INTERNSHIP REPORT Joint Stock Commercial Bank for Investment and Development of Vietnam – Head Office

INTERNSHIP REPORT Finance Internship Place Joint Stock Commercial Bank for Investment and Development of Vietnam – Head Office HANOI, Table of contents ACKNOWLEDGEMENT STATUTORY DECLARATION table of c.

INTERNSHIP REPORT

Finance

Internship Place: Joint Stock Commercial Bank for Investment and

Development of Vietnam – Head Office

TABLE OF CONTENTS

ACKNOWLEDGEMENT

STATUTORY DECLARATION

TABLE OF CONTENTS

LIST OF ABBREVIATIONS

LIST OF TABLES

LIST OF FIGURES

INTRODUCTION 1

PART 1: OVERVIEW OF JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – HEAD OFFICE 2

1.1 Establish performance of BIDV – Head Office 2

1.1.1 Name and business registration 2

1.1.2 History of background and development 3

1.2 Organization and Governance structure of BIDV Head Office 5

1.2.1 Organizational and Governance structure 5

1.2.2 Function of departments 7

PART 2 JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – HANOI BRANCH BUSINESS PERFORMANCE 9

2.2 Analysis of business performance of BIDV Head Office period 2019 – 2021 9

2.2.1 The situation of Capital Mobilization 9

2.2.2 The situation of Credit Activities 12

2.2.3 The situation of Other Activities 15

PART 3 PROBLEMS AND RECOMMENDATION 17

3.1 Assessment of situation business performance of BIDV Head Office period 2019 – 2021 17

3.1.2 Difficulties and Causes 17

3.2 Recommendation 20

CONCLUSION 21

REFERENCES 22

LIST OF ABBREVIATIONS

2 BIDV Joint Stock Commercial Bank for Investment and

Development of Vietnam

Figure 1.1: BIDV’s logo.

Figure 1.2: BIDV’s governance structure

The Joint Stock Commercial Bank for Investment and Development of Vietnam, which isknown as BIDV in short, is one of the Vietnamese states – owned banks BIDV waslisted as the fourth largest firm in Vietnam in a report by the United NationsDevelopment Program

BIDV become the choice and trust of leading economic organizations, enterprises, andindividuals in accessing banking and financial services Being known and recognized bythe domestic and international community as one of the largest banking brands inVietnam, certified for brand protection in the US, received the Vietnam Gold Star Awardfor a strong brand, and many annual awards of domestic as well as foreign financialinstitutions BIDV is the pride of generations of employees and of the banking andfinance industry in the past 50 years with a traditional profession serving investment anddevelopment of the country

At present, BIDV is one of the banks with the largest distribution network in the bankingsystem in Vietnam, divided into two blocks: Business and Non-business All 63 cities andprovinces in the country are now covered by BIDV’s expanded network, which at the end

of 2021 will have a total of 189 branches in Vietnam, one overseas branch (in Myanmar),

895 transaction offices, 03 subsidiary units, 02 representative offices in Vietnam,

04 internationally representative offices, and 15 subsidiaries and affiliates

The extensive domestic operating network, which covers all provinces and cities, enablesBIDV to reach a significant quantity of customers both nationally and locally and to offer

a range of services for diversified segments, including households, individuals, andvarious organizations and businesses

PART 1: OVERVIEW OF JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF

VIETNAM – HEAD OFFICE

1.1 Establish performance of BIDV – Head Office

1.1.1 Name and business registration

● Registered name in Vietnamese: NGÂN HÀNG ĐẦU TƯ VÀ PHÁTTRIỂN VIỆT NAM

● Registered name in English: BANK FOR INVESTMENT ANDDEVELOPMENT IN VIET NAM

● Stock Code: BID

(Source: bidv.com.vn)

1.1.2 History of background and development

Vietnam Construction Bank was founded on April 26, 1975 From 1981 to 1989, it wasknown as the Bank for Investment and Development of Vietnam From April 27, 2012, ithas been known as the Bank for Investment and Development of Vietnam (BIDV)

The development and upbringing of BIDV has been a difficult and challenging path, but

it has also been one that is closely tied to each historical era in which the nation foughtagainst invaders and was built in unison with the movement of its people The post-wareconomic resurgence has benefited from BIDV

 1957 – 1981

The Bank for Construction of Vietnam was established during the country's active economic recovery phase, and it significantly impacted the administration and distribution of funding for construction.

