BIDV Review 08 - September 2015 by BIDV Review

A Newsletter of Bank for Investment and Development of Vietnam JSC

BIDV awarded

House of the year -month snapshot

Issue No. 8

Sep 2015

Binh Ba Island, Khanh Hoa province

ABOUT BIDV Established in 1957, BIDV has grown to become one of the leading commercial banks in Vietnam. The bank boasts subsidiaries in finance, banking, securities and insurance. BIDV has expanded its business to the international market, with investment in Laos, Cambodia, Myanmar, the Czech Republic, and Russia. By the end of June 2015, BIDVâ&#x20AC;&#x2122;s total assets were close to USD35 billion. BIDV stock (BID) is listed on the Ho Chi Minh City Stock Exchange (HOSE). For more information, please visit www.bidv.com.vn

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

BIDV Tower, 35 Hang Voi str., Hoan Kiem dist., Hanoi, Vietnam Tel: (+84) 4 22200484 Fax: (+84) 4 22225316 Email: bidvreview@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

Dear readers, eptember has been another busy month for BIDV, with a series of commemoration ceremonies, award events as well as the siging of new cooperation agreements. In Cambodia, BIDV held an appreciation ceremony to mark its twentieth anniversary of transforming into a commercial bank as well as the sixth anniversary of the formation of its subsidiary – the Bank for Investment and Development of Cambodia Plc (BIDC). In Laos, in addition to an appreciation ceremony in Vientiane, BIDV financed USD161 million to the kali salt mining project in Khammouane Province, which aims to reduce the need for Vietnam to import kali fertilizer as well as solving the issue of shortages of industrial salt and high quality salt in the country BIDV also financed the construction of Dongkasen school inKhammouane province,hoping to contribute towards a brighter future for local students, with a knock-on effect of raising educational standards in Laos. This issue also gives a snapshot of BIDV’s business performance in the

first 9 months and goals for the last 3 months of the year as well as plans set for the 2016-2018 period. September also saw a host of awards and accolades given to BIDV and its subsidiaries. BIDV remains the only Vietnamese bank to receive prestigious awards from leading regional magazines such as Asia Risk and Asiamoney. Additionally, the bank was honoured with the award for Best Social Media Team by the Chief Marketing Officer Asia and other accolades. During this month, BIDV and its staff have contributed billions of dong as well as many educational resources to facilitate improved education and to better equip schools in many provinces, aiming to help Vietnamese children all over the country to receive a better education. Last but not least, this issue will give you a taste of the traditional mid-Autumn festival in Vietnam, as well as the stunning terraced rice fields in Mu Cang Chai - one of the most special sitesfor visitors in Northwestern Vietnam.

Da Lat City, Vietnam

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contents

International investment 4. Kali salt project: A landmark in Vietnam-Laos relations

5. Raising educational standards 6. Encouraging enterprises 8. Recognizing achievements

BIDV highlights 12. Sprinting to success 14. Transport infrastructure headway

16. Tourism potential of coastal region 18. AML profiling enables tighter security 20. Basel II boosts BIDV

9. Network expansion in South Laos 10. Cambodian connections 11. Promoting ties between Vietnam and Russia 11. Vietnam-Taiwan cooperation conference

Partners 21. Commodity swap with VALEXIM 22. Phu Quoc â&#x20AC;&#x201C; an island with great potential 24. BIDV, DIV ink agreement

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contents

Market movements 25. Economic and institutional strength improvements 26. ADB lifts Vietnam growth 27. Various positive GDP forecast

37. Positive ratings for BIC 38. Pioneering in social media Products & Services 39. Lucky companion 39. BIDV online incentives 40. Fee-waiver and cash bonuses 40. VND12 trillion home loan package 41. MUFC merchandise tempts fans Lifestyle 42. Traditional mooncakes with a modern twist

28. FTA reduces barriers for trade 30. September banking review 31. Slow reform hampering benefits of integration Achivements & awards 32. BIDV wins Asiamoney award for 3rd consecutive year

44. The theatre of rice

33. House of the year four years running

CSR 46. A bright future for rural students

34. Ticking all the boxes 36. Best bond and Best equity house

48. Young generation integration knowledge course

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international investment

ho a ng oanh

Kali salt project: A landmark in Vietnam-Laos relations A ceremony hosted by Vietnam National Chemical Group (Vinachem) to commemorate a kali salt mining project in Khammouane Province, Laos was held in September. BIDV joined and financed USD161m to the project.

r. Nguyen Tan Dung, Prime Minister of Vietnam; Thongsing Thammavong, Politburo member, Prime Minister of the Lao P.D.R.; leaders of the Government, ministries, agencies of both countries, leaders of Khammouane Province as well as representatives from businesses and Vietnamese investors in Laos attended the event. Vinachem received approval from the Government of Laos to develop the 10km2 mining project in Khammouane province. The project is expected to be completed within five years and begin extraction in 2020, with an expected annual capacity of 320,000 tons. A total investment of USD522 million has been ploughed into the project. Of this, Vinachem has provided USD105 million. Banks arranging capital to

Vietnamese PM Nguyen Tan Dung and his Laotian counterpart Thongsing Thammavong press the button at the ground-breaking ceremony

support the project include Vietnam Development Bank (VDB), contributing USD113 million; BIDV, financing USD161 million, with Vietinbank providing USD143 million. This cofinancing of USD417 million by some of the largest banks in Vietnam accounting for 80 percent of the total project investment value - confirms Vietnamâ&#x20AC;&#x2122;s commitment to the project. At the ceremony, BIDV and Vietinbank signed credit agreements with Vinachem to finance the project, in the

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presence of the Prime Ministers of both Laos and Vietnam. A representative of the BIDV leadership commented, â&#x20AC;&#x153;The inclusion of the kali mining project in the cooperation agreement between the two governments is of great importance. The project will provide kali fertilisers for both Vietnam and Laos - currently Vietnam has to import 100 percent of its kali fertilisers. With an annual capacity of 320,000 tons that is expected to increase to one million

international investment

P han A n h

Mr. Nguyen Tan Dung, Prime Minister of Vietnam and Mr. Somsavat Lengsavad, Deputy Prime Minister of Laos (center) at the ground-breaking ceremony

tons by 2020, Vietnam and Laos will significantly reduce their need for import of kali fertiliser, resulting in significant saving of foreign currency for both countries. The project is also expected to solve the issue of shortages of industrial salt and high quality salt in Vietnam. By financing the project, BIDV continues to deliver its strong commitment to the socio-economic development of Laosâ&#x20AC;?.

BIDV was the first Vietnamese commercial bank to gain presence in Laos, partnering with Banque Pour Le Commerce Exterieur Lao Public (BCEL) in 1999 to establish Lao-Viet Joint Venture Bank (LVB). BIDV has become a familiar brand for Lao people, with three commercial presences including Lao-Viet Joint Venture Bank (LVB), Lao-Viet Insurance Company (LVI), and BIDV representative office. Since 2009, BIDV has expanded its operations into the field of insurance and securities, aiming to provide end-toend financial services and products to the Lao market. As the president of the Association of Vietnamese Investors in Laos (AVIL), BIDV effectively coordinates and promotes investment and trade between Vietnam and Laos.

Raising educational standards

n September this year BIDV held a groundbreaking ceremony for the construction of Dongkasen school in Khammouane Province, Laos. Mr. Nguyen Tan Dung, Prime Minister of Vietnam; Mr. Somsavat Lengsavad, Deputy Prime Minister of Laos as well as leaders of ministries and agencies of the two countries attended. Khamnouane Province is located in central Laos and covers an area of 16,315 km2. Despite the Lao Government having invested heavily in the construction of infrastructure, education facilities here remain limited. Khamnouane Province has advocated standardising primary education across the locality. Many overseas Vietnamese people currently live and work in Thakhek, the provincial capital. The Dongkasen Primary School construction project is costing a total of USD200,000, and being built in accordance with standards set by the Laos Ministry of Education and Sports for primary level. Upon completion,

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the school will consist of six classrooms, accommodating thirty students per class, with each having an area of 50-60 m2. The total floor area of the building will be in the region of 250-300 m2. Addressing the ceremony, Mr. Tran Luc Lang, senior executive vice president of BIDV, said, â&#x20AC;&#x153;The Dongkasen school will create better teaching and learning conditions for both teachers and students, contributing to raising educational standards and literacy levels in Laos. The project also holds significance in demonstrating the close relationship between the two nations.

BIDV has funded the construction of many schools in Laos, including Nguyen Du school in Vientiane, Sonnoua school in Houaphan Province and Ban Don school in Savannaket Province. The bank also donated thousands of computers to schools in Laos as well as providing scholarships to Lao students.

international investment

Co ng Chung

Encouraging enterprises During a recent visit to the Lao People's Democratic Republic, Prime Minister Nguyen Tan Dung met with Vietnamese enterprise owners in Laos to provide them with support, guidance and encouragement. Significant contribution In recent years, with the support of the Association of Vietnamese Investors in Laos (AVIL), Vietnameseowned enterprises and the Vietnamese community in Laos have achieved positive outcomes, significantly contributing to the socio-economic development of Laos as well as the solidarity between the two countries. According to the Vietnamese Ministry of Planning and Investment, by the end of 2014, 253 Vietnamese projects held licenses to invest in Laos, with total FDI from Vietnam reaching more than USD5.1 billion. In the first eight months of this year, eight new Vietnamese projects were granted licenses, resulting in an additional FDI of USD95.2 million. Vietnam continues to rank second amongst foreign investors in Laos and Laos currently attracts more of Vietnam’s FDI than any other country. In 2014, Vietnam’s investment in Laos contributed USD200 million to the State revenue of Laos. This figure

Prime Minister Nguyen Tan Dung met with Vietnamese enterprise owners in Laos

is expected to reach approximately USD240-260 million in 2015, with more than 30,000 new jobs created. Based on figures from Vietnam Customs, the total of the two countries’ bilateral trade turnover in 2014 reached close to USD1.3 billion. In the first seven months of this year, the bilateral trade turnover reaped USD750 million, in which Vietnam exports generated USD353 million and imports from Laos were worth USD397 million. The tourism relationship also flourished. In 2014, visits between the two countries numbered nearly 1.24 million. In the first seven months of this year, there were 600,000 Vietnamese

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visits to Laos, while the number of Lao visits to Vietnam was 54,987. Visit numbers between the countries are expected to reach 1.25 million this year. According to Mr. Tran Bac Ha, Chairman of BIDV and AVIL, these economic cooperation results have confirmed the active role that AVIL has played in promoting investment. Most importantly, AVIL has created a communication channel in which the association frequently reported to the governments of both countries in an attempt to tackle the difficulties faced by Vietnamese enterprises, enabling solutions to be provided promptly as well as offering suggestions for enhancing the economic cooperation

international investment

Two-way tourism visits are planned to hit 1.5 million and 1.8 million in 2016 and 2017, respectively

between Vietnam and Laos.

