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

ĐẠI HỌC QUỐC GIA TP.HCM

TRƯỜNG ĐẠI HỌC KINH TẾ - LUẬT

5 Nguyễn Hồ Phương Nguyên - K204041241

Instructor: Nguyễn Thị Diễm HiềnTP.HCM, January 2023

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1.3 Model of governance and management structure 4

1.4 Key financial ratios 7

4.1 Domestic payment system 41

4.2 Products of domestic payment system 44

4.3 Transfers 50

4.4 Result of payment service (including domestic and international payment) 51

4.5 Compare to others banks 51

CHAPTER 5: OTHER ACTIVITIES 53

5.1 Forex and gold trading 53

5.2 Guarantee 55

5.3 Trading securities and Investment securities 56

5.4 Digital banking (e-banking) 57

5.5 Trade finance 58

5.6 Compare to others banks 59

REFERENCE SOURCES 64

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 With a long history, through many ups and downs, 64 years of establishment and development, BIDV has achieved remarkable achievements with total assets of up to 1.4 million billion VND.

The bank is constantly expanding and developing its network coverage in 63 provinces and cities nationwide with 191 main branches and 855 transaction offices Especially equipped with 57,825 ATMs nationwide to support and create favorable conditions for customers to use BIDV's products and services Not only stopping at domestic activities, the bank has taken steps to reach out to the world, present in countries such as Laos, Cambodia, Czech Republic, Russian Federation, Myanmar and Taiwan This is a great achievement that not all banks can do In addition, the bank also constantly improves and trains staff with clear qualifications, expertise and expertise, up to now, the total number of employees in the whole system is 25,000 people.

Joint Stock Commercial Bank for Investment and Development of Vietnam is a state-owned bank, currently the state still accounts for 50% of the capital, the remaining 50% is owned by the private sector Therefore, all activities and developed products and services of the bank are under the control of the State Bank of Vietnam Therefore, customers who are using the bank's services can rest assured and have absolute confidence.

The following essay is the result of learning about BIDV through items such as: general introduction, credit activities, loans of customers (individuals, businesses) at BIDV Besides, the study also introduces other activities of BIDV in the process of formation and development such as: trading in foreign exchange and securities Through that, the study shows readers the existing operations at BIDV as well as how BIDV works for payment From there, the authors compare BIDV's activities with other banks in the group of commercial banks in Vietnam in order to serve as a premise for the following groups of authors to evaluate the financial performance, the development of the application of the a new way to operate a bank, typically the Joint Stock Commercial Bank for Investment and Development of Vietnam.

1.1 General information

1.1.1 BIDV at a glance

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.

1.1.4 Business lines

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,

1.1.5 Business Locations

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 (the BIDV Training and Research Institute, the Information Technology Center, and the Southern Cash and Vaults Center), 2 representative offices in Vietnam, and 4 overseas representative offices.

1.2 Key prominent products

1.2.1 The Wholesale Banking Group

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.

1.2.2 Retail Banking Group

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.

1.3 Model of governance and management structure

1.3.1 Organizational structure of BIDV

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- Vietnam Partners 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).

1.3.2 Governance structure of BIDV

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.

1.3.3 BIDV's management structure

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.

1.4 Key financial ratios

1.4.1 Key business indicators

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.

1.4.2 Key Profitability indicators

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

1.4.3 Key risk indicators

The chart clearly shows that the loantodeposit 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 November 15, 2019.

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.

1.4.4 Compare to other banks

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 nearly 9,546 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.

1.5 Strategy

1.5.1 Period in 2020

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…

1.5.2 Period in 2021

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 the State 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

Additionally, BIDV concentrated on improving e-banking services, positioning itself for high-class consumers, and putting high-class customer services into practice modifying retail credit company practices to better serve customers and manage risks; reorienting the card industry to focus on successful and important goods completing the planning for the card system and the portfolio of card products and services in the direction of digital transformation, with the customer at the core of the planning; Changes to customer service should be implemented promptly across all interaction channels in light of the ongoing Covid

annual fee for the first year when

schedule issuing ATM domestic debit card

Free 100% fee for the first 3 months for new

2.1.3 Pros and cons of deposits

Current accountTerm depositSpecializeddeposit

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

BIDV branches

- Ensure liquidity while earning interests continuously

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

- Enjoy value-added services: BSMS, DirectBanking, Internet Banking, Mobile Banking…

- 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 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

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 VND 1,295,533 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

2021 IN RELATION TO 2022

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, up 20.8% 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 than 2% 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.

2.1.4.2 Compare with other bank

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

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

2.1.5.2 Compare with other bank

Unit: VND Million

Valuable papersBIDVVietcombankVietinbank

Income 123.681.757 17.387.747 64.496.785

Expense 4.943.822 348.464 3.511.189

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 to VND 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.

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 to 10.17%.