BIDV Review 65 - October 2020

A Newsletter of Bank for Investment and Development of Vietnam JSC • Issue No.65 | Oct 2020

Electronic money

and potential for development in Vietnam

BIDV receives double awards from The Asian Banker

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BIDV headquarters seen from Hoan Kiem Lake, Hanoi

ABOUT BIDV The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), founded on 26 April 1957, is the longest-established commercial bank in Vietnam. The bank’s operations cover banking, insurance, securities, and financial investment. BIDV has a network of more than 1,060 branches and transaction offices as well as presence in six countries and territories. BIDV has been among Top 2000 largest public companies since 2015 (Forbes); Top 500 most valuable bank brands (Brand Finance). BIDV is headquartered in Hanoi, the capital of Vietnam.

The bank’s stock (ticker: BID) is listed on Ho Chi Minh City Stock Exchange (HOSE).

EXECUTIVE PRODUCER TRAN PHUONG Bank for Investment and Development of Vietnam JSC

Senior Executive Vice President EDITORIAL BOARD Branding and Communication department HEAD OFFICE: BIDV Tower, 35 Hang Voi str., Hoan Kiem dist., Hanoi, Vietnam Tel: (+84) 24 22205544 Fax: (+84) 24 22225316 Contact center: 19009247 Email: bidvreview@bidv.com.vn License No.15/GP-XBBT dated 27 February 2020 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 the first day of October, the State Bank of Vietnam continued to cut policy interest rate to support the national economy amid difficulties posed by the Covid-19 pandemic. The maximum interest rate for deposits with terms from one month to less than six months fell to 4 percent per annum from 4.25 percent. Lending rates for priority fields and economic sectors have been cut to 4.5 percent per annum from 5 percent. The State Bank of Vietnam is one of the central banks making the largest policy rate cuts in the region.

BIDV released financial statements of the third quarter. Given the general difficulties of the economy and the banking sector due to Covid-19, the bank is striving to maintain stable business operations and ensure safety and efficiency. As of 30 September, the bank’s total consolidated assets had reached about VND1.468 quadrillion. Consolidated profit before tax reached VND7,062 billion, a slight increase compared to the same period last year and an appropriate growth in the context of BIDV using resources to support the economy and customers affected by Covid-19 In the month, BIDV received prestigious awards from The Asian Banker including “Best Cash Management Bank in Vietnam” and “Best Transaction Bank in Vietnam” for 2020.

The bank was also honoured with the award “Vietnam Domestic Foreign Exchange Bank of the Year” for the third consecutive year by

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Asian Banking & Finance. For the first time, the awards were handed to the winners via a visual presentation due to the pandemic.

Given the application of technology to banking operations, electronic money has great scope for development. Mr. Can Van Luc, chief economist at BIDV shared with BIDV Review on aspects of electronic money, local regulations on electronic money, opportunities and challenges as well as recommended solutions for e-money development.

According to the International Monetary Fund’s World Economic Outlook update, Vietnam and China are among the few economies in the world to have maintained positive growth in 2020 amid the Covid-19 pandemic. Vietnam’s GDP is forecast to expand by 1.6 percent in 2020 and make breakthrough growth of 6.7 percent in 2021.

This month the government issued Decree 123/2020 guiding invoices and documents, including e-invoice related matters. One of the decree’s notable points is a delay of the deadline for compulsory implementation of e-invoices from 1 November 2020 until 1 July 2022. This delay gives some breathing room for companies which have not yet implemented e-invoicing.

The last pages come with stories about national parks in the southern region and some news translated into Korean.

contents

BIDV HIGHLIGHTS

PARTNERS

03. BIDV named foreign exchange bank of the year 04. BIDV bags double awards from The Asian Banker 06. Joining forces to boost electronic insurance payment

18. BIC among Top 500 most profitable companies 2020

07. BIDV honoured as “Outstanding business for employees” 08. Maintaining stable business operations in the first 9

months

19. BSC surpasses 2020 profit plan POLICY UPDATE

20. New regulations on application of e-invoices

INSIGHTS

09. New decree allows state-owned banks to retain profits 10. Employing technology to drive consumer credit

LIFESTYLE

22. National park weekend getaways

12. Electronic money and potential for development in Vietnam MARKET MOVEMENTS

15. Central bank cuts interest rate to aid economy 16. Vietnam’s e-commerce forecast to grow 20 percent in Q4

24. Vienna - the world’s most liveable city CSR

26. BIDV donates VND8 billion to flood-hit central region 28-31. 뉴스 32. 문화

17. Vietnam among a few economies seeing positive growth in 2020

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BIDV Highlights

Ti en Trung

BIDV named foreign exchange bank of the year BIDV was recently honoured with the award “Vietnam Domestic Foreign Exchange Bank of the Year” for the third consecutive year

by Asian Banking & Finance (ABF).

also provided customers with exchange rate hedging solutions and supported them to save costs through product bundles of forex trading, deposit, credit, trade finance and money transfer.

The Vietnamese lender has issued many policies geared towards optimising benefits for customers in foreign currency trading. Such policies have helped BIDV's products to reach more customers, as indicated by strong growth of 150 percent in forex trading volume between customers and BIDV.

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he award, based on the evaluation of a council of leading financial experts and researchers, is recognition of BIDV's efforts in providing the best and most suitable forex products to customers.

Over a hundred exceptional banks from 30 countries were recognised at the 2020 Wholesale Banking Awards, Retail Banking Awards, and Corporate & Investment Banking Awards held digitally by ABF. For the first time, the awards were handed to the winners via a visual presentation due to the pandemic.

"As we have seen in this year’s winners, banks were still able to navigate and up their game even during the pandemic. We are looking forward to seeing how they will continue to provide the best service to clients in spite of these very difficult times," said Tim Charlton, publisher of Asian Banking & Finance magazine.

BIDV provides comprehensive foreign exchange services to customers, offering flexible solutions to mitigate risks and optimise deal plans through cross-selling

and hedging products. In addition, the bank has always focused on developing services based on modern technology, allowing customers to perform transactions quickly and conveniently while minimising transaction costs and time for customers.

The award from Asian Banking & Finance recognises BIDV’s foreign exchange activities based on three criteria: products, policies and technology application. Specifically, over the past several years BIDV has introduced to customers foreign exchange products that are diverse in terms, currencies and payment flexibility, thereby helping customers fix their costs in trading foreign currencies in line with their respective business characteristics. BIDV has

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BIDV strives to provide customers with the best digital experience in order to minimise trading time and papers. Customers may schedule transactions and buy and sell dozens of foreign currencies directly with the bank through online applications such as BIDV Smart Banking or BIDV iBank. They may also provide documents via online applications to the bank for checking before visiting the bank, which help significantly reduce trading time for both customers and the bank.

The Asian Banking & Finance has presented BIDV with many prestigious awards in areas including SME, cash management, and solutions for corporate customers as recognition of the bank’s relentless efforts in improving products as well as service quality to best serve customers, affirming the bank’s leading position in Vietnam, especially in the areas of forex trading and service.

BIDV Highlights

Tr a ng Trinh

BIDV bags double awards from The Asian Banker According to The Asian Banker, BIDV’s cash management business registered a significant uptick in the volume and value of transactions with its estimated domestic market share for cash management reaching 40 percent in 2019. Revenue from cash management increased 36 percent to around USD32 million, with more than 1000 transaction points nationwide.

BIDV’s offerings have been geared toward internet banking in Vietnam’s otherwise heavy cash and paper dependent economy.

On 22 October, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) was awarded the titles “Best Cash Management Bank in Vietnam” and “Best Transaction Bank in Vietnam” for 2020.

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he awards, belonging to The Asian Banker Transaction Finance Awards 2020 are held annually to evaluate the achievements of financial institutions in cash management, payments, and trade finance across Asia Pacific, the Middle East and Africa.

This year, the awards are specifically aimed at evaluating the performance and response of senior industry practitioners and the banks that they lead during the Covid-19 pandemic.

Important benchmarks were considered during the assessment including the level of digitalisation of institutions’ operations and processes; risk management capabilities, especially credit and liquidity risk management; how they deploy funds in a manner relevant to society; and finally how they create social capital, the means by which business justifies value through contributions to communities.

The awards stated above are assessed based on a survey of international banks and selected corporates in each of the different countries in the region on the transaction banks they work with in the country, corroborated by interviews.

The winners must meet specific criteria in terms of changes in market share of the different competitors in the respective markets or key business lines; the contribution of the business to total income; the ability to describe the benefits of processing efficiencies and cost management that are passed on to their clients.

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Holistic cash management solutions including collections, payments and accounting management for customers, was reflected in the mandate implemented by many large corporates and groups in Vietnam such as Airports Corporation of Vietnam (ACV), Masan Group, Vingroup and Vietnam Posts and Telecommunications Group (VNPT). Multi-channel disbursement and collection/ bill payment with 24/7 support and Virtual Accounts solutions to support the management of receipts for funds for large corporates were rolled out. Therefore, The Asian Banker recommended BIDV as Best Cash Management and Transaction Bank in Vietnam.

