Case studycommercial banktopic the joint stock commercial bank for investment and development ofvietnam (bidv)

Established in 1957, BIDV with the full name of the Joint Stock Commercial Bank for Investment and Development of Vietnam is currently in the top 4 largest banks in our country.. In addi

OVERVIEW

General information

The Bank for Construction of Vietnam (commonly known as BIDV) was established on April 26, 1957, and later went by the names Bank for Investment and Construction of Vietnam, Bank for Investment and Development of Vietnam, and Joint Stock Commercial Bank for Investment and Development of Vietnam (since 2012) The head office of BIDV is Tower, 194 Tran Quang Khai street, Hoan Kiem district, Hanoi, Vietnam The chairman of the board of directors is Mr Phan Duc Tu and chief executive officer is Mr Le Ngoc Lam. 1.1.2 Key milestones

The Bank for Construction of Vietnam was established during the country's active economic recovery phase, and it significantly impacted the management and distribution of funding for construction The Bank for Construction of Vietnam, now known as the Bank for Investment and Construction of Vietnam, was moved from the Ministry of Finance to the State Bank of Vietnam on June 24, 1981 On the basis of the Bank for Investment and Construction of Vietnam's renaming, the Chairman of the Council of Ministers issued Decision 401/CT in 1990 to form the Bank for Investment and Development of Vietnam In

2012 to present, with a clear focus on global integration, BIDV was equitized in accordance with government guidance, ensuring that the interests of the State, businesses, investors, and employees were all balanced.

1.1.3 Mission, Vision, and Core values

Delivering the best interests and conveniences to consumers, shareholders, employees, and society is BIDV's mission Its vision is customer orientation, innovation, professionalism and trustworthiness, and social responsibility Its core value is to become a major financial institution in Southeast Asia, have the best digital platform in Vietnam, and rank among the top 100 banks in Asia.

BIDV has business lines such as credit extension including lending, discounting,guarantee, credit card issuance, Capital mobilization including savings, bond, debenture It has trade finance services and account services, payment services and payment services.

Besides, the business lines of BIDV are bank card services and other services such as under the certificate of business registration,

As of 31 December 2021, BIDV's network had grown to include all 63 cities and provinces in the country There were a total of 895 transaction points, 3 subsidiary units (theBIDV Training and Research Institute, the Information Technology Center, and the SouthernCash and Vaults Center), 2 representative offices in Vietnam, and 4 overseas representative offices.

Key prominent products

The portfolio of products and services offered by Trade Finance is diverse and fully satisfies the needs of its clients It includes both traditional and fundamental products like LC, Collection, and Discount as well as more contemporary and specialized ones like UPAS, Domestic LC Financing, Export Financing, and Back-to-Back LC The e-banking platform BIDV iBank enables corporate clients to send transaction records, receive them, and track the bank's processing progress, making BIDV the market leader in the application of digital technology in trade finance.

In order to become the bank in Vietnam with the greatest digital platform, BIDV has prioritized the update and addition of several elite goods and features on the e-banking system in order to provide corporate customers with the most complete digital banking ecosystem.

In response to the strong effects of the Covid-19 outbreak on the world economy and large businesses' increased attention to preserving and safeguarding the sustainability of the supply chain, BIDV has swiftly developed a Supplier finance product as of September 2021. Products aid buyers (Center Enterprises, or CEs), who help CEs maintain and sustainably expand the supplier chain, actively manage cash flow, diversify purchasing strategies, and boost competitive advantages in trades.

BIDV SmartBanking is being upgraded to the new generation (Omnichannel) by combining its two channels, BIDV Mobile and BIDV Online, to give consumers an integrated experience with a single username and password across numerous channels and multimedia.Nearly 90% of active SmartBanking users have a high conversion rate.

Making swift decisions, setting the pace for the industry, implementing credit programs and special services to support healthcare providers fighting the epidemic on the front lines in line with the government's priorities, exhibiting the spirit of working alongside the medical industry to jointly overcome the pandemic.

Model of governance and management structure

Banking sector: Head office, 117 branches (including 1 transaction office), 437 transaction offices, 113 savings funds, 1,295 ATMs, and more than 4,000 POS machines; BIDV's staff training school; Information Technology Center; Representative Offices; and Representative office in City Ho Chi Minh City, a representation office for Cambodia, a representation office for Myanmar, a representation office for Laos, and a representation office for the Czech Republic.

Five companies that belong to the umbrella of BIDV are subsidiaries: BIDV Securities Joint Stock Company (BSC), BIDV Insurance Corporation (BIC), BIDV Finance Leasing Company Limited (BLC), BIDV BIDV Asset Management and Exploitation Limited (BAMC), and BIDV International Company Limited in Hong Kong (BIDVI).

There still are six joint ventures that end up making up the collaborative venture group: VID Public Bank (VPB), Vietnam-Russia Joint Venture Bank (VRB), BIDV- VietnamPartners Investment Management Joint Venture Company (BVIM), Bank Laos-Vietnam Joint

Venture Company (LVB), BIDV Tower Joint Venture Company, and Laos-Vietnam Insurance Joint Venture Company (LVI).

Affiliates include Vietnam Aircraft Leasing Joint Stock Company and the BIDV Expressway Development Joint Stock Company (BEDC).

General Meeting of Shareholders: The highest decision-making body of BIDV is the General Meeting of Shareholders, which consists of all Shareholders with voting rights and operates through the Annual General Meeting of Shareholders extraordinary shareholders and the soliciting of written complaints.

Supervisory Board: The Supervisory Board is identified by the Shareholders at the Annual General Meeting to monitor and evaluate all corporate governance and management functions impartially, unbiasedly, and independently Before the General Meeting of Shareholders, BIDV's operations, financial situation, and acceptance of responsibility for the accomplishment of specified duties The Supervisory Board of BIDV is composed of the following three individuals:

Board of Directors: The Board of Directors is the organization in charge of making decisions and carrying out BIDV's rights and duties, with the exception of those that fall under the purview of the General Meeting of Shareholders The Board of Directors for BIDV is made up of 11 people.

Board of Directors: The General Director and Deputy General Director are part of the Executive of Directors and were elected by the Board of Directors of BIDV.General Director by the Council Before the Law on the supervision of BIDV's daily operations and on the exercise of delegated rights and obligations, the administration appoints one of the members of the Board of Directors The General Director is not permitted to serve as the Board of Directors' chairman at the same time.

The seven functional blocks of BIDV's head office are divided into the following:

Wholesale Banking Division: accountable for preserving and expanding the bank's connection with institutional clients This section is specifically in charge of offering goods and services to clients who are corporations, credit institutions, insurance companies, securities firms, fund management companies, etc.; it is also in charge of overseeing the profitability of these products.

Retail and network banking: In charge of BIDV's distribution channel network management as well as marketing, creating, and selling standardized products to individuals and households.

Cash and Capital Business Division: Responsible for carrying out capital and currency business transactions to meet the Asset Management Council's (ALCO) management requirements for the Bank Book Also responsible for marketing and direct trading capital and currency products with customers and business units within the bank with the goal of generating revenue and satisfying customer needs.

Risk Management Division: Responsible for controlling credit activities and other risks that the bank may face Checks are made by this division on possible business ventures that other business divisions have suggested.

Operations Division: Direct payments and receipts are within its purview, including SWIFT wire transfers, international money transfers, and domestic payments They are also in charge of loan management, customer support, and business operations.

Finance and Accounting Division: Financial and treasury management, as well as financial analysis and monitoring, are all responsibilities of the financial and accounting information of the bank and its subsidiaries, communication of management information to the head office accounting department, and general accounting.

Support block: provide assistance for the bank's general and overall business operations.

