SUSTAINABLE
DEVELOPMENT
Creation of sustainable future
In 2023, the 28th session of the Conference of the Parties (COP28) to the UN Framework Convention on Climate Change took place from 30 November to 12 December 2023 in Dubai, United Arab Emirates (UAE). COP28 had the largest number of participants in history with delegations from nearly 200 countries and more than 97,000 other delegates. It is a continuation of COP27 which aims to actualize the ambitious commitments of Heads of State to promote cooperation between parties and push up global efforts to deal with climate and energy crises.
Following the target to achieve net zero emissions (“Net Zero”) by 2050 announced at COP26, Vietnam has 03 main actions: the Group of 77 (G77) summit on climate change, Discussion on “Accelerating coal power conversion”, the launch of the Resource Mobilization Plan to implement the Political Declaration on establishing the Just Energy Transition Partnership (JETP) and the launch of the Sustainable Development Project of One Million Hectares of High Quality and Low-Emission Rice.
In the field of banking and finance, SBV’s Circular guiding the implementation of environmental risk management in credit activities of credit institutions and foreign bank branches has been officially effective from June 1st, 2023 (Circular). The Circular helps create a common legal framework, requiring credit institutions to implement environmental risk management in credit granting activities. The promotion of environmental risk management in credit granting activities will raise awareness and responsibility of economic components for climate change, environmental protection factors toward green production and consumption. Once every individual raises their awareness, every enterprise when implementing investment projects will change its targets and actions on sustainable development. The legal framework for sustainable development of banking system in Vietnam is continuously built and improved as a motivation for the banking sector to promote sustainable development.
With a vision to become the number 1 bank in Vietnam, one of the 200 largest financial banking groups in the world, and one of the 700 largest listed companies in the world while making contribution to Vietnam’s sustainable development, Vietcombank aims to be a leader in environmental, social and corporate governance (ESG) through its Environmental and Social Management System (ESMS) and the Environmental and Social Risk Management System in line with the Sustainable Development Indicators of Vietnam according to VNSI Standards, step by step towards the Sustainable Development Goals on Environment, Social Governance (ESG) according to international standards GRI, TCFD.
With restless efforts, 2023 was the first year Vietcombank entered the Top 20 enterprises with the best Vietnam Sustainable Development Index. This success is a recognition of Vietcombank’s hard work to contribute to the efforts of Government of Vietnam in implementing sustainable development strategy, promoting transparency, responsibility and creating common value for the community. The increase in the total score of Vietcombank assessment categories in 2023 shows that the bank has proactively reviewed and gradually improved criteria on policies, management systems, environmental, social, corporate governance, information disclosure and transparency key performance indicators.
For many years, Vietcombank has always acted as a key capital funding channel for key national projects and key economic sectors such as oil and gas, electricity, aviation, etc. Vietcombank has been trusted by the Ministry of Finance to serve over 300 ODA – funded loan projects with a total value of nearly $ 30 billion, including important projects that are the driving force for the country’s socio-economic development in all fields such as infrastructure, transportation, healthcare, agriculture, etc.
In 2023, in the context of the economy facing many difficulties and challenges, weak capital absorption, with the active and flexible management direction, safe and effective growth orientation, Vietcombank has strived to overcome difficulties to achieve impressive business results, continuing to lead the banking system in terms of profit scale, asset quality and business performance.
By the end of 2023, Vietcombank continued to gain outstanding business performance with total asset value of more than VND 1.8 quadrillion, up 1.4% as of 2022; credit scale exceeding VND 1.28 quadrillion, up 10.8% as of 2022 and within credit growth ceiling assigned by the State Bank of Vietnam; total capital mobilization of VND 1.42 quadrillion, up 11.6% as of last year. Vietcombank continues to strictly control credit quality and promote bad debt settlement. The balance of bad debt on the balance sheet is VND 12,455 billion, bad debt ratio being 0.97% while the balance of risk provision fund is at VND 28,684 billion. The loan loss coverage ratio was 230%, which was the highest level among the big banks in Vietnam. Vietcombank posted a consolidated profit before tax of VND 41,244 billion, up 10% as of 2022. Vietcombank’s market capitalization reached nearly ~$19 billion – continuing to be the highest in the market and top 100 largest listed banks by market capitalization in 2023.
In addition, Vietcombank continued to maintain its position as one of the enterprises paying the most to the State Budget (with taxes and fees payable to the State Budget in 2023 of VND 11,648 billion).
Exhaust gases
With financial services as its core business, VCB causes no direct exhaust gases but indirect exhaust gases during its operation process.
Wastewater
With financial services as its core business, VCB causes no direct discharge of wastewater but domestic wastewater during its operation process.
Waste
With financial services as its core business, VCB discharges no hazardous wastes into surrounding areas, but domestic wastes during its operation process.
Noise
The equipment serving business activities is maintained and adjusted on a regular basis to provide minimal noise generation, a quiet and polite business environment for customers, and a civilized and comfortable work environment for employees.
Particularly at the offices of the Head Office (Vietcombank Tower building, 198 Tran Quang Khai, Hoan Kiem, Hanoi), periodic monitoring results show that noise always meets TCVN 5949-1998: TCVN – noise in the residential and public areas.
Clean water consumption
In 2023, the entire Vietcombank system continued to use purified water kept in glass bottles to reuse many times, ensuring environmental friendliness and saving water.
