BIDV Review 09

A Newsletter of Bank for Investment and Development of Vietnam JSC

Steps forward in logistics development

BIDV’S POSITIVE RESULTS IN Q3

Issue No. 9

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Oct 2015

Phan Thiet beach, Binh Thuan province, Vietnam

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 September 2015, BIDV’s total assets were VND786 trillion (USD35.5 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 BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC

QUACH HUNG HIEP Senior Executive Vice President EDITORIAL BOARD BRANDING AND PUBLIC RELATIONS DEPARTMENT HEAD OFFICE: BIDV Tower, 35 Hang Voi str., Hoan Kiem dist., Hanoi, Vietnam Tel: (+84) 4 22205544 Fax: (+84) 4 22225316 Contact center: 19009247 – (+84) 4 22200588 Email: bidvreview@bidv.com.vn www.facebook.com/BIDVbankvietnam 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

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Dear readers, n October BIDV maintained stable and positive business growth, with profit before tax reaching VND5,535 billion (USD248 million), an increase of nearly 25 percent over the same period last year.

As well as significant business results, the bank held a number of important meetings with international leaders and partners.

In October, the President of the Republic of the Union of Myanmar U Thein Sein received Mr. Tran Bac Ha, Chairman of Association of Vietnamese Investors in Myanmar (AVIM) and Chairman of BIDV and other BIDV leaders in the capital of Nay Pyi Taw, Myanmar.

BIDV also had meetings with Governor of Moscow Province, Russian Federation, with Mr. Prem Watsa, Chairman and CEO of Fairfax Financial Holdings Limited and his delegation and with Mr. Akira Ito, Senior Managing Director, Japan’s Shinkin Central Bank to foster the relationships with them.

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BIDV continues to be the co-organiser of seminars and conferences on the Vietnamese economy including seminars on logistics, textile and garment industry, as well as Vietnamese business environment for 2016. BIDV is also the main sponsor for the international conference Vietnam Global Investment Forum held by Euromoney magazine and a forum on Vietnam’s processing and manufacturing, both of which have attracted the attention of foreign experts and organisations.

BIDV has continued to support children in mountainous areas of Vietnam, encouraging and assisting them in their studying. The bank also sponsored VND2 billion (USD90,000) to finance heart operations for disadvantaged children.

Vietnam boasts many places of outstanding beauty for tourists to explore. Our feature articles on Hue City and Ba Vi National Park and accompanying stunning photography provide a taste of some of Vietnam’s top tourist attractions.

contents

International investment 4. Hopes for Vietnamese enterprises in Myanmar

Partners 21. BIDV finances cement project in Ha Nam 22. Cementing ties with Japanese partner

6. Surpassing targets 8. Russian businesses open to new ventures

23. Preparation for a new footprint 24. BIDV MetLife’s new foothold in the South

BIDV highlights 9. Positive results for BIDV in Q3

10. Governor of Moscow Province visits BIDV 11. Global forum for businesses 12. Steps forward in logistics development 14. Supporting integration in the garment industry 16. Bond market highlights 17. BIDV senior executive elected new VBMA chair 18. A helping hand for sustainable agricultural

25. Strengthening strategic partnership with Fairfax

transformation

26. BIDV finances biomass power project 27. Customers at the center 27. Sharing experiences with Cambodia Ministry 20. New arm in international trust fund

of Finance

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contents

Market movements 28. Buoyant ASEAN economies

Products & Services 37. The companion I choose 37. BIDV Big Smile 38. Pioneering in social housing loans 38. Safe and convenient international transfers 39. Earn cash whilst shopping at Vinmart 39. Cash gifts with BIC Lifestyle 40. A city steeped in history

30. High expectations for 2015 32. Vietnam leading in economic recovery and growth

42. Romance and nature in every step

34. Vietnam rising in global value chain CSR 44. Educational supplies for mountainous children 46. New hope for children with heart conditions

36. Vietnam climbing in rank 36. 90 percent of NPLs settled

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international investment

Phan Linh

L-R: AVIM/BIDV Chairman Tran Bac Ha (6th) and Myanmar President Thein Sein (7th) in Nay Pyi Taw, Myanmar

Hopes for Vietnamese enterprises in Myanmar The President of the Republic of the Union of Myanmar U Thein Sein met with Mr. Tran Bac Ha, Chairman of Association of Vietnamese Investors in Myanmar (AVIM) and Chairman of BIDV in Nay Pyi Taw, Myanmar in October to discuss future business relations between the two countries.

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epresentatives of Myanmar’s Minister of President Office, the Myanmar Ministry of Information and the Central Bank of Myanmar, as well as Mr. Pham Thanh Dung, Vietnamese Ambassador to Myanmar and Mr. Doan Nguyen Duc, Chairman of Hoang Anh Gia Lai Group, AVIM member were in attendance.

Cementing business connections in Myanmar As part of the meeting, Ambassador Pham Thanh Dung submitted a Diplomatic Note from the Prime Minister of the Socialist Republic of Vietnam to President U Thein Sein.

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This note highlighted the successful relations between Vietnam and Myanmar and the good results seen from economic cooperation, including trade, investment and services between the two countries. The Vietnamese Prime Minister also emphasised a proposal to the Government of Myanmar to consider licensing Vietnamese banks to operate in Myanmar.

Mr. Tran Bac Ha, Chairman of AVIM, briefed the President on the positive results of the socio-economic development and sustainable growth of Vietnam and the strong economic cooperation from investment,

international investment

trade and tourism between the two countries. The AVIM chairman affirmed that the Vietnamese business community has identified Myanmar as an important new market and has a vested interest in conducting long-term business in Myanmar.

The AVIM Chairman also reported on the difficulties seen in some projects, including PVEP’s oil and gas exploration and exploitation, Viettel’s telecom, VietJetAir's domestic flights, as well as in the proposal on organising a tourism development cooperation forum themed “Four countries, one destination” between Cambodia, Laos, Myanmar and Vietnam.

The AVIM association reported that import-export turnover between the two countries increased by thirty percent and Vietnam was ranked eighth amongst investors in Myanmar, with a turnover of USD688 million.

However, the turnover showed signs of decline in 2015. During the first nine months of 2015, there was no FDI registered by Vietnam. Trade relations decreased by nearly thirteen percent, primarily due to Vietnamese banks not yet being licensed to establish their banks in Myanmar, leading to a shortage of payments and investment capital to Vietnamese enterprises operating in Myanmar.

Expectations for effective business Mr U Thein Sein responded positively and stressed that Myanmar appreciates the friendly relations and cooperation between Vietnam and Myanmar, with particular regard to the fruitful cooperation between the two countries in terms of economy and trade in recent years. He expressed his hopes for potential cooperation between Vietnam and Myanmar in trade areas such as livestock, agriculture and industrial crops as well as in Vietnam’s strong products in agriculture and seafood.

The President addressed the obstacles encountered by Vietnamese enterprises in an open manner as well as directing his ministries to support as necessary.

The President showed a particular interest and willingness to obtain more specific information about tourism

The AVIM/BIDV chairman officially reported to the President that BIDV has now fully met all requirements to open its branch in Myanmar and the bank has made good preparations for finance, investment and technology.

The branch is ready to begin operating immediately upon receiving the license and it is hoped the licence will be in place by 2016.

promotion forums in the last five years to direct his ministries for future participation.

The President commented upon the significant positive role of BIDV and its presences in Myanmar, including the BIDV representative office, BIC and BMF – a microfinance joint venture between BIDV and its Myanmar partner- as well as BIDV’s commitment to supporting Myanmar's financial markets. The President further instructed his ministers to prioritise licensing BIDV operations in 2016.

The President once again welcomed the activities of AVIM/BIDV in Myanmar and expressed his hopes that AVIM/ BIDV activities will continue to make greater contributions to Vietnamese businesses’ activities in Myanmar, further contributing to the sustainable relationship between the two countries

Yangon, Myanmar

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international investment

Le ChamPa

Surpassing targets

In early October LaoVietBank (LVB) held a business meeting in Vientiane, Laos to review their business performance over the first nine months of the year and set plans for the remainder of the year.

Significant development More than 400 staff of the bank attended the meeting and gave input on setting and implementing solution focused plans.

Having overcome difficulties in the macroeconomy, LVB was assessed to have had significant growth. The bank’s total assets increased by 24 percent compared with the beginning of the year. Deposits rose 30 percent and total outstanding loans accelerated by 31 percent. Other criteria such as net service income and pre-tax profit exceeded the year plan. LVB’s position in the Laos market was cemented. It is expected that by the year-end, LVB will have successfully surpassed its business targets for the year.

been able to borrow on the foreign capital market. This is also the most significant development of LVB following two decades of operation, marking the comprehensive change for the system to integrate and operate in accordance with international practice.

Mr. Tran Luc Lang, Chairman of LVB announced that the bank has successfully negotiated and borrowed from Cathay United Bank, a Taiwanese partner. This is the first time a commercial bank in Laos has

As well as these significant achievements, LVB CEO Doan Viet Nam also remarked upon those relating to credit operations, new product implementation (based on Corebanking) and general activities of

Mr. Tran Luc Lang, Chairman of LVB remarks upon LVB's significant achievement

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branches and transaction offices in the system.

Over the coming months, LVB’s focus will be on expanding deposits, increasing its customer base, enhancing services and forex trading activities, expanding its network as well as building up and promoting the bank’s brand.

Eyes on retail banking As a bridge linking Vietnam and Laos,

international investment

Laos Royal Palace

since its inception LVB has focused on corporate customers. However, due to a general shift from wholesale to retail banking, LVB is also developing products and services aimed at individual customers.

For LVB, retail banking has become a priority area in the bank’s business strategy towards modern banking operations. This helps the bank to cement its position and brand in the Lao market.

Retail banking has developed and contributed effectively to the system’s revenue. The number of individual loans has increased significantly with a diversified portfolio of products including home loan, auto loan, overdraft and salary based loans.

In addition, the bank has made the most of opportunities to cross-sell

other services to satisfy the needs of customers as well as optimise returns.

