BIDV Review 77 - November 2021

A Newsletter of Bank for Investment and Development of Vietnam JSC • Issue No.77 | November 2021

BIDV IT: 30 years and looking forward

BIDV and Samsung Vietnam connect values for growth download Bidv review

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, have the best digital platform in Vietnam, and be among Top 100 largest banks in Asia.

To deliver the best interests and conveniences 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, IDV had a vigorous November with a series of events. On 5 November, BIDV and Vietnam Post Corporation signed a comprehensive cooperation agreement. Under the agreement, BIDV and Vietnam Post will bolster cooperation; optimally exploit the strengths and potentials of each party. The cooperation between two large enterprises in the fields of banking and postal affirms the efforts of Vietnamese enterprises to recover, make breakthroughs, and develop sustainably, contributing to promoting the prosperity of the national economy.

On 16 November, BIDV and Samsung Vietnam Complex met in Hanoi. Sharing similarities, BIDV and Samsung Vietnam Complex look forward to opening up opportunities for effective cooperation, contributing more to the economy and community, and promoting the friendship relations between Vietnam and Korea. BIDV is currently serving about 1,000 Korean FDI enterprises with a partnership scale of USD1 billion.

BIDV and Goldwind International Vietnam Co., Ltd signed a Memorandum of Understanding (MOU). The MOU lays a solid foundation for the two to carry out business cooperation activities, towards the goal of becoming comprehensive strategic partners.

IT operations at BIDV have made strong and continuous growth, playing an important and decisive role in BIDV's development strategy.

Over the past 30 years, the IT team has grown continuously and taken on deploying large and complex IT solutions/systems under international standards. BIDV’s development

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strategy has set Technology and Digital banking as one of the three development pillars of BIDV. It has been two years since BIDV and Hana Bank entered into a strategic alliance. The partnership has achieved remarkable achievements thanks to the efforts of the two. BIDV and Hana Bank held a two-year review ceremony - an opportunity for the leaders of the two sides, the dispatched personnel and representatives of BIDV units to look back on the milestones in the cooperation.

Vietnam Russia Joint Venture Bank (VRB) – a subsidiary of BIDV celebrated its 15th anniversary. With a mission of becoming a symbol of effective and comprehensive cooperation between Vietnam and the Russian Federation, after 15 years of establishment and development, VRB has transformed strongly, acting as a bridge to promote economic, trade and investment cooperation between the two countries.

According to the e-Conomy SEA 2021 Report, Vietnam has seen 8 million new digital consumers since the start of the pandemic, with 55 percent of them coming from non-metro areas. The Vietnamese internet economy growth will see an increase of 31 percent this year over the same period last year, reaching USD21 billion.

Supply chain finance remains new and limited in Vietnam. According to Mr. Can Van Luc chief economist and head of BIDV Training and Research Institute, thanks to new-generation free trade agreements, Vietnamese businesses have the opportunity to access new markets as well as participate more deeply in the global value chain.

Supply chain finance, therefore, has huge growth potential.

contents

PARTNERS

BIDV HIGHLIGHTS

03. BIDV and Samsung Vietnam connect values for growth

18. VRB: 15 years a symbol of effective cooperation

04. BIDV and Vietnam Post bolster comprehensive cooperation 06. BIDV IT: 30 years and looking forward

POLICY UPDATE

20. New regulation on buying and selling corporate bonds 21. Resolution to support enterprises and people affected by Covid-19

08. Celebrating 2 years of strategic alliance with Hana 10. BIDV inks MOU with Goldwind Group

PRODUCTS & SERVICES

INSIGHTS

11. Vietnam’s internet economy to reach USD21 billion this year 12. Supply chain finance boasts great potential for growth 14. Fintech sandbox in banking sector

22. Account number of your choice on BIDV SmartBanking 23. Enjoy international money transfer offers with BIDV LIFESTYLE

24. Binh Lieu, an untouched pearl

26. Rural beauty amid the clouds

MARKET MOVEMENTS

16. Push back “black credit” in Vietnam 17. Strengthening measures to prevent online frauds

CSR

28. BIDV holds online photo contest “Warm Tet for the poor”

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BIDV Highlights

Duong Nguye n

BIDV and Samsung Vietnam connect values for growth Mr. Choi Joo Ho - General Director of Samsung Vietnam Complex expressed his thanks to BIDV's leadership for the meeting. Currently, BIDV is cooperating with many businesses that are suppliers and distributors of Samsung and he hopes that the transaction between the parties will continue to flourish in the future.

Sharing similarities, through the meeting, BIDV and Samsung Vietnam Complex look forward to opening up opportunities for effective cooperation in their operating fields in compliance with the law, contributing more to the economy and community, and promoting the friendship relations between Vietnam and Korea.

Senior leaders of BIDV and Samsung Vietnam Complex in a family photo at the meeting in November in Hanoi

On 16 November 2021 at the headquarters of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), senior leaders of BIDV and Samsung Vietnam Complex met and discussed opportunities for effective cooperation in the future.

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r. Phan Duc Tu - Chairman of BIDV's Board of Directors congratulated the great achievements of Samsung Group over the years. According to Mr. Tu, as the oldest and largest commercial bank in Vietnam in terms of total assets (over USD73 billion as of 30 September 2021), and with the support from its strategic shareholder Hana Bank, in its development strategy to 2025 with a vision to 2030, BIDV sets the goal of strengthening extensive and close integration and cooperation with FDI enterprises, especially Korean ones.

BIDV and Samsung can cooperate in the fields where the two sides have potentials and strengths. At the same time, with the business philosophy for the community and society, the two sides can cooperate in social security programs, demonstrating the responsibility of the two leading enterprises of the two countries.

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BIDV is currently serving about 1,000 Korean FDI enterprises with a partnership scale of USD1 billion.

BIDV provides direct support to FDI enterprises ranging from studying investment activities into Vietnam, consulting on the legal environment, business environment, and to developing tailor-made products and services to meet the needs of FDI enterprises.

Samsung's official investment in Vietnam is marked by the construction of a mobile phone factory in Bac Ninh province in 2008. After 13 years of operation in Vietnam, Samsung is now the largest foreign investor in Vietnam with a total investment of up to USD17.5 billion with six factories and a research and development center.

BIDV Highlights

M inh Nam

BIDV and Vietnam Post bolster comprehensive cooperation sustainably, contributing to promoting the prosperity of the national economy.

Specifically, BIDV and Vietnam Post cooperate to deploy services such as collection and payment, financial document services, account services, salary payment services via BIDV accounts, payment intermediary products and services, in order to bring outstanding quality and superior experience to customers.

Mr. Le Ngoc Lam, CEO of BIDV (left) and Mr. Chu Quang Hao, CEO of Vietnam Post shake hands at the signing ceremony

BIDV and Vietnam Post cooperate to deploy payment intermediary products and services to bring outstanding quality and superior experience to customers.

