BIDV Review 79 - Jannuary & February 2022

A Newsletter of Bank for Investment and Development of Vietnam JSC • Issue No.79 | Jan & Feb 2022

BUILDING SOLID FOUNDATIONS

BUILDING SOLID FOUNDATIONS FOR FOR Sustainable GROWTH

Sustainable GROWTH

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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, 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, e are entering into 2022 – the year of the Tiger. In the past year, despite the complicated developments of the pandemic, BIDV ensured the safe, stable and continuous operation, pioneering in supporting customers and employees to overcome the difficulties. In this new year publication, we would like to recap spotlights of BIDV and reveal new business plan.

On the first days of the new year 2022, BIDV held an online conference on implementing business tasks in 2022. According to the bank, total assets of the commercial banking business alone reached USD75.7 billion, maintaining the position as the largest joint stock commercial bank by total assets in Vietnam. The NPL ratio was controlled at 0.81 percent, down 0.73 percent compared to 2020. Profit met the 2021 target as assigned by the State Bank. BIDV has made full provisions for risks according to regulations. The bad debt coverage ratio reached 235 percent - the highest level ever in recent years. Charter capital hit USD2.3 billion, sustaining the leading position among joint stock commercial banks.

BIDV has become the first bank among the large state-owned banks in Vietnam to

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complete financial statements according to IFRS9 standards, ahead of the implementation deadline set by the Ministry of Finance. The IFRS9 project helps BIDV cement its leading position among Vietnamese banks as well as enhance transparency and efficiency. It also bolsters the confidence of international organizations, domestic and foreign investors in the bank's financial statements as well as the credit quality.

Despite the pandemic in 2021, Vietnam’s GDP maintained a positive growth momentum, with inflation controlled at the lowest level in the last 6 years, and FDI attraction recovering. This has laid solid foundations for the economy to rebound strongly in 2022. Vietnam's economy is forecast to grow at 6.5-7 percent in 2022, provided that Vietnam well designs and implements an economic recovery and development program in association with the pandemic prevention strategy.

Vietnamese New Year, or ‘Tet’ is the most important and longest festival in Vietnam and is a time for family reunion and best wishes. Let’s learn about Vietnam’s Tet at the last pages of the publication.

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contents

BIDV HIGHLIGHTS

PARTNERS

03. BIDV named Best Digital Consumer Bank

19. Building on successes for a higher jump 20. BIDV named typical partner bank of NAPAS in 2021

04. 10 spotlights of BIDV in 2021 06. Building solid foundations for sustainable growth 21. Partnering with NAPAS to launch DFS acceptance services 22. Fostering sustainable development in the pandemic 24. BSC sustains breakthrough growth PRODUCTS & SERVICES

26. BIDV reduces trade finance and international money transfer fees

27. A huge credit package for individual customers

08. BIDV pioneers in applying IFRS 9 09. BIDV waives all transfer fees on digital channels 10. A year of breakthroughs for the corporate segment

LIFESTYLE

28. The Tet tradition in Vietnam

INSIGHTS

12. Rising to the challenge

30. Calligraphy - an ancient Tet art CSR

14. Maintaining growth momentum in 2022

32. Tet gifts for disadvantaged communities

MARKET MOVEMENTS

16. FDI attraction hit over USD31 billion POLICY UPDATE

17. New circular on foreign currency transactions with credit institutions

18. RCEP offers opportunities for promoting trade and investment

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BIDV Highlights

Tha nh Nga

BIDV named Best Digital Consumer Bank Enterprise in 2021" at the Vietnam Digital Awards 2021 held by the Vietnam Digital Communications Association for its outstanding digital banking transformation activities.

The Global Finance magazine (USA) has recently announced the list of World Best Digital Banks to honor the world’s leading digital banking service providers.

BIDV is the Vietnamese bank to be named Best Digital Consumer Bank – Country Winner.

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inners were chosen from entries evaluated by a worldclass panel of judges at Infosys, a global leader in consulting, technology and outsourcing. The editors of Global Finance were responsible for the final selection of all winners.

Winning banks were selected based on the following criteria: strength of strategy for attracting and servicing digital customers, success in getting clients to use digital offerings, growth of digital customers, breadth of product offerings, evidence of tangible benefits gained from digital initiatives, and web/ mobile site design and functionality.

Category winners, such as Best Mobile Banking App were selected based on the relative strength and success of those web products and services.

BIDV has also been honored as "Excellent Digital Transformation

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Digital transformation has been creating comprehensive changes in all areas of BIDV’s operations, laying solid foundations for BIDV to serve customers better. In recognition of such efforts, in 2021, many domestic and international organizations have honored BIDV with many awards including Sao Khue title for virtual account system; centralized service registration; and BIDV Home application; “Best Mortgage product in Vietnam in 2021” awarded by The Asian Banker Magazine; “Vietnam’s most innovative electronic bank in 2021” awarded by The Global Banking & Finance Magazine, amongst others which continue to affirm BIDV's relentless efforts over the years.

Global Finance, founded in 1987, has a circulation of 50,000 and readers in 193 countries. The magazine’s audience includes senior corporate and financial officers responsible for making investment and strategic decisions at multinational companies and financial institutions. Global Finance regularly selects the top performers among banks and other providers of financial services.

These awards have become a trusted standard of excellence for the global financial community.

BIDV Highlights

Duc D uong

10 spotlights of BIDV in 2021 As the longest-established and largest financial institution in Vietnam, BIDV shone spotlights on all areas of operation in 2021.

1 Proactive and effective implementation of policies Following the close direction of the Party Executive Committee of BIDV, the drastic and flexible governance of the Board of Directors, the leadership of BIDV, and the relentless efforts of 25,000 employees from the Head office to 190 branches, 6 commercial presences and member units, BIDV actively and effectively implemented the policies of the Government, the State Bank of Vietnam and the Party Committee of the Central Business Sector.

It was the implementation of the Resolution of the 13th National Congress, the Government’s Resolution No. 01/NQ-CP on socio-economic development plan in 2021, and the Resolutions of the Party Committee of the Central Business Sector, the direction of the Governor of the State Bank of Vietnam.

2. Ensuring staff safety and business continuity In 2021, in the context of the complicated developments of the pandemic, BIDV ensured the safe, stable and continuous operation of the entire system, proactively developing and applying scenarios to cope with the Covid-19 pandemic.

BIDV is a pioneer bank in supporting staff and their relatives to be vaccinated against Covid-19, ensuring the safety of customers, employees and their relatives, helping them feel peace of mind. This action contributed

to ensuring the smooth operation of the bank, demonstrating its responsibility for the community in the prevention and control of the Covid-19 pandemic.

billion), up 9.2 percent compared to 2020.

3 Comprehensive and uniform completion of business plan

When the whole economy faced difficulties caused by the Covid-19 pandemic, BIDV actively reduced its income by VND7,900 billion (USD348 million) to support customers to overcome difficulties, recover and grow their business operations.

In 2021, despite the Covid-19 pandemic, the BIDV system comprehensively completed and exceeded the business plan which was assigned by the State Bank of Vietnam and the General Meeting of Shareholders in terms of size, structure, quality, efficiency and institutional development.

As of 31 December 2021, the bank’s total assets reached VND1.72 quadrillion (up 16.3 percent compared to 2020). BIDV continued to be the largest commercial bank by assets in Vietnam’s banking system. The bank’s charter capital reached VND50,585 billion (USD2.3 billion) - the largest in the banking system. Owners’ equity reached VND81,065 billion (USD3.6

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4. Accompanying customers to overcome the pandemic

In 2021, BIDV drastically implemented the direction of the Government and the State Bank of Vietnam in providing new loans, restructuring debt, exempting, reducing interests and fees; lowering interest rates for customer groups affected by the pandemic, helping to ease the difficulties for them.

5. Institutional development, consolidation of management apparatus The senior management apparatus of the bank was consolidated with

BIDV Highlights

the appointment of Mr. Le Ngoc Lam as the Chief Executive Officer, helping to strengthen governance and management capacity.

