BIDV Review 75 - September 2021

A Newsletter of Bank for Investment and Development of Vietnam JSC • Issue No.75 | September 2021

Finding solutions to

economic recovery BIDV receives two SME awards

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BIDV AT A GLANCE The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), founded on 26 April 1957, is the longestestablished commercial bank in Vietnam. The bank’s operations cover banking, insurance, securities, and financial investment, boasting a network of nearly 1,100 branches and transaction offices as well as presence in six countries and territories. 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).

PILLARS OF DEVELOPMENT Customer centricity Human resources and corporate culture Technology and digital banking

Priorities 2021 - 2025 Sustainable operations Sound financial capacity Transparent and effective governance Positive shift in the structure of customer base People development, fostering corporate culture Leading in IT application and digital banking in Vietnam

VISION 2030

MISSION

To become a leading financial institution in Southeast Asia, having the best digital platform in Vietnam, and among Top 100 largest banks in Asia.

To deliver the best benefits and utilities to customers, shareholders, employees and society.

CORE VALUES Customer orientation Innovation Professionalism

and trustworthiness Social responsibility

EXECUTIVE PRODUCER Bank for Investment and Development of Vietnam JSC

TRAN PHUONG 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, he Covid-19 pandemic is evolving unpredictably with the development of new variants. As the main capital channel of the economy, since the pandemic outbreak, the banking industry has faced many challenges and risks. BIDV Training and Research Institute outlined the main risks that face the banking industry including credit, market, operation, liquidity and others. Despite this, the banking industry has promoted its responsibility to share difficulties with businesses and people. According to the accumulated estimates from 23 January 2020 to 31 August 2021, the total amount of interest that has been exempted or reduced by the credit institutions for their customers is as big as USD1.14 billion.

As the largest commercial bank in Vietnam by total assets, BIDV has introduced financial solutions for SMEs, aiming to build a sustainable SME community. For its outstanding capacity and position in providing financial services and solutions to SME customers, BIDV was honoured by two prestigious magazines Asian Banking and Finance and Alpha Southeast Asia as Best SME Bank in Vietnam for the fourth consecutive year. Despite the negative impact of the Covid-19 pandemic, BIDV's SME customer base has grown steadily, reaching nearly 325,000, accounting for nearly 40 percent of the total number of SMEs in Vietnam.

For the first time Forbes Vietnam has announced the list of Top 25 Financial Brands 2021 in Vietnam. Using a calculation model from Forbes,

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Forbes Vietnam quantified the value of a brand through financial data based on its ability to generate profits. According to the list, the total brand value of the Top 25 Financial Brands reached USD3.95 billion. BIDV’s brand value was among the Top 5, worth USD320 million.

The State Bank of Vietnam has agreed to extend debt rescheduling for a further six months to support customers. In Circular 14/2021/ TT-NHNN, the central bank allows financial institutions to restructure the repayment term, exempt or reduce interest and fees, maintaining the debt group to support customers affected by the Covid-19 pandemic. The circular reduces temporarily the stress on overdue debt, risk provisioning, and ensuring system safety.

As part of the banking industry’s program, BIDV announced a donation of VND25 billion (USD1.1 million) to the “computers and telecommunications services for students” program. This is a humane program in response to the Prime Minister’s call for equipping online learning devices for disadvantaged students in localities that are under social distancing. This program has also a longterm effect as it contributes to Internet coverage, improving people's knowledge, and developing a digital society.

This publication also covers more insights into the country’s GDP growth, e-commerce, digital transformation and foreign direct investment.

september 2021

contents

BIDV HIGHLIGHTS

PARTNERS

03. BIDV donates computers to disadvantaged students

19. Hana Bank officially becomes an EPFI

04. BIDV receives double SME awards 05. BIDV makes Top 25 financial brands 06. Boosting international cooperation on human resources 08. Proud to develop alongside the nation

20. Bancassurance: a spotlight amid Covid-19 22. Moody’s changes Hana Bank’s outlook to positive

INSIGHTS

POLICY UPDATE

10. Finding solutions to economic recovery in the new situation 12. Risks to the banking industry in the pandemic

23. State Bank issues circular on debt rescheduling

14. Effective credit solutions put forward amid Covid-19

24. New regulations effective in September

MARKET MOVEMENTS

PRODUCTS & SERVICES

15. Banks move forward to digital transformation 16. E-commerce sales expected to reach USD56 billion in

25. Stay home, stay SmartBanking LIFESTYLE

next five years

26. Mid-Autumn Festival in Vietnam

17. Fitch expects Vietnam’s GDP to be strongest in ASEAN

CSR

28. BIDV continues donation for Covid-19 response

18. Foreign investors continue confidence in Vietnam’s economy

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BIDV Highlights

Q u y nh Hoa

BIDV donates computers to disadvantaged students

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IDV announces a donation of VND25 billion (USD1.1 million) to the “computers and telecommunications services for students” program which aims to provide computers and telecommunications services for students and pupils with difficult circumstances, especially those living in the pandemic-hit areas.

This is a humane program in response to the Prime Minister’s call for equipping online learning devices for disadvantaged students in localities that are under social distancing according to Directive 16. The program aims to mobilise 1 million computers, and ensure mobile service coverage at all 283 points without mobile Internet connection in localities that are applying social distancing regulations, and 1,910 other places nationwide.

This donation is under the general program of the banking industry. At the launching ceremony, Mr. Dao Minh Tu - Standing Deputy Governor of the State Bank of Vietnam represented the banking industry to donate 100,000 computers to the program.

Due to the complicated development of the Covid-19 pandemic, many localities implementing social distancing under the Government’s Directive 16 must organize online teaching and learning. For families with difficult circumstances, arranging devices for online learning for their children is a huge challenge. The “computers and telecommunications services for students” program is implemented in

Mr. Dao Minh Tu - Standing Deputy Governor of the State Bank of Vietnam (right) represents the banking industry to donate 100,000 computers to the program

the spirit of the Prime Minister of "not going to school but not discontinuing learning", aimed to support students in pandemic-hit areas to study online seamlessly and effectively.

According to statistics from the Ministry of Education and Training, as of 12 September, online teaching and learning have been deployed in 26 out of 63 provinces and cities across the country. The total number of students joining online studying is estimated at 7.35 million, of which 1.5 million do not have computers.

In addition to the timely support for the disadvantaged students during the outbreak of the pandemic, this

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program has also a long-term effect as it contributes to Internet coverage, improving people's knowledge, and developing a digital society.

As a leading financial institution in Vietnam, BIDV has implemented practical and effective activities including business support and social security programs such as “Donation to Covid-19 fund”, “Accompanying the health sector to overcome the pandemic”, emergency support for localities to fight against the pandemic.

So far this year, BIDV has donated VND230 billion (USD10 million) in total to the pandemic prevention and control efforts of the country.

BIDV Highlights

Hu y en Truc

BIDV receives double SME awards “The best choice of businesses", which waives and reduces fees for customers such as account management fees, annual fees, payroll fees.

Alpha Southeast Asia commented: “As one of the strongest banks in the country, BIDV is continuing to ride a wave of growth thanks to its sprawling domestic branch network and proactive relationship management skills with the country’s growing number of SMEs. While most banks are product-focused and operate with silos concerned about their own contribution to the bank’s overall bottom line, BIDV is today one of the most fast-moving, dynamic banks in Vietnam, despite its size”.