Key financial ratios

In the context of unfavorable developments of the COVID-19 epidemic, BIDV continued to affirm its leading position with the largest total asset scale among joint stock commercial banks in Vietnam In 2021, BIDV's total assets reached 1,761,696 billion, up 16.2% compared to 2020 In 2020, BIDV's total assets reached 1,516,686 billion, up 1.8% compared to 2019 In 2019, total assets reached VND 1,489,957 billion, an increase of 13.5% compared to 2018, continuing to be a joint stock commercial bank with the largest asset scale in Vietnam In 2018, the asset structure shifted towards improving good quality assets, ensuring liquidity BIDV continues to be the joint stock commercial bank with the largest total assets in the system with VND 1,313,038 billion

It can be seen that BIDV's total assets has grown strongly over the years and has always maintained its leading position with the largest total asset scale among joint-stock commercial banks in Vietnam Except for 2020, the low growth rate compared to the previous

3 years was mainly due to BIDV's restructuring of the asset portfolio to improve business performance and the complicated epidemic situation in 2020.

BIDV's equity as of December 31, 2021 reached 86,329 billion, an increase of 8.4% compared to 2020 As of December 31, 2020, BIDV's equity reached 79,647 billion, up 2.6% compared to 2019 After the success of the strategic sale to KEB Hana Bank, BIDV's equity reached VND 77,653 billion, up 42.5% compared to 2018 Charter capital reached VND 40,220 billion In 2018, BIDV's equity reached VND 54,551 billion, an increase of 12% compared to 2017 Charter capital reached VND 34,187 billion.

In 2021, customer deposits: reached VND 1,380,398 billion, an increase of 12.5% compared to 2020, accounting for more than 11% of the market share of customer deposits in the whole industry In the context of the economic crisis, the fact that the capital source has kept good growth shows the trust of customers in BIDV as well as the strength of the brand and reputation of BIDV In 2020, the attachment and trust of more than 300,000 corporate customers and more than 11.6 million individual customers will be with BIDV in the context of fierce competition in the market Customer deposits: reached VND 1,226,674 billion, an increase of 10.1% compared to 2019, accounting for 11.0% of the market share of customer deposits in the whole industry In 2019, customer deposits reached VND 1,114,163 billion, up 12.6% compared to 2018, accounting for a 12.8% market share of customer deposits in the whole industry In 2018, mobilized capital grew well, meeting the needs of capital use, and balancing capital safely - effectively: Total customer deposits reached VND 989,671 billion, up 15% compared to the beginning of the year, accounting for 12.3 % market share of the whole industry Customer deposits reached VND 989,671 billion, an increase of 15% compared to 2017 The results of the past 5 years have positively demonstrated BIDV's position in the market and the loyalty and trust of customers in BIDV in the context that banks compete fiercely to attract savings deposit customers.

In 2021, the total outstanding loans and investments will reach VND 1,677.310 billion Outstanding loans to economic organizations and people reached 1,368,029 billion, up 11.2%, accounting for more than 13% of the credit market share of the whole industry; in which customer loans reached 1,354,633 billion, up 11.6% compared to 2020 In 2020, total outstanding loans and investments reached 1,438,520 billion Credit outstanding balance reached 1,230,569 billion, up 8.5%, accounting for 13.4% of the credit market share of the whole industry; in which customer loans reached 1,214,296 billion, up 8.7% compared to

2019 In 2019, customer deposits reached 1,114,163 billion VND, up 12.6% compared to

2018, accounting for 12 8% market share of customer deposits in the whole industry The positive results show BIDV's position in the market and the attachment and trust of 300,000 corporate customers and nearly 10.4 million individual customers to BIDV in the context of fierce competition among banks to attract savings deposits from customers In 2018, credit grew in accordance with the orientation of the State Bank (SBV), supporting the development of the economy By the end of the year, outstanding loans to customers reached VND 988,739 billion, up 14%, accounting for 13% industry market share The structure of outstanding loans changed positively in the direction of increasing the proportion of retail, SME, and short-term outstanding loans.

BIDV's total income in 2021 reached 62,494 billion, up 24.9% compared to 2020, the highest among joint-stock commercial banks in Vietnam; in which recorded a good increase from digital banking revenue, service revenue, BIDV's total income in 2020 reached VND 50,037 billion, up 4% compared to 2019, the highest among other companies Joint Stock Commercial Banks in Vietnam, which recorded strong revenue from service activities (up 23.4%) and foreign exchange trading (15.9%) In 2019 operating income grew by 8.7% compared to 2018 In 2018 operating income grew by 14% compared to 2017.

In 2021, the profitability targets ROA and ROE reached 0.66% and 13.06% respectively, a positive improvement compared to 2020 (0.48% and 9.18%) NIM also reached 2,9%, an increase sharply compared to 2020 by 18.37% Pre-tax profit in 2021 reached 13,548 billion, an increase of 50.1% compared to 2020, of which 7,900 billion VND was deducted to support people and businesses Pre-tax profit in 2020 reached 9,026 billion, exceeding the financial plan assigned by the State Bank, but decreased by 15.9% compared to

2019 The reason is that BIDV has actively reduced income by 6,400 billion to support customers suffering from financial difficulties affected by the Covid-19 epidemic according to the policy of the State Bank through debt structure, interest and fee exemption and reduction for targeted customers In 2019, the bank's consolidated pre-tax profit reached VND 10,732 billion, up 14.3% compared to 2018, exceeding the plan assigned by the General Meeting of Shareholders (VND 10,300 billion) Consolidated ROA reached 0.61%, ROE reached 12.94%, completing the financial plan assigned by the State Bank BIDV's business activities in 2018 grew sustainably and safely, in line with the restructuring objective, ensuring the interests of shareholders and employees Total net income reached VND 44,483 billion, an increase of 14% compared to 2017 Consolidated profit before tax reached VND 9,391 billion, ROA reached 0.6%, ROE reached 14.6%, exceeding the plan assigned by the General Meeting of Shareholders

The chart clearly shows that the loan-to-deposit ratio (LDR) in 2018 -

2020 exceeded the maximum level of 85%, but then there was an adjustment from the bank, so it was still within ≤ 85%, complying with regulations of the State Bank in Circular No 22/2019/TT-NHNN dated

BIDV's credit quality continues to be strictly controlled The bad debt ratio according to Circular 11/2021/TT-NHNN as of December 31, 2021, was controlled at 0.82%, down 0.72% compared to 2020 (the bad debt balance decreased by more than 8,000 billion compared to 2020), completing the plan assigned by the General Meeting of Shareholders and ensuring the orientation target of the State Bank (1.6%) In 2020, the bad debt ratio will be controlled at 1.54%, completing the 2020 plan assigned by the General Meeting of Shareholders; the group 2 debt ratio is 1.58%, improving compared to the end of 2019 In

2019, the bad debt ratio for economic organizations and individuals is 1.75%, ensuring the target approved by the General Meeting of Shareholders (2%) Credit growth goes hand in hand with credit quality control, ensuring good risk control The ratio of bad debt to group 2 debt was maintained at a relatively low level and within the limits prescribed by the State Bank In 2018, after drastically handling bad debts, the bad debt ratio was at 1.9%, and the debt ratio of group 2 was 2.3%, ensuring the control target.

Up to now, 3 of the 4 largest state-owned banks have announced their financial statements for 2021, including Vietcombank, VietinBank, and BIDV; and Agribank just announced preliminary business results.

Accordingly, in the past year, BIDV has surpassed Agribank to become the bank with the largest total assets in the industry, with a scale of more than 1.76 million billion VND (up 16%) At the same time, BIDV also became the bank with the highest credit balance, accounting for 13% of the credit market share of the whole economy In terms of asset quality, Vietcombank is the bank with the lowest bad debt balance as well as the lowest bad debt ratio with VND 6,121 billion and 0.64%, respectively At the same time, the bank also made strong provisions for the period, raising the bad debt coverage ratio to a record high of 424% In terms of profit, Vietcombank continues to take the top position with a pre-tax profit in 2021 of VND 27,376 billion (approximately USD 1.2 billion), a difference from VietinBank's VND 17,589 billion later With the above profit figure, Vietcombank's return on average equity (ROAE) is also much higher than other "big guys" at 21%.

Although the "big four" are still in the top group in terms of profits, they are also banks that "hold" a lot of bad debt Notably, Vietinbank has surpassed BIDV to become the bank with the largest scale of bad debt up to VND 14,300 billion, 1.5 times higher than at the beginning of the year Accordingly, Vietinbank's bad debt ratio as of December 31, 2021 increased from 0.9% to 1.3% The sharp increase in bad debt at this bank mainly came from the sharp increase of group 3 debt by nearly 275%, from 1,892 billion to 7,096 billion.

