BIDV Review 04 by BIDV Review

A Newsletter of Bank for Investment and Development of Vietnam JSC

MHB officially

merged with BIDV BIDV awarded

Cambodia Royal honors

Issue No. 4 | May 2015

EXECUTIVE PRODUCER QUACH HUNG HIEP Bank for Investment and Development of Vietnam JSC

Senior Executive Vice President EDITORIAL BOARD BRANDING AND PUBLIC RELATIONS TRANSLATORS NGUYEN TRAN TRANG TRINH 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 License 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

elcome to the May issue of BIDV Review. On May 25, 2015 BIDV officially completed its merger with the tinier Mekong Housing Bank (MHB) as a next step on the road to achieve its ambition to become Vietnam’s leading financial institution. Much of our content revolves around what this will mean for the bank and customers in the coming time. We have also turned eyes toward the exchange rate and gleaned experts’ views on Vietnam’s current M&A trend. Other hot issues covered include an overview of Vietnam’s macro-economy, what is on the horizon for Vietnam’s real estate market, and a brief glimpse into the future of the soon-to-be-established consumer finance arm of BIDV. We were honored during State President Truong Tan Sang’s visit to the Czech Republic when he praised BIDV for its role in organizing a forum

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on economic and tourism cooperation in Prague that drew the attention of a raft of investors from all over Central Europe. As part of this feature we will also take you on a short tour of the historic city of Prague. As tourism has been a major focus of the bank recently, we have discussed what we are doing at the local level to support destinations in accessing more domestic and international visitors. Some of these destinations include Ly Son Island, Quang Binh and Nghe An. We welcome you back to BIDV Review and we hope that you enjoy the read. As always, we appreciate feedback on what you would like to read more about, what you think needs improvement and hopefully what you found positive about the magazine. We are always looking to make this periodical more relevant to our readers and friends, and only with your help can we accomplish this.

contents

BIDV HIGHLIGHTS 4. BIDV and BIDC awarded Cambodia Royal honors

INTERNATIONAL INVESTMENT 24. Growth of opportunity

6. A new stage of development Partners 26. BIC inks FairFax deal

8. BIDV, MHB – The merger wave crests 10. Q1 figures: a promising start 12. List of 44 MHB branches transferred to BIDV 13. BIDV makes Forbes Global 2000 14. BIDV’s new arm in consumer finance MARKET MOVEMENTS 16. Prosperity in the Central Highlands 18. SBV forex adjustment spotlighted 20. Real estate on the rebound

28. Juroku visit promises stronger ties

22. 2015 races into Q2

29. Sharing to achieve more successes

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contents

30. Sound relations between BIDV and VOV

38. Cards without borders

31. Project management: Going global with PMP

LIFESTYLE 40. The island of natural treasures

32. BIDV backs FLC’s $163m Nhon Ly resort 42. A glimpse of Prague 44. Nghe An tourism – A helping hand

34. Strength in the Central Highlands PRODUCTS & SERVICES 36. VRB launches corporate e-banking 37. HELLO, IT’S BIDV 19009247 37. Reds fans in Vietnam enjoy UNITED: LIVE party

46. Boosting Quang Binh tourism CSR 48. CSR news

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HAI VAN

BIDV and BIDC awarded

Cambodia Royal honors

On May 25 in Phnom Penh, BIDV and its staff and affiliates in Vietnam and Cambodia were awarded the highest honors by Royal Decree of His Majesty, the King of Cambodia.

BIDV Chairman Tran Bac Ha (R) and Deputy Prime Minister of Cambodia Men Sam An at the complex groundbreaking ceremony in Mean Chey District, Phnom Penh, Cambodia

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ttending the ceremony were a host of dignitaries including Mrs. Men Sam An - Deputy Prime Minister of the Royal Government of Cambodia and Chairwoman of the Cambodia-Vietnam Friendship Association, Mr. Chea Chan To - Governor of the National Bank of Cambodia and Mr. Tran Bac Ha BIDV Chairman and Chairman of the Association of Vietnamese Investors in Cambodia (AVIC). Also joining were leaders of Cambodian ministries and Vietnamese authorities in Cambodia. Having had a presence in Cambodia since September 2009, BIDV has contributed significantly to the economic relationship between Vietnam and Cambodia. Given these efforts, the King of Cambodia awarded prestigious orders to BIDV. They were the Royal Order of Cambodia (first class) and the Royal Orders of

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BIDV leaders received the highest honors by the Royal Government of Cambodia

BIDC Toul Kork branch opened

Also at the ceremony, BIDC officially opened its 8th branch named Toul Kork. BIDC Toul Kork is based in Toul Kork District – a rapidly developing area in Phnom Penh. The opening of the Toul Kork branch aligns with the plan to enhance the scale, network and quality of banking products and services of BIDC.

Sahametrei (first-class and secondclass). These noble orders were conferred on BIDV and BIDC for their contributions and distinguished service to the country. The orders were also a motivation for the recipients to continue promoting their roles in business as well as social security in Cambodia.

The Royal Government of Cambodia had previously awarded orders of merit (first and second class) to BIDV staff for their significant contributions to the economic development of Cambodia. As a member of BIDV, BIDC is one of the six leading commercial banks in Cambodia with total assets of over USD620 million and owner’s equity of USD85 million. The bank’s financial capability, business performance and quality of products and services have been continuously improved. BIDV and its commercial presences were also actively involved in contributing to the socio-economic development, poverty reduction, hunger elimination and improvement of living standards for the Cambodian people. Since 2009, BIDV and its associates have funded social welfare activities totaling USD6 million.

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Building complex project breaks new ground

Following a series of events, on the morning of May 26 in Mean Chey District, Phnom Penh, BIDV and BIDC held a groundbreaking ceremony for a construction project to provide better facilities for BIDC and allow operations to expand. The two hectare area will consist of office buildings, guest houses and staff accommodation. The commencement reflects the determination of BIDV and BIDC to conduct long-term and sustainable business and investment in Cambodia. The site is due to be operational by the first quarter of 2016.

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Phan Anh

Top leaders of BIDV and MHB at the handover ceremony in Ho Chi Minh City

A new stage of development On May 25 the final step was taken to mark the official merger of MHB into BIDV. From now, the MHB brand will no longer exist on the Vietnam’s financial market and the BIDV brand is expected to grow healthier and stronger. This was a historical milestone of BIDV’s new development phase.

55 days – swift progress The entire merger process was completed within 55 days after the State Bank issued Decision 589/ QD-NHNN approving the deal and establishing a steering committee to direct the process. Following Decision No. 589/QD-NHNN dated April 24, 2015 by the State Bank, MHB completed the legal procedures for termination of its legal entity. BIDV also completed the necessary steps of the merger announcement, business registration and stock swap, among others. 44 MHB branches had already

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completed procedures and signed merger handover minutes with BIDV in the presence of government leaders. As of end May 22, 2015, the MHB brand was officially removed and from May 25 all branches of MHB were operating under the BIDV banner.

Brand building The merger follows the government’s plan to restructure credit institutions from 2011 to 2015. In addition, it is expected to help BIDV increase its total assets, customer base and network, especially within the agriculture sector

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Staff Support

Leadership for growth

excited!

n May 18, 2015 BIDV held the ceremony for the appointment of leaders at the headquarters and branches. Attending the event were Mr. Tran Bac Ha - chairman of BIDV, Mr. Phan Duc Tu – CEO, board members, executive board members and heads of relevant units. Head of Human Resources, Mr. Nguyen Thien Hoang announced the decisions related to new assignments. With approval from the State Bank of Vietnam, BIDV was permitted to open 9 new branches in Hanoi, Ho Chi Minh City and Kien Giang. Decisions were

and rural areas of the Mekong Delta region - which was the strength of MHB. This further enables BIDV to improve upon its stature as Vietnam’s leading bank and compete with other banks in the region. After the merger, BIDV’s total assets increased to over USD32 billion with charter capital of over USD1.6 billion, as well as a network of approximately 1,000 transaction points nationwide and nearly 24,000 employees. This laid an important foundation for BIDV to enhance its business effectiveness

made regarding the appointment and assignment of staff to hold the posts of head, acting head and first deputy head of the 9 new branches and the 44 branches received from Mekong Housing Bank (MHB). This was the biggest appointment in the bank’s 58-year history. On behalf of the appointees, Phan Van Thinh, acting head of BIDV’s Son Tay branch, expressed thanks for the trust and support of the bank's leadership. He recognized that this is not only an honor but also a responsibility to continue gathering collective strength, finding solutions and contributing to the overall growth of the bank.

and prepare for integration and competition with regional peers. According to Mr. Tran Bac Ha, Chairman of BIDV, MHB was a strong retail bank in the Mekong region with 17 branches in the area and 44 in total nationwide. Prior to the merger, BIDV already had 13 branches in this region. After the merger, the expanded network will enable BIDV to better serve the demands of people in the region. From the two banks, total outstanding loans in this region reached USD1.3 billion. In the next three years, this figure is expected to reach USD4.6 billion. BIDV is actively following government direction to provide credit to the region.

An Dong Transaction Office on merger day

"This merger will create complete basis for the amalgamtion with other strong banks in the coming time and a basis for the development of a healthy and transparent debt market in Vietnam", said Mr. Tran Bac Ha.

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The staff at BIDV’s Ham Nghi branch (previously known as MHB Cho Lon branch) were feeling both anxious and excited. Ms. Huynh Viet Anh – head of An Dong transaction office under BIDV Ham Nghi Branch said she previously worked for BIDV’s Vo Van Tan Branch. She only had 1 week since receiving the bank’s decision to move to An Dong transaction office. Viet Anh said she was anxious and was continually looking to learn about MHB to ensure the stable operation of the transaction office after the official merger. "It is lucky for me that MHB officers are very kind and they are very happy to be joining BIDV”. Both BIDV and MHB staff tried their best in a relatively short period. On the merger day when the two brands became one, many customers came to make transactions normally at the office. "Customers even complimented us on our new uniforms and their positive response to the merger made all the staff happy," said Viet Anh.

memorable! On May 25, MHB Ha Tay branch – one of MHB’s largest branches in Hanoi donned the new colors of BIDV with the new name – BIDV Ha Dong branch. Besides BIDV’s logo and trademark, the blue color of BIDV uniforms was also spread throughout the branch. According to Ms. Trinh Thi Thu Dung, who was previously an MHB staff, her 7 years at MHB were memorable. "Working under the BIDV brand will be an opportunity but also a challenge for me to try harder". Dung, like other colleagues in her branch is very excited.

