5 minute read
10 spotlights of BIDV in 2021
Duc Duong
As the longest-established and largest financial institution in Vietnam, BIDV shone spotlights on all areas of operation in 2021.
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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.
3 COMPREHENSIVE AND UNIFORM COMPLETION OF BUSINESS PLAN
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 billion), up 9.2 percent compared to 2020.
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, 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
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.
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 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.