“As one of the largest banks in terms of loans, assets and deposits, BIDV is acutely aware of its strengths and has ingeniously channelled the right amount of resources towards helping SMEs expand overseas and gradually make a name for itself in this segment”.

BIDV was honoured by two prestigious magazines Asian Banking and Finance and Alpha Southeast Asia as Best SME Bank in Vietnam for its outstanding capacity and position in providing financial services and solutions to SME customers.

This is the fourth consecutive year BIDV has received this title.

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espite the negative impact of the Covid-19 pandemic, BIDV's SME customer base has grown steadily. Currently, BIDV is leading by market share of SME customers in Vietnam with the number reaching nearly 325,000, accounting for nearly 40 percent of the total number of SMEs in Vietnam. Total outstanding loans of SME customers at BIDV reached more than VND285 trillion (USD12.5 billion), an increase of nearly 20 percent over the same period last year.

As the largest commercial bank in Vietnam by total assets, BIDV has introduced financial solutions for SMEs, aiming to build a sustainable SME community. In 2021, BIDV issued many preferential credit packages for SMEs with a total scale of up to VND200 trillion (USD8.7 billion) and reduced lending interest rates by up to 2 percent per year to support businesses to overcome the difficulties caused by Covid-19. BIDV has also implemented a fee reduction program for SMEs titled

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BIDV is the pioneer bank to build a comprehensive solution system and an outstanding digital ecosystem to meet the needs of SMEs, helping them adapt to and withstand the fluctuations of the Covid-19 pandemic. BIDV's “SME Digitrans” program launched at the beginning of 2021 has brought outstanding benefits to SMEs in business governance and financial accounting management, minimizing risks and transaction errors in the transaction, saving time and human resources as well as improving financial management efficiency.

Early this year, the Global Banking & Finance Review (GBAF) honoured BIDV as Best SME Bank in Southeast Asia 2021.

BIDV Highlights

Anh Tran

BIDV makes Top 25 financial brands On 20 September 2021, Forbes Vietnam announced the list of Top 25 Financial Brands 2021. BIDV was among the Top 5 with brand value of USD320 million.

For the first time Forbes Vietnam has summed up the figures and calculated the brand value of Vietnamese financial enterprises in the fields of banking, securities and insurance. Using a calculation model from Forbes (USA), Forbes Vietnam quantified the value of a brand through financial data based on its ability to generate profits.

According to general principles, intangible assets and tangible assets both contribute to the level of profits. Thus, brand value is also added to the profits gained.

The total brand value of the Top 25 Financial Brands reached USD3.95 billion. Banks accounted for the largest proportion with 17 brands making the list, followed by securities with 5 brands and insurance with 3 brands.

The 5 brands in securities, a fast growing industry, were the most stable and effective companies, outperforming the rest of the industry.

In February this year, Brand Finance - the world's leading independent brand valuation consultancy – included BIDV in the list of Brand Finance Banking 500 - the world’s most valuable and strongest banking brands. BIDV jumped 30 spots to rank 246th in the Brand Finance Banking 500. In the Vietnamese market, BIDV maintained its position among the top five most valuable banking brands.

BIDV has also featured on Forbes Global 2000 list – the world’s 2000 largest public companies for the seventh consecutive year.

The ranking was based on an analysis of four metrics: sales, profits, assets and market value.

BIDV continues to be the largest commercial bank in Vietnam. As of The headquarters of BIDV, Hanoi 30 June 2021, BIDV’s total consolidated assets hit over USD71.4 billion. In The top insurance brands included the first half of the year, BIDV also Bao Viet Corporation (valued USD72 received positive recognition from million), PVI JSC (USD28 million), and prestigious international and domestic BIDV Insurance Corporation – BIC organizations with awards and (USD10 million). BIC is currently one accolades such as: Best Retail Bank in of the 8 leading non-life insurance Vietnam (The Asian Banker); Best SME companies in terms of direct insurance Bank in Vietnam (The Asian Banking & premiums, and Top 3 non-life Finance); Wholesale Bank of the Year insurance companies with the highest (Global Banking & Finance Review); rate of return in the Vietnamese among others. market.

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BIDV Highlights

Hu ong Hien

Boosting international cooperation on human resources BIDV, as well as other Vietnamese banks, has collaborated with global leading financial professional organizations to maintain internationally standardized personnel.

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he Institute of Chartered Accountants in England and Wales (ICAEW) is one of the prestigious international organizations that BIDV has trusted for the development of high-quality human resources of the bank. The collaboration dated back to October 2018 when ICAEW handed over an Authorised Training Employer (ATE) certificate to BIDV. Ms. Dang Thi Mai Trang - Chief Representative of ICAEW Vietnam said: ICAEW and BIDV have accomplished almost 3 years of effective collaboration. After the ATE, the two have practically organized multiple activities, contributing to the development of human resources under international standards for such a reputable and valuable Vietnamese financial institution brand.

Representative of ICAEW awards the ATE certificate to BIDV Training and Research Institute (October 2018)

Since 2018, ICAEW has granted 25 scholarships to BIDV employees.

During global examinations and the learning process, learners from BIDV have been supported and connected with the network of ICAEW’s learners and experts in Vietnam and around the globe. Over the past 3 years, ICAEW has regularly set up talk shows and professional seminars to update domestic and international practices for over 150 groups of audience from BIDV. After 3 years working with ICAEW, two BIDV employees have completed their programs and gained international certificates in Finance, Accounting and Business (ICAEW CFAB). They are continuing with ICAEW ACA courses to

Representative of ICAEW awards ICAEW CFAB certificate to a BIDV employee (October 2019)

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BIDV Highlights

become future Chartered Accountants, a prestigious title in the field of finance, accounting, and business. Many other BIDV employees are effortlessly learning to conquer ICAEW's international professional certifications.

The certification and international standard knowledge given by ICAEW programs have boosted the confidence of BIDV employees in their field of work, thus better serving customers and improving the overall operational efficiency of BIDV. Dr. Can Van Luc, Chief Economist of BIDV and Head of BIDV Training and Research Institute, spoke highly of the collaboration with ICAEW, which was set in the roadmap to improving the quality of human resources in BIDV, contributing to the increase of quality and efficiency in operations in the period of international economic integration.

BIDV has appreciated the professional support and cooperation from ICAEW. ICAEW has offered BIDV employees opportunities and motivation to excel in

their work by approaching international standards methodically and effectively in terms of knowledge, professional skills, and professional ethics...

“We believe that in the coming time ICAEW will continue to provide our employees with more international leveled opportunities in learning and professional development”, said Dr. Can Van Luc. In the banking sector development strategy to 2025, vision to 2030, development of a high-quality human resource is identified as one of the key factors for sustainable development, enhancing competitiveness, reducing the development gap between Vietnam’s banking sector and that of the region and the world. Some experts firmly argued that a human resource with skills and recognized professional certificates which are under international standards, such as ICAEW's, is an important factor for Vietnam’s financial and banking sector’s success in the integration process.

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Founded in 1880, the Institute of Chartered Certified Accountants of England and Wales (ICAEW) has a long history of serving the public interest and it continues to work with governments, regulators, and business leaders around the world.

And, as an improvement regulator, it supervises and monitors over 12,000 firms, holding them, and all ICAEW members and students, to the highest standards of professional competency and conduct.