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BIDV, MHB –

The merger wave crests The merger of MHB into BIDV became a hot issue in the banking industry with lots of commentary and discussion. BIDV Review met Dr. Tran Hoang Ngan, a member of the National Assembly's Economics Committee, to talk about this joining of the two banks. The State Bank of Vietnam (SBV) recently made great efforts to support bank restructuring in general and banking M&A in particular. What is your assessment of progress so far? Strengthening capacity to ensure a stable system is the most crucial issue in restructuring a credit institution, thus assuring macro economy stability. The process should be flexible and requires the state bank’s support in the first phase, similar to restructuring schemes of banking systems around the world. For instance, Vietnam National Construction Bank (VNCB) lost all its capital, its non-performing loans

were higher than charter capital, and its shareholders didn’t want to invest any additional funds. As creditor of VNCB, the SBV could have asked them to declare bankruptcy. Instead, they decided to take over VNCB, a decision suitable to market conditions, thus avoiding the consequent bankruptcy of other weak banks such as Oceanbank and GPBank. The catalysts for restructuring banking include improved legal systems, enhanced financial capacity, and support from Vietnam’s Asset Management Company’s (VAMC) , though the development of a debt market is crucial to an accelerated restructuring process. This will in turn

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be a crucial piece of the foundation to implement a new bankruptcy law debuting in 2016 to ensure a marketoriented restructuring plan. The BIDV – MHB merger was said to have triggered M&A transactions among healthy commercial banks based on the state bank’s direction. What do you think about the prospective of this merger? This merger is totally different from the M&A transactions of most of the weak commercial banks from 2013 to 2014. MHB and BIDV are two joint-stock commercial banks with major stateowned stakes. They are both healthy and therefore the merger attracted attention from various investors and economists and was a refreshing move for Vietnam’s banking M&A process. The voluntary merging of two good brands creates a foundation for a strong brand with support from the

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state bank, with the state owning major stakes and of generally higher value. Shareholders of MHB were satisfied given their 1:1 swap ratio, which meant shareholders of a smaller bank became shareholders of a larger bank without sacrificing their rights and benefits. BIDV’s charter capital and total assets were 9-fold and 5-fold higher than MHB’s, respectively. This showed BIDV’s active support and contribution to the system’s restructuring plan. Thanks to the merger of 44 MHB branches with BIDV, the latter will have the infrastructure and financial ability to broaden their network of branch locations, increasing market share and enhancing business as a result. However, in the early stages of the merger, there were challenges, including non-synchronous information technology systems, databases, facilities, and equipment.

To me, the most important issue is human and corporate culture. The joining of more than 3,000 MHB staff members with BIDV will have deep ramifications in corporate culture, employee benefits, and training. Employees from both banks will have to collaborate and coordinate their efforts to enhance mutual understanding for the success of BIDV. The result of the merger in terms of operation effectiveness, corporate governance and culture, and shareholder benefits might only be clear after 3 years time, but I believe in the success of this deal. What should BIDV do to ensure operational effectiveness after the merger? With the aim of becoming one of the leading banks in the region, BIDV is on the right track and is seeing success in many respects. To bring

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more value to the merger, I think BIDV should emphasize development of MHB’s strength – rural and agricultural development, especially in the Mekong Delta. Vietnam is in a period of integration with the ongoing negotiation of TransPacific Partnership (TPP), bilateral and multilateral Free Trade Agreements (FTAs) and the participation in the ASEAN Economic Community (AEC). Rural and agricultural growth will be an advantage to Vietnam as the government prioritizes it this year. Furthermore, BIDV has made achievements in supporting marine economy and fishermen in the Central Coastal provinces. However, I believe the Mekong Delta is still a new land to explore. Each new branch will be a critical factor contributing to the ongoing development of the bank and Vietnam.

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Tha nh Huyen

Q1 figures: a promising start The macro economy in the first few months of 2015 made headway with encouraging signs of recovery. BIDV’s consolidated first quarter financial statements reflected the bank’s positive business performance and growth compared to the same period last year, laying a solid foundation for the fulfillment of the business plan in 2015 as well as the restructuring goals for the 2013-2015 period. Soaring credit BIDV’s total assets grew well, reaching over USD30.6 billion, up 1.82 percent compared to the same period last year. Credit increased from the start of the year with loans to customers of over USD21.5 billion, up 4.37 percent and the growth rate was higher than average for the same period (1.96 percent), which was much higher than the average growth rate of the banking sector (1.5 percent). Credit was channeled to priority areas in accordance with the direction of the government and central bank. As of

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March 31 the bank’s NPL ratio stood at 2.23 percent (lower than the required 3 percent). Deposit growth was also good, fully meeting the demand for capital and ensuring liquidity. Deposits from customers reached USD21.4 billion, up 5.2 percent year-to-date. In particular, term deposits increased by USD1.7 billion year-to-date, accounting for 85.7 percent of the total.

Increased PBT Financial reports showed that BIDV's

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business performance improved and the bank is on track to fulfill the goals set for 2015. Total operating income reached USD245 million, up 14.7 percent over the same period last year. In particular, net interest income stood at USD212.5 million, up 22.7 percent and service fees reached USD21 million, up 26.1 percent year-on-year. Profit before tax reached USD105.2 million, an increase of 16.64 percent year-on-year and already meeting 30 percent of the 2015 targets. Following the success of 2014, in the first quarter of this year BIDV continued trending upwards. The bank was at the forefront of taking measures to support enterprises such as reducing lending rates and offering interest exemptions.

Motivation after the

merger Given the positive macroeconomic forecast, it is expected that by the end of the second quarter BIDV will achieve profit before tax of about USD175 million, exceeding 50 percent of the annual business projections with credit and deposit growth at between 9 and 10 percent. Also, based on the review of the business performance against the plan at the end of the second quarter, BIDV will make adjustments to its 2015 business plan taking into account its merger with Mekong Housing Bank. BIDV continues to focus all its resources on realizing the restructuring scheme of the 2013 2015 period as approved by the State Bank of Vietnam. It will consolidate operations and continue to promote

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the advantages of its extensive network to develop business and expand services, particularly within the retail banking sector. As well as this, BIDV aims to accelerate progress in increasing its charter capital.

BIDVâ&#x20AC;&#x2122;s profit before tax 300

million USD

288.7 242.6

250 212.1

200

193.5

198.3

150 105.2

100 50 0

2010

2011

2012

2013

2014

Q1/ 2015

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List of 44 MHB branches transferred to BIDV No

Before merger

Location

After merger

I. Hanoi MHB Hanoi 1 MHB Ha Tay 2 II. Northern Region

Hai Ba Trung, Hanoi Ha Dong dist., Hanoi

BIDV Dai La BIDV Ha Dong

MHB Bac Ninh 3 MHB Hai Duong 4 MHB Hai Phong 5 MHB Lang Son 6 MHB Lao Cai 7 MHB Mong Cai 8 MHB Phu Tho 9 MHB Quang Ninh 10 MHB Thanh Hoa 11 III. Central Region and Central Highlands

Bac Ninh City Hai Duong City Le Chan dist, Hai Phong City Lang Son City Lao Cai City Mong Cai City Viet Tri City, Phu Tho Ha Long City - Quang Ninh Thanh Hoa City

BIDV Kinh Bac BIDV Thanh Dong BIDV Lach Tray BIDV Dong Dang BIDV Bac Ha BIDV Tra Co BIDV Hung Vuong BIDV Ha Long BIDV Lam Son

MHB Binh Dinh 12 MHB Da Nang 13 MHB Dak Lak 14 MHB Gia Lai 15 MHB Hue 16 MHB Khanh Hoa 17 MHB Lam Dong 18 MHB Nghe An 19 MHB Quang Nam 20 IV. Ho Chi Minh city

Quy Nhon City, Binh Dinh Hai Chau dist., Da Nang City Buon Ma Thuot City - Dak Lak Pleiku City - Gia Lai Hue City Nha Trang City, Khanh Hoa Da Lat City, Lam Dong Vinh City, Nghe An Tam Ky City, Quang Nam

BIDV Tay Son BIDV Song Han BIDV Ban Me BIDV Pho Nui BIDV Phu Xuan BIDV Nha Trang BIDV Da Lat BIDV Thanh Vinh BIDV Hoi An

MHB Cho Lon 21 MHB Gia Dinh 22 MHB Saigon 23 Transaction Center 24 V Southeastern Region

District 10, HCMC Go Vap District, HCMC District 1, HCMC District 3, HCMC

BIDV Ky Hoa BIDV Truong Son BIDV Ham Nghi BIDV Ba Chieu

MHB Ba Ria - Vung Tau 25 MHB Binh Duong 26 MHB Dong Nai 27 VI. Mekong Delta Region

Vung Tau City, Ba Ria Vung Tau Thu Dau Mot City, Binh Duong Bien Hoa City, Dong Nai

BIDV Con Dao BIDV Song Be BIDV Bien Hoa

28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44

Long Xuyen City, An Giang Chau Doc Town, An Giang Bac Lieu City Ben Tre City Ca Mau City Ninh Kieu, Can Tho Cao Lanh City, Dong Thap Sa Dec Town, Dong Thap Vi Thanh City, Hau Giang Rach Gia City, Kien Giang Phu Quoc, Kien Giang Tan An City, Long An Moc Hoa, Long An Soc Trang City My Tho City, Tien Giang Tra Vinh City Vinh Long City