Receiving awards from prestigious financial magazines such as The Asian Banker has affirmed the service quality of BIDV as well as the bank’s commitment to always bring products and services of the best quality to customers.

BIDV owns a nationwide payment channel system with a network of more than 1,000 branches and transaction

BIDV Highlights

offices and commercial presence in six countries and territories. The bank has also established partnerships with 2,300 global financial institutions, establishing the foundation to support customers in conducting business and payment operations globally.

In addition, digital transformation to bring technological facilities to institutional customers has also been the focus of BIDV's development. BIDV is one of the first banks to offer Virtual Account products to the market, is one of the four banks participating

in the implementation of the ACH payment system project with Napas and is the fastest deployment bank.

BIDV has connected the corporate customers’ accounting system with the BIDV iBank electronic banking system - BIDV iBank. Recently, BIDV has also become the first Vietnamese bank to successfully apply blockchain technology in trade finance transactions.

In recent years, with the high appreciation of international organisations and magazines, BIDV

has continuously been honoured in many categories and awards. These include the World's 2,000 largest public companies 2020 - Global 2000 (announced by Forbes), 500 most valuable banking brands in the world in 2020 (announced by Brand Finance), and Vietnam Domestic Foreign Exchange Bank of the Year in 2020 (awarded by Asian Banking & Finance).

In 2018, BIDV was awarded the “Best Transaction Bank in Vietnam” and “Best Payment Bank in Vietnam” by The Asian Banker.

Customers conducting transactions at a BIDV branch

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BIDV Highlights

Dang Th ang

Joining forces to boost electronic insurance payment social insurance agencies at all levels.

BIDV always ensures fast, safe, and effective standards for payment and collection transactions with social insurance agencies.

Mr. Tran Long, senior EVP of BIDV (left) and Mr. Le Hung Son, Deputy CEO of VSS shake hands after signing the agreement in Hanoi

On 15 October 2020 in Hanoi, BIDV and Vietnam Social Security (VSS) signed an agreement on bilateral electronic connection and cash flow management.

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his event marks BIDV’s continual efforts in accompanying Vietnam Social Security in deploying services and utilities for individuals and organisations to pay social insurance via electronic channels such as BIDV SmartBanking, BIDV Online, BIDV Business Online, the National Public Service portal, and the social security portal. Such utilities have facilitated individuals and organisations to pay social insurance fees, especially during the complicated development of the Covid-19 pandemic.

The two sides also announced the official implementation of 24/7 social insurance collection service via the electronic social security portal after the signing of the agreement.

This service allows individuals and organisations to link their accounts with BIDV to make 24/7 online payments for social insurance. The payments for social insurance are automatically accounted for through the bilateral payment system, and information about the payment is automatically transmitted to the Vietnam Social Security system.

According to Mr. Le Ngoc Lam, senior executive vice president in charge of BIDV's Board of Management, in recent years BIDV has strongly and comprehensively implemented the cooperation in collecting social, health and unemployment insurance with

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Vietnam Social Security is one of the pioneers in applying information technology to services for individuals and businesses related to social insurance and health insurance. In the first nine months of the year, Vietnam Social Security received and processed 52.7 million electronic documents of more than 500,000 companies and over 7,000 individuals, helping to save them time and costs.

The strategic cooperation between BIDV, the leading state commercial bank in Vietnam, and Vietnam Social Security has brought maximum benefits to social insurance payers and beneficiaries, creating favourable conditions for individuals and businesses to actively participate in social insurance as well as strongly promoting non-cash payments and administrative reform according to the direction of the government.

Last September, BIDV became the first commercial bank to successfully implement a bilateral e-payment system with Vietnam Social Security, helping to move social and health insurance collection/payment to electronic methods.

BIDV Highlights

Ho a Quynh

BIDV honoured as “Outstanding business for employees” During an honouring program held on 2 October in Hanoi, BIDV was recognised as one of Vietnam’s 10 best enterprises this year, receiving a Certificate of Merit from the Vietnam General Confederation of Labour.

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s stated in BIDV's development strategy, employees play an important role in the bank’s decision making process. Therefore, one of the most important objectives of BIDV is to invest in staff training and development in order to build a qualified workforce that is capable of fulfilling the system's business goals and strategies as well as to meet the political missions of the banking industry. At present, BIDV has more than 25,000 employees who are highly trained with high professional skills and is regarded as one of the best workforces in comparison with other commercial banks in Vietnam.

BIDV also puts special focus on employee development, particularly on professionally organised training programs. During 2019 and 2020, BIDV organised a total of 203 training courses nationwide with the participation of nearly turns of 80,000 trainees. Overall, many training programs and in-depth seminars provided staff with new knowledge in the era of digital technology, such as intensive training courses for digital finance; data science; leadership skills applying simulation technology, the

Mr. Tran Xuan Hoang - Member of BOD, Chairman of BIDV Trade Union, represents BIDV to receive the Certificate of Merit from the Vietnam General Confederation of Labour

application of big data to improve the efficiency of banking operations; and an international conference on blockchain.

BIDV has built up a remuneration policy to show its gratitude to employees for their contributions, notably a competitive salary and bonus system, as well as the ability to create career development opportunities for young employees demonstrating talent through their contributions.

The "Outstanding business for employees" award aims at evaluating and honouring enterprises for their constant efforts to improve the working environment and to care for the physical and mental wellbeing of their employees with a view to building a healthy corporate culture. After all,

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a culture that ensures harmonious, stable and progressive labour relations between employees and employers towards sustainable development in today’s integration process is the core evaluation criteria of the award.

Mr. Nguyen Dinh Khang, chairman of the Vietnam General Confederation of Labour, said that the winning enterprises this year were selected not only because they met the award’s rigorous criteria, but also because they proved to be the best companies in finding solutions to ensure income security for employees, and contributing to the government’s dual goals of effectively fighting the pandemic while ensuring economic development and social security.

BIDV Highlights

Thi eu Nguyen

Maintaining stable business operations in the first 9 months of each customer) to take appropriate measures to ensure safe and effective credit growth and control NPL. Non-interest income saw positive results. Net service income (excluding guarantee fees) reached more than VND3,667 billion (USD145.1 million), up 21.5 percent (net increase of VND648 billion) year-on-year; revenue from forex trading reached VND1,254 billion (USD54 million), up 16.4 percent (net increase of VND177 billion) yearon-year; income from trading securities and investment securities reached VND479 billion (USD20.6 million) and VND1,009 billion (USD43.5 million), respectively, with the net increase being VND217 billion (USD9.4 million) and VND1,275 billion (USD55 million), respectively year-on-year.

BIDV has just released financial statements of Q3. Given the general difficulties of the economy and the banking sector due to Covid-19, the bank is striving to maintain stable business operations and ensure safety and efficiency.

However challenges remain for the bank in fulfilling the business targets.

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s of 30 September, BIDV’s total consolidated assets had reached about VND1.468 quadrillion (USD63.3 billion), a decrease of 1.5 percent compared to the beginning of the year, mainly due to a net decrease in deposits at the State Bank.

Customer deposits reached over VND1.145 quadrillion (USD49.4 billion), growing by 2.8 percent (net increase of over VND30,840 billion) compared to the beginning of the year.

Loans to customers reached over VND1.145 quadrillion (USD49.4 billion), up 2.5 percent (net increase of over VND28,360 billion) compared to the beginning of the year. The slow increase in outstanding loans at BIDV as well as some banks was mainly due to the impact of Covid-19.

Credit packages to support customers affected by the pandemic need time to be effective and depend on the absorption of the market. The NPL ratio of the banking business alone was controlled at 1.87 percent. Currently, BIDV is conducting an overall review of its customer base (financial situation, solvency, level of damage

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Consolidated revenue and expenditure difference was over VND23,181 billion (USD999.2 million); consolidated profit before tax reached VND7,062 billion (USD304.4 million), a slight increase compared to the same period last year and an appropriate growth in the context of BIDV using resources to support the economy and customers affected by Covid-19. BIDV has made full provision for risks according to debt classification. Operational indicators are ensured according to regulations.

The bank said it would continue to closely monitor the system situation, review the impact of Covid-19 and natural disasters to do business towards focusing on increasing noninterest income, boosting e-banking services, maximising income sources and controlling costs in order to fulfill the targets set for 2020.

Insights

Phuong Th ao

New decree allows state-owned banks to retain profits A new decree released by the government allows stateowned commercial banks to keep any profit made in order to increase their strength, rather than paying cash dividends to shareholders.

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he government recently promulgated Decree 121/2020 which amends clause 2, Article 15 of Decree 91/2015 dated 13 October 2015 regulating the State capital invested in State-owned companies and management of State capital and assets in businesses.

The new decree allows government agencies to increase the State capital in joint stock companies and limitedliability firms with two or more board members. Commercial banks where the State holds more than 50 percent of the charter capital are subject to the new decree.