ICAEW has over 159,000 Chartered Accountants members working in 150 countries and territories globally.

In Vietnam, ICAEW has been actively cooperating with the Ministry of Finance, the Ministry of Education and Training, professional associations, leading enterprises, and universities in human resources training under international standards.

The cooperation aims to improve the professionalism of the finance, accounting, and auditing industries, contributing to the development of the business community as well as the Vietnamese economy.

BIDV Highlights

Na m Anh

Proud to develop alongside the nation As the longest-established commercial bank in Vietnam, bearing different names and taking on different tasks to meet the requirements of the country at the time, BIDV boasts a proud history and a solid leading position in the banking system.

1957 – 1981: Founded when the country was active in the period of economic recovery, the Bank for Construction of Vietnam made important contributions to the management and allocation of capital for construction.

The Bank for Construction of Vietnam allocated capital for building industrial facilities and construction projects to serve national welfare and people’s livelihoods, contributing to changing the face of North Vietnam. The Bank and the Vietnamese people worked together to complete the tasks of construction in wartime, supplying capital for air defense projects, traffic projects and relocation of important industrial factories.

In the period 1975 – 1981, the Bank joined to renovate economic facilities in the South and develop new infrastructure after the war. The bank provided capital for industrial, agricultural, transportation, public welfare projects, and key projects critical for the national economy.

1981 – 1990: On 24 June 1981, the Bank for Construction of Vietnam was transferred from the Ministry of Finance to the State Bank of Vietnam under the new name Bank for Investment and Construction of Vietnam.

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In the period 1981 - 1990, the Bank for Investment and Construction of Vietnam improved operational mechanisms for continued development. This was also the period when the bank made strong movements in line with the national renovation in general and the banking

BIDV Highlights

BIDV made significant contributions to the country’s innovation during this period. The bank ensured working capital for construction companies, encouraging them to boost construction progress and improve technology and productivity.

1990 – 2012: In 1990, the Chairman of Council of Ministers issued Decision 401/CT regarding the establishment of the Bank for Investment and Development of Vietnam on the basis of the renaming of the Bank for Investment and Construction of Vietnam. In the year, BIDV conducted its first international business operations. The bank partnered with foreign financial institutions to establish joint ventures. During this period, BIDV’s foreign business operations covered finance, banking, insurance and securities with the establishment of representative offices and banks in Laos, Cambodia, then Myanmar, Russia, Czech Republic.

BIDV has transformed into a commercial bank since then, integrating into the international financial markets. Since 1995, BIDV has been a fully commercial bank, continuing to develop and boost the market economy of Vietnam. sector in particular, progressively becoming one of the leading specialized banks in the country. The bank also directly provided loans to businesses, progressively transforming into a commercial bank according to the market mechanism.

2012 – 2015: BIDV was equitized according to the direction of the Government, ensuring harmony in the interests of the State, enterprises, investors and employees, operating under market mechanism with a strong direction for international integration.

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On 28 December 2011, BIDV implemented equitization through an initial public offering (IPO). On 27 April 2012, BIDV officially transformed into the Joint Stock Commercial Bank for Investment and Development of Vietnam, making significant changes to ownership structure, ensuring transparency in accordance with international practice.

BIDV has been listed on the stock exchange under the code BID since January 2014, operating effectively in the international competitive market environment. During the period, BIDV comprehensively completed its business targets, strengthening competitive capacity, becoming the leading commercial joint stock bank in Vietnam with sustainable development.

2015 – now: On 25 May 2015, Mekong Housing Bank (MHB) was officially merged with BIDV. The merger follows the government’s plan to restructure banks and was agreed upon by both MHB and BIDV. The entire merger process was completed within 55 days.

This laid an important foundation for BIDV to enhance its business effectiveness and prepare for integration and competition with regional peers.

On 11 November 2019, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) officially signed a strategic cooperation agreement and announced Hana Bank as its foreign strategic shareholder who owns 15 percent of BIDV’s charter capital. This is the biggest M&A deal with a strategic investor in Vietnam's banking industry.

Insights

Du c Anh

Finding solutions to economic recovery in the new situation find a common voice and solutions to overcome the difficulties.

Since the outbreak of the pandemic, the Government has issued many policies to support businesses, including Resolutions No.86/NQ-CP and No.105/ NQ-CP on supporting businesses, cooperatives and business households in the context of the Covid-19 pandemic. Other policies and solutions to support businesses were also put in place such as policy on flexibly implementing regulations on Covid-19 pandemic prevention and control; on supporting workers and employers; on corporate income tax reduction, on supporting businesses, particularly small and medium-sized enterprises to improve their competitiveness.

Prime Minister Pham Minh Chinh chairs an online conference with the business community and localities on solutions to support businesses amid Covid-19

The Government, the National Assembly and the State Bank of Vietnam have organized conferences to find solutions to flexibly adapt to, effectively control the Covid-19 pandemic and restore the economy. Senior leaders of BIDV participated in these conferences to get informed of directions as well as giving inputs for effective implementation.

Government in talks with businesses On 26 September, Prime Minister Pham Minh Chinh chaired an online conference with the business community and localities. The conference discussed solutions to adapting safely, flexibly, and effectively controlling the pandemic while restoring the economy.

The Prime Minister said that if the focus was only on fighting the pandemic, resources will run out and if the focus was only on economic development without solutions to combat the pandemic, the people's health cannot be protected. An exchange cannot solve all problems, it is necessary to promote the spirit of innovation, creativity, mutual understanding, solidarity, unity to

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The Government is directing the development of a plan on safe, flexible adaptation to and effective control of the Covid-19 pandemic, drafting to amend and supplement many laws to continue removing the difficulties in production and business. The Prime Minister Pham Minh Chinh emphasized: the Government has been accompanying the business community in the spirit of “3 Don’ts” - Don’t say “no”, Don’t say “difficult”, and Don’t say “yes” but then take no action.

Expert consultation for economic growth On 27 September, the National Assembly held a seminar to consult experts on socio-economic development under the chair of National Assembly Chairman Vuong Dinh Hue. The seminar is a forum for experts, scientists and regulators to express their in-depth, independent

Insights

and constructive views in order to meet the socio-economic development plan of 2021 and building a quality and sustainable plan for the next year.

Regarding fiscal policy and monetary policy, the National Assembly assigned the Government to consider support measures toward a more balanced direction. The fiscal policy should be more supportive for economic recovery in the direction of increasing spending on health, more cash support for people; reducing interest rates for the right subjects.

The National Assembly Chairman said that in order to effectively disburse public investment, good preparation and capital allocations are of significance. Besides, it is necessary to accelerate equitization and divestment to increase budget revenue and attract more investors to participate in restructuring businesses and the economy more effectively.

The participating experts proposed to the National Assembly a master program for post-pandemic economic recovery, with a specific roadmap. It is necessary to promote the startup ecosystem, digital transformation, digital economy, green growth, restructuring of the economy, reviewing and strengthening national governance capacity and capacity for policy implementation.

Banking industry’s support for businesses Given the complicated development of the Covid-19 pandemic, the State Bank of Vietnam has taken a proactive and flexible approach to monetary policy in order to timely support businesses and

people. The central bank also closely directs credit institutions to balance, fully and promptly meet the capital needs for production and business, speed up administrative reform, and shorten the turnaround time, improve customers' access to loans; promptly take measures to support businesses and people.

