A Newsletter of Bank for Investment and Development of JSC Issue No. 9 | Oct 2015

Steps forward in logistics development BIDV’S POSITIVE RESULTS IN Q3 Phan Thiet beach, Binh Thuan province, Vietnam

ABOUT BIDV Established in 1957, BIDV has grown to become one of the leading commercial banks in Vietnam. The bank boasts subsidiaries in finance, banking, securities and insurance. BIDV has expanded its business to the international market, with investment in Laos, Cambodia, Myanmar, the Czech Republic, and Russia. By the end of September 2015, BIDV’s total assets were VND786 trillion (USD35.5 billion). BIDV stock (BID) is listed on the City Stock Exchange (HOSE). For more information, please visit www.bidv.com.vn

EXECUTIVE PRODUCER QUACH HUNG HIEP BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC Senior Executive Vice President

EDITORIAL BOARD BRANDING AND PUBLIC RELATIONS DEPARTMENT

HEAD OFFICE: BIDV Tower, 35 Hang Voi str., Hoan Kiem dist., , Vietnam

Tel: (+84) 4 22205544 Fax: (+84) 4 22225316 Contact center: 19009247 – (+84) 4 22200588 Email: [email protected] www.facebook.com/BIDVbankvietnam

License No. 14/GP-XBBT dated 11 February 2015 by the Ministry of Information and Communications

Printed at Vietnam Book Printing Joint Stock Company Editor’s Letter

Dear readers,

n October BIDV maintained stable BIDV continues to be the co-organiser and positive business growth, with of seminars and conferences on profit before tax reaching VND5,535 the Vietnamese economy including billion (USD248 million), an increase seminars on logistics, textile I of nearly 25 percent over the same and garment industry, as well as period last year. Vietnamese business environment for 2016. BIDV is also the main sponsor As well as significant business for the international conference results, the bank held a number Vietnam Global Investment Forum of important meetings with held by Euromoney magazine and a international leaders and partners. forum on Vietnam’s processing and manufacturing, both of which have In October, the President of the attracted the attention of foreign Republic of the Union of Myanmar experts and organisations. U Thein Sein received Mr. Tran Bac Ha, Chairman of Association of BIDV has continued to support Vietnamese Investors in Myanmar children in mountainous areas of (AVIM) and Chairman of BIDV and Vietnam, encouraging and assisting other BIDV leaders in the capital of them in their studying. The bank also Nay Pyi Taw, Myanmar. sponsored VND2 billion (USD90,000) to finance heart operations for BIDV also had meetings with disadvantaged children. Governor of Moscow Province, Russian Federation, with Mr. Prem Vietnam boasts many places of Watsa, Chairman and CEO of Fairfax outstanding beauty for tourists to Financial Holdings Limited and his explore. Our feature articles on Hue delegation and with Mr. Akira Ito, City and Ba Vi National Park and Senior Managing Director, Japan’s accompanying stunning photography Shinkin to foster the provide a taste of some of Vietnam’s relationships with them. top tourist attractions.

01 october 2015 contents

International investment Partners 4. Hopes for Vietnamese enterprises in Myanmar 21. BIDV finances cement project in Ha Nam 22. Cementing ties with Japanese partner

6. Surpassing targets 8. Russian businesses open to new ventures 23. Preparation for a new footprint BIDV highlights 24. BIDV MetLife’s new foothold in the South 9. Positive results for BIDV in Q3

10. Governor of Moscow Province visits BIDV 11. Global forum for businesses 25. Strengthening strategic partnership with Fairfax 12. Steps forward in logistics development 14. Supporting integration in the garment industry 16. Bond market highlights 17. BIDV senior executive elected new VBMA chair 18. A helping hand for sustainable agricultural transformation

26. BIDV finances biomass power project 27. Customers at the center 27. Sharing experiences with Cambodia Ministry 20. New arm in international trust fund of Finance

02 Bidv Review contents

Market movements Products & Services 28. Buoyant ASEAN economies 37. The companion I choose 37. BIDV Big Smile 38. Pioneering in social housing loans 38. Safe and convenient international transfers 39. Earn cash whilst shopping at Vinmart 39. Cash gifts with BIC

Lifestyle 40. A city steeped in history

30. High expectations for 2015 32. Vietnam leading in economic recovery and growth

42. Romance and nature in every step

34. Vietnam rising in global value chain

CSR 44. Educational supplies for mountainous children 46. New hope for children with heart conditions

36. Vietnam climbing in rank 36. 90 percent of NPLs settled

03 october 2015 international investment

Phan Linh

L-R: AVIM/BIDV Chairman Tran Bac Ha (6th) and Myanmar President Thein Sein (7th) in Nay Pyi Taw, Myanmar Hopes for Vietnamese enterprises in Myanmar

The President of the Republic epresentatives of Myanmar’s This note highlighted the successful of the Union of Myanmar Minister of President Office, relations between Vietnam and U Thein Sein met with Mr. Rthe Myanmar Ministry of Myanmar and the good results seen Tran Bac Ha, Chairman of Information and the Central Bank of from economic cooperation, including Myanmar, as well as Mr. Pham Thanh trade, investment and services between Association of Vietnamese Dung, Vietnamese Ambassador to the two countries. The Vietnamese Investors in Myanmar (AVIM) Myanmar and Mr. Doan Nguyen Duc, Prime Minister also emphasised and Chairman of BIDV in Nay Chairman of Hoang Anh Gia Lai Group, a proposal to the Government of Pyi Taw, Myanmar in October AVIM member were in attendance. Myanmar to consider licensing to discuss future business Vietnamese banks to operate in relations between the two Cementing business Myanmar. countries. connections in Myanmar Mr. Tran Bac Ha, Chairman of AVIM, As part of the meeting, Ambassador briefed the President on the positive Pham Thanh Dung submitted a results of the socio-economic Diplomatic Note from the Prime development and sustainable growth Minister of the Socialist Republic of of Vietnam and the strong economic Vietnam to President U Thein Sein. cooperation from investment,

04 Bidv Review international investment

trade and tourism between the Expectations for effective promotion forums in the last five two countries. The AVIM chairman business years to direct his ministries for future affirmed that the Vietnamese business participation. community has identified Myanmar as Mr U Thein Sein responded positively an important new market and has a and stressed that Myanmar appreciates The President commented upon the vested interest in conducting long-term the friendly relations and cooperation significant positive role of BIDV and business in Myanmar. between Vietnam and Myanmar, its presences in Myanmar, including with particular regard to the fruitful the BIDV representative office, BIC and The AVIM Chairman also reported cooperation between the two countries BMF – a microfinance joint venture on the difficulties seen in some in terms of economy and trade in recent between BIDV and its Myanmar projects, including PVEP’s oil and years. He expressed his hopes for partner- as well as BIDV’s commitment gas exploration and exploitation, potential cooperation between Vietnam to supporting Myanmar's financial Viettel’s telecom, VietJetAir's domestic and Myanmar in trade areas such as markets. The President further flights, as well as in the proposal on livestock, agriculture and industrial instructed his ministers to prioritise organising a tourism development crops as well as in Vietnam’s strong licensing BIDV operations in 2016. cooperation forum themed “Four products in agriculture and seafood. countries, one destination” between The President once again welcomed the Cambodia, Laos, Myanmar and The President addressed the obstacles activities of AVIM/BIDV in Myanmar Vietnam. encountered by Vietnamese enterprises and expressed his hopes that AVIM/ in an open manner as well as directing BIDV activities will continue to make The AVIM association reported that his ministries to support as necessary. greater contributions to Vietnamese import-export turnover between the The President showed a particular businesses’ activities in Myanmar, two countries increased by thirty interest and willingness to obtain more further contributing to the sustainable percent and Vietnam was ranked specific information about tourism relationship between the two countries eighth amongst investors in Myanmar, with a turnover of USD688 million. However, the turnover showed signs of decline in 2015. During the first nine months of 2015, there was no FDI registered by Vietnam. Trade relations decreased by nearly thirteen percent, primarily due to Vietnamese banks not yet being licensed to establish their banks in Myanmar, leading to a shortage of payments and investment capital to Vietnamese enterprises operating in Myanmar.

The AVIM/BIDV chairman officially reported to the President that BIDV has now fully met all requirements to open its branch in Myanmar and the bank has made good preparations for finance, investment and technology. The branch is ready to begin operating immediately upon receiving the license and it is hoped the licence will be in place by 2016. Yangon, Myanmar

05 october 2015 international investment

Le ChamPa

Surpassing targets

In early October LaoVietBank (LVB) held a business meeting in Vientiane, Laos to review their business performance over the first nine months of the year and set plans for the remainder of the year.

Significant development

More than 400 staff of the bank attended the meeting and gave input on setting and implementing solution focused plans.

Having overcome difficulties in the macroeconomy, LVB was assessed to have had significant growth. The bank’s total assets increased by 24 percent compared with the beginning of the year. Deposits rose 30 percent Mr. Tran Luc Lang, Chairman of LVB remarks upon LVB's significant achievement and total outstanding loans accelerated by 31 percent. Other criteria such as been able to borrow on the foreign branches and transaction offices in the net service income and pre-tax profit capital market. This is also the most system. exceeded the year plan. LVB’s position significant development of LVB in the Laos market was cemented. It following two decades of operation, Over the coming months, LVB’s is expected that by the year-end, LVB marking the comprehensive change for focus will be on expanding deposits, will have successfully surpassed its the system to integrate and operate in increasing its customer base, business targets for the year. accordance with international practice. enhancing services and forex trading activities, expanding its network as Mr. Tran Luc Lang, Chairman of As well as these significant well as building up and promoting the LVB announced that the bank achievements, LVB CEO Doan Viet bank’s brand. has successfully negotiated and Nam also remarked upon those borrowed from Cathay United Bank, relating to credit operations, new Eyes on retail banking a Taiwanese partner. This is the first product implementation (based on time a commercial bank in Laos has Corebanking) and general activities of As a bridge linking Vietnam and Laos,

06 Bidv Review international investment

Laos Royal Palace

since its inception LVB has focused on other services to satisfy the needs of LVB offer low fees and high deposit corporate customers. However, due customers as well as optimise returns. rates as well as reasonable lending to a general shift from wholesale to rates. With nearly 100 ATMs in the retail banking, LVB is also developing Deposits from residents accounted system, customers of LVB can make products and services aimed at for sixty percent of total deposits of convenient transactions at ATMs individual customers. LVB. Card services grew 250 percent located in large commercial centers over three years with diversified types in Laos. The bank’s ATMs are unique For LVB, retail banking has become a such as credit, debit, associated card in allowing customers in Vietnam priority area in the bank’s business and My avatar card. In the near future, to withdraw Laotian Kip from 28 strategy towards modern banking LVB’s ATMs will start accepting Visa other banks in Vietnam. Vice versa, operations. This helps the bank to and customers will be able to pay bills customers in Laos can withdraw cement its position and brand in the through ATMs. Vietnamese dong from 28 commercial Lao market. banks in Vietnam through LVB’s ATMs. Additionally, LVB is providing other Retail banking has developed and services and products such as payroll, While LVB’s success can be attributed contributed effectively to the system’s domestic and international cash in part to technology, LVB’s revenue. The number of individual transfer, SMS banking, Direct Banking experienced staff with their deep loans has increased significantly with and Bankplus. understanding of products and services a diversified portfolio of products and strong commitment to customer including home loan, auto loan, As the leading bank applying modern service play a significant role. This is overdraft and salary based loans. technology in Laos, LVB’s customers why customers will continue to choose In addition, the bank has made the can enjoy many basic products and LVB to support them in their business most of opportunities to cross-sell services as well as associated utilities. and their success.

