A year of breakthroughs for the corporate segment

Huyen truc

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 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

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.

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