Annual Report 2020
REPORT ON FINANCIAL
TOTAL ASSETS
Unit: VND billion
2019
1,222,814
2020
1,326,230
Growth rate
8.45%
TOTAL ASSETS
Unit: VND billion
2019
88,339
2020
90,936
Growth rate
2.93%
TOTAL ASSETS
Unit: VND billion
2019
0.72%
2020
0.62%
Reduce
3.89%
SHAREHOLDERS
TOTAL SHARES
24,515
Summary of subsidiaries’ performance and financial situation
VCBL
PROFIT BEFORE TAX
123.14
VND BILLION
VCBS
PROFIT BEFORE TAX
323.7
VND BILLION
VFC
PROFIT BEFORE TAX
16.2
VND BILLION
VCBR
PROFIT BEFORE TAX
6.92
VND BILLION
VCS LAOS
PROFIT BEFORE TAX
37.87
VND BILLION
VCBM
PROFIT BEFORE TAX
11.25
VND BILLION
VCBT
PROFIT BEFORE TAX
76.72
VND BILLION
General information of joint-ventures and associates
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.
RESTRUCTURED OUTSTANDING LOANS AT
DECEMBER 31ST, 2020
5,156
VND BILLION
TOTAL DEPOSIT FROM THE ECONOMIC
(INCLUDING VALUABLE PAPER ISSUANCE)
1,053,354
VND BILLION
INCREASING BY 10.9% COMPARED TO 2019
OUTSTANDING LOANS REACHED
845,128
VND BILLION
INCREASING 14% COMPARED TO 2019
PROFIT BEFORE TAX
23,050
VND BILLION
EQUIVALENT TO 2019
LOAN LOSS PROVISION WAS
19,243
VND BILLION
LOAN LOSS PROVISION
COVERAGE RATIO (368%)
Nearly VND 8,689 billion contributed to the State Budget, including VND 6.470 billion for tax.

Business operations:
The international payment and trade finance’s market share was 15.26% and turnover reached USD 83 billion.

Bank with largest market capitalization among all listed banks in Vietnam:
VCB’s market capitalization exceeded USD 15.7 USD, remaining leading position in the banking sector.

The consolidated Capital Adequacy Ratio (CAR) (under Circular No. 41) reached 9.56%, increasing 0.22% compared to 2019.
CONTRIBUTION TO THE STATE BUDGET
8,689
VND BILLION
PAYING TAX
6,470
VND BILLION
ASSESSMENT ON BUSINESS
PERFORMANCE IN 2020
  • Proactively implementing the government’s and SBV’s policies, supporting enterprises for the common goal of national economical development.
  • Drastically implementing Vietcombank development roadmap to 2020, and related action plans and sub-projects.
  • Implementing funding operation to match with credit growth and in accordance with strategic direction.
  • Simultaneously implementing fundamental solutions to improve credit quality, maintain the position as the bank with best credit quality in Vietnam.
  • Tightening credit quality control and promoting recovery of nonperforming/written-off loans.
  • Proactively implementing the government’s and SBV’s policies, supporting enterprises for the common goal of national economical development.
  • Drastically implementing Vietcombank development roadmap to 2020, and related action plans and sub-projects.
  • Implementing funding operation to match with credit growth and in accordance with strategic direction.
  • Simultaneously implementing fundamental solutions to improve credit quality, maintain the position as the bank with best credit quality in Vietnam.
  • Tightening credit quality control and promoting recovery of nonperforming/written-off loans.
BUSINESS ORIENTATION IN 2021
The global economy is forecasted to sharply rebound in 2021, the global GDP growth is forecasted at 6%. However, the appearance of new SARS-CoV-2 virus variants may slow down the growth recovery process. Moreover, the geopolitical instabili and competition among large economies are increased sharply, the climate change is expected to 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 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.

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, Sustainability” in action and the viewpoint of “Responsibility - Action - Creativity”in management mindset; continue to implement Five strategic breakthroughs and Three central objectives, towards innovating the growth model in depth, restructuring business operations, improving labor productivity and striving for sustainable growth.
3 OPERATIONAL RESTRUCTURING OBJECTIVES
01
Ensuring reasonable credit growth along with credith growth along with credit efficiency and sustainability.
02
Increasing the proportion of non-credit income with a focus on services and capital investment.
03
Restructuring funding sources and liquidity options to boost business efficiency.
ASSESSMENT BY
BOARD OF DIRECTORS
With the motto of “Transformation - Safety - Efficiency - Sustainability” in management and the viewpoint of “Responsibility - Action - Creativity”, with the aim of innovating the growth model in depth, operational restructuring for sustainable and efficient growth, the Board of Directors drastically directed, and regulated the Bank’s 2020 business direction promptly and flexibly in the context of the business environment under many adverse impacts from Covid-19 pandemic.

With great effort, responsibility and determination, Vietcombank successfully completed the following goals: effectively preventing Covid-19 pandemic, sharing difficulties with customers and developing sustainable business. In 2020, VCB achieved many impressive results, exceeding the targets assigned by the General Meeting of Shareholders, continuing to lead the banking system in terms of profit scale and asset quality.