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n 5 November 2021 in Hanoi, BIDV and Vietnam Post Corporation (Vietnam Post) signed a comprehensive cooperation agreement. Under the cooperation agreement, BIDV and Vietnam Post will bolster cooperation, optimally exploit the strengths and potentials of each party in accordance with provisions of law. In particular, in the context of the volatile market due to the serious impacts of the Covid-19 pandemic, the cooperation between two large enterprises in the fields of banking and postal affirms the efforts of Vietnamese enterprises to recover, make breakthroughs, and develop

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BIDV is committed to providing the most preeminent and modern banking and financial services, business consulting activities for Vietnam Post, facilitating production and business activities. BIDV will prioritize to use products and services provided by Vietnam Post and its member units with specific service quality and policies in line with BIDV's requirements.

The two sides are committed to cooperating, taking advantage of each other's network infrastructure to create new and useful products for society. BIDV is committed to offering Vietnam Post preferential cooperation policies when implementing licensed payment intermediary services (including e-wallet services, payment bank, sponsoring bank, e-payment gateways, collection and payment, electronic money transfer) and derivative services which are developed

BIDV Highlights

on the basis of payment intermediary services in line with Vietnam Post’s demand.

At the signing ceremony, Mr. Phan Duc Tu - Chairman of BIDV's Board of Directors and Mr. Nguyen Hai Thanh - Chairman of Vietnam Post believed that, with a long history, large networks, number of staff and mutual cooperation, the two sides will maximize their strengths and diverse ecosystems to provide the best services to customers, aiming for sustainable development in the digital era. Vietnam Post can take advantage of BIDV's technological resources, and BIDV can also take advantage of Vietnam Post’s nationwide network of service points which are rolled out to villages, communes and islands, especially in areas that are difficult to access financial and banking services.

The signing of the comprehensive cooperation agreement affirms the strategic cooperation relationship between BIDV and Vietnam Post, demonstrating the determination to successfully implement the digital transformation strategy of both parties. This helps create favorable conditions and opportunities for people to access basic financial services and modern banking services, contributing to the realization of the objectives of the national financial inclusion strategy.

With a history of more than 64 years of establishment and development, BIDV has become the largest commercial bank in Vietnam in terms of total assets. As of 30 September 2021, BIDV’s total assets reached VND1.68 quadrillion (USD74 billion). BIDV’s operations cover banking, insurance, securities and financial investment with a network of nearly 1,100 transaction points and commercial presences in 6 countries and territories. BIDV is serving over 12 million customers, establishing partnerships with 2,300 financial institutions globally. For years, BIDV has been in the list of Top 2,000 largest companies in the world (Forbes); Top 300 most valuable banking brands globally (Brand Finance), Top 10 largest enterprises in Vietnam, Best retail bank in Vietnam for the sixth time (The Asian Banker); Best SME Bank in Vietnam for 4 consecutive years (The Asian Banking & Finance) and many other prestigious awards.

Vietnam Post is the sole enterprise in Vietnam assigned by the State to provide public postal services nationwide and to conduct postal exchanges with all countries in the world. In addition, with a wide network of 13,000 service points, nearly 70,000 employees, and experience in implementing postal financial services, developing technological platforms for payment intermediaries, Vietnam Post is set to deeply involve in providing digital financial services, contributing to changing customers' payment methods and habits, contributing to the comprehensive financial system.

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BIDV Highlights

M inh Anh

BIDV IT: 30 years and looking forward For 30 years of establishment and development, IT operations at BIDV have made strong and continuous growth, playing an important and decisive role in BIDV's development strategy.

From zero Starting from zero, in July 1991 BIDV established a computerization team of 3 staff and 2 computers. To date, the IT & Digital Banking Group has 5 units (IT Center, Technology Department, Digital Banking Center, Business Analysis and Centralized Data Management Center, and Corebanking Project Management Department) which comprehensively manage all IT activities at BIDV. The staff force of the group is over 700 who are well-trained, highly qualified and dedicated. The IT infrastructure system is equipped with thousands of specialized servers, tens of thousands of personal computers and IT equipment. The main data processing center and disaster response center are modernized under international standards. BIDV’s application system includes about 180 software serving all activities at BIDV. Over the past 30 years, the IT team have grown continuously and taken on deploying large and complex IT solutions/systems under international standards such as payment software, Corebanking....

IT has impacted all aspects of the bank's activities, and changed the perception and habit of staff about IT application in banking activities as well as changing organizational model of the Head Office and Branches.

Hundreds of products and services

with high IT content developed and deployed by the IT and Digital Banking group have helped BIDV attract more than 12.7 million customers, contributing to the bank’s business performance over the years.

To frontline force BIDV's business development strategy for the period 2021-2025, with a vision to 2030, has set the vision to become a financial institution with the best digital platform in Vietnam and Technology and Digital banking are one of the three development pillars of BIDV. To achieve the goals and vision of the strategy, the IT & Digital Banking group defines a new role and mission:

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to play an important and decisive role in BIDV's development strategy, be pioneering, make breakthrough in developing products for the market, and be a competitive strength of BIDV. BIDV has clearly identified key solutions that need to be implemented to promote the application of IT and implementation of digital transformation for making breakthroughs and solid development, promoting business activities and competitiveness, particularly: Firstly, develop and implement the IT development strategy to 2030 to ensure that it meets the requirements of BIDV's business development strategy to 2025, with a vision to 2030.

BIDV Highlights

“We understand that without a team of IT staff who are highly skilled, professional, tech-savvy and have a strong desire for contribution, BIDV would not exist. It is the responsibility of the leadership to nurture this team.”

Mr. Phan Duc Tu, chairman of the Board of Directors, BIDV.

Secondly, build and deploy an overall IT architecture (including business architecture, application architecture, data architecture, and technology architecture) in the open form (Open API, Microservice, etc.), flexibly supporting the development of the open banking model, ensuring the close connection between IT and professional and business requirements.

Thirdly, complete the transformation of the new generation Corebanking system, develop new IT applications and solutions such as AI, Big data, cloud computing, blockchain, Robotics, eKYC, IoT) for business development.

At the same time, resources should be utilized for successfully implementing BIDV's digital transformation strategy

for the period of 2021 - 2025, with a vision to 2030.

systems, digital transaction channels and data distribution.

Fourthly, build an ecosystem of banking and financial services, develop and integrate distribution channels to facilitate customers to access and connect with the bank; innovate, prioritize the development of innovative and competitive products and services based on the application of scientific and technological achievements;

Last but not least, consolidate and nurture IT personnel, with a focus on training and developing a team of elite experts in all fields of IT.