The fourth quarter financial report shows that BIDV's on-balance sheet bad debt at the end of 2021 has decreased by more than VND 8,125 billion compared to the beginning of the year, equivalent to a decrease of 38% to VND 13,245 billion, but BIDV is still a bank with bad debt the third highest in the system as of December 31, 2021 The ratio of bad debt to outstanding loans of BIDV also decreased from 1.8% to only 1% BIDV's bad debt dropped sharply mainly because group 5 debt (debts likely to lose capital) of this bank dropped sharply in the past 1 year Specifically, debt with the possibility of losing capital decreased by nearly9,546 billion VND, to 6,979 billion VND; doubtful debt increased by 989 billion to 3,451 billion; subprime debt increased by 18%, at 2,814 billion Particularly in the fourth quarter,BIDV's debt that may lose capital decreased by more than 6,900 billion, doubtful debt increased by 303 billion and substandard debt decreased by 1,590 billion At Vietcombank,bad debt increased from VND 5,230 billion to VND 6,121 billion, of which group 4 debt increased the most, up nearly 333% Group 3 bad debt and group 5 bad debt increased slightly, 11.2% and 1.7% respectively.

Strategy

From the start, BIDV and the banking sector have worked together to support businesses and individuals with banking operations and through other channels in an effort to aid the community affected by the COVID-19 outbreak direct social security program to combat the Covid-19 epidemic's effects, ensure life stability, and support economic and industrial activity In 2020, BIDV intends to invest VND3,500-4,500 billion to assist clients in overcoming COVID-19 In order to help people fight the epidemic at a time when the Covid epidemic was still spreading and the annual death toll was sharply rising, BIDV focused on social security efforts Additionally, BIDV keeps up its environmental protection initiatives

One of the first banks to give preferential loan packages to help clients with the following restrictions: scale up to 93,000 billion VND, BIDV is implementing the policy of the Government and the State Bank of Vietnam in supporting customers impacted by the COVID-19 outbreak Over 5,400 consumers have received over 70,000 billion VND worth of this assistance credit package so far, with the relevant interest rate being 2.0%/year lower than it was before the outbreak of the disease.

On July 1, 2020, BIDV continued to lower lending interest rates by 0.5 percent/year in comparison to the present interest rate in an effort to increase assistance for firms seeking affordable loans in a challenging environment In comparison to the period before the COVID-19 pandemic, BIDV has decreased lending interest rates for consumers by a factor of three since the beginning of the year, or from 2.5% to 3.0% annually The State Commercial Bank's obligation to carry out the rules and operational policies of the Government and the State Bank is demonstrated by this interest rate adjustment move, which, in the opinion of BIDV, is a practical step to help the community.

In addition to offering credit packages and customer support policies, in the past, employees in the whole BIDV system have contributed about VND 31.17 billion to support funds and programs to prevent COVID-19 19, medical facilities, border security In particular, BIDV also spent 23.03 billion VND to buy 13,300 water tanks and 39 water purifiers in time to support the people of 5 provinces in the Mekong Delta Besides, units in the whole system BIDV's system has also been and will continue to implement many social security programs to join hands with the community to prevent and control epidemics such as: Donating masks and disinfectant solutions; Donating meals to medical staff on the front lines against the pandemic…

In 2021, when the trend of globalization is concerned in prioritizing environmental protection as well as society With the position of a leading bank in the country, BIDV defines its "bi-benefit" mission as: "bringing the best benefits and utilities to customers, shareholders,employees and the community." social community” BIDV is aware that the harmonization of interests among stakeholders: customers, shareholders, employees and the community will ensure the long-term survival of the bank itself, promote growth in a comprehensive way,long-term and sustainable in the context of the constantly changing and competitive business environment to benefit the country's economy and the whole society Not only effective business operations to bring financial efficiency to the bank, BIDV also focuses on bringing value to customers, ensuring fairness in benefits for shareholders, employees - officers, bank staff and related parties BIDV also conducts surveys, measures the satisfaction of customers and employees, listens to shareholders' feedback, considers it an effective feedback channel to improve the relationship between BIDV and related parties… At the same time, BIDV has always been a pioneer in implementing guidelines and policies of the Government and theState Bank of Vietnam in supporting rational economic restructuring oriented, demonstrating responsibility to the community through programs of social security, hunger eradication and poverty alleviation, creation of jobs for the economy, support to overcome natural disasters, floods, improvement of environment and environment Sustainable development activities related to Environmental concerns can be considered in terms of banks including environmental assurance criteria in their credit decision-making processes, promoting green credit growth and managing environmental and social risks association in credit granting activities The environmental protection results of the chain of rural financial projects funded by the World Bank (WB) and BIDV as a wholesale bank - are one of the outstanding examples that need to be replicated and shared internationally appreciated In its activities, BIDV has also promoted propaganda to raise employees' awareness of saving and protecting the environment, and at the same time supporting programs for the environment.

First off, BIDV has outlined its objective to become a bank that offers the finest advantages and services to customers, shareholders, workers, and the community in its business growth strategy, which includes a vision for 2030 social network.

Second, BIDV is open and honest about its obligation to promote sustainable development In its annual report, BIDV consistently mentions sustainable development based on GRI principles, outlining the bank's obligations to the community, the environment, and its staff.

Third, via the credit-granting process, BIDV consistently emphasizes and professionalizes environmental and social risk management When evaluating projects, BIDV carefully considers environmental concerns and demands that clients properly abide by the environmental protection laws In order to ensure that BIDV-sponsored projects have as little negative environmental impact as possible, BIDV routinely assesses and controls social and environmental risks along with the payout process.

Fourth, BIDV is always breaking new ground and working on social security issues.The appropriate people are reached with the correct information at the right time by BIDV's social security initiatives, which are also widely known and well-liked in the neighborhood.Finally, with a human resource scale of over 27,000 individuals, BIDV has consistently established that developing human resources—both in terms of number and quality—is a key job in its business plan and a crucial component of achieving success.benefit the outlined objectives

DEPOSITS

Types of deposits

Introduction A form of demand deposit account designed mainly for payments via banking instruments such as: cash cheque, standing order, encashment

A form of deposit that allows owners to withdraw money only at maturity.

A form of demand deposit account that an organizatio n uses only for a certain purpose, either requested by themselves or State authorities.

Either demand deposit or term deposit owned by an organizatio n for the purpose of securing the obligations of their own to

A fund mobilization instrument that confirms BIDV's obligation to the owners of valuable papers with respect to a certain term, interest paying conditions and other

Products designed according to the specific needs of customers. order, electronic transfer…

BIDV or related parties. provisions.

EUR and other foreign currencies

EUR 100 or other minimum balance as agreed upon by customer and BIDV.

Depending on the purpose of the escrow account.

Interest rate Demand deposit rate click here for details

As agreed upon by customer and BIDV, with respect to the interest rate ceiling contempora rily set by SBV and

Demand deposit rate or term deposit rate

Interest amount is calculated on day-end balance and accrued daily

Payments are made automaticall y on the

At maturity or in accordance with the term.

Immediate payment/ Payment at maturity/ Periodic payment

365 days, a month of 30 days VND

365 days, a month of 30 days VND

A year of 360 days, a month of 30 days VND

Co- ownership feature is available

Co- ownershi p feature is available VND

Co-ownership feature is available VND

Term deposit Current account for securities

Account package investment and Specialized current account

Minimum balance is not required for other currencies

Interest rate Demand interest rate calculated based on day- end balance

Fixed rate for the deposit term (please refer to the Bank's interest rates).

Demand interest rate calculated based on day-end balance

0.2%/year, higher than normal interest rate

Service fee Free account management and account closing For other fees, refer to BIDV's current fee

Paying interest at the end of the period.

