Annual Report 2019

ANNUAL
REPORT
ANNUAL
REPORT
CONTENTS
SPOTLIGHTS MANAGEMENT’S REPORT
8. Chairman’s message 90. Operating environment and business results in 2019
10. Key performance metrics 92. Financial situation
12. KEB Hana Bank becomes BIDV’s strategic shareholder 94. Innovation in governance, organizational structure and management policies
14. Selected awards and recognitions 98. Business orientation for 2020
100. Management’s report on responsibilities to environment, society and employees
BIDV OVERVIEW
20. BIDV at a glance CORPORATE GOVERNANCE
22. Key milestones
24. Business lines and location 104. Operation of the Board of Directors in 2019
26. Organizational structure 112. Operation of the Supervisory Board in 2019
28. Board of Directors 115. Transactions, remunerations and benefits of the BOD, Board of Management and Supervisory Board
32. Board of Management
37. Supervisory Board
39. Development orientation SUSTAINABLE DEVELOPMENT REPORT
40. External and internal risks 120. Overview of the sustainable development report
126. Sustainable economic development
BUSINESS OPERATION 2019 130. Investing in people development
133. Investor relations
50. Business situation 137. Customer orientation
55. Basel II implementation results at BIDV 150. Contributing to environment improvement
56. Organization and people 157. Information disclosure under GRI standards
60. Investment and project performance
70. Financial overview
71. Shareholding structure, changes to shareholders’ equity FINANCIAL REPORT
162. Independent auditors’ report
DIRECTORS’ REPORT 164. Consolidated balance sheets
166. Consolidated income statement
74. Board of Directors’ evaluation on BIDV’s performance 167. Consolidated cash flow statement
83. Board of Directors’ evaluation on the Management’s performance 169. Notes to the financial statements
84. Orientation of the Board of Directors for 2020
NETWORK
178. Branches
181. Subsidiaries
182. Joint ventures
182. Affiliates
4 ANNUAL REPORT 2019 ANNUAL REPORT 2019 5

CHAIRMAN’S MESSAGE
KEY PERFORMANCE METRICS
SPOTLIGHTS KEB HANA BANK BECOMES BIDV ’S STRATEGIC

SHAREHOLDER
SELEC TED AWARDS AND RECOGNITIONS

by 14.3% compared to the previous year. BIDV Vietnam” for the fifth consecutive year; was honoured
CHAIRMAN’S continued to maintain its position as the largest

commercial bank by total assets and charter capital
with “Best SME deal” as well as receiving the “Digital
Transformation” award.
MESSAGE with total assets reaching over VND1.49 quadrillion.

The non-performing loans ratio was at a low level of
The success of BIDV is attributed to the solidarity,
unanimity and relentless efforts of more than
1.75%, provisions for risks were made according to
26,000 employees, and the sharing, cooperation
regulations, VND8,168 billion was paid into the State
and companionship of financial institutions,
The success of BIDV is attributed budget, and ROE and ROA ratios were 12.94% and
businesses, customers and partners, both domestic
to the solidarity, unanimity 0.61% respectively.
and international. As a bank that stays true to its
and relentless efforts of more As one of the 10 commercial banks selected by the commitment of remaining professional, friendly and
than 26,000 employees, and State Bank of Vietnam to implement Basel II, BIDV has modern, BIDV has increasingly shone on the path to
the sharing, cooperation and always demonstrated its determination to apply the overcoming challenges and achieving success.
companionship of financial Basel standards. On 29 November 2019, the governor
2020 is the last year of implementation of the plan
institutions, businesses, of the State Bank of Vietnam approved BIDV to apply
for 2016-2020; and the final year of implementing
customers and partners, both Basel II with effect from 1 December 2019, ahead
the scheme on restructuring credit institutions in
domestic and international. of the effective date of Circular 41/2016/TT-NHNN.
association with handling bad debt. With the 2020
Recognized by SBV for early completion of Basel II,
As a bank that stays true to action motto of “Discipline – Accountability - Efficiency
BIDV continues to affirm its position as one of the
its commitment of remaining - Breakthrough”, BIDV will vigorously implement
leading banks in Vietnam by total assets, charter capital
professional, friendly and uniform solutions and measures to effectively perform
and standardized risk management. This lays solid
modern, BIDV has increasingly monetary policy, improve operational quality and
foundations for BIDV to continue to integrate, develop
shone on the path to overcoming business efficiency; facilitate and meet the economy’s
and meet international modern banking standards.
challenges and achieving demands for banking products and services, continue
Maintaining the position as the leading bank in to affirm its position as the leading bank in the banking
success.
applying information technology in the banking system and contribute to building a thriving and
Dear shareholders, customers and partners, system, in 2019 BIDV completed the formulation of the prosperous country.
digitalization strategy; officially launching its Digital
On behalf of the Board of Directors, I would like to
The year 2019 ended amid an unstable world, one Banking Center – a creative center, which produces
In 2019 BIDV continued to make breakthroughs, extend my sincere thanks to the leadership and
in which global economic growth was both lower advanced and modern products for customers and
successfully and comprehensively completing all more than 26,000 employees for their dedication. In
than expected and the previous years, mainly due to tests new business models on the digital platform.
business targets. The successful offering of over particular I would like to express my deep gratitude to
the slow growth in developed economies and China 603 million shares totalling VND20,295 billion to In 2019, BIDV continued to assert the social the valued customers, shareholders and partners who
and the slow recovery of emerging countries, along strategic investor KEB Hana Bank (Republic of Korea) responsibilities of the leading financial institution in have always trusted and accompanied BIDV during the
with escalating US-China trade tensions. Despite marked a new milestone in BIDV’s development and Vietnam. Hundreds of national works and programs 62 years of development towards a sustainable and
this, Vietnam’s economy remained positive: GDP international integration process and was the largest in the fields of health care, education, housing for the prosperous future.
growth maintained a high rate of 7.02% thanks to deal with a foreign strategic investor in Vietnam’s poor, disaster relief and Tet gifts were implemented
stable growth in industrial production, consumption May I wish you continued development and success.
banking system to date. The deal was of great with a total budget of over VND300 billion. BIDV also
and services; and inflation was well controlled with significance to BIDV, giving the bank a huge financial left its footprint in 2019 as a humane bank, catching Sincerely,
the average CPI increasing at a low level over the source that helped increase its charter capital to up with the dynamic development of life through the
past three years. The State Bank of Vietnam (SBV) VND40,220 billion, the highest among Vietnam’s credit running event “Warm Tet for the poor 2020”.
actively and flexibly operated monetary policy, institutions, while also improving financial capacity, ON BEHALF OF THE BOARD
synchronously using various tools and regulating With the outstanding achievements seen over the CHAIRMAN
ensuring capital adequacy ratio, and promoting
the money supply and total means of payment year, BIDV took a firm position in the world’s Top 2000
growth and sustainable development for the bank.
at a reasonable level; while monetary policy was largest public companies for the fifth consecutive
Along with the successful foreign strategic sale, BIDV year, was named amongst the Top 400 largest banks
closely coordinated with both fiscal and price policy,
completed its business plan targets. In particular, Phan Duc Tu
positively contributing to macroeconomic stability in the world, the leading bank in Vietnam on the
profit before tax reached VND10,732 billion, increasing brand strength growth index; “Best retail bank in
and currency value.

KEY PERFORMANCE
METRICS
PROFIT BEFORE TAX
TOTAL ASSETS Unit: VND billion
Unit: VND billion 1,489,957 10,732
1,312,866 9,391
1,202,284 8,665
7,668
13.5% 14.3%
1,006,381
GROWTH GROWTH
COMPARED TO 2018 COMPARED TO 2018
2016 2017 2018 2019 2016 2017 2018 2019
OWNERS’ EQUITY
Unit: VND billion RETURN ON ASSETS (ROA)
77,653 Unit: %
0.67%
0.63% 0.61%
54,490 0.59%
48,834
43% 0.61%
44,115
GROWTH
COMPARED TO 2018 IN 2019
2016 2017 2018 2019 2016 2017 2018 2019
TOTAL OPERATING INCOME RETURN ON EQUITY (ROE)

Unit: VND billion Unit: %
48,121
44,256 14.94%
39,017
14.33% 14.48%
30,399
8.7% 12.94%
12.94%
GROWTH IN 2019
COMPARED TO 2018
2016 2017 2018 2019

2016 2017 2018 2019

This is the biggest M&A deal with a strategic investor
KEB HANA BANK in Vietnam’s banking industry history and is a double

transaction. KEB Hana Bank has invested capital to own
a 15 percent stake in BIDV with a holding period of at
BECOMES BIDV’S least 5 years. At the same time, BIDV receives long-term
technical assistance from Hana Financial Group and KEB
Hana Bank.
STRATEGIC SHAREHOLDER Addressing the event, Mrs. Nguyen Thi Hong, Deputy
Governor of the State Bank of Vietnam, affirmed: The
cooperation between the two financial institutions
On 11 November 2019 in Hanoi, BIDV officially
not only brings benefits to the two banks but also the
announced KEB Hana Bank as its foreign strategic
business community of Vietnam and Republic of Korea.
shareholder with 15% ownership of BIDV’s charter
KEB Hana Bank’s large investment in Vietnam is a clear
capital. BIDV and KEB Hana Bank also signed a strategic
testament to the optimism and confidence in the stability
cooperation agreement under the witness of H.E. Mr.
and development potential of Vietnam’s economy and
Vuong Dinh Hue, Politburo member, Deputy Prime
the finance and banking industry in general and BIDV in
On 11 November 2019 in Hanoi, BIDV officially Minister and leaders of Vietnam’s governmental
particular.
announced KEB Hana Bank as its foreign agencies, the South Korean Ambassador to Vietnam,
relevant agencies of the Republic of Korea and Mr. Park Noh Wan, South Korean Ambassador to Vietnam
strategic shareholder with 15% ownership of From left to right: Mr. Ji Sung Kyu, Chief Executive Officer of
businesses of the two countries. shared: In recent years, competition between not only KEB Hana Bank, Mr. Phan Duc Tu, Chairman of BIDV’s Board of
BIDV’s charter capital. BIDV and KEB Hana
countries but also businesses has become extremely Directors, Mr. Kim Jung Tai, Chairman of Hana Financial Group,
Bank also signed a strategic cooperation Upon the approval of the government and competent
fierce. We will not be able to survive and develop if we fail and Mr. Le Ngoc Lam, Senior Executive Vice President in charge of
authorities of Vietnam and the Republic of Korea, BIDV
agreement under the witness of H.E. Mr. to promote our strengths and tackle weaknesses. With a BIDV’s Board of Management join the ceremony on announcing
and KEB Hana Bank completed the procedures and
Vuong Dinh Hue, Politburo member, Deputy good start, the strategic partnership between BIDV and the “BIDV – KEB Hana Bank Education Development Program”.
legal documents relating to the deal as regulated by
Prime Minister and leaders of Vietnam’s KEB Hana Bank will be fruitful and generate a great source
the laws of the two countries, laying foundations for and exchanging knowledge and languages between
governmental agencies, the South Korean
of strength for the development of both sides.
KEB Hana Bank to officially become BIDV’s first foreign Vietnam and Republic of Korea.
Ambassador to Vietnam, relevant agencies of strategic shareholder. According to Mr. Ji Sung Kyu, Chief Executive Officer of
The strategic partnership not only marks a new turning
the Republic of Korea and businesses of the Particularly, BIDV issued over 603.3 million shares as a
KEB Hana Bank, KEB Hana Bank’s investment in BIDV is
point in the history of BIDV - the oldest commercial
two countries. the first strategic investment project of a Korean bank in
private placement to KEB Hana Bank with a total value bank in Vietnam but also an important advance in
Vietnam, which not only boosts the banking efficiency
of nearly VND20,300 billion. After issuing the shares to BIDV and KEB Hana Bank cooperation. It also reaffirms
but also synergizes other areas. He expressed his hope
KEB Hana Bank, BIDV’s charter capital increased from the cooperation of the leading businesses of Vietnam
that KEB Hana Bank’s becoming BIDV’s strategic investor
VND34,187 billion to VND40,220 billion - the highest in and Republic of Korea in an effort to further promote
will help diversify strategic investment projects and
the Vietnamese banking system. economic and diplomatic relations between the two
enhance cooperation between financial institutions of the
countries.
two countries in the future.
Mr. Phan Duc Tu, Chairman of BIDV’s Board of Directors, KEB Hana Bank is a member of Hana
said: The strategic partnership with Hana Financial Group Financial Group (Republic of Korea) -
is of great significance to BIDV, marking an important one of the largest financial groups in
milestone in the bank’s development and international
Asia, providing comprehensive financial
integration. With long-term strategic support from Hana
Financial Group and KEB Hana Bank, BIDV will have the activities. KEB Hana Bank boasts an
opportunity to fundamentally change the governance extensive operating network with 752
model, improve management capacity, risk management; branches in Republic of Korea and 176
develop modern products and services of high branches in 24 countries. As of 30 June
technology content, and strengthen competitiveness to
2019, the bank’s total assets stood at
better meet the needs of customers and contribute to
USD308.2 billion. KEB Hana Bank is the
national development.
best retail bank, the most preferred
Also during the event, senior executives of BIDV and KEB brand, and the leading bank in foreign
Hana Bank announced “BIDV – KEB Hana Bank Education
exchange and trade finance in the
Development Program” with a budget of USD1 million
per year, and contribution ratio of 50-50. The program Republic of Korea.
focuses on education, training cooperation, improving
Mr. Phan Duc Tu, Chairman of BIDV’s Board of Directors (left) and Mr. Ji Sung Kyu, Chief Executive Officer of KEB Hana Bank sign the
strategic cooperation agreement.
SELECTED AWARDS
AND RECOGNITIONS 2019
INTERNATIONAL
Top
3 Top
300 Top
2,000 AWARDS AND
RECOGNITIONS
Most valuable banking brands World’s most valuable banking
World’s largest public companies
in Vietnam (Brand Finance). brands (ranking 279th, up 31
(Forbes).
places from 2019 - Brand Finance).
Top
100 Top
50 5 Best SME deal
years in a row (2015-2019)
(Asian Development Bank
Largest public firms in Vietnam’s valuable brands
Best retail bank in Vietnam; Best payment - ADB).
Vietnam (Forbes Vietnam). (Forbes Vietnam).
merchant service in Vietnam
(The Asian Banker).
SME Bank of the year, Corporate Client

Initiative of the Year, Vietnam Domestic
Foreign Exchange Bank of the Year for
2 years in a row (2018-2019)
(Asian Banking & Finance).
Best SME Bank Vietnam for 2 consecutive years

2018-2019 (Alpha Southeast Asia).

Best DCM House in Vietnam for 2 years
running (2018-2019); Best bond issuance
Vietnam (Global Banking and Finance
Top
10 Top
10 Outstanding retail bank for 4
consecutive years (2016-2019),
Largest enterprises in Vietnam for 3 years in a row Vietnam’s commercial Outstanding E-bank for the
Review).
(2017-2019) (announced by Vietnam Report and banks (Vietnam third time (2014, 2015, 2019)
VietnamNet in Top 500 Vietnam’s largest Report). (VNBA and IDG).
enterprises – VNR500).
INTERNATIONAL DOMESTIC
AWARDS AND AWARDS AND
RECOGNITIONS RECOGNITIONS
Straight Through
Processing (STP) award Top
10
Top
10
(JP Morgan Chase, Bank Sustainable businesses for 2 years
of New York Mellon, in a row (2018-2019) (Vietnam
Vietnam’s Excellent Brands
Citibank, and Wells Business Council for Sustainable
(Vietnam Economic Times).
Fargo). Development and VCCI).
Best credit card in Vietnam for 4 consecutive years (2016-

2019), Best card payment service POS/ATM for the third time Vietnam Digital Transformation
(2016, 2017 and 2019), Best Mobile Banking Support award award for BIDV iBank solution
for BIDV SmartBanking (International Finance). (VDCA).
Vietnam ICT excellence for 3 products:
10
Applying RPA automation technology
Leadership in contactless Top (Robotic Process Automation); Program of
active terminals penetration overseas remittance payment portal for
2019 (VISA). individual customers; and Managing BIC
Vietnam’s Trust & Use award for
Insurance revenue through BIDV system
tuition fee collection service
And many others. (Bancassurance System Management – BSM)
(Trust & Use organizer).
(VINASA).
And many others.

BIDV AT A GLANCE
KEY MILESTONES
BUSINESS LINES AND LOCATION
ORGANIZATIONAL STRUC TURE
BOARD OF DIREC TORS
BOARD OF MANAGEMENT
BIDV
SUPERVISORY BOARD
DEVELOPMENT ORIENTATION
OVERVIEW 2019 EXTERNAL AND INTERNAL RISKS

BIDV
AT A GLANCE
FULL NAME CHAIRMAN OF THE BOD SWIFT CODE

Joint Stock Commercial Bank MR. PHAN DUC TU BIDVVNVX
for Investment and Development
SENIOR EXECUTIVE VICE PRESIDENT
of Vietnam IN CHARGE OF BOM:
MR. LE NGOC LAM
ABBREVIATION STOCK TICKER

BIDV BID
HEAD OFFICE
INTERNATIONAL TRADING NAME BIDV Tower, 35 Hang Voi street, TOTAL NUMBER OF SHARES
Joint Stock Commercial Bank Hoan Kiem district, 4,022,018,040
for Investment and Development Hanoi, Vietnam CỔ PHẦN
of Vietnam
BUSINESS REGISTRATION NUMBER CHARTER CAPITAL PAR VALUE

0100150619 VND40,220,180,400,000 VND10,000
TELEPHONE FAX www.bidv.com.vn

+84-24-22205544 +84-24-22200399
AUDITOR
DELOITTE VIETNAM COMPANY LIMITED.

KEY
MILESTONES
26 Apr 24 Jun 14 Nov 18 Nov 01 May 24 Jan 11 Nov

1957 1981 1990 1994 2012 2014 2019
Established as Renamed as the Renamed as Transformed into Successfully BIDV shares Signing the strategic
the Bank for Bank for Investment the Bank for a fully commercial equitized, converted officially listed on cooperation
Construction of and Construction Investment and bank. into Joint Stock Ho Chi Minh City agreement and
Vietnam, under of Vietnam, under Development of Commercial Bank Stock Exchange. announcing
the Ministry of the State Bank of Vietnam (BIDV). for Investment and KEB Hana Bank
Finance. Vietnam. Development of (a member of Hana
Vietnam. Financial Group) as
its foreign strategic
shareholder.

BUSINESS LINES
AND LOCATION
189 BRANCHES IN VIETNAM;
01 BRANCH IN MYANMAR 190
TRANSACTION OFFICES 871
SUBSIDIARY UNITS (BIDV TRAINING
AND RESEARCH INSTITUTE, INFORMATION 02
BIDV expanded its network TECHNOLOGY CENTER)
MAIN BUSINESS LINES DOMESTIC REPRESENTATIVE OFFICES
both locally and abroad with
(HO CHI MINH CITY, DA NANG CITY); 02
Credit activities (lending, discount, guarantee, total transaction points as of 31
OVERSEAS REPRESENTATIVE OFFICES
credit card issuance, etc.); December 2019 consisting of: (CAMBODIA, LAOS, CZECH REPUBLIC, 05
TAIWAN (CHINA), RUSSIAN FEDERATION)
Fund mobilization (savings, bond, debenture);
Trade finance services;
Payment services
Branches
(domestic and international payment);
in Hanoi 34
Account services;
Branches
Bank card services; in Ho Chi Minh City 36
Other services under the Certificate of Branches
Business Registration, etc. in northern highlands region 17
Branches
in key northern region outside Hanoi 18
Branches
in Red River Delta region 06
Wide domestic operating network Branches
in all provinces and cities helps

in northern central region 14
BIDV access a large customer base Branches
in southern central region 15
nationwide and vicinities; provide
various services for diverse customer Branches
in central highlands region 12
segments from individuals, households
Branches
to different types of organizations and in key southern region outside
15
businesses. Branch network by region Ho Chi Minh City
is as follows: Branches
in Mekong Delta region 22

ORGANIZATIONAL STRUCTURE GOVERNANCE CHART
)As at 31 December 2019( )As at 31 December 2019(
BANK FOR INVESTMENT AND GENERAL MEETING OF SHAREHOLDERS

DEVELOPMENT OF VIETNAM JSC
SUPERVISORY BOARD
SUBSIDIARIES BANKING JOINT VENTURES AFFILIATES
GENERAL MEETING OF SHAREHOLDERS
INTERNAL AUDIT DEPARTMENT
BIDV MetLife Life
BIDV Asset Management Departments/Centers Vietnam Aircraft Leasing
Insurance Limited
Company Ltd. at Head Office Joint Stock Company SUPERVISORY BOARD
Liability Company
BOARD OF DIRECTORS
BIDV Vietnam-Russia Cambodia-Vietnam INTERNAL AUDIT DEPARTMENT

Insurance Corporation
Branches
Joint-Venture Bank Foods Company Ltd.(*) STRATEGY AND
ORGANIZATION COMMITTEE
BOARD OF DIRECTORS RISK MANAGEMENT

BIDV Securities BIDV Tower BOD’S SECRETARIAT
Representative Offices COMMITTEE
Joint Stock Company Joint-Venture Company
STRATEGY AND
NOMINATION COMMITTEE
ORGANIZATION COMMITTEE
Information
MHB Securities Company
Technology Center RISK MANAGEMENT
INFORMATION TECHNOLOGY
BOD’S SECRETARIAT
COMMITTEE
COMMITTEE
International Investment
BIDV Training
BIDV – KEB HANA BANK
and Development NOMINATION COMMITTEE
and Research Institute STRATEGIC COOPERATION
Company Ltd. COMMITTEE
INFORMATION TECHNOLOGY
Bank for Investment BOARD OF MANAGEMENT COMMITTEE
Nam Do Debt
and Development Settlement Committee
of Cambodia Plc. BIDV – KEB HANA BANK
STRATEGIC COOPERATION
ALCO COUNCIL RISK COUNCIL
COMMITTEE
Lao-Viet Insurance Joint
-Venture Company(*) CAPITAL MANAGEMENT BOARD OF MANAGEMENT
COUNCIL OTHER COUNCILS
BIDV-SuMi TRUST ALCO COUNCIL RISK COUNCIL

Leasing Company Ltd. WHOLESALE BANKING OPERATIONS
CAPITAL MANAGEMENT
COUNCIL OTHER COUNCILS
RETAIL BANKING FINANCE & ACCOUNTING
Lao-Viet Joint Venture Bank
WHOLESALE BANKING
TREASURY OPERATIONS
INVESTMENT
Cambodia - Vietnam
Insurance Company(*)
RETAIL
IT AND BANKING
DIGITAL BANKING FINANCE & ACCOUNTING
BUSINESS SUPPORT
Cambodia - Vietnam
Securities Company(*) (*) indirect ownership via subsidiaries RISK TREASURY
MANAGEMENT INVESTMENT
SUPERVISION AND COMPLIANCE
IT AND DIGITAL BANKING

MANAGEMENT TEAM BUSINESS SUPPORT
BRANCH STRUCTURERISK MANAGEMENT SUPERVISION AND COMPLIANCE

CUSTOMER
MANAGEMENT RISK MANAGEMENT OPERATIONS INTERNAL AFFAIRS SUBSIDIARY UNITS
MANAGEMENT TEAM
CUSTOMER
MANAGEMENT RISK MANAGEMENT OPERATIONS INTERNAL AFFAIRS SUBSIDIARY UNITS

Mr. Phan Duc Tu
CHAIRMAN
Born in 1964.
Bachelor of Economics.
Joined BIDV in 1987.
Elected as Chairman of the BOD since 15 November 2018.
Chairman of Vietnam Banks Association.
BOARD OF DIRECTORS
Previous posts: BOD member and CEO, BIDV Senior Executive
Vice President, Head of Human Resources, Head of BIDV
Quang Ngai Branch.
Mrs. Nguyen Thi Thu Huong

MEMBER
Born in 1967.
Master of Business Administration.
Joined BIDV in April 2019.
Elected as BOD member since 26 April 2019.
Previous posts: Director General of Banking Inspection &
Supervision under the State Bank of Vietnam,
Deputy Director General of Banking Inspection &
Supervision, Head of Division of the State Bank Inspectorate.
The Board of Directors (BOD) is the highest
authority, acting in the name of BIDV in
terms of making decisions, exercising
rights and obligations of BIDV which
Mr. Tran Thanh Van
are out of jurisdiction of the General MEMBER
Meeting of Shareholders. The BOD also has
Born in 1961.
responsibility of defining and developing Bachelor of Economics.
plans and policies such as business Joined BIDV in 1983.
administration policies, business strategies Member of the Board of Members and CEO of International
and overall development plans of BIDV. Investment Development Two-Member Limited Liability
Company (IID).
Previous posts: BIDV Senior Executive Vice President, Head of
As at 31 December 2019 the BOD consisted BIDV Da Nang Branch, Deputy Head of BIDV Da Nang Branch,
Deputy Head of Bank for Investment and Construction
of the following members:
- Quang Nam-Da Nang Branch.

Mrs. Phan Thi Chinh Mr. Yoo Je Bong
MEMBER
MEMBER
Born in 1968.
Born in 1962.
Bachelor of Economics.
Elected as BIDV’s BOD member since 27 December 2019.
Previous posts: Deputy President of Hana Financial Group;
BOD member of the National Payment Corporation of
Chief Officer of Global Strategy Group, Hana Financial Group,
Vietnam (NAPAS), and Chairwoman of BIDV Tower Joint
Managing Director in charge of Global Business Group,
Venture Company.
KEB Hana Bank.
Previous posts: BIDV Senior Executive Vice President, Head
of Finance Department.
Mr. Ngo Van Dung

MEMBER Mr.Le Viet Cuong
INDEPENDENT MEMBER
Born in 1968.
Master of Finance and Banking. Born in 1950.
Joined BIDV in 1998. Bachelor of Finance and Banking.
Elected as BOD member since 1 June 2015. Elected as independent BOD member since 22 April 2017.
Chairman of the BOD of BIDV Securities Company (BSC) Previous posts: Chief of Office under the State Bank of
and BIDV Asset Management Company (BAMC). Vietnam, BIDV’s BOD member.
Previous posts: Head of Risk Management Department;
Head of BIDV Hanoi Branch.
Mr. Pham Quang Tung

MEMBER
Changes to the Board of Directors in 2019:
Born in 1971.
Mrs. Nguyen Thi Thu Huong has been elected as a BOD member for
Economic Engineer, Bachelor of Law.
Elected as BOD member since 21 April 2018. the 2017-2022 term since 26 April 2019.
Chairman of the Board of Members of BIDV-SuMi TRUST
Mr. Bui Quang Tien and Mr. Nguyen Van Loc - BOD members have
Leasing Co., Ltd (BSL).
Previous posts: Chairman of Vietnam Development Bank (VDB), retired as per social insurance policy since 1 June 2019.
BIDV Senior Executive Vice President,
Mr. Yoo Je Bong has been elected as a BOD member for the
Chairman and CEO of BIDV Insurance Corporation.
2017-2022 term since 27 December 2019.

Mr. Le Ngoc Lam
IN CHARGE OF BOM
Born in 1975.
Master of Economics.
Appointed as Senior Executive Vice President in charge
of BOM since 15 November 2018.
BOARD OF MANAGEMENT Member of Executive Committee of Vietnam Chamber

of Commerce and Industry.
Previous posts: BIDV Senior Executive Vice President,
Head of Credit Risk Management, Head of Corporate
Banking; Deputy Head of BIDV So Giao Dich I Branch.
Mr. Quach Hung Hiep

Born in 1969.
Ph.D. in Economics.
Appointed as Senior Executive Vice President since October 2010.
Chairman of Lao -Viet Joint Venture Bank (LVB).
Previous posts: Head of BIDV So Giao Dich III Branch,
Deputy CEO of Lao- Viet Joint Venture Bank;
Head of BIDV Treasury Department.
The Board of Management (BOM) has

the responsibility for day-to-day
operations of BIDV, operating under the
supervision of the Board of Directors.
The Board of Management consists of Mr. Tran Xuan Hoang

councils, including Assets and Liabilities SENIOR EXECUTIVE VICE PRESIDENT
Born in 1965.
Management, Risk Management, Capital Bachelor of Economics.
Management,... Joined BIDV in 1989.
Appointed as Senior Executive Vice President since 1 May 2012.
Chairman of Mekong Housing Building and Realty Corporation
(MHBR), Chairman of BIDV Insurance Corporation (BIC).
Members of the Board of Management Previous posts: Head of BIDV Human Resources Department;
as at 31 December 2019 were as follows: Deputy Head of So Giao Dich II Branch,

Deputy Head of BIDV Gia Lai Branch.
32 ANNUAL REPORT
ANNUAL 2019
REPORT 2019 ANNUAL REPORT 2019 33
Mr. Le Trung Thanh
Mr. Tran Phuong SENIOR EXECUTIVE VICE PRESIDENT
SENIOR EXECUTIVE VICE PRESIDENT Born in 1964.
Born in 1973. Master of Economics.
Master of Economics in Banking and Finance. Joined BIDV in 1992.
Joined BIDV in 1997. Appointed as Senior Executive Vice President
Appointed as Senior Executive Vice President since 15 July 2014.
since 1 May 2012. Chairman of BIDV MetLife Life Insurance Limited Liability
Previous posts: Head of Corporate Planning Department; Company.
Head of BIDV Equitization Project Management Previous posts: Head of BIDV Nam Ky Khoi Nghia Branch;
Department. Deputy Head of BIDV An Giang Branch.
Mr. Le Kim Hoa

Mr.Sung Ki Jung
BOM MEMBER
Born in 1965.
Born in 1967.
Joined BIDV in 1987. Bachelor of Economics.
Appointed as Senior Executive Vice President Joined BIDV in 2020.
since 16 September 2013. Appointed as a member of BIDV’s Board of Management
Chairman of Bank for Investment and Development since 1 January 2020.
of Cambodia Plc. (BIDC); Head of BIDV Ho Chi Minh City Branch
Previous posts: Head of Global Strategy Department,
Previous posts: Head of BIDV Ho Chi Minh City Branch;
KEB Hana Bank; Head of BIDV-KEB Hana Synergy Creation
Head of Credit Risk Management Department;
Group, KEB Hana Bank.
Head of BIDV Dak Lak Branch.
Mr. Tu Quoc Hoc

Mr. Nguyen Thien Hoang HEAD OF SUPERVISION
SENIOR EXECUTIVE VICE PRESIDENT AND COMPLIANCE GROUP
Born in 1973.
Born in 1963.
Bachelor of Finance and Banking.
Appointed as Senior Executive Vice President Joined BIDV in 1987.
since 1 Jun 2016. Appointed as Head of Supervision and Compliance Group
Previous posts: Head of BIDV Human Resources since 1 May 2019
Department; Head of BIDV Quang Binh Branch. Previous posts: Head of Supervision and Compliance
Department, Head of BIDV Hoa Binh Branch.