The Board of Directors issued Resolution No.22/NQ-BIDV approving BIDV's business development strategy to 2025, with a vision to 2030, clearly defining the bank’s mission, vision, core values, and pillars of development. The strategy components and action plans were uniformly and methodically formulated, including strategies on Digital Transformation, Retail Banking, Human Resources, Information Technology, Branding, and Corporate Culture standardization.

The CEO also implemented an action plan with 9 groups of solutions and 156 specific tasks covering all aspects of operations.

6. Pioneering in implementing digital transformation 2021 marked 30 years of BIDV’s IT operations. BIDV continued to affirm its pioneering position in digital transformation, launching the new generation SmartBanking application which offers a seamless experience on the website and mobile channels, timely meeting the needs of customers, particularly in the context of the pandemic.

A series of new technologies have been applied in the year such as eKYC (electronic Know Your Customer), e-wallet, multi-platform transactions.

The number of individual customers using SmartBanking increased by 52 percent, while the number of corporate customers using iBank (e-banking app) was up 43 percent.

7. Success of the ecosystem of banking - insurance - securities financial investment

In 2021, BIDV continued to effectively implement its multi-service business strategy, providing the market with many utilities and digitized products in its ecosystem of banking, insurance, securities, and financial investment services.

Total net income from investment activities reached VND250 billion (USD11 million), exceeding 32 percent of the year plan. Activities of subsidiaries, joint ventures and affiliates such as BIC, BSC, BIDC, LaoVietBank, and VRB in domestic and international markets all posted positive results. Many member units, despite facing challenges, managed to operate and complete the goals set out at the beginning of the year.

8. Taking social responsibility, sharing with the community As a leading financial institution in Vietnam, BIDV was pioneering in implementing policies to support the health sector and the frontline forces to fight against the pandemic. BIDV launched the package "Accompanying the health sector, joining hands to overcome the pandemic" with a scale of up to VND25 trillion (USD1.1 billion).

BIDV also actively implemented social security programs and fulfilled its responsibility to the community. In the year, BIDV implemented over 170 social security programs with a total donation of VND460 billion (USD20.3 million).

9. Standardizing corporate culture To successfully implement the business strategy to 2025, with a vision to 2030, in the year BIDV boosted the implementation of programs on

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corporate culture standardization.

BIDV repositioned its corporate culture which consists of five values namely intelligence, Belief, Integrity, Detail, and Vitality. The bank also implemented the Risk Culture with 8 values. Programs on creative learning culture, digital transformation culture were implemented across the system in diverse forms of communication.

10 Fostering brand development The efforts of BIDV have been recognized and lauded by the Party, State, Government, ministries, and localities. BIDV is the choice of many institutions, enterprises, and large corporations in establishing a strategic and comprehensive cooperation relationship. BIDV has been honoured with prestigious awards and accolades by domestic and international organizations. Moody's continued to assign BIDV's issuer ratings at the sovereign ceiling and among banks with the highest credit rating in the Vietnamese market.

Forbes has included BIDV in the list of Top 2,000 largest public companies in the world for the seventh consecutive year. BIDV was also named “Best SME Bank in Southeast Asia” by Global Banking and Finance; "Best Retail Bank in Vietnam" for the sixth time; “Best Custodian Bank in Vietnam in 2021” by The Asian Banker.

2022 is an important year for Vietnam, a pivotal year for the implementation of the Five-Year Plan 2021-2025. With the action motto of 2022 "Discipline - Efficiency – Digital Transformation", BIDV is set to transform for long-term development and prosperity.

BIDV Highlights

CHUNG PHAN

Building solid foundations for sustainable growth commercial bank by total assets in Vietnam.

Total customer deposits reached VND1.61 quadrillion (USD70.9 billion), of which deposits from organizations and individuals reached VND1.49 quadrillion (USD65.6 billion), up 16.9 percent compared to 2020, accounting for more than 11 percent of the deposit market share of the whole sector.

On 7 January 2022, in Hanoi, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) held an online conference on implementing business tasks in 2022.

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n 2021, despite the serious impact of the Covid-19 pandemic, with efforts, determination and solidarity, BIDV maintained safe and smooth operations, comprehensively fulfilling the goals of scale, structure, quality, efficiency, financial capacity and institutional development, preserving and growing State capital, fully fulfilling obligations to the State, ensuring the interests of shareholders and employees.

As a large State-owned commercial bank, BIDV proactively and drastically implementing solutions to support businesses, society and communities in the fight against the Covid-19 pandemic: proactively reducing income by more than VND7,900 billion (USD348 million) to support customers affected by the pandemic through reducing lending interest rates, reducing fees, restructuring loan repayment, launching credit packages at preferential rates; actively implementing social security programs.

BIDV met business targets as assigned by the State Bank and the General Meeting of Shareholders, particularly: As of 31 December 2021, total assets of the commercial banking business alone had reached VND1.72 quadrillion (USD75.7 billion), up 16.3 percent compared to 2020, maintaining the position as the largest joint stock

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Total outstanding credit and investment reached VND1.65 quadrillion (USD72.7 billion), of which the loan balance hit VND1.33 quadrillion (USD58.6 billion), up 11.8 percent compared to 2020, complying with the credit limit assigned by the State Bank (12 percent) and accounting for more than 13 percent of the credit balance of the whole economy.

Retail outstanding loans increased by 25 percent compared to 2020; SME and FDI outstanding loans increased by 15 percent and 21 percent, respectively.

The NPL ratio according to Circular 11/2021/TT-NHNN was controlled at 0.81 percent, decreasing by 0.73 percent compared to 2020, ensuring the target assigned by the State Bank in 2021 (<1.6 percent). Group 5 debt ratio was 0.42 percent, down 0.82 percent compared to 2020.

Profit before tax of the commercial banking alone hit VND12,600 billion (USD555 million), up 51.3 percent from 2020, surpassing the target assigned by the State Bank (VND12,500 billion).

Consolidated profit before tax reached VND13,500 billion (USD595 million), an increase of 50 percent compared to 2020. Safety ratios ensured compliance with regulations; International credit

BIDV Highlights

ratings improved. BIDV has made full provisions for risks according to regulations. The bad debt coverage ratio reached 235 percent - the highest level ever in recent years.

Charter capital hit VND50,585 billion (USD2.3 billion), up VND10,365 billion (USD457 million) compared to 2020, sustaining the leading position among joint stock commercial banks.

Owners equity reached VND81,065 billion (USD3.6 billion), up 9.2 percent compared to 2020.

BIDV has fulfilled its obligations to the state; ensuring the interests of shareholders and income for employees. Activities of subsidiaries, joint ventures and affiliates in 2021 posted positive results. Profit before tax of subsidiaries in 2021 reached VND1,094 billion (USD48.2 million).

Commenting on the 2021 business results, Mr. Phan Duc Tu - Chairman of the Board of Directors of BIDV affirmed: “The whole BIDV system has thoroughly grasped and well followed the policies of the Party and the State, the direction of the Party Committee of the Central Business Sector and the State Bank of Vietnam. BIDV has comprehensively completed and surpassed the 2021 targets, joining the whole banking industry to effectively serve the socioeconomic development of the country".

Addressing the meeting, Mr. Nguyen Kim Anh - Deputy Governor of the State Bank of Vietnam acknowledged the outstanding results BIDV achieved in 2021 as well as its contribution to the successful implementation of monetary policy, supporting the

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

economy to overcome difficulties caused by the Covid-19 pandemic.

The Deputy Governor emphasized: “I believe that with the results achieved and the efforts and determination of the Board of Directors, and Board of Management, BIDV will continue to fulfill the business plan in 2022 and the following years, making an important contribution to the overall performance of the industry, enhancing the role, position and reputation of BIDV in Vietnam‘s banking system, as well as in the region and the world.”

With the action motto of "Discipline - Efficiency - Digital Transformation", BIDV is determined to complete the 2022 business plan.

To complete the set goals, BIDV is set to effectively implement key tasks in 2022 such as: Strictly implementing measures to prevent and control the Covid-19

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pandemic throughout the system, ensuring safe and smooth business operations; Credit growth compliant with the direction of the Government and the State Bank; Managing capital flexibly, effectively and safely; Strictly controlling credit quality; Maintaining sustainable efficiency on the basis of maximizing revenues, effectively managing costs, improving investment activities and financial capacity; Improving governance and management capacity; Implementing uniform digital transformation solutions; Fostering corporate culture in association with developing quality human resources; Balancing resources to support customers affected by the Covid-19 pandemic in accordance with the policies and regulations of the Government and the State Bank of Vietnam; Implementing responsibility to the community as a major financial institution in the system.