BIDV Long Xuyen BIDV Chau Doc BIDV Minh Hai BIDV Dong Khoi BIDV Dat Mui BIDV Tay Do BIDV Cao Lanh BIDV Sa Dec BIDV Vi Thanh BIDV Rach Gia BIDV Duong Dong BIDV Tan An BIDV Moc Hoa BIDV Song Hau BIDV My Tho BIDV Duyen Hai BIDV Cuu Long

MHB An Giang MHB Chau Doc MHB Bac Lieu MHB Ben Tre MHB Ca Mau MHB Can Tho MHB Dong Thap MHB Sa Dec MHB Hau Giang MHB Kien Giang MHB Phu Quoc MHB Long An MHB Dong Thap Muoi MHB Soc Trang MHB Tien Giang MHB Tra Vinh MHB Vinh Long

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BIDV makes Forbes Global 2000

IDV has been named the bank with the greatest revenue in Vietnam by the Forbes Global 2000 list of the biggest, most powerful companies in the world. It was announced on May 6 in New York that BIDV had revenue of USD2.44 billion and profit of USD234 million with assets of VND30.4 billion and market value of USD2.3 billion. It is one of only three Vietnamese companies on the list and ranked 783rd in assets and 1913th overall. The criteria for the ranking included sales, profits, assets, and market value. This year’s Global 2000 companies hailed from 61 countries with combined revenues of USD39 trillion, profits of USD3 trillion, assets of USD162 trillion, and a market value worth USD48 trillion. Thanks to a bull market, the total market value of these companies in this-year’s listing grew 9 percent year-on-year, the highest of the four metrics. While the United States and China dominated this year’s Global 2000, accounting for the top 10 spots on the list, there were 200 newcomers added to the roster. The U.S. still led the ranking with 579 companies,

BIDV Head office

followed by China with 232, surpassing Japan for the first time. In continental rankings, Asia ranked first with a total of 691 companies, followed closely by North America with 645 companies, and Europe with 486 companies. In Vietnam, BIDV shares (HOSE: BID) posted a nigh incredible increase of 45 percent since early this year and is among five stocks to have shown the best growth on the Ho Chi Minh Stock Exchange (HOSE). The merger with Mekong Housing Bank, approved by BIDV’s Annual General Meeting of Shareholders in April of this year, has boosted the bank’s network to nearly 1,000 branches and transaction offices, and charter capital of USD1.6 billion, making it one of the top three largest banks in Vietnam.

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Published since 2003, the Forbes Global 2000 is an annual ranking of the top 2000 public companies in the world by Forbes magazine. The ranking is based on a mix of four metrics, namely sales, profit, assets and market value.

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Ngu y en Tr an

BIDVâ&#x20AC;&#x2122;s new arm in consumer finance Opportunities in the consumer finance sector have prompted a race among banks to establish their own consumer finance (CF) companies, yet BIDV is the first primarily state-run bank to plan the establishment of its own consumer finance company in Vietnam. structure, increasing incomes, and improving living standards. As such, the consumer lending market in Vietnam is becoming very popular, not only for local banks and finance companies, but also for foreign companies.

On the right trend According to a draft circular by the State Bank of Vietnam (SBV) on the lending of credit institutions polled in late 2014, banks may not provide consumer finance loans. CF lending will be moved to CF companies, a move experts say is reasonable, helps commercial banks to be more substantive, and reduces risk from non-performing loans. Vietnam has a population of over 90 million people with a young population

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According to the consumer finance report released by StoxPlus in April 2014, the size of the consumer finance market is still relatively small at an estimated USD8.8 billion as of December 31, 2013, though this is a 15 percent increase from 2012. They also stated that consumer loans including mortgages, home renovation, auto loans, credit cards, overdrafts, etc. are likewise small with the total loan portfolio accounting for only 5.4 percent of Vietnamâ&#x20AC;&#x2122;s GDP; though they are forecasted to grow strongly, offering great potential and opportunities. Interest in restructuring finance

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companies into CF entities has been of significant interest to many companies as of late. For example, SHB acquired Vinaconex-Viettel Finance, Techcombank acquired Vietnam Chemical Finance Company (VCFC), HD Bank acquired Société Générale Viet Finance (SGVF), and VP acquired Vietnam National Coal and Minerals Finance (CMF). These examples show that the potential and opportunities in this market have not gone unnoticed.

Three options As a leading financial institution, BIDV determined that the establishment of a CF company is necessary to increase retail market share to become a leading modern retail bank in Vietnam. This will help BIDV expand its retail segment for individual customers who need consumer loans and separate customer segments by risk. In particular, the consumer credit segment, with a higher level of risk, will be separated from commercial banking activities.

CF company will help BIDV boost income and comprehensively serve customer segments, especially middle income individuals with demand for small unsecured consumer loans with short turnaround time and simple procedures. Shareholders passed the proposal to establish a consumer finance company on April 17 of this year at the annual meeting of shareholders in Ho Chi Minh City. The board of directors proposed three options for establishing the consumer finance company: (1) Acquire a finance company active in the market and restructure it into a CF company under BIDV; (2) Transform the current BIDV financial leasing company into a consumer finance company; or (3) Establish a completely new consumer finance company.

Option 1 was prioritized by BIDV for its many advantages such as conformity with the direction of the State Bank on the restructuring of finance companies toward not increasing the number of active companies; shortening licensing time; and taking advantage of the existing platform and resources of the current company to quickly put the new CF company into operation. Contrastingly, option3 is considered the last resort in case options 1 and 2 don’t work. BIDV already has subsidiaries and joint ventures in a number of fields including insurance, financial leasing, securities, asset management, and fund management. The new arm in consumer finance will provide BIDV an opportunity to promote its strategy in developing a retail segment and better care for individual customers.

The new BIDV consumer finance company will focus on retail credit, providing consumer loans directly to individual customers, such as installment loans, cash advance, credit cards, etc., as well as providing for other business activities in accordance with the law.

In addition, the soon-to-be-established

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Ngu y en Chi

Prosperity in the Central Highlands The third conference to promote investment and social security in the Central Highlands has brought more capital flow to potential projects in the region. Among investors, BIDV was one of the most active in supporting the development of this area. The conference took place in Da Lat City, Lam Dong province in the middle of May. A mountain of capital The two previous investment conferences in the Central Highlands attracted a lot of capital to the region, over USD1.4 billion from the Government budget and bonds, according to the Central Highlands steering committee. This was used to improve traffic infrastructure, irrigation, healthcare, education, and production, as well as boost sustainable socio-economic development, defense and security, and raise the general standard of living. The end of 2014 saw the region’s total outstanding loans reach about USD6.7 billion, or 3.66 percent of the national total, according to Mr. Vo Minh Tuan, the deputy director of the credit department under the State Bank of Vietnam. Tuan assessed that the capital only met 57.5 percent of the region’s need,

stating “the demand for preferential loans is getting higher in the context of a limited budget. Banks’ capital has not met the demand for socio-economic development as well as for improving the lives of local people in rural areas.”

According to economic experts though, the investment structure is weak with capital coming mostly from the state budget, government bonds, and BOT, while the management of ODA and FDI is ineffective.

The region, consisting of Dak Lak, Dak Nong, Gia Lai, Kon Tum, and Lam Dong provinces, have received total registered ODA of USD409.9 million focused on rural and agricultural development, poverty reduction, and hunger elimination. The agro-forestryfisheries sector received the largest share of FDI with USD350 million, accounting for 42 percent of the region's total FDI (USD819 million), followed by the processing and manufacturing industries with USD200 million.

Certain key transport projects have seen slow progress and agricultural products such as coffee, rubber and pepper remain untapped. Likewise the processing industry has not attracted befitting investment and the region still lacks a profitable, sustainable high value chain.

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General Tran Dai Quang, a Politburo member, Minister of Public Security and Head of the Central Highlands Steering Committee greatly appreciated the region’s efforts to attract

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Commercial bank branches (including BIDV Gia Lai Branch) signed credit agreement with enterprises

investment. However, the region still has a lot more unused potential to attract investment, and still has not met its development requirements. The central highlands only contribute 4.5 percent to national GDP while lagging behind other regions in several respects.

Capital influx Following the success of previous conferences, this year’s meeting in Da Lat saw more credit contracts to support development of the Central Highlands. 13 enterprises were given licenses for 13 projects in transport, hydropower, reforestation, tourism, and husbandry sectors with a total investment of up to USD761 million. In summary of the meeting, Kon Tum province got the largest sum of USD353 million and Gia Lai province received the most projects at four. In addition, there was a signing ceremony between eight commercial banks and 17

enterprises to finance 16 projects in the region. The banks consisted of BIDV, LienVietPostBank, VCB, VietinBank, Agribank, SHB, MB and Sacombank. At the same time, banks committed to grant medium and long-term loans worth USD694 million for power plants, transportation and agriculture development in the region. BIDV Gia Lai Branch signed two credit contracts worth USD55 million with Tay Nguyen Dairy Cow JSC. This contract is aimed at supporting a project to raise beef cows in Ia Bang village and a project to raise milk cows in Ia Pech village, both in Gia Lai province. The total loan sum was comprised of USD29.8 million and working capital for manufacturing and operations of USD25.2 million. Tay Nguyen Dairy Cow JSC was established in April 2014. HAGL, the major stakeholder, owns a 45 percent stake in the company.

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The amount of beef currently supplied to the market is dwarfed by demand, according to the Vietnamese Department of Animal Health, showing such projects have potential. Data from the Animal Husbandry Association of Vietnam showed that the volume of milk supplied only accounted for 25-35 percent of market demand, thus necessitating the importation of milk. With a population growth rate of 0.9-1.2 percent per annum, Vietnam’s dairy demands are continuing to increase. Given the credit agreement, it is easy to see the commitment from commercial banks in developing the central highlands, a region of particular importance to national socio-economic development. Capital provided to the area will contribute not only to the development of the region, but also simultaneously improve the living standards of the local population, including ethnic minorities.

