Annual

Report
2020
LEADER’S
COURAGE
4 Vietcombank
Annual Report 2020
Chapter 1
Vietcombank Profile
5

TABLE OF
CONTENTS

CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5 CHAPTER 6

VIETCOMBANK REPORT OF THE ORGANIZATION AND CORPORATE SUSTAINABLE FINANCIAL

PROFILE BOM AND BOD HUMAN RESOURCES GOVERNANCE DEVELOPMENT REPORT STATEMENTS

Message from 8 Report on financial 50 Organization and Human Resources 86 Corporate governance 98 Overview of Sustainable Development 124 Bank information 149
Chairman and CEO
Shareholder structure 52 Board of Directors 88 Risk management 106 Content of Sustainable Development 128 Report of the Board of Management 151
General Information 12 Changes in shareholders’ equity
Board of Management and 91 Business network 114 Social security activities 134 Independent Auditor’s Report 152
Vietcombank Profile 14 Implementation 54 Division Heads
of projects Typical social security campaigns in 138 Consolidated Balance Sheet 154
Establishment and development history 16 Supervisory board 94 2016-2020 period
Assessment on business 60 Consolidated Statement 157
Services and business network 18 performance in 2020 of Income

10 Notable events of 20 Business Orientation 72 Consolidated Statement 158

Vietcombank in 2020 in 2021 of Cash Flow

Corporate governance model & 26 Assessment by Board of Directors 78 Notes to the Consolidate 160
management structure Financial Statements

Key financial ratios 28

Development strategy 32

2020 Titles and Rewards 34

Annual

06 48 84 96 122 146
Report
PAGE PAGE PAGE PAGE PAGE PAGE 2020
6 Vietcombank
Annual Report 2020
Chapter 1
Vietcombank Profile
7

CHAPTER 1

CONSISTENT VIETCOMBANK
PROFILE
MIND
Message from Chairman and CEO 8

General Information 12

Vietcombank Profile 14

Establishment and development history 16

Services and business network 18

10 Notable events of Vietcombank in 2020 20

Corporate governance model & management structure 26

Key financial ratios 28

Development strategy 32

2020 Titles and Rewards 34

8 Vietcombank
Annual Report 2020
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9

MESSAGE FROM
CHAIRMAN AND CEO

2020 was a year of obstacles and challenges for the Adhering to the Party’s policies, Government’s governing
Thanks to the Party’s appropriate world economy as the COVID-19 outbreak interrupted orientation, and State Bank’s direction, consistent with

policies and the Government’s supply chains, delayed production and business, as
well as decreased consumption. Vietnam was no
the established strategic objective with the highest
effort, responsibility, and determination, Vietcombank
drastic, flexible, and responsive exception, facing even more challenges as a result of has overcome all difficulties and challenges to have a

governance, Vietnam successfully unusually severe natural disasters. Thanks to the Party’s
appropriate policies and the Government’s drastic,
successful 2020 with many impressive results.

accomplished the dual mission flexible, and responsive governance, Vietnam successfully Shift business model to prioritize safety and efficiency

of effectively fighting and accomplished the dual mission of effectively fighting and while reducing operating expenses, actively lead
preventing the pandemic and natural disasters while efforts to support businesses and people affected not
preventing the pandemic and ensuring the major balances, macro stability, social only by the COVID-19 pandemic but also storms and
natural disasters while ensuring security (GDP increased by 2.9% with inflation of 2.3%) subsequent flooding in Central Vietnam via decision to

the major balances, macro

and became a rare bright spot of growth in the world cut fees/interest rates and restructure loan, through an
gloomy economic picture. unprecedented five interest rates reduction campaigns
stability, social security. totaling VND 3,700 billion.
Contributing to the country’s overall achievement, the
banking industry has achieved numerous accomplishments
in governing the monetary policy and banking operations
in the context of complex international financial market:
Liquidity of Credit Institutions is stable; Foreign exchange
market is stable, the exchange rate is governed in a
responsive and flexible manner; Lending interest rate
continues to decrease and is currently at the lowest level
for the last few decades; The growth of credit is suitable
with the governing policy and represents great effort
of the banking industry when the economy’s capital
absorption ability is low. The accomplishments of the
banking industry have made essential contributions to
the macroeconomic stability, inflation management, and
Chairman of the Board of Directors
NGHIEM XUAN THANH maintenance of growth momentum for the economy.
10 Vietcombank
Annual Report 2020
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MESSAGE FROM
CHAIRMAN AND CEO

Highest credit growth (14%) and lowest NPL ratio The above achievements are the result of synchronized,
The entire Vietcombank among credit institutions. With outstanding business consistent strategy orientation, efforts, courage,

network continues to make efficiency, Vietcombank continues to retain its position

as the most profitable bank and the biggest contributor
intelligence, and the unity of the Vietcombank’s Board
of Management and entire officers and employees
make the effort, stay united to the State budget. Vietcombank has also risen to of the bank; the increasingly solid companionship

to overcome those difficulties the top spot in terms of market capitalization on the
Vietnamese stock market (~ USD 17 billion).
and cooperation of millions of valued customers, tens
of thousands of valued shareholders who trust and
and challenges together, seize engage with Vietcombank.

opportunities, and gather all The bank innovated and made breakthroughs in digital
banking operation, successfully launched a new Core As we begin a new development period of 2021-
resources with the highest Banking System – Core Banking Signature, introduced 2025, new socioeconomic and banking operation
sense of responsibility to steer a completely new digital banking service - VCB trends bring not only opportunities but also difficulties

Vietcombank in accomplishing
Digibank, the two most notable banking digitalization and challenges. The entire Vietcombank network
projects in 2020. continues to make effort, stay united to overcome
the “Sail the vast sea” journey. those difficulties and challenges together, seize
The retail banking model has been comprehensively opportunities, and gather all resources with the
transformed with a view to become the number one highest sense of responsibility to steer Vietcombank in
retail bank in Vietnam. accomplishing the “Sail the vast sea” journey.

The Social Security activities was enhanced, affirming

the image of a Green Bank for the community with
nearly VND 400 billion to support the country in
fighting the pandemic, helping people stabilize their Chairman of the Board of Directors Chief Executive Officer
lives after natural disasters, pandemic, making positive NGHIEM XUAN THANH PHAM QUANG DZUNG

contributions to the education, medicine, hanger

eradication and poverty reduction, etc. across the
country.

Chief Executive Officer

PHAM QUANG DZUNG
12 Vietcombank
Annual Report 2020
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13

GENERAL
INFORMATION
TRADING NAME: CERTIFICATE OF BUSINESS REGISTRATION: CHARTER CAPITAL (OWNER’S EQUITY): TICKER SYMBOL: VCB
Name in Vietnamese: Tax code: 0100112437 37.088.774.480.000 VND Par value: VND10,000
NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN NGOẠI Certificate of Business Registration No. 0103024468 issued Number of shares: 3,708,877,448
THƯƠNG VIỆT NAM. by Ha Noi Department of Planning and Investment dated In word: Thirty seven thousand and eighty eight billion,
Name in English: June 02nd, 2008 (first registration) seven hundred and seventy four million, four hundred Address: No. 198 Tran Quang Khai Str., Ly Thai To Ward,
JOINT STOCK COMMERCIAL BANK FOR FOREIGN 13th Amendment issued on January 16th, 2019 and eighty thousand dong Hoan Kiem Dist., Ha Noi, Vietnam
TRADE OF VIET NAM. Phone number: 84 - 24 - 3934 3137
Trading name: VIETCOMBANK Fax: 84 - 24 - 3826 9067
Abbreviated name: VIETCOMBANK Website: www.vietcombank.com.vn

37.089
License of Establishment and Operation CHARTER CAPITAL (VND BILLION)
No. 138/GP-NHNN issued by State Bank of Vietnam,
dated May 23rd, 2008.
14 Vietcombank
Annual Report 2020
Chapter 1
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15

VIETCOMBANK PROFILE

JSC Bank for Foreign Trade

of Vietnam, formerly known
as Bank for Foreign trade of
Vietnam, was established on
April 01st, 1963 from the
Foreign Exchange Bureau
(of the State Bank of Vietnam).

Being the first state commercial bank chosen for pilot of applying advanced technology into the automatic banking In addition, Vietcombank has also developed an Autobank No. 1 in banking industry, No. 2 in Vietnam market, maintaining its
privatization by the Government, Joint Stock Commercial Bank system, products development, e-banking services, based on its system with over 2,500 ATM and more than 60,000 leading position for 5 consecutive years as the bank with the best
for Foreign Trade of Vietnam officially came into operation high technology foundation. The digital transaction space with merchants accepting card payments across the country. The working environment in Vietnam. With great determination and
on June 2nd, 2008 after the successful implementation of the the multi-utility digital banking services provided to retail and banking operations are also supported by a network of 1,249 high dedication, Vietcombank staff has been constantly striving for
equitization plan through initial public offering. On June 30th, commercial customers such as: VCB Digibank, VCB Pay, VCB correspondent banks in 102 countries and territories in the a more and more sustainable Vietcombank with the objectives to
2009, Vietcombank (ticker symbol: VCB) was officially listed on – iB@nking, VCB CashUp, etc. have always been a point of world… firmly keep the position as the leading bank in Vietnam towards
Ho Chi Minh City Stock Exchange. attraction for customers due to its convenience, speed, safety, 2025; to become one of 100 largest banks in Asia; one of 300
efficiency, thereby promoting wider adoption of non-cash Vietcombank’s team of professional employees with solid largest banking and financial corporations in the world; one of
During its 58 years of growth and development, Vietcombank payments. background in banking and finance and a good sense for 1,000 global largest public companies; and to contribute significantly
has contributed significantly to the stability and growth of modern and integrated business environment. Thanks to their to the development of Vietnam.
national economy, upholding the role of a major foreign trade After more than a half-century operating in the market, contribution, Vietcombank remains the primary choice for large
bank in facilitating efficient domestic economic growth as well Vietcombank, one of the biggest commercial banks in Vietnam, corporations, domestic and foreign enterprises as well as millions
as expanding influence within the regional and global financial currently has approximately 600 branches/transaction offices/ individual customers.
community. representative offices/Affiliates both in Vietnam and abroad
including: Head quarter in Hanoi; 116 Branches; 474 transaction Heading towards international standards, Vietcombank has been
Originated as a specialized bank for foreign trade, Vietcombank offices; 04 domestic Subsidiaries (Leasing Company, Securities continuously rated as “Best Bank in Vietnam” by global prestigious
nowadays has become a multiple sector bank, providing Company, Remittance Company, Vietcombank Tower 198); organizations. Vietcombank is also the first and only bank in
customers with a wide range of leading financial services in 03 overseas Subsidiaries (Vinafico Hongkong Company, VCB Vietnam voted among Top 500 world’s leading banks by The
international trade; traditional services such as capital trading, Money Inc., a Subsidiary bank in Laos); 01 Representative Office Banker; the only bank of Vietnam among Top 30 Strongest Banks TOP WORKING ENVIROMENT
capital mobilization, credit, project financing…etc., and modern
banking segment such as forex trading and derivatives, card
in Ho Chi Minh City; 01 Representative Office in Singapore,
01 Representative Office in the USA; 03 Non-business units:
in Asia – Pacific region according to The Asian Banker rankings;
and the only representative of Vietnam among the Forbes’ Top 01 IN BANKING INDUSTRY

services, e-banking and so on… Human Resources Development and Training School; 01 Cash 1,000 The World’s Largest Public Companies at the rank of 937. In
Treatment Center in Hanoi, and 01 Cash Treatment Center in 2020, in the list of “100 Vietnam best places to work” (announced
TOP STRONGEST BANKS IN

30
Owning the modern banking technical infrastructure with the HCMC; 03 joint ventures and associates. Vietcombank currently by Anphabe – a pioneer in consulting employer branding solutions
ASIA – PACIFIC REGION
successful transformation of the core banking system (Core employs over 20,000 people. and happy working environment in Vietnam and Intage - a leading
Banking) in the early 2020, Vietcombank has many advantages market research company in Japan), Vietcombank was ranked the
16 Vietcombank
Annual Report 2020
Chapter 1
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17

ESTABLISHMENT AND
DEVELOPMENT HISTORY
2020
The Joint Stock Commercial Bank for 2019 Best bank in Vietnam

Foreign Trade of Viet Nam is the most 2018 The only bank of Retaining the No. 1 position in banking industry

established and prestigious bank in 2013 Celebrating 55th

Vietnam in the list of
1,000 global public
in terms of quality and operating performance

Vietnam. Launching a new

anniversary of companies Pioneering in implementing the Policies of the

2011
establishment,
brand identity Government and the State Bank of Vietnam;
affirming the position Opening effectively supporting people and businesses
2009 Signing a strategic
of No. 1 bank in
Vietnam in terms
Representative Office
in New York – USA
affected by the Covid-19

2007 Officially listed on

shareholders
agreement with
of profit, business
efficiency, and many
(as approved by the Approved to establish a banking branch in

1990
Federal Reserve Australia (in accordance with the approval
Ho Chi Minh City Mizuho Corporate
Pioneering in aspects of operation Board)
Stock Exchange decision of the Prime Minister on August 18th,

1963
Bank Ltd., (Japan)
piloting equitization 2020)
Officially in accordance with Establishing a
transforming into the Government’s subsidiary bank
Established on April state commercial in Laos
policy, succeeded in
01st, 1963, known bank initial public offering
as Bank for Foreign
Trade of Vietnam
span off from the
Foreign Exchange
Bureau of the State
Bank of Vietnam
18 Vietcombank
Annual Report 2020
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SERVICES AND
BUSINESS NETWORK
BANKING SERVICES BRANCH NETWORK COVERAGE As at December 31st, 2020, Vietcombank has 116 Branches with
474 transaction offices operating in 56/63 provinces and cities
across the country: 26 branches in the North (22.4%); 15 branches
Deposits; Settlement and banknotes;
in Hanoi (12.9%); 15 branches in Northern-Central (12.9%); 13
Loans; Foreign exchange in domestic and international branches in the Southern-Central and Highland Regions (11.2%);
markets in accordance with relevant regulations; 18 branches in Ho Chi Minh City (15.6%); 14 branches in Eastern-
Discounting, re-discounting of Southern Region (12.1%); and 15 branches in the Western-Southern
bills and other valuable papers; Correspondent banking;
Region (12.9%).
Guarantees; Commodity price derivatives within the scope
prescribed by the State Bank of Vietnam; Vietcombank maintains correspondent relationships of 1,249
Domestic and foreign factoring; correspondent banks in 102 countries and territories worldwide.
Other services as per the bank’s Business Registration.
Credit cards;
HANOI

116 56/63
Other forms of credit grant in
accordance with legal regulations;

BRANCHES PROVINCES AND CITIES

474
TRANSACTION
1.249
CORRESPONDENT
OFFICES BANKS

HOÀNG SA
15
BRANCHES IN HANOI

18
BRANCHES IN
HO CHI MINH CITY

HO CHI MINH CITY

TRƯỜNG SA
20 Vietcombank
Annual Report 2020
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21

10 NOTABLE EVENTS 02
With a proactive and determined spirit in joining hands to support people and businesses
directly and indirectly affected by the COVID-19 pandemic, floods and storms in the

OF VIETCOMBANK IN 2020
Central provinces, Vietcombank implemented various solutions to help customers such
as waiver and reduction of interest, fees; restructuring repayment due; rolling out
new loan schemes to help customers recover their production and business activities;
Pioneering in reducing
implementing credit facilities with reasonable interest rates to assist customers.
interest rates and fees to
support businesses and In 2020, Vietcombank offered 5 interest rate reductions, in which 4 to support businesses
In 2020, the The banking industry was no exception. During that difficult time, responding to people with record times and people affected by the COVID-19 pandemic and 1 to aid businesses and people in 10
the call of the General Secretary, the President, and direction of the Government, and amount of reduction
outbreak of
Central provinces impacted by floods and storms so as to help reduce the difficulties for
the State Bank of Vietnam, and the Party Committee of Central Enterprises’ Bloc, customers with a total amount of reduced interest of up to VND 3,700 billion.

COVID-19
Vietcombank made every effort and commitment to successfully fulfill the “dual
missions”, which was to ensure the continuous, safe, effective business activities;

pandemic on a while cooperating with the whole country in drastically preventing and fighting the
pandemic and sharing, accompanying with businesses and customers to overcome
global scale had the difficulties, contributing to the quick and stable recovery, economic and social

significant impact
development of the country under the new normal.

on every aspect Below are 10 notable events of Vietcombank in 2020 – the bright sports in a year
full of hardship.
of the economic
and social life in
the country.

01
Vietcombank has officially provided services in the new Core Banking system since
January 27th, 2020 (3rd day of the Lunar New Year of the Mouse). The implementation
of the new Core Banking system plays a crucial role for Vietcombank, enabling the
diversification in products and services provided to customers, particularly products and
03 At the end of 2020, Vietcombank’s outstanding loans reached VND 845,1128 billion,
increasing by 14% compared to 2019, fulfilling 103.6% of the annual plan, in which
there were fields of remarkable growth such as: Retail credit with high growth, reached
20.4%. loan disbursement at transaction office increased by 25.3% compared to the end

Successfully launching services on digital platform. Highest credit growth of 2019. FDI outstanding loans rose by 16.7% compared to the end of 2019.

the new Core Banking within banking industry

Also in 2020, Vietcombank put into operation many new hi-tech systems such as: With the growth scale of over VND 100,000 billion of outstanding loans in 2020,
System – Core Banking Multi-dimensional Profitability Analysis (MPA), Human resources management (HCM), Vietcombank achieved the highest credit growth within the banking industry.
Signature, implementing etc. and launched many transformation projects, applying modern technology to improve
many high technology the operation and management capacity in accordance with international best practices
projects to improve the such as Treasury, ALM.FTP, IFRS9, PCM, etc.
operating and governing
capacity in accordance OUTSTANDING LOANS REACH
with international best
practices 845.128 VND BILLION

UP 14% AGAINST 2019

22 Vietcombank
Annual Report 2020
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04 06
Effective risk management has allowed Vietcombank to maintain a notably low NPL Overcoming countless difficulties and challenges, Vietcombank’s business operations still
ratio for many years. At the end of 2020, the NPL ratio was only 0.62%. This result ensured the safety, efficiency and became a bright spot in the entire banking industry.
continued to enable Vietcombank to be the credit institution with the lowest NPL ratio In addition to positive credit growth while still ensuring credit quality and low NPL ratio,
and best asset quality among all Vietnamese credit institutions. the growth momentum of other operating aspects was remained:

Bank of the best credit Securing the position of

Meanwhile, Vietcombank is also the bank with the highest loan loss reserve ratio • T
otal assets exceeded VND 1.3 million billion, increasing by 8.5% compared to 2019.
quality with the lowest NPL among the credit institutions with the ratio of approximately 380%, which means that
outstanding bank in terms • Deposits of first market reached VND 1,053,354 billion, increasing by 10.9%
ratio in the market every VND 100 of nonperforming loan are covered by VND 380 of reserve. This
of business efficiency, first compared to 2019, fulfilling 104.6% of 2020 plan.
guaranteed the safety, certainty and stable operation for the system against risks and time to become the listed • Recovery of written-off loans reached VND 2,422 billion.
uncertainties of the market. company with the largest • International payment and trade finance turnover reached USD 83 billion, fulfilling 101%
capitalization in stock of 2020 plan, continued to remain the leading position with 15.3% of market share.
market • FX transaction volume reached USD 53.6 billion, fulfilling 102.5% of 2020 plan.
• Card payment and card usage volume reached 100% and 98% of 2020 plan,
respectively.
• Developed 2.85 million new E-banking customers and 1.67 million new individual
TO THE TOP SPOT IN TERMS customers, increasing by 21.8% and 3.1% respectively compared to 2019.

370.000
• Consolidated profit reached over VND 23 trillion, equivalent to 2019 and equivalent
VND BILLION
to USD 1 billion, continued to remain the leading role as the most efficient bank.

MARKET CAPITALIZATION ON THE

With outstanding business efficiency, Vietcombank continues to retain its position as the
VIETNAMESE STOCK MARKET
most profitable bank and the biggest contributor to the State budget. Vietcombank has
also risen to the top spot in terms of market capitalization on the Vietnamese stock
market (~ VND 370 trillion, equivalent to USD 16 billion).

05 With the aim at the No. 1 bank in terms of customer’s satisfaction, providing the most
advanced digital experiences, bringing about convenience and confidence for customers,
Vietcombank had implemented the project of Transforming the Retail Banking business
model (RTOM) to comprehensively transform the retail business, with the throughout
Transforming the orientation to focus on customers, and aim for their satisfactory digital experience and

business model of the engagement.

Retail Banking Division,

On that basis, Vietcombank had reorganized the departments and rearranged the staff
striving to become the No. of the Retail Division in a streamlined, effective manner in line with the functions of
1 Retail Bank in Vietnam each business department. In 2020, many retail products and services were introduced
by Vietcombank to customers.
24 Vietcombank
Annual Report 2020
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07 09
In 2020, Vietcombank officially introduced the completely new a digital banking service, In 2020, Vietcombank organized the program “Educating and updating knowledge
i.e. VCB Digibank, with integrated multi-channel payment developed on the consolidation for key officers in Vietcombank” for the first time with the scale of more than 200
of individual transaction platforms for internet banking and mobile banking, providing trainees as key officers, including member of the Board of Management, Heads of units
seamless and consistent experience to customers on both electronic means and mobile in the Head Quarter and Directors of Branch, subsidiaries that were wholly owned by
devices. Vietcombank is also the bank pioneering in the provision of online payment Vietcombank. The trainees were updated with new knowledge about the global and the
Making breakthrough in solution for services on the National Public Service Portal. Organizing courses to country’s economic situation, the strategy of the banking industry and Vietcombank’s
development strategy until 2025, corporate governance mindset, etc.
digital banking operation, With the breakthrough digitalization innovations in the application of remarkable
educate, train, update
becoming a banking technology achievements to provide customers with modern, quick, convenient, safe, knowledge for the entire Being organized right after the success of Vietcombank’s Party Congress and Party
digitalization model in 2020 and secure payment, Vietcombank was honored as the typical model of banking key officers in Vietcombank, Congress for the Central Enterprises’ Bloc, the course contributed to spread and
digitalization in 2020.
contributing to the boost the faith and positive effect for the entire Vietcombank staff to excellently fulfill
the mission in the new period, working in line with the banking industry in making
development of high-quality positive contributions to the country’s socioeconomic development. The event created
human resources to realize an additional good impression during the innovation of training and scientific research
the strategic objective of activities at Vietcombank over the past few years.

regional and international

integration

08 Towards the 13th National Congress of the Party, Vietcombank’s Party successfully
organized the grassroots-level Party Congress and the VCB’s 4th Party Congress for the
term 2020-2025. This was also the Congress chosen by the Party Committee of the
State-Owned Enterprises’ Bloc for direct election of Secretary for the Congress.
10 In 2020, Vietcombank was continuously highly praised by reputable regional and
international magazines and honored with many prestigious awards.

The bank’s ranking is also improved regionally and globally; i.e. the top 50 best listed
companies in Vietnam, the only Vietnamese representative among top 1,000 global
Successfully holding the Many activities to welcome the Party Congress of all levels were organized, creating a Vietcombank brand was largest public companies (according to Forbes); ranked 403rd (first among all banks in
4th Party Congress for the wide-ranging political activities across the Party Congress. In the activities welcoming the recognized with many Vietnam) in The Banker’s ranking; into Top 2 banks with greatest brand value growth
Party Congress, the writing Contest “Vietcombank’s culture under the light of Ho Chi Minh in the world (according to Brand Finance) and the unit with the greatest brand value in
term 2020-2025; making ideology” and the Camp “Vietcombank’s Youth – Solid faith in the Party” created a deep prestigious awards and Vietnam’s banking industry (according to Forbes Vietnam).
impression in the 3rd Party impression on a variety of party members and had a reputation in welcoming activities of titles in Vietnam and
Congress for State-Owned the Bloc’s Party Congress. abroad Domestically, Vietcombank was honored the National Brand for the 7th time in a
row; honored as the largest bank paying tax and enterprise income tax in Vietnam;
Enterprises’ Bloc for the In the 3rd Party Congress for State-Owned Enterprises’ Bloc, term 2020-2025, awarded the Certificate of Merit “Exemplary Enterprise for Employees” by the Prime
term 2020-2025 Vietcombank’s Chairman was re-elected as a member of the Secretarial Standing Minister; bank with the best working environment in Vietnam for 5 consecutive years;
Committee of the Bloc’s Party for term 2020-2025 and elected into the Delegation to the most reputable bank brand on the media for 3 consecutive years, with many other
attend the 13th National Congress of the Party with a high vote rate. Vietcombank was prestigious awards for products and services for retail banking, digital banking and cards.
also the only unit in the Bloc’s Party Congress to have the Chairman and CEO elected
for the Executive Committee of the Bloc’s Party for the term 2020-2025.
26 Vietcombank
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CORPORATE GOVERNANCE MODEL

& MANAGEMENT STRUCTURE
CORPORATE GOVERNANCE MODEL MANAGEMENT STRUCTURE

SHAREHOLDERS’
SUPERVISORY BOARD
GENERAL
MEETING

INTERNAL AUDIT,
OPERATIONAL SUPERVISORY

RISK MANAGEMENT COMMITTEE, BOARD OF

FINANCIAL SERVICES NON-FINANCIAL HUMAN RESOURCES COMMITTEE, ETC. DIRECTORS
SERVICES

COMMERCIAL INVESTMENT OTHER FINANCIAL REAL ESTATE

BANKING BANKING SERVICES SERVICES

VIETCOMBANK
VIETCOMBANK SECURITIES
VIETCOMBANK
LEASING CO., LTD.
VIETCOMBANK
TOWER 198 BOARD OF
LAOS LIMITED CO., LTD. (VCBS) (VCBL) CO., LTD. MANAGEMENT
100% 100% 100% 70%

VIETCOMBANK - CENTRAL CREDIT COMMITTEE, ALCO, INTERNAL INSPECTION

VIETCOMBANK VIETNAM BONDAY - RISK COMMITTEE, ETC.
FUND MANAGEMENT FINANCE CO. (VFC) BEN THANH JOINT
CO. (VCBF) VENTURE CO., LTD
100% 52%
51%

WHOLESALE RETAIL RISK HUMAN

VCB MONEY VIETCOMBANK TREASURY FINANCE OPERATION SUPPORTING
INC (VCBM) BONDAY CO., LTD. BANKING BANKING ANAGEMENT RESOURCES
DIVISION DIVISION DIVISION DIVISION DIVISION
DIVISION DIVISION DIVISION
DOMESTIC SUBSIDIARIES 87,5% 16%
OVERSEAS SUBSIDIARIES

JOINT VENTURES
BRANCHES
VIETCOMBANK
REMITTANCE
CO., LTD. (VCBR)

100%
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KEY FINANCIAL RATIOS

Unit: billion VND, %

2016 2017 2018 2019 2020

TOTAL ASSETS (VND BILLION)

KEY BUSINESS INDICATORS

2020 1.326.230

Total assets 787.935 1.035.293 1.074.027 1.222.814 1.326.230

2019 1.222.814

Shareholders’ equity 48.102 52.558 62.179 80.954 94.095

2018 1.074.027

Total deposits/Total assets ratio 58,5% 52,5% 58,8% 60,1% 63,3%

2017 1.035.293

1.326.230
Non-interest income 6.352 7.469 10.870 11.156 12.777
2016 787.935
(VND BILLION)
Total operating income 24.886 29.406 39.278 45.693 49.063

Total operating expense (9.950) (11.866) (13.611) (15.875) (16.038)

Net operating income before

14.929 17.540 25.667 29.819 33.024 SHAREHOLDERS’ EQUITY (VND BILLION)
loan loss provision

2020 94.095
Loan loss provision (6.406) (6.198) (7.398) (6.607) (9.975)

Profit before tax 8.523 11.341 18.269 23.212 23.050 2019 80.954

Corporate income tax (1.672) (2.231) (3.647) (4.614) (4.577) 2018 62.179

Profit after tax 6.851 9.111 14.622 18.597 18.473 2017 52.558

Net profit 6.832 9.091 14.606 18.582 18.451 2016 48.102 94.095
(VND BILLION)
KEY PROFITABILITY AND RISK INDICATORS

KEY PROFITABILITY RATIOS

TOTAL OPERATING INCOME (VND BILLION)

NIM 2,63% 2,66% 2,94% 3,10% 3,11%

2020 49.063
ROAE 14,69% 18,09% 25,49% 25,99% 21,11%

ROAA 0,94% 1,00% 1,39% 1,62% 1,45% 2019 45.693

KEY RISK INDICATORS 2018 39.278

Loans (including corporate bonds)/Deposits ratio 76,71% 76,74% 77,68% 78,05% 80,23% 2017 29.406

Non-Performing Loan ratio 1,46% 1,11% 0,97% 0,78% 0,62% 2016 24.886 49.063
(VND BILLION)
30 Vietcombank
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KEY FINANCIAL RATIOS

TOTAL OPERATING EXPENSE (VND BILLION) NON-INTEREST INCOME (VND BILLION)

2020 33.024 2020 12.777

2019 29.819 2019 11.156

2018 25.667 2018 10.870

2017 17.540 2017 7.469

2016 14.929 33.024

(VND BILLION)
2016 6.352 12.777
(VND BILLION)

PROFIT BEFORE TAX (VND BILLION) ROAE (%)

2020 23.050 2020 21,11

2019 23.212 2019 25,99

2018 18.269 2018 25,49

2017 11.341 2017 18,09

2016 8.523 23.050

(VND BILLION)
2016 14,69 21,11 %

PROFIT AFTER TAX (VND BILLION) ROAA (%)

2020 18.473 2020 1,45

2019 18.597 2019 1,62

2018 14.622 2018 1,39

2017 9.111 2017 1,00

2016 6.851 18.473

(VND BILLION)
2016 0,94 1,45 %
32 Vietcombank
Annual Report 2020
Chapter 1
Vietcombank Profile
33

DEVELOPMENT STRATEGY

VISION No. 1 bank in Vietnam, one of the

TOWARDS 2030
100 largest banks in Asia, one of
the 300 world’s largest financial and
banking corporations, one of the
1000 world’s largest listed companies
contributing to the development of
Vietnam.

STRATEGIC OBJECTIVES
TOWARDS 2025

1 2
NO. 1 BANK IN PROFITABILITY AND NO. 1 BANK IN
NON-INTEREST INCOME CUSTOMER’S EXPERIENCE

3 4
NO. 1 IN RETAIL AND NO. 1 BANK IN QUALITY OF
INVESTMENT BANKING HUMAN RESOURCES

5 6
NO. 1 IN DIGITAL BANKING MOST EFFECTIVE BANK
IN RISK MANAGEMENT
34 Vietcombank
Annual Report 2020
Chapter 1
Vietcombank Profile
35

2020 TITLES
AND REWARDS

VIETCOMBANK IS In 2020, Vietcombank continued to be highly recognized by reputable regional and

international magazines and honored in many prestigious awards, the bank’s ranking
CONFIDENT TO
was also raised in the region and the world, ranked 937th in the list of global largest
SAIL THE VAST SEA listed companies (according to Forbes); ranked 403rd (first among banks in Vietnam)
in The Banker’s ranking.

Vietcombank is currently the most

operational efficient bank in
Vietnam’s banking industry with
continuous breakthrough in profit
over the years. It is also the first
bank of Vietnam to reach the
profit of USD 1 billion and among
Top 200 world’s most profitable
financial and banking groups.

RANKED RANKED

937th 403rd
WORLD’S LARGEST (FIRST AMONG BANKS OF
LISTED COMPANIES VIETNAM)

ACCORDING TO FORBES ACCORDING TO THE BANKER

36 Vietcombank
Annual Report 2020
Chapter 1
Vietcombank Profile
37

DOMESTIC AWARDS

In November 2020, in Hanoi, the National Branding Council, Ministry of Industry and In October 2020, Vietnam General Confederation of Labor cooperated with the
Tradeheld the 2020 National Branding Programme Announcement Ceremony. Ministry of Labor, Invalids and Social Affairs and Vietnam Chamber of Commerce and
Industry in holding the Award Ceremony of “Exemplary Enterprise for Employees” for
The programme was held for the 7th time in 2020 from the first selection in 2008. This the 2nd time.
THE ONLY BANK TO is a specific, long-term, and unique trading promotion programme of the Government AWARDED THE
BE HONORED AS A with 3 values: “Quality – Innovation – Leadership”. Vietcombank is proud to be the only CERTIFICATE OF MERIT The ceremony honored 50 ranked companies in 2019, in which 30 companies were
NATIONAL BRAND FOR 7 bank honored as a National Brand for 7 consecutive times. “EXEMPLARY ENTERPRISE awarded the Certificate of Merit by the Organizers, 8 companies were proudly awarded
CONSECUTIVE TIMES FOR EMPLOYEES” BY THE and the Certificate for Merit by the Prime Minister. Vietcombank was honorably
As the only bank honored as a National Brand for 7 consecutive times, Vietcombank PRIME MINISTER awarded the Certificate of Merit “Exemplary Enterprise for Employees” by the Prime
had recently made significant breakthroughs in its operational efficiency to become the Minister for twice.
market leader in terms of profitability, making tremendous contributions to the State
budget and actively participating in the socioeconomic development. Over the years, Vietcombank has constantly been honored “Enterprise for Employees”,
“Enterprise for Employees Award” and “Typical Enterprise for Employees”; honorably
received the Prime Minister’s Certificate of Merit for twice.
38 Vietcombank
Annual Report 2020
Chapter 1
Vietcombank Profile
39

DOMESTIC AWARDS

In October 2020, the General Department of Taxation held aceremony to honor

TOP In October 2020, Forbes Vietnam held a Ceremony to honor 50 best public companies

50
taxpayers and announced the launch of of 479-channel system providing information in Vietnam in 2020. This was the 8th time since Forbes Vietnam held this list to select
on the tax payment procedure via the electronic portal Etax. and honor the best companies in the stock market. Vietcombank was honored as the
LARGEST TAX PAYING company that was still able to secure its position in the list of 50 best public companies

BANK IN VIETNAM In 2020, Vietcombank was proudly among the group of 30 companies withrepresentative
AMONG THE TOP 50 BEST
by Forbes Vietnam for 8 years.
and excellent performance in the adherence to the law on Taxation and compliance
with the obligations to pay tax to the State Budget, honored by the Ministry of Finance LISTED COMPANIES IN As assessed by Forbes Vietnam: In 2020, Vietcombank ranked 937th, the highest ranking
and awarded the Certificate of Merit in the ceremony. VIETNAM BY FORBES FOR 8 ever, in the list of Global 2,000 (2,000 largest companies in the world) – the rankings
CONSECUTIVE YEARS were based on the revenue, profit, capitalization, and assets. There are 4 Vietnamese
With outstanding business performance, Vietcombank is always the commercial companies in the list with 3 banks among which Vietcombank ranked No. 1.
bank making the most contribution to the State Budget. In the period of 2015-2019,
Vietcombank had contributed to the State Budget over VND 30,700 billion, in which
the total amount of tax and fee was over VND 19 trillion, total dividends paid to the
State shareholders were more than VND 10,700 billion.
40 Vietcombank
Annual Report 2020
Chapter 1
Vietcombank Profile
41

DOMESTIC AWARDS

TOP In October 2020, in Hanoi, the Announcement of Top 500 Most Profitable Companies In August 2020, Forbes Vietnam announced the list of 50 leading brands in business

50
in Vietnam (PROFIT500) 2020 was held by Vietnam Report JSC in collaboration of sectors in Vietnam in 2020. Accordingly, Vietcombank was the bank with the greatest
VietNamNet - Ministry of Information and Communications. brand value with USD 251 million and also the only bank among top 10.

GREATEST BRAND VALUE

2020 was the fourth consecutive year in which the PROFIT500 rankings were There were 6 banks in this list, in which, Vietcombank had the greatest brand value and
LEADING BANK IN TOP announced and the first year in which the list of Top 50 best profitable companies in
IN BANKING INDUSTRY was the only bank among Top 10. According to Forbes, 10 leading brands accounted
50 MOST PROFITABLE Vietnam (Vietnam Best Profitable) was announced. Vietcombank was honored as the for 60% of the total value of the list by value.
COMPANIES IN VIETNAM leader among banks in Vietnam in Top 50 best profitable companies in Vietnam.