Refer to BIDV's current fee schedule

Completely free account management feeFree issuance,annual fee for the first year when schedule issuing ATM domestic debit card

Free 100% fee for the first 3 months for new customers who register for

BIDV QR service, up to 300,000 VND/customer

Online savings account Accumulative deposit account Savings account

Deposit account for foreign direct investments Deposit account for foreign indirect investments

Current account for securities investment Deposit account for outward direct investments

2.1.3 Pros and cons of deposits

Current account Term deposit Specialized deposit

Pros - Perform transactions at any of - Deposit, withdraw or - Fast and

- Ensure liquidity while earning interests continuously

- Register with the most simple, convenient and time-saving procedures

- Overdraft on account balance, enjoy payroll service, make standing order/ encashment order…

- Use the balance to secure loans or guarantee obligations of a third party transfer

- Transfer account ownership at the issuing branch

- Use the balance to secure a loan at BIDV and other credit institutions

- Request the Bank to certify or block account

- Use the balance to secure loans or guarantee obligations of a third party convenient

- Tailored to the purpose of each account.

Cons Low interest rates Reduced interest rates when withdrawing before maturity

Low interest rates (because it’s a type of current account)

2.1.4.1 Describe the changes of deposits through at least 3 years

In order to satisfy the need for capital, money from businesses and people was mobilized to the tune of $1,295,533 billion, an increase of 9.1%, bringing the total amount mobilized by BIDV to $1,402,248 billion The fact that the funding source has continued to expand despite the economic crisis demonstrates both the strength of BIDV's brand and reputation as well as the confidence that its consumers have in the company Customer deposits totaled $1,226,674 billion, an increase of 10.1% over 2019 deposits from clients throughout the sector represented 11.0% of the market.

The overall amount of money raised by businesses and people came to VND1,295,533 billion, up 9.1% from the previous year, more than enough to fulfill the demand for capital usage This brings the total amount of capital raised by BIDV to VND 1,402,248 billion Customer deposits reached VND 1,226,674 billion, an increase of 10.1% from the previous year, and represented 11.0% of the market share of customer deposits throughout the whole sector.

The ratio of demand deposits to average total capital mobilization grew by 0.7% to 14.5% in 2020, while the average size of demand deposits increased by 14.9% in comparison to the average in 2019 contrasted with 2019

The amount of capital that was collectively raised from businesses and individuals totaled VND 1,509,483 billion, up 16.5% from 2020 and growing at a rate that was 1.8 times faster than anticipated This exceeded the plan and increased the amount of capital that was collectively raised by BIDV to VND 1,641,777 billion Client deposits in that year totaled VND1,380,398 billion, an increase of 12.5% from 2020, and they accounted for more than 11% of all customer deposits in the whole industry The system of joint stock commercial banks continues to have the largest scale of capital mobilization, and the cost of capital is falling, increasing business activity competitiveness and successfully balancing capital to sustain the economy In the face of strong market rivalry, the aforementioned results continue to show BIDV's position in the market as well as the consumers' loyalty and faith in the company The system's capital expenses have decreased thanks to an advantageous improvement to the capital mobilization structure:

By term and currency, demand deposits substantially grew in size and share of overall capital mobilization; by December 31, 2021, they would amount VND 267,331 billion, up20.8% from the previous year When compared to 2020, the average size of demand capital mobilization will grow by 32% in 2021, accounting for an average of all capital mobilization.obtained 16.8%, exceeding the goal of 16% and representing an improvement of more than2% from 2020 The funding at the conclusion of the period climbed by the most in the previous five years—35% more in USD than in 2020.

According to statistics from the financial report of the third quarter of 2021, as of September 30, three banks BIDV, Vietcombank and VietinBank are the top banks in terms of customer deposit balances The amount of money here reached nearly 3.5 million billion dong, accounting for 45% of total customer deposits of the group of 28 surveyed banks In which, BIDV is the bank that has mobilized the most deposits in the system with more than 1.3 million billion VND, an increase of 6.8% compared to the end of 2020.

In fact, despite the listing of deposit interest rates at the lowest level in the market for many years, the deposit growth of the Big 4 banks is still very good Even in the 2 years of

Covid, many customers' incomes were affected and cash flows tended to flow into investment channels, the deposit growth of these banks was quite high In 2021, customer deposits at VietinBank increased by 17.3% to more than 1.16 million billion VND The remaining 3 banks also had very strong growth: Agribank (9%), BIDV (12.5%), Vietcombank (10%). Meanwhile, the industry average growth was 9.2%.

State-owned banks have always had the advantage of mobilizing capital, not being too dependent on interest rate increases due to a nationwide network of transaction offices, high brand reputation, and a place to deposit money from many investors corporations, large enterprises In rural and remote areas, Agribank and BIDV have almost no competition from private banks.

2.1.5.1 Describe the changes of deposits through at least 3 years

In general, from 2019 to 2021, the issuance of valuable papers increases year by year.

In 2019, the issued paper had a net increase of VND 22,781 billion, accounting for 4.2% of the total capital In 2020, the capital mobilization structure will continue to shift towards a more sustainable orientation: BIDV has successfully issued more than 23,700 billion bonds to increase capital as planned with a controlled issuance interest rate lower than 0.94%/year.

Therefore, the average interest rate in 2019, is an important contribution to improving financial capacity However, in 2020, the issuance of valuable papers only increased slightly to VND 63,187 billion By 2021, the paper issuance price has increased to VND 123, 681 billion, equivalent to a strong increase of 95.5% compared to the end of 2020

Valuable papers BIDV Vietcombank Vietinbank

BIDV has a large deposit issuance scale (123,681,757) compared to Vietcombank and Vietinbank with 17,387,747 and 64,496,785 respectively Most notably at BIDV, in the separate financial statements in 2020, the issuance of valuable papers increased only slightly to VND 63,187 billion However, in 2021, the issuance of valuable papers has increased toVND 123,681 billion, equivalent to a sharp increase of 52% compared to the end of 2020 In terms of proportion, BIDV is the bank with the highest ratio of issuance of valuable papers to total liabilities with 6% Although issuing valuable papers helps banks improve their capital adequacy ratio (CAR), if a bank issues too many valuable papers, it will affect future profits.

Business results

Expenses Interest expenses on deposits

Interest expenses on issuance of valuable papers

Due to the impact of the Covid-19 epidemic, shows that the amount of customer deposits in the bank is not high, leading to a decrease in customer income and interest payments year by year In 2020 there is a sharp decrease in deposit income compared to 2019 of 33.24% and in 2021, a slight decrease compared to 2020 is 13.4% Interest expenses on deposits in 2020 decreased slightly by 2.67% compared to 2019 but by 2021 there will be a sharp decrease of up to 20.54% Particularly, interest expenses on the spending of valuable papers in 2020 increased sharply to 60.8% compared to 2019 but by 2021 it decreased to10.17%.

LOANS

Types of loans

Support to buy, build, renovate and repair your home with attractive incentives, flexible loan methods

100% of the value of the purchase/sal e/transfer contract/borr owing plan

Competitive interest rates according to preferential credit packages from time to time

1 Flexible principal and interest payment (monthly/quarter ly/semi-annually or annually)

2 Special interest rate reduction when applying for loans via BIDV Home application and/or using other existing products of BIDV

Car loans BIDV's car loan products meet the capital needs

Up to 100% of car purchase value

Competitive interest rates according to preferential

Preferential fees related to programs in each period of customers for buying cars for consumption or business purposes credit packages from time to time

Studying abroad helps you open up a new horizon of knowledge and access to many different cultures.