At the conference on implementing the task of supporting airlines affected by the Covid-19 pandemic under the Government’s Resolution No.105/ NQ-CP, Mr. Dao Minh Tu - Standing Deputy Governor of the State Bank said the complicated developments of the pandemic severely affect the economy, businesses and people, including airlines.

Against that backdrop, the Government in general and the State Bank in particular have taken many solutions to support businesses and people such as rescheduling debt repayment, reducing and exempting interests, fees, and maintaining the debt group, etc. for customers facing difficulties due to the impact of the pandemic.

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Mr. Tran Long – Senior Executive Vice President of BIDV - said: the lending interest rates for airlines are at a very low level. If other costs such as deposit insurance and required reserves are taken into account, the margin is negative. Mr. Tran Long also proposed the State Bank consider removing difficulties faced by banks in implementing credit policies for airlines that are suffering continuous loss and have not yet determined their ability to repay debts in the future.

This is the banks’ difficulty when continuing to finance, maintain and increase the credit limit for airlines.

The banking industry has played an important role in the economic recovery and development in the new normal. As one of the largest Stateowned commercial banks with a long history of operation and reputation, BIDV has been joining the banking industry and the whole country to overcome the pandemic.

Insights

Ho a Vu

Risks to the banking industry in the pandemic The Covid-19 pandemic is evolving unpredictably with the development of new variants. As the main capital channel of the economy (accounting for nearly 50 percent of total social investment in 2020), since the pandemic outbreak, the banking industry has faced many challenges and risks.

failure to pay the due debt on time.

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IDV Training and Research Institute recently issued a report on risks to the banking industry in the context of the Covid-19 pandemic. According to the reports, the main risks that face the banking industry include credit, market, operation, liquidity and others.

First, credit risk should be taken into account. Bad debt potentially arises due to businesses and people facing difficulties. The Covid-19 pandemic has had an impact on all economic sectors, with industrial production and service sectors (tourism, entertainment, transportation, retail, etc.) being most heavily affected.

A survey conducted by Vietnam Chamber of Commerce and Industry

(VCCI) showed that 87.2 percent of businesses in most industries are negatively affected by Covid-19, 65 percent of private enterprises and 62 percent of FDI enterprises experienced a decrease in revenue in 2020. The average revenue reduction of private enterprises was 36 percent and that of foreign invested enterprises was 34 percent. Micro, small and medium enterprises suffered a higher revenue decline than large businesses.

The risk of arising bad debt not only roots from corporate customers but also individuals. When the economy is deteriorated by Covid-19, the wave of job cuts spreads across industries such as aviation, tourism, retail, entertainment, catering, resulting in income decline of many people and

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According to a survey by Vietnam Report (June 2021), 96.15 percent of experts and bank representatives said that one of the biggest challenges facing banks is the potential increase in bad debt due to the impact of the Covid-19 pandemic. The increase in bad debt poses pressure on the reversal of accrued interest and provisioning, thereby reducing banks’ profits. The rescheduling of debt repayment, exemption and reduction of interest and fees, and maintaining the debt classification aims to support customers affected by the Covid-19 pandemic.

However they are potential bad debts for commercial banks in the long run.

Regarding market risk, during the Covid-19 period, similar to many countries in the world, Vietnam maintained a loose monetary policy, expanded the money supply, and reduced lending interest rates to support economic sectors.

In addition, administrative orders from regulators as well as calls from

Insights

On the liquidity supply side: people and businesses may reduce their deposits in banks and switch to other investment channels with higher yields such as securities, real estate, digital currency. In addition, the difficult business situation of enterprises possibly triggers debt default, which hammers banks’ revenue/earnings in the coming period. The less developed market for buying and selling assets (mainly loans) may affect banks’ ability to convert less liquid assets to more liquid ones.

organizations and associations were made to request banks to further reduce lending rates. Accordingly, the reduction of lending rates in the context of increasing inflationary pressure will put pressure on the business performance of banks. Data from the State Bank showed that, as of 14 June 2021, the amount of interest exemption and reduction for customers between 23 January 2020 and 14 June 2021 was VND18.2 trillion (USD795 million) (equivalent to 10 percent of the banking industry’s profits in 2020).

In the first half of 2021, BIDV launched credit packages at a preferential interest rate with a total scale of up to VND368 trillion (USD16.1 billion). The bank proactively reduced its income

by VND2,500 billion (USD110 million) to support customers while this figure in 2020 was VND6,400 billion (USD280 million).

For operational risk, it is the risk of business interruption. Before the 4th wave of the Covid-19 outbreak took place, the banking system got

used to, adapted to the change and significantly improved products and services, customer segments, distribution channels as well as adopting management models and methods that fit the new normal. However, the rapid spread of the pandemic caused the operational activities as well as the operating structure of all banks from the Head Office to branches and transaction offices to be affected and disrupted.

To maintain business continuity, the arrangement of personnel is the core.

According to a survey of more than 1,300 human resources executives across the globe by KPMG on the Future of Human Resources 2020, 60 percent believe that the human resources function will rapidly become irrelevant if it doesn’t modernize its approach to understanding and planning for the future needs of the workforce.

The banking industry also faces liquidity risk in the context of Covid-19. When the economy is still facing difficulties due to the Covid-19 pandemic, liquidity risks may occur as follows:

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On the liquidity demand side: The Covid-19 pandemic may cause operational risk and reputational risk for banks, possibly leading to a bank run due to psychology. However, the probability of this happening is very low. Demand for credit grows rapidly, which requests short-term liquidity at these times. The liquidity of the banking industry since the outbreak has been stable, with no signs of a crunch due to the flexible management measures by the State Bank.

Other risks could be competition between banks with Fintech, Bigtech.

In the long run, new players in the financial market such as Fintech, Bigtech will be key competitors for banks. In addition, network security, data risk would be a type of risk that banks need to pay special attention to during and after the pandemic.

The Covid-19 pandemic has made the digital transformation process of the banking industry faster and stronger to meet the needs of customers, but it also poses more cyber risks.

Insights

Le Ha ng

Effective credit solutions put forward amid Covid-19 Over the past time, the State Bank of Vietnam (SBV) and credit institutions have proactively and drastically come up with solutions to help ease difficulties faced by businesses and people.

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he SBV has cut key interest rates three times, with policy rates reduced by 1.5-2.0 percent p.a.; and deposit interest rate cap by 0.6-1.0 percent p.a. for less-than-six-month term deposits; reducing lending rate cap by 1.5 percent p.a. on short term loans for the priority sectors (currently at 4.5 percent p.a.). The lending interest rates decreased by about 1 percent p.a. on average, and maintained this downward trend the first half of 2021.

Implementing the Government’s Resolution No.63/NQ-CP, 16 commercial banks (accounting for 75 percent of the total outstanding loans of the economy), have agreed in the principle to further cut the lending interest rates on the existing loans by up to 1 percent p.a. until the end of 2021 for Covid-affected customers.

The total reduced interest amount is estimated at VND20,613 billion (USD900 million). Four State-owned commercial banks (BIDV, Vietcombank, VietinBank, Agribank) have committed to a VND4 trillion (USD175 million) support package through lowering lending rates and reducing service fees during the social distancing time.