Development (Agribank) and Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) are in hot need of capital increase to ensure the CAR. Vietinbank’s charter capital hasn’t increased since 2014 while Agribank saw slow increase in its capital. Agribank is a wholly stateowned bank and it can only increase its charter capital through state budget sources. This year, no more than VND3,500 billion (USD150.8 million) from the state budget will be added to the bank.

Currently, BIDV holds the highest charter capital amongst banks, at VND40,220 billion (USD1.73 billion), followed by VietinBank (VND37,234 billion or USD1.6 billion), Vietcombank (VND37,088 billion – USD1.59 billion), and Agribank (VND30,641 billion – USD1.32 billion). The State Bank of Vietnam represents the government's

The amendments to Decree 91 have been long expected by commercial banks and will lay legal foundations for them to boost charter capital increase and meet the capital adequacy ratio (CAR), creating more room for growth. Capital increase for stateowned banks is one of the most important tasks of the banking sector and has repeatedly been emphasised by the governor of the State Bank of Vietnam in recent years.

Among the ‘Big Four’ banks, Vietnam Bank for Agriculture and Rural

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stake in the banking sector and holds a nearly 81 percent share of BIDV, more than 64 percent of VietinBank, and nearly 75 percent of Vietcombank.

VietinBank and Vietcombank plan to issue bonus shares using their profits recorded in 2020 to increase capital, meeting Basel II standards, and preparing for any economic shocks caused by the prolonged Covid-19 pandemic and the instability of the global economy.

In 2019, BIDV issued over 603.3 million shares as a private placement to Hana Bank with total value of nearly VND20,300 billion (equivalent to USD875 million). After the deal, Hana Bank owns 15 percent of BIDV’s charter capital.

Insights

Bao Ngoc

Employing technology to drive consumer credit On the first days of October, Mr. Nguyen Mai Khanh, head of BIDV Retail Banking, talked to BIDV Review about solutions to promote consumer credit given the impact of the Covid-19 pandemic.

months of the year, the credit growth of the whole banking sector was only 5.12 percent. BIDV’s credit growth was just 2.87 percent, with retail credit increasing by 4.5 percent compared to 15.7 percent seen the last year.

How has BIDV implemented consumer lending so far?

Since 1 April 2020 BIDV has launched a program on reducing lending interest rates up to 2 percent p.a. for individual customers affected by Covid-19, aiming to support them to overcome difficulties caused by the pandemic.

Could you briefly describe the impact of Covid-19 on BIDV’s consumer lending?

The Vietnamese economy has been heavily affected by the two consecutive outbreaks of Covid-19, however, thanks to proactive countermeasures at both national and local level, the impact has not been as serious as in other countries.

A report recently released by the International Monetary Fund (IMF) showed that Vietnam's economic growth was at 2.1 percent in the first nine months of the year, much lower than that of 7 percent in the same period in 2019, but still an impressive result in the context of the global Covid-19 pandemic.

Vietnam continues to be the only country in Southeast Asia to be experiencing positive growth, forecast at 1.6 percent in 2020 and 6.7 percent in 2021.

According to Vietnam’s General Statistics Office (GSO), as of September 2020, 31.8 million people across the country had been negatively affected by Covid-19, of which 68.9 percent have

Mr. Nguyen Mai Khanh, Head of BIDV Retail Banking Department (October 2020)

seen their income reduced, nearly 40 percent are having to work an alternate schedule, and about 14 percent have had to stop or suspend their business and production activities.

Enterprises are facing vast difficulties in their production and business activities, especially those directly affected by the pandemic such as tourism, catering services and hotels. The income of numerous workers has decreased, leading to a decrease in demand for consumer loans.

Credit institutions have been strongly affected by this consequence and BIDV is no exception. In the first nine

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In addition, since 5 August 2020, BIDV has increased the size of its medium and long term loan package “Accompanying to reach further” to VND40 trillion (USD1.73 billion) and reduced lending interest rates. When applying for loans, borrowers will enjoy introductory lending rates of 7.2 percent p.a only with flexible terms.

In addition, borrowers during this period are also entitled to other attractive incentives such as a cash bonus of VND1 million (USD43.3) per customer; insurance; free electronic banking maintenance service fee; an additional 0.6 percent p.a. on online deposit interest rate; reduction of more than 70 percent of online interbank money transfer fee; and refunds of 100 percent of the top-up card value (up to VND100,000 per customer) applicable

Insights

to new BIDV SmartBanking users making phone top-up via the app.

Thanks to competitive credit packages and open lending policies, in the third quarter BIDV increased the consumer loan balance by more than VND1,600 billion (USD69.3 million) and this figure is likely to continue to grow upon the economy’s recovery.

What are the risks of consumer lending and what solutions has BIDV taken to hedge them?

Although the State Bank of Vietnam encourages the promotion of consumer lending, the level of growth depends greatly on the economy’s absorption capacity. Currently, individual demand for consumer loans has not recovered to the level before the outbreak, especially in the context of uncertain employment and reduced income due to the pandemic, which poses many potential risks for lending. Credit institutions should have measures in place to control and manage risks while boosting credit growth.

At BIDV, in order to ensure sustainable, effective and sound consumer lending development, BIDV has been implementing a series of risk control measures such as standardising products, reviewing and innovating all consumer lending processes, focusing on customers with good debt repayment history, limiting cash loans,

controlling loan use purposes, and contributing to making the consumer loan market healthier.

How do you envisage the picture of consumer credit in the next years?

What measures will BIDV take to boost consumer lending?

The Covid-19 pandemic has affected the economic life of many individuals and households, resulting in decreased demand for consumer loans. However, when the economy recovers, consumer lending will continue to stimulate aggregate demand and support growth.

The IMF forecasts that Vietnam's GDP per capita will exceed USD5,000, reaching USD5,211.9 by 2025. Statistics from the State Bank of Vietnam show that, over the past years, total consumer

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loans in Vietnam saw an average growth of nearly 20 percent p.a. Outstanding consumer loan per capita reached approximately VND1.5 million. This is a very low figure compared to the 100 million people of a developing country with a young population structure and high demand for consumption.

Therefore, the potential for consumer loans by people is forecast to be huge.

In the coming time, BIDV will focus on developing technology applications, enhancing customers’ access to products, regularly offering preferential credit packages with attractive policies tailored to the needs of each customer segment and customer lifecycle; and promoting an end-to-end link between Developers/Car companies - Bank Customers to implement housing/car loan program.

Insights

Dr . CAN VAN LUC

Chief Economist, BIDV

Electronic money and potential for development in Vietnam phones with chips and software-based ones such as Paypal e-wallet.

The European Central Bank (ECB) defines virtual currency as “a type of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community”. For example, the virtual currency Pokecoins in the game Pokemon GO or Facebook funds used for advertising or games on the Facebook apps.

Given the application of technology to banking operations, electronic money has great scope for development. So what is electronic money and its potential for development in Vietnam?

Electronic money and definitions Electronic money (e-money) is broadly defined. According to the European Central Bank (ECB), electronic money is an electronic store of monetary value on a technical device that may be widely used for making payments to entities other than the e-money issuer.

The Bank for International Settlement (BIS) defines electronic money products

as stored value or prepaid products in which a record of the funds or value available to the consumer is stored on a device in the consumer's possession.

These definitions are somewhat complicated, which can cause confusion between e-money, virtual money, cryptocurrency and even mobile money.

In fact, there is confusion between these definitions in Vietnam.

Electronic money has been clearly identified and distinguished from other currencies through four main features.

First, electronic money must be legal tender. Second, electronic money can be issued by a bank or by a non-bank institution. Due to this, countries always have very strict regulations on e-money issuers to ensure safety for users. Third, e-money has the central bank's monetary regimes.

Fourth, e-money can only be stored in electronic products including hardwarebased ones such as chip cards, smart

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For cryptocurrency, it is created by complex cryptographic algorithms, traded and exchanged entirely on the internet environment and currently not under the control of any individual or organisation (unless it is directly issued by a central bank).

Typical examples of cryptocurrency are Bitcoin and Ethereum. It is possible to identify the origin of cryptocurrency as virtual money but it is evolving to embody features of e-money such as the ability to convert into legal tender, however the ability to store value is less (due to the high volatility).

Cryptocurrency still has a long way to go to become e-money primarily due to its lack of recognition amongst countries' central banks.

Local regulations on electronic money In Vietnam, currently there is no legal document regulating the concept of electronic money. A number of documents such as the Law on the State Bank of Vietnam (2010), Law on Credit Institutions (2010), the Government’s Decree 101/2012/

Insights

ND-CP on non-cash payment and Decree 80/2016 amending a number of articles in the Decree 101/2012, the State Bank’s Circular 19/2016 on banking card operations (amended by Circular 26/2017), have regulated the different forms of electronic money including e-wallets and prepaid cards.

