BIDV's oriented strategy in 2011-2015 and vision to 2020

( 27/12/2011 )

BIDV is striving to become one of top 20 banks of high quality, efficiency and reputation in Southeast Asia in 2020.

BIDV's strategy in 2011-2015 and vision to 2020 is striving to one of top 20 banks of high quality, efficiency and reputation in Southeast Asia in 2020. Particularly, three following breakthrough initiatives will be focused: - Complete a professional, effective organisation model; professional processes; management rules and regulations; decentralization and delagation of power; as well as coordination between business units towards product development and customer orientation aligned with international best practices. - Develop high-quality human resources based on the use and development of experts with national and international qualification as a pivotal force to stable and sustainable development. - Increase capability for technology application in banking activities in order generate breakthrough in labour-saving, enhance the spread of science and technology to all business activities of BIDV. In the period 2011-2015 will focus BIDV completed 10 priority objectives as follows: (1) Develop and complete a model of organization and governance, improve executive competence at all levels of BIDV to create a solid foundation to grow into a leading financial group in Vietnam; (2) Focus on a comprehensive restructuring of business operations to improve efficiency and quality; proactive risk control and sustainable growth; (3) Maintain and develop the position and influence of BIDV on financial markets, strive and pioneer to perform the national currency policies effectively; (4) Enhance the capacity to manage risk; proactively apply and follow the best practices in consistency with business practices in Vietnam; (5) Develop retail banking activities, hold a large share of outstanding loans, raise capital and retail services; (6) Enhance the capacity to develop applications and technology in business operations and create breakthroughs to increase efficiency and labor productivity; (7) Rapidly develop high quality human resources, professional force, enhance labor productivity; (8) Strive to become a bank of the best credit ratings in Vietnam as evaluated by international credit rating organizations; (9) Structure to improve operations and business performance of its subsidiaries, associated companies, restructure investment portfolio focusing on core business; (10) Protect, maintain and promote the core values, build corporate culture and develop the BIDV brand. On the basis of common, prioritised goals and several main financial indicators setf out in the fiveyear strategic plan associated with business restructuring, BIDV has devised an action plan including eight main components which cover the entire business and executive management in BIDV, specifically:

- Credit activities: Diversifying credit structure by industries, sectors and customers, ensuring growth of scale associated with increase credit quality; - Fund mobilization: Adjusting funding structure by deposit-term and customer segments to ensure sustainable and effective funding sources through attracting long-term funds, funds raised from individuals, ODA and increasing international capital access; - Investment activities: Reducing and terminating investments in non-financial industry and noncore business activities, improve efficiency of long-term investments and investments in affiliated companies; - Treasury activities: Products diversification and increasing market share to assert BIDV leading position of capital and money market in Vietnam; - Development of retail banking activities: Increasing technological, financial and human resources for retail banking activities, diversification of products and services as well as improving quality of services provided; - Profit and efficiency: Diversification of income sources, ensure profitability ratios (ROA, ROE) to meet international level; - Human Resources - Organizational structure: Increasing expert workforce, establishing a solid foundation for a financial holding model; - Technology: Strengthening the system of modern information technology to support management and administration activities and development of banking products. Each component above comes with detailed solutions and roadmap for each year, as well as defined responsibility of each business unit to implement.