07 october 2015 international investment

Hai Dang

Russian businesses open to new ventures

s part of the project Russia- Vietnam: New Economies, a ARussian business delegation paid a working visit to Vietnam, holding a working session with Vietnam - Russia Joint Venture Bank (VRB) on October 1.

Representatives of Russia’s research institutes, high-tech companies including scientific Atoll Scientific Research Institute, Avrora-M, Dalsroymechanizatsia Corporation, Bipron, Uvicom, Minskmetroproekt, Polius scientific research complexes and Nanoserv were in attendance.

The Russian businesses showed their willingness to open joint venture VRB leadership and leaders of Russian hi-tech businesses after the meeting factories in Vietnam in order to promote cooperation and transfer of high The working visit to VRB as well as communities develop technological technology. They expressed interest in the activities of the Russian business partnerships and extend integration the banking and financial services to delegation will create momentum for and technological innovation. support projects for future operations. further development and cooperation in technology, finance and banking to After listening to and answering the support small and medium enterprises During their time in Vietnam, the questions raised by the enterprises, Mr. of the two countries, contributing to delegation met with representatives from Doan Minh Tien, Chief Executive Officer bringing the economic ties between the Vietnamese National Assembly’s of VRB, affirmed, “As a bridge for trade, Vietnam and Russia to new heights. Committee for Science, Technology and economic and investment cooperation Environment; the Ministry of Planning between Vietnam and the Russian Launched in April 2012 under the and Investment, the Ministry of Health Federation, VRB is capable and ready to auspices of the Russian State Duma, as well as holding working sessions assist Russian businesses in financial the Russian Federation Council and with companies under the Vietnam and banking services, particularly the Union of Russian Renovation Area Association of Small and Medium payment services and guarantees.” Associations, the project is designed Enterprises. to help the two countries’ business

08 Bidv Review BIDV Highlights

Phuong Thao

In the first 9 months of 2015, BIDV was the leading bank amongst commercial banks in terms of total assets Positive results for BIDV in Q3

IDV recently reported its up 21 percent in the year to date. With continuous innovation, business performance for the comprehensive and synchronous Bfirst nine months of 2015. BIDV led the market in net service structuring of operations, professional income with a growth of 26 percent management and heading the Accordingly BIDV was the leading bank against the same period. The service trend, BIDV has become the leading amongst commercial banks in terms income was less dependent on credit commercial bank in Vietnam, of total consolidated assets, standing operations but focused on services progressively shaping the position of a at VND786 trillion (USD35.5 billion), with technological content, for example large financial institution in the region. a 20 percent increase against the end payments, cards and e-banking. of 2014. Outstanding loans reached BIDV also played a proactive and VND570 trillion (USD25.5 billion), In the first three quarters of 2015, BIDV pioneering role in supporting the up 15 percent and the highest in the maintained stable business growth with innovation of the country’s economy. entire banking sector. profit before tax reaching VND5,535 BIDV strengthened cooperation with billion (USD248 million), an increase of international organisations, holding Credit growth was significant, focusing nearly 25 percent over the same period bilateral meetings with 14 international on priority sectors in accordance with last year, with provisions satisfying partners at its twentieth anniversary the direction of the Government and regulations. Operational safety indicators of integration into the global financial the State Bank. Credit market share were ensured with NPL ratio of below market, and signed MOUs with Cathay reached 12.9 percent, up 1.3 percent 2 percent. BIDV’s outlook was stable United Bank (CUB) and ANZ Vietnam. compared with 2014. Deposits grew as assessed by the international credit In November 2015, BIDV will hold well and sustainably with deposits rating firms Moody's and S&P, and BIDV important events in the Russian mobilised from market one reaching was confirmed to be among the banks Federation, Japan and Taiwan. nearly VND625 trillion (USD28 billion), with the highest credit rating in Vietnam.

09 october 2015 BIDV Highlights

Hai Anh HAI ANH

A meeting between BIDV and Moscow Province leaders Governor of Moscow Province visits BIDV

n the framework of the official has strengthened its partnerships goods to Russia. The volume of import visit to Vietnam, Mr. A. Y. Vorobiev, with Russian financial institutions, payments from BIDV to the Russian IGovernor of Moscow Province, implementing and financing projects, market in 2014 was USD142 million, an Russian Federation paid a working visit promoting trade finance operations increase of 26 percent compared with to BIDV on October 22. The Russian with the Russian market. The year 2013. In Q1-2015 it was USD24 million. Ambassador and Counselor of the 2006 marked a milestone for economic Russian Embassy in Vietnam, as well as cooperation between both Governments In addition, in order to promote two- representatives of the Vietnam - Russia and the Central Banks of the two way trade and investment cooperation, Cooperation Committee, Vietnam countries, opening opportunities BIDV collaborated with the Vietnam Union of Friendship Organisations for cooperation between the two Trade Promotion Agency under the and the Vietnam - Russia Friendship economies. The opening of Vietnam – Ministry of Industry and Trade and Association were in attendance. Russia Joint Venture Bank (VRB), a joint associations to successfully organise a venture between two leading banks series of seminars and forums. At the meeting, Mr. Tran Bac Ha, of the two countries, BIDV and the BIDV Chairman reported the results Russian Foreign Trade Bank (VTB), was Also at the meeting, BIDV presented a of economic cooperation between a significant move towards cooperation report with suggestions for organising Vietnam and Russia in general and between the two financial systems. events in November in Moscow trade cooperation between BIDV and including a forum on promoting trade Russian banks in particular. Currently, BIDV has established cooperation and bilateral payment; correspondent relations with a seminar on global Vietnamese Following the policies of both the 31 Russian commercial banks, entrepreneurs; a Vietnamese quality Vietnamese Government and the maintaining and promoting products fair as well as plans to Russian Government in bolstering the cooperation with large foreign implement a light industrial zone comprehensive bilateral partnership banks in Russia in order to assist construction project in the province of between the two countries, BIDV Vietnamese enterprises in exporting Moscow.

10 Bidv Review BIDV Highlights

AN NHAN

Global forum for businesses

he Vietnamese Ministry of Planning and Investment (MPI) Talong with the prestigious global magazine Euromoney held a forum in Hanoi entitled Vietnam Global Investment Forum, with BIDV being the main sponsor. The Vietnamese Prime Minister attended, delivering a key speech at the forum. Mr. Tran Phuong, senior executive vice president of BIDV, acted as speaker for the fourth session - SOE Equitisation and Privatisation.

The Euromoney forum was first held in Vietnam in 2007. After years of absence, the MPI and Euromoney once again co-organised the forum, which saw the participation of hundreds of entrepreneurs as well as leading local and regional economists. Mr. Tran Phuong, BIDV SEVP (first, R) at Vietnam Global Investment Forum 2015

Prime Minister Nguyen Tan Dung market, SOE equitisation, real estate foreign investors in improving the delivered an important speech, market development and agricultural competitive capacity of enterprises. attracting the attention of the development. participants. The PM painted a picture of the Vietnamese economy over As the main sponsor, BIDV joined Euromoney Magazine began publication the past five years and the country’s Euromoney to bring opportunities in 1969, with its headquarters in London. achievements during the 2011-2015 to local and foreign investors and It focuses on business and finance in the period. Vietnam is one of the few businessmen and enable them to learn Asia Pacific Region and Latin America. countries to have maintained high about Vietnam's economy and the Its primary audience includes bankers, growth during this period. potential for economic development in financial institutions and financial and Vietnam. banking experts in over 100 countries. The forum consisted of eight main Euromoney regularly organises big discussion sessions under eight Addressing the forum, the BIDV conferences and economic forums major topics of Vietnam's economy, representative shared the bank’s in many countries around the including general economic outlook, experience in the equitisation and world, through its subsidiary named foreign investment attraction, restructuring of state-owned enterprises Euromoney Conferences. banking system reform and capital as well as the necessity and role of

11 october 2015 BIDV Highlights

Van Nguyen

Steps forward in logistics development

In the framework of the third Vietnam Logistics Forum Deputy Minister of Industry and themed Solutions to Improve Infrastructure, Facilitate Trade Trade Tran Tuan Anh, Vietnam’s and Improve the Quality of Logistics Service for Import and total import-export turnover in Export Business, BIDV and Vietnam Logistics Association (VLA) 2014 reached USD298 billion, an signed a memorandum of understanding on comprehensive increase of 12.8 percent from 2013. Vietnam has seen trade surplus for cooperation for the 2015-2020 period. the fourth consecutive year. Mr. Tuan Anh confirmed that through Room for logistics market demand. Currently, logistics the strong development of import- development services are limited in the services they export activities in recent years, the provide, only working at certain stages logistics industry has become an Along with the strong growth seen in the huge service chain. Vietnam’s important player in international trade in the world economy, the logistics logistics industry has great potential and is attracting the interest of the industry plays an increasingly for future growth. international community. important role, serving as a tool linking activities in the global value The growth and development of the Opportunities for tapping chains such as supply, production, logistics industry is closely linked potential distribution and market expansion. to the development of the import With a volume of USD20-22 billion and export of goods. According to As stated in the MoU, BIDV and VLA per year, accounting for 20.9 percent of Vietnam’s GDP, in recent years the logistics industry has made important contributions to the process of goods distribution from producers to consumers and has been the bridge for global trade. As reported in some statistics, the Vietnamese logistics market has seen an average growth rate of 20-24 percent per year.

