BIDV Review 71 - May 2021

A Newsletter of Bank for Investment and Development of Vietnam JSC • Issue No.71 | May 2021

BIDV inks pact with AFD to support

energy projects

BIDV continues to make

Forbes Global 2000 download Bidv review

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 nearly 1,100 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, 194 Tran Quang Khai str., Hoan Kiem dist., Hanoi, Vietnam Tel: (+84) 24 22205544 Fax: (+84) 24 22225316 Contact center: 19009247 Email: bidvreview@bidv.com.vn License No.16-GP-XBBT dated 9 March 2021 by the Ministry of Information and Communications Printed at Vietnam Book Printing Joint Stock Company

Editor’s Letter

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Dear readers, espite the complicated developments of Covid-19, BIDV posted stable and positive operation in the first quarter. According to a consolidated quarterly financial report recently released, BIDV's total assets reached over USD67.8 billion, up 2.9 percent year to date.

Profit before tax was about USD149 million, 1.9 times higher than the same period last year. The bank made full risk provisions according to debt classification with non-performing loan ratio controlled at 1.57 percent, slightly down from 1.68 percent at end-2020.

In May, BIDV - Vietnam's largest commercial bank by assets – continued to be named in Forbes Global 2000 – the list of the world’s biggest, most powerful and most valuable companies. This is the seventh consecutive year BIDV has made the Forbes Global 2000.

According to the list, BIDV ranks 1575th and is the largest commercial bank by revenues, total assets and charter capital among Vietnamese commercial banks.

In the month, BIDV and the French Development Agency (AFD) signed a credit facility agreement aiming at promoting green investments, focused on renewable energy and energy efficiency sectors. Accordingly, AFD will grant a long-term USD 100 million concessional credit line facility to BIDV as well as providing technical assistance of EUR300,000 to BIDV and its customers. In recent years, BIDV has been trusted and selected by the Government, ministries and donors to relend and serve key and large foreign entrusted funds.

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BIDV issued Resolution 534 on building risk culture. On this occasion, Mr. Ngo Van Dung, member of the Board of Directors of BIDV shared about risk culture - the concept which was previously quite vague for most of the staff at BIDV. According to Mr. Ngo Van Dung, the success of the resolution on risk culture depends significantly on human factors.

BIDV is always a pioneer in social security activities. In the month, the bank presented VND25 billion (USD1.1 million) to the Ministry of Health for Covid-19 vaccine purchase. This donation will directly support the government agencies to carry out the fight against the pandemic. To date, the donation BIDV has given to the pandemic fight in 2020 and 2021 is USD3 million. For the first 5 months of 2021 alone, the banking sector staff donated about VND200 billion (USD8.7 million) to support the fight against Covid-19.

In the last pages, let’s discover Hai Van Pass – one of the world's most beautiful drives according to the renowned US magazine Travel + Leisure. With a length of 20 kilometres and 2,680 pictures per km, Hai Van Pass ranked fourth in the list.

contents

BIDV HIGHLIGHTS

PARTNERS

03. BIDV continues to make Forbes Global 2000 04. BIDV inks pact with AFD to support energy projects

LIFESTYLE

22. Growth potential of a young joint venture 24. Hai Van Pass among world's most beautiful drives CSR

26. BIDV joins the response to Covid-19

06. Sao Khue Awards honour BIDV products 08. BIDV posts positive quarterly profit 09. IT milestones of BIDV in 30 years 10. Fostering risk culture at BIDV 12. Financial inclusion for women-led SMEs

27. BIDVRUN and footprints in the community

INSIGHTS

14. The future of bancassurance in digital era

뉴스

29. BIDV, 글로벌 2000대 기업 선정 30. BIDV 리스크 관리 문화 구축 32. BIDV, 1 분기 세전이익 3조4천억 동 달성

16. Prospect of attracting FDI in 2021 MARKET MOVEMENTS

18. Vietnam’s economic growth to remain positive

33. AFD, BIDV에 재생 에너지, 에너지 절약 분야

POLICY UPDATE

기업 지원을 위한 1억달러 CFA 체결

19. UKVFTA officially becomes effective

34. BIDV 10대 디지털 성과 35. BIDV, 코로나 19 백신 구매에 250억 동 지원 36. BIDV, “BIDV Run for a green life” 대회 성료

PRODUCTS & SERVICES

20. Free iBank - fast transfer

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BIDV Highlights

Tha o Minh

BIDV continues to make Forbes Global 2000 BIDV, Vietnam's largest commercial bank by assets, has been named in Forbes Global 2000 for the seventh consecutive year.

the bank both locally and internationally. The bank is also highly regarded by some of the world’s best known organisations. The world’s leading valuation consultancy firm Brand Finance, based in the UK, included BIDV in the list of the world's 500 most valuable banking brands for years. The Asian Banker honoured BIDV as the best retail bank in Vietnam for the sixth year. In March 2021, the global rating agency Moody’s changed the outlook for long-term rating of BIDV to positive from negative. BIDV’s longterm deposits rating and issuer rating were affirmed at Ba3.

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orbes recently released its annual Global 2000 list, an international ranking of the world’s biggest, most powerful and most valuable companies based on an analysis of four metrics: sales, profits, assets and market value. This year’s list names five Vietnamese representatives including BIDV, Vietcombank, VietinBank, Vingroup and Techcombank – the newcomer.

This is the seventh consecutive year BIDV has made the Forbes Global 2000. The annual Global 2000 ranking from the Forbes is regarded as one of the most authoritative rankings of the world's biggest and most valuable companies. According to the list, BIDV ranks 1575th with revenues of USD5.2 billion, profits of USD304.7 million, assets of USD65.7 billion and market capitalisation of USD7.3 billion. In Vietnam’s banking

BIDV Tower - the headquarters of BIDV. Photo: Thai Van Hoa

system, BIDV is the largest commercial bank by revenues, total assets and charter capital.

BIDV’s continuous presence in the Forbes Global 2000 is evidence that affirms the position and strength of

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This year's top 10 companies are Industrial and Commercial Bank of China (ICBC), JPMorgan Chase, Berkshire Hathaway, China Construction Bank, Saudi Arabian Oil Company (Saudi Aramco), Ping An, Bank of America, Apple, Agricultural Bank of China and Amazon.

Given the impact of the Covid-19 pandemic, the 2000 companies listed in the Forbes Global 2000 experienced an increase in market capitalisation of 47 percent while revenues dropped 6 percent and profits down 24 percent.

BIDV Highlights

Ngu y en Huye n

Mr. Le Ngoc Lam, CEO of BIDV (left) and Mr. Fabrice Richy, Director of AFD Vietnam represent the two sides to sign the agreement

BIDV inks pact with AFD to support energy projects On 26 May 2021, BIDV and the French Development Agency (AFD) signed a credit facility agreement of USD100 million aiming at promoting green investments, focused on renewable energy and energy efficiency sectors.

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ccordingly, AFD will grant a long-term USD100 million concessional credit line facility to BIDV as well as providing technical assistance of EUR300,000 to BIDV and its customers.

One of the leading financial institutions in Vietnam, BIDV has long experience in managing foreign entrusted funds and providing modern and comprehensive banking products and services for customers, contributing to effective realisation of the target set by donors and the government of Vietnam. In recent years, BIDV has been trusted and selected by the Government, ministries and donors to relend and serve key and large foreign entrusted funds. In particular, for AFD funds, BIDV has been trusted to implement a number of projects such as the Northern Power Transmission Project worth EUR40

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million; housing development program in flood-prone areas in the Mekong Delta worth EUR25 million, among others.

Mr. Le Ngoc Lam, Chief Executive Officer of BIDV stated: “The signing of the USD100 million SUNREF Green Credit Line Agreement marks an important milestone in the cooperation between BIDV and AFD, which shall be a step forward and pave the way to new partnership opportunities between parties in all development investment sectors. It reaffirms the fact that application of international standards on the green credit will help BIDV improve its operational efficiency and control strictly credit risks. BIDV is willing to establish partnership with international donors in promoting Vietnam's sustainable economic development”.

Mr Fabrice Richy, Director of AFD Vietnam said: “This credit line to BIDV

BIDV Highlights

is the first SUNREF Green Credit Line provided by AFD in Vietnam, in the form of non-sovereign concessional loan. SUNREF is AFD’s green finance label deployed with almost 70 partner banks in 30 countries. AFD hopes to continue providing concessional loans and grants to Vietnamese banks and state-owned enterprises to contribute to green growth and climate change’s adaptation in Vietnam.”

Over the past time, recognizing the importance of supporting enterprises to invest in the energy sector, especially renewable energy, energy efficiency, environmental protection, climate change response and green growth, BIDV has focused its resources on this sector and become a pioneer in green credit in Vietnam. The loan scale for the energy sector at BIDV has grown constantly during 2017-2020 at the rate of 11.59 percent p.a. Outstanding balance of this sector reached over VND68,000 billion (USD3 billion), accounting for 5.78 percent of the bank’s total outstanding balance. As with the growth of the energy sector, BIDV’s loans to renewable energy has grown impressively, accounting for 90 percent of the bank’s energy loan structure.