The government’s draft Decree on non-cash payments provides a clear definition of electronic money: “Electronic money is the monetary value stored on electronic media, prepaid by customers to banks, foreign bank branches, payment intermediary service providers to make payment transactions and its value is guaranteed equivalently at banks, including prepaid cards, e-wallets, and mobile money”.

subscriber, and is not required to link to a bank account. If the e-wallet performs know-your-customer (KYC) through a bank, mobile operators must do the KYC by themselves. Whether it is an electronic wallet or mobile money, it is required to maintain an amount of money secured by the equivalent value of bank deposit which is transferred from the customer's current account to the service supplier’s account at a ratio of 1:1.

The forms of electronic money are types of legal tender represented on other means, not the value of any other currency. In particular, e-wallets and mobile money are expected to have strong growth and contribute significantly to the development of non-cash payments in Vietnam.

Thus, e-money has three forms: prepaid cards are a form of electronic money issued by a bank or foreign bank branch, allowing the cardholder to perform card transactions within the amount of money deposited in the card. This form is the most common and familiar.

Opportunities and challenges

E-wallet is electronic money issued by an intermediary payment service provider, identifying a customer through her/his current account opened with a bank. This form has only been developed in the past few years yet has seen good growth. As of July 2020, Vietnam has 35 entities licensed to provide e-wallet service.

On the supply side, Vietnam has a large number of mobile phone

In Vietnam, e-wallets and mobile money are relatively new services, especially mobile money, but have great potential for strong growth in the future in terms of both supply and demand.

Mobile money is electronic money issued by telecommunications providers who are licensed to provide intermediary payment service, identifying the customer through a database of mobile phone subscribers. This form is the very electronic wallet on a mobile phone

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subscribers, about 130.4 million and 15.7 million internet subscribers (as of June 2020); of which 3G and 4G broadband mobile phone subscribers number at more than 65.3 million.

With 43.7 million smartphone users (accounting for 45 percent of the population in 2019), Vietnam is at the regional average, higher than India (25.3 percent), the Philippines (33.6 percent), Indonesia. (31.1 percent) and Thailand (43.6 percent).

Many advanced technologies are being applied such as biometric authentication (fingerprint, face recognition), quick response code (QR Code), and Tokenisation. Viettel and Vietnam Posts and Telecoms Group (VNPT) have been licensed by the State Bank of Vietnam to provide an intermediary payment service. The Ministry of Public Security launched the National Population Data Centre in August 2020, helping to support the deployment of eKYC. On the demand side, there is plenty of room for non-cash payment to develop in Vietnam. Currently, only about 63 percent of adults (over 15 years old) have a bank account (according to the

Insights

State Bank of Vietnam, 2019), lower than China (80 percent) and the Asia Pacific (70 percent). The proportion of cash to the total means of payment in Vietnam in 2019 was 11.33 percent (down 0.45 percent compared to 2018).

In addition, developing new and modern forms of payment (including mobile money) to serve rural and remote areas and underbanked people and contributing to promoting financial inclusion is one of the government's key targets in the National Financial Inclusion Strategy.

Finally, in the context of the complicated developments of Covid-19, governments in many countries have limited the use of cash to minimise the risk of the spread of the disease. In Vietnam, the government issued Directive 11 (4 March 2020) to speed up the pilot implementation of mobile money.

Individual and business customers also conduct more online transactions.

The development of new forms of electronic money in Vietnam should take into account six main challenges.

Firstly, the habit of paying cash in Vietnam is not easy to change overnight. Secondly, with the characteristics of a high-tech product, mainly provided through mobile operators, the monitoring and management of mobile money needs close coordination between relevant agencies such as the State Bank of Vietnam, the Ministry of Information and Communication, and the Ministry of Public Security. Thirdly, if the ‘know-your-customer’, spam sim management and anonymous transactions are not strictly performed, mobile money can be a channel for “transaction laundering”, affecting the prevention of money laundering.

Fourthly, developing a network of agents creates risks related to the qualifications, capabilities, awareness and responsibilities of this network.

Fifthly, without proper management

and security, customers’ money is at risk of being lost, with the blame being placed on suppliers, agents, IT criminals or even relatives. Finally, the legal environment for mobile money and e-wallet is still not complete, uniform and specific.

Recommended solutions for e-money development Firstly, measures should be taken to promote non-cash payments, to issue the "Overall strategy on the national payment system" and a decree to replace the current Decree on non-cash payments as soon as possible, as well as to finalise the legal framework with the application of modern technologies to the finance - banking sector such as blockchain, Fintech, peer-to-peer lending and electronic authentication.

Secondly, the legal framework for mobile money must be completed towards encouraging while ensuring safety, feasibility and effectiveness, finalising specific regulations for e-wallets with attention paid to the following issues: information and data risks, agent risks, technical risks, minimising money laundering transactions, gambling, terrorism financing, clarifying coordination process and responsibilities of stakeholders in the management, monitoring and operation of the service.

Thirdly, it is necessary to have a roadmap to reduce the deposit ratio of the non-bank issuer in accordance with the capacity of the system. Regulation on the deposit ratio of non-bank issuers

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at 100 percent is appropriate for the current context. However, technology and the capacity of these issuers will increasingly develop, and the State Bank's management and supervision capacity will also improve, following this the ratio can be gradually reduced under an appropriate roadmap to create conditions for the market development.

Fourthly, finalising the ‘know-yourcustomer’ system through finalising and issuing regulations on customer verification and identification; speeding up the project on building a national population database and citizen codes.

Telecom companies also need to quickly complete the standardisation of mobile subscriber information, customer identification, and spam sim control.

Finally, well implementing the development strategy of the banking industry to 2025 with a vision to 2030 (accordingly, the proportion of cash to total means of payment will be below 8 percent); and implementing the financial inclusion strategy to 2025, with a vision to 2030 (targets by 2025: at least 80 percent of adults have a transaction account, non-cash payment transactions grow by 20 -25 percent annually) must be prioritised.

Credit institutions, including BIDV, need to proactively develop/adjust their business strategies in accordance with the new stage, focusing on providing modern services, applying digital technology, strongly developing non-credit services, and committing to actively and effectively participate in the financial inclusion strategy.

market movements

M inh Nam

Central bank cuts interest rate to aid economy microfinance institutions will be cut to 4.5 percent per annum from 4.75 percent, while interest rates on deposits with a term of six months or more will be determined by credit institutions based on market capital supply and demand.

Notably, loans to borrowers in several regulated fields and economic sectors have been cut to 4.5 percent per annum from 5 percent. The maximum short-term lending interest rate in VND at people’s credit funds and microfinance organisations for these capital needs is now down from 6 percent per annum to 5.5 percent.

The headquarters of the State Bank of Vietnam in Hanoi, Vietnam

The State Bank of Vietnam (SBV) has cut the benchmark interest rate effective from 1 October 2020 to support the national economy amid difficulties posed by the Covid-19 pandemic.

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he refinancing interest rate has been cut from 4.5 percent to 4 percent per annum while the rediscount interest rate has been adjusted to 2.5 percent from 3 percent.

The overnight electronic interbank rate and rate of loans to offset the capital shortage in clearance between the SBV and credit institutions have been lowered to 5 percent annually from 5.5 percent.

The central bank also decided to cut the interest rate of bids of valuable papers through open market operations from 3 percent to 2.5 percent.

Regarding the maximum interest rate for deposits in Vietnamese dong by organisations and individuals at credit institutions and foreign bank branches, the maximum interest rate applicable to demand deposits and those of less than one month is 0.2 percent per annum.

The maximum interest rate for deposits with terms from one month to less than six months will fall to 4 percent per annum from 4.25 percent.

The maximum rate for deposits with terms of one month to less than six months at people’s credit funds and

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Since the beginning of this year the State Bank of Vietnam has synchronously regulated monetary policy tools to control inflation, maintain the stability of the macroeconomy and the money market and reduce common interest rates to support economic recovery. These measures are in line with the directions and policy of the National Assembly, the government and the Prime Minister aimed at supporting businesses and individuals and ensuring social security in response to the Covid-19 pandemic.

The State Bank of Vietnam is one of the central banks making the largest policy rate cuts in the region. The lending and deposit rates of credit institutions also followed suit, with the short-term VND lending rate applicable to a number of priority areas reduced to 4.5 percent p.a.

market movements

Thanh Th ao

Vietnam’s e-commerce forecast to grow 20 percent in Q4 Vietnam’s e-commerce market is forecast to climb 20 percent in the last quarter of this year to reach USD12 billion by year end if the Covid-19 pandemic is brought under control.

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his is the forecast by the Ministry of Industry and Trade (MoIT) in a recent report on Vietnam’s e-commerce market against the backdrop of the Covid-19 pandemic.

E-commerce revenue in the first six months declined 6 percent yearon-year despite the number of transactions increasing by 25 percent.

Most transactions at that time were of low value. Under circumstances when the disease is kept at bay, the ministry forecasts e-commerce revenue to rise

20 percent in the last three months to reach USD12 billion.

If the pandemic worsens, impacting production and consumption, supply and operations of transport and catering services, growth could reach only 13 percent with estimated market value of USD11 billion.