According to Assoc. Prof., Dr. Vu Dinh Hoe, in 2014 Vietnam’s logistics industry developed encouragingly. In line with the ranking given by the World Bank, Vietnam’s logistics performance index (LPI) reached 3.5/5 points, and ranked 48th in the world LPI index, up five places from 2013. Currently there are about 1,200 logistics businesses in Vietnam yet they only meet 25 percent of the Logistics industry has become an important player in international trade

12 Bidv Review BIDV Highlights

Mr. Le Trung Thanh, BIDV SEVP and Mr. Do Xuan Quang, Chairman of VLA sign MoU

will cooperate in all areas relevant in supporting the production and Truong Hai port company and the to the functions, responsibilities and business activities of the enterprises, aircraft procurement project of capabilities of the two sides, focusing contributing to concentrated VietJetAir. on some key content. These include: (i) production and investment capital BIDV’s products and services such as to help businesses improve the Along with financing logistics credit, banking products and services efficiency of capital, thereby enhancing businesses, BIDV also supported the (account service, deposits, securities the competitiveness of the logistics provision of products and services to services, bond issuance, payment businesses”. the import and export industry. BIDV services, insurance services, retail is one of the few banks in Vietnam to products and other banking services); As the leading commercial bank in provide a full range of trade financing (ii) Logistics: VLA will coordinate with funding important economic sectors products and end-to-end packages BIDV to offer preferential policies to including logistics, BIDV aims to meet tailored to customer needs. BIDV clients introduced by BIDV in using the the capital needs of businesses in this is experienced in handling import logistics service of the VLA members sector. In recent years, in addition transactions of large value with and also VLA will introduce its to providing working capital for complex delivery conditions, including members to BIDV; (iii) Communications logistics businesses, BIDV has provided contract consultancy, payment method and brand development: The two sides medium and long-term financing for advisory, credit for export and import will coordinate to update and exchange many investment projects, including payments and guarantees related to information between Vietnam’s logistics transport vehicles, warehouses, and forex contracts in accordance with business communities and BIDV. seaports, as well as contributing standards and professionalism. to the expansion and upgrading of Mr. Le Trung Thanh, Senior Executive logistics infrastructure. These have BIDV strives to constantly improve its Vice President of BIDV, said: included large-scale projects such as banking products and services. In an “Vietnam's logistics industry has faced the container terminal construction effort to provide all-in-one packages many challenges in human resources, projects of Tan Cang Quy Nhon to customers, BIDV offers diversified training, technology, governance and Company, Gemadept Dung Quat products and services, ranging from in particular poor infrastructure due to International Port of Gemadept Dung retail banking products to securities limited investment capital. Therefore, Quat Company, Tam Hiep seaport services such as issuance advisory, bank credit plays a significant role project in Quang Nam of Chu Lai listing consultancy and book-running.

13 october 2015 BIDV Highlights

Hoai Linh

Supporting integration in the garment industry

n September 30 this year BIDV Recognising the potential for held a seminar entitled “Textile development in the textile industry in Oand Garments – Opportunities the context of integration, BIDV has BIDV Chairman Tran Bac Ha speaks at the seminar and Challenges Amid Integration” in prioritised increasing its market share collaboration with Vietnam National in this industry. The bank reduced its Textile Garment Group (Vinatex). The lending rate and streamlined approval the context of integration. forum aimed to analyse opportunities procedures to support customers and challenges and propose solutions in their production and business Addressing the seminar, Mr. Tran to the garment industry for global activities, thereby increasing the bank’s Bac Ha, BIDV chairman, analysed and integration. outstanding loans to customers as evaluated the impact of free trade well as access to the bank’s services. agreements (FTAs) on the Vietnamese BIDV has some important customers in Currently, BIDV provides a full range economy as well as the textiles and the field of garments and textiles, and of products and services to textile garments industry. Mr. Ha commented the bank’s operations in this industry businesses including credit products, that by joining FTAs, Vietnamese have improved significantly in recent trade finance, international payments, garment producers can take years. BIDV’s credit market share forex trading, derivatives, payment, advantage of export tax incentives, ranked second amongst the top fifty cash management and e-banking. thus increasing the competitive leading enterprises of textile exports. capacity of Vietnamese products on The bank’s outstanding loans for the BIDV is not only the leading bank international markets. There will be textile industry as of the end of 2014 providing credit to businesses more opportunities for local firms reached VND7,168 billion (USD310 operating in the textile and garment to increase their investment capital, million), up 44.5 percent compared industry but also actively provides capture more of the local market with 2013. This is the highest growth consultancy, offering long term share, and restructure their businesses rate compared to other industries with solutions to solve problems and towards international standards, high export volume such as fisheries, developing financial strategies for the enhancing competitive capacity and timber and natural rubber. development of the textile industry in ensuring sustainable development.

14 Bidv Review BIDV Highlights

BIDV Chairman Tran Bac Ha speaks at the seminar

Mr. Tran Quang Nghi, Vinatex chairman opportunities, they may gradually lose to improve laborers capacity and said that in the coming time, Vietnam their advantage in their local market. qualifications; as well as infrastructure will integrate more fully with a series issues such as environmental impact, of multilateral and bilateral trade Representatives from textile and traffic systems, transportation and agreements being concluded, bringing garment enterprises agreed that logistics services, trade and finance. opportunities for the garment and besides the opportunities, new textile industry to expand their export challenges also exist. Weak competitive The seminar is an important step market. The pressure to complete the capacity is the first challenge. Most for the textile and garment industry supply chain, improve competitiveness Vietnamese garment businesses to develop practical and efficient and gradually reduce the proportion are of small to medium size while solutions to its development for global of raw materials imported from China foreign rivals have better management integration. is large, and BIDV’s financial support capacity and larger scale, leading to will help enterprises under Vinatex severe competition in the industry. to implement garment investment Barriers to integration exist, such projects more effectively. as the requirements to improve Since early 2014, BIDV signed a MoU production capacity to meet quality; worth USD600 with Vinatex for the 2014- Currently, many enterprises - mostly environment and labor safety 2016 period. The group’s members FDI - have started looking to invest standards; requirements to establish outstanding loans at BIDV as of the end in the production of source materials and maintain a local favorable of 2014 were VND1,080 billion (over such as fabric, weaving and dyeing. If investment environment; stable USD48 million). local firms do not actively seize these sources of materials; requirements

15 october 2015 BIDV Highlights

MINH TUE

Bond market highlights

ietnam Bond Market Association (VBMA) reported V that in September five government bond auctions in the primary market and the State Treasury raised VND2,503 billion (USD112 million) out of VND15,000 billion (USD671 million) offered. The offering to winning ratio dropped to 16.7 percent from 30.0 percent last month. The winning increased significantly in all tenors compared to last month.

According to the Ministry of Finance, in the first nine months of this year, the State Treasury raised VND127,473 billion (USD5.7 billion) of government bonds (excluding VND51,130 billion (USD2.3 billion) of treasury bills issued and maturing in 2015), reaching 51 percent of the target set for the year.

Furthermore, they reported that in Q3/2015, financial and monetary markets saw unfavourable developments in capital mobilisation to the state budget, due to the influence of the Chinese yuan devaluation, making regional currencies including VND depreciate.

At the end of September, the market share of government bonds dropped slightly in terms of total bond outstanding value to 77.0 percent from 77.05 percent last month, or VND509,313 billion (USD22.8 In the secondary market, the total trading. Government bonds trading billion). This was closely followed by bond trading volume in September volume was VND56,941 billion (USD2.5 government-guaranteed bonds, at was VND66,747 billion (USD3 billion), billion), accounting for 85.31 percent 19.33 percent or VND127,846 billion seeing virtually no change since of total trading. (USD5.7 billion), and municipal bonds August. Outright trading volume was at 3.67 percent or VND24,260 billion VND39,407 billion (USD1.76 billion), Data from the VBMA Market Makers (USD1.1 billion). accounting for 59.04 percent of total Chatroom indicated that government

16 Bidv Review BIDV Highlights

MAI ANH BIDV senior executive elected new VBMA chair

he Executive Committee of established in 2009 with the Tthe Vietnam Bond Market aim of promoting the effective Association (VBMA) held a development of Vietnam’s bond meeting in August this year to market. The association has 56 elect new members as well as a members including commercial new chairman. Mr. Quach Hung banks, securities companies, Hiep, BIDV Senior Executive insurance firms, fund management Vice President, was elected companies, financial companies as to the position of chairman well as some other institutions. of the association, receiving 100 percent of the votes, and replaces Mr. Hoang Huy Ha – the preceding VBMA Chairman and former BIDV board member.

In total 21 members of VBMA’s Executive Committee were present, representing 56 members of the association. The members of the Executive Committee will serve for a term of three years. The election was in compliance with the charter of the association as well as the provisions of law.

The new chairman of the association, Mr. Quach Hung Hiep commented, “I am greatly honoured to represent BIDV by taking up the position of chairman of the association. I will continue to join hands with the executive board members to continue the work that the association has implemented under the leadership of Mr. bond yield fixing at the end of Hoang Huy Ha”. September did not change significantly compared with August. Specifically: -7.7 Vietnam Bond Market bps with 1-year bond, +7.7 bps in 2-year Association (VBMA) was bond, +27.6 bps in 3-year bond, +0.3 bps in 5-year bond, +4 bps in 7-year Mr. Quach Hung Hiep, SEVP of BIDV, VBMA Chairman bond and +4.5 bps in 10-year bond.

