BIDV or fully the Joint Stock Commercial Bank for Investment and Development of Vietnam () is a Vietnamese state-owned bank in

Vietnam Vietnam, officially the Socialist Republic of Vietnam (SRV), is a country at the eastern edge of mainland Southeast Asia, with an area of about and a population of over 100 million, making it the world's List of countries and depende ...

. It is the country's biggest bank by assets ($72

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USD The United States dollar (symbol: $; currency code: USD) is the official currency of the United States and several other countries. The Coinage Act of 1792 introduced the U.S. dollar at par with the Spanish silver dollar, divided it int ...

) as of June 2021. According to the

United Nations Development Programme The United Nations Development Programme (UNDP) is a United Nations agency tasked with helping countries eliminate poverty and achieve sustainable economic growth and human development. The UNDP emphasizes on developing local capacity towar ...

report on the 100 largest enterprises in Vietnam, BIDV is in the 4th position after

Agribank AgriBank, part of the US Farm Credit System, serves as a Wholesale banking, wholesale lender and a farm credit bank (FCB) to a 15-state network of local farm credit associations in a district that stretches from Ohio to Wyoming and Minnesota to ...

VNPT Vietnam Posts and Telecommunications Group (), Trade name, operating as its initialism VNPT, is a telecommunications company, owned by the Ministry of Finance (Vietnam), Ministry of Finance, and was once the national post office of Vietnam. Ac ...

, and EVN. BIDV received Asia Risk Magazine's House of the Year Award for being at the forefront of the country's economic development by modernizing its risk management and developing new financial products like energy derivatives hedges.

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

Vietnam Airlines Vietnam Airlines () is the flag carrier of Vietnam. The airline was founded in 1956 and later established as a Government-owned corporation, state-owned enterprise in April 1989. Vietnam Airlines is headquartered in Long Biên district, Hanoi ...

PetroVietnam Petrovietnam (PVN), formally the Vietnam National Industry - Energy Group () and formerly the Vietnam Oil and Gas Group ( or ), is the state-owned national oil, gas and energy industry corporation of Vietnam. Petrovietnam has developed ra ...

, and Vietnam Post and Telecommunication. 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.

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. 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. 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.

Service quality needs improvement

During the

Lunar New Year Lunar New Year is the beginning of a new year based on lunar calendars or, informally, lunisolar calendars. Lunar calendar years begin with a new moon and have a fixed number of lunar months, usually twelve, in contrast to lunisolar calendar ye ...

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. In 2022, BIDV received 4 prestigious awards for banking services for individuals.

References

External links