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Dr . Vo Tr i Thanh

Dr. Vo Tri Thanh is the Vice-President of the Central Institute for Economic Management (CIEM)

SBV forex adjustment spotlighted Enterprises and investors have commented that the recent upward adjustment of the forex rate came unexpectedly soon. In all the recent discussions however, the opinions of this decision have for the most part been positive. A surprising adjustment After the last major forex adjustment of 9.3 percent on February 11, 2011, Vietnam’s foreign exchange rate has remained consistently stable with an annual hike of 0.67 percent thanks to domestic and global factors. These factors included a weakened USD and Vietnam’s tightened fiscal and monetary policies. Also important was the State Bank of Vietnam’s (SBV) commitment to keep the foreign exchange rate adjustment band to within 2 percent. Moreover, thanks to low labor cost advantages and attractive investment policies, FDI and FII to Vietnam increased significantly. In addition, huge remittance inflows contributed to ensuring a continuous trade surplus and high foreign-exchange reserves, the latter of which climbed from USD9

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billion at the end of 2011 to more than USD35 billion by the end of last year (equivalent to 12.5 weeks of imports). These factors helped reduce Vietnam’s dollarization trend to a point where the ratio of USD deposits to VND deposits fell to 10 percent in 2014, compared to 20 percent in 2010. However, although the foreign exchange reserves have continued to improve and the trade balance is expected to stay high and reach USD5 billion by 2015, other factors affecting the exchange rate are changing markedly, leading to State Bank’s decision to adjust the foreign exchange rate last month. Firstly, FDI inflows are slowing compared to last couple of years and the USD is once again gaining strength on the back of an improving American economy. Another factor is that Vietnam’s interest rates are falling thanks to inflation being under control and measures by banks and the SBV to increase credit. Keeping the exchange rate unchanged for such a long period of time has reduced Vietnam’s competitiveness on the international

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market, resulting in a trade deficit and substantially raising expectations for an exchange rate adjustment. With the SBV’s decision to adjust the exchange rate in May, for the second time this year, it is clear that the banking authority is showing a proactive, flexible market management policy, especially at a time when the USD has revalued by 14 percent against other major currencies since the beginning of this year.

A beneficiary economy In the short-term, the rate adjustment is expected to help ease the market’s USD speculation, further stabilize the forex market and reduce transaction rates at commercial banks. The SBV is in a strong position because it won’t have to sell its reserves to balance out the market. The adjustment is also a move to boost export, which is key to Vietnam’s growth, as well as relieve difficulties related to production and create momentum for economic recovery. Moreover, global prices increase when

the dollar revalues or when there is higher demand for Vietnamese products, all of which will help boost domestic production.

Coming pressure The first pressure on a foreign exchange market is a broadened trade deficit. In the first four months of this year, Vietnam reported a trade deficit of USD3 billion. This trend might continue in the coming time due to the demand for imports to boost domestic production. Although the overall balance of payments still sees a surplus in the first quarter this year (USD3 billion), that surplus is actually lower than the previous year (USD8 billion in Q1/2014). Another pressure point is plummeting deposits that increase the demand for foreign currency. A third point is the revaluing USD and expectations that the Fed will raise interest rates, which will likely cut down on foreign investment into Vietnam. The final pressure is a political risk. East Sea tensions will cause market

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sentiments to sour. The pressure on the foreign exchange market is high, now that the central bank has used up the entire adjustment band it had committed to for the whole year. However, market confidence is improving thanks to authorities’ determination to ensure national foreign currency reserves and overall balance of payments (USD36.7 billion and USD8 billion, respectively). Inflation is currently forecast low, contributing to confidence in the dong. Moreover, the Fed is expected to adjust the exchange rate in June this year, cooling the pressure the appreciating USD is having on the global market. The SBV’s drastic move to use the year’s committed adjustment band of 2 percent indicates a more flexible management approach in the coming time to ensure foreign exchange supply and demand and consolidate market confidence in the domestic currency at a time when Vietnam is integrating more deeply into global financial markets.

market movements

Tra ng Tr inh

Real estate on the rebound The property market in Vietnam is showing signs of warming up with a significant increase in successful transactions as well as an inventory plunge.

month-on-month. With the aid of an assortment of promotional programs, such as providing deposit accounts, gold, granting discounts, or free service charges for a given period, developers continued to sell more houses in April. Real estate inventories also decreased, according to the Housing and Real Estate Market Management Agency under the Ministry of Construction. As of April 20, total inventory was valued at about USD3.17 billion, down 46.49% year-on-year.

y mid-April, the number of transactions in the real estate market in Hanoi and Ho Chi Minh City had nearly tripled that of last yearâ&#x20AC;&#x2122;s figure during the same period, according to statistics from the Ministry of Construction. Hanoi and Ho Chi Minh City reported 1,600 and 1,500 successful transactions, respectively, an increase of 10 percent and 15 percent

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The launch of a variety of high-quality projects helped lead the market rally. These projects met different customer segmentsâ&#x20AC;&#x2122; demands, especially those of the middle segment. Furthermore, many banks are providing financing for a raft of real estate projects and are offering credit packages with attractive promotions for apartment buyers. For instance, BIDV launched a property credit package to fulfill individual customer demands for property loans. Effective from March 20 to August 31, the package is worth USD239 million and offers an initial interest rate of 7 percent per annum for 12 months, loan maturity up to 20 years, and

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Vinhomes Reviverside, Long Bien District, Hanoi, Vietnam

flexible solutions to each customer’s demands. Moreover, BIDV has pioneered the “linkage of four” strategy, including project owners, developers, suppliers of building materials and banks, thus helping to liberate capital flows and provide products faster. The cooperation of banks and developers has brought many benefits to property customers, and it is helping to warm up the real estate market in Vietnam and help people with real housing demands. According to the head of the Housing and Real Estate Market Management Agency Mr. Nguyen Manh Ha, the current total outstanding loans disbursed to the real estate market has reached USD15 billion, markedly higher than the figure from the recession period of USD8.2 billion. Besides capital outflow, many banks

have also reduced their lending rate, which has contributed to greater market liquidity. Commercial banks have reduced their interest rates by 0.1 percent - 0.5 percent for both short and long-term loans since the beginning of the year. According to Le Xuan Nghia, a banking expert, the downward adjustment to record low interest rates in the first months of 2015 will have positive impacts on the real estate market’s recovery. Lower deposit rates will encourage investors to withdraw money to invest in the real estate market, while lower lending rates encourage customers to borrow for a new house. This will help enhance market liquidity, generating more successful transactions in the first four months this year. In addition to support from banks, a huge influx of FDI has also been a significant contributor to market

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recovery. The latest report from the Ministry of Planning and Investment’s Foreign Investment Agency shows that total FDI registered in the country topped more than USD3.77 billion for the first 4 months this year. The property market is the second most attractive sector next to FDI with USD327 million, while wholesale and retail markets ranked third with USD198.6 million. The real estate market may be bustling in the coming quarters as several massive projects are set for completion during that time. According to Savills Vietnam - one of the largest real estate service providers in Vietnam, the last three quarters of 2015 will see about 14,000 apartments from 20 different projects open for sale in Hanoi. The market in Ho Chi Minh City will likewise soon be in a similar situation as tens of thousands of apartments will be sold.

market movements

Viet Dung

2015 races into Q2 Vietnamâ&#x20AC;&#x2122;s macro economy ended the first four months this year with impressive growth, creating favorable conditions for a brighter economy in the second quarter. Many prestigious organizations reported positive forecasts. Impressive results According to BIDV Research Centerâ&#x20AC;&#x2122;s macro economy report, IPP increased 9.4 percent in the first 4 months this year, higher than 5.4 percent of the same period last year. April PMI data rose to 53.5, the strongest improvement since the series began in April 2011. This pointed to a solid improvement in business conditions in the Vietnamese manufacturing sector as improving client demand led to stronger rises in output and new orders. Inflation was kept low with April CPI increasing only 0.14 percent month-onmonth and 0.99 percent year-on-year while total retail goods turnover and

consumer service revenue recorded on-year growth of 8.8 percent, showing improved demand. In addition, more FDI flew into Vietnam thanks to an improved business environment and positive macroeconomic prospects. Disbursed FDI in April reached USD1.1 billion, up 5 percent year-on-year, and registered FDI reached USD1.9 billion, up 23.8 percent year-on-year. Production from enterprises grew as well. By the end of April, the number of newly established enterprises and newly registered capital rose 9.7 percent and 13.3 percent respectively. The number of enterprises that dissolved or suspended operations fell by 0.8 percent year-on-year.

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The banking system also reported significant growth. Based on figures from the Vietnam National Financial Supervisory Commission (NFSC), the nationâ&#x20AC;&#x2122;s credit growth reached 2.78 percent in the first four months of this year, the highest in three years. The figure from the same period in 2013 was 1.04 percent and 0.53 percent in 2014. NFSC emphasized that this positive sign showed real credit growth and was not, instead, a pressure at yearend, like in previous years. Indeed, the monetary market and the liquidity of the banking system remained stable even though the past few months were witness to the drastic restructuring progress of the banking system, such as the merger of Mekong Housing Bank (MHB) into BIDV, PGBank into VietinBank, Mekong Development Bank (MDB) into Maritime Bank and the sale of stakes of BIDV Insurance Corporation (BIC) to foreign strategic

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Vung Tau Port in Ba Ria–Vung Tau Province, Vietnam

investor FairFax Asia Limited.

are expect to reach USD6.7 billion and USD5.8 billion respectively.