In September 2020, Top 10 prestigious companies in key industries including banking

industry was announced by Vietnam Report JSC in collaboration with Vietnamnet
electronic newspapers. 2020 was the third consecutive year when Vietcombank was
honored as the leader in Top 10 prestigious commercial banks in Vietnam. Vietcombank
LEADER IN TOP 10 MOST was also the only company to represent the banking industry among Top 10 prestigious
PRESTIGIOUS COMMERCIAL public companies in 2020. All of the companies honored in Top 10 prestigious companies
2020 were companies with efficient operations, solid position in the industry, making
BANKS IN VIETNAM 2020
significant contributions to the overall development of the economy and the brands
trusted by many people in Vietnamese market in recent years.
42 Vietcombank
Annual Report 2020
Chapter 1
Vietcombank Profile
43

INTERNATIONAL AWARDS

TOP
5
In February 2020, the world-leading brand valuation consultant (Brand Finance) In October 2020, the survey “100 best places to work in Vietnam 2020” was

2
announced the 500 greatest banking brand ranking in the world (Brand Finance announced by Anphabe – a pioneer consultant in branding solutions and happy working
Banking 500). There were 9 Vietnamese banks named in the rankings, in which there environment in Vietnam and Intage - a leading market research company in Japan.
NĂM
were 5 new names compared to 2019.
Vietcombank continued to affirm its position as the bank with the most attractive
BANK WITH GREATEST According to Brand Finance, while the European region saw a decline in the rankings,
CONTINOUSLY HONORED working environment when ranking No. 1 in the banking industry and No. 2 in the
GROWTH IN BRAND there was an increase in the Asian group, mostly thanks to Vietnam. ‘The market with AS THE BANK WITH BEST entire Vietnamese job market and among Top 50 Vietnamese enterprises with most
VALUE IN THE WORLD the greatest growth in brand value is Vietnam with the increase of 146%. In which, WORKING ENVIRONMENT attractive employer brand.
Vietcombank increases by 99%, reaching USD 0.8 USD, the second highest growth by IN VIETNAM
percentage in the world”, announced by Brand Finance. With this year’s survey result, Vietcombank remained its leading position for 5 consecutive
years as the bank with the best working environment in Vietnam.
With the above impressive growth, the ranking of Vietcombank in the Brand Finance
Banking 500 rocketed from 325th (in 2019) to 207th (in 2020).
44 Vietcombank
Annual Report 2020
Chapter 1
Vietcombank Profile
45

INTERNATIONAL AWARDS

3
TOP In May 2020, Vietcombank was named in “The World’s Largest Public Companies 2020” In June 2020, with the distinguished performance in retail banking , Vietcombank excellently

1.000
Rankings by Forbes with the leading position among Vietnamese companies honored in received 03 awards of “Best Retail Bank in Vietnam”, “Best Credit Card in Vietnam” for
the rankings with the ranking of 937th, up 159 places compared to 2019. Vietcombank Visa Signature card and “Best Mobile Banking Application in Vietnam” within
the framework of Retail Finance Awards 2020 by The Asian Banker.
According to the statistics from 2015 to present, Vietcombank’s ranking has been significantly
THE ONLY VIETNAMESE improved 1985th to 937th, among Top 1,000 world’s largest public companies by Forbes. 3 PRESTIGIOUS This was the first time that a Vietnamese commercial bank was honored with three
REPRESENTATIVE AMONG According to “The World’s Largest Public Companies 2020” by Forbes, Vietcombank was NTERNATIONAL AWARDS most important awards in retail banking business of The Asian Banker – one of the most
TOP 1,000 WORLD’S the only Vietnamese representative among Top 1,000 world’s largest public companies. FOR RETAIL BANKING prestigious assessment and ranking organization in the financial industry in Asia and the
LARGEST PUBLIC world.
COMPANIES BY FORBES In 2019, Vietcombank’s profit reached VND 23,155 billion, increasing by 24% compared
to 2018, considerably exceeding the 12% target set out in the plan. With the profit of Vietcombank received the award “Best Retail Bank in Vietnam” 2020 based on the
approximately USD 1 billion, Vietcombank was among Top 200 world’s financial and exceptional business performance of its retail banking unit. The revenue from the retail
banking groups with the highest profit. Vietcombank is currently the first bank in Vietnam banking unit also brought about VND 19,300 billion to Vietcombank, the highest revenue in
to have the total assets of USD 50 billion and highest capitalization among the financial retail banking achieved by a Vietnamese bank till present. In 2019, Vietcombank introduced
institutions listed in Vietnamese stock market. Vietcombank is currently employing over the international Visa Signature credit card for Vietcombank Priority customers, which helps
18,000 employees with an operating network all over the country including Head Quarter to enhance the engagement for high end customers. The Asian Banker highly appreciated
in Hanoi and nearly 600 Branches and Transaction Offices nationwide. the Vietcombank Visa Signature card for the impressive result in both card issuance and
usage.
The bank’s strategic objectives towards 2025 and visions towards 2030 are to secure the
No. 1 position in Vietnam, among 100 largest banks in Asia, one of 300 largest financial Since the end of 2012, Vietcombank has been the first bank in the market to provide
and banking groups in the world, one of 1,000 global largest public companies, making Mobile banking service for application with the brand of VCB-Mobile B@nking – considered
considerable contributions to the development of Vietnam. as a mini bank on the phone. Today, VCB-Mobile B@nking continues to be the leading
reputable and favorite mobile banking application in Vietnam.

THE LIST: 2020 GLOBAL 2000

SEARCH BY COUNTRY/TERRITORY SEARCH BY NAME

Vietnam

Rank Company Country/Territory Sales Protits Assets Market Value

937 Joint Stock Commercial Bank for Foreign Trade Vietnam $3.7 B $773.8 M $48.5 B $10.8 B
Of Vietnam

1448 Commercial Bank For Investment & Development Vietnam $5.1 B $367.7 M $64.3 B $6.1 B
Of Vietnam

1534 Vingroup Vietnam $5.6 B $323.2 M $17.4 B $13.3 B

1595 Vietinbank Vietnam $4.1 B $407.3 M $53..5 B $3.2 B

46 Vietcombank
Annual Report 2020
Chapter 1
Vietcombank Profile
47

INTERNATIONAL AWARDS

Recognition of overseas
banks for Vietcombank
in 2020

Banks Awards

Wells Fargo Bank, N.A. Excellent International Payment Quality Award 2019-2020

• Excellent International Payment Quality for MT103 STP

• of >99% Award
J.P.Morgan Chase Bank, N.A.
• Excellent International Payment Quality for MT202 STP
• of >98% Award

The Bank of New York Mellon Excellent International Payment Quality Award

Citibank, N.A. Excellent International Payment Quality Award 2020

HSBC Bank Plc Excellent International Payment Quality for STP of >99% Award

Standard Chartered Bank Plc Excellent International Payment Quality Award 2020
48 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
49

CHAPTER 2

TARGETED REPORT OF THE

BOM AND BOD
MILESTONES
Report on financial 50

Shareholder structure 52
Changes in shareholders’ equity

Implementation of projects 54

Assessment on business performance in 2020 60

Business Orientation 72
in 2021

Assessment by Board of Directors 78

50 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
51

REPORT ON FINANCIAL

1. TABLE OF VCB’S FINANCIAL INDICATORS Unit: VND billion TOTAL ASSETS Unit: VND billion

Financial Indicators 2019 2020

0 200.000 400.000 600.000 800.000 1.000.000 1.200.000 1.400.000
A FINANCIAL INDICATORS     

1 Total assets 1.222.814 1.326.230 2019 1.222.814

Growth rate

8.45%
2 Revenue 88.339 90.936
2020 1.326.230
3 Taxes and other 6.751 6.470
payable items

4 Profit before tax 23.212 23.050

5 Profit after tax 18.597 18.473

B KEY FINANCIAL INDICATORS REVENUE Unit: VND billion

1 Capital

1.1 Charter capital 37.089 37.089 0 20.000 40.000 60.000 80.000 100.000

1.2 Total assets 1.222.814 1.326.230

2019 88.339
Growth rate

2.93%
1.3 Capital adequacy ratio 9,34% 9,56%

2 Business results     2020 90.936

2.1 Deposits 17.486.521 18.910.197

2.2 Loans 1.718.858 1.671.143

2.3 Debt collection 1.617.310 1.567.035

NON-PERFORMING LOANS/TOTAL OUTSTANDING LOANS IN 1ST MARKET Unit: %
2.4 Non-performing loans 5.370 5.230

2.5 Loans/Total deposits in 78,05% 80,23%

1st market (in VND) 0 0,20 0,40 0,60 0,80

2.6 Non-performing loans/Total outstanding loans in 1st market 0,72% 0,62%

2019 0,72%
3 Liquidity     Reduce

3.1 Liquidity reserve ratio 22,0% 19,2% 2020 0,62% 13,89%

3.2 Liquidity ratio within 30 days by currency    

  VND 86,9% 83,8%

  Foreign currencies in USD equivalent 96,6% 79,7%

52 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
53

SHAREHOLDER STRUCTURE
CHANGES IN SHAREHOLDERS’ EQUITY Other shareholders

10.2
1. SHAREHOLDERS 3. SHAREHOLDER STRUCTURE
Mizuho Bank Ltd 15% 74.8%

3.708.877.448 24.515
TOTAL SHARES NUMBER OF SHAREHOLDERS

State Bank of Vietnam

Number of transferable Number of restricted Number of

Total shares Type of shares No. Shareholders Total shares Ownership rate
shares shares shareholders

3.708.877.448 Ordinary shares 378.103.902 3.330.773.546 State Bank of Vietnam

I 2.774.353.387 74,8% 1
(Representative of Government’s shares)

II Foreign strategic shareholder Mizuho Bank, Ltd. 556.334.933 15,00% 1

2. LIST OF SHAREHOLDERS HOLDING RESTRICTED SHARES III Other shareholders 378.189.128 10,2% 24.513

1 Domestic individual shareholders 26.109.735 0,70% 23.004

Number of restricted
No. Shareholders Total shares Restricted period
shares
2 Domestic organization shareholders 28.116.018 0,76% 151
1 State Bank of Vietnam 2.774.353.387 2.774.353.387 According to the provisions of
(Representative for the Clause 1, Article 56, Law on 3 Foreign individual shareholders 2.132.851 0,06% 1130
Government’s shares) Credit Institutions No. 47/2010/
QH12: “Individuals and institutional
shareholders who have 4 Foreign organization shareholders 321.830.524 8.68% 228
2 Internal shareholders 80.177 80.177 representative(s) being member of
the Board of Directors, Supervisory
Total 3.708.877.448 100,00% 24.515
Board, CEO (General Director) of
Board of Directors 71.590 71.590
the credit institutions shall not be
allowed to transfer his/ her shares
Supervisory Board 8.587 8.587 during his/ her terms”.
4. LIST OF MAJOR SHAREHOLDERS
3 Foreign strategic shareholder: 556.334.933 556.334.933
Mizuho Bank, Ltd.
No. Shareholders Address Total shares Ownership rate
Total 3.330.773.546 3.330.773.546
47-49 Ly Thai To Street, Hoan
1 STATE BANK OF VIETNAM 2.774.353.387 74.8%
Kiem District, Ha Noi City

1-5-5 Otemachi, Chiyoda-ku,

• According to Decision No. 2526/QĐ-NHNN dated December 5th, 2014 issued by the State Bank of Vietnam on the appointment 2 MIZUHO BANK. LTD 556.334.933 15,00%
Tokyo, Japan
of representatives for the Government’s shares at Vietcombank, Mr. Nghiem Xuan Thanh - Chairman of Vietcombank Board
of Directors - represents 40% of Government’s shares, Mr. Pham Quang Dzung - Member of Board of Directors, CEO of
Vietcombank - represents 30% of Government’s shares.

• According to Decision No. 909/QD-NHNN dated April 26th, 2019 of the State Bank of Vietnam on official transfer, Mr. Do Viet
Hung was appointed to represent 30% of Government’s shares at Vietcombank. (Source: Shareholders list as at December 31st, 2019 provided by Vietnam Securities Depository).
54 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
55

IMPLEMENTATION
OF PROJECTS
1. INVESTMENTS/DIVESTMENTS IN 2020

In 2020, VCB wholly divested its investment capital from Vietcombank Cardif Life Insurance Co., Ltd., particularly:

Unit: VND billion

Investment Investment
No. Name of Unit capital as of capital as of Divestments
31/12/2020 31/12/2019

1 Vietcombank Cardif Life Insurance Co., Ltd., 0 270 270

2. SUBSIDIARIES, JOINT-VENTURES AND ASSOCIATES

General information of subsidiaries

Unit: VND billion

Capital
Abbreviation investment Ownership
Company name Business license Sector
name as of rate
31/12/2020

Business license No. 09/GPHDKD dated

April 24th, 2002. Latest amendment in
Vietcombank
VCBS accordance with license No. 63/GPDCUBCK Securities 700,00 100%
Securities Co., Ltd.
dated December 29th, 2017 issued by State
Security Commission of Vietnam.

Vietcombank Business license No. 66/GPNHNN dated October Financial

VCBL 500,00 100%
Leasing Co., Ltd. 31st, 2017 issued by State Bank of Vietnam. leasing

Enterprise registration certificate No.

Vietcombank
0314633162 dated 20th September 2017 Remittance
Remittance Co., VCBR 30,00 100%
issued by Ho Chi Minh City Department of payment
Ltd.
Planning and Investment.

Vietcombank Business license No. 88/BOL dated May

VCB Laos Bank 1.820,40 100%
Laos Limited 25th, 2018 issued by Bank of the Lao P.D.R.

Business license No. 58327 issued by Hong

Vietnam Financial
VFC Kong Monetary Authority dated February 10th, 116,90 100%
Finance Co. services
1978.

Business license No. E0321392009_6 issued

Remittance
VCB Money Inc VCBM by Nevada State Government (United States) 204,98 87,5%
services
dated June 15th, 2009.

Business license No. 1578/GP dated May 30th,

Vietcombank
1996. Latest amendment dated January 30th, Office
Tower 198 Co., VCBT 70,00 70%
2019 issued by the Ministry of Planning and leasing
Ltd.
Investment.
56 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
57

IMPLEMENTATION
OF PROJECTS

Summary of subsidiaries’ performance and financial situation

VCBL VCBS VCB LAOS VCBM

Vietcombank Vietcomank Vietcombank VCB Money Inc.
Leasing Co., Ltd. Securities Co., Ltd. Laos Limited

VCBL is a subsidiary, 100% owned by Vietcombank, operating in VCBS is 100% owned by Vietcombank, operating in the securities VCB Laos is a subsidiary 100% owned by Vietcombank, operating VCBM is a subsidiary with 87.5% of charter capital owned
the field of financial leasing. Profit before tax in 2020 reached sector. Despite numerous fluctuations in securities market, the in the field of financial & banking services in Laos. The company by Vietcombank, providing remittance services in the U.S and
VND 123.14 billion, exceeding 7% of the plan. Outstanding Company continued to maintain good operating results. Profit was officially put into operation from July 2018. In 2020, VCB transferring money to Vietnam through domestic partners.
financial leasing of VCBL until end of 2020 reached VND before tax of the company in 2020 reached VND 323.70 billion, Laos gained good operational efficiency with the profit before In 2020, VCBM maintained its stable performance. The
4,436.5 billion. exceeding 13.8% of the assigned plan. tax of VND 37.87 billion. Company’s profit before tax in 2020 reached VND 11.25
billion, exceeding 111% of the assigned plan.

PROFIT BEFORE TAX PROFIT BEFORE TAX PROFIT BEFORE TAX PROFIT BEFORE TAX

123,14 VND BILLION

323,70 VND BILLION
37,87 VND BILLION
11,25 VND BILLION

VFC VCBR VCBT

Vietnam Vietcombank Vietcombank Tower 198 Co., Ltd.
Finance Co. Remittance Co., Ltd.

VFC is a subsidiary 100% owned by Vietcombank, operating VCBR is a wholly-owned subsidiary of Vietcombank, operating Vietcombank and FELS Property Holdings Pte, Ltd. of Singapore. with the leasing rate of 100%, its profit before tax reached VND
in the field of financial services in Hong Kong. Its major in the field of receiving remittances from foreign partners and It operates in the field of office leasing at Vietcombank Tower 76.72 billion, exceeding 14% of the assigned plan.
services include deposit, credit, payment, money transferring. making payments to beneficiaries in Vietnam. The Company’s locating at the address of No. 198 Tran Quang Khai, Hoan
The revenue from major operations reached VND 16.2 billion. profit before tax in 2020 reached VND 6.92 billion, exceeding Kiem, Ha Noi. In 2020, with the advantage of good location
139% of the assigned plan. and customers, the company maintained stable performance

PROFIT BEFORE TAX PROFIT BEFORE TAX PROFIT BEFORE TAX

16,2 VND BILLION

6,92 VND BILLION
76,72 VND BILLION
58 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
59

IMPLEMENTATION
OF PROJECTS
General information of joint-ventures and associates Summary of joint-ventures and associates’ performance and financial situation

Unit: VND billion

VCBF VCBB
Capital
Abbreviation investment Ownership
Company name Business license Sector
name as of rate
31/12/2020

No. 2458/GP issued by the Ministry of Vietcombank Vietcombank

Vietcombank -
Planning and Investment on February 07th, Office Fund Management Co. Bonday Co., Ltd.
Bonday - Ben Thanh VBB 410,36 52%
2005 with latest amendment No. 2458/ leasing
Joint Venture Co., Ltd.
GCNDC2/41/1 dated December 28th, 2012.
VCBF is a joint venture between Vietcombank and Franklin VCBB is a joint venture between Vietcombank, Sai Gon Real
No. 06/UBCK-GPHĐQLQ issued by State Templeton with contribution ratio of 51% and 49% respectively. Estate Corporation and Bonday Investments Ltd., Hong Kong. It
Vietcombank Fund Security Commission of Vietnam dated Fund VCBF operates in the field of fund and investment portfolio operates in the business of office leasing - The Harbour View
VCBF 135,15 51%
Management Co. December 02nd, 2005; latest amendment No. management management. Tower locating at No. 35 Nguyen Hue Str., District 1, Ho Chi
17/GPĐC-UBCK dated February 09th, 2018. Minh City.
The profit before tax reached VND 23.92 billion, exceeding
No. 283/GP issued by the Ministry of 23.9% of the plan. In 2020, the Company still maintained its stable performance, its
Vietcombank Planning and Investment on December Office profit before tax reached VND 41.65 billion, fulfilling 99% of the plan.
VCBB 11,11 16%
Bonday Co., Ltd. 5th, 1991 with latest amendment No. 283/ leasing
GPĐC4 dated March 4th, 2002. PROFIT BEFORE TAX PROFIT BEFORE TAX

23,92 (VND BILLION)

41,65 (VND BILLION)

VBB
Vietcombank - Bonday - Ben Thanh
Joint Venture Co., Ltd.

VBB is the joint venture between Vietcombank, Ho Chi Minh responsible for providing office space for Vietcombank’s branches
Commercial Services JSC. (Setra Corp.) and Bonday Investments and subsidiaries in HCMC. In the end of 2019, nearly 100% of the
Ltd. (Hong Kong) with contribution ratio of 52%, 18% and 30% leasable area has been occupied. Its profit before tax in 2020 was
respectively. It operates in the field of premium (class A) office VND 194.33 billion, exceeding 30% of the plan.
leasing, locating at No. 5 Me Linh Square, District 1, HCMC. It is also

PROFIT BEFORE TAX

194,33 (VND BILLION)

60 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
61

ASSESSMENT ON BUSINESS
PERFORMANCE IN 2020

Given the unpredictable situations

of the socioeconomic environment,
VCB made every effort to fulfill
the “multiple objectives”: Fighting
Covid-19 pandemic effectively;
Sharing difficulties with customers;
and Developing sustainable
business.

Pioneering in the effective Pioneering in the synchronized and powerful implementation of solutions supporting
implementation of Decree No. 42 businesses, individuals affected by the COVID-19 pandemic and natural disasters via
of the Government and Circular No. packages supporting interest rate, reducing lending interest rate for existing outstanding
01 of the State Bank of Vietnam loans; simultaneously reducing lending interest rate for customers in the Central region
affected by floods and storms, reducing payment fees, etc.

The total amount of outstanding loans supported with interest rate reduction was
approximately VND 441,768 billion. Total amount of interest supporting customers due
to interest rate reduction in 2020 was up to VND 3,700 billion.

Restructuring repayment due and maintaining debt group according to the Circular No.
01 for customers borrowing capital affected by the COVID-19 pandemic.

5.156
RESTRUCTURED (VND BILLION)
OUTSTANDING LOANS AT
DECEMBER 31ST, 2020

Regulating the growth rate and

1.053.354
structuring the deposit towards TOTAL DEPOSIT FROM (VND BILLION)
THE ECONOMIC
optimization
(INCLUDING VALUABLE
INCREASING BY 10.9% COMPARED TO 2019
PAPER ISSUANCE)

Demand deposit ratio at the end of term reached 32.1% (30.1% in 2019)
62 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
63

ASSESSMENT ON BUSINESS
PERFORMANCE IN 2020

Shifting the credit structure towards Outstanding business performance

845.128 23.050
safety and efficiency; enhancing among credit institutions
(VND BILLION) (VND BILLION)
the credit growth to support the OUTSTANDING
PROFIT BEFORE TAX
economy LOANS REACHED
INCREASING 14% COMPARED TO 2019 EQUIVALENT TO 2019

The retail loans accounted for 53.5% of the total outstanding loans (51.8% in 2019) Net income from non-financial operations accounted for 49.8% of the income from
business operations (39.2% in 2019).
Credit growth continued to focus on production-business areas, prioritized sectors
according to the Government’s policy. Maintaining high ROAA, ROAE ratio equivalent to 1.45% and 21.11% respectively.

Credit quality was tightly controlled; Group 2 Loan reached VND 2,973.6 billion, decreased from 0.41% in 2019 to 0.33% Nearly VND 8,689 billion contributed
nonperforming and written-off loans in 2020 to the State Budget, including VND CONTRIBUTION TO
THE STATE BUDGET PAYING TAX
was also greatly reduced. 6.470 billion for tax
Non-performing loans reached VND 5,229.5 billion with the NPL drop from 0.73% in
2019 to 0.62% in 2020. 8.689 (VND BILLION)
6.470 (VND BILLION)

LOAN LOSS 19.243 (VND BILLION)

PROVISION WAS LOAN LOSS PROVISION

COVERAGE RATIO (368%)

Recovery of written-off loans reached VND 2,422 billion.

Business operations The international payment and trade finance’s market share was 15.26%. Bank with largest market VCB’s market capitalization exceeded USD 15.7 USD, remaining leading position in the
and turnover reached USD 83 billion. capitalization among all listed banking sector.
banks in Vietnam
The consolidated Capital Adequacy Ratio (CAR) (under Circular No. 41) reached 9.56%,
increasing 0.22% compared to 2019.
64 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
65

ASSESSMENT ON BUSINESS Implementing funding operation to

match with credit growth and in
Deposit targets are reduced in line with the projected credit growth rate and in order to
improve the efficiency of funding use. Deposit programs were regulated to match with

PERFORMANCE IN 2020
accordance with strategic direction the market condition and the Bank’s credit growth rate.

The deposit portfolio continued to be restructured, deposit interest rates were structured
towards keeping the average deposit interest rate at low level.

MANAGEMENT In 2020, given significant volatilities in the business environment under the influence
of the COVID-19, the “Safety Guidedance” was embedded by Vietcombank into its
PERFORMANCE IN 2020 Simultaneously implementing Borrowers were actively classified into 04 different groups of credit treament under
action plans and management solutions so as to operate three pillars of the Bank’s fundamental solutions to improve scientific and systematic criteria: Group A – growth; group B – maintenance; group C
business model, which are Retail – Service – Investment, with 03 “Focuses” and credit quality, maintain the position – outstanding loan reduction, collateral increase; and group D – high risk, under review
05 “Breakthroughs”. Accordingly, VCB also managed to maintain its position as as the bank with best credit quality for credit relationship termination.
the leading bank with highest credit quality in Vietnam with such solutions as actively in Vietnam
classifying borrowers into 04 different groups of credit treatment under scientific Credit was expanded to highly potential and efficient economic sectors, the performance
and systematic criteria; consistent in maintaining credit conditions and requirement was regularly evaluated and reviewed.
for collaterals; regularly reviewing and resolving difficulties in credit approval for each
and every loan contract; promoting development of products and services on the The frequency for reviewing credit portfolio of 52 sections and customer groups was
digitalization platform; synchronously implement capacity building and transformation increased for timely adjustment against changes in business environment and impact
projects; expanding the branch network and improving the staff quality, etc. of the COVID-19 pandemic.

Credit conditions and collateral requirement was strictly maintained given the unfavorable
situation of the market.

Technical problems and obstacles in the process of credit approval for each and every
credit contract were regularly reviewed and resolved.

The medium-and long-term credit ratio was appropriately controlled; credit was
expanded flexibly in line with market situation.

Tightening credit quality control Inspecting and monitoring lending activities at all branches.
and promoting recovery of non-
performing/written-off loans Increasing monitoring debt recovery at each branch.

Proactively implementing the Multiple measures were implemented to support domestic enterprises to overcome
government’s and SBV’s policies, difficulties, particularly the reduction of loan interest applied to 05 prioritized sectors
supporting enterprises for the according to the guidance in Resolution No. 01/NQ-CP of the Prime Minister dated
common goal of national economical January 1st, 2019 and the management direction of the SBV Governor on supporting
development. the business sector.

Besides, Vietcombank continue to offer various favorable schemes to small and medium
enterprises while committing to fix competitive interest rates for the terms of 2 years/3
years/5 years for enterprises to better manage their cost, production and business operation.

Drastically implementing Vietcombank Development projects, sub-projects, action plans continued to be strongly promoted
development roadmap to 2020, and and implemented, contributing to the operating results of VCB in 2020.
related action plans and sub-projects
Branches under the Branch Development Roadmap to 2020 basically completed the
targets including improving market share and funding in the local areas, controlling
credit quality, increasing profit and effectively expanding target customers.
66 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
67

ASSESSMENT ON BUSINESS
PERFORMANCE IN 2020
Optimizing organization model Reorganizing the Retail Division at Head Office according to the new organizational
and expanding branch network in model set out in phase 1 of the Project for Retail banking model transformation
accordance with business strategy (RTOM). The wholesale credit model (CTOM) was adjusted according to the Circular
No. 13 of the State Bank. Staff rotation was implemented between Head Office and
Branch.

Expanding branch network and migrating training activities to E-learning platform:

• Established and opened 5 new branches and 33 transaction offices in the network.
Put the Training School in Ecopark into operation.

• The total number of training sessions delivered was 67,988 sessions, in which
the number of E-learning sessions accounted for approximately 37%; the average
number of sessions for each staff was 3.6, higher than the rate of 1.1 in 2019.

Simultaneously and effectively Proactively implementing projects to improve management and operation capacity.
In 2020, VCB issued a number of Issuing important internal rules and regulations regarding credit limits and adequacy
implementing projects to enhance Some projects were gradually applied in practice:
internal regulations related to staff ratios in Vietcombank’s operations, wholesale credit processes, delegation of
management and operation capacity
management such as Regulation authority for fee waiver and reduction for wholesale customers, regulations on
Successfully rolling out the “Signature” Core-Banking system (in January 2020) and
on employment and recruitment; liquidity risk management, etc.
continuing to develop applications at business service level.
Training regulation; Regulation on
recruitment, management and In 2020, VCB issued a number of internal regulations related to staff management
Completing 13 projects, in which 7 were under the IT Development Roadmap to 2020,
employment of business support such as Regulation on employment and recruitment; Training regulation; Regulation on
5 under the Basel II Program and 1 being the initiative No. 14 under in CTOM project.
staffs. recruitment, management and employment of business support staffs.
29 out of 103 transformation projects continued to be implemented.

Successfully deploying Phase 1 of Payment Hub and PCM project. Tightening inspection, internal Inspecting all branches nationwide, 04 Departments/Divisions/Centers at the Head
control and compliance Office, 02 Subsidiaries, and carrying out 22 special audit and inspection schemes
Completing Phase 2 of ERP and MPA projects; continuing to finetune the support bankwide.
system to improve the user-friendliness.
Reviewing operational risks at branch level to timely prevent and report potential
Implementing ICAAP 6 months earlier than requirement of the Circular No. 13. risks, propose solutions to operational issues found at branches.

Implementing the Digital Transformation Project and put the Digital Banking Center Other activities Successfully organized IV Party Congress of Vietcombank Party committee, term of
into operation. 2020-2025 and series of activities towards XIII National Party Congress.

The communications activities continued to be promoted with many new points,

Vietcombank’s prestige was enhanced and VCB was praised by many domestic and
international organizations.

The social activities received special attentions: in 2020, VCB spent nearly VND
386.5 billion to build houses for poor households, social welfare constructions for
education and health, etc.

Implementing inter-regional online meetings for bankwide business review in line

with requirements for COVID-19 epidemic prevention.

Re-applying for ISO27001 certificate in the whole network. Reviewing, revising and
updating the regulations on information security.
68 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
69

ASSESSMENT ON BUSINESS Human resources policies Vietcombank has always paid high attention to the development of human resources,
facilitate employees to promote their capabilities, create opportunities in career

PERFORMANCE IN 2020
promotion, improve income of employees and strengthen their loyalty. In particular:

3. REPORT ON SOCIAL AND

ENVIRONMENTAL IMPACTS

Compliance with legislation on Knowing that Vietnam is one of the countries that considerably suffers from climate
environmental protection change, Vietcombank strictly implemented Decision No. 403/QĐ-TTg dated March
20th, 2014 of the Prime Minister regarding the approval of national action plan on green
growth during the 2014 - 2020 period, Directive No. 03/CT-NHNN dated March 24th,
2015 of Governor of SBV on promoting green credit growth and environmental and
social risk management and Circular No. 39/2016/ TT-NHNN dated December 30th,
2016 of the Governor of SBV regarding lending activities of credit institutions, foreign
bank’s branches for customers as well as other regulations related to environmental
protection in credit activities.

When appraising credit grant for projects, Vietcombank assessed environmental and
social risks that might affect the effective use of capital and customers’ credit solvency.
Besides, Vietcombank requested the investors of projects under consideration for credit
grant to meet environmental and social protection standards and regularly, periodically
inspect, supervise environmental and social risk management for loans granted to Ensuring job stability for employees:
customers.
Total employees as of 31/12/2020 were 20,062 people (including the number of
Vietcombank focus on promoting environmental risk management responsibilities of employees of two subsidiaries, VCBS and VCBL), increasing by nearly 5.9% compared
credit institutions in order to gain consent and support from customers. with 2019. Working time is 8 hours per day and 5 days per week. Vietcombank ensures
annual leave, public holidays, and personal leave in compliance with the Labor Code,
maternity leave and sick leave in line with the Law on Social Insurance.

All employees are contracted in accordance with the law. Temporary deferment or
termination of labor contract is done in accordance with the Labor Code. Requests for
early retirement are also granted with favorable conditions.

Vietcombank implemented many activities in order to create the best working

environment for employees with remarkable results: All employees had stable jobs
with competitive salary and attractive welfares, employees were trained for career
development; Appreciation, reward and personal training were given to the right
persons for their right achievements at right time; Motivation mechanism for employees
is always emphasized, in connection with performance assessment and promotion
planning; practicing external recruitment for management positions; employees
constantly encouraged to strive and improve their work efficiency, etc.

Vietcombank had applied technology in almost all stages of the recruitment (receiving,
selecting applications, organizing online exams, etc.). Recruitment in VCB is complied
with regulations, ensuring transparency and objectivity for recruiting staff that have right
qualifications for the intended positions and meeting the job requirements. Probation
schemes are in compliance with related regulations.
70 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
71

ASSESSMENT ON BUSINESS
PERFORMANCE IN 2020
Human resources policies Developing financial and non-financial remuneration policy to guarantee Extra remuneration beside salary:
interest of employees:
Vietcombank’s remuneration regime beside salary has been established, particularly: (ii)
In recent years, Vietcombank’s salary and remuneration mechanism system have For circumstances of retirement, maternity leave, disability, fatal diseases or surgery,
gradually improved in line with the regional and global levels, as follows: Vietcombank also provides employees with additional financial assistance in addition
to benefits received from social insurance; (iii) Providing health insurance as well
a. Remuneration mechanism regarding finance: as arranging annual health checks for all employees. In particular, Vietcombank has
combined with reputable medical facilities to conduct early screening for cancer for
Remuneration mechanism regarding salary and insurance: employees since 2017. Vietcombank also paid special attention to female employees
through some supportive gender payments.
Remuneration mechanism regarding salary
b. Non-financial incentives
Basically, the salary mechanism of Vietcombank has been built on the value of
contributions in the bank, to be fair and market competitive. The average income of To motivate employees, in addition to the direct financial remuneration mechanisms,
Vietcombank staff tends to increase year on year and is on a high level compared with Vietcombank has built and implemented domestic and overseas training programs to
average market income. enhance employees’ expertise and engagement.
The Bank pay employees visits and provideallowances for sickness and maternity;
Salary of employees is divided into two parts: (1) Fixed salary: Determined according presents for retiring employees; employees’parents and parents-in-law of employees
to the rank/grade in line with positions and professions. (2) Performance salary: on International Day of Older Persons, etc.
Based on performance measured by KPIs, encouraging employees to strive for
good accomplishment of work.

Vietcombank has delegated powers to heads of units in reviewing and arranging salary
of employees according to their capacity, quantity and quality of work completion. The
salary increase is based on the level of employee performance evaluation. For staff
having outstanding achievements and initiatives with realistic application, Vietcombank’s
BOM and BOD have employee reward schemes by approving early raise of their salary
grade.

Vietcombank has established a specialist salary mechanism with a very competitive

salary for highly skilled employees in order to recruit a skilled labor into a number
of specific fields, launched transformation projects for management and operation
capability building.

Health insurance, social insurance regimes:

Vietcombank has covered social insurance for 100% employees who have signed labor
contracts of one year or longer tenors with compulsory social insurance treatment such
as maternity and sick coverage, etc. for employees. Retiring employees are entitled
to an appropriate allowance which is calculated on the basis of their full salary of the
working year preceding the retirement.

In addition, Vietcombank also cover labour health insurance and unemployment

insurance in accordance with the Government regulations.
72 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
73

BUSINESS ORIENTATION
IN 2021
RENOVATING BUSINESS
GROWTH MODEL
AND RESTRUCTURING
BUSINESS OPERATIONS.

The global economy is forecasted

to sharply rebound in 2021,
the global GDP growth is
PROMOTING CUSTOMER UPGRADING IT SYSTEM,

forecasted at 6%. However, the CARE AND PRODUCT

DEVELOPMENT.
DEPLOYING DIGITAL
BANKING SERVICES.

appearance of new SARS-CoV-2

virus variants may slow down
STRATEGIC
the growth recovery process. BREAKTHROUGHS
Moreover, the geopolitical instability
and competition among large
economies are increased sharply, COMPLETING ENHANCING QUALITY
INTERNAL OF HUMAN RESOURCES
OPERATING AND FOCUS ON DIGITAL

the climate change is expected to GUIDELINES AND BANKING.

POLICIES.

be an increasingly complex issue.

In 2021, the Government strives to reach a GDP growth target of 6.5%, continues to
prioritize macro stability and curb inflation at below 4%. The disbursement of public
investment shall be promoted in 2021 and years after that. The validity of new FTAs and 3 OPERATIONAL RESTRUCTURING OBJECTIVES
post-pandemic demand increase are predicted to boost Vietnam’s import and export
activities. FDI inflows to Vietnam is forecasted to have an increase with “China +1”
investment trend. Vietnam is facing both a great opportunity and challenge to participate
more actively in the global value chain. 01 02 03
Implementing the Resolution No. 01 of the Government and Directive No. 01 of the State
Bank of Vietnam, Vietcombank set out the motto of “Transformation, Efficiency, Ensuring reasonable credit Increasing the proportion of Restructuring funding
Sustainability” in action and the viewpoint of “Responsibility - Action - Creativity” growth along with credit non-credit income with a sources and liquidity options
in management mindset; continue to implement Five strategic breakthroughs and Three restructuring to achieve focus on services and capital to boost business efficiency.
central objectives, towards innovating the growth model in depth, restructuring business efficiency and sustainability. investment.
operations, improving labor productivity and striving for sustainable growth.
74 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
75

BUSINESS ORIENTATION
IN 2021
KEY TASKS IN 2021

1. Implementing the credit management Continue to perform duties and initiate solutions for epidemics prevention, and support
solutions under directions of the the customers affected by Covid 19 epidemic under the directions of the Government,
Government at the Resolution No. 01/ Prime Minister and Governor of the SBV at Directive No. 02/CT-NHNN dated March
NQ-CP dated January 1st, 2021 and the 31st, 2020, Circular No. 01/2020/TT-NHNN dated March 13th, 2020 and other
Governor of the SBV at the Directive relevant directives.
No. 01/CT-NHNN dated January 07th,
2021.

2. Shifting business structure and Effective sustainable development creditstrategy.

bussiness growth model
Focusing on development of new customers with strong financial background. Shifting
credit portfolio structure towards increasing proportion of customers in group A (Growth
group) outstanding balances; gradually reducing the proportion customers in group B
(Maintenance group) of outstanding balances; promptly withdrawing and reducing the
outstanding balances of groups C and D Customers (Withdrawal groups); speeding up the
credit processing processs, etc.

Focusing on growth of both wholesale and retail short-term credits,offering potential FDI
customers segment with low credit risk and full package of services , providing credits for
Midcom customers and major Customers in the Southern area.

Continue to expand retail credit lending and general credits through transaction offices.