Deposits from residents accounted for sixty percent of total deposits of LVB. Card services grew 250 percent over three years with diversified types such as credit, debit, associated card and My avatar card. In the near future, LVB’s ATMs will start accepting Visa and customers will be able to pay bills through ATMs. Additionally, LVB is providing other services and products such as payroll, domestic and international cash transfer, SMS banking, Direct Banking and Bankplus.

As the leading bank applying modern technology in Laos, LVB’s customers can enjoy many basic products and services as well as associated utilities.

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LVB offer low fees and high deposit rates as well as reasonable lending rates. With nearly 100 ATMs in the system, customers of LVB can make convenient transactions at ATMs located in large commercial centers in Laos. The bank’s ATMs are unique in allowing customers in Vietnam to withdraw Laotian Kip from 28 other banks in Vietnam. Vice versa, customers in Laos can withdraw Vietnamese dong from 28 commercial banks in Vietnam through LVB’s ATMs. While LVB’s success can be attributed in part to technology, LVB’s experienced staff with their deep understanding of products and services and strong commitment to customer service play a significant role. This is why customers will continue to choose LVB to support them in their business and their success.

international investment

Ha i Dang

Russian businesses open to new ventures

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s part of the project RussiaVietnam: New Economies, a Russian business delegation paid a working visit to Vietnam, holding a working session with Vietnam - Russia Joint Venture Bank (VRB) on October 1.

Representatives of Russia’s research institutes, high-tech companies including scientific Atoll Scientific Research Institute, Avrora-M, Dalsroymechanizatsia Corporation, Bipron, Uvicom, Minskmetroproekt, Polius scientific research complexes and Nanoserv were in attendance.

The Russian businesses showed their willingness to open joint venture factories in Vietnam in order to promote cooperation and transfer of high technology. They expressed interest in the banking and financial services to support projects for future operations.

After listening to and answering the questions raised by the enterprises, Mr. Doan Minh Tien, Chief Executive Officer of VRB, affirmed, “As a bridge for trade, economic and investment cooperation between Vietnam and the Russian Federation, VRB is capable and ready to assist Russian businesses in financial and banking services, particularly payment services and guarantees.”

VRB leadership and leaders of Russian hi-tech businesses after the meeting

The working visit to VRB as well as the activities of the Russian business delegation will create momentum for further development and cooperation in technology, finance and banking to support small and medium enterprises of the two countries, contributing to bringing the economic ties between Vietnam and Russia to new heights.

Launched in April 2012 under the auspices of the Russian State Duma, the Russian Federation Council and the Union of Russian Renovation Area Associations, the project is designed to help the two countries’ business

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communities develop technological partnerships and extend integration and technological innovation.

During their time in Vietnam, the delegation met with representatives from the Vietnamese National Assembly’s Committee for Science, Technology and Environment; the Ministry of Planning and Investment, the Ministry of Health as well as holding working sessions with companies under the Vietnam Association of Small and Medium Enterprises.

BIDV Highlights

P huong Th ao

In the first 9 months of 2015, BIDV was the leading bank amongst commercial banks in terms of total assets

Positive results for BIDV in Q3

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IDV recently reported its business performance for the first nine months of 2015.

Accordingly BIDV was the leading bank amongst commercial banks in terms of total consolidated assets, standing at VND786 trillion (USD35.5 billion), a 20 percent increase against the end of 2014. Outstanding loans reached VND570 trillion (USD25.5 billion), up 15 percent and the highest in the entire banking sector.

Credit growth was significant, focusing on priority sectors in accordance with the direction of the Government and the State Bank. Credit market share reached 12.9 percent, up 1.3 percent compared with 2014. Deposits grew well and sustainably with deposits mobilised from market one reaching nearly VND625 trillion (USD28 billion),

up 21 percent in the year to date.

BIDV led the market in net service income with a growth of 26 percent against the same period. The service income was less dependent on credit operations but focused on services with technological content, for example payments, cards and e-banking.

In the first three quarters of 2015, BIDV maintained stable business growth with profit before tax reaching VND5,535 billion (USD248 million), an increase of nearly 25 percent over the same period last year, with provisions satisfying regulations. Operational safety indicators were ensured with NPL ratio of below 2 percent. BIDV’s outlook was stable as assessed by the international credit rating firms Moody's and S&P, and BIDV was confirmed to be among the banks with the highest credit rating in Vietnam.

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With continuous innovation, comprehensive and synchronous structuring of operations, professional management and heading the trend, BIDV has become the leading commercial bank in Vietnam, progressively shaping the position of a large financial institution in the region.

BIDV also played a proactive and pioneering role in supporting the innovation of the country’s economy.

BIDV strengthened cooperation with international organisations, holding bilateral meetings with 14 international partners at its twentieth anniversary of integration into the global financial market, and signed MOUs with Cathay United Bank (CUB) and ANZ Vietnam.

In November 2015, BIDV will hold important events in the Russian Federation, Japan and Taiwan.

BIDV Highlights

Ha i Anh HAI ANH

A meeting between BIDV and Moscow Province leaders

Governor of Moscow Province visits BIDV

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n the framework of the official visit to Vietnam, Mr. A. Y. Vorobiev, Governor of Moscow Province, Russian Federation paid a working visit to BIDV on October 22. The Russian Ambassador and Counselor of the Russian Embassy in Vietnam, as well as representatives of the Vietnam - Russia Cooperation Committee, Vietnam Union of Friendship Organisations and the Vietnam - Russia Friendship Association were in attendance.

At the meeting, Mr. Tran Bac Ha, BIDV Chairman reported the results of economic cooperation between Vietnam and Russia in general and trade cooperation between BIDV and Russian banks in particular.

Following the policies of both the Vietnamese Government and the Russian Government in bolstering the comprehensive bilateral partnership between the two countries, BIDV

has strengthened its partnerships with Russian financial institutions, implementing and financing projects, promoting trade finance operations with the Russian market. The year 2006 marked a milestone for economic cooperation between both Governments and the Central Banks of the two countries, opening opportunities for cooperation between the two economies. The opening of Vietnam – Russia Joint Venture Bank (VRB), a joint venture between two leading banks of the two countries, BIDV and the Russian Foreign Trade Bank (VTB), was a significant move towards cooperation between the two financial systems.

Currently, BIDV has established correspondent relations with 31 Russian commercial banks, maintaining and promoting cooperation with large foreign banks in Russia in order to assist Vietnamese enterprises in exporting

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goods to Russia. The volume of import payments from BIDV to the Russian market in 2014 was USD142 million, an increase of 26 percent compared with 2013. In Q1-2015 it was USD24 million.

In addition, in order to promote twoway trade and investment cooperation, BIDV collaborated with the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade and associations to successfully organise a series of seminars and forums.

Also at the meeting, BIDV presented a report with suggestions for organising events in November in Moscow including a forum on promoting trade cooperation and bilateral payment; a seminar on global Vietnamese entrepreneurs; a Vietnamese quality products fair as well as plans to implement a light industrial zone construction project in the province of Moscow.

BIDV Highlights

AN NHAN

Global forum for businesses

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he Vietnamese Ministry of Planning and Investment (MPI) along with the prestigious global magazine Euromoney held a forum in Hanoi entitled Vietnam Global Investment Forum, with BIDV being the main sponsor. The Vietnamese Prime Minister Nguyen Tan Dung attended, delivering a key speech at the forum.

Mr. Tran Phuong, senior executive vice president of BIDV, acted as speaker for the fourth session - SOE Equitisation and Privatisation.

The Euromoney forum was first held in Vietnam in 2007. After years of absence, the MPI and Euromoney once again co-organised the forum, which saw the participation of hundreds of entrepreneurs as well as leading local and regional economists.

Prime Minister Nguyen Tan Dung delivered an important speech, attracting the attention of the participants. The PM painted a picture of the Vietnamese economy over the past five years and the country’s achievements during the 2011-2015 period. Vietnam is one of the few countries to have maintained high growth during this period.

The forum consisted of eight main discussion sessions under eight major topics of Vietnam's economy, including general economic outlook, foreign investment attraction, banking system reform and capital

Mr. Tran Phuong, BIDV SEVP (first, R) at Vietnam Global Investment Forum 2015

market, SOE equitisation, real estate market development and agricultural development.

foreign investors in improving the competitive capacity of enterprises.

As the main sponsor, BIDV joined Euromoney to bring opportunities to local and foreign investors and businessmen and enable them to learn about Vietnam's economy and the potential for economic development in Vietnam.

Euromoney Magazine began publication in 1969, with its headquarters in London.

It focuses on business and finance in the Asia Pacific Region and Latin America.

Its primary audience includes bankers, financial institutions and financial and banking experts in over 100 countries.

Euromoney regularly organises big conferences and economic forums in many countries around the world, through its subsidiary named Euromoney Conferences.

Addressing the forum, the BIDV representative shared the bank’s experience in the equitisation and restructuring of state-owned enterprises as well as the necessity and role of

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BIDV Highlights

Va n Nguye n

Steps forward in

logistics development In the framework of the third Vietnam Logistics Forum themed Solutions to Improve Infrastructure, Facilitate Trade and Improve the Quality of Logistics Service for Import and Export Business, BIDV and Vietnam Logistics Association (VLA) signed a memorandum of understanding on comprehensive cooperation for the 2015-2020 period.

Room for logistics development Along with the strong growth seen in the world economy, the logistics industry plays an increasingly important role, serving as a tool linking activities in the global value chains such as supply, production, distribution and market expansion.

With a volume of USD20-22 billion per year, accounting for 20.9 percent of Vietnam’s GDP, in recent years the logistics industry has made important contributions to the process of goods distribution from producers to consumers and has been the bridge for global trade. As reported in some statistics, the Vietnamese logistics market has seen an average growth rate of 20-24 percent per year.

market demand. Currently, logistics services are limited in the services they provide, only working at certain stages in the huge service chain. Vietnam’s logistics industry has great potential for future growth.

The growth and development of the logistics industry is closely linked to the development of the import and export of goods. According to

According to Assoc. Prof., Dr. Vu Dinh Hoe, in 2014 Vietnam’s logistics industry developed encouragingly.

