annualreport 2010 ngân hàng liên việt lien viet bank now everyone can bank

LIENVIETBANK’S GENERAL INFORMATIONTHE CHAIRMAN’S MESSAGETHE CHIEF EXECUTIVE OFFICER’S LETTERMEMORABLE EVENTS IN 2010 AWARDS AND ACHIEVEMENTS IN 2010ORGANIZATIONAL STRUCTURE OF LIENVIETBA

NOW EVERYONE CAN BANK

LIENVIETBANK’S GENERAL INFORMATIONTHE CHAIRMAN’S MESSAGE

THE CHIEF EXECUTIVE OFFICER’S LETTERMEMORABLE EVENTS IN 2010

AWARDS AND ACHIEVEMENTS IN 2010ORGANIZATIONAL STRUCTURE OF LIENVIETBANK IN 2010Organizational Structure of the Head Office

Organizational Structure of the BranchesTHE LEADER’S PROFILE

The Board of DirectorsThe Board of SupervisorsThe Board of ManagementSHAREHOLDERS’ INFORMATIONHUMAN RESOURCES (HR), TRAINING POLICY AND LABOR POLICY HR

Training policyStaff assessment and planningReward and remuneration policyBUSINESS PERFORMANCE IN 2010SOCIAL AND UNION ACTIVITIESORIENTATION FOR DEVELOPMENT IN 2011FINANCIAL STATEMENTS FOR 2010TRANSACTION NETWORK

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CONTENT

Full name in Vietnamese: Ngân hàng Thương mại Cổ phần Liên Việt.

Abbreviation in Vietnamese: Ngân hàng Liên Việt

Full name in English: LienViet Joint Stock Commercial Bank

Abbreviation in English: LienVietBank

Address of the Head office: No 32 Nguyen Cong Tru, Ward 1, Vi Thanh town,

Hau Giang province

Chairman: Mr Duong Cong Minh

Chief Executive Officer: Mr Le Hong Phong

“Timely and suitable adjustment in organizational structuring in 2010 is the platform for significant develop-ment of LienVietBank in the coming

Dear valued shareholders and investors,

LienVietBank was founded in the circumstance that Vietnam was coping with many difficulties and challenges ated by the abnormal and complicated changes of the world economy This global downturn caused negative impacts

cre-on the naticre-on’s eccre-onomy and as a ccre-onsequence, effected the business operaticre-on of the entire banking industry and LienVietBank was not an exception

However, with consistent effort, LienVietBank enjoyed a roaring success by adopting right business measures and overcoming the difficulties The 2010 revenue and profit recorded an impressive increase in comparison with the previous year As of 31/12/2010, LienVietBank’s total capital achieved VND 34,985 billion, profit before tax was VND

795 billion and chartered capital was raised to VND 3,650 billion from VND 3,300 billion LienVietBank also fully issued VND 2,000 billion worth of convertible bond and brought into operation 45 transaction points nationwide.The year 2011 has been foreseen as a difficult and challenging year for the banking operation after the global financial crisis (2008-2010) The global and national economic recovery is expected to remain sluggish, export volume will decline and the local currency may be forced to be devalued However, there are still positive signs The national economy has shown signs of gradual recovery which will bring in more investment opportunities and business im-provement What’s more important is that LienVietBank has reinforced its brand awareness, reputation and influence among clients and on the financial market This is not only due to its effective business operation but also the com-mitment to sustainable development by fulfilling the social responsibility as a corporate citizen, specifically the credit program for agriculture and rural development

success-Finally, and perhaps the most importantly, on 21/2/2010, the Prime Minister issued an official letter number ĐMDN approving the capital contribution of the Vietnam Post Corporation (a member of the Vietnam Post and Tele-communication Group) to LienVietBank by the value of the Vietnam Postal Savings Service Company and additional cash Thereby, LienVietBank has potential to exploit and utilize more than 10.000 post offices spread across the nation

244/TTg-to channel banking services LienVietBank will then become one among Vietnam’s largest banks in term of network Endeavoring the strategic choice to become a mass-market retail bank, I believe that 2011 will be a prosperous year which marks a significant transformation of LienVietBank