Electricity consumption
In 2023, Vietcombank continued to implement energy-saving measures in office buildings such as installing sensors for public area lights and toilet fans; install inverters for basement ventilation fans and fresh air supply fans; operate the system automatically by setting flexible and suitable parameters through the building’s automatic control system.
EMPLOYEES
With its strategic goal of 2025 and orientation to 2030 to top banking in developing and improving the quality of human resources, Vietcombank has been implementing modern technologies and approaches to human resources management, always focusing on creating a lean organizational structure; actively developing qualities in human resources that will enable them to be more productive and thus contribute more to organizational goal attainment, meeting the requirements of business activities, creating internal strengths, contributing to Vietcombank’s continuous development, maintaining its position as leading bank in Vietnam, and gradually enhance its appeal to multinational corporations in the world.
In 2023, Vietcombank was honored as a “Typical Enterprise for Employees” for the fourth consecutive time in the award ceremony held by the Ministry of Labor, War Invalids and Social Affairs, Vietnam General Confederation of Labor and Vietnam Chamber of Commerce and Industry (VCCI).
Non-discrimination, no use of child labor, forced labor
Vietcombank always ensures transparency without any discrimination of race, religion, gender. Established in May 2005, Vietcombank’s Committee for the Advancement of Women has performed well its role in advising the Board of Management in including gender into governance and administration, integrating gender equality issues in the development and implementation of Vietcombank’s policy documents, development strategies, programs and plans. As of December 31st, 2023, Vietcombank had 127 Departments for the Advancement of Women at the grassroots level.
Especially, Vietcombank pays a special attention to planning and appointment of female officers. Female officers in Vietcombank account for 60% of total employees in the whole system, of whom 56% of female officers at the Head Office are planned to become managers in the period of 2021-2026, equivalent to 893 people. This shows that leaders of Vietcombank always respect importance of gender equality in recruitment of female employees in the whole system of Vietcombank.
In addition, Vietcombank never use child labor and proactively comply with all labor regulations and laws.
BILLION
VND
BILLION
VND
HOUSES
In 2023, Vietcombank continued to conduct customer satisfaction survey to gradually improve its quality of products and services, bringing the best services to community and society. In addition, by upholding the tradition of “Green Bank for Community”, VCB has committed implementing social security programs worth VND 309 billion in 2023 as follows:
- Social security and charity activities account for ~40% of total commitment budget;
- Health, education and community development account for ~50% of total commitment budget;
- Other activities account for ~10% of total commitment budget.
Some outstanding activities include implementing the program “Vietcombank joins hands for the poor” 2023 and donating social insurance books and health insurance cards to people in difficult circumstances with a support amount of more than VND 18 billion; Funding the construction of medical station in Thuan Loc commune, Hau Loc district, Thanh Hoa province: VND 12 billion; Funding 200 houses for poor households in Soc Trang province, amount: VND 10 billion; Supporting the housing construction program for the poor in 27 border communes in Nghe An province: VND 10 billion; Funding the construction of 100 houses for poor households in Hung Yen province: VND 8 billion; Funding the construction of 100 houses for the poor in Giang Ly commune, Khanh Vinh district, Khanh Hoa province: VND 8 billion; Funding the construction of a medical station in An Thanh commune, Tu Ky district; Hai Duong Province: VND 5 billion; Funding for investment, repair and upgrading of An Tin Secondary School, Hoai An district, Binh Dinh province, amount: VND 5 billion; Funding the construction of Primary School B in Phuoc Long town, Phuoc Long district, Bac Lieu province: VND 10 billion, etc.
BILLION
With the goal toward a green bank and sustainable development for the community, Vietcombank’s social activities are increasingly developed with many practical and meaningful programs, contributing to the general development of the community and society.
For many years, Vetcombank has been implementing a series of social security activities, with active participation from the head office to branches and affiliated companies nationwide, in order to share difficulties and improve the quality the life of low-income areas across the country.
In 2023, Vietcombank spent more than VND 309 billion for social security. During the period 2019-2023, Vietcombank’s contribution to social security activities exceeded VND 1,936 billion.
Education and healthcare are two key areas that Vietcombank always pays special attention. Social welfare activities in these areas have been carried out by Vietcombank in many localities across the countries during the last time.
Not only sponsoring the construction of hospitals, medical stations, and providing essential equipment for medical examination and treatment, etc., Vietcombank has also always cared for their patients by supporting surgery costs or visiting patients with difficult circumstances. Activities such as helping to provide meals to patients in many hospitals are also regularly undertaken by Vietcombank’s union group. Voluntary blood donation activities are always enthusiastically participated by the youth union members, officers and employees of Vietcombank.
Besides all the programs that Vietcombank coordinated with local authorities and agencies, each Vietcombank’s staff also fully awares of daily contribution to many practical and meaningful programs to share the responsibility of building a more civilized and meaningful society.
MILLION
VND
MILLION
VND
| No. | Purpose of sponsorship | Realized value in 2023 (unit: VND million) |
|---|---|---|
| 1 | Education | 122.765 |
| 2 | Healthcare | 34.866 |
| 3 | Sponsoring the poor/Building, Constructing gratitude and solidarity houses, etc. | 126.741 |
| 4 | Giving gifts to Vietnamese Heroic Mothers, relatives of martyrs, work for people with meritorious services, etc. | 1.967 |
5 | Other fields | 22.894 |