Fifthly, build, develop and strengthen the IT infrastructure capacity, use new technology to bolster the system's processing capacity, adapt and be ready to meet requirements for support and business activities; build, manage and operate IT infrastructure according to international IT standards such as Cobit, ITIL. Sixthly, deploy security solutions, ensuring the ability to monitor, detect and warn early, proactively handle IT risks, paying special attention to ensuring the safety of payment

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BIDV’s IT has been honored by the State, the Government and the State Bank of Vietnam for its achievements and significant contribution such as Labor Medal (third class) to IT Center, Certificate of Merit for Technology Department, ranking No. 1 in terms of readiness for IT application among Vietnamese commercial banks (Vietnam ICT Index) for 13 consecutive years; winning 23 Sao Khue awards for IT applications and products, honored by Asian Banking & Finance Magazine (ABF) as Domestic Technology and Operations Bank of the Year for 4 consecutive years (2015-2018); Outstanding Digital Transformation Bank Award 2020 by IDG, among others.

BIDV Highlights

Dieu Th uy

Celebrating 2 years of strategic alliance with Hana It has been two years since BIDV and Hana Bank entered into a strategic alliance.

The partnership has earned remarkable achievements thanks to the efforts of the two.

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n 11 November 2021 BIDV and Hana Bank held a twoyear review ceremony of the strategic alliance. The program was an opportunity for the leaders of the two sides, the dispatched personnel and representatives of BIDV units to look back on the milestones in the cooperation journey.

Extensive cooperation Under the close direction of the leadership of BIDV and Hana Bank, the strategic cooperation between the two banks has become more and more extensive in many fields, achieving positive changes, especially in the context of the Covid-19 pandemic, which entailed many difficulties and challenges. Through two years of cooperation, with the efforts of units across BIDV’s system and the active coordination of the dispatched people from Hana, technical assistance

projects have increased in both size and quality (41 projects in 2021 compared to 26 in 2020), spanning across all 6 fields of technical assistance.

Specifically, in the field of retail banking development, the two sides have cooperated to develop a private banking service project and established a private banking center; deployed personal international money transfer service between Hana Bank and BIDV, piloting quick loan product for payroll customers.

In the field of risk management, BIDV and Hana Bank have cooperated to develop a set of criteria to identify high-risk/prone industries; taking the first steps into the expert assessment method to build a model to calculate the default probability of financial institution clients; developed and issued a credit supervision process at BIDV. Regarding profit portfolio diversification, Hana Bank has advised and supported BIDV to build 14 groups of key solutions to increase demand deposits in the 2021-2025 period, developed and piloted a supplier financing product (e-ARC loan), participated in extending syndicated credit, established credit relationships,

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and issue preferential policies and packages for Korean customers.

In the field of information technology and digital transformation, Hana Bank has been advising and supporting BIDV on digitalization strategy and building a new Corebanking system. BIDV has completed testing and piloting SmartBanking, officially launched account opening with a virtual card using eKYC, successfully deployed ERP connection service, completed and approved the medium-term information technology plan for the 2021-2023 period.

For the improvement of management and capability of the organizational model, BIDV is still continuing to exchange, learn experience and consult with Hana Bank in finalizing the report on reviewing the organizational model according to TA2 and proposing an organizational model for the period 2021-2025, which includes restructuring the organizational model of the Wholesale Banking Group and solutions to improve the operational efficiency of the network of transaction offices.

Regarding human resources training and development, the two sides have successfully organized nearly 40 seminars in many fields with the

BIDV Highlights

BIDV leadership and Hana’s secondees pose for a family photo at the 2nd anniversary cerebration of the strategic alliance

participation of senior leaders from both sides. The dispatched people participated in teaching in a number of programs such as Future bankers, private customer managers... BIDV and Hana have also built a program to send BIDV staff to study and work at Hana Bank, which is expected to be implemented in 2022.

Addressing the ceremony, Mr. Le Ngoc Lam, BIDV's Chief Executive Officer, emphasized: "Two years is not a long time, but enough for all of us to feel the changes in BIDV's operations after cooperating with Hana Bank. These are positive changes in terms of scale, structure, quality, and efficiency of BIDV over the past time. In particular, the cooperation between the two sides does not stop only at capital support but covers technical assistance projects of a strategic alliance.

Spiritual and cultural exchange Not only seeking opportunities and sharing achievements in business, the cooperation between BIDV and Hana Bank also provides an opportunity

for cultural exchanges between the two banks of two nations that share cultural similarities. With the attention and support of the leadership of both sides, a series of events that help connect the dispatched people with BIDV's community were organized such as visiting the dispatched people's families during the Chuseok and Lunar New Year celebrations, the dispatched people’s participation in the Warm Tet run for the poor held by BIDV, etc.

In the context of the Covid-19 pandemic with challenges, the strong relationship between the two banks and the two countries in general is further strengthened through activities such as Hana Bank making a donation to the Vaccine Fund for Prevention and Control Covid-19 of the Central Committee of the Vietnam Fatherland Front, BIDV organizing the vaccination against Covid-19 for the dispatched people and their relatives.

Additionally, in 2021 BIDV - Hana Bank cooperation activities and Korean culture have been widely

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communicated to BIDV staff through stories and information on Dau tu Phat trien Newsletter, BIDV Review, intranet and Strategic Cooperation Newsletter.

At the two-year celebration ceremony, on behalf of the dispatched people, Mr. Yoo Jae Bong – a Member of the Board of Directors of BIDV, expressed his gratitude to BIDV’s leadership and all staffs for always remembering the Traditional Day of Hana Bank. He emphasized that all of the dispatched people when coming to work at BIDV, have a high determination to fulfill their mission and give the best support for the development of BIDV. With the motto "Long-lasting friendship – Growing together", BIDV and Hana Bank have become companions to share a dream. The leadership and all staffs of BIDV and Hana Bank are always united and determined to bolster the strategic alliance.

BIDV Highlights

Ban Hie n

BIDV inks MOU with Goldwind Group products and services to its purchasing partners, creating favorable conditions for BIDV to introduce its products and services at Goldwind’s events.

Mr. Wang Hai - Deputy General Director of Xinjiang Goldwind Science and Technology Co., Ltd - the owner of Goldwind International Vietnam Co., Ltd – expressed sincere thanks to BIDV for promoting the cooperation and believed the efforts of the two sides will make a significant contribution to the development of renewable energy in Vietnam.

Representatives of BIDV and Goldwind Vietnam sign the MOU in Hanoi

Recently, in Hanoi, BIDV and Goldwind International Vietnam Co., Ltd signed a Memorandum of Understanding (MOU) which marks an important milestone in the cooperative relationship between the two sides.

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he MOU lays a solid foundation for the two to carry out business cooperation activities, towards the goal of becoming comprehensive strategic partners. The two sides will jointly promote their strengths and take advantage of market opportunities to exploit their best potential, promote growth, diversify operations, and improve business efficiency and competitiveness in the market.