BIDV Highlights

Dieu My

BIDV pioneers in applying IFRS 9 project, BIDV can actively develop IFRS9 financial statements in the following years, improve risk management and hedge accounting according to international practice.

BIDV can also actively research and apply the project’s expected credit loss models to the governance and management as well as policy-making and business planning.

Senior executives of BIDV and PwC pose for a photo at the IFRS9 project closing ceremony in Hanoi

BIDV has become the first bank among the large stateowned banks in Vietnam to complete financial statements according to IFRS9 standards

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n 23 December 2021, in Hanoi, BIDV and PwC held a closing ceremony of the project “Implementation of International Financial Reporting Standards 9 (IFRS9) at BIDV”.

As the leading financial institution in Vietnam, BIDV has researched and developed a plan to implement the IFRS9 to prepare financial statements (separate and consolidated) in accordance with the latest international standards, and be prepared to provide to international partners and rating agencies.

Up to now, BIDV has become the first bank among the large stateowned banks in Vietnam to complete financial statements according to IFRS9 standards, ahead of the implementation deadline set by the Ministry of Finance (expected to be from 2025). After the conclusion of the

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Mr. Le Ngoc Lam, Chief Executive Officer of BIDV, thanked the Board of Directors, leaders and consultants of PwC, members of the IFRS9 project management unit (PMU) for their efforts and support for BIDV to complete the project. The CEO directed the IFRS9 PMU to continue to make specific proposals on the internal coordination process to develop IFRS9 financial statements at BIDV, as well as revamp policies and investment portfolio strategies, including credit portfolio and pricing strategy, credit policy, ensuring to cover risks for financial instruments which require large risk provisions.

The IFRS9 project helps BIDV cement its leading position among Vietnamese banks in terms of applying international best practices (IFRS9, Basel) as well as enhance transparency and efficiency.

It also bolsters the confidence of international organizations, domestic and foreign investors in the bank's financial statements as well as the credit quality, moving closer to the goal of being among Top 100 largest banks in Asia.

BIDV Highlights

Ha i Van

BIDV waives all transfer fees on digital channels BIDV waives all fees on digital channels from 1 January 2022.

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n response to the Government's National Digital Transformation program, especially in the field of finance and banking, from 1 January 2022, BIDV waives all fees on digital channels to encourage cashless payment. The bank also offers VND65 billion (USD2.9 million) as tribute to its customers.

Fee waiver on BIDV SmartBanking From 1 January 2022, individual customers will be exempted from all fees when making transactions on BIDV SmartBanking, including money transfer fees (both interbank and within the BIDV system); service maintenance fee; management fee for 01 account; OTT SMS fee.

Earlier, BIDV also waived and reduced money transfer fees many times, launching Bfree service packages which exempts up to 10 types of fees; launching a credit package targeted at medical workers at the lending interest rate of 1 percent per year only.

BIDV also implemented the reduction in interest rates, extension in loan repayments and other solutions to support customers to overcome the difficulties caused by the Covid-19 pandemic.

The interface of BIDV SmartBanking app for individual cutstomers

For 2021 alone, the total fund BIDV supported its customers was up to VND7,900 billion (USD348 million).

Tribute to customers on the bank’s 65th anniversary Towards the 65th anniversary of BIDV (26 April 1957 – 26 April 2022), BIDV is offering all customers the biggest promotion program ever with a total value of up to VND65 billion as the gratitude to customers for their accompanying the bank.

In particular, from 1 January to the end of 30 June 2022, all customers newly registering for BIDV SmartBanking and making at least 01 financial transaction during the program period will immediately receive a cash gift worth VND65,000 into their account.

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BIDV will also make special offers to all BIDV SmartBanking users, specifically: Lifetime exemption of nonphysical card issuance fees on BIDV SmartBanking, including issuance fees and annual fees; 10 customers with the highest current account balance in a day will receive 01 mace of SJC 9999 Gold each (with the implementation lasting until the end of the year).

With the fee waiver policy for customers on the digital channels, BIDV continues to affirm its position as the leading retail bank in Vietnam, accompanying customers to strongly and effectively implement the national digital transformation policy and cashless payment, helping to prevent, control, and fight against the Covid-19 pandemic in Vietnam.

BIDV Highlights

Hu y en Truc

A year of breakthroughs for the corporate segment Despite the unpredictable fluctuations due to the Covid-19 pandemic, 2021 witnessed positive changes in the activities of the corporate segment at BIDV. Impressive figures Total net income in 2021 of the corporate segment made a breakthrough, reaching the milestone of VND20,500 billion (USD903 million) for the first time, up 46 percent compared to 2020. End-of-period outstanding loans of the segment hit VND751 trillion (USD33.1 billion), of which SME loans were VND304 trillion (USD13.4 billion), an impressive growth of 15.4 percent compared to 2020, accounting for 40.5 percent of the total outstanding loans of domestic corporate customers. The above results have proved the strategic direction of BIDV in developing the SME segment.

In 2021, BIDV continued to maintain its No.1 position in the market in terms of the number of SME customers. The SME customer base has grown rapidly and continuously, reaching 336,000, accounting for about 40 percent of the total number of SME customers in Vietnam. In which, the number of administrative and non-business customers reached 31,000, the number of iBank users hit 74,000, an increase of 41 percent compared to 2020, meeting 48 percent of the target of the 2021-2025 plan.

For the large corporate segment, BIDV continues to bolster relationships with leading strategic partners in Vietnam. In the year, the bank successfully signed and effectively implemented comprehensive cooperation agreements with Hanoi National University, Vietnam Posts and Telecommunications Group (VNPT), MobiFone Telecommunications Corporation, Vietnam Post Corporation (VNPost), Electricity of Vietnam (EVN), SunGroup, Housing and Urban Development Corporation (HUD). Such agreements have created a synergy for the parties to make further strides, making practical contributions to the country's socio-economic recovery and development after the pandemic.

With its outstanding business performance, BIDV has been

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recognized by prestigious international organizations. BIDV was the first Vietnamese bank to be honored as the Best SME Bank in Southeast Asia, the Best SME Bank in Vietnam for the fourth consecutive year, and the No. 1 Wholesale Bank of the year.

Continuing digital transformation In 2021, facing the economic challenges given the complicated developments of the Covid-19 pandemic, BIDV deployed various digitalization solutions to support businesses to quickly adapt to the situation and take a shortcut for business recovery.

To support businesses to quickly access loans and banking products and

BIDV Highlights

services, BIDV implemented an online loan application program, providing businesses with an ecosystem of highquality products and services with high technology content and multi-utilities such as electronic tax payment, 24/7 online bill payment, multi-channel payment, cash flow management, electronic collection service, virtual account solution. All helped the businesses easily control and manage their business activities even during the Covid-19 social distancing.

BIDV has pioneered in the implementation of new services in the field of digitization such as Mobile Money service, agent banking service, using the eKYC solution to increase customer base on partners’ application platforms with Viettel, VNPT, MobiFone. The bank also implemented traditional payment intermediary services for enterprises newly licensed as payment intermediaries such as MobiFone, VNPost. In addition, BIDV deployed BIDV-ERP Connection - a service that connects BIDV iBank's ebanking system with the enterprises’ internal management software for TKV, VNPT, EVN, and Viettel, among others. The implementation of the services helped bolster the cooperation with the major partners, improve financial management capacity as well as attract cash flow based on comprehensive cash flow management.

management, BIDV implemented the digital transformation with SMEs (SME Digitrans), which was well received by the business community.

Delivering commitment to prosperity To support enterprises to overcome difficulties, maintain and recover production and business activities given the fluctuations of the Covid-19 pandemic, BIDV proactively implemented preferential policies for businesses such as reducing lending interest rates by up to 2 percent/ year compared to the current rate; restructuring the debt repayment term, keeping the debt group unchanged; launching preferential credit packages totaling VND370 trillion (USD16.3 billion) as well as an interest rate

In particular, in order to accelerate the digital transformation process and apply modern technology to management and financial - accounting

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support package of USD5 million financed by ADB for women-led small and medium enterprises.

