IV. THE BOARD OF DIRECTORS' EVALUATION OF THE PERFORMANCE OF THE BANK

Transcription

1 ANNUAL REPORT

2 ANNUAL REPORT 2014

3 TABLE OF CONTENTS MESSAGE OF THE BOARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER I. CORPORATE INFORMATION General information 2.History and development 3.Organization and management structure 4.Development orientations 5.Risks II. BUSINESS PERFORMANCE IN Operations financial conditions and business results of Organization and personnel 3.Investment in Debt Management and Asset Exploitation Company (Eximbank AMC) 4.Number of shares and shareholding structure of Eximbank III. REPORTS AND ASSESSMENTS OF THE BOARD OF MANAGEMENT Evaluation of business performance 2. Financial conditions 3. Improvements in organization structure policy and management 4. Business plan in 2015 IV. THE BOARD OF DIRECTORS' EVALUATION OF THE PERFORMANCE OF THE BANK The Board of Directors' evaluation of operational aspects of the Bank 2. The Board of Directors' evaluation of the performance of the Board of Management 3. Plans and orientations of the Board of Directors V. CORPORATE GOVERNANCE The Board of Directors 2. The Board of Supervisors 3. Transactions remunerations and interests of the Board of Directors the Board of Supervisors and the Board of Management VI. FINANCIAL STATEMENTS Consolidated financial statements 2. Separate financial statements 3. Opinions of internal auditors MILESTONES IN 2014 AWARDS COMMUNITY-ORIENTED ACTIVITIES OPERATING NETWORK

4 MESSAGE OF THE BOARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER

5 MESSAGE OF THE BOARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER On behalf of the Board of Directors Board of Management and the entire staff and officers of Eximbank we would like to extend our sincerest thanks and best wishes to our valued shareholders customers State Bank of Vietnam local and foreign partners who have provided great support to our Bank during the last year. We do look forward to continuing to receive your kind support accompaniment sharing and feedbacks for Eximbank to further develop and better in the forthcoming time. In spite of difficulties of the business environment last year the Board of Directors and Board of Management together with the whole staff and officers of Eximbank have struggled to overcome the obstacles sustain and stabilize the Bank's business activities with total assets reaching billion VND fulfilling 95% of the plan; funds raised from economic entities and individuals reaching billion VND up 22.7% compared to end of 2013 and fulfilling 101% of the plan; total credit exposure achieving billion VND up 10.7% compared to end of 2013 and completing 100.7% of the plan; while NPL ratio being controlled at 2.46%. In addition Eximbank has also increased its risk provisioning to facilitate sustainable developments of the Bank. Although the results did not come up to expectations Eximbank has made certain achievements compared to the common situation of the banking industry. The Bank has applied flexible management mechanism to keep in line with business environments by using such solutions as restructuring the organization model from Head Office to branches streamlining operating apparatus focusing resources on sales forces; strengthening operating quality of transaction offices to enhance competitiveness; increasing retail sales; improving payment service activities; and promoting the disposal of bad loans and sale of loans to VAMC etc. With all the efforts and endeavours in the recent time Eximbank was awarded Best Bank in Vietnam 2014 by EuroMoney magazine; and continuously listed as Top 1000 World Banks 2014 by The Banker a leading magazine in financial sector etc. 5

6 MESSAGE OF THE BOARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER (cont.) Apart from business development Eximbank has kept sharing difficulties with and contributing to bring joys to the community and society; specifically facilitating poor patients in Ho Chi Minh City to receive health insurance cards for free medical treatment; supporting fishermen Vietnam marine police under For beloved Truong Sa for the Country's front line fund; supporting with scholarships for difficulty surmounting; supporting the Youth Union of Ho Chi Minh City to implement social programs; supporting the Elderly Care Fund of Ho Chi Minh City; supporting the construction and renovation of schools and kindergartens for children in remote areas. Turning to 2015 Eximbank aims at continuing to perfect its business model enhance financial capabilities develop infrastructure - information technology improve the quality of senior managers of branches transaction offices and staff focus on customer service quality enhancement by improving service quality attitude and customer care policy to carry out the proposed targets being: total assets to reach billion VND up 12% compared to 2014; fund mobilization to reach billion VND up 24% compared to 2014; credit exposure to reach billion VND up 11% compared to 2014; profit before tax to reach 1000 billion VND; and NPL ratio to be kept under 3%. With the accomplishments in 2014 and positive signals of the world's and Vietnam's economic progresses Eximbank will keep on consolidating and strengthening its position in the domestic and international financial markets. The Board of Directors Board of Management and all staff and officers in the network will make the best efforts to fulfill the plan as set out for 2015 contributing to the common growth of the banking industry as well as the economy. 6

7 MESSAGE OF THE BOARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER (cont.) On behalf of the Board of Directors Board of Management and the entire staff and officers of Eximbank we would like to extend our sincerest thanks and best wishes to our valued shareholders customers State Bank of Vietnam local and foreign partners who have provided great support to our Bank during the last year. We do look forward to continuing to receive your kind support accompaniment sharing and feedbacks for Eximbank to further develop and better in the forthcoming time. FOR THE BOARD OF DIRECTORS CHAIRMAN FOR THE BOARD OF MANAGEMENT CHIEF EXECUTIVE OFFICER LE HUNG DUNG PHAM HUU PHU 7

8 I. CORPORATE INFORMATION

9 I.1.General Information - Registered Vietnamese name Ngân hàng thương mại cổ phần Xuất nhập khẩu Việt Nam - Registered English name Vietnam Export Import Commercial Joint Stock Bank (Vietnam Eximbank) - Chairman of the Board of Directors Mr. Le Hung Dung - Chief Executive Officer Mr. Pham Huu Phu - Registered Head Office address Level 8 Suite No. L VINCOM CENTER 72 Le Thanh Ton Street Ben Nghe Ward District 1 Ho Chi Minh City Vietnam - Office address Level 8 Suite No. L VINCOM CENTER 72 Le Thanh Ton Street Ben Nghe Ward District 1 Ho Chi Minh City Vietnam Tel: (84.8) Fax: (84.8) Website: - Regulator The State Bank of Vietnam - Auditor ERNST & YOUNG Vietnam Limited Address: The 28 th Floor Bitexco Financial Tower 2 Hai Trieu Street District 1 Ho Chi Minh City Vietnam - Date of first registration 23/07/ Date of registration for the 24 th modification 14/11/ Authority of first registration Department of Planning and Investment of Ho Chi Minh City - Business Operation License 11/NH-GP dated 06 th April Tax registration certificate number Stock information Ho Chi Minh City Stock Exchange - Stock name Vietnam Export Import Commercial Joint Stock Bank (Eximbank) - Stock code: EIB 9

10 I.2. History and development I.2.1. History Vietnam Export Import Commercial Joint Stock Bank is one of the first commercial joint stock banks of Vietnam being established on 24th May 1989 under Decision No. 140/CT by the Chairman of the Council of Ministers with the original name being Vietnam Export Import Bank. Vietnam Export Import Bank officially came into operation on 17 th January 1990 and received its License of Operation No. 11/NH-GP dated 06th April 1992 by the Governor of the State Bank of Vietnam allowing the Bank to operate for a term of 50 years with the registered charter capital of 50 billion VND (equivalent to 12.5 million USD at the time of establishment) under the new name being Vietnam Export Import Commercial Joint Stock Bank (or Eximbank in short). I.2.2. Business lines Eximbank's major business lines include: short medium and long term fund mobilization in form of savings deposits payment deposits certificates of deposit; receipt of funds entrusted for investment; receipt of funds from domestic and foreign credit institutions; short medium and long term lending; discount of commercial papers State bonds and valuable papers; foreign exchange trading; international settlements; investment in securities and valuable papers; payment services and issuance of domestic cards international Visa MasterCard and Visa Debit cards; cash services; package financial services for overseas study; financial advisory services; corporate bond trading; and other banking services etc. I.2.3. Business locations Eximbank's Head Office is located at Level 8 Suite No. L Vincom Center 72 Le Thanh Ton Street Ben Nghe Ward District 1 Ho Chi Minh City Vietnam. At the end of 2014 Eximbank's network comprises of 208 banking units at cities and provinces nationwide including: 44 Branches 163 Transaction Offices and 1 Savings Fund. Currently Eximbank's transaction network has covered 22 provinces and cities nationwide including Hanoi Hai Phong Nghe An Quang Ninh Quang Ngai Quang Nam Da Nang Hue Nha Trang Lam Dong Dac Lac Binh Phuoc Binh Duong Dong Nai Ba Ria Vung Tau Ho Chi Minh City Long An An Giang Tien Giang Can Tho Bac Lieu and Kien Giang. 10

11 I.2.4. Listing Eximbank obtained the approval from Ho Chi Minh City Stock Exchange (HOSE) to list its shares from 20 th October 2009 under Decision No.128/QD-SGDHCM. Stock name: Stock of Vietnam Export Import Commercial Joint Stock Bank Stock type: Common Par value: VND10000 per share Total listed volumes: shares Total listed value: VND (as per par value) I.2.5. Prominent events through years of operation 1991 & 1992: Entrusted by the State Bank of Vietnam and the Ministry of Finance to carry out part of the Swedish non-refundable finance program extended to Vietnamese entities having demands for importing goods from Sweden. 1993: Join the Electronic Clearing System of the State Bank of Vietnam. 1995: Join SWIFT (Society for Worldwide Interbank Financial Telecommunication); Selected as 1 among 6 Vietnamese banks to participate in the Bank Modernization Project organized by the State Bank of Vietnam and funded by the World Bank. 1997: Become a principal member of MasterCard International. 1998: Become an official member of Visa International. 2003: Launch the online Intra-bank Payment System in the whole network. 2005: Be the first bank in Vietnam to issue international Visa Debit cards. 2007: Sign strategic partnership agreements with 17 domestic and foreign investors especially the strategic alliance agreement with Sumitomo Mitsui Banking Corporation (SMBC) of Japan. Exchange. 2008: Increase the charter capital to 7220 billion VND. 2009: Raise the charter capital to 8800 billion VND and officially listed on Ho Chi Minh City Stock 2010: Increase the charter capital to billion VND. 11

12 2011: Increase the charter capital to billion VND; Selected by The Banker magazine to appear in its Top 1000 World Banks and Top 25 Banks by Asset Growth in : Presented Best Domestic Bank in Vietnam 2012 award by the AsiaMoney magazine; Continue to be ranked in the Top 1000 World Banks 2012 by The Banker magazine; Officially launch the new set of brand identity 2013: Awarded by The Asian Banker Magazine with Best Managed Bank in Vietnam 2013 ; by EuroMoney Magazine with Best Bank in Vietnam 2013 ; and continue to be ranked in the Top 1000 World Banks 2013 by The Banker magazine. Eximbank is one of the first banks becoming member to issue JCB-branded international card in Vietnam. 2014: Selected by The Banker magazine to appear in its Top 1000 World Banks in Eximbank is honoured to be ranked in the Top World Banks for many consecutive years; Awarded by EuroMoney Magazine with Best Bank in Vietnam Bestowed Excellence in International Payments award by The Bank of New York Mellon. Bestowed Top 100 Virtue-Talented Managers and Top 100 Most Outstanding Enterprises awards by Vietnam Enterprise Association. Presented Best award by Ho Chi Minh City Stock Exchange and Securities Investment Magazine. This is the fourth consecutive year Eximbank's Annual Report wins high position in the polls. Selected as Strong and Sustainable Enterprises 2014 by Businessmen Cultural Center. 12

13 Financial highlights over the years CONSOLIDATED TOTAL ASSETS (BILLION VND) CHARTER CAPITAL (BILLION VND) CONSOLIDATED TOTAL MOBILIZED FUNDS (BILLION VND) CONSOLIDATED TOTAL LOAN BALANCE (BILLION VND) CONSOLIDATED PROFIT BEFORE TAX (BILLION VND) ROE (%) 13

14 I.3. Organization model and management structure I.3.1 Organization model GENERAL MEETING OF SHAREHOLDERS BOARD OF SUPERVISORS (BOARD OF INTERNAL AUDITORS) OFFICE OF THE BOARD OF DIRECTORS BOARD OF DIRECTORS COUNCILS/COMMITTEES EXIMBANK CONSTRUCTION WORK PROJECT MANAGEMENT UNIT (SPECIALIZED UNIT) CHIEF EXECUTIVE OFFICER VICE PRESIDENTS TRAINING CENTER COUNCILS/COMMITTEES Alliance Dept. Chief Accountant Corporate Banking Division Corporate Customers Dept. International Settlement Dept. Corporate Planning Dept. Fund Management Dept. Retail Banking Center Sales Management Dept. Sales Support Dept. International Relations Dept. Marketing Dept. Quality Management Dept. Business Development Division Retail Banking Division Individual Customer Service Dept. Market Risk Management Dept. Operational Risk Management Dept. Credit Risk Management Dept. Legal & Compliance Dept. General Accounting Dept. NPL Analysis Dept. Assets Liabilities Settlement Dept. Dispute Resolution Dept. Area Debt Settlement Team Operational Supervision Division Debt Settlement Center Card Center Treasury Division Credit Center Card Sales Promotion Dept. Card Business Management Dept. Gold Trading Center Foreign Currency Trading Dept. Financial Investment Dept. Fund Trading Dept. Credit Appraisal Dept. Credit Analysis Dept. Credit Support Section Network Expansion & Support Dept. Administration Dept. Eximbank Representative Office in Hanoi Cash Dept. Human Resources Management Dept Cash-Administration Division Human Resources Division Valuation Center Information Technology Division Asset Valuation Dept. Regional Valuation Section Data Infrastructure & Security Management Center IT Product- Service Maintenance & Development Center IT Product-Service Project Research Center Electronic Banking Dept. REGIONS Regional Offices BRANCHES TRANSACTION OFFICES/POINTS 14

15 I.3.2. Management structure The Board of Directors Mr. Le Hung Dung Mr. Ha Thanh Hung Mr. Naoki Nishizawa Chairman Standing Vice Chairman Vice Chairman Mr. Dang Phuoc Dua Vice Chairman Mr. Pham Huu Phu Mr. Nguyen Quang Thong Mr. Hoang Tuan Khai Mr. Dang Anh Mai Vice Chairman Vice Chairman Vice Chairman Member Mr. Lawrence Justin Wolfe Independent member The Board of Supervisors Mr. Dang Huu Tien Mr. Nguyen Hong Long Mr. Tran Le Quyet Mrs. Nguyen Thi Phung Chief Supervisor Vice Chief Supervisor Vice Chief Supervisor Member The Management Mr. Pham Huu Phu Mr. Tran Tan Loc Mr. Nguyen Quoc Huong Mr. Dao Hong Chau Mrs. Dinh Thi Thu Thao Mr. Kenji Kuroki Mrs. Van Thai Bao Nhi Mr. Mitsuaki Shiogo Mr. Le Anh Tu Mrs. Bui Do Bich Van Mr. Nguyen Ho Hoang Vu Mr. Le Hai Lam Mr. Nguyen Quang Triet Chief Executive Officer Standing Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President 15

16 Mr. Cao Xuan Lanh Mr. Nguyen Van Hao Mr. Nguyen Thuc Vinh Mr. Nguyen Ngoc Ha Vice President Vice President Vice President Chief Accountant I.3.3. Subsidiaries and Affiliates Eximbank has one subsidiary which is Debt Management and Asset Exploitation One-member Limited Liability Company with the registered charter capital of 1700 billion VND located at Building No. 24B Truong Dinh Ward 6 District 3 Ho Chi Minh City. The actual paid-up capital as of 31 December 2014 is 955 billion VND. In 2014 Eximbank liquidated its entire investment in Exim Real Estates Joint Stock Company (Eximland). Therefore as of 31 December 2014 Eximbank had only 1 associate being Viet Dragon Securities Corporation located at No. 141 Nguyen Du Ben Thanh Ward District 1 Ho Chi Minh City with its business line being securities and Eximbank's ownership ratio of 10.86% at the Company. I.4. Development orientations I.4.1. Development vision Eximbank will take advantage of market opportunities to maintain sustainable growth strengthen and expand its customer base heighten position and develop Eximbank into a modern commercial joint stock bank at which all shareholders investors customers and partners are confident with their capital investment and safety; a bank that offers a variety of high quality banking and financial products and services; and a brand with high prestige in the banking and financial industry and great contribution to the community and society. I.4.2. Development targets and orientations up to 2020 For the period of Eximbank strives to be in Top 5 commercial joint stock banks (excluding commercial joint stock banks with state-owned holding). To take advantage of chance and opportunities effectively use the strength in owners' equity through the commercial banking and investment banking operations and subsidiaries' and associates' activities. Simultaneously to leverage the advantage of good relations with foreign partners especially the strategic partner as Sumitomo Mitsui Banking Corporation. 16

17 To develop products and services suitable with market demands to increase the service income structure over the total income of the Bank especially the settlement services. To continue promoting its strengths in trade finance export and import finance gold trading foreign exchange trading diversifying products and services based on the application of advanced information technology foundation gradually adopting best international standards and developing high quality human resources. To keep on boosting retail banking operations through the development of appropriate retail sales model a more professional sales force and a product policy suitable with the market demands. To strengthen the concentration on protecting and improving the environmental quality protecting human rights observing with the requirements on labour and occupation and participating in other social policies during the course of operation of Eximbank. I.5. Risks Eximbank is aware of and takes control over risks that are likely to affect its business activities or the execution of its general objectives including business environmental risk credit risk market risk liquidity risk and operational risk. a) Business environmental risk is the risk arising out of macro-economic factors. The country's economy in 2014 generally has made many positive changes (GDP growth in 2014 is estimated to increase by 5.98 % against 2013); however under the pressure of world economic and political uncertainty as well as previous unthoroughly solved difficulties (the capital absorptive capacity of the economy being not high bad debt pressure remaining heavy credit quality being not up to expectation and management capability and competitiveness of enterprises being still low) production and business of local enterprises will still suffer lots of negative and long-term impacts until the end of Such challenges affect individual and corporate customers dealing with Eximbank will be a challenging year for Eximbank in particular and Vietnam's credit institutions in general when Circular 36 officially takes effect is the last year of implementing the Government's Scheme on Restructuring the credit institution system in the period and also the year of completing phase 1 of the process of applying Basel II to the Vietnamese banking system. b) Credit risk is the loss likely to happen to the Bank's credits due to customers' failure to fully perform their repayment obligations as committed which may be due to subjective or objective reasons. Credit risk is considered the biggest risk regularly affecting the Bank's operations as credit activity creates 17

