BIDV Vietnam - Milestones

(Baonghean)The Vietnam Investment and Development Bank (BIDV) is one of the largest commercial banks in Vietnam. Not only does it possess strong financial resources and a high reputation among customers, but BIDV is also a prime example of serving the country's investment and development, faithfully partnering with Nghe An province in financing and providing credit for investment projects.

BIDV building.

In terms of potential, BIDV currently boasts impressive total assets of 550 trillion VND (equivalent to 27.5 billion USD), continuing to be one of the leading commercial banks in terms of total assets nationwide. As of December 31, 2013, mobilized capital reached 472 trillion VND, outstanding loans to the economy amounted to 391 trillion VND, an increase of 16.7% compared to 2012, and pre-tax profit exceeded 5,000 billion VND. As a leading financial institution, BIDV has proactively and effectively implemented the policies of the Government and the State Bank of Vietnam, flexibly responding to market developments, creatively utilizing its combined resources, prioritizing the development of internal strengths to successfully fulfill its assigned tasks, contributing to overcoming difficulties in production and business, supporting the market, effectively implementing key credit programs according to Government Resolution 02/NQ-CP, promoting investment... contributing to warming up the production and business market and creating a vibrant atmosphere for domestic investment activities.

BIDV has been proactive, innovative, and a leader in applying various forms of capital mobilization in VND and foreign currencies. BIDV also mobilizes capital from overseas sources such as loans under trade agreements, export-import financing, co-financing, and guarantees…

Throughout its tumultuous history, BIDV has remained steadfastly alongside the nation, like a vanguard soldier on the front lines of credit and investment, both during wartime and during the period of national reconstruction. Particularly in 2013, BIDV made a significant mark with the following achievements:

Leading the way in implementing monetary policy, BIDV proactively adjusted interest rates as directed by the State Bank of Vietnam. BIDV reduced lending interest rates four times and applied preferential lending rates to five priority sectors of the Government. Credit growth was reasonable and effective, focusing capital on the five priority sectors from the very beginning; linking credit growth with addressing difficulties in production and business, supporting growth and resolving bad debts of enterprises; strengthening credit quality control, setting aside risk provisions, and ensuring operational safety.

BIDV focused on financing key economic projects. In 2013, BIDV signed a cooperation agreement with the Ministry of Transport to implement the National Highway 1 Expansion Program from Hanoi to Can Tho with a credit package worth VND 30,000 billion; and an agreement to provide loans for social housing construction under Resolution 02 with a total credit package value of up to VND 10,000 billion. It also financed many other key economic programs such as: investment in urban technical infrastructure construction in Da Nang, implementation of short-term credit packages with preferential interest rates, and the program for temporary rice reserves for the 2013 winter-spring and summer-autumn seasons, etc. It proactively proposed solutions to alleviate credit constraints for businesses to overcome difficulties.

In the North Central region, in 2013, BIDV provided funding for major projects such as: the project to upgrade and expand National Highway 1A, section from the southern end of Ben Thuy Bridge to the bypass around Ha Tinh City, with a loan of 1,700 billion VND (the project was completed and put into use in January 2014); and the project to expand National Highway 1A, section from Nghi Son (Thanh Hoa) to Cau Giat (Nghe An), under the BOT model, with a funding of 2,738 billion VND (currently being strongly implemented, with 50% already disbursed).

BIDV has perfected its organizational model and customer-oriented network. Currently, BIDV has transferred and upgraded an additional 10 branches and 66 transaction offices, bringing the total number of BIDV network points to 127 branches, 503 transaction offices, and 94 savings funds. This contributes to expanding the distribution channel and enhancing market share in major economic centers such as Hanoi and Ho Chi Minh City…

BIDV has also boosted its retail banking operations, including retail banking services, deposit mobilization, and personal lending, rising to second place in the market in terms of sales volume. The successful implementation of a retail gold bullion network has contributed to expanding distribution channels and participating in market stabilization, diversifying retail products. Another highlight is BIDV's leading role in fulfilling social responsibility and community development. In 2013, BIDV provided nearly 500 billion VND in support, focusing on healthcare, education, eliminating temporary housing, and disaster relief.

Over the past period, BIDV has continued to affirm its pioneering role and its effectiveness as a tool in implementing the State's monetary policy and major economic policies. It can be seen that in 2013, BIDV proactively managed lending interest rates. BIDV's credit capital was directed towards priority sectors, lending for agricultural and rural development (up 32.6%), lending to small and medium-sized enterprises (SMEs) (up 24.8%), export financing (up 21%), and lending to high-tech enterprises (up 25.5%). Simultaneously, it effectively promoted credit growth, continued to support the market, and helped resolve difficulties in production and business for approximately 800 enterprises.

In Nghe An province, there are currently three BIDV branches: BIDV Nghe An (headquarters in Vinh City), BIDV Phu Quy (headquarters in Thai Hoa town, Nghia Dan district), and BIDV Phu Dien (headquarters in Dien Chau town), with a network of 20 transaction offices spread throughout the province. These branches have attracted thousands of billions of dong in idle funds from the population for credit investment in large and small projects nationwide. Among them, BIDV Nghe An is considered a key branch of the BIDV system for the 2013-2015 period. In 2013, both the Nghe An and Phu Quy branches were rated as excellent by the head office.

Over the years, BIDV Nghe An has achieved tremendous success, a legacy of many generations and a convergence of many objective and subjective factors, including the significant contributions of the workforce throughout the branch system. With all their efforts, dynamism, creativity, diligence, dedication, loyalty, and commitment, BIDV Nghe An is steadily progressing on the path of innovation and integration.

Lanzhou