BIDV also boosted the development of products to meet the diverse needs of customers such as supply chain financing, distribution financing for FrieslandCampina, Rang Dong, Hyundai Thanh Cong, Mobifone, …, thereby meeting the maximum needs of customers, contributing to increasing the efficiency of BIDV's customer base.

The outstanding results in 2021 have built a solid foundation for BIDV in its corporate segment development in the following years, contributing to the successful implementation of the business development strategy of the 2020-2025 period with a vision to 2030.

Insights

AN HA

Rising to the challenge controlled at a level that is lower than the target of 4 percent as set by the National Assembly and the Government; the average inflation was about 2 percent, the lowest level since 2016. The core inflation was also at a low level, contributing to maintaining the macro-economic stability, strengthening public confidence, and FDI attraction.

The headquarters of the State Bank of Vietnam in Hanoi

The banking industry successfully fulfilled its tasks in 2021, yet many challenges remain ahead.

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ooking back over the past year, the banking industry had faced many difficulties and challenges in operating monetary policy given the unpredictable fluctuations of the world’s economy. Businesses and people were severely affected by the Covid-19 pandemic. The banking system had taken drastic actions, implementing tasks right from the beginning of the year, upholding its role as the lifeblood of the economy.

In 2021, the State Bank of Vietnam (SBV) comprehensively managed the

monetary tools to regulate the liquidity appropriately; the money market has been stable; the inter-bank interest rates have been remained at low levels, supporting the credit institutions to reduce their capital costs, thereby allowing them to cut down their lending interest rates. Credit continued to focus on production, priority areas and policy credit programs. The SBV strictly controlled credit in potentially risky areas, implementing effective credit policy programs.

The SBV also coordinated closely with the relevant ministries and state agencies to manage the monetary policies, the commodity and service prices; made forecasts of the inflation to control it. Thanks to those measures, the inflation in 2021 was

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In addition, the State Bank flexibly adjusted the credit growth limits for credit institutions, ensuring sound credit expansion. With the SBV's uniform instructions and solutions, although negatively affected by the Covid-19 pandemic, the credit of the whole economy increased and was higher than the same period of the previous year. Total outstanding loans of the economy reached about VND10.38 quadrillion (USD457 billion), up 12.97 percent compared to the end of 2020 (total mobilized capital of the economy reached about VND11.23 quadrillion (USD495 billion), up 8.44 percent); 4 out of 5 priority areas had a higher growth rate than the credit growth of the economy.

In the year, the SBV continued to maintain the policy rate at a low level, creating favorable conditions for credit institutions to access low-cost capital from the SBV which allowed them to further cut lending interest rates.

The State Bank requested the credit institutions to cut expenses, adjust business plans and profit targets in order to focus on reducing their lending interest rates for the existing

Insights

The State Bank of Vietnam holds a conference on dissemination of banking tasks for 2022

and new borrowers. Commercial banks with a large market share committed to continue reducing lending rates.

The total amount of interest that credit institutions exempted, reduced for customers amounted to VND34.9 trillion (USD1.6 billion). According to the advocacy of the Vietnam Banks Association, 16 credit institutions implemented programs on reducing lending rates and service fees for customers affected by the Covid-19 pandemic. Between 15 July and 30 November 2021, the credit institutions reduced their interest by VND18,095 billion (USD797 million).

In 2021, the SBV continued to closely monitor the credit institutions' implementation of the approved restructuring schemes, reviewing and making appropriate adjustments in line with the practical situations, and addressing any arising constraints and obstacles promptly; warning and removing difficulties during the implementation by the credit

institutions. The SBV also issued many action plans and programs, improved the legal frameworks to enhance the digital transformation in the banking sector.

In her concluding remarks at the Conference on banking tasks 2022, the Governor of the State Bank Mrs. Nguyen Thi Hong requested the entire banking sector to thoroughly grasp the orientations, objectives of controlling the inflation, maintaining the macroeconomic stability, supporting the economic recovery and development, managing the monetary policies in a proactive and flexible manner in association with the fiscal policies and other macro policies, improving the resilience to any economic fluctuations in the international and domestic markets; thoroughly grasp the policy of expanding credit while ensuring the credit safety and security, focusing all available resources on production and business operations, and controlling credit in potentially risky areas; effectively implementing the

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restructuring of the credit institutions in association with bad debt handling; promoting the digital transformation, contributing to realizing the policy of developing a digital economy and a digital society.

In 2022, the State Bank of Vietnam plans to increase credit by about 14 percent, with adjustments in line with the actual situation; control credit with a focus on production and business fields, priority areas according to the Government's policy; strictly control credit in potential risk areas.

The banking industry continues to implement synchronous solutions to ease difficulties for people and businesses affected by the Covid-19 pandemic and natural disasters; continue to effectively implement the restructuring of the credit institutions system; improve financial capacity, governance capacity, and transparency under international standards; enhance international competitiveness.

Insights

M I NH HANH

Maintaining growth momentum in 2022 Despite the complicated development of the pandemic in 2021, Vietnam’s GDP maintained a positive growth momentum, with inflation controlled at the lowest level in the last 6 years, and FDI attraction recovering.

This has laid solid foundations for the economy to rebound strongly in 2022.

POSITIVE HIGHLIGHTS Given the serious and complicated impacts of the pandemic on all aspects of socio-economic life, Vietnam's economic picture in 2021 showed bright spotlights.

GDP maintained a positive growth momentum at an encouraging level in the context of the complicated pandemic. GDP growth in 2021 reached 2.58 percent - lower than last year and is the lowest level in the past 10 years.

Inflation was at the lowest level in the last 6 years. The average CPI in 2021 increased by 1.84 percent compared to 2020, mainly due to low consumer demand and slow cash flow.

Import and export turnover reached a record level in the context of the world and domestic economic difficulties, and trade surplus. In 2021, the total

export and import turnover of goods grew well, reaching USD668.5 billion, up 22.6 percent over the previous year.

In which, export turnover reached USD336.3 billion, an increase of 19 percent compared to the previous year; import turnover hit USD332.2 billion, up 26.5 percent. Trade balance saw a surplus of USD4 billion.

The exchange rate was stable, interest rates decreased and remained low, and the banking system's operation was stable thanks to the active and flexible monetary policy of the State Bank. The USD/VND exchange rate saw mixed fluctuations as the interbank rate decreased by 1.1 percent while the central rate increased by 0.1 percent compared to the beginning of the year. Deposit interest rates decreased, creating conditions for credit institutions to further reduce lending rates. Lending rates (both existing and new loans) decreased by 0.5-2 percent/year, substantially supporting businesses. In 2021, credit institutions: (i) restructured the repayment term, keeping the debt group unchanged for about 630,000 customers affected by the pandemic with outstanding loans of over VND285 trillion (USD12.6 billion); (ii) exempted, reduced interest rates for over 1.96 million customers, with total outstanding loans of more than VND3.82 quadrillion (USD168.3 billion); (iii) provided new low-interest loans of over VND7.2 quadrillion (USD317.2 billion) so far for 1.2 million customers.

Digital transformation, science and technology development, and

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innovation made great strides.

The Covid-19 pandemic, besides the negative impact, also created a "push" that promoted the strong development of Vietnam's digital economy. According to the E-conomy Report (2021), Vietnam ranks third in ASEAN and 14/50 in Asia in terms of digital economy scale. Vietnam's digital economy is estimated to reach USD21 billion in 2021 (about 5.8 percent of GDP), up 31 percent compared to 2020. Regarding e-commerce, Vietnam's market size in 2021 is estimated at USD13 billion, up 53 percent compared to 2020, becoming an important distribution channel of goods in the context of the pandemic.

Regarding e-payment, the growth of payment value via Internet, mobile, and QR Code channels increased by 29 percent, 88.3 percent, and 129 percent, respectively - among the highest in the

Insights

administrative reforms have been implemented to support import and export activities.

