Key prominent products ơ—
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
BIDV prioritizes updating and enhancing its e-banking system with advanced products and features This strategic move aims to provide corporate clients with a comprehensive digital banking ecosystem, solidifying BIDV's position as the leading digital bank in Vietnam.
Due to the significant impact of COVID-19 on the global economy and the heightened emphasis placed on supply chain sustainability, BIDV introduced its Supplier Finance product in September 2021 This product supports buyers (Center Enterprises, or CEs) by enabling them to maintain and sustainably grow their supplier base, effectively manage cash flow, diversify procurement strategies, and enhance their competitive edge in the marketplace.
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.
To combat the pandemic, the industry has taken swift action, setting the pace for others to follow By offering credit programs and specialized services, we have demonstrated our commitment to supporting healthcare providers on the front lines, aligning with government priorities Our unwavering resolve to collaborate with the medical industry showcases our dedication to overcoming this challenge together.
Model of governance and management s†TUCfUTE 2c 21221121211 1n HH He 4
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 eeu 0F SHAREHOLDERS
IT COMMITTEE BOARO OF MANAGEMENT
AND CHIEF ACCOUNTANT Tee ee ae
WANABEMENT CONMITTEE CC cáo CỔ
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:
The Board of Directors, composed of 11 members, holds the responsibility of decision-making and executing the rights and duties of BIDV However, matters falling within the authority of the General Meeting of Shareholders are excluded from their jurisdiction.
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 comnection 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
The Cash and Capital Business Division plays a crucial role in capital and currency management, adhering to ALCO's requirements for the Bank Book Their responsibilities extend to marketing and direct trading of capital and currency products, generating revenue while meeting customer needs By leveraging their expertise, this division helps the bank achieve its financial objectives and maintain stability.
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
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 has grown steadily over the past several years, increasing by 8.4% in 2021 to VND 86,329 billion This growth was preceded by a 2.6% increase in 2020, a 42.5% surge following the strategic sale to KEB Hana Bank in 2019, and a 12% rise in 2018 BIDV's strong performance is reflected in its charter capital, which has also seen significant growth during this period, reaching VND 40,220 billion in 2021.
DEPOSITS 18
Types of deposits 0.cccccccccsssscesssessscsessevsessessessssecssssessessessessssessecsessessessessessssesssesesevesesaes 18 "co nh an
BUSINESS Current Term | Specialized Escrow Valuable ‘| Other special account deposit deposit paper deposit
Introduction | A form of A form of | Aform of | Either A fund Products demand deposit demand demand mobilization | designed deposit that deposit deposit or | instrument according to account allows account that | term that confirms | the specific designed owners to | an deposit BIDV's needs of mainly for | withdraw | organizatio | owned by | obligation to | customers payments money nuses only | an the owners of via banking | only at for a certain | organizatio | valuable instruments | maturity | purpose, n for the papers with such as: either purpose of | respect toa cash requested securing certain term, cheque, by the interest standing themselves | obligations | paying order, or State of their conditions encashment authorities | own to and other order, BIDV or provisions electronic related transfer parties
Currency VND, USD, | VND, VND, USD, | VND or VND, USD
EUR and USD, EUR foreign other EUR currency foreign currencies
Minimum VND VND Depending balance 1,000,000/ 1,000,000/ | on the
EUR 100 EUR 100 or | the escrow other account minimum balance as agreed upon by customer and BIDV
Interest rate | Demand Fixed/ As agreed | Demand Fixed/ deposit rate | Floating | upon by deposit rate | Floating click here customer or term for details and BIDV, | deposit rate with respect to the interest rate ceiling contempora rily set by
Interest payment amounts are calculated based on the outstanding balance and accrued interest at the time of payment Payments can be made on a daily basis or at maturity, depending on the payment schedule agreed upon between the lender and borrower The payment amount at maturity typically includes the full principal balance and any remaining interest due.