Mr.Phan Thanh Hai
HEAD OF WHOLESALE BANKING GROUP
Born in 1977.
Master of Finance and Banking.
SUPERVISORY BOARD
Appointed as Head of Wholesale Banking Group
since 1 May 2019
Previous posts: Head of Corporate Banking
Department; Head of Strategy and Planning
Department; Head of BIDV Vinh Long Branch.
Mrs. Ta Thi Hanh

CHIEF ACCOUNTANT
Born in 1972.
Appointed as Chief Accountant since 1 May 2012.
Head of BIDV Accounting Department
Previous posts: Head of Customer Services Center;
Deputy Head of BIDV So Giao Dich I Branch.
The Supervisory Board is an agency

elected by the General Meeting of
Shareholders, carries out internal audit,
controls and evaluates the compliance
with the provisions of law, internal
regulations, Charter, Resolutions and
Decisions of the General Meeting of
Changes to the Board of Management in 2019:
Mr. Tu Quoc Hoc was appointed as Head of Supervision and Compliance Shareholders, Board of Directors.
Group.
Mr. Phan Thanh Hai was appointed as Head of Wholesale Banking Group.
Mr. Sung Ki Jung has been appointed as a member of BIDV’s Board of
Management since 1 January 2020.
36 ANNUAL
ANNUAL
REPORT
REPORT
2019
2019 ANNUAL REPORT 2019 37
Mrs. Vo Bich Ha
HEAD OF SUPERVISORY BOARD DEVELOPMENT ORIENTATION
Born in 1967.
Elected as the Head of the Supervisory Board
since 17 April 2015.
Previous posts: Head of BIDV Investment Management
Department, Chairwoman of VID Public Bank; BOD member
of BIDV-Vietnam Partners Investment Management Joint
Venture Company; Head of Investment Division;
Deputy Head in charge of BIDV Treasury Division.
Mr. Cao Cu Tri

MEMBER
PRIORITY OBJECTIVES Developing high quality human resources; fostering
Born in 1966 BIDV’s corporate culture and developing BIDV brand
Master of Economics. Continuing to be the leading commercial bank by to become a strong and valuable one with wide
Joined BIDV in 2002. scale, market share, and ability to regulate the market. recognition in both domestic and international
markets.
Elected as a member of the Supervisory Board Improving financial capacity, diversifying ownership
since 1 May 2012. structure, complying with capital adequacy ratio in
Previous posts: Deputy Head, Supervisory Department, accordance with the regulations of the State Bank of
SOCIAL AND COMMUNITY OBJECTIVES
Deputy Head of BIDV So Giao Dich III Branch. Vietnam and Basel II standards.
As a major financial institution, in addition to key tasks
Improving credit quality, taking aggressive measures
of implementing monetary policies and business
to collect bad debts, off-balance sheet debts, and
efficiently and securely, BIDV always carries out the
those sold to VAMC.
responsibilities to the society and community and
Diversifying the customer base as well as products and considers them one of its important tasks.
services, promoting retail banking, developing small
In the coming time, BIDV will continue to ensure loans
and medium businesses, FDI enterprises; Increasing
are safely managed and provided to eligible and
the proportion of retail loans to total outstanding
Nguyen Thi Tam
efficient borrowers. At the same time, BIDV continues
Mrs. loans, credit market share of SME and FDI enterprises;
to offer preferential credit packages to support
Diversifying and restructuring the main income
MEMBER customers in the priority areas set by the Government,
sources, striving to increase the proportion of income
Born in 1965 actively promoting investment in provinces and cities
from non-credit services to total income.
across the country to help unlock their potential. In
Organizing business administration according to addition, BIDV will continue to implement community
the international standards and practices in modern activities in national priority areas such as health
Elected as a member of the Supervisory
banking, ensuring transparency and efficiency, with care, education, disaster relief, sustainable poverty
Board since 1 May 2012. reduction; building new rural areas; social security
priority given to the development of a comprehensive
Previous post: Division manager, digital banking strategy on all aspects of business to create snowball effects in the banking system and
Supervisory Department. operations. community as a whole.

EXTERNAL
AND INTERNAL RISKS
BIDV would like to notice the
following risk factors that may affect
its business performance.
limited in the context of a highly open economy which

ECONOMIC RISK is vulnerable to negative external impacts, and ability
The world economy: to respond to technological changes is not at high
Firstly, the trade tension between the U.S. and China, level.
though temporarily eased after reaching initial results,
Thirdly, risks caused by natural disasters, epidemics
is forecast to be still complicated and unforeseeable.
(particularly Covid-19) and global climate change
Secondly, the economic growth of big countries such continued to significantly impact the production and
as China, the U.S., Euro area, Japan, etc. slowed down business activities of enterprises and consumption
as trade protectionism and geopolitical instability in Vietnam, BIDV’s customers (such as disrupting
increased. commercial activities due to temporary closure of
border gates with China, disturbing production chains
Thirdly, geopolitical risks, climate change and due to shortage of input materials, lack of suppliers,
epidemics were unpredictable; especially the decline in tourism activities, and domestic retail
Covid-19 disease has become one of the major risks services).
to the Chinese economy and the world in 2020. The
external risks, particularly the Covid-19 outbreak and Fourthly, institutional reforms were still slow and did
the prolonged U.S. - China trade tension will reduce not meet the market requirements, causing difficulty
demand for Vietnam’s export goods (due to the decline for businesses in expanding operations, or developing
in global trade demand), affecting the confidence of new business models, reducing the confidence of
foreign investors (declining growth prospect), and investors in business environment.
creating pressure on the exchange rate and inflation
Fifthly, some markets (real estate, corporate bonds)
as domestic production, and the supply of goods and
showed signs of risks that may affect customers and
foreign currencies is narrowed, thereby negatively
activities of BIDV in related areas (real estate market
affecting Vietnam’s macroeconomic growth and
saw gap between supply and demand in some
stability.
segments that made prices increase unreasonably,
Domestic economy: Condotel segment continued to face difficulties when
Firstly, the process of restructuring of key economic supply exceeded demand in some areas, and legal
areas is still slow and faces obstacles that restrain the regulations were delayed; Corporate bond market
growth potential. showed signs of distortion, intransparency, and interest
rates of some businesses threated to break the market
Secondly, the economy’s shock absorption capacity is rates).

INTEREST RATE RISK FOREIGN EXCHANGE RISK
Interest rate risk includes Business Book and Bank Foreign exchange risk arises from adverse developments
Book interest rate risks. This is one of the material risks, in exchange rates, resulting in a drop in the value of
arising due to unfavorable fluctuations in interest rates, the organization’s foreign currency position. BIDV’s
affecting income, values of assets, liabilities, off-balance forex trading, capital contribution for joint venture and
sheet commitments (bank book interest rate risk) and offshore investment were directly affected by market
value of valuable papers, interest-bearing financial exchange rate fluctuations. In order to manage the
instruments, interest derivative products on business foreign exchange risk, BIDV fully issued documents
book (business book interest rate risk). including internal policies, regulations and handbooks;
developed risk measuring and controlling instruments in
In order to manage the interest rate risk, BIDV has
accordance with international practices, such as Position,
fully issued documents including policies, regulations,
Value at risk (VaR), Stop loss limit, Minimum capital
handbooks as well as identifying, measuring,
requirements, Backtest, Stresstest, etc; established and
monitoring, controlling and reporting risk in accordance
monitored forex risk limits on a day-to-day basis.
with the regulations of State Bank of Vietnam and
internal management requirements. BIDV also applied In 2019, BIDV completed a project on improving market
a full range of interest rate risk measuring instruments risk management instrument system, laying solid
according to standards. For bank book interest rate foundations for BIDV to comply with the regulations
risk, main instruments used include Interest sensitive of the State Bank of Vietnam as well as the world’s
asset gap (Repricing gap), Change in net income from advanced risk management standards.
interest (∆NII), Duration gap, Change in economic value
of owners’ equity (∆EVE). For business book interest
rate risk, the interest risk is currently evaluated by
Position, Basic point value (BPV), Value at risk (VaR), Stop LIQUIDITY RISK
loss limits, Minimum capital requirements, backtest,
Liquidity risk arises when a bank is incapable of
stresstest. Based on measurement results from the
performing repayment obligations when due or is
above instruments, the limit system has been calculated
capable of performing repayment when due but has to
and monitored daily to ensure the bank’s risks are
pay at costs which are higher than the market average.
controlled.
BIDV has strictly controlled its liquidity risk in compliance
with SBV’s regulations and internal documents. In
2019, BIDV’s liquidity was assured at all times, payment
obligations to customers were fulfilled in a timely
CREDIT RISK manner. BIDV closely followed the market fluctuations
and customers’ demand, planning adverse scenarios to
Recognizing the importance of credit risk management BIDV finalized regulations and documents related to be ready for capital balance.
in business activities towards safety, efficiency credit extension and credit risk management, bankwide
and sustainability, BIDV has always been proactive risk management policy to meet the requirements of As well as ensuring the liquidity ratios as required
and pioneered in applying the best international the State Bank’s Circular 13/2018/TT-NHNN. by the SBV, BIDV set up a set of internal liquidity risk
practices to credit risk management. To date, BIDV’s management criteria, early warning indicators, customer
BIDV has met the requirements for capital adequacy behavior model… Liquidity stresstest has also been
risk management model has met the principles of
ratio and a series of Basel standards, has been implemented periodically in order to test the bank’s
independence and centralization as recommended by
recognized by the SBV to meet the requirements of ability to cope with liquidity crunch, thereby taking
the Basel Committee. The organizational structure of the
Circular 41/2016/TT-NHNN starting 1 December 2019, appropriate back-up measures.
whole BIDV system, from the head office to branches, is
ahead of the effective date of the Circular.
appropriately established, clearly defining the functions,
duties and powers of related units/individuals according
to risk management objectives.

Business Law No.68/2014/QH13; Law on Investment Circulars aimed at guiding the implementation of role of high-rank managers in internal audit, setting
No.67/2014/QH13; Land Law No.45/2013/QH13; Housing legal regulations in the field of finance and banking, requirements on internal controls, risk management
Law No.65/2014/QH13; Construction Law No.50/2014/ including: and internal audits for credit institutions. The circular
QH13; Law on Real Estate Trading No.66/2014/QH13; Law created a legal basis to improve the central bank’s
In 2018, the Government issued Decree 117/2018/
No.17/2017/QH14 amending a number of articles of Law management, inspection, and supervision efficiency
ND-CP on protection of confidentiality and provision of
on Credit Institutions 2010; Securities Law No.54/2019/ on governance, risk management, internal control and
customer information of credit institutions and foreign
QH14; Law No.55/2019/QH14 amending a number of internal audit on commercial banks and foreign bank
bank branches. The Decree created a legal basis for the
articles of Law on State Audit. branches.
protection of confidentiality and provision of customer
On the handling of bad debts, the National Assembly information is implemented in a uniform, clear, and In 2019, the SBV issued Circular 22/2019/TT-NHNN on
issued Resolution 42/2017/QH14 regarding piloting the transparent manner, ensuring the privacy of customers; limits and prudential ratios in banking operation. The
handling of bad debts of credit institutions (Resolution At the same time, it removed difficulties and obstacles Circular stipulates the maximum reduction in the ratio
42) with guidance in Resolution 03/2018/NQ-HDTP by encountered by credit institutions and foreign bank of short-term capital used for medium and long-term
the Council of Judges of the Supreme People’s Court branches in providing customer information, as well as loans under a roadmap that allows banks to have more
(Resolution 03). The promulgation of Resolution 42 assisting regulatory agencies in performing the task of time to reasonably adjust their structure of mobilized
and Resolution 03 is considered as a key to remove collecting information, documents and evidence in a capital and credit portfolios, thereby contributing
difficulties and obstacles of legal documents in the timely manner; ensuring consistency and compliance to promoting the sustainable development of the
handling of bad debts and security assets of credit with the provisions of law. banking system. In addition, the increase in the risk
institutions, thus speeding up the handling of bad debts coefficient contributes to help banks be more prudent
In 2019, the Government issued Decree 88/2019/ND-
of the banking system, ensuring the operational safety and strictly control personal installment loans which
CP on administrative sanctions in the monetary and
of the banking system in particular and the economy in were used for real estate business purpose. Thereby, it
banking sectors, specifying administrative sanctions,
LEGAL RISK general. minimized risks for the property market, helping the
additional penalties, fine levels, power, and remedial
market operate healthier and more stably.
Currently, Vietnam has been integrating into the global On the resolution of criminal cases, in 2019, the Council measures for administrative violations in the monetary
economy, especially in the field of banking - finance, of Judges of the Supreme People’s Court issued and banking sectors. The Decree also stipulates that As a developing economy which has strongly
thus, Vietnam’s legal system has been constantly Resolution 03/2019/NQ-HDTP guiding the application of administrative violations in the field of monetary and integrated into the international economy, although
developed to put international treaties’ commitments Article 324 of the Criminal Code on money laundering. banking sector which occurred before the effective Vietnam issued many legal documents in the field of
into domestic laws, aiming to accomplish a new The Resolution has realized the plan on implementation date of this Decree but were found within the statute banking and finance, the country’s legal document
comprehensive and more stringent legal framework of the 2015 Criminal Code and Resolution 41 of the of limitations for administrative sanctions or are still system on banking is still in the process of finalization
for credit institutions in Vietnam, including joint stock National Assembly in the People’s Court, while meeting in the process of consideration and settlement, will be to meet the international standards. Therefore,
commercial banks like BIDV. the requirements of money laundering prevention subject to provisions which are more favourable for the Government and the State Bank of Vietnam
and fighting; overcoming inadequacies and limitations violators. will continue to promulgate and/or change legal
Legal system, economic policies have been
in judicial practice, contributing to the fight against regulations relating to the operation of commercial
developed uniformly, basically suitable with market In 2018, State Bank of Vietnam issued Circular
corruption, ensuring transparency in assets and banks in general and BIDV in particular. Impacts of the
mechanism, and meeting the need of market 13/2018/TT-NHNN on internal control system for
income; strictly implementing Vietnam’s commitments changes in policies and laws are unpredictable and
economy development and international integration. commercial banks and foreign bank branches in order
to the international community in combating money beyond the control of BIDV. This can be considered
In recent years, the National Assembly of Vietnam to provide instruction on implementing Law on Credit
laundering and terrorism financing. one of the potential risks for investors relating to the
has passed important laws aiming at improving the Institutions; applying the system of internal controls,
changes in legal regulations by competent regulators.
legal framework for the business environment and In addition, the Government and State Bank of risk management, internal auditing in accordance
operation of credit institutions in Vietnam, including: Vietnam issued a number of important Decrees and with Basel Committee’s principles and standards. The
circular stipulates issues such as enhancing supervision

IT RISK
IT system may contain certain risks for banking
activities. The risks may arise from BIDV using software,
technological support service, transmission line, and
systems which are provided by different suppliers; they
may also arise from malfunction, non-compliance with
control and supervision process, system security, or
natural disasters, fire, cyber-attacks (hackers), etc.
To prevent and restrain IT risk, in recent years, along

with developing appropriate IT human resources, BIDV
has continuously invested in equipment, developing a
complete IT system: Upgrading firewall system, state-
of-the-art IPS/IDS system for WAN/LAN; buying licensed
anti-virus system which has been updated regularly
for bank-wide use; Equipping NPS system to control
LAN access cross the system in order to enhance
In addition, BIDV has increased its IT readiness In 2019, BIDV utilized resources to implement a
system security; Building a disaster recovery center in
at BIDV to cope with the increasing threat of
OPERATIONAL RISK project on advanced operational risk management
accordance with international standards; Storage area
network (SAN), as well as policies on system security security risks and adverse externalities, as well Operational risk may stem from insufficient or defected tool development according to standards in order
and safety to minimize IT risks. BIDV is also one of the as meeting strict compliance requirements such internal regulations, human factors, system errors or to enhance efficiency of the existing operational risk
first banks in Vietnam to establish a Backup center as: Establishing a special task force to deal with external factors. management tools, reaching to the world’s operational
that uses backup main server system and storage cyber-security situations; Setting up a SOC center risk management practice.
to monitor, early detect, analyze and handle Operational risk may arise from all banking operations
technology with the most advanced solutions to In addition, BIDV proactively studied the method of
security issues; Cooperating/signing cooperation and is unforeseeable. To manage and control
secure the bank’s business continuity even in case calculating the required capital for operational risk
agreements with CMC, VNCert on BIDV’s IT system operational risk, in 2019 BIDV uniformly implemented
of natural disasters and other catastrophes. BIDV has under the guidance of the State Bank of Vietnam in
security assessment. Closely coordinating with tasks such as: Setting up organizational structure and
been awarded the ISO/IEC 27001:2013 - international Circular 41/2016/TT-NHNN dated 30 December 2016.
the SBV, Vietnam Information Security Association risk management under the 3-lines-of-defense model
standard certification for the new version of the The bank also continued to develop and upgrade
(VNISA), Ministry of Public Security (C50, PC50) to from Headquarters to branches; Developing document
Information Security Management System since 2015. software programs to support the collection and
implement network security alert and supervision. systems; implementing operational risk management
BIDV’s IT system management and operation were tools such as RCSA (Risk and Control Self-Assessment), processing of operational risk data. Required capital
At the same time, in order to improve the
paid great attention, strictly monitored and controlled KRI (Key Risk Indicator), LDC (Loss Data Collection), BCP for operational risk was automatically calculated on
processing capacity of the IT infrastructure, BIDV
around the clock in accordance with processes and (Business Continuity Plan), while managing operational software programs. Operational risk management
is in the process of building a new data center
regulations, which are periodically reviewed and risk for outsourcing activities, new products/new culture was also enhanced through training and
to meet the growing demand and international
updated. Scenarios for handling risks in case of IT markets and IT applications; Implementing the communication workshops on operational risk
technology standards, enhancing IT system
incidents have also been devised and rehearsed reporting regime on operational risk management in management.
readiness and continuity, meeting BIDV’s business
periodically while timely responding to external and governance requirements. It will be completed compliance with the requirements of the State Bank of
security incidents, information safety, ensuring backup and launched in 2020. Vietnam under Circular 13/2018/TT-NHNN.
systems operate continuously to help IT system
operate stably and safely; BIDV’s IT system has been
internationally appreciated.

BUSINESS SITUATION
BASEL II IMPLEMENTATION RESULTS AT BIDV
ORGANIZATION AND PEOPLE
BUSINESS INVESTMENT AND PROJEC T PERFORMANCE
FINANCIAL OVERVIEW
OPERATION 2019 SHAREHOLDING STRUC TURE, CHANGES TO

SHAREHOLDERS’ EQUIT Y

BUSINESS SITUATION
In 2019, BIDV continued to comprehensively restructure its OVERALL ASSESSMENT OF SCALE, QUALITY AND EFFICIENCY
business operation towards sustainability with a focus on
handling bad debts, fine-tuning institution, strengthening
administrative reform, finalizing human resources, improving Total assets reached VND1,489,957 billion, increasing National Assembly’s Resolution 42/NQ-QH and the
management effectiveness and efficiency, creating solid by 13.5% from 2018, continuing to be the largest BIDV restructuring plan for the period 2016-2020. By 31
commercial bank by assets in Vietnam. Asset structure December 2019, BIDV’s NPL ratio was 1.75%; Group 2
foundations for the delivery of the restructuring plan for
was stable with the proportion of profitable assets to debt ratio was 2.2% under the bank’s control.
the period 2016-2020; ensuring the benefits of shareholders total assets reaching 95.6%, up 1.14% compared to
Safety ratios were ensured in accordance with
and employees; contributing positively to the state budget; 2018.
regulations of the State Bank of Vietnam.
preserving and growing the state capital at BIDV. Loans and deposits continued to lead commercial banks,
Other performance indicators also achieved impressive
seeing good growth:
results:
BIDV’S RANKINGS IN VIETNAM’S BANKING SYSTEM Loans to the economy grew in accordance with the
Customer base development: (i) individual customers
direction of the State Bank, focusing on business
IN 2019 WERE AS FOLLOWS: production, supporting national economic development
reached nearly 10.4 million, increasing by 15% from
2018, accounting for 11% of Vietnam’s population. BIDV
and in line with the capital absorption capacity of the
strived to increase benefits and products for customers
economy. Outstanding loans to the economy grew
while boosting connection with Fintech companies
12.2% in association with structure shifting and credit
(22/32 companies); (ii) Nearly 2,400 large corporations
quality improvement.
1st 2nd 3rd

and enterprises; (iii) Around 295,000 SME and FDI
Mobilized capital continued to lead the commercial customers; (iv) Maintaining correspondent relationships
banking system given the increasingly strong with more than 1,100 banks, multilateral financial
competition, growing by 12.6% compared to 2018, a organizations and non-bank financial institutions in
testament to the bank’s prestige, brand as well as the 95 countries and territories; Providing comprehensive
Charter capital Market capitalization Net forex income trust of customers in BIDV. services for 2,700 financial institutions both local and
Total assets Owners’ equity Network of branches and international.
Difference in revenue and expenditure reached the
Outstanding loans transaction offices
highest level ever at VND30,864 billion, an increase of BID share market price: Increasing by 42.5% from the
Customer deposits
9.3% from 2018. Consolidated pre-tax profit reached start of 2019. With the positive news on the finalization
Difference in revenue VND10,732 billion, fulfilling 104% of the target set by of the deal on issuing 15% of stock to the strategic
and expenditure
the Annual Meeting of Shareholders and surpassing investor KEB Hana Bank, BID stock continued to increase
Net service income
(including guarantee fee) the 2019 target as set in the Restructuring Plan; ROA strongly in the second half of 2019. In 2019, 1.1 million
and ROE reached 0.61% and 12.94%, respectively. BIDV BID shares were traded per session on average. Foreign
fulfilled its tax payment obligations, paying VND8,168 investors’ ownership in BIDV as of 31 December 2019
billion to the State budget, ensuring the interests of was 18.03%, of which KEB Hana Bank owned 15%,
shareholders, paying cash dividends of two years 2017 accounting for 75% of BIDV’s freely-transferable shares.
and 2018 totalling VND4,560 billion, dividend payout
BIDV’s market capitalization hit VND186,000 billion in
ratio was 7%/year.
2019 – the second largest among commercial banks in
Performing uniform measures to handle and control Vietnam.
credit quality, settle non-performing loans under the

4,284
SPECIFIC ASSESSMENT: Apart from the capital raised from residents and economic By segment: Target customer segments all achieved
organizations, BIDV also made good use of capital from good growth:
3,551
DEPOSITS: market 2, from the Government and the State Bank to
Retail banking: continuing to lead the market by market 2,966
support the liquidity of the system.
Total deposits from organizations and individuals reached share, growing 21.5% from 2018, accounting for 34.5% of
VND1,187,093 billion, an increase of 12.6% compared to Deposit structure continued to shift towards increasing total outstanding loans.
2018, meeting the demand for capital; increasing BIDV’s the proportion of stable low-cost deposits, suitable for the
total mobilized capital to VND1,374,765 billion, up 12.1% Wholesale banking: Growing 8.3% from the start of the
capital demand: (i) VND deposits continued to increase by
from 2018. year, of which outstanding loans to SMEs grew well by
12.8% from 2018, accounting for 94.7% of total customer
21%, higher than the average credit growth rate.
deposits; (ii) Demand deposits grew 10.2%, accounting for
Of which, customer deposits hit VND1,114,163 billion,
16%; (iii) Retail deposits increased 9.7% compared to 2018, By term: Short-term loans continued to grow well, up
up 12.6% from 2018, accounting for 12.8% of customer
representing nearly 55.5% of total deposits. 15.2% from the start of the year in accordance with the
deposits of the whole banking sector.
directions; Medium and long-term loans were extended 2017 2018 2019
appropriately to retail, FDI and SME segments; Key
LOANS: NET SERVICE INCOME
projects and programs were implemented effectively.
1,114,163 Unit: VND billion
Total outstanding loans and investments reached The proportion of medium and long-term loans to total
989,671 VND1,325,737 billion, of which outstanding loans outstanding loans was 37.9%, much lower than the
859,985 to organizations, individuals and corporate bonds control target.
((ii) Payment service grew quickly, leading in providing
reached VND1,134,503 billion, up 12.2% and accounted
By currency: Outstanding loans grew in accordance uniform payment solutions for customers. BIDV was
for 13.8% of the total loans of the whole sector.
with the directions, in which VND-denominated loans the bank that established most connection with
increased by 14% from the start of the year; Foreign Fintech companies (22/32 companies) to implement
currency loans were controlled, down 10% from the payment intermediary services such as online
1,134,503 beginning of the year in line with the policy of the payment, e-wallets, collection service while bolstering
1,010,993 Government and the State Bank’s direction, shifting from security for customers. Total net payment service
foreign currency borrowing to trading, reducing pressure income increased by 14% compared to the previous
895,404 year, reaching VND2,720 billion.
on foreign currency balance.
Trade finance service continued to grow with IT

2017 2018 2019 SERVICES: solutions related to robotics being further applied
to deal processing. Total trade finance service fees
CUSTOMER DEPOSITS Net service income (including guarantee fee) reached
reached VND937.67 billion, import-export payment
Unit: VND billion VND6,038 billion, an increase of 14.2% compared to
sales hit USD31.83 billion, making up 6.15% of the
2018. BIDV continued to be the bank with the highest
country’s total import-export turnover.
net service income in the banking system, in which:
Net service income (excluding guarantee fee) hitting (iii) E-banking payment developed strongly with nearly
VND4,266 billion, up 20%. 12 million turns of customers using e-banking services
The positive results reflected BIDV’s position in the market,
the trust and loyalty of 300,000 business customers and (including 1.4 million new IBMB registrations), the
Service income structure in 2019 shifted positively
nearly 10.4 million individual customers in BIDV given the 2017 2018 2019 with good growth in retail and modern services (retail
number of transactions reached nearly 150 million
strong competition among banks. (up 82% from the previous year). BIDV ranked third by
service income increased by over 34.6%, accounting
LOANS TO CUSTOMERS transaction volume and value, accounting for 12% of
for 36% of total net service income, up 5% compared
In 2019, BIDV successfully implemented the issuance of Unit: VND billion total transactions via NAPAS in the market.
to 2018). Some services achieved remarkable results,
bonds either to the public or as private placements to
particularly: Treasury activities continued to see strong and
financial investors, raising more than VND19,000 billion
which was calculated in tier 2 capital. effective development with a total net income
(i) Card service income grew well thanks to the card
reaching VND1,495 billion, the highest ever, up 44%
digitization with 12 new card products launched, 22
from the previous year. BIDV continued to be among
new features and 27 upgraded features, meeting the
Top 3 banks with the largest market share in foreign
increasing needs of customers such as e-commerce
currency trading.
payment portal, Visa Cashback Contactless card,
issuing over 2 million new cards. BIDV was also the first
bank in Vietnam to successfully deploy the acceptance
of Russia’s MIR card payment on BIDV’s POS system.
BASEL II IMPLEMENTATION RESULTS
BIDV IS RECOGNIZED TO MEET BASEL II
STANDARDS AHEAD OF DEADLINE
On 29 November 2019, the governor of the State Bank

of Vietnam issued Decision 2505/QD-NHNN approving
INVESTMENTS: were diversified on the basis of billion, up 20%; Net treasury income reached VND1,495
the Joint Stock Commercial Bank for Investment and
tapping market opportunities to increase profits while billion, up 44% over the previous year; Off-balance
Development of Vietnam (BIDV) to apply Circular
controlling and managing liquidity and interest rate sheet collection reached VND5,779 billion, growing 29%
41/2016/TT-NHNN starting from 1 December 2019
risks. Total investment securities and trading securities from the previous year.
(before the effective date of the Circular).
portfolio (excluding corporate bonds) reached
Effective management of operating costs:
VND137,867 billion, accounting for 9.3% of the system’s As of end-2019, BIDV has completed the Pillar 1
total assets. In 2019, BIDV innovated its financial management, (standardized approach) and Pillar 3 of Basel II, and
effectively using costs, ensuring sufficient salary is in the process of finalizing and meeting Pillar 2 on
THE ABOVE POSITIVE OPERATING RESULTS WERE payment to employees, fulfilling all obligations to the As one of the leading commercial banks in Vietnam, schedule as requested by the SBV (1 January 2021).
REFLECTED THROUGH THE SUSTAINABLE BUSINESS State budget. The operating cost to income ratio was BIDV took early steps as required by the State Bank of
In addition, BIDV proactively implemented and
GROWTH: controlled effectively at low level of 36%. Vietnam to prepare for application of capital adequacy
completed projects to be well-prepared for compliance
ratios set by Basel Committee in order to enhance
Total net operating income grew well thanks to the Provisions for risks were fully made in accordance with the foundation internal ratings-based approach
safety, soundness, risk management capacity and
strategic shifting of income structure: with regulations applicable to standard loans as well as (FIRB) upon State competent authority’s request.
competitive capacity. In late 2014, BIDV proactively
debts sold to VAMC, ensuring early settlement of bonds established an organizational structure for Basel
Total net income in 2019 reached VND48,121 billion,
is made in 2020. standard implementation, implementing project on gap
increasing 8.7% from the last year, the highest among
Consolidated pre-tax profit reached VND10,732 analysis and Basel implementation master plan at BIDV
commercial banks, thanks to the strategic shifting of
(GAP&MP project). Approved by the SBV to apply
income structure, with positive results in non-interest billion, fulfilling 104% of the target assigned by the
segments: Net interest income reached VND35,978 Annual Meeting of Shareholders and surpassing the Basel II standards before the
After completing the GAP&MP project in 2015, BIDV was
billion, an increase of 3.6% from the previous year); Net 2019 target as set in the Restructuring Plan. proactive to develop and implement Basel roadmap deadline, BIDV continues to
service income (excluding guarantee fee) hit VND4.266 in order to comply with the State Bank’s regulations, be one of the leading banks in
including Circulars 41/2016/TT-NHNN and 13/2018/ Vietnam by total assets, charter
TT-NHNN, as well as meeting the best practices in risk
capital and risk management
management.
Net income 0.5% Net income Net income according to international
from trading 1.5% from investment securities Net income from investment securities On 6 November 2019, upon approval by the
securities Other net income from trading securities 1.0% Other
practice. This lays solid
governments and competent authorities of Vietnam and
0.7% net income foundations for the bank to
Net forex income 2.4% 8.7% the Republic of Korea, KEB Hana Bank officially became
Net forex income 3.1% 11.2%
the first foreign strategic shareholder of BIDV. The deal further integrate, develop and
8.1%
Net service income Net service income 8.9% marks a historic milestone in BIDV’s operations; making meet the requirements of an
2018 2019 the Vietnamese lender the bank with the highest charter internationally standardized
capital in Vietnam’s banking system. BIDV has also met
modern bank.
the capital adequacy ratio requirements according to
78.9% 75.1%
Circular 41/2016/TT-NHNN.
Net interest income Net interest income
54 ANNUAL REPORT 2019