In line with the ranking given by the World Bank, Vietnam’s logistics performance index (LPI) reached 3.5/5 points, and ranked 48th in the world LPI index, up five places from 2013. Currently there are about 1,200 logistics businesses in Vietnam yet they only meet 25 percent of the

Deputy Minister of Industry and Trade Tran Tuan Anh, Vietnam’s total import-export turnover in 2014 reached USD298 billion, an increase of 12.8 percent from 2013.

Vietnam has seen trade surplus for the fourth consecutive year. Mr. Tuan Anh confirmed that through the strong development of importexport activities in recent years, the logistics industry has become an important player in international trade and is attracting the interest of the international community.

Opportunities for tapping potential As stated in the MoU, BIDV and VLA

Logistics industry has become an important player in international trade

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BIDV Highlights

Mr. Le Trung Thanh, BIDV SEVP and Mr. Do Xuan Quang, Chairman of VLA sign MoU

will cooperate in all areas relevant to the functions, responsibilities and capabilities of the two sides, focusing on some key content. These include: (i) BIDV’s products and services such as credit, banking products and services (account service, deposits, securities services, bond issuance, payment services, insurance services, retail products and other banking services); (ii) Logistics: VLA will coordinate with BIDV to offer preferential policies to clients introduced by BIDV in using the logistics service of the VLA members and also VLA will introduce its members to BIDV; (iii) Communications and brand development: The two sides will coordinate to update and exchange information between Vietnam’s logistics business communities and BIDV. Mr. Le Trung Thanh, Senior Executive Vice President of BIDV, said: “Vietnam's logistics industry has faced many challenges in human resources, training, technology, governance and in particular poor infrastructure due to limited investment capital. Therefore, bank credit plays a significant role

in supporting the production and business activities of the enterprises, contributing to concentrated production and investment capital to help businesses improve the efficiency of capital, thereby enhancing the competitiveness of the logistics businesses”.

As the leading commercial bank in funding important economic sectors including logistics, BIDV aims to meet the capital needs of businesses in this sector. In recent years, in addition to providing working capital for logistics businesses, BIDV has provided medium and long-term financing for many investment projects, including transport vehicles, warehouses, and seaports, as well as contributing to the expansion and upgrading of logistics infrastructure. These have included large-scale projects such as the container terminal construction projects of Tan Cang Quy Nhon Company, Gemadept Dung Quat International Port of Gemadept Dung Quat Company, Tam Hiep seaport project in Quang Nam of Chu Lai

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Truong Hai port company and the aircraft procurement project of VietJetAir. Along with financing logistics businesses, BIDV also supported the provision of products and services to the import and export industry. BIDV is one of the few banks in Vietnam to provide a full range of trade financing products and end-to-end packages tailored to customer needs. BIDV is experienced in handling import transactions of large value with complex delivery conditions, including contract consultancy, payment method advisory, credit for export and import payments and guarantees related to forex contracts in accordance with standards and professionalism.

BIDV strives to constantly improve its banking products and services. In an effort to provide all-in-one packages to customers, BIDV offers diversified products and services, ranging from retail banking products to securities services such as issuance advisory, listing consultancy and book-running.

BIDV Highlights

Ho a i Linh

Supporting integration

in the garment industry

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n September 30 this year BIDV held a seminar entitled “Textile and Garments – Opportunities and Challenges Amid Integration” in collaboration with Vietnam National Textile Garment Group (Vinatex). The forum aimed to analyse opportunities and challenges and propose solutions to the garment industry for global integration.

BIDV has some important customers in the field of garments and textiles, and the bank’s operations in this industry have improved significantly in recent years. BIDV’s credit market share ranked second amongst the top fifty leading enterprises of textile exports.

The bank’s outstanding loans for the textile industry as of the end of 2014 reached VND7,168 billion (USD310 million), up 44.5 percent compared with 2013. This is the highest growth rate compared to other industries with high export volume such as fisheries, timber and natural rubber.

Recognising the potential for development in the textile industry in the context of integration, BIDV has prioritised increasing its market share in this industry. The bank reduced its lending rate and streamlined approval procedures to support customers in their production and business activities, thereby increasing the bank’s outstanding loans to customers as well as access to the bank’s services.

Currently, BIDV provides a full range of products and services to textile businesses including credit products, trade finance, international payments, forex trading, derivatives, payment, cash management and e-banking.

BIDV is not only the leading bank providing credit to businesses operating in the textile and garment industry but also actively provides consultancy, offering long term solutions to solve problems and developing financial strategies for the development of the textile industry in

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the context of integration.

Addressing the seminar, Mr. Tran Bac Ha, BIDV chairman, analysed and evaluated the impact of free trade agreements (FTAs) on the Vietnamese economy as well as the textiles and garments industry. Mr. Ha commented that by joining FTAs, Vietnamese garment producers can take advantage of export tax incentives, thus increasing the competitive capacity of Vietnamese products on international markets. There will be more opportunities for local firms to increase their investment capital, capture more of the local market share, and restructure their businesses towards international standards, enhancing competitive capacity and ensuring sustainable development.

BIDV Highlights

BIDV Chairman Tran Bac Ha speaks at the seminar

Mr. Tran Quang Nghi, Vinatex chairman said that in the coming time, Vietnam will integrate more fully with a series of multilateral and bilateral trade agreements being concluded, bringing opportunities for the garment and textile industry to expand their export market. The pressure to complete the supply chain, improve competitiveness and gradually reduce the proportion of raw materials imported from China is large, and BIDV’s financial support will help enterprises under Vinatex to implement garment investment projects more effectively.

Currently, many enterprises - mostly FDI - have started looking to invest in the production of source materials such as fabric, weaving and dyeing. If local firms do not actively seize these

opportunities, they may gradually lose their advantage in their local market.

Representatives from textile and garment enterprises agreed that besides the opportunities, new challenges also exist. Weak competitive capacity is the first challenge. Most Vietnamese garment businesses are of small to medium size while foreign rivals have better management capacity and larger scale, leading to severe competition in the industry.

Barriers to integration exist, such as the requirements to improve production capacity to meet quality; environment and labor safety standards; requirements to establish and maintain a local favorable investment environment; stable sources of materials; requirements

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to improve laborers capacity and qualifications; as well as infrastructure issues such as environmental impact, traffic systems, transportation and logistics services, trade and finance.

The seminar is an important step for the textile and garment industry to develop practical and efficient solutions to its development for global integration.

Since early 2014, BIDV signed a MoU worth USD600 with Vinatex for the 20142016 period. The group’s members outstanding loans at BIDV as of the end of 2014 were VND1,080 billion (over USD48 million).

BIDV Highlights

MINH TUE

Bond market highlights

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ietnam Bond Market Association (VBMA) reported that in September five government bond auctions in the primary market and the State Treasury raised VND2,503 billion (USD112 million) out of VND15,000 billion (USD671 million) offered. The offering to winning ratio dropped to 16.7 percent from 30.0 percent last month.

The winning interest rate increased significantly in all tenors compared to last month.

According to the Ministry of Finance, in the first nine months of this year, the State Treasury raised VND127,473 billion (USD5.7 billion) of government bonds (excluding VND51,130 billion (USD2.3 billion) of treasury bills issued and maturing in 2015), reaching 51 percent of the target set for the year.

Furthermore, they reported that in Q3/2015, financial and monetary markets saw unfavourable developments in capital mobilisation to the state budget, due to the influence of the Chinese yuan devaluation, making regional currencies including VND depreciate.

At the end of September, the market share of government bonds dropped slightly in terms of total bond outstanding value to 77.0 percent from 77.05 percent last month, or VND509,313 billion (USD22.8 billion). This was closely followed by government-guaranteed bonds, at 19.33 percent or VND127,846 billion (USD5.7 billion), and municipal bonds at 3.67 percent or VND24,260 billion (USD1.1 billion).

In the secondary market, the total bond trading volume in September was VND66,747 billion (USD3 billion), seeing virtually no change since August. Outright trading volume was VND39,407 billion (USD1.76 billion), accounting for 59.04 percent of total

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trading. Government bonds trading volume was VND56,941 billion (USD2.5 billion), accounting for 85.31 percent of total trading.

Data from the VBMA Market Makers Chatroom indicated that government

BIDV Highlights

MAI ANH

BIDV senior executive elected new VBMA chair T

he Executive Committee of the Vietnam Bond Market Association (VBMA) held a meeting in August this year to elect new members as well as a new chairman. Mr. Quach Hung Hiep, BIDV Senior Executive Vice President, was elected to the position of chairman of the association, receiving 100 percent of the votes, and replaces Mr. Hoang Huy Ha – the preceding VBMA Chairman and former BIDV board member.

established in 2009 with the aim of promoting the effective development of Vietnam’s bond market. The association has 56 members including commercial banks, securities companies, insurance firms, fund management companies, financial companies as well as some other institutions.

In total 21 members of VBMA’s Executive Committee were present, representing 56 members of the association.

The members of the Executive Committee will serve for a term of three years. The election was in compliance with the charter of the association as well as the provisions of law.

bond yield fixing at the end of September did not change significantly compared with August. Specifically: -7.7 bps with 1-year bond, +7.7 bps in 2-year bond, +27.6 bps in 3-year bond, +0.3 bps in 5-year bond, +4 bps in 7-year bond and +4.5 bps in 10-year bond.

The new chairman of the association, Mr. Quach Hung Hiep commented, “I am greatly honoured to represent BIDV by taking up the position of chairman of the association. I will continue to join hands with the executive board members to continue the work that the association has implemented under the leadership of Mr. Hoang Huy Ha”.

Vietnam Bond Market Association (VBMA) was Mr. Quach Hung Hiep, SEVP of BIDV, VBMA Chairman

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BIDV Highlights

Tr a n Anh Th u

A helping hand for sustainable agricultural transformation

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hanks to its successes in ODA project implementation, in particular the Rural Finance Project of the World Bank, BIDV was assigned to be the wholesale bank of the Vietnam Sustainable Agriculture Transformation Project (VnSAT).

Bringing new life to farmers VnSAT, which is worth USD238 million, is one of the four new ODA projects to have been signed between the Government of Vietnam and the World Bank during the visit of Party General Secretary Nguyen Phu Trong to the United States of America last July. This project specifically supported implementation of the new agenda in two subsectors: high value rice production in the Mekong Delta for export and coffee in the Central Highlands.