Vietnam is one of the most dynamic e-commerce markets in the world with an average growth rate of more than 30 percent per year in the last five years.

In May, the Government approved the national e-commerce development master plan for 2021-25, targeting annual industry growth of 25 percent with more than half of the population shopping online and average spending of about USD600 per person per year by 2025. The market size is expected to reach USD35 billion by 2025, ranking third in Southeast Asia.

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Business-to-consumer (B2C) sales will rise 25 percent per year, accounting for 10 percent of total retail sales of goods and services. Cashless payments in e-commerce would make up 50 percent and about 70 percent of transactions on e-commerce platforms would have electronic invoices.

In the first nine months of this year, the authority handled more than 2,200 cases of e-commerce violations and other acts of taking advantage of e-commerce to trade in smuggled goods, goods of unknown origin, goods infringing intellectual property rights and counterfeit goods with fines worth more than VND16 billion (USD690,000).

In addition, since the beginning of the year, the ministry has asked e-commerce platforms to review and remove nearly 223,600 shops and more than one million products, handling more than 30,000 violating shops with nearly 48,000 products.

market movements

Minh Ti e n

Vietnam among a few economies seeing positive growth in 2020 Other emerging and developing economies in Asia will also suffer an average drop of 2.2 percent. Japan, the Republic of Korea, Singapore and Australia have recorded GDP decline of 5.3 percent, 1.9 percent, 6 percent and 4.2 percent, respectively.

Despite negative figures, the Asian region is still faring better than the rest of the world. All economies in the Americas are forecast to experience negative growth in 2020. GDP decline is also forecast to cover European economies including leading players such as Germany, France, Italy and Spain, amongst others.

Ho Chi Minh City, Vietnam

The International Monetary Fund’s World Economic Outlook update released in October shows that Vietnam and China are among the few economies in the world to have maintained positive growth in 2020 amid the Covid-19 pandemic.

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ccording to IMF, Vietnam’s GDP is forecast to expand by 1.6 percent in 2020 and make breakthrough growth of 6.7 percent in 2021. Vietnam's GDP is estimated to reach USD340.6 billion this year, making it the fourth-largest economy in Southeast Asia, surpassing both Singapore and Malaysia.

Vietnam is the only economy in the ASEAN-5 group, which includes Indonesia, Thailand, Malaysia, the Philippines and Vietnam, that will maintain positive growth in a year in which the Covid-19 pandemic has been raging, exacerbating problems from the trade war between the U.S. and China.

Meanwhile, the Philippines is predicted to suffer the worst GDP decline among the ASEAN-5 group with negative growth of -8.3 percent in 2020. Thailand will come in second with negative growth of -7.1 percent while Malaysia and Indonesia will see growth of -6.0 percent and -1.5 percent, respectively.

In Asia, China will maintain positive growth of 1.9 percent while India is forecast to have its GDP growth down to -10.3 percent.

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Global growth is projected at –4.4 percent in 2020, a less severe contraction than was forecast in the June 2020 World Economic Outlook Update. The revision reflects betterthan-anticipated second quarter GDP outturns, mostly in advanced economies, where activity began to improve sooner than expected after lockdowns were scaled back in May and June, as well as indicators of a stronger recovery in the third quarter.

The Covid-19 pandemic is considered to be the main cause of the decline in the global GDP outlook in 2020.

However, most economies are expected to return to growth in 2021 although the growth in many countries will not make up for the losses in 2020, according to the IMF. Global growth is projected at 5.2 percent in 2021, and after this rebound it is expected to gradually slow to about 3.5 percent in the medium term.

partners

M anh Hai

BIC among Top 500 most profitable companies 2020 Vietnamese economy. The insurance market in general, particularly non-life insurance, is no exception. According to the Insurance Association of Vietnam, in the first six months of 2020, the total direct premium revenue of the whole non-life insurance market grew by only 7 percent year-on-year.

BIDV Insurance Corporation (BIC) was honoured to be named among Vietnam’s 500 most profitable companies this year during an award ceremony in Hanoi. This is the fourth consecutive year BIC has been included in the list.

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he Vietnam Profit 500 recognised enterprises based on several main indicators reflecting their profitability such as return on asset (ROA), return on equity (ROE), return on revenue (ROR), pre-tax profit and revenue. The companies appearing in the Vietnam Profit 500 were capable of generating healthy profits and contributing to the overall economic development of the country, supporting Vietnamese brands both at home and abroad.

In 2020, the Covid-19 pandemic has had negative impacts on the

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For BIC, by adhering to its business targets and implementing creative solutions, the insurer achieved quite good results. In the first half of 2020, BIC's direct premium saw growth of 12 percent, and consolidated profit before tax increased by 30 percent compared to the same period last year. The difficulties caused by Covid-19 became the driving force for the company to change and innovate technology and business methods as well as improving operations and service quality.

BIC confirmed it would introduce modern features for the BIC Online app to the market by the end of 2020 in cooperation with major partners, especially those in the field of technology, in order to distribute insurance products as well as offering preferential programs and promotions to bring greater benefits to customers.

partners

Phuong Giang Thanh Thao

BIDV - SuMi TRUST Leasing joins Vietnam Banking Forum 2020

BSC surpasses 2020 profit plan

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IDV - SuMi TRUST Leasing Co., Ltd (BSL) recently attended the Vietnam Banking Forum 2020, a prestigious annual event in the banking industry organised by the State Bank of Vietnam (SBV) in collaboration with The Saigon Times Group.

The 2020 forum themed "Restructure and Handle Bad Debts: Results and Policy Recommendations" aims to evaluate the results achieved after more than three years of implementing the National Assembly’s Resolution 42 and five years of implementing the plan of restructuring credit institutions and handling bad debts in accordance with the Prime Minister’s Decision 1058.

Participating members discussed the impact of Covid-19 on the economy and banking operations; outlined suitable financial solutions and financial products to support businesses and the economy in the current conditions; and predicted the trends that will be seen among economic sectors in the coming time.

BSL's representatives introduced financial leasing products to a large number of guests and businesses. The company’s products provide effective medium and long-term capital solutions for enterprises to expand their production and business, creating the foundation for sustainable growth in the future.

BIDV Securities Joint Stock Company (BSC, HOSE: BSI) announced its third quarter business results with pretax profit reaching VND78 billion (USD3.38 million), up 20 percent year-on-year.

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he company’s revenue reached VND198.6 billion (USD8.6 million), an increase of 17.3 percent over the same period last year. Brokerage revenue reached VND52.3 billion (USD2.3 million), up 52.6 percent year-on-year.

Profits from financial assets accounted for the largest proportion in the operating revenue, reaching VND106.9 billion (USD4.6 million), up 10 percent.

Interest income from loans and receivables also increased by 18.8 percent to VND32.1 billion (USD1.4 million).

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In the first nine months of 2020, BSC gained VND113.9 billion (USD4.9 million) profit before tax, exceeding 32.5 percent of the year plan.

According to the Ho Chi Minh City Stock Exchange (HOSE), in the first nine months of this year, BSC maintained its position in the Top 10 securities companies with the largest market share of stock brokerage, fund certificates and covered warrants on HOSE; Top 10 securities companies with the largest market share of stock brokerage on Unlisted Public Company Market (UPCoM); and Top 10 securities companies with the largest brokerage market share on derivatives market.

This year BSC was honoured to receive the Best Investment Bank Vietnam Award 2020 from the Global Banking and Finance Review - the leading financial magazine in the UK.

Policy update

Thuy Linh

Regulation on application of e-invoices On 19 October the government issued Decree 123/2020 guiding invoices and documents, including e-invoice related matters. One of the decree’s notable points is a delay of the deadline for compulsory implementation of e-invoices from 1 November 2020 until 1 July 2022. This delay gives some breathing room for companies which have not yet implemented this measure.

Mandatory use of e-invoices from 1 July 2022 Decree 123/2020/ND-CP abolishes Clauses 2 and 4, Article 35 of the Government Decree 119/2018/NDCP on the mandatory application of e-invoices from November 1. According to the decree, the government encourages agencies, organisations and individuals that satisfy the information

technology infrastructure to apply the provisions on e-invoices and documents outlined in the decree before 1 July.

Due to the decree’s effective date of 1 July 2022, businesses and economic organisations that have notified the issuance of pre-printed invoices, self-printed invoices and e-invoices without the tax authority's code, or have registered for the application of e-invoices with the tax authority's code, or purchased invoices from the tax authority before the issuing date of this decree, are still allowed to use these invoices until June 30, 2022, and carry out the procedures for invoices under Decree 51/2010/ND-CP and Decree No. 04/2014/ND-CP of the government on invoices for selling goods and services.

From the issuing date of this decree to 30 June 2022, if the tax authority has requested the business establishment to use e-invoices, but the business establishment has not yet met the information technology infrastructure and continues to use paper invoices, the business establishment shall send invoice data to the tax authority

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according to the form enclosed with the value-added tax declaration.

The tax authority will build data on invoices of the business establishments to put into the invoice database and post them on the General Department of Taxation’s Portal for the search of data on invoices.