17 october 2015 BIDV Highlights

Tran Anh Thu

A helping hand for sustainable agricultural transformation

hanks to its successes in ODA A further feature of this project is be implemented based on wholesale project implementation, in the application of wholesale banking banking funding and BIDV has been T particular the Rural Finance funding. BIDV was chosen by the the sole bank in the system to take Project of the World Bank, BIDV was World Bank, the State Bank of Vietnam part as a wholesale bank. assigned to be the wholesale bank of and ministries and related agencies the Vietnam Sustainable Agriculture to be the project’s wholesale bank. This model will help spread risk and Transformation Project (VnSAT). BIDV will become the managing bank diversify the beneficiaries of projects, to disburse USD105 million from encourage banking competition in Bringing new life to farmers VnSAT through selected retail banks. rural areas, enable beneficiaries - the This model has been successfully farmers and agriculture enterprises to VnSAT, which is worth USD238 applied by BIDV when implementing have opportunities to choose the most million, is one of the four new ODA Rural Finance projects from 1995 up effective services. projects to have been signed between until now. The Rural Finance Project the and has been the first ODA project to The first steps the World Bank during the visit of Party General Secretary Nguyen Phu Trong to the United States of America last July. This project specifically supported implementation of the new agenda in two subsectors: high value rice production in the Mekong Delta for export and coffee in the Central Highlands.

It is expected that 140,000 farmers in the Mekong Delta will be able to access modern and updated technology, helping increase the productivity per hectare by around thirty percent and increasing the region’s value by USD40- 60 million per year.

In the Central Highlands, approximately 63,000 farmers are eligible to apply for sustainable cultivation thanks to the project. It is expected that the region’s income will increase by twenty percent and its value climb by USDD250 million over five years of implementation. VnSAT is expected to contribute effectively to the agriculture and rural development

18 Bidv Review BIDV Highlights

Do Nhu Successful investment for farmers

ural Finance Projects have Rbeen operating for twenty years now, and the number of farmers joining the schemes and benefiting from a more profitable production model is increasing.

The World Bank funded Rural With the thorough preparation and will continue to manage the revolving Finance Projects Package (RFP) the close coordination among related funds in 20 years. began in 1996 and is planned parties (World Bank, State Bank of to continue until 2033. The Vietnam, implementation agencies), The World Bank and Vietnam Ministry project has brought medium VnSAT is expected to contribute of Agriculture & Rural Development and long-term capital for rural effectively to the agriculture and have recently coordinated to organize and agricultural development in rural development, poverty reduction a technical conference on VnSAT Vietnam. BIDV was the sole bank and hunger elimination, to create implementation. The conference has in Vietnam to be assigned as the more jobs and improve farmer living attracted the attentions of many wholesale bank for the project. conditions. experts and provided information about necessary steps for the project’s One such farmer to benefit is Cao The project took effect in October effective operation. Van Da, owner of a small farm 2015 and will be withdrawn by World in Quang Nam Province. Before Bank in the next 5 years, then BIDV receiving loans from the project, his farm had only four workers and reaped an average income of VND120 million/year (USD5,400).

Strongly motivated to develop his farm, Da borrowed VND2.5 billion (USD112,00) from the project’s lending scheme on a 36-month term. With more capital, Da was able to invest in a farm and waste environmental settlement system. Da has since expanded his business to include three farms with a total of fourteen workers, with each farm having 12,000 chickens, bringing him an average income of VND600 million (USD26,900) per year. Thanks to this success, Da’s children now have access to a better education and Da has upgraded his house, purchased better vehicles, and invested further in order to develop a sustainable business. VnSAT is expected to contribute effectively to the agriculture and rural development

19 october 2015 BIDV Highlights

An Nam

New arm in international trust fund

n October 20 this year BIDV ministries and corporate clients with sustainably in terms of scale, market announced the establishment relationships in foreign trusts with share and efficiency, contributing to Oof its International Trust BIDV. The department will also act as the improved reputation of the bank Fund Department as well as the new the focal point for seeking, mobilising, on the international stage. appointments it had made. BIDV deploying and managing the bank’s Chairman Tran Bac Ha, Board member foreign trust funds. BIDV is one of Vietnam’s leading Phan Thi Chinh, and senior executives commercial banks assigned to serve of the bank were in attendance. According to Mr. Tran Bac Ha, major projects involving trust funds Chairman of BIDV, the bank’s fiduciary from foreign governments including The International Trust Fund operations began twenty years ago. , Germany and Switzerland as well Department comes under the The establishment of the new unit aims as international financial institutions Wholesale Banking Division. It is to enable specialised and centralised like the World Bank, ADB, NIB and EIB. responsible for advising and assisting activities in the midst of fierce Since 2002, BIDV has been entrusted by the bank’s management team in competition while private commercial the Government of Vietnam to act as developing and implementing banks are also allowed to participate the lead bank for three Rural Finance strategies and action plans on in this field. The department will also Projects - I, II and III - funded by the mobilisation and management of meet requirements for the mobilisation World Bank. The World Bank assessed foreign trust funds, and establishing, and use of ODA. Mr. Tran Bac Ha Vietnam as the most successful country maintaining and developing external hopes that the International Trust in the world to deploy the model of rural relationships with donors, local Fund will operate vigorously and finance projects.

Staff of the International Trust Fund Department and BIDV leaders

20 Bidv Review partners

Mai Tuan

Representatives of BIDV and Thanh Thang Group sign the contract BIDV finances cement project in Ha Nam

n October 21, BIDV and Thanh in the European Union. Automated contributing to a shift in economic Thang Group signed a credit control and testing systems with high structure as well as to the socio- Ocontract to finance the Line accuracy allow expanded scope of use economic development of the locality. Two project of Thanh Thang Cement of fuel, saving energy whilst creating Plant. The project has a capacity of 2.3 quality products with high stability Mr. Ha also proposed that Ha Nam million tons of cement per year. under international standards and Province and its relevant departments ensuring safety, industrial hygiene and and agencies should support the The project is situated in Thanh Liem environmental protection. completion of infrastructure systems District, Ha Nam Province and has a and ancillary works, and create capacity of 6,000 tons of clinker per Addressing the ceremony, Mr. Tran the conditions for the plant to be day (equivalent to 2.3 million tons of Bac Ha, BIDV Chairman commented: completed and begin operating as soon cement per year), with total investment ”Thanh Thang Group mainly focuses as possible. of VND4,893 billion (USD219 million). on the fields of construction, property This project is a key investment and investment and trading, and deep BIDV has already financed investment is listed in Vietnam’s plan for the seaports. The investment in the projects in Ha Nam Province, including development of the cement industry project in Ha Nam Province is in line others in the cement production for the 2011-2020 period with vision with the plan for development of the industry. These include But Son to 2030, as approved by the Prime cement industry in Vietnam. BIDV is Cement Plant and The Visai Cement Minister. committed to begin disbursing funds Plant, both of which have two lines, as soon as the credit contract is signed. each with a capacity of three million The project employs cutting-edge We have requested that the developer tons per year; and Xuan Thanh Cement technology and equipment provided implements items and ensures the Plant - Phase II, which has a capacity of by the leading cement manufacturers project is quickly put into operation, 4.5 million tons per year.

21 october 2015 partners

VAN TRAN

Cementing ties with Japanese partner

meeting held on October 21 at the BIDV headquarters in the A presence of Chief Executive Officer of BIDV Phan Duc Tu and Mr. Akira Ito - Senior Managing Director, Japan-based Shinkin Central Bank (SCB) cemented the relationship between the two banks. Mr. Vuong Thanh Long - Head of BIDV Japan Desk and Mr. Masahiro Takemoto, SCB secondee to BIDV also attended the meeting.

The leaders of the two banks exchanged up-to-date information on the cooperation situation of the two parties. Mr. Phan Duc Tu recognised the effective cooperation results two years on from the signing of the MOU between the two banks, particularly after the sending of SCB secondee to BIDV. Mr. Akira Ito (L), Senior Managing Director, SCB and Mr. Phan Duc Tu, CEO, BIDV As reported at the meeting, the secondee coordinated to develop Previously, in December 2013, BIDV plays the dual role of a central bank BIDV’s customer base and supported and SCB co-organised a workshop for shinkin banks and an independent BIDV in its marketing and image themed Cooperation Between Banks financial institution. The SCB’s funds promotion, serving as a bridge for and Enterprises to promote Japanese are raised mostly through deposits communication between BIDV and investment in Vietnam. from shinkin banks and the issuance SCB and other Shinkin banks. BIDV of debentures. The SCB invests these successfully concluded its twenty first Founded in 1950, SCB is the central funds in securities and lends them out MOU with Amagasaki Shinkin Bank bank for shinkin banks - which as loans, using the resulting profit to in August 2015. BIDV and SCB hope currently number 267- operating as a support the activities of shinkin banks. to continue to further promote the cooperative financial institution whose The SCB is one of Japan’s leading cooperation in the future. Mr. Akira Ito membership consists of all shinkin financial institutions. Currently, recognised and appreciated the fruitful banks nationwide. The SCB had total the SCB has about 270 corporate performance and contributions of the assets of JPY35.5 thousand billion, customers operating in the Vietnamese Japan Desk to the Japanese enterprises. equivalent to USD289 billion. The SCB market.