As well as providing BIDV with a long term fund to finance green and sustainable development, AFD will cooperate with BIDV to optimize the positive social and environmental impacts of the credit line through assisting the formulation of a social and environmental management system, improving risk analysis capacity and sharing experiences in implementing SUNREF in other countries.

About BIDV

About AFD

Established in 1957, BIDV is the largest commercial bank in Vietnam by total assets and charter capital. By the end of the first quarter 2021, the bank's total assets reached over VND1.56 quadrillion.

The bank boasts an extensive network of nearly 1,100 domestic and foreign branches and transaction offices. BIDV has established partnerships with 2,300 financial institutions around the globe. BIDV is a reliable choice of major international organizations such as World Bank, ADB, AFD, JICA, NIB, etc., and highly appreciated by reputable international organizations through a series of awards and titles such as: Top 2,000 largest public companies in the world (Forbes), Top 300 most valuable banking brands in the world (Brand Finance) among others.

The French Development Agency (Agence Française de Développement) (AFD) Group is a public entity which finances, supports and expedites transitions toward a more just and sustainable world. Active in more than 4,000 projects in the French overseas departments and some 115 countries, AFD teams strive to promote health, education and gender equality, and are working to protect common resources - peace, education, health, biodiversity and a stable climate. AFD has been active in Vietnam since 1994 and has financed more than 90 projects worth almost EUR2.3 billion in various sectors: transport, infrastructure, energy, agriculture, etc. In line with French cooperation priorities in Vietnam, AFD is positioning its operations to support the implementation of the Paris Agreement.

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BIDV Highlights

Hu ong Thi

Sao Khue Awards honour BIDV products

Depository and Supervisory Banking System was among Top 10 Sao Khue Awards 2021

Recently in Hanoi, BIDV has been honoured for its IT products at Sao Khue Awards 2021. Particularly, the Depository and Supervisory Banking System was among Top 10 Sao Khue Awards 2021

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ver the years, BIDV has been honored with many domestic and international IT awards. This is the 9th year BIDV has participated in Sao Khue Awards organized by Vietnam Software and IT Services Association (VINASA) with 24 products honoured so far.

In 2021, six IT products of BIDV have been awarded Sao Khue title, including: Depository and Supervisory Banking System; Virtual Account System (in the fields of finance – accounting); BIDV Home System; Bond Trading System

(in the field of digital transformation platforms); and Online registration/ centralised service registration; Charitable BIDV RUN app (in the field of software solutions).

The Sao Khue awards are testament to the prestige of BIDV as a commercial bank with leading index of readiness for IT development and application in Vietnam, recognising the bank’s efforts in bringing the best valuable products and services to customers as well as pioneering in seizing new opportunities to unlock digitalisation potential in banking operations.

This year the event has set a record with nearly 300 nominations from 161 enterprises, representing a 57.8 percent year-on-year increase. This is the largest in terms of the number of nominations and registered businesses since the event was launched. Through three rounds, the jury selected 180

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excellent IT platforms, services and solutions to award the Sao Khue in 2021, including 25 platforms, 32 services and 123 solutions.

Top 10 Sao Khue with products in six groups of awards such as digital products, solutions; digital transformation platforms; new technology solutions for all sectors; digital start-up products and solutions would be supported by VINASA, connecting with technology partners to build a Sao Khue Ecosystem. On that basis, award-winning products could reach users faster, forming complete digital ecosystems for Vietnamese people, helping accelerate the process of national digital transformation.

Launched in 2003, Sao Khue, sponsored by the Ministry of Information and Communications, has become the most prestigious award in Vietnam's IT sector.

BIDV Highlights

Depository and Supervisory Banking System provides a full range of functions, products and services for customers in the field of securities depository and supervision. The system offers smooth handling of services/products related to the underlying stock market. BIDV became the first bank to provide the most complete securities depository and supervisory services in the market.

Online registration/centralised service registration system is a multi-channel solution, providing customers with a consistent and seamless experience when banking with BIDV. In addition, the system also supports BIDV staff to handle customers’ registration for products and services in a centralised and fast manner, thereby reducing turnaround time and increasing staff productivity.

Virtual account system is a solution for collection through a virtual account, linking the primary current account of a corporate customer opened at BIDV to a set of virtual accounts. The solution helps businesses control and manage cash flow effectively, save costs, automate the accounting process, and reconcile transactions.

Bond Trading System provides a full range of functions, products and services in the fields of bond issuance, purchase, sale, depository and transfer. The system is of great significance to the bond market.

BIDV Home system is a mobile application that allows customers to buy a house and apply for a BIDV loan. Customers can search for apartments and housing projects in many locations, calculate the maximum loan amount they can borrow and monthly payment amount. After finding the desired project, customers will make an appointment. The request will be received and processed by the bank staff. Customers can also apply for a loan by providing required information. Currently, BIDV is the first bank in Vietnam to provide home loan product via mobile phone application.

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Charitable BIDV Run app linked to business activities is a program that records the results of online races organized by BIDV through Strava app and making donations to social security programmes based on running performance of athletes. Some programmes include Giving Tet gifts to the poor; Planting “1 million trees”, Building flood-proof houses. The app also connects people who have passion for running.

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BIDV Highlights

Anh Duc

BIDV posts positive quarterly profit BIDV has recently released consolidated financial report of the first quarter in 2021 with stable operation and positive results.

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y the end of the first quarter, BIDV's total assets reached over VND1.56 quadrillion (USD67.8 billion), up 2.9 percent compared to the beginning of the year. Customer deposits hit over VND1.23 quadrillion (USD53.5 billion) in line with credit growth. Deposit growth was seen in segments such as retail, financial institutions, and FDI but declined in the corporate customer segment.

Loans to customers hit over VND1.23 quadrillion (USD53.5 billion), up 1.6 percent (net increase of VND19,250 billion or USD840 million). Credit grew well at the end of the quarter, showing that credit demand increased again in line with the positive development of the economy after the pandemic was better contained.

BIDV made full risk provisions according to debt classification and operational safety indicators complied with regulation. Non-performing loan ratio was controlled at 1.57 percent, slightly down compared to 1.68 percent at end-2020.

The difference between revenues and expenditures reached VND10,569 billion (USD460 million), up 34.6 percent year on year. Profit before tax was about VND3,400 billion (USD149 million), 1.9 times higher than the

same period last year given BIDV utilising resources to support the economy and customers affected by the Covid-19 pandemic.

BIDV also posted positive non-interest income results: Net service revenue (excluding guarantee fees) reached VND1,434 billion (USD62 million), up 32 percent over the same period last year. Income from trading securities hit VND451 billion (USD19.6 million), 2.5 times higher than the same period last year. Income from forex trading stood at VND379 billion (USD16.5 million). Off-balance sheet debt collection reached VND1,880 billion (USD82 million), 3 times higher than the same period of the previous year.

A spotlight of BIDV's activities in the first quarter is that the bank has been accelerating digital transformation

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through developing modern digital banking services and focusing on implementing key information technology projects: Completing the Digital Transformation Strategy in the period of 2021 - 2025 with a vision to 2030, that is, becoming the bank with the best digital platform in Vietnam.

BIDV launched the new generation Smart Banking app – a key milestone of BIDV in the digital transformation journey, which clearly demonstrates its goal to bring the best digital service experiences, best benefits and greatest added values for customers.

BIDV also introduced the SME Digital Transformation program (SME Digitrans) to support businesses to accelerate their digital transformation process.

BIDV Highlights

10 IT milestones of BIDV in 30 years 1996: Launching CoreBanking IBS (self-developed by BIDV IT staff). This program managed key banking tasks including: customer management, deposits, loans, international payment, and balance sheet initiation within branch. Thanks to this program, BIDV IT activity saw strong development in many aspects.

2002: Establishing BIDV IT Center, marking the growth of the organizational model and the information technology personnel.

BIDV's information technology activities have undergone great changes. Not only actively carrying out the Banking modernization and payment system project on schedule, in 2002, BIDV introduced “deposit here, withdraw everywhere” product to Vietnam’s banking market on BIDV Bond programme platform.

2003: Officially implementing Banking modernization and payment system project (sponsored by World Bank) at 7 branches (in Hanoi and Ho Chi Minh City) with Corebanking SIBS as the main product. Since then, transactions for customers have been carried out online 24/7 nationwide. The bank’s database has been centralized at Processing Center using advanced technology and modern infrastructure

and telecommunications systems.

In 2005, this project was completed and deployed at all branches of BIDV. The success of this project has strengthened BIDV’s IT capability, from management and administration process to business activities.

2006: Establishing BIDV Technology Department – a unit responsible for advising the Leadership on planning, building, and implementing IT development strategies and programs across the bank. The birth of the Department has clearly demonstrated the importance and professionalism of BIDV’s information technology activities.

2006: BIDV’s ATM network connected worldwide thanks to its collaboration with BankNet and Visa.

2007: BIDV ranked 1st for the first time for its readiness in technology application (Vietnam ICT Index) among Vietnamese commercial banks, honored by Vietnam Association of Information Processing and the Ministry of Information and Communication. So far, BIDV has maintained its first-place position in this ranking for 13 consecutive years.