Stimulating e-banking service activities and expanding non-interest income

Adoption of digitalization of banking services. Focusing on products and services development

towards improving customer experiences.
3. Increasing profitability from Liquidity management in connection with efficient funding use to support sales units.
capital trading and investment
Expanding the base of new e-banking customers, e-commerce business customers
banking Improving the efficiency of investment activities; rolling out investment banking products
and improving the loyalty of customers using e-banking services.
that meet customer needs.
Expanding business with companies with large import-export payment turnover, high
trading volume with export processing industrial zones, and companies in the value
chain of a larger FDI customer.
4. Strengthening control of credit Continuing to reduce credit exposure with high-risk sectors, customers without collaterals,
Increasing the market share of foreign currency trading. Effectively utilizing the combined quality, promoting recovery of customers with potential risks, customers with no overall benefits to Vietcombank.
services of international payment and foreign currency trading. written-off loans
Regularly reviewing debts structured under the Circular 01, developing debt recovery
Promoting sale and cross-sale of non-credit services, linked products, and cash flow services. plans and promptly applying necessary solutions.

Improving deposit growth efficiency and sustainability Implementing the management of retail credit portfolio by advanced methods.

Regulating funding growth rate in line with funding use. Accelerating the recovery of written-off loans: Developing a work plan and settlement
schedule for each bad debt, assigning specific tasks to each officer.
Increasing scale of low-cost funding through providing electronic payment utilities for
enterprises, increasing individual accounts and customers using payment service and Strictly complying with the laws and Vietcombank’s internal regulations on granting
investment banking services, etc. credit and prevention of moral hazard and misconducts.
76 Vietcombank
Annual Report 2020
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Report of the BOM and BOD
77

BUSINESS ORIENTATION
IN 2021
5. Solutions to promote business Business support solutions
efficiency
Promoting the development of new products, specialized products in line with customer
segments, and investment banking products.

Developing and implementing technology-based payment services in key sectors such as

collection and payment services with Social Insurance, State Treasury; public transport fare
collection, non-stop road toll collection, collection of health care and education fees, etc.

Developing digital products/services/platforms with application of high technology,

encouraging transactions on digital banking channels.

Supportive solutions in terms of technology, human resources, and management information

Strengthening infrastructure capacity, meeting business requirements; ensuring safety,

security and confidentiality of the IT system; cooperating with Fintech companies to
develop a Vietcombank ecosystem.

Optimizing the organization model, functions and roles of units at the Head Office and
Branches in order to focus on management and administration based on operational
divisions. Establishing and putting into operation Vietcombank Asset Valuation Center
and centralizing debt management.
Risk management solutions
Prioritizing the allocation of sales staff, tech savvy staff; continuing to reform the
remuneration policy that links to business efficiency and productivity. Strengthening internal inspection and audit while strictly monitoring the results of
implementing remote inspection, auditing and supervision business activities of branches/
Improving the quality of scientific research and innovations throughout the Bank for subsidiaries in Vietcombank system.
effective implementation of Vietcombank’s growth and business promotion strategies.
Continuing to improve risk management capacity through the implementation of
transformation projects and initiatives under the Basel II Program.

Upgrading operational risk management, especially in the context of Covid-19 epidemic.

Other solutions

Increasing charter capital being approved by the competent authorities.

Improving the efficiency of cost management in the bank, managing and closely
monitoring the implementation of budget plans, reducing operating costs, controlling
the operating expenses/income ratio.

Optimizing the organizational structure and working facilities based on the approved
plan for the purpose of better business efficiency for the higher business efficiency.

Implementing various social activities to support localities, alleviating damages of natural

disasters, prioritizing education, healthcare, etc. Conducting various social activities to
support local activities…
78 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
79

ASSESSMENT BY Business results With business going in the right track, In 2020, Vietcombank achieved positive results,
especically profits continued to be stand at the highest level in the Vietnamese banking

BOARD OF DIRECTORS
sector.

• Total assets reached VND 1,326,230 billion, increasing by 8.5% compared to 2019
and reaching 101.3% the 2020 goal set by the General Meeting of Shareholders.
• Total outstanding loans reached VND 845,128 billion, increasing by 14% against
With the motto of “Transformation - Safety - Efficiency - Sustainability” in management and
1 the viewpoint of “Responsibility - Action - Creativity”, with the aim of innovating the growth
2019, in line with the credit growth quota allowed by the State Bank of Vietnam
and covering 103.9% the 2020 target set by the General Meeting of Shareholders.
model in depth, operational restructuring for sustainable and efficient growth, the Board of
ASSESSMENT BY Directors drastically directed, and regulated the Bank’s 2020 business direction promptly
• Total deposits reached VND 1,053,354 billion, up 10.9% over 2019, covering 101.9%
BOARD OF DIRECTORS and flexibly in the context of the business environment under many adverse impacts from
the 2020 target assigned by the General Meeting of Shareholders.
• Vietcombank continued to tightly control credit quality and promote the recovery
Covid-19 pandemic.
of non-performing loans. Non-performing loan was VND 5,229 billion, non-
performing loan ratio was 0.62%, while loan loss provision was VND 19,243 billion.
With great effort, responsibility and determination, Vietcombank successfully completed
Vietcombank’s loan loss coverage ratio was 368%, which was the all-time highest
the following goals: effectively preventing Covid-19 pandemic, sharing difficulties with
level for the Bank and in the whole banking industry.
customers and developing sustainable business. In 2020, VCB achieved many impressive
• Number of employees at the end of 2020 increased by 5.9% compared to 2019,
results, exceeding the targets assigned by the General Meeting of Shareholders,
Salary cost/profit before tax the Salary cost Profit before tax excluding salary reached
continuing to lead the banking system in terms of profit scale and asset quality.
26%. All these targets are within the range assigned by the General Meeting of
Shareholders.
Assessment of accomplishment of business targets set by Shareholders’ General
• 2020 profit before tax was VND 23,050 billion (equivalent to 2019), exceeding the
Meeting as follows:
plan set by the State Bank of Vietnam by 116.3%.
• VCB’s market capitalization exceeded USD 15.7 billion as of December 31st, 2020,
continuing to stand at leading position among all the listed banks.
80 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
81

ASSESSMENT BY
BOARD OF DIRECTORS
Governance and Network development, human resources management and training
management activities
• In 2020, 05 new Branches and 33 Transaction Offices were established, increasing
the total number of transaction points to 116 Branches and 474 Transaction Offices.
Furthermore, Vietcombank got approval from the Prime Minister to establish a
branch in Australia.

• Average labor productivity throughout the network continued to be at high level

(EBT/person reached VND ~1.22 billion). VCB maintained its leading position for 5
consecutive years as the bank with the best working environment in Vietnam. The
scientific research and activities of the Scientific Council were promoted and strictly
deployed.

Digital banking transformation

• The activities of digital banking were implemented in line with orientation with many
breakthrough innovations: successfully operating the new Core banking system -
Core banking Signature, launching a completely new digital banking service - VCB
Digibank, becoming a typical digital transformation bank in 2020, implementing
products of new digital banking products such as VCB Booking, e-KYC, etc.

• Vietcombank was the first bank to successfully establish connection with the National
Public Service Portal and used this portal for social insurance payment. The Bank
plans to continue expanding this cooperation, providing online payment solutions for
healthcare, education, customs, insurance, etc.

• Continuing to research and deploy the Digital Banking applications and projects as
planned in line with the bank’s strategy.
Transformation projects

• IT Development Scheme to 2020 achieved many positive results. A series of

key projects in the Scheme in order to improve efficiency of system operation
and administration and upgrading information technology infrastructure have been
completed and deployed, typically Core Banking project, MPA, Centralized Backup
Storage, etc.

• By the end of 2020, Basel II Program basically completed most of the recommended
initiatives. Some initiatives of Basel II Program regarding advanced components are
ready for deployment right when the State Bank of Vietnam gives the green-light.

Other management activities

• The BOD approved reports to summarize and evaluate the implementation of the
restructuring plan and the recovery of non-performing loans by 2020 with 4 sub-
schemes and 4 action programs of the Scheme.

• The BOD continuously gave direction and periodically urged to review and evaluate
the implementation of the Vietcombank’s Development Strategy by 2025, a vision by
2030; and sub-schemes, action programs performed by Strategic divisions.
82 Vietcombank
Annual Report 2020
Chapter 2
Report of the BOM and BOD
83

ASSESSMENT BY
BOARD OF DIRECTORS
• The Board conducts monthly meetings to assess the business activities and Motto: “Transformation, Efficiency, Sustainability” with a focus on growth model in depth,
2 performance of tasks assigned to each Board member. Subsequently, a resolution 3 operational restructuring, sustainable growth, high efficiency, and labor productivity
was promulgated to direct business activities, assign specific tasks to each member improvement.
ASSESSMENT BY of the BOD and supervise the BOM to implement, comply with regulations at the
BUSINESS ORIENTATION
BOARD OF DIRECTORS AND Bank’s Charter, Regulations on organization and operation of the BOD, Internal IN 2021 In 2021, Vietcombank will focus on 5 strategic breakthroughs, namely:
BOARD OF MANAGEMENT management regulations and relevant regulations of Vietcombank.

• In December 2019, the BOD issued the Resolution No. 686 on business orientation

1
in 2020. While the business market suffered many adverse effects due to the Renovating the growth model and restructuring
Covid-19 epidemic, in June 2020, the BOD issued the Resolution No. 268 to timely business operations;
adjust some business orientation, helping VCB’s operations safety and maintain
growth momentum and efficiency.

• Members of the BOD and the BOM always considered interests of shareholders,
the State and the Bank as top goals of implementation, well directed, operated and
fulfilled their assigned duties and responsibilities.
2 Promoting customer and product development;

3 Completing mechanisms and policies;

4
Enhancing the quality of human resources and the ability
to adapt to the digital banking;

5
Completing and upgrading IT system, deploying digital
banking services.

Viewpoint of management: “Responsibility - Action - Creativity”.

3 central objectives in operational restructuring:

01 02 03
Keeping reasonable credit growth
along with credit portfolio
restructuring to gain efficiency
and sustainability: Increasing the Increasing the proportion of
Performing capital
proportion of retail loans and non-interest income with
restructuring to gain
loans provided at transaction a focus on income from
efficient increase.
offices; increasing the proportion services and treasury;
of collateral against the total
outstanding loans;
84 Vietcombank
Annual Report 2020
Chapter 3
Organization and Human Resources
85

CHAPTER 3

READY FOR ORGANIZATION AND

HUMAN RESOURCES
CHANGES
Organization and Human Resources 86

Board of Directors 88

Board of Management and Division Heads 91

Supervisory board 94
86 Vietcombank
Annual Report 2020
Chapter 3
Organization and Human Resources
87

ORGANIZATION AND
HUMAN RESOURCES
HUMAN RESOURCES NETWORK AND ORGANIZATION OF VIETCOMBANK

As at 31/12/2020, total number of • Human resources are managed under best practices in order to build, develop As at December 31st, 2020, • Head office.
employees was: and maintain a high-quality team who supports to implement the Bank’s goals to Vietcombank’s network included: • 116 Branches;

20.062 PERSONS
become the leading bank in human resources quality. • 474 Transaction offices
• Taking initiative in applying flexibility, creativity, determination, innovation in human • 04 Subsidiaries in Vietnam.
resources management. On one hand, arranging and strengthening the organizational • 01 Representative Office in Singapore, 01 Representative Office in the United States,
structure in the direction of specialization, streamlining, efficiency in accordance with 01 Representative Office at Ho Chi Minh City.
With large and increasingly growing
international practices. On the other hand, constantly reforming staff management • 03 overseas subsidiaries
number of employees, Vietcombank’s
policies in all phases from recruitment to planning, selection, appointment, rotation, • 03 Non-business units (Cash Treatment Center in Ha Noi, Cash Treatment Center
BOD and BOM always focus on human
discipline, evaluation, training; renovating staff evaluation methods. in HCMC, Human Resources Development and Training School).
resources development and see it as the
• Employee quality is controlled from the recruitment step with a serious and • 03 other joint ventures and associates
key to the success and efficiency of the
professional recruitment policy; Accepted staffs are suitable for the intended position.
Bank
• HR planning activities are carried out fully and seriously to build a team of leaders
who are updated with knowledge and have professional experiences in operation
and management.
• Training activities are pushed to improve both quantity and quality of training courses
04
SUBSIDIARIES
for employees. IN VIETNAM

116 474
• A salary mechanism is developed on the principle of flexibility, connecting
remuneration to productivity, quality, and performance to create motivation for the
staff. BRANCHES TRANSACTION
OFFICES
Vietcombank is actively implementing the Human Resources development and
management strategy until 2025 as a prerequisite to successfully implement
Vietcombank’s Development Strategy by 2025, vision by 2030.

01 03
CHANGES OF MEMBERS OF REPRESENTATIVE OTHER JOINT
BOD AND BOM OFFICE IN VENTURES AND

HEAD OFFICE.
SINGAPORE, ASSOCIATES

The composition of the BOD and BOM RESIGNATION

had some changes as follows:
Ms. Truong Le Hien,
Head of Supervisory Board, entitled to retirement from 01/11/2020;

Mr. Thomas William Tobin,

Retail Banking Group Director, terminated his Service contract from 01/12/2020).
01 03
REPRESENTATIVE
NON-BUSINESS
OFFICE AT
UNITS
HO CHI MINH CITY
APPOINTMENT

01
Mr. Lai Huu Phuoc,
Head of Internal Inspection Board, appointed as Member of Supervisory Board, term
2018-2023 from 26/06/2020 by 2020 General Meeting of Shareholders; REPRESENTATIVE
03
OFFICE IN THE OVERSEAS
Mr. Lai Huu Phuoc, UNITED STATES, SUBSIDIARIES
Member of Supervisory Board, appointed as Head of Supervisory Board from
04/11/2020.
88 Vietcombank
Annual Report 2020
Chapter 3
Organization and Human Resources
89

BOARD OF DIRECTORS

Mr. NGHIEM XUAN THANH Mr. NGUYEN MANH HUNG

Chairman of the Board of Directors Member of the Board of Directors

Education: Education:
• Ph.D. in Economics, Banking Academy • Master of Economics, Vietnam – The Netherlands Master Program
• Master of Economics, Banking Academy • Bachelor of Economics, National Economics University

Mr. PHAM QUANG DZUNG Mr. NGUYEN MY HAO

Member of the BOD cum Chief Executive Officer Member of the Board of Directors

Education: Education:
• Master of Banking and Finance, Birmingham University, (UK) • Master of Economics, Banking Academy
• Bachelor of Economics, National Economics University • Bachelor of Economics, Banking Academy

Mr. DO VIET HUNG Mr. EIJI SASAKI

Member of the Board of Directors Member of the Board of Directors cum Deputy CEO

Education: Education:
• Master of Business Administration, Chulalongkurn • Bachelor of Economics, Nihon University (Japan)
University (Thailand) • Bachelor of Economics, The State University of New York
• Bachelor of Economics, Vietnam Maritime University at Buffalo
90 Vietcombank
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91

BOARD OF DIRECTORS BOARD OF MANAGEMENT

AND DIVISION HEADS

Mr. PHAM ANH TUAN

Member of the Board of Directors Mr. PHAM QUANG DZUNG
Member of the BOD cum Chief Executive Officer
Education:
• Master of Business Administration, South Columbia University Education:
• Bachelor of Economics, University of Economics Ho Chi Minh City • Master of Banking and Finance, Birmingham University, (UK)
• Bachelor of Economics, National Economics University

Mr. HONG QUANG

Member of the Board of Directors cum Head of Human
Resources Division Mr. DAO MINH TUAN
Deputy CEO
Education:
• Master of Business Administration - Foreign Trade University Education:
• in collaboration • Master of Economics, Banking Academy
• Bachelor of Economics, National Economics University • Applied Mathematics Engineering, Ha Noi University
• Bachelor of Laws, Ha Noi Law University • of Science and Technology
• Bachelor of Economics, National Economics University

Mr. TRUONG GIA BINH

Independent member of the BOD
Mr. PHAM MANH THANG
Education: Deputy CEO
• Associate Professor in Mechanics – By State
Council for Academic Appraisal and Title of Vietnam Education:
• Ph.D. in Mathematics and Physics - Lomonosov • Ph.D. in Economics, Banking Academy
University (Russia) • Master of Economics, Banking Academy
• Bachelor of Economics, Lomonosov University (Russia) • Bachelor of Economics, Banking Academy
92 Vietcombank
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93

BOARD OF MANAGEMENT BOARD OF MANAGEMENT

AND DIVISION HEADS AND DIVISION HEADS
Ms. PHUNG NGUYEN HAI YEN
Deputy CEO

Ms. NGUYEN THI KIM OANH

Education:
Deputy CEO
• Master of Economics, Banking Academy – CPA Australia
• Bachelor of Economics, Banking Academy
Education:
• Master of Banking and Finance, New South Wales University
• Bachelor of Economics, National Economics University

Mr. LE QUANG VINH

Deputy CEO

Education:
• Master of Economics, New South Wales University, Australia
• Bachelor of Economics, National Economics University

Ms. DINH THI THAI

Deputy CEO

Education:
• Master of Economics, National Economics University
• Bachelor of Economics, Foreign Trade University
Mr. NGUYEN THANH TUNG
Deputy CEO

Education:
• Master of Economics, Paris Dauphine University
• Bachelor of Economics, Foreign Trade University

Mr. EIJI SASAKI Mr. DANG HOAI DUC

Member of the Board of Directors cum Deputy CEO Deputy CEO

Education: Education:
• Bachelor of Economics, Nihon University (Japan) • Bachelor of Economics, Training and Scientific Research Center
• Bachelor of Economics, The State University of New York for Banking (now Banking University of Ho Chi Minh City)
at Buffalo
94 Vietcombank
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95

SUPERVISORY BOARD GROUP DIRECTOR

Mr. HONG QUANG

Mr. LAI HUU PHUOC Head of Human Resources Division
Head of Supervisory Board
Education:
Education: • Master of Business Administration - Foreign Trade University
• Master of Business Administration - Griggs University in in collaboration with Meiho University (Taiwan).
collaboration with Vietnam National University, Hanoi • Bachelor of Economics, National Economics University
• Bachelor of Economics, Finance Academy • Bachelor of Laws, Ha Noi Law University

Ms. LA THI HONG MINH

Member of Supervisory Board

Education:
• Master of Economics, National Economics University
• Bachelor of Economics, Banking Academy

CHIEF ACCOUNTANT

Mr. LE HOANG TUNG

Ms. DO THI MAI HUONG Chief Accountant
Member of Supervisory Board
Education:
Education: • Master of Economics, Academy of Finance
• Master of Economics, Foreign Trade University • Bachelor of Economics, Academy of Finance
• Bachelor of Economics, Foreign Trade University
96 Vietcombank
Annual Report 2020

CHAPTER 4

SYSTEM CORPORATE GOVERNANCE

UPGRADE
Corporate governance 98

Risk management 106

Business network 114

98 Vietcombank
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Corporate governance
99

CORPORATE GOVERNANCE
1. BOARD OF DIRECTORS

STRUCTURE OF BOARD OF DIRECTORS ACTIVITIES OF BOARD OF DIRECTORS The attendance rates of the Board members in 2020 are as below:

Vietcombank
Number Number of
shares owned Date being Reason
of meetings on Attendance
No. Full Name Position Remarks No. Full name Position member of for
meetings the basis of rate
Number BOD absence
Ownership attended voting
of shares

Elected as member of BOD by Shareholders’ 1 Nghiem Xuan Thanh Chairman of the BOD 25/04/2013 71/71 36/36 100%
General Meeting from April 25th, 2013.
1 Nghiem Xuan Thanh Chairman of BOD 59.025 0,00159% Elected as Chairman by the BOD from
November 1st, 2014. Member of BOD,
2 Pham Quang Dzung 25/04/2013 71/71 36/36 100%
Non-executive member. CEO

Elected as member of BOD by Shareholders’ 3 Do Viet Hung Member of BOD 27/04/2018 71/71 36/36 100%
Member of BOD, General Meeting from April 25th, 2013.
2 Pham Quang Dzung 3.281 0,00009%
CEO Appointed as CEO by the BOD from
November 1st, 2014. Member of BOD,
4 Eiji Sasaki 28/04/2017 13/13 0/0 100% (1)
Deputy CEO

Elected as a Member of BOD by Shareholders’

3 Do Viet Hung Member of BOD 0 0,00000%
General Meeting from April 26th, 2019. 5 Nguyen Manh Hung Member of BOD 26/12/2014 71/71 36/36 100%

Member of BOD, Elected as member of BOD by Shareholders’ 6 Pham Anh Tuan Member of BOD 28/04/2017 71/71 36/36 100%
4 Eiji Sasaki 0 0,00000%
Deputy CEO General Meeting from April 28th, 2017.

7 Nguyen My Hao Member of BOD 28/04/2017 71/71 36/36 100%

Elected as member of BOD at the
Extraordinary General Meeting of
5 Nguyen Manh Hung Member of BOD 2.270 0,00006%
Shareholders from December 26th, 2014. 8 Truong Gia Binh Member of BOD 27/04/2018 13/13 0/0 100% (2)
Non-executive member.

9 Hong Quang Member of BOD 26/04/2019 71/71 36/36 100%

Elected as member of BOD by Shareholders’
6 Pham Anh Tuan Member of BOD 0 0,00000% General Meeting from April 28th, 2017.
Non-executive member.
In 2020, the Board of Directors of Vietcombank organized 71 meeting sessions (in
which 13 plenary sessions of BOD) and 36 collections of written opinions for the
Elected as member of BOD by Shareholders’
purpose of directing Vietcombank’s operation periodically, making decisions on matters
7 Nguyen My Hao Member of BOD 7012 0,00019% General Meeting from April 28th, 2017.
that require BOD’s approval and discussing some other specific topics.
Non-executive member.

Elected as a Member of BOD by Shareholders’

8 Hong Quang Member of BOD 2 0
General Meeting from April 27th, 2018.

Elected as a Member of BOD by Shareholders’

Notes:
9 Truong Gia Binh Member of BOD 0 0 General Meeting from April 27th, 2018. 1
Mr. Eiji Sasaki is a concurrent member of BOD; thus only attendance in plenary sessions was counted.
Independent member. 2
Mr. Truong Gia Binh is an independent member of BOD; thus only attendance in plenary sessions was counted.
100 Vietcombank
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COMMITTEES UNDER BOARD OF DIRECTORS

RISK MANAGEMENT Risk Management Committee assisted the BOD in approving appropriate policies and
directions with regard to various types of risks in each period, including defining ratios,
COMMITTEE
limits/restrictions and risk appetite of the Bank.

In 2020, Risk Management Committee organized 04 regular meeting sessions,

coordinated with relevant divisions to build and complete Vietcombank’s regulations/
model, assessed current and future risks, advised the BOD with risk management
strategies, policies and preventive measures covering numerous aspects of Vietcombank’s
operation. The Committee also played an active role in promoting the deployment of
ideas under Basel II Program, assisting VCB early to apply ICAAP under the Circular No.
13/TT-NHNN on internal capital.

In 2020, Risk Management Committee conducted business continuity activities on the

following areas: Coping with the Covid-19 pandemic: Implementing many measures to
cope with the pandemic situation such as: communication, self-assessment of safety
level, development of prevention plans, enhanced measures to cope with the epidemic;
Responsive actions to floods and storms in the Central region: Timely issuing documents
to guide Branches regarding emergency plans to ensure business continuity, safety of
lives and property.

HUMAN RESOURCES Human Resources Committee consulted the BOD regarding scale and structure,
the Manager in line with Vietcombank’s operation scale and development strategy;
COMMITTEE
advised the BOD to review, assess and propose the election, appointment, dismissal,
the planning of managers under the BOD’s appointment authority and remuneration
mechanism system to ensure the suitability with Vietcombank’s operation and business
orientation and plans in each period.

In 2020, Human Resources Committee proactively advised to evaluate, propose the

planning of staff appointment and management under authorization, ensured the
publicity, right person, right action, optimized the system of documents and policies in
staff management, enhancing capacity and quality. During the past time, the appointment
and re-appointment of management positions at Head office and business units were
approved by Human Resources Committee, contributing to the improved efficiency of
staff management.

STRATEGY COMMITTEE Strategy Committee consulted the BOD to develop business development strategy of
the Bank, including assessment of current situation, overall targets, long-term vision,
strategic orientation, business criteria for each period, implementation solutions and
roadmap. Right after deployment of transformation schemes by 2020, the Committee
supervised the implementation of Divisions, periodically reported the implementation
situation to the BOD. Every 6 months, the Strategy Committee made a report to review
the Restructuring Scheme and submitted to the BOD for consideration and reported to
the SBV in accordance with regulations.

ALL MEMBERS OF BOARD OF DIRECTORS WENT THROUGH

TRAINING PROGRAMS ON MANAGEMENT.
102 Vietcombank
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CORPORATE GOVERNANCE
ACTIVITIES OF SUPERVISORY BOARD
2. SUPERVISORY BOARD
Assessment on activities of Supervisory Board
MEMBERS AND STRUCTURE OF SUPERVISORY BOARD
The 13th Annual General Meeting of Shareholders of Joint Stock entire the retirement regime from 01/11/2020 under the Decision
Supervision on BOD, BOM and shareholders by Supervisory Board:
Commercial Bank for Foreign Trade of Vietnam on 26/06/2020 of the Governor of the State Bank of Vietnam. On November
approved the additional appointment of Mr. Luu Huu Phuoc to 04th, 2020, the Supervisory Board organized a meeting and Supervisory Board supervised BOD and BOM in the sharing difficulties with customers and developing sustainable
the Supervisory Board, term 2018 - 2023. Vietcombank approved approved the re-appointment of Mr. Lai Huu Phuoc as the Head implementation of business orientations and objectives in 2020 business. In general, management and governance activities of
the Application for resignment from the Member cum Head of of Supervisory Board instead of Ms. Truong Le Hien. By December of Vietcombank, which were approved by Shareholders’ General BOD and BOM complied with the provisions of the Law on
Supervisory Board, term 2018-2023 of Ms. Truong Le Hien to 31st, 2020, the Supervisory Board had 03 members. Meeting, supervising the compliance with the laws and the Credit Institutions and the Bank’s Charter.
Bank’s Charter in management and governance. In 2020, in the
In 2020, member attending Supervisory Board were: context of the business environment suffering from many adverse Implementing the provisions in the Law on Credit Institutions,
impacts due to Covid-19 epidemic, BOD and BOM proactively Supervisory Board has followed up/updated changes in the list of
Number of
Date being Attendance Reason for and timely issued the appropriate response policies and solutions founders, major shareholders, and members of BOD, members
No. Full name Position meetings
member of SB rate absence and drastically deployed the measures to successfully implement of Supervisory Board, CEO and related persons of members of
attended
the “multi-targets”: effectively preventing Covid-19 pandemic, BOD, members of Supervisory Board, CEO.
1 Mr. Lai Huu Phuoc Head of SB 26/06/2020 7/9 100% -
Coordination between the Supervisory Board and BOD, BOM and other managers:
Resigned from
Performing Regulations on internal governance of Vietcombank, and audit, etc.) to ensure the compliance with the provisions
Former Member November 04th,
2 Ms. Truong Le Hien (*) 26/04/2008 6/9 100% Supervisory Board attends regular/ periodic meetings of BOD and of Circular No. 13/2018-TT-NHNN dated May 18th, 2018 and
of SB 2020 to entire the
monthly meetings of BOM. Supervisory Board is also fully provided Circular No. 40/2018/TTNHNN dated December 28th, 2018 on
retirement regime
with information and documents about management, governance the internal governance system of commercial banks and their
3 Ms. La Thi Hong Minh Member of SB 26/04/2008 9/9 100% - and business activities of the Bank to serve its supervisory activity. foreign branches and new regulations taking effect since January
01st, 2021.
The Supervisory Board, in coordination with BOD and BOM,
4 Ms. Do Thi Mai Huong Member of SB 26/04/2008 9/9 100% -
reviewed the regulations on internal governance (Vietcombank’s The Supervisory Board worked closely with BOD and BOM in
Charter on organization and operation, the BOD’s Regulations carrying out the assigned functions and tasks and supervising audit
Remark: Ms. Truong Le Hien resigned from November 01st, 2020 to entire the retirement regime
on organization and operation, the Regulations on internal activities of the Bank. Through its activities, the Supervisory Board
governance), reviewed and issued Supervisory Board’s internal has proposed opinions and suggestions to BOD and BOM for risk
regulations (the Supervisory Board’s Regulations on organization management enhancement, risk minimization, and compliance
and operation, Regulations on Professional ethical standards of with the law, the Company’s Charter, and internal regulations, in
Supervisory Board’s Members, Regulations on internal control order to improve the operational quality and efficiency of the Bank.

Other activities of Supervisory Board:

In 2020, the Supervisory Board directed relevant departments inspection software; and monitoring limit management and
to evaluate the financial statements for the first 6 months and adequacy ratios; as well as supervising the implementation of
for the fiscal year 2019; completed the internal control report, Vietcombank Restructuring Plan to 2020.
anti-money laundering report and independent review report of
internal control system in 2019 of Vietcombank; implemented Members of the Supervisory Board participated in professional
22 audits (including 07 audit and inspection schemes at trainings and seminars for better understanding of governance
systemwide scale, 08 audits of departments at Head office, and participated in transformation projects; proactively monitored,
02 comprehensive audits on operations of subsidiaries and urged and coordinated with Departments/Divisions/Centers at
representative office in the US, 02 audits at the branches, the Head Office and branches to perform proposals of the
01 audit of PD RSME quantitative model, 01 audit of capital Supervisory Board, internal audits, and recommendations from
adequacy ratio (CAR) and internal capital adequacy assessment external inspection units.
process (ICAAP)); acted as the center for deploying Circular No.
13/2018/TT-NHNN at Vietcombank; deployed the automation
of internal audit activities on Vietcombank’s internal audit and
104 Vietcombank
Annual Report 2020
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CORPORATE GOVERNANCE

3. TRANSACTIONS OF INTERNAL SHAREHOLDERS AND RELATED PERSONS 4. INVESTOR RELATIONS In 2020, COVID-19 pandemic negatively affected the economy of the world and
Vietnam, enterprises and the whole banking industry. In that context, with the motto
of “Transformation - Safety - Efficiency – Sustainability”, Vietcombank timely adjusted
In 2019, there was transactions of internal shareholders and related persons as follows:
its business strategies, reorganized operations and speed up the process of digital
transformation, at the same time, pioneered in sharing difficulties with enterprises,
especially in debt restructuring, waiver or reduction of interest. As the role of the
Number of shares Number of shares
Reasons link between the Bank and the investor community, Vietcombank’s investor relations
before transaction after transaction Transaction
for activities in 2020 had also evolved, keeping up with the general trend in the context of
No. Full name Position result report
Number Number increase/ the pandemic and achieved the recognition of shareholders, investment funds, securities
Holding Holding time
of of decrease companies as well as most of domestic and international investors.
ratio (%) ratio (%)
shares shares

1 Mr. Le Hoang Tung Chief Accountant 10.000 0,00027 20.000 0,00056 Buy 26/04/2020
INVESTOR MEETINGS In previous years, Vietcombank was always known as one of the enterprises with
2 Mr. Le Hoang Tung Chief Accountant 20.000 0,00056 5.000 0,00013 Sell 25/12/2020 active investor relations, participating in many domestic and international investment
conferences. The COVID-19 pandemic as well as process of social distancing
influenced the Bank’s Investor Relations Unit to proactively and creatively integrate
Mother of
digital transformation trend into operations to maintain an interaction channel with
Supervisory
Ms. Nguyen Thi the investors’ community. The Bank’s financial release and information were always
3 Board’s Member 2.523 0,00007 0 0 Sell 29/12/2020
Minh Tam updated and publicized timely on the Bank’s website. In addition, The Investor
– Ms. Do Thi
Relations Unit also actively organized many online sessions with customers being
Mai Huong
shareholders, investment funds, securities companies and actively took part in online
investment conferences. By the end of 2020, Vietcombank organized 120 online
sessions with potential investors, took part in 9 online investment conferences
organized by domestic and international reputable securities companies. Thanks to
these efforts, Vietcombank’s brand value in investor community continued to be
reinforced.

STOCK MARKET RELEASES Aware of the importance of transparent and timely information on financial
health and performance of the Bank for investors in the context of COVID-19
pandemic, the release of the Bank’s public information in 2020 also got much
attention. Throughout 12 months in year, Vietcombank accurately, timely and fully
disclosed financial statements, management reports, annual reports and more than
50 ad-hoc information disclosures on banking operations, thus, the investors and
shareholders could understand the operation situation as well as Vietcombank’s
plans and strategies to “weather the storm” during this rough water.

With constant efforts, Vietcombank’s investor relations in 2020 achieved the

remarkable results, contributing to enhance its value: (i) Maintaining the leading
position among Vietnam commercial banks evaluated and rated by all 3 reputable
credit rating agencies, namely Fitch, Moody’s and S&P, affirming the position of
the leading bank in Vietnam (ii) Vietcombank shares consecutively had the highest
trading price among listed banking shares in Vietnam market, leading the market in
terms of market capitalization and become a key contributor to the active growth
of VN-Index (iii) Continuing to strengthen the relationship with Mizuho - strategic
shareholder with a view to bringing the strategic cooperation relationship between
the two financial institutions to a new height.
106 Vietcombank
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RISK MANAGEMENT

In order to become a
bank with the best risk
management in Vietnam,
Vietcombank always
proactively enhances the
risk management culture,
pioneers in researching and
applying modern credit risk
management measures
and models in conformity
with international standards,
orientations of regulatory
authorities, as well as
internal management
needs.
108 Vietcombank
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RISK MANAGEMENT
1. GENERAL INFORMATION 2. MANAGEMENT OF SIGNIFICANT RISKS
AT VIETCOMBANK IN 2020
In terms of organization and risk management, Vietcombank requirements. Reviewing and improving data quality at Vietcombank
regularly reviews and consolidates its risk management apparatus are increasingly focused and maintained regularly and continuously to CREDIT RISK MANAGEMENT
in line with 3 lines of defense: (i) the first line is to identify, control meet requirements on quality control as well as data completeness.
and mitigate risks; (ii) the second line is to develop risk management Vietcombank has determined that data quality is the top priority in this Credit risk includes: i) Credit risk is the risk generated when information about related groups of customers for delegation
policy, internal regulations on risk management, measurement, circumstance to maintain and enhance the Bank’s competitiveness. customers do not fulfill or are unable to fulfill part or all of credit granting authority, ensuring that the credit limit for
monitoring in compliance with the law and (iii) the third line is for repayment obligations under contracts or agreements with VCB; customer groups with significant influence are reviewed and
internal auditing. At the same time, the Bank also strengthens and In the context of complicated developments of the COVID-19 (ii) Counterparty risk is the risk generated when the counterparty granted at a higher authority.
enhances the role and performance of risk-related Committees, pandemic affecting the domestic and world economies, Vietcombank does not fulfill or is unable to fulfill part or all repayment
Councils and Departments, such as Risk Management Committee, has proactively implemented synchronous risk management obligations before or at the maturity of trading transactions; repo • Building, monitoring, and managing credit risk limits,
Risk Council, Risk Management Department, Compliance solutions and constantly improved and enhanced the Bank’s risk transactions; reverse repo transactions; transactions of derivative including: (i) Credit limit by customer, industry, economic
Department and Internal Audit Department. Thereby, this improves management system. In 2020, Vietcombank continued to maintain products for hedging purpose; transactions of foreign currency sector on the basis of customers’ ability to repay debts, credit
the efficiency of risk control, while proactively supporting business the capital adequacy ratio higher than the required level; at the and financial assets for the needs of customers and partners. risk of economic sectors and fields; (ii) Credit limit by product,
operations to achieve the optimal efficiency. same time, actively consolidated initiatives to apply Pillar 2 - Internal form of guarantee on the basis of corresponding credit risk
Capital Adequacy Assessment Process (ICAAP) under Basel II Vietcombank’s credit risk management framework includes of the product, form of security.
Vietcombank’s documents, regulations, guidelines on risk standard in order to comply with requirements for all 03 Pillars of organizational structure, policies, processes, models, limits and
management are periodically reviewed and updated to meet Basel II according to the standard method earlier than the deadline reports. Several results of credit risk management lately: In 2020, with the negative impact of the COVID-19 epidemic
requirements and comply with orientations of regulatory authorities required by the State Bank of Vietnam. Not only implementing on the entire economy and business activities of enterprises and
as well as operational status of Vietcombank. Basel II according to the standard method, over the past time, • Effectively operating the early warning system (“EWS”) for people, Vietcombank consistently maintained solutions related
Vietcombank has continued to review and perfect necessary early identification of corporate customers with potential risk, to policy and regulation together with advanced technology
Vietcombank also focuses on investment in developing risk conditions to meet Basel II under an advanced method; thereby, thereby improving the quality of the Bank’s credit portfolio systems, and regularly assessed the quality of its credit portfolio.
measurement tools and models utilizing advanced methods. Credit ready to review and respond positively to requirements of the State by regularly evaluating customers after loan disbursement, Vietcombank’s performance results in 2020 have affirmed its
risk quantification model was developed, covering most of the Bank of Vietnam as soon as the regulations and instructions related promptly providing preventive and remedial measures to position as a financially healthy bank with a safe and efficient
bank portfolio. Besides, the information technology systems were to the implementation of Basel II under the advanced method are minimize loss to the Bank. Customer identification was credit portfolio.
also regularly upgraded to best meet the corporate governance available. based on the quantitative analysis of data in the core banking
system, credit rating system and the qualitative questionnaires
to assess the customers’ prestige, business performance, and
repayment capacity.