A further feature of this project is the application of wholesale banking funding. BIDV was chosen by the World Bank, the State Bank of Vietnam and ministries and related agencies to be the project’s wholesale bank.

BIDV will become the managing bank to disburse USD105 million from VnSAT through selected retail banks.

This model has been successfully applied by BIDV when implementing Rural Finance projects from 1995 up until now. The Rural Finance Project has been the first ODA project to

It is expected that 140,000 farmers in the Mekong Delta will be able to access modern and updated technology, helping increase the productivity per hectare by around thirty percent and increasing the region’s value by USD4060 million per year.

In the Central Highlands, approximately 63,000 farmers are eligible to apply for sustainable cultivation thanks to the project. It is expected that the region’s income will increase by twenty percent and its value climb by USDD250 million over five years of implementation.

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be implemented based on wholesale banking funding and BIDV has been the sole bank in the system to take part as a wholesale bank.

This model will help spread risk and diversify the beneficiaries of projects, encourage banking competition in rural areas, enable beneficiaries - the farmers and agriculture enterprises to have opportunities to choose the most effective services.

The first steps

BIDV Highlights

D o Nhu

Successful investment for farmers

R

ural Finance Projects have been operating for twenty years now, and the number of farmers joining the schemes and benefiting from a more profitable production model is increasing.

With the thorough preparation and the close coordination among related parties (World Bank, State Bank of Vietnam, implementation agencies), VnSAT is expected to contribute effectively to the agriculture and rural development, poverty reduction and hunger elimination, to create more jobs and improve farmer living conditions.

The project took effect in October 2015 and will be withdrawn by World Bank in the next 5 years, then BIDV

will continue to manage the revolving funds in 20 years.

The World Bank and Vietnam Ministry of Agriculture & Rural Development have recently coordinated to organize a technical conference on VnSAT implementation. The conference has attracted the attentions of many experts and provided information about necessary steps for the project’s effective operation.

The World Bank funded Rural Finance Projects Package (RFP) began in 1996 and is planned to continue until 2033. The project has brought medium and long-term capital for rural and agricultural development in Vietnam. BIDV was the sole bank in Vietnam to be assigned as the wholesale bank for the project.

One such farmer to benefit is Cao Van Da, owner of a small farm in Quang Nam Province. Before receiving loans from the project, his farm had only four workers and reaped an average income of VND120 million/year (USD5,400).

Strongly motivated to develop his farm, Da borrowed VND2.5 billion (USD112,00) from the project’s lending scheme on a 36-month term. With more capital, Da was able to invest in a farm and waste environmental settlement system. Da has since expanded his business to include three farms with a total of fourteen workers, with each farm having 12,000 chickens, bringing him an average income of VND600 million (USD26,900) per year. Thanks to this success, Da’s children now have access to a better education and Da has upgraded his house, purchased better vehicles, and invested further in order to develop a sustainable business.

VnSAT is expected to contribute effectively to the agriculture and rural development

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BIDV Highlights

An Nam

New arm in

international trust fund

O

n October 20 this year BIDV announced the establishment of its International Trust Fund Department as well as the new appointments it had made. BIDV Chairman Tran Bac Ha, Board member Phan Thi Chinh, and senior executives of the bank were in attendance.

The International Trust Fund Department comes under the Wholesale Banking Division. It is responsible for advising and assisting the bank’s management team in developing and implementing strategies and action plans on mobilisation and management of foreign trust funds, and establishing, maintaining and developing external relationships with donors, local

ministries and corporate clients with relationships in foreign trusts with BIDV. The department will also act as the focal point for seeking, mobilising, deploying and managing the bank’s foreign trust funds.

According to Mr. Tran Bac Ha, Chairman of BIDV, the bank’s fiduciary operations began twenty years ago.

The establishment of the new unit aims to enable specialised and centralised activities in the midst of fierce competition while private commercial banks are also allowed to participate in this field. The department will also meet requirements for the mobilisation and use of ODA. Mr. Tran Bac Ha hopes that the International Trust Fund will operate vigorously and

sustainably in terms of scale, market share and efficiency, contributing to the improved reputation of the bank on the international stage.

BIDV is one of Vietnam’s leading commercial banks assigned to serve major projects involving trust funds from foreign governments including France, Germany and Switzerland as well as international financial institutions like the World Bank, ADB, NIB and EIB. Since 2002, BIDV has been entrusted by the Government of Vietnam to act as the lead bank for three Rural Finance Projects - I, II and III - funded by the World Bank. The World Bank assessed Vietnam as the most successful country in the world to deploy the model of rural finance projects.

Staff of the International Trust Fund Department and BIDV leaders

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partners

Mai Tuan

Representatives of BIDV and Thanh Thang Group sign the contract

BIDV finances cement project in Ha Nam

O

n October 21, BIDV and Thanh Thang Group signed a credit contract to finance the Line Two project of Thanh Thang Cement Plant. The project has a capacity of 2.3 million tons of cement per year.

The project is situated in Thanh Liem District, Ha Nam Province and has a capacity of 6,000 tons of clinker per day (equivalent to 2.3 million tons of cement per year), with total investment of VND4,893 billion (USD219 million).

This project is a key investment and is listed in Vietnam’s plan for the development of the cement industry for the 2011-2020 period with vision to 2030, as approved by the Prime Minister.

The project employs cutting-edge technology and equipment provided by the leading cement manufacturers

in the European Union. Automated control and testing systems with high accuracy allow expanded scope of use of fuel, saving energy whilst creating quality products with high stability under international standards and ensuring safety, industrial hygiene and environmental protection.

Addressing the ceremony, Mr. Tran Bac Ha, BIDV Chairman commented: �Thanh Thang Group mainly focuses on the fields of construction, property investment and trading, and deep seaports. The investment in the project in Ha Nam Province is in line with the plan for development of the cement industry in Vietnam. BIDV is committed to begin disbursing funds as soon as the credit contract is signed.

We have requested that the developer implements items and ensures the project is quickly put into operation,

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contributing to a shift in economic structure as well as to the socioeconomic development of the locality.

Mr. Ha also proposed that Ha Nam Province and its relevant departments and agencies should support the completion of infrastructure systems and ancillary works, and create the conditions for the plant to be completed and begin operating as soon as possible.

BIDV has already financed investment projects in Ha Nam Province, including others in the cement production industry. These include But Son Cement Plant and The Visai Cement Plant, both of which have two lines, each with a capacity of three million tons per year; and Xuan Thanh Cement Plant - Phase II, which has a capacity of 4.5 million tons per year.

partners

VAN TRAN

Cementing ties

with Japanese partner

A

meeting held on October 21 at the BIDV headquarters in the presence of Chief Executive Officer of BIDV Phan Duc Tu and Mr. Akira Ito - Senior Managing Director, Japan-based Shinkin Central Bank (SCB) cemented the relationship between the two banks. Mr. Vuong Thanh Long - Head of BIDV Japan Desk and Mr. Masahiro Takemoto, SCB secondee to BIDV also attended the meeting.

The leaders of the two banks exchanged up-to-date information on the cooperation situation of the two parties. Mr. Phan Duc Tu recognised the effective cooperation results two years on from the signing of the MOU between the two banks, particularly after the sending of SCB secondee to BIDV. Mr. Akira Ito (L), Senior Managing Director, SCB and Mr. Phan Duc Tu, CEO, BIDV

As reported at the meeting, the secondee coordinated to develop BIDV’s customer base and supported BIDV in its marketing and image promotion, serving as a bridge for communication between BIDV and SCB and other Shinkin banks. BIDV successfully concluded its twenty first MOU with Amagasaki Shinkin Bank in August 2015. BIDV and SCB hope to continue to further promote the cooperation in the future. Mr. Akira Ito recognised and appreciated the fruitful performance and contributions of the Japan Desk to the Japanese enterprises.

Previously, in December 2013, BIDV and SCB co-organised a workshop themed Cooperation Between Banks and Enterprises to promote Japanese investment in Vietnam.

Founded in 1950, SCB is the central bank for shinkin banks - which currently number 267- operating as a cooperative financial institution whose membership consists of all shinkin banks nationwide. The SCB had total assets of JPY35.5 thousand billion, equivalent to USD289 billion. The SCB

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plays the dual role of a central bank for shinkin banks and an independent financial institution. The SCB’s funds are raised mostly through deposits from shinkin banks and the issuance of debentures. The SCB invests these funds in securities and lends them out as loans, using the resulting profit to support the activities of shinkin banks.

The SCB is one of Japan’s leading financial institutions. Currently, the SCB has about 270 corporate customers operating in the Vietnamese market.

partners

Phuong Th ao

Taiwan ranked fifth among Vietnam’s major trade partners

Preparation for

a new footprint O

n October 12 BIDV Chairman Tran Bac Ha met with Mr. Huang Chih Peng, Chief of Taipei Economic and Cultural Office in Hanoi. BIDV Management Board members as well as staff of the Taipei Economic and Cultural Office in Hanoi attended the meeting held in the BIDV headquarters in Hanoi.

Mr. Tran Bac Ha and Mr. Huang Chih Peng discussed a plan to cooperate in organising a Vietnam – Taiwan economic cooperation forum and a ceremony to present the operating license and opening of a BIDV Representative Office in Taiwan in the near future. These will be notable

events, marking a new milestone in economic relations between Vietnam and Taiwan. On behalf of the Taipei Economic and Cultural Office in Hanoi, Mr. Huang Chih Peng noted their appreciation of the activities of BIDV and said the office would render its best efforts to coordinate with and support the bank in the successful organisation of the events.

BIDV will be the first Vietnamese bank to open a representative office in Taiwan. Currently the bank has presences in Cambodia, Laos, Myanmar, the Czech Republic and Russia, amongst other countries. With the opening of a representative office in Taiwan, BIDV

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has affirmed its pioneering position in economic relations and integration with regional countries.

According to the Taiwan Customs Administration, in the first 8 months of 2015, total two-way export and import turnover between Vietnam and Taiwan reached nearly USD8.1 billion, down 3.1 percent over the same period last year.