2012: BIDV successfully implemented

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Internet Banking và Mobile Banking, providing customers with convenient services via products like BIDV Online, BIDV Mobile, BIDV Business Online.

Particularly, BIDV@Online was honored as the best product of 2012.

2013: Completing the implementation of centralized information technology management across the board which helped transfer about 70 percent of the workload at branches to BIDV IT Center.

2015: Successfully completing the transformation, handing over and merging of the IT System of the Mekong Delta Housing Bank (MHB) into BIDV’s IT system. This has not only brought many tangible benefits, but also strengthened and enhanced BIDV's reputation. The success of this event was voted by financial institutions and journalists as “Vietnam's typical M&A deal 2014-2015” at the Vietnam M&A Forum.

2019: BIDV's Digital Banking Center was officially launched, marking an important milestone in its development strategy and vision to 2030, in which technology and digital banking are one of the three main pillars of the bank.

BIDV Highlights

Diep D uc

Fostering risk culture at BIDV Mr. Ngo Van Dung, member of the Board of Directors of BIDV talked to BIDV Review about risk culture and its implications.

In 2020, the Board of Directors issued Resolution 534 on building risk culture at BIDV. Can you please share more about this?

Looking back at BIDV’s history, the bank has made great contributions to Vietnam's economy since its inception.

This has been a long and difficult

journey for generations of BIDV leaders and staffs. BIDV has achieved laudable achievements in business scale, branding and prestige in the field of banking and finance as well as social security activities.

However, besides the achievements, there remain drawbacks that BIDV has definitely to overcome in the near future. Over many years of operation and development, BIDV has formulated and continuously updated operational regulations in a standardised, efficient and advanced manner to meet the economic situation of Vietnam from time to time. Nevertheless, consequences incurred during the business process that need to be addressed. Such consequences are attributed to many reasons, with the first one being the lack of or insufficient implementation of risk culture.

After 2 years of survey and study and dozens of drafts at different levels, in July 2020, the Board of Directors officially issued Resolution 534, expecting to build a positive and responsible working environment from senior leaders to officers. This is the highest goal specified in the resolution.

In order to meet this expectation, risk culture must be developed professionally so that both leaders and officers can practice in their day-to-day work.

So what is the role of risk culture in the current business environment?

Banking business is risk-based and bank's risks are the total risks of the

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BIDV Highlights

economy. Risks should be perceived right. Risks have two states: The first state: we go beyond the limits and take the daily risks for granted. The second one is that we think because it is a risk category and we hesitate or even not to act.

To better understand these two states, Resolution 534 specifies principles and requirements for implementation.

Simply put, banking business is associated with risks so we must take risk at a level that can be identified, measured and controlled on the basis of optimising profits and mitigating risks. This is the right mindset. We will not do what we are unable to control.

Risk management is one of the important activities of a bank. What difference can risk culture make?

If the resolution is cascaded smoothly and methodically from Head Office to branches, I believe we will see a BIDV at a different height from the current one, not only in the domestic market but also in the regional market.

In addition, we also build a responsible, transparent and reliable working environment. One of the most important things is that when we implement risk culture in a standardised and methodical manner, income of employees will be significantly improved - this is an essential factor we trust that all employees will believe and practice risk culture voluntarily and regularly.

Mr. Ngo Van Dung, BOD member, BIDV

What factors help to build a successful risk culture?

with communicating the spirit of the resolution.

In my opinion, there are two basic factors. The first factor is the leadership at all levels. They must have the right and consistent perception in directing their units. The leaders must be role models for employees to follow and make changes. Besides, we should think positively and act responsibly.

The resolution specifies contents, implementation methods, and solutions for each level of management.

In addition, we can create forums on risk culture via Workplace as well as giving examples of employees who fully comply with regulations and act responsibly. The success of the resolution depends significantly on human factors. Therefore, by giving examples of rightdoers and wrongdoers, we can have lessons to spread this resolution deeply and make it a value of BIDV for years to come.

The next factor is communication.

Previously, the concept of risk culture was still quite vague for most of the staff. We have to convey the concept in new ways to employees, firstly starting

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BIDV Highlights

Va n Hai

Financial inclusion for women-led SMEs Developing women-led small and medium-sized enterprises (WSMEs) is one of the priorities outlined in the Prime Minister’s Decision No.149/QD-TTg on “National Financial Inclusion Strategy to 2025, with vision to 2030”.

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ccording to “Report on the impact of the Covid-19 pandemic on businesses in Vietnam: key findings from 2020 business survey” released by Vietnam Chamber of Commerce and Industry (VCCI) and the World Bank in Vietnam (WB), micro and small-sized enterprises and those in operation for less than three years were those most affected by the Covid-19 pandemic.

The report surveyed nearly 10,200 enterprises nationwide on their views

of the pandemic’s impact on the economy as well as the measures they took in response. It found 90 percent of businesses were seriously affected, with many narrowing or suspending operations or even going bankrupt.

The number of enterprises ceasing operations set a record high, at in excess of 100,000.

It is the fact that small and micro enterprises, businesses in rural areas, and women-led SMEs are vulnerable groups. They also lack resources for development in the extremely difficult period due to impact of the Covid-19 pandemic.

Identifying WSMEs as a separate customer segment that needs special attention and support in the current period, BIDV has studied and promoted financial inclusion with many favorable solutions tailored to this segment.

The “Covid-19 Relief program for Women-led Small and Medium-sized Enterprises” was signed between The Asian Development Bank (ADB) and BIDV in 2020. With ADB's funding, BIDV has issued a Comprehensive Financial Program to minimize the impact of the Covid-19 pandemic on WSMEs. Particularly, eligible customers will be supported up to USD10,000 per customer in the form of interest support for structured loans at BIDV and capital withdrawal commitment fee for new loans at BIDV. In addition, customers may also participate in

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BIDV Highlights

The “Digital transformation with SMEs” programme (SME Digitrans) was launched by BIDV with the goal of accelerating the digital transformation process, applying modern technology for WSMEs business management.

Accordingly, BIDV offers a two-year fees for using the BMP business management software by Kiu Vietnam Co., Ltd. or the accounting software MISA SME.NET 2020 + MEINVOICE.VN

by Misa Joint Stock Company to WSMEs. BIDV also waives connection fee of BIDV ERP Connection between BIDV's iBank and the above-mentioned software.

BIDV also implemented many nonfinancial solutions for WSMEs such as the SheTrades Project by the International Trade Center (ITC), SheMeansBusiness Project by Facebook to support WSMEs in terms of training or financial connection. In the near future, BIDV will proactively develop non-financial solutions and provide online training for WSMEs.

business consulting courses conducted

by ADB consultants with in-depth knowledge on cash flow management, human resource management, product development or new business field and information technology.

For customers borrowing from BIDV for the first time, besides funding from ADB, they are provided comprehensive support for products and services such as loan interest rates reduction by up to 2 percent per year, waiver of account opening and account management fees; no required minimum account balance; preferential

fees for international payment, trade finance, guarantee, etc.

BIDV signed a cooperation agreement with the Vietnam Women Entrepreneurs Council (VWEC).

Specifically, the two sides cooperate to implement activities to support capacity building and financial access for WSMEs such as organizing conferences, seminars, training on improving financial and business capacity; organizing trade promotion activities; researching, developing financial and non-financial solutions exclusively for WSMEs.

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BIDV's comprehensive financial program includes a series of solutions to support WSMEs on training, financial connection, digital transformation, reduction and waiver of interest rates and service fees for existing customers facing difficulties due to the Covid-19 pandemic, and building specialized banking and nonfinancial services products for WSMEs. The program has been implemented strongly and uniformly in accordance with the direction of the Government of Vietnam on supporting WSMEs and financial inclusion.

Insights

Nha t Nam

The future of bancassurance in digital era In recent years, bancassurance in Vietnam has seen strong growth, significantly contributing to banks’ non-interest income.

Current state of bancassurance in Vietnam

dramatically, and by necessity, by the pandemic. The long-standing concerns and debates about the need to digitize distribution were resolved because digital was the only available channel.

According to BIDV Training and Research Institute, in 2020 despite the impact of the Covid-19 pandemic, listed commercial banks posted PBT growth of 15.8 percent; with main

Digital transformation today has become an inevitable trend of the economy and the banking sector in particular.

Vietnamese commercial banks are racing to set up digital banking branches or centers, invest in information technology and apply cutting-edge technologies such as cloud computing, artificial intelligence, Blockchain. The vibrant development of Fintech companies, and financial service provision by Bigtech and telecommunications companies pressed banks to quickly change to compete with.

The insurance industry is no exception as insurers have been strongly digitalising to meet the needs of customers. According to EY's 2021 Global Insurance Outlook report, 84 percent of customers prefer working with an insurance advisor/agent either by phone or online, 69 percent of customers prefer buying automotive policies online. Insurance companies, therefore, have defined digital transformation as their key strategic goal in the coming time.

Insurers have been moving - in some cases, boldly - in the direction of agility, digitization and customercentricity for the last several years.

Those efforts were accelerated

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drivers being non-interest income (including Bancassurance which contributed up to 30 percent to new premium revenue) and cost reduction.

