Dear valued customers, shareholders and partners,

The global economy in 2023 experienced complex and unpredictable developments, presenting many challenges beyond forecasts; financial, currency, and real estate markets carried significant risks; import-export activities declined, prolonged impacts from the Covid-19 pandemic, geopolitical tensions... Against that backdrop, Vietnam remained a bright spot in the overall economic landscape with some positive results: GDP growth reached 5.05%, among the highest levels in the region; the average consumer price index was kept under control at 3.25%; trade surplus reached USD28 billion. Among these collective successes, we must acknowledge the proactive and flexible monetary policy approach by the State Bank of Vietnam (SBV), alongside the synchronized implementation of measures to alleviate difficulties for businesses, promote economic growth, control inflation, and ensure the stability of the banking system. In 2023, SBV cut the policy rate four times by 0.5-2% to help improve the economy, thereby reducing the deposit and lending interest rates; managing exchange rates appropriately; refining regulations in banking activities, improving access to credit for enterprises and individuals, and achieving a credit growth rate for the entire industry of 13.78% in 2023.

Overcoming difficulties for rapid transformation

For BIDV, 2023 was of great significance as it marked the pivotal year of the 2021-2025 Business Development Strategy amidst numerous challenges. With unity, consensus, and concerted efforts, BIDV made 2023 a year of "rapid transformation". BIDV continued to affirm its leading position and role in effectively implementing monetary policies, contributed to maintaining the stability of the banking system; actively accompanied and supported enterprises and retail customers in line with the Government's and SBV's guidelines to promote economic recovery and development. By the end of 2023, BIDV's total assets reached over VND2.3 quadrillion, maintaining its position as the largest commercial bank in Vietnam; mobilized capital from organizations and individuals reached VND1.89 quadrillion, increasing by 16.5%, accounting for approximately 14% of the total deposit market share of the entire industry.

Loan portfolio reached VND1.75 quadrillion, growing by 16.66%, accounting for about 13% of the total credit outstanding of the entire economy, leading the market in credit market share. The credit structure shifted towards sustainability, with the proportion of retail, SME and FDI loans to total outstanding loans reaching 68.7%, a 1.2% increase compared to 2022. Credit quality was kept under controlled, with the non-performing loan ratio under Circular 11 at 1.12%. Business efficiency showed positive growth compared to the previous year, achieving and surpassing the set targets for 2023: (i) Consolidated net operating income reached VND47,932 billion. Consolidated profit before tax reached VND27,589 billion, a growth of 20.4%, surpassing the plan set by the General Meeting of Shareholders; (ii) Financial capacity improved, with charter capital reaching VND57,004 billion. After 10 years of listing on the stock market, BIDV's market capitalization ranked among the top market leaders, surpassing USD10 billion; (iii) Profitability indicators improved positively compared to the previous year: ROA reached 0.99%; ROE reached 19.36%; (iv) Provision was sufficient as per regulations, with a coverage ratio of bad debts reaching 183%, ensuring risk ratios complied with regulations and good practices. BIDV has also been one of the active contributors to the state budget with a contribution of over VND6,448 billion.

Empowering a green future

Recognizing the inevitable trend of long-term sustainable development, BIDV, as a leading financial institution in supporting the country's economic development, has steadfastly pursued the goal of becoming a "green bank" in the 2021-2025 business strategy and the vision towards 2030: (i) Issuing Resolutions to implement National Strategies for Green Growth and Climate Change Response, focusing on ESG practices through establishing an ESG Action Program, establishing specialized ESG management units according to international standards and practices, actively spreading the message of sustainable financial development to customers, partners...; (ii) Being the first joint-stock commercial bank in Vietnam to announce the "Sustainable Loan Framework" and professionalizing environmental and social risk management through the issuance of the "Environmental-Social Risk Management Framework", laying the foundation for providing customers with sustainable financial products according to international standards; (iii) Pioneering in attracting sustainable development capital, shifting towards a green economy, leading the market in green credit financing; being the first bank to successfully issue VND2.5 trillion green bonds according to international standards; (iv) Collaborating with various forums, seminars to share experiences and spread the message of sustainable development to customers, partners: Renewable Energy Conference 2023; Investment Opportunities in Renewable Energy Conference; Roundtable on Promoting Sustainable Energy Infrastructure Investment...

