BIDV pioneers in applying IFRS 9

DIeu My

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

On 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 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.

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.