Accordingly, BIDV will provide banking and financial services that meet Goldwind's current operations as well as its future projects. The bank also combines its products and services with Goldwind's preferential financial policies to provide comprehensive financial packages to partners referred

by Goldwind, and introduce Goldwind's projects to customers. For Goldwind, the company will introduce BIDV's

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Mr. Tran Long - BIDV's Senior Executive Vice President - affirmed: BIDV is fully experienced and capable to accompany Goldwind Group's long-term development goals in Vietnam. BIDV will join Goldwind to implement projects in compliance with the provisions of Vietnamese law, implement clean and sustainable development in projects where Goldwind is the developer/equipment supplier.

Xinjiang Goldwind Science and Technology Co., Ltd boasts more than 36 years in the fields of wind turbine research and production. The group has delivered and installed wind turbines in 30 countries and territories globally with a total capacity of 70GW. Starting marketing in Vietnam in 2018, to date Goldwind has signed contracts on supplying wind turbines for projects in Vietnam with a total capacity of 1.2GW and is expected to become one of the leading wind turbine suppliers in Vietnam.

Insights

Hu y en Trang

Vietnam’s internet economy to reach USD21 billion this year The Vietnamese internet economy growth will see an increase of 31 percent this year over the same period last year, reaching USD21 billion.

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ccording to the e-Conomy SEA 2021 Report recently published

by Temasek, Google and Bain & Company, Vietnam has seen 8 million new digital consumers since the start of the pandemic (up to H1 2021), with 55 percent of them coming from nonmetro areas.

Stickiness of adoption remains high as digital consumption has become a way of life - 97 percent of the new consumers are still using the services and 99 percent intend to continue going forward. Pre-pandemic users those who used the services before the pandemic - have consumed an average of 4 more services since the pandemic, and amongst all users, satisfaction with the services sit at 83 percent across verticals.

Overall, most internet sectors continued to grow strongly with double-digit YoY growth. Vietnam’s 2021 GMV is expected to reach a total value of USD21 billion – a 31 percent YoY surge. This increase is underpinned by a 53 percent growth in e-commerce, despite the shrinking online travel market due to ongoing travel restrictions. Looking at 2025, the overall internet economy will likely reach USD57 billion in value, growing

at 29 percent CAGR. In Vietnam, 30 percent of digital merchants believe that they would not have survived the pandemic if not for digital platforms. While digital merchants use an average of two digital platforms, profitability remains a top concern. Digital financial services are also becoming critical enablers, with 99 percent of digital merchants now accepting digital payments and 72 percent having adopted digital lending solutions. Many are also embracing digital tools to engage with their customers, with 72 percent expecting to increase usage of digital marketing tools in the next five years.

The report also assesses that Vietnam remains an attractive innovation hub as global capital continues to pour in.

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Deal activity skyrocketed in the first half of 2021, already surpassing full year investments of recent years.

Vietnam remains a very attractive innovation hub with more incubators, accelerators and innovation labs than most other markets in the region.

Despite market uncertainty, global capital continues to pour into the country given its strong growth fundamentals and growing digital ecosystem. Investment appetite remains strong in digital services that surged as a result of COVID-19, such as e-commerce, fintech, healthtech and edtech.

As for Southeast Asia, the report highlights that the region is on track to become a GMV worth USD1 trillion internet economy by 2030.

Insights

Tha nh Tu

Supply chain finance boasts great potential for growth to access new markets as well as participate more deeply in the global value chain. Supply chain finance, therefore, has huge growth potential, and BIDV - the leading financial institution in Vietnam - should not ignore this market.

Mr. Can Van Luc, chief economist, BIDV

Supply chain finance remains new and limited in Vietnam.

A seminar on promoting the sale of supply chain financing (SCF) products held by BIDV on 5 November 2021 received interesting sharing on SCF problems and solutions.

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ccording to Mr. Can Van Luc - chief economist and head of BIDV Training and Research Institute, Vietnam is an economy heavily dependent on trade, with a total import-export turnover of USD543 billion in 2020 (equivalent to 156 percent of the country’s GDP in 2020). Thanks to new-generation free trade agreements, Vietnamese businesses have the opportunity

Supply chain finance can be understood as financial products that are provided to buyers or sellers in a supply chain, in order to optimize cash flow, minimize financial costs, mitigate risks and improve business efficiency.

Some prominent products include receivables discounting (receivables discounting, factoring, payables financing, etc.) and commoditybacked financing (receivables-backed loan, distributor financing, inventory financing, pre-shipment financing).

Given the development of global trade, supply chain financing achieved a good growth rate (about 5 percent annually in the period 2009-2017). However, the potential of this activity in the world is still quite large. Currently, small and medium-sized enterprises participating in the supply chain in most regions are experiencing financial shortages (about USD4.7 trillion). Trade finance is also short of USD1.1 trillion or 10 percent of the turnover.

SCF remains new and limited in Vietnam. KPMG estimated the potential of the SCF market in Vietnam at USD50 billion by 2021, but only a small part of this has been exploited. In 2020, more than 800,000 micro, small and mediumsized enterprises were registered to

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operate in Vietnam, equivalent to 98.1 percent of the total number of operating enterprises, accounting for 50 percent of Vietnam's GDP. In Vietnam, despite the Covid-19 pandemic, the economy has shown

Insights

accounts for about 0.03 percent of the world). This is a good opportunity for BIDV to strongly develop these products in the coming time.

However, for successful implementation of this service, BIDV in particular as well as other banks in Vietnam will face many challenges.

Firstly, for a supply chain that often covers many countries, multinational banks (HSBC, Citibank...) will dominate over domestic banks. Secondly, the legal framework for this activity has shortcomings (such as not allowing the implementation of factoring activities, discounting without recourse). In addition, there are other issues such as requirements on a complete supply chain financing platform; appropriate internal policies, etc.

signs of recovery, especially in terms of trade. While global trade recorded a growth of 9.7 percent, Vietnam was one of the countries with good trade growth of 22 percent in 2020. However, the lack of working capital and banking services that finance transactions such

as supply chain financing has partly affected the ability to receive large orders or develop new relationships with partners in the value chain. The situation is due to the scale of supply chain financing activities in Vietnam is too small (factoring in Vietnam only

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To improve supply chain financing activities in the coming time, it is recommended that regulators soon finalize the legal corridor for this activity. Particularly, amending the Law on Credit Institutions with a broader, more complete definition of supply chain financing should be considered; and the implementation of without recourse services should be allowed. BIDV also needs to soon complete the SCF platform system to launch related products and services.

A communication plan to promote the product and its benefits should also be put in place.

Insights

Ngo c Nguye n

Fintech sandbox in banking sector Sandbox is used to create experimental legal frameworks for innovative new products, services or business models for which the current legal framework has not yet regulated or has some shortcomings.