Make your and your loved ones' dreams come true with our products

BIDV's loan to support study expenses

High loan rate up to 100% of the total cost of studying abroad

Competitive interest rates according to preferential credit packages from time to time

Secure the loan with the property of the borrower or a third party

Realize your plan to improve and enhance your quality of life

Maximum up to 84 months (loan by item) and

Competitive interest rates according to preferential credit packages from time to time

1 There is no need of collateral

2 Flexible lending methods (per item/overdraft) loan)

3 Free consultation on the most effective and economical loan plan

Loan for production and business

Meeting capital needs for production and business activities with many preferential mechanisms

Up to 84 months for installment loans, 12 months for line of credit/overd raft loans

Up to 100% of the total capital needs of the business plan/project

Competitive interest rates according to preferential credit packages from time to time

Maximum loan amount 100% of total loan demand

Competitive interest rates according to preferential credit packages from time to time

2 Simple procedure, fast processing time

Realize your plan to improve and enhance your quality of life

Up to 120 months with loan/12 months with overdraft

Loan level up to 100% of collateral valuation value after multiplying the coefficient according to the Bank's regulations

Competitive interest rates according to preferential credit packages from time to time

Less risk because there are collaterals

(maximum VND 03 billion/custo mer, of which the maximum overdraft limit is VND 01 billion/custo mer) 3.1.2 Business

Loan amount Collateral Object for loan

Ordinary medium and long-term loans

VND, USD, other foreign currencies

Up to 85% of total project investment

Assets formed from loan capital and/or other assets in accordance with BIDV's regulations

Investment costs of fixed assets such as: procurement of machinery, equipment, means of transport, construction of factories, offices, etc

VND, USD, other foreign currencies

According to the agreement, in accordance with customer

Secured/uns ecured by property or third-party guarantee

Expenses related to production and business activities such as costs of purchasing raw materials, goods,services, salaries, needs electricity/water bills, etc

VND, USD, other foreign currencies

Up to 85% of total investment.

Assets formed from loan capital and/or other assets in accordance with BIDV's regulations

All reasonable expenses related to the project

Indirect fixed asset investment loans

VND, USD, other foreign currencies

Up to 90% of the original cost of the investment property

Assets formed from loans, real estate and other assets according to regulations

Fixed assets formed by projects / small and odd assets (including cars)

Loans for investment in special projects

VND, USD, other foreign currencies

Office project for lease, commercial center, urban area, tourist area, hotel

Overdraft loan No VND or

No collateral is required if it meets BIDV's criteria

Cost of working capital for production and business

Term discount or discount for the remaining term of the value of the asset

VND, foreign currency in accordance with the currency stated on the value of the asset and the State's regulations on foreign exchange manageme nt

Up to 100% of par value, suitable for discount method/term , interest rate and interest payment method

Up to the payment term of the GTCG

Credit value (before payment due) issued by BIDV

Other loans According to the regulations of BIDV from time to time 3.1.3 Analysis

3.1.3.1 Describe the changes via 3-5 years

Loans to local economic entities and individuals 1.076.979.856 1.174.770.629 1.318.860.723

Amounts paid on behalf of customers 533,94 726,28 300,44

Loans to foreign entities and individuals 38.055.692 36.691.755 32.763.195

This data demonstrates that loan activities have grown consistently over the years, both overall and for each sub-criteria In particular, loans to local economic entities and individuals increased in 2019 with 1,076 billion to 1,318 billion in 2021 Besides, in just three years, there has been a growth of more than 100 trillion dong in loans of receivables from finance leases Amounts paid on behalf of customers have the highest increase in 2020 because of the impact of the covid pandemic Loans to foreign entities and individuals are decreasing 5 million in the last 3 years because of rising foreign interest rates and guaranteeing the debt safety.

Banks Loans to customers in 2021

(Up 11.6% over the previous year)

(Up 8.4% over the previous year)

(Up 11.4% over the previous year)

The comparative statistics table shows that the Big 3 banks (BIDV, Agribank, and VietinBank) continue to have the biggest total amount of outstanding loans, totaling 3.80 million billion VND, up 11.14%, and representing more than 31.4% of the total amount of existing loans in the economy Despite a good gain, the share of the Big 3 group has reduced by 0.76 percentage points compared to 2020

In which BIDV continued to rule the "kingdom" with loans outstanding totaling about 1.35 trillion dollars, an increase of 12% Although Agribank remains in the top 2, its growth has been a little slower than that of other banks, increasing by only approximately 8%, and its outstanding loan balance has already surpassed $1.31 billion 1.13 trillion dong worth of loans are still outstanding at VietinBank, an 11% increase

Although Covid-19 had a negative impact on the economy's ability to absorb capital,BIDV was more adaptable when picking corporate bonds as a different form so that credit could still be expanded Through this route, BIDV is able to extend loans at higher interest rates, enhancing NIM and fueling a fast rise in the number of outstanding loans.

Business results

From 2019 to 2021, net settlement services revenue gradually rises lowest with 88 million in 2019 In particular, the biggest growth occurs in 2021 with 91 million, an increase of 0.4% over the prior year, in part due to lower costs of more than 8 million.

In a recently released research study, SSI Securities Company said that in order to increase asset quality in 2020, Bank for Investment and Development of Vietnam (BIDV) had sacrificed earnings In particular, as a result of the rise in non-interest income up to 17.2%,BIDV's overall operating income in 2020 climbed by 4% in comparison to 2019 The average employee's pay climbed by only 1.5% in 2020, the smallest growth in the previous five years,since operating expenses also reduced As a consequence, operational profit before provision improved in 2020 by 4.8% over 2019 The bank's pre-tax profit in 2020 was just VND 9.2 trillion, a 14.1% decrease from the previous year, and the return on equity (ROE) fell to its lowest point of the year 9.45% of 15 years This is as a result of provision expenditures ofVND 23.1 trillion, up 15% year over year, of which VND 16.8 trillion was set aside for write- offs of bad debt When the bad debt ratio (including VAMC bonds) declined to 1.76% from2.01% as of December 31, 2019, asset quality dramatically improved Additionally, as ofDecember 31, 2019, the provision ratio for bad loans grew from 75% to 88.4% This securities business claims that BIDV's capital adequacy ratio (CAR) will drop to 8.34% at the

PAYMENT

Domestic payment system

4.1.1.1 Interbank electronic payment system (IBPS) is an online, modern electronic payment system, built according to international standards and is considered the fastest payment gateway in Vietnam with the time to execute a payment order takes no more than 10 seconds Banks use interbank electronic payment systems in the case that both banks are in different systems and they are not in the same province Most banks participate in IBPS, including BIDV.

The IBPS system consists of 03 sub - systems, including:

The high value settlement system (HVSS) processing high value payments from 500 million VND urgent payments on the instant total payment platform.

The low value settlement system (LVSS) performing net settlement per session for clearing low value transactions worth less than 500 million VND that are not time-sensitive Settlement account processing system.

4.1.1.2 The SBV Electronic/paper clearing systems were built before the IBPS systems, implemented mainly to serve the needs of low value transactions in 63 provinces and cities Local credit institutions are members that open clearing accounts at the SBV municipal branches The interbank clearing systems are applied between credit institutions of different systems, located in the same province or city, called the intra-provincial clearing system

This payment system has 2 forms:

The paper clearing system operated in parallel with electronic clearing system for a long time However, with the application of information technology and computers, the paper clearing system has gradually been replaced by electronic clearing systems.

The SBV's electronic clearing system only transfers the payment orders to the receiving banks after completing a clearing settlement session, usually 2-3 sessions/day depending on the location and the volume of documents generated BIDV used this system to perform payment transactions.

4.1.1.3 Payment system operated by commercial banks

The multi - currency payment system operated by Vietcombank (VCB – Money) VCB – Money plays a key role in the entire payment system of VCB, for customers who are financial institutions or economic organizations to conduct domestic interbank foreign currency trading transactions Most domestic credit institutions and many foreign branch banks operating in Vietnam open and maintain foreign currency accounts at VCB, including BIDV.

When a credit institution that is an IBPS member, buys/sells foreign currency, this system will transfer funds from the foreign currency accounts of credit institutions opened at VCB and receive/deposit VND from the credit institution's final account on the IBPS system. The VCB-Money system has the characteristics of a multilateral, multi-currency interbank payment system.

Main services of VCB - Money System include: remittance, cash out; buying/selling foreign currencies; salary and other payment services.

Besides VCB, a number of large commercial banks such as Agribank, Vietinbank and BIDV also built and operated an electronic bilateral interbank payment system to provide services such as the money remittance, receiving and settling on the basis of bilateral clearing of non-time-critical low value payment transactions to each other and to banks that are members of these host banks.