OUTLOOK UP According to BIDV Research Center, enterprises’ production will continue recovering and macroeconomic indicators will show better results than the same period last year. More specifically, CPI in this year’s second quarter is expected to go up 1-1.2 percent against the end of 2014 due to rising consumption demand, upward adjustment of oil and petrol price in previous months and the increase in global inputs price. However, this is still a slow CPI increase compared to the average growth of 20 percent in five recent years. IIP is expected to increase 10.3 percent, total retail goods turnover and consumer service revenue to climb 10.5 percent year-on-year, and FDI to be higher than the start of the year. Registered and disbursed FDI

NFSC excitedly mentioned in their latest report that Vietnam’s economic recovery continues to speed up thanks to a stable macro-economy, setting the stage for the sustainably rapid growth. The positive economic trends have been recognized by domestic and international experts and organizations. At Vietnam’s annual Spring Economic Forum, an official forum between the government and enterprises aiming to build a smooth and favorable business environment in Vietnam, most experts agreed that Vietnam was in a strong recovery and restructuring phase and that the business environment has improved significantly. The World Bank recently upgraded its prediction to Vietnam’s GDP in 2015 from 5.4 percent to 6 percent, with speculation that growth could

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accelerate to 6.2 percent in 2016 and 6.5 percent in 2017. Experts from ANZ have the most optimistic view on Vietnam’s macroeconomy with 6.5 percent expected for 2015. HSBC’s leading indicator - new orders minus inventories - suggests that Vietnam’s output will continue to expand in the months ahead, reflecting the country’s labor cost competitiveness, which continues to attract FDI inflow. Vietnam’s real GDP growth has been steadily improving and HSBC expects it to accelerate to 6.1 percent in 2015 from 6.0 percent in 2014. Experts assess that although Vietnam continues to face existing issues like bad debts, the slow equitization process of state-owned enterprises, and a trade deficit, the macroeconomy can be expected to achieve higher growth and to settle these issues gradually.

international investment

Tha nh B inh

Growth of opportunity

uring a visit by the President of Vietnam to the Czech Republic, BIDV worked with the Czech Confederation of Industry and Transport, CEB Bank and Eximbanka to hold a forum on economic and tourism cooperation on May 11, 2015. The meeting was attended by State President of Vietnam Truong Tan Sang, President of the Czech Republic Milos Zeman, leaders of Vietnamese

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ministries and nearly 500 investors from Vietnam, the Czech Republic, Slovakia, Poland and Hungary.

Opportunities for trade and tourism Topics discussed at the forum were Vietnamese trade and tourism investment in the Czech Republic and Slovakia. Frank and constructive opinions were given by Vietnamese,

international investment

Czech and Slovakian state regulators and investors. Czech president Milos Zeman stated his admiration for the rapid socio-economic development of Vietnam. He affirmed that economic cooperation between the two countries has great potential, particularly in the fields of power, heavy equipment, mineral exploration and technology. The president also willed Vietnam to support Czech businesses to allow effective operations in Vietnam.

President of Vietnam Truong Tan Sang asserted Vietnam is a safe and attractive investment destination

Giving thanks for the attendance by numerous business representatives, President of Vietnam Truong Tan Sang asserted Vietnam is a safe and attractive destination for both foreign investors and international tourists. In the near future, a series of bilateral and multilateral trade agreements will be signed between Vietnam and other countries, including the EU-Vietnam Free Trade Agreement (EVFTA). This is an important basis for promoting trade, investment and tourism between Vietnam and other countries in the region. President Sang said he appreciated the efforts of BIDV and the business community in holding a professional forum that drew the attention of various investors from the Czech Republic in particular, as well as Eastern and Central European countries in general.

BIDV - the bridge With considerable experience in

successfully organizing forums and conferences on tourism and investment promotion in Asia, BIDV will continue to act as a bridge connecting Vietnamese enterprises with interests in the Czech Republic, Slovakia as well as Eastern European countries. Through BIDV, businesses of this region will receive useful information and financial service support when doing business in Vietnam. BIDV also hoped that through contacts made at the forum, regional businesses will discuss and actively seek partners to showcase their strengths, and exchange information in the furtherance of new contracts and agreements. Speaking at the forum, Mr. Tran Bac Ha - chairman of BIDV affirmed that the bank was committed to continuously working effectively with Czech and Slovak banks. They had a common goal to develop products and services to financially support businesses of all countries in developing new opportunities.

At the forum, four memorandums of understanding were signed; one between the Vietnam Chamber of Commerce and Industry (VCCI) and the Confederation of Industry and Transport; one between BIDV and the Czech Export Bank (CEB); an agreement to purchase machinery and equipment for Vinh Son Hydropower Project with Marvel; and a cooperation agreement between Fancon and SKD (Czech) on Haiphong-Lach Huyen railway. On this occasion, BIDV also signed an agreement with Export-Import Bank of Slovakia (Eximbanka) to extend ties between the two banks. Prague Old Town Square, Czech Republic

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partners

Q u ang Die u

BIC inks FairFax deal In May, FairFax Asia Limited signed a deal to buy a 35 percent equity stake in BIDV Insurance Corporation (BIC) and join as its foreign strategic partner. The deal with Fairfax Asia Limited – a subsidiary of global leading Canadian insurer Fairfax Financial Holdings - is expected to help BIC become the leading non-life insurer in Vietnam and in the region.

ccording to Mr. Pham Quang Tung, Chairman of BIC, this is a unique opportunity for the company to enhance product and service quality. To achieve this, FairFax will provide BIC with technical assistance in underwriting management, risk management, information technology, development of distribution channels, and investment management. With a 35 percent share position in BIC, FairFax will become the second largest shareholder after BIDV with 51 percent. After the transaction,

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BIC’s charter capital will increase to VND1,172 billion (USD53.8 million) and it will become one of the largest non-life insurers in Vietnam in terms of owners’ equity. BIC is one of the top Vietnamese nonlife insurers with 25 branches and 120 business offices. In 2014, the company reported consolidated gross premiums of nearly USD60 million and it has a history of high growth and strong profitability. This strategic cooperation is an opportunity for BIC to become a powerhouse insurer not only in Vietnam but also in Asia. It will enable

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Mr. Pham Quang Tung – Chairman of BIC signed strategic agreement with Mr. Ramaswamy Athappan, Chairman and CEO of Fairfax Asia

FairFax Asia to deepen its presence in the domestic marketplace. According to Mr. Ramaswamy Athappan, Chairman and CEO of FairFax Asia, his company has been studying the Vietnamese market carefully and is convinced that this is the right time to enter. The future growth potential, low insurance penetration and expanding middle class provides an excellent platform for phenomenal growth in insurance. “We are therefore committed to participating in the market for the long term.” “We are convinced that our partnership will set new benchmarks for success and development in the market,” Mr. Athappan emphasized. He said that FairFax Asia considers BIC to be one of the most attractive partners with a great platform for profitable

and sustainable growth given BIC's strong management and leadership, focus on profitability, presence across Vietnam, Laos and Cambodia, and, most importantly, its close relationship with its parent BIDV. FairFax operates broadly in many Asian countries including India, Indonesia, China, Malaysia, Singapore, Hong Kong, Thailand and Sri Lanka. With over USD2.6 billion in gross premiums written in 2013, FairFax Asia is one of the largest non-life insurers in Asia. ICIC Lombard, a Fairfax joint venture in India, and First Capital, a company with major stakes owned by FairFax, are both the leading insurers in their respective markets. Mr. Tran Bac Ha, Chairman of BIDV, said that it took FairFax 10 years to make ICIC and First Capital the leading insurers of India and Singapore. Ha,

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however, said he hoped that it would only take Fairfax 5 years to bring BIC the same success. Based on the State Bank of Vietnam’s banking restructuring plan, Mekong Housing Bank has been successfully merged into BIDV. This will have the effect of increasing BIDV’s network to nearly 200 branches and transaction offices, bringing the total to nearly 1,000. The bank also plans to see an increase in customers from 7 million to 12 million over the next five years. According to Mr. Ha, this expansion will certainly boost BIC’s business as well. Once FairFax joins BIC as a strategic investor, it will be entitled to appoint two nominees to the Board of Directors (including one vice chairman) and two to the supervisory board.

partners

A meeting between BIDV and Juroku Bank

Juroku visit promises stronger ties On April 24, 2015, Chief Executive Officer of BIDV Mr. Phan Duc Tu received the President of Juroku Bank Mr. Yukio Murase and his team in Hanoi and discussed the strengthening of cooperation between the two banks.

IDV and Juroku determined that cooperation between the two banks is mutually beneficial and ensures the interests of each party. Pledging to provide the utmost support to Juroku by providing products and services to Japanese companies investing and trading in Vietnam, BIDV also invited Juroku to assist it in providing loans to Japanese businesses in Vietnam such as shortterm loans denominated in Vietnamese dong, payments, and payroll services. A co-supporter of Vietnamâ&#x20AC;&#x2122;s infrastructure development, Juroku is now set to cooperate with BIDV in financing projects and works in Vietnam, including making direct loans from Juroku with BIDV guarantees. Likewise, BIDV expects to onlend the loans from Jukoru to Japanese firms for infrastructure development in Vietnam. BIDV and Jukoru will

collaborate to provide long-term funding to Japanese businesses which have long-term investments in Vietnam. The two banks also discussed the provision of banking services to Vietnamese businesses in Japan. The two leaders conducted the visit in the hopes of strengthening the cooperation between the banks themselves. In a visit to Japan on March 18, 2014, Vietnamese President Mr. Truong Tan Sang, and the Prime Minister of Japan, Mr. Shinzo Abe, agreed to upgrade Vietnam-Japan relations to an extensive strategic partnership, an expected trigger of strong investment between the two nations. BIDV, with its extensive network and good relationships with local authorities and leaders of economic zones and industrial parks, is willing to support Japanese enterprises to invest in areas

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of interest for Japanese companies including industrial parks and industrial zones. Earlier, under the framework of the cooperation agreement between BIDV and Juroku in December 2013, the two banks developed programs to support Japanese firmsâ&#x20AC;&#x2122; investments and business in Vietnam, as well as to promote trade and economic ties between Vietnam and Japan. Juroku was the first Japanese bank which BIDV receives its secondees to the Japan Desk at BIDV.