For Bancassurance, while insurance companies can access a larger number of customers, banks also diversify their service ecosystem and earn a significant amount of income. This activity has become more vibrant in

Insights

Vietnam in recent years.

According to Insurance Association of Vietnam, the proportion of insurance distribution through this channel accounted for nearly 40 percent of new sales, doubling after three years. Six years ago, this number was about 6-7 percent.

With such a high growth rate, many insurance companies, particularly large foreign ones, accepted to pay a large

amount to cooperate in bancassurance business with banks in Vietnam.

Bancassurance has generated large non-interest income and high profits for banks. Therefore, banks are increasingly cooperating with insurance companies and bancassurance is forecasted to thrive in the future.

Digital transformation of bancassurance Vietnamese banks are making significant changes in digital transformation. According to the State Bank of Vietnam, 95 percent of Vietnamese commercial banks have initially been implementing or developing a digital transformation strategy. Some banks have changed their organizational model to serve the digital transformation process (19 percent established a new digital bank, 88 percent digitized business activities). The banking ecosystem has gradually been formed, supported

by Fintech and Bigtech to provide a number of products and services (especially payment, consumer credit).

Insurers also beefed up their digitilisation process: Prudential Vietnam launched Pulse by Prudential - the first digital healthcare application in Asia; Manulife Vietnam introduced eClaims to help customers have a better and more convenient experience in the process of making online insurance claims; FWD, through a digital app, has reduced paper and cash transactions, digitalising 100 percent of transaction types; Post and Telecommunications Insurance

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Corporation (PTI) cooperated with INSO Vietnam (a startup in the technology field) to launch INSO app that allows users to buy insurance and claim claims anytime, anywhere. In March 2021, BIDV Insurance Company, a subsidiary of BIDV, signed a contract with PwC on digital transformation consultancy.

In addition, the InsurTech market in Vietnam, although small in size, is growing positively. Recently, a series of online insurance startups, both local and foreign, have been launched such as 9line, Papaya.

However, as with the world, Vietnam’s insurance industry is considered to be slower in digitalisation transformation than banks. An insurance business leader said that the insurance industry is 20 years behind the banking industry in terms of database.

While commercial banks and insurance companies have been strongly digitized, bancassurance activities are mainly carried out in the traditional way through a network of bank branches. Tellers, credit officers when offering products of the bank also try to introduce insurance products to customers.

Putting the bancassurance model to work well in the digital era is one of the strategies that banks are particularly interested in. Simply put, the bancassurance development should be integrated in the overall digital transformation program, towards digitizing with omnichannel distribution of products and services to customers.

Insights

Tho ng Nhat

Prospect of attracting foreign direct investment in 2021 The prospect of attracting foreign direct investment (FDI) in Vietnam in 2021 is bright given the investment diversion of investors from developed countries to the country.

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ccording to Foreign Investment Agency (FIA) under Vietnam Ministry of Planning and Investment, disbursement of foreign direct investment (FDI) to Vietnam rose by 6.7 compared to 2020 to USD7.15 billion in the first five months of this year.

New investment capital registered by foreign businesses in the country also saw a modest yearly rise of 0.8 percent to nearly USD14 billion in the same period. Of which USD8.83 billion went to 613 newly-licensed projects, up 18.6 percent year-on-year, while USD3.86 billion was added to 342 existing

projects, up 11.7 percent. Capital contributions and share purchases by foreign investors fell 56.3 percent to USD1.31 billion.

Investors poured money into 18 sectors in the first five months, in which processing and manufacturing took the lead with USD6.14 billion, accounting for 44 percent of the total.

Power generation and distribution came next with USD5.43 billion, accounting for 39 percent, followed by real estate with USD1.05 billion and wholesale and retail sales with USD522 million.

In the first five months of the year, Singapore was Vietnam's largest source of FDI with USD5.26 billion, making up nearly 38 percent of the total FDI registered in the country. It was followed by Japan with more than USD2.59 billion and South Korea with USD1.83 billion.

At present, Vietnam is considered as a good destination for highquality FDI inflows. Since the outbreak of Covid-19, many large international corporations and enterprises have been looking for investment opportunities in Vietnam in order to diversify their supply chain and avoid overdependence on the Chinese market. Vietnam has become one of the brightest spots to welcome these diverted inflows thanks to its success in fighting and containing the pandemic.

The government has also exerted

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Insights

approved 19 coastal economic zones with a total area of ​​about 871,000 hectares. In recent years, the quality of human resources in Vietnam has been further improved thanks to the Government’s focus on investing in public education. Local labourers have been provided with training on culture, skills, and professional qualification which contribute to increasing labor productivity in Vietnam. This is also a competitive advantage in attracting foreign investment.

With trade agreements that Vietnam has signed, the influx of FDI projects promise to continue into Vietnam in the coming time. For this wave, the Government of Vietnam has offered many special investment incentives and supports to encourage the implementation of investment projects that have great social and economic impacts. However, Vietnam needs to further improve the legal framework, continue to create more favorable and equal business investment conditions for investors.

Ho Chi Minh City, Vietnam

efforts in administrative reforms and in improving the investment climate.

As of 20 May, Vietnam was home to 33,615 valid foreign-invested projects with a combined investment capital of USD397 billion. Of the total, 60.5 percent or USD240 billion was disbursed. Various incentives for foreign investors have been launched, along with opportunities brought about by new generation free trade agreements Vietnam has signed.

Vietnam’s success in attracting FDI could be attributed to a number of other factors.

First, foreign investors spoke highly of Vietnam’s socio-political stability as one of the important factors contributing to the implementation of economic development policies. The socio-political stability in Vietnam has built strong trust among domestic and foreign investors. Investors are willing to mobilize capital to increase investment and expand production.

The infrastructure of industrial parks, export processing zones and economic zones in the country continue to be improved and upgraded.

Vietnam’s Prime Minister has

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Despite the negative socio-economic consequences of Covid-19, Vietnam was one of the few countries that recorded positive economic growth in 2020. The country remains a strong candidate for investment from ASEAN and beyond. Given its investor-friendly policies, economic and political stability, cost efficiency, and consumer demand prospects, Vietnam is likely to continue gaining from supply chains restructuring in Asia in addition to attracting a new range of investors in terms of geography and sectors.

market movements

Q u ang Le

Vietnam’s economic growth to remain positive Vietnam’s economic growth is expected to rebound to 6.7 percent this year despite the recent resurgence of the Covid-19 pandemic in nearby countries, and rise to 7 percent in 2022, according to the Asian Development Bank (ADB).

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n its Asian Development Outlook (ADO) 2021 released in April, the ADB said Vietnam’s economic growth will be boosted by exportoriented manufacturing, increased investment, and expanding trade.

The growth momentum is expected to continue, thanks to ongoing reforms to improve the business environment and Vietnam’s participation in multiple free trade agreements (FTAs) involving almost all advanced economies. The report said Vietnam can maintain inclusive growth by softening the pandemic’s impact on poverty and incomes.

In April 2021, Vietnam’s Central Institute for Economic Management (CIEM) outlined three scenarios for economic growth, based on Vietnam's management of the pandemic this year.

Under the first scenario (normality), the CIEM forecasts that the Vietnamese economy will grow 5.98 percent with 3.51 percent inflation. Economic growth will rise to 6.45 and 6.61 percent in 2022 and 2023, respectively.

Under the second scenario (fiscal and monetary easing), growth will reach 6.43 percent in 2021 with inflation at 3.78 percent. The growth is expected to be 6.8 and 6.83 percent in the next years. Under the third scenario (fiscal and monetary easing, along with institutional reform), Vietnam's economy will grow by 6.47 percent in 2021 and 3.56 percent in inflation, reaching 6.88 and 6.92 percent in subsequent years.

According to Fitch’s report, Vietnam’s public finances outperform peers amid pandemic stress. Vietnam’s public finance metrics have improved markedly relative to peers since the start of the pandemic.

The improved fiscal position reflects Vietnam’s broader economic

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strength. Tourism earnings have been severely hit by the pandemic, but other parts of the economy have proved robust. Vietnam was one of only a few countries globally to post positive economic growth in 2020, of 2.9 percent. Growth was buoyed by external demand, with goods exports rising by 6.9 percent. Domestic activity was also supported by the limited spread of Covid-19 in the country.

Fitch expects growth to remain strong, at around 7 percent annually, in 20212022, buoyed by continued export expansion and higher investment. A pandemic fiscal package covering 20202021, worth about VND292 trillion (about 3.6 percent of 2020 GDP), will reinforce growth prospects.

Policy update

Thu y D ung

UKVFTA officially becomes effective

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he UKVFTA was officially inked on 29 December, 2020 in London, the UK and has temporarily taken effect since 1 January, 2021.

The UKVFTA was negotiated based on principles included in the EU-Vietnam Free Trade Agreement (EVFTA) and were amended in accordance with the bilateral trade framework between Vietnam and the UK. This is the “third generation” FTA Vietnam has signed, which helps maintain and strengthen tradeeconomic cooperation framework between the two nations.