The Bank for Development of Vietnam gave funds for the construction of industrialfacilities and other projects to benefit national welfare and people's livelihoods, helping

to alter North Vietnam's appearance Together with the Vietnamese people, the Bankcompleted building projects throughout the war and provided funding for traffic, airdefense, and the relocation of significant industrial companies The Bank workedtogether from 1975 to 1981 to rebuild new infrastructure and upgrade existing economicinfrastructure in the South following the conflict The bank provided funding forimportant projects in the fields of industrial, agricultural, transportation, public welfare,and important initiatives that are vital to the national economy

 1981 – 1990

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.

The Bank for Investment and Construction of Vietnam enhanced operating mechanismsfor ongoing development between 1981 and 1990 Additionally, throughout this time thebank made significant strides in accordance with the overall national renovation and thebanking sector, gradually emerging as one of the top specialized banks in the nation.Additionally, the bank directly lent money to companies, gradually evolving into acommercial bank in accordance with market forces

During this time, BIDV significantly influenced the nation's innovation The bankprovided construction with working capital enterprises, motivating them to accelerate thedevelopment of new buildings and advance technology and productivity

 1990 – 2012

Based on 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.

The first foreign business operations of BIDV took place in 1990 To create jointventures, the bank teamed up with overseas financial organizations During this time,BIDV established representative offices and banks in Laos, Cambodia, then Myanmar,Russia, and the Czech Republic These businesses encompassed finance, banking,insurance, and securities

Since then, BIDV has changed into a commercial bank and integrated into the globalfinancial markets Since 1995, BIDV has operated exclusively as a commercial bank,supporting, and advancing Vietnam's market economy

 2012 – 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.

BIDV implemented equitization through an IPO on December 28, 2011 (IPO) Theownership structure of BIDV underwent substantial modifications on April 27, 2012,when it became the Joint Stock Commercial Bank for Investment and Development ofVietnam This move ensured transparency in line with international standards SinceJanuary 2014, BIDV has been trading on the stock exchange under the ticker symbolBID, successfully competing in a global market

Throughout the period, BIDV successfully met all its business objectives, improved itsability to compete, and elevated itself to the position of leading Vietnamese commercialjoint stock bank with sustainable growth

Awards and Achievements

In many recent years, with the direction of BIDV’s board of management, Head Officewith the efforts of bankers have achieved a lot of success, such as:

- In Top 2000 largest public companies in the world according to Forbes Magazine

- Top 10 largest enterprises in Vietnam

- Top 1 SME Bank of the Year for 4 consecutive years (2018 – 2021) according to AsiaBanking and Finance

- Top 1 Wholesale Bank of the Year

- Top 1 Most creative electronic banking in Vietnam (iBank)

1.2 Organization and Governance structure of BIDV Head Office

1.2.1 Organizational and Governance structure

According to the roles and responsibilities of the Board, BIDV will split into Groups andDivisions with similar characteristics to fulfill the needs of running and managing Onlyparticular duties and tasks of the Boards in the Division are developed by BIDV, notindependent functions and tasks for each block (the functions and tasks of the Groups areunderstood as a collection of functions and tasks of the Divisions with the same functionsand nature of work)

Figure 1.2 BIDV’s Governance structure

(Source: BIDV annual report 2021)

Based on the internship position at the Corporate Customers Relationship Department in

Head Office, the functions and responsibilities of this division can be understood asfollows:

 Functions:

- Provide guidance and suggestions for developing strategies, plans, and companygrowth focuses based on domestic market segments and sectors Be in charge of thebusiness plan expenses designated by the board of directors at the same time

- Advise and provide suggestions for the direct, centralized administration of majorcorporate clients at the Head Office

- Proposing to develop and roll out “tailor-made” goods with a focus on managementsegment clients

- Charged with communicating with managed customers and promoting products andservices

- Manage and directly offer wholesale banking services and products to domesticcorporate clients at the Head Office

Through the Annual General Meeting of Shareholders and the General Meeting ofShareholders, the General Meeting of Shareholders serves as the highest decision-makingbody of BIDV and is comprised of all Shareholders with voting rights ExtraordinaryShareholders' Meeting, which also authorized the gathering of written comments