Overcoming challenges During the meeting Prime Minister Nguyen Tan Dung praised the achievements of AVIL. Furthermore, he remarked upon the efforts of Vietnamese enterprises in overcoming challenges faced when promoting investment cooperation in Laos, enabling Vietnam to become the second largest investor in Laos. The Prime Minister expanded upon the difficulties many enterprises face when operating in Laos. He cited the main risk as related to exchange rates and interest rates. A shortage of banking capital also made some Vietnamese enterprises reduce both domestic and international investments, meaning that some projects lagged behind. The Prime Minister also remarked upon how some enterprises had applied for

project licenses in Laos, but had then sold them on to other companies. This has negatively affected upon the image and prestige of both Vietnam and Vietnamese enterprises. According to the Prime Minister, the global economy in general and the Vietnam-Lao economies in particular are thriving, creating conditions for enterprises to enhance investment and implement licensed projects. During a recent government meeting, the Prime Ministers of both countries discussed in detail the projects invested in by Vietnamese enterprises and looked at solutions to overcoming challenges for Vietnamese investors in Laos. The Prime Minister confirmed that the Vietnamese Government, ministries and relevant agencies always supported and created favorable conditions for Vietnamese enterprises to invest and conduct business in Laos. In addition, Vietnam will closely

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coordinate with the Lao Government and ministries to reduce barriers in cooperation between the two countries, bringing the Vietnam-Laos investment cooperation to new height, and establishing friendly and cooperative relations between the two countries.

Vietnamâ&#x20AC;&#x2122;s FDI to Laos in 2016 is expected to reach USD5.6 billion, with the disbursement amount at USD2.2 billion (39 percent of the total registered). In 2017, FDI from Vietnam is set to reach USD6 billion, with the disbursed amount at USD2.5 billion (42 percent of the total registered). Bilateral import-export turnover is to reach USD2.5 billion in 2016, USD3 billion in 2017 and USD5 billion in 2020. Two-way tourism visits are planned to hit 1.5 million and 1.8 million in 2016 and 2017, respectively (the annual average growth is 20 percent per year). Source: AVIL's report

international investment

Le Champa

Recognising

achievements A

s part of the celebrations commemorating the twentieth anniversary of transforming into a commercial bank and integrating into the global financial market, BIDV held an appreciation ceremony in the Laos capital Vientiane. Attending the ceremony were Lao Deputy Prime Minister Bunpon Buttanavong as well as related agencies, local authorities and ministry representatives, Vietnamese ambassador to Laos and valued customers of BIDV who have longstanding cooperation with the bank. The Lao Deputy Prime Minister affirmed that the People's Democratic Republic of Laos highly appreciated the contributions that both BIDV and LaoVietBank have made to Laoâ&#x20AC;&#x2122;s socioeconomic development as well as to the relationship between the two countries. In particular, the establishment of LaoVietBank in cooperation with Banque Pour Le Commerce Exterieur Lao Public (BCEL) has helped foster trade and investment relationships between Vietnam and Laos. The appreciation ceremony also served to commemorate sixteen years of operation of LaoVietBank. This has proved to be a successful model of economic cooperation between Vietnam and Laos and a milestone for the bilateral relationship of the two countries. LaoVietBank can be seen as the financial bridge helping to ease transactions. Following sixteen years of development,

LaoVietBank has been operating in Laos for 16 years

LaoVietBank has progressed in terms of total assets, network and branding in the Laos market. The bank has played an important role in bilateral payment between Vietnam and Laos in providing credit and guarantee products for corporate and individual Lao customers as well as Vietnamese investors in Laos. LaoVietBank became the pioneer bank in providing financial and banking solutions, consultancy services and investment promotion for Vietnamese enterprises investing in Laos. The bank also actively supports economic entities in trade and commerce relationships between the two countries. As well as business transactions, BIDV can be seen as the leading bank contributing to social security in Laos.

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Through both LaoVietBank and BIDVâ&#x20AC;&#x2122;s other commercial presences in the country, support for disadvantaged local people has been provided in the form of food, clothing, education and medical aid. Social projects supported by the bank included the provision of LAK202 million for disadvantaged people in Sainyabuli province; supporting the information technology system of the Lao Government Office; and construction projects providing new schools in Laos. BIDV has made a significant contribution to the development and international integration of a country with deep cultural traditions, including the gorgeous Lam Vong dances.

international investment

An Nam

Network expansion in South Laos

ao-Viet Insurance Company (LVI) commemorated the opening of its branch in Champasak in Southern Laos with a ceremony held on August 1. Mr. Dao Van Hieu, Vietnam Consulate General in Champasak, Mr. Nguyen Nam Cuong, Vietnam Consulate General in Savannakhet, and representatives of Banque Pour Le Commerce Exterieur Lao Public (BCEL), Lao-Viet Joint Venture Bank (LVB), Dao Huong Group and Lao Airlines were in attendance. At the ceremony Mr. Doan Van Hieu commented upon the outstanding performance of LVI in recent years. LVI confirmed its position in the insurance market as one of the two insurance companies holding the largest market share. The success of LVI has contributed to the growth of the Vietnamese business community in

Laos, thereby motivating Vietnamese businesses to continue research of and investment in this market. According to Mr. Pham Duc Hau, CEO of LVI, LVI is currently one of the largest and most effective insurance companies in Laos. In the first seven months of 2015, the total premium income of LVI reached USD7.124 million, an increase of six percent over the same period in 2014. Profit before tax stood at USD1.377 million, up 37 percent. In 2015, LVI aims to reach USD14.5 million in premium revenue, an increase of 26 percent from last year, and USD1.6 million in profit before tax, an increase of 17 percent. LVI is the first insurance company to open a branch in Laos. The opening of this branch is expected to lay the foundations for LVI to boost both its business and customer service,

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providing customers with convenient and timely services. Also at the ceremony, LVI Southern branch signed insurance contracts with its first customers. They included Dao Huong Group, for a coffee plant asset insurance contract worth USD115 million, Douangdy Construction Bridge and Road Co, Ltd., with a road construction insurance contract worth USD16 million and a business cooperation contract between LVI Southern branch and SHB Champasak.

Lao-Viet Insurance Company (LVI) began operating on June 21, 2008 with its founding members including the Banque Pour Le Commerce Exterieur Lao Public (BCEL), Lao-Viet Joint Venture Bank (LVB) and BIDV Insurance Corporation (BIC).

international investment

Tr u ng Kie n

Cambodian connections BIDV recently held an appreciation ceremony to thank its customers in Cambodia. The event marked the twentieth anniversary since transforming into a commercial bank and the sixth anniversary of Bank for Investment and Development of Cambodia Plc (BIDC) – a subsidiary of BIDV in Cambodia.

rs. Men Sam An, Deputy Prime Minister of the Royal Government of Cambodia and other valued guests and their partners, as well as BIDC customers attended the ceremony. The appreciation ceremony reflected the traditional culture of Vietnamese people in general and BIDV in particular. The event was also organised in part as a thank you to the King of Cambodia, Cambodia’s Royal Government, ministries and related agencies, financial institutions, organisations and enterprises cooperating with BIDV over years. BIDV was established in 1957 as a subsidised bank. In 1995, BIDV converted into a commercial bank and developed to become one of the three largest banks in Vietnam. Since becoming a commercial bank, BIDV has actively sought foreign

Phnom Penh - Cambodia capital - The city dubbed as the pearl of Asia

capital, expanded its business operations and served the key development projects of the country. In its twenty years of integrating into the global market, BIDV has focused attention on the Cambodian market, actively looking for opportunities to establish a commercial presence in Cambodia. In 2009, the bank inaugurated BIDC - its first subsidiary in the country. BIDC’s commissions include providing capital, particularly long-term, to meet the demands of Vietnamese enterprises investing in Cambodia, connecting the Vietnamese and Cambodian markets as well as promoting the image and prestige of Vietnamese enterprises in Cambodia.

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From BIDC’s establishment up until the end of June, 2015, BIDC’s total assets have reached USD620 million, a 3.2-fold increase; total outstanding loans reached USD500 million, a 3.5-fold increase; deposits hit USD220 million, 2.3 times higher than in 2009. The bank reaped a pre-tax profit of over USD360 million. Along with its headquarters in the Cambodian capital Phnom Penh, BIDC has opened a further eight branches and a transaction point in this key area that connects the economies of the two countries. The bank has implemented a modern IT system as well as a transparent financial system which meets the safety and protection criteria of the National Bank of Cambodia (NBC) and is in line with that of international practice.

international investment

Chi Chi

Promoting ties between Vietnam and Russia

s the leading Vietnamese bank penetrating into the Russian market, BIDV has continuously supported the enterprises of both countries, contributing to the friendly relationship between Vietnam and Russia. Next month, the bank will finance a series of activities in Russia, aimed at promoting trade cooperation between the two nations. Specifically, BIDV will fund a high quality goods exhibition, which will take place in November this year. In addition, the bank will co-sponsor a seminar on trade development and bilateral payment between Vietnam

and Russia, a seminar for global Vietnam entrepreneurs as well as other related activities. In 2014, BIDV established a working group in Russia. The group has helped to facilitate investment and trade between Vietnam and Russia. In May, 2015, the Eurasian Economic Union (EEU) signed a free trade agreement (FTA) with Vietnam, the first such deal to be struck by the Moscow-led body with a third party. The EEU includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan.

VietnamTaiwan cooperation conference

n November BIDV will coordinate with ministries and partners of both Vietnam and Taiwan to hold a conference on economic investment, trade and tourism cooperation between Vietnam and Taiwan. The conference will introduce Vietnamâ&#x20AC;&#x2122;s policies and mechanisms for attracting investment into Vietnam. In addition, the conference will describe opportunities brought by FTAs and TPP for foreign investors to invest in Vietnam. The conference will also provide a chance for enterprises to meet, share information and knowledge and seek cooperation opportunities, contributing to promoting the relationship between Vietnam and Taiwan. Enterprises can participate in a Q&A session with ministry and industry leaders to address their concerns relating to investment, trade and tourism cooperation.