Juroku Bank, Ltd. is headquartered in Gifu prefecture, the industrial center of the Chubu region of Japan. Since its founding in 1877, the bank has played a pivotal role as a leading financial institution in its area. The Bank has 157 domestic branch offices as well as representative offices in Hong Kong and Shanghai. As of the end of March 2014, the bank had total assets of nearly USD56 billion and a capital ratio of 11.15%.

partners

Q u y nh Phan

Sharing to achieve more successes Between May 22 and 23, 2015, in Phu Quoc, Kien Giang province, BIDV successfully hosted its VIP customer conference themed “Integration, development and success”.

ttending the program were more than 80 key clients representing leading businesses and corporations in Vietnam which accounted for 60% of GDP of Vietnam in 2014. The conference was an opportunity for the businesses to collaborate, understand and further promote their strengths for increasing success.

provided a comprehensive view of the potential and ways to do business given the deep integration. As the bridge, BIDV once again left the clients with a good impression. Addressing the conference, BIDV CEO Mr. Phan Duc Tu said that with the in-depth studies of local and foreign market mechanisms, policies, and conditions, BIDV has launched a variety of products and services tailored to the clients. In addition, BIDV’s mechanisms and policies have been improved, providing invaluable support to businesses in their

2015 marks Vietnam’s strong economic integration in the region. With the desire to provide the clients with a look at the progress and impacts of the agreements such as ASEAN Economic Community (AEC), Vietnam - EU Free Trade Agreement (Vietnam - EU FTA), Trans-Pacific Partnership (TPP), etc. on the international economic integration, BIDV invited regulators, economists, bankers and business people to discuss macroeconomic policies, issues and the world economy. The opinions given by the participants

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production and business activities. Sharing information about the merger of MHB and its implication to BIDV, Mr. Tu stressed, “The successful merger allows BIDV to continue to be the leading bank in Vietnam by size, network, technology, customer base, etc. With those advantages, BIDV will support and serve customers better”. In particular, with biggest business network and presences in foreign countries among Vietnamese banks, BIDV is a reliable partner for businesses to seek for markets and cooperate with foreign firms.

partners

Quach Hung Hiep - BIDV’s Senior Executive Vice President and Vu Minh Tuan - VOV’s Deputy Director General sign the agreement.

Sound relations between BIDV and VOV

n May 19 in Hanoi, BIDV and VOV signed a comprehensive cooperation agreement lasting until 2020. This marks a new milestone in the leading financial institution’s partnership with Vietnam’s big media agency. Under the agreement, BIDV will provide credit, banking and financial services to VOV and its member units. The two sides will regularly provide and exchange information on production and business activities, the demand for credit and other transactions, and

closely collaborate in communication activities related to the financial and banking sector. BIDV pledged to enable VOV to access and use the bank’s services conveniently and efficiently, ensuring VOV preferential and competitive interest rates in accordance with the bank’s regulations. VOV will prioritize the use of BIDV’s banking services (such as payment, fund management and insurance). The media outlet will also provide support for the promotion and communication of the bank’s products

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and services on the VOV’s channels. The agreement aims to further ties to ensure long-term, sustainable cooperation. Based on this relationship, both sides will be better able to leverage potential, diversify business activities and therefore improve competitiveness in their respective markets. The arrangement not only strengthens BIDV’s development strategies but also contributes to nationwide economic development by allowing the government to publicize guidelines and policies.

partners

Thu y Hoang

Project management:

Going global with PMP

n April of this year, BIDV collaborated with QNET to implement a training course to enhance the professional project management capacity of BIDV’s Information Technology Center (IT Center). Following the outline of the U.S-based Project Management Institute (PMI) program, the course allows trainees to earn Project Management Professional (PMP) credentials and includes topics such as Project Management Fundamental (PMF), Project Management Professional (PMP), and PMP Certification.

education and competency of project managers in leading and directing projects. International projects all require project managers to obtain PMP credentials. Large customers also often require project management companies to have a given number of project managers with PMP credentials. At the completion of the PMF course, the top performing 50 percent of trainees will qualify for the next course of PMP and attend a test to earn a PMP credential from PMI. As a professional

The IT center has to manage a broad array of complex matters each year given BIDV’s strong development. As such, investment in enhancing the capacity and knowledge of those involved in project management is consistently given priority to ensure projects have leaders well equipped with the knowledge and skills needed to reach company goals. By applying an international standard in project management, BIDV can ensure that their project management framework is globally uniform. Through meticulous study, the IT center has found that the PMP certification is the most important, most globally recognized, and most highly valued certification to demonstrate the experience,

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training provider, QNET tailored the course based on the qualifications of attendants so that it was more in line with BIDV’s projects. The resulting course was designed to provide trainees with professional knowledge and understanding of the procedures in project management in reference to US project management methods. With an industry-recognized PMP certification, BIDV will affirm its position in the world’s most prestigious project management community.

partners

Q u y nh Chi

BIDV backs FLC’s $163m Nhon Ly resort On May 23, FLC Group Joint Stock Company (FLC) broke ground on Nhon Ly resort, villa and luxury entertainment complex in southern Binh Dinh province for which BIDV has offered financing of up to 70 percent of the total investment.

he project plans to include a golf course, five-star superior resort, hotels, five-star restaurant, convention center and entertainment services, a total area of 300-hectares and total value of USD163 million. It will begin to operate at the start of next year. “The investment incentives and tourism development potentials led FLC to choose Binh Dinh as the location of our project”, stated Mr. Doan Van Phuong, the company’s CEO. Binh Dinh province has a lot of tourism potential with its long coast, sapphire waters, porcelain sand, proliferation of scenic locations and intangible cultural value such as the traditional martial

Nhon Ly Beach, Binh Dinh Province

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partners

Nhon Ly Beach, Binh Dinh Province

arts and tuong, a form of traditional Vietnamese theater. “After going into operation, the project will contribute to the tourism development of the province, promoting socio-economic development, creating jobs for local people, and attracting investment into the province as a whole”, said Vice Chairman of Binh Dinh’s Provincial People’s Committee Mr. Ho Quoc Dung. FLC’s project in Nhon Ly is located in a poor region belonging to the Nhon Hoi economic zone. As such, the project gets a very high tax incentive. “There is no place in the country offering as high a tax incentive as this”, Dung emphasized. Mr. Tran Bac Ha, Chairman of BIDV, said his company was committed to supporting FLC in terms of consultancy

and credit. He stressed that it is crucial for the province to attract investors and that there must be clear policies regarding investment incentives to do so. Furthermore, to develop the province’s tourism, it is necessary to involve foreign consultancies. Finally, he noted that there must be more consistent entertainment, tourism products and tours, in addition to high-class accommodation to attract customers sustainably.

FLC received their investment certificate from the Binh Dinh Economic Zone Authority early this month. Prior to receiving the investment license, FLC Group, the Binh Dinh Provincial People’s Committee and BIDV signed a cooperation agreement in which the province promised to support the private investor while BIDV will offer financing of up to 70 percent of the total investment.

Over the years, FLC has continued to report increasing revenue, profit, and growth of total assets. The company’s total consolidated revenue and profit in 2014 reached USD138 million and USD20.9 million, respectively. Its current charter capital stands at USD184 million. The group has invested in many real estate projects nationwide, including a mega eco resort worth USD252 million covering over 200 hectares in Thanh Hoa Province. The project started in May last year. FLC already inaugurated the international convention center, golf course club house and the five-star resort - Fusion Resort Samson (phase 1)

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partners

Tha o Lam

Strength in the Central Highlands A relationship established and grown through challenges will become stronger and serve to lead to great success.

Duc Long Gia Lai group's hydropower project

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Strategic partnership Hoang Anh Gia Lai (HAGL) is a large multi-sector economic group doing business domestically and internationally. Since it began, their relationship with BIDV has been set towards growth. The two parties signed a comprehensive cooperation agreement thus marking a milestone in their partnership. With this accord, both groups can utilize and promote the strengths of one another for business development. Many projects from HAGL have been worth as much as trillions of dong to build facilities, such as those to procure raw materials and obtain production equipment, and they were all evaluated, advised, and funded by BIDV. BIDV Gia Lai has always been a reliable strategic partner to businesses in general, and especially to HAGL for not only service behavior, but also the effective and practical support to businesses on their path to excellence. The group stated that this year and onwards, they will focus on investing in the livestock industry, farming, hydropower and property. The firm

partners

HAGL Arsenal JMG Football Academy in Gia Lai, owned by Hoang Anh Gia Lai group

will begin operation of its palm oil processing plant in Cambodia in July this year. HAGL is looking for support and cooperation from BIDV in the implementation of business plans and strategies while providing maximum support for their customers. With success already salient, the leaders of the two companies believe that the cooperation derived from the trust and responsibility between the two firms will continue to be even more successful.

Strength through adversity With the motto Share Opportunities, Share Success BIDV has also supported Duc Long Gia Lai group since it was a small private enterprise with initial loans from only some hundred billion dong. Lending has expanded commensurate with the growth of the company and BIDV has continually aided them in overcoming challenges, maintaining production and business operations, and expanding investment. Through this process, the group has become a reliable partner of the bank.

Pham Anh Hung, CEO of Duc Long Gia Lai said, “In recent years BIDV, and particularly BIDV Gia Lai and our company have built a strong relationship based on mutual cooperation. The success of Duc Long Gia Lai is attributed to the great support of credit institutions, particularly BIDV and its Gia Lai branch.”

A bond based on trust Chu Se Rubber Company Limited (CRC), a member of the Vietnam Rubber Group, manages 8,142 hectares of rubber in Vietnam and has invested in growing 16,268 hectares of rubber in Cambodia. For 30 years the company has created jobs and increased the income of local laborers. The well-timed support of BIDV Gia Lai was vital to CRC’s success. Following a comprehensive cooperation agreement, BIDV Gia Lai boosted funding and disbursement of those assets to the company’s projects. The evaluation and granting of credit to meet short to long-term capital needs of CRC was fast and effective. Furthermore, BIDV

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Gia Lai provides CRC with services such as accounts, currency trading services, internet banking, etc. “In all circumstances, especially in times of hardship, BIDV Gia Lai and CRC have shared and exchanged information on a timely basis to find appropriate solutions,” said Nguyen Quoc Khanh, CEO of CRC. “Therefore, the partnership between us has led to good results, contributing positively to production and development as well as position and branding.” Khanh also stated that CRC will continue to partner with BIDV to promote the strength of both parties towards ensuring the highest business efficiency and reinforcing the position and brand of both parties given recent development trends.