ANNUAL REPORT 2019 55
SUMMARY OF HUMAN
RESOURCES POLICIES
AND CHANGES
ORGANIZATION AND PEOPLE

Continuing to apply policies on labor streamlining, Developing and issuing the Regulation on employee
improving the quality of human resources to improve evaluation and KPIs with specific quantified criteria for
labour capacity. each job position to evaluate employees periodically as
the basis for implementing remuneration and benefit
Reforming recruitment with conditions, standards,
A GLANCE AT HUMAN RESOURCES AND MANAGEMENT POLICIES procedures tailored to each position and job, ensuring
policies for employees.
qualified workforce is recruited to meet the work Studying to develop a regulation on staff planning,
Of which those with master’s degree accounting for 22.4%, bachelor’s requirements. promotion and rotation in order to motivate
As of 31 December 2019 degree of 69.1%, associate degree of 2.4% and high-school diploma employees to strive for career development.
BIDV had employed of 6.1%. BIDV perceives that human resources are the most important Organizing training courses for new employees
factor for the success and development of an organization. Therefore, to help them capture and integrate quickly in the Developing, issuing regulations on salary,
26,135
one of the most important objectives of BIDV is to build, foster work environment and culture at BIDV. Developing remuneration and implementing benefit policies based
and develop sufficient quantity and quality of human resources to annual and periodical training plans with professional on job position, level of contribution and performance
people training courses for employees to improve their of employees in line with salary trend in the labour
successfully deliver the business targets and strategies of the system.
knowledge, professional skills, foreign languages, and market.
soft skills...
Complying and strictly implementing policies
applicable to employees in accordance with provisions
of law.
0.10% 3.8% 2.40% 6.10%
30.4%
25.6%
47.4%
2019 2019 2019
70.5% 91.5% 17.9%
4.3%
Leadership Bachelor’s degree or higher Age ≤ 30

Unit heads Associate degree Age 31 to 40
Division managers High school diploma Age 41 to 50
Officers Age over 50

Regarding staff promotion, in 2019, BIDV continued Rotation within branches to meet the requirements
PERSONNEL ORGANIZATION to finalize its senior management team, ensuring of management and internal control was also
RESULTS IN 2019 compliance with the provisions of the Law on Credit implemented regularly; creating common practices
Institutions and guidance documents on organization and positive habits for officers and staffs.
and operation of joint stock commercial banks. The
Staff examination was carried out regularly and
promotion of leaders at all levels was conducted
periodically throughout the system. Management
in accordance with regulations and procedures,
capacity and professional competence tests were
enhancing both quality and quantity of the key
organized professionally, seriously and objectively.
management team at the headquarters and the entire
In the year, BIDV organized two batches of
system.
management capacity tests for 1,612 officers at
departmental level and 38 batches of professional
Staff rotation and evaluation: In 2019, the staff
capacity tests for 1,286 officers. The test results will
rotation and evaluation was conducted uniformly with
be used for staff planning and promotion.
many reforms in contents and methodologies:
Schemes and policies for employees: In 2019,
Recruitment: In 2019, BIDV continued the centralized Staff rotation between headquarters and branches
BIDV issued a Regulation on salary in order to
recruitment for the entire system. BIDV applied a was speeded up in order to foster their skills,
improve its remuneration policy comprehensively
recruitment software and technology to some key contributing to enhancing professional human
to create motivation for each position. The
steps of the recruitment process, expressing the resources for branches.
schemes and policies were timely implemented
publicity, transparency, and consistency across the
by authorities and unions; ensuring the rights and
system, ensuring applicants’ quality in line with
benefits of employees such as social insurance,
requirements of each operating location. Thereby,
healthcare insurance, unemployment insurance,
BIDV attracted high-quality candidates from all
BIC insurance, MetLife insurance, BIDV-MetLife
regions across the country, creating good impression
Staff planning and promotion: The staff planning voluntary pension insurance, sickness, pregnancy,
on the public in general and candidates in particular,
was conducted professionally in compliance with the retirement, vacation, birthday.
contributing to promote and enhance BIDV’s brand
provisions of the Party and the State on the principle
and image in the market. Emulation and rewards: BIDV made positive and
of centralized democracy; the open and active staff
remarkable changes to maintaining and promoting
Training: In 2019, BIDV organized 408 training courses planning was still maintained. List of the planned
emulation activities which were closely linked to
for 38.464 turns of trainees with a focus on knowledge staff was supplemented, adjusted on the basis of the
professional operations, creating a driving force
training, management skills, working skills for leaders development of employees. Those who had poor
for units to boost their business activities. Rewards
at all levels and employees across the system, aiming at performance will be removed from and potential ones
were implemented timely and fairly, helping to
enhancing the quality of human resources to meet the will be added to the list.
maximize the capabilities and creativity of all
international standards to provide the best products
employees, contributing to the overall success of
and services to customers. Quality of the training
the entire BIDV system.
courses has been improved, especially the practicality
and course organization.
Besides internal training, BIDV also organized working

trips to foreign financial institutions for survey and
learning from experience. Up to now, such training
courses have helped the bank’s officers improve
their professional capacity, skills and know how to
effectively apply to the work.

I NV EST MEN T
A ND PR OJECT PERF O RM A NC E
PERFORMANCE OF SUBSIDIARIES
BIDV-SUMI TRUST LEASING CO., LTD. BIDV INSURANCE CORPORATION
Abbreviation: BSL Abbreviation: BIC

Operating license: No.0100777569 issued Operating license: No.11/GPDC16/KDBH dated
by Ho Chi Minh City 06 January 2016 by the Ministry
Authority for Planning of Finance
and Investment,
Business sector: Non-life insurance
13th amendment
on 19 May 2017. Charter capital VND1,172.7 billion
(31 December 2019):
Business sector: Financial leasing
BIDV’s ownership ratio: 51%
Charter capital VND895.6 billion
(31 December 2019):
BIDV’s ownership ratio: 50% BIC officially operated in January 2006 after BIDV In 2019, BIC achieved optimistic results with strong
repurchased the shares of QBE at Viet – Australia growth in efficiency and quality: Direct premiums
BSL was formed through the legal conversion from BIDV In 2019, the company saw good growth in scale and Insurance Joint-Venture Company. The company mainly reached VND2,015.4 billion, an increase of 13.3% from
Financial Leasing Co., Ltd, based on the cooperation quality (outstanding loans doubled, profit hit VND13.1 operates in the non-life insurance field. BIC successfully 2018. Direct insurance market share accounted for about
between BIDV, Sumitomo Mitsui Trust Bank (SMTB) billion, surpassing 30% of the plan); Debt quality was implemented IPO and has transformed into a joint 3.9%, ranking 8th out of 29 non-life insurance companies
and Sun Group JSC. BSL was officially launched in May good, mainly standard loans (~97% of total loans); Non- stock company since 01 October 2010, was listed on in Vietnam. Consolidated profit after tax was VND270.2
2017 with the charter capital of VND896 billion. BSL is performing loan and group 2 debt ratios were stable, kept Ho Chi Minh City Stock Exchange in 2011 and sold billion, growing 33.3% compared to 2018. In 2019, BIC’s
headquartered in Hanoi and has three branches in Hanoi, a relatively low level within the limit set by the State Bank strategic shares to Fairfax Asia Limited, a subsidiary of financial strength was affirmed at B++ by A.M. Best - the
Ho Chi Minh City and Da Nang City – the key economic of Vietn am. Fairfax Financial Holdings - the world’s leading financial highest rating in Vietnam’s insurance market. BIC has
hubs in Vietnam. insurance group in 2015. As of 31 December 2019, BIC been among Top 10 most prestigious non-life insurance
had charter capital of VND1,172.7 billion in which BIDV companies in Vietnam for the fourth consecutive year as
owns 51%. announced by Vietnam Report, ranking 6th (up 1 place
from 2018).

BIDV SECURITIES JOINT STOCK COMPANY LAO-VIET JOINT VENTURE BANK
Abbreviation: BSC Abbreviation: L ao Vi et B ank/L VB

Operating license: No.111/GP-UBCK dated 31 Operating license: Foreign Investment License No.985-326 dated
December 2010 by State 10 June 1999, latest amendment No.004-15/
Securities Commission of Vietnam KH-DT.4 dated 24 August 2015 by the Ministry
of Planning and Investment, Laos P.D.R
Business sector: Securities and related
operations Business sector: Banking
Charter capital VND1,220.7 billion Charter capital LAK 791,357.56 million
(31 December 2019): (31 December 2019):
BIDV’s ownership ratio: 79.94% BIDV’s ownership ratio: 65%
LVB, the first Vietnamese bank to be established in Laos In 2019, LVB continued to be one of the leading commercial
in 1999, is the joint-venture between BIDV and Banque banks by scale and efficiency in Laos. Total assets reached
BSC was established on 18 November 1999 and was one In 2019, BSC continued to develop sustainable factors, Pour Le Commerce Exterieur Lao (BCEL), aimed at about USD1.15 billion (ranking 3rd in the market). Customer
of the two first securities companies to be licensed for improving competitive capacity. The company’s stock implementing the Agreement on Culture, Science and deposits reached over USD1 billion, of which deposits from
operation in the Vietnam’s stock market. BSC provides and fund certificate brokerage market share reached Technology Cooperation between Vietnam and Laos P.D.R residents and economic organizations reached USD714
sufficient services in Vietnam, including brokerage, 3.11%, up 2% compared to 3.04% of 2018. In Q4-2019, to promote and support economic activities between the million, increasing by 12.3% from 2018 (ranking 2nd in the
proprietary trading, issue guarantee and investment BSC was among Top 10 securities companies with the two countries. market); Total outstanding loans reached USD809 million
advisory. In 2010, BSC was successfully equitized and largest brokerage market share on Ho Chi Minh City (ranking 3rd in the market); Profit before tax reached
officially transformed into a joint stock company on 1 Stock Exchange. BSC’s profit before tax in 2019 reached After 20 years of development, LaoVietBank has made
USD6.3 million. The number of employees reached 405
January 2011 with BIDV owning 88.12% of the charter VND136.5 billion, capital adequacy ratio of 627% - among strong strides, becoming one of the leading commercial
and their living conditions have constantly been improved.
capital. good companies according to the regulation of the State banks in Laos, playing an active role in connecting
LVB has 01 headquarters, 07 branches and 25 transaction
Securities Commission of Vietnam. BSC paid dividends payment activities, contributing to boosting the trade and
offices/points in 08/18 provinces and key economic hubs in
of 2018 at the payout rate of 18%, of which 10% paid in investment relations between Vietnam and Laos.
Laos including Vientiane, Attapeu, Champasak, Savanakhet,
shares and 8% in cash. Khammouane, Xiengkhouang, Luang Prabang and
Udomxay.

LAO-VIET INSURANCE JOINT VENTURE COMPANY BIDV ASSET MANAGEMENT COMPANY
Abbreviation: LVI Abbreviation: BAMC

Operating license: 077-08/DT dated 19 June 2008 Operating license: No.0101196750 dated 14 May
by the Ministry of Planning and 2018 by Hanoi Authority for
Investment of the Laos P.D.R and Planning and Investment
Certificate of Offshore Investment
No.146/BKH/DTRNN dated 19 Business sector: Loan workout and asset management
June 2008 by Vietnam Ministry of Charter capital VND100 billion
Planning and Investment (31 December 2019):
Business sector: Finance BIDV’s ownership ratio: 100%
Charter capital USD3 million
(31 December 2019):
Established in 2001, BAMC’s main business focuses Upon approval of the State Bank in the Document 40/
BIDV’s ownership ratio: 33.15%
on receiving and settling BIDV’s debts incurred NHNN-TTGSNH dated 03 January 2018 regarding the
before 31 December 2000. Just after 7 years since restructuring of BAMC, the Board of Directors of BIDV
launched, BAMC basically completed the settlement issued Decision 189/NQ-BIDV dated 12 April 2018 on
LVI, established and officially launched in June 2008 in The company’s main business lines include non-life of the non-performing loans of BIDV according to the increasing BAMC’s charter capital to VND100 billion to
Laos, is a joint venture between BIDV Insurance Joint insurance, reinsurance and financial investment services. Prime Minister’s Decision 149/2001/QD-TTg, thereby support the company to implement the scheme on
Stock Corporation and Banque Pour Le Commerce As of 31 December 2019, total assets of the company hit contributing to improving BIDV’s debt structure and business restructuring. The company’s total assets as of
Exterieur Lao and Lao-Viet Joint Venture Bank. USD16 million, total premiums were USD13.8 million, and enhancing financial capacity. In 2009, BAMC completely 31 December 2019 were VND111.3 billion; Income from
profit before tax was USD0.3 million. LVI continued to rank restructured its operation towards maintaining its legal entrusted debt collection was VND9.9 billion; Profit before
second by direct premiums in Laos’ non-life insurance status and scaling down its business and personnel. tax was nearly VND2.2 billion.
market.

PERFORMANCE OF JOINT-VENTURES AND AFFILIATES
VIETNAM - RUSSIA JOINT VENTURE BANK BIDV TOWER JOINT VENTURE COMPANY
Abbreviation: VRB Abbreviation: B IDV T O W E R

Operating license: No.0102028839 dated 9 Operating license: No.2523/GP dated 02 November
November 2006 by Hanoi 2005 by the Ministry of Planning
Authority for Planning and and Investment
Investment, 12th amendment
on 13 December 2018. Business sector: BIDV Tower management
and operation at
Business sector: Banking 35 Hang Voi, Hanoi
Charter capital VND3,008 billion. Charter capital VND209 billion

(31 December 2019): (31 December 2019):
BIDV’s ownership ratio: 50% BIDV’s ownership ratio: 55%
VRB, the joint venture between BIDV and Russia’s 35%; Total outstanding loans hit VND12,285 billion, BIDV Tower Joint Venture Company, established in late compared to the previous year. Against that backdrop,
Foreign Trade Bank - VTB, was established in 2006, growing 10%, NPL ratio of 1.65%; Profit before tax 2005, is a joint venture between BIDV and Bloomhills the company operated stably and achieved positive
taking the role of connecting the banking systems, hit VND181 billion. Also in 2019, VRB opened 3 more Holdings Pte Ltd. (Singapore). From 2006 to 2009, the business results: occupancy rate at 99%, higher than
promoting the economic and trade cooperation transaction offices in Ho Chi Minh City, Da Nang and main business activity of the company was to construct that of the market and at higher rent compared to the
between Vietnam and the Russian Federation. Hai Phong City, making the bank’s total transaction BIDV Tower at 35 Hang Voi, Hanoi. In early 2010, the market average.
points to 19 including 01 headquarters, 06 branches construction was completed and BIDV Tower was put
2019 marked the 13th year of VRB’s development with The company successfully surpassed its business targets
and 13 transaction offices in big cities across Vietnam. into operation.
positive spotlights: Business indicators grew well, of 2019: Revenue from office leasing reached VND216.1
Especially, VRB successfully deployed the KFT payment
fulfilling the plan, delivering the key goals of improving In 2019, office for lease market in Hanoi was vigorous billion (up 2% against the business plan); pre-tax profit
channel that helped promote direct bilateral payment
financial capacity and risk management. In particular, as both occupancy rate and rent of the whole market, reached VND99.6 billion (up 12% against the plan).
between Vietnam and the Russian Federation. Thanks
total assets reached VND19,521 billion, up 11% from especially the city central area, increased strongly
to that, VRB won the award “Outstanding Innovative
2018; Deposits from economic organizations and
Product/Service 2019” from Vietnam Banks Association
residents reached VND11,065 billion, increasing by
and International Data Group.

BIDV-METLIFE LIFE INSURANCE LIMITED LIABILITY COMPANY VIETNAM AIRCRAFT LEASING JOINT STOCK COMPANY
Abbreviation: BID V METL I FE Abbreviation: VALC

Operating license: 72/GPDC3-KDBH dated Operating license: 0102384108, first registration
13 September 2019 on 8 October 2007 at Hanoi
Authority for Planning and
Business sector: Life insurance Investment, 15th amendment
on 5 September 2019
Charter capital VND1,094 billion
(31 December 2019): Business sector: Aircraft purchase and leasing
BIDV’s ownership ratio: 31.99% Charter capital VND1,318 billion
(31 December 2019):
BIDV’s ownership ratio: 18.52%
BIDV MetLife is a joint venture between MetLife Inc., BIDV diverse needs of customers, bringing them premier With a view to contributing to the development of the Airbus A321-200 aircrafts). In addition, in order to develop
and BIDV Insurance Corporation (BIC), in. The company benefits. Total direct premiums in 2019 reached VND1,033 aviation sector of Vietnam, upon the approval of the Prime the commercial fleet and diversify its business activities,
officially launched in November 2014. billion, increasing by 20% from 2018, same as the growth Minister, Vietnam Aircraft Leasing Company (VALC) was VALC has been researching and developing a number
rate of the market. officially put into operation in October 2007. of business cooperation projects on trading and leasing
In 2019, the company continued to grow in scale, offering
business aircraft, helicopters, leasing engines and other
a comprehensive portfolio tailored to the increasingly After over 12 years of operation, VALC has affirmed its
aviation equipment.
position in the local and international aircraft leasing
market, successfully implementing two big aircraft In 2019, VALC’s profit before tax reached USD22 million,
purchase and lease projects (5 ATR 72-500 aircrafts and 10 with the after-tax profit to charter capital ratio at 27.82%.
INVESTMENT AND PROJECT PERFORMANCE

In 2019, BIDV completed the divestment from Dong Thap Housing and Industrial Zone Development
Investment JSC, and the procedures on closing BIDV International Co., Ltd (in Hong Kong)

FINANCIAL OVERVIEW SHAREHOLDING STRUCTURE,
FINANCIAL HIGHLIGHTS Unit: VND billion/% CHANGES TO
SHAREHOLDERS’ EQUITY
No. Financial situation 2017 2018 2019 Change
1 Total assets 1,202,284 1,312,866 1,489,957 13.5%
2 Total operating income 39,017 44,256 48,121 8.7%

As at 31 December 2019
3 Tax and other payables 2,850 3,151 3,608 15%
4 Profit before tax 8,665 9,391 10,732 14.3% SHARE STRUCTURE

5 Profit after tax 6,946 7,480 8,548 14.3% Number of Number of restricted
Total shares Type of shares transferable shares shares
4,022,018,040 Ordinary 161,261,914 3,860,756,126
KEY FINANCIAL METRICS Unit: VND billion/%
CAPITAL SCALE
Number of restricted Transfer restriction
Shareholders’ name Number of shares
No. Capital scale 2017 2018 2019 Change shares duration
1 Charter capital 34,187 34,187 40,220 18% State Bank of Vietnam

3,257,324,161 3,257,324,161 Subject to State regulations
(representing State capital)
2 Total assets 1,202,284 1,312,866 1,489,957 13.5%
According to the commitment
Meeting Meeting Meeting Meeting
3 Capital adequacy ratio (CAR) KEB Hana Bank 603,302,706 603,302,706 between the two parties and
requirements requirements requirements requirements regulations
Internal shareholders 254,524 129,259

BUSINESS RESULTS
Board of Directors 117,124 117,124 During terms of office
No. Indicators 2017 2018 2019 Change Board of Management 125,265
1 Total loans 1,406,113 1,726,322 2,041,775 18.27%
Supervisory Board 12,135 12,135 During terms of office
2 Debt collection 1,262,925 1,604,469 1,913,515 19.26%
3 Loans to customers 866,885 988,739 1,116,998 12.97%

SHAREHOLDING STRUCTURE
Non-performing loan
(excluding corporate bonds) Ownership
Shareholders’ name Number of shares Number of shareholders
4 Absolute number 14,063 18,802 19,496 Percentage
State Bank of Vietnam
Ratio 1.62% 1.90% 1.75% 3,257,324,161 80.99% 1
(representing State Capital)
Group No 3,4,5 guarantees to KEB Hana Bank 603,302,706 15% 1
5 0.38% 1.06% 1.11%
total guarantees ratio
Other shareholders 161,391,173 4.01% 22,473
OTHER KEY FINANCIAL METRICS

- Domestic shareholders 39,765,093 0.89% 21,902
+ Organizations 15,572,174 0.29% 170

No Indicators Requirement 31 Dec 2018 31 Dec 2019 + Individuals 24,192,919 0.6% 21,732
1 Liquidity coverage within the next 30 days - Foreign shareholders 121,626,080 3.02% 571
1.1 VND ≥ 50% 77.39% 104.40% + Organizations 120,371,517 2.99% 97
1.2 Foreign currency ≥ 10% 105.08% 146.80% + Individuals 1,254,563 0.03% 474
2 Liquidity Reserve Ratio ≥ 10% 15.42% 18.39%
Changes to the owners’ equity include capital increases through public offerings, private placements, bond conversions, warrant
3 Outstanding loans to deposits ratio ≤ 90% 86% 87.95% conversions, issuance of bonus shares, share dividend: In 2019, BIDV successfully issued 603,302,706 shares (equivalent to 15%) to
KEB Hana Bank (Republic of Korea)
Short-term funding for medium 2018: ≤ 45% Treasury shares transaction: None.
4 31.05% 26.54%
and long-term loans 2019: ≤ 40%
Shares transaction in foreign countries: None.
Note: Reported to the State Bank according to the Circular 36/2014/TT-NHNN dated 20 November 2014 and amended Other securities: None.
Circulars.
BOARD OF DIREC TORS’ EVALUATION
ON BIDV ’S PERFORMANCE
DIRECTORS’ REPORT
BOARD OF DIREC TORS’ EVALUATION
ON THE MANAGEMENT ’S PERFORMANCE
ORIENTATION OF THE BOARD OF DIREC TORS FOR 2020

In 2019, the world economy evolved complicatedly. domestic financial and banking market operated
Global economic growth was only at 2.9-3.0% (lower safely, stably and smoothly: Credit growth of the
than that of 3.6% in 2018). However, Vietnam’s macro- whole industry reached 13.7% compared to 2018;
economy in 2019 continued to achieve positive and on-balance-sheet NPL ratio of the whole system
comprehensive results in many fields, fulfilling and was about 1.8%. Interest rate slightly decreased. The
exceeding all 12/12 socio-economic indicators set by exchange rate was stable. By the end of 2019, 18
the National Assembly, such as: GDP growth reached commercial banks had been recognized by the SBV
7.02%; Average consumer price index stood at 2.79%; to be eligible to apply Basel II standards ahead of the
Total import-export turnover reached USD517 billion; deadline.
Export grew by 8.1%; Registered FDI capital increased
For BIDV, the bank’s activities were safe and efficient
by 7.2% and FDI disbursement increased by 6.7%
in 2019. BIDV comprehensively and synchronously
compared to 2018.
completed the set business targets which laid
Fiscal and monetary policies continued to be solid foundations for successful implementation
operated proactively and flexibly. The SBV issued of objectives in the BIDV restructuring plan for the
many documents and instructions on credit growth, period 2016-2020, ensuring the rights of shareholders,
interest rates and increased safety and efficiency employees, actively contributing to the community
of commercial banks. Thanks to those policies, the and fulfilling obligations to the State Budget.
2019 reached VND1,325,737 billion, of which credit

FULFILLING THE DUTIES ASSIGNED balance was VND1,134,503 billion.
BY THE AGM
Deposits grew by 12.1%, 1% higher than the level
approved by the General Meeting of Shareholders
Business performance: (11%), meeting the demand for using capital at a
reasonable cost. Total deposits as of 31 December
BIDV successfully completed the 2019 business plan as
2019 hit VND1,374,765 billion, of which deposits from
approved by the General Meeting of Shareholders in
market 1 were VND1,187,093 billion. Liquidity ratios
Resolution 395/2019/NQ-DHDCD, particularly:
Mr. Phan Duc Tu, Chairman of the Board of Directors, BIDV complied with the SBV’s limit, with the loan-to-deposit
Total assets reached VND1,489,957 billion, an increase ratio (LDR) at 88%.
of 13.5% compared to 2018, continuing to be the
NPL ratio to economic organizations and individuals
largest joint stock commercial bank in Vietnam by
was 1.75%, meeting the target approved by the
BOARD OF DIRECTORS’ assets. Assets were continued to be restructured

towards increasing the proportion of profitable assets
General Meeting of Shareholders (<2%). Credit growth
was associated with credit quality and risk control.
which hit 95.6%, an increase of 1.14% compared to the
EVALUATION ON previous year. Consolidated profit before tax reached VND10,732

billion, up 14.3% compared to 2018, exceeding the
Outstanding loans grew by 12.2%, in line with the
BIDV’S PERFORMANCE
target set by the General Meeting of Shareholders
plan assigned by the General Meeting of Shareholders
(VND10,300 billion). Consolidated ROA was 0.61%, ROE
(12%) and in compliance with the plan assigned by
reached 12.94%, fulfilling the financial plan assigned
the State Bank of Vietnam from time to time. Total
by the State Bank of Vietnam.
outstanding loans and investments as of 31 December

offering of over VND19,000 billion; (ii) Continuing Dividend payment from the retained
to maintain contact with investment funds, fund earnings for 2017 and 2018:
management companies and securities companies
in Vietnam to seek opportunities to increase charter Regarding dividend payment from the retained earnings
capital through private placements; (iii) Studying for 2017 and 2018: Pursuant to the SBV’s guidance in
procedures and conditions for making a plan to Document 6629/NHNN-TTGSNH dated 23 August 2019
list BIDV’s shares on prestigious international stock on the dividend payment plan for 2017 and 2018, BIDV
markets. paid dividends of 2017 and 2018 in cash. The ex-dividend
date was 8 November 2019 and the total dividend payout
Components of public offering and/or private ratio for the 2 years was 14%.
placement and issuing shares from the retained
earnings continued to be implemented.
Component of convertible bond issuance has been

studied and will be implemented in accordance with
the actual market developments.
Successful private placement
to strategic investor:
Given the market difficulties and regulators’ procedure
requirements, BIDV, with great determination,
successfully increased its charter capital through
private placement to KEB Hana Bank. Upon the
approval of the State Bank of Vietnam and the State
Securities Commission of Vietnam, KEB Hana Bank has
officially become a strategic shareholder of BIDV since
6 November 2019, owning 15% the bank’s charter
capital with a lock-up period of 5 years. With a total
value of VND20,300 billion, this was the biggest M&A
deal with a strategic investor in Vietnam’s banking
industry, which helps both enhance BIDV’s financial
capacity and provide technical support to BIDV in all
aspects, opening up development opportunities for
BIDV in the new period.
Along with that, BIDV came up with measures

and solutions to improve its financial capacity: (i)
Successfully implementing the public issuance and
private placement of subordinated bonds, which were
eligible to be calculated into tier 2 capital, with total

Completing the internal control system, improving requirements of Circular 13/2018/TT-NHNN, Circular
the quality, efficiency and effectiveness of the 41/2016/TT-NHNN, Circular 36/2014/TT-NHNN and
inspection and supervision; Completing and amended documents, ensuring compliance with
upgrading risk management system in accordance applicable laws and SBV’s regulations on anti-money
laundering/counter-terrorism.
with Basel II standards; Approved by the SBV to
implement Circular 41/2016/TT-NHNN from 1 Completing and upgrading the risk management
December 2019. system in accordance with Basel II standards: (i) 18/45
projects were completed before and on schedule,
Supervision in 2019 was paid attention and
including some key projects such as Internal ratings-
implemented synchronously and drastically: BIDV
based (IRB), debt recovery program (phase 1), risk
carried out comprehensive inspection of units
weighted pricing, internal credit rating system
according to plan together with irregular inspection
upgrading with criteria tailored to each customer
and remote monitoring. Inspection and monitoring
segment; risk-weighted assets calculation software
functions were specified in all 3 lines of control from
program by the standard method; (ii) 14/45 projects
frontline units to departments/centers at Head office.
have been implemented on schedule (iii) 13 projects
Enhancing the credit risk, operational risk, market risk are expected to be implemented in 2020.
and liquidity risk management capacity, meeting the
GOVERNANCE
In 2019, BIDV successfully implemented important position as the Best Retail Bank in Vietnam, BIDV issued Strong digital banking transformation
contents on digital banking transformation, medium Resolution 777/NQ-BIDV dated 31 July 2019 on the and information technology system
and long-term development strategies, system implementation of retail banking for the period of 2019
modernization:
restructuring, organizational model fine-tuning, – 2020, determining business efficiency and sustainable
risk management system upgrading, etc. to create development as the top goals, developing retail banking Strongly implementing the orientation on digital
a foundation for the system to operate stably, activities through the digitization process with a focus on banking development in accordance with Resolution
sustainably and effectively. Some key contents were mas affluent customers and high-income customers in big 1210/NQ-BIDV of the Board of Directors, BIDV has
as follows: urban areas, establishing modern sales channels such as been working with the Consultant to develop the
Internet, Mobile, ATM, Contact Center, etc. while increasing Digital Banking Strategy in BIDV’s master development
operational efficiency of the transaction offices. strategy for the period of 2020-2025 and vision to 2030.
Formulating medium and long-term
In March 2019 BIDV established a digital banking center
development strategies as a basis for Development of Assets - Liabilities Management Strategy:
to accelerate the digitization process.
the governance, management, business In order to ensure the active management, safety and
efficiency goals, BIDV developed an Assets - Liabilities Some outstanding achievements: BIDV built and
operation and supervision of BIDV’s
Management Plan for the period of 2019 - 2020 (Resolution developed modern distribution channels for digital Actively implementing key IT projects within the
strategy implementation: transformation such as Internet banking, Mobile
812/NQ-BIDV dated 23 August 2019), formulating the framework of strategic IT projects/solutions to
BIDV’s development strategy for the period of 2020 Assets - Liabilities Management Strategy for the period banking, Web Chat, Facebook, YouTube, etc. Manual 2020, including projects on Core banking System
- 2025 and vision to 2030: BIDV organized seminars of 2020-2025 in line with BIDV’s general development processes at the counter were automated. Robotic Transformation, on Credit Origination Management
to collect comments from all units across the system, strategy. technology for the check payment operation was System (CROMS), on digitalization implementation
conducted research, exchanged and discussed carefully officially implemented. BIDV cooperated with partners and development consultancy at BIDV, on new
Development of FDI and SME Customer Development
in each group about each topic of the strategy, to implement a number of innovative products such as Trade Finance system, and on Enterprise Content
Strategies: Together with the Project on Developing
innovating the formulation of the development Samsung pay, QR Pay, Chat-bot, ATM withdrawals on Management (ECM) system, etc.
Service Activities to 2025, the Project on Developing
strategy for the period 2020-2025 and vision to 2030. mobile phones via QR codes, blockchain applications,
Retail Banking Activities, BIDV built FDI and SME customer
new robotic technologies and artificial intelligence in
Implementation of retail banking in the period of development strategies; as such BIDV has an overall
operations. Big data models were built and analytically
2019 – 2021: With the goal of maintaining BIDV’s strategy and specific ones for each customer segment.
applied to evaluate customer lifecycle value, marketing,
cross-selling products, etc.