As of 31 August 2021, the credit institutions had exempted and/ or reduced interest rates for over 1.13 million customers, with total

outstanding loans of over VND1.58 quadrillion (USD69 billion). According to the accumulated estimates from 23 January 2020 to 31 August 2021, the total amount of interest that has been exempted or reduced by the credit institutions for their customers is as big as VND26,000 billion (USD1.14 billion).

The credit outstanding for the whole economy had reached over VND9.87 quadrillion (USD431 billion) in the first eight months of the year, up 7.42 percent year-on-year; the credit for economic sectors had registered higher growth rates than the same period last year. The credit growth for the priority fields and sectors including agriculture and rural areas, export, supporting industries, and hi-tech enterprises, had experienced a positive growth rate.

In addition, the SBV issued Circulars 01/2020/TT-NHNN and No.03/2021/ TT-NHNN which have created a legal

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framework for the credit institutions to reschedule the debt repayment, waive and reduce interest and fees, maintain debt classification, for customers affected by the Covid-19 pandemic until December 2021. On 7 September 2021, the SBV issued Circular No.14/2021/TT-NHNN amending and supplementing Circular No.01/2020/ TT-NHNN, extending the timeline until 30 June 2022.

In the coming time, to continue to support the people and businesses as well as to prepare for the postpandemic economic recovery, the SBV will continue to maintain reasonable credit growth associated with improving the credit quality, strictly controlling the credit growth in potentially risky sectors. The central bank also monitors and asks the credit institutions to deliver their commitments to reduce the lending interest rates and service fees.

market movements

Tr u c Anh

Banks move forward to digital transformation

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anks are taking advantage of Vietnam's potential environment to conduct digital transformation to meet increasingly technology-driven consumer demands.

In a talk show about trends and strategic initiatives to build a digital banking ecosystem held on 8 September, experts said that Vietnam which has the fastest growing and most diverse form of digital banking today compared to markets such as the Americas and Europe – also has great potential to develop its digital banking system.

Vietnam is home to a growing middle class. According to a report on the digital economy in Southeast Asia in 2020 by Google, Temasek and Bain & Company, Southeast Asia's digital economy is expected to gain USD300 billion in 2025, of which Vietnam is worth USD52 billion.

In addition, Vietnam has a young population, which plays a major role in the financial service system and will boost the diversity of financial services in the near future. With a young population, Vietnam has the highest percentage of digital consumers in Southeast Asia, with 41 percent of customers across sectors.

Moreover, the increase of super apps has created a value-added chain of goods and services on a single platform and the government and management agencies are opening up and encouraging digital banking systems to develop.

Banks are moving towards a customercentric rather than product-based approach, which is why they see an increase in partnerships in their ecosystem. In the past 12 months, more and more banks invest in digital platforms not only for retail customers but for small- and medium-sized enterprises, large enterprises, and wealth management services.

Vietnamese banks have invested a lot but focused on fragmented and discrete solutions. However, banks have also realised that to scale and to understand customers better, it is important to aggregate data not only from their key solutions but from the partnership with fintech and data across sectors.

Mrs. Nguyen Thi Quynh Giao, senior executive vice president in charge of BIDV’s Retail Banking Group said that banks have different digital transformation strategies.

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“Digital transformation is extremely challenging to large banks such as BIDV. Building a digital ecosystem is also a challenge. Banks are not only concerned about digital transformation, they also need to look at business conditions, market development, and customer needs.

It is imperative to participate in the ecosystem of partners to get the best value for both the bank and the public.”

Experts suggest banks cooperate and connect with technology companies that provide technology and capabilities that banks do not invest in and develop themselves. Connecting with different fintech companies and partners such as e-wallets and e-commerce platforms that have a large customer base, and customer data, will help banks better understand customers.

market movements

Ol ivia B ui

E-commerce sales expected to reach USD56 billion in next five years and Indonesia. By the end of 2026, Vietnam’s e-commerce GMV is expected to grow 4.5 times from 2021 levels, while the Philippines’ is projected to grow 3.8 times and Indonesia’s by 1.6 times, the report claims.

Vietnam enjoys the second-highest growth rate in Southeast Asia at 8 percent trailing behind Indonesia (15 percent) and followed by Malaysia (5 percent), the Philippines (5 percent), Singapore (5 percent), and Thailand (2 percent). Vietnam's digital consumer population is expected to grow from 49 million in 2020 to 53 million in 2021.

Vietnam’s e-commerce GMV is expected to grow 4.5 times from 2021 levels

Vietnam is expected to experience a significant increase in e-commerce sales from USD12 billion in 2021 to USD56 billion in 2026, according to an annual report by Facebook Inc. and Bain & Co.

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urveying more than 16,000 people across Singapore, Malaysia, the Philippines, Indonesia, Thailand, and Vietnam, the report reveals that online consumer spending in Southeast Asia continues to gain momentum as shown by e-commerce gross merchandise value (GMV).

By the end of 2021, the Southeast Asian region’s e-commerce GMV is projected to reach USD132 billion, which is 1.8 times higher than the USD75 billion recorded in 2020. But it does not stop there. In five years, e-commerce GMV is expected to reach USD254 billion, nearly double the figure by the end of 2021, representing a compound annual growth rate of 14 percent.

5-year growth will be even more dramatic for Vietnam, the Philippines,

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In addition, Vietnamese consumers appear to be open to trying new stores, with 61 percent of respondents expressing willingness to do so.

The report also points out that digital spending continues its expansion amid the pandemic, with spending per person and overall e-commerce sales both seeing explosive growth on-year.

The average spending per digital consumer is expected to grow 60 percent by the end of the year, from USD238 per person at the end of 2020 to USD381. This figure is projected to reach USD671 by 2026, nearly double this year’s figure and 4.9 times as much as the figure in 2019.

The contribution of online retail to total retail for key categories rose faster in Southeast Asia than in Brazil, China or India, going from 5 percent in 2020 to 9 percent in 2021.

market movements

Q u ang Liem

Fitch expects Vietnam’s GDP to be strongest in ASEAN On 23 August 2021, Fitch Ratings affirmed Vietnam’s rating at ‘BB’ in April 2021 and revised the Outlook to Positive from Stable on the resilience at that time of Vietnam’s growth and public finances to the pandemic shock.

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ccording to Fitch, an escalation in Covid-19 cases and deaths over July-August will undermine Vietnam’s previously strong recovery from the pandemic shock and may temporarily set back positive rating momentum.

The Vietnamese authorities had succeeded in keeping the number of Covid-19 cases low prior to the latest outbreak. The economy expanded by 5.6 percent YoY in the first half of 2021, accelerating from 2.2 percent in the first half of 2020, but restrictions to control the spread of the disease will weigh on activity in the third quarter of 2021 and could persist if the outbreak is not under control.

This poses significant risks to our current forecast that growth will average 6 percent in 2021. However, we still expect Vietnam’s GDP performance over 2020-2021 to be the strongest

Da Nang City, Vietnam

among Fitch-rated sovereigns in ASEAN. Some lost growth momentum may also be made up in subsequent quarters as output and social activity normalise, although the risk of further outbreaks will linger as Vietnam’s vaccination rates remain low.

Exports have been an important support for Vietnam’s economy during the crisis. Goods exports have been strong, with merchandise exports rising by 26.2 percent YoY in the first seven months of 2021.