The trade deal will make it easier for the two countries to promote cooperation in finance-banking and e-commerce as well as enhance the protection of intellectual property, geographical indication, clean growth, and sustainable development.

According to the Agreement’s Clause 2a of the Article 9, the deal shall enter into force on the first day of the second month after the date of receipt of the Parties' final notice on the completion of internal legal procedures. Thus, the UKVFTA will officially take effect from 1 May, 2021.

According to the UKVFTA commitments, after six years the agreement takes effect, the UK will abolish import taxes on 99.2 per cent of tariff lines, equivalent to 99.7 percent

of Vietnam's export turnover. The EU has committed to giving Vietnam a tariff rate quota (TRQ) with an import tax of 0 percent for some products.

Vietnam and the UK this year. In 2020, the total import-export turnover between the two countries reached USD5.64 billion.

Data from the General Department of Vietnam Customs shows that in the first two months of this year, two-way trade turnover between Vietnam and the UK reached USD1.024 billion, up 20.05 percent over the same period last year. This shows that the UKVFTA Agreement has created an important impetus in the trade exchange between

By the end of December 2020, the UK had 411 investment projects in Vietnam, with a total registered capital of USD3.84 billion, ranking 15th out of 139 countries that have investment projects in Vietnam. The UK's important investment projects focused on finance, banking, oil, and renewable energy.

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products & services

Thu Trang

Free iBank - fast transfer

BIDV iBank has been well received by corporate customers for its outstanding features

On 10 May 2021, BIDV launched the promotion program "Free iBank - Fast transfer" for corporate customers. Accordingly, BIDV waives all transfer fees within BIDV system via BIDV iBank.

Plethora of offers Simply by registering and using the financial service package on BIDV iBank such as money transfer, salary payment, bill payment, etc., customers will be exempted 100 percent of fee for money transfer to partners, customers,

suppliers who have opened accounts with BIDV. In addition, partners and customers of the business who do not have a current account at BIDV or have an account but have not used it will be entitled to participate in the program "The optimum choice for businesses" to open/reactivate the bank account and enjoy transaction incentives at zero cost.

In particular, both promotions do not require customers to maintain or increase their deposit balance at BIDV. Participating customers are also considered for preferential credit packages as well as free connection to BIDV iBank system through customers’ ERP system.

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In order to support small and mediumsized enterprises (SMEs) to accelerate the application of modern technology to governance, finance and accounting management, BIDV cooperates with MISA Joint Stock Company (MISA) and Kiu Vietnam Co., Ltd. (Kiu) to launch “SME Digitrans” program. The program offers at least 600 SMEs the following incentives: free two-year subscription fee for Kiu's BMP business management software, free MISA SME accounting software SME.NET 2020 Professional + MEINVOICE.VN (300 Invoices). BIDV and partners have successfully integrated the software into BIDV iBank and offer to participating SMEs for free as part of SME Digitrans.

products & services

aggregate account data (deposits, loans, insurance payment, international payment…) and real-time transaction information. Enterprises may centralize cash flow management flexibly and easily on the BIDV iBank and quickly connect BIDV iBank with the enterprise’s ERP system smoothly, ensuring information safety and security.

This program helps customers reduce costs for financial activities while giving customers the opportunity to experience more preeminent features of BIDV iBank - an e-banking application for business customers, helping to accelerate the digital transformation process at enterprises.

activities and digital transformation of enterprises especially during the Covid-19 pandemic.

In particular, at the beginning of the year, BIDV successfully upgraded and implemented trade finance services on BIDV iBank. Customers can perform trade finance transactions right on BIDV iBank without having to return the original transaction documents which helped save time and number of documents for import and export transactions. BIDV iBank also updates the transaction status in real time, automatically notifying the L/C payment due date as well as providing specialized reports according to customers' needs.

Through BIDV iBank, customers can transfer money, make 24/7 payments anywhere, schedule auto payment orders according to statements,

For more information about the program, please visit the nearest BIDV branch, website: bidv.com.vn or call the Contact Centre via 19009247.

Optimal choice With its outstanding features, BIDV iBank application has well received by the business community. By 31 March 2021, there were nearly 60,000 customers using BIDV iBank, an increase of 200 percent compared to the beginning of 2020. The app has become indispensable in business

In 2021, the Global Banking & Finance Review magazine honored BIDV as the “The No.1 Wholesale Bank of the Year”, “The No.1 SME Bank in Southeast Asia”. BIDV iBank application was honored by the magazine in the category of "The most innovative electronic banking in Vietnam" for promoting the development of high-tech products and services and bringing comprehensive financial solutions to corporate customers.

Earlier, BIDV iBank was among Top 10 Sao Khue in 2020 - an award for excellent products of Vietnam's software and information technology service industry.

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partners

X uan Hoa

Growth potential of a young joint venture and improving models, processes and regulations. Taking advantage of technology, know-how and international experience in developing financial leasing products from Japan, along with local experience in the financial leasing field in Vietnam, BSL has been finalising the risk monitoring and internal control system according to international standards to ensure that material risks are identified, detected and promptly responded to.

4 years is not a long time for an enterprise, but a meaningful period for BIDV - SuMi TRUST Leasing Co., Ltd (BSL). The company has overcome numerous difficulties and challenges in a volatile market to grow strongly.

Building the foundation On 12 April 2017, BSL was established through the conversion of BIDV Finance Leasing Company (BLC, a wholly-owned subsidiary of BIDV) into a joint venture with BIDV owning 50 percent and Sumitomo Mitsui Trust Bank (Japan) owning 49 percent. BSL is the first finance leasing company in Vietnam to apply the joint venture model between a domestic commercial bank and a foreign financial institution.

In the period 2017 - 2019, BSL focused on building business strategies and tactics while continuously building

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In 2020, economies in Vietnam and the world experienced significant fluctuations. The Covid-19 pandemic has brought production and services to a halt; businesses of all sizes faced serious difficulties. Against that backdrop, BSL's leadership gave timely and drastic directions and decisions to help the company overcome adversity and grow strongly, successfully meeting the 2020 goals.

BSL has uniformly deployed key solutions such as focusing on infrastructure developing customers and manufacturing customers in industrial parks, widely implementing sales and sublease programs to good customer segments, closely working with BIDV branches to support customers and diversify leasing products.

By the end of 2020, BSL's credit balance reached VND2,112 billion (USD91.8 million); profit after tax reached over VND32 billion (USD1.4 million), fulfilling 167 percent of the business plan.

partners

Leaders and employees of BIDV - SuMi TRUST Leasing in a family photo

In early 2021, in response to the call from the Government and the State Bank of Vietnam, BSL has deployed a flexible financial leasing product package with preferential conditions to support businesses to overcome financial difficulties and stabilize their production and business.

Fostering corporate culture As with business, BSL gives priority to fostering its culture. One of the highlights in the past 4 years is success in building a professional and proactive working culture. Along with that is building a culture of sharing and continuous learning to move towards best practices in management and business.

Operating in a joint venture environment, the cohesion between members from two countries is an important cause for the development of the company. Takahashi Satoshi, Deputy General Director of BSL, shared: “Through collective activities and exchanges, Vietnamese and Japanese employees strengthen cohesion, and

deepen friendly cooperation, thereby promoting teamwork efficiency”.

Moving forward

customers. Above all, the decisive factor for success is that BSL must always innovate, be creative and unite”, said Mr. Son.

Entering the 3-year period 20212023, BSL is determined to complete two important tasks: (i) Becoming a leading financial leasing company in terms of prestige and service quality; (ii) Developing sustainably, growing safely and being a socially responsible company.

Given the solid foundation established, with a new mindset, new spirit, each BSL officer is determined to fulfill the assigned tasks, putting customers at the center of business activities.

Customers’ trust and satisfaction are the motivation for each individual to put more effort into the work.

Mr. Nguyen Thieu Son, General Director of BSL, affirmed: “Towards the goal of becoming a leading financial leasing company in Vietnam, BSL has a lot of work to do. In the immediate future, we need to face big challenges in 2021 as the pandemic continues, seriously affecting the production and business activities of most businesses, along with increasing competitive pressure in the market”.

“However, this is also an opportunity for BSL to continue to improve itself, listen to customers' needs and make products tailored to the needs of

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BSL’s highlights after 4 years of operation • Average loan growth: 110 percent/year; • Officially profitable at the end of 2019; • Granted credit lines by financial institutions including foreign banks; • Operational safety indicators and risk management limits are secured according to regulations of the State Bank and approval of the two parent banks.

lifestyle

Hai Van Pass among world's most beautiful drives Hai Van Pass, located between Thua Thien-Hue province and Da Nang city in the central region, has been named among the 10 most beautiful drives in the world by renowned US magazine Travel + Leisure.

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entagon Motor Group analyzed more than 7 million Instagram hashtags to find the world's most stunning routes. To come to this conclusion, the team first researched a list of the most popular road trips in the world, along with their location and length. Then, it used Instagram hashtag data to find how many images were associated with each route and divided that number by the number of miles the road trip covers to find which one had the most photos taken per mile.