The road ahead is long and winding Every success or failure, hardship and challenge that we encounter will definitely

be our valuable lessons for our future development The Board of Directors believe that the clear directions and goals, the consensus of the fellow shareholders, the trust and support of our clients and the determination of LienVietBank staff to overcome difficulty are the momentum of growth for 2011 and subsequent years There’s no doubt that Lien-VietBank will be increasingly strong and resilient

On behalf of the Board of Directors, I would like to express sincere thanks to our valued shareholders, clients, partners and all the staff They have always been trusting in and standing by our side, which I suppose, made it possible for the success of our bank today We are then committed to make every effort in return for your trust and support We shall fulfill the bank’s mission and put in place proper, fair and transparent policies to pursue the highest effectiveness and finally reshape, then bring LienVietBank to a new level of development

Regards,

THE CHAIRMAN’S MESSAGE

DUONG CONG MINH Chairman

Dear shareholders, clients and partners,

The year 2010 closed with many changes in the global economy in general and in Vietnam in particular The high inflation rate in emerging economies, the currency war among developed countries and the Eurozone sovereign debt crisis have caused negative impacts on the Vietnam economy The fluctuation of interest and exchange rate were irregular and unpre-dictable The Vietnam banking industry was at the challenge of business expansion and balanced operation since the credit growth rate was nearly at 30% while deposits remained roughly 27% and earnings sometimes recorded a dramatic decline

In the context of unfavorable market conditions, LienVietBank continued to enjoy outstanding results and remained strong

in the financial system One success is commonly the result of the combination of three elements: the right timing, the right place and the right people Knowing our challenges well enough, we have successfully demonstrated that extensive change certainly opens up major opportunities What we did was to find out solutions and proper direction to take advantages of timing, look for opportunity in every difficulty and cultivate the internal strength within the organization In 2010, our sound and effective business operation was driven by 4 principles in management:

Human resource: Staff professionalism and self-motivation are key factors for LienVietBank sustainable growth Promoting

self-determination, developing specific personnel policies and training programs, and creating equal development nities are main priorities

opportu-Technology: Continuous investment has been made in the banking technology to meet the demand for the support of

banking transaction, product management, MIS, staff and procedure management The banking system with advanced technology is one of the success factors to the operation of banks in a modern business environment

Product and service quality: As a customer-driven and mass market retail banking oriented bank, LienVietBank has to

guar-antee its products and services to be delivered with the highest quality and trust Sufficient time and resource were directed

on the development and improvement of our service quality and products to meet the demand of every customer segment

Risk management: The overall risk management capabilities had approved, non-performing loan ratio was kept at minimum

level Taking risk management as an integral part of everyday operation is the key factor of the bank’s safety, ism, and the shareholders’ long-term and sustainable benefits

professional-In 2011 and subsequent years, the Board of Management commits itself to a concerted effort to deal with market tainty, conducts business operation in line with the direction of the Board of Directors and the expectation of the sharehold-ers and clients Reaching VND 60,000 billion in total capital, targeting VND 1.180 billion profit before tax, controlling non-performing loan ratio below 0.6%, expanding network systematically and effectively, and exploiting the business potential through the merger between Vietnam Post Corporation and LienVietBank are the challenging targets for 2011 Backed by the close guidance of the Board of Directors, along with the determination, and the teamwork spirit of all the staff, we believe that those tasks are definitely realistic and feasible

uncer-On behalf of the Board of Management, I would like to express my sincere gratitude to our valued shareholders, clients and partners who have always cooperated with LienVietBank We hope to continue counting on your support in the future and commit to foster sustainable development for the benefits of our shareholders and society

Wish you all good health, happiness and success

Best regards,

THE CHIEF EXECUTIVE OFFICER’S LETTER

LE HONG PHONGChief Executive Officer

19/01/2010 Together with Him Lam Corporation,

Lien-VietBank established Xin Man Development Joint Stock

Company in order to support the development of the

poor Xin Man District, Ha Giang Province which then

con-tribute to the actuallisation of the Resolution 30A/2008/

NQ-CP dated 27/12/2008 of the Government on the

sup-port program for fast and sustainable poverty reduction in

62 poor districts all over the country

branch in 2010, commenced operation in Long Xuyen

City, An Giang Province On the same day, LienVietBank

has announced the Agricultural and Rural Finance

Pro-gram in Mekong Delta for the period 2010-2013 This

project has been implemented in 2010 with the total

out-standing loan of VND3,669 billion

Share-holders had approved the decision that the Vietnam Post Corporation - VNPost (a member of VNPT) would con-tribute capital to LienVietBank by the value of Vietnam Postal Savings Service Company - VPSC and additional cash The merger would bring LienVietBank the opportu-nities to become the retail bank with the largest network among the Vietnamese commercial banks