Payments payment are made automaticall y on the
Basis for A year of A year of A year of 360 interest 365 days, a_ | 365 days, days, a month calculation | month of 30 | a month of 30 days days VND | of30 VND days VND
Account Co- Co- Co-ownership ownership ownership | ownershi feature is feature is p feature available available is VND
PERSONAL | Current Term deposit Current account for | Account account securities package investment and Specialized current account
Currencies VND, USD, | VND, EUR, | VND, USD, EUR VND
Minimum VND50,000; VND 500.000, | VND50,000, = USD | 2,000,000 VND balance USD 10; EUR 100, USD] 10; EUR 10
Minimum balance is not required for other currencies
Interest rate | Demand interest | Fixed rate for the | Demand interest rate | 0.2%/year, rate calculated | deposit term | calculated based on | higher than based on day-| (please refer to | day-end balance normal interest end balance the Bank's rate interest rates)
Service fee Free account| Paying interest at] Refer to BIDV's| Completely free management the end of the | current fee schedule | account and account | period management fee closing For Free other fees, refer to BIDV's current fee annual fee for the issuance, first year when
20 schedule issuing ATM domestic debit card
Free 100% fee for the first 3 months for new customers who register for
BIDV OR service, up to 300,000
Types Remittance Term Deposit Deposit account for | BIDV QR accumulation Certificates of foreign direct | Package deposit Deposit investments Parallel account
Deposit Online savings Deposit account for | package payment account foreign indirect B-Free 3 investments Package
Accumulative 8 d eposit account ; Current account for securities investment Savings account
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 Analysis
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 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
23 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, 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
CUSTOMER DEPOSIT TOTAL CUSTOMER DEPOSIT
@ Demand deposit Mi Term deposit Dcdicatcd capital deposit 1.500.009.000
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
LOANS 31 EM) con nh “ “-ử-ụệđạ&ạa 31
Loan PERSONAL Definication | maturity rate/Interest | Benefit of loans amount date Calculation
1 Flexible principal and interest payment (monthly/quarter
Support to ly/semi-annually buy, build, 4 100% ofthe Competitive |OT annually) | renovate an interest rates 12 Special
; value of the 4 peer repair your according to |interest rat
Loans for ; Up to 30 | purchase/sal ; mearae
home with preferential [reduction when accomodation ; years e/transfer 4 k attractive credit packages i
; ; contract/borr ; applying for incentives, / owing plan ; from time to |loans via BIDV ; flexible loan time Home methods application and/or using other existing products of BIDV
BIDV Car Loans offer competitive loan products with preferential fees to meet capital needs Maximum financing is up to 100% of the car's value, with interest rates ranging up to 84 months, tailored to various purchase programs and preferential periods.
29 of customers for buying ; credit packages cars for
Studying abroad helps you open up a new horizon of knowledge and access to many Competitive
- High loan | different interest rates rate up to Secure the loan cultures Maximum according to | |
Studying abroad 100% of the with the property
Make your | upto 10 preferential loans total cost of ; of the borrower and your years ; credit packages ; studying ; or a third party loved ones' from time to abroad ; dreams come time true with our products BIDV's loan to support study expenses
Unsecured Realize your | Maximum Competitive |1 There is no consumer loans plan to up to 84 interest rates |need of improve and | months according to |collateral enhance your | (loan by preferential 2 Flexible quality of life | item) and credit packages lending methods
12 months from time to (per
3 Free consultation on the most loan) effective and economical loan plan
/ Competitive capital needs | months for | Up to 100% | -
; ; interest rates for production] installment | of the total ;
Loan for ; ; according to ; and business | loans, 12 |capital needs / Flexible production and ; preferential
- activities with | months for ofthe ; repayment terms business ; ; credit packages many line of business
- - - from time to preferential |credit/overd| plan/project
Competitive Maximum | interest rates |1 Diverse loan loan amount | according to methods
Mortgage loan 100% of preferential | Simple total loan [credit packages! procedure, fast demand from time to _ | processing time time