In 2019, BIDV hosted 108 training courses, with around
403 classes for over 38,496 turns of attendees (except for
individual training courses organized by branches). Some
typical training programs included the 8th Future Banking
Uniformly and effectively Leadership Training Program for intended-appointment
staff of director/deputy director positions from branches/
implementing the Restructuring
departments/centers/member units, annual updated
plan of credit institutions in knowledge program for the directors/deputy directors
association with dealing with bad of the units, the training program for transaction office
debts for the 2016-2020 period: directors, appraisal of investment projects, financial
analysis and fraud detection in financial reports,
BIDV continued to closely follow and implement the
application of Agile in project implementation, etc.
restructuring plan associated with dealing with bad
debts for the 2016-2020 period (approved by the BIDV continuously standardized the document system
SBV in Decision 04/QD-NHNN.m dated 8 January with 108/108 documents issued on schedule, following
2018 and by BIDV’s Board of Directors in Resolution the administrative reform under the direction of the State
08/NQ-BIDV dated 8 January 2018). Accordingly, agencies. The system of decentralization and authorization
BIDV came up with uniform restructuring solutions, documents met the requirements of BIDV’s day-to-day
including strengthening financial capacity, improving business management and operation.
asset quality, especially credit quality, diversifying
methods of capital mobilization, improving investment
efficiency, structuring and developing the network, Promoting non-interest income Strengthening the organizational Proposing changes to BIDV brand
gradually transforming the credit intensive business sources, transforming business model and document system, identity system and building a
model to a multi-service business one, improving model towards multi-service improving the quality of human culture of learning and creativity:
management capacity and operational transparency,
business and effective cost resources and standardizing human In 2019, BIDV restarted the project on changing
improving the efficiency and effectiveness of
internal inspection, supervision and audit, strictly
management resources brand identity elements, completed the report to
implementing recommendations on violations, In 2019, BIDV continued to implement the Service Improving the organizational model by issuing Resolution the SBV about the plan to change BIDV’s brand
outstanding problems and potential risks in operations, Development Scheme to promote cross-selling of non- 216/NQ-BIDV on the organization structure of business identity elements, promulgated regulatory processes,
which were stated in the inspection, examination and credit products to customers, gradually transforming groups at Head Office, establishing IT and Digital supervision and inspection of branches; standardized
audit reports. the business model from dependence on credit Banking group, Supervision and Compliance group, and innovated images and marketing message.
operations to a multi-service business model. The ratio adjusting functions and duties of some units to comply BIDV’s brand strength index in 2019 (assessed by Brand
For credit operations, BIDV reduced the level of
of non-interest income to total income in 2019 was with risk management regulations under Basel II. The Finance) increased by 22% compared to 2018. The
credit concentration, requiring to review risky
12%. Strategic Cooperation Committee and Cooperation brand was valued at USD450 million. BIDV continued
customers to ensure control of credit scale, focusing
Coordination Office between BIDV and KEB Hana to be honored in the Top 10 most valuable brands in
on implementing measures to recover bad debts, off- BIDV continued to implement of the Scheme on
Bank were established to implement the cooperation. Vietnam for the second time in a row and continued to
balance sheet debts and debts sold to VAMC according Effective Cost Management by assigning the saving
BIDV completed the election of additional members be ranked in the list of 2,000 largest public companies
to the roadmap set out in the restructuring plan. BIDV targets to each unit, allocating resources on the basis
to the Board of Directors, completing procedures for as published by Forbes.
utilized resources to speed up the provision setting to of evaluating their business efficiency. BIDV conducted
appointment of senior executive vice president, and
cover VAMC debts, reviewed and promulgated policies, multi-dimensional business assessments to identify
senior officers from KEB Hana Bank. Strongly deploying the Scheme on building a Culture
processes and organizational models to improve and properly allocate available resources and maximize of Learning and Creativity, all BIDV employees
credit risk management capacity, building a program the bank’s profits. BIDV continued restructuring the Applying advanced domestic and international market implemented creative ideas, innovations and
of enriching customer information through a variety organization model to focus human resources on the practice, BIDV implemented a comprehensive renovation improvements in the spirit of “Desire to learn - Passion
of methods to build a data warehouse to serve the core business operation, reducing wasteful investment, of the salary mechanism, issuing a set of BSC indicators for creativity - Ready for change - Achieving success”.
management and control of risk assets in accordance using assets effectively, managing administration at branch level, sets of KPIs and job description for each
with the SBV’s Circular 41/2016/TT-NHNN, deploying expenses and operating expenses effectively and position at the Head Office, deploying the overall human
and operating security systems to ensure maintaining economically. As a result, BIDV well controlled the resource management software system, etc.
business continuity and timely security alerts. growth rate of operating expenses (7.7%), lower than
Regarding staff training, BIDV regularly updated
the income growth rate (8.7%).
knowledge and improved the quality of human resources.

ENVIRONMENTAL AND
SOCIAL RESPONSIBILITIES
BOARD OF DIRECTORS’
In order to support the economic development, in 2019,
BIDV had reduced the lending interest rate ceiling for
three times, especially in priority areas according to the
EVALUATION ON
THE MANAGEMENT’S
orientation of the Government and the State Bank of
Vietnam, thereby demonstrating the role and responsibility
in the implementation of the policies of the Government,
PERFORMANCE
and the State Bank of Vietnam for the national
development.
BIDV also fulfilled its obligations to the State Budget and

ensured maximum benefits of shareholders. In 2019, BIDV In 2019, the Board of Directors issued Resolutions to
paid VND8,168 billion to the State Budget, being among direct business activities, assigned specific tasks to each
the Top 10 largest taxpayers in Vietnam. BIDV also made board member, and supervised the Board of Management
cash dividends for 2017 and 2018 to shareholders with a to organize the implementation in compliance with
total value nearly VND4,800 billion, equivalent to a payout the Bank’s Charter, Regulations on Organization and
ratio of 7% p.a. Operation of the Board of Directors, Internal Corporate
Governance Regulation and relevant regulations of BIDV.
Moreover, in 2019, BIDV organized many social security
activities in regions across the country with more than Grasping the positive changes of the domestic economy,
90 programs with a total budget of VND300 billion, such based on the orientations of the Board of Directors,
as Accompanying the Red Journey 2019; supporting the as well as sticking to the medium, long-term strategic
flood victims’ families in the North Central and Highlands, targets and specific goals of 2019 assigned by the General
organizing the “Warm Tet for the Poor” running event, Meeting of Shareholders and the Board of Directors, the
attracting the participation of more than 36,000 athletes Board of Management promptly and seriously built and
low-income workers and employees, patients, lonely
running a total distance of over 1.8 million km, contributing implemented specific tasks from time to time to each
elderly people, homeless children. At the ceremony on
nearly VND6 billion as Tet gifts for the poor nationwide. member of the Board of Management, each Group/
announcing Tet gifts for the poor in 2020, BIDV directly
Department. The directions of the Board of Directors were
This was the 12th consecutive year that BIDV had presented VND1 billion the Golden Heart Fund under
always defined by the Board of Management and units as
implemented this meaningful Tet gifts for the poor Vietnam General Confederation of Labor as Tet gifts for
the central and urgent tasks to focus on implementation.
program, providing a total of 650 thousand gifts, worth low-income workers in 63 provinces and cities. BIDV also
of nearly VND180 billion. The “Tet Gifts for the Poor” with cooperated with Vietnam Journalists Association, Tien The members of the Board of Directors and the Board of
priority subjects being people in remote areas, areas hit Phong Newspaper, People’s Police Newspaper, etc. to give Management always put the interests of shareholders, the
by natural disasters, severe floods, colds and drought, Tet gifts in many provinces and cities across the country. State and the Bank as the top operational objectives, well
performed their direction and management tasks and
accomplished their responsibilities and tasks assigned.

DIRECTING, SUPERVISING 2020 AGGRESSIVELY IMPLEMENTING
BUSINESS PLAN AND TARGETS EFFECTIVE, SUSTAINABLE CREDIT
GROWTH SOLUTIONS ALONG WITH
Directing to focus resources, efforts on flexibly deploying CONTROLLING AND IMPROVING CREDIT
ORIENTATION OF business plan in 2020, striving for major targets as follows:
Credit growth in accordance with the limit assigned
QUALITY AND RISK MANAGEMENT
CAPACITY, BALANCING CAPITAL
THE BOARD OF DIRECTORS
by the State Bank of Vietnam (currently 9%); Deposit
growth according to capital use demand (about 9%); NPL SOURCES, USING CAPITAL SAFELY AND
controlled under 1.7%; Consolidated profit before tax at EFFECTIVELY.
FOR 2020
VND12,500 billion.
Comprehensively restructuring investment activities to Continuing to implement solutions to ease difficulties

preserve capital and comply with regulations on safety encountered by customers according to regulations;
in investment activities: (i) Focusing on restructuring the Effectively implementing the banking-enterprise
investments that BIDV has a large and/or dominating connection program; Concentrating loans on production
percentage of ownership; (ii) Divesting ineffective sectors and priority areas under the policies of the
The global economy in 2020 is expected to be Thoroughly grasping the Government’s policy in
investments; (iii) Continuing to review the operation of Government and the State Bank of Vietnam; Strictly
unpredictable with the probability of maintaining Resolution 01/NQ-CP dated 1 January 2020 on major
inefficient foreign representative offices and those in controlling credit for potential risk sectors and large
the growth rate of 2019, but not excluding the threat tasks and solutions for implementing the socio-economic
markets with no orientation/condition for expansion. customers; Strengthening risk management for
of slowing down. In this context, with stable macro- development plan, the State Budget estimation in 2020
consumer credit, lending for living demands; Drastically
economic foundation, the Vietnamese government and Resolution 02/NQ-CP dated 1 January 2020 on
implementing measures to improve credit risk
continued to set positive targets in Resolution 01/NQ-CP continuing to carry out the main tasks and solutions to
management capacity; Strengthening the application of
with GDP growth rate of 6.8%, CPI controlled below 4%, improve the business environment, enhance national
information technology in credit risk management; Fully
total export turnover increasing by 8%-10%, the ratio of competitiveness in 2020 and orientations to 2021,
implementing risk management contents as required by
trade deficit to the total export turnover below 2%, total operating orientations of the State Bank of Vietnam in
Basel II; Completing BIDV restructuring plan, focusing all
social development investment capital accounting for 2020, in which total payment means increase 13%, credit
resources to handle bad debts, enhancing off-balance
34% of GDP. increases 14%.
sheet debt recovery and settling all debts which had been
sold to VAMC.
With the motto of “Discipline

- Accountability - Efficiency -
Breakthrough”, BIDV has developed PROMOTING THE DEVELOPMENT direction of rapidly increasing the proportion of non-
an Action Plan with the determination AND DIVERSIFICATION OF interest income, gradually reducing the dependence on
credit activities.
to well implement the mission and PRODUCTS - SERVICES, DIVERSIFYING
business plan in 2020, creating CUSTOMER BASE, CONTRIBUTING Consistently defining insurance business as a pillar of
BIDV’s development strategy; accelerating the increase in
solid foundations for a successful TO THE RESTRUCTURING OF INCOME service income from insurance commissions; Maximizing
restructuring plan associated with
TOWARDS SUSTAINABILITY cross-selling of banking and insurance products, creating
handling bad debts in the 2016-2020 and developing end-to-end banking products and
period with the following objectives Continuing to promote the implementation of the Service services; Researching and deploying products and services
Development Scheme to increase revenue sources, to customers with little/no access to banking services with
and orientations:
focusing on implementing product and customer focus on groups of customers in rural and remote areas
solutions to strongly shift the income structure in the with appropriate products and services at reasonable cost.

ENHANCING MANAGEMENT
AND GOVERNANCE CAPACITY,
INCREASING BANK-WIDE
OPERATIONAL EFFICIENCY
THROUGH EFFECTIVE
EXPLOITATION OF STRENGTHS
AND SUPPORT FROM THE
STRATEGIC SHAREHOLDER KEB
HANA BANK ON 6 AREAS OF
COOPERATION
Bank development strategy: Proactively coordinating
with KEB Hana Bank for experience sharing and
CONTINUING IMPROVING technology transfer to complete and launch the BIDV’s
FINANCIAL CAPACITY, MANAGING Development Strategy to 2025, and vision to 2030.
COSTS EFFECTIVELY, MAXIMIZING IT systems and digital banking: Developing operating

REVENUE SOURCES, AND models of IT systems and digital banking based on
the experience sharing from KEB Hana Bank and
IMPROVING THE BUSINESS current situation of IT and digital banking at BIDV and
EFFICIENCY OF THE WHOLE technological support.
SYSTEM PROMOTING THE APPLICATION IMPLEMENTING A BRAND Retail banking development: Developing strategies and
OF TECHNOLOGY AND DEVELOPMENT STRATEGY IN incentive schemes for retail banking activities; Optimizing
Continuing to maintain contact with investment IMPLEMENTING DIGITAL BANKING ASSOCIATION WITH FOSTERING retail operating model at head office and branches;
funds, fund management companies and securities Developing a retail marketing strategy; Deploying private
companies in Vietnam to capture the level of interest of DEVELOPMENT STRATEGY, CORPORATE CULTURE, CREATIVE banking model and products.
the investment community to prepare for the plan to ENSURING THE IT SYSTEM LEARNING MOVEMENT ACROSS Diversifying the portfolio of profitable assets: Focusing
increase capital through private placement following
OPERATES SMOOTHLY AND THE SYSTEM on increasing service and foreign exchange income;
the success of the issuance to the strategic investor.
Opening non-deal road shows to explore the level of STABLY, TIMELY COMPLETING Developing distribution channels; Increasing investment
efficiency and cross-selling between units across the
interest of investors and propose a plan for listing stock KEY IT PROJECTS IN 2020 system.
on foreign stock markets at an appropriate time.
Risk management: Fully and seriously applying risk
Increasing the proportion of demand deposits Drastically implementing the Digital Banking Development Completing and implementing the Project on changing
management system according to Basel II standards from
to reduce funding costs along with focusing on Strategy for the period 2020-2025 on all business brand identity elements; Researching and proposing
1 December 2019, continuing to implement the internal
individual customers, SMEs and existing customer activities, processes, products, distribution channels in programs to raise awareness and improve the quality
capital adequacy assessment process (ICAAP) and
base: Continuing to deploy and spread the effective accordance with the Industry 4.0; Strengthening solutions of standardizing brand image at transaction points;
researching to implement the recommendations of Basel
cost management scheme, focusing on reasonable to ensure the safety and security of the information Continuing to aggressively implement the culture of
Committee based on consultation, learning, experience
increase in cost-effective items, strengthening the technology system; Promoting distribution channel shift learning and creativity, organizing the conference on
sharing, management skills as well as Basel tools and
monitoring of the implementation of spending norms; towards centralization and increasing the efficiency of “Praising good and creative employees” at the branch
governance models implemented at KEB Hana Bank.
assigning cost-saving targets to each unit; Controlling traditional channels, aggressively deploying modern level and the 5th Conference on “Typical Employees”
investment, using assets economically and effectively channels; Strengthening the application of high- to praise typical individuals and collectives with great Human resources training and development: Promoting
to focus capital for business activities; Implementing a digitized technology, deploying digital products and contributions to the system. human resources training on the basis of coordinating
new salary mechanism associated with the BSC/KPI on applications to support business activities; Speeding up with and receiving support from KEB Hana Bank:
task assignment and performance evaluation, ensuring the implementation of BIDV’s key IT projects such as the Comprehensively improving the quality of human
market benchmark, attaching income to efficiency, transformation of Corebanking system, ECM, CROMS, etc., resources in association with developing and delivering
in order to promote proactiveness and increase labor ensuring the completion on schedule, contributing to the Human Resources Development Strategy to 2025 and
productivity. improving BIDV’s IT capacity. vision to 2030.

OPERATING ENVIRONMENT
AND BUSINESS RESULTS IN 2019
FINANCIAL SITUATION
INNOVATION IN GOVERNANCE,
ORGANIZATIONAL BUSINESS ORIENTATION FOR 2020
MANAGEMENT’S BUSINESS ORIENTATION FOR 2020
REPORT
MANAGEMENT ’S REPORT
ON RESPONSIBILITIES TO ENVIRONMENT,
SOCIET Y AND EMPLOYEES

In 2019, the Government continued to direct and implementing the 2016-2020 restructuring plan,
come up with aggressive solutions to successfully fulfilling obligations to the State budget, ensuring the
accomplish tasks of socio-economic development, interests of shareholders and employees, significantly
macro-economic stability, improving growth quality contributing to the community and society. BIDV
improvement and national competitiveness. Vietnam’s completed the strategic deal with KEB Hana Bank –
economy achieved positive and comprehensive results the largest deal in Vietnam’s banking sector history.
in many areas, fulfilling and exceeding all 12 socio- The deal contributed to enhancing the bank’s financial
economic indicators set by the National Assembly, capacity, meeting Basel II standards, making BIDV
particularly: GDP reached 7.02%, higher than the become the commercial bank with highest charter
target set by the National Assembly (6.6-6.8%); average capital in Vietnam. This laid solid foundations for BIDV
CPI was 2.79%, lowest in the last 3 years; total export to make fundamental changes to its governance
turnover reached USD517 billion for the first time; model, improving governance and management
exports grew 8.1% and trade surplus hit nearly USD10 capacity on par with international practice, looking
billion. The State Bank of Vietnam proactively adopted forward to becoming a modern financial and banking
flexible monetary policies in close coordination with group in the region.
fiscal policies, supporting economic growth, ensuring
BIDV’s brand and position continued to be
the liquidity, and maintaining stable monetary and
strengthened in international market. Credit rating
foreign exchange markets. The exchange rate and
firms continued to recognize BIDV as having a stable
interest rate were basically stable, banking system
outlook and among the banks with highest ratings
operated safely, effectively and stably. Total means of
in Vietnam. BIDV was honored in the Top 10 most
payment increased by 14.78% and credit growth grew
valuable brands in Vietnam for two years in a row,
13.7%.
among Top 2,000 world’s largest public companies as
For BIDV, the whole system comprehensively published by Forbes. In addition, BIDV continued to
accomplished the business plan, improving financial receive many awards: Best Retail Bank in Vietnam for 5
Mr. Le Ngoc Lam, Senior Executive Vice President in charge of the Board of Management, BIDV
capacity, asset quality, institutional reform and consecutive years by The Asian Banker, Best SME Bank
development, looking forward to successfully in Vietnam for 02 straight years by Asian Banking &
Finance and many other prestigious awards.
OPERATING ENVIRONMENT
AND BUSINESS RESULTS
IN 2019

FINANCIAL SITUATION
BUSINESS PERFORMANCE DEPOSITS
BIDV’s business performance in 2019 saw effective, Total deposits as of 31 December 2019 reached Deposit structure continued to shift towards increasing
sustainable, and safe growth in line with the VND1,374,765 billion, growing 12.1% compared to the proportion of stable and low-cost deposits in
restructuring goal, ensuring the benefits of the beginning of the year. In which, deposits from line with the capital use demand: (i) VND deposits
shareholders and employees. Difference between organizations and individuals hit VND1,187,093 continued to grow well (up 13% compared to 2018),
revenues and expenses reached VND30,864 billion, billion, up 12.6% compared to 2018, exceeding the accounting for 94.7% of total customer deposits; (ii)
growing by 9.3% compared to 2018, highest among year plan. Especially in 2019 BIDV successfully issued Demand deposits increased by 10.2%; the proportion
commercial banks. Consolidated profit before tax bonds to raise capital worth VND19,000 billion, making of demand deposits to total deposits was 16%; (iii)
hit VND10,732 billion, up 14.3% from 2018, fulfilling a significant contribution to enhancing financial Retail deposits grew by 9.7% compared to 2018,
104% of the target assigned by the General Meeting of capacity. accounting for nearly 55.5% of total customer deposits.
Shareholders, ROA and ROE were 0.61% and 12.94%.
OWNERS’ EQUITY
CREDIT SIZE After the successful strategic deal with KEB Hana
AND ASSET QUALITY Bank, BIDV’s equity increased to VND77,653 billion,
an increase of 42.5% from 2018 and charter capital hit
VND40,220 billion.
Total assets hit VND1,489,957 billion, up 13.5% term loans to total loans was 37.9%, meeting the
compared to 2018, continuing to be largest control target. Credit structure by sector was strictly
commercial bank in Vietnam by assets. controlled with a focus on priority economic areas such
as: retail customers, agriculture, export financing, SMEs.
Total outstanding loans and investments as of 31
Loans to areas prioritized by the Government and the
December 2019 reached VND1,325,737 billion, of
State Bank of Vietnam accounted for 57% of total loans.
which loans to organizations, individuals and corporate
bonds stood at VND1,134,503 billion, an increase of Asset structure shifted towards increasing high-quality
12.2%, within the limit assigned by the State Bank. assets. BIDV adopted a Resolution on assets and
BIDV’s credit market share accounted for 13.8% of the liabilities management plan for the period 2019-2020,
whole industry, continuing to be the commercial bank continuing to structure the assets towards increasing
with the largest credit scale. the proportion of profitable assets which reached
95.6% by the end of 2019 (up 1.14 percentage points
Credit quality was strictly controlled, stable and
from the previous year); the ratio of non-performing
safe. Credit growth was associated with risk control,
loans to organizations and individuals was 1.75%, in
increasing short-term credit and controlling medium
line with the regulations of the State Bank and BIDV’s
and long-term credit. The ratio of medium and long
target.

EXCELLENTLY COMPLETING THE IMPROVING BUSINESS EFFICIENCY
SCHEME ON SELLING STOCK TO TOWARDS PROMOTING SERVICE
STRATEGIC INVESTOR, ACTIVITY AND EFFECTIVE COST
CONTRIBUTING TO STRENGTHENING MANAGEMENT
FINANCIAL AND GOVERNANCE
CAPACITY ON PAR WITH Continuing to promote the implementation of the
Service development scheme, focusing on improving
INTERNATIONAL MODERN BANKING service quality with the 2019 theme being “BIDV
STANDARDS.
INNOVATION
Smile - Thoughtful, Professional, Quality”. Particularly:
(i) Translating the 2019 Service scheme into action
BIDV completed the sale of stock to the strategic programs implemented throughout the bank’s
IN GOVERNANCE,
investor KEB Hana Bank with total deal value reaching system; (ii) Organizing the contest “Replicating service
nearly VND20,300 billion, raising the charter capital initiatives”; Successfully organizing the BIDV Smile run;
to VND40,220 billion - this was the largest capital (iii) Deploying incentive programs to increase revenue,
ORGANIZATIONAL STRUCTURE contribution deal in Vietnam’s banking sector.

Accordingly, BIDV and KEB Hana Bank will initially
accordingly, average daily net service income in the
last 6 months reached VND12.46 billion, up 18.5%
compared to the average of the first half of the year
AND MANAGEMENT POLICIES

cooperate in 6 areas: (i) Banking development
strategy governance; (ii) IT system and digital banking (VND10.52 billion).
management; (iii) Retail banking development; (iv) Managing costs effectively through assigning saving
Diversifying the portfolio of profitable assets; (v) Risk rate targets to each unit, allocating resources based
management; and (vi) Human resources training and on business efficiency evaluation. Strengthening
development; thereby fundamentally innovating the the reasonable use of asset costs, implementing
corporate governance system, strengthening risk property arrangement plans according to regulations,
For banking operations, BIDV always strictly management, enhancing the application of information developing the system’s land use plan. Regularly
complied with the instructions on interest rates, technology and digital banking, diversifying profit reviewing the use of assets, timely transferring and
exchange rates, credit limits assigned by the portfolio; Expanding high-quality human resources disposing of assets to improve asset use efficiency.
training and development.
State Bank, as well as proactively enhancing
BIDV was recognized by the SBV as one of the
its comprehensive management capacity,
commercial banks qualified to apply Circular 41 early
innovating organizational model, taking the lead (from 1 December 2019); Meeting the Pillar 1 (standard
in applying modern banking technology and method) and Pillar 3 of Basel II, completing the
international integration. preparation and ready to meet Basel II standards.

CONTINUING TO BOOST RETAIL
BANKING BY SCALE, EFFICIENCY
AND QUALITY CONSOLIDATING AND bank’s Head Office units, thereby materializing the
strategic cooperation with KEB Hana Bank.
STANDARDIZING PERSONNEL
Building on Resolution 727/NQ-HDQT dated 19 March WORK Progressively standardizing employee assessment in
accordance with international practice, particularly:
2015, BIDV implemented a project on “Retail banking
Considering human resources as a core factor, BIDV has (i) Officially putting into operation 3 modules of
development for the period 2019–2021” to further
always invested in consolidating the human resources Phase 1 - new staff management system according
improve competitiveness and the retail banking’s
and regularly innovated the human resources to international standards; (ii) Completing sets of
sustainable and effective contribution to the overall Shifting the operational structure to the modern
management, particularly: documents on professional processes, developing
results of the entire bank. BIDV’s retail size (deposits, bank model with retail banking being put at the
and testing the salary module; (iii) Initially applying a
loans, services) continued to lead commercial banks; Net center: (i) Defining business efficiency and sustainable Senior personnel work was consolidated, ensuring
new salary mechanism, issuing sets of department-
retail income has played an increasingly important role development as the top goal; (ii) Developing retail publicity, transparency and compliance with State’s
level balanced scorecard (BSC) at branches, and KPIs
in the overall income of the entire system; Credit quality banking activities through digitalization; (iii) Putting regulations. Completing the additional election of
for positions for work performance evaluation at the
was always well controlled; individual customer base and customers at the heart of business to bring the best members to the Board of Directors at the extraordinary
head office; (iv) Regularly updating knowledge and
labor productivity saw high growth. experiences to customers and improve the quality of General Meeting of Shareholders in December 2019,
improving the quality of human resources through
products and services. completing the procedures for appointment of a
organizing 408 centralized training and E-learning
representative from the strategic shareholder KEB Hana
courses for 38,464 turns of trainees, offering intensive
payment, loan repayment, online deposit, credit card Bank to BIDV’s Board of Management. Besides, BIDV
AGGRESSIVELY IMPLEMENTING management and repayment; (iv) Cooperating with effectively implemented staff rotation, appointment
training programs and competency framework training
for trainees; (v) Organizing 44 batches of testing
DIGITAL BANKING SCHEME partners to launch innovative products such as Samsung and re-appointment; Completing 02 centralized
professional and managerial competency for 3,690
AND APPLYING MODERN Pay, QR Pay, Chat-bot on Mobile banking, Swift GPI, ATM recruitment batches; Completing the arrangement
turns of operational staff and division-level managers.
of key personnel from KEB Hana Bank to work at the
TECHNOLOGY TO BUSINESS withdrawals via mobile phones; Developing BIDV Home
app; Applying Blockchain, new technology in Robotics
OPERATIONS and artificial intelligence to business operations.
KICKING OFF REBRANDING Aggressively deploying the project “Building and
BIDV utilized resources to drastically, comprehensively practicing the learning and creative culture at BIDV”,
and effectively implement the Project on digitizing
As a result, digitization-linked main indicators had a
PROJECT IN ASSOCIATION WITH all BIDV employees introduced creative ideas and
disruptive increase compared to the previous year,
banking activities in all areas: (i) Officially launching the particularly: (i) The number of digital banking transactions FOSTERING CORPORATE AND initiatives for improvements with the spirit of “Desire
BIDV Digital Banking Center - the first bank in Vietnam reached nearly 140 million, 1.7 times higher than that LEARNING CULTURE to learn - Passion for creativity - Ready for change –
to own a Digital Banking Center; (ii) Uniformly building of 2018 and 7 times higher than 2016, helping BIDV Making success”.
and developing modern distribution channels such as save operating costs and optimize human resources of Kicking off the project on changing the entire brand Successfully organizing the first Innovation and
Internet Banking, Mobile Banking, SMS Banking, Web branches; (ii) The number of digital banking users hit identity, completing documents for reporting to Dialogue Day in July 2019 with the theme “Inspiring
Chat, Facebook, YouTube, etc.; Developing self-service over 5 million, bringing the online transaction rate to the SBV about implementation plan. Continuing to – Making success” which received 247 ideas and
channels (e-Zone) at transaction offices; (iii) Transforming 38% from 9% in 2015, showing BIDV’s initial success in its standardize and renew image and brand message initiatives of which 12 feasible and disruptive ideas
manual operations into automated ones for bank transfer, digitization and automation journey. in the bank’s advertising publications, products and and initiatives were awarded and aggressively applied
services. throughout the system.
FINE-TUNING ORGANIZATIONAL Credit Approval Center; Making adjustments to functions
MODEL AND DOCUMENT SYSTEM and duties of the Credit Management Department, the CONTINUING TO IMPROVE THE compliance supervision which connected 59 locations
and 3,000 officers across the system to disseminate
Management Information System and ALCO Department,
QUALITY OF INSPECTION AND the SBV’s direction on supervision and inspection
Fine-tuning the organizational model through issuance ensuring compliance with the SBV’s regulation on risk
of Resolution 216/NQ-BIDV on the organizational management under Basel II. SUPERVISION WORK work; (ii) Comprehensively inspecting operation of
model of groups at the Head Office, unifying the 104 units as well as the working style and transaction
organizational model of units under the General BIDV’s document system continued to be standardized space at 300 transaction points across the bank’s
Thoroughly grasping Directive 07/CT-NHNN dated 11
Meeting of Shareholders, the Board of Directors and 10 with 108/108 documents issued on schedule in system; (iii) Conducting regular remote monitoring and
October 2017 by the Governor of the SBV on ensuring
groups under the Board of Management; Establishing accordance with changes in the organizational, ad-hoc inspection at units to proactively detect signs
security and safety of the banking system, BIDV
the IT and Digital Banking Group, the Supervision and governance and management structure as well as of violations early and prevent violations; (iv) Issuing
continued to attach great importance to inspection,
Compliance Group, forming the Training and Research streamlining processes. So far, processes of providing a handbook for preventing violations in banking
compliance supervision. Some highlights included: (i)
Institute through merging the Research Center into the products and services to customers have basically operations, raising awareness of legal compliance and
Organizing an online conference on inspection and
BIDV Training School. Establishing the Investment and been improved, applying technology to improve labor sense of inspection and supervision for employees.
productivity and customer service quality.
BUSINESS BUSINESS ORIENTATION FOR 2020
DIRECTIONS FOR 2020 Successfully accomplishing business targets, ensuring