18 the highest income for the bank. c) Market risk is the risk arising out of market fluctuations causing adverse impacts on Eximbank's income and (or) capital including: (i) Interest rate risk: as Eximbank's asset and income portfolio mainly originate from lending and bond investment activities the interest rate volatilities shall cause strong impacts on Eximbank's performance. Interest rate risk may arise from the difference in the times of interest rate fixation changes of the relationship among different market interest rates or changes of the interest rate relationship among different tenors or interest-linked option products. (ii) Exchange rate risk is the risk resulted from exchange rate volatilities causing negative impacts on Eximbank's income and capital. Exchange rate risk may arise from such forms as foreign exchange transactions foreign currency derivative transactions (e.g. future currency swap and option contracts). (iii) Investment value risk is the risk resulted from price fluctuations of stocks bonds and other capital and securities investments leading to the diminution of investments held by the Bank. d) Liquidity risk is the risk that leads to inability to meet payment obligations to customers liquidity demand at the time of financial obligation incurrence; or that though being able to perform its obligations when due Eximbank has to suffer great losses upon performing such obligations. Liquidity risk may arise from the gap between the size and tenor of assets and liabilities in different times. e) Operational risk is the risk associated with the bank's operations but it's hard to manage and prevent the same. It stems from human factors deficiencies in operational procedures weaknesses in information system and internal control system or external factors. Operational risk is the most complex risk faced by Eximbank for its hardly controllable nature and diversity. To cope with such risk Eximbank has developed and promulgated internal policies and manuals set up business continuity plan to deal with mistakes in manipulations and unexpected incidents. 18

19 II. BUSINESS PERFORMANCE IN 2014

20 II.1. Operations financial conditions and business results of 2014 During last year although the macro-economy was stabilized in a positive direction the business environment of the banking and financial industry still faced with many challenges such as: rising competition among banks NPL ratio increase etc. However with relentless efforts Eximbank achieved the following results: Mobilized funds from economic entities and individuals reached billion VND up 22.7% compared to 2013 and fulfilling 101% of the plan. Total credits granted to economic entities and individuals (including lending and corporate bonds) reached billion VND up 10.7% compared to 2013 and outperforming the proposed plan (97300 billion VND). Of which total loan balance to economic entities and individuals was billion VND up 4.6% against 2013 and completing 97% of the plan. Total assets achieved billion VND down 5% compared to 2013 and fulfilling 95% of the plan. Despite the drop in total assets and profit of Eximbank in 2014 it reflected Eximbank's determination to make the financial structure healthy and enhance asset quality. In addition Eximbank boldly set aside provision from the profits earned from business activities to serve as a premise for growth in subsequent years and to strictly comply with the commitment of developing the Bank in a healthy and sustainable manner. Therefore Eximbank's profit before tax was 69 billion VND return on average assets ratio (ROA) was 0.03% and return on average equity ratio (ROE) was 0.39%. Prudent ratios of Eximbank were all within the safety limits as required by the State Bank. As of 31 December 2014 the consolidated capital adequacy ratio reached 13.62% higher than the regulated ratio of 9% imposed by the State Bank. Some financial highlights Target Unit % up /down against Capital base Total assets billion VND % Shareholders' equity billion VND % Of which: Charter capital billion VND % Capital Adequacy Ratio (CAR) %

21 Target Unit % up /down against Operating results Funds raised from economic billion VND % entities and individuals Total deposits billion VND % Total credit exposure billion VND % Of which outstanding loans to billion VND % economic entities and individuals Total loans disbursement billion VND % Total loans collection billion VND % Overdue loans (groups 2-5) billion VND % Non-performing loans (groups 3-5) billion VND % Overdue loans to total gross loans % Non-performing loans to total % gross loans Overdue guarantees to total % guarantees 3. Financial condition Net interest income billion VND % Net service income billion VND % Net income from other activities billion VND 204 (261) Total operating income billion VND % Total operating expenses billion VND (2121) (2049) -3.4% Net operating income before billion VND % provision for credit losses Risk provisioning expenses billion VND (300) (825) 174.9% Profit before tax billion VND % Corporate income tax billion VND (169) (13) -92.3% Profit after tax billion VND % 21

22 Target Unit % up /down against Profitability Return on Equity (ROE) % Return on Assets (ROA) % Liquidity Quick ratio (converted to VND) % Ratio of short-term funds used % for mid and long-term loans 6. Dividend payout ratio % p.a. 4 0 Eximbank continued to transform its business model to be in line with economic conditions through restructuring the organization model in way of refining the operating apparatus enhancing labour capacity concentrating resources on sales forces; improved operating quality of transaction offices; promoted efficient credit growth in parallelism with tight control and inspection over credit quality; boosted retail sales growth; implemented to develop utility-added products and services based on modern technology foundation; continued implementing focused projects under Information Technology Development Program; set up Council for prevention and handling of overdue loans and bad loans; enhanced Debt Settlement Center's role to ensure the most appropriate and fastest settlement of loans; etc. Moreover Eximbank has perfected KPI for sales officers and business officers in combination with a timely emulation and reward mechanism on monthly basis contributing to stimulate the business activity development. The brand promotion has contributed to intensify Eximbank's image and brand value in domestic and international markets prominently as Best Bank in Vietnam award bestowed by Euromoney magazine for the second consecutive year Strong and Sustainable Enterprises selected by Businessmen Cultural Center Excellence in International Payments award presented by The Bank of New York Mellon etc. 22

23 ORGANIZATION AND PERSONNEL

24 II.2 Organization and Personnel II.2.1 Introduction of the Board of Management Mr. Pham Huu Phu Chief Executive Officer Being Vice Chairman of the Board of Directors of Vietnam Export Import Commercial Joint Stock Bank and being assigned as Acting Chief Executive Officer in May 2014 before officially becoming the Chief Executive Officer in October He was attached with Vietnam Export Import Commercial Joint Stock Bank from 2008 to 2012 with the positions of Vice Chairman and Standing Vice Chairman of the Board of Directors. Mr. Tran Tan Loc Standing Executive Vice President Appointed in March 2007 and currently being the Standing Executive Vice President of Vietnam Export Import Commercial Joint Stock Bank. Holding a Ph.D. of Economics in Finance Credit he started working for Eximbank from 1994 and has made extensive contributions to the Bank's development throughout his 21 years of service. He used to hold various positions namely Deputy Director of Transaction Accounting Department Deputy Director and then Director of Credit Card Department Assistant to the Chief Executive Officer cum Deputy Chief of the Development Project Section Secretary of the Board of Directors cum Deputy Chief of the Office of the Board of Directors of Eximbank. 24

25 Mr. Dao Hong Chau Vice President Appointed in April 2004 holding a Master degree of Economics and currently being the Vice President of Vietnam Export Import Commercial Joint Stock Bank. He has been working for the Bank since 1992 and throughout such 23 years made lots of contributions to the development of the Bank. He used to be Deputy Director and then Director of Treasury Department. Mr. Nguyen Quoc Huong Vice President Appointed as Vice President in February 2006 then Acting Chief Executive Officer in September 2013 and officially appointed as Chief Executive Officer in December 2013; from May 2014 till now he is the Vice President cum Ho Chi Minh City Regional Director of Eximbank. Holding a Master degree of Economics he has been working for the Bank since 1993 and making great contributions to its development during the last 21 years. He used to hold such positions as Deputy Director and then Director of Credit Department Director of Corporate Credit Department Director of Credit Management Department and Vice President cum Director of Main Transaction Office No

26 Mrs. Dinh Thi Thu Thao Vice President Appointed in December 2007 holding a Master degree of Economics and currently being the Vice President of Vietnam Export Import Commercial Joint Stock Bank. She has served the Bank for the past 24 years and used to hold such positions as Deputy Director and then Director of Transaction Accounting Department Director of Corporate Customer Services Department Deputy Director of Main Transaction Office No. 1 and Head of Retail Banking Division. Mr. Kenji Kuroki Vice President Appointed in July 2008 and currently being the Vice President of Vietnam Export Import Commercial Joint Stock Bank cum Co-Director of Alliance Department. He has been serving Sumitomo Mitsui Banking Corporation since 1989 and used to be the Senior Vice President of the Representative Office of Sumitomo Mitsui Banking Corporation in Ho Chi Minh City from 2005 to

27 Mrs. Van Thai Bao Nhi Vice President Appointed in May 2012 holding a Master degree of Economics and currently being the Vice President of Vietnam Export Import Commercial Joint Stock Bank. Being with the bank since 1996 she has greatly contributed to the Bank's development throughout her 19 years of service. She used to hold such positions as Deputy Director of Credit Department Director of Corporate Credit Department and Head of Corporate Banking Division. Mr. Mitsuaki Shiogo Vice President Appointed in June 2012 holding a Bachelor degree of Economics and currently being the Vice President of Vietnam Export Import Commercial Joint Stock Bank. He has been serving Sumitomo Mitsui Banking Corporation since He used to hold such positions as Vice President of JRI America Company and Senior Vice President of SMBC America Information System Division from May 2005 to February

28 Mr. Le Anh Tu Vice President Appointed in August 2013 holding a Master degree of Economics and currently being the Vice President of Vietnam Export Import Commercial Joint Stock Bank cum North Regional Director. He has been working for the Bank since 1995 and making different contributions to its development during the last 20 years. He used to hold such positions as Deputy Manager of General and Treasury Department of Hanoi Branch Long Bien Branch Director and North Regional Director. Mrs. Bui Do Bich Van Vice President Appointed in August 2013 holding a Master degree of Economics and currently being the Vice President of Vietnam Export Import Commercial Joint Stock Bank cum Central and Highlands Regional Director. Having been serving the Bank since 1993 she has greatly contributed to its development in the last 22 years. She used to hold various positions namely Manager of International Settlement Department of Eximbank Da Nang Branch Eximbank Da Nang Branch Director and Central and Highlands Regional Director. 28

29 Mr. Nguyen Ho Hoang Vu Vice President Appointed in September 2013 holding a Master degree of Economics and currently being the Vice President cum Chief Financial Officer of Vietnam Export Import Commercial Joint Stock Bank. Starting to work at Eximbank in 1993 he has been dedicating for the Bank's development throughout his 22 years of service. He used to hold such positions as Deputy Director then Director of General Accounting Department and Chief Accountant of Eximbank. Mr. Le Hai Lam Vice President Appointed in September 2013 holding a Bachelor degree of Economics and currently being the Vice President of Vietnam Export Import Commercial Joint Stock Bank. Since his service at Eximbank in 1996 he has been making contributions to its development during the last 19 years. He used to hold such positions as Deputy Director of Individual Credit Department Director of Corporate Credit Department and Eximbank Tan Son Nhat Branch Director. 29

30 Mr. Nguyen Quang Triet Vice President Appointed in September 2013 holding a Master degree of Economics and currently being the Vice President of Vietnam Export Import Commercial Joint Stock Bank. Starting to work at Eximbank in 1992 he has made contributions to its development in his 23 years of service. He used to hold various positions such as Deputy Director then Director of Cash Department and Director of Human Resources Management Department. Mr. Cao Xuan Lanh Vice President Received and appointed in December 2013 holding a Master degree of Economics and currently being the Vice President of Vietnam Export Import Commercial Joint Stock Bank. He used to hold such positions as: Vice President of Dai Cat Hoang Long Joint Stock Company Deputy Director of Planning and Investment Department of Saigon Jewelry Corporation and Vice President of Saigon Jewelry Company Limited. 30

31 Mr. Nguyen Van Hao Vice President Appointed in January 2014 holding a Master degree of Economics and currently being the Vice President of Vietnam Export Import Commercial Joint Stock Bank cum Southeast Regional Director. He joined Eximbank in 2007 and used to hold such positions as Dong Nai Branch Director Southeast Regional Director. Mr. Nguyen Thuc Vinh Vice President Appointed in November 2014 holding a Master degree of Economics and currently being the Vice President of Vietnam Export Import Commercial Joint Stock Bank. He used to hold such positions as Head of Operation Division of Sacombank Chairman of the Board of Directors cum General Director of Viet Tinh Investment Consulting Co. Ltd. member of the Board of Directors cum General Director of Viet Dragon Fund Management. 31

32 II.2.2. Changes in members of the Board of Management 1. Mr. Pham Huu Phu: Vice Chairman of the Board of Directors concurrently holding position of Acting Chief Executive Officer in May 2014 and then Chief Executive Officer in October Mr. Nguyen Quoc Huong: resigning from the title of Chief Executive Officer in May 2014 and appointed as Vice President cum Ho Chi Minh City Regional Director of Eximbank in May Mr. Nguyen Van Hao: appointed as Vice President in January Mr. Nguyen Thanh Nhung: resigning from the title of Vice President and terminating his Labour contract with Eximbank in May Mr. Nguyen Thuc Vinh: received and appointed in November II.2.3. Shareholding ratio by members of the Board of Management No. Full name Position Shareholding ratio (%) Note 01 Mr. Pham Huu Phu Vice Chairman of the Board of Directors cum Chief Executive Officer Appointed as Acting Chief Executive Officer on May Appointed as Chief Executive Officer in October Mr. Tran Tan Loc Mr. Nguyen Quoc Huong Standing Executive Vice President Vice President Resigned from Chief Executive Officer position on May Appointed as Vice President on May Mr. Dao Hong Chau Vice President Mrs. Dinh Thi Thu Thao Vice President Mrs. Van Thai Bao Nhi Vice President Mr. Kenji Kuroki Vice President 08 Mr. Mitsuaki Shiogo Vice President 09 Mrs. Bui Do Bich Van Vice President Mr. Le Anh Tu Vice President 32

33 No. Full name Position Shareholding ratio (%) Note 11 Mr. Nguyen Ho Hoang Vu Vice President cum Chief Financial Officer Mr. Le Hai Lam Vice President 13 Mr. Nguyen Quang Triet Vice President Mr. Cao Xuan Lanh Mr. Nguyen Van Hao Mr. Nguyen Thuc Vinh Vice President Vice President Vice President Appointed on January Appointed on November Mr. Nguyen Ngoc Ha Chief Accountant II.2.4. Human Resources and Personnel Policies 1. Human Resources Eximbank's total human resource as of December was 5728 employees up 365 employees compared to the early year. From that Eximbank has maintained a young dynamic and welltrained personnel structure whereby nearly 80% are aged from 18 to 35 and over 77% are holding graduate and post-graduate degree % 19.33% 1.87% 4.70% 4.60% 70.50% 78.80% Graduate Vocational College Unskilled Aged Aged Aged over 50 Personnel structure in terms of education level Personnel structure in terms of age 33

34 2. Personnel Policies 2.1. Officer planning policy Officer planning at all levels receives particular attention from the Board of Directors and the Management in order to prepare managing officer cadre succeeding force for development and network expansion as well as to be proactive in human resource management. Eximbank's planning closely follows guiding regulations of the State Bank of Vietnam (SBV) on implementing the Planning of banking personnel development for period as approved by the Governor of the State Bank under Decision No. 219/QD-NHNN dated February Training policy Eximbank encourages and creates the most favorable conditions for its employees to enhance their professional competence to satisfy working demands in various forms such as: assigning officers to short and long term training sessions held locally or overseas by Institutes Universities strategic partner correspondents banks; supporting tuition fees and facilitating officers' participation in postgraduate and second-degree training courses relevant to their expertise; sending officers to Seminars professional enhanced training courses to satisfy working demands. Eximbank itself also gives training and advanced coaching on both specialized operations and banking administration skills to its employees. In 2014 Eximbank's Training Center organized and coordinated to organize 144 training classes with 4355 learners accounting for 76.5% of total employees of Eximbank's whole network Development of appointment qualifications and officer appointment policy The enhancement of conditions and qualifications for key officers at Eximbank receives special interest from the Board of Directors and the Management. In May 2012 the Board of Directors issued the Regulation on qualifications of managing officers at Eximbank with improved conditions and qualifications for key officer appointment as follows: - Key officers (holding titles of from Department Director/Manager and higher) are required to hold graduate degree with major appropriate with the position like: Economics Finance Banking Business Administration Foreign Trade. - Key officers are required to have at least 05 years' work experience in banking industry whereby at least 02 years of which they hold managing position of from Deputy Director/Manager and higher. 34

35 Above regulations aim at encouraging or forcing staff and officers to keep on studying and researching to improve their professional competence building up managing cadre with satisfactory qualifications to ensure stability inheritance and development of the officer cadre improving business quality and effectiveness of the units within the network meeting the Bank's current and future demands and missions. Besides with a view to develop the cadre of managing officers and bankers with high competence sense of responsibility and professional ethics Eximbank has unceasingly improved recruitment quality; applied reasonable promotion and appointment policies by issuing the Regulation on appointment and dismissal of managing officers to serve as the grounds for the appointment and dismissal of managing titles. Furthermore in order to effectively evaluate business performance Eximbank has completed the development of KPI for the titles for implementation in the whole network Remuneration bonus and discipline policies Eximbank applies adequate treatment regime attached to business results and working efficiency via such forms as pay rise bonus in cash or by cars etc. In 2014 Eximbank kept on expanding its policy of giving bonus to sales officers for outperformance of the business targets. Simultaneously Eximbank continued perfecting salary mechanism suitable to each unit and each title creating momentum for employees and units to strive for and boost business activities for planned target accomplishment Social and union activities In 2014 the Trade Union and Youth Union of Eximbank actively executed the activities to care for spiritual life of staff such as music shows sports events professional competitions etc. which created ebullient atmosphere and receives response with great enthusiasm from the majority of employees. Going forward the tradition from the first days of establishment till now in 2014 Eximbank continued participating in and contributing to charity and social security activities namely as programs of buying health insurance cards for poor patients; surmounting the fate ; connecting dreams crossing rivers and lakes for learning ; light of belief ; for beloved Truong Sa pupils ; sponsoring for the construction of bridges roads medical service units gratitude houses; supporting scholarship funds charity social funds etc. 35