Moscow City, Russia

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BIDV Highlights

Ngu y en Tran

BIDV business in Q4:

Sprinting to success At a meeting to review business performance over the first nine months of the year and set goals for the 2016 - 2018 period held on September 27, BIDV outlined ways to successfully complete its business plan for 2015. Positive figures Although the domestic and world markets are volatile and remain difficult, it was reported at the meeting that during the first nine months of this year BIDV has remained stable and operated safely with good indicators and growth. BIDV Chairman Tran Bac Ha speaks at the 9-month review meeting

The bankâ&#x20AC;&#x2122;s total assets increased pleasingly, leading the market with the balance as of September 25 reaching over VND776 trillion (USD35 billion), up 13 percent from 2014. Deposit growth exceeded the third quarter plan, which had been estimated at VND620 trillion (USD28 billion) at the end of September 2015, an increase of 20 percent year to date and up 37 percent from the last year. Credit saw good growth, with credit

quality being strictly controlled, focusing on the retail and priority sector in accordance with the direction of the Government and the State Bank. Outstanding loans are estimated to reach VND570 trillion (USD26 billion) by September 30 this year, a growth rate of 16.3 percent, and an increase of 36 percent from the same period last year, exceeding the third quarter plan. Non-performing loan ratio was 2.71 percent, and is set to reduce to below 2 percent in the fourth quarter.

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Net service income saw positive growth and was expected to increase 27 percent year on year by the end of September. In the first nine months of the year, BIDVâ&#x20AC;&#x2122;s profit before tax met 70 percent of its plan set for the year. Mr. Tran Bac Ha, BIDV Chairman, commented that business in the first nine months was stable and safe across all operations, particularly credit, from the credit control, evaluation, growth and problem debt

BIDV Highlights

BIDV has remained stable and operated safely with good indicators and growth in the first 9 months

handling, including bad debt. This has been one of the most successful years for BIDV in terms of management and control of credit quality. The bank’s liquidity is ensured at all times.

Goal for the coming 90 days Based on the business situation and performance, the BIDV Chairman gave detailed directions regarding the implementation of the 2015 plan. The bank’s business operations in the last three months of this year should focus on three main areas: first, maintaining growth and a leading position in terms of scale of operation; second, actively improving credit quality and business performance through boosting net interest margins, strengthening the non-interest incomes (net service income, off-balance sheet) and reducing operating costs; and finally, focusing on handling bad debt by strictly controlling credit quality.

year, BIDV sets the credit outstanding in the fourth quarter to increase by VND33 trillion (USD1.5 billion) to reach a final total of VND603 trillion (USD27.4 billion) at year-end, up 23 percent; with NPL ratio below 2.5 percent, expected at below 2 percent; deposits in Q4 to increase by VND16 trillion (USD727.2 million), reaching VND636 trillion (USD29 billion), an increase of 23.2 percent; net service income in Q4 to increase 36%, fulfilling the year’s plan. The bank is determined to hit the pre-tax profit target and make sufficient provision in accordance with regulations. For the 2016 - 2018 period, BIDV will develop synchronous short, medium and long-term plans, maintaining its position as the market leader with breakthrough growth in terms of size, market share, as well as better risk control and improved credit quality, ensuring safe and sustainable operation.

Adhering to the business plan for the

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BIDV’s efforts have been recognised by global rating firms Moody’s and Standard and Poor’s (S&P). In July 2015 Moody's affirmed a stable outlook for BIDV. The bank financial strength ratings (BFSRs) map to a baseline credit assessment of caa1 for the bank. The rating firm also upgraded BIDV’s local currency long-term deposit rating to B1 from B2 and the foreign currency long-term deposit rating to B2 from B3. These are the highest ratings amongst Vietnamese banks rated by Moody’s. In August 2015, S&P assigned Bank Stand-alone Credit Profile for BIDV at B+, with stable outlook. Recently BIDV outpeered local banks and foreign bank branches operating in Vietnam to win prestigious awards from Asia Risk magazine, and Asiamoney magazine.

BIDV Highlights

Oa nh Nguyen

Transport infrastructure

headway BIDV and the Vietnam Institute of Economics co-hosted a workshop on September 7 this year at the Grand Plaza Hanoi with the theme “Capital for Transport Infrastructure Development: Needs and Solutions”, in order to analyse and evaluate Vietnam’s transport infrastructure issues and propose solutions.

ore than 200 researchers from state and government agencies, infrastructure development businesses and international organisations as well as media and policy makers attended.

Capital requirements Transport infrastructure - the lifeblood of an economy - determines the prosperity of every country. In

the past, transport infrastructure development was assigned to the government. The institutional reforms in recent years have laid the foundation for the private sector to participate in transport infrastructure development though the scope and level of participation remains limited. Associate Professor, Dr. Tran Dinh Thien, director of the Vietnam Institute of Economics, said, “Vietnam needs a modern transport infrastructure to ensure the successful realisation of the industrialisation and modernisation strategy. The development of industrial centers requires a modern transport infrastructure to support logistics and to increase competitiveness. Therefore, a seamless transport infrastructure is needed to connect with the economies in the GMS and ASEAN region as well as industrial centers and world markets. However, this requires a huge amount of capital. Vietnam along with the world economies has been restructuring since the economic crisis and has moved to

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a new level of development, leading to a downward trend in external capital for infrastructure development in general and transport infrastructure in particular.”

Private sector involvement According to Mr. Nguyen Danh Huy, Head of Public Private Partnership (PPP) Project Management Unit (under the Ministry of Transport), in the 2016-2020 period, the capital required for traffic will be VND1,015 trillion, however the current budget only meets about 28 percent of this. A report released by the Ministry of Planning and Investment revealed that the future budget can only meet around seven percent (roughly VND66 trillion) of the capital demand in the public investment plan for the 2016 – 2020 period. Therefore, the transport infrastructure investment under the form of PPP is of great significance to countries which have limited budgets and large public debt like Vietnam.

BIDV Highlights

Transport infrastructure investment under the form of PPP is of great significance to countries which have limited budgets and large public debt

BIDV Chairman Mr. Tran Bac Ha commented that the need to develop a modern and synchronous transport network that meets the economic development requirements in the coming time will rise, going beyond the budget and ODA capacity. Given the limited financing available from budget and budget-related sources (ODA, government bonds), as well as the requirements for public debt risk management and public investment efficiency, breakthroughs in institutional policies involving both the local and foreign private sector in developing transport infrastructure in Vietnam should be made. The pressure of the rising demand for transport infrastructure investment and development also poses challenges for the combined use of state capital and capital mobilised from the private sector. Many participants at the workshop said that PPP law should be issued, and that a legal framework should be made for the private sector

to access and use ODA for transport infrastructure development. In addition, transport infrastructure planning in association with the industry and administrative planning should be considered.

Providing solutions BIDV proposed some strategic solutions to the issue of limited capital being available to develop transport infrastructure. A mechanism should be developed for local and foreign financial investment funds and the State Capital Investment Corporation (SCIC) to invest capital in infrastructure development projects. The establishment of a financial company or assigning a local financial institution to act as a focal point to mobilise funds from various sources to provide loans to transport infrastructure projects should also be considered. The bank also proposed diversifying channels for mobilising long-term capital

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dedicated to transport infrastructure development, gradually reducing dependence on credit institutions. Policies should also be in place to attract foreign investors to invest in transport infrastructure projects.

BIDV is not only pioneering in providing credit for transport infrastructure projects but is also actively involved in providing consultancy as well as comprehensive and long-term financial strategies for transport development. In the immediate future, BIDV will provide VND40,000 billion to finance socialised road transport projects, particularly projects connecting key economic regions with the two major cities of Hanoi and Ho Chi Minh city. In terms of international transport, BIDV will continue to finance roads to Laos, thus serving commodity trade among countries in the region.

BIDV Highlights

ho a i linh

Tourism potential of coastal region

The Southern and Central regions of Vietnam hold great potential for tourism development, but have yet to be developed to their full economic advantage. To address this, an international tourism conference aimed at stimulating development of the tourism industry in these regions was held in September by BIDV in Binh Thuan Province.

development was essential. “This is an opportunity for neighboring provinces, their enterprises and international friends to understand Binh Thuan and support the province’s tourism to develop quickly and sustainably in the coming time.” According to Mr. Tran Du Lich, head of the consultancy group for the Central Coastal Region Development and Cooperation, forming regional connections in tourism is necessary to increase competitiveness in ASEAN. The coastal region holds many advantages for developing tourism and can be connected with ecotourism, cultural tourism and island tourism. In addition, greater cooperation between regions and nations is required for the effective exploitation of resources and for structuring the tourism industry.

Domestic and foreign expers took part in the tourism conference

he conference was entitled Promoting Tourism Linkage between the Central Coastal Region and the Southeastern Region, the Central Highlands, and Provinces from Southern Laos and Northeastern Cambodia. Leaders of ministries of Culture, Sports and Tourism of Vietnam, Laos and Cambodia, Binh Thuan Province authorities as well as more than three hundred domestic and international delegates attended.

Forming links The conference analysed and evaluated the potential of tourism development in the area, devising policies and mapping out products for different tourism sectors and establishing links between the regions and neighbouring countries. The chairman of Binh Thuan People’s Committee confirmed that in the context of integration, international connection for economic and tourism

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Since 1995, Binh Thuan has attracted 393 tourism projects with total registered capital of VND55,300 billion (~USD2.5 billion). The province now boasts 290 tourist hotels comprising a total of 11,000 rooms. There are also more than 500 apartments and villas available for tourists. Tourism services have been developing rapidly, including sports and entertainment services, windsurfing, kite surfing, scuba diving, golf and auxiliary services, meeting the needs of a diverse range of travelers and tourists.

BIDV Highlights

Ke Ga island- Binh Thuan province

Transportation infrastructure An effective transportation system is vital to construct a successful tourism linkage between countries. Mr. So Visothy, Deputy Minister of Tourism of Cambodia said that one of the solutions for developing Cambodian tourism is promoting tourism links between the three countries of Cambodia, Laos and Vietnam. The cooperation includes creating linked products, constructing tourism websites, holding tourism promotion events, constructing an international standard transport system, developing tours encompassing travel through the three countries, and opening bilateral and multilateral border gates. Mr. Chaleune Warinthrasak, Lao Deputy Minister of Information, Culture and Tourism emphasised the importance for Laos of creating tourism links with Cambodia and Vietnam. The three countries should discuss tourism development in

their border provinces and prioritise improving, upgrading and maintaining the road system. More specifically, Mr. Pham Trung Luong of the Tourism Development Research Institute said that transport systems connecting Vietnamâ&#x20AC;&#x2122;s South Central Coast, Southeast Region, and the Central Highlands to southern Laos and northeast Cambodia must be upgraded.