4.1.1.4 The bank card switching clearing and settlement system is provided by the card switching organization to its members, allowing customers to withdraw cash or make payments via ATM/POS at any bank that is a member of the card switching organization This system was established by two domestic card switching companies Banknetvn and Smartlink. They are connected to provide cash withdrawal and acceptance card payment - POS for cardholders from any member banks of the two card alliances mentioned above.

Types of transactions of this system include:

The domestic switching services: connect the ATM/POS system of member banks with domestic switching companies so that domestic cardholders can performonline payment transactions via ATM/POSs In which Banknetvn plays the role of the switching center for interbank card transactions.

The international switching services: Currently, Banknetvn is collaborating with a number of bank card and switching organizations such as China UnionPay, Union Card - UC (Russia), and members of the Asian Payment Network (APN).

The interbank electronic remittance services: are based on the switching and linking ATM system infrastructure of member banks This system helps customers of member banks to transfer money from accounts at one bank to accounts at another bank in real time on members' ATM, Internet banking and Mobile banking channels.

Payment portal services: allow the exchange and processing of electronic transaction data, support the license granting and settling in the internet banking environment Banknetvn is an intermediary connecting banks and online sales agents Clients can pay for commodities via internet banking.

BIDV is also one of the first four banks to successfully implement the InterbankClearing Project with NAPAS (Napas is a national card brand developed by National PaymentCorporation of Vietnam NAPAS is a payment intermediary licensed by the State Bank of

Vietnam to provide financial switching and electronic clearing services in Vietnam) BIDV is also the first bank in Vietnam to successfully implement payment of MIR cards (Russian domestic cards) on BIDV's POS system.

4.1.1.5 Security Clearing and Settlement System

Products of domestic payment system

Support to transfer and receive money from any individual or organization in Vietnam Diversified forms of money transfer and receipt (via BIDV/other commercial banks) Currency of transfer/receipt: VND/foreign currency

Easy to use flexible services at many locations (BIDV transaction counters/ BIDV ATM system / online via BIDV Smartbanking)

VnTopup E-wallet top- up/withdrawa l/linking services

VAT refund service for foreigners

Make recharge for prepaid and postpaid phone accounts

Customer's E- wallet and allows online payment for services with money from

Customer's linked account opened at

For service bills that need to be paid on a monthly basis (electricity, water, tuition fee, cable TV, telecommunication charges, etc.), the customer authorizes the bank to automatically debit the account OR customers can make one-time payment at BIDV transaction counters or on electronic banking channels

Pay for goods and services online at websites connected to BIDV, authenticate with the username and password of BIDV online or Smartbanking services.

Convert foreign currency at BIDV's tax refund counter at BIDV's listed selling rate at the time of conversion.

Tax refunds are paid in cash Tax refund currency is Vietnam Dong.

4.2.1.2 POS based payment acceptance services for Individual Business Households

Online card payment acceptance service

QR BIDV Pay + payment acceptance service

Samsung Pay payment acceptance service

POS - based payment acceptance service

Customer’s Receive payment for Payment by BIDV Accept contactless

Department for card accept make card payments at online payment channels

(such as websites, mobile apps, ) goods and services instantly when the buyer uses the QR code scanning function on the mobile phone application. domestic debit card, supported Napas Card, Visa Card, Mastercard are posted on Samsung Pay App at Samsung devices payment (touch payment) for all VISA & Mastercard international cards, just use a card with a light touch contactless icon or place it in front of a POS machine.

BIDV provides money transfer services within Vietnam for customers quickly and conveniently: instant credit to customers receiving money with accounts at BIDV; 24/7 interbank money transfer via account/card to affiliated banks.

Bulk payment Bill payment Auto salary payment

Payment method: in cash/transfer from corporate account.

Corporate customers pay cash/transfer via

BIDV's transaction office branches or through BIDV's Internet banking and Mobile banking systems.

BIDV automatically deducts money from the customer's account at

BIDV offers salary payment services to help businesses pay their employees' salaries and bonuses.

BIDV provides a domestic money transfer service that allows corporate customers to transfer money without making a separate money transfer order for each specific and separate transaction, helping customers manage their spending sources for the

Beneficiaries with or without an account at

BIDV, crediting the enterprise's account based on the enterprise's request.

Free transactions for business customers.

Service fees are calculated on a per transaction basis and accrued at the end of month right purposes On the basis of prior agreement, BIDV will automatically debit the enterprise's current account to transfer money in the following cases:

(i) periodically at a certain time for a certain amount;

(ii) when BIDV receives payment request documents from suppliers or partners of customers;

(iii) other payment transactions according to specific agreements with customers.

BIDV provides Collection Services with flexible solutions suitable for customers of schools, hospitals, electricity and water bills, from agents ; Convenient multi-channel tuition collection/payment support services (BIDV SmartBanking, BIDV Online, Transaction counters, ATMs ).

BIDV provides international payment services in CNY with competitive exchange rates for Vietnamese businesses that have import and export activities across border gates with Chinese partners.

For import payment: BIDV receives and checks the customer's application and documents, then makes payment with a Chinese commercial bank in the following forms: internet banking, bill of exchange…

For export payment: BIDV receives payment from Bank of China and credits the customer's account

Export L/C: base on receiving LC from the issuing bank, BIDV provides the following services:

Advising LC/ LC amendment to beneficiary

Document checking and sending for collection

Export collection: a method of payment in which the exporter entrusts the bank to collect money from the importer based on the accompanying set of shipping documents, provided that if the importer pays or accepts to pay the draft, the The new bank hands over the consignment documents to the importer to receive the goods BIDV receives documents from enterprises (exporters), checks, sends documents and sends them to foreign banks for collection

Collection of D/P (Documentary against Payment): The importer must pay immediately, then the collecting bank will hand over the delivery documents to them. D/A (Documentary against Acceptance): The importer must accept payment of the bill of exchange at maturity before the bank will hand over the shipping documents to them.

Inward remittance: meets the needs of businesses exporting goods and services with the terms of T/T payment and receiving money from foreign partners through the SWIFT electronic money transfer system between foreign banks with BIDV.

4.2.4.1 Import L/C: Letter of Credit is a payment method in which the issuing bank, at the request of the customer (importer) , undertakes to pay a certain amount to the beneficiary (exporter) or accepts a draft drawn by the beneficiary upon receipt of a set of presented documents in accordance with the provisions of the Credit BIDV does:

Delivery authorization/Bill of lading endorsement/ Delivery guarantee

Documentary collection is a method of payment in which the exporter entrusts the bank to collect money from the importer based on the accompanying set of shipping documents, provided that if the importer pays or accepts After receiving the bill of exchange, the new bank will hand over the consignment documents to the importer to receive the goods. When receiving a set of documents for collection from a foreign bank, BIDV will notify the enterprise to request payment for the set of documents or accept the payment of draft when due and hand over the documents to the enterprise to receive the goods.

Collection of D/P (Documentary against Payment): The importer must pay immediately, then the collecting bank will hand over the delivery documents to them. D/A (Documentary against Acceptance): The importer must accept payment of the bill of exchange at maturity before the bank will hand over the shipping documents to them.

Outward remittance: allows to pay the costs related to the import of goods and services to partners by simple method of international money transfer (Telegraphic Transfer), simple application procedures, flexible transfer currency, time done quickly.

Transfers

BIDV provides international money transfer services to customers with outstanding advantages: same-day credit guarantee upon request when transferring to markets: China, Hong Kong, Taiwan; is the first Vietnamese bank to participate in Swift GPI (Global Payment Innovation Initiative) through API (application programming interface), thereby helping customers experience and enjoy many benefits from payment services having high quality math.

Western Union Global Money Receive Service

SWIFT Interbank Money Receive Service

Range a network of more than

Cambodia Russia and CIS countries countries around the world a variety of foreign currencies and unlimited amount received

USD, VND VND, USD USD USD, VND Various forms

Result of payment service (including domestic and international payment)

In the context of being affected by COVID-19, BIDV's payment service during the year 2021 still achieves a significant increase in sales payment and collection of service fees. Specifically, sales payment in 2021 reached 43.15 quadrillion VND, an increase 59.9% compared to 2020; payment service fee reached 2,309 billion VND, up 12.3% compared to

2020 and 26.6% compared to 2019 Because BIDV has actively applied information technology information to digitize business operations, optimize payment systems, improve efficiency and quality service volume At the same time, BIDV has actively researched and deployed payment products and services new to diversify products and services, save money costs and improve competitiveness such as: Realtime bilateral electronic payment service between BIDV with Vietinbank and Agribank, payment solution math through the SWIFT system.