• Regularly reviewing and timely adjusting the system of

documents, policies on risk management including: (i) credit
risk management policy; (ii) regulation on credit limit for
a customer/group of customers; (iii) regulation on credit
approval authority; (iv) regulation on credit guarantee; (v)
regulation on lending/guarantee/corporate bond purchase/
factoring; (vi) sets of credit procedures for each customer,
etc. in accordance with regulations of laws, risk appetite as
well as meeting business requirements of the Bank.

• Building and completing models to quantify credit risks

according to Basel II; step by step putting these models
into application for credit risk and business operation
management policies.

• Continuing to improve the quality and timeliness of: (i)

reporting on the management of wholesale and retail
credit portfolios; (ii) preparing sectoral reports as a basis for
identifying industrial risks to have orientation for exposure to
each industry corresponding to the risk level; (iii) providing
110 Vietcombank
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RISK MANAGEMENT
OPERATIONAL RISK MARKET RISK LIQUIDITY RISK

Operational risk is the risk generated due to incomplete or Market risk is the risk generated due to negative changes in Liquidity risk is the risk generated when: (i) The bank fails to also concentrated its resources in the ALM/FTP project to
erroneous internal processes, human, errors, incidents of system interest rates, exchange rates, gold price, securities and goods fulfill its repayment obligations at due date; or (ii) The bank is automate management reporting in order to meet international
or external factors which causes financial losses, negative non- to values of Vietcombank’s financial assets. Market risk includes: able to fulfill its repayment obligations at due date but has to practices on liquidity risk management. In 2020, the Bank’s
financial impacts on the Bank (including legal risks). Operational Interest rate risk, stock price risk on the trading book and foreign pay a higher cost than the average market price according to liquidity was always guaranteed.
risk does not include reputation risk and strategic risk. exchange risk, commodity price risk on the trading and banking Vietcombank’s internal regulations.
books.
Vietcombank has established and fully implemented operational Vietcombank’s liquidity risk management framework has been
risk management framework, including the model, the The market risk management framework is a close combination fully set up with models, organizational management structures,
organizational structure, the system of policies, procedures of organizational structure, policies, processes, models, limits and set of documents and policies, processes, regulations and overall
for operational risk, risk appetite and limit management in reports of market risks, towards the world’s advanced standards. limits to identify, measure, supervise and report risks according to
compliance with the State Bank of Vietnam’s regulations in Market risk management is carried out at each business unit international practices and innovative Basel standards, and strictly
Circular 13/2018/TT-NHNN and under advanced Basel II and operational unit based on each risk profile in particular and comply with the State Bank of Vietnam’s regulations on solvency
standards. Vietcombank’s risk appetite in general. Based on its synchronous and liquidity ratios in banking operations. Regulations, processes,
market risk management framework, Vietcombank can actively limits, liquidity risk management tools, etc. are reviewed and
In 2020, Vietcombank continued to focus and strengthen prevent risks to limit the impact of market fluctuations. updated annually to promptly amend in order to meet the
operational risk management with the aim of minimizing requirements of the regulatory agencies and implementation
operational risk losses to protect the Bank, its shareholders In 2020, Vietcombank continued to periodically review and within the Bank.
and customers. Operational risk management was effectively update policies, procedures, methodologies while supplementing
implemented throughout the system through operational risk and upgrading systems, models, measurement and market risk In 2020, in addition to strict daily monitoring and control of
management tools such as incident reporting, risk self-assessment management programs to meet the State Bank of Vietnam’s liquidity risk, Vietcombank promptly identified and early alerted
and control points, and the development and monitoring of regulations as well as international practices. liquidity risk due to the impact of COVID-19 and tested a
key risk indicators (KRIs), risk assessment for all new policies, unexpected liquidity back-up plan. Furthermore, Vietcombank
regulations, products and services, thereby effectively supporting
the identification, measurement, monitoring and control of
operational risk in all operations of the Bank.

Vietcombank also continued to promote specific processes and

actions to manage specific operational risks such as comprehensive
implementation of the fraud risk management framework,
information technology risk and operational risk management
framework for outsourcing activities. In addition to measures
to prevent, detect and mitigate operational risks, Vietcombank
continued to hedge operational risk through operational risk
insurance packages on its assets as an additional measure of
operational risk management to help protect the Bank in case
of serious losses. In addition to technical tools, Vietcombank also
constantly focused on improving the operational risk management
culture through training and communication, ensuring compliance
with the Code of Conduct and professional ethics and building a
cohesive working environment to prevent risks.

Especially in 2020, in the complicated situation of the COVID-19

pandemic, Vietcombank developed and implemented timely
and effectively a business plan in the context of continuously
preventing COVID-19 with response measures suitable to the
pandemic developments, in compliance with the regulations of the
Government, the State Bank of Vietnam and regulatory agencies
and ensuring safety for employees and customers of Vietcombank,
and the Bank also well maintained business continuity systemwide
and met the business development targets.
112 Vietcombank
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RISK MANAGEMENT
INTEREST RATE RISK

Interest rate risk is the risk generated by negative changes of (management of the difference in reprising gap between rate-
interest rate on income, asset value, value of liabilities and value sensitive assets and rate-sensitive liabilities, the sensitive of net
of off-balance sheet due to: (i) Difference in period to apply interest income (NII sensitivity) and the sensitive of economic
new interest rates or to re-define interest rates; (ii) Change value of equity (EVE sensitivity)). In addition, Vietcombank also
of relationship among interest rates from different financial uses appropriate derivative products to minimize the negative
tools with the same maturity; (iii) Change of relationship among impact of interest rate fluctuations.
interest rates at different maturities; (iv) Impact from products
with interest rate option. In 2020, Vietcombank continued implementing ALM/FTP
software system to improve the automation and efficiency of
For interest rate risk management, Vietcombank has established interest rate risk management.
a comprehensive system of policies, processes and limits
to identify, measure, supervise and report risks according to
international practices such as Basel in accordance with SBV’s
regulations at Circular No. 13/2018/TT-NHNN.

Vietcombank is one of the first banks to apply interest rate

risk management tools and limits to daily management activities

CONCENTRATION RISK

Concentration risk occurs when a bank’s business focuses on the customer according to regulations of laws and identification
only one customer (including related persons), partner, product, of the Bank; (iii) defining the level of diversity and interaction
transaction, industry, economic sector, and currency with of credit products, industries and economic sectors. In 2020,
significant impact on income, risk status according to internal Vietcombank constantly supervised and monitored credit limits
regulations of the Bank. Concentration risks include those related of concentration risks to ensure the credit limits to be maintained
to the Bank’s credit portfolio and trading book. within the established limits. In addition, Vietcombank completed
the capital stress testing framework for credit risks and credit
Vietcombank has established a comprehensive concentration risk concentration risks; thereby, contributing to early meeting the
management framework, composed of organizational model deadline for completion of Pillar 2 under Basel II by June 2020.
and structure, comprehensive system of policies, processes,
regulations, and limits to identify, measure, supervise and report For concentration risks in the trading book, Vietcombank
risks for compliance with the State Bank of Vietnam’s regulations officially deployed management tools based on criteria to
as well as Vietcombank’s internal regulations. identify trading portfolio for limit setting in order to ensure
the diversity and interactivity; the limits were set based on the
In the concentration credit risk management, Vietcombank maximum proportion of the trading volume, the currency and
diversified its credit portfolio according to the following principles: the counterparty compared with the total trading balance.
(i) defining credit limits of interest rate risk concentration
risks for credit products, customers, industries and economic
sectors,collateral assets; (ii) identifying the relevant person of
114 Vietcombank
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BUSINESS NETWORK BRANCH ADDRESS TEL FAX

50 Nguyen Tat Thanh Boulevard, Hung Long Ward, 0252.3739064 -

Binh Thuan 0252.3739290
Phan Thiet City, Binh Thuan Province 0252.3739065
LIST OF BRANCHES AND By December 31st, 2020: Vietcombank has 116 Branches and 474 Transaction Offices.
07 An Duong Vuong Street, Ward 7, Ca Mau City, Ca Mau 0290.3575857
TRANSACTION OFFICES BY On December 31st, 2020, Vietcombank was approved by the SBV to establish 05 Ca Mau
Province 0290.3835207
0290.3833466
DECEMBER 31ST, 2020 Branches and 02 Transaction Offices. These Transaction Offices are expected to launch
in 2021. 03-05-07 Hoa Binh Street, Tan An Ward, Ninh Kieu District,
Can Tho 0292.3820445 0292.3817299
Can Tho City

S20 Le Loi Street, Chau Phu B Ward, Chau Doc City, 0296.3565603
Chau Doc 0296.3561703
BRANCH ADDRESS TEL FAX An Giang Province 0296.3561702

02963.898999 1 Thai Hoc Street, Sao Do Ward, Chi Linh Town,

30-32 Hai Ba Trung Street, My Long Ward, Long Xuyen City, Chi Linh 02203.885522 02203.588000
An Giang 02963.841075 02963.841591 Hai Duong Province
An Giang Province
02963.841816
564 Nguyen Van Cu Street, Gia Thuy Ward, Long Bien District,
Chuong Duong 024.3652.3333 024.36522949
Ba Dinh 521 Kim Ma Street, Ngoc Khanh Ward, Ba Dinh District, Hanoi City 024.37665318 024.37665313 Hanoi City

0254.3716275 140-142 Le Loi Street, Hai Chau Ward, Hai Chau District,
03 Truong Chinh Street, Phuoc Trung Ward, Ba Ria City, Da Nang 0236.3822110 0236.3826062
Ba Ria 0254.3716988 0254.3716276 Da Nang City
Ba Ria - Vung Tau Province
0254.3716989
02623.818444
06 Tran Hung Dao Street, Thang Loi Ward, Buon Ma Thuot
Bao Loc 452 Tran Phu Street, Ward 2, Bao Loc City, Lam Dong Province 02633.726.886 02633.727.778 Dak Lak 0262.2240777 02623.855038
City, Dak Lak Province
0262.3857899
Lot D1-4-TT, NA3 Street, My Phuoc 2 IP, My Phuoc Ward,
North Binh Duong 0274.3697979 0274.3618787
Ben Cat Town, Binh Duong Province Dong Anh Nghia Lai Village, Uy No Commune, Dong Anh District, Hanoi City 024.38835999                                               024.38835888

278 Hoang Van Thu Street, Dinh Ke Ward, Bac Giang City, 26 Le Duan Street, Zone 2, Hoa Phu Ward, Thu Dau Mot City,
Bac Giang 0204.3855.576 0204.3855.575 East Binh Duong 0274.3589999 0274.3582222
Bac Giang Province Binh Duong Province

North Ha Tinh 52 Tran Phu Street, Hong Linh Town, Ha Tinh Province 0239.6262555 0239.6269555 53-55, Vo Thi Sau Street, Quyet Thang Ward, Bien Hoa City,
Dong Nai 0251.3823666 0251.3824191
Dong Nai Province
14-15 Lot B, Ba Trieu Street, Ward 3, Bac Lieu City,
Bac Lieu 0291.3955055 0291.3955055
Bac Lieu Province 22F-24 Phan Dang Luu Street, Ward 06,
East Saigon 028.38407924 028.38407925
Binh Thanh District, HCMC
6-way intersection Street, Dai Phuc Ward, Bac Ninh City,
Bac Ninh 0222.3811.282 0222.3811848
Bac Ninh Province 0277.3872110
Dong Thap 66, 30/4 Street, Ward 1, Cao Lanh City, Dong Thap Province 0277.3872119
0277.3872114
737 Pham Van Dong Street, Yen The Ward, Pleiku City,
North Gia Lai 02693 867927 02693 867929
Gia Lai Province 0255.3632333 0255.3632336
East Dung Quat IP, Dung Quat Economic Zone,
Dung Quat 0255.3632212 0255.3610806
Binh Son District, Quang Ngai Province
Administrative Area, Road 7, Vinh Loc IP, Binh Hung Hoa Ward, 0255.3632797 0255.3616688
North Sai Gon 028.37654666 028.37651327
Binh Tan District, HCMC
415 Le Van Viet Street, Tang Nhon Phu A Ward,
Gia Dinh 028.37307799 028.37361199
55B3, Dong Khoi Boulevard, Phu Khuong Ward, Ben Tre City, District 9, HCMC
Ben Tre 0275.6255888 0275.6253666
Ben Tre Province
33 Quang Trung Street, Hoi Thuong Ward, Pleiku City,
Gia Lai 0269.3875566 0269.3828592
22, 3A Street, Bien Hoa 2 IP, Bien Hoa City, Gia Lai Province
Bien Hoa 0251.3991944 0251.3991947
Dong Nai Province
166 Ha Long Street, Bai Chay Ward, Ha Long City, 0203.3811808
Ha Long 0203.3844746
66C Le Duan Street, Ly Thuong Kiet Ward, Quy Nhon City, 0256.3526666- Quang Ninh Province 0203.3811911
Binh Dinh 0256.3523181
Binh Dinh Province 0256.3526526
Le Hoan Street, Hai Ba Trung Ward, Phu Ly City,
Ha Nam 0226.361 6666 0226.361 6567
314 Binh Duong Boulevard, Phu Hoa Ward, Thu Dau Mot City, Ha Nam Province
Binh Duong 0274.3831227 0274.3838675
Binh Duong Province
Floor 1-5, 11B Cat Linh Street, Quoc Tu Giam Ward, Dong Da
Hanoi 024.39746666 024.39747065
744 Phu Rieng Do Street, Tan Xuan Ward, Dong Xoai Town, District, Hanoi City
Binh Phuoc 0271.3558888 0271.3867575
Binh Phuoc Province
344 Ba Trieu Street, Le Dai Hanh Ward, Hai Ba Trung District,
Ha Thanh 024.36503333 024.32252222
028.39600477 - Hanoi City
Binh Tay 129-129A Hau Giang Street, Ward 5, District 6, HCMC 028.39606217
028.39600478
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BRANCH ADDRESS TEL FAX BRANCH ADDRESS TEL FAX

02 Nguyen Thi Minh Khai Street, Tran Phu Ward, Ha Tinh City, 0239.3857003 537 Tran Hung Dao Street, An Hai Tay Ward, Son Tra District,
Ha Tinh 0239.3857002 South Da Nang 0236.3932999 0236.3932009
Ha Tinh Province 0239.3777886 Da Nang City

66 Nguyen Luong Bang Street, Binh Han Ward, Hai Duong 629 Tran Hung Dao Street, Loc Vuong Ward, Nam Dinh City,
Hai Duong 03203.891259 03203.891807 Nam Dinh 0228.3558666 0228.3558333
City, Hai Duong Province Nam Dinh Province

275 Lach Tray Street, Dang Giang Ward, Ngo Quyen District, Floor 1-2-3, Cau Tien Apartments, 1277 Giai Phong Street,
Hai Phong 0225.3842658 0225.3841117 South Hanoi 024.38699696 024.36281000
Hai Phong City Thinh Liet Ward, Hoang Mai District, Hanoi City

VBB Tower, 05 Me Linh Square, Ben Nghe Ward, District 1, 028.38297245 11 Hoang Dieu, Minh Khai Ward, Hong Bang District, 0225.3552299
Ho Chi Minh 028.38297228 South Hai Phong 0225.3569611
HCMC 028.39141777 Hai Phong City 0225.3841080

23 Phan Chu Trinh Street, Phan Chu Trinh Ward, Floor 1, 2, 3, 4 V6 Tower, Lot V, Himlam New Urban Area,
Hoan Kiem 024.39335566 024.39335580 South Saigon 028.37701634 028.37701635
Hoan Kiem District, Hanoi City 23 Nguyen Huu Tho, Tan Hung Ward, District 7, HCMC

Floor 1-2, Tower 1, Times City, 458 Minh Khai, Vinh Tuy Ward, 0238.3842033
Hoang Mai 024.38383383 024.32115555 Nghe An 21 Quang Trung Street, Vinh City, Nghe An Province 0238.3842192
Hai Ba Trung District, Hanoi City 0238.8685678

78 Hung Vuong Street, Phu Nhuan Ward, Hue City, Nam Yen Village, Hai Yen Commune, Tinh Gia District,
Hue 0234.3811900 0234.3824631 Nghi Son 0237.3613999 0237.3616869
Thua Thien Hue Province Thanh Hoa Province

028.38663983 21 Le Thanh Phuong Street, Van Thang Ward, Nha Trang City, 0258.3826279
028.38624804 Nha Trang 0258.3829682
Hung Vuong 664 Su Van Hanh Street, Ward 12, District 10, HCMC 028.38663984 Khanh Hoa Province 0258.829689
028.38624806
028.38624810
Nguyen Huu Canh Street, Xom Ho Hamlet, Phu Noi 0251.3521888
Nhon Trach 0251.3521999
02 Nguyen Cong Hoan Street, Ban Yen Nhan Ward, Commune, Nhon Trach District, Dong Nai Province 0251.3561628
Hung Yen 0221.3941886 0221.3941044
My Hao Town, Hung Yen Province
1069 Tran Hung Dao Street, Quarter 14, Van Giang Ward,
Ninh Binh 0229.3894444 0229.3894446
17 Quang Trung Street, Van Thanh Ward, Nha Trang City, Ninh Binh City, Ninh Binh Province
Khanh Hoa 0258.3568899 0258.3823806
Khanh Hoa Province
47, 16/4 Street, Kinh Dinh Ward, Phan Rang - Thap Cham
Ninh Thuan 0259.3922755 0259.3922756
89, 3/2 Street, Vinh Bao Ward, Rach Gia City, City, Ninh Thuan Province
Kien Giang 0297.3862749 0297.3866243
Kien Giang Province
186 Chu Manh Trinh Street, Hien Nam Ward, Hung Yen City,
Pho Hien 0221.3596666 0221.3796666
Long Phuong Building, 370 - 372 Tran Phu Street, Dong Ngan Hung Yen Province
Kinh Bac 0222.3818828 0222.3906910
Ward, Tu Son Town, Bac Ninh Province
285 Nguyen Van Troi, Ward 10, Phu Nhuan District,
Phu Nhuan 028.38479966 028.38476226
01 Phan Dinh Phung Street, Quyet Thang Ward, Kon Tum City, Ho Chi Minh City
Kon Tum 0260.3703337 0260.3913516
Kon Tum Province
1A, Hung Vuong Street, Quarter 1, Duong Dong Town,
Phu Quoc 0297.3981037 0297.3626265
Ky Dong 13-13 Bis Ky Dong Street, Ward 9, District 3, HCMC 028.39318968 028.39318953 Phu Quoc District, Kien Giang Province

33 Nguyen Van Cu Street, Ward 1, Da Lat City, Hoai Nam Building, No.06 Group 8 Hai Ba Trung Street,
Lam Dong 0263.3511811 0263.3533666 Phuc Yen 02113.636666 02113.856866
Lam Dong Province Hung Vuong Ward, Phuc Yen Town, Vinh Phuc Province

39 Le Loi Street, Vinh Trai Ward, Lang Son City, 433 Lac Long Quan Street, Tran Quang Dieu Ward,
Lang Son 0205.3859859 0205.3866555 Quy Nhon 0256.3541377 0256.3741007
Lang Son Province Quy Nhon City, Binh Dinh Province

79 Hoang Lien Street, Coc Leu Ward, Lao Cai City, 0214.3828396 0214.3828261 1606A Hung Vuong Boulevard, Gia Cam Ward, Viet Tri City,
Lao Cai Phu Tho 0210.3766666 0210.3766667
Lao Cai Province 0214.3828265 0214.3828326 Phu Tho Province

2A Pham Van Ngu Street, Quarter 5, Ben Luc Town, 145 Hung Vuong Street, Ward 6, Tuy Hoa City,
Long An 0272.3633683 0272.3633687 Phu Yen 0257.3811709 0257.3818186
Ben Luc District, Long An Province Phu Yen Province

No.163 National Highway 1A, Hoi Nai 3 Commune, 01C, Tran Hung Dao Street, Dong My Ward, Dong Hoi City,
East Dong Nai 02513.646151 02513.646157 Quang Binh 0232.3840380 0232.3828347
Trang Bom District, Dong Nai Province Quang Binh Province

05 Hung Vuong Street, Tran Phu Ward, Mong Cai City, 0203.3881676 Quang Nam 35 Tran Hung Dao, Tam Ky City, Quang Nam Province 0235.3813062 0235.3813235
Mong Cai 0203.3757575
Quang Ninh Province 0203.3772886
345 Hung Vuong Street, Tran Phu Ward, Quang Ngai City,
Quang Ngai 0255.3828578 0255.3711482
121, DT 743B Street, Thong Nhat 1 Quarter, Di An Ward, Quang Ngai Province
South Binh Duong 0274.7307777 0274.3710725
Di An Town, Binh Duong Province
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BRANCH ADDRESS TEL FAX BRANCH ADDRESS TEL FAX

25/4 Street, Bach Dang Ward, Ha Long City, 0203.3629213 448-450 Nguyen Trai Street, Thanh Xuan Trung Ward,
Quang Ninh 0203.3827206 Thanh Xuan 024.35578589 024.35579138
Quang Ninh Province 0203.3627972 Thanh Xuan District, Hanoi City

Quang Tri 51 Tran Hung Dao Street, Dong Ha City, Quang Tri Province 0233.3555727 0233.3555726 50A, Dang Van Bi Street, Quarter 4, Binh Tho Ward,
Thu Duc 028.38966806 028.38974176
Thu Duc District, HCMC
028.38359323
Sai Gon 69 Bui Thi Xuan Street, Pham Ngu Lao Ward, District 1, HCMC 028.38325041
028.38359262 Thu Thiem 55-56, Song Hanh Street, An Phu Ward, District 2, HCMC 028.73079668 028.73079530

Sai Thanh 2A-2B-2C Ly Thuong Kiet Street, Ward 12, District 5, HCMC 028.39573378 028.39573380 Tien Giang 152 Dinh Bo Linh Street, Ward 2, My Tho City, Tien Giang Province 0273.3976999 0273.3975878

11 Lang Ha Street, Thanh Cong Ward, Ba Dinh District, 024.39363354 Tra Vinh 05 Le Thanh Ton Street, Ward 2, Tra Vinh City, Tra Vinh Province 0294.3868780 0294.3868791
Operation center 024.39368547
Hanoi City 024.38241395
Tuyen Quang Group 8, Tan Quang Ward, Tuyen Quang City, Tuyen Quang Province 0207.3999666 0207.3999555
51, Highway 3, Group 12, Soc Son Town, Soc Son District,
Soc Son 024.35950000 024.35950505
Hanoi City 9 Nguyen Sy Sach Street, Ha Huy Tap Ward, Vinh City,
Vinh 0238.8699567 0238.8699568
Nghe An Province
3 Tran Hung Dao Street, Cluster 6, Ward 3, Soc Trang City, 02993.883888
Soc Trang 02993.610137
Soc Trang Province 02993.883889 5C Hung Dao Vuong Street, Ward 1, Vinh Long City,
Vinh Long 0270.3888288 0270.836479
Vinh Long Province
16 Le Trong Tan Street, Binh Duong 2 Quarter, An Binh Ward, 0274.3792158 0274.3790134
New Binh Duong
Di An Town, Binh Duong Province 028.37241627 028.37241498 392A Me Linh Street, Khai Quang Ward, Vinh Yen City,
Vinh Phuc 0211.3720920 0211.3720921
Vinh Phuc Province
Tan Binh 108 Tay Thanh Street, Tay Thanh Ward, Tan Phu District, HCMC 028.38157777 028.38106838
0254.3852309
Tan Dinh 72 Pham Ngoc Thach Street, Ward 6, District 3, HCMC 028.38208762 028.38206846 Vung Tau 27 Le Loi, Ward 4, Vung Tau City, Ba Ria - Vung Tau Province 0254.3859874 0254.3859859
0254.3859168
1943-1945 Huynh Tan Phat Street, Quarter 5, Nha Be Town,
New Saigon 028.38738686 028.37810081
Nha Be District, HCMC 810 Cu Chinh Lan Street, Phuong Lam Ward, Hoa Binh City,
Hoa Binh 0218.3858383 0218.3888989
Hoa Binh Province
Tan Son Nhat 366A33 Phan Van Tri Street, Ward 5, Go Vap District, HCMC 028.39856868 028.39856869
Dien Bien Ward, Group 8, Minh Tan Ward, Yen Bai City,
Yen Bai 0216.3858999 0216.3859666
Lot 30A7A, Tra Noc 1 IP, Tra Noc Ward, Binh Thuy District, Yen Bai Province
West Can Tho 0292.3844272 0292.3843056
Can Tho City
584 Tran Phu Street, Cam Tay Ward, Cam Pha City,
East Quang Ninh 0203.3551551 0203.3548548
Lot HH-03, To Huu Street, Van Phuc Ward, Ha Dong District, Quang Ninh Province
West Hanoi 024.33554545 024.33554444
Hanoi City
2 Tran Cao Van, Cam Kho Ward, Hoi An City,
Hoi An 02353.916619 02353.916234
565 Lac Long Quan Street, Xuan La Ward, Tay Ho District, 024.37585399 Quang Nam Province
Tay Ho 024.37581111
Hanoi City 024.37585388
74 Huynh Thuc Khang Street, Gia Nghia City,
Dak Nong 0261.3582635 0261.3582635
0276.3818996 Dak Nong Province
313, 30/4 Street, Quarter 1, Ward 1, Tay Ninh City,
Tay Ninh 0276.3818997 0276.3818998
Tay Ninh Province
0276.3818992 9 Lot 22B, Le Hong Phong Street, Ngo Quyen District, Approved for establishment by the State
East Hai Phong
Hai Phong City Bank of Vietnam on December 31st, 2020
321-323-325 Pham Hung Street, Him Lam Residential Area,
West Saigon 028.37589297 028.37589298
Hamlet 4A, Binh Hung Commune, Binh Chanh District, HCMC 249A Nguyen Luong Bang Street, Hoa Khanh Bac Ward, Approved for establishment by the State
North Da Nang
Lien Chieu District, Da Nang City Bank of Vietnam on December 31st, 2020
Thai Binh Financial and Commercial Center, 79A Le Loi Street,
Thai Binh 02273.839724 02273.845994
De Tham Ward, Thai Binh City, Thai Binh Province Approved for establishment by the State
North Dak Lak 149 Tran Hung Dao, Buon Ho Town, Dak Lak Province
Bank of Vietnam on December 31st, 2020
10 Cach Mang Thang Tam Street, Phan Dinh Phung Ward,
Thai Nguyen 0208.3658200 0208.3658219
Thai Nguyen City, Thai Nguyen Province Approved for establishment by the State
Son La Truong Chinh Street, Son La City, Son La Province
Bank of Vietnam on December 31st, 2020
Phu Tho PVOIL Building, 148 Hoang Quoc Viet Street,
Thang Long 024.37557194 024.37569006
Nghia Tan Ward, Cau Giay District, Hanoi City Approved for establishment by the State
Hau Giang Vo Nguyen Giap Street, Vi Thanh City, Hau Giang Province
Bank of Vietnam on December 31st, 2020
Thanh Cong 01 Thai Ha Street, Trung Liet Ward, Dong Da District, Hanoi City 024.62578686 024.37761747

05 Phan Chu Trinh Street, Dien Bien Ward, Thanh Hoa City,
Thanh Hoa 0237.3728286 02373.728386
Thanh Hoa Province
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BUSINESS NETWORK
SUBSIDIARIES, JOINT-VENTURES AND ASSOCIATES IN VIETNAM OVERSEAS SUBSIDIARIES AND REPRESENTATIVE OFFICES

Vietcombank Leasing Co., Ltd (VCBL) Vietcombank Securities Company, Ltd (VCBS) Representative office in Singapore Representative Office in the US
Floor 4, 25T1 N05 Building, Hoang Dao Thuy Street, Floor 12&17, Vietcombank Tower, 198 Tran Quang Khai, 1 Raffles Place, #26-03 OUB Centre, Suite 1427-1428, 14th floor, One Rockefeller Plaza, NewYork,
Trung Hoa Ward, Cau Giay District, Hanoi City Hoan Kiem District, Hanoi City Singapore 048616 NY 10020
Tel: 024.39289289 Tel: 024.39369990, 024.39366991, 024.39366992 Tel: 65 6323 7558 Tel: (1) 646 937 1999
Fax: 024.39289150 Fax: 024.39360262, 024.39360263 Fax: 65 6323 7559

Vietcombank Remittance Co., Ltd Vietcombank Tower 198 Co., Ltd Vietnam Finance Co. (Vinafico) VCB Money Inc
Floor 4, VCB Ky Dong Tower, 13 - 13 Bis, Ky Dong Street, Floor 14, Room 1406 - Vietcombank Tower, 16/F, Golden Star Building, 20-24, Lockhart Road, Wanchai, 12112 Brookhurst Street, Suite 11, Garden Grove, CA 92840
Ward 9, District 3, HCMC 198 Tran Quang Khai, Hoan Kiem District, Hanoi City Hong Kong United States
Tel: 028.35260888 Tel: 024.39340919 Tel: +852-28653905 Tel: (+1)-714-979-1055
Fax: 028.35260808 Fax: 024.39340918 Fax: +852-28660007 Fax: (+1)- 714-979-1278

Vietcombank - Bonday - Ben Thanh Vietcombank Fund Management Co. (VCBF) Vietcombank Laos Limited
Joint Venture Co., Ltd. (VBB) Floor 15, VCB Tower, 198 Tran Quang Khai Street, No. 12, Unit 15, Lanexang Avenue, Hatsady Village, Chanthabouly
05 Me Linh square, Ben Nghe Ward, District 1, HCMC Hoan Kiem, Hanoi City District, Vientiane Capital, Lao PDR
Tel: 028.39153360 Tel: 024.39364540 Tel: +85621253838
Fax: 024.39364542

Vietcombank Bonday Co., Ltd

35 Nguyen Hue Street, Ben Nghe Ward, District 1, HCMC REPRESENTATIVE OFFICE IN VIETNAM
Tel: 028.38213321, 028.38213345
Fax: 028.38213366, 028.38213366 Representative office in the South
Floor 33-34 VBB Tower, 05 Me Linh Square,
Ben Nghe Ward, District 1, HCMC
Tel: 028.39826468
Fax: 028.39393948

Hong Kong Los Angeles

Vientiane

Singapore
New York

Sydney
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CHAPTER 5

SUSTAINABLE SUSTAINABLE
DEVELOPMENT REPORT
DEVELOPMENT
FOR THE
Overview of Sustainable Development 124

Content of Sustainable Development 128

COMMUNITY Social security activities 134

Typical social security campaigns in 138

2016-2020 period
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OVERVIEW OF SUSTAINABLE DEVELOPMENT

In the early years of the 21st century, along with the rapid socio- Decision No.986/QD-TTg on the Development Strategy of Vietnam In 2020, the world witnessed the emergence and spreading of Scope of the report
economic development, people are increasingly aware of the Banking Sector to 2025, with Orientations to 2030 sets forth the the Covid-19 pandemic, causing negative impacts on all aspects
dangers of accompanying environmental impacts. In 2004, goal of developing a system of financial institutions operating in a of economic and social life at a global scale. In addition, Vietnam Vietcombank’s sustainable development report was prepared
former United Nations Secretary-General Kofi Annan sent a transparent, competitive, secure, sustainable and effective manner; also suffered from the severe consequences of the worst floods within the scope of the Bank’s operations including Head
message to 50 CEOs of major global financial institutions to with diverse structures of ownership, scale and type; based on and landslides in decades, resulting in serious damage to the Office in Hanoi, branches, subsidiaries, representative offices
launch the initiative of incorporating ESG (environment-social- advanced technology and banking governance in line with operational local ecosystem and environment. Once again, the issue of and transaction offices nationwide. Information and data used
governance) factors into the capital market, laying the foundation standards of international practices, towards the development level of sustainable development became extremely urgent, in which to information release were updated according to the Bank’s
for a sustainable development trend in the financial industry. the group of four leading economies in ASEAN by 2025; adapting the core was to create economic growth accompanied by financial year starting from January 1st, 2020 to the end of
In 2015, the Ho Chi Minh Stock Exchange (HOSE) officially to the process of liberalization and globalization; conservation and restoration of nature, promoting positive social December 31st, 2020.
became a partner of the Sustainable Stock Exchanges Initiative impacts.
(SSE Initiative) of the United Nations with the goal of enhancing Decision No. 1604/QD-NHNN approving the green banking
transparency in corporate governance, creating conditions for development scheme in Vietnam, with the aim of increasing With the mission and vision to become the No. 1 bank in Vietnam,
parties to discuss and commit to corporate responsibility for the awareness and social responsibility of the banking system for one of the 100 largest banks in Asia, one of the 300 largest
environment and society. environmental protection and anti-climate change, gradually financial banking groups in the world, one of the 1,000 largest
greening banking operations, directing credit capital into listed companies in the world with great contributions to the
The legal framework for sustainable development of the banking financing environmentally friendly projects, promoting green development of Vietnam, Vietcombank has set a strategic goal
system in Vietnam is also being gradually built and improved, manufacturing, services and consumption, clean and renewable to become the leading bank in terms of customer experience,
creating motivation for the entire banking industry to practice energy; actively contributing to promoting green growth and quality of human resources, risk management, digital banking,
sustainable development: sustainable development; profitability, retail and investment banking, etc.
126 Vietcombank
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OVERVIEW OF SUSTAINABLE DEVELOPMENT

Participation of stakeholders

Interaction method of stakeholders Interaction frequency

SHAREHOLDERS/INVESTORS

Shareholders’ General Meeting Annually or regularly occurred

Periodic information update via IR website, in person, phone, email Quarterly or regularly occurred

Analyst meetings Regularly occurred

CUSTOMERS

Customer care center and hotline 24/7 24/7

Satisfaction surveys Quarterly

Social media and feedback on social media Daily

EMPLOYEES

Satisfaction survey Annual

Annual employee meeting Annual

Internal publications, internal newsletters Daily

Exchanges with Trade union Annual

Environment for engagement, training, exchange Daily

REGULATORY AUTHORITIES

Regular dialogue Monthly

Meeting and discussions at forums Occurred

Special speeches and reports Occurred

Contribution of ideas to draft policies Occurred

COMMUNITY

Coordination with local authorities Annually

Social security programs in coordination with local authorities Quarterly

PRESS AGENCIES

Press conferences Quarterly

Periodic press releases/operating result reports Quarterly

Expert’s replies to press Occurred

SERVICE PROVIDERS

Additional direct meetings, discussions in the bidding process, cooperation with providers Occurred

Competition maintenance Regular in the process

Transparency in bidding Regular in the process

Service quality, clear origin of goods Regular in the process

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CONTENT OF SUSTAINABLE DEVELOPMENT

Pioneering in giving a helping hand to enterprises and
SUSTAINABLE DEVELOPMENT positively towards increasing the proportion of low-cost funding. community development programs, especially joining hands to
Outstanding loans in 2020 increased by 14%, higher than the people in difficulties support fighting against COVID-19 pandemic and supporting
industry average and focused on key sectors and areas of the people affected by the floods in the Central region, etc was
ECONOMIC STANDARD (GRI 200)
economy such as infrastructure development, export promotion, Adhering closely to the direction of the Party, the Government deployed by Vietcombank. Thereby, Vietcombank has contributed
and agriculture and rural development, cutting edge industries, and the direction of the State Bank, with the spirit of actively, to joining hands with the whole country in repelling the pandemic,
Economic efficiency and contribution to the state budget
small and medium-sized enterprises. Credit quality was closely positively joining hands to support people and enterprises supporting people to recover from natural disasters, the pandemic,
controlled; non-performing loans decreased sharply over the directly and indirectly affected by the COVID-19 pandemic actively participated in the cause of education, health care and
In 2020, the world, the region and Vietnam both faced
years. By 2020, the non-performing loan ratio was 0.62% - and the impact of the storms and floods in the Central poverty reduction, etc. thoughout the nation.
complicated and unpredictable developments with the outbreak
exceeding the strategic target schedule and Vietcombank was region, Vietcombank has implemented solutions to support
of the Covid-19 pandemic, climate change, natural disasters,
the bank with the lowest non-performing loan ratio in the customers such as: waiver and reduction of interest and fees; Procurement practices
floods, landslides, thunderstorms, epidemic, etc. in many locations.
group of large credit institutions in the market. The problem restructuring the repayment term; renewing loans to support
In an exceedingly difficult context, the Party, National Assembly
loan coverage was 368% of total non-performing loans, the customers to restore production and business activities; rolling Vietcombank’s procurement activities are carried out centrally,
and Government actively and flexibly managed monetary policy
highest in the Bank’s history and in the market. Service activities out credit packages with reasonable interest rates to support ensuring synchronous use, achieving an efficient procurement
and banking industry to stabilize the macroeconomy, control
changed strongly, non-interest income accounted for over 35% customers such as: Promptly promulgating guidelines for the scale, saving costs and time. All types of regularly procured
inflation and promptly implemented many policies to overcome
of the income structure, of which the proportion of income implementation of Circular No. 01, Directive No. 02, and Official goods are regulated according to commodity standards in each
difficulties and reduce damage caused by the pandemic and
from service activities reached over 28%. The market share of Letter No. 03 of the State Bank of Vietnam on the whole period, included in the annual procurement demand and subject
natural disasters.
international payment and trade finance, FX transaction, card system. Implementing 5 rounds of interest rate reduction for to principle contracts with key suppliers at the beginning of
services continued to maintain the leading position. Vietcombank’s existing loans up to 1.5% for production and business enterprises each financial year. The procurement must always be effective,
As a key State-owned commercial bank in the banking industry,
profit before tax in 2020 reached VND 23,050 billion, the only and individuals in the areas heavily affected by the COVID-19 rational and cost-effective.
Vietcombank has synchronously implemented many solutions
bank to reach a profit of USD billion. With impressive operating pandemic and customers affected by the storms and floods
to achieve the “dual goal”: Preventing and closely controlling
results, Vietcombank has become the largest tax payer among in the Central region. For new loans, Vietcombank continued Annually, Vietcombank assesses, selects and adds suppliers that
the pandemic impacts to the Bank’s network and customers,
all banks in Vietnam and one of the two largest that are listed. to maintain credit supply to customers meeting Vietcombank’s meet the capital capacity, implementation experience and gives
accompanying, sharing and removing difficulties for customers
In 2020, Vietcombank paid VND 8,689 billion as corporate loan conditions with a loan term suitable for the new business priority to the suppliers who commit to protect environment,
affected by the Covid-19 pandemic, while ensuring safe, highly
income tax, being one of the largest tax paying companies. cycle and applied preferential interest rates with the maximum ensure the quality of input materials and not to violate regulations
effective business operations.
This result reflected Vietcombank’s important contribution to the reduction of up to 1%/year for customers in sectors affected on employment.
State budget. by the pandemic. The total amount of interest rate reduction
In 2020, Vietcombank’s total assets exceeded 1 million billion
for existing and new loans in 2020 was about VND 4,000 Anti-corruption
VND and at the same time became the listed company with the
billion. In addition, with the spirit of urgency and seriousness,
largest market capitalization on the Vietnamese stock market.
Vietcombank has drastically implemented debt restructuring Anti-corruption is the responsibility of the whole political system
Deposit growth posted at 10.9% with deposit structure shifting
efforts according to Circular No. 01 throughout the system since under the leadership of the Party, promoting the synergy of
March 2020 to support customers and prevent policy abuse. industries and levels, emphasizing the responsibility of heads of
Customers whose debts have been restructured by Vietcombank agencies, organizations and units, upholding the role of society,
are basically returning to stable operations. organizations, unions and the masses. At Vietcombank, the anti-
corruption work has always been focused, directed and implemented
With the big effort, responsibility and determination of the entire drastically. The Bank’s Management identifies anti-corruption work
Vietcombank system, the solutions implemented to support as one of the key and regular tasks in direction and administration;
customers affected by the Covid-19 epidemic have brought combines prevention and combating, both actively preventing and
into great effect: Vietcombank has supported more than 300 strictly handling corruption acts. In 2020, no corruption cases were
thousand customers affected by the pandemic with outstanding recorded and reported in the whole Vietcombank system.
loans of VND 660 trillion by lowering interest rates/applying
preferential interest rates, accounting for more than 80% of the
total outstanding loans of the whole system. The accumulated
new loan volume for customers affected by the pandemic reaches
nearly VND 900 trillion with more than 167 thousand customers
enjoying preferential treatment. Vietcombank has restructured the
repayment terms, sustaining loan category according to Circular
No. 01 for nearly VND 50 trillion worth of loans.