Remaining tasks As well as improvements to the transportation system, highlighting the potential advantages of each area is necessary to create effective links in the tourism industry. Mr. Tran Dinh Thien, head of the Vietnam Institute of Economics said that we should recognise the unique differences between areas, for example between forest and ocean areas, rural and urban areas, as well as between cultures and nations. In this way, the potential advantages for tourism for each area can be discovered and utilised effectively.

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In addition, the mobilisation of capital for sustainable tourism development is of importance. According to Ms. Nguyen Thi Kim Thanh, BIDV board member, tourism development is a priority area for banks issuing loans. Local authorities should create the conditions for credit institutions to expand their business networks to attract capital from local residents, thus making funds available to meet the demands for tourism development. Furthermore, capital sought from individuals is of importance, however, to attract this source, reforms in administrative procedures are required.

With eyes on Vietnamese socioeconomic development in general and central coastal region tourism in particular, BIDV has played an active role in consulting on the direction of central coastal region tourism development, providing development funds for the region, promoting investment and contributing to social security.

BIDV Highlights

Tha nh Mai

AML Profiling enables

tighter security The AML profiling system officially went live at BIDV on August 14 this year. This day held great significance for all members of the project, referred to as the Anti-Money Laundering Project, nearly one year since work aimed at implementing the project began. An advanced, modern and flexible system AML Profiling is provided by Tonbeller - the world's leading solution provider in the field of compliance and risk control. Incorporating risk management and crime prevention through analysis and reporting, Tonbeller's solution has supported banks in meeting compliance requirements on anti-money laundering and combating terrorist

financing, thus guaranteeing safe operations and promoting business competitiveness. The effectiveness of AML Profiling has been demonstrated by the millions of transactions that are being scanned every day as well as hundreds of requests to install the system from major organisations in some of the most demanding industries in the world. AML Profiling is an advanced and flexible system with strong customisation capabilities. The system allows for various amendments and adjustments to parameters and reports to be made simply and effectively. Furthermore, new scenarios can be easily generated to accurately reflect the operation of individual banks. The system is deployed at BIDV with five main components. These include customer information identification (SironKYC), enhanced due diligence

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(SironKYCQuestionnaire), transaction surveillance and risk assessment (SironAML), data statistics and analysis (SironAnalysis) and utilities (SironUltil). These modules are expected to provide invaluable support to every department in the prevention and combating of money laundering. In particular, the online search in SironKYC facilitates the job of searching blacklists, the warning list and the PEP list before conducting transactions. Users can now conduct their searches on one screen instead of scanning through multiple files as before. The system also allows for the active and immediate detection of suspicious signs and transactions. The process of risk assessment of money laundering as prescribed by the antimoney laundering laws is also now automated.

A meticulously planned process

BIDV Highlights

From the very beginnings of the project the project management unit has placed a strong emphasis on training and knowledge transfer. Within the scope of the project, a number of professional and technical training courses were carried out appropriate to each group of learners. Furthermore, the requisite data infrastructure has been simultaneously prepared. Since the beginning of July this year, the project management team, in collaboration with BIDVâ&#x20AC;&#x2122;s Information Technology Center, has inserted real data into the system in order to test the system functions so

as to evaluate data runtime as well as the systemâ&#x20AC;&#x2122;s capacity to appropriately adjust or amend specific scenarios. Following this, the pilot program was implemented at the head office and six other branches in order to test how well the system functions, for instance, in declaring parameters, in reporting above-threshold and suspicious transactions, or in creating alerts from deployed scenarios. The purpose of this was to quickly detect and correct errors. From August 14 this year, the system has worked stably, meeting compliance requirements. The successful

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implementation of the anti-money laundering project is a marked improvement of AML at BIDV, which largely increases the effectiveness of daily transaction processing and ensures the safety and efficiency of the bank, thereby, affirming the position of BIDV as one of the leading banks in the field of anti-money laundering in Vietnam. Furthermore, BIDVâ&#x20AC;&#x2122;s credibility in terms of its relationships with foreign partners, particularly the correspondent banking relationship with the U.S. and European banks, is greatly enhanced by the employment of this system.

BIDV Highlights

To Uyen

Basel II boosts BIDV Recently, BIDV successfully hosted a seminar for the midterm report of the Basel II Standards GAP analysis and implementation master plan development project (GAP&MP Basel II).

r. Tran Luc Lang, senior executive vice president of BIDV and Head of GAP&MP Basel II Project Management Unit (PMU) commented: “The integration and bank restructuring require Vietnamese commercial banks to improve their capital capacity and strengthen their supervision and transparency. These are three core pillars of Basel II. At BIDV, the application of Basel II is in accordance with the bank’s operational plans for the 2016 - 2020 period. Speaking at the seminar, Mr. Tran Bac Ha, chairman of BIDV, commented upon the initial success of the project and commended the efforts of the

PMU and PricewaterhouseCoopers (PwC) consultant, confirming that the implementation of Basel II at BIDV is one of the important foundations for helping BIDV to realise its strategic goal of becoming the leading bank in risk management and capital management in Vietnam and the region. The GAP&MP Basel II project will be key to the entire implementation process of Basel II at BIDV in the future. Reporting on the implementation of Basel II in Vietnam, Mr. Stephen Gaskill, Deputy General Director at PwC stated the difficulties encountered in the project implementation and noted key gaps as well as priority tasks which needed to be completed by BIDV in order to implement Basel II. Mr. Stephen Gaskill said BIDV needs to prepare all the necessary resources to implement the Basel II project which will span across many sectors and last for years. PwC is committed

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The GAP & MP Basel II Project was implemented over seven months, from April to October 2015, with the overall objectives of supporting the gap analysis and developing a master plan to implement Basel II, meeting the requirements of the State Bank. To date, the project has completed Phase 2 – the development of a gap analysis report - and begun Phase 3 – developing a master plan to implement Basel II with two main objectives: development of a target operating model and a proposed roadmap for Basel II.

to utilising all resources regionally as well as internationally for this strategic cooperation project. He believed the results of the project will help BIDV to improve its competitiveness, confirming its position as the leading bank in the Vietnamese market and continuing its successful expansion in the international market.

partners

Q u an Cao

Commodity swap with VALEXIM

n September, BIDV and Van Loc LPG Export, Import and Trade JSC (VALEXIM) signed an agreement to provide LPG commodity swap products. The agreement outlined BIDV’s commitment to the products as well as to consulting with VALEXIM and supporting them to hedge risks against LPG price fluctuation during the period 2015-2016. The maximum transaction value is USD30 million. In August, BIDV successfully conducted an LPG commodity swap with VALEXIM. The transaction volume was 1,000 LPG tons, with a onemonth term and transaction value of approximately USD330,000. The agreement will enable BIDV to help

VALEXIM, established in 2006, is the largest private company in North Vietnam trading liquefied petroleum gas (LPG) with market share of 15% in this field. The company owns an LPG storehouse with a capacity of about 4,500 tons and a nationwide distribution network. VALEXIM imports about 8,000 tons of LPG per month from world’s leading LPG providers such as E1 Corporation, Itochu, Sinopec. VALEXIM’s revenue in 2014 was VND1.7 trillion (~USD78 million).

BIDV and Valexim representatives sign the agreement

its customers move from a floating price to a fixed price, therefore, all the price risk will be transferred from customers to BIDV. In addition, the product can swap from fixed price to floating price depending on the particular business characteristics of corporate customers. This product is especially suitable for companies trading petrol, gas or LPG given the fluctuating market.

According to Mr. Quach Hung Hiep, BIDV Senior Executive Vice President, this is the first LPG commodity swap in Vietnam. This service provides the tools and solutions for enterprises to hedge risks in their business operations, and demonstrates BIDV’s pioneering position in Vietnam’s commodity derivative market.

BIDV is the pioneering bank in Vietnam providing derivative and commodity derivative products. BIDV began researching and providing these products in 2006. Since then, BIDV has built up a portfolio of diversified derivative products including futures contracts, option contracts, and swaps of various products including coffee, rubber, corn, soybean, cotton, metal and LPG.

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partners

DUC ANH

Phu Quoc

–an island with great potential BIDV has signed an agreement-in-principle with Sun Group and Vingroup related to the financing and provision of banking services for Sun Phu Quoc’s cable car and amusement park project in Hon Thom, Phu Quoc as well as that of Vinpearl Phu QuocVinpearl Villa Phu Quoc complex project (Phu Quoc - phase 3).

fter evaluating the economic efficiency of the two projects, taking into account the developer’s financial capacity, management skills and experience, as well as the output market, BIDV, Vinpearl Phu Quoc and Sun Phu Quoc agreed to enter into this agreementin-principle. BIDV will also provide banking products and services to assist the developers in completing the projects on schedule. Vinpearl Phu Quoc-Vinpearl Villas Phu Quoc complex project has a

total estimated investment value in the region of VND2,000 billion with maximum loans of close to eighty percent. The project will consist of 500 villas available for sale or rent with more than 1,000 five star rooms as well as fully-equipped modern facilities including outdoor swimming pools, Vincharm Spa, a 27-hole golf course; Vinpearl Land recreation park and Vinmec international hospital. Upon completion, the project is expected to contribute to improving the quality of tourism services in Phu

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Quoc, increasingly meeting the needs of tourists who are expected to reach 2-3 million in number by 2020 and seven million by 2030. The cable car and recreation park project in Hon Thom, Phu Quoc has a total estimated investment in the region of VND10,000 billion, with maximum loans of close to 7,000 billion. The park and cable car will be

partners

built in An Thoi town and Hon Thom commune on Phu Quoc island. The 8km-long three-string cable car system connecting An Thoi and Hon Thom will be the world's longest cable system, crossing the sea on six cable pillars. The cable car system will be capable of serving 2,000 guests per hour, with each cabin accommodating up to 30 guests. The 380-hectare entertainment

zone in Hon Thom will include a theme park zone; villas available for sale or rent; a presidential compound; a five star boutique hotel, a three star hotel, four star family hotel and a backpackers hostel; as well as restaurants, bars, clubs, a spa, shopping and retail services and a water sports centre. BIDV chairman Mr. Tran Bac Ha commented: â&#x20AC;&#x153;Given the developerâ&#x20AC;&#x2122;s

capacity in building and operating, BIDV expects that the cable car and amusement park project in Hon Thom and Vinpearl Phu Quoc-Vinpearl Villas Phu Quoc complex project will be quickly completed and begin operating as scheduled, creating jobs for local people and contributing to the economic and tourism development of Phu Quoc in particular and Kien Giang province in general.â&#x20AC;?