Compare to others banks

The move to completely free online transactions of Big4 banks is really surprising when payment services are an area that brings in trillions of profit per year, accounting for a large proportion of total operating income (ranging from 40 to 40 USD).

In 2020, Vietcombank's revenue from payment services reached more than VND 6,000 billion, but due to the large cost of this segment, net profit was only VND 2,825 billion.Meanwhile at BIDV, although the bank's revenue is only more than half of Vietcombank, the low cost has caused net profit from payment services to increase by nearly 21% in 2020,despite the pandemic bringing in VND 3,289 billion, accounting for 62.4% of the total net

OTHER ACTIVITIES

Forex and gold trading

A transaction of buying and selling foreign currency at the exchange rate determined on the transaction date

Sell foreign currency Foreign exchange option

Spot A transaction in which a client buys a certain amount of foreign currency at the current market rate, for settlement in two business days from the transaction date.

Meeting the immediate needs of clients

A transaction in which a client sells a certain amount of foreign currency at the current market rate, for settlement in two business days from the transaction date.

Meeting the immediate needs of clients

A foreign exchange option is an agreement by which the buyer of the option pays the seller a premium for the right, but not obligation, to buy or sell a specific quantity of a foreign currency at a pre-agreed exchange rate in a specific period of time or on a certain future date.

Forward A transaction of buying a certain amount of foreign currency at the current market rate, for settlement on a certain future date.

A transaction of selling a certain amount of foreign currency at the current market rate, for settlement on a certain future date.

Conversion transactions between foreign currencies:

Upon agreement between BIDV and clients, Foreign currency versus

A hedging tool for exchange rate risk, help clients control their cash flow

Conversion transactions between foreign currencies: Upon agreement between BIDV and clients, Foreign currency versus VND: from 3 days to 365 days.

A hedging tool for exchange rate risk, help clients control their cash flow

Transaction currencies various types with more than 140 foreign currencies such as USD, EUR,

AUD, TWD, various types with more than 140 foreign currencies such as USD, EUR, GBP, JPY, KRW, AUD, TWD, currency/currency pairs such as GBP/USD, EUR/USD,AUD/USD, USD/JPY, USD/CAD, (foreign currency/VND has not been applied).

5.1.2 Net forex and gold trading income

In 2021, net forex and gold trading continue to maintain the growth momentum and achieve high efficiency with net profit from foreign exchange business in 2021 reaching VND 1,896 billion, up 9.5% compared to 2020 as sales recorded an impressive growth rate ~ 17% to 32.6 billion USD - the highest increase in the past 3 years, helping BIDV continue to affirm its position in the Top 3 banks with the largest foreign currency trading market share inVietnam The above results come from BIDV's efforts in providing flexible products to save costs and hedging against exchange rate risks, as well as developing services based on modern technology, targeting customers row Specifically, taking advantage of the downtrend of theUSD/VND exchange rate in 2021, BIDV promptly advised and offered products suitable to customers' payment needs, risk prevention, flexible combinations of foreign currency trading products with trade finance products according to market conditions to create a product structure with optimal costs, diversified in terms of terms, currencies, and flexible payment time Besides, in order to create favorable conditions for customers to transact continuously in the context of the epidemic, BIDV continues to promote the development of service delivery channels on digital platforms, so that customers can directly transact Transactions with banks through online applications, ensuring safety, saving time and costs.

Guarantee

A bank guarantee is a counter-guarantee measure: This is reflected in the fact that the obligee (the obligee) has the right to directly request the guarantor to perform the agreed-upon obligation without having to do so perform the debt collection through some other preferred asset class Therefore, in the event that the guarantor does not have assets to secure the performance of its obligations as committed before the guarantor, that commitment will not, therefore, become void.

The scope of the guarantee may be the whole or part of the obligations of the obligee, depending on the agreement between the parties.

In addition to the general features of a guarantee for the performance of civil obligations, a bank guarantee also has the following special features:

In legal nature, a bank guarantee is a specific type of commercial transaction The commerciality of this activity is reflected in the fact that bank guarantee activities are both performed by credit institutions in the "market" for profit and professionally as a business profession Therefore, in order to carry out this activity, it is necessary to carry out business registration at the competent authority in accordance with the law.

Regarding the subject, the subject of bank guarantee activities is always credit institutions Due to the high risk of bank guarantee, this operation must be carried out by professional entities with capital conditions, which are credit institutions.

In a bank guarantee, a credit institution is not only a guarantor but also an entrepreneur, guaranteeing the credit institution generates profits for itself

Guarantee transaction gives rise to two contracts: guarantee service contract and guarantee contract These two contracts are both connected and separate, having a causal relationship with each other but completely independent of each other This is reflected in the fact that if one contract is invalid, the other contract is not automatically invalidated A Bank guarantee transaction is not a multi-party transaction but a double transaction Accordingly, credit institutions must sign guarantee service contracts and guarantee contracts in turn.

A Bank guarantee is an irrevocable transaction by an authorized representative of the guaranteeing credit institution A Bank guarantee is a transaction established and executed based on documents

Net service income (inclusive of guarantee fees) reached VND8,546 billion, an increase of 18.4% compared to 2020 – a very positive result given the difficult business environment Guarantee revenue reached VND1,931 billion, down 1.1% compared to 20201,952 billion VND, surpassing the plan set for 2021.

Trading securities and Investment securities

Securities investment and trading activities of commercial banks are understood as the use of capital by commercial banks to purchase different securities to keep until maturity, sell them on the secondary market or perform securities-related activities aims to enhance liquidity, at the same time bring income to the bank and diversify investment and business activities to spread risks Securities-related activities mainly include the following basic activities: Mortgage, discounting, buying and selling stocks with term (repo), buying and selling securities (reverse repo)

For trading securities, because the objective is to enjoy the price difference, the fluctuations in the market price of securities have an important influence on the income and expenses of the credit institution

Trading securities include securities that are managed by the bank in the portfolio of assets for trading with the intention of selling them in the short term for the purpose of profiting from the difference between the buying and selling prices of the securities Trading securities can include debt securities and equity securities Equity securities are recorded in the trading securities account and are purchased by the bank with the business strategy, bought for sale in a short time to enjoy the price difference, not for the purpose of controlling the business.

As for investment securities, the goal is the profit from holding valuable papers, the fluctuations in the market price of securities become insignificant because valuable papers bring to credit institutions from the profit.

5.3.2 Net income from trading securities and net income from investment securities Net income from trading securities and net income from investment securities both decreased compared to 2020 Net income from trading securities reached VND 586 billion, up 22.5% Net income from investment securities fell sharply, accounting for 3% of total net income in 2020 but only 0.3% of total net income in 2021 Net income from trading securities decreased slightly compared to 2020

In general, BIDV's securities business is still doing very well, even though the epidemic is still raging, causing many fluctuations in the stock market.

Digital banking (e-banking)

Digital banking (e-banking) is a banking service provided to customers via electronic means such as the internet or mobile communication network With this service, customers can use their phones, computers or other smart devices to inquire or perform transactions with their bank accounts without having to go to transaction offices or ATMs.

Individual customers who are foreigners and non-resident Vietnamese individuals may register for BIDV SmartBanking and BIDV Online services, specifically as follows:SmartBanking service: Individual customers (including residents and non-residents),from 18 years of age or older with full civil act capacity or full 15 years old without loss or limitation of behavioral capacity as prescribed by Vietnamese law, or an individual business household that already has a payment account opened at BIDV and has mobile phone number information on the BIDV system.