With a length of 20 kilometres and 2,680 pictures per km, the Hai Van Pass

Don Ca arch bridge located at foot of Hai Van Pass - a pristine beauty

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lifestyle

"As there are so many driving holiday destinations around the globe, we were curious to find out which route is officially the most beautiful. It's great to see so many bucket-list-worthy road trips cropping up from all around the world - from the UK to Australia, and Norway to the USA - it proves that everyone can jump in their car and embark on an epic adventure."

Thua Thien-Hue Province and Da Nang City, it stands at 500m above sea level, making it the highest pass in Vietnam.

ranked fourth in the list, behind the Great Ocean Road (Australia), Big Sur (California), and Jebel Hafeet (United Arab Emirates).

According to Travel + Leisure, the Hai Van Pass which translates to "Ocean Cloud Pass” has been called "one of the best coast roads in the world," by Top Gear host Jeremy Clarkson.

"Despite the looming question over international travel, road trips are still on cards, thanks to the luxury and convenience of our wheels," Jonathan Lingham, marketing director at Pentagon Motor Group, said.

Hai Van Pass offers an impressive landscape of verdant mountains and clear blue skies, overlooking Da Nang City, Tien Sa Port, Son Tra Peninsula, and South China Sea. Crossing over a spur of Truong Son mountain range between

THE TOP 10 ROAD TRIPS 1. Great Ocean Road, Australia 2. Big Sur, USA 3. Jebel Hafeet, United Arab Emirates 4. Hai Van Pass, Vietnam 5. Chapman's Peak Drive, South Africa 6. Blue Ridge Parkway, USA 7. Going-to-the-Sun Road, USA 8. Wild Atlantic Way, Ireland 9. Olympic Peninsula Loop, USA 10. Icefields Parkway, Canada

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The pass is popular amongst thrillseeking motorcyclists due to its winding roads, sudden curves and blind corners. It has lush jungle on one side and the sea on the other.

CSR

Ho a Quynh

BIDV joins the response to Covid-19

Mr. Phan Duc Tu, BIDV BOD Chairman (right) presents BIDV's donation for Covid-19 vaccine to Mr. Nguyen Thanh Long, Minister of Health

On 21 May 2021, BIDV presented VND25 billion (USD1.1 million) to the Ministry of Health for Covid-19 vaccine purchase.

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his donation will directly support the government agencies to carry out the fight against the pandemic. This year, when the pandemic broke out in some provinces, BIDV immediately donated VND5 billion to support provinces including Vinh Phuc, Bac Giang, Bac Ninh, and K Hospital. To date, the donation BIDV has given to the pandemic fight in 2020 and 2021 is VND70 billion (USD3 million).

Mr. Nguyen Thanh Long, Minister of Health acknowledged and spoke highly of the support by the banking industry

BIDV representatives present VND2 billion donation to K Hospital at the hospital gate due to the hospital lockdown

for the fight against Covid-19 pandemic.

The funds from organisations have been effectively spent, helping the people in need and the health sector during the Covid-19 pandemic.

Mr. Long noted that the Ministry of Health has negotiated with vaccine suppliers with more than 100 million doses being committed for Vietnam.

The Ministry has also registered with COVAX to purchase an additional 10 million doses of vaccine through the cost-sharing mechanism.

The support from the banking industry, particularly contribution by 4 state-owned commercial banks totaling VND100 billion (USD4.3 million), will be used to purchase vaccines. Vaccination is the key solution that could help life return to normal and contribute to the economic development.

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Mrs. Nguyen Thi Hong, governor of the State Bank of Vietnam emphasized that the banking sector would strive to accompany the government in general and the Ministry of Health in particular in the fight against the pandemic.

Every year, the banking sector donates over VND1,000 billion (USD43.5 million) for social security programs nationwide. For the first 5 months of 2021 alone, the banking sector staff donated about VND200 billion (USD8.7 million) to support the fight against Covid-19.

In many other areas nationwide, BIDV branches have quickly called for donation from their employees to support local authorities and medical clinics in the combat against Covid-19 pandemic.

CSR

Ngu y en Huong

BIDVRUN and footprints in the community The running race "BIDVRUN For a green life 2021", aimed at contributing to BIDV’s program of planting 1 million trees and building floodproof community houses, was well received and participated by customers and the bank’s employees.

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IDVRUN lasted for 20 days between 25 April and 14 May 2021, ended two days earlier than planned due to the complicated developments of Covid-19 pandemic.

The race attracted athletes from all regions including customers, employees and especially foreigners.

241 teams with 28,375 athletes participated, running a distance of 1.39 million km, donating more than VND5.8 billion (USD252,000). The money will be used for building floodproof community houses in floodprone provinces across the country.

The icing on the cake is that for every valid 22km, participating athletes could contribute 1 tree. With the distance recorded, 63,384 trees worth VND3.17 billion were contributed to the program “BIDV - 1 million trees” as response to the "1 billion trees" project initiated by the Prime Minister for the period of 2021 - 2025.

The running race ended but the philanthropic spirit still lingers. It

is hoped that customers and BIDV employees will continue to maintain their daily workout routine and healthy habits, actively participating in movements to contribute to promoting BIDV's brand and image – the bank for

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community. It was also the chance for BIDV to spread the image of healthy, dynamic, energetic and devoted employees who always run forward.

리뷰

번역감수: 박성재 전략부 2 부장 롯데월드타워

뉴스

BIDV, 글로벌 2000대 기업 선정 자산 기준 베트남 최대 은행인 BIDV가 글로벌 2000대 기업에 선정되었다.

Forbes는 최근 글로벌 2000대 기업 (Forbes Global 2000)을 발표하였다. 이 리스트는 네 가지 지표(매출, 이익, 자산 및 시장 가치)를 바 탕으로 세계에서 최대와 가장 강력하고 가치 있는 기업의 순위를 나타낸다. 올해는 BIDV, Vietcombank, VietinBank, Vingroup 및 Techcombank가 이 리스트에 이름을 올렸다.

BIDV는 7 년 연속 Forbes Global 2000에 선 정되었다. Forbes의 연간 Global 2000 순위 는 세계에서 가장 가치있는 기업에 대한 권위있 는 명단이다. 보고서에 따르면 BIDV는 매출 52 억 달러, 수익 3 억 470 만 달러, 자산 657 억 달러, 시가 총액 73 억 달러로 1,575 위를 차지 했다. 베트남에서 BIDV는 수익, 총 자산 및 자 본이 가장 큰 상업 은행이다. 세계에서 유명한 다른 기관들도 BIDV를 높 게 평가하고 있다. 영국에 본사를 둔 Brand Finance社는 수년간 세계에서 가장 가치있는 500 개 은행 브랜드 순위에 BIDV를 포함 시켰 다. The Asian Banker紙는 BIDV를 6 년째 베 트남 최고의 소매 은행으로 선정하였다. 2021 년 3 월 글로벌 신용 평가사 Moody ’s는 BIDV 의 장기 신용 등급 전망을 '부정적'에서 '긍정 적'으로 변경하였다. BIDV의 장기 예금 등급 및 발행자 등급은 'Ba3'이다. 참고로, 올해 10대 글로벌 기업은 중국 공상 은행 (ICBC), JPMorgan Chase, Berkshire Hathaway, China Construction Bank, Saudi Arabian Oil Company (Saudi Aramco), Ping An, Bank of America, Apple, Agricultural Bank of China 및 Amazon이다.

Thao Minh 기자

BIDV 본사

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뉴스

BIDV 리스크 관리 문화 구축 Mr.Ngo Van Dung BIDV 이사와의 인터뷰를 통해, 리스크 관리 문화에 대한 의미를 나누었습니다 2020년에 이사회는 리스크관리문화를 구축 하는 데에 534호 의결을 제정했는데 언급된 리스크관리문화는 어떻게 정의됩니까? 전쟁 시기부터 국가 건설 시기의 오늘까지 BIDV는 많은 성과를 거두어 베트남 경제에 기 여해 왔다. 이는 BIDV의 임원과 종업원에게 길 고 고난한 과정이었다. 그 과정에서 은행업계에 는 운영 규모 확장, 신뢰도 유지 등의 성취를 만 들 뿐만 아니라 사회보장 활동에도 자랑할 만한 성과를 거두어 왔다. 자랑할 만한 성과를 취득하는 반면에, 극복할 장애가 그만큼 존재한다. 수십 년 운영 과정에 서 BIDV는 경제 상황에 맞는 효과적인 운영방 안을 위해 규정을 변경해 오고 있다. 그럼에도 불구하고 운영 과정에서 적지 않은 문제를 보 유하고 있는 만큼 극복할 과제가 많다. 이 문제 의 원인은 여러가지 일 것이나 가장 첫번째로 원인은 바로 리스크관리문화 미규범화가 아닌 가 싶다.

2년간 계속 이에 대한 연구와 조사를 진행하고 또 12번의 초안을 시도한 후에 2020년 7월에 534호 의결은 적극적인 근무환경 구성과 임원 과 직원의 책임 강화에 대한 이사회의 결의로 제정되었다. 이는 534호 의결에서 가장 강조된 목표인 것이다. 이 목표를 달성하기 위해 단순 업무 담당 직원부터 임원까지 실행시키도록 리 스크관리문화를 제대로 수립하여야 한다.

