Bank Management

1. Introduction to bank & Main services of bank

1. Introduction to bank

Vietnamese banking system is dominated by the four state-owned banks, which focus on specific segments of the economy and own an estimated percentage of 70-75% share of the bank sector assets. One of that four banks is BIDV. BIDV (Bank for Investment and Development of Vietnam) is a Vietnamese state-owned commercial bank incorporated and registered in the Socialist Republic of Vietnam. BIDV was established on 26 April 1957, known as Bank for Construction of Vietnam. After that, in 1981, the bank was renamed as the Bank for Investment and Construction of Vietnam, and that name was changed again into “Bank for Investment and Development of Vietnam” by the President of the Council of Ministers. In the property development market, BIDV possesses a total exposure of about US$ 176.1 million . Its largest sector exposure belongs to the construction sector in 2005 with about 26% of its loan portfolio overall (Bao T. 2008). Additionally, 4.9% exposure of the bank is contributed to the cement sector (Bao T. 2008). Other than that, the bank tends to make a target on medium and long term project lending to SOEs (Sate-owned enterprises). Historically, major financing projects was mainly given to BIDV for the reason that the bank got most of the problem customers. As a wholesale bank before turning into a commercial bank in 1995, BIDV has focused on retail services to in order to secure long-term sustainable growth in the future. BIDV is aiming to become Vietnam’s leading retail bank in terms of both market share and service quality to meet shareholder expectations over the next five years (2015-2020).

1. Main services of bank

Operating as a universal commercial bank, BIDV provides customers with a full range of financial, monetary, credit, banking and non-banking products and services. Those services contains banking services with both traditional and modern ones, insurance services (insurance, re-insurance all types non-life insurance services), securities (securities brokerage, securities custody, investment consulting business, underwriting, portfolio management), financial investments (investment securities, bonds, stocks...) and finally capital investment in new projects (BIDV’s annual report 2012). As listed above,  besides traditional services which have been the strengths of the bank up to the present, some new services integrating modern technology are added. Those services, including online bill payment, online state budget collection, import-export factoring and an export tax payment guarantee system..., are put on practice in order to maximize customer’s  benefits and meet market demand. Most recently, BIDV has developed a partnership to accept JCB cards at the bank’s ATMs and POS. Moreover, comprehensing the importance of modern technology, BIDV is planning to advance a hi-tech system of ATMs with more services as well as internet, mobile, phone, and SMS banking services including Autobank and a Contact Center that are convenient and easy to use.