A loosening of credit policy designed to cushion the impact of the pandemic may have been one of the factors supporting import growth. Financial

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system credit rose by 15.2 percent YoY in the first half of 2021, faster than the nominal GDP growth of 6.7 percent.

Fitch expects this trend to be sustained in the second half of 2021 as the authorities guide banks towards lower lending rates and accept faster system credit growth.

Fitch said in April that a material reduction in risks posed to the sovereign balance sheet from weaknesses in the banking sector could be a trigger for a sovereign rating upgrade. However, the adverse effects of the recent Covid-19 outbreak could reduce the likelihood of this, at least in the near term.

market movements

Minh An

Foreign investors continue confidence in Vietnam’s economy Foreign investment inflows into Vietnam during the first nine months of this year rose 4.4 percent year-on-year to USD22.15 billion despite the impact of Covid-19.

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ccording to the Foreign Investment Agency under the Ministry of Planning and Investment, as of 20 September 2021, from January to September this year, total newly registered capital and capital contributions and share purchases by foreign investors hit USD22.15 billion, up 4.4 percent year on year. However, due to the complicated development of Covid-19 which resulted in factory closures or suspension, disbursement of foreign direct investment fell 3.5 percent yearon-year to USD13.28 billion.

Vietnam was home to 34,141 valid foreign-invested projects worth USD403.2 billion. Of the sum, USD245.14 billion or 60.8 percent has been disbursed.

Foreign-invested businesses posted a trade surplus of nearly USD18.2 billion in the first 9-month period as they gained USD178 billion from exports, a yearly hike of 23 percent while their imports hit USD159.8 billion, up 34.4 percent.

In the first nine months, foreign investors have poured money into 18 fields and sectors, in which manufacturing and processing led the pack with investment capital of nearly USD11.8 billion, accounting for 53.4 percent of the total registered capital.

Ha Long City, Quang Ninh province

Electricity production and distribution came second with USD5.5 billion, or 25 percent, followed by real estate with USD1.78 billion and wholesale and retail with over USD750 million.

94 countries and territories having projects in Vietnam from January to September 2021, with Singapore taking the lead with USD6.3 billion, or 28.4 percent of the total FDI capital.

South Korea surpassed Japan to rank second with over USD3.9 billion, up 23.4 percent year-on-year or equivalent to 17.7 percent of the total FDI. Japan came next with nearly USD3.3 billion, up 89 percent. Other leading sources of Vietnam's FDI were from mainland China, Hong Kong and Taiwan.

Among 58 cities and provinces having received FDI in the period,

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the southern province Long An has attracted the largest portion of capital commitments with USD3.6 billion, or 16.4 percent of the total. The northern port city of Hai Phong came second with nearly USD2.7 billion (12.2 percent), followed by Ho Chi Minh City with USD2.4 million (10.6 percent).

According to the Vietnam Macro Monitoring report recently released by the World Bank, the foreign direct investment inflow suggests continued confidence in Vietnam’s economy.

Looking ahead, according to the World Bank, economic recovery in 2021 will depend on whether the government will be able to manage the current outbreak effectively in September so that economic activities can resume in the last quarter of the year.

partners

Hana Bank officially becomes an EPFI screening system to categorize projects that may fall under the Equator Principles based on their possible environmental and/or social risks, as well as set up a management process for each category to minimize the negative impacts of large development projects.

“Adoption of the EPs was a meaningful first step for us, and Hana Bank will proactively engage any environmental or social risk arising from imprudent development and further take a lead role in sustainable financing,” said a spokesperson for ESG Planning Section of Hana Bank.

Hana Bank announced that it has been approved to join the Equator Principles Association and has become an ‘Equator Principles Financial Institution (EPFI)’ on 23 August.

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he Equator Principles (EPs) is a risk management framework adopted by financial institutions for determining, assessing and managing environmental and social risk in projects. It's primarily intended to provide a minimum standard for due diligence and monitoring to support responsible risk decision-making.

In pursuit of ESG management missions, Hana Bank has prepared to become a member of the EP Association by benchmarking existing EP members, bringing out a set of items for process improvement, producing an internal manual for the EPs in cooperation with the departments concerned, making employee training materials and developing a computerized system that contains EP implementation process.

As an EPFI, Hana Bank plans to establish an environmental/social

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In April this year, Hana Financial Group announced its mid- to longterm ESG implementation goals (2030 & 60) and (Zero & Zero) under the ESG vision of ‘Big Step for Tomorrow’ and pursuing finance for the sake of ‘Growing Together and Sharing Happiness.’

Moreover, the Group highlighted its commitment to the ‘Hana Financial Group Sustainable Finance Framework’ through the Sustainable Management Committee of the Board of Directors on July 22nd.

As for the framework, the Group defined the meaning of sustainable finance and laid the groundwork for greater ESG finance and transparent performance disclosure by setting up Group standards related to the sector policy against carbon intensive industries, a sustainable finance classification system (HanaTaxonomy), an Environmental and Social Risk Management system and ESG integration for investment.

partners

Manh Hai

Bancassurance: A spotlight amidst Covid-19 orientation of BIDV's leadership for insurance activities.

Since the establishment of BIC, BIDV's leadership has identified insurance as one of the two main business pillars in its commercial banking business.

That role continues to be maintained and developed over the years. In the Business Strategy to 2025 with a vision to 2030, BIDV identifies insurance as a key driver in the bank’s business ecosystem. Over the years, insurance has become an indispensable part of the business operation of BIDV.

In the last 5 years, the bancassurance channel at BIDV has been continuously changing for the better and has reaped many encouraging results.

Significant growth In the first 8 months of 2021, total bancassurance revenue through BIC (BIDV Insurance Corporation) across BIDV's system reached VND447 billion (USD19.5 million), up 47 percent compared to the same period last year, contributing VND152 billion (USD6.6 million) to BIDV's net service income.

In a broader view, in the last 3 years, BIC’s bancassurance revenue has also grown impressively at 70 percent per year. It can be said that BIDV and BIC have been entering into the "golden period" in terms of cooperation in developing insurance distribution channels through banks. This once again confirms the vision and correct

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Following the orientation of BIDV's leadership, the relationship between BIC and BIDV has evolved towards BIC being both a subsidiary but also a key business partner of BIDV. Becoming a major partner has bolstered the cooperation relationship between BIDV and BIC, demonstrating mutual understanding of benefits, and at the same time, gearing activities towards more professionalization, evidenced by efforts and commitment to bringing breakthrough developments to the whole BIDV system.

In efforts to improve bancassurance revenue flow to the bank, BIDV's Headquarters continuously issues motivational mechanisms, policies, and programs to promote cross-selling of products across the system. The rapid development of the fourth industrial revolution as well as the impact of the Covid-19 pandemic poses urgent requirements to increasing the

partners

application of information technology to banking. In fact, in recent years, the digitization of the bancassurance channels has also achieved positive results. The BIC insurance revenue management system through BIDV is continuously updated and developed, helping to speed up the process of receiving customer information, accounting for direct revenue, and making a significant contribution to the strong growth of the insurance company.

A driver for development With the goal of customer-centricity, service quality is a top priority. BIC always commits the best resources to develop bancassurance activities in cooperation with BIDV. The quality of compensation and customer care activities has continuously improved.