현재 경영환경에 리스크관리문화의 역할에 대해 말씀 부탁 드립니다. “은행경영은 리스크 경영이다. 은행의 리스크 는 경제시장 총합리스크이다.” 그래서 리스크 를 제대로 인식하여 지속적으로 관리해야 한다. 리스크는 2가지의 형태로 나뉜다. 첫번째의 형 태는 매일매일 리스크를 기록하고 넘어가는 것, 두번째의 형태는 리스크를 일으킬 일이라고 생 각해서 주저하고 결국 안 하는 것.

Mr.Ngo Van Dung BIDV 이사

이 2가지의 형태를 잘 파악시키도록 실행 시 주 의할 원칙과 사항이 534호 의결에 구체적으로 언급되어 있다. 은행경영은 리스크 경영이므로 인식 가능한 리스크 최소화 – 이익 최적화의 기 조로 리스크를 측정하고 관리해야 한다. 리스크 를 관리하지 못한 일을 절대 하지 않아야 한다.

나눠 주신 이야기에 리스크 관리는 은행의 활동 중에 중요한 업무이자 기본이라고 강조 하셨지요. 이를 문화로 구성하면 어떤 개별 성을 보여줄 건가요? 본 의결이 본사부터 각 지점까지 원활히 실천된 다면, 현재 보다 새롭고 차별성을 가진 BIDV를 보여줄 수 있다고 믿는다. 그 외에도 책임감이 넘치면서 명백하고 신뢰할 만한 근무환경을 구 성할 것이다. 그리고 중요한 것은 리스크관리문 화를 제대로 실시하면 직원들의 소득도 따라서 늘어날 것이다. 이는 전체 종업원들이 자발적으 로 리스크관리문화를 꾸준히 실시하게 하는 요 인이다. 리스크관리는 수입을 증수하는 데에 도 움을 줄 뿐만 아니라 BIDV의 지속적 발전을 형 성시키는 기조인 것이다.

그러면 BIDV에 리스크관리문화를 성공적으 로 안착시키려면 어떻게 해야 합니까?

인식하고 책임감을 보여줘야 한다. 직원에게 모 범이 되어야 적극적인 변화를 일으킬 수 있다. 게다가 긍정적 사고방식과 책임감이 있는 행동 도 중요하다.

2가지의 요소에 유의해야 한다. 첫번째의 요소 는 바로 임원이다. 이들은 자기자신의 역할을

두번째의 요소는 홍보이다. 예전에 리스크관리 문화를 홍보할 때 이에 대한 개념이 아직은 애

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BIDV 리뷰

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매하고 비현실적이었다. 그러므로 새로운 방법 으로 접근해서 직원에게 더 쉽게 전달하도록 홍 보해야 한다. 우선 의결의 정신에 따라 홍보를 진행해야 한다. 의결에서 각각 부서와 지점에 해당한 내용, 전 개 방안 등이 구체적으로 언급되어 있다. 또한

workplace를 통한 사내 네트워크를 이용하여 리스크관리문화에 대한 포럼을 열고 진행하여 동시에 리스크를 잘 인식하고 책임감이 넘치는 직원이나 임원을 모범으로 추천하면 훨씬 더 효 과적이다. 의결이 성공적으로 실시되게 하는 요 소는 다분히 사람에 의한 요소이다. 그래서 리스 크 관리를 잘 하는 모범을 칭찬하고 이를 준수하

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2021년 5월

지 않는 사례를 지적하는 것은 바른 교훈을 만들 어 의결의 정신을 확산시키는 것이다. 리스크관 리문화는 BIDV의 가치 기반이 되리라 믿는다. 감사합니다.

Diep Duc 기자

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BIDV, 1 분기 세전이익 3조4천억 동 달성 BIDV는 자산 건전성 분류에 따른 리스크 규정 에 따라 안정적으로 관리되고 있다. 은행 전체 NPL Ratio는 2020년말 1.68 %에서 1.57 % 로 하락하였다. 영업이익은 전년 동기 대비 34.6 % 증가한 10 조 5,690 억 동에 이르렀다. 세전 이익은 약 3 조 4 천억 동을 달성하여 작년 동기에 대비 1.9 배 증가하였다. 비이자 이익은 매우 성공적인 성과를 시현하였 다. (i) 서비스 순수익 (보증 활동 수수료 제외) 은 1 조 4,340 억 동으로 전년 동기에 비해 32 % 증가했다. (ii) 증권 거래 수익은 전년 동기 보다 2.5 배 높은 4,150 억 동을 달성하였다. (iii) 외환 사업 수익은 3,790 억 동에 달한다. (iv) 부실채권 회수수익은 1 조 8,800 억 동으 로 작년 동기대비3 배 증가했다...

BIDV는 2021년 1분기 통합 재무 보 고서를 발표했다. 이 보고서에 따르 면, 2021년 1분기 BIDV의 영업 활 동은 안전하고 긍정적인 결과를 나 타냈다.

특히, 2021년 1분기말 기준 BIDV의 총 자산은 1,560조 동 이상이며 전년말 대비 2.9 % 증가 하였다. 2020년 1분기말 기준 예수금은 전년 말과 동일한 1,226 조 동을 달성하였다. 예수 금은 소매, 금융 기관 및 FDI 부문에서 증가했 으나, 기업 고객 부문에서 감소하며 전년 수준 을 유지하였다.

2021년 3월 31일 기준 대출금은 19조 25천 억 동(1.6%) 증가한 1,233 조 동을 달성하였 다. Covid-19 상황에서도 안정적으로 발전한 경제상황에 따라 신용 수요가 다시 증가한 것 이 원인이다.

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BIDV 리뷰

BIDV 활동의 특징은 디지털 뱅킹 서비스 개발 및 주요 정보 기술 프로젝트 구현을 통한 디지 털 전환 가속이다. BIDV의 주요 정보 기술 프 로젝트는 다음과 같다. (i) 베트남 최고의 디지 털 플랫폼을 갖춘 2021-2025 디지털 전환 전 략 완성; (ii) 新 Smart Banking 출시; (iii) 중 소기업 디지털 전환 프로세스를 지원할 디지 털 전환 프로그램 (SME Digitrans) 시행; (iv) Core Banking 시스탬 전환 프로젝트; 대출 관 리 솔루션 프로젝트 (CRMS) 등의 핵심 정보 기술 프로젝트 진행.

Anh Duc기자

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Mr.Le Ngoc Lam BIDV CEO (좌)와 Mr. Fabrice Richy 베트남 AFD 사장 CFA 체결

AFD, BIDV에 재생 에너지, 에너지 절약 분야 기업 지원을 위한 1억달러 CFA 체결 2021년 5월, BIDV와 프랑스개발청 (AFD)은 기후변화 대응과 녹색성장 및 환경 보호 분야 기업 지원을 위한 SUNREF녹색기후기금 CFA (Credit facility agreement)를 체결했다. 이 에 따라 AFD는 BIDV와 BIDV 고객 에게 1 억 달러의 장기 대출과 30 만 유로의 기술 지원을 제공 할 예 정이다.

BIDV는 외국 위탁 자금을 관리하여 고객에게 포괄적인 금융 상품 및 서비스를 제공하는 노하 우를 보유하고 있다. 또한, 후원자와 베트남 정 부의 목표를 효과적으로 실현하도록 지원하고 있다. BIDV는 정부 및 기부자로부터 대규모 해 외 위탁 자금을 제공받아서 수혜자들에게 이 자 금을 효과적으로 지원하였다. AFD 펀드의 경 우, BIDV는 4 천만 유로에 달하는 Northern Power Transmission Project와 같은 여러 프로젝트를 진행하면서 신뢰를 구축하였다. 메 콩 삼각주의 홍수가 발생하기 쉬운 지역의 주택 개발 프로그램은 2,500 만 유로의 규모에 달한

다. 지난 몇년간, BIDV는그동안 정부, 부처 및 지원자들에게 국가 주요 해외 신탁 펀드를 관리 은행으로 신뢰 받고 있다. 또한, 4 천만 유로 규 모의 북부 전력 전송 프로젝트, 2천5백만 유로 규모의 메콩 삼각주 주택 개발 지원 프로젝트 등의 AFD 펀드를 담당하고 있다.

Le Ngoc Lam BIDV CEO는 “1 억 달러 규모 의 SUNREF 녹색 신용 한도 CFA에 서명하는 것은 BIDV와 AFD 협력관게에 중요한 이정표 이며 새로운 개발 투자 기회를 될 것이다. 녹색 신용에 대한 국제 표준을 적용한 것은 BIDV의 효과적 운영과 신용 리스트를 관리하는 데에 도 움이 될 것라고 강조하였다. BIDV는 베트남의 지속 가능한 경제 발전을 촉진하기 위해 국제 후원자들과 협력 할 의향이 항상 있다”. 라고 언 급 하였다.