In which, Vietnam’s exports to Taiwan amounted to USD1.7 billion, an increase of 0.4% while imports from Taiwan reached USD6.4 billion, down 4 percent.

Taiwan ranked fifth among Vietnam’s major trade partners.

partners

HOAI THU

BIDV MetLife leaders at the opening ceremony

BIDV MetLife’s

new foothold in the South

I

n September this year BIDV MetLife Life Insurance Limited Liability Company officially opened its branch in Ho Chi Minh City, expanding its network in the South. This marks a milestone for BIDV MetLife more than one year since its establishment. The opening of the branch demonstrates BIDV MetLife’s commitment to bringing the most advanced insurance products and services to Vietnam and protecting its customers in every stage of life.

Since its inception in 2014, BIDV MetLife has become one of the fastest growing life insurance firms in the market, with USD1-million-revenue after 33 weeks of sales. Up until now, BIDV MetLife has launched sales at

48 BIDV branches in Hanoi and Ho Chi Minh city and issued over 18,000 insurance policies. The successes over the past year demonstrate the effectiveness of bancassurance trends as well as the growth potential of BIDV MetLife in Vietnam.

Mr. Dustin Ball, Chief Executive Officer, BIDV MetLife, said: “The opening of the branch in Ho Chi Minh City is an important step in the business expansion of BIDV MetLife to better serve its customers. Vietnam is one of the markets with the highest growth rate of life insurance in Asia. With an annual economic growth of six percent and per capita income of USD2,000 per year, individual needs for financial

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insurance will increase. It is predicted that the life insurance industry will grow by around fifteen percent over the next five years. This is an opportunity for BIDV MetLife to realise its goal of becoming one of the leading firms in providing bancassurance and maintaining sustainable development”.

The new branch is located at Green Power, 35 Ton Duc Thang Street, District 1, HCM City. The establishment of the branch is part of the company’s strategy for developing partnerships with BIDV across the country. The new branch will be the focal point for supporting future business development, along with BIDV’s branches in the South.

partners

Hieu Cong

Strengthening strategic partnership with Fairfax

O

n October 23 this year, Mr. Prem Watsa, Chairman and CEO of Fairfax Financial Holdings Limited (Fairfax), paid a working visit to Vietnam after the closing of the recently announced transaction in which Fairfax acquired approximately 35% of the outstanding shares of BIDV Insurance Corporation (BIC).

The visit was intended to strengthen and further promote the strategic partnership with BIC and its other largest shareholder, the Bank for Investment and Development (BIDV).

At the meeting with Mr. Tran Bac Ha, Chairman of BIDV, and other senior management of BIDV and BIC, Mr. Prem Watsa expressed his admiration for the achievements of BIDV and BIC

Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management. Fairfax was founded in 1985 by Mr. Prem Watsa and headquartered in Toronto, Canada.

Fairfax shares (FFH) are listed on the Toronto Stock Exchange. Since 1985, Fairfax has compounded book value by over 21% annually. Fairfax has total assets of approximately USD36 billion, revenues in excess of USD10 billion and common shareholders’ equity of in excess of USD8 billion.

Mr. Pham Quang Tung (5th, L-R), BIDV SEVP and Chairman of BIC presents “BIC shareholder certificate” to Fairfax representatives

over the years. Mr. Prem Watsa made his clear expectations for a successful cooperation with BIC, through the commitment to providing the best technical support to BIC for enhancing insurance operations, strengthening risk management and information technology, diversifying distribution channels, and effectively managing their portfolios.

The chairmen of BIDV and Fairfax shared the vision that BIC become a leading international insurance company with professional and profitable operations in the region through the support of its two largest shareholders.

Mr. Pham Quang Tung, BIDV Senior

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Executive Vice President and Chairman of BIC, commented: "With Fairfax’s experience and capacity, particularly in Asia, we expect BIC will enter into a new development stage and become a leading international insurance company."

Earlier that day, Mr. Prem Wats met with the Vietnamese Minister of Finance Dinh Tien Dung. Fairfax greatly appreciated the support of the Ministry in successfully completing the transaction with BIC. The Minister also provided a brief overview of the macroeconomic situation and financial markets in Vietnam, including the Ministry’s commitment to promoting sustainable market development.

partners

Linh Hoai

The biomass power project is expected to help solve power shortages during the dry season in Vietnam

BIDV finances biomass power project

B

IDV Quang Ngai branch and Quang Ngai Sugar Joint Stock Company (QNS) signed a credit contract to finance An Khe Biomass Power Plant investment project in Quang Ngai Province. This project has been approved by the Prime Minister to join the national power grid.

Under the contract, BIDV will provide a maximum loan of nearly VND990 billion (~USD44 million) to the Biomass Power Plant, with a loan to investment value of 67 percent (excluding VAT).

The loan term is eleven years and eight months, with a grace period of twenty months during the project construction. BIDV is also providing a full range of banking products and services to support the developer to complete the project on schedule.

An Khe Biomass Power Plant is situated in Thanh An Commune, An Khe Town, Gia Lai Province. The total investment in the project is over VND1,604 billion (around USD72 million), with a maximum design capacity of 85MW. The project is expected to help solve power shortages during the dry season in Vietnam and to meet the rapid load growth in Gia Lai Province as well as neighboring provinces of Binh Dinh, Quang Ngai and Phu Yen. Renewable energy development is a key area identified in Vietnam’s National Energy Development Strategy until 2020 with vision to 2050 and its Strategy for National Electricity Development for the 2011-2020 period with vision to 2030. Biomass power is one of the recommended objectives

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because it is a clean, efficient energy source, employing modern technology.

Electric energy generated from fuel sources such as bagasse, sawdust, rice husks, coffee pulp and straw has the advantage that it creates minimal environmental impact as it uses modern boiler technology and does not involve the use of fossil fuels.

Addressing the signing ceremony, Mr. Phan Duc Tu, Chief Executive Officer of BIDV said: “Given QNS’s capacity to build and operate, BIDV believes that An Khe biomass power plant will be completed quickly and put into operation on schedule, addressing the shortage of power in the region as well as the country and contributing to the socialeconomic development of Vietnam”.

partners

Va n Cuong H u on g Thu

Sharing experiences with Cambodia Ministry of Finance

Customers at the center

O

O

n October 20 this year, BIDV signed with Viettel Group to supply solutions to construct the BIDV Contact Center.

effectively contact customers, respond to their questions and complaints, take care of customers’ needs and develop appropriate products and services.

According to the contract, an overall solution (IPCC.ONE) will be delivered to enhance the quality of the BIDV Contact Center. The contact center will have 150 tellers. The solution integrates both telecommunication and technology. It allows enterprises to create an information center,

According to Mr. Le Trung Thanh, Senior Executive Vice President of BIDV, the modern contact center was created in line with the bank’s customer-centric strategy. The project aims to provide professional products and services to customers through different interactive channels.

n October 6, a working mission led by Mr. Ney Sakai, Director of Financial Markets Department, Cambodia Ministry of Economy and Finance (MEF) worked with BIDV to learn about state credit guarantee for small and medium enterprises.

Mr. Le Trung Thanh, BIDV’s Senior Executive Vice President, Head of BIDV’s SME Banking Department as well as director of BIDV Training School welcomed the valued delegation. At the proposal by the Cambodian MEF, BIDV shared its experiences relating to state credit guarantee for SMEs. These were with regard to the role and characteristics of SMEs in the economy; the operation scheme of state credit guarantee fund; the benefits contributed from credit guarantee funds to SMEs, commercial banks and the economy; the current situation of the credit guarantee market, the guarantee activities at BIDV as well as solutions to develop the state credit guarantee fund.

According to Mr. Ney Sakai, the information and experience shared by BIDV will be helpful for Cambodia’s MEF to establish a Cambodian credit guarantee fund in the future.

BIDV and Viettel representatives sign the contract

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market movements

Viet Dung

Buoyant

ASEAN economies In early October, Word Bank (WB) released its East Asia and Pacific Economic (EAP) Update. According to WB, looking ahead, aggregate growth in the Association of Southeast Asian Nation (ASEAN) economies will be roughly stable at 4.3 percent in 2015, rising to 4.9 percent by 2017, with increasing support from global growth and export demand, particularly from highincome economies.

H

owever, growth in developing EAP is expected to ease, from 6.8 percent in 2014 to 6.5 percent in 2015 and 6.3 percent over 2016–2017. This reflects mainly a moderate slowdown in China.

Cambodia Growth is expected to slightly ease to 6.9 percent in 2015, in a context of sluggish agricultural growth, uncertainty in the tourism sector, and moderate garment exports. A sharper than expected slowdown in the Chinese economy would somewhat dampen growth prospects, mainly due to potentially lower Chinese tourist arrivals, while export dependency is low. Nonetheless, in a context of

limited capital markets, Cambodia would be relatively shielded from financial volatility.

Moderate improvement in the standard of living of urban households will be seen throughout 2015–2016, given the expectations of the economic sectors in which they participate (mainly construction and services). Per capita GDP is expected to reach USD1,145 in 2015, a 5.6 percent increase over 2014.

Agriculture growth will drop on account of the floods, and investment in manufacturing and industry will likely remain slow over the course of the political transition. Inflation in 2015/2016 is projected to increase to 11.3 percent (period average) due to a combination of supply pressures caused by the floods and currency depreciation. Fiscal policy is expected to remain broadly on track, but the current account will come under further pressure due to import demand for post-flood rehabilitation and slowing agricultural exports.

Economic growth is expected to pick up over the medium term, assuming continued progress on economic reforms and a smooth political transition.

Myanmar

Laos

Economic growth in 2015/2016 is expected to moderate to 6.5 percent in real terms, though this is subject to revision as more details come in on the impact of the floods.

The economic outlook for the medium term remains broadly positive.

The fiscal and external balances are expected to improve over the medium term. The fiscal deficit is

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market movements

Poverty in Vietnam is expected to continue to decline

projected to decline to less than 4 percent in FY15/16 and further to around 3.5 percent of GDP in FY16/17 as authorities continue to improve revenue administration and increase excises while consolidating expenditures by continuing tight control over new investment projects and nonessential spending. On the external side, continued FDI inflows to pipeline power projects will keep imports high; however, expanding electricity exports from new plants and low energy prices are expected to narrow the overall deficit.