Consumer loans | Realize your | Upto 120 | Loan level | Competitive |Less risk with collateral plan to months | upto 100% interest rates [because there are improve and with of collateral | according to |collaterals enhance your | loan/12 valuation preferential quality of life} months value after |credit packages with multiplying | from time to overdraft the time coefficient according to the Bank's regulations
(maximum VND 03 billion/custo mer, of which the maximum overdraft limit is VND
Investment costs of ary formed fixed assets such as: loans from loan
Ordinary VND, Up to 85% capital
machinery, medium and USD, other} oftotal |and/or other -
No equipment, means long-term foreign project assets in
; / of transport, loans currencies | investment | accordance :
- construction of with factories, offices, BIDV's
Ordinary By item, VND, |According to | Secured/uns | Expenses related to short-term limit USD, other the ecured by production and loan foreign | agreement, | property or | business activities currencies in third-party | such as costs of accordance | guarantee purchasing raw with materials, goods, customer services, salaries,
32 electricity/water needs ; bills, ete
Project Up to 85% All reasonable
; Upto 15 |USD, other and/or other investment of total expenses related to years foreign | assets 1n - loan investment the project currencies accordance with BIDV's regulations
Invest Assets ment Up to 90% formed
I sạn Indirect fixed VND, of the from loans, |Fixed assets formed asset USD, other | original cost | real estate | by projects / small investment No foreign of the and other and odd assets loans currencies | investment assets (including cars) property according to regulations
Loans for VND, Office project for investment in USD, other lease, commercial
- No - No No special foreign center, urban area, projects currencies tourist area, hotel
No collateral is} Cost of working VND or required if it capital for
VND, foreign currency in accordance
/ of par value, discount or | currency
suitable for discount for] stated on ; Up to the ;
Discount valuable the the value of| payment ơ method/term payment due) papers remaining | the asset |, term of the | _
, interest rate issued by BIDV term ofthe | and the GTCG and interest value of the | State's payment asset regulations
; method on foreign exchange manageme nt Other loans According to the regulations of BIDV from time to time
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 LOCAL ECONOMIC ENTITIES AND RECEIVABLES FROM FINANCE LEASES
AMOUNTS PAID ON BEHALF OF CUSTOMERS LOANS TO FOREIGN ENTITIES AND INDIVIDIUALS
Loan activity has consistently risen in recent years, with increases observed across all sub-criteria Notably, loans to local entities and individuals surged from 1,076 billion in 2019 to 1,318 billion in 2021 Additionally, loans for finance lease receivables have grown by over 100 trillion dong in just three years Payments made on behalf of customers experienced the most significant increase in 2020 due to the COVID-19 pandemic Conversely, loans to foreign entities and individuals have declined by 5 million in the past three years, attributed to rising foreign interest rates and debt safety concerns.
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
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 of VND 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% from 2.01% as of December 31, 2019, asset quality dramatically improved Additionally, as of December 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
37 end of 2020 from 8.77% at the end of 2019 as a result of accelerating credit in the last months of the year and choosing to pay the 2019 dividend in cash at an annual rate of 8% Only 5.88% of capital is in Tier 1 Tier 2 bond balance is about to reach its maximum The capital boost is necessary to support future development, the expert from SSI said "With the current CAR ratio, we think BIDV has enough capital for credit expansion in 2021." According to SSI, BIDV intended to raise up to 8.5% of its charter capital (341,538,106 shares) through a public or private placement over the 2020-2021 term According to SSI, BIDV's pre-tax profit in 2021 might be VND 13.5 trillion, up 46.4% from 2020 Assumptions made by SSI include: credit growth of 10%, growth deposits (including valuable papers) reaching 11.8% compared to the beginning of the year; NIM's net profit margin increasing by 0.04 points as a result of pressure to raise capital to achieve 85% LDR and the issuance of CAR tier-2 bonds; a decline in the bad debt ratio to 1.6%, a flat provision ratio for bad debt at 88%, and a 10% year-over- year decrease in provision expense.