An experimental legal framework It was not until 2016 that the world saw the creation of the first regulatory sandboxes—frameworks set up by regulators that allow fintech startups to conduct live experiments in a controlled environment under a regulator’s supervision. In only four years, sandboxes have become synonymous with fintech innovation, offering the unique benefit of providing the empirical evidence needed to substantiate decisions in the field.

According to the World Bank, sandboxes are usually classified into four types, based on their objectives: (i) policy-focused; (ii) product or innovation focused; (iii) thematic; and (iv) cross-border. These categories are not mutually exclusive, however.

Policy-focused sandboxes: These sandboxes use the sandbox process to evaluate particular regulations or policies.

Innovation- or product-focused sandboxes: These sandboxes encourage innovation by lowering the cost of entering the regulated marketplace, allowing firms to test the market viability of new business models.

Thematic sandboxes: Sandboxes of this type focus on a precise theme with the objective of accelerating adoption of a specific policy or innovation or supporting development of a particular subsector or even of specific products aimed at particular population segments.

Cross-border sandboxes: Cross-border or multijurisdictional sandboxes support firms’ cross-border movement and operations while encouraging regulator cooperation and reducing arbitrage.

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Objectives for these sandboxes include improving cross-border regulatory harmonization and fintech firms’ ability to scale more rapidly on a regional or global basis.

In fact, a multiplicity of actors across the innovation ecosystem take part in the regulatory sandboxes, including: Innovators and knowledge providers: This group includes people with innovative products, technologies, services or business models who want to test them in a sandbox. They can be

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Consumers: As regulatory sandboxes operate in real-life environments, provisions for the participation of consumers who opt-in or are informed that the product or service they are using is being tested in a sandbox.

Global application Many countries around the world have successfully applied regulatory sandboxes. In November 2017, the US Federal Aviation Administration released a regulatory sandbox to test unmanned aerial vehicles for a period of 3 years. With data and experimental evidence collected from the program, the Federal Aviation Administration and the US Department of Transportation have come up with new regulations regarding unmanned aerial vehicles, especially those relating to security and privacy.

organizations, companies of all sizes, those already entering the market, startups, startups or new market entrants.

Regulators and other government bodies: They develop the regulatory sandboxes, monitor, advise, supervise and evaluate the experimental activities in the regulatory sandbox and make recommendations to amend and supplement policies and regulations based on the results of the sandbox activities.

On 18 October 2016, the central bank of Malaysia (Bank Negara Malaysia) launched a fintech sandbox framework in the financial services sector. Malaysia's regulatory sandbox eligibility requirements cover financial inclusion goals. In 2018, the Malaysian Ministry of Finance launched national regulatory sandboxes in the fields of: agriculture, biotechnology, construction, education, energy, finance, food, green technology, healthcare, smart cities, sports, telecommunications, transportation, tourism, water management, and waste management. In 2020, the Ministry of Science, Technology and Innovation of Malaysia launched a national innovation and technology regulatory sandbox in the fields of medical technology, manufacturing, agriculture, education and tourism.

In 2017, the Bank of Thailand launched a regulatory sandbox with a key focus

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on fintech and fintech developers, including financial and non-financial institutions. That same year, the Office of the Insurance Commission of Thailand (OIC) launched a Thai Insurtech regulatory sandbox with a key focus on developing digital insurance solutions in the country.

Sandbox banking On 6 September 2021, the Government issued Resolution No.100/NQ-CP approving the proposal to formulate a Decree on a fintech regulatory sandbox in the banking sector. In October 2021, the State Bank of Vietnam sought for opinions from units/organizations on the draft Decree on regulatory sandboxes and is expected to submit to the Government for promulgation in the fourth quarter of 2021.

Under the draft Decree, the subjects licensed to participate in the regulatory sandboxes are credit institutions and fintech companies. Fintech solutions in the banking sector that are allowed to participate in regulatory sandboxes will include new services such as: Credit extension based on technology platforms; Credit scoring; Sharing data via application programming interfaces (APIs); Peer-to-peer lending (P2P); Applying blockchain technology, distributed ledger technology in banking activities; Applying other digital technologies to support banking operations…

The Decree on regulatory sandboxes is expected to boost financial technology to grow strong, bring great opportunity for credit institutions and fintech companies to be ready to participate in regulatory sandboxes. It also poses challenges to those who start late or stay out of the development trend.

market movements

Thu Lan

Push back “black credit” in Vietnam measures to improve the communication activities to raise people's awareness about lending mechanisms, policies, and banking services.

"Black credit" has developed complicatedly and affected social security and order. A workshop on pushing back black credit and promoting the official credit channel discussed solutions to addressing this problem.

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peaking at the workshop, Mr. Dao Minh Tu - the Standing Deputy Governor of the State Bank of Vietnam shared that the formulation of the legal regulations against “black credit” activities has achieved positive results, helping to strengthen the state management. Credit institutions have diversified their approach to expanding and improving credit quality through close coordination with local authorities, social and political organizations.

Credit for the economy, especially for vulnerable subjects who may be victims of "black credit", has been maintained at a relatively high growth rate. The banking sector has made strong efforts to expand the networks to provide timely banking products and services, with a focus on measures to enhance the accessibility to bank loans, promptly supporting Covid-19-affected customers.

Since 2019, the SBV has promulgated 85 legal documents, including amendments to existing legal documents, as well as new legal regulations to enhance the accessibility to official credit channels.

To develop the banking networks, since 2019, the SBV has licensed the establishment of 29 new branches and representative offices of the credit institutions. So far, Vietnam's banking system has 124 credit institutions and nearly 1,200 people’s credit funds.

The central bank has also conducted

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According to the State Bank, by the end of October 2021, the credit balance of the whole economy had reached more than VND9.99 quadrillion (USD436 billion), an increase of 8.72 percent compared to the end of 2020 - a remarkable result in the context of the Covid-19 pandemic. Notably, credit institutions boosted lending for life needs and consumer loans. 78 credit institutions participated in providing personal loans with outstanding loans of nearly VND1.95 quadrillion (USD85.2 billion), accounting for 19.6 percent of the total loans of the whole economy, and up 5 percent compared to the end of 2020.

Mr. Le Ngoc Lam, chief executive officer of BIDV, shared: BIDV has continuously implemented measures in accordance with the policy of the Government and the State Bank to push back black credit, and support people to access bank loans, especially during the Covid-19 pandemic. BIDV has boosted retail banking with retail loans increasing from VND38 trillion (USD1.7 billion) in 2011 to VND496 trillion (USD21.7 billion) as of 31 October 2021 (accounting for 38 percent of total outstanding loans of BIDV) – a 12-time growth over the past 10 years.

market movements

Ha i Anh

Strengthening measures to prevent online frauds ensuring that customer information is appropriate and matches the information recorded in the current account documents.

For those that open a current account via electronic Know Your Customer (eKYC), they must comply with regulations on opening a current account.