22 Bidv Review partners

Phuong Thao

Taiwan ranked fifth among Vietnam’s major trade partners

Preparation for a new footprint

n October 12 BIDV Chairman events, marking a new milestone in has affirmed its pioneering position in Tran Bac Ha met with Mr. economic relations between Vietnam economic relations and integration with OHuang Chih Peng, Chief of and Taiwan. On behalf of the Taipei regional countries. Taipei Economic and Cultural Office Economic and Cultural Office in Hanoi, in Hanoi. BIDV Management Board Mr. Huang Chih Peng noted their members as well as staff of the Taipei appreciation of the activities of BIDV According to the Taiwan Customs Economic and Cultural Office in Hanoi and said the office would render its Administration, in the first 8 months of attended the meeting held in the BIDV best efforts to coordinate with and 2015, total two-way export and import headquarters in Hanoi. support the bank in the successful turnover between Vietnam and Taiwan organisation of the events. reached nearly USD8.1 billion, down 3.1 Mr. Tran Bac Ha and Mr. Huang Chih percent over the same period last year. Peng discussed a plan to cooperate BIDV will be the first Vietnamese In which, Vietnam’s exports to Taiwan in organising a Vietnam – Taiwan bank to open a representative office amounted to USD1.7 billion, an increase economic cooperation forum and a in Taiwan. Currently the bank has of 0.4% while imports from Taiwan ceremony to present the operating presences in Cambodia, Laos, Myanmar, reached USD6.4 billion, down 4 percent. license and opening of a BIDV the Czech Republic and Russia, amongst Taiwan ranked fifth among Vietnam’s Representative Office in Taiwan in other countries. With the opening of a major trade partners. the near future. These will be notable representative office in Taiwan, BIDV

23 october 2015 partners

HOAI THU

BIDV MetLife leaders at the opening ceremony BIDV MetLife’s new foothold in the South

n September this year BIDV MetLife 48 BIDV branches in Hanoi and Ho insurance will increase. It is predicted Life Insurance Limited Liability Chi Minh city and issued over 18,000 that the life insurance industry will ICompany officially opened its insurance policies. The successes grow by around fifteen percent branch in , expanding over the past year demonstrate the over the next five years. This is an its network in the South. This marks a effectiveness of bancassurance trends opportunity for BIDV MetLife to realise milestone for BIDV MetLife more than as well as the growth potential of BIDV its goal of becoming one of the leading one year since its establishment. The MetLife in Vietnam. firms in providing bancassurance and opening of the branch demonstrates maintaining sustainable development”. BIDV MetLife’s commitment to bringing Mr. Dustin Ball, Chief Executive Officer, the most advanced insurance products BIDV MetLife, said: “The opening of The new branch is located at Green and services to Vietnam and protecting the branch in Ho Chi Minh City is Power, 35 Ton Duc Thang Street, its customers in every stage of life. an important step in the business District 1, HCM City. The establishment expansion of BIDV MetLife to better of the branch is part of the company’s Since its inception in 2014, BIDV serve its customers. Vietnam is one of strategy for developing partnerships MetLife has become one of the fastest the markets with the highest growth with BIDV across the country. The growing life insurance firms in the rate of life insurance in Asia. With an new branch will be the focal point market, with USD1-million-revenue annual economic growth of six percent for supporting future business after 33 weeks of sales. Up until now, and per capita income of USD2,000 development, along with BIDV’s BIDV MetLife has launched sales at per year, individual needs for financial branches in the South.

24 Bidv Review partners

Hieu Cong

Strengthening strategic partnership with Fairfax

n October 23 this year, Mr. Prem Watsa, Chairman and CEO Oof Fairfax Financial Holdings Limited (Fairfax), paid a working visit to Vietnam after the closing of the recently announced transaction in which Fairfax acquired approximately 35% of the outstanding shares of BIDV Insurance Corporation (BIC).

The visit was intended to strengthen and further promote the strategic partnership with BIC and its other largest shareholder, the Bank for Investment and Development (BIDV).

At the meeting with Mr. Tran Bac Ha, Mr. Pham Quang Tung (5th, L-R), BIDV SEVP and Chairman of BIC presents “BIC shareholder Chairman of BIDV, and other senior certificate” to Fairfax representatives management of BIDV and BIC, Mr. Prem Watsa expressed his admiration over the years. Mr. Prem Watsa made Executive Vice President and Chairman for the achievements of BIDV and BIC his clear expectations for a successful of BIC, commented: "With Fairfax’s cooperation with BIC, through the experience and capacity, particularly commitment to providing the best in Asia, we expect BIC will enter into Fairfax is a holding company which, technical support to BIC for enhancing a new development stage and become through its subsidiaries, is engaged insurance operations, strengthening a leading international insurance in property and casualty insurance risk management and information company." and reinsurance and investment technology, diversifying distribution management. Fairfax was founded channels, and effectively managing in 1985 by Mr. Prem Watsa and their portfolios. Earlier that day, Mr. Prem Wats met with headquartered in Toronto, Canada. the Vietnamese Minister of Finance Dinh Fairfax shares (FFH) are listed on the The chairmen of BIDV and Fairfax Tien Dung. Fairfax greatly appreciated Toronto Stock Exchange. Since 1985, shared the vision that BIC become the support of the Ministry in successfully Fairfax has compounded book value a leading international insurance completing the transaction with BIC. The by over 21% annually. Fairfax has total company with professional and Minister also provided a brief overview assets of approximately USD36 billion, profitable operations in the region of the macroeconomic situation and revenues in excess of USD10 billion through the support of its two largest financial markets in Vietnam, including and common shareholders’ equity of in shareholders. the Ministry’s commitment to promoting excess of USD8 billion. sustainable market development. Mr. Pham Quang Tung, BIDV Senior

25 october 2015 partners

Linh Hoai

The biomass power project is expected to help solve power shortages during the dry season in Vietnam BIDV finances biomass power project

IDV Quang Ngai branch and An Khe Biomass Power Plant is situated because it is a clean, efficient energy Quang Ngai Sugar Joint Stock in Thanh An Commune, An Khe Town, source, employing modern technology. BCompany (QNS) signed a credit Gia Lai Province. The total investment Electric energy generated from fuel contract to finance An Khe Biomass in the project is over VND1,604 sources such as bagasse, sawdust, Power Plant investment project in billion (around USD72 million), with a rice husks, coffee pulp and straw has Quang Ngai Province. This project has maximum design capacity of 85MW. the advantage that it creates minimal been approved by the Prime Minister to The project is expected to help solve environmental impact as it uses join the national power grid. power shortages during the dry season modern boiler technology and does not in Vietnam and to meet the rapid load involve the use of fossil fuels. Under the contract, BIDV will provide growth in Gia Lai Province as well as a maximum loan of nearly VND990 neighboring provinces of Binh Dinh, Addressing the signing ceremony, Mr. billion (~USD44 million) to the Biomass Quang Ngai and Phu Yen. Phan Duc Tu, Chief Executive Officer Power Plant, with a loan to investment of BIDV said: “Given QNS’s capacity to value of 67 percent (excluding VAT). Renewable energy development is build and operate, BIDV believes that The loan term is eleven years and a key area identified in Vietnam’s An Khe biomass power plant will be eight months, with a grace period of National Energy Development Strategy completed quickly and put into operation twenty months during the project until 2020 with vision to 2050 and on schedule, addressing the shortage construction. BIDV is also providing its Strategy for National Electricity of power in the region as well as the a full range of banking products and Development for the 2011-2020 period country and contributing to the social- services to support the developer to with vision to 2030. Biomass power is economic development of Vietnam”. complete the project on schedule. one of the recommended objectives

26 Bidv Review partners

Van Cuong Huong Thu

Sharing experiences with Cambodia Ministry of Customers Finance n October 6, a working at the center Omission led by Mr. Ney Sakai, Director of Financial Markets Department, Cambodia Ministry of Economy n October 20 this year, BIDV effectively contact customers, respond and Finance (MEF) worked signed with Viettel Group to to their questions and complaints, take with BIDV to learn about state Osupply solutions to construct care of customers’ needs and develop credit guarantee for small and the BIDV Contact Center. appropriate products and services. medium enterprises.

According to the contract, an overall According to Mr. Le Trung Thanh, Mr. Le Trung Thanh, BIDV’s solution (IPCC.ONE) will be delivered Senior Executive Vice President of Senior Executive Vice to enhance the quality of the BIDV BIDV, the modern contact center President, Head of BIDV’s SME Contact Center. The contact center was created in line with the bank’s Banking Department as well will have 150 tellers. The solution customer-centric strategy. The project as director of BIDV Training integrates both telecommunication aims to provide professional products School welcomed the valued and technology. It allows enterprises and services to customers through delegation. At the proposal to create an information center, different interactive channels. by the Cambodian MEF, BIDV shared its experiences relating to state credit guarantee for SMEs. These were with regard to the role and characteristics of SMEs in the economy; the operation scheme of state credit guarantee fund; the benefits contributed from credit guarantee funds to SMEs, commercial banks and the economy; the current situation of the credit guarantee market, the guarantee activities at BIDV as well as solutions to develop the state credit guarantee fund.

According to Mr. Ney Sakai, the information and experience shared by BIDV will be helpful for Cambodia’s MEF to establish a Cambodian credit guarantee fund in the future. BIDV and Viettel representatives sign the contract

27 october 2015 market movements

Viet Dung

Buoyant ASEAN economies

In early October, Word Bank (WB) released its East Asia and Agriculture growth will drop on Pacific Economic (EAP) Update. According to WB, looking ahead, account of the floods, and investment aggregate growth in the Association of Southeast Asian Nation in manufacturing and industry will (ASEAN) economies will be roughly stable at 4.3 percent in likely remain slow over the course of 2015, rising to 4.9 percent by 2017, with increasing support the political transition. Inflation in 2015/2016 is projected to increase from global growth and export demand, particularly from high- to 11.3 percent (period average) due income economies. to a combination of supply pressures caused by the floods and currency owever, growth in developing limited capital markets, Cambodia depreciation. Fiscal policy is expected EAP is expected to ease, from would be relatively shielded from to remain broadly on track, but the H6.8 percent in 2014 to 6.5 financial volatility. current account will come under percent in 2015 and 6.3 percent over further pressure due to import 2016–2017. This reflects mainly a Moderate improvement in the standard demand for post-flood rehabilitation moderate slowdown in China. of living of urban households will be and slowing agricultural exports. seen throughout 2015–2016, given the Cambodia expectations of the economic sectors Economic growth is expected to pick in which they participate (mainly up over the medium term, assuming Growth is expected to slightly ease construction and services). Per capita continued progress on economic to 6.9 percent in 2015, in a context GDP is expected to reach USD1,145 in reforms and a smooth political of sluggish agricultural growth, 2015, a 5.6 percent increase over 2014. transition. uncertainty in the tourism sector, and moderate garment exports. A Myanmar Laos sharper than expected slowdown in the Chinese economy would somewhat Economic growth in 2015/2016 is The economic outlook for the medium dampen growth prospects, mainly due expected to moderate to 6.5 percent term remains broadly positive. to potentially lower Chinese tourist in real terms, though this is subject The fiscal and external balances arrivals, while export dependency to revision as more details come are expected to improve over the is low. Nonetheless, in a context of in on the impact of the floods. medium term. The fiscal deficit is