PAYMENT 4I
Products of domestic paymenf syS†CI L2 1 v91 1011111111111 10111101 H1 ng ve 44
Support to transfer and receive money from any individual or organization in Vietnam Diversified forms of money transfer and receipt (via BID V/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- Postpaid bill Online payment | VAT refund service up/withdrawa | payment service service for foreigners Viinking services
Make Allow linking | For service bills that | Pay for goods Convert foreign recharge | Customer's need to be paid ona_ | and services currency at BIDV's for account monthly basis online at tax refund counter at prepaid opened at (electricity, water, websites BIDV's listed selling and BIDV with tuition fee, cable TV, | connected to rate at the time of postpaid | Customer's E- | telecommunication | BIDV, conversion phone wallet and charges, etc.), the authenticate with accounts | allows online | customer authorizes | the username and
Tax refunds are paid payment for services with money from
Customer's linked account opened at
BIDV the bank to automatically debit the account OR customers can make one-time payment at BIDV transaction counters or on electronic banking channels password of
BIDV online or Smartbanking services in cash Tax refund currency is Vietnam Dong
4.2.1.2 POS based payment acceptance services for Individual Business Households
Online card OR BIDV Pay + Samsung Pay POS - based payment payment acceptance | payment acceptance | payment acceptance acceptance service service service 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 uses the QR code mobile phone application instantly when the buyer scanning function on the supported Napas Card, Visa Card, Mastercard are posted on Samsung devices domestic debit card,
Pay App at Samsung 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 Auto payment payment
Applicable Corporate customers BIDV offers salary | BIDV provides a currencies: pay cash/transfer via payment services to | domestic money transfer VND, foreign BIDV's transaction help businesses pay _| service that allows currencies office branches or their employees’ corporate customers to through BIDV's Internet | salaries and bonuses | transfer money without banking and Mobile making a separate money
Payment banking systems transfer order for each method: in /
BIDV specific and separate cash/transfer ‘on helpi fr om corporate automatically deducts transaction, helping - from th customers manage their account money from the
1 spending sources for the customer's account at
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:
(1) periodically at a certain time for a certain amount;
(i1) when BIDV receives payment request documents from suppliers or partners of customers; (iii) other payment transactions according to specific agreements with customers
BIDV's Collection Services cater to various customer segments, including schools, hospitals, and utilities (electricity and water bills) Flexible collection solutions are offered, including agent-based services Additionally, BIDV provides convenient multi-channel tuition collection/payment options through its digital platforms (BIDV SmartBanking, BIDV Online), transaction counters, and ATMs These services aim to streamline and simplify financial transactions for customers.
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
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
RIA Global | BIDC Money | KoronaPay Western Union SWIFT Money Receive Money Receive | Global Money Interbank Receive Service Service Receive Service | Money Receive
Range | anetwork of | Cambodia | Russia and CIS | countries around a variety of more than countries the world foreign
490,000 currencies and transaction unlimited points in amount
Curre | USD, VND | VND, USD USD USD, VND Various forms ncy
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
BIDV's success in increasing its transaction revenue by 26.6% in 2020 is attributed to its strategic implementation of information technology in digitizing operations, optimizing payment systems, and improving efficiency and service quality Additionally, BIDV's investment in research and development led to the introduction of innovative payment products and services, including real-time bilateral electronic payment services with Vietinbank and Agribank, and payment solutions through the SWIFT system These initiatives have diversified BIDV's offerings, reduced costs, and enhanced its competitiveness in the financial sector.