safe, quality and efficient business operation. Clearly
Promoting the development and diversification of
products and services, rendering efforts to diversify
defining the mission, vision and closely following plans income sources, contributing to shift towards sustainable
Thoroughly grasping the Government’s Resolutions and strategies approved by the General Meeting of income structure. Developing and diversifying banking
01/NQ-CP and 02/NQ-CP dated 1 January 2020 and the Shareholders and the Board of Directors, delivering the products and services, particularly non-credit products;
best values to shareholders and employees. Uniformly implementing solutions to diversifying income
SBV’s Directive 01/CT-NHNN dated 3 January 2020 on
sources such as increasing service income from non-credit
implementation of key banking tasks in 2020; with Successfully completing the BIDV restructuring plan for
customers; Promoting insurance and telesales, increasing
the 2016-2020 period, utilizing all resources to handle bad
the action motto for 2020 “Discipline - Accountability service income through launching new high-tech
debts, boost off-balance sheet debt collection and settle
- Efficiency - Breakthrough”, BIDV is determined to products.
all debts previously sold to VAMC. Classifying debts and
successfully accomplish the Business plan 2020 and making risk provisions according to regulation. Strictly Aggressively implementing effective financial
the Scheme on restructuring associated with handling controlling customers’ loan use purposes, minimizing the management solutions. Strengthening the monitoring
bad debts for 2016 -2020. increase in non-performing loans. of the implementation of spending norms; Assigning
cost-saving targets to each unit taking into account of
Fine-tuning and implementing BIDV Development
the responsibility of unit heads. Controlling economical
Strategy to 2025 and vision to 2030; In particular,
and effective investment in assets. Implementing a new
Key indicators: aggressively, comprehensively and effectively
salary mechanism, linking income to each individual
implementing the Digital Banking Development Strategy
performance; and implementing a new staff evaluation
for the period 2020-2025 in all business areas, processes,
Indicators Plan for 2020 mechanism based on KPI, attitude and qualification.
products and distribution channels in accordance with the
Industry 4.0 trend. Strengthening the application of highly Boosting brand development strategy in association with
Credit growth As assigned by the State Bank of Vietnam (currently 9%)
digitized technology, launching modern digital products fostering corporate culture and learning and innovative
Deposit growth In line with capital demand, expected at 9% and applications. Speeding up the implementation of movements throughout the system. Completing and
BIDV’s key IT projects. implementing a project on brand identity change.
Consolidated profit before tax VND12,500 billion (on condition that the Covid-19 pandemic is contained soon) Implementing strong and effective brand communication
Striving to improve credit quality and credit risk
activities.
Non-performing loan ratio (*) <1.7%
management capacity. Deploying credit products,
packages with a focus on good customer groups and Continuing to foster the learning and creative culture,
Dividend payout ratio Expected at 7%
priority areas. Shifting credit towards increasing loans with timely issuing appropriate incentive mechanisms to
low credit risk coefficient. Strictly controlling credit for encourage and commend initiatives, innovations,
Note: (*) The non-performing loan ratio is calculated on total outstanding loans to economic organizations and latent risk areas and large loans. applicable research results and learning culture in all
residents and corporate bonds (excluding financial institution bonds and deposits (except current accounts) at other activities of BIDV.
credit institutions). Taking measures to improve financial capacity, ensuring
the capital adequacy ratio according to regulation. Strengthening governance and management capacity,
Striving to implement capital increase plans through stock improving the operational efficiency of the whole system
dividend; continuing to promote capital increase through through effectively exploiting the strengths and support
issuing shares to foreign investors and new financial of the strategic shareholder KEB Hana Bank in 6 areas of
investors while implementing other measures to raise cooperation.
98 ANNUAL REPORT 2019 capital as planned. ANNUAL REPORT 2019 99
MANAGEMENT’S REPORT
ON RESPONSIBILITIES TO
ENVIRONMENT, SOCIETY AND
EMPLOYEES
VỀ
ENVIRONMENTAL
TRÁCH NHIỆM VỚI
RESPONSIBILITIES
MÔI TRƯỜNG SOCIAL RESPONSIBILITIES RESPONSIBILITIES TO EMPLOYEES
BIDV strictly followed the Government’s Decision 403/ BIDV has always pioneered in social security BIDV always attaches great importance to the
QD-TTg dated 20 March 2014 on National Action Plan on activities. In 2019, BIDV sponsored over 90 social development of human resources. With the goal
Green Growth until 2020, Directive 03/CT-NHNN dated 24 security programs nationwide with a total budget of creating an optimal working environment to
March 2015 by the Governor of the State Bank of Vietnam of nearly VND300 billion such as: “Red Journey encourage employees’ dedication, BIDV gradually
on promoting green credit and environmental and social 2019”; helping flood victims in the North Central improves and increases the income of the
risk management as well as other decisions by central and and Highlands regions; successfully organizing employees, creating opportunities for the employees
local authorities on environmental protection. “Warm New Year for the poor” running event which to maximize their capability, visioning clear
attracted participation of more than 36,000 athletes development paths while ensuring legitimate and
As the country’s leading financial institution, BIDV
running a total distance of over 1.8 million km, legal benefits of employees.
thoroughly understood its responsibility for keeping
contributing close to VND6 billion as Tet gifts for the
and protecting a green environment for the next All employees are covered by benefits according
poor on the occasion of Vietnam’s new year 2020;
generations. BIDV comprehensively evaluated to the provisions of law, are entitled to join trade
effectively supporting policy beneficiaries such
environmental risks when appraising projects, requiring unions, are paid in commensurate with their
as disadvantaged families, Agent Orange victims,
customers to strictly comply with the provisions of law contribution and qualification. In addition, BIDV
Vietnamese heroic mothers.
on environmental protection. In project implementation, ensures benefits and incentives for employees such
BIDV regularly supervised the environmental and social as vacation leave, annual health check, teambuilding
risk management during the disbursement, ensuring activities for employees, etc.
to minimize negative impacts on environment from
projects financed by BIDV. Besides, BIDV disseminated
the environment protection measures to the employees
to shape a green lifestyle such as saving energy, limiting
material printing, using public transportation, etc., gaining
consensus from employees.
In 2019, the Green Office project was implemented at

BIDV head office and will be replicated throughout the
system in the coming time.

OPERATION OF THE BOARD OF DIREC TORS IN 2019
CORPORATE OPERATION OF THE SUPERVISORY BOARD IN 2019
GOVERNANCE
TRANSAC TIONS, REMUNERATIONS AND BENEFITS
OF THE BOD, BOARD OF MANAGEMENT
AND SUPERVISORY BOARD

Reviewing, giving comments and voting for approval Management to operate capital mobilization, credit
of the plan on capital allocation and other resources and other economic activities;
as a basis for the Board of Management to carry out
Supervising effectively and efficiently the
the business plan assigned by the Board of Directors,
OPERATION OF
establishment and maintenance of internal control
including: plans on capital mobilization, credit, finance,
activities;
property procurement and construction, information
technology, labor and people development;
THE BOARD OF DIRECTORS IN 2019

Voting for approval of the audited financial statements
of BIDV;
Studying, commenting on the formulation and voting
to issue regulations, decisions on decentralization, Attending meetings of the BOD; discussing and voting
authorization and powers for the Board of
In 2019, the Board of Directors (BOD) of

BIDV organized plenary meetings and
permanently collected written opinions
on issues within the authority of the
BOD to ensure a comprehensive view of
all business operations, making timely
decisions on key issues of the bank, as
well as overseeing the operations of
the Board of Management. Performance
of the BOD in 2019 is presented in the
Directors’ Report.
PERFORMANCE
OF THE BOD MEMBERS
The BOD members fully exercised their rights and strategies, business policies and medium and long- or giving written comments on all issues under the subsidiary units under BIDV to provide information
duties in accordance with the Bank’s Charter and term development plans, annual business plans of authority of the BOD; being personally responsible and documents on financial situation and business
the General Meeting of Shareholders’ authorization, BIDV; before law, the General Meeting of Shareholders and operations of BIDV and/or its subsidiary units for
particularly: the BOD for his/her decision. exercising his/her duties;
Voting to approve and directing the successful
Exercising honestly the BOD’s tasks and rights in implementation of increase in charter capital through Implementing resolutions and decisions of the General Being personally responsible to the General Meeting
accordance with the Regulation on Organization issuing shares to the strategic foreign investor; Meeting of Shareholders and the BOD in line with the of Shareholders and the BOD for his/her activities,
and Operation of the BOD and the BOD chairman’s bank’s Charter and applicable laws. as well as disclosing all related benefits according to
Directing the implementation of setting up funds,
assignment for the interests of BIDV and shareholders; applicable laws.
distributing profits and paying dividends according Requesting the Senior Executive Vice President
Giving constructive inputs and voting for approval of to the contents approved by the General Meeting of (SEVP) in charge of the BOM, SEVPs and directors of
Shareholders;

ACTIVITIES OF INDEPENDENT NON-EXECUTIVE BOARD MEMBER
During the operation, the BOD’s independent member Voting the BOD’s programs and action plans;
fully participated in the BOD’s activities in accordance programs, contents and documents of the General
with the law and BIDV’s internal regulation, specifically: Meeting of Shareholders; convening the GMS or
collecting shareholders’ written opinions.
Participating in all BOD’s meetings in accordance with
regulations. Participating in Risk Management Committee under
MEETINGS OF THE MEMBERS OF THE BOARD OF DIRECTORS the BOD as a member of credit risk and critical risk
Voting for issuance of internal regulations on
IN 2019 organization, human resources, governance,
management groups, actively giving inputs on
the development of risk management policies and
operations of BIDV and other issues under the
procedures.
In 2019, BIDV’s BOD held 04 regular and 02 extraordinary meetings, particularly: jurisdiction of the BOD.
With the independence of the BOD member, the
Voting for issuance of policies and strategies under
role of the independent member in BIDV’s Board of
Starting/ the authority of the BOD; participating in supervising
No. of Directors has contributed positively to improving the
ending date Attendance Reasons for the implementation of such policies and strategies as
No. BOD Member Position meetings objectivity, transparency, efficiency and quality of
of being BOD rate absence assigned by the BOD.
attended decisions made by the BOD.
member
Participating in reviewing financial reports prepared by
1 Mr. Phan Duc Tu Chairman 6/6 100%
an independent auditor.
Retired from
2 Mr. Bui Quang Tien Member 1 June 2019 3/6 50%
1 June 2019
Absent for the

4th quarter BOD’s CORPORATE GOVERNANCE TRAINING COURSES ATTENDED BY
3 Mr. Tran Thanh Van Member 5/6 83%
meeting in 2019
due to business trip
MEMBERS OF THE BOD, SUPERVISORY BOARD, CHIEF EXECUTIVE
4 Mrs. Phan Thi Chinh Member 6/6 100% OFFICER, BOARD OF MANAGEMENT AND SECRETARIAT IN 2019 WERE
5 Mr. Ngo Van Dung Member 6/6 100% AS FOLLOWS:
Retired from 1 June
6 Mr. Nguyen Van Loc Member 1 June 2019 3/6 50%
2019
Elected as BOD No. Training courses Participants

Mrs. Nguyen Thị Thu member at BIDV’s
7 Member 26 April 2019 3/6 50%
Huong Annual GMS on 26
Training course on updated risk management and internal control ac-
April 2019
1 cording to Coso standard for banks. 3 members of the Supervisory Board
Absent for the Time: 15 March 2019
1st quarter BOD’s
Workshop on updating the internal audit regulations and experience in
meeting in 2019,
Mr. Pham Quang 2 organizing effective internal audit functions at listed companies 3 members of the Supervisory Board
8 Member 5/6 83% written power of
Tung Time: 15 March 2019
attorney to BOD
member Ngo Van Workshop on “The role of the company secretary in modern corporate
Dung 3 governance.” 1 member of BOD’s Secretariat
Time: 11 June 2019
Elected as BOD
member at BIDV Project kick-off: “Enhancing capacity in improving the equity and trans-
27 December Extraordinary 4 parency of Vietnam’s stock market” 1 member of BOD’s Secretariat
9 Mr. Yoo Je Bong Member 0/6 0%
2019 Meeting of Time: 20 June 2019
Shareholders on 27
December 2019 Workshop on Risk management in the digital era
5 1 member of the Supervisory Board
Time: 4 October 2019
Independent
10 Mr. Le Viet Cuong 6/6 100%
Member Future bank leader course
6 1 member of BOD’s Secretariat
Time: 20 May – November 2019
In addition to the regular and extraordinary meetings, the Board of Directors also organized thematic working 7
Training course on Modern commercial bank management
1 member of BOD’s Secretariat
Time: 2019
sessions to discuss, clarify and unify direction for the operation of the whole bank.

enhancing risk appetite and implementing the internal NOMINATION COMMITTEE
capital adequacy assessment process (ICAAP); credit
target operating model (CTOM). The Nomination Committee is the advisory body, advising
and assisting the BOD in implementing its duties and powers
(2) Advising the Board of Directors on supervising the on issues related to governance, people development,
system risk management: rewards, remunerations, etc. and other issues related to
personnel.
Advising and supervising the handling of and overcoming
shortcomings and limitations on risk management upon In 2019, the Nomination Committee advised the BOD
requirements and recommendations by the State Bank, on the following issues:
independent auditing firms, internal audit and other
functional agencies. Giving opinions on the organizational model of all
departments at the Headquarters.
Conducting quarterly bank-wide risk management
reports: Comprehensive assessment of the Advising on the process of appointing Head of the business
implementation of the master risk management groups.
OPERATIONS OF THE BOD’S COMMITTEES framework at BIDV; Reviewing mechanisms and policies
Giving opinions on the plan on the appointment of the
on material risk management and the implementation
position of Head of BIDC Hanoi Branch.
of targets and limits on bank-wide risk management.
BIDV has four committees under the BOD, including: practices, particularly:
Thereby, the Risk Management Committee issued Giving opinions on the plan of merging the Research Center
Risk Management Committee, Nomination Committee,
(1) Advising the BOD on the bank-wide risk management warnings and recommendations, proposing solutions to into BIDV Training School.
Strategy and Organization Committee; and Information
issues at BIDV according to practice, and SBV’s regulations, the BOD to limit and prevent risks.
Technology Committee. The BOD issued separate Giving opinions on the staff planning for the position of
including:
organizational and operational regulations for each In 2019 the Risk Management Committee complied Head of BIDV Representative Office in Da Nang City.
committee. Advising the BOD to implement the internal control with the functions and tasks according to the Regulation
Giving opinions on staff planning for the position of Head of
model, compliance control, policy of three lines of on Risk Management Committee, accomplishing the
In 2019, the Committees fully and promptly implemented Da Nang Branch.
defense and control conflicts of interests in managing planned tasks and meeting the risk management
their functions and tasks as stipulated in their respective
material risks (credit, market, liquidity, operation, bank requirements in banking. Assessing the value of work and making proposals for
organizational and operational regulation.
book interest rates). renewing the salary scheme.
The structures of the BOD’s committees were as follows: Committee members:
Advising the BOD to build a culture of control and risk Advising the Regulation on retirement benefits for officers.
culture at BIDV. Chairman:
Mr. Ngo Van Dung – BOD Member. Giving opinions on the establishment of the Core Banking
RISK MANAGEMENT COMMITTEE Advising the BOD to approve the issuance of policies and
Members: system transformation Project Management Unit at BIDV
strategies for managing material risks, including: policies and the benefit policy for officers participating in the Project
In order to improve the system management capacity of Mr. Le Viet Cuong – BOD Member.
on credit risk management, bank book interest rate risk Management Unit.
the BOD, Risk Management Committee was established
management, market risk management; centralized Mr. Pham Quang Tung - BOD Member.
as a unit under the BOD with the function of advising, Committee members:
risk management in proprietary trading, methods for
consulting and assisting the Board to handle issues Mr. Le Kim Hoa – Senior Executive Vice President.
determining credit risk limit and application at BIDV. Chairman: Mr. Phan Duc Tu – Chairman of the BOD
related to BIDV’s bank-wide risk management. Mr. Can Van Luc – Chief Economist, Head of Training
Advising the BOD on reviewing, assessing bank-wide and Research Institute. Members:
In 2019, the Risk Management Committee
risk management policies and mechanisms: Assessment Mr. Tran Thanh Van - BOD Member.
implemented the following tasks: Head of Credit Management Dept.
report on risk management framework, bank-wide risk
Mrs. Nguyen Thi Thu Huong - BOD Member
In 2019, implementing the BOD’s direction on enhancing management policies and recommendations to complete Head of Market and Operational Risk
and improving the institutional development, enhancing the overall risk management framework to meet the SBV’s Management Dept. Mrs. Phan Thi Chinh – BOD Member.
the risk management capacity in accordance with Circular 13; Advising on credit limits by industries and Mr. Pham Quang Tung - BOD Member.
Head of Legal Affairs.
the best practices, on the basis of following the SBV’s sectors in the period 2019-2021; Evaluation report and
Mrs. Nguyen Thi Minh Hang - Head of Assistant Mr. Le Ngoc Lam – Senior Executive Vice President
regulations in Circular 13/2019/TT-NHNN dated 18 May proposal on system credit risk management measures in
Division, Risk Management Committee. in charge of the BOM.
2019 on internal control system of commercial banks, the 2019.
Risk Management Committee implemented functions Full-time, standing member: Mr. Nguyen Thien Hoang - Senior Executive Vice President.
Advising on implementing projects on applying risk
and duties according to the Regulation on organization Mr. Le Ngoc Quy - Risk Management Committee. Mr. Tran Xuan Hoang - Senior Executive Vice President.
management in accordance with Basel II standards
and operation of the Risk Management Committee in
at BIDV: Project on comprehensive risk assessment, Head of Finance Dept.
accordance with the SBV’s regulations and common
Member cum Secretary: Head of Human Resources Dept.

INFORMATION TECHNOLOGY Committee members:
COMMITTEE
Chairwoman: Mrs. Phan Thi Chinh – BOD Member in
The IT Committee was established under the direction charge of IT
the BOD and has the authority to decide on IT-related Members:
issues as authorized by the Board of Directors.
Senior Executive Vice President in charge of IT Dept.
In 2019, the IT Committee advised and assisted the
Senior Executive Vice President in charge of IT Center.
BOD on directing all IT activities at BIDV. In 2019, the IT
Committee fulfilled the set targets and requirements. Head of Technology Department.
Head of IT Center.
In 2019, the Information Technology Committee
advised the BOD on the following issues: Head of Finance Department.
Head of Premises and Facility Management.
In 2019, the IT Committee held 03 meetings and
advised the Board of Directors on 17 issues under the Independent member.
BOD’s decision-making authority relating to BIDV’s
STRATEGY AND ORGANIZATION Direct discussion on reviewing the organizational IT activities such as: Directing the development
COMMITTEE model and a number of proposals to improve the and submission of IT Plan 2019, 2020; Directing
effectiveness of supervision and inspection in the the implementation of key projects: New Core
The Strategy and Organization Committee was coming time. banking transformation project, Procurement and
established by the BOD to advise and assist the Board
Giving written comments on: (i) Report on review implementation of trade finance system software
on issues relating to strategic management and
of no-division department model at BIDV; (ii) at BIDV, projects and software to serve Basel II, the
organizational model of the Bank.
Recommendation report on the model of ICAAP project on building and deploying Data marts and RMS
In 2019, in accordance with the change to senior project consultant related to overall risk assessment reports, equipping ALM system solution, meeting the
personnel of BIDV, the Strategy and Organization component. requirements of Circular 13...; Approving procurement
Committee submitted to the Board of Directors for projects/plans under the approval authority of the
approval of the Committee’s personnel. Up to now, the Committee members: Board of Directors.
Strategy and Organization Committee is composed
Chairman: Mr. Pham Quang Tung – BOD Member.
of 9 members (including the Chairman; 8 members of
which 1 member cum secretary). Members:
Mrs. Nguyen Thi Thu Huong - BOD Member.
In 2019 the Strategy and Organization Committee
advised the BOD on the following issues: Mr. Ngo Van Dung - BOD Member.
Successfully fulfilling its mission of advising the BOD on Mr. Le Viet Cuong - BOD Member.
issues of strategic management, development strategy, Mr. Le Ngoc Lam – Senior Executive Vice President in
business plan, organizational structure and governance charge of the BOM.
model of the whole system, particularly:
Mr. Nguyen Thien Hoang
Continuing to closely follow and direct related – Senior Executive Vice President.
units to urgently complete: (i) the bank’s amended
Mr. Can Van Luc – Chief Economist, Head of Training and
restructuring plan associated with handling bad
Research Institute.
debts in the period of 2016-2020 according to the
direction of the State Bank of Vietnam; (ii) Drafting Head of Human Resources Dept.
BIDV Development Strategy to 2025, and vision to
Member cum secretary: Head of Strategy and Corporate
2030 before submission to the Board of Directors for
Planning Dept.
approval.

OPERATION OF
THE SUPERVISORY BOARD
IN 2019
Monitoring the operation and compliance with provisions
of law, Bank’s Charter and Resolutions, Decisions of the
General Meeting of Shareholders by the Board of Directors,
Chief Executive Officer and other managers in managing
and administering BIDV, the coordination between the
Supervisory Board and the Board of Directors, the CEO In 2019, the Supervisory
and shareholders; supervising high-level managers Board carried out
according to Circular 13/2018/TT-NHNN for internal audit
and fulfilled duties as
activities; Monitoring the results on implementing BIDV’s
stipulated in the Bank’s
Restructuring plan in association with handling bad
debts in the period of 2016-2020 in accordance with the Charter, Regulation on
documents approved by the State Bank of Vietnam. organization and operation
of the Supervisory Board,
Directing the Internal Audit to comprehensively complete
particularly:
the internal audit plan in 2019 with expanded audit scope
and increased number of audited units compared to 2018;
Developing an audit program and performing an audit of
capital adequacy ratio in accordance with Circular 41/2016/
TT-NHNN on regulations of safety ratios for banks and
foreign bank branches.
Continuing to direct the strengthening of internal audit

amendments to the documents in compliance with
capacity. Directing the implementation for components of
current regulations, meeting the requirements and actual
MEETINGS OF THE SUPERVISORY BOARD
internal audit software project, outsourced IT audit projects
operation of BIDV, the Supervisory Board, and Internal
for partner management activities connected to BIDV’s
Audit, etc.
system. In 2019, the Supervisory Board organized 04 quarterly meetings fully attended by the 03 Supervisory Board’s
Supervising and directing the implementation of members, at the same time regularly collecting written opinions, organizing consultations to discuss and approve
Approving the proposal of the Internal Audit unit
selection of an independent audit firm for year 2020-2021 contents within the functions and tasks assigned in accordance with law.
regarding personnel organization, salary, emulation,
according to the Resolution of the General Meeting of
remuneration, planning and appointment of the Internal
Shareholders.
Audit unit. Starting
No of Reason
Regularly monitoring and updating the lists of related date of Attendance
Directing the development and approval of the audit No Member Position meetings for
persons of the BOD members, Supervisory Board, CEO, being rate
plan for 2020. Setting orientation for internal audit of risk attended absence
and shareholders owning at least 5% of BIDV’s voting member
management and IT activities in the period of 2020-2022.
shares while supervising the information disclosure of Head of
Appraising financial statements 2018 and semi-annual these changes. 1 Mrs. Vo Bich Ha Supervisory 17 April 2015 04/04 100%
Board
financial statements 2019.
Strengthening coordination and information exchange
2 Mr. Cao Cu Tri Member 1 May 2012 04/04 100%
Reviewing, updating and completing the internal between the Supervisory Board and the Board of
document system of the Supervisory Board, proposing Directors, CEO, the first line of defense, the second line of 3 Mrs. Nguyen Thi Tam Member 1 May 2012 04/04 100%
defense according to the current regulations.

TRANSACTIONS,
REMUNERATIONS AND
KEY TASKS BENEFITS OF THE BOD,
IN 2020
BOARD OF MANAGEMENT AND
SUPERVISORY BOARD
SALARIES, BONUSES, REMUNERATIONS AND BENEFITS
The BOD, Board of Management and the Supervisory Board were within general budget of the bank and
Board are entitled to salary, remuneration and other paid depending on their position and performance.
benefits in accordance with BIDV’s current regulation.
In 2019, actual remuneration for members of the BOD
Accordingly, the salary, remuneration of the members
and the Supervisory Board was ensured at 0.41% at the
of the BOD, Board of Management and Supervisory
maximum of the consolidated profit after tax.
Based on the functions and tasks prescribed in BIDV’S Continuing to direct, deploy the project/outsourcing of
INTERNAL SHAREHOLDER TRANSACTIONS: none
Charter and the Regulation on organization and operation Internal Audit.
of the Supervisory Board, personnel situation of the
Reviewing, supplementing and amending the internal CONTRACTS OR TRANSACTIONS WITH INTERNAL SHAREHOLDERS
Internal Audit and 2020 Business Plan, the key tasks of the
document system to serve the operation of the
Supervisory Board for 2020 are as follows:
Supervisory Board and Internal Audit. Receivables (Payables)
Stakeholders Balance
Performing supervisory duties in accordance with law, (VND million) (VND million)
Preparing, storing and updating the lists of related persons
the State Bank’s regulation and BIDV’s Regulation on
of the members of the BOD, Supervisory Board, CEO, and Deposits of BIDV at regulators 132,327,499 -
organization and operation.
shareholders owning at least 5% of BIDV’s voting shares. State regulators Deposits of regulators at BIDV - (98,314,832)
Directing the implementation of internal audit plan for
Fully holding periodical meetings; reviewing and Loans from regulators - (9,761,582)
2020, developing internal audit plan for 2021.
approving issues under the functions and duties of the Deposits of strategic shareholder at BIDV (50,096)
Appraising periodical financial statements according to Supervisory Board.
Strategic shareholder Deposits of BIDV at the strategic shareholder 67,631 -
regulations; reviewing BIDV’s important financial and
accounting policies and reports when necessary. Loan from strategic shareholder (231,700)
Deposits of Joint ventures - (2,112,253)

Joint ventures Deposits of BIDV at joint ventures 2,151,280 -
Loans from BIDV to joint ventures 97,724 -

Deposits of associated companies at BIDV - (973,297)
Associates
Loans from BIDV to associated companies 641,423 -

IMPLEMENTATION OF CORPORATE GOVERNANCE REGULATIONS
BIDV’s corporate governance complies with provisions of

INTERNAL SHAREHOLDERS’ NUMBER OF SHARES law on corporate governance applicable to large-scale and
AS AT 31 DECEMBER 2019 listed public companies such as the Law on Enterprises,
Law on Credit Institutions, Securities Law, Government’s
Decree 71/2017/ND-CP on corporate governance
Closing
Ownership applicable to public companies, Circular 155/2015/TT-BTC
No Full name Position at BIDV number of
percentage guiding the disclosure of information in the stock market
shares
and other relevant regulations.
I Members of the Board of Directors
In 2019, BIDV’s General Meeting of Shareholders approved
1 Mr. Phan Duc Tu Chairman 43,513 0.00127%
some amendments and supplements to the Bank’s
2 Mrs. Nguyen Thị Thu Huong BOD Member 0 0% Charter, the Regulation on the organization and operation
3 Mr. Tran Thanh Van BOD Member 43,645 0.001281% of the Board of Directors, issuing new Regulation on BIDV
4 Mrs. Phan Thi Chinh BOD Member 29,186 0.000859% governance, and adjusted related governance documents
to ensure conformity with law and actual operation.
5 Mr. Ngo Van Dung BOD Member 780 0.000023%
Continuing to fine-tune the internal control system,
6 Mr. Pham Quang Tung BOD Member 1 0…1% improving the quality, efficiency, effectiveness of the
7 Mr. Yoo Je Bong BOD Member 0 0% inspection and supervision; finalizing and upgrading the
8 Mr. Le Viet Cuong Independent BOD member 0 0%
risk management system in line with Basel II principles and
standards. BIDV was approved by the SBV to implement
II Members of the Supervisory Board the SBV’s Circular 41/2016/TT-NHNN from 1 December
1 Mrs. Vo Bich Ha Head of Supervisory Board 9 0…1% 2019, ahead of the deadline.
2 Mrs. Nguyen Thi Tam Member 8,545 0.00025%
In the upcoming time, BIDV will continue to research
3 Mr. Cao Cu Tri Member 3,581 0.0001% and standardize the governance in accordance with
III Members of the Board of Management good international practice for sustainable development,
timely meeting market demands and practical operating
Senior Executive Vice President
1 Mr. Le Ngoc Lam 723 0.00002% requirements of BIDV; significantly contributing to bringing
in charge of BOM
BIDV to become a modern bank with high business
2 Mr. Quach Hung Hiep Senior Executive Vice President 35,078 0.00103%
efficiency, meeting the development requirements and
3 Mr. Tran Xuan Hoang Senior Executive Vice President 23,081 0.000681% deeply integrating into the regional and global financial
4 Mr. Tran Phuong Senior Executive Vice President 21,147 0.000612% and banking systems.
5 Mr. Le Kim Hoa Senior Executive Vice President 42,983 0.001266%
6 Mr. Le Trung Thanh Senior Executive Vice President 2,252 0.00007%
7 Mr. Nguyen Thien Hoang Senior Executive Vice President 0 0%
8 Mrs. Ta Thi Hanh Chief Accountant 2,253 0.00007%

OVERVIEW OF THE SUSTAINABLE DEVELOPMENT REPORT
SUSTAINABLE ECONOMIC DEVELOPMENT
INVESTING IN PEOPLE DEVELOPMENT
INVESTOR RELATIONS
SUSTAINABLE DEVELOPMENT CUSTOMER ORIENTATION
CONTRIBUTING TO ENVIRONMENT IMPROVEMENT
REPORT INFORMATION DISCLOSURE UNDER GRI STANDARDS

O V ER V IEW OF 1
BIDV publicly demonstrated its responsibility
for sustainable development. In its
TH E SU ST AIN A B L E D EV EL O PM EN T
annual report, BIDV always announces
the sustainable development report
which is conducted according to GRI
RE POR T
standards, stating its responsibilities to the
environment, society and employees.
BIDV always focuses on and professionalizes

2 the environmental and social risk management
through the credit extension process. BIDV
carefully evaluates environmental risks when
appraising projects, requiring customers to
strictly comply with the law on environmental
protection. During the implementation of
projects, BIDV regularly monitors and manages
environmental and social risks in association
with the disbursement process, ensuring the
projects funded by BIDV have minimal negative
impact on the environment.
BIDV is always pioneering and active in social BIDV determines that building, maintaining
3 security activities. The bank’s social security 4 and fostering human resources in terms of
programs target the right people and are both quantity and quality are the core task
Recently, Vietnam’s economy has maintained a high growth implemented timely, creating positive effects in the bank’s business strategy. Staffing
rate, however the economic model depends much on resources, which are recognized by the community. 26,000 employees with female being in the
with low technological level compared to the world average majority, BIDV always gives priority to people
which leads to air and water pollution; mineral resources and development.
forests have been increasingly depleted. The indispensable trend
for Vietnam in the coming time is sustainable development,
environmental protection, energy efficiency, and efficient use of These efforts have brought about economic benefits and long-term reputation for BIDV, particularly:
water and other natural resources.
Sustainable development, in a broad sense,
Banking contributes Banking is a smokeless industry, which in principle has little or no
1 consists of the sustainability of capital
significantly to the direct impact on the environment. However, in fact it contributes
structure - assets, customer base, and
significantly to the sustainable development and has indirect
sustainable development financial soundness, which is the basis for
impact on its large customer base.
BIDV to meet BASEL II standards, successfully
and has indirect impact on
Over 63 years of development, BIDV has become one of the implementing the business strategy and
its large customer base
largest commercial banks in Vietnam, with total assets reaching vision to 2030, with specific goals of being
over VND1.49 quadrillion, individual customers accounting for among the Top 20 largest banks in Southeast
11% of the country’s population, and SME customers making up Asia, Top 100 largest banks in Asia Pacific and
40% of total SMEs nationwide. To grow the business scale and Top 300 largest banks in the world by total
customer base, BIDV has been looking for solutions to linking assets.
business activities to customers’ interests. Firstly, in its business
strategy and vision to 2030, BIDV has clearly defined the goal Sustainable development helps BIDV not only minimize credit risks, but also enhance its reputation,
of bringing the best benefits and convenience to customers, 2 gaining recognition and trust from the international community. Particularly, in 2018, building on
shareholders, employees and society. Over the past years, BIDV the experience gained during the actual implementation of the Environment and Social Affairs
has implemented many solutions to deliver sustainable values to Department, BIDV studied and successfully developed the Environmental and Social Risk Management
the community as well as businesses, including: System (ESMS) in compliance with international practice and Vietnamese laws. The Asian Development
Bank (ADB) agreed to provide BIDV with USD300 million of medium and long-term credit facility to
support SMEs in Vietnam.