28 Bidv Review market movements

Poverty in Vietnam is expected to continue to decline

projected to decline to less than more robust private consumption in 2017, while the percentage of the 4 percent in FY15/16 and further and investment growth. Despite the population living below USD3.1 a to around 3.5 percent of GDP in expansionary stance, day would fall from 12.3 percent in FY16/17 as authorities continue to inflation would remain low due to 2012 to 6.7 percent in 2017. While improve revenue administration and subdued global conditions and low the strengthening recovery combined increase excises while consolidating global energy and food prices. The with stable macroeconomic conditions expenditures by continuing tight fiscal deficit is expected to start is expected to help sustain positive control over new investment projects adjusting through consolidation poverty trends, slower agricultural and nonessential spending. On the efforts to avoid further increases in growth may dampen rural income external side, continued FDI inflows public debt. growth and widen the rural-urban to pipeline power projects will keep income gap. It is also expected that imports high; however, expanding The trade balance is projected to turn ethnic minorities will account for a electricity exports from new plants into a deficit in 2015 due to softer growing share of the poor. and low energy prices are expected to export growth and sustained strong narrow the overall deficit. import growth stoked by stronger domestic economic activity. However, Vietnam robust remittances will keep the BIDV is the most active Vietnamese current account in surplus, albeit at a bank investing overseas, especially the The medium-term outlook for Vietnam much lower level than last year. ASEAN countries. Beside other regions, is positive on balance but subject to currently the bank has commercial significant downside risks. Growth is Poverty is expected to continue to presences in three ASEAN countries expected to be over 6 percent in 2015, decline. Extreme poverty (USD1.9 a including in Laos, Cambodia and underpinned by further recovery in day, 2011 PPP) is expected to decline Myanmar. domestic demand, in turn reflecting from 2.8 percent in 2012 to 1 percent

29 october 2015 market movements

Thu Trang

Booming real estate has contributed to the growth in the Vietnamese economy High expectations for 2015

Vietnam’s macro economy is expected to continue its growth with an increase of only 0.4 percent over the last quarter of this year with GDP expected to reach 6.9- from the beginning of the year. 7.1 percent in the fourth quarter and 6.56-6.66 percent at the year-end. The stock market is benefitting from this economic A major concern for Vietnam’s macro surge, according to BIDV Securities Company’s forecast. economy over the last three quarters has been the trade deficit, which could increase to USD7-8 billion by the end Accelerated pace in the global market. Garments and of the year. Vietnam’s exports depend textiles, footwear, fishery and wood greatly on FDI enterprises. However, Booming real estate, expansion in the sectors will benefit most from FTAs, this sector still imports a significant construction market as well as recovered especially TPP and EU-Vietnam free amount of products and accessories domestic demand have all contributed trade agreement (EVFTAs). from abroad rather than using to the growth in the Vietnamese Vietnamese made goods. economy. Production growth is more According to BIDV Securities Company difficult to forecast but it still expected (BSC) report on Q4/2015 macro This trade deficit also impacts the to contribute significantly to GDP. economy, as a result of all these trade amount of USD available on the agreements FDI may accelerate to domestic market, placing extra burden FDI is expected to continue its pace USD22-24 billion in 2015. on the foreign exchange market. of growth thanks to several free trade However, this burden is not seen to be agreements (FTAs) in progress as well The country’s CPI will remain low at of major significance and VND/USD as the signed Trans-Pacific Partnership year-end, based on the predictions rate is expected to fluctuate around (TPP). Because of these FTAs, Vietnam of this report. Inflation measured in 21,890 – 22,547. is becoming increasingly attractive to September this year saw little change investors as it is better able to compete compared to the same period last year, According to BSC, Vietnam’s interest

30 Bidv Review market movements

Booming real estate has contributed to the growth in the Vietnamese economy

rate is expected to remain at a low level due to a successful business period In terms of sectors, stocks groups such due to low inflation. However, it is still and the effect of the TTP. However, as bank, oil & gas, and consumption difficult for the State Bank to reduce this positive trend is not forecast to will still be stock pillars establishing medium and long-term lending rates. continue over the following month the price level of the market. However, due to lack of capital, particularly these stock groups might not lead Positive stock market in foreign capital, which is a significant the uptrend due to the foreign cash short term catalyst. The market is expected to flow shortage and are likely to remain stabilise in November and bounce back stable this quarter. Vietnam’s macro economy is moving in December as foreign cash flow and in a different direction from other periodical capital from ETF returns. The The real estate market is recovering countries in the region. As Vietnam Vietnamese stock market may fall into well, with more projects commencing continues to grow, many other newly the range of 580 points ± 5 percent at while home sales have been promoted. emerging countries are struggling. the end of this year. The rise of real estate stocks is expected Economic risk from developing to replace the bullish trend of banking countries is rising due to instability in BSC also put forward their stock at the year-end and into next year. the Chinese economy. As a result, the recommendations for the investment Vietnamese stock market holds greater strategy for this quarter. With foreign Thanks to production expansion, appeal for investors. and large scale capital being in shortage, stock of export firms such as September saw cash flow run mostly textiles, footwear, fishery, industrial BSC forecast that in the short term, the into small, basic and low liquidity infrastructure and seaports firms are stock market will see positive growth, stocks. Small and very small-cap stocks likely to continue to report growth slowing down in the medium term. also have better earning per share than following the signing of the TPP. other stock groups. This trend may well The stock market was bullish in October continue into the fourth quarter. Source: BIDV Securities Company.

31 october 2015 market movements

Trang Trinh

Vietnam leading in economic recovery and growth

he Vietnamese economy, along with the global economy, is Tmoving in a positive direction during the final months of the year. However, there are many challenges that will continue to affect the recovery of world economies in 2016. To provide an overview of the global and Vietnamese economies over the coming year, BIDV’s Training School organised the seminar entitled Analysis and Forecast of the Global and Vietnamese Business Environment in 2016, Providing Solutions to BIDV.

Bumpy recovery for global economy

According to Dr. Vo Tri Thanh, Deputy Director of the Central Institute for Economic Management (CIEM), between Dr. Vo Tri Thanh, Deputy Director of CIEM speaks at the seminar 2010 and 2014 the global economy faced a difficult recovery period. many risks, including the price shock risks, retain recovery pace, restructure Figures from IMF showed that the due to the fall in prices of basic itself, integrate and form better global global economy grew significantly by commodity goods. Financial risk connections, develop in various sectors 5.2 percent in 2010. However, this and capital flow volatility are closely and develop more sustainably and figure fell sharply to 3.0 percent, then entwined with China’s crashing stock creatively,” said Dr. Thanh. recovered slightly to 3.4 percent in market, the risk that the Fed may 2014. During the period 2015-2016, the increase interest rates as well as In this somewhat gloomy context, world economy continued to recover China’s moves to devalue the Yuan. Vietnam is one of the few Asia-Pacific but remained weak and unstable. economies retaining its growth. “The global economy is in a ‘transition Experts at the seminar assessed that Currently the global economy faces period’, in which it needs to reduce during the first nine months of this

32 Bidv Review market movements

Vietnam is one of the few Asia-Pacific economies retaining its growth

year, Vietnam saw the highest growth many hurdles must still be overcome seminar were in general agreement that compared with the previous five years. in order for better growth to be Vietnam could complete all of its socio- achieved in 2016. economic targets for 2016. The average This year has also seen the lowest annual gross domestic product (GDP) inflation for Vietnam in fourteen Non-performing loans (NPL) need to for the next five years is targeted at years. By the middle of October, credit be handled with greater efficiency. 6.5-7 percent and 6.7 percent for 2016. growth reached eleven percent, and is Vietnam has not yet established a The consumer price index will be below forecast to reach sixteen percent by the debt market to address NPLs. Public five percent in 2016. The total social end of the year. The real estate market, investment restructuring has not been investment in 2016 and for the next which often absorbs a huge amount of clear while state-owned enterprise five years is expected to account for the economy’s capital, is also warming reform was low. Public debts and 31 percent of the GDP; and the budget up. Real estate inventories by the end state budget deficit have been brought deficit in 2016 will be 4.95 percent of of August reduced their losses by under control but are still at a high the GDP and 4.8 percent in 2020. eighteen percent compared with the level. In addition, the slowdown of beginning of the year. China’s economic growth has brought Based on the predictions of Mr. Do risks to the Vietnamese economy, Ngoc Quynh, Head of BIDV Treasury Vietnam’s stock market is also the only primarily in its effect on the export and Currency Trading, the foreign one amongst Asia Pacific countries to turnover of Vietnam’s key industries. exchange market will continue to report growth, with an increase of eight be the “hot spot” of the economy in percent from the beginning of the year. Furthermore, the integration process, 2016. Both the Vietnamese and global whilst expected to bring many benefits foreign exchange market have seen a Positive outlook for 2016 to Vietnam, will also cause some year of sharp fluctuations. 2016 will pressure and risks to Vietnamese be a year of pressure for the State According to Dr. Can Van Luc, Senior enterprises, due to their lack of Bank of Vietnam to regain control Executive Vice President of BIDV, international trade experience and risk of the market. The foreign exchange although Vietnam will surpass many hedging solutions. rate issue will present a significant of the economic targets set by the challenge, and needs both thorough National Assembly earlier this year, However, experts and participants in the calculation and strategic planning.

33 october 2015 market movements

Thu Trang

Vietnam rising in global value chain

Wider integration has resulted in a greater number of opportunities for Vietnam to participate more deeply in the global value chain. Vietnam is expected to become a global processing and manufacturing (P&M) center over the next twenty years.

Yen Phong Industrial Zone - Bac Ninh Province

in Vietnam, P&M sectors play an important role and continue to be the main drive for economic growth. Mr. Nhan also said that Vietnam still holds advantages in terms of low labour costs but it must be determined how long this advantage will last.