FDI: If Vietnam actively promotes the vaccination program, and soon achieves herd immunity and controls the pandemic, registered FDI is forecast to reach USD32-33 billion (up 5-10 percent), realized FDI is forecast to reach USD22-23 billion (up 10-15 percent) in 2022 thanks to the positive impact of new generation FTAs as well as Vietnam's improved business environment.

world. Vietnam has 16.4 million active e-wallets, up 20.2 percent compared to 2020.

ECONOMIC FORECAST FOR 2022 GDP growth: In 2022, socio-economic activities are forecast to recover more strongly after the pandemic. Currently, international organizations are still optimistic about the prospects of Vietnam's economy in the medium and long term. Accordingly, Vietnam's economy is forecast to grow at 6.5-7 percent in 2022, provided that Vietnam well designs and implements an economic recovery and development program in association with the pandemic prevention strategy. This growth rate is aligned with the target set by the National Assembly and the Government in 2022, in which GDP increases by 6-6.5 percent, and CPI is

Inflation: In 2022, inflation is forecast at 3.4-3.7 percent, which is higher than the global and ASEAN averages; mainly due to Vietnam's inflation increasing along with economic recovery, global inflation pressure, raw material prices, and the lags of expansionary monetary and fiscal policy.

Interest rate: In 2022, it is expected that the State Bank will continue to operate monetary policy instruments proactively, flexibly, and uniformly, closely coordinating with fiscal policy and other macroeconomic policies to control inflation, contributing to macroeconomic stability, supporting the recovery of economic growth.

Therefore, interest rates are forecast to maintain at a low level, although they may increase slightly compared to 2021.

Import and export: In 2022, the total export and import turnover is forecast to grow by 13-15 percent, estimated at USD740-750 billion, of which export is forecast to reach about USD372-380 billion (up 13 -15 percent) due to: (i) The pandemic is under control, vaccine coverage continues to increase, (ii) The good economic recovery and the demand of Vietnam's major trading partners; (iii) Free trade agreements have come into force and many

Credit growth: In 2022, credit is expected to be expanded further, increasing by 14 percent. The State Bank's credit development orientation in 2022 will focus on synchronous coordination with the fiscal policy to support the economy, promoting credit in priority fields, production and business fields, especially key and effective projects; adjusting credit structure to align with the economic transformation.

controlled at less than 4 percent.

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market movements

M inh Thanh

FDI attraction hit over USD31 billion Last year, 106 countries and territories invested in Vietnam. Singapore took the lead with a total investment of over USD10.7 billion, accounting for 34.4 percent of the total investment capital.

South Korea ranked second with nearly USD5 billion, accounting for 15.9 percent. Although South Korea ranks second by investment capital, it is the leading partner in terms of number of projects. Japan ranked third with USD3.9 billion, accounting for 12.5 percent.

Foreign direct investment (FDI) into Vietnam in 2021 is estimated at USD31.15 billion, up 9.2 percent compared to 2020. Foreign investors have invested in 18 out of 21 economic industries.

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ccording to the latest data from the Foreign Investment Agency under the Ministry of Planning and Investment, the total registered FDI capital into Vietnam as of 20 December 2021, including new registration, adjustment, capital contribution and share purchase by foreign investors reached USD31.15 billion, up 9.2 percent compared to 2020. Foreign direct investment capital realized in Vietnam in 2021 was estimated at USD19.74 billion.

In particular, 1,738 new projects were granted investment registration certificates in 2021 with a total registered capital of over USD15.2 billion, up 4.1 percent in value over the same period last year. 985 licensed projects registered to increase investment capital by USD9.01 billion, up 40.5 percent over the previous year.

Foreign investors have invested in 18 out of 21 national economic industries. In which, the processing and manufacturing industry leads the way with a total investment of over USD18.1 billion, accounting for 58.2 percent of the total registered capital. Electricity production and distribution industry ranked second with over USD5.7 billion, accounting for 18.3 percent of the total, followed by the real estate, wholesale-retail with USD2.6 billion and over USD1.4 billion, respectively.

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Regarding FDI attraction, Hai Phong overtook Long An to take the lead in the whole year with a total registered investment capital of over USD5.26 billion, accounting for 16.9 percent of the total registered investment capital, nearly 3.5 times higher than the same period last year. Long An ranked second with over USD3.84 billion, accounting for 12.3 percent. Ho Chi Minh City ranked third with nearly USD3.74 billion, accounting for nearly 12 percent of the total investment capital.

Experts forecast that the FDI into Vietnam will continue to increase sharply in 2022 when countries have gradually been opening doors and adapted to the new normal. Vietnam has advantages in labour cost, infrastructure and especially a series of free trade agreements that Vietnam has signed.

Policy update

NGOC ANH

New circular on foreign currency transactions with credit institutions transaction relationships with the SBV shall submit dossiers for registration of the establishment of foreign currency transactions to the SBV in accordance with regulations. The SBV shall confirm the establishment of foreign currency transaction relationship with the licensed credit institution on the basis of checking the completeness and accuracy of the dossiers. The Circular abolishes the requirement for a copy of the license and other documents proving that the relevant credit institution is permitted to provide foreign exchange services in the domestic market.

On 31 December 2021, the Governor of the State Bank of Vietnam (SBV) issued Circular No. 26/2021/TT-NHNN guiding foreign currency transactions between the SBV and credit institutions licensed to conduct foreign exchange operations.

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his Circular only regulates the foreign currency transactions between the SBV and the credit institutions. The foreign currency transactions between the SBV and the credit institutions in the domestic market are aimed to support the foreign currency interventions in line with the plan decided by the SBV from time to time.

The new Circular is aimed to firstly, simplify the dossiers of establishing foreign currency trading relationships, providing more specific guidance on the transaction processes; secondly, supplement the forex options trading as a type of transaction; and thirdly, make amendments to ensure consistency with the changes in the use of London Interbank Offered Rate (LIBOR) in the financial market.

The credit institutions licensed to conduct foreign exchange operations willing to establish foreign currency

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The Circular provides for more specific guidance on the transaction process and the forms by which the credit institutions can send transaction confirmation after telephone transactions and submit foreign currency transaction requests to the SBV. The Circular also stipulates the means and language of the transactions, time and payment, suspension and cancellation of transaction relationships; the means of reporting; responsibilities of the licensed credit institutions and units under the SBV. Licensed credit institutions that have established foreign exchange transactions with the SBV before the effective date of this Circular may continue to conduct foreign currency transactions with the SBV in accordance with the provisions in this Circular, and shall not need to reregister with the SBV. Circular No. 26/2021/TT-NHNN will take effect on 15 February 2022.

Policy update

DUC D UY

RCEP offers opportunities for promoting trade and investment countries, while the partner countries will eliminate about 90-92 percent for Vietnam. ASEAN countries will eliminate almost all tax lines for Vietnam.

Fitch Solutions notes that for Vietnam, major export categories that are expected to benefit include IT, footwear, agriculture, automobiles, and telecommunications. The FTA would help Vietnam access large consumer markets double the size of those included in the CPTPP.

Vietnam’s major export categories are expected to benefit from the Regional Comprehensive Economic Partnership (RCEP) agreement.

As Vietnam moves to become a hightech manufacturer, the RCEP can help local firms increase exports and attract high-quality goods for its consumers.

In addition, with demand for Vietnam’s exports like agriculture and fisheries products, Vietnam is set to benefit.

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CEP was signed by 10 ASEAN member countries with partner countries including China, Japan, Korea, Australia and New Zealand on 15 November 2020 and officially takes effect on 1 January 2022. The RCEP will form the largest free trade area in the world, in terms of population size (2.2 billion consumers, accounting for about 30 percent of the world's population) and GDP of more than USD27 trillion, equivalent to about 30 percent of global GDP. Notably, after the RCEP takes effect, the parties will immediately deliver their commitments, including tariff cuts. Vietnam and the partner countries will eliminate tariffs on at least 64 percent of tax lines as soon as the agreement comes into effect.

By the end of the roadmap (after 20 years), Vietnam will eliminate nearly 90 percent of tax lines for the partner

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In addition, the simplification of procedures such as customs and rules of origin will help reduce bureaucracy allowing more SMEs to participate. SMEs account for 98 percent of all enterprises in Vietnam, contributing to 40 percent of GDP, and thus the RCEP presents significant opportunities for Vietnamese SMEs to move up the value chain.

