIDV consistently supports education and training, research, and technological advances as essential elements of Vietnam’s socio-economic development. The belief is that in a fast changing economy, a high-quality young workforce is an invaluable asset.

To this end, BIDV has signed a number

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of partnership agreements in the education sector with 163 universities, colleges and academic institutions.

These include Vietnam National University, the Banking Academy, the Academy of Finance and the University of Economics Ho Chi Minh City to name a few. Similarly, it also has an agreement with the Vietnam Ministry of Education and Training.

Addressing the signing ceremony, BIDV CEO Phan Duc Tu said that NEU is the leading economics university in Vietnam. To date, NEU has trained generations of managers, many of whom have become high-profile leaders at BIDV and in the government.

“This cooperation agreement will provide BIDV an opportunity to work closely with NEU to develop and improve training programs for BIDV employees, promote macroeconomic research, and exchange theoretical and practical experience,” he said. ®