MILESTONES

05/09/2019 12:00 AM

​- Organization of the predecessor of Vietcombank

Vietcombank was formerly known as the Foreign Exchange Management Department under the Vietnam National Bank which was established on January 20, 1955 in accordance with Decree No. 443/TTg by the Prime Minister. In 1961, the Foreign Exchange Management Department was renamed to the Agency of Foreign Exchange under the State Bank of Vietnam in accordance with Decree No. 171/CP dated on October 26, 1961 by the Government Council. The agency was not only a department of the State Bank of Vietnam tasked with the function of advising and studying management policies of the State in the field of foreign exchange, but also conducting the business operations of a foreign trade commercial bank.

- In the period of 1963 - 1975: Established in the war and actively participating in the struggle to unify the country.

On April 1, 1963, Vietcombank officially went into operation in accordance with Decree No. 115/CP dated October 30, 1962 issued by the Government Council on the basis of separation from the Department of Foreign Exchange under the State Bank of South Vietnam. During the period of 1963 – 1975 (fierce revolution against America), Vietcombank successfully assumed its great historical mission as the only foreign trade commercial bank in Vietnam, to contribute to building and developing the economy of the North, whilst supporting the Southern battlefield.

+ Special Foreign Currency Fund

To receive foreign currency aid, in April 1965, under the directive of the Politburo, the State Bank of Vietnam established an organization dedicated to special payments under nickname as B29 at Vietcombank. Established with a very compacted organization structure, B29's operation was single-line and confidential, under the direct control of the Politburo and the Standing Central Bureau of the South. With more than 10 officials operating in 10 years, the Special Foreign Currency Fund B29 was involved in the transport and transfer of a large amount of foreign currency, supporting the Southern battlefield.

- In the period of 1976 - 1990: Significantly growing in difficult times

During this period, the Bank became the only foreign trade bank in Vietnam in all 3 aspects: holding the country's foreign exchange, international payments, providing import and export credit. After 1975, the Bank took over the banking system of the old regime, participated in negotiations for the reduction or deferment of the State's debts in the Paris Club, London. When the country was beleaguered by economic embargoes, Vietcombank continued to receive aid, search for foreign currency loans, as well as boosting international payments to serve the restoration of the country after the war and socialist construction.

- In the period of 1991 - 2007: Taking firm steps in the integration and renewal period

Vietcombank was officially transformed from a specialized foreign trade bank to a State commercial bank with its own nationwide network and worldwide correspondent banking relationships. Vietcombank is also the first bank to implement and complete the Restructuring scheme (2000 - 2005) with the focus on improving the capacity in finance, administration, management, technological innovation, development of modern banking products and services, contributing to economic stability and development, and building a reputation with the financial community in the local area and throughout the world.

- In the period of 2007 - 2013: Pioneering the trend of equitization, becoming the leading bank in Vietnam

In 2007, Vietcombank became the pioneer in the banking sector in terms of equitization and successfully implemented the plan of issuing shares for the first time to the public. As of June 2, 2008, Vietcombank officially operated under the model of joint-stock commercial bank. On June 30, 2009, Vietcombank officially listed its shares in Ho Chi Minh City Stock Exchange. In September 2011, Vietcombank entered into a Strategic Shareholder Agreement with Mizuho Corporate Bank.

On April 1, 2013, Vietcombank celebrated its 50th anniversary of establishment (1963-2013) and received the First Class Independence Medal awarded by the Party and State. On this special occasion, Vietcombank also officially announced its new brand identity and the message/promise of the brand, "Together for the future", affirming the commitment of Vietcombank to be always willing to accompany customers on their path towards the future, confirming the comprehensive reform of Vietcombank in both image and operational quality  and to continue its sustainable development, maintaining its position as the leading bank in the country, as well as significantly growing in the international area.

Period 2013 – 2018: Breakthrough Operation, Peak Conquest

Vietcombank had strong and comprehensive changes in the period of 5 years from 2013 to 2018. Impressive results were recorded in its business operations with the scales of total asset, capital mobilization and credit increasing by 2.5; 2.9 and 2.3 times respectively. In 2018, Vietcombank accelerated in terms of assets and got breakthrough in its profit scale such as its total assets continued to exceed VND one quadrillion , its profit reached VND 18,269 billion, increasing by 61.1%, ranked the 1st grade in respect of profit scale and tax payment to the National Budget in the Banking industry. Vietcombank is the first commercial bank in Vietnam to reduce the actual bad debt rate to less than 1%, which is classified according to the International standards. Vietcombank’s strategic planning, directions and administrative management had undergone a dramatic transformation to respond to and anticipate market changes and international integration trends. Domestic and foreign network systems have constantly been being expanded; customer services have been changed intensively; organizational model has been standardized, human resource management has significant innovations. Vietcombank initially implements its comprehensive risk management in accordance with the international standards through the performance of Basel Capital Accord. It is the first Vietnamese bank to be officially recognized by the State Bank of Vietnam in satisfying safety standards in accordance with Basel II Accord and to be applied Circular No. 41 one year earlier than required. Vietcombank has also increased the investment in information technology infrastructure modernization and comprehensively implemented transformation projects in order to gradually apply the best standards and practices. At the same time, Vietcombank had become the largest equity bank in Vietnam by the end of 2018.

Remarkably, 2018 marked the 55th year in the development history of Vietcombank, a proud journey, in which its leading position in banking sector has always been affirmed. Acknowledged for the bank’s achievements, Vietcombank was awarded the Labour Order, First class Labor by the President of Vietnam on the occasion of the 55th anniversary. In congratulatory messages to all Vietcombank staff on this occasion, the General Secretary of the Central Committee of the Communist Party of Vietnam Nguyen Phu Trong, Prime Minister Nguyen Xuan Phuc, and Governor of the State Bank of Vietnam Le Minh Hung expressed their trust in Vietcombank to become the No.1 bank in Vietnam and achieve the goal to be a calibered bank both regionally and worldwide.

In response to the trust and expectations of the Party, Government, State Bank of Vietnam, shareholders, investors and millions of customers, Vietcombank’s management and more than 22,000 employees in the entire system are committed to working with the highest level responsibility and determination to attain the strategic goal of becoming one of 100 biggest banks in Asia and one of 300 largest financial institution in the world, managed by best practices in compliance with guidelines approved by the State Bank of Vietnam.