For investors operating across ASEAN, China, and other regions – RCEP offers good news. Streamlined customs procedures, unified rule of origin, and improved market access will make investing in multiple locations. The common rule of origin will lower costs for companies with supply chains that span across Asia and may encourage multinationals to RCEP countries to establish supply chains across the bloc, thus growing the global value chain activity in the region.

partners

TRUC LINH

Building on successes for a higher jump With 15 years of building trust and reputation, Vietnam Russia Bank (VRB) has been walking steadily on the journey of innovation to meet all needs of customers.

outstanding loans. Typical customers include Vietnam Airlines Corporation, Geruco Song Con Hydropower JSC, Bamboo Airways, primary agents of global corporations such as Sena Tech Co., Ltd., Jworld Vina Co., Ltd., Eunsung Electronics Vina Co., Ltd., TPS Vietnam Co., Ltd. 2021 was also the first year VRB was rated by the Moody's with long-term deposits, long-term issuers, and BCA at B2 and stable outlook.

The ratings are equivalent to those of other big commercial banks in the market.

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ooking back over the past 15 years, VRB affirms that this journey has laid a solid foundation for it to make breakthroughs. The bank has fulfilled its task in promoting the bilateral cooperation between Vietnam and the Russian Federation, providing financial solutions for Russian joint ventures and leading corporations operating in Vietnam such as Vietsovpetro, Rosneft Vietnam, Power Machines Vietnam, and Zarubezhneft.

VRB launched a bilateral payment system between Vietnam and the Russian Federation in 2016, 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. VRB is also the first bank in Vietnam to work with Napas and

NSPK to provide payment services for Russian domestic cards (MIR chip cards) in Vietnam.

As of end-2021, VRB’s total assets, outstanding loans, customer deposits, and pre-tax profit had all exceeded the business plan. Loans to individual, SMEs, and FDI customers accounted for about 80 percent of the bank’s total

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According to Mr. Nguyen Manh, Vice Chairman of VRB, the bank is focusing 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 socioeconomic development of Vietnam, and upholding the role of being a symbol of economic, commerce, banking, finance and investment cooperation between Vietnam and the Russian Federation.

partners

Bao Ngoc

BIDV named typical partner bank of NAPAS in 2021 With positive results in the cooperation, BIDV was named by Vietnam National Payment Corporation (NAPAS) as a typical partner bank in 2021, honoured with two awards “Bank with The Best POS Network” và “Dynamic Bank”.

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he awards ceremony was part of NAPAS Member Banking Conference annual event which honors BIDV and other representative member banks for their contributions to the financial switching operation and electronic clearing system, helping to promote the banking system, non-cash payment under the orientation of the Government and the State Bank of Vietnam.

The “Bank with The Best POS Network” award was based on four criteria: first, number of transactions per POS; second, growth in the number of POS transactions on the payment bank side; third, proportion of active POS; and fourth, the implementation of dual POS (acceptance of contactless

international connection with DFS and NSPK, prepaid card, Vinbus and Topup connection.

Given the Covid-19 pandemic, in 2021 BIDV and member organisations cooperated with NAPAS to launch new projects and products to the market, such as converting magnetic cards to chip ones, integrating payment application in traffic, expanding the connection of online payment infrastructure at the National Public Service Portal with 63 ministries and localities, connecting payment using compatible QR codes between Vietnam A representative of BIDV receives the award from Napas and Thailand, the cashless payment solution on the first electric bus route of Vinbus. and contactless chip cards). In 2021, BIDV completed the implementation of Also in 2021, NAPAS collaborated with dual POS according to VCCS technical BIDV and its partners to implement 20 standards, with an average of 445 marketing and promotion programs transactions per POS. Total number of as well as work with media agencies one-way transactions via POS increased to deploy programs that contributed by 16 percent compared to 2020, to raise awareness and behavior in with 72 percent of POS transactions consumption, thereby promoting the generated via NAPAS. non-cash payment. NAPAS also shared with BIDV and its member organisations The “Dynamic Bank” award is given to about the plans and strategic projects banks that have actively accompanied that will be implemented in 2022 with a and joined NAPAS to implement key vision to 2025. projects as well as pilot projects including QR Thailand, VietQR,

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partners

M inh Nguyen

Partnering with NAPAS to launch DFS acceptance services over 37,800 POS at numerous tourist attractions, shopping areas, and retailers. The successful launch is the result of fruitful and mutual collaboration between NAPAS and BIDV with the purpose of providing the best possible benefits to Vietnamese clients and corporations.

NAPAS is processing domestic transactions for International Card Schemes in Vietnam in compliance with Circular No. 19/2016/NHNN-TT and its revisions. The partnership between NAPAS and DGN with the participation of BIDV is key to enabling this important acceptance footprint in Vietnam, local law compliance, and cooperation for development with local enterprises.

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ardholders of the global payments brand of Discover Financial Services (DFS) will be able to make payments at merchants throughout Vietnam from 22 December 2021. The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) is the first member of NAPAS to enable Discover Global Network (DGN) acceptance at merchants across Vietnam.

Implementation is being conducted under the Network Alliance agreement between the National Payment

Corporation of Vietnam (NAPAS) and Discover Global Network. With the successful cooperation between NAPAS and BIDV, from 22 December 2021, DFS cardholders can enjoy a hasslefree and convenient cashless payment method when travelling to Vietnam.

The launch of the service is a step towards welcoming foreign tourists in Vietnam once again as the border reopens within the “new normal”.

BIDV is the first member of NAPAS to accept cards on DGN. It is now operating a wide acceptance network in Vietnam, with 2,000 ATMs and

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DFS is an organization providing banking and payment services established in 1986. DGN, the global payments brand of Discover Financial Services, is now partnering with over 20 network alliances in markets like Turkey, Brazil, India, and South Korea.

In Vietnam, DGN and NAPAS have entered into an alliance partnership that allows cardholders from Discover, Diners Club International, and other affiliate networks of DGN to access the ATM and POS systems of NAPAS members, which include Vietnamese Acquirers in Vietnam.

partners

M anh Hai

Fostering sustainable development in the pandemic efforts, BIC has successfully overcome the Covid-19 “storm” and achieved positive and sustainable results.

Profit before tax hit a record for the first time

Despite the Covid-19 pandemic, BIC has reached the milestone of VND400 billion (USD17.6 million) in pre-tax profit for the first time

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n 2021, the Covid-19 pandemic with new variants, continued to develop complicatedly with long-lasting negative impacts on the economy in general and Vietnam’s non-life insurance market in particular. The fact that many provinces and cities had to implement social distancing has caused difficulties for production and business activities of enterprises and people’s income. Especially,

industries closely related to the nonlife insurance sector such as auto, service, tourism, and education… were significantly affected, causing negative impacts on the operations of non-life insurance companies.

According to the General Statistics Office of Vietnam, the market’s nonlife insurance premiums in the first nine month of 2021 only grew by 5 percent over the same period last year.

Experts forecast that the market’s 2021 growth rate is unlikely to exceed the 10 percent level compared to 2020.

Given the difficulties caused by the pandemic, with the right orientations and effective solutions and relentless

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In 2021, the total insurance premiums of BIC alone were estimated at over VND2,800 billion (USD123.3 million), up more than 10 percent compared to the last year. Of which, direct premiums were estimated at VND2,600 billion (USD114.5 million), an increase of more than 12 percent compared to 2020. With the sustainable development orientation, BIC continued to achieve good results and impressive milestones in 2021. The total pre-tax profit in 2021 was estimated at over VND400 billion (USD17.6 million), increasing by more than 10 percent compared to the last year, fulfilling 140 percent of the year’s plan. In particular, in 2021, BIC continued to be profitable in insurance business.

In the context of the complicated developments of the Covid-19 pandemic, BIC’s retail activities in 2021 achieved positive results. In particular, the bancassurance continued to record an impressive growth. The total revenues in 2021 of the channel were estimated at more than VND700 billion (USD30.8 million), growing by 35 percent from 2020. In the last 3 years, the channel’s revenue has seen an annual growth rate of around 70 percent. It can be said that BIDV and BIC are entering into the “golden era” in developing the bancassurance.

partners

This has once again affirmed the right vision and orientation of BIDV’s leadership for insurance activities.