Continuing and promoting the tradition of being a Green bank -

For the community, in 2020, a series of social security activities,
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CONTENT OF SUSTAINABLE DEVELOPMENT Social standards (GRI 400) appropriate solutions to improve working environment elements.
In addition, Vietcombank’s Trade Union and Youth Union
Employment (GRI 401 – 402) regularly coordinate to organize activities to strengthen employee
engagement such as: organizing activities for children of the staff
Vietcombank’s development strategy to 2025 and vision to 2030 on International Children’s Day of June 1, mid-autumn festival
Environmental standards
is to become the No. 1 Bank in Vietnam, one of the 100 largest (giving movie tickets, amusement park tickets, book camp
banks in Asia, and one of the 300 largest financial banking groups tickets, etc.), giving gifts for the parents, parents-in-law of the
Emissions (GRI 305)
in the world, one of the 1000 largest listed enterprises globally employees on the occasion of the International Day of Older
contributing to the development of Vietnam and the leading bank Persons, organizing activities such as Family Day, “Let’s run”
Exhaust gases Wastewater
in terms of human resources quality. To accomplish those goals, Tournament for children, etc.
Vietcombank has always placed an importance on and prioritized
For means of transport: Vietcombank always use modern The Bank encourages employees to save water at the office
resources in building, fostering and developing the human factor. Competitive, attractive remuneration mechanism, welfare
means of transport that meet emission standards and registered with water consumption closely monitored. Since 2019, the
according to the regulations of the State. In addition, the Bank entire Vietcombank system has stopped using bottled water
In fact, for 5 consecutive years, Vietcombank has maintained Non-salary remuneration mechanism of Vietcombank is in various
performs periodic maintenance/repair of transport vehicles to products, switched to using purified water preserved in glass
its position as the bank with the best working environment forms: birthday, mourning, wedding gifts, vacation, travel expense
ensure safety and fuel economy. Annually, Vietcombank also bottles to multiple reuse, ensuring environmental friendliness
in Vietnam according to the survey results of “Top 100 Best support for Tet, periodic health check, health insurance, critical
reviews and evaluates the quality of vehicles throughout the and saving water resources.
Workplaces in Vietnam” announced annually by Anphabe and illness insurance, preferential credit products for employees, etc.
system to promptly replace old, sub-standard vehicles.
Intage of Japan (Vietcombank was voted to rank 1st in the banking Vietcombank has also paid special attention to female employees
Waste
industry, 2nd in the whole Vietnamese market). At the same time, through expense subsidy to female employees, babysitting/
For emissions from air conditioning systems, generators: The
Vietcombank was also honored to be awarded the certificate of kindergarten cost support and gifts on March 8 and October 20.
bank always uses modern, environmentally friendly equipment Solid waste is classified, collected and treated by staff according
merit “Typical Enterprise for Employees” by the Prime Minister
that meets the highest emission and noise standards. The bank to the process. Ink cartridges, printers, printing paper, ballpoint
for 2 consecutive times. In 2020, Vietcombank was in the top With the current remuneration mechanism, Vietcombank not
performs maintenance according to the supplier’s schedule and pen cores are regularly reused instead of being replaced to
50 most attractive employer brands in Vietnam (according to only retains employees, especially talents but also attracts high-
techniques to ensure high performance, save energy, minimize minimize emission to the environment. No hazardous waste is
Anphabe’s report). quality human resources in the market.
emissions and promptly repairs and replaces old or damaged discharged to the surrounding environment.
equipment.
Employment The relationship between the employees and the employer
Noise

Recruitment, human resources development and training are Vietcombank’s management (the employer) has always listened
No noise
carried out in an open and transparent manner in order to create to and considered employees’ opinions before making changes
equal opportunity for all employees. that directly affect the employees.

Total employees as of 31/12/2020 were 20,062 persons Occupational health and safety
(including employees of VCBS and VCBL), increasing by ~ 5,9%
compared with those of 2019. Employees at Vietcombank are entitled to annual health checks
and participate in fire prevention and fighting training courses.
Transparent, professional working environment where all
voices are listened and all good work recognized For employees with treasury profession, Vietcombank provides
additonal training in toxic, money counting, loading and
In order to create the leading working environment in the banking unloading, etc.
industry for 5 consecutive years (According to Anphabe’s survey),
Vietcombank has focused on comprehensively innovating human Training is diverse and comprehensive in both expertises and
resources management. Vietcombank has implemented many skills and capacities
activities to create the best working environment for all employees,
including: Evaluation, rewarding, training and development of staffs, Clear training roadmap:
encouraging advance-making individuals, typical examples have
been carried out to the right persons, the right achievements and The training programs organized by Vietcombank are core
at the right time; Motivation mechanism has always been given training programs built according to the roadmap associated
high attention, associated with work performance evaluation, salary with each job position. Based on the training roadmap of each
payment, planning, appointment and encouragement of staff to job position, the staff will be arranged to be trained in groups of
Environment (GRI 307) constantly try and improve work performance; The quantity and specialized programs, meeting the necessary requirements of the
quality of training courses have been improved, and the examination/ job through many forms of training (in-class, video conference,
Vietcombank always pays attention to environmental protection, electricity, water, paper and office materials; is conscious of skill examination has been seriously implemented; Since 2017, E-learning or other online forms, etc). Accordingly, the training
towards a green banking model and creating a friendly working keeping the green-clean-beautiful working environment. Vietcombank has carried out annual Employee Satisfaction Surveys roadmap has been fully developed for 100% of leadership and
environment for employees. Besides, Vietcombank always conducted by an independent 3rd party who is the leading survey management positions at the branches to help to synchronously
upholds building a green corporate culture, focuses on saving company in Vietnam to collect and assess results and recommend train incumbent staff as well as potential staff.
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CONTENT OF SUSTAINABLE DEVELOPMENT

The training contents are diverse and abundance, closely following Recruitment policy, salary & career roadmap Vietcombank has implemented an “expert” remuneration Social security activities
the strategic goals of the professional divisions and practical: mechanism for highly qualified workers, especially capable/
Effective recruitment policy to attract high-quality human scarce workers in the market who can handle difficult and Vietcombank’s social security activities are constantly being
The contents are selected to develop the annual program, closely resources: In recent years, Vietcombank has constantly innovated complicated jobs, etc., directly responsible for the high risk tasks promoted with many practical and meaningful programs,
following the actual business needs through the implementation and perfected its recruitment policy to improve efficiency and or developing important and steering policies. contributing to the overall development of the community
of training needs analysis, ensuring at least 70% of the time attract high-quality human resources in the market to implement and society. A series of social security activities have been
spent on practice and sharing practical solutions. the Bank’s business strategy. Specifically: The average income of employees at Vietcombank has implemented by Vietcombank for many years with active
continuously increased over the years, always standing in the participation from head office to branches across the country
Developing specialized and advanced training programs with Vietcombank has a flexible and appropriate recruitment top of the banking industry and reaching a high level compared aimed at sharing difficulties and improving the quality of life
vocational certificates: policy, and market attractive. For each subject, especially to the market average.
experienced, highly qualified workers/experts, Vietcombank
In the annual training list, Vietcombank plans to send staff to will have specific recruitment policies/mechanisms. This helps Vietcombank has implemented an “expert” remuneration
participate in or organize intensive and advanced training courses Vietcombank attract good candidates and recruit high-quality mechanism for highly qualified workers, especially capable/
in professional skills, especially professional certification courses employees. scarce workers in the market who can handle difficult and
of prestigious domestic and international organizations such complicated jobs, etc., directly responsible for the high risk tasks
as: Moody’s Analytics & Omega Performance’s International Forms and methods of recruitment are diversified: online, in- or developing important and steering policies.
Standard Banking Credit Program with globally recognized class recruitment, examination, etc. Vietcombank has improved
certificates; IRCA Certified Lead Auditor, Certified Internal Auditor and innovated its recruitment method by investing in digital Career roadmap: Vietcombank has built career development
(CIA), HR Professional Certificates or some specialized training transformation, upgrading and perfecting the centralized online roadmaps for a number of work positions and is developing
programs such as Intensive financial due diligence, Operational recruitment software system at the Head Office. Therefore, roadmaps for the remaining positions.
risk management, Credit risk management for managers/leaders. Vietcombank has ensured effective recruitment from receiving
applications, examination, scoring, ensured public and transparent Regarding human rights
Focusing on improving leadership capacity at all levels: results, reducing costs and most importantly, ensuring the quality of
human resources. Non-discrimination
Training for management is provided to all manager positions, All decisions related to employees of Vietcombank are based on
including: Management, Head/Deputy at the Head Office, Branch The Bank has promoted cooperation with prestigious clear criteria, with absolutely no bias against religion, gender, etc.
Managers/Deputy Managers, Branch Heads/Deputy Heads. In universities to research, exchange and implement sponsorship
2017-2019 period, there were 26 rounds of the Management programs to attract talented students and access quality human No child labor of the poor in difficult areas across the country. With the good
members participating in 18 high-level training programs around resources. Vietcombank has signed cooperation agreements with Vietcombank does not use child labor. tradition of the banking industry, implementing the Party and
the world. Since 2012, Vietcombank has cooperated with leading leading universities in Vietnam: National Economics University, State’s policies on promoting social security to create a driving
partners in the educational sector to implement the program Foreign Trade University, Banking Academy, Academy of No forced or compulsory labor force for sustainable development, Vietcombank’s social security
“Training for Branch Managers’ Qualification” for the department Finance and will continue to expand cooperation with other Vietcombank has always complied with the provisions of the activities have constantly been promoted. In 2020, Vietcombank
heads at the Head Office and Branch Managers/Deputy leading universities in the future. labor code. Forced and compulsory labor is not accepted at has committed/implemented social security support for the
Managers. Annually, Vietcombank conducts many title-specific Vietcombank. community with the amount of nearly VND 350 billion, nearly
training classes for the branch managers/deputy managers and VND 42 billion of which supports the prevention and control
in-depth skill training courses for senior managers (Working Responsibility for the community and society. of Covid-19 pandemic, making efforts to assist Government in
effectively with the press, Building a personal image, etc). repelling pandemic and supporting people’s lives. Vietcombank’s
Green bank social security activities are focused on housing for the poor,
construction of schools, medical facilities and infrastructure works
Towards the goal of becoming a Green bank with sustainable in disadvantaged areas, rural, remote and isolated areas, etc.,
development for the community, Vietcombank has accompanied flood relief and fund for the poor, among which education and
the program “For A Green Vietnam” with the aim of raising health are two key areas that Vietcombank pays special attention
awareness, responsibility and promoting its proactive, creative to and widely implements programs in many localities across the
role, etc of union officials, union members and young people all country, contributing to making popular Vietcombank’s brand.
over the country in participating in planting, caring and protecting
trees, contributing to environmental protection, climate change
response and sustainable development of the country. In
2019, Vietcombank was also the first bank to be granted a
USD 200 million credit by the Japan Bank for International
Cooperation (JBIC) to support renewable energy, green energy
and environmental protection projects in Vietnam.
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SOCIAL SECURITY ACTIVITIES

DATA ON SOCIAL COMMUNITY ACTIVITES IN 2020 3. AREAS:

AND IN 2016-2020 PERIOD
Value realized in 2020
No. Funding Purposes
(Unit: VND million)
1. TOTAL SOCIAL
SECURITY DATA:
Total amount of funding for
1 Education 159.190
Vietcombank’s social security

5 YEARS
activities in 2020 was:
2 Healthcare 20.342
(2016 -2020)

1.120.563
3 COVID-19 37.663

2020 4 Build houses for the poor/solidarity houses 57.270

386.452 VND MILLION 5 Overcome disaster consequences 29.620

VND MILLION

6 Other areas 82.367

4. TYPICAL SOCIAL SECURITY PROGRAMS/WORKS IMPLEMENTED

2. REGION: BY VIETCOMBANK IN 2020:

2020 No. Name of Program Total (Unit: VND billion)

No. Region
(Unit: VND million)

1 Building Ly Nam De secondary school, Hong Minh, Hung Ha, Thai Binh province 10
1 Northwest region 111.779
2 Building houses for the poor in Dak Lak province 4
2 Central Highlands 10.890 3 Building Dinh Long commune secondary school, Yen Dinh district, Thanh Hoa province 6

4 Building Nguyen Van Dinh primary school, Moc Hoa district, Long An province 5
3 Southwest region 34.853
5 Building Tran Kim Xuyen secondary school; Huong Son district, Ha Tinh province 7
4 Other provinces/cities 228.930
6 Building Cam Doai commune medical station - Cam Giang district, Hai Duong province 3
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SOCIAL ACTIVITIES
OF VIETCOMBANK

With the throughout goal

toward a green bank and
sustainable development for
the community, Vietcombank’s
social activities are increasingly
promoted with many practical
and meaningful programs,
contributing to the general
development of the community
and society.

The social activities have been performed In 2020, Vietcombank spent more than
by Vietcombank for many years with VND 386.5 billion for social security
active participation from head office and activities. During 2016 - 2020 period,
all branches. The activities aim to alleviate the amount for this activity was nearly
difficulties and improve living conditions VND 1,121 billion.
for the poor in disadvantaged regions in
the country.
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TYPICAL SOCIAL SECURITY CAMPAIGNS

IN 2016-2020 PERIOD

FOR A GREEN VIETNAM “For A Green Vietnam” was a program organized by the Secretariat of the Central
GIVING HELPING HAND To implement the national program on sustainable poverty reduction and to respond
Committee of the Ho Chi Minh Communist Youth Union in collaboration with the to the movement “Join hands for the Poor - no one is left behind”, in 2019, 2020,
TO THE POOR, NO ONE
Executive Boards of provinces/cities in 63 provinces and cities nationwide with the Vietcombank’s Labor Union encouraged its officers to join hands to support the poor
goal to enhance awareness, responsibility and promote the role and creativity of union
LEFT BEHIND and received 100% response from officers and employees in the whole system. They
members and adolescents in planting, caring and protecting trees, contributing to voluntarily contributed at least their one-day salary, and donated nearly VND 12 billion
environmental protection, climate change response and sustainable development of the to bring a better life to the poor in disadvantaged areas across the country.
country; the program aimed to fulfil targets of Resolution of the 11th National Assembly
to plant 30 million new trees. This was a meaningful program organized by the Central Committee of the Vietnam
Fatherland Front in coordination with the Steering Committee of the National Target
With the practical sense of environmental protection, the program received special Program that spread widely to all walks of life and received great support from domestic
attention of leaders of the Party, State, Government, the National Assembly and and foreign organizations and individuals. The amount contributed by Vietcombank’s
ministries, sectors, localities as well as artists, movie actors and actresses, scientists, labor union members and employees was a significant resource along with the State’s
prestigious industry experts who accompanied and encouraged people and fans to resources to care for the Poor and reduce poverty, especially for poor households in
advocate the program. disadvantaged areas and ethnic minorities in order to achieve the noble and humane
goal “no one left behind”.
As a commercial bank with leading business efficiency in Vietnam’s banking system,
with the goal of being a Green Bank for sustainable development that benefits the
community, Vietcombank was honored to sponsor the program “For a Green Vietnam”
to help build 63 “by the youth” roads and gardens in 63 provinces and cities nationwide.
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TYPICAL SOCIAL SECURITY CAMPAIGNS

IN 2016-2020 PERIOD
“Greenness for life” is a project aiming to enhance awareness of primary students about
SPONSORING VIETNAMESE Vietnamese National Talent Award is annually co organized by Vietnam Association for
GREENNESS FOR LIFE
Promoting Education and Dan Tri News, which initially aimed to encourage and honor the importance of environmental protection, which was deployed by Vietcombank in some
NATIONAL TALENT AWARD
talents in IT - Communication. Over the years, Vietnamese National Talent Award has primary schools in Ha Noi in late 2016 and early 2017. The largest desire of the organizers
been increasingly expanded with many other fields such as Science and Technology, of this project is to develop awareness of students in community responsibility through
Medicine, Environment and Talent encouragement. Vietcombank has accompanied this meaningful activities.
award for years with a desire to join hands with the organizers to arouse creativity
and researchability of individuals and organizations to bring practical solutions to the With familiar contents, the volunteers of “Greenness for life” program have skillfully
community and promote the economic and social development in many fields. inspired awareness of environmental protection for the children in Ha Noi via attractive
and interesting interactive games. Participating in the program, the primary students not
only engage in interesting activities but are also guided to identify organic and inorganic
waste and put waste into light green and dark green bins provided by Vietcombank.

Through each specific activity, the students more clearly understand the necessity of
waste sorting, biodegradable waste and non-biodegradable waste that must be properly
handled to be recycled before being discharged into the environment. This helpful
practical knowledge needs to be kept in mind by youngsters to frequently apply in their
daily activities. In addition, the children also participate in meaningful games such as
puzzles related to environmental protection.

These experiences have brought the students comfortable moments when they join
hands to broadcast the message of protecting green - clean - beautiful environment.
This is also the effort of Vietcombank to increasingly build the image of a Green Bank
for sustainable development that benefits the community.

SUPPORTING “LIGHT UP “Light up Vietnamese children’s dreams” is an annual activity (which was initially
organized in 2008), co-organized by Ho Chi Minh Communist Youth Union and Ho
VIETNAMESE CHILDREN’S
Chi Minh Young Pioneer Organization for poor and studious children, street children,
DREAMS” PROGRAM and children in difficult circumstances. For years of implementing and organizing in
many provinces and cities such as Ha Noi, Nghe An, Ho Chi Minh City, Can Tho, and
Da Nang, etc., the program has received special attention from Government and Party
leaders and valuable supports from the organizations and individuals, for the purposes
of joining hands with the community to help children in difficult circumstances, lighting
up belief and determination for those children to overcome difficulties. Vietcombank has
accompanied the program since 2008 as a co-organizer.
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TYPICAL SOCIAL SECURITY CAMPAIGNS

IN 2016-2020 PERIOD

TOWARD THE HOMELAND’S Deeply understanding the importance of preserving national sea sovereignty, during
GIVING COWS TO PEOPLE In 2016, Vietcombank developed the project to sponsor thousands of cows to the
more than half a century accompanying the national history of striving, building and poor households in districts in Central Highlands and bordering Central Highlands. The
SEA AND ISLANDS LIVING IN MOUNTAINOUS
defending the Homeland as well as develop economy and society, with the heart toward program was highly appreciated by the Central Highlands Steering Committee by its
the homeland’s sea and islands, Vietcombank has conducted many meaningful activities
AREAS BORDERING THE practicality and effectiveness in improving economic and living conditions for the people
such as: Launching the campaign “For beloved Truong Sa” to get donation up to VND 5 CENTRAL HIGHLANDS, in mountainous areas, helping them develop stable household economy and getting
billion from the employees of Vietcombank among VND 50 billion of donation from the HELPING THEM OUT OF sustainably out of poverty.
banking industry, improving living conditions of people, officers and soldiers on Truong POVERTY
Sa Islands, giving them more resources and willpower for their mission of protecting
and defending national sea sovereignty; Donating for the programs “Gratitude net for
Hoang Sa and Truong Sa fishermen”, “Stones to build Truong Sa”; Funding the project
of connecting Co To island to national electricity grid; Giving a special loudspeaker
system with value of more than VND 3 billion to Vietnam Coastal Guards; Giving 03
CQ lifeboats valued at VND 10.5 billion to Vietnam’s Navy High Command.

SUPPORTING ENTERPRISES In 2020, following the regulations of the Government, the Ministry of Health, the State
Bank of Vietnam, Vietcombank proactively developed a plan to respond to emergency
AND COMMUNITY TO REPEL
situations before the serious impact of the COVID-19 epidemic, ensuring the health
COVID-19 PANDEMIC and safety of employees and customers and maintaining the bank’s business continuity.
Vietcombank implemented many practical solutions and actions by pioneering to
support enterprises and people to get loans through 5 times reducing the interest rate
for customers directly or indirectly affected by the COVID-19 epidemic. Total amount
of sharing profit by reducing interest rate reached a record of VND 3,700 billion.
Vietcombank promoted social security to support the community with many meaningful
activities across localities, contributing amount of nearly VND 40 billion to the prevention
and control of the COVID-19 epidemic.
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IN 2016-2020 PERIOD

SUPPORTING PEOPLE IN In 2020, natural disasters, storms and floods severely affected the central provinces,
EDUCATION Not only building new schools, Vietcombank also takes lead in sponsoring learning and
making the lives of the people here very difficult. Vietcombank widely launched to teaching equipment and upgrading facilities for schools nationwide. Furniture, library,
THE CENTRAL REGION
organizations, unions and employees to implement the spirit of “sharing of rice and computer rooms or fresh water tanks, garages, sports grounds, etc. are simple but
AFFECTED BY NATURAL clothes”, “the intact leaves cover the tattered ones”, join hands to help, share difficulties very practical for schools in difficult situations. These activities significantly contribute to
DISASTERS, FLOODS and encourage people, officers and soldiers of the central provinces to overcome the improving and enhancing teaching and learning quality for both teachers and students.
harsh circumstances of floods and storms. Vietcombank organized many delegations In addition, empowering the poor students to ease their worry on their way to schools
into the heavily hit locations to directly meet and encourage people and affected is also taken care of by Vietcombank through donation of over 10,000 life jacket
households; teachers and poor students; officers and soldiers performing rescue and briefcases for poor students in flooded lands and wetlands; and many bicycles to poor
salvage tasks, etc.; relevant units such as Trade Union and Youth Union also carried out pupils and students in other hardship areas.
many campaigns, donated clothes, books, school supplies, etc. to support and encourage
people, soldiers and pupils in the central provinces to overcome the harsh circumstances Every year, Vietcombank also rewards scholarships to pupils and students with
of storms and floods. The amount of donation for natural disaster recovery in 2020 outstanding academic achievements or having great learning efforts despite difficult
was nearly VND 30 billion. situations through the Scholarship Funds, Study Encouragement Funds, etc. Through
these activities, Vietcombank desires to contribute to lighting up the confidence of the
Besides, many other practical and meaningful activities such as regional development children who are less fortunate and lighting up passion and traditional learning spirit of
programs in Northwest, Central highlands, and Southwest; educational and healthcare the Vietnamese younger generation.
development; building gratitude houses; supporting disaster fund in central region; and
other programs of caring for families under preferential treatment and helping the poor,
the disabled, poor children, and the old under special circumstances are always given
special attention and well implemented by Vietcombank.

Education and healthcare are two important areas that Vietcombank always pays
special attention to. Social welfare activities in these areas have been carried out by
Vietcombank in many locations across the countries over the past time.

HEALTHCARE Not only funding construction of hospitals, healthcare centers, and buying necessary
equipment for diagnosis and treatment, Vietcombank also put emphasis on sharing
difficulties with patients such as supporting their surgery costs and giving aids to patients,
especially poor children in difficult circumstances. The activities to provide meals to
hospital patients in many localities are also regularly undertaken by Vietcombank’s union
group. Besides the programs that Vietcombank coordinated with local authorities and
agencies, each Vietcombank’s staff is fully aware of daily contribution to many practical
and meaningful programs to share the responsibility of building a more civilized and
beautiful society.
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CHAPTER 6

EMBRACE THE FINANCIAL STATEMENTS

ACCOMPLISHMENTS
Bank Information 149

Report of the Board of Management 151

Independent Auditor’s Report 152

Consolidated balance sheet 154

Consolidated statement of income 157

Consolidated statement of cash flows 158

Notes to the consolidated financial statements 160

148 Vietcombank
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BANK INFORMATION

ESTABLISHMENT AND Establishment and Operation Licence No. 138/GP-NHNN dated 23 May 2008
issued by the State Bank of Vietnam, Decision No. 2719/QD-NHNN dated 27
OPERATION LICENCE
December 2011, Decision No. 523/QD-NHNN dated 22 March 2012, Decision
No. 1547/QD-NHNN dated 6 August 2014, Decision No. 2182/QD-NHNN dated 26
October 2015, Decision No. 95/QD-NHNN dated 18 January 2017, Decision No. 891/
QD-NHNN dated 8 May 2017, Decision No. 2293/QD-NHNN dated 31 October
2017, Decision No. 300/QD-NHNN dated 21 February 2019 and Decision No. 2447/
QD-NHNN dated 25 November 2019 promulgated by the State Bank of Vietnam
amending and supplementing the operations of Joint Stock Commercial Bank for
Foreign Trade of Vietnam.

BUSINESS REGISTRATION Business Registration Certificate No. 0103024468 dated 2 June 2008 issued by Hanoi
Authority for Planning and Investment, Enterprise Code No. 0100112437 was reissued
CERTIFICATE
for the thirteenth time on 16 January 2019.

JOINT STOCK COMMERCIAL BANK FOR MEMBERS OF THE BOARD OF DIRECTORS DURING THE YEAR AND UNTIL THE ISSUING
DATE OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOREIGN TRADE OF VIETNAM Mr. Nghiem Xuan Thanh Chairman Reappointed on 27 April 2018

Consolidated Financial Statements Mr. Pham Quang Dzung Member Reappointed on 27 April 2018
for the year ended 31 December 2020
Mr. Nguyen Manh Hung Member Reappointed on 27 April 2018

Mr. Nguyen My Hao Member Reappointed on 27 April 2018

Mr. Eiji Sasaki Member Reappointed on 27 April 2018

Mr. Pham Anh Tuan Member Reappointed on 27 April 2018

Mr. Hong Quang Member Appointed on 27 April 2018

Mr. Truong Gia Binh Independent Member Appointed on 27 April 2018

Mr. Do Viet Hung Member Appointed on 26 April 2019

MEMBERS OF THE BOARD OF MANAGEMENT DURING THE YEAR AND UNTIL THE ISSUING
DATE OF THE CONSOLIDATED FINANCIAL STATEMENTS
Mr. Pham Quang Dzung Chief Executive Officer (“CEO”) Reappointed on 1 November 2019

Mr. Dao Minh Tuan Deputy CEO Reappointed on 15 June 2017

Mr. Pham Manh Thang Deputy CEO Reappointed on 10 March 2019

Ms. Nguyen Thi Kim Oanh Deputy CEO Reappointed on 26 December 2019

Ms. Dinh Thi Thai Deputy CEO Reappointed on 9 June 2020

Mr. Eiji Sasaki Deputy CEO Appointed on 15 December 2017

Ms. Phung Nguyen Hai Yen Deputy CEO Appointed on 15 December 2017

Mr. Le Quang Vinh Deputy CEO Appointed on 15 December 2017

Mr. Nguyen Thanh Tung Deputy CEO Appointed on 1 April 2019

Mr. Dang Hoai Duc Deputy CEO Appointed on 1 April 2019

150 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
151

BANK INFORMATION REPORT OF THE BOARD OF MANAGEMENT

The Board of Management of Joint Stock Commercial Bank for Foreign
MEMBERS OF THE SUPERVISORY BOARD DURING THE YEAR AND UNTIL THE ISSUING
Trade of Vietnam (“the Bank”) presents this report and the accompanying
DATE OF THE CONSOLIDATED FINANCIAL STATEMENTS
consolidated financial statements of the Bank and its subsidiaries for year
ended 31 December 2020.
Mr. Lai Huu Phuoc Chair of the Board Appointed on 4 November 2020

Ms. Truong Le Hien Chair of the Board Retired on 4 November 2020 THE BANK’S BOARD The Board of Management is responsible for the consolidated financial statements
which give a true and fair view of the consolidated financial position of the Bank and
OF MANAGEMENT’S
Ms. La Thi Hong Minh Member Reappointed on 27 April 2018 its subsidiaries, and of their consolidated results of operations and consolidated cash
RESPONSIBILITY IN flows for the year. In preparing the consolidated financial statements, the Board of
Ms. Do Thi Mai Huong Member Reappointed on 27 April 2018 RESPECT OF THE Management is required to:
CONSOLIDATED FINANCIAL
STATEMENTS • Select suitable accounting policies and then apply them consistently;
• Make judgments and estimates that are reasonable and prudent;
• State whether applicable accounting standards have been followed or not, subject
to any material departures disclosed and explained in the consolidated financial
statements; and
• Prepare the consolidated financial statements on the going concern basis unless
Mr. Le Hoang Tung
CHIEF ACCOUNTANT it is inappropriate to presume that the Bank and its subsidiaries will continue their
Appointed on 15 December 2017
business.

The Bank’s Board of Management is responsible for ensuring that proper accounting
records are kept to disclose, with reasonable accuracy at any time, the financial position
of the Bank and its subsidiaries and to ensure that the accounting records comply with
LEGAL REPRESENTATIVE Since 1 November 2014 the applied accounting system. It is also responsible for safeguarding the assets of the
Mr. Nghiem Xuan Thanh Bank and its subsidiaries and hence for taking reasonable steps for the prevention and
Title: Chairman of the Board of Directors detection of fraud and other irregularities.

The Bank’s Board of Management confirmed that it has complied with the above
requirements in preparing the accompanying consolidated financial statements.

AUTHORISED SIGNATURE ON FINANCIAL STATEMENTS Since 4 March 2020

Ms. Phung Nguyen Hai Yen
(According to Letter of Authorisation No. 64/UQ-VCB-CSTCKT dated 4 March 2020)
Title: Deputy CEO
STATEMENT BY THE BANK’S The Bank’s Board of Management does hereby state that, in its opinion, the
accompanying consolidated financial statements give a true and fair view of the
BOARD OF MANAGEMENT
consolidated financial position of the Bank and its subsidiaries as at 31 December
2020, and of the consolidated results of operations and consolidated cash flows for the
year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese
Accounting System applicable to credit institutions issued by the State Bank of Vietnam
THE BANK’S HEAD OFFICE 198 Tran Quang Khai Street
and the relevant statutory requirements applicable to financial reporting.
Hoan Kiem District, Hanoi, Vietnam

For and on behalf of the Board of Management:

AUDITOR KPMG Limited

Vietnam

Ms. Phung Nguyen Hai Yen

Deputy CEO
Hanoi, 31 March 2021
152 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
153

INDEPENDENT AUDITOR’S REPORT

To: The Shareholders

AUDITOR’S OPINION In our opinion, the consolidated financial statements give a true and fair view, in all
JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE material respects, of the consolidated financial position of the Bank and its subsidiaries
OF VIETNAM as at 31 December 2020 and of their consolidated results of operations and their
consolidated cash flows for the year then ended in accordance with Vietnamese
We have audited the accompanying consolidated financial statements of Joint Stock Accounting Standards, the Vietnamese Accounting System applicable to credit institutions
Commercial Bank for Foreign Trade of Vietnam (“the Bank”) and its subsidiaries, which issued by the State Bank of Vietnam and the relevant statutory requirements applicable
comprise the consolidated balance sheet as at 31 December 2020, the consolidated to financial reporting.
statement of income and the consolidated statement of cash flows for the year then
ended and the explanatory notes thereto which were authorised for issue by the Bank’s
Board of Management on 31 March 2021, as set out on pages 6 to 78.

THE BANK’S BOARD The Bank’s Board of Management is responsible for the preparation and fair presentation
of these consolidated financial statements in accordance with Vietnamese Accounting
OF MANAGEMENT’S
Standards, the Vietnamese Accounting System applicable to credit institutions issued by
RESPONSIBILITY the State Bank of Vietnam and the relevant statutory requirements applicable to financial
reporting, and for such internal control as the Board of Management determines is
necessary to enable the preparation of the consolidated financial statements that are
free from material misstatement, whether due to fraud or error.

