Dear shareholders, customers and partners,

The year 2019 ended amid an unstable world, one in which global economic growth was both lower than expected and the previous years, mainly due to the slow growth in developed economies and China and the slow recovery of emerging countries, along with escalating US-China trade tensions. Despite this, Vietnam’s economy remained positive: GDP growth maintained a high rate of 7.02% thanks to stable growth in industrial production, consumption and services; and inflation was well controlled with the average CPI increasing at a low level over the past three years. The State Bank of Vietnam (SBV) actively and flexibly operated monetary policy, synchronously using various tools and regulating the money supply and total means of payment at a reasonable level; while monetary policy was closely coordinated with both fiscal and price policy, positively contributing to macroeconomic stability and currency value.

In 2019 BIDV continued to make breakthroughs, successfully and comprehensively completing all business targets. The successful offering of over 603 million shares totalling VND20,295 billion to strategic investor KEB Hana Bank (Republic of Korea) marked a new milestone in BIDV’s development and international integration process and was the largest deal with a foreign strategic investor in Vietnam’s banking system to date. The deal was of great significance to BIDV, giving the bank a huge financial source that helped increase its charter capital to VND40,220 billion, the highest among Vietnam’s credit institutions, while also improving financial capacity, ensuring capital adequacy ratio, and promoting growth and sustainable development for the bank.

Along with the successful foreign strategic sale, BIDV completed its business plan targets. In particular, profit before tax reached VND10,732 billion, increasing by 14.3% compared to the previous year. BIDV continued to maintain its position as the largest commercial bank by total assets and charter capital with total assets reaching over VND1.49 quadrillion. The non-performing loans ratio was at a low level of 1.75%, provisions for risks were made according to regulations, VND8,168 billion was paid into the State budget, and ROE and ROA ratios were 12.94% and 0.61% respectively.

As one of the 10 commercial banks selected by the State Bank of Vietnam to implement Basel II, BIDV has always demonstrated its determination to apply the Basel standards. On 29 November 2019, the governor of the State Bank of Vietnam approved BIDV to apply Basel II with effect from 1 December 2019, ahead of the effective date of Circular 41/2016/TT-NHNN. Recognized by SBV for early completion of Basel II, BIDV continues to affirm its position as one of the leading banks in Vietnam by total assets, charter capital and standardized risk management. This lays solid foundations for BIDV to continue to integrate, develop and meet international modern banking standards.

Maintaining the position as the leading bank in applying information technology in the banking system, in 2019 BIDV completed the formulation of the digitalization strategy; officially launching its Digital Banking Center – a creative center, which produces advanced and modern products for customers and tests new business models on the digital platform.

In 2019, BIDV continued to assert the social responsibilities of the leading financial institution in Vietnam. Hundreds of national works and programs in the fields of health care, education, housing for the poor, disaster relief and Tet gifts were implemented with a total budget of over VND300 billion. BIDV also left its footprint in 2019 as a humane bank, catching up with the dynamic development of life through the running event “Warm Tet for the poor 2020”.

With the outstanding achievements seen over the year, BIDV took a firm position in the world’s Top 2000 largest public companies for the fifth consecutive year, was named amongst the Top 400 largest banks in the world, the leading bank in Vietnam on the brand strength growth index; “Best retail bank in Vietnam” for the fifth consecutive year; was honoured with “Best SME deal” as well as receiving the “Digital Transformation” award.

The success of BIDV is attributed to the solidarity, unanimity and relentless efforts of more than 26,000 employees, and the sharing, cooperation and companionship of financial institutions, businesses, customers and partners, both domestic and international. As a bank that stays true to its commitment of remaining professional, friendly and modern, BIDV has increasingly shone on the path to overcoming challenges and achieving success.

2020 is the last year of implementation of the plan for 2016-2020; and the final year of implementing the scheme on restructuring credit institutions in association with handling bad debt. With the 2020 action motto of “Discipline – Accountability - Efficiency - Breakthrough”, BIDV will vigorously implement uniform solutions and measures to effectively perform monetary policy, improve operational quality and business efficiency; facilitate and meet the economy’s demands for banking products and services, continue to affirm its position as the leading bank in the banking system and contribute to building a thriving and prosperous country.

On behalf of the Board of Directors, I would like to extend my sincere thanks to the leadership and more than 26,000 employees for their dedication. In particular I would like to express my deep gratitude to the valued customers, shareholders and partners who have always trusted and accompanied BIDV during the 62 years of development towards a sustainable and prosperous future.

May I wish you continued development and success.

Sincerely,

ON BEHALF OF THE BOARD OF DIRECTORS

Chairman

Phan Duc Tu

BIDV

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