BIDV Online service: Customers (including residents and non-residents), who are 18 years or older with full civil act capacity or who are full 15 years old without loss or limitation of civil act capacity In accordance with Vietnamese law, already have a payment account opened at BIDV and have mobile phone number information in the BIDV system. 5.4.2 Net digital banking service income

Digital banking (e-banking) service fees in 2021 reached more than VND1,600 billion, up 66% compared to 2020, accounting for 24.9% of total net service income exclusive of guarantee fees, an increase of 6.9% in proportion compared to 2020 (18%) This result was attributed to BIDV’s research and successful implementation of many solutions on digital distribution channels, modern banking products and services such as the new generation SmartBanking application (with conversion rate of over 80% of the total SmartBanking users; the number of customers newly registering for the service grew by 2-3 times compared to the time before the launch of the application); launching eKYC (electronic Know Your Customer) service, upgrading self-service eZone, deploying an universal ATM system, In 2021, BIDV Smartbanking had been upgraded 5 times with many outstanding features such as Customer referral , Personal finance management, Online card issuance, Securities, Choice of account,

Trade finance

Trade finance is an activity implemented by banks with the aim of stabilizing the country's finances and reassuring the international commercial banking system Trade finance services are not so prominent as card and account services, but revenue from this service still accounts for a significant proportion in the activities of banks today

Currently, letters of credit are the primary instrument used in trade finance When the customer needs to use it, he will send a letter of credit to the bank to request the bank to make a payment transaction for the beneficiary with information about the specific time and amount Thanks to the emergence of letters of credit, the new trade finance service has been smoothly developed until now Letters of credit are used to improve the quality of international commercial transactions.

In fact, in sales contracts, there are very few buyers willing to pay before receiving the goods Therefore, a letter of credit is like a tool that helps both parties to buy and sell goods at the same time to receive benefits.

If the buyer pays the seller before the bank fulfills the obligation, the amount is called an extraordinary debt obligation There are also many cases where the buyer refuses to pay. Therefore, in the contract, the letter of credit always appears the responsibility and commitment of both parties.

In 2021, the net trade finance fee income reached VND1,520 billion, increasing by25.3% over the same period, accounting for 32% of the net service income under theWholesale Banking Division.

Compare to others banks

In the foreign exchange business, BIDV's spot foreign currency business is 95%, 97% lower than Vietcombank and 59% higher than VietinBank.

BIDV ranked second in the top 10 banks with the most profit from foreign exchange business, including Vietcombank, VietinBank, MB, ACB, Sacombank, ABBank, Eximbank, MSB and TPBank The total net profit from foreign exchange business of these banks reached more than 12,586 billion dong, accounting for 93% of the total net profit of the 26 listed banks.

Of the 26 surveyed banks, 15 recorded net profit growth from foreign exchange trading last year In which, Techcombank was the fastest growing bank with 231.5 billion dong, 188 times higher than the previous year.

Vietcombank continued to be the bank with the largest profit from this segment with VND 4,375 billion, up 12% BIDV and VietinBank, respectively, followed with net profit from foreign exchange trading of VND 1,896 billion and VND 1,812 billion, respectively. BIDV's net profit from foreign exchange business is not high, specifically increasing by 9.5% compared to 2020, the highest is Techcombank 30967.1% and the lowest is VietAbank with -69.9%.

Ending the first 9 months of the year, many banks recorded losses from trading securities and investment securities Banks suffered heavy losses from trading and investment securities Contrary to the strong growth of service activities as well as interest income, net profit from securities trading recorded a decline in most banks in the first 9 months of the year In the Big 4 group, while segments such as services or foreign exchange business all recorded growth in net profit in the first 9 months of the year, VietinBank recorded a loss of

106 billion dong in investment securities while the same period last year profit of 144 billion dong last year In the trading securities segment, this bank recorded a loss of VND 79.6 billion in the first 9 months (the same period last year, a profit of VND 255 billion).

Vietcombank lost 119 billion dong in trading securities while the same period last year profited 118 billion dong BIDV lost 77 billion dong (over 440 billion dong in the same period last year) in trading securities, but it was offset by a profit of 117 billion dong in investment securities (the same period last year, it lost 344 billion dong).

VPBank, the bank that recorded the highest profit from investment securities last year also showed a decrease in profit from this segment Net profit from investment securities decreased by nearly 78% compared to the same period last year while the investment securities segment lost more than 200 billion dong.

Similarly, at Techcombank, net profit from investment securities decreased by 64% while trading securities lost more than 230 billion dong MB is one of the few in the group of top private investors that keeps the net profit from investment securities unchanged (down 2% over the same period) and is also the bank with the highest net profit in the group survey with 1,243 billion VND Net profit from trading securities of MB also decreased by 17% to bring in 136 billion dong.

According to statistics from the consolidated financial statements of the third quarter of 2022 of 28 domestic commercial banks, the total net profit from investment securities decreased by 36% over the same period, to VND 5,324 billion In which, MB is the leading bank in terms of income from investment securities with VND 1,243 billion, down 2% compared to the same period last year Following are two other private banks MSB and SeABank with 813 billion dong and 572 billion dong net profit from investment securities.

Regarding the state-owned group, BIDV and Vietcombank recorded a net profit of 117 billion dong and 84 billion dong respectively while VietinBank lost more than 106 billion dong in the first 9 months of the year.

Considering the growth rate, out of the 26 surveyed banks, only 8 have increased income from this segment, while 13 banks have decreased and 7 banks have recorded losses. The bank that recorded the strongest growth was LienVietPostBank when the investment securities segment brought in VND 343 billion, a sudden increase of 4771% compared to VND 7 billion in the same period in 2021 Other banks also had income from investment securities Investors include MSB, SeABank, NCB, Eximbank,

On the other hand, banks with net profit from declining investment securities during the period can be mentioned as SHB, VietABank, TPBank, Techcombank, VPBank, etc The group of banks that recorded losses in this segment included Sacombank, Viet Capital Bank ,ABBank, VIB, VietinBank, BaoVietBank and OCB.

For BIDV, 2021 is an important year as it is the first year of implementing the Business Development Strategy for the period 2021-2025, with a vision to 2030 Although the economy faces many difficulties and challenges uncertain but under the leadership of the Government, the State Bank; the close companionship of partners, customers, the efforts of all employees of the system BIDV has comprehensively completed and exceeded the set business goals and targets.

By the end of 2021, BIDV continues to maintain its position as the largest joint stock commercial bank in Vietnam with total assets of the commercial banking sector reaching VND 1.72 million, up 16.2% compared to 2020 Total mobilized capital reached 1.64 million billion dongs; in which, mobilization of capital from organizations and individuals reached VND 1.51 million billion, up 16.5% compared to 2020, accounting for more than 11% of the deposit market share of the whole industry Credit outstanding balance reached VND 1.37 million billion, up 11.2% compared to 2020 and accounting for more than 13% of the credit balance of the whole economy, leading the market in terms of credit market share Credit structure has shifted towards a sustainable direction, retail outstanding loans increased by 25% compared to 2020, and SME and FDI outstanding loans increased by 15% and 21% respectively Credit quality achieved the best results in recent years, the bad debt ratio according to Circular 11/2021/TT-NHNN was at 0.81% Financial capacity improved, charter capital reached 50,585 billion VND, and market capitalization reached 187.67 trillion VND (8.16 billion USD) Fully set up DPRR according to regulations, bad debt coverage ratio reaches 235%, safety indicators are ensured according to regulations and good practices To fully pay the state budget, the interests of shareholders and employees are guaranteed. With the vision of becoming the best digital-based financial institution in Vietnam, BIDV constantly improves the quality of products and services, increases the technology content, and applies the latest features on the market in various fields card products to bring the best convenience and benefits to customers such as 3D Secure technology, Contactless touch payment technology, and Blockchain technology in calculating cashback points for customers via the BIDV SmartBanking banking application BIDV is the first bank in collaboration with the Center for Research and Application of Population Data and Citizen Identity - Ministry of Public Security to successfully deploy the application of citizen ID with a chip on transactions in the free area BIDV's services such as ATM, E-Zone, ; launched the

Omni BIDV iBank Digital Bank for institutional customers BIDV provides a solution to connect BIDV-ERP Connection through an API platform, allowing businesses and partners to connect directly from enterprise ERP to banks…