AUDITOR’S Our responsibility is to express an opinion on these consolidated financial statements

KPMG Limited Wang Toon Kim Pham Huy Cuong
based on our audit. We conducted our audit in accordance with Vietnamese Standards
RESPONSIBILITY Vietnam Practicing Auditor Registration Practicing Auditor Registration
on Auditing. Those standards require that we comply with ethical requirements and plan
Audit Report Certificate No. 0557-2018-007-1 Certificate No. 2675-2019-007-1
and perform the audit to obtain reasonable assurance about whether the consolidated
No.: 19-02-00681-21-4 Deputy General Director
financial statements are free of material misstatement.
Hanoi, 31 March 2021

An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the financial statements. The procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Bank’s preparation
and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of internal control of the Bank and its subsidiaries. An
audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Bank’s Board of Management,
as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
154 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
155

CONSOLIDATED BALANCE SHEET Form B02/TCTD-HN

(Issued in accordance with CONSOLIDATED BALANCE SHEET Form B02/TCTD-HN
(Issued in accordance with
as at 31 December 2020 Circular No. 49/2014/TT-NHNN as at 31 December 2020 Circular No. 49/2014/TT-NHNN
dated 31 December 2014) dated 31 December 2014)

31/12/2020 31/12/2019 31/12/2020 31/12/2019

No. ITEMS NOTE No. ITEMS NOTE
VND million VND million VND million VND million
A ASSETS B LIABILITIES AND SHAREHOLDERS’ EQUITY
I Cash on hand, gold, silver and gemstones 4 15,095,394 13,778,358 I Amounts due to the Government and the State Banks 16 41,176,995 92,365,806
II Balances with the State Banks 5 33,139,373 34,684,091 II Deposits and borrowings from other credit institutions 17 103,583,833 73,617,085
III Balances with and loans to other credit institutions 6 267,969,645 249,470,372 1 Deposits from other credit institutions 100,916,433 71,046,512
1 Balances with other credit institutions 204,713,783 190,100,329 2 Borrowings from other credit institutions 2,667,400 2,570,573
2 Loans to other credit institutions 64,255,862 62,370,043 III Deposits from customers 18 1,032,113,567 928,450,869
3 Allowance for balances with and loans to other credit institutions (1,000,000) (3,000,000) IV Derivative financial instruments and other financial liabilities 8 52,031 -
IV Trading securities 7 1,954,061 1,801,126 V Funds for finance, entrusted investments and entrusted loans 19 14,679 20,431
1 Trading securities 1,991,861 1,889,628 VI Valuable papers issued 20 21,240,197 21,383,932
2 Allowance for trading securities (37,800) (88,502) VII Other liabilities 33,953,811 26,021,232
V Derivative financial instruments and other financial assets 8 - 98,312 1 Accrued interest and fee payables 21(a) 9,797,834 10,363,285
VI Loans to customers 820,545,467 724,473,254 2 Deferred tax liabilities - 22,023
1 Loans to customers 9 839,788,261 734,706,891 3 Other liabilities 21(b) 24,155,977 15,635,924
2 Allowance for loans to customers 10 (19,242,794) (10,233,637) TOTAL LIABILITIES 1,232,135,113 1,141,859,355
VIII Investment securities 11 156,931,097 167,529,689
1 Available-for-sale securities 42,148,831 35,699,090 VIII Shareholders’ equity
2 Held-to-maturity securities 115,382,544 132,271,302 1 Capital 42,428,821 42,428,821
3 Allowance for investment securities (600,278) (440,703) a Charter capital 37,088,774 37,088,774
IX Capital contributions, long-term investments 2,239,006 2,464,493 c Share premium 4,995,389 4,995,389
2 Investments in joint-ventures 12(a) 714,935 940,807 g Other capital 344,658 344,658
3 Investments in associates 12(b) 11,248 10,863 2 Reserves 14,925,803 12,186,141
4 Other long-term investments 12(c) 1,587,823 1,587,823 3 Foreign exchange differences 5,103 16,361
5 Allowance for long-term investments 12(c) (75,000) (75,000) 4 Differences upon asset revaluation - 113,011
X Fixed assets 8,539,362 6,706,503 5 Retained profits 36,650,228 26,126,544
1 Tangible fixed assets 13 5,411,139 4,445,709 a Previous year’s retained profits 22,803,530 12,188,552
a Cost 12,866,189 11,162,170 b Current year’s retained profits 13,846,698 13,937,992
b Accumulated depreciation (7,455,050) (6,716,461) 6 Non-controlling interest 85,024 83,459
3 Intangible fixed assets 14 3,128,223 2,260,794 TOTAL SHAREHOLDERS’ EQUITY 22(a) 94,094,979 80,954,337
a Cost 4,211,880 3,050,669 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,326,230,092 1,222,813,692
b Accumulated amortisation (1,083,657) (789,875)
XII Other assets 19,816,687 21,807,494
1 Receivables 15(a) 6,668,595 8,830,390
2 Accrued interest and fee receivables 15(b) 7,206,125 8,064,808
3 Deferred tax assets 15(c) 909,263 405,543
4 Other assets 15(d) 5,036,638 4,510,592
5 Allowance for other assets 15(d) (3,934) (3,839)
TOTAL ASSETS 1,326,230,092 1,222,813,692

The accompanying notes are an integral part of these consolidated financial statements The accompanying notes are an integral part of these consolidated financial statements
156 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
157

CONSOLIDATED BALANCE SHEET Form B02/TCTD-HN

(Issued in accordance with CONSOLIDATED STATEMENT Form B03/TCTD-HN
(Issued in accordance with

OF INCOME
as at 31 December 2020 Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
dated 31 December 2014) dated 31 December 2014)
for the year ended 31 December 2020

31/12/2020 31/12/2019
No. ITEMS 2020 2019
VND million VND million No. ITEMS NOTE
VND million VND million
OFF-BALANCE SHEET ITEMS
1 Interest and similar income 24 69,205,134 67,665,496
1 Credit guarantees 654,296 292,563
2 Interest and similar expenses 25 (32,919,659) (33,127,768)
2 Foreign exchange commitments 116,656,912 91,594,629 I Net interest income 36,285,475 34,537,728
Forward buying commitments 53,984,032 25,775,812 3 Fee and commission income 26 10,588,163 9,005,109
Forward selling commitments 62,672,880 65,818,817 4 Fee and commission expenses 26 (3,980,846) (4,695,663)
4 Letters of credit 45,980,494 57,345,298 II Net fee and commission income 26 6,607,317 4,309,446

5 Other guarantees 50,892,327 53,115,849 III Net gain from trading of foreign currencies 27 3,906,399 3,378,274

6 Other commitments 680,372 349,311 IV Net gain from trading securities 28 1,810 145,982
V Net (loss)/gain from investment securities 29 (98) 7,040

Hanoi, 31 March 2021 5 Other income 30 2,544,714 3,427,795

6 Other expenses 30 (744,461) (357,970)
Prepared by: Approved by:
VI Net other income 30 1,800,253 3,069,825
VII Income from capital contributions and equity investments 31 461,385 245,096
Ms. Nguyen Thi Thu Huong Mr. Le Hoang Tung Ms. Phung Nguyen Hai Yen
TOTAL OPERATING INCOME 49,062,541 45,693,391
VIII TOTAL OPERATING EXPENSES 32 (16,038,250) (15,874,542)
IX Net operating profit before allowance for credit losses 33,024,291 29,818,849
X Allowance for credit losses 33 (9,974,730) (6,607,278)
XI PROFIT BEFORE TAX 23,049,561 23,211,571
7 Current corporate income tax expenses 34(a) (5,081,068) (5,010,302)
8 Deferred corporate income tax expenses 34(b) 504,025 396,075
XII Corporate income tax expenses (4,577,043) (4,614,227)
Deputy Director of Chief Accountant Deputy CEO
Financial and Accounting XIII NET PROFIT AFTER TAX 18,472,518 18,597,344
Policy Department XIV Non-controlling interest (21,207) (15,090)
XVI Net profit for the year 18,451,311 18,582,254
XV Basic earnings per share (VND/share) 35 4,470 4,406

Hanoi, 31 March 2021

Prepared by: Approved by:
Ms. Nguyen Thi Thu Huong Mr. Le Hoang Tung Ms. Phung Nguyen Hai Yen

Deputy Director of Chief Accountant Deputy CEO

Financial and Accounting
Policy Department
The accompanying notes are an integral part of these consolidated financial statements The accompanying notes are an integral part of these consolidated financial statements
158 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
159

CONSOLIDATED STATEMENT OF Form B04/TCTD-HN

(Issued in accordance with CONSOLIDATED STATEMENT OF Form B04/TCTD-HN
(Issued in accordance with

CASH FLOWS CASH FLOWS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
dated 31 December 2014) dated 31 December 2014)
for the year ended 31 December 2020 (Direct method) for the year ended 31 December 2020 (Direct method)

2020 2019 2020 2019

No. ITEMS No. ITEMS
VND million VND million VND million VND million
CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES

01 Interest and similar income received 70,063,617 66,956,606 01 Payments for purchases of fixed assets (3,001,902) (1,005,065)

02 Interest and similar expenses paid (33,194,191) (31,567,168) 02 Proceeds from disposals of fixed assets 10,569 11,589

03 Net fee and commission income received 6,607,317 4,306,844 03 Payments for disposals of fixed assets (3,053) (6,315)

04 Net receipts and payments from trading activities (foreign currencies, gold and 3,464,399 3,068,655 04 Collections on investments in other entities 605,274 95,773
securities)
05 Dividends and interest received from long-term investments and capital 83,959 154,582
05 Other expenses paid (628,988) (115,005) contributions

06 Receipts from recovery of bad debts previously written off 2,421,725 3,179,526 06 Dividends of prior years received in the year - 42,989

07 Payments to employees and for other operating activities (14,525,026) (14,532,712) II Net cash flows used to investing activities (2,305,153) (706,447)

08 Corporate income tax paid during the year (4,680,317) (4,827,328) CASH FLOWS FROM FINANCING ACTIVITIES

Net cash flows from operating activities before changes in operating 29,528,536 26,469,418 01 Proceeds from share issuance - 1,111,088
assets and liabilities
02 Share premium from share issuance - 4,995,389
(Increase)/decrease in operating assets
03 Dividends paid to shareholders and profits distributed (2,986,115) (2,219,483)
09 Balances with and loans to other credit institutions 4,040,576 2,189,341
III Net cash flows (used to)/generated from financing activities (2,986,115) 3,886,994
10 Trading securities 10,336,784 (17,562,680)
IV Net cash flows during the year 20,312,167 28,256,379
11 Derivative financial instruments and other financial assets 98,312 177,671
V Cash and cash equivalents at the beginning of the year 272,270,535 244,014,156
12 Loans to customers (105,081,370) (102,840,133)
VII Cash and cash equivalents at the end of the year (Note 36) 292,582,702 272,270,535
13 Utilisation of allowance for credit losses (2,805,965) (4,502,397)

14 Other operating assets 1,613,500 (3,354,149) Hanoi, 31 March 2021

Increase/(decrease) in operating liabilities Prepared by: Approved by:

15 Amounts due to the Government and the State Banks (51,188,811) 1,680,491 Ms. Nguyen Thi Thu Huong Mr. Le Hoang Tung Ms. Phung Nguyen Hai Yen

16 Deposits and borrowings from other credit institutions 29,966,748 (2,906,994)

17 Deposits from customers 103,662,698 126,521,754

18 Valuable papers issued (144,015) (77,572)

19 Funds for finance, entrusted investments and entrusted loans (5,752) (5,372)

20 Derivative financial instruments and other financial liabilities 52,031 -

21 Other operating liabilities 7,396,305 720,675 Deputy Director of Chief Accountant Deputy CEO
Financial and Accounting
22 Payments from reserves (1,866,142) (1,434,221) Policy Department

I Net cash flows from operating activities 25,603,435 25,075,832

The accompanying notes are an integral part of these consolidated financial statements The accompanying notes are an integral part of these consolidated financial statements
160 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
161

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
dated 31 December 2014) dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

These notes form an integral part of, and should be read in conjunction with, the accompanying consolidated financial statements. These notes form an integral part of, and should be read in conjunction with, the accompanying consolidated financial statements.

1. REPORTING ENTITY 1. REPORTING ENTITY Continued

a. Establishment and operations

c. Location and network
Joint Stock Commercial Bank for Foreign Trade of Vietnam (“the dated 31 October 2017, Decision No. 300/QD-NHNN dated 21
Bank”) was established upon the transformation from a state- February 2019 and Decision No. 2447/QD-NHNN dated 25 The Bank’s Head Office is located at 198 Tran Quang Khai Street, had one (1) Head Office, one (1) Human Resources Training
owned commercial bank following the approval of the Prime November 2019 amending and supplementing to Establishment Hoan Kiem District, Hanoi, Vietnam. As at 31 December 2020, and Development College, two (2) Cash Processing Centers,
Minister on the equitisation plan of the Bank for Foreign Trade and Operation Licence No. 138/GP-NHNN on the contents of the Bank had one (1) Head Office, one (1) Human Resources one hundred eleven (111) branches nationwide, four (4) local
of Vietnam and in accordance with other relevant regulations. the Bank’s operations are to mobilise and receive short, medium Training and Development College, two (2) Cash Processing subsidiaries, three (3) overseas subsidiaries, three (3) joint-
The Bank was granted Establishment and Operation Licence and long-term deposits from organisations and individuals; lend Centers, one hundred sixteen (116) branches nationwide, four ventures, one (1) associate, one (1) representative office located
No. 138/GP-NHNN dated 23 May 2008 by the State Bank to organisations and individuals up to the nature and capability (4) local subsidiaries, three (3) overseas subsidiaries, two (2) in the United States of America , one (1) representative office
of Vietnam (“the SBV”) for a period of 99 years, Business of the Bank’s capital resources; conduct settlement and cash joint-ventures, one (1) associate, one (1) representative office located in Singapore and one (1) representative office located in
Registration Certificate No. 0103024468 dated 2 June 2008 services; provide other banking services as approved by the SBV; located in the United States of America , one (1) representative Ho Chi Minh City).
by Hanoi Authority for Planning and Investment and Enterprise invest in associates, joint-ventures and other companies; invest office located in Singapore and one (1) representative office
Code No. 0100112437 was reissued for the thirteenth time on in stocks and bonds and real-estate business in accordance located in Ho Chi Minh City (as at 31 December 2019, the Bank
16 January 2019. with the relevant regulations; trade in and supply interest rates
derivatives and commodity price derivatives in accordance with
The principal activities of the Bank in accordance with Decision the relevant regulations; purchase debts; trade in and provide d. Subsidiaries, joint-ventures and associates
No. 2719/QD-NHNN dated 27 December 2011, Decision No. foreign exchange services in the domestic and international
2182/QD-NHNN dated 26 October 2015, Decision No. 891/ markets in accordance with the relevant regulations of the SBV. Subsidiaries
QD-NHNN dated 8 May 2017, Decision No. 2293/QD-NHNN As at 31 December 2020 and 31 December 2019:

b. Charter capital Ownership

Business
Under Establishment and Operation Licence No. 138/GP- 2019 and the amendment of Establishment and Operation Subsidiaries Operating Licence percentage of
sector
NHNN dated 23 May 2008 issued by the SBV and Business Licence No. 138/GP-NHNN of Joint Stock Commercial the Bank
Registration Certificate No. 0103024468 dated 2 June 2008 Bank for Foreign Trade of Vietnam under Decision No. 300/ Vietcombank Financial Operating Licence No. 66/GP-NHNN Financial leasing 100%
issued by Hanoi Authority for Planning and Investment, the QD-NHNN dated 21 February 2019 of the SBV, the Bank’s Leasing Company Limited dated 31 October 2017 granted by the SBV
Bank’s charter capital was VND 12,100,860,260,000. Under charter capital was VND 37,088,774,480,000. The par value Vietcombank Securities Operating Licence No. 09/GPHDKD dated 24 April 2002, Securities 100%
Business Registration Certificate with Enterprise Code No. per share is VND 10,000. Company Limited the most recent amendment is Operating Licence No. 63/
0100112437 was reissued for the thirteenth time on 16 January GPDC-UBCK dated 29 December 2017 granted by the
State Securities Commission (“SSC”)
31/12/2020 and 31/12/2019 Vietnam Finance Company Business Registration No. 58327 dated 10 February 1978 Financial services 100%
Number of shares % Limited in Hong Kong issued by Hong Kong Monetary Authority
(“Vinafico”)
Shares owned by the Government of Vietnam 2,774,353,387 74.80%
Vietcombank Remittance Enterprise Registration Certificate No. 0314633162 Receipt of foreign 100%
Shares owned by foreign strategic shareholder (Mizuho Bank Ltd., Japan) 556,334,933 15.00% Company Limited dated 20 September 2017 granted by Ho Chi Minh City exchange
Shares owned by other owners 378,189,128 10.20% Department of Investment and Planning
Vietcombank Laos Limited Operating Licence No. 88/BOL dated 25 May 2018 Banking 100%
3,708,877,448 100%
granted by Bank of the Lao P.D.R
Vietcombank Money Inc. Business Registration No. E0321392009-6 dated Foreign exchange 87.5%
15 June 2009 granted by the Authority of the State of remittance
Nevada, United States
Vietcombank Tower Investment Licences No. 1578/GP dated 30 May 1996 and Office leasing 70%
198 Ltd the most recent amendment dated 1 March 2019 granted
by the Ministry of Planning and Investment
162 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
163

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

Joint-ventures 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

As at 31 December 2020:
The following significant accounting policies have been adopted rate as at the date of the transaction. Income and expenses in
Ownership by Vietcombank in the preparation and presentation of these foreign currencies are translated into VND in the consolidated
Business
Joint-ventures Operating Licence percentage of consolidated financial statements. statement of income at spot exchange rates as at the date of
sector
the Bank transaction.
Investment Licence No. 2458/GP dated 7 February 2005 a. Purpose of preparing the consolidated financial
Vietcombank – Bonday –
granted by the Ministry of Planning and Investment, the statements Foreign exchange differences arising from foreign currencies
Ben Thanh Joint-venture Office leasing 52%
most recent amendment No. 2458/GCNDC2/41/1 dated trading activities in the year were recorded in the consolidated
Company Limited
28 December 2012 The Bank has subsidiaries as disclosed in Note 1(d). The Bank statement of income at the end of the annual accounting period.
Establishment and Operating Licence No. 06/UBCK- prepared these consolidated financial statements to meet the
Investment
Vietcombank Fund GPHDQLQ dated 2 December 2005 granted by the State prevailing requirements in relation to disclosure of information, In order to prepare the consolidated financial statements, for
fund 51%
Management Securities Commission; the most recent amendment No. 17/ specifically the Circular No. 155/2015/TT-BTC dated 6 October the subsidiaries using the consolidation method and for the
management
GPDC-UBCK dated 9 February 2018 2015 of the Ministry of Finance on disclosure of information associates and joint-ventures using the equity method, which
on the securities market (“Circular 155”). In addition, as required have accounting currencies other than VND, assets, liabilities and
As at 31 December 2019: by Circular 155, the Bank has prepared the separate financial equity of these companies are converted into VND at spot rates
statements of the Bank for the year ended 31 December 2020 on the consolidated balance sheet date, and the income and
Ownership (“the separate financial statements”) which was issued on 31 expenses in the statement of income are converted into VND
Business March 2021. at the average exchange rate for the annual accounting period.
Joint-ventures Operating Licence percentage of
sector Exchange differences arising from the conversion are taken into
the Bank
Investment Licence No. 2458/GP dated 7 February 2005 b. Basis of financial statement preparation equity in the consolidated balance sheet.
Vietcombank-Bonday-
granted by the Ministry of Planning and Investment, the
Benthanh Joint-venture Office leasing 52% The consolidated financial statements, presented in Vietnam e. Basis of consolidation
most recent amendment No. 2458/GCNDC2/41/1 dated
Company Limited Dong (“VND”) and rounded to the nearest million VND (“VND
28 December 2012
million”), have been prepared in accordance with Vietnamese Subsidiaries
Establishment and Operating Licence No. 06/UBCK-
Investment Accounting Standards, Vietnamese Accounting System for Credit
Vietcombank Fund GPHDQLQ dated 2 December 2005 granted by the State
fund 51% Institutions (“CIs”) issued by the State Bank of Vietnam and the Subsidiaries are entities controlled by the Bank. The control
Management Securities Commission; the most recent amendment No. 17/
management relevant statutory requirements applicable to financial reporting. exists when the Bank has the power to govern the financial
GPDC-UBCK dated 9 February 2018
and operating policies of an entity so as to obtain benefits from
Investment Licence No. 55/GP/KDBH dated 23 October
Vietcombank – Cardif The consolidated financial statements, except for the consolidated its activities. In assessing the control, potential voting rights that
2008 granted by the Ministry of Finance, the most recent
Life Insurance Company Life insurance 45% statement of cash flows, are prepared on the accrual basis using presently are exercisable are taken into account. The financial
amendment No. 55/GPDC1/KDBH dated 28 December
Limited the historical cost concept. The consolidated statement of cash statements of subsidiaries are included in the consolidated
2018
flows is prepared using direct method. financial statements from the date that the control commences
until the date that the control ceases.
Associates
c. Annual accounting period
As at 31 December 2020 and 31 December 2019:
Inter-company balances, transactions and profit/loss on
Vietcombank’s annual accounting period is from 1 January to 31 transactions between those subsidiaries and the Bank are
Ownership December. eliminated in full in the consolidated financial statements.
Business
Associates Operating Licence percentage of The accounting policies of subsidiaries have been changed if
sector
the Bank d. Foreign currency transactions necessary to ensure the consistency with the policies adopted
Operating Licence No. 283/GP dated 5 December 1991 by the Bank.
Vietcombank – Bonday
granted by the Department of Planning and Investment, All transactions are recorded in their original currencies. Monetary
Joint-venture Company Office leasing 16%
the most recent amendment No. 283/GPDC4 dated 4 items denominated in currencies other than VND are translated Non-controlling interest is the portion of the profit or loss and
Limited
March 2002 into VND at the exchange rates prevailing at the end of the net assets of a subsidiary attributable to equity interest that are
annual accounting period. Non-monetary items denominated not owned, directly or indirectly through subsidiaries, by the Bank.
in foreign currencies are translated into VND at the exchange
e. Number of employees
As at 31 December 2020, Vietcombank had 20,062 employees (31 December 2019: 18,948 employees).
164 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
165

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

Associates and joint-ventures Current deposits at other credit institutions are stated at the SBV to make debt classification based on the qualitative method General allowance for credit risk
amount of the outstanding principal. as approved by the SBV. However, according to Circular 02,
Associates are those entities to which the Bank has significant the Bank is required to classify debts and off-balance sheet The Bank is required to make a general allowance of 0.75%
influence, but not control, over their financial and operating Term deposits with and loans to other credit institutions are commitments in accordance with both Article 10 and Clause 1 of of total outstanding debt balance of which are classified into
policies. stated at the amount of the outstanding principal less any specific Article 11, Circular 02. In that case, should classifications of a debt Groups 1 to 4 as at the last working day of a quarter. For the
allowance for credit risks. in accordance with Article 10 and Clause 1 of Article 11, Circular fourth quarter of the year, a general allowance is made at 0.75%
Joint-ventures are those entities to which the Bank has joint 02 differ, the debt is to be classified into the group of higher risk. of total outstanding balance of loans which are classified into
control, established by contractual agreements and require Credit risk classification of term deposits with and loans to Groups 1 to 4 as at the last working day of November.
unanimous consent of all joint-venture investors for the entity’s other credit institutions and allowance for credit risk thereof Since 1 January 2015, the Bank uses the information from Credit
strategic financial and operating decisions. is made in accordance with Circular No. 02/2013/TT-NHNN Information Center (“CIC”) about the debt group of customers Bad debts written-off
dated 21 January 2013 of the State Bank of Vietnam on at the time of debt classification to adjust the debt group, off-
The Bank uses the equity method for consolidating its classification of assets, level and method of allowance making, balance sheet items. If a customer’s debts and off-balance sheet According to Circular 02, the Bank writes off bad debts in the
investments in associates and joint ventures in the consolidated and use of allowance against credit risks in banking activities commitments are classified in a debt group that has a lower risk following cases:
financial statements. The Bank’s share of post acquisition profits of credit institutions and foreign bank branches (“Circular 02”) than the debt groups provided in CIC’s list, the Bank shall adjust • Borrowers who are dissolved, bankrupted under legal
or losses of its associates and joint-ventures is recognised in the and Circular No. 09/2014/TT-NHNN dated 18 March 2014 of its classification of debts and off-balance commitments following regulations (in case of legal entities); or are deceased or
consolidated statement of income. When the Bank’s share of the SBV on amending and supplementing a number of articles the debt groups provided by CIC. missing (in case of individuals);
losses in associates and joint-ventures equals or exceeds the cost of Circular 02 (“Circular 09”). Accordingly, the Bank has made • Debts are classified into Group 5.
of its investments in the associates and joint-ventures, the Bank specific allowance for term deposits with and loans to other Specific allowance is calculated based on the following allowance
does not recognise further losses in its consolidated financial credit institutions in accordance with the method described in rates specified for the debt principal less the discounted value of i. Investments
statements, unless it has obligations to pay on behalf of the Note 2(h)(ii). collateral assets:
associates and joint-ventures. Accounting policies of associates Trading securities
and joint-ventures have been changed where necessary to According to Circular 02, the Bank is not required to make Allowance rate
ensure consistency with the policies adopted by the Bank. general allowance for balances with and loans to other credit Trading securities are debt securities, equity securities and other
institutions. Group 1 – Current debt 0% securities which are bought and held for the purpose of reselling
f. Cash and cash equivalents Group 2 – Special mentioned debt 5% within one year to earn capital gains.
h. Loans to customers
Group 3 – Sub-standard debt 20%
Cash and cash equivalents include cash on hand, balances with Trading securities are initially recognised at the cost of acquisition.
the SBV, treasury bills and other short-term valuable papers Loans to customers Group 4 – Doubtful debt 50% They are subsequently measured at the lower of book value and
which are eligible for discounting with the SBV, balances with and Group 5 – Loss debt 100% market price. Gains or losses from the sales of trading securities
loans to other CIs with original terms to maturity not exceeding Loans to customers are stated in the consolidated balance sheet are recognised in the consolidated statement of income.
three months from the original date of placements or granting; at the principal amounts outstanding as at the reporting date.
Bad debts are debts within groups 3, 4 and 5.
investments in securities with recoverability or maturity not Investment securities
exceeding three months that are readily convertible into known Allowance for credit risk of loans to customers is recorded
Since 13 March 2020, the Bank has applied Circular No.
amounts of cash, and that are subjected to an insignificant risk and stated in a separate line in the consolidated balance sheet. Investment securities are classified into two categories: available-
01/2020/TT-NHNN (“Circular 01”) issued by the SBV regulating
of change in value, and are held for the purpose of meeting Allowance for credit risk comprises specific allowance for credit for-sale and held-to-maturity investment securities. Vietcombank
credit institutions and foreign bank branches to reschedule the
short-term cash commitments rather than for investment or risk and general allowance for credit risk. classifies investment securities on their purchase dates. In
debt repayment term, exempting, reducing interests and fees,
other purposes. accordance with Official Letter No. 2601/NHNN-TCKT dated
retention of debt debt group in order to support customers
Loan classification of loans to customers is implemented using 14 April 2009 by the SBV, Vietcombank is allowed to reclassify
affected by Covid-19 pandemic. Accordingly, for customers with
g. Balances with and loans to other credit institutions the method presented at Note 2(h)(ii) and allowance for credit investment securities once, at maximum, after the purchase date.
debts arising the principal and/or interest repayment obligation
risk of loans to customers thereof is made in accordance with
during the period from 23 January 2020 to the day after 3
Balances with other credit institutions, except for current deposits, Circular 02 and Circular 09. Available-for-sale investment securities
months from the day the Prinme Minister declares the end of
are term deposits at other credit institutions and foreign bank
Covid-19 pandemic and the borrowers are unable to repay loan
branches with terms of not exceeding three months. Specific allowance for credit risk Available-for-sale investment securities are debt securities, equity
principal and/or interest on schedule specified in the contract,
securities or other securities, which are acquired for an indefinite
original signed agreement due to decreases in revenue, profit
Loans to other credit institutions are loans with original terms to Since 1 January 2010, the Bank has applied Article 7, Decision period and may be sold at any time. For equity securities,
caused by the effect of the Covid-19 pandemic, the Bank is
maturity of not exceeding twelve months. No. 493/2005/QD-NHNN dated 22 April 2005 issued by the the investee is not a subsidiary, associate or joint-venture of
allowed to reschedule the repayment period for these debts
Vietcombank and Vietcombank is neither a founding shareholder
while maintaining the same debt group as classified at the
nor a strategic partner; nor has the impact on the
nearest time before 23 January 2020.
166 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
167

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

enterprise’s planning and determining of financial and operating For investments in unlisted securities, the allowance for In accordance with Circular No. 45/2013/TT-BTC dated 25 remaining paid land lease term is at least five years and
policies under agreements to appoint personnel to the Members’ diminution in the value of long-term investments is made for April 2013 issued by the Ministry of Finance (“Circular 45”) granted with certificate of land use rights by the competent
Council/Board of Directors/Board of Management.. the local economic entity owned by the Bank at the end of guiding the framework of management, use and depreciation authority.
the annual accounting period which has signs of decrease in of fixed assets, assets shall be considered as fixed assets if they
Held-to-maturity investment securities value compared to the Bank’s investment value in accordance meet all of the following three criteria: The initial cost of land use rights is determined as the total
with Circular No. 48/2019/TT-BTC dated 8 August 2019 amount paid to have the land use rights plus costs of site
Held-to-maturity investment securities are debt securities, issued by the Ministry of Finance (“Circular 48”). Accordingly, • It is certain to gain future economic benefits from the use clearance, ground levelling, registration fee (excluding costs of
with fixed or determinable payments and maturities where the allowance amount for the investment is the difference of such assets; construction on that land) or the value of land use rights with
Vietcombank’s management has the positive intention and between the parties’ actual investment capital at the economic • The useful life of assets is above one year; contributed capital.
ability to hold until maturity. entity receiving capital contribution and actual equity capital of • Historical costs of the assets must be determinable reliably,
economic entity at the time of provisioning multiplied (x) by the with a minimum value of VND 30,000,000. Land use rights not recognised as intangible assets comprise:
Investment securities are initially recognised at cost of acquisition, actual rate of chartered capital of the Bank at the economic
including transaction costs and other directly attributable costs. entity at the time of provisioning. For an investment in listed Expenditures incurred after the tangible fixed assets have been • Land use rights allocated by the State without land use fee;
They are subsequently measured at the book value after securities or investments which market price can be determined put into operation, such as repairs and maintenance and overhaul • Land lease rent paid one time for the entire lease term (the
amortisation less allowance for investment securities. Premiums reliably, allowance is made based on the securities’ market price costs, are normally charged to the consolidated statement of land lease time after the effective date of the Land Law
and discounts arising from purchases of debt securities are when their carrying amounts are higher than their market prices. income for the year in which the costs are incurred. In case it can 2003 without certificate of land use rights granted), the rent
amortised in the consolidated statement of income using the be clearly demonstrated that these expenditures have resulted in is amortised into the business expenses by the number of
straight-line method over the period from the acquisition dates j. Repurchase and reverse repurchase agreements an increase in the expected future economic benefits obtained lease periods;
to the maturity dates. from the use of these tangible fixed assets beyond their originally • Land lease rent paid annually, the rent is recorded into
Securities sold under agreements to repurchase at a specific assessed standard level of performance, the expenditures will be the business expenses in the year in proportion to the rent
In addition, according to Circular 02 and Circular 09, investment date in the future (repos) are still recognised in the consolidated capitalised as an additional cost of tangible fixed assets. annually paid.
securities which are unlisted corporate bonds (including bonds financial statements. The corresponding cash received from
issued by other local credit institutions on the secondary market) these agreements is recognised in the consolidated balance Depreciation According to Circular 45, intangible fixed assets which are long-
are subject to classification and allowance in a manner similar sheet as a liability. The difference between the sale price and term land use rights with land use fee or receiving the legal
to loans to customers described in Note 2(h). For other held-to- repurchase price is amortised in the consolidated statement of Depreciation is computed on a straight-line basis over the long-term land use rights are not amortised.
maturity investment securities, allowance for diminution in value income over the term of the agreement using the straight-line estimated useful lives of tangible fixed assets. The estimated
is made when there is indication of impairment over a long time method based on the interest rate stipulated in the contract. useful lives are as follows: For the intangible fixed assets which are the value of land use
or there is certain evidences that it is hard for Vietcombank to rights with term or the leased land use rights, the period of
fully recover the investment. Securities purchased under agreements to resell at a specific depreciation is the period permitted for land use of Vietcombank.
Buildings and structures 25 years
date in the future are not recognised in the consolidated
Other capital contributions, long-term investments financial statements. The corresponding cash paid under these Machinery and equipment 3 – 5 years Copyrights, patents and other intangible fixed assets
agreements is recognised in the consolidated balance sheet in Motor vehicles and means of transmission 6 years
Other long-term investments represent Vietcombank’s capital “Loans to customers”. The difference between the purchase Copyrights, patents and other intangible fixed assets are stated at
Other tangible fixed assets 4 years
investments in other enterprises where Vietcombank owns less price and resale price is amortised over the term of the cost less accumulated amortisation. These intangible fixed assets
than 11% of voting rights and is either a founding shareholder or agreement using the straight-line method based on the interest are amortised on a straight-line basis over a period from 3 to
a strategic partner; or has influences on the enterprise’s planning rate stipulated in the contract and recognised in the consolidated l. Intangible fixed assets 4 years.
and determining of financial and operating policies under statement of income.
agreements to appoint personnel to the Members’ Council/ Land use rights m. Other assets
Board of Directors/Board of Management but Vietcombank k. Tangible fixed assets
does not have control or significant influence over the investees. According to Circular 45, intangible fixed assets recognised as Except for receivables from uncollectible income as presented in
Other long-term investments include equity securities and other Cost land use rights comprise: Note 2(t)(iv), allowance for overdue other assets which are not
long-term capital contributions which are intended to hold classified as assets bearing credit risk are made in accordance
for more than one year (except for capital contributions and Tangible fixed assets are stated at cost less accumulated • The land use rights allocated by the State with land use fee with Circular 48 and Circular No. 200/2014/TT-BTC issued by
investments into joint-ventures, associates and subsidiaries). depreciation. The initial cost of a tangible fixed asset comprises or receiving the transfer of legal land use rights (including the Ministry of Finance on 22 December 2014 (“Circular 200”).
its purchase price, including import duties, non-refundable definite and indefinite land use rights); Accordingly, allowance for these assets is based on their overdue
Other long-term investments are initially recognised at cost less purchase taxes and any directly attributable costs of bringing the • The rights to use the leased land before the effective date period or estimated irrevocable loss for debts that are not due
allowance for diminution in value of the investments. asset to its working condition and location for its intended use of the Land Law 2003 but the rent has been paid for the but Vietcombank has collected evidence to identify that debtor
on the site where it is located. leasing time or paid in advance for many years and the has become bankrupt, filing for bankruptcy or has absconded; or
168 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
169

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

being prosecuted, detained or tried by law enforcement bodies treatment for redundancy allowance to employees of enterprises. rate for this reserve does not exceed charter capital of the Fee and commission and dividend income
or serving a sentence; or suffering from a serious illness (certified This circular provides that, in preparation of financial statements Bank/VCBL.
by the hospital); deceased; or those remains irrecoverable after for the year 2012, if an enterprise’s provision for severance Fee and commission income is recognised on an accrual basis.
the enterprise filing a lawsuit due to its debtor had fled from his/ allowance still has the outstanding balance, the enterprise must • Financial reserve: 10% of net profit after tax of each entity. Cash dividends from investment activities are recognised in the
her residence; the debt which has been sued for debt collection reverse the balance to other income for the year 2012 and must The maximum rate for this reserve is not specified in Decree consolidated statement of income when Vietcombank’s right to
by Vietcombank but the case has been suspended. not carry forward the balance to the following year. Accordingly, 93. receive payment is established.
Vietcombank reversed the outstanding balance of provision for
Overdue period Allowance rate severance allowance. This change in accounting policy has been • Investment and development reserve and other reserves: are Share dividends
From six (6) months to less than one (1) year 30% applied prospectively from 2012. to be made upon the resolutions of the General Meeting of
Shareholders/Board of Directors and in accordance with the In accordance with Circular 200, dividends and other distribution
From one (1) year to less than two (2) years 50%
r. Bonus and welfare funds relevant statutory requirements. received in the form of bonus shares and share dividends and
From two (2) years to less than three (3) years 70%
amounts distributed in the form of shares coming from retained
From three (3) years and above 100% Bonus and welfare funds are allocated from profit after tax The remaining net profit after tax, after appropriation to reserves profits, share premium and reserves in equity of joint stock
in accordance with the Resolution of the General Meeting and dividends payment, is recorded as retained profits of companies, are not recorded in the consolidated statement of
For other assets that are classified as assets with credit risk, of Shareholders and recorded as liabilities in the consolidated Vietcombank. income. Instead, the additional shares obtained are reflected in
Vietcombank conducts debt classification and makes allowance balance sheet. The bonus and welfare funds are used for the the number of shares held by Vietcombank.
similarly to those of loans to customers described in Note 2(h). purposes specified in Decree No. 93/2017/ND-CP dated 7 Vietcombank Securities Company Limited (“VCBS”) appropriates
August 2017 issued by the Government (“Decree 93”). of profits to reserves in accordance with Circular No. 146/2014/ Uncollectible income
n. Deposits and borrowings from other credit institutions TT-BTC issued by the Ministry of Finance on 6 October 2014
s. Capital and reserves as follows: According to Circular No. 16/2018/TT-BTC dated 7 February
Deposits and borrowings from other credit institutions are stated 2018 issued by the Ministry of Finance, income receivables that
at cost. Ordinary shares • Supplementary charter capital reserve: 5% of net profit after are recognised as income but uncollectible at the due date are
tax and does not exceed 10% of VCBS’s charter capital. reversed as a reduction of income if the due date is within the
o. Deposits from customers Ordinary shares are classified as equity. Incremental costs directly same annual accounting period, or recorded as an expense if
attributable to the issuance of ordinary shares are recognised as • Financial reserve: 5% of net profit after tax and does not the due date is not within the annual accounting period, and
Deposits from customers are stated at cost. a deduction from share premium in equity. exceed 10% of VCBS’s charter capital. must be monitored on the off-balance sheet for following-up
on collection. When the receivable is collected, Vietcombank will
p. Valuable papers issued Share premium Foreign exchange difference record it as an operating income.