In addition to the good business results, in 2021, BIC left its footprints in other activities. The company was reaffirmed by A.M. Best with credit rating assigned at B++; was honored with many accolades and awards such as Top 10 most prestigious non-life companies in Vietnam; Top 100 strongest brands in Vietnam… In particular, in 2021, the BIC brand was evaluated by Forbes Vietnam at USD10 million, ranking third in Vietnam’s insurance market (including both life and non-life insurance).

Turning difficulties into motivation In 2022, the Covid-19 pandemic situation in the world and in Vietnam is forecast to continue to be complicated.

However, this is also a motivation for BIC to be more determined to improve all aspects of operations, looking forward to conquering challenging goals in the coming year.

to promote the revenue growth in the bancassurance channel, taking advantage of the network and customer base of banks, while enhancing the expansion of relationship with credit institutions nationwide.

In 2022, BIC is set to do its best to accelerate the premium growth through deploying uniform solutions such as strengthening the organizational structure to suit the reality and business orientation; investing in developing new retail products and distribution channels; improving service quality before, during and after sales…BIC will also continue

With the motto “Innovation, Creativity, and Sustainable Development”, BIC considers digital transformation as one of the important factors to create breakthroughs in business activities in 2022 and the following years.

Specifically, BIC will strongly invest in IT system, strongly digitalizing all aspects of operations, with a focus on products and distribution channels

The logo of BIDV Insurance Corporation seen on a building in Hanoi

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to bring more practical values to the customers as well as fostering its sustainable development.

2021 marks the 16 years of BIC’s presence in the Vietnam’s insurance market. From the outset as a small company, the company has become one of the leading insurers in terms of market share of direct premiums; among Top 3 insurers with the highest rate of return in the market. BIC has affirmed it as one of the key business pillars and leading units among member companies of BIDV.

partners

Hu u Th anh

BSC sustains breakthrough growth In 2021, BIDV Securities Company (BSC) continued to achieve breakthroughs in all areas of business namely brokerage and margin lending, financial consulting, and proprietary trading.

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SC has fulfilled the dual goal of ensuring the health and safety of its employees and completed the business plan. BSC's operating revenue hit more than VND1,333 billion (USD58.7 million), with profit before tax reaching VND435.58 billion (USD19.2 million), 2.7 times higher than that in 2020 and 2.4 times higher than the business plan as approved at the April General Meeting of Shareholders.

Brokerage and margin lending continued to be a prominent contributor with revenue of VND810 billion (USD35.7 million), 2.2 times higher than 2020. Proprietary trading recorded a profit of VND190 billion (USD8.4 million), in which the stock investment generated an outstanding rate of return. Financial consulting activities also posted outstanding results with revenue of VND76 billion (USD3.4 million).

In 2021, BSC launched premium consulting services to large enterprises and corporations, with a series of

successful bond issuance advisory transactions which were highly appreciated by partners including Becamex IDC, Becamex ITC, Novaland Group, Hung Thinh Land, Intracom, Vietinbank... The total value of bonds issued under BSC’s advisory in 2021 hit more than VND10 trillion (USD440.5 million). For capital market services, typical consulting transactions included Vietnam Airlines charter capital increase by VND8 trillion (USD352.4 million) to more than VND22 trillion (USD969.2 million). BSC was selected as the capital consultant for Long Thanh International Airport investment project (ACV).

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In the year, BSC launched diverse securities investment consulting services to improve customer experience such as: opening securities accounts online with eKYC technology, Transaction consulting and customer support on Zalo platform (BSC Zalo), quick sending/depositing money into securities accounts via the number series 9618… With the goal of promoting cross-selling in BIDV system, BSC deployed securities transaction support points to 189 branches of BIDV. With positive business performance and improved product and service quality, in 2021 BSC was honored with many awards by prestigious

partners

organizations such as Best Investment Management Company (Global Banking and Finance - a prestigious magazine in the UK on criteria of quality of consulting services, stock and bond investment activities in Vietnam in 2021. BSC has cemented its position in the Top 10 securities companies with the largest market share by stock brokerage, fund certificates and covered warrants; the leading securities company with the largest brokerage market share of government bonds on the Hanoi Exchange; Top 10 securities companies with the largest brokerage market share in the derivatives market, among others.

The stock market is expected to continue drastic changes in 2022. A new securities trading system (KRX) will officially be put into operation in the first half of 2022 will be a foundation for the introduction of new products and features such as selling securities within the day (T+0) and selling pending securities. The new trading system will also help to solve the bottlenecks in cash margin trading, thereby upgrading the market and increasing the chances to be in the FTSE in 2022 - 2023 and MSCI in 2023 - 2024.

The successes achieved in 2021 have laid solid foundations for BSC to grow stronger in 2022 and beyond. BSC said it will continue to improve management capacity, financial capacity, ensure sustainable development goals and deliver the

best values to customers, shareholders and make significant contributions to the community and society. With a vision to become an investment bank, BSC is set to provide customers with a diversified and full range of products and services, expanding sales channels including wholesale and retail through transaction offices and support points across the country.

The company will also boost the digital transformation in line with the development trend of the stock market, investing significantly in people and information technology systems to bring the best, fast and convenient experiences to customers on the digital platform.

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BIDV Securities Company (BSC) was founded on 18 November 1999, and is now one of the leading and prestigious securities companies in Vietnam. The company was specialized in providing financial services and investment products to institutional and individual investors, domestic and foreign investment funds and banks. In 2010, BSC was equitized, becoming a joint stock company. BSC has increased its charter capital many times to serve its business activities. The company's current charter capital is VND1,221 billion (USD53.8 million).

products & services

Thu Trang

BIDV reduces trade finance and international money transfer fees

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rom 1 January 2022, BIDV is implementing a promotion program named BIDV Trade Up. Accordingly, businesses operating in the fields of import, export and international trade will receive a 50 percent reduction in service fees when conducting international money transfers, trade finance (LC issuance/ modification), and enjoy a reduction of 30 points in exchange rate for all foreign currencies transacted via BIDV iBank application.

This is the biggest promotion program of the year applicable to both new and existing corporate customers, with no limit on the number and value of transactions. This promotion not only helps customers experience the modern digital banking service but also boosts their business activities with partners around the world.

Besides the trade finance and international money transfer services,

complicated development of the Covid-19 pandemic.

With the BIDV Trade Up promotion, BIDV continues to affirm its position as the leading digital bank in Vietnam, accompanying businesses in the digital transformation roadmap, as well as supporting the prevention, control and fighting against the Covid-19 pandemic.

BIDV iBank also offers customers a variety of other online transaction services such as term deposit, 24/7 money transfer, payroll payment, payment to state budget, social insurance/health insurance, and currency trading, among others. The app connects directly with enterprises’ accounting/ERP system, thereby supporting the creation and sending of transaction documents right at the businesses’ management application software, ensuring convenience, accuracy and security, given the

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This is a practical program to show gratitude to customers on the occasion of BIDV’s 65th anniversary.

Thanks to relentless efforts in digital transformation, BIDV has been honored with “Excellent Digital Transformation Enterprise in 2021” award (as voted by Vietnam Digital Communications Association) and “Best Digital Bank in Vietnam” (as voted by The Global Finance). BIDV iBank was named the most innovative e-banking application in 2021 (Global Banking & Finance Review).

products & services

BI CH NGOC

A huge credit package at low rate for individuals In particular, for customers who borrow to buy houses via BIDV Home app in Hanoi and Ho Chi Minh City, the interest rate is only 6.2 percent/ year applicable for the first 6 months from the first disbursement. BIDV Home is an application that allows users to learn about property projects, apply for loans online and monitor disbursement progress via mobile devices.

Interest rates are only from 6.4 percent/year for other customers borrowing to buy houses in Hanoi and Ho Chi Minh City, and 6.6 percent/year for those in other areas.

From 01 January to 31 December 2022, BIDV is implementing a promotion program titled “65 years –Growing together” for personal customers with a total scale of VND200 trillion (USD8.8 billion) at an introductory rate of 5 percent/year.