Bestowed with favorable natural conditions, Phu Quoc holds huge potential for both economic and tourism development. Lying in the stunning Mekong Delta region, the island boasts a plethora of beautiful beaches spanning over 150km, an abundance of hills and primary forest as well as being home to a rich flora and fauna system. Phu Quoc has many beautiful natural sites including Bai Thom, Bai Khem, Da Bang spring and Tranh spring, making it stand out from its neighbouring islands. Bai Dai Beach has been voted as one of the most beautiful beaches in the world many times by media agencies and is a favourite amongst international tourists. Phu Quoc now possesses sound infrastructure, including Phu Quoc international airport, an 110 KV underground cable line system and Phu Quoc international passenger port, as well as other transport systems that are currently in the construction phase and nearing completion.

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partners

THANH BINH

Mr. Phan Duc Tu (L), BIDV CEO and Mr. Dao Quoc Tinh, DIV General Director sign the cooperation agreement

BIDV, DIV

ink agreement

IDV and Deposit Insurance of Vietnam (DIV) signed a comprehensive cooperation agreement in September, cementing the robust relationship between the two institutions. Under the agreement, DIV will give priority to maintaining its current accounts at BIDV branches and boost transactions through these accounts. Furthermore, DIV will prioritise BIDV as a partner for providing services related to DIV’s investment activities, including government bond depository services and a government bond auction agency on the primary market. Additionally, the two sides will promote cooperation in other areas such as cash flow management; electronic banking; and personal banking services for DIV’s employees,

in order to better serve DIV’s professional operations. As two of the largest financial institutions in Vietnam, BIDV and DIV have formed a solid working relationship over the years. The two sides have cooperated effectively in areas including service accounts and payments, deposits, as well as the payment of deposit insurance to depositors in cases when a credit institution terminates its operations or becomes insolvent. With an extensive operating network of 180 branches and nearly 1,000 outlets across the country, as well as 58 years experience of serving customers, BIDV is proud to be the leading bank providing high quality banking products and services to large financial institutions, corporations,

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and local and international businesses. BIDV has earned the trust of its clients, including DIV. BIDV has accompanied and supported DIV on the latter’s path of development, reform and quality improvement.

DIV is a state-owned, not-for-profit financial institution. It was established in 1999 with the aim of safeguarding the legitimate rights and interests of depositors, contributing to the stability of insured deposit institutions and ensuring the safe and sound development of the national financial system. DIV is one of the main regulators in the banking and financial system. DIV’s headquarters are in Hanoi, with branches and representative offices located across Vietnam.

market movements

vi et d ung

Economic and institutional strength improvements

oody's Investors Service recently stated that Vietnam's B1 government bond rating (updated at the end of August) is supported by macroeconomic stability and a return to rapid economic growth. However, rising government debt means it also faces challenges. According to Moodyâ&#x20AC;&#x2122;s, the stable outlook for the rating reflects recent progress on reforms. Contingent risks from the banking system and stateowned enterprise sector has been offset by closer economic integration with key trading partners. While economic growth in the Asia Pacific region slowed in 2015, Vietnam has continued to emerge from a twoyear lull in growth. Outperformance of exports relative to regional peers has resulted from an acceleration in the pace of Vietnam's industrialisation, as the country's reliance on production of commodities wanes. At the same time, domestic demand has shown signs of a nascent recovery. Despite improvements in economic strength and institutional strength, fiscal deficits have not consolidated enough to curb the ongoing increase in the government's debt burden. However, the government's financial position is supported by very high debt affordability due to a high proportion of its debt having been sourced in

concessional or low-cost terms from official sources. The report notes that a further containment of government fiscal deficits and lower government debt levels would result in a credit positive position for Vietnam. On the other hand, Vietnam's rating or outlook could face downward pressure if macroeconomic instability reemerges, leading to a more substantial deterioration in the government's fiscal and debt metrics or a deterioration in the country's external payments

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position. In addition, materialisation of contingent risks from either the banking system or the SOE sector would result in a credit negative position.

Moodyâ&#x20AC;&#x2122;s has also reported that it maintained the stable outlook for VIB, Vietinbank, BIDV and SHB. Five other commercial banks including Sacombank, Techcombank, ACB, Military Bank and VPBank received positive ratings. BIDV and Vietinbankâ&#x20AC;&#x2122;s local currency deposit has the highest rating compared to their peers.

market movements

Thu Trang

ADB lifts

Vietnam growth stability,” said Mr. Eric Sidgwick, ADB Country Director for Vietnam. Private consumption is benefiting from low inflation, improved consumer confidence, and growth in nonfarm wage employment. Construction accelerated to grow by 6.6 percent owing to a modest recovery in the property market and to higher investment in infrastructure.

Vietnam’s gross domestic product growth to 6.5 percent for 2015 and to 6.6 percent for 2016, revising upwards original growth forecasts made earlier this year.

FDI continued to be the country’s highlights. Based on figures from ADB, manufacturing continues to attract substantial FDI inflows. Of USD84.8 billion in new FDI commitments from 2011 to August this year, 70 percent was to expand manufacturing, largely to produce exports. FDI disbursements rose to USD8.5 billion in the first 8 months of this year. The average monthly value of exports from foreign invested firms increased sharply from almost USD3 billion in early 2010 to USD10 billion in August 2015

“Vietnam’s improving economic growth performance is being driven by a number of factors, particularly stronger output from manufacturing sector and also rising consumer spending and macroeconomic

After a challenging few years, the financial sector also appears to be picking up momentum. Growth in credit this year looks likely to exceed the government’s initial target of 13–15 percent and is projected to quicken into

Da Nang Port

ietnam’s economic growth will exceed expectations for 2015 and 2016, with sensible pro-growth monetary and fiscal policies helping to restore macroeconomic stability, and recent policy reforms boosting business confidence, the Asian Development Bank (ADB) said in its “The Asian Development Outlook Update (ADOU) 2015” released late September. Accordingly, ADB lifted forecast for

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market movements

2016. Demand for credit is increasing, and the reported improvement in NPLs and bank balance sheets will facilitate the expansion of lending. “Moreover, the central bank relaxed limits on banks using short-term funds for longer-term lending. A program to consolidate or close small, weak banks should further strengthen the financial system. The central bank is encouraging consolidation to reduce the number of banks by almost half by 2017”, said ADB. However, ADB also stated one obstacle for Vietnam economy is a lack of strategic investors willing to participate in initial public offerings of shares. The easing of foreign ownership restrictions on companies listed on the stock market aims to address this shortcoming, though foreign investors may still be discouraged by concerns over corporate governance and financial transparency.

Various positive GDP forecast

ccording to General Statistics Office of Vietnam (GSO), Vietnam’s GDP has grown 6.5 percent in the first three quarters this year, the highest compared to the same period of the last five years. Total retail sales and service revenues grew 9.8 percent year-on-year with the recovery of purchasing power. The better-than-expected GDP made experts and economist believe in a higher GDP forecast at year-end. Previously, according to the Ministry of Planning and Investment (MPI), Vietnam is likely to achieve a GDP growth rate of 6.4 percent in 2015 despite knock-on effects from China’s yuan devaluation and low oil prices. The National Financial Supervisory Commission (NFSC) forecast at the end of July that GDP growth rate would grow 6.5 percent in 2015. The NFSC attributed the recovery to the boost in production, particularly in the manufacturing and processing industries. Earlier this year, the Vietnamese Government set plans in line with an expected GDP growth of 6.2 percent in 2015.

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market movements

Nga n Duc

FTA reduces

barriers for trade Vietnam recently announced that it has concluded negotiations with the EU on a bilateral free trade agreement (FTA). Along with TransPacific Partnership (TPP), this FTA offers great potential for the development of the Vietnamese economy. Economic benefits for Vietnam EU-Vietnam FTA began negotiations in June, 2012. After nearly three years, Vietnam and the EU finally concluded all the basic contents of the agreement. Customs duties will be reduced to zero for virtually all products, with the exception of sensitive agricultural items. Vietnam will liberalise duties for 65 percent of imports upon entry, with the remainder liberalised over a ten-year period. The EU duties will be liberalised over a seven-year period, with agricultural products being subject to tariff rate

quotas. This includes canned tuna, a major export item for some Asian countries. Non-tariff barriers will be addressed, particularly for electrical appliances and IT, food and automotive products, which will have their own regulatory annex. The agreement will boost development opportunities for Vietnam, bringing benefits to both enterprises and consumers. The EU is a huge market, with 28 members and 500 million consumers and is one of the most important trade partners of Vietnam. The EU has great demands for textiles and footwear, as well as agricultural, forestry and fishery products. These are the main export products of Vietnam. Vietnam is the first ASEAN country to have an FTA with the EU. This has created the momentum for investors from other member countries to seek investment opportunities in Vietnam. According to a representative for a Thai enterprise, “We want to invest in Vietnam because of the EU export

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advantages in terms of reduced custom duties, which Thailand does not have”. EU Trade Commissioner Cecilia Malmström comments that Vietnam is a growing economy and once this agreement is up and running, it will provide significant new opportunities for companies on both sides, by increasing market access for goods and services. “Over 31 million jobs in Europe depend on exports, so having easier access to a rapidly developing market like Vietnam, which has around 90 million consumers, is great news. Vietnam's exporters will now have easier access to the EU for their products, giving an important boost to the Vietnamese economy. Both sides have worked extremely hard in the past few months

market movements

FTA offers great potential for the development of the Vietnamese economy

to achieve this breakthrough," said Commissioner MalmstrĂśm. According to the Vietnam-European Commission, in 2014, the EU was the second most important trading partner for Vietnam after China (not including trade within ASEAN), representing ten percent of total Vietnamese trade. The EU was Vietnamâ&#x20AC;&#x2122;s second export destination after the US, purchasing as much as eighteen percent of Vietnam's global export goods. Vietnam's key export items to the EU include telephone sets, electronic products, footwear, textiles and clothing, coffee, rice, seafood, and furniture. EU exports to Vietnam, meanwhile, are dominated by hightech products including electrical machinery and equipment, aircraft, vehicles, and pharmaceutical products.

must continuously raise their competitiveness capability, upgrading infrastructure, updating technology, enhancing services and product quality, and in doing so prepare the best possible conditions to meet the new demands of the EU and its market.