Valuable papers issued are stated at cost and accumulated On receipt of capital from shareholders, the difference between Foreign exchange differences are differences arise when u. Lease
amortised premiums or discounts. Cost of valuable papers issued the issuance price and the par value of the shares is recorded as financial statements in foreign currencies of overseas subsidiaries
includes the proceeds from the issuance less directly attributable share premium in equity. converted into VND for consolidation purpose. Lessee
costs.
Treasury shares t. Income and expenses Payments made under operating leases are recognised in the
q. Severance allowance consolidated statement of income on a straight-line basis over
When Vietcombank repurchases its ordinary shares, the total Interest income and interest expenses the term of the lease.
Under the Vietnamese Labour Code, when an employee paid amount including directly attributable costs, net off any tax
who has worked for Vietcombank for 12 months or more effects, is recognised as a deduction from equity and referred to Interest income of outstanding unearned debts classified in Lessor
(“the eligible employees”) voluntarily terminates his/her labour as treasury shares. Group 1 – Current debt as defined in Note 2(h) is recognised
contract, Vietcombank is required to pay the eligible employee on an accrual basis. Interest arising from maintaning Group 1 Vietcombank recognises finance leased assets as “Loans to
severance allowance calculated based on years of service until Reserves – Current debts in accordance with Circular 01 or government customers” in the consolidated balance sheet at the net value
31 December 2008 and employee’s average monthly salary regulations and unearned interest on debts classified in Group of the investment defined in the lease contract. Income from
of the latest six-month period until termination. Before 2012, Reserves are for specific purposes and appropriated from net 2 to Group 5 is recognised in the consolidated statement of finance leases are recognised as “Income from interest and
provision for severance allowance has been provided based on profit after tax of the Bank and Vietcombank Finance Leasing income upon receipt. similar income”. Instalment income is amortised over the lease
employees’ years of service and their current salary level. Company Limited (“VCBL”) at prescribed rates as below: term using interest rate over the net investment of the leased
Interest expenses are recorded on an accrual basis. assets. The classification of finance lease receivables has been
On 24 October 2012, the Ministry of Finance issued Circular • Supplementary charter capital reserve: 5% of net profit after made in accordance with the quantitative method as stipulated
No. 180/2012/TT-BTC (“Circular 180”) guiding the financial tax of each entity. According to Decree 93, the maximum in Article 10 of Circular 02.
170 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
171

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

Vietcombank recognises operating lease assets in the • Wives, husbands, parents, children (including foster parents, at forward rate and spot rate are recognised in the consolidated aa. Basic earnings per share
consolidated balance sheet. Rental income is recognised on foster children, parents-in-law, son -in-law, daughter-in-law, statement of income on a straight-line basis over the term of
a straight-line basis over the lease term whatever payment step parents, step children), siblings (including half siblings), the contracts. Vietcombank presents basic earnings per share (“EPS”) data for
method is. Expenses occurred during the leasing period, including brothers-in-law, sisters-in-law of managers or members of its ordinary shares. Basic EPS is calculated by dividing the profit
depreciation expenses are recognised as operating expenses for the Supervisory Board, capital contributors or shareholders Currency swap contracts are commitments to settle in cash at or loss attributable to ordinary shareholders of Vietcombank
the year. who hold at least 5% of charter capital or share capital with a future date based on differences between specified exchange (after adjustment for appropriation to bonus and welfare funds)
voting rights of the Vietcombank; rates, calculated on the notional principal amount. Premiums/ by the weighted average number of ordinary shares outstanding
v. Taxation discounts arising from the difference of the spot exchange rate during the year.
• Individuals or organisations that hold at least 5% of charter at the effective date of the contracts and the forward exchange
Corporate income tax comprises of current and deferred tax. capital or share capital with voting rights of Vietcombank; rate will be recognised immediately on the effective date of the If new shares issued during the year only change the number
Corporate income tax is recognised in the consolidated statement and contracts as an asset if they are positive or as a liability if they of shares, not the equity, Vietcombank will adjust the weighted
of income except that it relates to items recognised directly to are negative in the consolidated balance sheet. This difference average number of ordinary shares outstanding during the year
equity, in which case it is recognised in equity. • Representatives for Vietcombank’s paid-in capital and shares. is amortised to the consolidated statement of income on a presented on the consolidated financial statements, which leads
straight-line basis over the term of the swap contracts. to corresponding adjustment for EPS.
Current income tax is the expected tax payable on the taxable The Government of Vietnam, through the State Bank of
income for the year, using tax rates enacted at the end of the Vietnam, is a shareholder of Vietcombank. Therefore, in these Interest swap contracts
annual accounting period, and any adjustment to tax payables in consolidated financial statements, some Government agencies, Interest swap contracts are commitments to settle in cash the
respect of the previous years. including the Ministry of Finance and the State Bank of Vietnam notional principal amounts at the interest amount based on
are considered as related parties of Vietcombank. floating or fixed interest rates. The value of commitment in
Deferred income tax is calculated by using the balance sheet interest rate swap contracts is not recognised on the consolidated
method, providing for the temporary differences between the x. Segment reporting balance sheet. The difference of swap interest rates is recognised
carrying amounts of assets and liabilities for financial reporting in the consolidated statement of income on an accrual basis.
purposes and the amounts used for taxation purposes. The A segment is a distinguishable component of Vietcombank
amount of deferred income tax provided is based on the expected engaged either in providing related products or services (business Commitments and contingent liabilities
manner of realisation or settlement of the carrying amount of segment), or in providing products or services within a particular Vietcombank has credit commitments arising from its regular
assets and liabilities using tax rates enacted or substantively economic environment (geographical segment), which is subject lending activities. These commitments are unutilised loans
enacted at the end of the annual accounting period. to risks and rewards that are different from those of other and overdraft facilities which are approved. Vietcombank also
segments. provides financial guarantees and letters of credit to guarantee
A deferred tax asset is recognised only to the extent that it the performance of customers to third parties. Many of the
is probable that future taxable profits will be available against y. Off-balance sheet items contingent liabilities and commitments will expire without
which the temporary difference can be utilised. Deferred tax any advanced payment, in whole or in part. Therefore, these
assets are reduced to the extent that it is no longer probable that Foreign exchange contracts commitments and contingent liabilities do not represent expected
the related tax benefit will be realised. future cash flows.
Vietcombank enters into foreign exchange forward and swap
w. Related parties contracts which enable customers to transfer, modify or reduce According to Circular 02 and Circular 09, Vietcombank, for
their foreign exchange risk or other market risks and also are management purpose, has to classify guarantees, payment
Related parties of Vietcombank include: used for Vietcombank’s business purpose. acceptances and irrevocable lending commitments with specific
effective date into 5 groups, similar to loans to customers (Note
• Individuals or organisations which have the authority to Forward contracts are commitments to either purchase 2(h)).
appoint managers or members of the Supervisory Board of or sell a designated currency at a specific future date for a
the parent company of the Bank; specific exchange rate and cash settlement. Forward contracts z. Offsetting
are recorded at nominal values at transaction dates and are
• Management or members of the Supervisory Board of subsequently revaluated at the end of the accounting period. Financial assets and liabilities are offset and the net amounts
Vietcombank; Differences on revaluation are recognised under “Foreign are reported in the consolidated balance sheet if, and only if,
exchange differences” in the equity and is recorded in the Vietcombank has currently enforceable legal rights to offset the
• Companies or organisations which have the authority to consolidated statement of income at the end of the annual recognised amounts and Vietcombank has an intention to settle
appoint managers, or members of the Supervisory Board of accounting period. Differences between the amount in VND of on a net basis, or to realise the assets and settle the liabilities
Vietcombank; the foreign currency amounts which are committed to buy/sell simultaneously.
172 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
173

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

3. PRESENTATION OF FINANCIAL INSTRUMENTS IN ACCORDANCE WITH 4. CASH ON HAND, GOLD, SILVER AND GEMSTONES
CIRCULAR NO. 210/2009/TT-BTC
31/12/2020 31/12/2019
During its business operations, Vietcombank regularly enters into b. Measurement and disclosures of fair value
VND million VND million
contracts which give rise to financial assets, financial liabilities
and equity instruments. In accordance with Circular 210, Vietcombank has to disclose the Cash on hand in VND 12,835,047 11,080,853
fair value of financial assets and financial liabilities to compare Cash on hand in foreign currencies 2,259,853 2,697,034
Financial assets of Vietcombank mainly include: with the book value of those financial assets and financial
Valuable papers in foreign currencies 494 471
• Cash; liabilities as presented in Note 44(b).
• Balances with the State Banks; 15,095,394 13,778,358
• Balances with and loans to other credit institutions; The presentation of the fair value of the financial instruments are
• Trading securities; only for the purpose of presenting in Note 44(b). The financial
• Loans to customers; instruments of Vietcombank are still recognised and recorded in 5. BALANCES WITH THE STATE BANKS
• Investment securities; accordance with Vietnamese Accounting Standards, Vietnamese
• Capital contributions, long-term investments; Accounting System for Credit Institutions issued by the State
31/12/2020 31/12/2019
• Financial derivative assets; and Bank of Vietnam and the relevant statutory requirements
VND million VND million
• Other financial assets. applicable to financial reporting as described in the notes above.
Balances with the State Bank of Vietnam (i) 33,010,030 34,404,607
Financial liabilities of Vietcombank mainly include: Fair value is the amount for which an asset could be exchanged, Balances with Bank of the Lao L.D.R (ii) 129,343 279,484
• Amounts due to the Government and the State Banks; or a liability settled, among knowledgeable, willing parties in an 33,139,373 34,684,091
• Deposits and borrowings from other credit institutions; arm’s length transaction on the recognition date.
• Deposits from customers; Balances with the SBV consist of compulsory reserve (“CRR”) balance and current deposits balance.
• Funds for finance, entrusted investments and entrusted When an active market exists for a financial instrument,
loans; Vietcombank measures the fair value of that instrument using its The monthly average balance of the demand deposits of the Bank with the SBV must not be less than the monthly balance of CRR.
• Valuable papers issued; quoted price in the active market. A market is regarded as active The amount of CRR during the CRR maintenance period is calculated by their respective CRR rates applicable to the Bank for each
• Financial derivative liabilities; and if quoted prices are readily and regularly available and represent type of deposits during CRR maintenance period multiplied by the average balances of reservable deposits hold during the reserve
• Other financial liabilities. actual and regularly occurring market transactions. computation period corresponding to that type of deposits.

a. Classification of financial assets and liabilities In case there is not enough information to utilise valuation The effective CRR rates at the year-end were as follows:
Only for the disclosure purpose in the consolidated financial techniques, fair value of the financial instruments without active
statements, Vietcombank classifies financial assets and financial market are deemed not to have been reliably measured and
Type of deposits 31/12/2020 31/12/2019
liabilities in accordance with Circular No. 210/2009/TT-BTC therefore, not disclosed.
dated 6 November 2009 issued by the Ministry of Finance Demand deposits and deposits in VND with terms of less than 12 months 3% 3%
(“Circular 210”). Deposits in VND with terms of 12 months and above 1% 1%
Demand deposits and deposits in foreign currencies with terms of less than 12 months 8% 8%
Financial assets are classified as: Deposits in foreign currencies with terms of 12 months and above 6% 6%
• Financial assets held for trading; Deposits from overseas credit institutions in foreign currencies 1% 1%
• Held-to-maturity investments;
• Loans and receivables; and The actual interest rates of current account at the year-end were as follows:
• Available-for-sale financial assets.

Type of deposits 31/12/2020 31/12/2019

Financial liabilities are classified as:
• Financial liabilities held for trading; and Within compulsory reserve in VND 0.5%/year 0.8%/year
• Financial liabilities carried at amortised cost. Within compulsory reserve in USD 0%/year 0%/year

Over compulsory reserve in VND 0%/year 0%/year

Over compulsory reserve in USD 0.05%/year 0.05%/year

174 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
175

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

Balances with Bank of the Lao L.D.R (“the BOL”) consist of margin deposits in Lao Kip (“LAK”) relating to the establishment of the Movements in allowance for balances with and loans to other credit institutions during the year were as follows:
Bank’s subsidiary in Lao People’s Democratic Republic, compulsory reserve balance and current deposits balance in accordance with
the BOL’s requirement. 2020 2019
VND million VND million
The effective CRR rates at the year-end were as follows: Opening balance 3,000,000 1,000,000
Allowance (reversed)/made during the year (Note 33) (2,000,000) 2,000,000
Type of deposits 31/12/2020 31/12/2019 Closing balance 1,000,000 3,000,000
Deposits in LAK with terms of 12 months and below 4% 5%

Deposits in foreign currencies with terms of 12 months and below 8% 10%

7. TRADING SECURITIES

31/12/2020 31/12/2019
6. BALANCES WITH AND LOANS TO OTHER CREDIT INSTITUTIONS
VND million VND million
Debt securities
31/12/2020 31/12/2019
Government bonds 1,126,417 994,592
VND million VND million
Bonds issued by other local credit institutions 200,124 -
Balances with other credit institutions
Securities issued by local economic entities 339,250 544,000
Demand deposits in VND 25,796 113,811 Equity securities
Demand deposits in foreign currencies 45,065,025 40,081,007 Equity securities issued by other credit institutions 29,437 4,705

Term deposits in VND 118,760,458 93,834,489 Equity securities issued by local economic entities 296,633 346,331
1,991,861 1,889,628
Term deposits in foreign currencies 40,862,504 56,071,022
Allowance for trading securities (37,800) (88,502)
204,713,783 190,100,329 1,954,061 1,801,126

Trading securities by listing status were as follows:

Loans to other credit institutions

Loans in VND 60,801,208 60,449,061 31/12/2020 31/12/2019

Loans in foreign currencies 3,454,654 1,920,982 VND million VND million
Debt securities
64,255,862 62,370,043
Listed 1,126,417 994,592
Unlisted 539,374 544,000
Allowance for balances with and loans to other credit institutions (1,000,000) (3,000,000) Equity securities
267,969,645 249,470,372 Listed 235,767 252,544
Unlisted 90,303 98,492
Balances with and loans to other credit institutions by debt group were as follows: 1,991,861 1,889,628

31/12/2020 31/12/2019 Movements in allowance for trading securities during the year were as follows:
VND million VND million
Current debt 222,878,824 209,275,554 2020 2019
Loss debt 1,000,000 3,000,000 VND million VND million
223,878,824 212,275,554 Opening balance 88,502 70,245
Allowance (reversed)/made during the year (Note 28) (50,702) 18,257
Closing balance 37,800 88,502
176 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
177

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

8. DERIVATIVE FINANCIAL INSTRUMENTS AND OTHER FINANCIAL ASSETS Loan portfolio by type of borrowers was as follows:

31/12/2020 31/12/2019
31/12/2020 31/12/2019
VND million VND million
Contract value Book value Contract value Book value
State-owned enterprises 66,893,804 61,597,154
Assets/(liabilities) Assets/(liabilities)
Limited companies 155,046,852 139,575,487
VND million VND million VND million VND million
Foreign invested enterprises 52,121,844 43,644,729
Currency derivatives financial instruments
Co-operative and private companies 2,653,308 2,268,308
Currency swap contracts 105,690,304 (69,164) 80,161,918 (59,895)
Individuals 380,751,584 315,781,580
Currency forward contracts 13,207,615 17,133 13,347,334 158,207
Others 182,320,869 171,839,633
118,897,919 (52,031) 93,509,252 98,312
839,788,261 734,706,891

Loan portfolio by industry sector was as follows:

9. LOANS TO CUSTOMERS
31/12/2020 31/12/2019
31/12/2020 31/12/2019
VND million VND million
VND million VND million
Processing and manufacturing 178,521,411 174,032,670
Loans to local economic entities and individuals 832,010,220 726,968,213
Trading and services 202,773,035 131,856,583
Discounted bills and valuable papers 2,549,713 3,172,630
Electricity, gas, water processing and supplying 40,333,441 30,411,521
Finance leases 4,608,056 4,429,029
Construction 71,273,525 32,357,572
Loans given to make payments on behalf of customers - 1,000
Transportation, logistics and communication 26,843,614 24,742,604
Loans to foreign organisations and individuals 620,272 136,019
Mining 14,591,656 14,458,842
839,788,261 734,706,891
Agriculture, forestry and aquaculture 17,069,197 16,122,626
Hospitality 10,166,471 12,837,989
Loan portfolio by debt group was as follows:
Others 278,215,911 297,886,484

31/12/2020 31/12/2019 839,788,261 734,706,891

VND million VND million
Current debt 831,765,014 726,358,767 10. ALLOWANCE FOR LOANS TO CUSTOMERS
Special mentioned debt 2,793,678 2,978,196
Sub-standard debt 668,690 686,839 31/12/2020 31/12/2019
VND million VND million
Doubtful debt 223,292 153,248
General allowance 5,895,579 5,282,328
Loss debt 4,337,587 4,529,841
Specific allowance 13,347,215 4,951,309
839,788,261 734,706,891
19,242,794 10,233,637

Loan portfolio by term was as follows: Movements in general allowance for loans to customers during the year were as follows:

31/12/2020 31/12/2019 31/12/2020 31/12/2019

VND million VND million VND million VND million

Short-term debt 434,373,690 384,355,979 Opening balance 5,282,328 4,695,445

Medium-term debt 43,091,944 48,461,992 Allowance made during the year (Note 33) 613,274 586,898

Long-term debt 362,322,627 301,888,920 Foreign exchange difference (23) (15)

839,788,261 734,706,891 Closing balance 5,895,579 5,282,328

178 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
179

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

Movements in specific allowance for loans to customers during the year were as follows: (*) Movements in general allowance for unlisted corporate bonds (including bonds issued by other local credit institutions on the
secondary market) during the year were as follows:
2020 2019
VND million VND million 31/12/2020 31/12/2019
Opening balance 4,951,309 5,598,064 VND million VND million
Allowance made during the year (Note 33) 11,201,979 3,855,715 Opening balance 124,125 88,125
Allowance utilised for writing-off bad debts (2,805,965) (4,502,397) Allowance made during the year (Note 33) 69,353 36,000
Foreign exchange difference (108) (73) Closing balance 193,478 124,125
Closing balance 13,347,215 4,951,309
Held-to-maturity securities

11. INVESTMENT SECURITIES 31/12/2020 31/12/2019

VND million VND million
31/12/2020 31/12/2019 Held-to-maturity securities
VND million VND million Government bonds 59,001,448 82,997,995
Available-for-sale securities (a) 41,955,076 35,574,786 Debt securities issued by other local credit institutions 51,041,344 42,593,538
Held-to-maturity securities (b) 114,976,021 131,954,903 Debt securities issued by local economic entities 5,339,752 6,679,769
156,931,097 167,529,689 115,382,544 132,271,302
Allowance for held-to-maturity securities (ii) (406,523) (316,399)
Available-for-sale securities Total held-to-maturity securities 114,976,021 131,954,903

31/12/2020 31/12/2019 Details of allowance for held-to-maturity securities:

VND million VND million
AVAILABLE-FOR-SALE SECURITIES 31/12/2020 31/12/2019
VND million VND million
Debt securities General allowance for unlisted corporate bonds 406,523 316,399
Government bonds 9,444,422 17,444,329
Debt securities issued by other local credit institutions 32,696,219 18,246,571 Movements in general allowance for unlisted corporate bonds (including bonds issued by other local credit institutions on the
secondary market) during the year were as follows:
Equity securities
31/12/2020 31/12/2019
Equity securities issued by other local economic institutions 8,190 8,190
VND million VND million
42,148,831 35,699,090
Opening balance 316,399 187,734
Allowance for available-for-sale securities (i) (193,755) (124,304)
Allowance made during the year (Note 33) 90,124 128,665
Total available-for-sale securities 41,955,076 35,574,786
Closing balance 406,523 316,399

Details of allowance for available-for-sale securities:

Classification of unlisted securities as assets with credit risk:

31/12/2020 31/12/2019
31/12/2020 31/12/2019
VND million VND million
VND million VND million
General allowance for unlisted corporate bonds (*) 193,478 124,125
Current debt 86,417,752 62,473,769
General allowance for equity investments 277 179
193,755 124,304
180 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
181

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

Investments in associates
12. CAPITAL CONTRIBUTIONS, LONG-TERM INVESTMENTS
As at 31 December 2020:
Investments in joint-ventures

As at 31 December 2020: Business Ownership Carrying

Cost
sector percentage value

Business Ownership Carrying (%) VND million VND million

Cost
sector percentage value Vietcombank – Bonday Joint-venture Office leasing 16% 11,110 11,248
(%) VND million VND million Company Limited

Vietcombank – Bonday – Ben Thanh Joint- Office leasing 52% 410,365 552,840
As at 31 December 2019:
venture Company Limited (i)
Vietcombank Fund Management (i) Investment fund 51% 135,150 162,095
Business Ownership Carrying
management Cost
sector percentage value
545,515 714,935
(%) VND million VND million

As at 31 December 2019: Vietcombank – Bonday Joint-venture Cho thuê 16% 11.110 10.863
Company Limited văn phòng

Business Ownership Carrying

Cost The Bank has significant influence but limited control, through its participation in this company’s Members’ Council, over the financial
sector percentage value
and operating policies of this company. Therefore, the investment in the above company is classified into “Investments in associates”
(%) VND million VND million
rather than “Other long-term investments”.
Vietcombank – Bonday – Ben Thanh Office leasing 52% 410,365 515,262
Joint-venture Company Limited (i) Other long-term investments
Vietcombank Fund Management (i) Investment fund 51% 135,150 152,913
management As at 31 December 2020:
Vietcombank – Cardif Life Insurance Life insurance 45% 270,000 272,632
Company Limited (ii) Ownership
815,515 940,807 Business sector percentage Cost
(%) VND million

The Bank owns 52% of the total contributed capital of On 3 April 2020, the Bank received the Official Letter No. 3938/
Vietcombank – Bonday – Ben Thanh Joint-venture Company BTC-QLBH of the Ministry of Finance approving the principles Vietnam Export – Import Commercial Joint Stock Bank Banking 4.50% 319,907
Limited and 51% of the total contributed capital of Vietcombank of transferring the Bank’s contributed capital at Vietcombank – Military Commercial Joint Stock Bank Banking 4.31% 802,269
Fund Management. These companies’ charters require a Cardif Life Insurance Company Limited to FWD Life Insurance
Small and Medium Enterprises Credit Guarantee Fund Credit guarantee services 0.80% 1,864
consensus among related parties on all important decisions Company (Bermuda) Limited. In 2020, the Bank completed the
on the companies’ operational and financial matters. Hence, procedures for transferring the contributed capital. Petrolimex Insurance Corporation Insurance 8.03% 67,900
owning more than half of the companies’ contributed capital Vietnam Credit Information Joint Stock Company Credit information services 6.64% 7,962
does not mean that the Bank has control over these companies. Vietnam Infrastructure Development and Financial Highway investment 1.97% 75,000
The investments in these two companies are classified into Investment JSC.
“Investments in joint-ventures” rather than “Investments in
National Payment Corporation of Vietnam Card and settlement services 1.83% 4,400
subsidiaries”.
Vietnam Airlines JSC. Aviation 1.04% 305,585
SWIFT, MASTER and VISA Card and settlement services - 2,936
1,587,823
Allowance for other long-term investments (75,000)
1,512,823
182 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
183

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

As at 31 December 2019:
13. TANGIBLE FIXED ASSETS
Ownership Year ended 31 December 2020:
Business sector percentage Giá gốc
(%) VND million Motor vehicles
Vietnam Export – Import Commercial Joint Stock Bank Banking 4.50% 319,907 Buildings and Machinery and and means of
structures equipment transmission Others Total
Military Commercial Joint Stock Bank Banking 4.42% 802,269
VND million VND million VND million VND million VND million
Small and Medium Enterprises Credit Guarantee Fund Credit guarantee services 0.80% 1,864 Cost
Petrolimex Insurance Corporation Insurance 8.03% 67,900 Opening balance (restated) 4,528,872 4,152,078 986,640 1,494,580 11,162,170
Vietnam Credit Information Joint Stock Company Credit information services 6.64% 7,962 Additions during the year 1,004,906 443,539 166,034 235,519 1,849,998

Vietnam Infrastructure Development and Financial Highway investment 1.97% 75,000 Purchases 1,004,906 443,539 165,879 229,245 1,843,569
Investment JSC. Other increases - - 155 6,274 6,429
National Payment Corporation of Vietnam Card and settlement services 1.83% 4,400
Vietnam Airlines JSC. Aviation 1.04% 305,585 Decreases during the year (19,397) (87,754) (23,134) (15,694) (145,979)
Disposals (9,805) (86,734) (23,117) (15,689) (135,345)
SWIFT, MASTER and VISA Card and settlement services - 2,936
Other decreases (9,592) (1,020) (17) (5) (10,634)
1,587,823
Allowance for other long-term investments (75,000)
Closing balance 5,514,381 4,507,863 1,129,540 1,714,405 12,866,189
1,512,823

Accumulated
Movements in allowance for other long-term investments during the year were as follows: depreciation
Opening balance 1,313,615 3,683,351 667,593 1,051,902 6,716,461
2020 2019 (restated)
VND million VND million
Additions during the year 219,735 370,123 89,048 196,889 875,795
Opening balance 75,000 66,998 Charges for the year 218,752 370,026 89,048 196,735 874,561
Allowance made during the year (Note 32) - 8,002 Other increases 983 97 - 154 1,234
Closing balance 75,000 75,000
Decreases during the year (8,773) (86,738) (23,121) (18,574) (137,206)
Disposals (8,773) (86,734) (23,117) (15,595) (134,219)
Other decreases - (4) (4) (2,979) (2,987)

Closing balance 1,524,577 3,966,736 733,520 1,230,217 7,455,050

Net book value

Opening balance (restated) 3,215,257 468,727 319,047 442,678 4,445,709
Closing balance 3,989,804 541,127 396,020 484,188 5,411,139

Included in tangible fixed assets were assets costing VND4,879,798 million which were fully depreciated as of 31 December
2020, but still in use (31 December 2019: VND4,374,256 million).
184 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
185

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

14. INTANGIBLE FIXED ASSETS External receivables

Year ended 31 December 2020: 31/12/2020 31/12/2019

VND million VND million

Land Copyrights Advances for purchase of fixed assets 800,898 1,088,039

use rights and patents Others Total Receivables from the State Budget in relation to the 325,088 311,981
VND million VND million VND million VND million interest subsidy program 1,182 60
Cost Overpaid corporate income tax (Note 38) 14,251 31,812

Opening balance 2,180,059 827,249 43,361 3,050,669 Deductible value added tax (Note 38) 230 2
Advances for other taxes (Note 38) 455,357 794,212
Additions during the year 322,602 837,084 2,484 1,162,170
Construction in progress (*) 3,417,785 5,008,931
Purchases 318,765 837,084 2,484 1,158,333
Other receivables 5,014,791 7,235,037
Other increases 3,837 - - 3,837
Other decreases during the year - (302) (657) (959) (*) Details of construction in progress are follows:

Closing balance 2,502,661 1,664,031 45,188 4,211,880 31/12/2020 31/12/2019

VND million VND million

Accumulated amortisation Construction in progress 455,357 794,212

In which, large constructions include: 281,059 402,946
Opening balance 89,468 675,614 24,793 789,875
Thanh Cong Branch’s office construction 47,881 268,588
Charges for the year 15,017 276,937 1,984 293,938
North Sai Gon Branch’s office construction 58,196 39,894
Other decreases during the year - - (156) (156)
Can Tho Branch’s office construction 47,811 25,309
Dong Thap Branch’s office construction 30,431 2,261
Closing balance 104,485 952,551 26,621 1,083,657
Lao Cai Branch’s office construction 25,365 1,016
Bac Lieu Branch’s office construction 23,972 1,269
Net book value Phu Tho Branch’s office construction 20,111 587
Opening balance 2,090,591 151,635 18,568 2,260,794 Gia Lai Branch’s office construction 7,671 7,879
Closing balance 2,398,176 711,480 18,567 3,128,223 Ha Noi Branch’s office construction 6,768 6,390
Binh Thuan Branch’s office construction 5,908 2,445
Included in intangible fixed assets were assets costing VND670,960 million which were fully depreciated as of 31 December 2020, Lang Son Branch’s office construction 5,726 17,074
but still in use (31 December 2019: VND632,470 million).
Phu Yen Branch’s office construction 1,219 30,234

Accrued interest and fee receivables

15. OTHER ASSETS
31/12/2020 31/12/2019
Receivables
VND million VND million
From loans to customers 2,381,755 2,760,538
31/12/2020 31/12/2019
From balances with and loans to other credit institutions 171,405 396,445
VND million VND million
From investment securities 4,530,898 4,822,200
Internal receivables 1,653,804 1,595,353
From derivative transactions 120,257 83,920
External receivables (i) 5,014,791 7,235,037 Fees receivable 1,810 1,705
6,668,595 8,830,390 7,206,125 8,064,808
186 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
187

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

Deferred tax assets

17. DEPOSITS AND BORROWINGS FROM OTHER CREDIT INSTITUTIONS

31/12/2020 31/12/2019 31/12/2020 31/12/2019

VND million VND million VND million VND million
Deferred tax assets arising from deductible temporary differences 909,263 405,543 Deposits from other credit institutions 100,916,433 71,046,512
Demand deposits in VND 6,654,782 7,400,827
Other assets
Demand deposits in foreign currencies 42,123,289 27,053,436
Term deposits in VND 33,600,000 24,500,000
31/12/2020 31/12/2019
VND million VND million Term deposits in foreign currencies 18,538,362 12,092,249

Prepaid expenses for office and fixed assets rental 802,036 886,166
Borrowings from other credit institutions 2,667,400 2,570,573
Materials 141,229 155,406
Borrowings in VND 2,667,400 1,259,900
Advance for card payment 1,289,754 1,422,634
Borrowings in foreign currencies - 1,310,673
Advance for rental land 726,733 465,839
103,583,833 73,617,085
Other assets 2,076,886 1,580,547

5,036,638 4,510,592 18. DEPOSITS FROM CUSTOMERS

Allowance for other assets (3,934) (3,839)
31/12/2020 31/12/2019
5,032,704 4,506,753
VND million VND million
Demand deposits 307,026,182 262,977,124
Demand deposits in VND 238,209,238 199,196,380
16. AMOUNTS DUE TO THE GOVERNMENT AND THE STATE BANKS Demand deposits in gold, foreign currencies 68,816,944 63,780,744

31/12/2020 31/12/2019 Term deposits 693,604,644 642,710,681

VND million VND million
Term deposits in VND 614,908,265 561,425,254
Borrowings from the State Bank of Vietnam 2,347,294 3,065,470
Term deposits in gold, foreign currencies 78,696,379 81,285,427
Borrowings on the basis of credit profiles 1,800,563 2,263,278

Other borrowings 546,731 802,192

Deposits for specific purposes 27,325,921 21,019,106
Margin deposits 4,156,820 1,743,958
Deposits from the State Treasury 36,393,923 89,288,604 1,032,113,567 928,450,869
Demand deposits in VND 463,641 335,832
Deposits from customers by customer type were as follows:
Demand deposits in foreign currencies 513,282 1,087,772

Term deposits in VND 35,417,000 87,865,000

31/12/2020 31/12/2019
VND million VND million

Deposits from the State Bank of Vietnam 2,435,778 11,732 Economic entities 522,325,061 461,608,933

41,176,995 92,365,806 Individuals 509,788,506 466,841,936

1,032,113,567 928,450,869
188 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
189

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

Other liabilities
19. FUNDS FOR FINANCE, ENTRUSTED INVESTMENTS AND ENTRUSTED LOANS

31/12/2020 31/12/2019
31/12/2020 31/12/2019
VND million VND million
VND million VND million
Internal payables (i) 3,914,344 3,503,718
Funds for finance, entrusted investments and entrusted loans in VND 14,679 20,431
External payables (ii) 15,801,471 8,076,691

Bonus and welfare funds 4,440,162 4,055,515

20. VALUABLE PAPERS ISSUED
24,155,977 15,635,924

31/12/2020 31/12/2019
VND million VND million
Internal payables
Certificates of deposits

Medium-term in VND 115 325 31/12/2020 31/12/2019

VND million VND million
Medium-term in foreign currencies - 691
Payables to employees 3,253,225 2,931,200

Other liabilities 661,119 572,518

Bonds and bills
3,914,344 3,503,718
Short-term in VND 47 47

Short-term in foreign currencies 30 30 External payables

Medium-term in VND 10,437,945 10,552,616

Medium-term in foreign currencies 12 12 31/12/2020 31/12/2019

VND million VND million
Long-term in VND 10,802,048 10,830,211
Tax payables (Note 38) 2,191,103 1,823,729
21,240,197 21,383,932
Corporate income tax payables 1,927,716 1,525,963

Value added tax payables 124,718 117,018

Other tax payables 138,669 180,748

21. OTHER LIABILITIES
Unearned income 6,718,012 1,371
Accrued interest and fee payables Payables for construction and acquisition of fixed assets 1,212,030 266,324

Deposits in custody relating to pending payments 205,442 253,820

31/12/2020 31/12/2019
Other payables to customers 834,760 1,288,992
VND million VND million
Other pending items in settlement 204,272 176,176
Interest for deposits from customers 9,345,530 9,835,069
Other payables to the State relating to interest subsidy program 64,528 64,528
Interest for deposits and borrowings from other credit institutions 21,387 51,452
Borrowings from the Ministry of Finance 906,194 1,003,156
Interest for valuable papers issued 365,041 370,979
Dividends payables (*) 747,619 747,619
Interest for derivative financial instruments 65,876 102,640
Other payables 2,717,511 2,450,976
Fee for entrusted investments - 3,145
15,801,471 8,076,691
9,797,834 10,363,285

(*) Until 8 January 2021, the Bank completed the payment of these dividends.
190 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
191

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with

FINANCIAL STATEMENTS
Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014)
for the year ended 31 December 2020

22. OWNERS’ EQUITY

Statement of changes in equity

Reserves Reserves
Supplementary Investment Foreign Differences Non-
Charter Share Other charter capital Financial and develop- exchange upon asset Retained controlling
capital premium capital reserve reserve ment fund Total differences revaluation profits interest Total
VND million VND million VND million VND million VND million VND million VND million VND million VND million VND million VND million VND million

Balance as at 1/1/2020 4,995,389 344,658 4,041,013 8,074,467 70,661 12,186,141 16,361 113,011 26,126,544 83,459 80,954,337
(restated) 37,088,774

Net profit for the year - - - - - - - - - 18,451,311 21,207 18,472,518

Compulsory reserves temporarily - - - 902,187 1,804,375 - 2,706,562 - - (2,706,562) - -

appropriated from profit for 2020

Bonus and welfare funds temporarily - - - - - - - - - (1,859,105) - (1,859,105)

appropriated for 2020

Adjusments for the appropriation of - - - (8) (15) - (23) - - (360,322) - (360,345)

reserves and fund according to the
Resolution of General Meeting of
Shareholders

Adjusments according to the Resolution - - - (68) 4,070 - 4,002 - - (18,837) (591) (15,426)
of the subsidiary

Dividends of 2019 to shareholders - - - - - - - - - (2,967,102) - (2,967,102)

(Note 23)

Dividends paid according to the - - - - - - - - - - (19,013) (19,013)

Resolution of the subsidiary

Utilisation during the year - - - - (11,903) - (11,903) - - - - (11,903)

Reserves appropriation of subsidiaries - - - 18,039 22,985 - 41,024 - - (53,326) - (12,302)

Foreign currency differences - - - - - - - (11,258) - - (38) (11,296)

Asset revaluation - - - - - - - - (113,011) - - (113,011)

Adjustments for joint-ventures and - - - - - - - - - 2,361 - 2,361

associates upon the equity method

Other movements - - - - - - - - - 35,266 - 35,266

Balance as at 31/12/2020 4,995,389 344,658 4,961,163 9,893,979 70,661 14,925,803 5,103 - 36,650,228 85,024 94,094,979
37,088,774
192 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
193

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

Details of shareholders of the Bank 25. INTEREST AND SIMILAR EXPENSES

31/12/2020 31/12/2019 2020 2019

VND million VND million VND million VND million
Ordinary shares
Interest expenses on deposits 31,150,286 31,205,637
The Government of Vietnam 27,743,534 27,743,534
Interest expenses on borrowings 197,705 337,223
Foreign strategic shareholder (Mizuho Bank Ltd., Japan) 5,563,349 5,563,349
Other shareholders 3,781,891 3,781,891 Interest expenses on valuable papers issued 1,503,840 1,500,039

37,088,774 37,088,774 Other expenses on credit activities 67,828 84,869

32,919,659 33,127,768
The Bank’s authorised and issued share capital is as follows:

31/12/2020 và 31/12/2019
26. NET FEE AND COMMISSION INCOME
Number of shares VND million
Authorised share capital 3,708,877,448 37,088,774
2020 2019
VND million VND million
Issued share capital
Fee and commission income from
Ordinary shares 3,708,877,448 37,088,774
Settlement services 6,017,661 6,199,194

Outstanding shares in circulation Treasury services 74,593 164,507

Ordinary shares 3,708,877,448 37,088,774 Trusted and agency activities 9,289 1,278

Other services 4,486,620 2,640,130

All ordinary shares of the Bank have a par value of VND 10,000.
10,588,163 9,005,109
23. DIVIDENDS Fee and commission expenses for