“In recent years BIDV, and particularly BIDV Gia Lai and our company have built a strong relationship based on mutual cooperation.” Vo Truong Son, Chief Executive Officer of HAGL Group.

products & services

VRB launches corporate e-banking

ollowing the e-banking trend, the Vietnam â&#x20AC;&#x201C; Russia Joint Venture Bank (VRB) officially launched its corporate internet banking (VRB e-IB) service on May 8, 2015. VRB e-IB is a digital banking service offered to corporate customers who have accounts with VRB. The system fully integrates outstanding features of an internet banking service and provides maximum support to customers in regard to account queries, domestic transfer, payrolls, online deposits, loans, and interest payments.

The VRB e-IB marks significant progress in connecting banks and customers via a modern platform. It helps corporate customers minimize costs and save time by bringing them convenience and easing the pressure on traditional transaction channels (i.e. over-the-counter transactions). A user-friendly interface, high security, availability, and simplicity mean the VRB e-IB can help enhance customer experience, provide a higher quality of service, and bring in more clients. The bank earlier introduced its personal internet banking to individual

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customers. Itâ&#x20AC;&#x2122;s clear that they are committed to diversifying and improving their products and services, as demonstrated by their corporate internet banking system. Founded in 2006 and headquartered in Hanoi, Vietnam-Russia Joint Venture Bank is a joint venture between the two leading banks of Vietnam and Russia, namely the Bank for Investment and Development of Vietnam JSC (BIDV) and Bank for Foreign Trade of Russia (VTB). As of March 31, 2015 VRBâ&#x20AC;&#x2122;s total assets stood at USD477 million with outstanding loans of USD 269 million.

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Reds fans in Vietnam enjoy UNITED: LIVE party

n May 24, 2015 in Ho Chi Minh city, former Manchester United stars Gary Bailey and Mikael Silvestre joined thousands of fans at the Quan Khu 7 indoor stadium in Ho Chi Minh City, Vietnam for a live screening of the Reds’ final game of the season at Hull City, providing match analysis, signing autographs and recalling memories of their time at the club. The two stars enjoyed the hospitality of the Vietnamese people and the fans' passion, and were fascinated by the history and culture of the country. There were no goals to cheer but there was a terrific atmosphere inside the stadium nonetheless. Manchester United's Group Managing Director, Richard Arnold, said, “Vietnam is home to some of the club’s most passionate and loyal fans and we are delighted to be able to bring UNITED:LIVE to Ho Chi Minh City. We have close to 26.5 million followers in the country and this event is our way of thanking these fans for their commitment and support”. BIDV, one of the Manchester United’s financial partners for the party, had a great opportunity to introduce their BIDV Manchester United cards to the Reds fan. On this occasion, BIDV launched a promotion program dedicated to customers in Ho Chi Minh city. Accordingly, those who apply for BIDV Manchester United debit card between May 11 and May 24, 2015 will have opportunity to get a free pass to the party, receive ManUtd player signature T-shirts, MU sports bags and VND100,000 (~USD5) to their accounts at BIDV. In addition, they will be entitled to lucky-draws at the event to receive 3 ManUtd player signature T-shirts; 5 MU sports bags and 20 MU flags with player signature.

HELLO, IT’S BIDV

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Is there any other way for me to apply for BIDV online other than in person at a branch? You can apply online at BIDV’s website HYPERLINK "http://www.bidv.com.vn" www. bidv.com.vn. Our Contact Center will get in touch with you for confirmation. You should remember the exact information you have registered with the bank such as account number, mobile phone number, and other personal information to complete the registration confirmation.

I entered my phone number on the website to apply for BIDV online yet was rejected by the system even though the number was correct. What should I do? To apply for BIDV Online and BSMS on the website, you should remember the exact phone number you initially registered with the bank. If you have changed your phone number, please contact our nearest branch to update your information.

Which BIDV card is the most convenient for foreigner customers to make payments in Vietnam? BIDV supplies many kinds of cards to meet the demands of customers who often make bill payments during daily life such as in stores, restaurants and when on trips. Among those, the international card types, including debit cards and credit cards, are best for reaching a high level of security for customer transactions and are accepted all over the world by merchants and ATMs with the Visa or MasterCard logo.

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Tha ng Cong

Cards

without borders

aoVietBank has resolved their difficulties in cash transfer via connection into the national switching system and, in doing so, made their cards more convenient and user friendly. In addition to overseas investment, Vietnam has brought thousands of laborers, including workers, experts and engineers, to Laos. These laborers are paid directly in Laos and often have need to transfer their income back to Vietnam. At the same time, laborers being paid by companies in Vietnam often want to withdraw cash for daily use in Laos. Successful connection of LaoVietBank ATMs with the Vietnam National Financial Switching Joint Stock Company (Banknetvn) became a milestone in developing finance and banking relationships between the

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two countries. The connection helps cardholders of 28 member banks of Banknetvn carry out transactions via LaoVietBank ATMs across Laos, and vice versa. Thanks to this connection, LaoVietBank cardholders can safely withdraw money directly from LaoVietBank ATMs in the two countries; it is also faster and cheaper. Previously, if overseas laborers wanted to send their monthly income to their families, they had to convert their pay into USD or VND and ask someone to carry the money across the border for them, a system which was both risky and expensive. To further increase freedom of cardholders, they can issue supplementary cards to their family members so that the money is readily available for everyday purposes as well

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LaoVietBank ATMs have been connected to the Banknetvn system since September 2014, making LaoVietBank the first bank in Laos to connect with a foreign card payment system. as emergencies. “LaoVietBank cards not only play important roles in the daily life of laborers in Laos, but also act as a bridge for the laborer and their family back in their homeland,” said Le Van Thang – an officer working in Laos. Laborers in Laos receiving payment in Vietnam previously had to send representatives to Vietnam to take their payment back to them. Now, however, they can directly withdraw cash from 28 different Vietnamese bank’s account at LaoVietBank ATMs. In addition, laborers can now also actively transfer their salaries into savings accounts in either Laos or Vietnam.

Additionally, LaoVietBank provides a range of account management services including SMS banking to inform clients about changes in the balance of their account. Furthermore, cardholders can pay utility bills, airline tickets or even transfer money to other LaoVietBank accounts and other accounts in Laos. The connection of LaoVietBank and Banknetvn adds to the strengthening bond between the two countries by bringing LaoVietBank cardholders closer together while simultaneously increasing the benefits to patrons of 28 other banks in Vietnam.

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Money transfer costs are expected to be reduced to one-sixth of the standard international charge by these transaction services. The expected savings from the services are projected to help more than 30 million customers in both Vietnam and Laos save billions of dong. According to Mr. Doan Viet Nam, CEO of LaoVietBank, the connection between Banknetvn and LaoVietBank is an important milestone in the 16 years of development and operation of LaoVietBank in Laos, affirming the bank’s commitment to supporting customers’ success.

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Ho ng Ngoc

The island of natural treasures

Ly Son, the beautiful island, recently flourished into an alluring tourist attraction

Must see destinations

Hang pagoda in Ly Son island

Fast craft Between June and September, when the weather is often nice, sunny, and suitable for boating, is the most appropriate time to visit Ly Son. Currently, Sa Ky port terminal operates transportation to the island. Visitors should come to Sa Ky port early in the morning to buy tickets to the island by high-speed watercraft. The round-trip

ticket there is around USD10. Visitors must show some form of identification and provide personal information to purchase a ticket. Accomodations, such as hotels and motels, are primarily located along the coast and have a relatively cheap rate of USD10 per night. Vistitors also have the option of homestays costing USD7 per night to learn about life on the island.

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Hang pagoda is situated in the biggest cave system of Ly Son island, formed by the Thoi Loi mountains 25km from Sa Ky port. If Ly Son is the embodiment of natural beauty, then Hang pagoda is an amazing stone sculpture that nature bestowed to the people of the island. Seen from afar, the Hang pagoda is hidden in the centuries old sea poinson trees. The front of the pagoda yard faces the sea with a lotus pond in the center and a female Buddha statue. Adjacent to the pagoda is a large sandy beach where one can enjoy the cool breeze and the view of the spectacular blue sea. Duc Pagoda is located in the middle

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Ly Son island, Quang Ngai, Vietnam

of a thousand year dormant volcano called the Gieng Tien mountain. Visitors must walk more than 100 steps along the mountain to reach the pagoda. At the front is a 27 meter female Buddha statue which leads to aged temples inside the mountain. Also called “the pagoda without monks”, legend has it that the female Buddha once chose to live there and bring peace to the islanders. Visible from the pagoda is a pristine landscape running into the sea. From the top of the mountain though, visitors can also appreciate the concave green pasture that was once the volcano’s mouth.

and cooled by the sea water, the lava hardened into a stone arch, and there are many other such treasures on the island. For example, Little Islet, also called An Binh, displays unspoiled beauty. To get there, one can take a boat from Ly Son starting from 8 a.m every day.

Discovered in 2014, To Vo gate is a lava arch located close to Duc pagoda. Resulting from the release of lava

The island is home to many unique, natural local flavors stemming such as seaweed salad, garlic salad, king

Visitors should rest overnight on the Big Islet as it is connected to the national power grid. Within the city there are a myriad of other locations one should visit, including Cau Cave, Thoi Loi Peak, Mu Cu Islet, or the Memorial of Paracel soldiers.

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crab, demon fish and many more delicacies. A unique speciality is the “lonely garlic” or one-clove garlic”. Originating from an aberration in the growth process, the garlic has only one clove and is often favored by tourists as a gift for relatives and friends. However, the cloves are not cheap at approximately USD60 per kilogram.