Many delegates also agreed that Vietnam is ideally situated on the international trade route, with a suitable location to support the production and export of goods on a large scale. The country has begun Dr. Can Van Luc, BIDV SEVP speaks at the conference actively integrating with global and regional economies. In addition, he statement was agreed by Vietnam is expected to be the Vietnam’s production is growing at a delegates at an international ideal choice for multinational P&M relatively stable rate compared to other Tconference organised by the corporations throughout the world, as manufacturing centers in the region. Vietnam Fatherland Front (VFF) and the Vietnam has attracted a great deal of World Bank in Hanoi on October 24. cash flow as well as P&M enterprises According to Ms. Victoria Kwakwa, to its domestic market. Statistically, the World Bank Country Director for Global potential 63 percent of Vietnam’s exports are Vietnam, Vietnam has the potential processed products and 56 percent of to become a significant global P&M According to delegates, many P&M foreign investment is pumped into P&M. center. Over the next ten years, in the centers in the world are currently region of USD90 billion, equivalent to following a trend to switch from President of VFF Central Committee nearly 50 percent of Vietnam’s GDP, developed countries to developing ones. Nguyen Thien Nhan stated that will be invested into the field and the

34 Bidv Review market movements

Yen Phong Industrial Zone - Bac Ninh Province

sector now accounts for 80 percent of Dr. Can Van Luc, Senior Executive high import content. Only half of the total export turnover. Vice President of BIDV, identified five value of Vietnam’s manufacturing key industries for P&M development export is generated in Vietnam. Figures from the State Bank of Vietnam including textiles and garments, indicate that the manufacturing footwear, computer and electronic Another important factor suggested sector attracted attention from many components, machinery and energy. by Mr. Luc is that of developing enterprises, particularly FDI ones. 80 These industries account for 50 Vietnam’s P&M sector’s labour force out of 101 countries and territories percent of total exports and generate and application of technology. investing in Vietnam have a presence many jobs for the country. According to the Vietnam General in the sector. The share of P&M in Statistics Office, the percentage of total business investment is increasing “In addition, we should not neglect the untrained or unskilled workers was 82 every year, rising from 50 percent in rights and benefits of the workforce percent in 2014. The size and quality 2011 to 72 percent last year. nor environmental protection. of the labour workforce is relatively Lessons must be learnt from China’s low, accounting for 10.2 percent of Identifying areas for action deteriorating environment,” Mr. Luc the total workforce; particularly in the emphasised. P&M sector where this number is only Whilst the opportunities are clear, 9 percent, much lower than that of Vietnam must focus on certain According to the World Bank, the developed countries, at 40-60 percent. areas in order to realise its goal. challenge that lies ahead is in According to Mr. Tran Duy Dong, enhancing the links between FDI In addition, the standard of technology Deputy Director of Economic Zone and domestic firms. Currently, few and science is inadequate to support Management Department under the domestic firms engage in global the development of high-tech Ministry of Planning and Investment markets and their linkage with the FDI manufacturing sectors. Vietnam should (MPI), Vietnam should identify the sector is very weak. While FDI based also promote the development of a focus points to develop the P&M manufacturing has been a success support industry, gradually moving sector, including the key area - that of story, performance of domestic towards a high-tech support industry. convenient regions for processing- and firms has lagged behind. Vietnam’s key industry. manufacturing exports have relatively

35 october 2015 market movements

Thu Trang

Vietnam 90 percent climbing in rank of NPLs settled

ccording to figures from A the State Bank Deputy Governor Nguyen Kim Anh, from 2012 to August 2015 credit institutions dealt with VND424.12 trillion (USD19 billion) of non-performing loans (NPLs), accounting for 91.2 percent of the system’s total NPLs recorded in December 2012.

Vietnam Asset Management Company (VAMC) handled 41.3 percent of these. The remaining were solved by credit institutions through urging customers to pay back debts and using loan loss provision.

ccording to the World status in the medium term. The region The NPL ratio has reduced Economic Forum’s Global now accounts for some thirty percent significantly to less than ACompetitiveness Index (GCI), of global GDP, with China alone 3 percent by the end of Vietnam climbed twelve places to rank accounting for sixteen percent. September. 56 out of 140 economies analysed in a survey released in October 2015. Behind Singapore (2nd), the five largest members of the Association Among the twelve competitiveness of Southeast Asian Nations (ASEAN) other ASEAN members - Lao PDR (83rd, categories, Vietnam performed well - namely Malaysia (18th, up two), up 10), Cambodia (90th, up five), and in ‘market size’, ranking 33rd and Thailand (32nd, down one), Indonesia Myanmar (131st, up three) - have all ‘labor market efficiency’, ranking (37th, down four), the Philippines moved up the ladder. 52nd. Vietnam’s performance was (47th, up five), and Vietnam (56th, seen to be less good in the ‘business up 12) - all rank in the top half of the The top ten most competitive best sophistication’ pillar, ranking 100/140 overall GCI rankings. performers in WEF’s research included and ‘higher education and training’, Switzerland, Singapore, the United ranking 95th. With the exception of Thailand, all five States, Germany, Netherlands, Japan, have improved their showing since Hong Kong, Finland, Sweden and the Emerging and Developing Asia has 2007, most notably the Philippines, United Kingdom. been the world’s fastest-growing region which has leapfrogged 17 places. since 2005 and looks set to retain this Although ranked much lower, the three

36 Bidv Review products & services

The companion I choose BIDV Big Smile

rom September 22 until package comes with an international rom October 10, December 20 this year, BIDV is debit or credit card. Both offer free F2015 to January 10, Frunning a promotion program BIDV online access for the first year, 2016, BIDV will run a called The Companion I Choose, worth and two free months of BSMS and free program entitled BIDV more than USD11,000. The first 5,000 SMS OTP for customers registering for Big Smile for individual new individual customers applying for financial services for the first year. depositors or borrowers. account packages will be eligible for The total value of gifts the bonus. Three account packages - student, being awarded through basic and modern - will include an the program is in the With several diverse product issuance fee waiver and a first-year region of VND5 billion packages, customers from students card annual fee waiver. (USD224,000). to entrepreneurs can find the most suitable product to match their needs. Those opting for the modern package The program applies to will be offered an associated bill all customers depositing The basic package comes with a payment service and a reduction of 0.1 from VND200 million ‘harmony’ credit card. The modern percent per annum of lending rate. (USD9,000) or borrowing from VND300 million (USD13,500). Customers making transactions through BIDV will receive bonus points and will be informed through email. The bonus points represent the value of gifts customers can receive in each phase of the program.

To encourage customers to participate more actively in the program, BIDV will offer special phases to multiply customers’ bonus points. The program is in recognition of customers who use BIDV’s products and services and support the bank’s development.

37 october 2015 products & services

Safe and convenient international Pioneer in social transfers housing loans IDV has launched a program BFast Transfer – Happy Gift, effective from October 15 until IDV continues to be the leading accounting for 37.2 percent of the December 15, 2015. commercial bank disbursing system’s disbursement at VND9,149 Bthe social housing package billion (USD409 million). With simple and quick worth VND30,000 billion (USD1.34 procedures, competitive billion). BIDV signed credit contracts BIDV was committed to disburse fees and professional staff, with 9,587 individual customers and VDN4,774 billion (USD213.6 million) to customers can benefit from households among 28,992 eligible individual and household customers, effective and safe international customers. accounting for 35.5 percent of the cash transfer services through system’s figures (VND13,461 billion or BIDV. Customers can transfer The total amount disbursed reached USD602 million). different currencies including VND3,403 billion (USD152 million), USD, GBP, EUR, AUD, CAD, SGD and HKD.

Additionally, customers can purchase foreign currency from BIDV. The maximum value of foreign currency a customer may buy is up to:

l USD30,000 or currency equivalent/person/year for overseas study

l USD10,000 or currency equivalent/person/time for medical treatment excluding hospital bills

l USD7,000 or currency equivalent/person/year for overseas family member allowance

From mid-October to mid- December this year, with each international cash transfer transaction made through BIDV, customers will be awarded with bonuses. Customers making transactions with a value of between USD1,000 and 3,000 and over USD3,000 will receive a bonus of VND40,000 and VND70,000, respectively. Rice City - A social housing project financed by BIDV

38 Bidv Review products & services

Hong Ngoc

Cash gifts with BIC

rom October 20 until the Fend of December this year, BIDV and BIC are coordinating to launch the Instant Gifts promotional programme to motivate customers to buy new or renew existing BIC insurance policies via online Bancas.

Individual customers buying new or renewing BIC Binh An and BIC Home Care via Bancas online during the promotion period, with insurance premiums from VND2 million (USD90), will be entitled to attractive gifts such as supermarket vouchers or the Earn cash whilst cash equivalent. Customers with insurance premiums from VND10 million shopping at Vinmart (USD450) will be entitled to cashback of VND1 million (USD45), those with insurance premiums of between VND5 rom October 17, 2015 cards - Vietravel Standard, Vietravel million (USD225) and VND10 until January 3, 2016, BIDV Platinum and MasterCard Platinum; million will receive VND500,000 Fcardholders will be offered and debit cards - BIDV Ready, BIDV MU (USD22.5); and customers cashback of up to 10 percent on debit, BIDV Vietravel debit and BIDV holding premiums between purchases of VND500,000 or more Premier. VND2 million and VND5 million made at Vinmart. will be eligible for VND300,000 BIDV credit cardholders will be entitled (USD13.5). The programme is divided into two to cashback of 10 percent and debit periods - from October 17 until cardholders will receive cashback of These cash gifts will apply to the November 29 and from December 18 5 percent when purchasing via BIDV’s first customers satisfying the to January 3, 2016. POS at Vinmart for all bill payments conditions during the promotion from VND500,000 (USD22.5). Each period. Contact the nearest The programme applies to Visa credit customer is entitled to a maximum branch of BIDV or call 19009247 cards - Flexi, Precious, Manchester cashback of VND1,000,000 (USD45) per for more information. United and Visa Platinum; Mastercard promotion period.