TIn accordance with Resolution No. 13/TN2020/NQ-DHDCD dated 26 June 2020, the Bank’s General Meeting of Shareholders Settlement services (3,192,493) (3,877,007)
decided to pay cash dividend of 2019 at 8% of par value, equivalent to VND2,967,102 million. On 8 December 2020, the Bank’s Treasury services (109,932) (96,571)
Board of Director approved Resolution No. 595/NQ-VCB-HDQT on dividend payment of 2019. Until 8 January 2021, the Bank
Telecommunication services (125,174) (114,680)
completed the payment of dividends to shareholders.
Trusted and agency activities (6,107) (3,485)
24. INTEREST AND SIMILAR INCOME Other services (547,140) (603,920)

(3,980,846) (4,695,663)
2020 2019
VND million VND million 6,607,317 4,309,446
Interest income from loans to customers 56,056,454 53,100,063
Interest income from deposits 2,362,665 4,412,907
Interest income from trading and investing in debt securities 9,405,447 8,893,830
from investment securities 9,197,858 8,809,299
from trading securities 207,589 84,531
Interest income from finance lease 330,131 326,787
Income from guarantee activities 448,022 480,786
Other income from credit activities 602,415 451,123
69,205,134 67,665,496
194 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
195

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

27. NET GAIN FROM TRADING OF FOREIGN CURRENCIES 30. NET OTHER INCOME

2020 2019 2020 2019

VND million VND million VND million VND million
Gains from trading of foreign currencies
Other income
From foreign currencies spot trading 6,841,473 6,397,100
Income from recoveries of loans previously written off 2,421,725 3,179,526
From currency derivatives financial instruments 650,399 781,001
From foreign exchange rate differences 474,545 562,523 Income from interest rate swap transactions 195 59,590
From revaluation of derivative contracts 6,541 40,323 Other income 122,794 188,679
7,972,958 7,780,947 2,544,714 3,427,795
Losses from trading of foreign currencies
Other expenses
From foreign currencies spot trading (2,913,034) (3,627,773)
From currency derivatives financial instruments (1,068,516) (653,967) Expenses on interest rate swap transactions (117,968) -

From foreign exchange rate differences (39,477) (73,863) Expenses on debts trading activities (171) (32)
From revaluation of derivative contracts (45,532) (47,070) Expenses on social activities (301,184) (163,238)
(4,066,559) (4,402,673)
Other expenses (325,138) (194,700)
3,906,399 3,378,274
(744,461) (357,970)

1,800,253 3,069,825
28. NET GAIN FROM TRADING SECURITIES

2020 2019 31. INCOME FROM CAPITAL CONTRIBUTIONS AND EQUITY INVESTMENTS
VND million VND million
Income from trading securities 113,299 207,337 2020 2019
Expenses for trading securities (162,191) (43,098) VND million VND million
Allowance reversed/(made) for trading securities (Note 7) 50,702 (18,257) Dividends received from equity investments (Note 34(a)) 83,959 154,582
1,810 145,982
Dividends received from capital contribution, share purchases 69,684 135,090

Dividends received from trading equity securities 14,275 19,492

29. NET (LOSS)/GAIN FROM INVESTMENT SECURITIES Income from disposals of equity investments 335,274 48,178

Share of gain of investments in joint-ventures and associates 42,152 42,336

2020 2019
upon the equity method (Note 34(a))
VND million VND million
Income from investment securities - 7,220 461,385 245,096

Expenses on investment securities - (1)

Allowance made for equity investments (98) (179)
(98) 7,040
196 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
197

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

34. CORPORATE INCOME TAX

32. OPERATING EXPENSES
Reconciliation of effective tax rate
2020 2019
VND million VND million 2020 2019
Tax, duties and fees 246,322 358,529 VND million VND million
Salaries and related expenses 8,603,051 8,668,273 Profit before tax 23,049,561 23,211,571
Of which:
Salary and allowances (Note 37) 7,674,765 7,806,861 Adjustments:
Additional expenses based on salary 683,529 654,098 Taxable income of subsidiaries (481,245) (378,867)
Other allowances 5,868 5,566 Dividends received during the year (Note 31) (83,959) (154,582)
Expenses on assets 2,902,528 2,701,784 Share of profit from investments in joint-ventures and associates under the equity (42,152) (42,336)
Of which: method (Note 31)
Depreciation of fixed assets 1,168,499 829,204 Tax exempt from consolidation adjustments (36,959) 15,523
Administrative expenses 3,603,531 3,515,461 Non-deductible expenses during the year 4,518,833 2,020,699
Insurance expenses on deposits of customers 631,788 578,981 Reversal of non-deductible expenses of the prior year (2,000,000) -
Allowance made for other long-term investments (Note 12(c)) - 8,002
Other expenses 51,030 43,512 Taxable income 24,924,079 24,672,008
16,038,250 15,874,542 Statutory corporate income tax rate 20% 20%
Corporate income tax of the Bank (tax rate: 20%) 4,984,816 4,934,401
33. ALLOWANCE FOR CREDIT LOSSES Corporate income tax of a subsidiary (tax rate: 24%) 7,711 7,835
Corporate income tax of subsidiaries (tax rate: 20%) 88,541 66,815
2020 2019 corporate income tax of a subsidiary (tax rate: 16.5%) - 1,251
VND million VND million
Allowance for balances with and loans to other credit institutions
Current corporate income tax expenses for the year 5,081,068 5,010,302
Allowance (reversed)/made (Note 6) (2,000,000) 2,000,000

General allowance for loans to customers Deferred corporate income tax expenses
Allowance made (Note 10) 613,274 586,898
2020 2019
Specific allowance for loans to customers VND million VND million
Allowance made (Note 10) 11,201,979 3,855,715 Deferred corporate income tax expenses (504,025) (396,075)
arising from deductible temporary differences

General allowance for unlisted corporate bonds

Applicable tax rates
Allowance made for available-for-sale securities (Note 11(a)) 69,353 36,000
Allowance made for held-to-maturity securities (Note 11(b)) 90,124 128,665 The Bank and its subsidiaries have an obligation to pay the Government income tax at the rate of 20% of taxable profits, except for
9,974,730 6,607,278 Vietcombank Laos Limited whose applicable tax rate is 24% and Vietnam Finance Company Limited in Hong Kong whose applicable
tax rate is 16.5%. Corporate income tax computation is subject to review and approval by tax authorities.
198 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
199

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

35. BASIC EARNINGS PER SHARE 38. OBLIGATIONS TO THE STATE BUDGET

Profit used for calculation of basic earnings per share Occurrence during the year Balance as at 31/12/2020

2020 2019 Balance as at

VND million VND million 1/1/2020 Incurred Paid Payables Advances Total
Net profit 18,451,311 18,582,254 VND million VND million VND million VND million VND million VND million
Appropriation to bonus and welfare funds (*) (1,871,407) (2,276,180)
Value added tax 85,206 572,182 (546,921) 124,718 (14,251) 110,467

Profit attributable to the ordinary shareholders during the year 16,579,904 16,306,074 Current corporate 1,525,903 5,080,948 (4,680,317) 1,927,716 (1,182) 1,926,534
income tax
(*) As the bonus and welfare funds is to be appropriated at the year-end, net profit used to calculate earnings per share for the year In which:
ended 31 December was revised to deduct the amount appropriated to bonus and welfare funds of the corresponding year.
Corporate income tax of 1,525,963 5,081,068 (4,680,425) 1,927,716 (1,110) 1,926,606
Vietcombank
Weighted average number of ordinary shares.
Adjustments on tax of (2) (120) 108 - (14) (14)
2020 2019 previous years
Issued ordinary shares at 1 January 3,708,877,448 3,597,768,575
Vinafico’s tax obligation (58) - - - (58) (58)
Effect of ordinary shares issued during the year - 102,889,860 in 2008
Weighted average number of outstanding ordinary shares 3,708,877,448 3,700,658,435
during the year Other taxes 180,746 1,200,435 (1,242,742) 138,669 (230) 138,439

1,791,855 6,853,565 (6,469,980) 2,191,103 (15,663) 2,175,440

Basic earnings per share

2020 2019
39. ASSETS AND VALUABLE PAPERS FOR PLEDGING, MORTGAGING
Basic earnings per share (VND/share) 4,470 4,406
AND DISCOUNT, RE-DISCOUNT

Assets and valuable papers received for pledging, mortgaging and discount, re-discount
36. CASH AND CASH EQUIVALENTS
31/12/2020 31/12/2019
31/12/2020 31/12/2019
VND million VND million VND million VND million

Cash on hand, gold, silver and gemstones 15,095,394 13,778,358 Deposits 124,105,909 109,803,809
Balances with the State Banks 33,139,373 34,684,091
Valuable papers 93,030,576 82,429,392
Balances with and loans to other credit institutions with original term 244,347,935 223,808,086
not exceeding 3 months Real estate 957,536,579 795,024,169
292,582,702 272,270,535
Other collaterals 266,888,049 243,180,100

37. EMPLOYEES’ BENEFITS 1,441,561,113 1,230,437,470

2020 2019
Total number of employees (person) 20,062 18,948
Employees’ income
Total salary and allowance (VND million) (Note 32) 7,674,765 7,806,861
Monthly average income/person (VND million) 31.88 34.33
200 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
201

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

Significant balances with related parties

40. CONTINGENT LIABILITIES AND OTHER COMMITMENTS
In the normal course of business, Vietcombank is a party to Commercial at sight letters of credit represent a financing Mối liên quan 31/12/2020 31/12/2019
financial instruments which are recorded as off-balance sheet transaction by Vietcombank to its customers where the customer VND million VND million
items. These financial instruments mainly comprise financial is usually the buyer/importer of goods and the beneficiary is
Receivable/(payable)
guarantees and letters of credit. These instruments involve typically the seller/exporter. Credit risk is limited as the imported
elements of credit risk in excess of the amounts recognised in merchandise serves as collaterals for the transaction. The State Bank of Vietnam Representative of owner
the consolidated balance sheet.
Deposits at the SBV 33,010,030 34,404,607
Deferred payment letters of credit contain the risk of customers
Credit risk for off-balance sheet financial instruments is not making payment to their beneficiaries upon contract Deposits and borrowings from the SBV (4,783,072) (3,077,202)
defined as the possibility of incurring a loss because any other performance. When deferred payment letters of credit are
counterparty to a financial instrument fails to discharge its defaulted by customers, Vietcombank recognises a compulsory
The Ministry of Finance (“the MoF”) Related party of owner
contractual obligations. loan to a customer and at the same time a corresponding liability
representing the financial obligation of Vietcombank to pay the Deposits at the Bank (36,393,923) (89,288,604)
Financial guarantees are conditional commitments issued by beneficiaries and to fulfil the guarantor obligations. Borrowings from the MoF (906,194) (1,003,156)
Vietcombank to guarantee transactions of its customers with
third parties including loan guarantee, payment guarantee, Vietcombank normally requires margin deposits to support
performance guarantee and bid guarantee. Such guarantees credit-related financial instruments as necessary. The margin Mizuho Bank Ltd., Japan Strategic shareholder
expose Vietcombank to similar credit risk to loans to customers. deposits ratio required varies from nil to 100% of the value of
Deposits at Mizuho Bank Ltd., Japan 9,711,861 5,588,921
a commitment granted depending on the creditworthiness of
customers as assessed by Vietcombank. Deposits from Mizuho Bank Ltd., Japan (4,236,034) (3,913,211)

Loans to Mizuho Bank Ltd., Japan - 100,000

42. DISCLOSURE OF REMUNERATION FOR MEMBERS OF THE BOARD OF DIRECTORS

41. SIGNIFICANT TRANSACTIONS AND BALANCES WITH RELATED PARTIES AND MEMBERS OF THE SUPERVISORY BOARD
AND SALARY FOR MEMBERS OF THE BOARD OF MANAGEMENT
Significant transactions with related parties

Remuneration for members of the Board of Directors and members of the Supervisory Board and salary for members of the Board
Relationship 2020 2019 of Management incurred and paid from the salary fund during the year were as follows:
VND million VND million

Income/(expense) 2020 2019

The State Bank of Vietnam Representative of owner VND million VND million

Interest income from deposits 147,042 209,296 Members of the Board of Directors 13,792 14,849

Interest expenses on deposits and borrowings (107,008) (130,356) Members of the Supervisory Board 3,651 3,927

Members of the Board of Management 14,710 16,253

The Ministry of Finance Related party of owner 32,153 35,029

Interest expenses on deposits (539,434) (1,557,823)

Interest expenses on borrowings (34,167) (43,855)

202 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
203

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with

FINANCIAL STATEMENTS
Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014)
for the year ended 31 December 2020

43. SEGMENT REPORTING

Geographical segment reporting

Year ended 31 December 2020:

The Middle and

The North (*) Central Highland The South Overseas Elimination Total

VND million VND million VND million VND million VND million VND million

1 Interest and similar income 93,561,834 16,509,703 47,598,660 76,861 (88,541,924) 69,205,134

2 Interest and similar expenses (78,134,685) (11,245,574) (32,081,595) (5,876) 88,548,071 (32,919,659)

I Net interest income 15,427,149 5,264,129 15,517,065 70,985 6,147 36,285,475

3 Fee and commission income 7,189,794 679,034 2,928,411 76,477 (285,553) 10,588,163

4 Fee and commission expenses (3,970,123) (33,886) (99,106) (23,190) 145,459 (3,980,846)

II Net fee and commission income/(expense) 3,219,671 645,148 2,829,305 53,287 (140,094) 6,607,317

III Net gain from trading of foreign currencies 2,533,901 156,766 1,214,879 853 - 3,906,399

IV Net gain/(loss) from trading securities 7,941 - - - (6,131) 1,810

V Net loss from investment securities (98) - - - - (98)

5 Other income 1,159,082 500,291 884,050 1,291 - 2,544,714

6 Other expenses (365,632) (127,133) (251,696) - - (744,461)

VI Net other income 793,450 373,158 632,354 1,291 - 1,800,253

VII Income from capital contributions and equity investments 461,385 - - - - 461,385

Total operating income 22,443,399 6,439,201 20,193,603 126,416 (140,078) 49,062,541

VIII Total operating expenses (10,949,821) (1,378,082) (3,775,168) (79,694) 144,515 (16,038,250)

IX Net operating profit before allowances for credit losses 11,493,578 5,061,119 16,418,435 46,722 4,437 33,024,291

X Allowances for credit losses (7,697,793) (792,057) (1,482,438) (2,442) - (9,974,730)

XI Profit before tax 3,795,785 4,269,062 14,935,997 44,280 4,437 23,049,561

7 Current corporate income tax expenses (1,232,984) (853,812) (2,986,561) (7,711) - (5,081,068)

8 Deferred corporate income tax expenses 503,720 - - 305 - 504,025

XII Corporate income tax expenses (729,264) (853,812) (2,986,561) (7,406) - (4,577,043)

XIII Profit after tax 3,066,521 3,415,250 11,949,436 36,874 4,437 18,472,518

(*) As at 31 December 2020, the Bank’s Head Office in the North made several payments of operating expenses for the entire system
but did not allocate such expenses to the units within the Bank.
204 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
205

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with

FINANCIAL STATEMENTS
Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014)
for the year ended 31 December 2020

Business segment

Year ended 31 December 2020:

Banking Non-banking
financial services financial services Securities Others Elimination Total

VND million VND million VND million VND million VND million VND million

1 Interest and similar income 157,054,516 400,398 271,951 20,193 (88,541,924) 69,205,134

2 Interest and similar expenses (121,217,494) (152,921) (89,668) (7,647) 88,548,071 (32,919,659)

I Net interest income 35,837,022 247,477 182,283 12,546 6,147 36,285,475

3 Fee and commission income 10,301,436 42,567 300,344 229,369 (285,553) 10,588,163

4 Fee and commission expenses (3,977,860) (964) (54,541) (92,940) 145,459 (3,980,846)

II Net fee and commission income/(expense) 6,323,576 41,603 245,803 136,429 (140,094) 6,607,317

III Net gain/(loss) from trading of foreign currencies 3,908,963 (2,564) - - - 3,906,399

IV Net (loss)/gain from trading securities (34,812) - 42,753 - (6,131) 1,810

IV Net loss from investment securities - - (98) - - (98)

5 Other income 2,535,589 8,120 403 602 - 2,544,714

6 Other expenses (744,422) (12) (21) (6) - (744,461)

VI Net other income 1,791,167 8,108 382 596 - 1,800,253

VII Income from capital contributions and equity investments 447,110 - 14,275 - - 461,385

Total operating income 48,273,026 294,624 485,398 149,571 (140,078) 49,062,541

VIII Total operating expenses (15,776,505) (135,226) (216,421) (54,613) 144,515 (16,038,250)

IX Net operating profit before allowance for credit losses 32,496,521 159,398 268,977 94,958 4,437 33,024,291

X Allowance for credit losses (9,934,124) (40,606) - - - (9,974,730)

XI Profit before tax 22,562,397 118,792 268,977 94,958 4,437 23,049,561

7 Current corporate income tax expenses (4,992,527) (24,737) (52,315) (11,489) - (5,081,068)

8 Deferred corporate income tax expenses 502,392 305 1,328 - - 504,025

XII Corporate income tax expenses (4,490,135) (24,432) (50,987) (11,489) - (4,577,043)

XIII Profit after tax 18,072,262 94,360 217,990 83,469 4,437 18,472,518
206 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
207

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

44. DISCLOSURE OF FINANCIAL INSTRUMENTS Fair value disclosure

Circular 210 requires Vietcombank to disclose the measurement method and related information of fair value of financial assets and
Collateral disclosure
financial liabilities for the purpose of comparing their carrying value and fair value.
Vietcombank does not hold collaterals which it is permitted to sell or re-pledge in the absence of default by the owner of the collaterals.
The following table presents carrying value and fair value of Vietcombank’s financial assets and liabilities as at 31 December 2020:

As at 31 December 2020

Carrying amount - gross

Loans and Recognised at Total of

Held for trading Held to maturity receivables Available for sale amortised cost carrying value Fair value
VND million VND million VND million VND million VND million VND million VND million

Financial assets

I Cash on hand, gold, silver and gemstones - - 15,095,394 - - 15,095,394 15,095,394

II Balances with the State Banks - - 33,139,373 - - 33,139,373 33,139,373

III Balances with and loans to other credit institutions - - 268,969,645 - - 268,969,645 (*)

IV Trading securities 1,991,861 - - - - 1,991,861 (*)

VI Loans to customers - - 839,788,261 - - 839,788,261 (*)

VIII Investment securities - 115,382,544 - 42,148,831 - 157,531,375 (*)

IX Capital contributions, long-term investments - - - 1,587,823 - 1,587,823 (*)

XII Other financial assets - - 13,901,539 - - 13,901,539 (*)

1,991,861 115,382,544 1,170,894,212 43,736,654 - 1,332,005,271

Financial liabilities
Amounts due to the Government and the State Banks and deposits and
I borrowings from other credit institutions - - - - 144,760,828 144,760,828 (*)

II Deposits from customers - - - - 1,032,113,567 1,032,113,567 (*)

III Derivative financial instruments and other financial liabilities 52,031 - - - - 52,031 (*)

IV Funds for finance, entrusted investments and entrusted loans - - - - 14,679 14,679 (*)

V Valuable papers issued - - - - 21,240,197 21,240,197 (*)

VI Other financial liabilities - - - - 15,942,570 15,942,570 (*)

52,031 - - - 1,214,071,841 1,214,123,872

(*) Due to insufficient information for valuation techniques, fair value of these financial assets and liabilities without an active market is not reliably estimated, and
therefore is not disclosed.
208 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
209

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

Risk management policies for financial instruments Credit risk Vietcombank’s maximum exposure amounts to credit risk as at 31 December 2020, excluding collaterals and credit risk mitigations
as follows:
The Board of Directors has the highest rights and responsibilities Vietcombank is exposed to credit risk, which is the risk of
for Vietcombank’s financial risk management to facilitate its incurring a loss because its customers or counterparties fail to
sustainable growth. discharge their contractual obligations. Credit exposures arise Neither past Past due Impaired and
mainly in lending activities relating to loans to customers, and due nor but not allowance
Having taken those responsibilities, the Board of Directors in investments in debt securities. Off-balance sheet financial impaired impaired made Total
appropriately promulgates risk management policies and instruments, such as loan commitments, also contain credit
strategies for each period, establishes risk limits, directly risk. Vietcombank controls and manages credit risk by setting VND million VND million VND million VND million
approves high-value business transactions in accordance with up related policies and procedures, including the credit risk
legal and internal requirements for each period, and determines management policies and operational risk management policy Balances with the State Banks 33,139,373 - - 33,139,373
organisational structure and key personnel positions. by the Risk Management Committee and Credit Committee.

Risk management strategies and policies of the Board of Vietcombank classifies loans to customers and other credit
Directors are adhered to Vietcombank’s charter and General institutions, off-balance sheet commitments, entrusted loans and Balances with and loans to other credit
Shareholders’ Meeting resolution for each period. unlisted corporate bonds in accordance with Circular 02 and institutions – gross 267,969,645 - 1,000,000 268,969,645
Circular 09 (Note 2(h)), and regularly assesses credit risks of
The Risk Management Committee was established by the non-performing loans in order to have appropriate resolutions. Balances with other credit institutions 204,713,783 - - 204,713,783
Board of Directors to assist the Board of Directors in managing
all risks that may arise from Vietcombank’s day-to-day business In order to manage credit risks, Vietcombank has established Loans to other credit institutions 63,255,862 - 1,000,000 64,255,862
operations. policies and procedures relating to credit risk management;
established credit manuals; performed credit risk assessment;
The Asset and Liability Credit and Operational Risk Committee set up internal credit rating systems and debt classification and
(“ALCO”) was established and chaired by the Chief Executive decentralised authorisation in credit activities. Trading securities 1,665,791 - - 1,665,791
Officer. ALCO members are key personnel of the Bank being
in-charge of risk management.

ALCO is responsible for comprehensively monitoring and Loans to customers – gross 810,702,036 10,803,072 18,283,153 839,788,261
managing assets and liabilities in the consolidated and separate
balance sheet of Vietcombank in order to maximise profit
while minimising losses arising from negative market trends,
manage liquidity risk and appropriately direct interest and foreign Investment securities – gross 157,523,185 - - 157,523,185
exchange rate schemes.
Available-for-sale investment securities 42,140,641 - - 42,140,641
Within its authority, ALCO has the rights to make risk
management decisions. Held-to-maturity investment securities 115,382,544 - - 115,382,544

Other assets 13,897,605 - 3,934 13,901,539

1,284,897,635 10,803,072 19,287,087 1,314,987,794

Further information of the carrying value of collaterals held by Vietcombank as at the reporting date are described in Note 39.
210 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
211

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

Interest rate risk The following table presents the interest rate re-pricing terms
of Vietcombank’s assets and liabilities as at 31 December 2020:
Interest rate risk is the risk that the future cash flows of a
financial instrument will unexpectedly fluctuate due to changes
in market interest rates. From over 3 From over 6 From over 1
Free of Up to From 1 to months to months to year to Over
Overdue interest 1 month 3 months 6 months 12 months 5 years 5 years Total
The actual interest re-pricing term is the remaining term
VND million VND million VND million VND million VND million VND million VND million VND million VND million
starting from the end of the annual accounting period to the
nearest interest re-pricing term of the items in the consolidated
balance sheet. Assets

The following assumptions and conditions have been adopted I Cash on hand, gold, silver and gemstones - 15,095,394 - - - - - - 15,095,394
in the analysis of actual interest re-pricing term of asset and
II Balances with the State Banks - - 33,139,373 - - - - - 33,139,373
liabilities items in the consolidated balance sheet of Vietcombank:
Balances with and loans to other credit
• Cash, gold, silver and gemstones, capital contributions, long- III institutions – gross - - 229,082,421 17,963,269 3,478,910 18,445,045 - - 268,969,645
term investments, and other assets (including fixed assets
IV Trading securities – gross - 326,070 1,665,791 - - - - - 1,991,861
and other assets) are classified as free of interest items;
VI Loans to customers – gross 12,519,728 - 154,301,126 273,642,180 214,699,585 86,390,965 90,625,451 7,609,226 839,788,261
• Trading securities which are debt securities are classified as
“Up to 1 month” items; VII Investment securities – gross - 8,190 3,519,446 11,681,908 19,340,454 24,331,181 89,695,026 8,955,170 157,531,375
Capital contributions, long-term investments
• The actual interest re-pricing terms of investment securities VIII – gross - 2,314,006 - - - - - - 2,314,006

are subject to issuers’ terms and conditions on interest rate IX Fixed assets - 8,539,362 - - - - - - 8,539,362
of issuing institution for each security type;
X Other assets – gross - 19,820,621 - - - - - - 19,820,621
• The actual interest re-pricing term of balances with and Total assets 12,519,728 46,103,643 421,708,157 303,287,357 237,518,949 129,167,191 180,320,477 16,564,396 1,347,189,898
loans to other credit institutions, loans to customers, amounts
due to the Government and the State Banks, deposits
and borrowings from other credit institutions, deposits
Liabilities
from customers, funds for finance, entrusted investments,
entrusted loans and other liabilities are identified as follows: Amounts due to the Government and the
State Banks and deposits and borrowings
• Items with fixed interest rate during the contractual I from other credit institutions - - 140,856,471 2,924,433 525,548 454,376 - - 144,760,828

term: the actual interest re-pricing term is based on II Deposits from customers - 131,705 571,052,061 184,105,481 108,632,517 163,566,727 4,605,486 19,590 1,032,113,567
the contractual maturity date subsequent to the end
of the annual accounting period; Derivative financial instruments and other
III financial liabilities - 52,031 - - - - - - 52,031

• Items with floating interest rate: the actual interest Funds for finance, entrusted investments
re-pricing term is based on the nearest re-pricing IV and entrusted loans - - - - - - 14,679 - 14,679
term subsequent to the end of the annual accounting
period. V Valuable papers issued - - 69,205 - - 10,907,198 8,898,794 1,365,000 21,240,197

VI Other liabilities - 33,047,617 837,727 68,467 - - - - 33,953,811

• The actual interest re-pricing term of valuable papers issued
is based on valuable papers’ maturities and the Bank’s Total liabilities - 33,231,353 712,815,464 187,098,381 109,158,065 174,928,301 13,518,959 1,384,590 1,232,135,113
interest rate for each issuance.
Interest sensitivity gap –
on balance sheet 12,519,728 12,872,290 (291,107,307) 116,188,976 128,360,884 (45,761,110) 166,801,518 15,179,806 115,054,785
212 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
213

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

Currency risk Liquidity risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Vietcombank Liquidity risk occurs when Vietcombank fails to fulfil its financial commitments with customers or counterparties due to unavailability
was incorporated and operates in Vietnam, with VND as its reporting currency. The major currency in which Vietcombank transacts of funds or liquidity.
is VND. Vietcombank’s loans to customers are mainly denominated in VND, USD and EUR. Some of Vietcombank’s other assets
and other liabilities are in currencies other than VND, USD and EUR. Vietcombank has set limits on currency positions based on its The maturity of assets and liabilities represents the remaining terms of these assets and liabilities from the end of the annual
internal risk management system and relevant statutory requirements stipulated by the SBV. Currency positions are monitored on a accounting period to the maturity date according to the underlying contractual agreements or term of issuance.
daily basis and hedging strategies used to ensure positions are maintained within established limits.
The following assumptions and conditions have been adopted in the preparation of Vietcombank’s assets and liabilities maturity
The followings are the major exchange rates analysis in the consolidated balance sheet:
Exchange rate as at
applied by Vietcombank at the reporting
31/12/2020 31/12/2019
date: • Balances with the State Banks are considered as current • The maturity of equity investments is considered to be over
USD/VND 23,125 23,170
accounts with maturity less than one month, including the five years as equity investments have no stated maturity; and
EUR/VND 28,499 26,213 compulsory deposits;
• Deposits and borrowings from other credit institutions,
The following table presents Vietcombank’s assets and liabilities denominated in foreign currencies that were translated into VND • The maturity of trading securities is considered as having deposits from customers, funds for finance, entrusted
as at 31 December 2020: maturity less than one month because they are held in the investments and entrusted loans, and valuable papers issued
short term for profit taking due to price differences; are determined based on either the nature of the loans,
VND USD EUR Other Total deposits and valuable papers issued or their contractual
currencies • The maturity of investment securities is based on maturity maturities. For example, current accounts of other credit
VND million VND million VND million VND million VND million dates of each securities established by the issuers of these institutions at Vietcombank and current accounts of
Assets financial instruments; Vietcombank at other credit institutions paid upon customers’
I Cash on hand, gold, silver and gemstones 12,835,047 1,679,121 291,650 289,576 15,095,394
demand are considered to be demand deposits, the maturity
• The maturities of balances with and loans to other credit of term deposits and borrowings is based on the contractual
II Balances with the State Banks 26,403,315 6,665,409 - 70,649 33,139,373
institutions and loans to customers are based on the maturity date. In practice, such items may be rolled over and
III Balances with and loans to other 179,587,462 50,949,040 6,548,150 31,884,993 268,969,645
contractual maturity date. The actual maturity may vary from maintained for longer period.
credit institutions – gross
the original contractual term when the contract is extended;
IV Trading securities – gross 1,991,861 - - - 1,991,861
VI Loans to customers – gross 745,709,871 93,147,396 305,708 625,286 839,788,261
VII Investment securities – gross 122,843,875 34,687,500 - - 157,531,375
VIII Capital contributions, long-term investments – gross 2,314,006 - - - 2,314,006
IX Fixed assets 8,495,602 34,637 - 9,123 8,539,362
X Other assets – gross 17,977,011 1,376,308 73,716 393,586 19,820,621
Total assets 1,118,158,050 188,539,411 7,219,224 33,273,213 1,347,189,898

Liabilities
I Amounts due to the Government and the State 81,150,116 32,002,989 2,888,308 28,719,415 144,760,828
Banks and deposits and borrowings from other
credit institutions
II Deposits from customers 877,210,294 148,426,680 3,790,259 2,686,334 1,032,113,567
III Derivative financial instruments and other financial (10,417,384) 10,706,304 5,807 (242,696) 52,031
liabilities
IV Funds for finance, entrusted investments and 14,679 - - - 14,679
entrusted loans
V Valuable papers issued 21,240,155 42 - - 21,240,197
VI Other liabilities 32,992,344 815,792 66,456 79,219 33,953,811
Total liabilities 1,002,190,204 191,951,807 6,750,830 31,242,272 1,232,135,113
Currency positions on balance sheet 115,967,846 (3,412,396) 468,394 2,030,941 115,054,785
214 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
215

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with

FINANCIAL STATEMENTS
Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014)
for the year ended 31 December 2020

The following table analyses the remaining terms to maturity of Vietcombank’s assets and liabilities as at 31 December 2020:

Overdue Not overdue

From over From over From over
Over Up to Up to 1 month to 3 months to 1 year to Over
3 months 3 months 1 month 3 months 12 months 5 years 5 years Total
VND million VND million VND million VND million VND million VND million VND million

Assets

I Cash on hand, gold, silver and gemstones - - 15,095,394 - - - - 15,095,394

II Balances with the State Banks - - 33,139,373 - - - - 33,139,373

III Balances with and loans to other credit institutions – gross - - 229,082,420 17,963,269 20,396,518 1,527,438 - 268,969,645

IV Trading securities – gross - - 1,991,861 - - - - 1,991,861

VI Loans to customers – gross 1,551,172 10,968,556 51,898,153 156,148,618 264,031,345 159,211,057 195,979,360 839,788,261

VII Investment securities – gross - - 2,246,636 10,422,908 40,018,635 92,318,026 12,525,170 157,531,375

VIII Capital contributions, long-term investments – gross - - - - - - 2,314,006 2,314,006

IX Fixed assets - - - - - - 8,539,362 8,539,362

X Other assets – gross - - - 19,820,621 - - - 19,820,621

Total assets 1,551,172 10,968,556 333,453,837 204,355,416 324,446,498 253,056,521 219,357,898 1,347,189,898

Liabilities

Amounts due to the Government and the State Banks and deposits and
I borrowings from other credit institutions - - 140,309,854 1,401,686 1,035,310 1,897,121 116,857 144,760,828

II Deposits from customers - - 268,036,045 200,376,333 303,749,974 56,088,901 203,862,314 1,032,113,567

III Derivative financial instruments and other financial liabilities - - - 52,031 - - - 52,031

IV Funds for finance, entrusted investments and entrusted loans - - - - - 14,679 - 14,679

V Valuable papers issued - - 905 - 2,068,300 8,792,450 10,378,542 21,240,197

VI Other liabilities - - 747,619 32,299,998 - - 906,194 33,953,811

Total liabilities - - 409,094,423 234,130,048 306,853,584 66,793,151 215,263,907 1,232,135,113

Net liquidity gap 1,551,172 10,968,556 (75,640,586) (29,774,632) 17,592,914 186,263,370 4,093,991 115,054,785
216 Vietcombank
Annual Report 2020
Chapter 6
Financial Statements
217

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with NOTES TO THE CONSOLIDATED Form B05/TCTD-HN
(Issued in accordance with

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Circular No. 49/2014/TT-NHNN Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014) Continued dated 31 December 2014)
for the year ended 31 December 2020 for the year ended 31 December 2020

45. CORRESPONDING FIGURES Impacts on the off-balance sheet items:

Certain corresponding figures in the consolidated balance sheet and the consolidated statement of income have been restated 31/12/2019 31/12/2019 Differences
according to the report of the State Audit of Vietnam as follows: VND million VND million VND million

Letters of credit 57,345,298 57,406,598 (61,300)

Impacts on the total assets:
Other commitments 53,115,849 53,276,574 (160,725)
31/12/2019 31/12/2019 Differences
VND million VND million VND million
Impacts on the consolidated statement of income:
Loans to customers 724,473,254 724,290,102 183,152
Loans to customers 734,706,891 734,706,891 - 31/12/2019 31/12/2019 Differences
Allowance for loans to customers (10,233,637) (10,416,789) 183,152 VND million VND million VND million

Fixed assets 6,706,503 6,710,443 (3,940) Interest and similar income 67,665,496 67,724,190 (58,694)
Tangible fixed assets 4,445,709 4,449,649 (3,940)
Interest and similar expenses (33,127,768) (33,146,840) 19,072
Cost 11,162,170 11,161,239 931
Accumulated depreciation (6,716,461) (6,711,590) (4,871) Net interest income 34,537,728 34,577,350 (39,622)

Other assets 21,807,494 21,891,872 (84,378)

Fee and commission income 9,005,109 9,002,507 2,602
Receivables 8,830,390 8,829,375 1,015
Accrued interest and fee receivables 8,064,808 8,150,156 (85,348) Net fee and commission income 4,309,446 4,306,844 2,602
Allowance for other assets (3,839) (3,794) (45)

Total impacts 94,834 Other income 3,427,795 3,427,765 30

Net other income 3,069,825 3,069,795 30

Impacts on the total liabilities and shareholders’ equity:

31/12/2019 31/12/2019 Differences

Total operating expenses (15,874,542) (15,817,575) (56,967)
VND million VND million VND million
Other liabilities 26,021,232 25,997,753 23,479 Net operating profit before allowance for
Accrued interest and fee payables 10,363,285 10,382,357 (19,072) credit losses 29,818,849 29,912,806 (93,957)
Other liabilities 15,635,924 15,593,373 42,551 Allowance for credit losses (6,607,278) (6,790,429) 183,151

Capital 42,428,821 42,428,820 1

Other capital 344,658 344,657 1 PROFIT BEFORE TAX 23,211,571 23,122,377 89,194

Retained profits 26,126,544 26,055,190 71,354

Previous year’s retained profits 12,188,552 12,188,554 (2) Current corporate income tax expenses (5,010,302) (4,992,464) (17,838)
Current year’s retained profits 13,937,992 13,866,636 71,356
Corporate income tax expenses (4,614,227) (4,596,389) (17,838)

Total impacts 94,834 NET PROFIT AFTER TAX 18,597,344 18,525,988 71,356
218 Vietcombank
Annual Report 2020

NOTES TO THE CONSOLIDATED Form B05/TCTD-HN

(Issued in accordance with

FINANCIAL STATEMENTS
Circular No. 49/2014/TT-NHNN
Continued dated 31 December 2014)
for the year ended 31 December 2020

46. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Board of Management of the Bank on 31 March 2021.

Hanoi, 31 March 2021

Prepared by: Approved by:

Ms. Nguyen Thi Thu Huong Mr. Le Hoang Tung Ms. Phung Nguyen Hai Yen

Deputy Director of Chief Accountant Deputy CEO

Financial and Accounting
Policy Department
JOINT STOCK COMMERCIAL BANK
FOR FOREIGN TRADE OF VIET NAM

Address: No. 198 Tran Quang Khai Str., Ly Thai To Ward,

Hoan Kiem Dist., Ha Noi, Vietnam
Tel: (+84) 24 3934 3137
Fax: (+84) 24 3826 9067
Swift: BFTV VNVX
Web: www.vietcombank.com.vn