A proud journey of moving forward with Vietnam

Phan Duc Tu BIDV Chairman

BIDV’s development history is a proud and glorious journey of the longest-established commercial bank in Vietnam, which has always undertaken great tasks for the country.

GLORIOUS MISSIONS

managing capital sources for the construction of works for economic development. Some typical works include Thong Nhat railways, VietsovPetro, Tri An Hydropower, Da Nhim Hydropower, Vinh Phu Paper, and Dau Tieng Hydraulic System.

On 24 June 1981, the Council of the Government issued a decision to move the Bank for Construction under the Ministry of Finance to establish the Bank for Investment and Construction of Vietnam under the State Bank of Vietnam. The main task of the bank was still allocating capital and providing loans for construction and starting application of borrowing – repayment mechanism to gradually eliminate subsidy in capital construction. Under this mechanism, the bank allocated funding to build great works such as Ho Chi Minh Mausoleum, Hoa Binh and Tri An Hydropower Plants, Ha Long Shipbuilding Factory, Chua Ve Port (Hai Phong), Thang Long Bridge, Chuong Duong Bridge, Vietnam-Soviet Cultural Friendship Palace, amongst others, which formed solid foundations for the socio-economic development of the country.

Following the Ordinances on the State Bank and on banks, credit cooperatives and financial companies, on 14 November 1990, the Council

65 years of growth with different names Bank for Construction of Vietnam, Bank for Investment and Construction of Vietnam, then Bank for Investment and Development of Vietnam, and now the Joint Stock Commercial Bank for Investment and Development of Vietnam, BIDV has made great contributions to the national construction and defense, the innovation, industrialization, modernization and international integration of the country.

The Bank for Construction of Vietnam (the predecessor of the Joint Stock Commercial Bank for Investment and Development of Vietnam - BIDV) was established on 26 April 1957 under the Prime Minister’s Decree 177/TTg.

The Bank for Construction of Vietnam was tasked with providing timely capital for national and civil projects, effectively supporting the socialism construction in the North and the struggle for liberation of the South. The bank allocated capital for many large projects in the North such as Thuong Dinh industrial zone; mechanical plants in Hanoi; Thai Nguyen iron and steel factory; Ha Bac fertilizer company; power plants in Hanoi, Uong Bi, and Nghe An province; coal mines in Quang Ninh province; and Bac Hung Hai hydropower project, amongst others.

As soon as the South was liberated in 1975 and the country was reunified, the Bank for Construction of Vietnam established branches in the South, expanding its network throughout the country. The Bank utilized all resources, effectively

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

of Ministers issued a decision on establishing the Bank for Investment and Development of Vietnam (BIDV) through conversion from the Bank for Investment and Construction of Vietnam. BIDV made breakthroughs in eliminating subsidies in capital construction and investment, developed new products and services to meet the needs of the market.

Since 1 January 1995, BIDV has officially operated under the model of a commercial bank. Although starting commercial business late compared to Vietnam's state-owned banks, with desire for dedication, steadfast stance, solidarity, and creativeness, BIDV has overcome difficulties and gained important achievements in institutional development, network, products, services, technology, and external relations. During the subsequent 2 decades, BIDV made comprehensive and strong innovation and breakthroughs, operating safely and efficiently, rising to become a high-class bank with sufficient competitiveness and confidence to join the international playground.

Following the policies of the Party and State, BIDV was successfully equitized in May 2012 and officially transformed into a joint stock commercial bank. BIDV has shifted comprehensively and uniformly into a modern and universal commercial banking model, identifying customers as the center of business, technology and human resources as values and competitive tools as the core. BIDV has also made progress in institutional innovation and governance capacity. The bank’s business activities have grown robustly, actively contributing to the development of the banking industry and the country.

A landmark in BIDV's history was that in 2019, the bank entered into a strategic cooperation agreement with Hana Bank (a member of Hana Financial Group, Korea). This was the largest M&A deal in the history of Vietnam's banking industry, which has brought great benefits to BIDV and to the State – the controlling shareholder. The deal offers opportunities for BIDV to fundamentally change its governance model, improve financial capacity, management capacity, risk management, competitiveness to better meet the needs of customers.