Sustainable development builds a positive
3 image of BIDV on society, shareholders and
employees. By seriously implementing the
sustainable development strategy, in 2019,
BIDV was honored in Top 10 Sustainable STAKEHOLDER ENGAGEMENT
Enterprises in the field of commercial
services by the Vietnam Chamber of
Commerce and Industry in collaboration We identified stakeholders based on possible Identifying key stakeholders
with relevant ministries and agencies. effects of BIDV’s activities on them or on
Organizations and individuals are considered
BIDV gains the loyalty of employees and individuals/organizations, which have interest
stakeholders include shareholders, investors,
customers in their work as well as products in and influence on BIDV’s current activities. We
customers, employees, regulators, community,
and services. approach stakeholders through different sources
media agencies, partners, and suppliers.
of information in an appropriate manner in
We actively consulted the stakeholders and
order to listen to the opinions and concerns of
2019 was the fourth consecutive year that BIDV has implemented the Sustainable Development Report under a cooperated to ensure the harmony of interests
each party about BIDV’s operation; particularly
comprehensive plan in accordance with the GRI Standards. The main contents of the report include: among the parties.
the corporate governance, human resources
development, economic growth, and social and
environmental contribution.
CONTENTS KEY TOPICS
The dialogues with parties also helped BIDV
proactively identify contemporary issues as well
The report records the important activities of BIDV Key topics in the report include: as objectively evaluating the policies, reports
related to sustainable development issues in 2019. and public disclosure of information that we
This report consists of standard information disclosure have made.
based on the GRI Sustainability Reporting Standards of GRI
100 Universal standards
Global Reporting Initiative.
The Sustainable Development Report 2019 was

informed to the shareholders and stakeholders of GRI
BIDV. 200 Economic standards
SCOPE GRI
300 Environmental standards
Shareholders,
This report is conducted on an annual basis and Customers Employees Regulators
investors
included in the Annual Report. The information and GRI Social standards
400
data in the report were updated between 01 January
2019 and 31 December 2019 along with several
indicators with historical data to show the growth/
The selection of key topics was implemented through
development compared to the past.
reference to the GRI Standards and considering
other stakeholders that had direct effect on BIDV,
assessing the significance of topics in the context of
sustainability of the business, the country and the
region.
Community Media Partners
and suppliers

Methods and frequency of interaction with stakeholders
Methods of interaction with stakeholders Frequency of interaction with stakeholders
For each group, BIDV applied a different method to approach. We carefully considered all the feedbacks
of the stakeholders, studying and taking into account to apply to our bank’s policies and activities.
Community
Coordinating with local authorities Annually
Meeting to understand the expectation of local Annually
people.
Methods of interaction with stakeholders Frequency of interaction with stakeholders
Social security programs, joining hands with local Quarterly
authorities.
Shareholders/Investors
Shareholders meeting Annual or extraordinary
Regular information update through IR website, Monthly or when incurred
direct, phone, email
Media agencies
Meeting up with analysts Frequently after quarterly financial figures are
Press conference Quarterly
released
Press releases/periodical business reports Quarterly
Experts providing information to the press When requested
Customers
Direct interview Quarterly
Contact center and 24/7 hotline 24/7
Satisfaction survey Quarterly Suppliers
Social media and social listening newsletter Daily Direct meeting, supplemented in the procurement When incurred
regulations, cooperation with suppliers
Maintaining competitiveness Frequently in the process
Ensuring transparency in bidding offers Frequently in the process
Quality service, clear origin of goods Frequently in the process
Employees
Satisfaction survey Annually via anonymous survey
Annual employees conference Annually
Internal channels: Intranet, internal newsletters Daily
Communication with Trade Union Monthly
Connecting and educational environment Daily Identifying key issues development (GRI, CSR, ACGS, ADB, IMF, and PWC) to
identify a list of environmental, social and governance
BIDV regularly works with stakeholders and consults
topics.
experts to identify key issues through activities such as:
Regulators Regularly working, interacting, consulting, conducting
Participating in workshops on Vietnam market research
Maintaining regular dialogue mechanism Monthly surveys to collect opinions from employees,
and evaluation to update market trends, competitors
Meeting up for discussion at forums When incurred departments and units at BIDV, shareholders, investors,
and developments in the world’s market which may
customers and partners to gather feedbacks on
BIDV Training and Research Institute provides Monthly, quarterly depending on topics impact Vietnam’s market in order to identify key issues
macroeconomic and thematic reports the environmental, social, and governance topics.
in the fields BIDV is operating in.
Contributing inputs to drafts and policies When requested BIDV also referred to the reports and assessments of
Referring to the information from various sources stakeholders, documents of rating organizations for a
of stakeholders, experts’ opinions on sustainable broader view of the topics of interest.

SUSTAINABLE ECONOMIC
DEVELOPMENT
BIDV defines that the sustainable development goal
can only be attained when the economic goals are
SIGNIFICANT CONTRIBUTION DEVELOPMENT OF INDUSTRIES AND LOCAL ECONOMIES
ensured (see more at section on Business results TO THE STATE BUDGET BIDV accompanied enterprises across the country solutions, mechanisms and policies for enterprises to
on page 90). The comprehensive accomplishment
through connecting banks and enterprises; facilitating facilitate access to banking loans and services such as
of business targets over the years has laid solid
BIDV has been among largest taxpayers in the country their access to bank credits; supporting businesses simplifying credit extension process; administrative
foundations for BIDV to fulfill its social responsibility
for years. For three years 2017-2019, BIDV had paid in areas and industries according to the long-term reform, providing large-scale credit programs and
through contributions to the State budget, delivering
VND14,169 billion to the State budget, of which development orientation of the Government and the packages with preferential interest rates, with priority
sustainable financial benefits to shareholders and
VND8,168 billion was for 2019. High net income State Bank of Vietnam, contributing to supporting the given to small and medium enterprises, export
employees. Developing economic sectors, local
and profit, boosted service activities, and improved long-term economic development goal. Implementing financing and high-tech businesses.
economies, supporting small and medium enterprises
employee income are key factors to increase BIDV’s tax
(SMEs), making significant contributions to hunger
payments to the State budget. BIDV’s loans to priority areas:
elimination and poverty reduction, and improving
Unit: VND billion
living conditions.
No. Indicators 31 Dec 2018 31 Dec 2019 Growth
ENSURING THE INTERESTS Total outstanding loans 988,739 1,116,998 12.22%
OF SHAREHOLDERS Total loans to priority areas 571,703 684,754 19.77%
1 Export financing 44,203 52,839 19.54%
2 Small and medium enterprises 240,794 288,241 19.70%
BIDV paid dividends totalling VND4,560 billion in
cash for 2 years 2017 and 2018 to shareholders at the 3 Agriculture and rural development 234,432 278,819 18.93%
dividend payout ratio of 7% p.a. 4 Supporting industries 46,741 57,806 23.67%
5 High-tech businesses 5,533 7,049 27.40%

SUPPORTING SMALL AND MEDIUM-SIZED ENTERPRISES FOREIGN ENTRUSTED FUND OPERATION
In 2019, BIDV continued to allocate resources for BIDV was the first bank in the banking system to Recognizing the importance of the management
supporting Small and Medium-sized Enterprises mobilize and manage foreign entrusted programs/ and use of foreign entrusted capital, BIDV has
(SMEs), particularly: projects in Vietnam. With strength and experience in been constantly improving its operational quality
investment credit and a wide network of branches and strengthening the application of information
and transaction offices across the country, BIDV technology in management to ensure prompt and
has mobilized and managed more than 200 foreign professional project servicing as prescribed by donors
Diversifying product portfolios for SME
entrusted capital programs/projects with total capital and ministries, standardizing processes, formulating
customers towards increasing products of
committed by donors reaching more than USD17.8 mechanisms for management, control and promotion
high-tech content and utilities for businesses
billion from the Government of Germany, Switzerland, of effective disbursement of funds. Entrusted lending
such as launching “Online borrowing for
Russia, France and international financial organizations was strengthened with a focus on enhancing the
business” via BIDV’s website and cashless
such as WB, ADB, JBIC, NIB, EIB, etc. quality of risk management in order to ensure the
payment. In 2019, 14 products were newly
growth of outstanding entrusted loans was associated
launched, upgraded, modified and officially Some outstanding major projects managed and
with safety to maintain trust with donors, well
deployed by BIDV (07 credit products, 03 implemented by BIDV included: Power Transmission
performing tasks authorized by the Ministry of Finance
specialized deposit products and 04 payment Improvement Project (USD500 million); Northern
and the State Bank of Vietnam regarding on-lending
products), meeting the diverse needs of power transmission project and greater northern
programs/projects.
businesses. power transmission project valued at USD480 funded
by ADB; Power sector reform policy development In 2019, in the context of many changes in the
program – Phase 1 (USD312 million); Sustainable Government’s entrusted fund management
Providing over VND100,000 billion of Agriculture Transformation Project (USD238 million), mechanism, BIDV successfully mobilized capital for
preferential loans through credit packages and Integrated Rural Development Project to Improve large projects such as “Skills and knowledge program
programs to support SMEs with development Adaptation to Climate Change in the Mekong for inclusive economic growth worth USD75 million
potential, micro-businesses and start-up Delta (USD310 million). In addition, BIDV was also from ADB and “Integrated dynamic urban area
enterprises who were new businesses/ active in deploying and disbursing large foreign development” worth USD141 million from WB. As
enterprises transformed from business entrusted capital programs in sustainable economic of 31 December 2019, outstanding loans from the
households according to the direction of the development areas and local economic development foreign entrusted fund to programs/projects on-lent
Government and the State Bank. The credit such as: Supporting SMEs funded by JICA; Developing by BIDV reached VND50,600 billion, which affirmed
packages were tailored to each customer renewable energy funded by WB; Energy efficiency BIDV’s prestige and position in the foreign entrusted
group by region and business line, with priority funded by WB; Supporting housing development fund operation for donors, ministries, agencies and
given to areas that need support. funded by AFD; Housing finance funded by ADB…, customers.
contributing to helping SMEs, private businesses and
With the results achieved, BIDV was an effective
individuals to access preferential medium and long-
To date, BIDV is the first and only bank to be bridge for the foreign borrowing by the Government,
term capital from international donors.
selected by Vietnam Ministry of Planning becoming a role model for implementing foreign
and Investment to sign a master agreement entrusted funds, contributing positively to the hunger
on implementing indirect loans from SME elimination, poverty reduction and the improvement
Development Fund. of living conditions, and was acknowledged and
appreciated by donors, ministries and agencies.

Being considered for participation in domestic
and overseas coaching, training courses, surveys,
INVESTING IN
Promoting the application of
and workshops according to job requirements in
4 IT to work, thereby increasing
order to improve business administration skills,
productivity and labor efficiency.
PEOPLE DEVELOPMENT
professional qualification, foreign languages,
political arguments, and soft skills, etc.
Officially applying the Training Participation in unions at BIDV: Youth Union,

5 program framework as per job Trade Union, female staff union, etc.
position associated with the
Provided with business uniforms and necessary
competency framework and job
working equipment.
91.5%
description for each position/job
group, improving the effectiveness Being taken care of material and spiritual life:
of employees have
of international cooperation on periodical health check; vacation, convalescence,
bachelor’s degrees
or higher human resources training, thereby sickness and wedding visits, etc.
making the best use of financial
support, training contents, lecturers Being considered and facilitated for accessing
and teaching methods. loans.
Other benefits: buying stock, participating in

HUMAN RESOURCES QUALITY BIDV’s property projects.
BIDV has built up good quality
IMPROVEMENT STRATEGY COMPREHENSIVE EMPLOYEE Supported by grassroots party cells to be
human resources in comparison with DEVELOPMENT admitted to the Party (if wished).
other commercial banks in Vietnam.
BIDV has been implementing the human resources
Employees with bachelor’s degrees or quality improvement strategy to meet the BIDV always takes care of the comprehensive TRAINING ACTIVITIES
higher accounted for 91.5%, and were requirements of international economic integration, employee development, fully delivering the material FOR EMPLOYEES
loyal to the bank’s development. This with a focus on the following: and spiritual interests of the employees based on their
contribution and dedication to BIDV’s development
reflected BIDV’s talent attraction and In 2019, BIDV provided training courses for 49,590
in compliance with the provisions of the current law.
retention policy was given priority and BIDV is committed to ensure the following benefits for trainees at all levels: BIDV (with the Training and
Attracting and tapping high quality
consistent over a long period of time 1 human resources, forming a team of employees: Research Institute being the focal point) organized
408 training classes (fulfilling 116% of plan) for 38,464
through professional and prestigious experts in key areas.
Secured jobs and career promotion trainees (meeting 184% of the plan). Branches self-
recruitment in the labor market. The opportunities, assigned to jobs that suit organized training courses for 10,872 trainees, and 254
incentive policy was commensurate qualification, capabilities and work experience. employees trained themselves. Training costs in 2019
Issuing a capacity framework,
with the level of contribution of reached VND17,869,392,557. The average training time
2 developing a set of key Salary raising and sufficient salary payment
in 2019 was 2.24 days per trainee. Programs on skill
employees through a competitive salary performance indicators (KPIs) for according to BIDV’s regulations, provisions of law,
development and continuous learning were organized
and compensation system, and career individuals as a basis for personnel competitive salary in the labor market.
to support employees to secure employment and
development opportunities. Professional organization.
Social insurance, health insurance, career development with 349 courses organized
coaching, management and governance, unemployment insurance and insurance for 24,723 trainees. The training programs covered
schemes as prescribed by the State; allowance all the basic knowledge, mechanisms, policies,
foreign languages and soft skills Improving processes and
schemes when retired or quitting jobs. professional processes, operational software,
training were increasingly strengthened 3 regulations on personnel professional skills, and ethics as per job position.
in terms of both width and depth. organization in association with the Working and rest time regime (annual leave, Training components were prioritized for: Senior and
general competency framework, weekends, holidays, Tet holiday, private leave,
Corporate culture was consistent, and mid-level managers (including future bank leaders);
Management framework and overtime, etc.). Professional knowledge and skills for the retail
working environment was modern and
Professional framework for each banking; Professional training and operational skills
professional. Being considered for rewards at different
position. for branches; Intensive training and expert training in
levels based on annual work performance or
extraordinary achievements. specific specialized fields; Providing training to improve
the quality of transaction offices as well as training to
new recruits.

Coordinating to organize vacations, especially
MEASURING EMPLOYEE
SATISFACTION
cultural activities, sports, social security linked
to the service theme in 2019 “BIDV Smile -
INVESTOR RELATIONS
TOWARDS PROFESSIONAL STANDARDS
Thoughtful, Professional, Quality”, particularly:
Employees’ “satisfaction” is a multidimensional
Organizing the running event “BIDV Smile” in
evaluation measure that helps BIDV consider to
AND EFFECTIVENESS
Hanoi City and Binh Duong province, attracting
make appropriate and timely adjustments to its
the participation of more than 2,500 union
management, governance and personnel policies,
members, contributing to promoting the service
thereby motivating employees’ dedication. In
development movement, raising the awareness
addition to measuring customer satisfaction, BIDV
of union members in improving the quality of
also conducts regular employee satisfaction surveys,
customer service.
focusing on 7 groups of motivational factors,
specifically: Job details, job support, job feedback, Organizing the running event “BIDV Smile – A In 2019, besides complying with regulations to ensure
result recognition, training and development, unit warm New Year for the poor” with the message the rights of shareholders, BIDV drastically implemented
leadership and corporate culture. The program of “A warm New Year for the poor: Million hearts
recommendations from PwC (Vietnam) Ltd. on corporate
attracted the participation and received feedbacks of share one running pace” which created a unique
a large number of employees across the system. The playing field, spreading the spirit of love for the
governance information disclosure in order to apply the
result was that most of the employees expressed their community and promoting the physical training best practices of Information Disclosure and Transparency,
satisfaction and desire to continue working at BIDV movement to improve personal health. The race Equal Treatment to Shareholders, Shareholder Rights
in the next 05 years. In addition, employees also gave attracted nearly 36,500 participants (including
Protection in alignment with international standards. With
precious feedbacks on salary regime and incentive union members, customers and society) who ran
mechanism for employees, career development
a significant number of nearly 22,500 shareholders as of
1,979,084 km, contributing more than VND5.8
opportunities, unit leadership, working environment... billion as gifts for the poor on the occasion of 31 December 2019, BIDV has been continuously improving
The employees’ feedbacks were recognized and Vietnam’s lunar New Year. the quality of Investor Relations towards professional
properly evaluated by BIDV for further improvements.
standards and effectiveness.
PROMOTING DEMOCRACY
WELFARE POLICY
BIDV’s grassroots trade unions built and issued
BIDV always ensures employees are entitled to full schedules and internal rules on receiving union
legal and legitimate rights in accordance with the members and laborers, recognizing and recording
labor law such as: social insurance, health insurance, letters of complaints and denunciations. On a weekly
unemployment insurance, annual leave, compensatory basis, the Executive Committees of the grassroots
leave, periodical health check, etc. In addition, BIDV trade unions assigned staff to receive and solve
supported its employees to buy BIDV-Care voluntary laborers’ problems and petitions on issues related to
retirement insurance, BIC-Care health and accident trade union and professional activities.
insurance.
The bank’s Trade Union well performed internal social

security, timely visiting and assisting employees
living with difficulties or serious diseases. In 2019,
BIDV visited and supported 3,916 union members
and employees with a total amount of nearly VND4.6
billion; well implementing the Study Encouragement
Regulation for BIDV employees’ children, considering
and proposing to praise 7,016 children who had high
academic performance in the 2018-2019 academic
year.

MAINTAINING MULTI-CHANNEL on relevant contents of the Charter and internal ENHANCING TRANSPARENCY, In addition, BIDV has diversified and improved
Regulations. information exchange channels. BIDV’s current
INTERACTION, ENSURING INVESTOR BOLSTERING INVESTORS’ information channels include: Information provided
INTEREST Through frequent contacts and meetings, BIDV has
CONFIDENCE directly to shareholders at the AGM; Information
established and maintained a good relationship with
exchanged at meetings with analysts, investors;
a large number of professional institutional investors
BIDV always attaches great importance to Information published on BIDV website (IR subpage);
The Annual General Meeting of Shareholders (AGM) is both foreign and domestic. With their extensive
transparency, accuracy and timeliness in Information disclosed on terminals of the Stock Exchange
one channel among others that maintains interaction operation and experience, the investors provided
information disclosure. This was reflected in the and the State Securities Committee; Publications of
between BIDV and the investor community while feedback, recommendations and useful suggestions
fact that BIDV has developed a strict regulation Annual Reports, Sustainable Development Reports,
ensuring the interests of investors. Meeting preparation that were of practical value for BIDV’s performance.
on information disclosure not only in compliance Periodical Newsletters to investors and other information
works about timing, venue, shareholder list closing, In 2019, BIDV had more than 40 meetings, working
with the requirements of the law (i.e. Circular press releases.
invitation and documents were carried out in accordance with investment funds, fund managers and securities
No.155/2015/TT-BTC by the Ministry of Finance) but
with relevant regulations and the best practices of companies from many countries to learn about BIDV’s Noticeably, based on approval of the regulatory
also meeting the diversified demand of investors,
corporate governance. At the Meeting, shareholders business as well as the future potential investment authorities, in 2019 BIDV disclosed information and
thus building and maintaining the trust of investors.
had the right to discuss, vote on important issues related in BIDV. At the same time, BIDV also attended the completed full dividend payment of 2017, 2018 in cash at
to BIDV’s activities and to directly raise questions and investment promotion events in Singapore and Tokyo In 2019, BIDV made periodical, extraordinary and 7% p.a.
propose to the BIDV Leadership team. After the Meeting, (August 2019) organized by Ho Chi Minh City Stock by-request disclosures of more than 60 contents in a
BIDV promptly finalized the documents approved by the Exchange (HOSE) and Daiwa Securities to actively timely and adequate manner, including information
AGM and published them on the investor’s website at introduce BIDV to international investors. on financial statements, annual reports, sustainable
the address www.bidv.com.vn to ensure all shareholders, development reports, corporate governance
especially shareholders who did not attend the meeting In addition, to ensure the interests of investors,
reports, AGM invitation, general shareholders
get to access the key contents of the AGM. especially given the large diversified number of
meeting by collecting opinions in written forms,
shareholders, BIDV focused on the management of
changes in senior management… Information was
In 2019, besides the Annual General Meeting of shareholders. The Investor Relations team has actively
also disclosed in English on the bank’s website.
Shareholders held in April 2019, BIDV conducted an supported and answered inquiries and requests from
Extraordinary General Meeting of Shareholders on 27 investors, especially individual investors through
December 2019 to elect an additional BOD member interactive channels such as telephone, email and
from the strategic partner KEB Hana Bank and approve chatbot on the new website.

INVESTOR RELATIONS
12
ORIENTATION IN 2020
MILLION
With the foreign strategic shareholder’s participation, increasing interest
INDIVIDUAL
from investor community and preparation to apply the new regulations of CUSTOMERS
the 2019 amended Securities Law, BIDV plans to carry out the following key
activities in 2020: In 2019, BIDV was the only bank in
Vietnam to acquire 1.45 million new
Continuing to effectively conduct meetings, update information with individual customers, making the total
investor community in general and potential investors who wish to number of individual customers to reach
become BIDV’s financial investors in particular, in order to enhance 12 million, up 12% from 2018.
financial capacity and comprehensively support the development of
BIDV.
Following AGM’s approval, BIDV shall carry out necessary procedures

to pay out dividend to existing shareholders, issue new shares in
compliance with current regulations and ensure interest of shareholders. CUSTOMER ORIENTATION
Continuing to implement the consultant’s recommendations on investor
relations activities; Continuing to improve the content and form of
media publications, considering adding channels to convey information IMPROVING QUALITY
through webcasts; further diversifying and improving the quality of
OF PRODUCTS AND SERVICES
information provided on the BIDV website.
Extending and facilitating investors and analysts to participate in Customer base was expanded while quality of products
analytical conferences through video conference, conference call. and services as well as responsibilities to customers was
strengthened, particularly:
Further increasing the efficiency of information disclosure through
timely and proactive provision of information in both Vietnamese and
English; complying with new regulations of the 2019 Securities Law
towards international practices and standards. Continuing to meet the needs of customers and Ensuring the quality of products and services,
strengthening customer experience: Besides a meeting the increasing banking needs of
For investor relations, please contact: diverse portfolio of over 100 products and services, customers: Particularly 2019 saw the strong growth
BIDV constantly launched flexible products and in the number of e-banking transactions with
In charge of Information Disclosure In charge of Investor Relations packages with new, friendly and modern features nearly 150 million transactions, an increase of 82%
in order to bring the best products and services to compared to 2018.
Mr. Quach Hung Hiep Mr. Dang Xuan Thang
each customer group by location, age, occupation...
Senior Executive Vice President, Manager, Board of Directors Secretariat Proactively providing sufficient and honest
Person authorized to disclose information Email: nhadautu@bidv.com.vn The establishment of the Digital Banking Center on
Email: nhadautu@bidv.com.vn
information to customers: Besides continuously
Phone: (+84) 24.2220 1099 15 March 2019 was a key activity that helped BIDV
Phone: (+84) 24.2220 5544 enriching and securing customer information,
Website: www.bidv.com.vn make further breakthroughs in its retail banking
Website: www.bidv.com.vn BIDV was always proactive in providing transparent
activities, with a focus on pioneer and modern
information about products and services,
technological products and services in the market.
preferential and promotion programs to customers
via news channels such as website, news releases,
email... and at more than 1,000 transaction points
nationwide.

CUSTOMER CARE IMPROVING CUSTOMER EXPERIENCE ON
DIGITAL COMMUNICATION CHANNELS
Putting customers at the heart of business and bringing customers, helping bolster their loyalty. 2019 was also the
the best satisfaction to them, BIDV always focuses on first year BCC launched a comprehensive customer survey
customer support and care through activities at BIDV
Contact Center (BCC).
campaign on service quality at all BIDV branches. The
survey results revealed valuable information, giving a big BIDV’S SOCIAL MEDIA ACTIVITIES
In 2019, the quality of customer support service at
BCC was always ensured and boosted proactively and
picture of customer service quality at BIDV, foundations
for BIDV to develop and deploy more specific, uniform IN 2019
and disruptive solutions, contributing to improving the
efficiently, providing support and consultancy to nearly
customer service quality. MARKETING
2 million customers through all channels (phone, email, CUSTOMER CARE:
biggest (up 30% from 2018)
chat, social media and IVR), an increase of 25% compared In addition, BCC continued to strengthen marketing
to 2018. Customer satisfaction score in 2019 was 8.8 and selling activities through online channels, selling Banks with the most fans
(up 30% from 2018)
points (up 0.1 point compared to 2018), demonstrating actively with products directly sold growing sharply Support requests
TWICE
came from BIDV’s
the improvement in support quality and meeting the (up 30% compared to 2018) to existing customers who As many as the average number Facebook Page
of ENGAGEMENTS in 2018
needs of customers. were using BIDV’s products and services. The above (~17,150 ENGAGEMENTS/post )
channels contributed to connecting customers with the Supporting customers
via social media
6,000
Building on the successes of the previous years, in 2019, (on a monthly basis) times
bank, increasing their loyalty, and offering them superior
BCC strengthened and implemented active in-depth DATA LISTENING
utilities when they registered and used the products and BIDV WORKPLACE:
customer care programs which were well received by AND ANALYSIS:
services at BIDV.
reports
analyzing online news
and customer feedbacks Active accounts hit Live stream hit
17,000 a record of nearly
(equivalent to 66% 15,000 followers
of total employees)
Up
268,000 online
23%
discussions
about BIDV monitored
(up 37.5% from 2018)
Year-on-year
In 2019, BIDV’s communication on branding, products Social listening

and services via digital channels continued to be
The handling of customers’ opinions and feedbacks
strengthened, acting as a bridge to connect customers
on social media was effectively coordinated between
and the bank. Social media activities and website were
professional units, forming an end-to-end process
expanded, strengthening communication on BIDV brand
from information detection to processing, handling of
and community activities.
operational errors, and service attitude, contributing
to improving customer experience when using BIDV’s
products and services.
Data collection and listening to customers’ opinions on

social media daily through the social listening tool was
the basis for BIDV to make improvements to products,

services and customer care to suit their tastes. Media The bank’s new website made a signification contribution
content was focused on the community, bringing more to improving user experience, improving BIDV’s marketing
benefits to customers. and communication efficiency. The bank’s website rating
on Google for keywords related to the bank’s products
At the end of 2019, BIDV’s Fanpage had had a natural
and service improved over quarters, moving from the
increase of 38% compared to 2018; the number of likes
second page to the first page of Google, many keywords
and followers of BIDV’s Fanpage continued to increase
were among Top 3 on Google search ranking.
and was greatly appreciated in the banking sector. The
bank’s communication activities on social media and Catching up with modern communication trends
other channels were uniform and consistent regarding
BIDV always attached great importance to research and
images and messages. Many outstanding viral marketing
development (R&D), given the constant developments of
campaigns combined with BIDV’s big events generated
digital communication channels in Vietnam and around
positive effects such as: BIDV Smile Run; Warm New Year
the world. In 2019, Vietnam’s social networks boomed On 6 December 2019, BIDV officially launched its Digital Banking Center
for the poor.
with some names such as Lotus, Gapo... BIDV paid
Officially launched on 1 January 2019, BIDV’s new special attention to the development of these channels
website with a modern, friendly and more compatible and issued analytical reports on the potential, benefits,
interface has become an effective communication opportunities as well as challenges for the bank. BOOSTING DIGITAL BANKING
channel, bringing customers closer to the bank’s
With the goal of serving customers anywhere, BIDV will
products and services.
continue to closely follow the overall development of
According to webportal’s analytic results (based on the digital communication channels in Vietnam to timely
In response to the financial inclusion and digital by the establishment of Digital Banking Center
Google Analytics) between 1 January 2019 and 31 bolster its presence to comprehensively meet the needs
transformation orientation by the Government (DBC) in March 2019, which acts as a focal point and
December 2019, the webportal’s data was as follows: of customers for communication.
and the State Bank of Vietnam, BIDV proactively pioneer in BIDV’s digital transformation strategy.
implemented the digitalization strategy, evidenced
New users
MEASURING CUSTOMER
SATISFACTION
5,207,499
Customer satisfaction for products and services is
always the top goal of any organization operating in the
The project Resolution
Total sessions market economy in general and financial institutions in team 1210/NQ-BIDV Decision on
developed on digital establishing
particular. Customer satisfaction research will help BIDV e-banking banking
15,731,743 best understand customers’ needs in order to make
channels development
Digital Banking
Center
Oct 2015 Jul 2017 Mar 2019

appropriate improvements to business strategies from
Number of sessions per user time to time to meet their increasing needs and enhance
their trust in, loyalty to BIDV. In 2019, BIDV regularly and
3.07 proactively measured customer satisfaction in various
Sep 2014 Feb 2016 Oct 2018 Dec 2019
forms, approaching to more modern measurement forms,
The task force The project Study tours Launching Digital
Average session duration such as opinion surveys, mail boxes, comment books and studied the team to SCB, Banking Center
application developed Kasikon, CCB,
telephone... The findings showed that most customers digital banking RHB (July 2018),
2.27 minutes were satisfied with BIDV, with money transfer products
of banking
on smart
devices
CCB
(quite high according to Google analytics)

and staff service receiving highest satisfaction. In addition,
most attention was paid to criteria on level of competition
Total pageviews BIDV’s development milestones towards Digital Banking
on fees/interest rates and transaction space, which
29,624,881 affected the frequency of transactions and customer

loyalty. BIDV took good note of customers’ comments and
feedbacks and made appropriate improvements.
Pages/session
1.88

The Digital Banking Center’s outstanding results in 2019
1 Transaction channels and digital products and services:
The Digital Banking took the lead in working with relevant

units to develop 29 more new features and services on 9
different systems to serve customers’ increasing demands
for transactions, particularly:
BIDV paygate, 24/7 money transfer;
Digital platforms for businesses (iBank) and

for individuals (SmartBanking, BIDV Mobile); 2 Growth in digital banking users:
Request reception and customer verification via online registration service and eZone at branches,
allowing customers to open current accounts and digital banking services online; The number of financial transactions and new customers grew well at 76% and 39%, respectively
over the same period in 2018. Cumulative transaction value and number of customers increased
Security features and advanced transaction authentication ensure the highest level of security for
by 26% and 58%, respectively.
customers such as Smart OTP, card security and fraud protection methods.
In 2019, the number of transactions on digital channels continued to increase. There was a shift
from transactions over counters, ATMs, POS to digital banking channels (internet banking, mobile
banking). The proportion of digital transactions to total transactions reached 39%.
Mobile SmartBanking platforms for individual customers grew sharply, accounting for 72% of all
digital banking transactions.
Fee income from digital banking services reached VND510 billion, accounting for 26% of the total
retail service income, and making up 12.4% of the bankwide service income (excluding guarantee
income).
20%
30%
39% IBMB
27%
23% Branches
19%
ATM-POS
53% 47% 42%
2017 2018 2019

BIDV’s IT and digital banking objectives and
directions
- Sustaining the No.1 position in Vietnam in terms of

readiness for IT application (according to the criteria
of the Ministry of Information and Communications);
- Leading in digital transformation in Vietnam, and

being on par with other banks in the regions.
3 Launching initiatives, fostering digital transformation: With commitments to quality, transparency, attractive
offers and the highest benefits to individual customers,
For the first time in the market, BIDV integrated a banking application in a smart watch device BIDV’s retail banking has been creating a strong
(Apple watch), creating a set of SmartBanking app on smart phones and smart watches. impression on and firm position in the heart of customers
and partners. In 2019, BIDV was honored to be the first and
Applying artificial intelligence (AI) to SmartBanking app to help customers conduct
only bank to win the Best Retail Bank in Vietnam award for
transactions orders via voice.
5 consecutive years (from 2015 to 2019) as voted by The
Being the first bank in Vietnam to deploy Swift GPI on internet banking for customers Asian Banker; and Outstanding Retail Banking Award for 4
(iBank). Accordingly, customers could actively monitor the status and information related consecutive years (from 2016 to 2019) as voted by Vietnam
to international remittance messages from the time of sending to crediting to beneficiary’s Banks Association (VNBA) and International Data Group
account (processing time, exchange rate, applicable fee at each bank,…). (IDG).
Other features that helped users diversify options when making transactions on BIDV’s
digital banking such as: Smart keyboard on SmartBanking; point redemption and reward;
International credit card management; Automatic notice of periodic payment transactions;
Notice of new promotions/services; integration of Smart OTP into SmartBanking app...
4 Expanding ecosystem and partnership with Fintech
Partnering with 4 new Fintech companies, increasing the total number of Fintech partners to
22, namely: Vingroup’s VinID e-wallet; FPT wallet company’s Senpay e-wallet; Viettel’s Viettel Pay;
PayTech’s VitaPay e-wallet.
Deploying bill payment services with more than 352 suppliers (adding more than 374 new
services) in areas such as water supply, electricity, aviation, industrial parks, universities, e-wallets,
increasing the total number of service providers to 580 and number of services to 1,230, adding As voted by The Asian Banker
social insurance payment service to digital banking channels.