Challenges ahead Competitiveness is unavoidable as there is likely to be a flock of foreign enterprises seeking to invest and conduct business in Vietnam. They will utilise production resources and gain the market share and thus trigger a new market competition. A further challenge comes from the EU imposing strict rules of origin on export products to EU countries. The EU requires that fabrics are produced in Vietnam or South Korea, another FTA partner of the EU in Asia. For meat products, the EU requires that not only food safety regulations are met, but also that animal welfare standards for cattle and other meat producing animals are adhered to. Therefore, Vietnamese enterprises

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It is expected that the Vietnam-EU Free Trade Agreement (FTA) will be signed by the end of 2015, marking the 25th year of their bilateral diplomatic ties. Since the beginning of this year, Vietnam has concluded many FTA talks including FTA with South Korea, the EU and the EEU.

In 2014, two-way trade exceeded USD36.8 billion, a year-on-year increase of nine percent. 23 of the 28 EU member nations invested in Vietnam by the end of 2014 with over 2,000 valid projects with a combined worth of more than USD37 billion. EU investments occur in almost all important economic sectors of Vietnam, particularly industry, construction and some service industries.

market movements

An Binh

September

banking review September is a month full of events for the banking system, with many important policies and figures being released. USD rate to Zero On September 28, the State Bank of Vietnam officially cut its cap on USD deposit rates to 0 percent. Accordingly, the annual interest rate for USD deposits from organisations has been reduced from 0.25 percent to zero. Meanwhile, the maximum rate on USD deposits for individuals was also cut to 0.25 percent from 0.75 percent p.a. The last time the central bank adjusted its USD deposit rates was in March 2014. The decision was based on the State Bank and aims to prevent foreign currency speculation, helping to effectively implement monetary policies and banking operations for the rest of the year. However, there is concern that the bank might face difficulty in attracting USD deposits, resulting in a lack of foreign currency, particularly at the year end when the market demand for USD often rises significantly. In addition, a zero USD rate will discourage foreign currencies and remittances into Vietnam, causing a USD shortage.

However, Deputy Governor Nguyen Thi Hong from the State Bank confirmed that the banking systemâ&#x20AC;&#x2122;s foreign currency liquidity remains stable. The credit to deposit ratio in foreign currency, including foreign currency sources from credit institutionsâ&#x20AC;&#x2122; foreign loans, remains at sixty percent, which is much lower than the ratio of 100 percent seen in 2011-2012. By the end of August, the banking system reported an overall credit growth of 10.23 percent. It is believed that the year-plan target of 17 percent is feasible.

NPL ratio below 3 percent

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By the end of September, the Vietnamese banking systemâ&#x20AC;&#x2122;s nonperforming loan (NPL) ratio fell to less than 3 percent, meeting the deadline required by the State Bank of Vietnam. However, many experts worry about employing the statistic method, as over the years there have been big differences between the NPL ratio released by the State Bank, credit institutions and foreign organisations. Moreover, most of the NPLs were said to be sold to Vietnam Asset Management Company (VAMC) and it will take time and effort from VAMC to fully resolve these NPLs before an essential debt market is established.

market movements

Thu Trang TRANG TRINH

Bach Ho oil rig, Ba Ria - Vung Tau, Vietnam

Slow reform hampering benefits of integration

ith fifteen free trade agreements signed or in progress, including a bilateral trade agreement with the US, as well as its integration into the World Trade Organisation, Vietnam can now be considered as one of the leading countries in terms of international integration. However, slow internal reform poses a barrier, significantly reducing the pace of development. This year’s Autumn Economic Forum 2015 entitled “The Vietnamese Economy – Integration and Sustainable Development”, held in Thanh Hoa province, Vietnam by the National Assembly’s Economic Committee and the Vietnam Chamber of Commerce and Industry heard exactly this message from experts in the field. Vietnam actively applied the free trade agreements (FTAs), including the WTO integration, to direct its reform of commercial policies. Since 2011, the country has discussed more

than six FTAs with high levels of market liberalisation. Vietnam signed FTAs with many countries, including ASEAN members, China, India as well as EU members. These FTAs have brought success in commercial trading activities including tax exemption. According to the World Bank, with its status as a small-scale, open economy, Vietnam should expect to see great benefits from free trade over the next twenty years. However, the World Bank also noted that although Vietnam has received a significant amount of FDI in recent years, its business environment has been lacking transparency and as such has been a barrier for some other beneficial trade activities. Former Minister of Trade Truong Dinh Tuyen said that institutional reforms, democratisation and integration were the three pillars of Vietnam’s development. “Vietnam has taken great

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strides by integrating into the global economy but slow internal reforms have hampered the country’s efforts to seize many of the opportunities arising from the integration process.” Mr. Hugh Borrowman, Australian Ambassador to Vietnam, stated that Vietnam has performed well so far on economic integration but needs to continue reforms in order to fully benefit from integration. According to experts, the country’s infrastructure and human resources are insufficient and do not meet international integration requirements. Moreover, the management and administration of Vietnamese enterprises have not caught up with the requirements of an increasingly fierce and competitive market. Likewise, institutional reform, in terms of mechanisms and policies, has not picked up its pace in response to the country’s swift integration.

achiEvements & awards

QUYNH HOA

Ms. Le Thi Kim Khuyen, BIDV BOD member (2nd, R-L) receives the award from Asiamoney

BIDV wins Asiamoney award for 3rd consecutive year BIDV has this year been named Best Domestic Provider of FX Services in Vietnam by Asiamoney Magazine in Hong Kong. It is the third year in a row that BIDV has been recognised by Asiamoney for this prestigious award.

he bank has also been named as the Best Domestic Provider of FX Research and Market Coverage in Vietnam by the leading Asian regional financial magazine. Asiamoney Magazine's awards honour financial institutions in the AsiaPacific region for their achievements in forex operations and market analysis. The award ceremony has been held annually for the past twenty five years.

This yearâ&#x20AC;&#x2122;s poll results are based on responses from senior treasury, financial and senior management officials based in Asia Pacific representing 394 financial institutions, as well as over 1,900 corporates. Asiamoney organises the award ceremony annually to honor global financial firms such as banks and brokerage houses across ten categories of financial services.

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Forex trading is a core service of banks and has become increasingly competitive due to market demand. In recent years, BIDV has affirmed its brand and reputation in forex trading with continued innovation, satisfying the needs of customers. BIDV has continuously improved and designed diverse forex portfolios tailored to different customer segments. BIDV was the most outstanding performer in Asiamoneyâ&#x20AC;&#x2122;s 2014 Fixed Income Poll for Vietnam, outperforming other major financial institutions and sweeping every category for Vietnamâ&#x20AC;&#x2122;s debt capital markets with 11 awards.

achiEvements & awards

HA AN

House of the Year four years running Hong Kong based Asia Risk Magazine presented its House of the Year award to BIDV for the fourth consecutive year. BIDV is the only Vietnamese bank to receive this prestigious award.

he House of the Year is an annual Asia Risk award honouring the most prominent financial institutions in the Asia-Pacific region for their successful operations in the fields of risk management and trading of derivative products. The House of the Year category for each country is given to only one local bank or a global or regional bank branch operating in that country. The award is recognised by global and regional organisations, financial institutions and leading banks for its quality, credibility and reputation. Asia Risk magazine has organised the award for the past sixteen years. With more than twenty derivatives having been launched since 2006, BIDV has demonstrated its position as the pioneering bank in supplying currency and interest rate derivatives in Vietnam. BIDV provides products to corporate customers and household businesses operating in areas ranging from agriculture, fisheries and mining to manufacturing and production. The bankâ&#x20AC;&#x2122;s derivative products help businesses to be proactive in their business plans, mitigate risks,

Mr. Do Ngoc Quynh, Head of BIDV Treasury and Currency Trading (R) receives the award

and stabilise production. They also contribute to improving market knowledge, and provide effective tools for deeper integration into the world economy. BIDV has also been awarded by prestigious magazines including Asiamoney and Asian Banking and Finance, to name a few. The Asia Risk award once again confirms the prestige and position of BIDV as one of the leading commercial banks in Vietnam â&#x20AC;&#x201C; the bank which always brings the best banking services and products to customers. BIDV has been striving to develop dedicated forex and derivative products with competitive prices to better meet

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the needs of customers, contributing to the improvement of business efficiency and bringing more utilities and added value to customers.

Asia Risk is the only financial risk management magazine in the AsiaPacific region covering economic and regulatory risk capital as well as derivatives, hedging instruments and structured product investment. Since its launch in 1995, Asia Risk has become the definitive risk management information resource for thousands of finance professionals who operate or have an active interest in the AsiaPacific region.

achiEvements & awards

Ticking

all the boxes

hort-term borrowing costs in Vietnam are punitively high, with the per-annum interest rate payable on a three-month dong loan reaching 8.5 percent. Small wonder that demand among Vietnam corporates for US dollar funding is on the rise. Short-term loans in US dollars can be 3–4 percent lower than those in the local currency. The difficulty is that local restrictions make it difficult for companies in Vietnam to access offshore funding. The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has a solution: leveraging its own US dollar balance sheet to offer clients short-term local currency funding at rates as low as they would get if they were borrowing in dollars. It is the strength and popularity of this dong-structured loan product that has led to BIDV retaining Asia Risk's Vietnam House of the Year award. One local gas company saved more than 40 percent in interest payments on a three-month dong loan, which it took out for the equivalent of just over USD1.5 million, according to Vo Dieu Thuy, deputy director, BIDV treasury department.

BIDV is able to offer this type of loan structure by selling US dollars from its own balance sheet to fund the dong. On the day the loan matures, BIDV has to buy back the US currency to square its forex position. Since there is a risk of the exchange rate being higher at the loan's date of maturity than when it was structured, BIDV includes a requirement for the client to pay any difference in the exchange rate if necessary. “This is a perfect structure for clients who view the dollar/dong exchange rate will be stable and want to take advantage of the spread between the dong and dollar interest rates – they are willing to take on the forex risk in order to be able to borrow in dong at a competitive rate,” says Thuy. “This is why we advise only using this structure for short-term loans, so the risk of devaluation isn't too high”. In the case of the local gas company, the forex rate moved in BIDV's favour, so the company did not have to pay any additional fee.

Broad client base The strength of BIDV's product offering stems from its broad client base, which has allowed the bank to build up a good exposure to foreign

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The strength and popularity

achiEvements & awards

currency positions, which it can switch into dong to offer an attractive rate to local corporate borrowers. “We are one of the biggest banks in Vietnam and so we have a high volume of forex trading with corporate clients and on the interbank market, which means we have good foreign exchange flows and our volume of structured loans can be bigger compared to other commercial banks,” says Thuy.