36 II.3. Investment in Debt Management and Asset Exploitation Company (Eximbank AMC) II.3.1. Business characteristics of the company II Form of capital ownership The Debt Management and Asset Exploitation One-member Limited Liability Company (Eximbank AMC) was established under Decision No. 157/2010/EIB/QD-HDQT dated 21 April 2010 of the bank's Chairman of the Board of Directors and Decision No. 754/QD-NHNN dated 01 April 2010 of the State Bank of Vietnam. Eximbank AMC's Business Registration Certification No was granted by the Department of Planning and Investment on 24 August 2010 with the initial registered charter capital of VND300 billion. The second amendment was made on 08 September 2011 the third on 30 March 2012 the ninth on 02 April 2014 with the registered charter capital of VND1700 billion. The paid-up charter capital as of 31 December 2014 was VND955 billion. II Business sector business lines and main business activities Eximbank AMC performs these following functions: - Receive and manage outstanding loans of Vietnam Export Import Commercial Joint Stock Bank (including secured and unsecured loans) and the collaterals (i.e. mortgaged or pledged assets; debt setoff assets; assets delivered to the bank by the Court) related to loans for disposal and fund recovery in the quickest time; - Proactively sell collaterals under the discretion of Vietnam Export Import Commercial Joint Stock Bank at market price by such methods as publicly selling by itself on the market; selling through Asset Auction Service Center; selling to the State's Debt trading company; - Restructure outstanding loans by such methods as rescheduling interest rate reduction or waiver additional investment conversion of debts into contributing capital. Handle collaterals by renovating repairing upgrading the same for sale lease business exploitation capital contribution joint venture by assets in order to recover the loans. Perform other activities under authorization of Vietnam Export Import Commercial Joint Stock Bank in accordance with law regulations; - Buy and sell outstanding loans of other credit institutions and of the asset management companies of other commercial banks as stipulated by law. 36

37 II.3.2. Summary of the operation financial conditions and business results of AMC Some financial figures of Eximbank AMC as of 31/12/2014: -Total assets: -Owners' equity: -Profit before tax: -Profit after tax: VND million VND million VND12127 million VND9663 million II.4. Number of shares and shareholding structure of Eximbank II.4.1. Number of shares As of 31 December 2014 number of shares: Number of transferable shares: shares shares Number of non-transferable shares as regulated at clause 1 Article 56 Law on Credit Institutions 2010: shares II.4.2. Shareholding structure No. Shareholder Number of shares Shareholding ratio (%) 1 Major shareholders (owning 5% of charter capital and upwards) Shareholders owning less than 5% of charter capital Entity shareholder Domestic Foreign Individual shareholder Domestic Foreign Domestic shareholder Foreign shareholder State shareholders Other shareholders Founding shareholders

38 Details of major shareholders No. Name Line of business Address Number of shares Holding ratio (%) 01 Sumitomo Mitsui Banking Corporation Banking 1-2 Marunouchi 1-chomeChiyado-ku Tokyo Japan Commercial Joint-stock Bank for Foreign Trade of Vietnam (Vietcombank) Banking 198 Tran Quang Khai Street Hoan Kiem District Hanoi II.4.3. Changes in Shareholders' equity Eximbank did not increase its charter capital in the year II.4.4. Treasury stock transactions On 06 December 2013 Eximbank issued Notice No. 489A/2013/EIB/TGD regarding anticipated redemption of EIB shares for treasury stock and on 17/01/2014 Eximbank reported in the official dispatch No. 156/2014/EIB/TGD the completed buyback of shares for treasury stock with average trading price of VND12853/share by order-matching method and in the official dispatch No. 157/2014/EIB/TGD the number of outstanding shares with voting right ( shares). Number of treasury stocks as of 31 December 2014: shares. II.4.5. Other securities: none 38

39 III. REPORTS AND ASSESSMENTS OF THE BOARD OF MANAGEMENT

40 III.1. Assessment on business performance In 2014 although the business performance dealt with many impediments and challenges Eximbank still maintained its growth pace with respect to major targets such as loan balance to customers growing by 4.6%; funds mobilized from economic entities and individuals increasing by 22.7% compared to 2013; NPL ratio being curbed at a fairly low rate compared to the whole industry. To create impetus for sustainable development for credit activity in 2015 Eximbank boldly set aside credit risk provision thus the profit after provision for credit losses reached 69 billion VND. Regarding the governance and administration Eximbank continued to perform strong and comprehensive restructuring from the Head Office to Branches strengthened the sales force consolidated and increased customer base established centralized management models focused on developing retail banking activities and electronic banking upgraded operating quality of the transaction offices continuously innovated products and services and set up suitable products to customers' needs enhanced service quality reinforced risk management tightly controlled credit quality boosted brand promotion etc. which helped gradually surmount the limitations and shortcomings to further improve business efficiency of the whole network and lay safe and solid foundation for development in the coming years. III.1.1. Retail Banking Retail fund mobilization As of 31/12/2014 funds mobilized from individual customers reached billion VND rising by 20% compared to the early year with retail customer base accounting for up to 96% of the total number of customers reaching nearly individual customers surging by 18% from the early year. In 2014 Eximbank structured its funding in the direction of positively increasing the proportion of medium and long term funding to ensure funding stability and meet the demands for medium and long term lending. To achieve such positive results in 2014 Eximbank has always been proactive and timely in its mobilization policies which are in line with the State Bank of Vietnam's policies and the market trends. In addition Eximbank continuously endeavoured to give out better customer care solutions improved customers' satisfaction and trust enhanced and improved product and service quality made diversification in combination with modern technology thus meeting customers' various demands. Deposit products offered by Eximbank to individual customers are: Online Savings Deposit 40

41 Savings Deposit in Installments Phuc Bao An Savings Deposit Savings Deposit For Beloved Children Truong Phat Loc Savings Deposit Salary Accumulation Savings Deposit etc. together with many attractive practical and valued promotion programs with multiple utilities such as deposit in one place - withdrawal in different places registration for automatic transfer of interest or automatic funds transfer etc. as well as Eximbank VIP service with many prominent privileges and priority servicing by Eximbank. Retail credits In 2014 Eximbank continued to attach special importance to and shift its strong investment in the retail credit market and considered it as the focused market share for the year. With prudent policies concentrating on the group of individual customers with stable income and renovation of products and services suitable to the market Eximbank boosted lending to key and stable product groups such as lending for purchase of houses means of transport (cars) production and business etc. As of 31/12/2014 total outstanding retail loans reached billion VND up 5 % compared to 2013 accounting for 35% of the total loan balance of the whole network. With the policy of transforming to enhance retail credit development Retail Banking Center which is directly under the Chief Executive Officer was established in August 2013 to concentrate and strengthen Head Office's role in retail banking activities and improve business efficiency of the units in the whole network of Eximbank. Loan balance structure by products (%) Retail credit balance proportion against the whole network in 2014 (%) 25.3% 31.4% 35% 2.0% 38.8% 2.6% 65% House Cars Corporate Individual Overseas Studies Others Production & Business 41

42 Card issuance and acquiring In 2014 total number of cards issued reached cards raising the total number of issued cards to 1.5 million cards increasing by 13% compared to Card use volume reached billion VND growing by 13% compared to Eximbank's merchant network achieved 3000 units with nearly 6000 POS's and 260 ATMs distributed in major locations nationwide. Total acquiring volume during 2014 through such channels was quite satisfactory with billion VND up 15% over the same period last year. Presently Eximbank has connected to the ATM POS system with all banks in the 2 big card alliances in Vietnam (Smartlink Banknet) and diversified types of businesses accepting card payment to satisfy customers' needs for card use. In addition with an aim to better care customers Eximbank has implemented many preferential and promotional programs with multiple forms and diversified substance. In 2014 Eximbank launched many products and services increased facilities and customer care programs prominently as MasterCard Passbook credit card Visa VioletCard credit card products mpos card payment service via mobile phone expanded online portal network accepting Eximbank cards and enhanced card utilities on Internet Banking etc. Services * Payout of inward overseas remittance: In 2014 Eximbank focused on building a solid foundation for the development of inward overseas remittance service promoted cooperation with many partners in key remittance markets and large domestic remittance companies diversified payout channels to increase the utilities and expand remittance payout network and strengthened remittance partners' support to promote Eximbank's service in overseas markets. Inward overseas remittance markets are mainly traditional ones such as USA Germany Singapore Australia and Japan. For market development Eximbank last year cooperated with new remittance partners in such markets as South Korea Japan USA Russia and Eastern Europe to facilitate customers' easy and fast receipt of money transferred to from overseas by relatives. Besides Eximbank also expanded new remittance payout channels whereby customers receiving money via Eximbank can choose the most convenient form of receipt including cash pickup at 42

43 counters transfer to account home delivery or through Eximbank's agents. * Outward overseas remittance: Total outward overseas remittance volume of retail customers in 2014 increased by 32% against 2013 fulfilling 107% of 2014's plan. Of which overseas study remittance volume accounted for 74% of total outward overseas remittance volume surging by 20% compared to The largest remittance market is the US followed by Australia Canada England etc. During the year Eximbank also further deployed express remittance channel from Vietnam to overseas through MoneyGram to meet customers' needs for fast money transfer. * Besides Eximbank also provided a diversity of other services for individual customers such as: Fingerprint service Inward and outward domestic money transfer service Bill payment for electricity water telephone cable TV Internet and air tickets and Gold custody service. III.1.2. Corporate Banking Corporate fund mobilization In 2014 the State Bank of Vietnam (SBV) regulated monetary policy in a flexible way aiming at supporting the banking operations and the economy. Specifically SBV had revised down the ceiling deposit rate with respect to both VND and USD by 0.5 % p.a % p.a. for each term and each different currency. For more sustainable and efficient increase of liquidity Eximbank focused on growing the funding sources reasonably changing the mobilization structure of each term and increasing customers' payment cash flow balance. Consequently the fund mobilization from economic entities last year achieved a good growth rate of 28% at the end of Corporate customer services Performing the goals of diversified development and increase of the proportion of service income over the total income structure last year Eximbank achieved the service income growth rate of about 20% and significant rise of transaction volumes improved cash management services focused on increasing customer base using services of Eximbank's advantages such as collection at counters collection at designated locations automatic payments through Internet Banking system and batch payments as per lists provided by customers and improved services relating to specialized securities trading accounts etc. 43

44 In addition with the motto of perfecting products and services to best meet customer demands while ensuring conformity with stipulations of laws and the State Bank Eximbank has frequently reviewed the existing products and services simultaneously updated built and launched new products and services such as margin deposit service for corporate establishment current account innovation indirect and direct investment capital account etc.; connected and cooperated with other partners such as banks groups and large corporations domestically and overseas in order to diversify products and services as well as increase transaction volumes and cash flow. Corporate credits Lending to corporate customers had posted positive developments with outstanding loans growing by about 5% loan balance structure by industry being allocated properly and credit quality being improved. With advantage of export and import financing Eximbank has implemented various lending programs aiming at supporting enterprises to easily approach capital sources with preferential interest rates to carry out export and import orders in a fast and convenient manner and at reasonable cost. Giving special importance to developing small and medium enterprises lending through the review of loan programs for small enterprises introduction of loan products with simple procedures establishment of fast document handling procedures to timely meet customers' capital demands the proportion of loans granted to small and medium enterprises over the total corporate customer loans consequently increased during last year. In addition in response to the policies and directions of the State Bank Ho Chi Minh City People's Committee and the State Bank - Ho Chi Minh City Branch Eximbank actively participated in implementing numerous credit packages to facilitate businesses to approach capital sources at preferential interest rates typically as the loan program of connecting Banks - Enterprises in Ho Chi Minh City loans to market stabilizing enterprises or to those companies that provide commodities or participate in the distribution network of stabilizing enterprises loans for the nation's rice temporary storage program and agricultural and rural credit programs. Under the context of increasingly fierce competition in the banking sector it is very essential to care basic and traditional customers especially corporate ones. Eximbank has set up professional and highly qualified relationship managers (RMs) to support and consult on financial solutions for customers in an efficient and timely manner. Customer relation force with better training on both knowledge and skills will be the pioneer cadre in caring and developing the customer base as well as promoting corporate banking in the coming time. 44

45 International settlement Eximbank is one of the banks having quite large market share in international settlement advantages from a worldwide correspondent network with nearly 900 correspondent banks stretching over 80 countries good service quality and high competent human resources bringing satisfaction to customers throughout the network which contributed to the growth in export and import settlement volume in 2014 reaching 5.86 billion USD rising by 19% compared to 2013 of which export settlement volume gained 2.65 billion USD increasing by 18.63% and import settlement volume reached 3.21 billion USD growing by 18.53% y-o-y. III.1.3. Capital Trading In 2014 the State Bank regulated the monetary and exchange rate policies in the direction of boosting economic growth. Accordingly interest rates were governed in a downward trend exchange rates were stable credit growth was in parallel with bad debt resolution and some weak banks were restructured ensuring to maintain a safe banking system. The whole sector credit growth despite achieving its objectives still had quite big gap compared to fund mobilization growth thus the liquidity surplus continued to occur in the banking system and the interbank interest rates were maintained at low level. Not being out of the common trend of the sector Eximbank although its profits and some targets were not up to expectation with its prudent operating policy in accordance with the State Bank's orientations has made significant innovation and perfection in the capital trading and management activity through: - Developing and upgrading the fund transfer pricing system towards centralized risk management at the Head Office to create a solid foundation to promote business activities for the banking units nationwide enabling a smooth and transparent capital management system. - Capturing and well exploiting market opportunities maintaining capital balance to be in line with capital supply and demand ensuring the harmony among the capital liquidity safety and business efficiency for the whole network of Eximbank. - With the award Best Bank in Vietnam voted for the second consecutive year by Euromoney magazine Eximbank's reputation continued to be asserted both in Vietnam's and Asian financial markets. Beside reinforcing existing international relations Eximbank has incessantly extended its relations with new partners especially in fund mobilization for the objective of not only satisfying business demands but creating impetus for future great growth as well. 45

46 Transaction figures in 2014 Target (+)/(-) against 2013 Volumes VND (billion VND) USD (million USD) % % III.1.4. Foreign Currency Trading Leveraging existing advantages in export and import activities 2014 continued to be a year when Eximbank showed its flexibility and diversity in foreign exchange products offered to customers. The proactive approach service quality enhancement and flexible adoption of foreign exchange trading operations were paid with special focus in the whole network to fully meet customers' foreign currency demands for payments. The year 2014 also marks modern improvements and strong development in the administration of internal trading system in foreign currencies. Online trading system which was studied fully developed and put into use helped enhance the efficiency save time and mitigate risks for the whole network. The ongoing training process in combination with succession has helped constantly improve and perfect the professional competence of trading officers in accordance with international standards and in line with Vietnamese market conditions. That total foreign currency trading volume of 2014 increased by nearly 50% compared to 2013 completing over 130% of the proposed plan showed rising competitiveness of Eximbank in foreign currency trading laying a foundation for growth in 2015 and subsequent years. Target 2014 % of increase compared to 2013 % of plan in 2014 Foreign currency buying/ selling volume % % Unit: billion USD 46

47 III.1.5. Gold Trading Vietnam's gold market has undergone stable operation under the management of the State Bank. Only qualified units being licensed by the State Bank are able to trade in gold bars. As a unit being licensed by the State Bank to sell and purchase gold bars in 2014 Eximbank focused on promoting retail gold selling activity with the motto of best meeting customers' purchase and sale demands in areas where Eximbank's banking units are located and improving the customer service quality. Achievements gained in 2014: Retail gold sale volume increased by 14% compared to 2013 reaching 5.1 million taels. III.1.6. Financial Investment In 2014 although Vietnam's economy was still exposed to difficulties stock market saw fairly good growth rate especially bond market experiencing outstanding growth and high liquidity facilitating the bond investment activity of credit institutions in general and Eximbank in particular. For bond investment Eximbank concentrated on investing in those enterprises with business efficiency and high prestige in the market and good rate of return. Therefore although the interest rates in 2014 continuously decreased the bond portfolio was still effective and made not a small contribution to Eximbank's profit. The bond portfolio balance at the end of the period reached billion VND (excluding treasury bills and VAMC bonds) which was a significant growth (25.3%) compared to III.1.7. Customer Base Development Eximbank's customer base has kept its fair growth pace thanks to incessant efforts in setting up professional sales force improving servicing quality and innovating products and services. Total number of customers of Eximbank as at end of 2014 nearly reached 939 thousand customers growing by 18% compared to Of which: Retail customers accounted for 96% increasing by 18.2% from the early year (or 138 thousand customers). Corporate customers made up 4% rising by 14.2% from the early year (or 5 thousand customers). III.2. Financial conditions III.2.1. Assets In 2014 although total assets decreased slightly by 5% compared to 2013 Eximbank's funding 47

