Fostering glorious tradition

naM tran

This April marks the 64th anniversary of BIDV, a time for the bank’s employees to look back over the path that generations of employees have worked hard to shape a leading bank of today.

PROUD TRADITION

On 26 April 1957 the Prime Minister of Vietnam Democratic Republic signed Decree 177/TTg on establishing the Bank for Construction of Vietnam, predecessor of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV). The bank is proud of its glorious tradition, with its different names corresponding to each development period of the country: Bank for Construction of Vietnam (1957 – 1980); Bank for Investment and Development of Vietnam (1981-1990); Bank for Investment and Development of Vietnam (1991 – 2011); and Joint Stock Commercial Bank for Investment and Development of Vietnam (2012 – present). Though bearing different names at different development periods, BIDV has excelled at all tasks assigned by the government, Ministry of Finance, and State Bank of Vietnam, making positive contributions to national defense, construction and the development of the country.

Over the past 64 years, the number of staff employed by BIDV has increased from just over 200 during the initial days to over 25,000 today. The bank’s network has expanded from 11 branches to over 1,100 branches and transaction offices. From its sole function of fund allocation, BIDV has now become a leading financial institution in Vietnam providing

BIDV headquarters in the centre of Hanoi

modern and diverse banking products and services that meet the diverse needs of customers. The bank’s customer base reaches over 12 million, ranging from major economic groups, corporations and SMEs, FDI to individuals. BIDV has transformed into a multi-owned financial group operating in the areas of banking and insurance in Vietnam and six other countries and territories, establishing relationships with over 2,300 financial institutions globally.

In November 2019, BIDV forged strategic alliance with Hana Bank and announced the Korean bank as its foreign strategic shareholder who owns 15 percent of its charter capital. This was the biggest M&A deal with a strategic investor in Vietnam's banking industry. The strategic partnership marks a new turning point in the history of BIDV, reaffirming the cooperation of the leading businesses of Vietnam and South Korea in an effort to further promote economic and diplomatic relations between the two countries.

After 64 years of operation, BIDV has become the largest commercial joint stock bank in Vietnam’s banking system. As of 31 December 2020, the bank’s total assets reached VND1,516,686 billion (USD66 billion) - the highest among commercial banks in Vietnam. Deposits reached VND1,402,248 billion (USD61 billion), accounting for 11 percent of the share of the banking sector’s deposits. Total outstanding loans reached VND1,230,569 billion (USD53.5 billion), accounting for 13.4 percent of the economy’s credit market share. In 2020 BIDV paid VND6,437 billion (USD280 million) to the State budget, making the cumulative tax amount paid over the past five years reach nearly VND27,900 billion (USD1.2 billion) - among the largest taxpayers in Vietnam. The success of the past 64 years is attributed to the support and guidance provided by the party, state and government, helping to lead the bank in the right direction. The achievements BIDV has made would not have been possible without the State Bank of Vietnam, the efforts of generations of leaders across the BIDV system and the support, trust and cooperation of customers, partners and friends, both local and abroad.

MOVING FORwARD

BIDV continues to affirm its role as a key instrument in implementing monetary policies of the government and the State Bank of Vietnam, promoting its role as a major commercial bank capable of regulating the market, pioneering in applying modern banking technology and international integration.

The bank has focused on institutional development, enhancing governance and management capacity, and the accountability of its leaders and discipline across the system. BIDV has made great strides in innovating its government and management model. BIDV has completed the goals of the Restructuring Scheme for the period of 2017 - 2020 and is in the first steps to implement the “Development Strategy 2021 - 2025, with vision to 2030”.

With the 2021 motto of action “Discipline - Quality - Digital Transformation”, the bank is set to successfully implement its business plans for 2021 - the first year of implementing the strategy to 2025, building a prosperous and sustainable bank. BIDV sets targets for 2021, particularly: deposit growth in line with capital use demand, expected at 12-15 percent; credit growth in compliance with the limit assigned by the central bank, expected at 10-12 percent; consolidated profit before tax expected at VND13,000 billion (USD565 million) in accordance with market developments and support for customers to overcome difficulties caused by Covid-19 and recover their business activities. Dividend payout ratio should not fall lower than that of 2020 (the indicators are subjected to change depending on new developments of Covid-19 (if any) and competent authorities’ approval).

BIDV also strives to maintain sustainable and quality growth, cementing its leading position in key segments with a focus on retail and SME banking; aggressively implementing digital banking, promoting a multi-service business model and improving governance capacity according to international standards.

BIDV’s 64-year history has laid a solid foundation for BIDV to continue its strong growth and achieve ever higher results in the time to come.

BIDV has been honoured with many domestic and international awards for its achievements. Awards include World’s Top 2000 largest public companies (as voted by Forbes), Top 300 global banking brands (Brand Finance); “Top 10 largest enterprises in Vietnam" for four consecutive years; “Best Retail Bank in Vietnam” for the sixth time; "Best Transaction Bank in Vietnam", "Best Cash Management Bank in Vietnam" (awarded by The Asian Banker); "Outstanding Retail Bank and Digital Transformation Bank in 2020" (awarded by Vietnam Banks Association & IDG); “Best SME Bank and the Best Innovative Corporate Solution in Vietnam” for three consecutive years (awarded by The Asian Banking & Finance, Singapore), etc.