For newly established business establishments, from the issuing date of decree to 30 June 2022, if the tax authority has requested the business establishments to apply e-invoices according to regulations in this decree, the business establishments shall comply with the tax authority’s guidance.

If the business establishments have not yet met conditions for information technology infrastructure but still use paper invoices, they shall comply with provisions in the government’s Decrees 51 and 04.

How to manage and use e-invoices?

Decree 123/2020/ND-CP stipulates the management and use of invoices when

Policy update

selling goods and providing services; the management and use of vouchers when carrying out procedures on tax, fee and charge collection, and regulates the tasks, powers and responsibilities of agencies, organisations and individuals in the management and use of invoices and vouchers.

Specifically, Decree 123 stipulates the principles of making, managing and using invoices and vouchers.

Accordingly, when selling goods or providing services, the seller must issue an invoice to the buyer (including goods or services used for promotion, advertising, or sample goods; goods or services used as gifts, donations, or goods used for exchange and salary payment for workers, except for goods used for internal circulation to continue the production process). The invoice must state the contents using invoice symbols and include a form following the standard data format of the tax authority.

In addition, when deducting personal income tax and collecting taxes, fees and charges, the collector must make tax deduction vouchers or tax, fee

and charge receipts including a full prescribed list of contents to provide to the payer.

If the e-receipt is applied, it must be in the standard data format of the tax authority. If individuals authorise tax finalisation, personal income tax deduction vouchers are not issued.

For individuals who do not sign a labour contract, or sign one of less than three months, the employer may choose to issue a tax deduction voucher for each tax deduction, or issue a tax deduction voucher for multiple deductions for each tax calculation.

For individuals signing labour contracts for three months or more, the employer shall only issue to individuals one tax deduction voucher within a single tax period.

The decree specifies that when using invoices and receipts, enterprises, economic organisations, other organisations, business households and tax, fee and charge collectors must register to use them with the relevant tax authority, or announce the

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issuance according to regulations. For pre-printed invoices and pre-printed receipts issued by the tax authority, the tax authority shall notify the issuance.

The Decree also stipulates that organisations, businesses and households must report the use of invoices purchased from the tax authority and the use of pre-printed receipts, self-printed receipts and receipts purchased from the tax authority.

Notably, the goods seller or the service provider acts as an enterprise, an economic institution or other institution authorised by a third party for making e-invoices for selling goods and providing services. That e-invoice must state the name of the seller as the authorising party. The authorisation must be completed in writing by the authorising party and the authorised party and must present information on that e-invoice.

If the authorised e-invoice doesn’t include the tax authority’s code, the authorising party must send the e-invoice data to the tax authority via service providers.

lifestyle

Thu y An

National park weekend getaways To escape the hustle and bustle of city life and enjoy the fresh, crisp air of forests, head to one of the Southern region’s stunning national parks.

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u Gia Map, Nam Cat Tien and Lo Go-Xa Mat are among the best national parks the region has to offer and come highly recommended for visitors.

Bu Gia Map National Park Lying around 200 kilometres from Ho Chi Minh City, Bu Gia Map National Park in Binh Phuoc province, covers more than 26,000 hectares. Among this area are 21,316 hectares of natural forest home to 724 species of plants and 473 animals including rare or threatened species.

In Bu Gia Map, travellers can experience trekking routes through beautiful sites including Dac Mai Cascade,

S’tieng ethnic people’s village, Dak Ka Stream, Luu Ly Cascade and Dak Bo Cascade. Tours encompassing these trekking routes give tourists a chance to immerse themselves in nature, enjoy the beauty of the park’s cascades and learn more about local life.

There are two roads leading to the national park. Travellers can follow a ring road along the Dak Huyt River, known as a natural border between Vietnam and Cambodia. The other route is via Dak Nong province.

The tours offer several exciting activities, including fishing, swimming in Dak Ka Stream, Luu Ly and Dak Bo cascades and staying the night in a tent.

Visitors can try local specialties made with fish caught from streams and wild vegetables foraged from forests.

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lifestyle

the national park comprises semideciduous forests, lowland deciduous forests, evergreen forests and melaleuca forests.

The national park is home to a number of rare species including langurs, whitechested bears, Asian openbill storks, Alexandrine parrots and Sarus cranes.

Walking through the forest and taking

In November, paths in the national park take on a special beauty when they are carpeted with wild sunflowers.

Nam Cat Tien National Park Around 150 kilometres from Ho Chi Minh City, the 700-square-kilometre national park stretches across Dong Nai, Lam Dong and Binh Phuoc provinces.

More than 60 species of orchid and 40 rare animals living in Nam Cat Tien have been listed in the Red Book.

The national park itself is a UNESCOrecognised World Biosphere Reserve.

At Bau Sau (Crocodile Lake) in Nam Cat Tien National Park tourists can admire crocodiles and birds. The biosphere reserve also features Dao Tien (Fairy Island), an area fenced to protect rare animals and plants, and a bear rescue station where bears that are found injured in the forest are rehabilitated.

Visitors to Ta Lai can learn about the local life of Ma, S’tieng and Tay ethnic groups and try local specialties. Those who want to stay overnight can set up camp in the forest or book eco motels nearby.

Lo Go-Xa Mat National Park The national park, about 150 kilometres from Ho Chi Minh City, spans more than 16,000 hectares in Tay Ninh province. Its geographical location, height of land and hydrological regime are greatly affected by Vam Co Dong River’s flow and significantly contribute to the local vegetation. According to scientists,

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in the sights, sounds, smells and fresh air, taking a boat trip along the river and catching mussels are amongst the enticing activities on offer for visitors.

A tour in Lo Go-Xa Mat also enables visitors to experience historical relics deep in the forest or a tour of Da Ha Stream where they can learn forest survival skills from a ranger.

lifestyle

Ho a ng Mai

Vienna-the world’s most liveable city

Vienna City Hall

Vienna - the Austrian capital has been named the world’s most liveable city for the second year running.

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ith an overall rating of 99.1 out of a possible 100, Vienna has topped the city liveability chart compiled by The Economist Intelligence Unit, beating Australia’s Melbourne and Sydney, into second and third place.

Whether you call it Wien or Vienna, the historic city is arguably one of the finest in the world. Its imperial ways, modern structuralism and rich history along with its world renowned honing of art and music has repeatedly led it to the top spot on the list of best cities.

In Vienna, imperial trappings still linger in the air, people still greet each other with a casual Grüß Gott (May God be with you), and numerous grand and beautiful palaces and museum complexes dot the skyline. All the must-see museums, including the Art History Museum, the Natural History Museum and the Leopold Museum, are located in Vienna’s MuseumsQuartier in the old Habsburgian Imperial Palace.

If modern art is your thing, head down to the Museum of Modern Art to feast your eyes on a fantastic array of 20th and 21st-century contemporary art, including a large collection of nouveau realism and pop art. From Pablo Picasso to Andy Warhol and Franz West, the collection and special exhibitions represent a blend of tradition and experimental from the

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past through to the present.

A major part of Vienna’s cultural identity lies in its taste and keen participation in music. More famous musicians have lived here than in any

lifestyle

dance, music, and fine art to theatre performances, all of which spice up Vienna’s cultural life during the summer. Emerging as a "demonstration of Austria's will to survive", the festival is proof to the world that a city marked by the ravages of war is able to engage in cultural activities.

A festival at City Hall

other city of the world including such greats as Beethoven, Mozart, Vivaldi, Schubert and Salieri. While legendary names make the history of the city of music, contemporary Vienna is all about preserving its reputation for music and creating newer gems for the world.

Throughout the year, a number of world-class festivals are held all over the country, from outstanding classical music events to pop concerts – where the most innovative playing can be heard. One of the most popular events is the Vienna Festival Weeks, encompassing everything from

Besides the excellent infrastructure, it is the clean, safe and green living environment and the rich culture that contribute to Vienna’s first place in the liveability chart. Vienna is also chosen as No.1 of the 25 “Best Cities for Young People to Live in”. Indeed, all year round, there are several cultural events to soak up - from Wiesn (Oktoberfest) to museums - to ensure you'll never get bored of living in Vienna.

Vienna offers a unique ensemble of traditional heritage and modernity. The city holds its past close, incorporating it into everyday life, keeping the good and reinventing traditions which are no longer fit for purpose while retaining a deep sense of self. It’s marvellous to see how with years of history, art, music and development Vienna retains its class, retaining its royal air. It is truly a city that is simply impossible not to fall in love with.

MuseumsQuatier

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CSR

Ho a Quynh

BIDV donates VND8 billion to flood-hit central region

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ietnam is prone to destructive storms and flooding due to its long coastline. Last year, natural disasters - predominantly floods and landslides triggered by storms - killed 132 people and injured 207 others in the country.

The Party Committee, Board of Directors and Board of Management of BIDV has pledged VND8 billion to provide relief to the flood-hit people affected by these historic floods. The bank has called for donations from its employees to provide urgent relief to communities in Quang Binh, Quang Tri, Hue and Quang Nam province. So far, the total contribution from the bank has reached VND10 billion.

