RELEASED DATE 25 Oct 2022
Accompany the corporates
During the complicated developments of the Covid-19 pandemic, the risk of supply chain disruption has always been present, leading to the increase in the demand for products and services to support corporates in the supply chain. At that time, BIDV was one of the leading banks in promoting the implementation and tailoring appropriate solutions to satisfy the corporates’ needs in different chains, which rapidly supported such corporates on capital supplement, network connection, production and business stabilization.
Accordingly, BIDV provides corporates with working capital financing solutions based on the connection and policy on sales and payment as well as central company's supporting policies/commitments in order to promote the business operation of the supply chain, which assists in increasing sales, optimizing cash flow circulating in the chain, and supporting corporates/enterprises in forming sustainable supply chains.
FrieslandCampina Company (FCV) - an enterprise with more than 20 years of experience in production and distribution of leading dairy products in Vietnam, determined that the Covid 19 pandemic had significant adverse effects on the economy of Vietnam, in particular, and on the world in general. For the fast-moving consumer goods (FMCG) industry, due to the decline in purchasing power and supply chain disruptions in both production and circulation, the negative impact of Covid 19 pandemic is the most obvious.
During such a period, BIDV’s cooperation program providing financial support to FCV’s distributors had contributed significant importance and effect on reducing difficulties of the distributors, then together maintaining their business operations and circulating goods to consumers. As such, FCV was supported to overcome difficulties during the pandemic. As assessed by Mr. Le Quoc Trung, CFO of FCV, “It can be said that the solution from BIDV is a win-win solution for all parties that supporting all related parties to overcome difficulties during the pandemic and, in the long-term, creating a premise for a better and more sustainable mutual development”.
According to Isuzu Vietnam Automobile Co., Ltd (IVC) - a leading enterprise in the fields of import, assembly and distribution of various commercial vehicle and automobile products in Vietnam, the temporary lockdown due to Covid-19 in Vietnam and other countries caused a significant decrease in the IVC’s production & sales output. Regarding sales policies, IVC has adjusted sales supporting policies for Agents, by lowering retail KPIs as a result of covid-19 to encourage Agents to satisfy their KPIs.
BIDV's Supply Chain Financing Product has positively supported IVC and its distribution partners. “BIDV's credit extensions to IVC's Agents facilitate the payment on cars of Agents to IVC on time, which contributes to an increase in sales and reduction in inventory of IVC. In addition, BIDV's credit products provided for Isuzu’s Agents as well as Car Purchaser, such as loans and payment guarantees that contributed to sorting out the cash flow difficulty of Isuzu’s Agents & Customers when buying Isuzu cars." - said the IVC representative.
In 2022, BIDV has developed additional 07 new chains including (02 chains in production and 05 chains in distribution), attracting nearly 300 corporate clients joining in the chains.
Digitalize services to provide corporates with optimal utilities
At the 2022 Business Forum held by Forbes Vietnam in early August 2022, in the circumstance of a slowdown in the adverse impacts of Covid 19 pandemic, Vietnam’s economy was stated to have been returning to its growth and expected to be “a rising star” in the global supply chain. The global supply chain has been shifting to regions with abundant low-cost labor resources, including Vietnam - the destination of multiple great supply chains. The market data provides that Vietnam’s FDI and exports over the past 10 years have outperformed other Southeast Asian countries, which shows that Vietnam has enhanced its position in the global value chain where supply chain financing is a new movement and will develop strongly in the future.
Mr. Le Quoc Trung, CFO of FCV, stated that Vietnam will continue to be a potential market for dairy and nutritional products.
We believe that FrieslandCampina Vietnam and BIDV will have a lot of potential cooperation to support our entire supply chain with potential finance sources, for faster and stronger growth, by providing convenient and effective payment solutions, not only for distributors but also for retailers and customers, to fulfill FrieslandCampina Vietnam's mission of providing quality nutrition to all consumers.
FCV engineers exchanging their working experiences
According to Isuzu, the potentiality of importing, assembling and distributing commercial vehicles and automobiles market in Vietnam is significant, especially commercial vehicles thanks to Vietnam’s post-Covid-19 economic recovery and a rapid growth of e-commerce. IVC hopes that BIDV will facilitate cooperation with IVC in providing credit extensions for Isuzu Agents & Customers (by): executing cooperation agreements with more Agents, diversifying credit products as well as providing more preferential policies for Agents & Customers purchasing car from Isuzu.
With the efforts to develop supply chain financing products, BIDV is the only bank in Vietnam selected by the Asian Development Bank (ADB) to sponsor the Technical Assistance project to build, design and implement the Supply Chain Financing (SCF) business model. BIDV was consulted on solutions for business models, products, tracking support, sales, risk management and capacity enhancement. It is a favorable condition for BIDV to consolidate and expand the deployment of products in the near future.
Understanding market trends and client’s needs, BIDV is carrying on boosting the digitalization of the supply chain financing process for enterprises/corporates’ convenience. Accordingly, BIDV is investing in an online SCF platform to increase processing speed, client experience, shorten the processes and procedures for Clients, and promptly satisfy the demand for funds for the supply chain.
In addition to supply chain financing solutions, in order to better support corporates, BIDV has promoted the implementation of a series of programs such as: Launching the Omni BIDV iBank digital ecosystem for corporate clients with a consistent experience on website and mobile app platforms; Introducing the online loan registration feature for corporate clients; preferential programs for new and existing corporate clients such as free on account management, lucky digital account number selection, remittance fees, payroll payment fees, international remittance fees, trade financing, and other incentives on exchange rate for Clients when making transactions on BIDV iBank.
BIDV was honored to be granted with “Best Supply Chain Finance Provider Vietnam 2022”