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or a short-term credit package of VND100 trillion (USD4.4 billion) (term of 12 months or less) for production and business activities, customers can enjoy an interest rate of only 5 percent/year for term of less than 6 months and only from 5,5 percent /year for term from 6 to 12 months. The short-term credit package helps customers to timely access capital, recover business and production activities as well as adapt to the “new normal”.

For medium and long-term credit packages (term of 36 months or more) (home loans, auto loans; consumer installment loans secured by real estate) with a size of VND200 trillion, customers can enjoy interest rates from only 6.2 percent/year.

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Previously, BIDV announced to waive all transaction fees on BIDV SmartBanking starting 01 January 2022 and offered VND65 billion (USD2.9 million) to customers on the occasion of its 65th anniversary.

The promotion program “Growing together” at super flexible interest rates shows BIDV’s gratitude to customers who have trusted and accompanied it over the past 65 years.

The short-, medium-, and long-term lending rates have been stabilized by BIDV since the end of 2020 to support customers during the pandemic.

With VND200 trillion of cheap capital offered to the market, BIDV hopes to help customers overcome difficulties and support the economy to recover and grow in the new normal.

lifestyle

Tha nh Xuan

The Tet tradition in Vietnam

Banh chung, a special cake at Tet, made from sticky green beans, and pork

Vietnamese New Year, or ‘Tet’ is the most important and longest festival in Vietnam and is a time for family reunion and best wishes

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et takes place from the first day of the first month of the lunar calendar (around late January or early February) until at least the fifth day. Many Vietnamese prepare for Tet by cooking special dishes and cleaning their house. Some traditional customs during Tet include visiting relatives’ houses on the first days of the new year, ancestral worship, sending New Year’s greetings, and giving ‘lucky money’ to children and elderly people.

Tet is also an occasion for family reunions. During Tet, Vietnamese people usually return to their families.

Some return to worship at the family altar or visit the graves of their ancestors in their homeland.

Kumquat trees are popular during Tet, symbolising the fertility and fruitfulness

Like other Asian countries, Vietnamese believe that the colours of red and yellow will bring good fortune and these colours can be seen everywhere at Lunar New Year.

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In the two weeks leading up to Tet, the atmosphere is bustling. Streets and markets are full of people. Everyone is busy buying food, clothes, and decorations for their houses. Each family cooks special traditional foods such as

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to Vietnamese tradition, if good things come to the family on the first day of the lunar New Year, the entire following year will also be full of blessings.

Sweeping during Tet is a taboo since it symbolises sweeping away luck. It is also taboo for anyone who experienced a recent loss of a family member to visit anyone else during Tet. Tet is a time for family reunion

banh chung (a special cake made from sticky rice, green beans, and pork).

Vietnamese families buy peach blossom trees, kumquat trees, and orange trees to decorate their homes.

These symbolise the fertility and fruitfulness that the family hopes for in the coming year. People also buy flowers to decorate their homes such as chrysanthemums or orchids.

The first day of Tet is reserved for visiting family and relatives. Children wear their new clothes and give their elders the traditional Tet greetings before receiving lucky money (li xi) from them in exchange. The second day is set aside for special guests and close friends to visit, and the third day is for teachers and business associates.

Since the Vietnamese believe that the very first visitor a family receives in the year determines their fortune for the

Vietnamese Lunar New Year is an indispensable part of the life of all Vietnamese people. During Tet, many traditional festivals take place across the country.

entire year, a person of good temper, morality and success is a lucky sign for the host family and will be invited first into the house. This special activity is called xong dat, which is one of the most important rituals during Tet. According

Peach blossoms signal Vietnam’s Tet

The traditional greeting in Vietnam at Tet is “Chuc mung Nam Moi” (Happy New Year).

People also wish each other prosperity and luck. Common wishes for Tet include: • An khang thinh vuong (Security, good health, and prosperity) • Van su nhu y (May myriad things go according to your will) • Suc khoe doi dao (Plenty of health)

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Q u y nh Chi

Calligraphy -an ancient Tet art Invoking good luck through calligraphy is a cultural practice that reflects Vietnamese people’s high regard for scholarship.

T

et calligraphy reflects the importance of knowledge and people’s expectations for a prosperous year and happy life. People choose a word that represents their desire for the new year ahead. Older people tend to choose words such as “Health”, “Longevity” and “Happiness” while younger ones prefer words like “Wealth”, “Love” or “Success”.

Depending on the purpose and age of the recipients, the calligraphers will advise them on appropriate words.

Every year from the second day of the New Year, the Spring Calligraphy Festival is held, and hordes of people visit Van Mieu – Quoc Tu Giam (The Temple of Literature) to ask a

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Each word embodies the soul, knowledge, and personality of calligraphers, who are usually knowledgeable people. The recipients hope that through their work they will enjoy good luck.

calligrapher to scribe special words for them.

Here, visitors can also see images of Tet in Vietnam from the past.

Calligraphers wear traditional long gowns and prepare brushes, ink and red paper. Red is chosen as it is the most vibrant colour and in Vietnam is perceived as the colour of life and rebirth and a symbol of life and luck.

Besides traditional materials such as wood, stone, bamboo and silk, sometimes orange and gold-coloured paper is used for calligraphy.

Calligraphers will display the words, in both Vietnamese and Han script (Chinese) for people to choose. Their hands move gently and carefully to create skillful handwriting like dragons flying and phoenixes dancing on the red paper. Strokes vary from thin to thick, some vertical, and are always clear, strong and graceful. When printing the characters, calligraphers explain the meaning of each letter for receivers to ensure they fully understand.

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Beside single words, people often ask for the writing of a pair of sentences which must contain parallel sentences (cau doi). Hanging vertically in the living room of every family, the parallel sentences on red papers are inscribed with wishes like happiness, prosperity and longevity.

The writers of such parallel sentences have to follow a complex set of rules concerning the tone and meaning of the corresponding words.

As well as the Temple of Literature in Hanoi, a “Calligrapher Street” is also organised in many provinces and cities throughout the country, as part of the spring festivals or at temples and pagodas.

CSR

Hu ong Nguyen

Tet gifts for disadvantaged communities of cakes, 1 bottle of wine, 1 bottle of cooking oil, 1 pack of seasoning.

Priority subjects are poor public servants, poor workers, patients in localities with complicated pandemic, people in remote areas, location affected by natural disasters, families of war invalids and martyrs, families with meritorious services to the country, lonely elderly people, and orphans.

BIDV announces the donation of 65,000 sets of Tet gifts for the poor, Hanoi 2022

65,000 sets of gifts will be given to poor people and those affected by natural disasters and the Covid-19 pandemic across the country before the Lunar New Year (Tet) 2022.

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n 11 January 2022 in Hanoi, BIDV officially announced its annual program “Tet gift for the poor 2022”. The 65,000 Tet gifts program is one of the meaningful social security activities towards the 65th anniversary of BIDV. According to current prices, a set of Tet gift (worth VND500,000) consists of 1 kg of meat, 2 chung cakes, 1 box of jam, 1 pack

A set of Tet gift is worth VND500,00 (US22)

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Mr. Tran Xuan Hoang - Member of the Board of Directors, Chairman of the Trade Union of BIDV shared: "Besides giving Tet gifts to the poor as usual, this year BIDV pays a great attention to those affected by the Covid-19 pandemic such as poor employees, unemployed workers, those not returning to their hometown during Tet, poor patients in hospitals, etc. At the same time, BIDV prioritizes people in areas that are heavily impacted by the Covid-19 pandemic such as Ho Chi Minh City, Binh Duong, Dong Nai,... and localities that receive a large number of workers returning from the epidemic centers such as Thanh Hoa, Ha Tinh, Nghe An,...".

Giving Tet gifts to the poor is an annual meaningful activity carried out

by BIDV. This is the 14th year in a row, BIDV's staff have contributed to the implementation of this meaningful program for the community. The bank hopes that the program will bring a warm Tet to those in difficult circumstances. The program has been well received and recognized by localities and people across the country. Since 2009, BIDV has presented a total of nearly 800,000 gifts worth VND230 billion (USD10.1 million).