BIDV funded 40 programs with a total commitment value of VND95.3 billion
for construction of 12 school buildings; 26 classroom facilities and boarding
houses; nearly 1,500 scholarships and hundreds of teaching and learning
equipment, training management software for educational institutions
Education
throughout the country. The sponsorship of BIDV contributed positively
and effectively to supporting localities to upgrade educational facilities
and improve teaching and learning conditions for teachers and students in
COMMUNITY FOOTPRINT 2019 disadvantaged regions.
BIDV implemented 15 programs with a total value of VND58.8 billion. The

bank funded the construction of 03 clinics, and granted 02 ambulances,
hundreds of medical equipment such as ultrasound machines, and artificial
Health
dialysis machines, etc., contributing to equip/upgrade medical facilities and
equipment for hospitals, clinics, medical examination and treatment facilities care
in localities, helping to improve local people’s health examination and living
conditions.
BIDV implemented 15 programs worth VND37.4 billion for construction of

Building houses gratitude/solidarity houses for the poor, and beneficiaries of social welfare
policy nationwide. The bank’s funding helped to build 770 new houses for
for the poor
the poor across the country, giving them a safe place for settling down.
Given the natural disasters such as flash flooding, storms, high tides, and
saltwater intrusion, in regions namely Northern highlands, coastal central,
Disaster
and Mekong Delta, BIDV timely provided support to the localities and poor
people in the affected areas to recover, and quickly stabilize their lives and relief
production with realized value totalling VND1.3 billion.
BIDV has made a public statement about its core values continued to spend resources on and render efforts Continuing the annual charity program of giving Tet gifts to the poor which
Tet gifts for the
which lay solid foundations for the bank’s development, for charitable activities, contributing to community has been implemented since 2009, BIDV presented 40,000 sets of gifts worth
particularly: “Customer Orientation – Social Responsibility development.
poor VND20 billion, joining local authorities to take care of the poor people’s lives.
- Creation & Professionalism – Innovation”, in which, social
Following the social security activities which have been
responsibility is one of the four core values that BIDV
implemented in recent years, in 2019 BIDV continued to
is continuing to build through professional activities
focus on areas including education, healthcare, building
(lending, providing banking products and services In addition, BIDV also implemented many other social activities, contributing to preserving and restoring
solidarity houses, disaster relief, Tet gifts for the poor,
towards the community development goals) and direct historical and cultural relics, educating patriotic tradition of younger generations as well as promoting economic
building roads and bridges.
charitable activities. With that in mind, in 2019 BIDV and tourism development.

Effects of BIDV’s programs
Building on the results achieved in the previous

years, BIDV’s social security programs in 2019
achieved positive effects on community as well as
BIDV’s operation, particularly:
For disadvantaged, difficult and remote For developed areas: BIDV contributed
areas: BIDV’s social security activities to upgrading, modernizing educational
contributed to building and upgrading equipment for school facilities (computers, Funding 84 social security
many educational and health facilities, projectors, etc.); funding the purchase programs with a total value
shortening the gap in medical and of medical examination and treatment of nearly VND225 billion,
educational conditions between regions; equipment and vehicles for central
providing 19 school buildings,
Directly funding or mobilizing resources and local health centers, etc. (medical
from society to support disadvantaged equipment, ambulances), thereby classrooms, 03 health clinics/
people to build houses. The bank’s social contributing to improving the living facilities, 770 new houses for the
charity activities significantly contributed conditions, socio-economic development, poor, tens of thousands of Tet
to promoting the social and economic and international integration.
gifts, hundreds of scholarships,
stability of impoverished and remote areas.
educational equipment, medical
equipment, medical examination
and treatment packages for the
poor, and timely disaster relief
For BIDV’s operation: Through the social For regulators: BIDV demonstrated its
charity activities, BIDV has shown its responsibility and interest in major activities are proof for BIDV’s
responsibility to the community as a public policies of the Party and Government on footprint in the community
enterprise, contributing to bolstering its sustainable poverty reduction, economic, development in 2019.
reputation and brand; and accompanying cultural and social development and
the community on the development of the national target programs on: Education,
country. health care, houses for the poor, improving
the living conditions for people.
Through the social security activities, BIDV by awards and accolades such as Enterprise for the
continued to affirm that it is not only the leading Community, Enterprise for the Cause of Hunger
financial institution regarding business operation Elimination and Poverty Reduction; Enterprise for the
but also a pioneer for the sustainable development Cause of Education; Enterprise for the Development
for the community and society. BIDV’s social security of Ethnic Minorities in Vietnam, and many merit
programs have been highly appreciated and certificates from the Government, ministries,
positively received by regulators, local authorities, provinces and cities.
social organizations and beneficiaries, evidenced

Required credit documents include those related The propagation and dissemination of thrift practice
to social environment (such as License of exploiting and waste combat was implemented via internal
natural resources for enterprises operating in this newsportal, emailing and training courses on the
CONTRIBUTING TO
field; Decision on approving reports on environmental Party’s Resolutions, thereby unit leaders would
impact assessment, fire prevention, waste water continue to cascade to their staff. Some movements
treatment (for required projects); Registration can be named such as “Studying and following the
ENVIRONMENT certificate/Commitment on environmental protection

of competent authorities).
President Ho Chi Minh’s moral example”, the emulation
movement “Eight effective working hours”.
IMPROVEMENT Following the State Bank of Vietnam’s Directive

03/CT-NHNN regarding promoting green credit
b. Directing the formulation and implementation of
thrift practice and waste combat program
growth and managing environmental and social
In 2019, BIDV issued 05 documents related to thrift
risks in credit extension; recommendations of the
practice and waste combat, including 03 financial
Asian Development Bank (ADB) as well as BIDV’s
management regulations related to efficiency and cost
commitments to sustainable development goal, in
savings, 01 directive on effective cost management
February 2019, BIDV issued the Environmental and
based on BIDV’s operating objectives as well as market
Social Risk Management System (ESMS) compulsory for
characteristics and conditions in the year.
projects which are funded by ADB. The ESMS stipulates
a process for environmental and social risk assessment, The guidance and implementation on thrift practice
including the following contents: (i) Screening and and waste combat was specific in terms of work scope,
classifying environmental and social risks; (ii) Detailed progress, objectives, monitoring and supervision and
assessment of environmental and social risks in reporting on implementation results.
accordance with the general and specific regulations of
10 specific industry groups; (iii) Corrective action plans In 2019 BIDV continued to strictly control operating
as well as environmental and social monitoring and costs through the Cost/Income Ratio (CIR) in
reporting after disbursement. formulating and assigning business plans.
c. Results of thrift practice and waste combat in

IMPLEMENTING specific areas:
In February 2019, BIDV issued SAVING MEASURES * Issuing, applying norms, standards and regimes
Environmental and Social Risk In 2019, BIDV issued a number of documents regarding
Management System (ESMS) In 2019 BIDV strictly implemented the Government
decentralization in financial management, cost norms,
and State Bank’s action programs on thrift practice
procurement procedures to ensure the economical and
and waste combat through propagation, direction,
efficient use of costs, particularly:
supervision and implementation of thrift practice and
MANAGING ENVIRONMENTAL waste combat across its system and achieved positive Regarding norms: BIDV issued new cost norms.
AND SOCIAL RISKS IN CREDIT results, particularly: The cost norms were based on operating size,
EXTENSION a. Propagation, dissemination of thrift practice and business performance of each unit, while
waste combat ensuring the reasonability between costs and
realized profits.
BIDV always attaches importance to environmental Continuing to organize the propagation and
and social risk management for credit extension. dissemination of the Law on thrift practice and waste Regarding goods and service procurement:
According to the current process on providing credit combat, the Government’s action program on thrift Issuing new regulation on goods and service
to institutional customers, BIDV has implemented practice and waste combat (Government’s Decision procurement procedures, ensuring the
environmental and social risk assessments on No.213/QD-TTg dated 21 February 2019 on thrift consistency of the process, functions and duties
each credit facility, ensuring the financed project practice and waste combat; and the 2019 action plan of individual units and effective control of costs.
is compliant with the law on environment, taking of the banking sector on thrift practice and waste
measures to prevent risks and regularly and combat (State Bank’s Decision No.460a/QD-NHNN
periodically supervising the financed projects. dated 18 March 2019).

* Specific cost saving results: fulfilling and surpassing Investing in the construction and implementation
the targets set for cost saving, particularly: of the Video Conference system and E-learning
system, etc. to quickly and conveniently organize
Practicing thrift and combating wastefulness in and hold meetings across the whole system,
public service expenses: helping reduce time as well as travel and
accommodation costs.
+ In 2019, BIDV continued to boost the
implementation of the Scheme on effective cost Investing in developing e-banking systems/
management in order to further promote the channels (Internet Banking, Mobile Banking,
system’s income generating activities, while ensuring Smart Banking, BSMS, HomeBanking, ATM,
the rate of cost increase was lower than that of CDM, STM, POS, etc.); Electronic payment/
income increase. collection services (payment for electricity, water,
telecommunications, television; collection service
+ Total public service costs in 2019 were
for the State Treasury and the General Department
controlled according to the set target. There
of Taxation, etc.), helping customers to use
was a reasonable shift in costs towards reducing
banking services anywhere, anytime without
material and paper costs (95% against the
visiting brick and mortar transaction points.
budget), postage, phone charges (96% against the
budget), increasing more effective costs such as In addition, BIDV is currently researching
training. and applying technological solutions for
transformation into digital banking model,
Practicing thrift and combating wastefulness in
particularly: deploying enterprise content
construction investment; management, use of
assets, office buildings, housing and public welfare
CREATING A MODERN BIDV focused on investing in and developing modern, management infrastructure (ECM) - digitalizing
environment-friendly and energy-efficient IT systems bank records and documents, minimizing
facilities. BIDV saved 7% in asset costs compared AND ENVIRONMENT-FRIENDLY to increase labor productivity and competitiveness to paperwork, storage space, and rotation; Customer
to the budget. Procurement of assets and working
WORKPLACE meet the business and management requirements, relationship management system (CRM),
instruments was based on essential needs, particularly: researching and implementing Business Process
meeting technical and professional requirements
Management (BPM).
In 2019, BIDV Trade Union launched a movement for Investing in the construction and implementation
Practicing thrift and combating wastefulness “Green – Clean and Beautiful” working space; and of environment-friendly IT systems (using green
in organizational structure, employment and another movement on Saying No to plastic wastes in technology, saving energy, reducing the emission
working time. In 2019, BIDV continued to evaluate, order to create a professional and friendly working of harmful fumes, replacing old systems with
classify and assign employees to appropriate environment, building a good working style. The modern ones to save space and energy, etc.).
jobs; improving working process; allocating movements were well received by the Trade Union
headcounts closely to business performance, Investing in the construction and implementation
members and employees who actively participated
labor productivity and staff costs of units. of Electronic office system; issuing the Regulation
in cleansing their offices, putting more trees at the
on the management and handling of work in the
workplace; arranging documents and paper tidily
form of electronic mails; issuing the Regulation on
and scientifically; using glass and paper cups in
management and use of email system to circulate
replacement for plastic ones; saving water, electricity,
documents throughout the BIDV system via the
limiting use of nylon bags and one-time plastic stuffs.
intranet system, which helps save printing, paper
and postage expenses.

VNSAT PROJECT DISBURSEMENT
COMPLYING WITH SUSTAINABLE DEVELOPMENT GOAL
Since 2015 BIDV has been selected by the World Bank One of the important achievements BIDV has gained
and the Government of Vietnam as the wholesale bank since the project implementation is: (i) BIDV proactively
for Vietnam Sustainable Agriculture Transformation coordinated with Vietnam Ministry of Agriculture
project (VnSAT). and Rural Development (the governing body of the
VnSAT project) to research, develop and issue the
As of 31 December 2019, The objective of the VnSAT project is to support the
“Environmental and Social Management Framework
BIDV had disbursed Government of Vietnam in promoting the “Agricultural
(ESMF)” which includes two books: The first book is
approximately VND439.9 Restructuring Project” through strengthening the
for environmental and social management activities
institutional capacity of the agricultural sector;
billion to 9 rice subprojects implemented by the Ministry of Agriculture and Rural
innovating the farming practice towards sustainability;
and VND1,185.7 billion as Development and the second one is for environmental
continuously improving the value chain of the two
and social management activities carried out by
loans for coffee replanting. product lines: rice and coffee in two key commodity
In order to achieve the objective of sustainable BIDV. (ii) Based on the “Environmental and Social
production areas in Vietnam namely Mekong Delta
agriculture transformation, beside improving the Management Framework (ESMF)” (Book 2) issued by
(including 8 provinces: Kien Giang, An Giang, Hau
productivity and quality of rice and coffee products, all the Minister of Agriculture and Rural Development in
Giang, Tien Giang, Long An, Dong Thap, Can Tho, and
activities must be directed towards to environmental July 2015, BIDV actively translated the environmental
Soc Trang) and the Central Highlands (including 5
sustainability. This is a challenge not only for the entire and social management requirements into its “Project
provinces: Lam Dong, Dak Lak, Dak Nong, Gia Lai and
VnSAT project in general, but also for BIDV in particular operational manual” - Volume 2 – Guidance on
Kon Tum). Total IDA loans for the project were USD237
regarding the management of on-lending component. implementation of loans (POM2).
million, of which non-credit capital was USD132 million
(accounting for 55.7%) and loan was USD105 million
(accounting for 44.3%).

INFORMATION
On 4 February 2016, the Chief Executive Officer of
BIDV signed Decision 740/QD-BIDV regarding the
issuance of the Credit Handbook applicable to the
World Bank-funded Vietnam Sustainable Agriculture
Transformation Project. In particular, BIDV specified DISCLOSURE
steps of implementation of the entire credit
component and details of environmental and social
management procedures and processes according to
UNDER GRI STANDARDS
regulations.
Over 4 years of implementing the VnSAT project

(2016-2019), as a wholesale bank taking main
responsibility for implementing the Environmental
and Social Management Framework (ESMF), BIDV No. GRI Information Disclosure Detailed Content
monitored, provided guidance to participating Especially, in 2019 BIDV worked with the Central GRI102 General Disclosure
financial institutions (PFIs) to follow regulations on Project Management Unit (CPMU) - VnSAT Project I Organizational Profile
environmental and social safeguards according to under Vietnam’s Ministry of Agriculture and Rural 102-1 Name of the organization
provisions in the ESMF and POM2. Development (MARD)to organize a workshop on 102-2 Activities, brands, products, and services Section BIDV at a glance (Page 20)
“Sharing experience in implementing environmental
In 2019, BIDV reviewed and amended POM2, revising 102-3 Location of headquarters
and social safeguards - VnSAT Project” for the rice
provisions on environmental and social safeguards to 102-4 Location of operations Network distribution (Page 25)
component in Can Tho City for 7/11 PFIs. This was
match the actual implementation. As of 31 December 102-5 Ownership and legal form Development milestones (Page 22)
the first workshop dedicated for environmental and
2019, BIDV had provided guidance to PFIs and a 102-6 Markets served BIDV overview
social safeguards for PFIs. At the workshop, CPMU
total of 9 owners of rice processing subprojects BIDV’s profile through key financial
and BIDV shared their experience in implementing 102-7 Scale of the organization
(two subprojects made early payment in 2019) to indicators and non-financial indicators
environmental and social safeguards in the VNSAT
complete environmental procedures in accordance Employees are classified by position,
project ranging from components implemented by Information on employees
with regulations (i.e. 100% subprojects receiving 102-8 education, age (Refer to Section Organization
MARD to credit components managed by BIDV. They and other workers
and human resources – Page 56)
approval of the Report on environmental impact
also disseminated Vietnam’s new regulations on 102-9 Supply chain Business lines and location (Page 24)
assessment/Environmental management plan from
environment to the participants.
Vietnam’s competent authorities) with total cumulative BIDV overview: organizational structure,
Significant changes to the organization and
102-10 Board of Directors, Supervisory Board,
disbursements for the 9 subprojects reaching In addition, the monitoring and supervision of PFIs’ its supply chain
Board of Management (Page 26)
approximately VND439.9 billion. For the coffee compliance with environmental and social safeguards
102-11 Precautionary principle or approach Risks (Page 40)
component alone, as of 31 December 2019 BIDV had was carried out on a periodical and/or ad-hoc basis.
External initiatives: Listing of economic,
disbursed through 10 PFIs for 3,479 coffee replanting During the monitoring and supervision, beside
environmental and social rules and articles
loans with total cumulative disbursements reaching checking the compliance of PFI branches, BIDV The Vietnam Sustainable Agriculture Trans-
102-12 developed outside the organization or other
formation Project (VnSAT) (Page 154)
VND1,185.7 billion. As reported by PFIs, borrowers reinstructed new credit officers of the PFIs and new initiatives that the organization agrees on/
and PFIs entered into an “Environmental Protection PFIs on regulations related to environmental and social supports.
Agreement” for 100% coffee replanting loans which safeguards of the projects as well as of BIDV and PFIs.
satisfy all terms and conditions for environmental
protection as specified in the ESMF and POM2.

No. GRI Information Disclosure Detailed Content No. GRI Information Disclosure Detailed Content
II Strategy III Stakeholder Engagement
Chairman’s message (Page 10), Directors’ Customers
Report (Page 74), Management’s Report, Employees
102-14 Statement from senior decision-maker
Overview of Sustainable Development Shareholders, investors
Report 102-40 List of stakeholder groups Suppliers
Risks (Page 40) Government and regulators
102-15 Key impacts, risks, and opportunities Media agencies
Overview of Sustainable Development Report
Community
III Governance
102-42 Identifying and selecting stakeholders Stakeholder engagement (Page 123)
102-18 Governance structure Operation of BOD and Committees (Page 104)
102-43 Approach to stakeholder engagement Measuring customer satisfaction (Page 140)
Consulting stakeholders on economic, envi- Measuring employees’ satisfaction (Page 131)
102-21 Stakeholder engagement (Page 123) 102-44 Key topics and concerns raised
ronmental and social topics
Introduction of the Board of Directors, the IV Reporting Practice
Composition of the highest governance
102-22 Board of Management and the Supervisory Entities included in the consolidated Performance of subsidiaries, joint-ventures
body and its committees 102-45
Board (Page 28) financial statements and affiliates (P.48)
Description of the Board of Directors, com- Defining report content and topic
102-23 Chair of the highest governance body 102-46 Overview of the Sustainable
mittees under the BOD (Page 104) Boundaries
Development Report
Participation in corporate governance 102-47 List of material topics
training courses (List of BOD members Report for the period from 1 January 2019
participating in corporate governance 102-50 Reporting period
to 31 December 2019
programs during the year). Committees
under the Board of Directors, functional 102-52 Reporting cycle Annual
Collective knowledge of highest
102-27 units/departments proposing measures Contact point for questions regarding the Email: nhadautu@bidv.com.vn
governance body 102-53
for risk management. Training and report Hotline: 024 22201099
Research Institute and some professional Claims of reporting in accordance with the Overview of the Sustainable Development
departments provide macroeconomic 102-54
GRI Standards Report (Page 120)
newsletters, legal newsletters, Market and
operational risk newsletter. Information disclosure under GRI Standards
102-55 GRI content index
(P157)
Operation of the Board of Directors in 2019
Evaluating the highest governance body’s GRI 200 Economic Standards
102-28 and orientation for 2020 in the Directors’
performance
report Direct economic value generated and
201 Business Results (Page 90)
Identifying and managing economic, envi- The Board of Directors sets up Risk Man- distributed
102-29
ronmental, and social impacts agement Committee to advise and assist Efforts for sustainable economic
203 Significant indirect economic impacts
102-30 Effectiveness of risk management processes on risk identification and management, development (Page 126)
and assessment of the effectiveness of the GRI 300 Environmental Standards
Review of economic, environmental, and risk management process. The committee’s
102-31 meetings are held quarterly or an ad-hoc Implementation of saving measures (Page 151)
social topics 302-4 Reduction of energy consumption Building a modern, environmentally friendly
basic as needed.
working space (Page 152)
Branding and Communication department
Highest governance body’s role in sustain- GRI400 Social Standards
102-32 and BOD's secretariat review and submit to
ability reporting
the Board of Management for approval Benefits provided to full-time employees
Salaries, remunerations and benefits 401-2 that are not provided to temporary or part- Employees' benefits (Page 132)
102-35 Remuneration policies time employees
(Page 115)
404 Training and education Employees' training (Page 131)
413 Local communities Social Security (Page 146)
417 Marketing and labelling Customer Orientation (Page 137)

INDEPENDENT AUDITORS’ REPORT
CONSOLIDATED BALANCE SHEETS
FINANCIAL CONSOLIDATED INCOME STATEMENT
CONSOLIDATED CASH FLOW STATEMENT
REPORT NOTES TO THE FINANCIAL STATEMENTS

INDEPENDENT AUDITORS’
REPORT

CONSOLIDATED BALANCE SHEET
Form B 02/TCTD-HN
X. Other assets 15 25,864,027 24,442,862
Unit: VND million
1. Receivables 9,159,704 8,853,740
Closing Opening
No. ITEMS Notes 2. Interest and fee receivables 12,846,132 11,673,017
balance balance
3. Deferred tax assets 38,579 34,472
A ASSETS
4. Other assets 4,460,435 4,533,448
I. Cash, gold and gemstones 5 14,116,720 10,507,558
5. Provisions for impairment of other assets 15.3 (640,823) (651,815)
II. Balances with the State Bank of Vietnam (SBV) 6 135,255,429 50,185,159
TOTAL ASSETS 1,489,957,293 1,312,866,249
Placements with and loans to other credit
III. 7 54,290,180 104,113,340
institutions B. LIABILITIES AND OWNERS' EQUITY
1. Placements with other credit institutions 7.1 43,718,603 81,792,629 Borrowings from the Government
I. 16 108,760,008 105,297,399
and the Central Bank
2. Loans to other credit institutions 7.2 10,717,769 22,430,353
Deposits and borrowings from other credit
Provision for credit losses on placements with and II. 17 76,683,179 79,198,149
3. 7.3 (146,192) (109,642) institutions
loans to other credit institutions
1. Deposits from other credit institutions 28,904,853 22,064,492
IV. Trading securities 8 6,346,190 673,639
2. Borrowings from other credit institutions 47,778,326 57,133,657
1. Trading securities 6,380,379 790,210
III. Deposits from customers 18 1,114,162,624 989,671,155
2. Provision for impairment of trading securities (34,189) (116,571)
Grants, trusted funds and borrowings at risk of the
V. Derivatives and other financial assets 9 92,130 79.755 IV. 19 12,386,421 12,296,196
credit institution
VI. Loans to customers 1,102,365,849 976,334,971 V. Valuable papers issued 20 62,772,362 39,991,361
1. Loans to customers 10 1,116,997,985 988,738,780
VI. Derivatives and other financial liabilities
2. Provision for credit losses on loans to customers 11 (14,632,136) (12,404,309)
VII. Other liabilities 37,539,718 31,922,333
VII. Investment securities 12 138,284,421 133,188,297
1. Interest and fee payables 24,695,986 20,726,439
1. Available-for-sale investment securities 12.1 121,819,089 111,419,195
2. Other payables and liabilities 12,731,797 11,105,141
2. Held-to-maturity investment securities 12.2 23,262,431 29,847,625
3. Deferred corporate income tax payable 21 111,935 90,753
3. Provision for impairment of investment securities 12.5 (6,797,099) (8,078,523)
TOTAL LIABILITIES 1,412,304,312 1,258,376,593
VIII. Long-term investments 13 2.737.661 2.612.189
VIII. Capital and reserves
1. Investments in joint-ventures 13.1 2,020,226 1,938,687
1. The Bank's capital 54,780,413 34,396,605
2. Investments in associates 13.2 605,550 584,148
a. Charter capital 40,220,180 34,187,153
3. Other long-term investments 214,679 213,320
b. Share premium 14,292,382 30,306
4. Provision for impairment of long-term investments 13.3 (102,794) (123,966)
c. Other capital 267,851 179,146
IX. Fixed assets 10,604,686 10,728,979
2. The Bank's reserves 5,755,410 4,617,990
1. Tangible assets 14.1 6,294,519 6,414,518
3. Foreign exchange reserve 129,783 156,581
a. Cost 12,784,828 12,160,408
4. Retained earnings 13,856,938 12,270,771
b. Accumulated depreciation (6,490,309) (5,745,890)
5. Non-controlling interests 3,130,437 3,047,709
2. Intangible assets 14.2 4,310,167 4,314,461
TOTAL OWNERS' EQUITY 77,652,981 54,489,656
a. Cost 5,866,116 5,671,933
TOTAL LIABILITIES AND OWNERS' EQUITY 1.489.957.293 1,312,866,249
b. Accumulated amortization (1,555,949) (1,357,472)
Full audited 2019 financial report is available on BIDV’s website: www.bidv.com.vn

OFF-BALANCE-SHEET ITEMS 7. Staff cost 31 (9,722,449) (8,777,978)
8. Depreciation and amortization expenses 31 (1,023,773) (978,589)

9. Other operating expenses (6,510,893) (6,259,517)
Unit: VND million
VIII Total operating expenses 31 (17,257,115) (16,016,084)
Opening Net profit from operating activities before

No. ITEMS Notes Closing balance IX
provision for credit losses
30,864,125 28,239,872
balance
1. Credit guarantees 5,353,955 4,712,259 X Provision for credit losses (20,131,916) (18,848,455)
2. Foreign exchange commitments 3,274,646 6,000,257 XI Profit before tax 10,732,209 9,391,417
a. Foreign currency purchase commitments 1,647,813 2,628,996 10. 10.Current corporate income tax expense 33 (2,162,657) (1,907,345)
b. Foreign currency sale commitments 1,626,833 3,371,261 11. 11. Deferred corporate income tax income (21,795) (4,044)
3. Letter of credit (L/C) commitments 68,683,562 61,876,656 XII Corporate income tax expense (2,184,452) (1,911,389)
4. Other guarantees 145,684,887 145,891,703 XIII Profit after tax 8,547,757 7,480,028
5. Other commitments 8,771,607 7,935,991 Net profit attributable to non-controlling interests (179,266) (192,814)
Net profit attributable to the equity holders of the

8,368,491 7,287,214
Bank
Basic earnings per share (VND/share) 2,163 1,613
CONSOLIDATED CONSOLIDATED
INCOME STATEMENT CASH FLOW STATEMENT
For the year ended 31 December 2019 For the year ended 31 December 2019
Unit: VND million Unit: VND million
No. ITEMS Notes Current year Prior year ITEMS Notes Current year Prior year
1. Interest and similar income 24 100,747,225 89,839,125 CASH FLOW FROM OPERATING ACTIVITIES
2. Interest and similar expenses 25 (64,769,417) (55,118,277) Interest and similar income received 100,233,777 88,053,639
I Net interest income 35,977,808 34,720,848 Interest and similar expenses paid (60,799,870) (51,446,906)
3. Income from services 26 7,871,837 6,788,718 Income received from services 4,266,331 3,555,102
4 Expenses on services 26 (3,605,506) (3,233,616) Net cash from dealing in foreign currencies,
2,689,112 1,919,031
gold and trading securities
II Net profit from services 26 4,266,331 3,555,102
Other expenses (409,071) (668,809)
III Net gain from trading gold and foreign currencies 27 1,494,696 1,039,685
Cash recovered from bad debts written off or compensated
IV Net gain from trading securities 28.1 325,524 645,456 5,777,810 4,478,587
by provision for credit losses
V Net gain from investment securities 28.2 481,222 234,827 Payments to employees and for operating management (15,665,395) (15,414,260)
5. Other operating income 29 6,517,869 5,337,309 Income tax paid for the year 33 (1,871,349) (1,743,510)
6. Other operating expenses 29 (1,156,695) (1,519,277) Net cash flow from operating activities before movements
34,221,345 28,732,874
in operating assets and liabilities
Vl Net profit from other activities 29 5.361.174 3.818.032
Movement in operating assets
Income from capital contribution,
VII 30 214.485 242.006
equity investments Decrease/(Increase) in placements with
9,972,481 13,485,935
and loans to other credit institutions
Total operating income 48,121,240 44,483,062

CONSOLIDATED NOTES TO
CASH FLOW STATEMENT (CONT.) THE FINANCIAL STATEMENTS
For the year ended 31 December 2019
Unit: VND million
ITEMS Notes Current year Prior year