Vietnam The medium-term outlook for Vietnam is positive on balance but subject to significant downside risks. Growth is expected to be over 6 percent in 2015, underpinned by further recovery in domestic demand, in turn reflecting

more robust private consumption and investment growth. Despite the expansionary monetary policy stance, inflation would remain low due to subdued global conditions and low global energy and food prices. The fiscal deficit is expected to start adjusting through consolidation efforts to avoid further increases in public debt.

The trade balance is projected to turn into a deficit in 2015 due to softer export growth and sustained strong import growth stoked by stronger domestic economic activity. However, robust remittances will keep the current account in surplus, albeit at a much lower level than last year.

Poverty is expected to continue to decline. Extreme poverty (USD1.9 a day, 2011 PPP) is expected to decline from 2.8 percent in 2012 to 1 percent

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in 2017, while the percentage of the population living below USD3.1 a day would fall from 12.3 percent in 2012 to 6.7 percent in 2017. While the strengthening recovery combined with stable macroeconomic conditions is expected to help sustain positive poverty trends, slower agricultural growth may dampen rural income growth and widen the rural-urban income gap. It is also expected that ethnic minorities will account for a growing share of the poor.

BIDV is the most active Vietnamese bank investing overseas, especially the ASEAN countries. Beside other regions, currently the bank has commercial presences in three ASEAN countries including in Laos, Cambodia and Myanmar.

market movements

Thu Trang

High expectations for 2015 Vietnam’s macro economy is expected to continue its growth over the last quarter of this year with GDP expected to reach 6.97.1 percent in the fourth quarter and 6.56-6.66 percent at the year-end. The stock market is benefitting from this economic surge, according to BIDV Securities Company’s forecast.

Accelerated pace Booming real estate, expansion in the construction market as well as recovered domestic demand have all contributed to the growth in the Vietnamese economy. Production growth is more difficult to forecast but it still expected to contribute significantly to GDP. FDI is expected to continue its pace of growth thanks to several free trade agreements (FTAs) in progress as well as the signed Trans-Pacific Partnership (TPP). Because of these FTAs, Vietnam is becoming increasingly attractive to investors as it is better able to compete

in the global market. Garments and textiles, footwear, fishery and wood sectors will benefit most from FTAs, especially TPP and EU-Vietnam free trade agreement (EVFTAs).

According to BIDV Securities Company (BSC) report on Q4/2015 macro economy, as a result of all these trade agreements FDI may accelerate to USD22-24 billion in 2015.

The country’s CPI will remain low at year-end, based on the predictions of this report. Inflation measured in September this year saw little change compared to the same period last year,

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with an increase of only 0.4 percent from the beginning of the year.

A major concern for Vietnam’s macro economy over the last three quarters has been the trade deficit, which could increase to USD7-8 billion by the end of the year. Vietnam’s exports depend greatly on FDI enterprises. However, this sector still imports a significant amount of products and accessories from abroad rather than using Vietnamese made goods.

This trade deficit also impacts the amount of USD available on the domestic market, placing extra burden on the foreign exchange market.

However, this burden is not seen to be of major significance and VND/USD rate is expected to fluctuate around 21,890 – 22,547.

According to BSC, Vietnam’s interest

market movements

Booming real estate has contributed to the growth in the Vietnamese economy

rate is expected to remain at a low level due to low inflation. However, it is still difficult for the State Bank to reduce medium and long-term lending rates.

Positive stock market in short term Vietnam’s macro economy is moving in a different direction from other countries in the region. As Vietnam continues to grow, many other newly emerging countries are struggling.

Economic risk from developing countries is rising due to instability in the Chinese economy. As a result, the Vietnamese stock market holds greater appeal for investors.

BSC forecast that in the short term, the stock market will see positive growth, slowing down in the medium term.

The stock market was bullish in October

due to a successful business period and the effect of the TTP. However, this positive trend is not forecast to continue over the following month due to lack of capital, particularly foreign capital, which is a significant catalyst. The market is expected to stabilise in November and bounce back in December as foreign cash flow and periodical capital from ETF returns. The Vietnamese stock market may fall into the range of 580 points Âą 5 percent at the end of this year.

BSC also put forward their recommendations for the investment strategy for this quarter. With foreign and large scale capital being in shortage, September saw cash flow run mostly into small, basic and low liquidity stocks. Small and very small-cap stocks also have better earning per share than other stock groups. This trend may well continue into the fourth quarter.

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In terms of sectors, stocks groups such as bank, oil & gas, and consumption will still be stock pillars establishing the price level of the market. However, these stock groups might not lead the uptrend due to the foreign cash flow shortage and are likely to remain stable this quarter.

The real estate market is recovering well, with more projects commencing while home sales have been promoted.

The rise of real estate stocks is expected to replace the bullish trend of banking stock at the year-end and into next year.

Thanks to production expansion, stock of export firms such as textiles, footwear, fishery, industrial infrastructure and seaports firms are likely to continue to report growth following the signing of the TPP. Source: BIDV Securities Company.

market movements

Tr a ng Trinh

Vietnam leading

in economic recovery and growth

T

he Vietnamese economy, along with the global economy, is moving in a positive direction during the final months of the year.

However, there are many challenges that will continue to affect the recovery of world economies in 2016.

To provide an overview of the global and Vietnamese economies over the coming year, BIDV’s Training School organised the seminar entitled Analysis and Forecast of the Global and Vietnamese Business Environment in 2016, Providing Solutions to BIDV.

Bumpy recovery for global economy According to Dr. Vo Tri Thanh, Deputy Director of the Central Institute for Economic Management (CIEM), between 2010 and 2014 the global economy faced a difficult recovery period.

Figures from IMF showed that the global economy grew significantly by 5.2 percent in 2010. However, this figure fell sharply to 3.0 percent, then recovered slightly to 3.4 percent in 2014. During the period 2015-2016, the world economy continued to recover but remained weak and unstable.

Currently the global economy faces

Dr. Vo Tri Thanh, Deputy Director of CIEM speaks at the seminar

many risks, including the price shock due to the fall in prices of basic commodity goods. Financial risk and capital flow volatility are closely entwined with China’s crashing stock market, the risk that the Fed may increase interest rates as well as China’s moves to devalue the Yuan.

“The global economy is in a ‘transition period’, in which it needs to reduce

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risks, retain recovery pace, restructure itself, integrate and form better global connections, develop in various sectors and develop more sustainably and creatively,” said Dr. Thanh.

In this somewhat gloomy context, Vietnam is one of the few Asia-Pacific economies retaining its growth.

Experts at the seminar assessed that during the first nine months of this

market movements

Vietnam is one of the few Asia-Pacific economies retaining its growth

year, Vietnam saw the highest growth compared with the previous five years.

This year has also seen the lowest inflation for Vietnam in fourteen years. By the middle of October, credit growth reached eleven percent, and is forecast to reach sixteen percent by the end of the year. The real estate market, which often absorbs a huge amount of the economy’s capital, is also warming up. Real estate inventories by the end of August reduced their losses by eighteen percent compared with the beginning of the year.

Vietnam’s stock market is also the only one amongst Asia Pacific countries to report growth, with an increase of eight percent from the beginning of the year.

Positive outlook for 2016 According to Dr. Can Van Luc, Senior Executive Vice President of BIDV, although Vietnam will surpass many of the economic targets set by the National Assembly earlier this year,

many hurdles must still be overcome in order for better growth to be achieved in 2016.

Non-performing loans (NPL) need to be handled with greater efficiency.

Vietnam has not yet established a debt market to address NPLs. Public investment restructuring has not been clear while state-owned enterprise reform was low. Public debts and state budget deficit have been brought under control but are still at a high level. In addition, the slowdown of China’s economic growth has brought risks to the Vietnamese economy, primarily in its effect on the export turnover of Vietnam’s key industries.

Furthermore, the integration process, whilst expected to bring many benefits to Vietnam, will also cause some pressure and risks to Vietnamese enterprises, due to their lack of international trade experience and risk hedging solutions.

However, experts and participants in the

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seminar were in general agreement that Vietnam could complete all of its socioeconomic targets for 2016. The average annual gross domestic product (GDP) for the next five years is targeted at 6.5-7 percent and 6.7 percent for 2016.

The consumer price index will be below five percent in 2016. The total social investment in 2016 and for the next five years is expected to account for 31 percent of the GDP; and the budget deficit in 2016 will be 4.95 percent of the GDP and 4.8 percent in 2020.

Based on the predictions of Mr. Do Ngoc Quynh, Head of BIDV Treasury and Currency Trading, the foreign exchange market will continue to be the “hot spot” of the economy in 2016. Both the Vietnamese and global foreign exchange market have seen a year of sharp fluctuations. 2016 will be a year of pressure for the State Bank of Vietnam to regain control of the market. The foreign exchange rate issue will present a significant challenge, and needs both thorough calculation and strategic planning.

market movements

Thu Trang

Vietnam rising in global value chain Wider integration has resulted in a greater number of opportunities for Vietnam to participate more deeply in the global value chain. Vietnam is expected to become a global processing and manufacturing (P&M) center over the next twenty years.

in Vietnam, P&M sectors play an important role and continue to be the main drive for economic growth. Mr. Nhan also said that Vietnam still holds advantages in terms of low labour costs but it must be determined how long this advantage will last.

Dr. Can Van Luc, BIDV SEVP speaks at the conference

T

he statement was agreed by delegates at an international conference organised by the Vietnam Fatherland Front (VFF) and the World Bank in Hanoi on October 24.

Global potential According to delegates, many P&M centers in the world are currently following a trend to switch from developed countries to developing ones.

Vietnam is expected to be the ideal choice for multinational P&M corporations throughout the world, as Vietnam has attracted a great deal of cash flow as well as P&M enterprises to its domestic market. Statistically, 63 percent of Vietnam’s exports are processed products and 56 percent of foreign investment is pumped into P&M. President of VFF Central Committee Nguyen Thien Nhan stated that

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Many delegates also agreed that Vietnam is ideally situated on the international trade route, with a suitable location to support the production and export of goods on a large scale. The country has begun actively integrating with global and regional economies. In addition, Vietnam’s production is growing at a relatively stable rate compared to other manufacturing centers in the region.