Insurance products are developed and tailored to the bank's products, with the goal that insurance products must become a competitive advantage of the banking product and service package, bringing practical benefits to customers, BIDV and BIC. In July 2021, BIC cooperated with BIDV to implement the motor vehicle insurance program. With the expectation that the Covid-19 pandemic will be soon controlled, the economy will enter the phase of recovery in the last months of the year, motor vehicle insurance may become an important product, generating great revenue for BIC in particular and

business results of BIDV in general.

As a matter of fact, in recent years, the credit growth rate has been strictly controlled and is not as high as in the past. Most experts commented that when credit activities are affected by the Covid-19 pandemic, the promotion of non-credit services, including insurance, will help banks restructure their revenue sources in a more sustainable manner.

Compared to other banks in the market, BIDV has many advantages with its subsidiaries in the insurance sector. According to the latest report of Vietnam Report Joint Stock Company (Vietnam Report), BIC is currently one of the 6 most prestigious insurance companies in Vietnam. With a solid foundation of

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banking-insurance cooperation over the years, BIDV expects impressive results in stronger development of bancassurance in the coming time, particularly in the context of the Covid-19 pandemic.

According to Vietnam Report, despite the current Covid-19 pandemic, bancassurance in Vietnam still grows sustainably. Since the outbreak of the pandemic, bancassurance revenue across the sector has grown by 66.7 percent.

While many sectors such as credit, forex, etc. are forecast to decrease due to the impact of the pandemic, bancassurance is expected to boom and will become a very profitable source of service revenue for banks.

partners

Moody’s changes Hana Bank’s outlook to positive a three-notch uplift for government support to reflect the very high level of support from the Korean government (Aa2 stable) in times of need. Moody's view of the government support takes into consideration the bank's systemic importance as one of the largest banks in terms of asset size and the bank's designation as a domestic systemically important bank in Korea. It also reflects Korea's strong capacity to provide support, and the government's track record of bailing out distressed banks.

On 30 July 2021, Moody's Investors Service has affirmed the long-term foreign currency A1 bank deposit and A1 senior unsecured ratings of Hana Bank.

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oody's has also affirmed the bank's Baseline Credit Assessment (BCA) and adjusted BCA of baa1.

The change in outlook to positive from stable reflects Moody's view that the bank's improved asset performance and funding, along with stable profitability and capitalization, could lead to a stronger credit profile if they're sustained over the next 12-18 months. The positive outlook on Hana Bank reflects the bank's improving

asset quality, funding and profitability, narrowing the gap with its domestic bank peers rated with an a3 BCA. The improvements have been sustained since the formation of the bank in 2015 through the merger of Korea Exchange Bank and Hana Bank, which has strengthened its retail banking franchise, resulting in a loan portfolio similar to its peers.

The affirmation of Hana Bank's A1 long-term deposit and senior unsecured ratings and baa1 BCA reflects the bank's strong and improved asset quality; moderate funding and liquidity; strong capitalization; and moderate profitability, which Moody's expects will remain stable.

Hana Bank's A1 long-term deposit and senior unsecured ratings incorporate

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Moody's regards Hana Bank's improved risk management as a governance strength under its environmental, social and governance (ESG) framework, given its implications for the bank's financial strategy and risk management. Today's action reflects the impact on Hana Bank from the governance strength, and the improvement in credit quality it has triggered.

The ratings on the bank's branches are aligned with that of the bank, taking into consideration that the bank and the branches are legally the same entities.

Hana Bank, headquartered in Seoul, South Korea, had total assets of KRW410.7 trillion (USD362.9 billion) at the end of March 2021. Hana Bank is the foreign strategic shareholder of BIDV, owning 15 percent of the Vietnamese bank’s charter capital.

Policy update

Ho ng Ha

State Bank issues circular on debt rescheduling internal regulations for the debts incurred before 1 August 2021 with repayment obligation between 23 January 2020 and 30 June 2022 and for customers unable to repay debts due to the Covid-19 pandemic.

The central bank’s move aims to alleviate difficulties for businesses hit hard by the Covid-19 pandemic, especially as the fourth wave of infections is causing severe impacts on economic activities and affecting the payment capacity of businesses and people.

The headquarters of the State Bank of Vietnam

The State Bank of Vietnam (SBV) has agreed to extend debt rescheduling for customers for a further six months.

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n Circular 14/2021/TT-NHNN issued on 7 September 2021, the central bank allows financial institutions to reschedule debts incurred before 1 August 2021, instead of 10 June 2020; and debts with repayment obligations from 23 January 2020 to 30 June 2022, instead of 31 December 2020.

The new circular extends the repayment term for customers by another six months compared to Circular 03, until 30 June 2022.

In addition, the restructuring of debts incurred from 10 June 2020 to before 1 August 2021 and overdue from 17 July 2021 to before 7 September 2021 will be extended.

The new regulation also allows credit institutions and foreign bank branches to decide the exemption or reduction of interest and fees according to their

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According to the State Bank, the sixmonth extension of debt rescheduling is based on the vaccination roll-out and disease control plan of the Government.

Earlier, many banks agreed to cut lending rates until the end of this year to support businesses. From the business side, they expected cheaper lending costs, as well as banks to extend their debt repayment terms as the pandemic severely affected their financial health.

Circular 14 provides for more specific instructions than the previous ones with clear provisions on the exemption and reduction of interest and fees, showing the closer attention and supervision of the State Bank on this activity. The circular also allows commercial banks to deploy debt restructuring solutions more conveniently, providing timely support to customers who are facing difficulties due to the impact of the pandemic.

Policy update

Minh Thu

New regulations effective in September BIDV Review picks up some new regulations which take effect this September including Circular No.60/2021/TT-BTC by the Ministry of Finance and Circular No.06/2021/TT-BLDTBXH by the Ministry of Labor, Invalids and Social Affairs.

Conditions to enjoy pension upon decrease in working capacity

Amending the application for valuation practice registration for valuers On 21 July 2021 the Ministry of Finance issued Circular No.60/2021/TT-BTC related to valuation. The circular takes effect on 3 September 2021.

According to the Circular, for a valuation enterprise’s valuers being foreigners, certified copies of their work permits issued by competent Vietnamese agencies with the working period conforming with the term of their labor contracts must be included in the valuation enterprise’s application for valuation practice registration for its valuers.

Additionally, the application must include a list of at least 10 sets of

valuation certificates and valuation result reports signed by a valuer in the previous year, except the following case: The valuer practicing for less than 06 months in the previous year; the valuer being in the list of valuers fully qualified to practice the valuation in the registration year as announced by the Ministry of Finance, etc.

The Ministry of Finance amends regulations on the time limit of achieving valuation dossiers.

Specifically, it shall be at least 10 (ten) years from the date of issuance of the valuation certificate.

According to the current regulations, such a time limit shall only be applied to paper valuation dossiers; electronic database shall be stored permanently.

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On 7 July 2021, the Ministry of Labor, Invalids and Social Affairs issued Circular No.06/2021/TT-BLDTBXH amending and supplementing a number of articles of the Circular No.59/2015/TTBLDTBXH which details and guides the implementation of a number of articles of the Law on Social Insurance on compulsory social insurance.

The Circular takes effect from 1 September 2021.

Specifically, from 1 January 2021, the conditions for employees to enjoy pension when working capacity decreases shall comply with the provisions of Article 55 of the Law on Social Insurance as amended and supplemented at Point b, Clause 1, Article 219 of the 2019 Labor Code.