This October, heavy downpours triggered flash floods and landslides, affecting the lives of thousands of people. More than 100 people have died and 20 others are missing in the central region, following weeks of severe flooding and landslides. Over a hundred thousand homes have been submerged by floodwaters, with rescuers mounting a

BIDV employees lend support to local people in flood-hit region

desperate bid to get food and drinking water to those cut off.

Murky floodwaters have swept through the Imperial City of Hue, the tourist hotspot Hoi An, Quang Tri and Quang Nam province.

Roads, infrastructure and crops have also been devastated by the floods, meaning that hundreds of thousands of citizens will need housing and income support in the coming weeks.

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To immediately help the people in need, BIDV has directed its branches in the central region to quickly coordinate with the localities to provide relief to the flood-hit areas. The money raised has been spent on necessities and essential items to support people during and after the floods.

As a lender, BIDV has also focused on efficient solutions to practically support its individual and corporate customers who have been affected by the disaster.

Along with that, BIDV Trade Union is continuing to mobilise its employees nationwide to provide donations and help flood survivors in central Vietnam.

리뷰

2019년 11월, 하나은행은 BIDV의 전략적 투자기업이 되었으며 하나은행과의 협력은 BIDV의 발전과정 및 국제 통합 과정의 중요한 이정표입니다.

BIDV와 하나은행의 고객과 파트너에게 두 회사의 협력관계에 대한 활동 정보 및 한-베 문화, 사람, 역사 정보 등을 제공하기 위해 2020년 8월부터 ‘BIDV Review’ 잡지의 대표적인 기사들을 한국어로 번역하여 발간하고 있으니 환영해주시기 바랍니다.

뉴스

BIDV Tran Long 부행장과 VSS Le Hung Son 부행장 협력 협정 체결 후 악수

BIDV와 베트남 사회 보장청 간의 전자거래 결제 프로세스 관련 협력 협정 체결 2020년 10월 15일, 베트남 하노이 에서 BIDV은행과 베트남 사회 보장 청 (VSS) 은 전자거래 결제 프로세 스 및 화폐 흐름 관리 관련 협력 협 장을 체결했다.

이는 BIDV SmartBanking, BIDV Online, BIDV Business Online, 국선 게이트, 사회보 험 전자거래 게이트 등과 같은 스마트 앱으로 사회보험금을 납부하는 개인과 조직을 위한 편 의 서비스와 편리시설을 제공하기 위한 베트남 사회 보장청 (VSS)의 캠페인에 이어가고 있는 활동인 것이다. 이러한 서비스는 코로나 19 사 태로 불안 가득한 시국에 사회보험금을 납부하 는 개인과 조직에게 편한 도움을 줄 수 있다. 체결식 직후 사회보험 전자거래 게이트로 사 회보험금 납부 24/7 거래 서비스 전개를 시작 했다. 따라서 BIDV 계정을 개설하고 전자결제 서비스를 신청하는 개인과 조직들은 사회보험 금 납부 24/7 거래가 가능하며 납부금은 자동 으로 계산되고 납부 내역도 신속히 기록된다 고 밝혔다.

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BIDV 리뷰

베트남 사회 보장청(VSS)은 보험을 등록하는 편리함을 위해 최신 정보통신기술을 도입하는 선두적인 공공기관인 것이다. 2020년 1월부 터 9개월 동안 베트남 사회 보장청에서 50만 개의 기업 및 7000명이 접수한 전자거래가 총 5270만 여 건에 달하며 이를 위 최신정보통신 기술을 사용하여 처리함으로써 보험 등록자의 시간과 비용이 상당히 절약되었다고 밝혔다. 이번 베트남 사회 보장청(VSS)과 BIDV은행 의 협력에는 보험 등록자의 편리함을 마련하는 것에 그 의의가 있으며, 비 현금 결제 및 행정절 차 개혁에 대한 정부의 지침에 따라 위 전자거 래 결제 프로세스 등을 적극적, 긍정적으로 실 시하고 있다고 밝혔다.

Dang Thang 기자

뉴스

BIDV, “베트남 최고의 트랜잭션 은행” 및 “베트남 최우수 자금관리 은행”으로 선정 2020년 10월 22일에 BIDV은 행은 아시안 뱅커 (The Asian Banker) 잡지로부터 은행의 효 과적 결제 방법과 화폐 흐름 관 리 방법으로 “베트남 최고의 트랜 잭션 뱅킹 은행 (The Transaction Banking Awards)” 및 “베트남 최 우수 자금관리 은행 (Best Cash Management Bank in Vietnam)” 의 상을 입상했다. 입상한 2가지의 상은 The Asian Banker 잡지 의Transaction Banking Awards 상에 속하 는 상이며, 수상식은 매년 개최되며 뛰어난 성 취를 가진 은행, 금용 등의 기업들을 언급하여 수상하는 행사이다. 심사 숙고한 과정을 거치 며 동시에 시장분석 및 전문가들의 평가를 받 는 등의 단계들을 통과하여 최종적으로 받을 수 있는결과로 만들어진 상이다. 입상된 은행 들은 시분성장율, 매출액 비중, 고객성장비중, 경영효과 등에 관한 이 모든 어려운 기준에 맞 춘 은행들이었다.

The Asian Banker 담당자에 따르면, 이 상 은 BIDV의 화폐 흐름 관리의 2019년에 시분

40%를 차지함으로써 거래건수와 거래가치 의 상당한 성장을 기록했다고 밝혔다. 동년에 BIDV의 화폐 관리의 매출액은 3200만 달러 에 달하며 이는 36%가 증가한 수치이며 BIDV 는 전국에 약 1000 개의 거래 지점을 운영하 고 있다. BIDV 은행은 베트남의 현금결제에 있 어 최고의 통신기술을 도입하여 전자거래 서

비스와 전자기술 솔루션을 강하게 제공해 오 고 있다고 덧붙였다. 게다가 기업을 위한 자본 금 관리 솔루션, 24시간 온라인 거래 결제, 가 상계좌 운영 솔루션 등의 다양한 서비스를 제 공하기도 한다. 그러한 돋보이는 성취로 이 2 가지의 명예적인 상을 받게 된 베트남에서 유 일한 은행이다.

BIDV은행은 전국 다양한 결제 네트워크를 가 지고 있고 전 세계 2300 곳의 재정기업들과 파 트너쉽을 유지하고 있다. 또한, 정보통신기술 을 도입하여 각 고객에게 편리한 서비스를 제 공하는 것도 BIDV의 발전 중심점이라고 할 수 있다. BIDV은행은 Virtual Account 상품을 제공하는 최초의 은행들 중에 하나이고 Napas 와의 ACH 결제시스템 반전 프로젝트를 진행 하는 4개의 은행 중에 하나이기도 하다. BIDV 은행은 실시간 결제 게이트를 구축하여 기업의 회계 시스템과 BIDV IBank 전자결제 시스템 을 연결하기 시작했다. 뿐만 아니라 BIDV은행 은 Trade Finance의 거래에 Blockchain 기술 을 성공적으로 도입한 베트남의 최초의 은행으 로 기록되었다.

BIDV "베트남 최고의 트랜잭션 은행" 및 "베트남 최우수 자금관리 은행" 선정

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2020 년 10 월

Trang Trinh 기자

뉴스

BIDV, 2020년 최고 외환 서비스 제공 은행 BIDV는 아시안뱅킹앤파이낸스(ABF)가 지정한 “베트남의 최고 외환 서비스 제공 은행”상을 3년 연속 (2018~2020년) 수상했다.

아시안뱅킹앤파이낸스(ABF)에 따르면, 이 상 은 금융 분야의 선도적인 전문가, 설문 조사 연 구 전문가 등으로 구성된 심사위원의 평가를 통 해 여러 은행고객 대상 최고의 외환 서비스를 제 공하는 것에 대한 BIDV의 노력에 대한 증거다.