Secondly, for the re-verification of customer identification information in case of change of transaction equipment, units should deploy technical and technological measures to verify the customer's identity via eKYC soonest, ensuring that the customer is the very owner of the current account.

The State Bank of Vietnam (SBV) has just issued official dispatch No 7611/NHNN-TT to payment service providers on strengthening measures to ensure security and safety of payment activities.

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ccording to SBV, through monitoring and supervising payment activities, the central bank has noticed that high-tech crimes have recently emerged, in which fake SMS messages (SMS branding name) are sent to trick customers into accessing and transacting at fake bank websites set up by scammers.

The purpose and tricks of the scammers are that after stealing login

information (username, password) and one-time password (OTP), they will use this secret information in combination with changing methods, OTP-receiving devices to perform fake transactions, appropriating money in the customers’ accounts.

To prevent and reduce the risk of fraud in the provision and use of payment services, the State Bank requests payment service providers proactively take measures to ensure security and safety for payment activities, particularly: Firstly, for customer information verification when performing transactions, units should develop a roadmap and implementation plan in accordance with their capacity conditions, and customer verification and identification measures;

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Thirdly, the units continue to strictly follow the instructions and directions of the State Bank on strengthening measures to ensure security and safety in the provision of payment service according to Official Dispatch No. 4347/NHNN -TT dated 17 June 2021 and solutions to protect customers using online banking services as in Official Dispatch 376/NHNN-TT dated 25 March 2021.

BIDV has regularly warned of tricks used by scammers to steal personal information and transaction information to withdraw money.

The scammers can impersonate the authorities, bank staff and e-wallet employees to call and ask customers to provide personal or transaction information to appropriate customers' information and money.

partners

Bich Ngoc

VRB: 15 years a symbol of effective cooperation

VRB leadership receives emulation flag from BIDV at the bank's 15th anniversary ceremony

With the mission of becoming a symbol of effective and comprehensive cooperation between Vietnam and the Russian Federation, after 15 years of establishment and development, Vietnam Russia Joint Venture Bank (VRB) has transformed strongly, acting as a bridge to promote economic, trade and investment cooperation between the two countries.

A symbol of cooperation VRB was launched on 19 November 2006 in Hanoi under the presence of high-ranking leaders of the two countries, expressing the goodwill of

the Government and the central banks of the two countries in promoting bilateral cooperation to new heights.

The bank’s shareholding structure includes the Bank for Investment and Development of Vietnam (BIDV) and Bank for Foreign Trade of Russia (VTB), with an initial charter capital of USD10 million. VRB was expected to become a bridge that provides financial and banking services to support cooperation in the fields of trade and investment, and a symbol of effective and comprehensive cooperation between the two countries.

In the post-global economic and financial crisis at the end-2011, VRB's business activities faced great difficulties. Especially since 2014, VRB has faced difficulties due to the embargo imposed by the US and Western countries on the Russian Federation and related entities. Such embargos have been impacting VRB's activities in the current period. With

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the comprehensive support from BIDV in terms of mobilized capital, profitable asset portfolio, bad debt settlement, and governance capacity improvement, VRB has focused on implementing comprehensive restructuring to overcome the crisis.

At the end of the restructuring period, VRB was lauded by the State Bank of Vietnam as one of the few banks that basically fulfilled the objectives set out in the restructuring period. In 2016, VRB launched a bilateral payment system between Vietnam and the Russian Federation, marking an important milestone of efforts in developing a local currency payment channel between the two countries, serving payment, economic and trade cooperation activities between the two countries.

In the period of 2017-2021, with the determination to "promote the spirit of self-reliance, change for development", VRB actively reduced its dependence on the parent bank BIDV, and implemented a sustainable development strategy. With relentless efforts, VRB achieved remarkable results at the end of the period, particularly:

partners

in six major cities including Hanoi, Ho Chi Minh City, Da Nang, Vung Tau, Khanh Hoa and Hai Phong.

Business performance has improved over the years. In 2018, VRB offset all accumulated losses, meeting the requirements on charter capital; the capital adequacy ratio (CAR) was at a high level of over 20 percent. VRB paid dividends in two fiscal years 2019 and 2020.

Total assets were expanded to VND21,500 billion (USD947 million), an increase of 1.6 times, mobilized capital increased by 1.6 times; loan balance increased by 1.7 times compared to 2015. The loan structure developed sustainably with a focus on retail and SME customers. By the end of 2020, VRB had achieved its target of increasing the ratio of retail and SME loans to total outstanding loans to 75 percent (higher than the target of 66 percent), helping drive the development and business performance of the bank. Credit quality has strictly been controlled with an NPL ratio of less than 2 percent.

Strong move to the future VRB has progressively transformed its business operations towards a multiservice business. The bank's products

and services have constantly been innovated and fine-tuned to meet the comprehensive needs of customers.

Currently, VRB has a customer base with more than 50 percent being individuals, more than 30 percent being SMEs and FDI. Together with business scale expansion, VRB has persistently built a culture of customercentricity, compliance, transparency, and operational risk control. Thanks to the stability in operations and business development, in 2020 VRB was rated B2 equivalent to that of major banks - by the world's prestigious rating firm Moody's.

The joint venture has been a solid and reliable economic bridge that connects businesses of the two countries, becoming a symbol of economic, trade, banking, finance and investment cooperation, contributing to promoting the economic development of Vietnam and the Russian Federation. Up to now, besides the traditional payment channels such as Swift, CITAD, VRB has completed four service platforms: bilateral payment channel, MIR card, MOEX exchange, SPFS payment system, in order to increase utilities and support payment transactions of businesses of the Russian and Vietnamese businesses.

Looking ahead, VRB focuses on implementing the strategy for the 2021-2025 period with a vision to 2030. Accordingly, VRB will continue to pursue the goal of "effective and sustainable development", becoming a bank leading in the digital platform, and one of the leading banks in terms of profitability among peers. VRB is set to fulfill all tasks, contributing to the socio-economic development of Vietnam, and upholding the role of being a bridge, a symbol of economic, commerce, banking, finance and investment cooperation between Vietnam and the Russian Federation.

The bank has actively restructured, comprehensively and uniformly transformed into a modern, multifunctional retail banking model, building a risk management culture according to international standards, identifying customers as the center of business, technology and human resources as key to the bank's development. Currently VRB has a staff force of 500 employees and presence

On 19 November 2006, VRB was officially opened in Hanoi under the presence of the Vietnamese President Nguyen Minh Triet and Russian President Vladimir Putin. On the occasion of its 15th anniversary, VRB was honored to receive a Congratulation Letter from the Deputy Prime Minister of the Russian Federation and Emulation Flag from BIDV.

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Policy update

Ph uong Th ao

New regulation on buying and selling corporate bonds the regulations of the State Bank of Vietnam on the classification of assets, the rate of deduction, methods of setting up risk provisions and the use of provisions to handle risks for the credit institution before the time of buying the corporate bond.