Compact Network in Vietnam (GCVN) had an official visit

to LienVietBank By joining GCVN, LienVietBank had cially acknowledged its social responsibility in accordance with international standards to improve social conditions and working environment for employees

Decision No 884/2010/QD-HDQT on the organizational structure of the Head Office This structure helped inten-MEMORABLE EVENTS IN 2010

sify the participation of Board members in regular

activi-ties of the Bank to specify and stabilize functional

depart-ments

Memo-randum of Bilateral Cooperation signing ceremony

be-tween LienVietBank and Wells Fargo Bank, N.A was held

on the occasion of World Bank/IMF Annual Meetings

2010 to establish the long-term relationship between

both Parties Also this year had marked the associations

between LienVietBank and other big corporations

includ-ing: Great Mountain Joint Stock Insurance Corporation

(GMIC), Vinacomin Finance, PTI Insurance

Nghe An, Ha Tinh, Quang Binh and Quang Tri to support

people in central Vietnam The Group has provided food

stuff and cash for flood-stricken people

Branch was opened, marking the presence of the Bank in the southernmost area of the country

taken place for the first time with the presence of 60 amateur athletes all over the country Together with the LienVietBank’s Talent Show held in June 2010, this was one of the outstanding social activities of LienVietBank Union

with impressive results: total employees for the whole network was 1,400 (nearly doubled that of 2009), total assets reached nearly VND 35,000 billion, profit after tax was about VND 700 billion marking an important step af-ter 3 years of operation

AWARDS AND ACHIEVEMENTS

With continuous efforts to contribute to the overall development of society and the community wherever the Bank is present, after 3 years, LienVietBank’s contribution has been recognized with numerous awards from the prestigious organizations, unions, authorities, etc

Awards to the Bank in 2010

Certificate of Merit and Cup of Sao Khue Award 2010

as a representative illustration of Vietnamese corporation

in applying information technology This is the most

im-portant prize in Vietnam software industry awarded by

Vietnam Software Association (VINASA)

Certificate for The Corporation associated with blood

do-nation awarded by Tien Phong Newspaper thanks to the

participation in the Red Sunday Event on 24/10/2010

Gold Cup Award for International Economic Integration

held by Nhan Dan Newspaper, National Committee for

International Economic Corporation Office

Certificate and Cup “For the development of ethnic

mi-nority communities in Vietnam” awarded by Committee

for Ethnic Minorities Affairs

Certificate of Merit for “Outstanding achievement in

per-forming the Resolution 30A/NQ-CP of the Government in

Ha Giang Province, awarded by Chairman of the People’s

Committee of Ha Giang Province

Certificate of Merit for the contribution to Pham Van Tra Study Encouragement Fund, awarded by Chairman of the People’s Committee of Bac Ninh Province

Certificate of Merit for outstanding achievement in the implementation of the statistical reporting regime under the Decision 477 and Decision 1747 of State Bank of Viet-nam, awarded by the Governor of State Bank of Vietnam The Recognition Award by Wells Fargo for achieving a high straight-through rate for payment processing at Wells Fargo Bank, N.A in the Year 2010

Awards to individuals in 2010

Certificate of Merit for “Outstanding achievement in forming the Resolution 30A/NQ-CP of the Government in

per-Ha Giang Province”, awarded to Mr Duong Cong Minh

- Chairman of LienVietBank by Chairmain of the People’s Committee of Ha Giang Province

Certificate of Merit for “Outstanding achievement in forming the Resolution 30A/NQ-CP of the Government

per-in Ha Giang Provper-ince”, awarded to Mr Nguyen Duc ong - Vice Chairman of LienVietBank by Chairmain of the People’s Committee of Ha Giang Province

E-Banking Division Strategic

Customers Division

Treasury Division International Relations &

Global Markets Division

General Support Dept.

Online Banking Services &

E-Commerce Dept.

Council Risk management & AML Council

HR Council Technology

Council

Cost Management Council

BUSINESS DEVELOPMENT SECTION CONSULTING SECTION SUPPORTING SECTION Supervision Section

Business Dept.