48 and fund use structure was improved in a good way: funds mobilized from the primary market growing; funds raised from the secondary market being contracted; loan balance increasing; and NPLs being controlled at 2.46% of total loan balance. Customers' deposits expanded sharply. Funds mobilized from economic entities and residents as at 31/12/2014 reached billion VND rising by billion VND or 22.7% compared to the figure of billion VND of the same period last year. Due to and loans from other credit institutions shrank from billion VND to billion VND. The replacement of interbank borrowings by deposits made the funding structure more stable and solid laying a basis for medium and long-term loan growth and customer base increase. As loan balance as of the end of 2014 increased by 4.6% compared to the end of 2013 from billion VND to billion VND and funds mobilized from economic entities and residents had good growth loan-to-deposit ratio was brought down to 86% aiming to enhance capital adequacy standards. Eximbank has also focused on retail activity with professional and dynamic sales team so as to increase the loan balance and achieve higher profits with less risk. In 2014 Eximbank diversified its investment portfolio for various purposes. Of which investment in government bonds ensured not only the profitability target but also the liquidity reserve as stipulated by the State Bank; investment in bonds issued by credit institutions and enterprises is for generating profits. Eximbank continued aiming at the objectives of safety financial capability enhancement efficient fund management and use contributing to sustainable growth and development. III.2.2. Credit Quality At the end of 2014 Eximbank's NPL ratio was 2.46% increasing by 0.47% compared to early Increase in bad loans of Eximbank was primarily due to its customers' dealing with difficulties in prior years whereby Eximbank had implemented debt restructuring to support customers to overcome obstacles on the basis of compliance with the State Bank's stipulations; however customers' business still had no sign of improvement. Therefore Eximbank had to carry out debt re-classification to properly reflect its credit quality. III.3. Improvements in organization structure policy and management III.3.1. Network Development In 2014 Eximbank put into operations 2 more Branches (Kien Giang and Binh Phuoc) and 1 48

49 more Transaction Office (Nam Phuoc Transaction Office belonging to Quang Nam Branch) and terminated operation of 1 Transaction Point (Tang Bat Ho Transaction Point belonging to Dong Da Branch). As of 31/12/2014 Eximbank's operation network comprised of 208 banking units (including 44 Branches 163 Transaction Offices and 01 Savings Fund). Situation of Eximbank's network development during period: Network Time MTO/Branch Transaction Office/Savings Fund/Transaction Point Total III.3.2. Risk Management Being aware of the risks that may arise from changes and challenges in today's economic environment in 2014 Eximbank continued setting up and perfecting its risk management model at all management levels of from the Board of Directors Board of Supervisors to the Management and Divisions in three aspects: organization structure policy procedures internal regulations and executing personnel in line with the scope and orientations of the business activities and prepared for implementation of Basel II at the Bank. In terms of organization structure at the Board of Directors level Eximbank supplemented personnel to the Risk Management Committee comprising of foreign members with mastery of international risk management standards and Vietnamese members with deep insight of characteristics of risks in Vietnamese market. At the Management level the Bank kept on building consolidating and increasing the scope of operations of the risk management units according to the independent model advised by SMBC comprising of the following departments: Credit Risk Management Market Risk Management and Operational Risk Management. There was always constant and timely exchange of information between the two levels of risk management to ensure that risks were fully identified by all persons in-charge. Simultaneously units under the Management level regularly consulted Risk Management Committee on necessary adjustments in risk management policies and processes as well as risk appetite. 49

50 The risk management at Eximbank is performed with respect to credit risk liquidity risk market risk and operational risk. III Credit risk management In 2014 Eximbank centralized the credit risk management through the appointment of Regional directors and establishment of regional offices to support the appraisal and approval of credit granting to units throughout the network. Credit monitoring activities were intensified. Eximbank implemented strict control over performance of credit granting conditions before disbursement and frequently reviewed credits granted and security assets to timely assess its credit quality. Eximbank focused on managing the concentration risk in credit activity. The granting of credits to groups of customers was cautiously appraised and approved. Eximbank established credit limits by economic sectors and target customers and performed regular assessment and control. The credit scoring system is the basic tool to assist in managing credit risks. In 2013 Eximbank put this system into operation in order to support the credit granting approval and credit risk management. Eximbank continued evaluating and adjusting the credit scoring system to ensure the classification of customers' repayment capacity and using it as an official tool in its risk management activity. III Liquidity risk management Liquidity is a crucial factor for financial institutions. Most of the failures of financial institutions occurred largely due to failing to ensure their liquidity. To prevent and cope with issues relating to liquidity risks Eximbank set up a system of full and prudent internal regulations and procedures on liquidity risk management in line with standards of the whole industry with stipulations on solvency management and on prudent ratios in operations by the State Bank and with Eximbank's business characteristics. The stress-test model was applied by Eximbank to forecast cases the Bank might encounter problems of liquidity risk and to offer the most optimal provisional treatment options accordingly. III Market risk management (i) Interest rate risk management: For timely response to and handling of interest rate risk Eximbank researched built and implemented a risk management model: Gap in asset-liability revaluation period (interest rate GAP technique) interest sensitivity ratio (ISR) interest rate risk assessment by the net present value method with respect to interest-sensitive items (NPV). Eximbank will 50

51 continue to research build and enhance the internal regulation system including the Regulation on interest rate risk management to ensure safe business operation of the Bank in compliance with relevant stipulations of the State Bank as well as gradually approach international practices in the future being Basel II International Treaty. (ii) Exchange rate risk management: To manage exchange rate risk Eximbank researched built and promulgated regulations on policy transaction limits foreign exchange risk measuring and control instruments and launched derivative products with the aim of preventing issues resulted from exchange rate risks. (iii) Investment price risk management: To manage investment price risk Eximbank implemented portfolio measurement and assessment methods at market price and set up limits for investment price risk (e.g. securities investment limit stop loss limit risk provisioning limit etc.) in line with the Bank's objectives and business strategy from time to time. III Operational risk management i) Internal fraud-related risk management: - Eximbank issued internal regulations and conditions for the appointment of leadership positions and credit officers in the officer appointment task which was centralized to Head Office only while Branches and Regions had no authority; - Eximbank always considered evaluating the officer capability of each branch and transaction office to assign appropriate credit approval and valuation authority; - Segregating the functions of sales officers and credit appraisal officers by credit processes; - Issuing new regulations on risk management enhancing the role of internal control system etc. In addition the inspection and supervision were frequently carried out by Internal Inspection and Control Teams at branches so as to mitigate risks such as credit international settlement accounting cash and card operations; ii) Risk management relating to operational interruption and errors in information technology system: Eximbank conducted the construction of a backup Data Center in Binh Duong and set up business continuity plan upon occurrence of incidents such as responses to liquidity and information technology incidents and information crisis treatment; iii) Risk management in connection with products and services: Eximbank issued regulations and guidance on the implementation procedures for each specific product and service focused on 51

52 training new employees ensured cross inspection and control in operations established and managed approval limits on the trading systems in line with new models of business activities and risk limits and promoted the role of internal control system; iv) External fraud-related risk: Eximbank has always attached special importance to customer due diligence strictly performed operational procedures for each product and updated risk-related information for warning the network; v) Money-laundering risk management: Eximbank implemented anti-money laundering system for monitoring and preventing fraudulent and suspicious transactions; In the forthcoming time Eximbank will establish operational risk management policy aiming to perfect the construction of evaluating and ranking method over branches; Develop tools to collect analyze and manage operational risk-related losses; Assess by its own the risks and the control barricades; and Provide key risk indicators (KRI) to identify potential changes in internal and external environment. III.3.3. Information Technology System With the objective of building a modern and versatile bank on ground of state-of-art technology the Information Technology (IT) system of Eximbank in 2014 continued to be perfected and developed with the following accomplishments: (1)Eximbank's IT system is well-equipped with modern devices and regularly upgraded to meet the Bank's business requirements. In 2014 Eximbank kept on accelerating the implementation of key projects in the IT Development Program so as to satisfy the requirements of the business development strategy in the period of and visions up to 2020 specifically: - Korebank replacement project: The project bidding was completely implemented. The selection of world-leading Corebanking solution is the opportunity for Eximbank to take advantage of the strengths of the same to deploy modern banking services creating differentiates for products and services shortening time for product launch to the market meeting international standards and enhancing the competitive position. In addition the implementation of new Corebanking system will lay a solid foundation and also an opportunity to restructure the IT system transform the current IT system model to a new one with a strong and sustainable IT infrastructure platform aiming at the objective of creating breakthrough in technology well meeting and being a supportive motivation for the Bank's business development requirements; - Eximbank entered into an Agreement with Schneider Electric IT Vietnam to implement the construction of a modern Data Center meeting international standards and the State Bank's 52

53 requirements. (2)Key systems of the Bank are under stable operation. Recently developed systems such as Card Internet Banking Mobile Banking Authentication etc. systems are developed on strong and flexible technical platform meeting the Bank's needs for business expansion. (3) With the business strategy of focusing on boosting retail banking Eximbank had established Electronic Banking Department to push diversified development of products and services on online transaction channels gradually making these services be advantages of Eximbank. After more than one year of implementation the number of customers using ebanking services increased significantly specifically as: The total number of customers using e-banking services rose by 19 % compared to 2013; The total net income of the e-banking services increased by 10 % compared to (4) Eximbank officially established IT System Security and Safety Center under IT Division specializing in information security and safety to strengthen network information security and safety in the new situation. (5) Continued reviewing and setting up security policy with respect to transaction systems such as hiring an independent consulting unit to assess the technical gaps and weaknesses of Internet Banking and Mobile Banking systems to ensure security safety and confidence for customers upon using ebanking services of Eximbank. (6) Eximbank established IT development strategy for 2015 to 2020 with the main development objectives as follows: - To successfully implement new Core Banking system and complete the construction of modern Data center meeting international standards. To accomplish the transformation of existing IT system to a new one build strong IT infrastructure serving as the premise for breakthrough development in IT technologies and services. - With the orientation of keeping on developing a strong IT system to support retail business strategies through differentiates and diversification of products and services intensification of application level of banking technology and reinforcement of customer relations through data analysis as well as technology application to optimize business costs. On the basis of modern IT platform to improve the system of applications in the direction of serving for business development demands administration and governance risk management and compliance; enhancing ebanking product and service quality; increasing customer satisfaction index; and raising the number of existing customers using Eximbank's electronic banking services. 53

54 - To promptly perfect the safety and security system in technical aspect enhance the risk management and compliance in the field of security and safety and protect the engineering infrastructure safety against risks from attacks of high-tech crimes. - To perfect the organizational structure standardize internal procedures related to IT system to improve the management efficiency and transparency in Eximbank's IT system management. The achievements of IT system in 2014 serve as the premise to move forward with the IT development strategy for 2015 to 2020 and contribute to the business operations in accordance with the Bank's general strategy. III.3.4. Training and Human Resources Development In a market economy competition by products and services is only one side of the issue. The important and core issue of competition having vital meaning to the bank's operations is the competition by personnel and wisdom. Therefore the training for human resources has always been a matter of Eximbank's interest. Eximbank's training activity aims at fostering and enhancing employees' skills and operational competence updating with new knowledge about modern banking experiences of international administration and governance to meet increasing requirements in banking activities. There are several levels of training at Eximbank such as: Training managing officers of various levels training operational staff and training new employees. Besides Eximbank also encourages and motivates officers and staff to get training by themselves or assigns them for training for enrichment of skills and operational competence in many forms such as sending employees to short and long-term training courses domestically and overseas organized by institutes universities and strategic partner. Eximbank also supports part of tuition fee and facilitates in terms of time for employees to participate in postgraduate and second-degree training courses related to their profession. In 2014 Eximbank's training activity focused on 02 key areas as Training to Standby Branch and Transaction Office Directors and Training to sales officers. Additionally the coaching and fostering on operations and update of new knowledge had received much interest. Training results were as follows: Eximbank held 144 training classes with 4355 learners accounting for 76.5% of the staff and officers entitled to training. In the forthcoming time Eximbank's training activity will continue to aim at training standby 54

55 Branch and Transaction Office Directors Operational Department Managers at Branches intensively training sales officers in order to improve skills and operational competence for employees and creating the succeeding human resources. Besides SMBC's support in training activity shall also be taken advantage to learn and grasp modern banking skills and operations to serve for Eximbank's business and development in future. III.3.5. Cooperation with Foreign Strategic Shareholder With its commitment to make long-term investment in Vietnamese market in 2014 SMBC always accompanied and supported Eximbank in funding and training helped to increase risk management and corporate governance. In order to promote each party's advantages SMBC and Eximbank has established Vietnamese Japanese enterprises matching mechanism referred counterparties and provided financial services to customers. Persistent with the objective of supporting Eximbank to expand Retail Banking market share and further boost corporate banking business SMBC has seconded and assigned officers to work at Eximbank to along with Eximbank develop information technology infrastructure research for innovation of key consumer loan products cash management service and strengthen export-import financing products being Eximbank's traditional advantage. III.3.6. International Relations In 2014 Eximbank's international relation activities were carried out in way of proactively reviewing and reinforcing the cooperation with long-term partners while continuously searching for proposing and conducting cooperation with new partners in various markets especially emerging ones. As at end of 2014 Eximbank had relations with nearly 900 Swift codes of banks/banks' branches in nearly 80 countries worldwide. With such a large correspondent bank network and thanks to the proper and reasonable policy as aforementioned in 2014 Eximbank received significant assistance from valued partners in credit limits operations training etc. contributing to enhance its financial capabilities and ability of products and services supply of Eximbank to meet diversified needs of customers. Besides with advantages as an export import bank in recent years more and more local and foreign banks have approached and requested Eximbank to act as the confirming bank for their commercial transactions affirming rising prestige and position of Eximbank in international settlement activities. 55

56 In addition to enhancing cooperation with partners as international banks and organizations Eximbank also paid special attention to brand name promotion in international markets by applying for awards of prestigious international magazines and organizations. Thanks to that in 2014 Eximbank honorably received the Best Bank in Vietnam award for the second consecutive year by Euromoney a leading magazine of Euromoney Institutional Investor PLC which is based in London. This award has encouraging meaning making Eximbank more steady and confident to further bring its brand name forward. III.4. Business plan for 2015 The Vietnamese economy in 2015 is forecast to keep facing with challenges so the objectives set out by the National Assembly include: strengthening macro-economic stability unwinding difficulties for business activities; strongly carrying out strategic breakthroughs restructuring the economy in association with transforming the growth model and improving efficiency and competitiveness so as to achieve higher growth than in According to which some key targets are as follows: Gross Domestic Product (GDP) to rise by around 6.2% Consumer Price Index (CPI) by about 5% total export turnovers by about 10% trade deficit against export turnovers to be approximately 5% and total investment funds for social development to be equal to 30% of GDP. State Bank of Vietnam defines its objectives and management solutions towards monetary policies in 2015 in way of actively and flexibly regulating monetary policy instruments to control inflation stabilizing the macro economy supporting economic growth at a reasonable level ensuring liquidity safety of credit institutions; managing interest rates and exchange rates in line with macro-economic progresses; and expanding credits in parallel with credit quality control. Concretely: - Total means of payment to rise by about 16-18% - Outstanding credits to increase by about 13%-15% and be adjusted in line with actual situations. - Carry out measures of credit regulation in way of expanding credits in parallel with controlling credit quality; focus on unwinding difficulties for enterprises in approaching credit funds to serve for business and production development; keep on implementing programs of attaching bank credits to economic industry policies shifting credit structure to concentrate loans on prioritized sectors as per the Government's guidelines. - Attach bad debt handling to banking system restructuring ensuring strict compliance with the roadmap of the Plan of restructuring the Credit Organization system for period as approved by 56

57 the Government's Prime Minister. Starting from the State Bank's orientations in regulating the monetary policy in 2015 and Eximbank's business performance in 2014; upon assessing its own internal strengths as well as advantages keeping consolidating and enhancing its position in both domestic and international financial markets the Board of Management has defined the focused targets and missions in 2015 as follows: * Plan of liabilities fund use Unit: billion VND Target 2015's plan Increase against 2014 Fund mobilization Credit exposure % 11% * Plan of service development (international settlement inward overseas remittance and FX trading volumes number of cards card payment volumes card using volumes) to increase by 20%-30% compared to * Plan of profitability - Profit before tax: 1000 billion VND. - Tentative dividends: 4.8%. 57

58 IV. EVALUATIONS OF THE BOARD OF DIRECTORS ON THE BANK'S OPERATIONS

59 IV.1. Evaluations of the Board of Directors on operational aspects of the Bank In 2014 the State Bank flexibly and simultaneously regulated its monetary policy instruments to fit with the objectives of controlling inflation stabilizing the macro-economy supporting economic growth at a reasonable level and ensuring liquidity of credit institutions and the economy in line with the Government's guidelines. Average lending interest rate kept going downward; credit growth reached the target as set out in the plan. Credit structure moved in a positive direction focusing on production and business areas especially prioritized ones as directed by the Government. Average deposit rate decreased by 1.5%-2% p.a. and lending rate decreased by about 2% p.a. causing average rates lower than those in period. Fund mobilization increased by 15.15% FX market basically remained stable the process of restructuring the credit institution system was going forward in accordance with the approved Plan and bad debt settlement solutions had been drastically deployed etc. The monetary policy had close link with other macro-economic policies especially the fiscal one ensuring the objectives of inflation control macro-economic stabilization and reasonable support to economic growth. On its own side Eximbank strictly followed the State Bank's guidelines actively shared difficulties with borrowers through cutting down lending rates offering different credit packages to facilitate enterprises to approach funds at preferential rates or concentrating credit funds on prioritized areas etc. In addition Eximbank continued to enhance management capabilities strengthen the organization model structure the mobilized funds in a more stable and sustainable way tightly control credits and be determined in bad debt resolution perfect policies procedures and regulations with respect to all operational areas to maintain stable businesses and ensure liquidity and operating safety. Total assets: billion VND fulfilling 95% of the plan plan Funds raised from economic entities and individuals: billion VND fulfilling 101% of the Total credit exposure: billion VND fulfilling 100.7% of the plan Of which loan balance: billion VND fulfilling 97% of the plan Non-performing loans: 2144 billion VND taking up 2.46% of total loan balance Profit before tax: 69 billion VND fulfilling 3.8% of the plan ROA: 0.03% ROE: 0.39% 59