A credit institution may not buy corporate bonds in the following cases: firstly, the corporate bond is issued for the purpose of restructuring the debts of the very bond issuer; secondly, the corporate bond is issued to contribute capital or buy shares in other enterprises; and thirdly, the corporate bond is issued to increase the size of operating capital.

On 10 November 2021, the State Bank of Vietnam issued Circular 16/2021/TT-NHNN stipulating the purchase and sale of corporate bonds by credit institutions and foreign bank branches. The circular will take effect on 15 January 2022.

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articularly, a corporate bond may be purchased and sold when fully meeting the following requirements: firstly, the corporate bond is issued in accordance with the law; secondly, it is issued in Vietnam dong; and thirdly, it is under the legal ownership of the seller, with the principal and interest being not due for payment, and the seller commits that the corporate bond is not in dispute and is allowed to be traded under the law. The bond must also not be in the situation of a forward transaction, discounting, or rediscounting (except for the case where a credit institution buys corporate bonds issued for the first time sale).

A credit institution may only buy corporate bonds when it has a bad debt ratio of less than 3 percent according to the latest classification period under

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Foreign bank branches are not allowed to buy convertible bonds or warranted bonds.

Regarding limitation on buying corporate bonds: Total balance of purchasing corporate bonds will be included in the total loan balance extended to one customer, and its related persons according to Article 128 in the amended Law on Credit Institutions and regulations of the State Bank of Vietnam on limits and safety ratios in the operations of credit institutions.

Credit institutions will specify limits on buying corporate bonds: Bonds issued by an enterprise; bonds issued by an enterprise and its related persons; secured bonds; unsecured bonds; available-for-sale bonds; bonds held to maturity; and trading bonds.

Policy update

Thu Th ao

Resolution to support enterprises and people affected by Covid-19 services; television program production, library, museum services, etc.

Waive of interest on late payment arising in 2020 and 2021 from the debts of taxes, land use fee and land rental fee for enterprises and organizations (including dependent units and business locations) having losses in 2020.

On 19 October 2021, the National Assembly approved Resolution 406/ NQ-UBTVQH15 introducing some solutions to support enterprises and people affected by Covid-19 pandemic.

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percent reduction of corporate income tax payable in fiscal year 2021 for the enterprises whose total revenue in fiscal 2021 is not more than VND200 billion and lower than the revenue of 2019. The latter requirement shall not be applied for newly established enterprises and enterprises having merger, division, separation activities in 2020 and 2021

Exemption of personal income tax, valued added tax and other taxes payable arising in the third and fourth quarters of 2021 for business households and individuals doing business in districts impacted by the Covid-19 pandemic in 2021. The list of impacted districts shall be determined by chairmen of provincial People's Committees. This is not applicable to businesses which provide software products and services, digital entertainment content products and services, video games, digital movies, digital music and digital advertising.

Reduction of value added tax for the period from 01 November 2021 to 31 December 2021 for activities such as transportation (railways, waterways, airline, other road transportation); accommodation, tourism, art creation, entertainment; printing products and

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As Vietnam’s leading financial institution, BIDV continues to implement solutions to support businesses, people and the economy to overcome the difficulties caused by the Covid-19 pandemic, following the policy and direction by the Government and the State Bank of Vietnam. Total budget for the support of the year is estimated at VND7,100 7,500 billion ( USD330.4 million). As of 30 September 2021, total funding for the implementation of social security programs committed by BIDV was VND400 billion (USD17.6 million).

In August 2021, BIDV launched a special credit - service program of VND25,000 billion (USD1.1 billion) named “Accompanying the health sector, joining hands to overcome the pandemic” to support medical staff nationwide. The package disbursements as of the end of September this year had been more than VND5,140 billion (USD226.4 million).

products & services

Hu y en Trang

Account number of your choice on BIDV SmartBanking For new customers who do not have information at BIDV, just download the BIDV SmartBanking app on the App Store/Google Play then register to use the app by eKYC authentication at home and follow the steps to open an account of your choice according to the above 4 steps.

Especially from now until 1 December 2021, BIDV offers an unlimited waiver of fees for transactions conducted via SmartBanking as well as offering an additional combo of up to VND300,000 (USD13.2) to the first 1,000 customers successfully registering and activating the SmartBanking every day. In addition, customers who sign up for the Bfree plan will enjoy a free transfer fee for life and many other service fees.

On 11 October 2021, BIDV introduced a new feature on the BIDV SmartBanking app that allows customers to select their bank account numbers.

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ccordingly, customers can select the last 2 to 7 digits of their account number right on BIDV SmartBanking. Selecting 2-digit in your account number will be free.

Fees for selection of 3 to 7 digits are reduced by 50 percent until 31 December 2021. If customers wish to select their account number at the counter, they are offered up to a 33 percent discount for 3 and 4 digits of choice.

4 steps to open an account number of choice on BIDV SmartBanking: Firstly, open the BIDV SmartBanking app; secondly, select the "Open lucky account"; thirdly, select an account number type; and finally, pay and complete the transaction.

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The lucky account number service has been offered by BIDV since 2020 in the form of selecting and opening the account directly at the bank’s branches and transaction offices nationwide. After nearly 1 year of implementation, this service has been received by hundreds of thousands of customers. Putting customers at the center of operations, BIDV expects that the introduction of the lucky account service to BIDV SmartBanking will improve its utility ecosystem, create convenience for customers in making transactions, especially in the context of the complicated development of the Covid-19 pandemic.

products & services

Thu Huye n

Enjoy international money transfer offers with BIDV and make a financial transaction during the promotion period will receive VND50,000 which will be credited to their account immediately.

Free to open a VND/foreign currency account pair with the same account number and no minimum balance required. Customers are also entitled to the waiver of fees for Bfree-Classic package for 02 years.

Loans secured by USD savings book at preferential interest rate, fast processing time, and simple procedure.

BIDV is launching a promotion program titled “Enjoy international money transfer offers with BIDV”, effective from 3 November to 31 December 2021 to express its gratitude to customers using the bank’s international money transfer service.

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n particular, customers will immediately receive VND100,000 (USD4.4) on each of the following transactions: Receive remittances through Western Union, SWIFT and KoronaPay channels with a value of USD500 or more; Send money internationally via SWIFT and Western Union channels of any value. The program is applied at all transaction points and agencies of BIDV nationwide.

In addition, when receiving any international money, customers also receive many incentives from BIDV's products and services such as: Customers who receive remittances at BIDV and want to open a new account (new CIF), register for SmartBanking

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Preferential secured loans (not applicable to overdraft loans) according to home loan products, car loans and personal installment loans secured by real estate. The minimum lending interest rate is reduced by up to 0.2 percent per year compared to the normal lending interest rate or by up to 0.2 percent per year compared to the minimum interest rate of BIDV's preferential credit packages from time to time, applicable for the first 12 months of the loan.

