After 58 years of development, Vietcombank has increasingly affirmed and strengthened its leadership in the Vietnamese banking industry. As the first lender in Vietnam to make a profit of US$1 billion, Vietcombank is one of the world’s 200 most profitable banks and financial institutions. It is also the first bank to have a commercial presence in the United States and was approved by the State Bank of Vietnam to open a branch in Australia. In the Vietcombank system, Vietcombank Dak Nong Branch was established on October 6, 2020, becoming the 114th branch in the country and the 7th in the Central Highlands.

Mr. Nguyen Le Minh Thanh, Director of Vietcombank Dak Nong, said, despite being a new lender, Vietcombank Dak Nong has gradually affirmed its position in Dak Nong province. As of late May 2021, its total assets valued VND1,100 billion; capital source at VND300 billion; and outstanding loan at VND800 billion, ranked 7th in market share in the region. It had more than 1,400 personal customers and nearly 50 corporate customers in the province who are provided loans and modern banking services. Its business performance has gradually sustained.

Vietcombank is known to have a lot of convenient products and services. So, with the establishment of Vietcombank Dak Nong Branch, what do you think about the banks companionship with the provinces economic development?

The Resolution of the Dong Nai Party Congress states that the provinces gross regional domestic product (GRDP) will expand 7.5 - 8% annually in the 2020 - 2025 period, increase per capita GRDP to VND70 million by 2025, raise total investment budget by over 15% annually, collect budget revenue of over VND18.4 trillion an average yearly growth 12%. The role of the local banking industry is vividly expressed.

As a state-owned commercial bank, Vietcombank Dak Nong is committed to mobilizing all available resources for preferential credit packages for sectors prioritized for development by the province and providing conducive conditions for local corporate and personal customers to access the credit fund in the best fashion. In 2021, the branch's outstanding loan is forecast at VND1,500 billion. In addition, Vietcombank Dak Nong provides a wide range of advanced banking products and services enabling customers to have perfect experiences such as VCB Digibank digital banking service, a move to support modern cashless payment. Thus, the branch has given a helping hand to people and businesses to expand business investment, create more jobs, improve incomes and boost local socioeconomic development. Although it has been in the province for a short time, Vietcombank Dak Nong has joined many social security activities like sponsoring VND2 billion for the Second Dak Nong Brocade Culture Festival and funding VND1 billion for health insurance offers to poor people in Dak Nong.

Economic fluctuations, natural disasters and epidemics have adversely affected business performance of institutional and individual customers, hence increasing risk exposure to the banking system. What solutions has the branch taken against this backdrop?

Economic fluctuations, natural disasters and especially the recent outbreak of the Covid-19 epidemic have increased risks to the bank. For example, operations may be disrupted if there is any infection. Credit growth will subsequently slow down, performance will weaken and nonperforming loan risks will increase. To mitigate risks, the branch has actively adopted following solutions:

First of all, the branch informed all employees to strictly follow instructions on epidemic prevention by health authorities, Vietcombank Head Office and local government. Second, it has introduced modern VCB Digibank digital banking services to customers to reduce physical presence for cash transactions; further digitized documents, procedures, workflows, internal transaction methods, meetings and customer contact. Third, while customers demand for business development investment is declining, this is a good opportunity for the branch to review loans, assess and adjust loan portfolios for a better risk appetite, to be safer and more sustainable.

To help people and businesses negatively affected by the Covid-19 epidemic, the banking industry has reportedly applied many policies such as reducing lending interest rates and restructuring debt portfolios for people and businesses. How has that policy been carried out by Vietcombank?

Vietcombank has actively taken the lead in applying policies announced by the Government and the State Bank of Vietnam for the common goal of stabilizing socioeconomic performance and joining hands with the community to fight the Covid-19 epidemic. In 2020, Vietcombank reduced interest rates five times to support businesses and people affected by the Covid-19 pandemic and floods in 10 central provinces, resulting in a shared profit of over VND3,700 billion. For its part, Vietcombank Dak Nong, in addition to reviewing and assessing Covid-19 epidemic impacts to provide overall support solutions for customers, issued internal documents to direct and guide the implementation of general regulations across the system:

(1) Establishing and publicly announcing a hotline to receive feedbacks and work together to deal with difficulties faced by customers during the pandemic time.

(2) Lowering/subsidizing interest rates: From December 15, 2020 to March 15, 2021, Vietcombank applied the Customer Thanking Program in a bid to assist customers to overcome the tough time in 2020. However, given the complicated development of the Covid-19 epidemic, Vietcombank continued to support corporate and individual customers to deal with the pandemic by slashing interest rates for all current outstanding loans and new loans in three months from February 22 to May 22, 2021: (i) Reducing 10% of interest payable to the bank for customers seriously affected by the Covid-19 epidemic; (ii) Reducing by up to 5% interest payable to the bank for remaining customers affected by the Covid-19 epidemic; (iii) reducing the interest rate by 0.2% for personal customers who borrowed for business affected by the pandemic. Vietcombank Dak Nong applied this policy to nearly 200 customers who borrowed roughly VND200 billion.

(3) Service tariff reduction: Vietcombank reduced by nearly 10% the 24/7 e-banking transaction fee and domestic money transfer fee from April 1 to December 31, 2020. In addition, it exempted fees for individuals and organizations transferring money in support of the Covid-19 epidemic prevention.

(4) Launching new loan packages: From January 23, 2020 to date, Vietcombank has introduced many new soft loan packages to businesses and individuals. Especially, the new loan program of VND30,000 billion is applied as low interest rate as from only 4.5% per annum. So far, Vietcombank Dak Nong has lent nearly VND800 billion, significantly supporting customers to maintain business operations affected by the Covid-19 epidemic.

(5) Debt restructuring: Vietcombank has accompanied customers to review and evaluate business plans, financial balance, and cash flows to give advice, restructure debt portfolios and keep their debt groups unchanged. Vietcombanks total outstanding loans lent to borrowers affected by the Covid-19 epidemic are over VND50 trillion and over VND10 trillion has already restructured.

(6) Support and contribution: Vietcombank Dak Nong employees donated their one-day salary and joined many other meaningful activities to support and provide timely aid to the fight against the epidemic across the Vietcombank system. The fund raised for epidemic prevention bodies is nearly VND70 billion.

Dak Nong economy is shifting towards more sustainable, better growth. In order to grow with the province's economy, how will the branch continue to make efforts in the coming time?

To further go with the government and people of Dak Nong province in the coming time, Vietcombank Dak Nong needs to strive for the following key tasks to 2025: (i) Investing in building spacious facilities and opening 2-3 new transaction offices in populous areas to expand the business network and improve access to banking services for the people (ii) Becoming the fourth largest lender by assets in the region; (iii) Enhancing access to loans in a bid to capture at least 10% of the market share (iv) Becoming the third largest lender in terms of digital banking services in the region through the development of VCB Digital Bank (v) Increasing the share of service revenue to at least 35-40%; (vi) All employees will continuously enhance their knowledge, skills, professionalism and culture to deliver better service to customers and assert its position in the region.

Thank you very much!