BIDV는 고객에게 전면적인 외환 서비스를 제 공하며 교차판매 상품 및 환율 해지 상품을 통 해 위험을 최소화하여 거래 계획 최적화 등의 유연한 솔루션을 지원한다. 또한, 고객의 비용 과 시간을 최소화하면서 거래를 빠르고 편리하 게 진행할 수 있도록 현대 기술을 기반으로 서 비스 개발에 치중했다. 아시안뱅킹앤파이낸스는 상품, 정책 메커니즘 및 기술 적용 등 세가지 기준에 의한 BIDV의 외 환 활동을 높이 평가했다. 구체적으로 수년에 걸쳐 BIDV는 고객에게 조건, 통화 및 유연한 지불 시간 등의 다양한 외환 서비스를 제공하 며 이를 통해 고객이 사업의 특징에 따라 외환 거래 비용을 미리 예상할 수 있다. 또한, 외화 거래와 예금 상품, 신용, 송금 등의 패키지 상품 을 제공함으로써 고객의 거래 비용 감소 및 환 율 해지 솔루션을 지원하며 고객 혜택을 최적 화하기 위해 많은 정책을 발표했다. 이러한 정 책을 통해 고객의 외화 거래량이 150 % 증가 할 만큼 BIDV의 상품이 날이 갈수록 더 많은 고 객들에게 도달하는데 도움이 된다. 기술적인 면에서 BIDV는 BIDV 스마트 뱅킹 및 BIDV아이뱅크를 통해 외환 증명 서류 전송, 거 래 예약, 외환 구입 등 여려가지 서비스를 제공 하고 있으며 거래 시간과 절차를 최소화하기 위해 고객에게 디지털 플랫폼을 통해 최고의 경험을 제공하고자 노력하고 있다. 아시안뱅킹앤파이낸스가 BIDV를 높이 평가하 며 위와 같은 상을 수여했으며 이는 BIDV가 고 객에게 최고의 서비스를 제공하기 위해 상품 및 서비스 품질을 개선하기에 지속적인 노력한 결과의 증거이며 베트남의 선도적인 상업 은행 임을 강조한다.

BIDV ”2020년 최고 외환 서비스 제공 은행” 수상

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BIDV 리뷰

Tien Trung 기자

뉴스

BIDV, “노동자 이익을 위한 기업” 선정 베트남 전국에서 203개의 교육 프로그램이 진행되었으며 이 프로그램은 약 8 만명의 직원이 참가했다. 또한 타 기업 대비 경 쟁력 있는 급여 및 보너스 제도를 통해 직원이 기업 기여에 상응하는 만큼 보수를 지급하는 정책을 진행하고 있으며, 능력 있는 젊은 직원 을 대상으로 승진 기회를 열어주고 있다. “노동자 이익을 위한 기업”은 베트남 총 연맹, 노동 보훈 사회부, 베트남 상공회의소(VCCI) 가 공동 후원하며 노동신문이 진행하고 있는 상이다. 이 상은 회사 근무환경을 적극 개선하 며 직원의 물질적, 정신적 도움을 주고 조화롭 고 안정적이며 진보적인 노사 관계, 국제 통합 프로세스에서 지속 개발 가능한 목표를 향하며 좋은 기업 문화를 구축하기 위해 끊임없이 노 력한 기업을 평가하고 기리는 상이다.

BIDV Tran Xuan Hoang 이사 겸 노조위원장 BIDV 대표 베트남 노동 총연맹 지급 표창장 수령

이 상은 2020년 10월 2일 하노이에서 열린 영예식에서 수여되었으며 BIDV는 베트남 노동 총연맹 (Vietnam General Confederation of Labor)에서 인증서를 받은 10개 기업 중 하나이다.

BIDV의 개발 전략에서의 가장 중요한 역할은 직원이다. 따라서 BIDV가 중요한 목표를 이루 기 위해 해야 되는 일 중 하나는 직원 수를 충분 히 확보하고 이들을 전문가로써 발전시키는 것 이다 현재 BIDV는 25,000명의 전문적인 인력 … 을 가지고 있으며 이는 BIDV가 베트남내 타 상 업은행 대비 우수한 인적 자원을 보유한 은행 이라는 것을 뒷받침한다.

BIDV는 인력양성 촉진을 위해 여러가지 교육 프로그램을 통해 진행하고 있으며 ’19~’20 년에

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2020 년 10 월

응우엔딩캉(Nguyen Dinh Khang) 중앙 공 산당 위원, 베트남 노동 총 연맹 주석에 따르 면, 올해 상을 받는 기업들의 경우 엄격한 기준 을 준수하여 선정하였으며, 이 기준은 특히 코 로나19로 인해 노동자들의 수익 및 정부 기여 가 효과적으로 유지하는 것이 중요하며 국가의 경제 발전 및 사회안전을 보호해주는 기업들을 선정하였다.

BIDV의 경우 `17~`18년도에도 위 상을 수여 받았으며, 사회보훈노동부와 베트남 상공회의 소 (VCCI)가 표창장을 수여했다. 쩐수언황(Tran Xuan Hoang), BIDV 이사 겸 BIDV 노조위원장이 베트남 노동 총연맹에서 지급한 표창장을 BIDV 대표로 수여 받았다.

Hoa Quynh기자

문화

주말 휴가를 즐기기에 이상적인 국립공원 남 깟 띠엔 공립공원 호치민시에서 약 150킬로미터로 떨어진 700 제곱 킬로미터의 국립공원은 동 나이 (Dong Nai) 성, 람동 (Lam Dong) 성 및 빈 푸옥 (Binh Phuoc) 성에 걸쳐 있다. 여기에 60개 이상의 난초 종, 적색목록에 등재되어 었는 40 개 이상의 희귀종 동물이 서식하고 있다. 위 국 립공원은 유네스코가 지정한 국제보호지역 이다. 남 깟 띠엔 국립공원의 악어 호수인 바우 사우 호수는 관광객들이 악어와 새를 감상 할 수 있 는 곳이다. 생물권 보호구역에는 희귀종 동식 물을 보호하기 위해 울타리가 쳐져 있는 따우 띠엔 (Dao Tien) (요정의 섬)과 숲에서 다친 곰을 돌보는 곰 구급소를 포함한다. 게다가 Ma, S’tieng, Tay 등 소수민 족의 지역 생활에 대해 알아보고 지 역 특산물을 맛보기 위해 타라이 (Ta Lai)를 방문하는 것이 좋다. 하룻밤 머물고 싶은 관광객은 숲에서 캠프를 치거나 근처에 있는 에코 모텔을 예약 할 수도 있다.

도시의 혼잡과 소란스러움 에서 잠시 벗어나 숲속에서 신선한 공기를 즐기고 싶다 면 국립공원을 선택 하는 것 이 좋다.

로 꼬싸 맛 공립공원

부 짜 맙 (Bu Gia Map), 남 깟 띠엔 (Nam Cat Tien), 로 꼬싸 맛 (Lo Go-Xa Mat) 등은 그러한 목적으 로 관광객에게 추전되는 국립공원들 이다.

부 짜 맙 공립공원 호치민시에서 약 200킬로미터로 떨어진 빈 푸옥 (Binh Phuoc) 성에서 위치한 국립공원 은 26,000 헥타르 이상의 면적을 차지하고 있 다. 21,316 헥타르의 자연림에는 724 개의 식 물, 473 개의 희귀종과 멸종 위기종 동물의 서 식지이다. 부 짜 맙에서 관광객들은 딱마이 (Dac Mai) 폭포, S'tieng 민족 마을, 딱카 (Dak Ka) 개 울, 르울리(Luu Ly) 폭포, 딱보 (Dak Bo) 폭 포 등을 지나가는 트레킹 체험 등을 할 수 있다. 트레킹 투어는 관광객들에게 자연에 취하며 폭 포의 아름다움을 즐기면서 지역 생활에 대해 더 알아보는 기회를 제공한다.

국립공원으로 들어갈 수 있는 길은 총 두 개가 있다. 하나는 베트남과 캄보디아 사이의 자연 국경으로 알려진 딱휫 (Dak Huyt) 강을 따 라 순환도로로 갈 수 있다. 또한 딱농 (Dak Nong) 성을 지나가는 다른 도로를 선택해도 좋다. 이 여행은 물고기 잡기, 딱카 (Dak Ka) 개울 에서 수영하기, 르울리(Luu Ly)와 딱보 (Dak Bo) 푹포에서 야간 캠핑 등과 같은 여러 가지 흥미로운 활동을 제공한다. 또한 관광객은 새 울물에서 잡은 물고기, 숲에서 따 온 산채 등 을 주원료로 조리되는 지역 음식을 맛보는 것 이 좋다.

11 월에 부 짜 맙 국립공원의 길에는 야생 해바 라기 꽃으로 덮여 있을 것이다.

32

BIDV 리뷰

호치민시에서 약 150 킬로미터로 떨 어진 국립공원은 떼이닌 (Tay Ninh) 성의 16,000 헥타르 이상에 걸쳐 있 다. 이러한 지리적 위치, 토지 높이와 수문계는 밤 꼬 동(Vam Co Dong) 강의 흐름에 크게 영향을 받고 지역식생에 상 당히 기여한다. 과학자들은 이 곳에서 반낙엽 수림, 저지 낙엽수림, 상록수림, 멜라루카 숲 등을 포함한다고 믿는다. 여기에서 랑구르, 흰가슴곰, 아시아 열린 부리 황새, 알렉산드린 앵무새, 사루스 두루미와 같 은 희귀한 동물들이 서식하고 있다. 관광객들이 숲 속에서 신선한 공기를 즐기기, 강에서 배 타기, 홍합 잡기 등과 같은 활동을 놓 쳐서 안 될 것 같다. 이 외에 숲 속 깊숙한 곳에 있는 유적지 투어, 또는 삼림 감시원이 숲에서 생존 스킬을 가르쳐 주는 다하 (Da Ha) 개울 투어를 체험 할 수 있다.

Hoang Mai 기자

U

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