39 october 2015 lifestyle

TUE MINH

A city steeped in history

Main gate of Hue citadel Truong Tien bridge over the Perfume River

Situated in central Vietnam on of temples and pagodas built in the The UNESCO World Heritage Site of the banks of the Song Huong early twentieth century. Hue can be seen Hue Citadel was a royal complex that - ‘Perfume’ River, just a few as a living museum. Vestiges in Hue’s housed the Nguyen lords of Southern kilometers inland from the ancient capital have been classified by Vietnam. Building began on the Citadel East Sea, 700 kilometers south the government as precious property and in 1805 under Emperor Gia Long and in 1993 Hue was recognised as a World took 27 years to complete, the Royal of the national capital of Hanoi Cultural Heritage Site by UNESCO. Citadel housed the Imperial City, and 1100 kilometers north of where sacred ceremonies took place. Ho Chi Minh City, the city of Hue owes its charm partly to its The emperor's family lived in the Hue is steeped in history. location on the Perfume River – Forbidden Citadel, access to which picturesque on a clear day, atmospheric remained limited to outsiders. ue’s cultural heritage is unique in gloomier weather. Restoration work in Vietnam, with many original to recover Hue’s royal splendour is Hue's Citadel and Imperial City are Hhistorical vestiges of the ancient ongoing, but today the city is very its main attractions, but a stay here capital city remaining. Hue is also an much a blend of new and old as is not complete without visiting the important center of Buddhism. A great sleek modern hotels tower over the outlying temples and imperial tombs. many pagodas constructed more than crumbling century-old Citadel walls. Visitors can cycle to the Citadel itself, 300 years ago still stand in Hue and its then along the riverside to Thien Mu surrounding villages, as well as hundreds Imperial Citadel Pagoda, back to town for lunch, and

40 Bidv Review lifestyle

Truong Tien bridge over the Perfume River

then out to the tombs. kilometers from Hue. Built in the mid- tip of the country. The basic climate of 19th century, the tomb complex houses the place is harsh and differs between For history lovers palaces, temples, pavilions and statues. areas of the city. The city has two main seasons - dry and rainy. The former Originating in the Truong Son The Thien Mu Pagoda is a popular stop is fairly hot, lasting from March to mountains, the Perfume River flows on riverboat trips along the Perfume August, while the latter begins from languidly through tropical jungles River's north bank and is also easily August, and is cool and wet. The most dotted with ancient pagodas and the reached by bicycle or motorbike. The special time is the short spring lasting tombs of several emperors. About 16 road leading to the imperial tombs from January until February, when the kilometers from Hue up the Perfume south of town affords visitors a atmosphere is cool and fresh and newly River, the tomb of the first Nguyen glimpse of some working temples, appearing tree leaves breathe fresh life lord Gia Long, who united the northern busy with monks, students rushing into the air. and southern parts of the country for between classes, and many workshops a time, stands guard on a hill next to that visitors can observe. Hue is also known for its festivals, the river. The compound’s grassy areas with the first one introduced in 2000 are dotted with stele, stone statues, The climate in Hue differs in and now held every other year. Hue temples and tombs. The tomb of Minh different regions. The weather in the remains a tranquil, fairly conservative Mang, another popular place to visit northern fronts does not match the city and is an ideal tourist destination on the Perfume River, is about nine characteristics of that of the southern which history lovers should not miss.

41 october 2015 lifestyle

Quynh Chi

Romance and nature inLying only every fifty kilometers stepa Vi National Park is centered from Hanoi, Ba Vi National around Ba Vi mountain. Although Park makes a perfect day Bnot far from Hanoi, visitors will or weekend trip from the be struck by how green and quiet it is and how fresh and cool the air is. capital. With its fresh clean Considered as the lung of Hanoi, the air, peaceful atmosphere and park is home to a variety of precious diverse ecosystems, Ba Vi is and rare plants and animals. Many beautiful all year round, and of which can be seen when hiking particularly so during the through the park’s jungle and tropical winter months. rainforest. There is also a bird garden, and an orchid garden where a plethora of colourful orchids can be enjoyed. Dilapidated Ba Vi church

The triple-peaked Ba Vi mountain was once a French hill station. The three mountain summits are Dinh Vua, the highest at 1,296m, Tan Vien standing at 1,226m and Ngoc Hoa the smallest at 1,131m. Fog enshrouds the top of the mountain most days. Apart from Da River on the western side of the national park, Ba Vi has no large, permanent water bodies. Streams in the national park are small, steep sided and fast flowing. However, many of them dry up during the dry season.

Those who climb to Uncle Ho’s temple on the highest peak of Ba Vi range mountain are rewarded with panoramic views of the stunning Red River Valley below. The dilapidated Ba Vi church, also standing near the peak, is a favorite destination for many young people. The pristine and ancient Ba Vi National Park beauty of the church brings to each

42 Bidv Review lifestyle

Dilapidated Ba Vi church

visitor a sense of romance and history. Abandoned for years, the roof of the church has gone, leaving the remainder of the church open to the forest and the elements. A cross still hangs on the wall, bathed in the afternoon sunlight that streams through the window. The green moss, the grey mould, and the silver mist create a magical space, and evoke a sense of romance and days gone by to visitors.

Gorgeous flowers create a blaze of colour lining the road to Ba Vi mountain, including the simple yet Perennial Sunflower beautiful perennial sunflower. Perennial sunflowers start to bloom from the beginning of November and continue until mid-December each year. The cool pine forest makes a great destination for camping and photography.

43 october 2015 CSR

Nguyen Tran

Educational supplies for mountainous children

On a chilly autumn day, BIDV youth union members headed to Ha Giang, bringing warmth and love to students in the most Northwestern area of Vietnam.

A remote province

Ha Giang Province, the border area with China, is heralded as one of Vietnam’s top attractive tourist destinations. During the final months of the year, the majestic stone plateau blooms brilliantly with buckwheat flowers, covering the earth in a carpet of pink. Ha Giang boasts the majestic beauty of the mountains, scattered with terraced rice fields winding like yellow ribbons. However, behind her downtown Ha Giang at sunset. From finally arrived at Thai Phin Tung, an beauty, the frontier land still remains here, it took more than 150 kilometers ethnic semi-boarding school located on a difficult place to live, particularly for of winding pass roads to reach Thai Phin the side of a mountain. We were met its local students. Tung commune. The seemingly endless by the eager smiling faces of students mountain roads challenged many of and teachers. The first destination on our journey our group members, with sudden was Thai Phin Tung, a poor commune bends appearing right before our eyes. Gifts for all students in Dong Van district, Ha Giang We caught glimpses of the undulating province. The commune is home to mountain ranges hidden in the thin mist. Most of the students at Thai Phin Tung 1,100 households with 6,000 people, Our driver told jokes to pass the time semi-boarding school are H’Mong ethnic mainly H’Mong ethnic people. and shorten the long journey. children who face daily difficulties in their lives. Each day they must Leaving Hanoi at 9 a.m and travelling After travelling along these steep trek along dozens of kilometers of over 300 kilometers, we arrived in mountain cliffs for some time, we mountain roads to get to school, to ‘get

44 Bidv Review CSR

BIDV representative gives gifts to Thai Phin Tung school leadership

the knowledge’, as it is known locally. Mr. Hung also added that over thirty northwest area into the hearts of the Although we visited and gave gifts on percent of his students at secondary BIDV youth. It was hoped that by a Saturday - usually a non-school day level dropped out due to financial coinciding the visit with the start of - we were inundated with teachers and difficulties and a need to earn money the new school year these small gifts students who had been waiting for us to support their families. School would help the mountainous children since the early morning. Every Friday leaders and members of the local to overcome some of the difficulties the students walk two to three hours authorities regularly visit every village and disadvantages of life as well as back to their homes situated on the to encourage students back to school motivating them for the school year other side of the high mountains. When but the dropout rate remains high. ahead. travelling along the mountain road, we sometimes saw groups of students Full of passion and a desire to help the Returning to Hanoi along the high cliff traversing the pass, mere dots against students, BIDV youth union members road, the bright innocent faces of the the overwhelming cliffs. and subsidiary company employees ethnic students still linger fresh in our made donations and gave gifts to minds. Mr. Dang Dinh Hung, Vice President ethnic students at Thai Phin Tung. The of the school said, “The school has 45 gifts consisted of useful and necessary classes with a total of 903 students at school supplies such as notebooks, In early October BIDV organised an elementary and secondary level. These backpacks, pens and chalk, with a inauguration ceremony in Ha Giang are spread over thirteen campuses, total value of over VND100 million. Province for the handover of classes with some more than ten kilometers The youth members also visited and worth VND1 billion to Lien Son away from the main school. The presented gifts to the children at Thai elementary ethnic boarding school in accommodation here is far from ideal, Phin Tung kindergarten, more than 2 Lien Son commune, Meo Vac district. with as many as 18 students sharing kilometers away from the school. The bank also donated VND1 billion for a 24m2 bedroom. The school does the construction of classrooms at Ngoc not have its own dining room so the This charitable trip provided students Minh Kindergarten in Vi Xuyen district, students have to eat outside in the with new books and warm blankets, Ha Giang province. roofless playground. as well as bringing the mountainous

45 october 2015 CSR

QUYNH DO

BIDV continues to join hands to bring a healthier life to disadvantaged children New hope for children with heart conditions

On September 27 this Mr. Vu Tan, BIDV Trade Union, said, BIDV has set aside tens of billion of year BIDV announced its “By advocating commitment to social dong to achieve this. Additionally, commitment to donate VND2 security and charitable programmes in the bank has provided funding for billion (USD92,000) to the the banking sector, BIDV will continue the construction and upgrade of new Operation Healthy Heart to join hands to bring a healthier life to medical clinics and the provision of disadvantaged children. We hope that medical equipment to medical clinics fund to provide funding by providing direct funding for surgery at central and local level. for children requiring heart there will be more children with surgery. healthy hearts and brighter futures.” In Vietnam, tens of thousands of children suffer from congenital heart IDV is one of the first businesses BIDV has set itself a goal to fund defects, posing a serious financial to join the programme since its social security with priority given to burden on their families. The cost of Blaunch in 2009 and has already healthcare and disadvantaged children. heart surgery and follow up treatment donated VND1 billion (USD46,000) to is beyond the reach of many families. fund heart surgery for more than 50 disadvantaged children suffering from The Operation Healthy Heart congenital heart defects. BIDV also programme has been operating provided VND1 billion (USD46,000) for seven years, with the active of funding for other heart surgery participation of organisations, programmes for disadvantaged children individuals and enterprises who have in Ha Tinh Province, VND300 million donated tens of billions of Vietnamese (USD14,000) in Nghe An Province as dong. The programme has saved the well as financially supporting the lives of more than 2,700 disadvantaged National Fund For Vietnamese Children children with congenital heart diseases, and Understanding the Heart Fund, enabling them to live a normal life full amongst others. of study and play.

46 Bidv Review BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC

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