According to Ms. Victoria Kwakwa, the World Bank Country Director for Vietnam, Vietnam has the potential to become a significant global P&M center. Over the next ten years, in the region of USD90 billion, equivalent to nearly 50 percent of Vietnam’s GDP, will be invested into the field and the

market movements

Yen Phong Industrial Zone - Bac Ninh Province

sector now accounts for 80 percent of total export turnover.

Figures from the State Bank of Vietnam indicate that the manufacturing sector attracted attention from many enterprises, particularly FDI ones. 80 out of 101 countries and territories investing in Vietnam have a presence in the sector. The share of P&M in total business investment is increasing every year, rising from 50 percent in 2011 to 72 percent last year.

Identifying areas for action Whilst the opportunities are clear, Vietnam must focus on certain areas in order to realise its goal.

According to Mr. Tran Duy Dong, Deputy Director of Economic Zone Management Department under the Ministry of Planning and Investment (MPI), Vietnam should identify the focus points to develop the P&M sector, including the key area - that of convenient regions for processing- and key industry.

Dr. Can Van Luc, Senior Executive Vice President of BIDV, identified five key industries for P&M development including textiles and garments, footwear, computer and electronic components, machinery and energy.

These industries account for 50 percent of total exports and generate many jobs for the country.

“In addition, we should not neglect the rights and benefits of the workforce nor environmental protection.

Lessons must be learnt from China’s deteriorating environment,” Mr. Luc emphasised.

According to the World Bank, the challenge that lies ahead is in enhancing the links between FDI and domestic firms. Currently, few domestic firms engage in global markets and their linkage with the FDI sector is very weak. While FDI based manufacturing has been a success story, performance of domestic firms has lagged behind. Vietnam’s manufacturing exports have relatively

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high import content. Only half of the value of Vietnam’s manufacturing export is generated in Vietnam.

Another important factor suggested

by Mr. Luc is that of developing Vietnam’s P&M sector’s labour force and application of technology.

According to the Vietnam General Statistics Office, the percentage of untrained or unskilled workers was 82 percent in 2014. The size and quality of the labour workforce is relatively low, accounting for 10.2 percent of the total workforce; particularly in the P&M sector where this number is only 9 percent, much lower than that of developed countries, at 40-60 percent.

In addition, the standard of technology and science is inadequate to support the development of high-tech manufacturing sectors. Vietnam should also promote the development of a support industry, gradually moving towards a high-tech support industry.

market movements

Thu Trang

Vietnam

climbing in rank

90 percent of NPLs settled

A

ccording to figures from the State Bank Deputy Governor Nguyen Kim Anh, from 2012 to August 2015 credit institutions dealt with VND424.12 trillion (USD19 billion) of non-performing loans (NPLs), accounting for 91.2 percent of the system’s total NPLs recorded in December 2012.

Vietnam Asset Management Company (VAMC) handled 41.3 percent of these. The remaining were solved by credit institutions through urging customers to pay back debts and using loan loss provision.

A

ccording to the World Economic Forum’s Global Competitiveness Index (GCI), Vietnam climbed twelve places to rank 56 out of 140 economies analysed in a survey released in October 2015.

Among the twelve competitiveness categories, Vietnam performed well in ‘market size’, ranking 33rd and ‘labor market efficiency’, ranking 52nd. Vietnam’s performance was seen to be less good in the ‘business sophistication’ pillar, ranking 100/140 and ‘higher education and training’, ranking 95th.

Emerging and Developing Asia has been the world’s fastest-growing region since 2005 and looks set to retain this

status in the medium term. The region now accounts for some thirty percent of global GDP, with China alone accounting for sixteen percent.

Behind Singapore (2nd), the five largest members of the Association of Southeast Asian Nations (ASEAN) - namely Malaysia (18th, up two), Thailand (32nd, down one), Indonesia (37th, down four), the Philippines (47th, up five), and Vietnam (56th, up 12) - all rank in the top half of the overall GCI rankings.

With the exception of Thailand, all five have improved their showing since 2007, most notably the Philippines, which has leapfrogged 17 places.

Although ranked much lower, the three

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The NPL ratio has reduced significantly to less than 3 percent by the end of September.

other ASEAN members - Lao PDR (83rd, up 10), Cambodia (90th, up five), and Myanmar (131st, up three) - have all moved up the ladder.

The top ten most competitive best performers in WEF’s research included Switzerland, Singapore, the United States, Germany, Netherlands, Japan, Hong Kong, Finland, Sweden and the United Kingdom.

products & services

The companion I choose

F

rom September 22 until December 20 this year, BIDV is running a promotion program called The Companion I Choose, worth more than USD11,000. The first 5,000 new individual customers applying for account packages will be eligible for the bonus.

With several diverse product packages, customers from students to entrepreneurs can find the most suitable product to match their needs.

The basic package comes with a ‘harmony’ credit card. The modern

package comes with an international debit or credit card. Both offer free BIDV online access for the first year, and two free months of BSMS and free SMS OTP for customers registering for financial services for the first year.

Three account packages - student, basic and modern - will include an issuance fee waiver and a first-year card annual fee waiver.

Those opting for the modern package will be offered an associated bill payment service and a reduction of 0.1 percent per annum of lending rate.

BIDV Big Smile

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rom October 10, 2015 to January 10, 2016, BIDV will run a program entitled BIDV Big Smile for individual depositors or borrowers.

The total value of gifts being awarded through the program is in the region of VND5 billion (USD224,000).

The program applies to all customers depositing from VND200 million (USD9,000) or borrowing from VND300 million (USD13,500). Customers making transactions through BIDV will receive bonus points and will be informed through email. The bonus points represent the value of gifts customers can receive in each phase of the program.

To encourage customers to participate more actively in the program, BIDV will offer special phases to multiply customers’ bonus points.

The program is in recognition of customers who use BIDV’s products and services and support the bank’s development.

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products & services

Pioneer in social housing loans

B

IDV continues to be the leading commercial bank disbursing the social housing package worth VND30,000 billion (USD1.34 billion). BIDV signed credit contracts with 9,587 individual customers and households among 28,992 eligible customers.

The total amount disbursed reached VND3,403 billion (USD152 million),

accounting for 37.2 percent of the system’s disbursement at VND9,149 billion (USD409 million).

BIDV was committed to disburse VDN4,774 billion (USD213.6 million) to individual and household customers, accounting for 35.5 percent of the system’s figures (VND13,461 billion or USD602 million).

Safe and convenient international transfers

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IDV has launched a program Fast Transfer – Happy Gift, effective from October 15 until December 15, 2015.

With simple and quick procedures, competitive fees and professional staff, customers can benefit from effective and safe international cash transfer services through BIDV. Customers can transfer different currencies including USD, GBP, EUR, AUD, CAD, SGD and HKD. Additionally, customers can purchase foreign currency from BIDV. The maximum value of foreign currency a customer may buy is up to: l USD30,000 or currency equivalent/person/year for overseas study

l USD10,000 or currency equivalent/person/time for medical treatment excluding hospital bills

l USD7,000 or currency equivalent/person/year for overseas family member allowance

From mid-October to midDecember this year, with each international cash transfer transaction made through BIDV, customers will be awarded with bonuses. Customers making transactions with a value of between USD1,000 and 3,000 and over USD3,000 will receive a bonus of VND40,000 and VND70,000, respectively.

Rice City - A social housing project financed by BIDV

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products & services

Ho ng Ngoc

Cash gifts with BIC

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rom October 20 until the end of December this year, BIDV and BIC are coordinating to launch the Instant Gifts promotional programme to motivate customers to buy new or renew existing BIC insurance policies via online Bancas.

Earn cash whilst shopping at Vinmart

F

rom October 17, 2015 until January 3, 2016, BIDV cardholders will be offered cashback of up to 10 percent on purchases of VND500,000 or more made at Vinmart.

The programme is divided into two periods - from October 17 until November 29 and from December 18 to January 3, 2016.

The programme applies to Visa credit cards - Flexi, Precious, Manchester United and Visa Platinum; Mastercard

cards - Vietravel Standard, Vietravel Platinum and MasterCard Platinum; and debit cards - BIDV Ready, BIDV MU debit, BIDV Vietravel debit and BIDV Premier.

BIDV credit cardholders will be entitled to cashback of 10 percent and debit cardholders will receive cashback of 5 percent when purchasing via BIDV’s POS at Vinmart for all bill payments from VND500,000 (USD22.5). Each customer is entitled to a maximum cashback of VND1,000,000 (USD45) per promotion period.

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oct ob e r 2015

Individual customers buying new or renewing BIC Binh An and BIC Home Care via Bancas online during the promotion period, with insurance premiums from VND2 million (USD90), will be entitled to attractive gifts such as supermarket vouchers or the cash equivalent.

Customers with insurance premiums from VND10 million (USD450) will be entitled to cashback of VND1 million (USD45), those with insurance premiums of between VND5 million (USD225) and VND10 million will receive VND500,000 (USD22.5); and customers holding premiums between VND2 million and VND5 million will be eligible for VND300,000 (USD13.5).

These cash gifts will apply to the first customers satisfying the conditions during the promotion period. Contact the nearest branch of BIDV or call 19009247 for more information.

lifestyle

TUE MINH

A city steeped

in history

Main gate of Hue citadel

Situated in central Vietnam on the banks of the Song Huong - ‘Perfume’ River, just a few kilometers inland from the East Sea, 700 kilometers south of the national capital of Hanoi and 1100 kilometers north of Ho Chi Minh City, the city of Hue is steeped in history.