As the bank with years of experience in the field of international money transfer, boasting a wide network and the best IT platform, BIDV is confident to bring to customers great experiences in easy and fast money transfer services and attractive offers.

lifestyle

Lan Huong

Binh Lieu, an untouched pearl Remaining off the beaten track until recently, Binh Lieu captivates visitors with its stunning scenes of terraced fields, rolling green hills, and picturesque villages.

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uang Ninh province is best known as the home of Ha Long Bay, a UNESCO natural world heritage site that draws throngs of visitors. The province also boasts many other tourist attractions such as Bai Chay Bridge and the islands of Tuan Chau and Co To. As yet, Quang Ninh’s untouched pearl Binh Lieu is still a little visited destination.

Binh Lieu is a mountainous district in the northeast of Quang Ninh Province.

In recent years, the district has become popular amongst young travellers seeking a remote and beautiful destination.

Riding across the breath-taking passes is a must-do experience as visitors can admire the immense mountain scenery,

inhale the aroma of anise and cinnamon and listen to the murmuring from the streams below. In autumn, white reed flowers carpet the entire region, gently wafting in the wind and creating an aura of romance.

Though not quite as spectacular as those in the northwest, the terrace rice fields of Binh Lieu stretch under the valleys, hugging the winding hillside. In late October and early November, the terraces shine bright gold against the green mountains.

Binh Lieu is also home to a number of fascinating destinations including an ancient village, Khe

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lifestyle

beautiful as popular tourist sites such as Mau Son and Sa Pa. In spring cultural festivals imbued with the unique features of ethnic minority groups abound in the border highland district. Binh Lieu has a rich, diversified culture with its own characteristics.

The district is multi-ethnic, with more than 96 percent of its population being ethnic minority people. Binh Lieu is home to five ethnic groups, Tay, Dao, San Chi, Hoa and Kinh.

Visitors to Binh Lieu this December can participate in the “So” (camellia oleifera) Flower Festival to admire the charming So flowers. Featuring white pistils with yellow spots, these flowers are characteristic of the area.

Van waterfall, Cao Xiem peak, border markers 1300, 1302, 1305 and 1327, and the famous “dinosaur’s spine”.

The climate in Binh Lieu differs from the rest of Quang Ninh. Located 600-800 metres above sea level, the temperature in Binh Lieu is often 2-3 degrees Celsius lower than at the province’s centre.

In summer, the weather is clement, dropping to low temperatures in winter. The mountain peaks are at times covered with white coats of snow and ice, making the border district as

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lifestyle

M inh An

Rural beauty amid the clouds Y Ty, a mountainous commune in Lao Cai’s Bat Xat district, has become an attractive tourism destination in recent years thanks to its special beauty.

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rom Lao Cai train station, 70km of snaking mountain roads brings you to a foggy land resting 2,000m above sea level. Clouds envelope the roads, villages and mountains, merging with the horizon.

Visitors to this special place feel like they are entering a different world.

Terraced fields Many of Lao Cai’s towns and villages such as Sa Pa, Mu Cang Chai, Bac Ha and Muong Khuong are picture-worthy destinations. But Bat Xat stands out from them all due to its unusually high altitude and the magical sunsets that appear when the clouds part. Y Ty has become famous for its unique terraced fields made by the ethnic minority group Ha Nhi. The fields stretch over varying terrain, and the Ha Nhi people are experts at forming beautiful wide paddies that perfectly fit the valley curves and high mountain slopes.

Terraced fields rise and fall on the hills, creating a beautiful scene all year round. As locals transplant rice seedlings in May, visitors are treated to the sight of glittering ponds. Soon after, the hills are carpeted in green as the young rice plants spring up. The terraces climb up the valley like stairs to the sky, creating a mesmerising picture set against a backdrop of clouds in the vast expanse of sky. The sight has become a favourite shooting destination for both amateur and professional

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lifestyle

layers together, creating solid walls.

Finally, they fit wooden beams and purlins together to shape the roof.

Seen from above, the houses resemble huge mushrooms.

The Saturday market at Y Ty also attracts many tourists. Local items including agricultural produce and traditional clothes made by the ethnic groups Ha Nhi, H'mong, Dao and Giay are displayed. Visitors to the district should make time to visit the market, to purchase something to remind them of the special beauty of Y Ty.

photographers, with many returning to the place several times to capture the moment in different lights.

Earthen houses A trek through the commune provides an opportunity to view the earthen houses of the local communities, with their unique architectural features. The houses’ 40-50cm-thick walls are made of clay, with roofs made of thatched straw. Their average area is about 60-80sq.m. They have only one main door and a small arched window for ventilation, retaining warmth in the winter and staying cool in the summer.

It takes the local people around one month to build an earthen house, as the architecture is relatively simple.

After a successful crop yield, a suitable place is selected and the foundations are laid from stones. The walls are built next. Soil is put into a mould and wooden pestles are used to jam the

Tourism website www.thrillist.com has named Y Ty mountainous commune as one of the best-kept secrets in Asian travel.

The commune is described on the website: "Y Ty sits atop Vietnam's highest plateau, offering spectacular views of cloud-reaching mountains and yellow rice paddies. If you want to experience rural Vietnam without straying far from the tourist centre of Sapa, this is your spot”.

The website also suggests meeting locals at Y Ty's market where ethnic tribes sell traditional crafts and agricultural goods.

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CSR

Hu ong Nguyen

BIDV holds online photo contest “Warm Tet for the poor” the community - Sharing the will Sharing love" for a better future. The organizers also hope that the program will contribute to promoting and maintaining the sports and physical training movement to improve the health of employees throughout the BIDV system in particular and the community in general, bringing benefits to themselves as well as to the community.

Not only can participants share their stories through photos, but they also have the opportunity to become a "Brand Ambassador" for BIDV's social security programs and receive attractive prizes.

After more than 10 days of launching, the program has been well received by BIDV staff, customers, partners, and athletes.

The online photo contest "Warm Tet for the poor Healthy to share" which took place on 10 November and will end on 3 December 2021 not only helps improve the health of employees but is also part of the corporate culture of BIDV.

As of 23 November 2021, the organizers have received more than 1,200 entries from individuals/ organizations. The content of the entries is rich, focusing on health training, social security activities in diverse forms of expression. Each photo tells a different story, special moment, and meaningful event of the participants.

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he photo contest surrounds 2 main themes: “Sports moments” and "Colors of philanthropy". This is a place for participants to share their photos/ clips and stories about BIDV's running race for the poor. It is also a place to spread love and the spirit of "For

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After the end of the program, the organizers will compile the entries and post them on the Fanpage “Warm Tet for the poor”, and score based on the interaction of Facebook users. The contest results will be announced in December 2021.