Ly Son island is the only island in Quang Ngai province, located about 24km to the northeast of Quang Ngai coast. The island has nearly 100 historic and cultural relics. It is an attractive tourist destination thanks to its unique natural landscape.

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A glimpse of Prague

towers at both ends of the bridge, each offering a resplendent view of the goings-on throughout the day.

St. Vitus Cathedral, Prague, Czech Republic

enowned for its complex history, unique beer, and magnificent medieval architecture, Prague (Czech Republic) is filled with hundreds of tourist attractions catering to a wide range of interests. With one of the bestpreserved historic city centers in Europe, Prague’s narrow alleys open to spectacular squares, each one the site of antique houses and historic buildings just waiting to be explored. Charles Bridge is Prague’s oldest

and one of the city’s most iconic structures. Connecting Old Town with Lesser Town, the bridge was originally named the stone bridge in the 14th century before being renamed the Charles Bridge for its founder King Charles IV in 1870. The sides of the pedestrian bridge are lined with thirty statues of saints and a mélange of vendors, buskers, and beggars. The thoroughfare is seldom vacant, though it is calmer in the early moments of the morning and the late of the evening. To better take in the scene, there are

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However, the city’s most popular attraction is Prague Castle. According to the Guinness Book of World Records, it is the largest castle complex in the world with a length of 570m and average width of 128m. The interior houses some of the city’s most visited attractions as well as the assorted chambers of the Czech government, which still operates out of the fortress. A visit to Prague Castle can include views of historic cathedrals, churches, and towers as well as the splendid royal palace and gardens and, of course, St. Vitus Cathedral, one of the most recognizable landmarks in the city and in Europe. Unlike other European cities, altered and damaged through the years,

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home furnishings to produce, seafood, and other assorted consumables of Vietnamese persuasion. This makes the area an ideal place for one to enjoy a taste of their homeland while otherwise far from the familiar comforts of home.

Prague, Czech Replublic

Prague is seemingly unchanged with unrivaled ancient romantic beauty which harkens back to thousands of years of history. At the same time, the city is an important political, cultural, and commercial center in Europe as one of the largest cities on the continent. The unique charm of the city has earned it nicknames such as “the crown of the world” or “the city of a thousand spires” from the millions of visitors and locals alike. Tourists are always amazed by the city’s skyline of reddish roofs and hundreds of spires stretching along the Vltava River.

temples, all designed toward the tastes of Vietnamese. At the market one can find anything from clothes, toy, and

For Vietnamese visitors, the Sapa market is a must-see. Located at the outskirts of the city, the market was built by the Vietnamese community in Prague, a collection of over 80,000 people. The area offers restaurants, beauty shops, services, schools for all age ranges and Vietnamese styled

The historic center of Prague was recognized as a UNESCO World Heritage Site in 1992. The district serves as a major tourist attraction to visitors from far and wide and is famous for its lively entertainment as well as its rich theatrical and musical performances.

Charles bridge in Prague, Czech Republic

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Q u y nh Chi

Nghe An tourism – A helping hand A province boasting many natural tourism strengths, Nghe An is still exploring where best to focus investment to attract domestic and international tourists.

n May, the People’s Committee of Nghe An met with BIDV to discuss tourism challenges and organizing a conference on developing the province’s tourism competitiveness.

Putting strengths on the map Located in the North Central region of Vietnam, Nghe An has an 82km coastline featuring a number of beautiful beaches. The province also has a proud cultural heritage. Both have respective tourism strengths. Despite these advantages, Nghe An is still far behind many other tourism destinations in Vietnam.

Based on figures from Nghe An’s Department of Culture, Sports and Tourism, from 2011 to 2014 the number of tourists to Nghe An grew by an average 6.7 percent per annum. However, the number of foreign tourists in 2014 hit only 64,550, falling

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25 percent compared to 2010.

New solutions Located between Thanh Hoa and Ha Tinh, two areas witnessing strong development, Nghe An is viewed as a

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Bai Lu Resort, Nghi Loc District, Nghe An Province

strong base for North Central region tourism. According to deputy director of Nghe An’s Department of Culture, Sports and Tourism Nguyen Manh Cuong, the province is working to make Vinh City a tourism hub as well as urbanizing areas of Cua Lo and other attractions to make them more popular among both domestic and international tourists. Nghe An will also focus on developing resorts, cultural and historic tourist attractions, and natural attractions such as Pu Hoat national forest. Of particular attention for preservation and promotion are aspects of rich traditional culture from the region such as the Vi and Giam folk songs of Nghe Tinh.

Partners in success

Taking a strong interest in promoting Nghe An’s strengths and treasures, Ms. Dinh Thi Le Thanh, vice chairwoman of the Nghe An People’s Committee proposed that BIDV would support the province in developing a tourism plan towards 2030 with a vision to 2050. She also suggested the bank aid in developing a market strategy towards 2030. The committee suggested BIDV act as a connector between the province and businesses to support Nghe An in holding tourism promotion activities in South Korea, China and Japan. It is expected that in July, Nghe An and BIDV will organize a joint seminar on promoting and maximizing Nghe An’s tourism potential. ` But according to BIDV, Nghe An’s priority should not be on calling for

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investment, but rather increasing the competitiveness of its current tourism products and services. BIDV advised the province to organize a seminar on linking heritage sites in the North Central and South Central regions to capitalize on UNESCO sites in Quang Binh, Hue, Hoi An and Quang Nam. They also advised Nghe An to develop a strategy to attract investment and define important tourism destinations within the province. According to Chairman of BIDV Mr. Tran Bac Ha, the bank will support Nghe An in holding its first conference on investment and tourism promotion but he added that the province needs to clarify its tourism development strategy to increase competitiveness and contribute to overall development.

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Tu e Minh

Boosting

Quang Binh tourism

Son Doong Cave, Quang Binh, Vietnam

A province of potential in central Vietnam, Quang Binh boasts its beauty, advantages and incentives to attract investors and visitors. Great potential A province of potential, Quang Binh is exquisitely situated on the eastwest corridor with access to an airport, seaport, roads, railways, and waterways. The opportunities for growth are numerous in vital sectors such as tourism, forestry, mining, building material manufacturing, electrical energy, marine production, economic zones (namely Hon La

economic zone and Cha Lo border gate economic zone) and industrial parks. Accordingly, Quang Binh is thought to be one of the provinces with the best business and investment environment in Vietnam. The region is now an alluring destination for local and foreign investors, which makes sense given its remarkable natural beauty including a national park and UNESCO world heritage site Phong Nha-Ke Bang with incredible caves including Phong Nha-Tien Son and Thien Duong, as well as magnificent beaches such as Da Nhay and Bao Ninh. Vung Chua-Dao Yen is especially revered for its wild beauty, clean

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beaches, and fantastic geographical orientation. It is also the resting place of General Vo Nguyen Giap, known as the elder brother of the peopleâ&#x20AC;&#x2122;s army of Vietnam, which has been a strong draw for both local and foreign tourists.

A boost to tourism To promote tourism in Quang Binh, BIDV worked with the province to hold the first conference on tourism investment and promotion. The event was attended by Deputy Prime Minister Nguyen Xuan Phuc, a member of Politburo and over 200 representatives from governmental ministries and agencies, international organizations,

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Phong Nha - Ke Bang National Park, Quang Binh, Vietnam - A World Natural Heritage

investors, and domestic as well as international travel companies, all with an eye towards doing business and developing tourism in Quang Binh. The province granted investment certificates and signed investment cooperation agreements for 23 projects totaling USD931 million. With attention from numerous investors and strong promotion of the tourism industry, the number of visits to Quang Binh in 2014 reached 2.8 million, up 129 percent year-on-year. The first three months of this year saw 56,000 visits to the province, including 3,200 from abroad.

Conference on Investment and Tourism Promotion in Quang Binh was scheduled for July 17 this year in order to introduce the potential, advantages and incentives for investment in the province. This second conference will be co-held by BIDV and the Peopleâ&#x20AC;&#x2122;s Committee of Quang Binh province. BIDVâ&#x20AC;&#x2122;s role includes that of initiator and co-organizer, and the main force

calling for investment in Quang Binh, as well as sponsor and project funder. Nguyen Xuan Quang, Vice Chairman of Quang Binh province, said the tourism investment and promotion conferences would be an important boost to Quang Binh in developing its tourism industry on a sustainable basis and realizing the potential of this industry.

Under the cooperation between the People's Committee of Quang Binh province and U.S.-based ABC Television Network, ABC broadcasted the beauty of Son Doong cave live on its channel Good Morning America to more than 6 million subscribers and some 60 million viewers on the internet on May 13. This was a perfect opportunity for Quang Binh to promote itself around the world. It is predicted that the number of local and foreign tourists to Quang Binh will rise sharply in the coming time.

On the heels of this success, the

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CSR

CSR news More ambulances for provincial hospitals

Merit for CSR in the Central Highlands n In mid-May, BIDV received recognition from the region’s steering committee for investing in socio-economic development and contributing to the national defense and security of the Central Highlands. In the three conferences to promote the region from 2009 until now, BIDV invested trillions of dong in the region. This investment has helped develop the region’s socio-economy as well improve the local standard of living.

n Continuing the history of generosity, BIDV Ninh Binh branch granted Ninh Binh General Hospital as well as Ninh Binh Maternity & Children’s hospital two ambulances worth a total USD64,000. This is just one of the many social welfare activities from BIDV Ninh Binh this year. The aim is simple: to solve difficulties in the emergency transportation of patients, improve the hospital’s health care system, provide better protection of, and care for, the local people of Ninh Binh.

Ambulance for Vinh Long General Hospital n To better provide care and ensure wellbeing of the community, BIDV’s Vinh Long branch has granted Vinh Long General Hospital a new ambulance valued at USD32,000. The hospital has gained much notoriety for its care and treatment of people’s health along with accomplishing a significant amount of science and research. However, the hospital still faces challenges in human resources, technical infrastructure, and emergency transportation vehicles. Accordingly, the ambulance will contribute significantly to the hospital’s quality of service.

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