60 IV.2. Evaluations of the Board of Directors on operations of the Board of Management Business performance in 2014 was noteworthy result achieved by the Management in executing the guidelines of the Board of Directors. Eximbank had fulfilled some basic targets of which the most important ones were to maintain stable and sustainable customer base and business operation. During last year under the context of tough business environment Eximbank's Board of Management endeavoured to bring the whole network to overcome the obstacles sustain and stabilize business activities which was reflected via some operating results such as: targets of fund mobilization and loan balance keep increasing compared to 2013; total funding structure becoming more and more sound and stable whereby the percentage of funds mobilized from the primary market over the total assets surged to 63% as at end of 2014 from 49% in 2013 while funds mobilized from the interbank market declined to 25% in 2014 from 39% in 2013; credit growth being boosted through approaching large projects promoting the strengths of corporate lending; customer base being consolidated and amplified on the basis of increasing retail loan balance by setting up suitable products and professional sales force; bad loan handling being pushed and NPL ratio being controlled at below 3%; banking services also gaining good growth rate of more than 20% compared to 2013; business model being transformed to fit with economic conditions with such solutions as: restructuring the organization model from Head Office to branches streamlining operating apparatus focusing resources on sales force; improving operating quality of transaction offices for better competitiveness to expand market shares etc.; and gradually remedying outstanding issues to take firm and solid steps. IV.3. Plans and orientations of the Board of Directors The Board of Directors has agreed with the Board of Management on the business plan for 2015 with key operating targets being: total assets to reach billion VND rising by 12% compared to 2014; funds raised from economic entities and individuals to reach billion VND rising by 24% compared to 2014; credit exposure to reach billion VND rising by 11% compared to 2014; NPL ratio to remain under 3%; and profit before tax to achieve 1000 billion VND. In order to achieve such objectives Eximbank defines for 2015 the orientations of keeping perfecting the business model enhancing financial capabilities developing infrastructure technology improving the quality of senior managers and staff focusing on customer service quality enhancement through improving service quality servicing attitude as well as customer care policy. By such Eximbank should carry out the following solutions: 60

61 - Set up suitable policies on products and interest rates to facilitate business units to grow loan balance right from the early year; pay special attention to small and medium enterprise and retail customer segments. - Boost up service payment operation through some activities as follows: developing new products and services; raising income from major service operations like international settlements card etc. - Improve the operation quality of AMC to ultimately and effectively exploit the debt set-off assets; and realize the same for fund recovery. - Promote technological developments and facilitate to develop hi-tech products and services which are breakthrough and distinctive of Eximbank. - Continue implementing the projects of corebanking replacement and modern data center construction meeting international standards. - Expand the operation network in correspondence with the State Bank's stipulations and restructure the existing network to increase the performance of branches and transaction offices. - Continue investing in infrastructure to serve for business activities on grounds of enhancing Eximbank's presence at major economic regions within the country. - Continue establishing and perfecting the reward and treatment policies to employees in order to attach their benefits with the business results achieved. - Strengthen training especially training to leaders and sales officers. - Establish Operational Division in order to standardize the Bank's operational procedures according to domestic and international standards. - Restructure the organization model from Head Office to branches in way of refining the operating apparatus improving productivity and rotating personnel for supplementation to the sales forces. 61

62 V. CORPORATE GOVERNANCE

63 V.1. The Board of Directors V.1.1. Members and structure of the Board of Directors The Board of Directors consists of 9 members: 1 Chairman 6 Vice Chairmen and 2 members. Mr. Le Hung Dung Board Chairman Mr. Le Hung Dung was born in 1954 in Tan My Cho Moi An Giang. He used to study at Hanoi Foreign Language University Prague Foreign Language University (Czech) and graduated with Advanced Level in Politics from Ho Chi Minh City Officer School (Southern National Academy of Politics and Public Administration) with intermediate level in Political theory and youth mobilization from Hanoi Central Union School. From 1986 to 2003 he used to take the positions of Deputy Director of Festival Restaurant (Vietnam Youth Tourism Centre) Director of Vietnam Youth Tourism Centre Chairman of Vietnam Youth Tourism Single Member Limited Liability Company. From August 2003 to April 2014 he was Secretary of Party cell and Chairman of the Board of Members of Saigon Jewelry Company Limited (SJC). He was appointed Chairman of the Board of Directors of Eximbank in April 2010 and has held this position until now. 63

64 Mr. Ha Thanh Hung Standing Vice Board Chairman Mr. Ha Thanh Hung was born in 1955 in Tien Giang and has Bachelor degrees in Economics and Electronics Engineering. He used to be Director of Investment Planning Department of The Voice of Ho Chi Minh City People Director of Business Planning Department of Imex Co. Deputy General Manager in charge of Sales of Tenimex Joint Stock Company Chairman and General Manager of TIE Joint Stock Company Vice Chairman of the Board of Directors of Samsung Vina Electronics Co. Ltd and member of the Board of Directors of Eximbank. He is now Standing Vice Chairman of the Board of Directors of Eximbank cum Chairman of the Board of Directors of Song Viet Joint Stock Company. Mr. Naoki Nishizawa Vice Board Chairman Mr. Naoki Nishizawa was born in 1957 with Japanese nationality and is a Master of Business Administration at Harvard University USA and a Bachelor of Law at Kyoto University Japan. He is the representative of the strategic partner Sumitomo Mitsui Banking Corporation (SMBC) in Eximbank. He used to be Deputy General Manager of Tokyo V-VI Corporate Banking Department of SMBC Tokyo Japan; Senior Vice President and then Executive Vice President of Asia-Japanese Banking Division; Executive Vice President of Planning Department of Manufacturers Bank Los Angeles USA; and Executive Vice President of Planning Department of SMBC Tokyo Japan. He is currently Vice Chairman of the Board of Directors of Eximbank. 64

65 Mr. Pham Huu Phu Vice Board Chairman cum Chief Executive Officer Mr. Pham Huu Phu was born in 1959 in Thua Thien Hue and has Bachelor degrees in Economics. He used to be Chairman of Sai Gon Asia Finance Finance and Investment Joint Stock Company Standing Vice Chairman of the Board of Directors of Sai Gon Thuong Tin Commercial Joint Stock Bank Board Chairman of Sai Gon Thuong Tin Commercial Joint Stock Bank and is now Vice Board Chairman cum Chief Executive Officer of Eximbank. Mr. Dang Phuoc Dua Vice Board Chairman Mr. Dang Phuoc Dua was born in 1960 in An Giang and is a Bachelor at Hanoi Foreign Language University and a Master of Business Administration at Vietnam National University Hanoi. He used to be Deputy Director of An Giang Province Police's General Production and Trading Company Director of An Giang Province Police's Life Serving Company LISCO Director of Natural Resources Export and Import Company Corimex Vietnam Science Institute Director of Natural Resources Export and Import Technical Materials Company Vietnam Science Institute Director of Technical Materials Export and Import Company Vietnam Academy of Science and Technology Board member of Dong A Joint Stock Commercial Bank Board member of Phu Nhuan Jewelry Joint Stock Company General Director of Technical Materials Export and Import Joint Stock Company Vice Board Chairman of Dong A Joint Stock Commercial Bank Board member of Dong A Joint Stock Commercial Bank. He is currently Vice Chairman of the Board of Directors of Eximbank cum Board Chairman of Viet Tin Investment and Trading Joint Stock Company. 65

66 Mr. Nguyen Quang Thong Vice Board Chairman Mr. Nguyen Quang Thong was born in 1963 in Kien Giang. He is a Bachelor of Economics. He used to hold such positions as: member of the Board of Supervisors of Eximbank and member of the Board of Directors of Eximbank. He is currently Vice Chairman of the Board of Directors of Eximbank; simultaneously Vice Chairman of the Board of Directors of Bao Long Insurance Company of Exim Real Estate Joint Stock Company (Eximland) of Vinatexland and of Viet Long Securities Investment Fund Management Corporation. Mr. Hoang Tuan Khai Vice Board Chairman Mr. Hoang Tuan Khai was born in 1962 in Hanoi. He graduated from Foreign Trade University with major in Foreign Trade Economics and studied Economics management in Holland. He used to be Deputy Director and then Director of Vietnam National General Export Import Joint Stock Company No.1. He is now Vice Board Chairman of Eximbank simultaneously Chairman cum General Manager of Vietnam National General Export Import Joint Stock Company No.1 Chairman of the Board of Directors of De Nhat Development Company and a representative of capital of Eximbank and Board member of Vinaconex Investment and Tourism Development Joint Stock Company. 66

67 Mr. Dang Anh Mai Board member Mr. Dang Anh Mai was born in 1966 and graduated with Master's degree from Duke University USA. He used to hold such positions as Senior Officer Deputy Department Manager and then Department Manager of International Cooperation Department of the State Bank of Vietnam Expert of World Bank in the U.S. Department Manager of International Cooperation Department of the State Bank of Vietnam Deputy Director of International Cooperation Department of the State Bank of Vietnam. He is currently a member of the Board of Directors of Eximbank. Mr. Lawrence Justin Wolfe Independent Board member Mr. Lawrence Justin Wolfe was born in 1946 with U.S. nationality. He has more than 40 years' experience in banking and finance and used to hold such important positions as Branch Manager of Chase Manhattan Bank Thailand; Private Banking International Manager of Chase Manhattan Bank New York; Credit and Marketing Manager of Chase Manhattan Bank-Osaka Branch; Credit Department Manager of Deutsche Bank-Taipei Branch; Corporate Banking Manager of Deutsche Bank-Singapore Branch; Chief Country Officer of Deutsche Bank-Jakarta Branch Indonesia; Chief Country Officer of Deutsche Bank-Ho Chi Minh City Branch; Business Development Director of Dong A Securities Company; and Head of Transaction Banking Division of Techcombank. He is currently an independent member of the Board of Directors of Eximbank. 67

68 V.1.2. Changes in Board members 2014's Annual General Meeting of Shareholders elected 3 additional members to the Board of Directors of Eximbank being Mr. Pham Huu Phu Mr. Dang Phuoc Dua and Mr. Le Hung Dung (Mr. Le Hung Dung was re-elected in personal capacity not representing for the contributed capital of Saigon Jewelry Company Limited SJC). V.1.3. Share ownership ratio of Board members No. Full name Position No. of shares personally owned Personal shareholding ratio (%) Representative of entity shareholder No. of shares of the entity Entity's shareholding ratio (%) 1 Mr. Le Hung Dung Board Chairman Mr. Ha Thanh Hung Mr. Naoki Nishizawa 5 Mr. Nguyen Quang Thong Standing Vice Board Chairman Vice Board Chairman Mr. 6 Vice Board Hoang Tuan Khai Chairman 7 Mr. Pham Huu Phu Mr. Dang Phuoc Dua Vice Board Chairman cum CEO Vice Board Chairman Vice Board Chairman Sumitomo Mitsui Banking Corporation Vietnam National General Export Import Joint Stock Company No Mr. Dang Anh Mai 9 Mr. Lawrence Justin Wolfe Board Member Independent Board member

69 V.1.4. Operations of the Board of Directors The management and guidelines of the Board of Directors under authorization of the General Meeting of Shareholders towards the Board of Management and the Bank's business activities have been oriented by the Board of Directors in 05 strategic programs which have been implemented right at the start of the V th tenure and so far certain results have been achieved as follows: 1.Program 1 - Credit development closely linked with risk management The Board of Directors always pays attention to develop credit sustainably in strict compliance with prevailing regulations; credit approval authorities have been reasonably allocated to each level under tight supervision to ensure both credit growth and minimization of risks to the possible extent. With the policy of transparency and law compliance in all operations all overdue and bad debts are reported to the regulator the State Bank of Vietnam and the Board of Directors has directed the Board of Management to make weekly reports to the Risk Handling and Overdue Debt Prevention Council to consider resolving and passing measures of set-off foreclosure interest waiver/reduction sale of NPLs to VAMC etc. to strengthen the Bank's credit quality and not to disguise figures of overdue or bad debts. Thanks to that Eximbank's balance sheet is always honest and objective and reflects actual nature of its business activities and control of bad debts arising during the course of business. 2.Program 2 Operation network and infrastructure development As to date Eximbank has 208 business units spreading in 22 provinces and cities nationwide including 44 branches 163 transaction offices and 01 savings fund. Within the scope of the Program the Board of Directors has agreed to hire international consultants to design the work of Eximbank's Head Office Eximbank Tower at 7 Le Thi Hong Gam District 1 with the most possible construction coefficients. The company opted by Eximbank's Selection Council comprising of key representatives of Department of Planning and Architecture Department of Construction Vietnam Architect Association HCMC Architect Association is a reputational designer in Japan and the world namely Nikken Sekkei and the project manager is Turner (US) which has managed the construction and execution of famous construction works in the world and Vietnam with nearly absolute safety. While awaiting for completion of Eximbank Tower implementation procedures the Board of Directors has instructed the Board of Management to cut down on lease and increase more ownership of branch and transaction office premises. So far the network of Eximbank's transaction units has been built or leased in good and breeding locations which are attractive to customers. In order to make supplementation to the current network of branches and transaction offices the Board of Director has guided the Board of Management to keep developing IT-based transaction systems 69

70 to offer services directly to customers such as Internet Banking and Mobile Banking etc. which are among new tendencies of modern banking. 3. Program 3: Human resources training and development officer policy Personnel tasks such as recruitment planning training professional development etc. are always attached with special importance in compliance with regulations procedures and law stipulations in the entire network of Eximbank. Eximbank has also taken courage to restructure its HR mechanism since early 2013 in the direction of raising more direct sales officers reducing intermediary administrative officers receiving and expanding qualified resources from other entities etc. to increase productivity and improve the Bank's performance; ultimately apply proper salary and bonus regimes based on performance to create fairness in treatments internal stimulus policies and preferential house loans for staff officers etc. Thanks to which the working spirit of the Bank's labor force has been further encouraged. With the policy of taking human resources as one of the most significant elements to the Bank's success the Board of Directors has made all favorable conditions to enhance staff quality in all over the network by on-site training cooperating with prestigious training units to hold fostering and intensive courses for staff and officers especially standby branch and transaction office directors to well prepare for successive resources. And assistance from the foreign strategic partner Sumitomo Mitsui Banking Corporation has also been taken advantage to further strengthen operations of the Training Center. So far Eximbank has developed a cadre of qualified professional highly experienced and skilful key officers which is the valuable resource and foundation for the Bank's growth. 4. Program 4: Information technology system development With an aim of building a versatile bank on grounds of state-of-the-art technologies satisfactory to the Bank's business development strategies in 5 years of carrying out the program of information technology development for management ( ) Eximbank has reached the accomplishments as follows: 4.1.System administration: For development of an IT administration model meeting growth requirements and international standards Eximbank has set up IT Steering Committee Banking Technology Modernization Committee etc. gradually completed the organization structure established E-banking Department to promote the development of e-banking services developed and standardized information system-related internal procedures to improve the effectiveness and transparency in daily management of the Bank's information system. 70

71 4.2. Development of IT systems: Continue to implement the Korebank replacement project to establish solid technological platform which is a chance to restructure the IT system transform the current IT system model into a new one create differentiates in products and services shorten the time of launching products to the market meet international standards and enhance competitiveness. Carry out to build up a state-of-the-art Data Center which satisfies the State Bank's regulations and reaches international standards. 5. Program 5: Marketing brand promotion charity social activities for community Eximbank has always focused on and reserved a remarkable resource to invest in marketing and brand promotion through different activities such as sponsoring large programs or events regularly advertising new products etc. Procure and hire a design consultant to revise the Bank's logo and standardize its set of brand identification including uniform key colors in business designs and printouts etc. Thanks to which the brand name of Eximbank has made good recognition to the customers and the public and its prestige as well as brand value have been raised to a new height. In addition the Bank has always insisted on performing its social responsibilities towards the community giving support to social charity programs and contributing to create a humane and sociable image of Eximbank. V.1.5. Operations of Councils and Committees under the Board of Directors The 2014 General Meeting of Shareholders on 28/4/2014 elected 03 additional Board members. After that the Board of Directors had met to assign titles for the members and reviewed the personnel and operating functions of the Councils and Committees under the Board of Directors to better assist business activities. At present Councils and Committees under the Board of Directors consist of: Central Credit Council: hold meetings to timely resolve credit profiles exceeding the approval authority of Head Office Credit Council to quickly satisfy customers' demands. Financial Investment Council: analyze assess and consult the Board of Directors on financial investment policies and regulations. Suggest to the Board of Directors for tackling of some issues and making decisions regarding investments in new bonds restructuring of equity investments previously executed in a more effective way and considering strengthening cooperation with investment counterparties for higher benefits etc. Fixed Asset Investment and Liquidation Council: analyze assess and consult the Board of Directors on fixed asset investments and disposals of Eximbank. Risk Handling and Overdue Debt Prevention Council: meet every week to carry out regulations 71