Card Center

ODA Servicing Dept.

Capital Management Dept.

Capital Trading Dept.

Global Markets Dept.

International Relations Dept.

Operation Center Branches Subsidiaries

Customer Division Risk Management Legislation,

& AML Division

Organization Development Division

Credit Review Division

Corporate Banking Dept.

Retail Banking Dept.

Legislation Dept.

Risk Management

& AML Dept.

Credit Review Dept.

Value Appraisal Dept.

Network Development Dept.

Technology &

HR Dept.

Training Dept.

Finance Division

Finance Accounting Dept.

Statistics &

Assets Management Dept.

IT Division

Core Banking Dept.

Data Center Dept.

Trade Service Division

International Payment Dept.

Domestic Payment Dept.

PR & Marketing Division

Marketing Dept.

PR Dept.

Customer Services Dept.

Internal Audit Division

General Affairs Dept Periodic Audit Dept Supervision Dept.

Administration Division

Southern Administration Office

ORGANIZATIONAL STRUCTURE OF LIENVIETBANK IN 2010

ORGANIZATIONAL STRUCTURE OF THE HEAD OFFICE

Customers Division

Treasury Division International Relations &

Global Markets Division

General Support Dept.

Online Banking Services &

E-Commerce Dept.

Council Risk management & AML Council

HR Council Technology

Council

Cost Management Council

BUSINESS DEVELOPMENT SECTION CONSULTING SECTION SUPPORTING SECTION Supervision Section

Business Dept.

Card Center

ODA Servicing Dept.

Capital Management

Dept.

Capital Trading Dept.

Global Markets Dept.

International Relations Dept.

Operation Center Branches Subsidiaries

Customer Division Risk Management Legislation,

& AML Division

Organization Development Division

Credit Review Division

Corporate Banking Dept.

Retail Banking Dept.

Legislation Dept.

Risk Management

& AML Dept.

Credit Review Dept.

Value Appraisal Dept.

Network Development Dept.

Technology &

HR Dept.

Training Dept.

Finance Division

Finance Accounting Dept.

Statistics &

Assets Management Dept.

IT Division

Core Banking Dept.

Data Center Dept.

Trade Service Division

International Payment Dept.

Domestic Payment Dept.

PR & Marketing Division

Marketing Dept.

PR Dept.

Customer Services Dept.

Internal Audit Division

General Affairs Dept.

Periodic Audit Dept.

Supervision Dept.

Administration Division

Southern Administration Office

ORGANIZATIONAL STRUCTURE OF LIENVIETBANK IN 2010

ORGANIZATIONAL STRUCTURE OF THE HEAD OFFICE

AML: Anti-money Laundering

ORGANIZATIONAL STRUCTURE OF BRANCHES

THE LEADERS’ PROFILE THE BOARD OF DIRECTORS

2 MR NGUYEN DUC HUONG (PH.D)

3 MR TRAN VIET TRUNG

Bachelor in Asset Valuation - University of

Economic Planning (now called Hanoi National

Bachelor in Business Administration - Amos

Tuck Business School of Darthmouth University,

USA, 1996

1 MR DUONG CONG MINH

Chairman of the Board of Directors,

President of the Strategy & Business

Committee

Vice Chairman of the Board of Directors, President of the ALCO, Legislation,

Risk management & Anti-money Laundering Committee

Member of the Board of Directors,

President of the Credit & International Relations

Committee

4 MR NGUYEN DUC CU

6 MR NGUYEN DINH THANG

8 MR TRAN VAN TINH

5 MS.VO THI KIM HOANG

Bachelor in Law - University of Law, Ho Chi Minh City, 1996

Bachelor in Law - Sai Gon University of Law (now

called University of Economics, Ho Chi Minh

City), 1975

Bachelor in Economics - University of Economics

Ho Chi Minh City, 1977

Bachelor in Chemistry - Engineering College of

Phys-ics and Chemical Industry in Paris, France, 1982

Bachelor in Crude Oil Exploration and Exploitation

- Engineering College of Oil, Gas and Mechanics,

Cost Management Committee

Member of the Board of Directors, in charge of the IT Division & E-Banking Division

Member of the Board of Directors Member of the Board of Directors

Member of the Board of Directors