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The "Big 4" banks' decision to eliminate fees for online transactions has raised eyebrows, considering the lucrative nature of payment services This sector generates trillions of dollars annually, contributing significantly to their overall operating income, typically ranging from 40 to 400 billion 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
48 profit from services VietinBank's net profit is lower than that of the two banks above but also maintains an upward trend in 2020 from VND 1,457 billion to VND 1,740 billion, equivalent to an increase of 19%, At Agribank, in 2016 it was at 2,828 billion VND, by the end of 2020, it recorded more than 5,335 billion VND, accounting for 67% of total income from service activities, higher than both Vietinbank and BIDV Thus, after 5 years, revenue from payment services at Agribank has increased by 89%.
OTHER ACTIVITIES 53
Digital banking (e-banking) 12 1112111112111 11 1811111 11811 110111510111 111 01 111 1k HH ray 57
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
Foreign individuals, including non-resident Vietnamese citizens, aged 18 or older with full civil capacity, or 15 years old without any restrictions on capacity, are eligible to register for both BIDV SmartBanking and BIDV Online services.
53 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 eK YC (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 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 by 25.3% over the same period, accounting for 32% of the net service income under the Wholesale Banking Division
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
In Vietnam's banking industry, Vietcombank maintained its dominance in foreign exchange trading profitability with a VND 4,375 billion net profit, an impressive 12% increase BIDV and VietinBank followed closely, generating VND 1,896 billion and VND 1,812 billion in net profit from this segment, 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%
Many banks faced losses in securities trading and investment during the first nine months of the year Despite strong growth in service activities and interest income, net profit from securities trading declined for most banks in this period Notably, VietinBank, one of the Big Four banks, reported a loss in securities trading despite growth in other segments like services and foreign exchange business.
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)
2021 stands as a pivotal year for BIDV, marking the commencement of its 2021-2025 Business Development Strategy, envisioning the year 2030 Despite encountering economic adversities, BIDV has successfully surpassed its business objectives through the stewardship of the Government, State Bank, and unwavering support from its partners, customers, and employees.
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
In the coming time, BIDV will continue to closely monitor the situation of the system, and manage business activities in the direction of focusing on increasing non-interest income sources, enhancing e-banking services, and maximizing financial resources revenue and cost control
(1) https://vietnambiz vn/top-10-ngan-hang-lai-nhieu-nhat-tu-mua-ban-chung-khoan-dau- tu-trong-9-thang-dau-nam-202? 111582 14216.htm
(2) https://vietnambiz vn/ngan-hang-lo-dam-tu-mua-ban-chung-khoan-9-thang-dau-nam-
(3) https://leadernetwork.vn/top- 10-ngan-hang-lai-nhieu-nhat-tu-kinh-doanh-ngoai-hoi- trong-nam-2021/
(4) https://besttaichinh.com/ngan-hang-lo-dam-tu-mua-ban-chung-khoan-9-thang-dau- nam/
(5) https://vnfinance vn/big4-ngan-hang-muon-tang-von-dieu-le 49809 html? fbclid=Iw ARI NegouxxJUf1 DI4 Y 132d9xxShiympBITyMOQY OgIgE52ry MIgbD La- gnyk
(6) https://www.bidv.com.vn/bidv/tin-tuc/thong-tin-bao-chi/bidv-duy-tri-hoat-dong-on- dinh-an-toan-tang-truong-tich-cuc
(7) https://www.bidv.com.vn/vn/ve-bidv/thong-diep-tu-hoi-dong-quan-tri
Ngân hàng thương mại cổ phần Quân đội (MB) đạt mức tăng trưởng tín dụng cao nhất tới 27% trong năm 2021 Bộ tứ ngân hàng quốc doanh (Big4) gồm Vietcombank, VietinBank, Agribank và BIDV tiếp tục giữ vững vị trí trong top 10 ngân hàng cho vay nhiều nhất năm 2021 Các ngân hàng tư nhân cũng có sự tăng trưởng mạnh mẽ, đặc biệt là Techcombank với mức tăng trưởng tín dụng lên tới 22%.