72 of the State Bank then consider and propose policies for business units to review and handle overdue and non-performing loans to maintain NPL ratio at the lowest possible level in compliance with regulations of the State Bank. Resolve documents of debt restructuring debt set-off asset purchase interest rate waiver or reduction which are over the authority of Credit Council or regions; sell loans to VAMC; start proceedings or report to legal agencies on incidents; discuss and provide for guidelines and policies to push up the debt settlement process. Emulation Reward and Discipline Council: study and keep abreast of operating conditions and staff quality to timely consult the Board of Directors on discipline or reward according to regulations. Development Strategy Committee: The Committee's members regularly study and stay abreast of the information to conduct discussions with and provide strategic consultations to the Board of Directors in their instructions. Personnel Committee: consult the Board of Directors on personnel policies in the network; conduct planning of all levels to prepare for successive managing officers and employees for the development and expansion of the operating network; arrange effective working mechanism; give advice to the Board of Directors and Board of Supervisors on anticipated persons to be additionally elected as members of the Board of Directors members of the Board of Supervisors for the Vth term ( ); and consult on development of the Regulations on the organization and operations of Councils and Committees under the Board of Directors. Risk Management Committee: meet every month to discuss on debt restructuring and classification; assess the credit portfolio with respect to corporate bonds property loans mid and longterm loans etc.; plan to implement the draft Risk Management Circular of the State Bank; plan to implement the official dispatch 1601 regarding Basel II of the State Bank; control over credit risk limits and loans to groups of customers; and evaluate the impacts of Circular No. 36/2014/TT-NHNN. Alliance Committee: meet regularly to guide Alliance Department and operational divisions to promote business association and cooperation programs between SMBC and Eximbank. With its commitment of long-term investment in Vietnam in 2014 SMBC has been always accompanying and assisting Eximbank in terms of capital education and training increase of risk management capabilities and corporate governance. So as to deploy mutual strengths SMBC and Eximbank have set up different mechanisms of matching Vietnamese Japanese enterprises referring counterparties and providing financial services to two sides' customers. Besides SMBC has also seconded and assigned several officers to work at Eximbank in order to help the Bank develop information technology infrastructure and study 72

73 to innovate products especially export import financing ones which have been Eximbank's traditional advantage. Training Council: approve development strategies training plans local and overseas training programs assign representative to work with joint-ventures and associates in carrying out and developing Eximbank's training tasks; give consultation on the training programs for branch directors and transaction office managers in the network and financial regimes for training build up the lecturing cadre and assess training quality; and participate in discussing the training program designed by SMBCLS for Eximbank. Operation Network Planning and Development Committee: consult the Board of Directors to plan policies as well as restructure the operating network to fit with Eximbank's business conditions from time to time. Banking Technology Modernization Committee: advise the Board of Directors on technology development strategies; establish technology development strategies set up and carry out technology modernization projects; and comply with Eximbank's mid and long-term development strategies. Activities of the Banking Technology Modernization Committee aim at directing the technology development strategies on the right track ensuring stable and sustainable operation of the banking technology systems and quick and efficient support for both business and management tasks. The Committee has in cooperation with IT Division and Card Center assessed the current status of information technology application reviewed the investment in modernization-related projects to prepare an overall report to the Board of Directors. Especially support the Board of Management and IT Task Force Team in the corebanking and data center projects. Besides the Banking Technology Modernization Committee has assisted the Board of Directors in appraising IT projects raised directions on information technology in management and business support; and helped the Board of Management in preparing IT plan for

74 V.2. The Board of Supervisors V.2.1 Members and structure of the Board of Supervisors Mr. Dang Huu Tien Chief Supervisor Mr. Dang Huu Tien was born in 1962 in Hanoi. He graduated from Master of Business Administration (MBA) course of Columbia University and also holds a Master Degree in Economics of University of Commerce Bachelor Degree in Economic Planning and Bachelor Degree in Foreign Trade Economics. From 1998 to 2010 he has been a specialized member of the Board of Supervisors of Eximbank. He has lots of experience in treasury credit accounting-auditing inspection and control. His current position at Eximbank is Chief Supervisor of the Board of Supervisors. Mr. Nguyen Hong Long Specialized member of the Board of Supervisors Mr. Nguyen Hong Long was born in 1964 in Hoa Binh (Hanoi). He graduated from the Master of Business Administration (MBA) course of Southern Columbia University US. He also holds a Master Degree in Economics of the University of Commerce and a Bachelor Degree in Economic Planning. He is currently doctoral researcher at Southern Columbia University. He is a financial expert with lots of experience in banking-finance and corporate governance. He used to be a major lecturer for the Chief Accountant Chief Financial Officer-CFO and Chief Executive Officer-CEO Training Programs; Director of Economic Research Department at Ho Chi Minh City Economically Applied and Informatics Research Institute; Chairman of Standard Securities JSC. Before being elected into the Board of Supervisors of Eximbank (in April 2010) he was a standing member of the Development Strategy Committee of Eximbank and simultaneously a member of Eximbank's Board of Consultants. He is currently a Specialized Member Vice Chief of the Board of Supervisors of Eximbank. 74

75 Mr. Tran Le Quyet Specialized member of the Board of Supervisors Mr. Tran Le Quyet was born in 1981 in Quang Binh and has a Bachelor's degree in Economics with major in Accounting-Auditing. In April 2014 he was elected to be member of the Board of Supervisors of Eximbank for tenure. He has lots of experiences in banking especially credit risk management and banking governance. He has more than 10 years of experiences in credit operation and used to be Deputy Director of Head Office Credit Risk Management Department in Ho Chi Minh City of JSC Bank for Foreign Trade of Vietnam and Deputy Director of JSC Bank for Foreign Trade of Vietnam Tien Giang Branch. His current position at Eximbank is Specialized Member Vice Chief of the Board of Supervisors. Mrs. Nguyen Thi Phung Specialized member of the Board of Supervisors Mrs. Nguyen Thi Phung was born in 1954 in Tien Giang. She is a Bachelor of Banking-Finance. In July 2010 she was elected to be member of the Board of Supervisors of Eximbank for tenure. She has intensive experience in banking especially in treasury - credit internal inspection and control and banking governance. She used to be Vice President cum Trade Union President of Eximbank through the period of ; member of the Board of Directors and Vice Chairman of the Board of Directors of Viet A Commercial J.S. Bank ( ). She is currently a specialized member of the Board of Supervisors of Eximbank. 75

76 V.2.2. Changes in the members of the Board of Supervisors 2014's Annual General Meeting of Shareholders elected one additional member to the Board of Supervisors for tenure being Mr. Tran Le Quyet which was approved by the State Bank. Therefore the structure of the Board of Supervisors of Eximbank changed from 3 to 4 members including 01 Chief Supervisor 02 Vice Chief Supervisors and 01 Specialized Member specifically: No. Full name Position Remarks 1 Mr. Dang Huu Tien Chief Supervisor Re-elected for tenure 2 Mr. Nguyen Hong Long Specialized member (Vice Chief Supervisor) 3 Mr. Tran Le Quyet Specialized member (Vice Chief Supervisor) Elected for tenure Elected for tenure 4 Mrs. Nguyen Thi Phung Specialized member Elected for tenure The Board of Supervisors has the Board of Internal Auditors as its assisting body (in 2014 this Board had 68 people). V Shareholding ratio of the members of the Board of Supervisors No. Full name 1 Mr. Dang Huu Tien 2 3 Mr. Nguyen Hong Long Mr. Tran Le Quyet 4 Mrs. Nguyen Thi Phung Position currently held at the CI Chief Deputy Chief Deputy Chief Personal share holding ratio Member Name of entity shareholder JSC Bank for Foreign Trade of Vietnam Entity's shareholding ratio (%) Remarks (Mr. Tran Le Quyet was authorized to represent shares (of the total number of shares) of Vietcombank at Eximbank V.2.4. Operations of The Board of Supervisors The Board of Supervisors is the body supervising the Bank's operations in order to have an accurate assessment of the Bank's business activities and actual financial status performing internal auditing controlling and evaluating the compliance with law stipulations internal regulations the 76

77 Bank's Charter and the Resolutions and Decisions of the General Meeting of Shareholders and the Board of Directors. The Board of Supervisors closely coordinated with the Board of Directors and the Board of Management to perform its functions and duties; attended all meeting sessions of the Board of Directors meetings among the Board of Directors - Board of Supervisors - Board of Management monthly meetings and preliminary/final conferences. In 2014 the Board of Supervisors met in 21 sessions (of which there were 17 extended sessions with the Chief of the Board of Internal Auditors) to discuss implement and perform its functions and duties. In addition specialized members of the Board of Supervisors directly participated and chaired 51 meeting sessions with auditing teams and audited units to discuss consider conclude and give instructions on carrying out planned internal audit independently - objectively (to ensure precise/honest reflection of the performance of audited units) as well as issues to be clarified with internal audit teams. The Board of Supervisors used its Internal Auditor mechanism to conduct periodical and unexpected risk-oriented internal audit combined onsite and remote audits via the internal information system (through the internal information system the Board of Supervisors executed remote supervision over major business activities at the units in Eximbank's network). The subjects audited were Branches Transaction Offices subsidiary Divisions Centers and Departments/Sections at Head Office. The internal inspection and control quality has been increasingly improved and enhanced. The contents of internal audit focused on operational procedures and the inspection and control systems to detect prevent and restrict risks in operations and ensure the compliance with regulations of the State regulators and Eximbank. In the fiscal year 2014 the Board of Supervisors assigned 51 working teams (members of the Board of Supervisors directly instructing and presiding over the meetings with auditing teams and audited units) to the belonging units to perform internal audit on a planned or unexpected basis specifically 11 tranches at the Head Office (including 06 tranches of review and 01 tranche of audit with respect to information technology) 38 tranches at Eximbank's Branches (141 belonging transaction offices) and 02 audit tranches at Eximbank AMC and Eximbank Debt Settlement Center; 02 tranches (parallel with Independent auditor) of appraisal and review over the Financial statements of 2013 and Interim Financial statements of 2014 of the Bank. Besides in 2014 the Board of Supervisors and Board of Internal Auditors also conducted audit tranches at the request of Banking Inspection and Supervision Agency of the State Bank of Vietnam. 77

78 V.3. Transactions remunerations and interests of the Board of Directors the Board of Supervisors and the Board of Management V.3.1. Income remunerations and other interests of the Board of Directors and the Board of Supervisors No. 2014's General Meeting of Shareholder approved the total remunerations salaries and allowances of the Board of Directors and Board of Supervisors in 2014 to be 1.5% of the profit after tax. V.3.2. Information on transactions of Eximbank's shares and other transactions made by the related persons of the Board of Directors the Board of Supervisors and the Board of Management. 1 Through the inspection and audit the working teams made a total of 7042 recommendations for audited units to remedy/adjust/supplement mistakes so as to restrict risks in operations. Of which there were 66 recommendations relating to procedures and regulations for Head office so as to contribute to prevent risks and ensure a stricter operation. For the recommendations given by the Banking Inspection and Supervision Agency of the State Bank of Vietnam the Board of Supervisors and Board of Internal Auditors regarding strict handling of responsibility of the individuals having intentional misconduct or violation of credit and internal governance policies of Eximbank and the State Bank in 2014 the Board of Directors and the Management had received processed corrected and remedied the same and now the bank's leaders keep on executing them. Transaction performer Song Viet Joint Stock Company Relationship with internal shareholders/ major shareholders Mr. Ha Thanh Hung Chairman of the Board of Directors of Song Viet Joint Stock Company Number of shares held at the beginning of the year Number of shares Ratio/ charter capital (%) Number of shares held at the end of the year Number of shares Ratio/ charter capital (%) Mr. Younger brother Le Duc Anh of Mr. Le Anh Tu Vice President of Eximbank Reason for increase/ decrease (buy sell transfer rewardetc.) Sold shares (as per report No /HDQT dated 22/01/2014 of Song Viet JSC) Bought shares from 06/3/2014 to 15/5/2014; Sold shares from 03/6/2014 to 03/7/2014 (as per notice dated 02/7/2014 of Mr. Le Duc Anh) 78

79 No. Transaction performer Relationship with internal shareholders/ major shareholders Number of shares held at the beginning of the year Number of shares Ratio/ charter capital (%) Number of shares held at the end of the year Number of shares Ratio/ charter capital (%) Reason for increase/ decrease (buy sell transfer rewardetc.) 3 VOF Investment Ltd. Major shareholder Sold shares & was no longer a major shareholder of Eximbank (as per report dated 27/11/2014 of VOF). VOF further sold shares (as per report dated 10/12/2014 of VOF) V.3.3. Activities to enhance effectiveness of corporate governance Credit activities: Continuing to promote credit growth in line with the State Bank's policies and guidelines enhancing credit quality reviewing credit protfolio structure in way of focusing on safe and efficient sectors and reducing high risk ones (real estate securities etc.); concentrating on traditional areas of export import loans to companies in the list of 5 prioritized sectors of the Government etc. and pushing up SME loans and individual consumption loans to disperse risks and improve credit performance. International settlement activities: Promoting international settlement activities which have been Eximbank's strengths over the past years. Establishing International Settlement Center under the centralized model so as to improve transaction processing quality and professionalize manipulations from which to enhance productivity cut down on costs and facilitate business units to focus on selling products and increase volumes. Developing international settlement product packages including fund financing L/C issuance L/C payment foreign currency trading etc. Retail activities: Continuing to promote retail activities by setting up breakthrough solutions in retail sales reviewing personal loan products keeping abreast of market movements and customers' needs to suggest proper policies and products; expanding retail market share by strengthening to cooperate and associate with property developers units entities etc. in a deeper and wider level; and building suitable retail model qualified and professional sales staff and proper emulation and reward policies for sales officers. 79

80 Risk management: being one of the most decisive duties to the sustainable development of Eximbank. Continuing to strengthen such councils and committees as Risk Management Committee and ALCO increasing more supervision by Operational Supervision Division and cooperation among the units and strengthening the performance of Eximbank's Board of Supervisors. Defining limitations to inspect and control risks in a centralized manner. Carrying out to restructure the organization model from Head Office to branches in correspondence with business environment and operational scale in the new period in order to successfully execute the restructuring plan as approved by the State Bank and developing flexible business supporting regimes while ensuring safety and efficiency. Network expansion and brand identification: Continuing to focus on transaction network enlargement quality and distribution channel diversification to quickly raise the Bank's market shares and gradually expand its business activities outside Vietnam penetrate and compete to offer banking products and services in ASEAN and international markets. Rushing to carry out the construction of the Head Office premise at 7 Le Thi Hong Gam District 1 and the building at 55 Nguyen Chi Thanh District 5; and quickly conducting the construction of branch premises. Information technology: Continuing to develop and complete the information technology system especially the corebanking replacement project and data center project; carrying out MIS and centralized international settlement management system; and upgrading e-banking services to increase competitiveness ensuring to apply the latest payment technologies and satisfy requirements of a standard information technology infrastructure system. Training and human resource development: Training and HR development remain one of the important tasks to enhance the Bank's competitiveness. The core of HR development is recruitment training and use of human resources in an effective way together with promotion opportunities and proper treatment policies. Focusing on staff's occupational process balancing human resources in terms of age gender working duration and creating a cooperative environment which enables growth especially free deployment of personal competence and strengths. Administration and governance: Developing and completing the Committees under the Board of Directors to improve the consultations to the Board of Directors. Innovating the administration and governance methods in the whole network of the Bank continuing to restructure the organization model; focusing on directions and guidelines in a consistent strategy taking centralized control but decentralizing in decision making. Strengthening network administration capabilities of managing levels at Head Office; and improving the organization model and governance methods to meet international standards and growth pace of Eximbank. 80

81 VI. FINANCIAL STATEMENTS

82 Vietnam Export Import Commercial Joint Stock Bank Report of the Board of Management and audited consolidated financial statements 31 December 2014

83 CONTENTS General information Report of the Board of Management Independent auditors' report Consolidated balance sheet Consolidated income statement Consolidated cash flow statement Notes to the consolidated financial statements 83

84 VI. Vietnam Export Import Commercial Joint Stock Bank GENERAL INFORMATION THE BANK Vietnam Export Import Commercial Joint Stock Bank ( the Bank ) is a commercial joint stock bank incorporated in the Socialist Republic of Vietnam. The Bank was established on 24 May 1989 under Decision No. 140/CT issued by the Chairman of Council of Ministers under the name of Vietnam Export Import Bank. On 6 April 1992 the State Bank of Vietnam granted License No. 11/NH-GP to the Bank which approved its operational duration of 50 years. The Bank's principal activities are to provide banking services including mobilizing and receiving short medium and long-term deposits from various organizations and individuals; providing short medium and long-term loans to various organizations and individuals based on the Bank's nature and capacity of the capital resources; foreign exchange trading; international trade finance services; discount of commercial papers bonds and other valuable papers; settlement services and other banking services as allowed by the State Bank of Vietnam. th The head office of the Bank is located at 8 Floor Office No. L Vincom Center 72 Le Thanh Ton Street and 45A Ly Tu Trong Street Ben Nghe Ward District 1 Ho Chi Minh City. As at 31 December 2014 the Bank had one (1) Head Office fourty four (44) branches located in cities and provinces in Vietnam and one (1) representative office in Hanoi. BOARD OF DIRECTORS Members of the Board of Directors for the financial year ended 31 December 2014 and at the date of this report are: Name Mr. Le Hung Dung Mr. Naoki Nishizawa Mr. Ha Thanh Hung Mr. Nguyen Quang Thong Position Chairman Vice Chairman Vice Chairman Vice Chairman Date of appointment Appointed on 28 April 2010 Appointed on 26 January 2011 Appointed on 25 April 2013 Appointed on 20 December 2013 Mr. Hoang Tuan Khai Vice Chairman Appointed on 28 April 2010 Mr. Dang Phuoc Dua Vice Chairman Appointed on 28 April 2014 Mr. Pham Huu Phu Vice Chairman Appointed on 28 April 2014 Mr. Dang Anh Mai Member Appointed on 26 April 2013 Mr. Lawrence Justin Wolfe Member Appointed on 26 April 2013 BOARD OF SUPERVISORS Members of the Board of Supervisors for the financial year ended 31 December 2014 and at the date of this report are: Name Mr. Dang Huu Tien Mr. Nguyen Hong Long Mr. Tran Le Quyet Mrs. Nguyen Thi Phung Position Chief Supervisor Vice Chief Supervisor Vice Chief Supervisor Member Date of appointment Appointed on 28 April 2010 Appointed on 28 April 2010 Appointed on 28 April 2014 Appointed on 28 July

