Bank for Investment and Development of Vietnam explained

Joint Stock Commercial Bank for Investment and Development of Vietnam
Type:State-owned
Foundation:26 April 1957
Location:Hoan Kiem, Hanoi, Vietnam
Key People:Lê Ngọc Lâm, CEO
Phan Đức Tú Chairman
Num Employees:23,200 full time equivalent
Industry:Banking, Finance, Security
Assets: $72 billion USD[1]
Net Income: $315 million USD[2]
Products:Transaction accounts
Insurance
stock brokerage
Investment bank
Asset-based lending
Consumer finance
Trade
International payments
Foreign exchange

The Joint Stock Commercial Bank for Investment and Development of Vietnam (Vietnamese: Ngân hàng Thương mại Cổ phần Đầu tư và Phát triển Việt Nam), commonly known as BIDV, is a Vietnamese state-owned bank in Vietnam. It is the country's biggest bank by assets ($72 billion USD) as of June 2021.[3] [4] According to the United Nations Development Programme report on the 100 largest enterprises in Vietnam, BIDV came in at the 4th position after Agribank, VNPT, and EVN.[5]

BIDV received Asia Risk Magazine's House of the Year Award for being at the forefront of the country's economic development by modernising its risk management and developing new financial products such as energy derivatives hedges.[6]

History

BIDV was established on 26 April 1957 as the Bank for Construction of Vietnam (Ngân hàng Kiến thiết Việt Nam), under which name it operated until 24 June 1981, at which point it changed its name to the Bank for Investment and Construction of Vietnam (Ngân hàng Đầu tư và Xây dựng Việt Nam). It adopted its present name on 14 November 1990.[7] [8]

In January 2007, the Vietnamese government announced that it would sell a minority stake in the BIDV and three other banks.[9] In March of that same year, they sought the government's permission to invest in highway projects.[10] In September, they announced that they would form Vietnam's first aircraft finance group in Hanoi in a joint venture with Vietnam Airlines, PetroVietnam, and Vietnam Post and Telecommunication.[11]

In November 2019 BIDV officially signed a strategic cooperation agreement with Hana Bank and announced the Korean bank as its foreign strategic shareholder who owns 15% of its charter capital. This is the biggest M&A deal with a strategic investor in Vietnam's banking industry.[12]

Outstanding issues

Ability to resolve bad debts

The ability to resolve bad debts is a pressing issue that requires BIDV's attention in recent times.[13] [14] The bank's bad debt level remains high, with provisions for bad debts rising to 87.1% by the end of September 2020, the highest increase in the past two years.[15] At the same time, the foreclosure of bad debts has also faced many difficulties when many collateral assets are put up for sale but there are no partners to buy them back, even if the assets have been put up for sale and reduced in price more than 30 times; many assets with good liquidity value still do not reach the right buyers.[16] [17] [18] [19]

Service quality needs improvement

During the Lunar New Year holidays, when the demand for cash spending increases, the ATM systems of Vietnamese banks often experience temporary overload, making it difficult for many customers to withdraw money. BIDV has not yet been able to address this common problem.[20] [21] [22] In 2022, BIDV received 4 prestigious awards for banking services for individuals.[23] [24] [25]