The determination of the age threshold for calculating the years of early retirement to serve as a basis for calculating the reduction rate in their pension shall comply with Clause 3, Article 7 of the government’s Decree No. 135/2020/ND-CP.

products & services

Hu y en Trang

Stay home, stay SmartBanking To support customers to conduct financial transactions seamlessly given the complicated developments of the Covid-19 pandemic, BIDV introduces new convenient features of its SmartBanking and incentives.

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taying home is free: Free money transfer with B-Free. Customers can register for B-Free service packages on the BIDV SmartBanking app. With diverse packages, flexible limit change, users can enjoy free online money transfer, free account management, free domestic debit card issuance, free domestic debit card withdrawal at ATMs. Staying home is convenient: Paying electricity and water bills with just a few steps. Customers can make payments for electricity, water or other essential services with just a few steps in the "Payment" feature within BIDV SmartBanking.

Staying home is beneficial: During the complicated situation of the Covid-19 pandemic, making savings online with the ability to deposit/withdraw anytime anywhere is a smart choice to ensure safety. Customers are offered an additional 0.2 percent p.a compared to the interest rate listed at the counter.

Staying home is healthy: Shopping via BIDV SmartBanking and BIDV cards.

With the "VnShop Online Shopping" feature, customers can comfortably shop the whole world at home. This feature is user-friendly, safe, and highly secured. Especially, in August 2021, more attractive offers are about to come to encourage customers to shop online. Moreover, the BIDV Platinum Cashback card will bring the outside world closer to your home with cashback up to 6 percent for e-commerce or up to 10 percent for supermarket shopping.

Staying home is interesting: To bring more convenience and joy to customers, BIDV creates more attractive activities such as: “BIDV SmartBanking All-in Dance” for a more vibrant life at home and immersing yourself in the dances of professional dancers.

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Staying home is safe: As a prestigious and long-established financial institution, BIDV always ensures maximum safety and security for customers. The bank regularly updates and informs customers of forms of scams on its websites, Facebook, OTT, and Zalo messages to increase customer vigilance.

This September, BIDV adds more features to BIDV SmartBanking such as: Choose your account number online; online card opening and PIN change; online securities account opening; Card spending incentives, etc. With a series of features deployed on BIDV SmartBanking and attractive incentives, customers can find peace of mind when conducting digital transactions.

lifestyle

Vy Vy

Mid-Autumn Festival in Vietnam

In Vietnam, the Mid-Autumn Festival is a festival mainly for the Children. Various activities are held to celebrate the Mid-Autumn Festival in Vietnam. This year, due to the social distancing, the festival cannot be held. However, let’s find some information about this festival.

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ike many other Asian countries, the Mid-Autumn Festival in Vietnam is also a traditional event to celebrate the biggest fullmoon in the year. Mid-Autumn Festival is celebrated on the 15th day of the 8th month in the lunar calendar. It is also the time that annual summer harvest time ends, thus people call it an East Asian harvest festival. On this special day, all the members of the family gather and prepare various sweets, fruits and they also prepare colourful lanterns and wear many funny masks.

In the weeks before the festival, you will see and hear groups of lion dancers practicing on the streets.

Mooncake stalls appear on every other corner, pop-ups with elaborately decorated boxes filled with a variety of mystery cakes and fillings. City districts team up with preparations of toys, lanterns and colourful masks in anticipation. The most popular lantern is a star made with red cellophane.

You’ll see these lanterns for sale on streets all over Vietnam in the days leading up to the festival.

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All across Vietnam, families welcome the festival by placing a five-fruit tray and cakes on our ancestral altar.

They offer food to their ancestors and worship, before feasting on mooncakes - usually outside under the light of the moon. Round or square, these cakes are moulded with elaborate details of flowers, carp and geometric patterns.

The two most common types are banh deo (soft, sticky cakes with a mochitexture) and banh nuong (baked cakes with a thick wheat crust). Mooncakes in Vietnam come in a seemingly infinite variety of flavours, both sweet and savoury. Feel free to buy a box of mooncakes to enjoy yourself, or to share with your Vietnamese friends and hosts.

On the night of the full moon, children bearing brightly coloured lanterns

lifestyle

memorized since childhood. These lion dances are fascinating, and huge numbers of children, ranging from little kids to teenagers, participate in this activity. As a result of having so many groups of children marching around, the streets of the cities echo with the sound of drums, as dozens of lions roam about. With its gaping mouth and protruding eyes, the lion is both comical and formidable.

form raucous processions and tour their neighbourhoods singing songs.

You will see a male dancer wearing a round happy-face mask that symbolises the moon. He urges the lion dancers on and delights the crowd with his comical moves. This is the Earth God, who represents the fullness

of the earth and reminds onlookers to give thanks for its bounty.

Lion dancing is an essential element of the Mid-autumn festivities. Groups of children gather, each carrying a red lantern. Everyone sings along to the cheerful Mid-autumn Festival songs

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At night, groups of children parade through the streets, going from door to door and asking the owners for their permission to perform the lion dance.

If it is agreed then the children will put on a show, which is believed to bring luck and fortune. Afterward, the owners will give the children ‘lucky’ money for their gratitude.

CSR

Ti en Dat

BIDV continues donation for Covid-19 response Recently, BIDV has donated VND5 billion to support the prevention and control of the Covid-19 pandemic, in response to the special emulation program launched by the Party Committee of the Central Business Sector.

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ddressing the conference, Mr.Do Van Chien - Secretary of the Central Party Committee, Chairman of the Central Committee of the Vietnam Fatherland Front, Head of the Subcommittee on social mobilization and motivation under the National Steering Committee for Covid-19 prevention and control, said: The total amount of donation by businesses and units under the Central Business Sector will be used to support the people in the South to overcome the pandemic; welfare program; the Covid-19 Vaccine Fund as well as to support the frontline forces. Mr. Do Van Chien expressed his thank to the Standing Committee of the Central Business Sector Party Committee, party cells, officials, party members and employees under the Party Committee of the Central Business Sector, for their efforts and contributions to the country's pandemic prevention and control.

Mr.Nguyen Long Hai, alternate member of the Central Party Committee, Secretary of the Party Committee of the Central Business Sector, emphasized: With the spirit of "mutual

Mr. Phan Duc Tu, Secretary of BIDV's Party Committee, board chairman (left) represents the bank to donate to the Central Business Sector's program

love and affection", over the past time, businesses and units under the Central Business Sector have shared and accompanied the whole country on the prevention and control of the Covid-19 pandemic. From 2020 to the end of 14 September 2021, over VND8,682 billion has been donated to the Covid-19 Vaccine Fund. They also donated medical supplies and equipment for medical examination and treatment at health clinics and hospitals in provinces and cities heavily affected by the Covid-19 pandemic.

BIDV has actively provided direct support for Covid-19 prevention and

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control activities nationwide. At the special emulation program launched by the Central Committee of the Vietnam Fatherland Front, BIDV continued to donate VND5 billion for Covid-19 response. Earlier, BIDV sent donation of VND60 billion to the Covid-19 Vaccine Fund; provided emergency support for localities, hospitals and medical facilities as well as providing equipment and necessities for frontline forces. Over the past 2 years since the outbreak of the Covid-19 pandemic in Vietnam, BIDV has donated more than VND250 billion for the country’s response to the pandemics.