H

ue’s cultural heritage is unique in Vietnam, with many original historical vestiges of the ancient capital city remaining. Hue is also an important center of Buddhism. A great many pagodas constructed more than 300 years ago still stand in Hue and its surrounding villages, as well as hundreds

of temples and pagodas built in the early twentieth century. Hue can be seen as a living museum. Vestiges in Hue’s ancient capital have been classified by the government as precious property and in 1993 Hue was recognised as a World Cultural Heritage Site by UNESCO. Hue owes its charm partly to its location on the Perfume River – picturesque on a clear day, atmospheric in gloomier weather. Restoration work to recover Hue’s royal splendour is ongoing, but today the city is very much a blend of new and old as sleek modern hotels tower over the crumbling century-old Citadel walls.

Imperial Citadel

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The UNESCO World Heritage Site of Hue Citadel was a royal complex that housed the Nguyen lords of Southern Vietnam. Building began on the Citadel in 1805 under Emperor Gia Long and took 27 years to complete, the Royal Citadel housed the Imperial City, where sacred ceremonies took place.

The emperor's family lived in the Forbidden Citadel, access to which remained limited to outsiders.

Hue's Citadel and Imperial City are its main attractions, but a stay here is not complete without visiting the outlying temples and imperial tombs.

Visitors can cycle to the Citadel itself, then along the riverside to Thien Mu Pagoda, back to town for lunch, and

lifestyle

Truong Tien bridge over the Perfume River

then out to the tombs.

For history lovers Originating in the Truong Son mountains, the Perfume River flows languidly through tropical jungles dotted with ancient pagodas and the tombs of several emperors. About 16 kilometers from Hue up the Perfume River, the tomb of the first Nguyen lord Gia Long, who united the northern and southern parts of the country for a time, stands guard on a hill next to the river. The compound’s grassy areas are dotted with stele, stone statues, temples and tombs. The tomb of Minh Mang, another popular place to visit on the Perfume River, is about nine

kilometers from Hue. Built in the mid19th century, the tomb complex houses palaces, temples, pavilions and statues.

The Thien Mu Pagoda is a popular stop on riverboat trips along the Perfume River's north bank and is also easily reached by bicycle or motorbike. The road leading to the imperial tombs south of town affords visitors a glimpse of some working temples, busy with monks, students rushing between classes, and many workshops that visitors can observe.

The climate in Hue differs in different regions. The weather in the northern fronts does not match the characteristics of that of the southern

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tip of the country. The basic climate of the place is harsh and differs between areas of the city. The city has two main seasons - dry and rainy. The former is fairly hot, lasting from March to August, while the latter begins from August, and is cool and wet. The most special time is the short spring lasting from January until February, when the atmosphere is cool and fresh and newly appearing tree leaves breathe fresh life into the air.

Hue is also known for its festivals, with the first one introduced in 2000 and now held every other year. Hue remains a tranquil, fairly conservative city and is an ideal tourist destination which history lovers should not miss.

lifestyle

Q u y nh Ch i

Romance and nature

in every step Lying only fifty kilometers from Hanoi, Ba Vi National Park makes a perfect day or weekend trip from the capital. With its fresh clean air, peaceful atmosphere and diverse ecosystems, Ba Vi is beautiful all year round, and particularly so during the winter months.

B

a Vi National Park is centered around Ba Vi mountain. Although not far from Hanoi, visitors will be struck by how green and quiet it is and how fresh and cool the air is.

Considered as the lung of Hanoi, the park is home to a variety of precious and rare plants and animals. Many of which can be seen when hiking through the park’s jungle and tropical rainforest. There is also a bird garden, and an orchid garden where a plethora of colourful orchids can be enjoyed.

The triple-peaked Ba Vi mountain was once a French hill station. The three

Ba Vi National Park

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mountain summits are Dinh Vua, the highest at 1,296m, Tan Vien standing at 1,226m and Ngoc Hoa the smallest at 1,131m. Fog enshrouds the top of the mountain most days. Apart from Da River on the western side of the national park, Ba Vi has no large, permanent water bodies. Streams in the national park are small, steep sided and fast flowing. However, many of them dry up during the dry season.

Those who climb to Uncle Ho’s temple on the highest peak of Ba Vi range mountain are rewarded with panoramic views of the stunning Red River Valley below. The dilapidated Ba Vi church, also standing near the peak, is a favorite destination for many young people. The pristine and ancient beauty of the church brings to each

lifestyle

Dilapidated Ba Vi church

visitor a sense of romance and history.

Abandoned for years, the roof of the church has gone, leaving the remainder of the church open to the forest and the elements. A cross still hangs on the wall, bathed in the afternoon sunlight that streams through the window. The green moss, the grey mould, and the silver mist create a magical space, and evoke a sense of romance and days gone by to visitors.

Perennial Sunflower

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Gorgeous flowers create a blaze of colour lining the road to Ba Vi mountain, including the simple yet beautiful perennial sunflower. Perennial sunflowers start to bloom from the beginning of November and continue until mid-December each year. The cool pine forest makes a great destination for camping and photography.

CSR

Ngu y en Tran

Educational supplies for mountainous children On a chilly autumn day, BIDV youth union members headed to Ha Giang, bringing warmth and love to students in the most Northwestern area of Vietnam.

A remote province Ha Giang Province, the border area with China, is heralded as one of Vietnam’s top attractive tourist destinations. During the final months of the year, the majestic stone plateau blooms brilliantly with buckwheat flowers, covering the earth in a carpet of pink. Ha Giang boasts the majestic beauty of the mountains, scattered with terraced rice fields winding like yellow ribbons. However, behind her beauty, the frontier land still remains a difficult place to live, particularly for its local students.

The first destination on our journey was Thai Phin Tung, a poor commune in Dong Van district, Ha Giang province. The commune is home to 1,100 households with 6,000 people, mainly H’Mong ethnic people.

downtown Ha Giang at sunset. From here, it took more than 150 kilometers of winding pass roads to reach Thai Phin Tung commune. The seemingly endless mountain roads challenged many of our group members, with sudden bends appearing right before our eyes.

We caught glimpses of the undulating mountain ranges hidden in the thin mist.

Our driver told jokes to pass the time and shorten the long journey.

Leaving Hanoi at 9 a.m and travelling over 300 kilometers, we arrived in

After travelling along these steep mountain cliffs for some time, we

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finally arrived at Thai Phin Tung, an ethnic semi-boarding school located on the side of a mountain. We were met by the eager smiling faces of students and teachers.

Gifts for all students Most of the students at Thai Phin Tung semi-boarding school are H’Mong ethnic children who face daily difficulties in their lives. Each day they must trek along dozens of kilometers of mountain roads to get to school, to ‘get

CSR

BIDV representative gives gifts to Thai Phin Tung school leadership

the knowledge’, as it is known locally.

Although we visited and gave gifts on a Saturday - usually a non-school day - we were inundated with teachers and students who had been waiting for us since the early morning. Every Friday the students walk two to three hours back to their homes situated on the other side of the high mountains. When travelling along the mountain road, we sometimes saw groups of students traversing the pass, mere dots against the overwhelming cliffs.

Mr. Dang Dinh Hung, Vice President of the school said, “The school has 45 classes with a total of 903 students at elementary and secondary level. These are spread over thirteen campuses, with some more than ten kilometers away from the main school. The accommodation here is far from ideal, with as many as 18 students sharing a 24m2 bedroom. The school does not have its own dining room so the students have to eat outside in the roofless playground.

Mr. Hung also added that over thirty percent of his students at secondary level dropped out due to financial difficulties and a need to earn money to support their families. School leaders and members of the local authorities regularly visit every village to encourage students back to school but the dropout rate remains high.

northwest area into the hearts of the BIDV youth. It was hoped that by coinciding the visit with the start of the new school year these small gifts would help the mountainous children to overcome some of the difficulties and disadvantages of life as well as motivating them for the school year ahead.

Full of passion and a desire to help the students, BIDV youth union members and subsidiary company employees made donations and gave gifts to ethnic students at Thai Phin Tung. The gifts consisted of useful and necessary school supplies such as notebooks, backpacks, pens and chalk, with a total value of over VND100 million.

The youth members also visited and presented gifts to the children at Thai Phin Tung kindergarten, more than 2 kilometers away from the school.

Returning to Hanoi along the high cliff road, the bright innocent faces of the ethnic students still linger fresh in our minds.

This charitable trip provided students with new books and warm blankets, as well as bringing the mountainous

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In early October BIDV organised an inauguration ceremony in Ha Giang Province for the handover of classes worth VND1 billion to Lien Son elementary ethnic boarding school in Lien Son commune, Meo Vac district.

The bank also donated VND1 billion for the construction of classrooms at Ngoc Minh Kindergarten in Vi Xuyen district, Ha Giang province.

CSR

QUYNH DO

BIDV continues to join hands to bring a healthier life to disadvantaged children

New hope for children with heart conditions On September 27 this year BIDV announced its commitment to donate VND2 billion (USD92,000) to the Operation Healthy Heart fund to provide funding for children requiring heart surgery.

Mr. Vu Tan, BIDV Trade Union, said, “By advocating commitment to social security and charitable programmes in the banking sector, BIDV will continue to join hands to bring a healthier life to disadvantaged children. We hope that by providing direct funding for surgery there will be more children with healthy hearts and brighter futures.�

B

BIDV has set itself a goal to fund social security with priority given to healthcare and disadvantaged children.

IDV is one of the first businesses to join the programme since its launch in 2009 and has already donated VND1 billion (USD46,000) to fund heart surgery for more than 50 disadvantaged children suffering from congenital heart defects. BIDV also provided VND1 billion (USD46,000) of funding for other heart surgery programmes for disadvantaged children in Ha Tinh Province, VND300 million (USD14,000) in Nghe An Province as well as financially supporting the National Fund For Vietnamese Children and Understanding the Heart Fund, amongst others.

BIDV has set aside tens of billion of dong to achieve this. Additionally, the bank has provided funding for the construction and upgrade of new medical clinics and the provision of medical equipment to medical clinics at central and local level.

In Vietnam, tens of thousands of children suffer from congenital heart defects, posing a serious financial burden on their families. The cost of heart surgery and follow up treatment is beyond the reach of many families.

The Operation Healthy Heart programme has been operating for seven years, with the active participation of organisations, individuals and enterprises who have donated tens of billions of Vietnamese dong. The programme has saved the lives of more than 2,700 disadvantaged children with congenital heart diseases, enabling them to live a normal life full of study and play.

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