Pioneering the digital transformation journey

BIDV recognizes that technological innovation is a key factor in achieving sustainable development goals, enhancing competitive capacity, improving the quality of products and services, and meeting the increasing needs of customers. Alongside the digital transformation activities in the financial banking sector, in 2023, BIDV also made significant strides, affirming its pioneering position in the digital transformation journey: (i) Officially launching the Core Banking Profile system, integrating more than 100 applications into the core banking system, expecting comprehensive breakthroughs, especially in direction, business development strategy, product and service development mindset, organizational model, operational procedures... contributing to enhancing product and service quality, increasing customer satisfaction; (ii) Developing the Payment Hub system to plan and build an international-standard payment system - this is the largest and most complex technology project ever implemented using 100% internal resources of BIDV; (iii) Being the first bank to introduce the BIDV OPEN API system serving the open banking model with over 3,000 API-connected partners; 47 payment intermediaries, public services, the State Treasury, Social Insurance...

Fostering institutional development for agility and efficiency

By the end of 2023, BIDV also achieved many advancements in management and governance, institutional development, laying a solid foundation for implementing the 2021-2025 business strategy and component strategies, towards sustainable development: (i) Firmly adhering to the overall development goals and targets of the Strategy until 2025, vision until 2030 and 07 component strategies... regularly, meticulously evaluating and thereby proposing key solutions to ensure the correct implementation direction; (ii) Continuing to optimize the organizational structure at all levels: Re-establishing the Retail Banking Division and restructuring units within the Division; Establishing the Asset Valuation Center, the Hi-tech R&D Center in Ho Chi Minh City...; (iii) Strengthening strategic cooperation with multilateral institutions to enhance customer service capacity, system management capacity, especially premier and private customer services making a mark with the establishment of a strategic partnership with Edmond de Rothschild - a leading global financial institution in investment and asset management, bringing high-end financial services opportunities to premier and private customers on a global scale; (iv) Continuing institutional reforms towards intensifying administrative procedure reforms, streamlining business processes, enhancing efficiency, labor productivity across the entire system.

The aforementioned success of BIDV is the result of the concerted efforts of nearly 30,000 employees, who have tirelessly worked day and night. As a result, in 2023, BIDV continued to be highly regarded by organizations and communities, receiving prestigious awards: ranking 1,081st - up more than 500 places in the Forbes Global 2000 list of the largest public companies worldwide; the "Top 50 Best Listed Companies" award (Forbes Vietnam magazine); "Best Retail Bank in Vietnam" for nine consecutive years, "Best Private Banking Service in Vietnam", "Best International Credit Card in Vietnam", "Best FX Provider in Vietnam", and "Best Custodian Bank in Vietnam in 2023" (The Asian Banker); "Best SME Bank in Vietnam" award (Alpha Southeast Asia); the "Leading Digital Banking Solution Provider in Vietnam" award (Asiamoney); nine BIDV IT products winning the Sao Khue Award 2023; and among the Top 10 Excellent Brands of Vietnam 2023 (Vietnam Economic Times)...

Streamlining processes, transforming operations

2024 marks a year of acceleration and breakthrough, holding particular significance in achieving the five-year business strategy goals. BIDV has identified the guiding principle for the year as "Streamlining processes - Transforming operations". Accordingly, BIDV will comprehensively, cohesively, and substantively transform all activities, with a strong and fundamental shift starting from perception, goal-oriented planning, business model, to operational models oriented towards sustainable development (ESG). Firmly committed to eliminating redundancies, improving, and simplifying processes, cutting costs, enhancing labor productivity and customer service capabilities coupled with the application of technology through the internal management system (B.One). Focused measures to expand operational scale are linked with stringent credit quality control, improving asset quality, and restructuring the customer base... Enhancing operational efficiency is tied to transitioning income structure towards increasing non-interest income; enhancing managerial and risk management capabilities; focusing on implementing capital increase plans to enhance financial capacity and business development.

On behalf of the BIDV Board of Directors, I would like to extend sincere gratitude to all the leadership team and nearly 30,000 employees who have dedicated themselves to BIDV. In particular, I would like to express deep appreciation to our valued Customers, Investors, and Partners who have continuously placed trust in and accompanied BIDV throughout this journey. We look forward to continuing our cooperation and partnership with you, our esteemed customers, investors, and partners, to collectively create sustainable values, aiming towards a prosperous and thriving future!

Wishing you continued growth and success!

Yours sincerely,

ON BEHALF OF THE BOARD

CHAIRMAN

Phan Duc Tu