ACCOUNTING CONVENTION
Decrease/(Increase) in trading securities (10,064,536) 22,027,125
Decrease/(Increase) in derivatives and other financial assets (12,375) 113,948

The accompanying consolidated financial statements, consolidated financial position, the consolidated
expressed in Vietnam Dong (VND), are prepared under results of operations and the consolidated cash flows
Increase in loans to customers (128,259,205) (121,853,473)
the historical cost convention and in accordance with of the Bank and its subsidiaries. With regard to the
Increase in provisions for bad debts, securities, long-term accounting standards, accounting regime applicable number of shares and basic earnings per share, the
(19,686,295) (19,649,357)
investments and other receivables
to credit institutions in Vietnam and legal regulations Bank presented the items in unit.
Other increase in operating assets (711,579) (1,001,400) relating to consolidated financial reporting.
The accompanying consolidated financial statements
Movement in operating liabilities However, due to the Bank’s large scale of operations,
are not intended to present the consolidated
Increase in borrowings from the Government for the purpose of preparing these consolidated
(14,945,095) 16,813,500 financial position, consolidated results of operations
and the State Bank of Vietnam financial statements, the figures are rounded to and
and consolidated cash flows in accordance with
Decrease in deposits and borrowings presented in millions of Vietnam Dong (VND million).
(2,514,970) (12,780,711) accounting principles and practices generally
from other credit institutions This presentation does not materially impact the
accepted in countries and jurisdictions other than
Increase in deposits from customers consolidated financial statements in terms of the
142,899,173 140,634,484 Vietnam.
(including the State Treasury)
(Decrease)/Increase in valuable paper issuance (excluding

22,781,001 (43,747,068)
valuable papers charged into financial activities)
Increase in grants, trusted funds and borrowings

90,225 573,469
at risk of the credit institution
(Decrease)/ Increase in other liabilities (24,928) (1,880,740) BASIS OF CONSOLIDATION

Payment from the credit institution's reserves (379) (515)
CASH FLOWS FROM INVESTING ACTIVITIES

The consolidated financial statements incorporate income statement from the effective date of acquisition
Acquisition of fixed assets (432,570) (902,706) the financial statements of the Bank and enterprises and up to the effective date of disposal. Where necessary,
Proceeds from sales, disposal of fixed assets 5,299 13,415 controlled by the Bank (its subsidiaries). The control is adjustments are made to the financial statements of
achieved where the Bank has the power to govern the subsidiaries to bring the accounting policies used in line
Expenses on sales, disposal of fixed assets (12,864) (5,161)
financial and operating policies of investee enterprises so with those used by the Bank. All internal transactions
Cash recovered from investments in other entities (sale, disposal of
(1,359) 56,220 as to obtain benefits from the activities. and balances between the Bank and its subsidiaries and
subsidiaries, joint ventures, other long-term investments)
among subsidiaries are eliminated on consolidation.
Dividends and profit received from long-term investments and The business results of subsidiaries acquired or disposed
111,061 128,194
capital contribution of during the year are included in the consolidated
Net cash generated by/(used in) investing activities (330,433) (710,038)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in share capital from capital contribution and/or share

20,295,103 -
issuance
Dividends paid to shareholders (4,844,230) (92,612)
Net cash from financial activities 15,450,873 (92,612)
Net increase in cash for the year 48,865,303 20,665,421
Cash and cash equivalents at the beginning of the year 121,407,099 100,741,678
Cash and cash equivalents received from consolidation

35 170,272,402 121,407,099
of subsidiaries

PROVISION FOR CREDIT LOSSES
CLASSIFICATION OF LOANS AND Credit extension entrustment;

In accordance with Circular 02, a general provision is State Bank’s Circular 10/2015/TT-NHNN dated
PROVISION FOR CREDIT LOSSES Deposits (excluding current accounts) at domestic made for credit losses which are yet to be identified 22 July 2015 guiding the implementation of the
credit institutions, foreign banks’ branches in during the loan classification and specific provision Government’s Decree 55/2015/ND-CP dated 9
In accordance with Circular 02 and Circular 09, credit Vietnam as prescribed by law and deposits at process as well as in case of the Bank’s potential June 2015 on credit policies serving agricultural
institutions should implement loan classification and foreign credit institutions. financial difficulty due to the deterioration in loan and rural development, State Bank’s Circular
credit loss provisioning. Loan classification and credit quality. Accordingly, the Bank is required to fully make 09/2014/TT-NHNN dated 18 March 2014 and the
risk provisioning in compliance with Circular 02 and Accordingly, customers’ loans are in the more risky and maintain a general provision at 0.75% of total central bank’s documents on loan classification
Circular 09 are applied to Assets (hereinafter referred to group when being classified under Article 10 and loans which are classified in groups 1 to 4 excluding and risk provisioning.
as “debts”) including: Article 11 of Circular 02 and customers’ debt group deposits and loans, repurchase and reverse repurchase
Notice No.172/BOL dated 15 May 2017 by
provided at the time of loan classification by the Credit agreements of valuable papers with credit institutions,
the Governor of the Bank of the Lao PDR and
Loans; Information Center (“CIC”) of the State Bank of Vietnam. branches of foreign banks in Vietnam and deposits at
Document No.“Thor 7-018-544 Chor.Tor” dated 19
foreign credit institutions.
Financial leases; Loans are classified by risk level into: Pass, Special June 2018 by the National Bank of Cambodia on
mention, Substandard, Doubtful and Loss. Loans The Bank and its subsidiaries remain the loan group for loan classification for a number of customers.
Discounts, rediscounts of negotiable instruments
classified as Substandard, Doubtful or Loss are certain loans under the regulations at:
and other valuable papers;
considered as bad debts. Loan classification will be
Factoring; made at the end of each quarter for the first three
quarters and on 30 November for the fourth quarter of
Credit facilities in the form of credit card issuance; the financial year. USE OF PROVISIONS
Payments on behalf under off-balance sheet Net loan exposure for each customer is calculated
commitments; by subtracting from the loan balance the discounted The provision is recorded in the consolidated income into Group 5 or if the borrowing legal entities are
value of collateral which is subject to discount rates in statement as an expense and will be used to write liquidated or bankrupted, or if individual borrowers
Amounts for purchase and entrustment of
accordance with Circular 02. Specific provision is made off bad debts. The Bank must set up Risk Settlement have deceased or are missing.
purchase of corporate bonds unlisted on the stock
based on the net loan exposure of each customer Committee to write off bad debts if they are classified
market or unregistered to be traded in the Unlisted
using the prescribed provision rates as follows:
Public Company Market (UPCoM) (hereinafter
referred to as unlisted bonds), excluding entrusted
capital sources for purchase of unlisted bonds
whereby the entrusting parties bear risks;
CLASSIFICATION OF
OFF-BALANCE-SHEET COMMITMENTS
Group Category Provisioning rate
The Bank should classify guarantees, acceptances Accordingly, off-balance-sheet commitments are
1 Pass 0%
of payment and unconditional, irrevocable loan classified by risk levels as follows: Pass, Special
2 Special mention 5% commitments with specific effective date (collectively mention, Substandard, Doubtful and Loss, based on
3 Sub-standard 20% referred to as “off-balance-sheet commitments”) overdue status and other qualitative indicators.
4 Doubtful 50%
as stipulated in Articles 10 or 11 in Circular 02.
5 Loss 100%

REVENUES AND EXPENSES TRADING SECURITIES
Interest income and expense in the income statement for the financial year and Unit: VND million
Income from interest and interest expense is is recorded as off-balance sheet item and is only
ITEMS Closing balance Opening balance
recognized in the income statement on an accrual recognized in the income statement when it is actually
received. Debt securities 5,667,929 154,664
basis. According to the State Bank’s Circular 02/2013/
TT-NHNN dated 21 January 2013 (“Circular 02”) Securities issued by the Government 5,667,929 104,331
Service fees and commissions are accounted on
regarding regulation on assets classification,
an accrual basis. Collection of fees from guarantee
provision rate, provisioning method and the use of Securities issued by local economic entities - 50,333
activities, letters of credit activities, investment
risk provisions in the operation of credit institutions, Equity securities 712,450 635,546
activities (bonds, etc.) is accounted on the basis of
foreign banks’ branches issued by the Governor of the
accruals and allocations. Equity securities issued by local credit institutions 149,497 77,106
State Bank of Vietnam and SBV’s Circular 09/2014/TT-
NHNN dated 18 March 2014 (“Circular 09”) amending Dividends and profits received Equity securities issued by local economic entities 562,430 557,949
Circular 02, the accrued interest income arising from Cash dividends received from investment activities are Equity securities issued by foreign credit institutions 523 491
the loans that are classified from group 2 to group 5 recorded as income when the Bank’s right to receive Provision for impairment of trading securities (34,189) (116,571)
is not recognized in the income statement. Accrued dividends has been established.
Total 6,346,190 673,639
interest on such loans is recorded as off-balance-sheet
item and is recognized in the income statement when Dividends received in shares, bonus shares and
it is actually received. right to buy shares for existing shareholders, shares
LOANS TO CUSTOMERS
received from the unrealized profits are not recognized
Income and expenses from interest on investments in as an increase in the investment value and are not
securities are recorded on the accrual basis. Accrued recognized as income of the bank but only number of Unit: VND million
interest income of overdue securities is not recognized shares is recorded.
Loans to local economic entities and individuals 1,076,979,856 951,427,266
EMPLOYEE BENEFITS that employees receive severance allowance from Discounted commercial bills and valuable papers 10,000 -
employers. Receivables from finance leases 1,418,497 717,237
Post-employment benefits Retrenchment compensation Amounts paid on behalf of customers 533,940 36,822
Post-employment benefits are paid to retired According to Article 49 of the Labour Code dated 18 Loans to foreign entities and individuals 38,055,692 36,557,455
employees of the Bank and its subsidiaries by the June 2012, the Bank is responsible to pay retrenchment
Total 1,116,997,985 988,738,780
Social Insurance Agency under the Ministry of Labour, benefits for employees who have worked regularly
Invalids and Social Affairs. The Bank and its subsidiaries for 12 months or more but are retrenched from
are required to contribute to these post-employment their jobs as a result of organizational restructuring,
benefits by paying social insurance premium to the technological changes, economic reasons, merger,
Social Insurance Agency at the rate of 17.5% of the
employee’s basic salary on a monthly basis for their
consolidation and splitting. For each year of
employment, the employee is entitled to one-month
ANALYSIS OF LOAN PORTFOLIO BY QUALITY
working period. In addition, the Bank also uses its salary but equal to at least two months’ salary as Unit: VND million
Welfare Fund to pay one-time retirement benefits the average sum of the six months preceding the
to employees under the Bank or its subsidiaries’ retrenchment date for the working period before 1 Closing balance Opening balance
regulations. ITEMS
January 2019. The working period used for calculation VND million % VND million %
of retrenchment benefits excludes the period that
Severance allowance Pass 1,072,557,727 96.02 946,905,941 95.76
employees benefit from unemployment insurance
According to Article 48 of the Labour Code dated 18 Special mention 24,943,852 2.23 23,030,423 2.33
and the working period that employees receive
June 2012, the Bank is responsible to pay severance
retrenchment allowance from employers. Substandard 3,835,155 0.34 5,449,978 0.55
allowance for employees who have worked regularly
for 12 months or more, half-month salary allowance for Doubtful 4,305,007 0.39 6,182,268 0.63
Unemployment insurance
each working year before 1 January 2019. The working According to the Law on Employment No.38/2013/ Loss 11,356,244 1.02 7,170,170 0.73
period used for calculation of severance allowance QH13 dated 16 November 2013, the Bank has the Total 1,116,997,985 100 988,738,780 100
excludes the period that employees benefits from obligation to contribute to the Unemployment
unemployment insurance and the working period Insurance Fund with an amount equal to 1% of their
employees’ insured salaries and wages.
MOVEMENTS IN PROVISION FOR CREDIT LOSSES ON LOANS DEPOSITS FROM CUSTOMERS
TO CUSTOMERS FOR THE YEAR ENDED 31 DECEMBER 2019 (By types of customers and types of businesses)
Unit: VND million
WERE AS FOLLOWS: Closing balance Opening balance
ITEMS
Unit: VND million VND million % VND million %
State-owned companies 47,720,474 4.28 47,033,577 4.75

Specific General
ITEMS Total
provision provision One member limited companies with
70,282,718 6.31 55,520,988 5.61
100% state-owned equity
Opening balance 5,288,042 7,116,267 12,404,309
Two-or-more-member limited companies
Provision made during the year 17,265,867 913,686 18,179,553 with more than 50% state-owned equity 301,324 0.03 155,817 0.02
or subject to the State's dominant power
Bad debts written off from provision during the year (16,019,008) - (16,019,008)
Other limited liability companies 53,396,770 4.79 88,260,516 8.92
Other increase 67,359 (79) 67,280
Joint-stock companies with more than
Closing balance 6,602,261 8,029,875 14,632,136 50% State-owned equity or voting rights
59,026,313 5.3 48,775,978 4.93
or controlled by the State according to the
company's Charter
LONG-TERM INVESTMENTS Other joint stock companies 83,347,921 7.48 68,538,674 6.93
Unit: VND million Partnerships 187,908 0.02 58,506 0.01
Private enterprises 5,279,517 0.47 4,693,807 0.47

Foreign-invested companies 43,485,846 3.9 32,877,609 3.32
Investments in joint ventures 2,020,226 1,938,687
Cooperatives and cooperative unions 559,590 0.05 492,208 0.05
Investments in associates 605,550 584,148
Household businesses and individuals 618,067,553 55.48 572,320,166 57.83
Other long-term investments 214,679 213,320
State administration units, parties,
Provision for impairment of other long-term investments (102,794) (123,966) 33,023,753 2.96 28,102,817 2.84
unions and associations
Total 2,737,661 2,613,521 Others 99,482,937 8.93 42,840,492 4.33
Total 1,114,162,624 100 989,671,155 100
DEPOSITS FROM CUSTOMERS VALUABLE PAPERS ISSUED

(By types of deposits) Unit: VND million
Unit: VND million
ITEMS Closing balance Opening balance Certificates of deposits 25,156,996 10,880,315
Demand deposits 178,383,601 161,859,416 Terms less than 12 months 2,345,333 1,831,517
Demand deposits in VND 158,065,981 144,113,810 From 12 months to less than 05 years 21,809,323 8,046,456
Demand deposits in foreign currencies 20,317,620 17,745,606 From 05 years and more 1,002,340 1,002,342
Term deposits 923,233,263 820,032,450 Bills 620 620
Term deposits in VND 893,918,238 787,378,554 Terms less than 12 months 297 297
Term deposits in foreign currencies 29,315,025 32,653,896 From 12 months to less than 05 years 323 323
Deposits for specific purposes 12,545,760 7,779,289 Bonds 4,550,364 7,750,364
Deposits for specific purposes in VND 3,419,939 3,891,948 Terms from 12 months to less than 5 years 2,550,061 5,750,061
Deposits for specific purposes in foreign currencies 9,125,821 3,887,341 From 05 years and more 2,000,303 2,000,303
Total 1,114,162,624 989,671,155 Bonds for capital increase 33,064,382 21,360,062
Total 62,772,362 39,991,361

INTEREST AND SIMILAR INCOME
Unit: VND million
ITEMS Current year Prior year NET GAIN FROM TRADING GOLD AND
Interest income from deposits 3,722,367 2,500,295
FOREIGN CURRENCIES
Interest income from loans to customers 85,798,186 75,218,477
Unit: VND million
Interest income from debt securities 8,722,086 9,830,253
ITEMS Current year Prior year
Interest income from trading securities 25,750 343,783
Income from trading gold and foreign currencies 4,051,700 3,006,737
Interest income from investment securities 8,696,336 9,486,470
Income from foreign exchange spot transactions 3,543,237 2,542,089
Guarantee income 1,771,238 1,733,008
Income from derivative financial instruments 508,463 464,648
Interest income from finance leasing 88,495 28,210
Expenses for trading gold and foreign currencies (2,557,004) (1,967,052)
Other income from credit activities 644,853 528,882
Expenses for foreign exchange spot transactions (2,108,322) (1,305,542)
Total 100,747,225 89,839,125
Expenses for derivative financial instruments (448,682) (661,510)
Net gain from trading gold and foreign currencies 1,494,696 1,039,685
INTEREST AND SIMILAR EXPENSES

Unit: VND million
Deposit interest expenses 58,016,356 47,358,997
Loan interest expenses 2,918,669 3,232,678 NET GAIN FROM TRADING SECURITIES
Interest expenses for issuance of valuable papers 3,422,689 4,261,350 Unit: VND million
Expenses for other credit activities 411,703 265,252 ITEMS Current year Prior year
Total 64,769,417 55,118,277 Income from trading securities 388,385 1,033,608
Expenses for trading securities (145,243) (366,063)
NET PROFIT FROM SERVICES Reversal of provision of trading securities 82,382 (22,089)
Total 325,524 645,456

Unit: VND million
Income from services 7,871,837 6,788,718
Settlement services 3,343,859 2,963,793
NET GAIN FROM INVESTMENT SECURITIES

Treasury activities 87,376 100,101
Agent services 111,939 120,514

Unit: VND million
Insurance services 1,694,062 1,461,745
Other services 2,634,601 2,142,565 ITEMS Current year Prior year
Expenses for services (3,605,506) (3,233,616) Income from investment securities 1,022,180 294,932
Settlement services (623,759) (579,399) Expenses for investment securities (18,444) (39,329)
Treasury activities (253,389) (222,044) Provisions for investment securities (522,514) (20,776)
Post and telecommunications (140,540) (133,910) Total 481,222 234,827
Agent services (855) (874)
Insurance activities (1,222,557) (1,133,619)
Other services (1,364,406) (1,163,770)
Net profit from services 4,266,331 3,555,102

NETWORK
BRANCHES
NORTHERNHIGHLANDS 30 Lach Tray Branch 61 Son Tay Branch SOUTHERN CENTRAL HO CHI MINH CITY 144 District 7 Sai Gon Branch MEKONG DELTA
REGION 31 Quang Ninh Branch 62 Thach That Branch CENTRAL REGION HIGHLANDS REGION REGION 145 Binh Thanh Branch REGION
32 Tay Nam Quang Ninh Branch 63 Dai La Branch 90 Da Nang Branch 117 So Giao Dich 2 Branch 146 Binh Dien Sai Gon Branch 168 Long An Branch
1 Bac Giang Branch 105 Kon Tum Branch
33 Mong Cai Branch 64 Thai Ha Branch 91 Hai Van Branch 118 Nam Sai Gon Branch 147 ChauThanh Sai Gon Branch 169 Moc Hoa Branch
2 Cao Bang Branch 106 Lam Dong Branch
34 Cam Pha Branch 65 Gia Lam Branch 92 Song Han Branch 119 Gia Dinh Branch 148 District 9 Sai Gon Branch 170 Tien Giang Branch
3 Dien Bien Branch 107 Bao Loc Branch
35 Ha Long Branch 66 Hoang Mai Ha Noi Branch 93 Quang Nam Branch 120 Ben Thanh Branch 149 Binh Tan Branch 171 My Tho Branch
4 Ha Giang Branch 108 Da Lat Branch
67 Hoai Duc Branch 94 Hoi An Branch 121 Ho Chi Minh City Branch 150 Thu Duc Branch 172 An Giang Branch
5 Hoa Binh Branch 109 Dak Lak Branch
HANOI REGION 68 Ngoc Khanh Ha Noi Branch 95 Quang Ngai Branch 151 Binh Tay Sai Gon Branch 173 Bac An Giang Branch
6 Lai Chau Branch 110 Dong Dak Lak Branch 122 Phu Nhuan Branch
69 Bac Ha Branch 96 Binh Dinh Branch 123 Bac Sai Gon Branch 152 Thu Thiem Branch 174 Bac Lieu Branch
7 Lang Son Branch 36 So Giao Dich 1 Branch 111 Bac Dak Lak Branch
8 Lao Cai Branch RED RIVER DELTA 97 Phu Tai Branch 112 Ban Me Branch 124 Tan Binh Branch KEY SOUTHERN 175 Ben Tre Branch
37 Hong Ha Branch
REGION 98 Quy Nhon Branch REGION 176 Dong Khoi Branch
9 Sa Pa Branch 38 Hoan Kiem Branch 113 Dak Nong Branch 125 Dong Sai Gon Branch
99 Phu Yen Branch 126 Nam Ky Khoi Nghia Branch 153 Ba Ria - Vung Tau Branch 177 Ca Mau Branch
10 Phu Tho Branch 39 Hai Ba Trung Branch 70 Thai Binh Branch 114 Gia Lai Branch
100 Khanh Hoa Branch 127 Sai Gon Branch 154 Ba Ria Branch 178 Dat Mui Branch
11 Hung Vuong Branch 40 Quang Trung Branch 71 Ha Nam Branch 115 Nam Gia Lai Branch
101 Nha Trang Branch 128 Ba Thang Hai Branch 155 Phu My Branch 179 Can Tho Branch
12 Son La Branch 41 Ba Dinh Branch 72 Nam Dinh Branch 116 Pho Nui Branch
102 Ninh Thuan Branch 129 Cho Lon Branch 156 VungTau - Con Dao Branch 180 DongBangSongCuuLongBranch
13 Bac Kan Branch 42 Ha Noi Branch 73 Thanh Nam Branch
103 Binh Thuan Branch 130 Tay Sai Gon Branch 157 Binh Duong Branch 181 Tay Do Branch
14 Thai Nguyen Branch 43 Dong Da Branch 74 Ninh Binh Branch
15 Nam Thai Nguyen Branch 75 Tam Diep Branch 104 Dung Quat Branch 131 Ben Nghe Branch 158 Binh Phuoc Branch 182 Dong Thap Branch
44 Tay Ho Branch
16 Tuyen Quang Branch 132 Binh Chanh Branch 159 Thu Dau Mot Branch 183 Sa Dec Branch
45 Nam Ha Noi Branch NORTHERN
17 Yen Bai Branch 133 Hoc Mon Branch 160 My Phuoc Branch 184 Hau Giang Branch
46 Dong Ha Noi Branch CENTRAL REGION
134 Phu My Hung Branch 161 Nam Binh Duong Branch 185 Kien Giang Branch
KEY NORTHERN 47 Thang Long Branch 76 Thanh Hoa Branch
135 Cu Chi Branch 162 Di An - Binh Duong Branch 186 Phu Quoc Branch
REGION 48 My Dinh Branch 77 Bim Son Branch
136 Ky Hoa Branch 163 Dong Nai Branch 187 Soc Trang Branch
18 Vinh Phuc Branch 49 Long Bien Ha Noi Branch 78 Lam Son Branch
137 Truong Son Branch 164 Nam Dong Nai Branch 188 Tra Vinh Branch
19 Phuc Yen Branch 50 Thanh Do Branch 79 Nghe An Branch
138 Ham Nghi Branch 165 Dong Dong Nai Branch 189 Vinh Long Branch
20 Bac Ninh Branch 51 Ha Thanh Branch 80 Phu Quy Branch
139 Ba Chieu Branch 166 Bien Hoa Branch
21 Tu Son Branch 52 Trang An Branch 81 Phu Dien Branch
140 Binh Hung Branch 167 Tay Ninh Branch OVERSEAS
22 Kinh Bac Branch 53 Thanh Xuan Branch 82 Thanh Vinh Branch
54 Dong Do Branch 141 Nha Be Branch
23 Hai Duong Branch 83 Ha Tinh Branch 190 Yangon Branch (Myanmar)
55 Cau Giay Branch 142 Thong Nhat Branch
24 Bac Hai Duong Branch 84 Quang Binh Branch
56 Chuong Duong Branch 143 Ba Muoi Thang Tu Branch
25 Thanh Dong Branch 85 Bac Quang Binh Branch
26 Bac Hung Yen Branch 57 So Giao Dich 3 Branch 86 Quang Tri Branch
27 Hung Yen Branch 58 Tu Liem Branch 87 Thua Thien Hue Branch
28 Hai Phong Branch 59 Quang Minh Branch 88 Phu Xuan Branch
29 Dong Hai Phong Branch 60 Ha Tay Branch 89 Ky Anh Branch
For more information about BIDV network, please access the map app
at the address: https://www.bidv.com.vn/en/atm-chi-nhanh

SUBSIDIARIES
At 31 December 2019
Company name Address
BIDV Asset Management Company Ltd.

12th Floor, No.263 Cau Giay street, Hanoi
(BAMC)
BIDV Insurance Corporation (BIC) 16th Floor, Vincom Tower A, 191 Ba Trieu, Hanoi.
BIDV Securities Joint Stock Company (BSC) 10th Floor, BIDV Tower, 35 Hang Voi, Hanoi
MHB Securities Company (MHBS) 153 Hai Ba Trung, Ward 6, District 3, Ho Chi Minh City
International Investment Development Company

20th Floor, Vincom Tower A, 191 Ba Trieu, Hanoi
Ltd. (IIDC)
Bank for Investment and Development of Cambodia No.370, Preah Monivong Blvd., Boeng Keng Kang I,
Plc. (BIDC) (*) Khan Thmey 2, Daun Penh, Phnom Penh, Cambodia
3rd Floor LVB Tower, No 44 Lanexang Avenue, Vientiane,

Lao-Viet Insurance Joint Venture Company (LVI)(*)
Lao P.D.R.
BIDV-SuMi TRUST Financial Leasing Co., Ltd

(BSL)
Lao-Viet Joint Venture Bank (LVB) LVB Tower, No 44 Lane Xang Blvd, Vientiane, Lao P.D.R.
8th Floor, No. 398, Monivong, Beungkeng Kang I,

Cambodia – Vietnam Insurance Company (*)
Charnkar Mon, PhnomPenh, Cambodia
No. 370, Preah Monivong Blvd., Boeng Keng Kang I,

Cambodia - Vietnam Securities Company (CVS) (*)
Khan Thmey 2, Daun Penh, PhnomPenh, Cambodia
(*): Indirect ownership via subsidiaries
180 BÁO CÁO THƯỜNG NIÊN 2019 ANNUAL REPORT 2019 181
JOINT VENTURES
At 31 December 2019
Vietnam-Russia Joint Venture Bank (VRB) 1 Yet Kieu, Hoan Kiem, Hanoi
BIDV Tower Joint Venture Company (BIDV Tower) 13th Floor, BIDV Tower, 35 Hang Voi, Hanoi
BIDV MetLife Life Insurance Limited Liability Company

(BML)
AFFILIATES
At 31 December 2019
Vietnam Aircraft Leasing Joint Stock Company (VALC) 18 Ly Thuong Kiet, Hoan Kiem, Hanoi
Cambodia – Vietnam Foods Co., Ltd National Route 5, Spean Khpus Village, Sangkat Kilomet
(Cavifood) (*) 6, Khan Russey Keo District, PhnomPenh, Cambodia
(*): Indirect ownership via subsidiaries
182 ANNUAL REPORT 2019

BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC
Head office:
Address: BIDV Tower, 35 Hang Voi str., Hoan Kiem dist., Hanoi, Vietnam
Tel: (+84) 24 2220 5544
Fax: (+84) 24 2220 0399
Hotline: 19009247
To download the report, please visit the website:

https://www.bidv.com.vn/en/quan-he-nha-dau-tu/ or scan the QR code:
ANNUAL REPORT 2019 JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM

Annual Report 2019

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ANNUAL

4 ANNUAL REPORT 2019 ANNUAL REPORT 2019 5

KEY PERFORMANCE METRICS

SPOTLIGHTS KEB HANA BANK BECOMES BIDV ’S STRATEGIC

SELEC TED AWARDS AND RECOGNITIONS

6 ANNUAL REPORT 2019 ANNUAL REPORT 2019 7

CHAIRMAN’S continued to maintain its position as the largest

MESSAGE with total assets reaching over VND1.49 quadrillion.

8 ANNUAL REPORT 2019 ANNUAL REPORT 2019 9

2016 2017 2018 2019 2016 2017 2018 2019

2016 2017 2018 2019 2016 2017 2018 2019

TOTAL OPERATING INCOME RETURN ON EQUITY (ROE)

2016 2017 2018 2019

10 ANNUAL REPORT 2019 ANNUAL REPORT 2019 11

KEB HANA BANK in Vietnam’s banking industry history and is a double

SME Bank of the year, Corporate Client

Best SME Bank Vietnam for 2 consecutive years

14 ANNUAL REPORT 2019 ANNUAL REPORT 2019 15

Best credit card in Vietnam for 4 consecutive years (2016-

Vietnam ICT excellence for 3 products:

16 ANNUAL REPORT 2019 ANNUAL REPORT 2019 17

BUSINESS LINES AND LOCATION

ORGANIZATIONAL STRUC TURE

BOARD OF DIREC TORS

OVERVIEW 2019 EXTERNAL AND INTERNAL RISKS

18 ANNUAL REPORT 2019 ANNUAL REPORT 2019 19

FULL NAME CHAIRMAN OF THE BOD SWIFT CODE

ABBREVIATION STOCK TICKER

BUSINESS REGISTRATION NUMBER CHARTER CAPITAL PAR VALUE

TELEPHONE FAX www.bidv.com.vn

20 ANNUAL REPORT 2019 ANNUAL REPORT 2019 21

26 Apr 24 Jun 14 Nov 18 Nov 01 May 24 Jan 11 Nov

22 ANNUAL REPORT 2019 ANNUAL REPORT 2019 23

Trade finance services;

in all provinces and cities helps

24 ANNUAL REPORT 2019 ANNUAL REPORT 2019 25

BANK FOR INVESTMENT AND GENERAL MEETING OF SHAREHOLDERS

BIDV Vietnam-Russia Cambodia-Vietnam INTERNAL AUDIT DEPARTMENT

BOARD OF DIRECTORS RISK MANAGEMENT

BIDV-SuMi TRUST ALCO COUNCIL RISK COUNCIL

IT AND DIGITAL BANKING

BRANCH STRUCTURERISK MANAGEMENT SUPERVISION AND COMPLIANCE

26 ANNUAL REPORT 2019 ANNUAL REPORT 2019 27

Mrs. Nguyen Thi Thu Huong

28 ANNUAL REPORT 2019 ANNUAL REPORT 2019 29

Mr. Ngo Van Dung

Mr. Pham Quang Tung

30 ANNUAL REPORT 2019 ANNUAL REPORT 2019 31

BOARD OF MANAGEMENT Member of Executive Committee of Vietnam Chamber

Mr. Quach Hung Hiep

The Board of Management (BOM) has

The Board of Management consists of Mr. Tran Xuan Hoang

as at 31 December 2019 were as follows: Deputy Head of So Giao Dich II Branch,

Mr. Le Kim Hoa

Mr. Tu Quoc Hoc

34 ANNUAL REPORT 2019 ANNUAL REPORT 2019 35

Mrs. Ta Thi Hanh

The Supervisory Board is an agency

Mr. Cao Cu Tri

38 ANNUAL REPORT 2019 ANNUAL REPORT 2019 39

limited in the context of a highly open economy which

40 ANNUAL REPORT 2019 ANNUAL REPORT 2019 41

42 ANNUAL REPORT 2019 ANNUAL REPORT 2019 43