Fabrice Richy 베트남 AFD 사장은 “이번 BIDV에 제공한 신용 한도는 AFD가 베트남에 서 처음으로 제공한SUNREF 녹색 신용 한도이 다. SUNREF는 30 개국, 70 개의 은행 파트너 와 함께하고 있는 프로그램이다. AFD는 베트 남의 녹색 성장과 기후 변화 적응하기 위해 베

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2021년 5월

트남 은행 및 국영 기업에 대출 및 보조금을 지 속적으로 제공하기를 바란다.”고 밝혔다.

BIDV는 에너지 부문, 특히 재생 가능 에너지, 에너지 효율, 환경 보호, 기후 변화 대응 및 녹 색 성장에 대한 투자 지원의 중요성을 인식하면 서, 베트남에서 녹색 금융의 선구자이다. 에너 지 부문 BIDV의 대출 규모는 2017-2020 년 에 연평균 비율 11.59 %로 지속적으로 증가 했다. 대출자산은 68조억 동 이상이며 은행 총 자산의 5.78 %를 차지한다. 에너지 부문의 성 장과 함께 BIDV의 재생 에너지 대출은 증가하 여, 은행 에너지 대출 포트폴리오의 90 %를 차 지한다. 지속 가능한 개발을 위한 장기 자금을 제공하는 것 이외에, AFD는 BIDV와 협력하여 사회 및 환경 관리 시스템의 구축하기 지원, 리스크 분 석 능력 개선 및 다른 국가에서 SUNREF를 구 현한 경험을 공유함으로 사회 및 환경 부문에 협력할 예정이다.

Nguyen Huyen 기자

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BIDV 10대 디지털 성과 1996년, CoreBanking IBS 프로그램 도입. 본 IBS 프로그램은 고객관리, 예금, 금용, 국제 전자결제 및 지점 규모의 회계 내역 관리 등과 같은 중요한 업무를 완전하게 처리하였다. 이 후, BIDV의 정보기술활동의 전환을 맞는 계기 가 되었다.

2003년, CoreBanking SIBS로 하노이와 호 치민 시 내에 총 7군데의 지점에서 세계은행의 후원으로 진행된 은행 결제 시스템 현대화 프로 젝트 정식 전개. 이를 통해 전국 규모로 고객과 의 거래는 온라인상 24시간으로 처리되고 은 행의 전체 데이터베이스는 최신 기술로 구축된 관리 센터에서 저장된다. 2005년에 본 프로젝 트는 완성되어 전지점 도입에 실시하였다. 이 는 BIDV의 정보기술을 인정 받게 한 것이며 시 장에 출시되는 상품이 매년 지속적으로 증가하 고 정보기술 도입된 상품의 비중이 늘어나는 계 기가 되었다.

여 담당하는 업무를 한다. 이 부서를 수립하므 로써 BIDV가 정보기술 도입을 은행의 활동에 중시한 것을 나타낸다.

2006년, BankNet와 VISA 결제의 성공적 연 결을 통하여 BIDV의 ATM 네트워크가 전세계 연결 되어 어디서든 결제가 가능하게 되었다.

2007년, 베트남 VAIP와 정보통신국의 평가 로 Vietnam ICT Index 지수에 1등을 취득했 으며 13년간 연속 1위를 달성하고 있다.

2012년, InternetBanking와 Mobile Banking 시스템 성공적으로 전개. 이를 통 하여 고객에게 BIDV Online, BIDV Mobile, BIDV Business Online 등과 같은 상품을 제 공하고 있다. 특히 BIDV@Online 상품은 2012년의 최상품의 평가를 받았다.

2019년, BIDV의 디지털뱅킹 시스템이 본격 적으로 운영 시작하여 2030년까지의 전략과 전망에 중요한 이정표를 두었다. 이 중에 정보 기술체계와 디지털뱅킹은 BIDV의 성과이다.

2020년, BIDV 정보기술센터 정식 운영. 이는 BIDV의 정보기술 구성 규모와 인적 자원 관리 의 성장을 촉진하였다. BIDV의 정보기술활동 에서 은행 결제시스템 현대화 프로젝트를 전개 할 뿐만 아니라 2002년 BIDV 채권 프로그램으 로 베트남 은행 시장에서 최초로 “아무데나 적 금 인출 가능” 상품을 개발하였다.

Quang Hoa 기자

2013년, 전지점 정보기술 전개 및 관리 시스 2006년, BIDV의 정보기술 부서 수립. 이 부 서는 정보기술 개발 계획 및 전략 실시에 대하

2015년, MHB 정보기술 시스템을 인수하여 BIDV 정보기술 체계에 성공적으로 병합했다. 이는 계량적 이익을 얻게 할 뿐만 아니라 BIDV 의 위상 강화라는 성과까지도 얻게 되었다.

템을 완성하여 지점의 70% 작업량을 정보기술 센터에 이전하게 했다.

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BIDV 리뷰

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Mrs.Nguyen Thi Hong 베트남 중앙은행 총재 (여, 앞줄)과 코로나19 백신 구매자금 지원 은행 및 BIDV 기념 사진 촬영

BIDV, 코로나 19 백신 구매자금 250억 동 기부 2021년 5월 21일에 BIDV 는 베트남 보건부에 코로 나-19 백신 구매 경비로 250억 동을 기부하였다.

BIDV를 포함한 은행권의 1,000억 동 지원금은 추가 백신 구매에 사용 될 예정이다. 백신접종은 일상을 되 찾게 해 줄 뿐만 아니라 경제 발전에 큰 원동력을 가져오게 될 것이다.

이 기부금은 코로나 19 방역 지원 을 위하여 지급되었다. 이미 BIDV는 Vinh Phuc 성, Bac Giang 성, Bac Ninh 성과 베트남암병원 (Benh Vien K)에 총 50억 동을 긴급지원한 바 있다. 본 건을 포함하여 BIDV는 방 역 활동 지원을 위하여 총 700억동을 기부하였다.

증여식에서 베트남 중앙 은행 Nguyen Thi Hong 총재는 은행 업계는 정부 및 보건부와 함께 방역 을 위해 끊임없이 노력하겠다고 강 조했다.

증여식에서 보건부의 Nguyen Thanh Long 장관은 코로나 19방역에 대한 은행업계의 노력 에 높은 평가를 내렸다. 이러한 지원으로 코로 나 19 사태로 인한 의료업계의 어려움이 어느 정도 경감 되었다.

Nguyen Thanh Long 장관에 따르면 보건 부는 백신 관련 공급 업체와 적극적으로 협상 을 진행해왔다. 지금까지 협상을 통해 COVAX

Facility에 3,890만 도스, Astrazeneca에 3,000만 도스, Pfizer/Biotech에 3,100도스 를 포함하여 총 1억 여도스 분량의 코로나 백 신을 소유하고 있다고 밝혔다. 또한, 보건부는 COVAX와 협의하여 공동협력으로 1,000만 도 스 추가 구매를 신청했다고 밝혔다. 베트남 인 구의 75%에 달하는 백신량이 1억5,000만도 스인데 아직 부족하다고 덧붙였다.

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2021년 5월

매년 은행권은 전국에서 사회보장 활 동을 위해 약1조 동 가량을 지원했 다. 2020년부터 코로나 진단키트 구 매, 백신 구매 등을 위해 총 약5,000억 동을 기 부하였다. 지역에 있는 BIDV의 지점 직원들도 지방자자 체와 힘을 합하여 방역 활동에 적극적으로 지원 하고 있다.

Hoa Quynh 기자

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BIDV, "BIDV Run for a green life” 대회 성료 이 BIDV의 사회공헌 활동의 철학을 이해하고 참 여하는 동기를 부여하게 되었다. 이 대회는 BIDV 직원뿐만 아니라 모든 지역의 고 객, 특히 프랑스, 호주, 한국 등 외국인 고객들도 베트남의 지속 가능한 발전을 위해 참여했다. 비록 "BIDVRun-For a green life"대회는 종료 되었지만, 여운은 아직 남아 있다. 직원들은 건 강을 위해 운동을 지속 할 것이고, 앞으로도 공 동체를 위한 BIDV의 프로젝트에 적극 동참할 것 이다.

Nguyen Huong 기자

Bidv 대표자들, BIDVRun for a green life대회 개회식 참가

“BIDVRun - For a green life”는 BIDV가 실행하고 있는 100 만 그루 의 나무를 심고 커뮤니티 하우스 짓 는 프로젝트를 후원하기 위해 진행 하는 대회이다. 올해 처음으로 개최 된 이번 대회에는 많은 직원과 고객 이 참여하였다. ”BIDVRun - For a Green Life" 대회는 2021.4.25 – 2021.5.14동안 열렸다. 대회 참 가자의 기록에 따라 BIDV는 후원금을 기부하기 로 하였다. Covid-19영향으로 예상보다 2일 일 찍 종료된 이번 대회는 많은 성과를 나타냈다. 총 241개 팀 28,375 명이 참가하여 누적거리 139 만 km를 달렸다. 이 대회를 통해 커뮤니티 하우 스 공사에 58 억 동을 지원하게 되었고, 63,384 그루를 심을 수 있게 되었다. 대회기간 동안 참가자들은 기부금을 늘리기 위해 많이 달렸을 뿐만 아니라 많은 그림, 편지,시를 통해 공감대를 형성했다. 이를 통해 직원과 고객

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BIDV 리뷰