See also

External links

Notes and References

  1. Web site: 2021-07-30 . TTBC số 25/2021: 6 tháng đầu năm 2021, BIDV duy trì hoạt động ổn định, an toàn; thiết thực hỗ trợ khách hàng và cộng đồng ứng phó đại dịch Covid-19 . 2024-03-28 . bidv.com.vn.
  2. https://www.bidv.com.vn/en/quan-he-nha-dau-tu/bao-cao-va-tai-lieu/bao-cao-thuong-nien Annual reports
  3. Web site: nangluccanhtranh.chinhphu.vn . 2021-07-30 . 6 tháng đầu năm 2021, BIDV duy trì hoạt động ổn định, an toàn . 2024-01-24 . nangluccanhtranh.chinhphu.vn . vi.
  4. Web site: PHÓNG . BÁO SÀI GÒN GIẢI . 2021-11-01 . BIDV duy trì hoạt động ổn định và an toàn, hỗ trợ khách hàng ứng phó đại dịch Covid-19 . 2024-01-24 . BÁO SÀI GÒN GIẢI PHÓNG . vi.
  5. News: Viet Nam's Top 200 businesses list announced. Ministry of Foreign Affairs, Vietnam. 2 October 2007. 19 January 2008. https://web.archive.org/web/20080228231921/http://www.mofa.gov.vn/en/nr040807104143/nr040807105039/ns071002085235. 28 February 2008. dead. dmy-all.
  6. News: House of the Year, Vietnam – BIDV. 27 November 2012. Asia Risk. 18 October 2012.
  7. Web site: Bank for Investment and Development of Vietnam. INTRODUCTION OF BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM. 17 January 2008. https://web.archive.org/web/20080109210333/http://bidv.com.vn/English/aboutus.asp. 9 January 2008 . live.
  8. Web site: Bank for Investment and Development of Vietnam. GIỚI THIỆU VỀ NGÂN HÀNG ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM. 17 January 2008. Vietnamese. https://web.archive.org/web/20080112134439/http://www.bidv.com.vn/aboutus.asp. 12 January 2008. dead.
  9. News: Vietnam to sell stakes in 4 banks. International Herald Tribune. Folkmanis. Jason. 7 January 2007. 17 January 2008. https://web.archive.org/web/20080217003338/http://www.iht.com/articles/2007/01/07/bloomberg/sxdongbanks.php. 17 February 2008 . live.
  10. News: Vietnamnet Bridge. BIDV wants to invest in highway projects. 2 March 2007. 17 January 2008. Vietnam News Agency . https://web.archive.org/web/20080202064856/http://english.vietnamnet.vn/biz/2007/03/668802/ . 2 February 2008.
  11. News: Vietnam's state-owned BIDV to form country's first aircraft leasing firm. MarketWatch. Dow Jones. Nguyen. Pham. 14 September 2007. 17 January 2008.
  12. Web site: 2019-11-11 . KEB Hana Bank becomes BIDV's strategic shareholder . 2024-03-27 . bidv.com.vn.
  13. Web site: 2023-11-05 . Ngân hàng tuần qua: Bất ngờ M&A công ty tài chính; Sửa luật để ngăn sở hữu chéo; Nợ xấu tăng trong quý III . 2024-01-24 . Tin nhanh chứng khoán . vi.
  14. Web site: Kênh đầu tư nóng năm 2024; Sớm sửa Nghị định 24/2012/NGĐ-CP về quản lý vàng . 2024-01-24 . baodautu . vi.
  15. Web site: 2020-12-04 . Nợ xấu lớn dần . 2024-01-24 . Tin nhanh chứng khoán . vi.
  16. Web site: danviet.vn . "Chật vật" thu hồi nợ, BIDV rao bán loạt tài sản… 30 lần không "đắt khách" . 2024-01-24 . danviet.vn . vi.
  17. Web site: Tức 24h . Tin . Ngân hàng BIDV đại hạ giá cả trăm tỷ đồng tài sản rao bán để thu hồi nợ . 2024-01-24 . Tin tức 24h . vi.
  18. Web site: VCCorp.vn . 2020-12-23 . Ngân hàng BIDV rao bán loạt tài sản của Tập đoàn Thăng Long (Tincom Group) - chủ đầu tư chung cư Imperial Plaza 360 Giải Phóng . 2024-01-24 . cafef . vi.
  19. Web site: thanhnien.vn . 2020-05-13 . Ế, BIDV hạ giá phát mãi 55 căn hộ chung cư Era Town . 2024-01-24 . thanhnien.vn . vi.
  20. Web site: 2020-01-20 . Nhiều máy ATM tạm ngưng hoạt động, công nhân xếp hàng dài chờ rút tiền . 2024-01-24 . laodong.vn . vi.
  21. Web site: VnExpress . Nhiều ATM không rút được tiền . 2024-01-24 . vnexpress.net . vi.
  22. Web site: Hàng loạt ATM của PVcombank, BIDV, Vietcombank, Vietinbank không tút được tiền . 2024-01-24 . vi.
  23. Web site: 2023-03-17 . BIDV nhận 4 giải thưởng danh giá về dịch vụ ngân hàng cho khách hàng cá nhân . 2024-01-24 . Báo điện tử VTC News . vi.
  24. Web site: Minh . Báo Pháp Luật TP Hồ Chí . 2023-03-17 . secure spend . 2024-01-24 . Báo Pháp Luật TP. Hồ Chí Minh . vi.
  25. Web site: 2023-03-17 . BIDV nhận 04 giải thưởng về dịch vụ ngân hàng dành cho khách hàng cá nhân . 2024-01-24 . Báo điện tử Tiền Phong . vi.

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