85 GENERAL INFORMATION (continued) BOARD OF MANAGEMENT AND CHIEF ACCOUNTANT Members of the Board of Management and Chief Accountant for the financial year ended 31 December 2014 and at the date of this report are: Name Mr. Pham Huu Phu Chief Executive Officer Appointed on 12 May 2014 Mr. Nguyen Quoc Huong Chief Executive Officer Resigned on 12 May 2014 Mr. Nguyen Quoc Huong Mr. Tran Tan Loc Mr. Dao Hong Chau Ms. Dinh Thi Thu Thao Mr. Kenji Kuroki Ms. Van Thai Bao Nhi Mr. Le Anh Tu Ms. Bui Do Bich Van Mr. Nguyen Ho Hoang Vu Mr. Le Hai Lam Mr. Nguyen Quang Triet Mr. Cao Xuan Lanh Mr. Nguyen Van Hao Mr. Nguyen Thuc Vinh Mr. Nguyen Thanh Nhung Mr. MitsuakiShiogo Mr. Nguyen Ngoc Ha Position Vice President Standing Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President cum Chief Financial Officer Vice President Vice President Vice President Vice President Vice President Vice President Vice President Chief Accountant Date of appointment/resignation Appointed on 12 May 2014 Appointed on 28 March 2007 Appointed on 26 April 2004 Appointed on 19 December 2007 Appointed on 18 July 2008 Appointed on 9 May 2012 Appointed on 6 August 2013 Appointed on 6 August 2013 Appointed on 5 September 2013 Appointed on 17 September 2013 Appointed on 25 September 2013 Appointed on 2 December 2013 Appointed on 20 January 2014 Appointed on 24 November 2014 Resigned on 28 April 2014 Resigned on 10 February 2015 Appointed on 5 September 2013 LEGAL REPRESENTATIVE The legal representative of the Bank from 1 January 2014 to 12 May 2014 is Mr. Nguyen Quoc Huong - Chief Executive Officer. The legal representative of the Bank from 12 May 2014 to the date of this report is Mr. Pham Huu Phu - Chief Executive Officer. AUDITORS The auditor of the Bank is Ernst & Young Vietnam Limited. SIGNIFICANT EVENTS DURING THE YEAR The 2014 Annual General Meeting of Shareholders held on 28 April 2014 has approved the dividend rate for the year 2013 at 4% over the charter capital entitled to dividend as regulated and also approved to elect additional two members of the Board of Directors and one member of the Board of Supervisors to meet the Bank's operational scale and regulations. In July 2014 the Bank disposed its entire investments in Eximland Corporation ( Eximland ) and accordingly Eximland is no longer an associate of the Bank. 85

86 VI. Vietnam Export Import Commercial Joint Stock Bank REPORT OF THE BOARD OF MANAGEMENT The Board of Management of Vietnam Export Import Commercial Joint Stock Bank ( the Bank ) is pleased to present its report and the consolidated financial statements of the Bank and its subsidiary as at and for the financial year ended 31December2014. THE BOARD OF MANAGEMENT'S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS The Board of Management of the Bank is responsible for the consolidated financial statements which give a true and fair view of the consolidated financial position of the Bank and its subsidiary and of the consolidated results of their operations and their consolidated cash flows for the year. In preparing those consolidated financial statements the Board of Management of the Bank is required to: select suitable accounting policies and apply them consistently; make judgments and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed by the Bank and its subsidiary subject to any material departures disclosed and explained in the consolidated financial statements; and prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Bank and its subsidiary will continue in business. The Board of Management is responsible for ensuring that proper accounting records are kept which disclose with reasonable accuracy at any time the consolidated financial position of the Bank and its subsidiary and ensuring that the accounting records comply with the applied accounting system. The Board of Management is also responsible for safeguarding the assets of the Bank and its subsidiary and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Board of Management confirmed that it has complied with the above requirements in preparing the accompanying consolidated financial statements as at and for the financial year ended 31December2014. STATEMENT BY THE BOARD OF MANAGEMENT The Board of Management does hereby state that in its opinion the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the Bank and its subsidiary as at 31December2014 and of the consolidated results of their operations and their consolidated cash flows for the financial year then ended in accordance with Vietnamese Accounting Standards and Accounting System for Credit Institutionsregulations stipulated by the State Bank of Vietnam and statutory requirements relevant to preparation and presentation of consolidated financial statements. 86

87 Reference: / HN INDEPENDENT AUDITORS' REPORT To: The Shareholders of Vietnam Export Import Commercial Joint Stock Bank We have audited the accompanying consolidated financial statements of Vietnam Export Import Commercial Joint Stock Bank ( the Bank ) and its subsidiary as prepared on 25 March 2015 and set out on pages 6 to 71which comprise the consolidated balance sheet as at 31 December 2014 the consolidated income statement and the consolidated cash flow statement for the year then ended and the notes thereto. Management's responsibility Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards Accounting System for Credit Institutions regulations stipulated by the State Bank of Vietnam and statutory requirements relevant to preparation and presentation of consolidated financial statements and for such internal control as management determines is necessary to enable the preparation and presentation of consolidated financial statements that are free from material misstatement whether due to fraud or error. Auditor's responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the consolidated financial statements whether due to fraud or error. In making those risk assessments the auditor considers internal control relevant to the Bank's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Bank and its subsidiary's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion the consolidated financial statements give a true and fair view in all material respects of the consolidated financial position of the Bank and its subsidiary as at 31 December 2014 and of the consolidated results of their operations and theirconsolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards Accounting System for Credit Institutions regulations stipulated by the State Bank of Vietnam and statutory requirements relevant to preparation and presentation of consolidated financial statements. 87

88 VI. Vietnam Export Import Commercial Joint Stock Bank CONSOLIDATED BALANCE SHEET as at 31 December 2014 B02/TCTD-HN Notes 31 December December 2013 ASSETS Cash gold and precious stones Balances with the State Bank of Vietnam Due from and loans to other banks Due from other banks Loans to other banks Derivatives and other financial assets Loans and advances to customers Loans and advances to customers Provision for loan losses Investment securities Available-for-sale investment securities Held-to-maturity investment securities Provision for investment securities Long-term investments Investments in associates Other long-term investments Provision for diminution in value of long-term investments 88

89 CONSOLIDATED BALANCE SHEET (continued) as at 31 December 2014 B02/TCTD-HN Notes 31 December December 2013 Fixed assets Tangible fixed assets Cost Accumulated depreciation Intangible fixed assets Cost Accumulated amortization Other assets Receivables Interest and fees receivable Other assets Provision for impairment of other assets TOTAL ASSETS LIABILITIES Borrowings from the Government and the State Bank of Vietnam Due to and borrowings from other banks Due to other banks Borrowings from other banks Customer deposits Valuable papers issued Other liabilities Interest and fees payable Other payables Provision for contingent liabilities and off-balance sheet commitments TOTAL LIABILITIES 89

90 VI. Vietnam Export Import Commercial Joint Stock Bank CONSOLIDATED BALANCE SHEET (continued) as at 31 December 2014 B02/TCTD-HN Notes 31 December December 2013 OWNERS' EQUITY Capital Charter capital Fund for capital expenditure Share premium Treasury shares Reserves Retained earnings TOTAL OWNERS' EQUITY TOTAL LIABILITIES AND OWNERS' EQUITY OFF-BALANCE-SHEET ITEMS Notes 31 December December 2013 Contingencies Loans guarantees Letters of credit Other guarantees Commitments Other commitments 90

91 CONSOLIDATED INCOME STATEMENT for the financial year ended 31December 2014 B03/TCTD-HN Notes Interest and similar income Interest and similar expenses Net interest and similar income Fees and commission income Fees and commission expenses Net fees and commission income Net gain/(loss) from foreign currencies and gold trading Net loss from dealing of investment securities Other income Other expenses (Loss)/gain from other income (Loss)/gain from long-term investments TOTAL OPERATING INCOME Personnel expenses Depreciation and amortization charges Other operating expenses TOTAL OPERATING EXPENSES Profit before credit loss expenses Provision for creditlosses Reversal/(provision) for contingent liabilities and off-balance sheet commitments Credit loss expenses PROFIT BEFORE TAX Current corporate income tax expense Deferred corporate income tax expense Total corporate income tax expenses PROFIT AFTER TAX Basic earnings per share (VND) 91

92 VI. Vietnam Export Import Commercial Joint Stock Bank CONSOLIDATED CASH FLOW STATEMENT for the financial year ended 31 December 2014 B04/TCTD-HN Notes CASH FLOWS FROM OPERATING ACTIVITIES Interest and similar receipts Interest and similar payments Fees and commission receipts Net receipts/(payments) from dealing of securities gold and foreign currencies Other operating income/(expense) Recovery from bad debts written-off previously Payments to employees and other operating expenses Corporate income tax paid during the year Net operating cash flows before changes in operating assets and liabilities Changes in operating assets Decreasein due from and loans to other banks Increasein trading securities Increase in derivatives and other financial assets Increase in loans and advances to customers Decrease in provisions for writing-off of loans to customers (Increase)/decrease in other assets Changes in operating liabilities (Decrease)/increase in borrowings from the Government and the State Bank of Vietnam (Decrease)/increase in due to and borrowings from other banks Increase in customer deposits Decrease in valuable papers issued Decrease in derivatives and other financial liabilities Decrease in other liabilities Reserves utilized during the year Net cash flows from operating activities 92

93 CONSOLIDATED CASH FLOW STATEMENT (continued) for the financial year ended 31 December 2014 B04/TCTD-HN Notes CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets Proceeds from disposal of fixed assets Payments for investments in other entities Receipts from investments in other entities Dividends receipts and profit shared from long-term investments Cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid to shareholders Payments for repurchase of treasury shares Net cash flows used in financing activities Net cash flows in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 93

94 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at and for the financial year ended 31 December 2014 B05/TCTD-HN 1. CORPORATE INFORMATION Vietnam Export Import Commercial Joint Stock Bank ( the Bank ) is a commercial joint stock bank incorporated in the Socialist Republic of Vietnam. Establishment and Operations The Bank was established on 24 May 1989 under Decision No. 140/CT issued by the Chairman of Council of Ministers under the name of Vietnam Export Import Bank. On 6 April 1992 the State Bank of Vietnam ( SBV ) granted License No. 11/NH-GP to the Bank which approved its operational duration of 50 years. The Bank's principal activities are to provide banking services including mobilizing and receiving short medium and long-term deposits from various organizations and individuals; providing short medium and long-term loans to various organizations and individuals based on the Bank's nature and capacity of the capital resources; foreign exchange trading; international trade finance services discount of commercial papers bonds and other valuable papers; settlement services and other banking services as allowed by the State Bank of Vietnam. Charter capital The charter capital of the Bank as at 31December2014 was VND million (31 December 2013: VND million) which was fully contributed by the shareholders. Operation network The head office of the Bank is located at 8th Floor Office No. L Vincom Center 72 Le Thanh Ton Street and 45A Ly Tu Trong Street Ben Nghe Ward District 1 Ho Chi Minh City. As at 31 December 2014 the Bank had one (1) Head Office forty four (44) branches located in cities and provinces in Vietnam and one (1) representative office in Hanoi. Subsidiary and associates As at 31December 2014 the Bank has a wholly-owned subsidiary named Eximbank Asset Management Company with charter capital of VND million which was established pursuant to Business Registration Certificate No issued by the Department of Planning and Investment of Ho Chi Minh City on 24 September The actual contributed capital of the subsidiary as at 31December 2014was VND million (31 December 2013: VND million). As at 31 December 2014 the Bank has an associate as follows: Operating License No. Nature of business Ownership by the Bank Viet Dragon Securities Corporation (VDSC) Securities activities The Bank is the founding shareholder and has significant influence on the operation of VDSC through its representatives in the Board of Directors and rights to participate in making financial and operatingpolicies of this associate. Employees Total number of employees of the Bank and its subsidiary as at 31 December 2014 was 5728 (31 December 2013: 5362). 94

95 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN FISCAL YEAR AND ACCOUNTING CURRENCY Fiscal year The Bank and its subsidiary's fiscal year starts on 1 January and ends on 31 December. Accounting currency The Bank and its subsidiary maintain their accounting records in Vietnam Dong ( VND ). However due to the Bank and its subsidiary's large scale of operations for the purpose of preparing these consolidated financial statements the amounts are rounded to and presented in millions of Vietnam Dong (). This presentation does not impact the view of the readers on the consolidated financial position of the Bank and its subsidiary and the consolidated results of their operations and their consolidated cash flows. ACCOUNTING STANDARDS AND SYSTEM Compliance with Vietnamese Accounting Standards and Accounting System for Credit Institutions The Board of Management confirms that the accompanying consolidated financial statements are prepared in accordance with the Vietnamese Accounting Standards and Accounting System for Credit Institutions. Accounting standards and system The consolidated financial statements of the Bank and its subsidiary are prepared in accordance with the Vietnamese Accounting System for Credit Institutions required under Decision No. 479/2004/QD-NHNN issued on 29 April 2004 by the State Bank of Vietnam and Circular No. 10/2014/TT-NHNN issued on 20 March 2014 by the State Bank of Vietnam supplementing and amending to Decision No. 479/2004/QD-NHNN; Decision No. 16/2007/QD-NHNN issued on 18 April 2007 by the Governor of the State Bank of Vietnam regarding the financial reporting mechanism for credit institutions and other Vietnamese Accounting Standards issued by the Ministry of Finance as per: Decision No. 149/2001/QD-BTC dated 31 December 2001 on the Issuance and Promulgation of Four Vietnamese Standards on Accounting (Series 1); Decision No. 165/2002/QD-BTC dated 31 December 2002 on the Issuance and Promulgation of Six Vietnamese Standards on Accounting (Series 2); Decision No. 234/2003/QD-BTC dated 30 December 2003 on the Issuance and Promulgation of Six Vietnamese Standards on Accounting (Series 3); Decision No. 12/2005/QD-BTC dated 15 February 2005 on the Issuance and Promulgation of Six Vietnamese Standards on Accounting (Series 4); and Decision No. 100/2005/QD-BTC dated 28 December 2005 on the Issuance and Promulgation of Four Vietnamese Standards on Accounting (Series 5). The accompanying consolidated financial statements have been prepared using accounting principles and practices generally accepted in Vietnam. Accordingly the accompanying consolidated balance sheet consolidated income statement consolidated cash flow statement and notes to the consolidated financial statements and their utilization are not designed for those who are not informed about Vietnam's accounting principles procedures and practices and furthermore are not intended to present the consolidated financial position the consolidated financial performance and the consolidated cash flows in accordance with accounting principles and practices generally accepted in countries other than Vietnam. 95

96 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN ACCOUNTING STANDARDS AND SYSTEM (continued) Consolidation offinancial statements The consolidated financial statements include the financial statements of the Bank and of its subsidiary as at 31 December. The financial statements of the subsidiary are prepared for the same reporting period as the Bank and using consistent accounting policies. All intra-group balances transactions including unrealized profits resulting from intra-group transactions are eliminated in full. The financial statements of subsidiary (presented at Note 1) are fully consolidated from the date when the control is transferred to the Bank. The control is achieved when the Bank has the power directly or indirectly to govern the financial and operating policies of subsidiary so as to obtain benefits from its activities. The operating results of subsidiary acquired or disposed during the yearare included in theconsolidated income statement from the date of acquisition or up to the date of disposal as appropriate. Use of estimates The preparation of theconsolidated financial statements requires the Board of Management make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities. These estimates and assumptions also affect the income and expenses and the resultant provisions. Such estimates are necessarily based on assumptions involving varying degrees of subjectivity and uncertainty and actual results may differ resulting in future changes in related items. Going concern The Board of Management of the Bank has assessed the Bank and its subsidiary's ability to continue as a going concern and recognized that the Bank and its subsidiary have sufficient resources to maintain their business in a definite future. In addition the Board of Management is not aware of any significant uncertainties that may affect the Bank and its subsidiary's ability to continue as a going concern. Therefore the consolidated financial statements are prepared on a going concern basis. Changes in accounting policies and disclosures The accounting policies adopted by the Bank in the preparation of the consolidated financial statements for financial year ended 31 December 2014 are consistent with those followed in the preparation of the consolidated financial statements for the financial year ended 31 December 2013 except for the changes of accounting policy related to the below transactions: Classification of assets making and use of provision On 21 January 2013 the State Bank of Vietnam issued Circular No. 02/2013/TT-NHNN regulating classification of assets making and use of provision in the operations of credit institutions and foreign banks' branches ( Circular 02 ). This Circular is effective from 1 June Subsequently on 18 March 2014 the State Bank of Vietnam issued Circular No. 09/2014/TT-NHNN ( Circular 09 )amending and supplementing a number of articles of Circular 02 effective from 20 March 2014 in which amending the effectiveness of Circular 02 to 1 June