BUILDING ON ACHIEVEMENTS TO MOVE FORWARD

Over the past 65 years of operation with more than 25 years operating as a fully-fledged commercial bank, from a single-owned bank operating in a single field in the domestic environment and serving purely state-owned enterprises, BIDV today has become a multi-owned financial institution operating in different countries and territories with transparent operation in accordance with international standards and practices. From a specialized bank with just 11 branches and 200 employees, BIDV today boasts a network of 1,085 branches and transaction offices at home and abroad, 10 subsidiaries and presence in Laos, Cambodia, Myanmar, Russia, Taiwan (China) with a staff force of more than 27,000 well-trained and professional people.

BIDV is now serving more than 15 million customers, has established relationships with more than 2,300 financial institutions in 127 countries and territories around the world. At the end of 2021, BIDV was the largest commercial bank in Vietnam with total assets reaching over VND1.76 quadrillion (USD77.4 billion), and charter capital of VND50,585 billion (USD2.23 billion) – the highest amongst Vietnamese commercial banks. BIDV’s mobilized capital reached over VND1.5 quadrillion (USD66 billion) and loans to customers reached over VND1.36 quadrillion (USD60 billion). Nonperforming loan ratio was 0.81 percent and bad debt coverage ratio at 235 percent. BIDV's market capitalization value is more than VND242,300 billion (USD10.5 billion), ranking fourth in the entire market. BIDV has paid over VND28 trillion (USD1.23 billion) to the State budget over the past 5 years, and is among the largest taxpayers in Vietnam.

Besides business activities, during its long history of development, BIDV has been one of the pioneers in implementing social corporate responsibility, considering it one of the core values that the bank has spared no effort to implement. Social security activities are implemented by BIDV in many fields such as: education, health care, disaster relief, building solidarity

houses, construction of bridges and roads, donation of New Year gifts to the poor, contributing significantly to sustainable poverty reduction and the national target programs. BIDV’s total realized fund for social security activities in the period 2007 - 2022 reached more than VND4,300 billion (USD190 million).

especially, over the past 2 years, when Vietnam and the world had to fight against the Covid-19 pandemic, BIDV has promoted its role into full play, implementing many solutions to ensure business continuity to provide banking and financial services to the economy; actively supporting businesses and people. In two years 2020 and 2021, BIDV had proactively reduced its income by VND14,300 billion (USD630 million) to support customers affected by the Covid-19 pandemic. The bank also actively implemented social security activities with a total budget of more than VND700 billion (USD30.8 million).

For significant contributions, BIDV has proudly been awarded many noble medals and honours by the Party and State of Vietnam such as Labour Hero in the innovation period; Ho Chi Minh Medal; First and Third class Independence Medals; Labor Medals... BIDV was also awarded the Friendship Medal, First-class Independence Medal, and First-class Labour Medal by the Party and State of Lao PDR. BIDV was awarded the First-class Royal Order of Cambodia, the Order of Monisaraphon - Moha Sereivath class by the King and Royal government of Cambodia. BIDV has also been honored by prestigious domestic and international organizations as Top 2,000 largest public companies in the world (Forbes), the world’s Top 500 most valuable bank brands (Brand Finance), Best SMe Bank in Southeast Asia; Best Retail Bank in Vietnam, Outstanding Digital Transformation Bank; enterprise for the community, among others.

The path ahead is opening up both opportunities and challenges for BIDV. BIDV has actively developed a business development strategy to 2025 with a vision to 2030 with the goal of becoming a leading financial institution in Southeast Asia, having the best digital platform in Vietnam and being one of the 100 largest banks in Asia. This is the guideline for BIDV to implement its annual business plan and the foundation for the bank to continue its efforts and promote its role as a State primarily owned joint stock commercial bank, significantly contributing to the strong and prosperous development of Vietnam.