BIDV also receives US dollar funding from large overseas financial institutions such as the Japan International Cooperation Agency (JICA), which funnels development aid into countries throughout Asia. Over the past 12 months about 300 corporate clients have signed up to BIDV's dong-structured loan, resulting in nearly 50,000 transactions and a turnover of USD700 million for the bank.

BIDV also benefits from having a strong network of local partners, and being able to negotiate local rules and regulations to offer a valuable service to its clients. At the end of last year, Vietnam Airlines, a long-term client of the bank, was worried about the potential negative impact of rising fuel prices on its business and chose to execute a plain vanilla swap to hedge against the price of Singapore Jet Kerosene. The challenge with the transaction is that the State Bank of Vietnam (SBV) has not yet issued a legal framework for executing such swaps, so licences for them are granted on an ad-hoc basis and are not awarded for every proposed transaction. “It's not so easy to obtain this kind of licence, and you need to have an established local presence on the ground and a proven track record,” says Thuy. “As far as we are concerned, there are some criteria that the SBV uses when considering who gets the licence, such as the bank needs to have certain experience in the derivatives market; the bank should have a good risk management policy in place and good financial capacity; and the bank should be able to demonstrate good operation. We ticked all those boxes."

of dong-structured loan product has led to BIDV retaining Asia Risk's Vietnam House of the Year award

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The swap transaction was executed at the end of 2014 and fixed the price of jet kerosene at USD115 a barrel for 100,000 barrels over a four-month period. Earlier in the year, the price stood at USD120 a barrel and Vietnam Airlines was worried it could rise again. Having this four-month window of certainty allowed the airline to establish airfares, predict future cashflow and stabilise the business. (Source: www.risk.net).

achiEvements & awards

ki eu oanh

Best Bond and Best Equity House

IDV Securities Joint Stock Company (BSC) has been honored with two awards, namely Best Bond House and Best Equity House, Vietnam 2015 by prestigious financial magazine Alpha Southeast Asia. This summer, BSC was also awarded Vietnamâ&#x20AC;&#x2122;s Best Debt Capital Market House by Hong Kong based Finance Asia, Asiaâ&#x20AC;&#x2122;s leading financial magazine.

Best Bond House BSC successfully arranged close to VND22 trillion of corporate bonds for large economic corporations and leading enterprises in the 2014-2015 period. Notable transactions included underwriting VND3,000 billion of Ho Chi Minh city government bonds; consulting for the issuance of VND3,000 billion bonds of Vietnam National Coal-Mineral Industries Holdings Corporation Limited (Vinacomin), as well as arranging VND1,250 billion bonds for Song Da Corporation, amongst others. In the government bond market, in 2014 and the first quarter of 2015, BSC continued to lead the market in both brokerage and tender market shares.

Best Equity House

BSC representatives receive the award from Alpha Southeast Asia magazine

In the 2014 - 2015 period, BSC focused on large corporate customers, conducting big deals including consulting for the equitisation and IPO of Vietnam Airlines, Vietnam National Textile and Garment Group (Vinatex) and Airports Corporation of Vietnam (ACV). This year marks the second year in a row that BSC has received an award from Alpha Southeast Asia magazine. In 2014, BSC was named Best Investment Bank in Vietnam by the magazine.

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Alpha Southeast Asia is the first and only institutional investment magazine written primarily for institutional investors, asset and fund management companies in Hong Kong, Singapore, other parts of Asia, US, Europe and the Middle East, who tend to have less exposure to the economies of this region than those of North Asian economies.

achiEvements & awards

phuong thao

Positive ratings for BIC

.M. Best, one of the world’s leading financial credit rating firms, has announced the result of the 2015 credit rating of BIDV Insurance Corporation (BIC). The firm has declared a financial strength rating of B+ or ‘good’ and an issuer credit rating of ‘bbb’ for BIDV Insurance Corporation (BIC). The outlook for both ratings is stable. The ratings reflect BIC's favorable riskbased capitalisation, strategic support received from BIDV and continuously positive operating results. BIC continued to strengthen its

chartered capital in 2014 in line with its business plan. The company's moderate underwriting leverage and investment risk profile contributed to its favorable risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR). BIDV continued to support BIC's business growth through its bank brand, network and customer base. Moreover, BIC maintained its promising operating performance thanks to its positive underwriting results and stable investment performance. A.M. Best also stated in its press release that Fairfax Asia Limited (Fairfax Asia) would acquire 35 percent of the newly issued shares in BIC and become a strategic investor. According to A.M. Best, Fairfax Asia will provide BIC with technical assistance in areas such as underwriting management, risk management, information technology and the development of distribution channels. With over 100 years of experience, A.M. Best, is one of the world’s leading financial credit rating firms, specialising in the implementation of credit rating for insurers and reinsurers. In Vietnam, A.M. Best assigned credit ratings for Vietnam National Reinsurance Corporation, PetroVietnam Insurance Corporation (PVI) as well as PVI Reinsurance Joint Stock Corporation (PVIRe) and Samsung Vina Insurance Ltd.

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achiEvements & awards

m i nh tue

Pioneering in

social media B

IDV was honored by the Chief Marketing Officer Asia with the award for Best Social Media Team at the Social Media and Digital Marketing Excellence Awards program which took place in Singapore in August this year. BIDV launched its Social Media Command Center (SMCC) earlier this year in April and was evaluated by the CMO Asia as the organisation with the most outstanding social media activities in the region. Social media is transforming the market by focusing on a planned, managed approach in order to get the most out of social media tools. No other area in interactive marketing is developing as rapidly as social media marketing. According to statistics, about 27% of businesses in the world have their own in-house social media teams.

Employing a team specialising in social media – currently the most common communication channel - is now the norm for advertising and communication agencies. In the banking sector in Vietnam, BIDV’s SMCC is the first center specialising in social networking activities, which extends to customer care and analysis of information gathered from social networks as well as marketing. SMCC has achieved positive results only 4 months after launched. It developed BIDV official social network on Facebook with nearly 60,000 followers; collected and processed more than 18,600 posts related to BIDV. In addition, the center supported nearly 1,000 cases concerning/ complaining about the bank’s products and services. SMCC also gave warnings, developed a series of reports on the market, brand; and designed code of conduct and manual for using internal social network.

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BIDV SMCC representatives receive the award

Given this revolutionary practice, BIDV’s SMCC outperformed major companies and agencies in the region to receive the Best Social Media Team award. Ms. Le Vu Diem Hang, Head of BIDV SMCC, said, “With a young and enthusiastic team together with the right mindset from the bank leadership, I am very proud of the achievements made today. The award is the recognition of BIDV’s innovative efforts in general and of SMCC in particular in the delivery of our commitments to customers”.

The CMO Asia is dedicated to high level knowledge exchange through leadership and networking amongst senior CMOs and brand decision makers across industry segments. It has more than 5,000 members including representatives of major groups and media agencies in Asia.

products & services

Lucky companion

rom now until the end of October this year, holders of BIDV Vietravel credit and debit cards are eligible for a promotion programme referred to as Lucky Companion. Both existing cardholders and customers opening new accounts can apply during the promotion period. Cardholders can receive cashback of up to five percent, at a maximum of USD45 for any abroad transactions, excluding those made online, using BIDV Vietravel cards. The available budget for cashback is VND200 million (USD9,000).

To take advantage of the promotion, customers must carry out a minimum total transaction of VND2 million (USD90).

BIDV Online incentives

Within twenty days of the programme ending, BIDV will calculate the total amount made through customer transactions and provide cashback based on each transaction amount until the budget is depleted.

Please contact BIDV branches for any further information or call BIDV hotline 19009247.

ith a desire to provide the most useful products and services to customers, BIDV launched two incentive packages relating to savings and cards. Customers can receive USD2 upon registering for one service package and VND5 when registering for two packages. This applies for the first 6,000 customers only. The savings package applies to customers holding term savings accounts who can now register to use BIDV Online and BSMS. In particular, customers making deposits online can take advantage of higher deposit rates as well as saving time compared with making over the counter transactions. The card package applies to customers using domestic debit cards wishing to upgrade to international debit or credit cards and registering for BIDV Online and BSMS.

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products & services

Fee-waiver and cash bonuses

VND12 trillion home loan package

n response to customersâ&#x20AC;&#x2122; increasing demands for financial assistance for housing, from the middle of August, 2015 until the end of February next year, BIDV is offering a credit package worth VND12,000 billion (USD537 million) with a lending period of up to twenty years, with preferential rates. Customers can select the lending rate and repayment period based on their specific demands. Flexible options tailored to customersâ&#x20AC;&#x2122; needs include: Option 1: 7.2 percent applied for the first year Option 2: 8.5 percent per year, applied for the first two years Option 3: 9.5 percent per year, applied for the first three years

or ten weeks from mid-August until October 18, 2015, customers will be able to open domestic debit card accounts with no opening fees. Furthermore, new cardholders will receive up to USD5 for each transaction through POS. Domestic debit cards include Harmony, E-trans, Moving, Lingo, Maximark and student associated cards, with the exception of BIDV Co.opmart and BIDV Satra. The programme applies to both primary

and supplementary cardholders. The programme offers free of charge card opening as well as a bonus of up to USD5 for the first 300 customers making POS transactions each week. Each customer can receive this bonus up to three times. The minimum value for each transaction is USD2. The programme does not require customers to maintain a minimum account balance.

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Furthermore, in signing up for the package customers can take advantage of a multitude of free services including online bill payment and internet and mobile banking. BIDV Insurance Corporation (BIC) also offers reduced insurance rates of between 20 and 30 percent for borrowers. More information is available from the hotline: 19009247.

products & services

MUFC merchandise tempts fans

rom September 10 until December 3 this year, new holders of BIDV Manchester United credit cards and BIDV Manchester United debit cards will be entitled to first year annual fee waivers, cashback of up to VND1 million as well as opportunities to receive MUFC soccer T-shirts, signed flags and official MUFC sports bags. The total prize value of the promotion programme is VND630 million (~USD29,000).

“Red Buy” offers worth VND450 million (~USD20,700) Also on offer are refunds of 100 percent of the value of the first purchase, with specific terms as follows: BIDV Manchester United debit card: Refund of 100 percent of the value of the first purchase (up to VND200,000) for the first 1,000 cardholders making valid card payments during the promotion period. BIDV Manchester United credit card: Refund of 100 percent of the value of the first purchase (up to VND500,000) for the first 500 cardholders making valid card payments during the promotion period.