 Board of Directors

The Board of Directors (BOD) is a governing body with complete capability to makedecisions and carry out BIDV’s rights and duties beyond the purview of the GeneralMeeting of Shareholders The BOD is also in charge of formulating and creating BIDV’scorporate governance policies, business strategies, and long-term growth goals

PART 2 JOINT STOCK COMMERCIAL BANK FOR

INVESTMENT AND DEVELOPMENT OF VIETNAM – HANOI BRANCH BUSINESS PERFORMANCE

2.1 Main business activities of BIDV

The biggest component of BIDV's organizational structure is its Head Office, orHeadquarters Here are all the BIDV's top authorities The Board of Directors met at theHead Office to debate and make development orientations and strategic policiesrecommendations for the BIDV system as well as for individual BIDV branches

BIDV Head Office has been providing to the market a wide range of banking products

and services, there are seven major businesses including Credit Extension (lending,

discounting, guarantee, credit card issuance); Capital Mobilization (savings, bond, debenture); Trade Finance Services; Payment Services (domestic and international); Account Services; Bank Card Services; and Other Services (under the certificate of

business registration)

2.2 Analysis of business performance of BIDV Head Office period 2019 – 2021

2.2.1 The situation of Capital Mobilization

Table 2.1: Mobilized Capitalization of BIDV – Head Office

in the period 2019 – 2021

MOBILIZED CAPITALIZATION

Capital mobilized from organizations & individuals 1.187.093 1.295.533 1.509.483

VND million

Deposits and borrowings from other credit

Deposits from other credit institutions 28.904.853 40.828.386 58.953.639

Borrowings from other credit institutions 47.778.326 41.432.462 39.053.753

Customer deposit (types of currencies)

Deposits from customers (types of customers) 495.535.481 589.995.911 687.964.841

VND million

One-member limited companies with 100%

state-owned equity

70.282.718 82.658.637 92.060.307

Two-or-more-member limited companies with

more than 50% state-owned equity or subject

Joint-stock companies with more than 50%

State-owned equity or voting rights or

controlled by the State according to the

Others 99.482.937 138.418.645 159.253.699

VND million

Terms from 12 months to under 05 years 21.809.323 20.330.997 33.339.349

Terms from 12 months to under 05 years 2.550.061 300.061 1.127.901

(Source: annual report of BIDV 2019 - 2021)

In 2019, with a solid growth rate, the joint stock commercial banking system's scale of

capital mobilization remained at the top: Total capital mobilized amounted to

VND1,187,093 billion, of which VND1,374,765 billion came from money raised from

individuals whose average salaries were relatively high Customer deposits represented12.8% of the market share for the whole sector Because of this, BIDV continues todominate the market in capital mobilization in 2019, despite the increasingly strongrivalry among commercial banks, reaffirming BIDV's reputation, brand, and clientele'sfaith in it 53.7% of the entire capital mobilization is also accounted for by retail deposits

In 2020, despite being negatively impacted by the Covid-19 pandemic, BIDV still

managed to maintain its market-leading position in terms of scale: The capital source

mobilized reached VND1,402,248 billion, fully satisfying the demand for capital use and

ensuring the safety of system liquidity; capital mobilization from organizations and

individuals reached VND1,295,533 billion, up 9.1%; and accounted for 11% of the

deposit market share of the entire industry Demand deposits' average size increased by14.9% on average from 2019 to 2020, and their average share of total capital mobilizationincreased by 0.7% from 2019 to 14.5%, indicating that the capital mobilization structure

is continuing to move in the direction of becoming more sustainable

In 2021, the amount of capital that was mobilized consistently outpaced that of joint

stock commercial banks, and the capital mobilization structure improved favorably,cutting system costs Consumer spending and retail capital helped to keep the capital base

at its current size and growth pace Demand deposits increased significantly in size and

share of total capital mobilized, reaching VND267,331 billion Demand deposits

generally climbed by 32% over the previous year, above the aim of 16% Demanddeposits now account for 16.8% of total capital mobilization, up more than 2% from 2020levels The amount of USD-mobilized money increased by 35% at the end of 2021compared to 2020, the significant rise in the previous five years

2.2.2 The situation of Credit Activities