“Red Day” offers worth VND180 million (~USD8,300)

New cardholders will be presented with official MUFC merchandise items and a refund of 100 percent of the purchase transaction value on what is known as ‘Red Day’ – the day on which Manchester United plays in the Premier League 2015-2016 season.

of their purchase transaction value (up to a maximum of VND500,000), with 200 cardholders being refunded over ten matches. 10 cardholders making the biggest card payments on Red Day will receive signed soccer T-shirts and official Manchester United sports bags.

The first 40 BIDV Manchester United debit card holders making valid payments on Red Day will receive refunds of 100 percent of the purchase transaction value (up to VND200,000), equating to 400 cardholders over ten matches. Souvenir T-shirts and signed Manchester United flags will be given to the thirty cardholders who make the highest card purchases on Red Day.

Terms and conditions apply. Contact BIDV’s nearest branch nationwide or call its Contact Center on 19009247/ (+84)422200588.

Similarly, the first 20 cardholders of BIDV Manchester United credit card making valid card payments on Red Day will receive refunds of 100 percent

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The combination of the world’s favorite football team and Vietnam’s leading financial institution gives rise to BIDV Manchester United cards – the products which are expected to become highly desirable items for fans of the football team known as the ‘Red Devils’.

lifestyle

Q u y nh Chi

Traditional mooncakes with a modern twist

As Mid-Autumn Festival approaches, the streets become full of stalls offering mooncakes made commercially by popular brands. Recently however, there has been a move towards handmade mooncakes, sold online through social media and quickly delivered.

andmade mooncakes are most popular amongst younger customers as they are made in a diverse range of quirky shapes. Besides the traditional shapes of circles and squares with central flower patterns, they can be made in the shape of zodiac animals, fishes, tortoises, birds, stars, hearts or diamonds. An ever-increasing range of fillings appeal to the taste buds of youth, such as mung bean, green tea, taro, pineapple leaf and black sesame. Customers can

pre-order their favorite flavor. As well as these delectable fillings, bakers are experimenting with new additions to enhance the flavor of the cake crusts. These may include green tea, chocolate, black sesame, taro, adzuki bean, passion fruit and even jelly. Handmade cakes are an attractive option for many locals as they are made entirely from natural ingredients, with no additives or preservatives and tend to be more flavorful than commercially made cakes. The only

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lifestyle

downside is that the expiration date of these cakes is short due to the lack of preservatives. The price of these cakes also tends to be lower than commercially made ones as they are made by young people, amateur chefs or housekeepers. Thanks to the popularisation of social media, customers can easily choose their favorite mooncakes to order online,

which often include free delivery in a beautiful box, meaning they can enjoy a delicious mooncake wrapped in gorgeous packaging without even stepping outside. Nguyen Thanh Phuong, an official working for a local magazine, said that at first she was a little concerned about the quality of these mooncakes as they are not professionally produced and the bakers do not hold food safety certificates. “However, I can easily check the cake making process if I want to. The shop is actually the seller’s house and all tools and ingredients are clean. Moreover, I can consult directly with the sellers and by ordering through Facebook, Viber or Zalo I can have a box of mooncake delivered directly to my desk within a few hours. That’s a great service,” said Phuong.

Vietnamese traditional Mid-Autumn disk with mooncakes, fruits and flowers

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With more options now than ever before, many people are choosing to celebrate the Mid-Autumn Festival with these exquisitely handmade, flavorful and freshly baked mooncakes.

lifestyle

t u e m inh

The theatre of rice

For many people, the key image Vietnam conjures up is that of picture-postcard rice terraced mountain scenery, but what most people don’t know is the very best of this scenery is found not in famous Sapa, but in the lesser known Mu Cang Chai.

u Cang Chai is a charming destination all year-round, but it is during harvest season that it comes into its own and landscape photographers are attracted in their droves. Clear blue skies and rushing rivers flowing through the valleys combine with the harvest-ready yellow rice and newer vibrant green crop to create an Eden-like scene. To see this display at its very best, a visit in September or October is a must.

A western district of Yen Bai province in Northern Vietnam, Mu Cang Chai is home to some 700 hectares of terraced rice fields. Seventy percent of these fields lie in three communes: La Pan Tan, Che Cu Nha and De Su Phinh. This is land that has been cultivated by the H’mong people for centuries. The traditional cultural heritage of the H’mong people has been recognised by the Ministry of Culture, Sport

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and Tourism and the area has been designated as a National Famous Landscape. The area’s Khau Pha pass stretches for 30km, climbing over the terraced mountains and delivering people into the heart of this magical province. The terraces climb to an altitude of over 1000m, captivating all who view them. No matter how many times visitors come here they will always be surprised by Mu Cang Chai’s amazing beauty with its sea of yellow rice dotted with the houses of the minority people who call this land home. It is these people who lend the area its

lifestyle

truly special magic. The rustic Hâ&#x20AC;&#x2122;mong way of life is a thing of rare beauty in todayâ&#x20AC;&#x2122;s modern world. Observing their colourfully patterned clothing criss-cross the golden fields is an unforgettable experience. All the generations of each family get involved with the harvesting and different families also help each other, moving from one field to the next until all the crops have been collected. This sense of community combined with the vivid beauty of the landscape make Mu Cang Chai one of the most intoxicating and inspiring destinations in all of Vietnam.

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CSR

Thu Trang

A brighter future for rural students

September is the season that children begin a new school term after a long summer holiday. Vietnamese children all over the country are eager for the new school year, particularly those who have benefited from a recent scheme and can now study in a more spacious school using modern and diversified educational equipment.

IDV and its staff have contributed billions of dongs as well as many educational resources to facilitate improved education and to better equip schools in provinces, aiming to help children to receive a better education.

Ninh Giang Primary School On September 5, Ninh Giang Primary School in Ninh Binh Province held an opening ceremony for the new school year which included the inauguration of a new school project financed by BIDV. The three-storey school boasts twenty classrooms and fourteen department rooms, together with ancillary works including a kitchen, playgrounds and parking areas. The total construction cost ran to VND38.5 billion (USD1.7 million), with BIDV contributing VND6 billion (USD269,000). Other donors invested in the schools’ education equipment,

providing tables and chairs for teachers and pupils, computer rooms and IT equipment in accordance with the national standard for schools. The school construction project is a landmark for this new rural province. It has created an atmosphere of enthusiasm and excitement for teachers and pupils, which in turn further improves the educational quality of the school. BIDV also donated 10,000 notebooks to Ninh Giang primary school. These gifts from BIDV staff are representative of the hopes for Ninh Giang school pupils, namely that they will overcome obstacles to gain outstanding study results in the new school year.

Quyen Kindergarten on September 6. The construction of the ten classroom school began last year at a cost of VND8 billion (USD356,000). It has a total area of 2,500 square meters and can accommodate more than three hundred children. At the inauguration ceremony, BIDV presented VND500 million (~USD22,300) to To Quyen Scholarship Fund as well as gifts to the new kindergarten. Besides the kindergarten, the bank has sponsored a fairy garden in the commune that is expected to help develop children’s physical strength, contributing to a local socio-cultural development goal related to this.

Son Dong 1 High School During this academic year, BIDV sponsored the construction of an office building for Son Dong 1 High school, Thanh Hoa Province, contributing VND20 billion (USD895,000).

To Quyen Kindergarten BIDV along with the People’s Committee of Nghia Tru Commune, Hung Yen Province inaugurated To

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The project began in 2014 and it was ensured that the design met national standards in quality. Along with this new office, the scale of the school, the

CSR

Pupils at Dong Ninh Secondary School, Thanh Hoa Province

standard of the classrooms, and the high quality equipment will help to ensure a good standard of education can be provided. On this occasion, BIDV granted VND3 billion (USD135,000) to a Scholarship Fund and staff from the bank provided 5,000 notebooks for the local school students. BIDV also provided VND100 million (USD4,500) each to Dong Ninh Secondary and Primary Schools, Thanh Hoa Province. The two schools each received several thousand notebooks from BIDV to assist the students in their studies.

Mr. Le Kha Phieu, former Party General Secretary remarked upon the contribution BIDV has made to the socio-economic development of Thanh Hoa Province as well as to the education system of the province. Investment in education can be seen as investment in high quality human resources for the country. Over the years, BIDV has supported Thanh Hoa Province to improve the living standards of local people. Since 2007, BIDV has provided VND69 billion (USD3 million) for health care, education, disaster rescue, housing construction for the disadvantaged people, and for agricultural and rural development.

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Over the past five years BIDV has provided non-refundable financial assistance of over VND1.1 trillion (USD49.2 million) to the education sector, with an aim of building more schools, granting more scholarships and providing more computers in areas with high economic and social disadvantage, particularly those in remote and mountainous regions. This month, the bank also inaugurated another school, Trung Xa Secondary School in Bac Ninh province.

CSR

K i m Dung

Young generation

integration knowledge course

IDV has coordinated with The People’s Committee of Kien Giang Province to develop an integration knowledge course for young people living in the province. The course is part of a larger programme that BIDV has financed entitled Education Support for the Young Generation. The programme aims to support the future generations of the country, contributing to producing a knowledgeable and skilled workforce and creating resources for sustainable socio-economic development in key areas in the Northern Delta areas, the Northern Highlands, North Central Coast, South Central Coast and the Southwest of Vietnam. Kien Giang is one of thirteen provinces in the Southwest region. The province is advantageously positioned for transportation to neighbouring countries. Kien Giang is the second province to deploy the education support programme. The programme has already been successfully implemented in Binh Dinh Province. The course lasts for six months, with places for 43 participants, all of whom are young officers. Over the coming months, BIDV will begin running the course in Can Tho, Quang Ngai, Nghe An, Ha Tinh and Quang Binh provinces. To implement the programme

Mr. Tran Phuong, BIDV Senior Excecutive Vice President attended the course opening ceremony in Kien Giang province

successfully and effectively, BIDV is cooperating with Hanoi National University as well as relevant experts to provide training courses on international economics, foreign languages, history, tradition and culture. The programme aims to help young officials to gain knowledge of international economic integration and develop an appropriate mindset for working in this field to support their roles in the workplace, particularly knowledge about WTO opportunities, FTAs, TPP and AEC. According to Mai Van Huynh, vice chairman of Kien Giang People’s Committee, graduates from the course

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will form the nucleus to expand the province’s educational movement, contributing to Kien Giang’s general development as well as global integration. Mr. Tran Phuong, Senior Executive Vice President of BIDV confirmed that BIDV has decided to renew its funding for education. As well as sponsoring education in poor and remote areas, BIDV will also focus on education for people under 35 in key areas that hold potential for supporting integration. Rather than providing capital, BIDV will sponsor knowledge courses through the cooperation program with provinces and education organisations.