97 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 3. ACCOUNTING STANDARDS AND SYSTEM (continued) 3.5 Changes in accounting policies and disclosures (continued) Classification of assets making and use of provision (continued) Significant changes in the Bank's and its subsidiary's accounting policies as regulated by Circular 02 and Circular 09 are as follows: The Bank and its subsidiary are requiredto additionally classify the following assets: - The amount used to purchase or entrusted to purchase unlisted corporate bonds; - The amount entrusted to grant the credit; - Interbank deposits (except for demand deposits); - Loans under the form of credit card. The amount used to purchase or entrusted to purchase corporate bonds which are notlisted on the stock market or not registered for trading on unlisted public company market (Upcom) ( unlisted bonds ) excluding unlisted bonds purchased from trusted funds that the trustor bears risk is subject to a general and specific provision at the rates as regulated by Article 12 and Article 13 of Circular 02. The Bank and its subsidiary are not required to make a general provision for deposits loans term purchase of valuable papers from other credit institutions and foreign banks' branches in Vietnam. The Bank and its subsidiary are not required to make a provision for off-balance sheet commitments. The Bank and its subsidiary are permitted to restructure or extend repayment schedule and keep the same loan group as prior to the restructuring or extension of loans and advances which meet requirements as regulated in Clause 3a Article 10 of Circular 09. However the restructuring or extension without changing the loan group is only performed one time and will be terminated by 1 April Collateral assets exceeding VND200 billion or collateral assets of loans to related parties and loans subject to credit restrictions exceeding VND50 billion must be appraised by a professional valuer Accounting System for Credit institutions On 20 March 2014 the State Bank of Vietnam issued Circular No. 10/2014/TT-NHNN amending and supplementing Accounting System for Credit institutions in accordance with Decision No. 479/2004/QD-NHNN ( Circular 10 ) effective from 1 June The Bank and its subsidiary have applied the amended accounting system according to Circular 10 in the year. The State Bank of Vietnam issued Circular No. 49/2014/TT-NHNN on 31 December Amending and supplementing some articles of Decision No. 16/2007/QD-NHNN issued on 18 April 2007 regarding the financial reporting mechanism for credit institutions and Decision No. 479/2004/QD-NHNN issued on 29 April 2004 regarding the accounting system for Credit Institutions. Circular 49 is effective from 15 February

98 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN ACCOUNTING STANDARDS AND SYSTEM (continued) Regulation issued but not yet effective Significant changes as regulated in Circular 49 are as follows: - Amending and supplementing some articles of Decision No. 16/2007/QD-NHNN dated 18 April 2007 issued by the Governor of the State Bank of Vietnam regarding the financial reporting mechanism for credit institutions: Subsidiaries/associates: subsidiaries and associates are defined in accordance with the Law on Credit Institutions; The deadline for submission and receiving the financial statements: the Circular clearly specifies the time frame for submitting and receiving the unaudited annual financial statements the audited annual financial statements the interim financial statements reviewed interim financial statements and other periodical financial statements; The form and time frame of publication of the financial statements: the Circular clearly specifies the form of publication of the annual financial statements the interim financial statements and the semi-annual financial statements; the time frame of publication of the financial statement for the listed credit institutions the large public credit institutions and the other credit institutions; The forms of the financial statements as promulgated in Decision No. 16/2007/QD-NHNN are replaced by new forms as promulgated in Circular Amending and supplementing some articles of Decision No. 479/2004/QD-NHNN dated 29 April 2004 of the Governor issued by the State Bank of Vietnam regarding the accounting system for credit institutions: Amend and supplement the chart of account as revised by Circular No. 10/2014/TT-NHNN; Amend and supplement the accounting treatments as revised by Circular No. 10/2014/TT-NHNN for the following accounts: Account Investment in subsidiaries in VND Account Investment in subsidiaries in foreign currency Account Investment in associates in VND Account Investment in associates in foreign currency The primary change is to revise the method of defining subsidiaries and associates in accordance with Law on Credit Institutions. The Bank and its subsidiary will apply this Circular when it becomes effectively. 98

99 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN SIGNIFICANT ACCOUNTING POLICIES Cash and cash equivalents Cash and cash equivalents comprise cash gold precious stones balances with the State Bank of Vietnam treasury notes and other short-term valuable papers which can be discounted with the State Bank of Vietnam due from and loans to other banks on demand or with an original maturity of less than three months from transaction date and securities investments with maturity of less than three months from purchase date that are readily convertible into certain amounts of cash and subject to insignificant risk of change in value. Loans and advances to customers Loans and advances to customers are presented at the principal amounts outstanding at the end of the financial year. Provision for credit losses Loans classification Loans to customers are classified and provided for allowance in accordance with the Law on Credit Institutions No. 47/2010/QH12 effective from 1 January 2011; Decision No. 1627/2001/QD-NHNN dated 31 December 2001 issued by the SBV on lending statutory; Decision No. 127/2005/QD-NHNN dated 3 February 2005 amending and supplementing Decision No. 1627/2001/QD-NHNN; Before 1 June 2014 loan classification provision and use of provision against credit risks in the Bank's and its subsidiary's operations were implemented in accordance with Decision No. 493/2005/QD-NHNN dated 22 April 2005 Decision No. 18/2007/QD-NHNN dated 25 April 2007 and Decision No. 780/QD-NHNN dated 23 April 2012 issued by the State Bank of Vietnam. Since 1 June 2014 the Bankand its subsidiary have applied Circular 02/2013/TT-NHNN dated 21 January 2013 and Circular 09/2014/TT-NHNN dated 18 March 2014 issued by the State Bank of Vietnam on loan classification provisions and use of provisions against credit risks in the Bank's and its subsidiary's operations. The Bank's and its subsidiary's loan are assessed and classified based on the quantitative factors and other factors as follows: Loan group Current Classification criteria Current debts which are assessed as fully and timely recoverable both principals and interests; Debts which are overdue less than 10 days and assessed as fully recoverable both overdue principals and interests and fully recoverable both remaining principals and interests on time; Special mention Debts which are classified into the group of lower risks once they meet the regulated conditions. Debts which are overdue from 10 days to 90 days; Debts which are restructured the repayment term for the first time; Debts which are classified into the group of lower or higher risks once they meet the regulated conditions. 99

100 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN SIGNIFICANT ACCOUNTING POLICIES (continued) Provision for credit losses (continued) Loans classification (continued) Loan group Substandard Doubtful Loss Classification criteria Debts which are overdue from 91 days to 180 days; Debts which are extended the repayment term for the first time; Debts which interests are exempted or reduced due to customers are unable to pay all interests under credit contracts; Debts which violated Credit Institutions Law and are overdue less than 30 days from the date of recovery decision; Debts which arein the recovery period according to the SBV's inspection conclusions; Debts which are classified into the group of lower or higherrisks once they meet the regulated conditions; Debts which are classified in accordance with the SBV's inspection conclusions. Debts which are overdue from 181 days to 360 days; Debts which are restructured the repayment term for the first time but still overdue less than 90 days under such restructured repayment term; Debts which are restructured the repayment term for the second time; Debts which violated Credit Institutions Law and are overdue from 30 days to 60 days from the date of recovery decision; Debts which must be recovered according to the SBV's inspection conclusions but fail to be recovered up to 60 days from the recovery date; Debts which are classified into the group of lower or higherrisks once they meet the regulated conditions; Debts which are classified in accordance with the SBV's inspection conclusions. Debts which are overdue more than 360 days; Debts which are restructured the repayment term for the first time but still overdue from 90 days and above under suchfirst restructured repayment term; Debts which are restructured the repayment term for the second time but still overdue under such second restructured repayment term; Debts which are restructured the repayment term for the third time or later regardless of debts are overdue or not; Debts which violated Credit Institutions Law and are overdue more than 60 days from the date of recovery decision; Debts which must be recovered under the SBV's inspection conclusions but fail to be recovered more than 60 days from the recovery date; Debts of customers being credit institutions which are under the SBV's special control status as announce by the SBV or foreign banks' branches which capital and assets are blockaded; Debts which are classified into the group with higherrisks once they meet the regulated conditions; Debts which are classified in accordance with the SBV's inspection conclusions. 100

101 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN SIGNIFICANT ACCOUNTING POLICIES (continued) Provision for credit losses (continued) Loans classification (continued) Debts shall be classified into the group of lower risks in the following cases: Customers have made full repayment of the overdue principal and interests (including interests on overdue principals) and the principals and interests of the following repayment terms in at least three months for long and medium-term debts and one month for short-term debts from the date of fully repayment of the overdue principals and interest; Having supporting documents which prove that customers have paid debts; Having sufficient information and documents to assess the borrowers' capability of fully and timely repayment of remaining principals and interest. Debts shall be classified into the group of higher risks in the following cases: There are negative changes in the environment and business sector which have negative impact directly on the borrowers' repayment capability; Ratios on profitability solvency debts to capital cash flow borrowers' repayment capability are impaired continuously or change significantly according to the worse tendency over three consecutive times of assessment and classification; Customers fail to provide fully timely and honestly financial information at the request of credit institutions foreign banks' branches for assessment on the repayment capability of borrowers; Debts which have been classified into Group 2 Group 3 Group 4 as above for one year or longer but do not sufficient conditions to classify into group of lower risks; Debts which the credit granting has been administratively sanctioned as regulated by law. All debt balances granted to one customer must be classified into the same group. For customers who have two or more debts any debt has been classified into the group of higher risks the other debts should be also classified into the group with highest risks. Loans classified as Substandard Doubtful and Loss are considered non-performing loans. Time of setting up provisions According to Article 3 of Decision No. 493/2005/QD-NHNN and Article 8 of Circular 02 the balance of outstanding loans is classified at the end of each quarter for the first three quarters of the year and as at 30 November for Quarter IV of the financial year. Specific provision Specific provision is created based on the net loan and advances exposure for each borrower using fixed provision rates as follows: Group Category Current Special mention Substandard Doubtful Loss Specific provision rate Net credit exposure for each borrower is calculated by subtracting from the loan balance the discounted value of collateral assets which is subject to certain accepted discount rates in accordance with Circular

102 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN SIGNIFICANT ACCOUNTING POLICIES (continued) Provision for credit losses (continued) General provision In accordance with Circular No. 02/2013/TT-NHNN a general provision is made for credit losses which have not been identified yet during the process of loan classification and specific provision and for the credit institutions' potential financial difficulties due to deterioration in loan quality. As such the Bank is required to fully create and maintain a general provision at 0.75% of total loans and advances to customers which are classified in Group 1 to 4 except for the items below: (i) (ii) Deposits (except for demand deposits) at domestic credit institutions foreign banks' branches in Vietnam in accordance with the laws and regulations and deposits at foreign credit institutions; and Loans to other credit institutions or purchase of term valuable papers issued by other credit institutions and foreign banks' branches in Vietnam Bad debt resolution The provision is recorded in the consolidatedincome statement as an expense and will be used to write off bad debts. According to Circular 02/2013/TT-NHNN the Bank should establish the Bad Debt Resolution Committee to approve writing off of loans classified in Group 5 or loans of corporate borrowers which are bankrupted or liquidated or individual borrowers who are deceased or missing. 4.4 Loans sold to Vietnam Asset Management Company ( VAMC ) Loans are sold to VAMC at the carrying amount in accordance with Decree No. 53/2013/ND-CP effective from 9 July 2013 on Establishment structure and operations of VAMC Circular No. 19/2013/TT-NHNN on Regulations on selling purchasing and writing-off of bad debts of VAMC and Official Letter No. 8499/NHNN-TCKT on Accounting guidance on selling and purchasing of loan transactions between VAMC and credit institutions. Accordingly selling price equals to the outstanding loan balance minus (-) unused balance of specific provision. Special bonds will be issued by VAMC for exchange of loans purchased. Upon the sale of loans to VAMC loan balances and corresponding provisions are written off and special bonds issued by VAMC are recognized at par value determined as difference between the loan balance sold and the corresponding specific provision. Upon receiving loans previously sold to VAMC annual specific provisions for special bonds are used for writing-off of bad debts and the difference between provision for credit losses and the remaining outstanding loan balance/bond value is recognized in Other income of the consolidated income statement. 4.5 Investment securities Held-to-maturity securities (i) Special bonds issued by VAMC Special bonds issued by VAMC are valuable papers issued by VAMC for purchase of bad debts from the Bank and its subsidiary which have specific terms. Special bonds are recognized at par value at the transaction date and continuously recorded at par value in subsequent periods. Par value of special bonds which is corresponding to the bad debts sold is the difference between the outstanding loan balance and unused balance of specific provision of loan. Periodically the Bank and its subsidiary calculate and make annual specific provision not less than 20% of the special bonds' par value. Specific provision for special bonds is recognized in Credit loss expenses of the consolidated income statement. These special bonds are not required to make general provision. 102

103 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN SIGNIFICANT ACCOUNTING POLICIES (continued) Investment securities (continued) Held-to-maturity securities (continued) (ii) Other held-to-maturity securities Held-to-maturity securities include debt securities which are acquired by the Bank and its subsidiary for earning interest and which the Bank and its subsidiary have the intention and ability to hold to maturity. Held-to-maturity securities have fixed or determinable payments and maturity date. In case these securities are sold before maturity they will be reclassified into available-for-sale securities. Debt securities are initially recognized at face value at the purchase date. The accrued interest income (for debt securities with interest payment in arrears) and deferred interest income (for debt securities with interest payment in advance) are recognized in a separate account. Discount/premium which is the negative/positive difference between the cost and the amount being the face value plus (+) accrued interest income (if any) or minus (-) deferred interest income (if any) is also recognized in a separate account. In subsequent periods these securities are continuously stated at face value and the discount/premium (if any) is amortized to the consolidated income statement on a straight-line basis over the estimated remaining term of securities. The interest received in arrears is recognized in the principle that: the accrued interest prior to the purchase date is recognized as a deduction in the value of such securities corresponding to accrued interest receivable and the accrued interest after the purchase date is recognized into the income of the Bank and subsidiary under the cumulative method. The interest received in advance is amortized to the interest income from investment securities on a straight-line basis over the term of securities investment. Periodically held-to-maturity investments are subject to review of impairment. Provision for diminution in value of securities is made when their carrying value is higher than market value in compliance with Circular No. 228/2009/TT-BTC dated 7 December In case fair value or market prices of securities are not available or cannot be determined reliably no provision is calculated. Provision for diminution in value is recognized into the consolidated income statement in Net gain/(loss) from dealing of investment securities. Corporate bonds which are not listed on the stock market or not registered on unlisted public company market should be made provision for credit risk in accordance with Circular No. 02/2013/TT-NHNN as presented in Note Available-for-sale securities Available-for-sale securities include debt and equity securities which are held by the Bank and/or its subsidiary for the purpose of investment and available-for-sale not regularly traded but can be sold when there is a benefit. For equity securities the Bank and its subsidiary are also neither the founding shareholder nor the strategic partner or do not have the ability to make certain influence in establishing and making the financial and operating policies of the investees through a written agreement on assignment of its officers to the Board of Directors/Management. Debt securities are recognized measured considered for diminution of value and made provision similarly with heldto-maturity securities as presented in Note (ii). Available-for-sale equity securities are initially recognized at cost at the purchase date and continuously presented at cost in subsequent periods. Periodically available-for-sale investments are subject to review of impairment. Provision for diminution in value of securities is made when carrying value is higher than market value in compliance with Circular No. 228/2009/TT-BTC dated 7 December In case fair value or market prices of securities are not available or cannot be determined reliably no provision is calculated. Provision for diminution in value is recognized into the consolidated income statement in Net gain/(loss) from dealing of investment securities. 103

104 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN SIGNIFICANT ACCOUNTING POLICIES (continued) Repurchase and reverse repurchase agreements Securities sold under agreements to repurchase at a specific date in the future ( repos ) are not derecognized from the consolidated balance sheet. The corresponding cash received is recognized in the consolidated balance sheet as a liability item. The difference between the sale price and repurchase price is treated as interest expense and is amortized on a straight-line basis at the contractual interest rate to the consolidated income statement over the term of the agreement. Conversely securities purchased under agreements to resell at a specific date in the future ( reverse repos ) are not recognized in the consolidated balance sheet. The corresponding cash paid is recognized in the consolidated balance sheet as an asset item. The difference between the purchase price and resale price is treated as interest income and is accrued on a straight-line basis at the contractual interest rate to the consolidated income statement over the term of the agreement Long-term investments Investments in associates An associate is an entity in which the Bank has significant influence and which is neither its subsidiary nor joint venture. Investments in associates are accounted for using the equity method. Under the equity method investments in associates are initially recognized at cost and the carrying value of the investments which may increase or decrease reflects the Bank's share in net assets of the associates. The losses over the cost of investment in associate are recognized if they are the Bank's liabilities. The consolidated income statement reflects the Bank's share of the operating result of the associates. Where there has been a change recognized directly in the equity of the associates the Bank recognizes its share of such changes in the consolidated balance sheet. The financial statements of the associates used for consolidation purpose under the equity method are prepared for the same accounting period as the Bank and the accounting policies are applied consistently with the Bank's accounting policies for similar transactions or events in the similar circumstances Other long-term investments Other long-term investments represent capital contributions and investments in other entities which the Bank and its subsidiary hold less than 20% voting rights and are the founder shareholder; or the strategic partner; or have ability to make certain influence (not significant influence) on preparing and making the financial and operating policies of the investees through a written agreement on assignment of its representatives to the Board of Directors/Board of Management. Other long-term investments are initially recognized at cost at the purchase date and continuously presented at cost less provision for diminution in value of long-term investments in subsequent periods (if any) Provision for diminution in value of long-term investments Provision is made when the investees are operating at loss (unless losses are previously estimated in the initial business plan) in accordance with Circular No. 228/2009/TT-BTC issued by the Ministry of Finance on 7 December 2009 and Circular No. 89/2013/TT-BTCissued by the Ministry of Finance on 28 June 2013 amending Circular No. 228/2009/TT-BTC. Provision is calculated as the difference between the actual contributed capital of all parties in the investee and the actual owners' equity of the investee multiplying by (x) the proportion of capital contributed by the Bank and its subsidiary to total actual capital contribution of all parties in the investee. 104

105 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN SIGNIFICANT ACCOUNTING POLICIES (continued) Tangible fixed assets Tangible fixed assets are stated at cost less accumulated depreciation. The cost of a tangible fixed asset comprises of its purchase price and any directly attributable costs of bringing the tangible fixed asset to working condition for its intended use. Expenditures for additions improvements and renewals are added to the carrying amount of the assets expenditures for maintenance and reparation are charged to the consolidated income statement as incurred. When tangible fixed assets are sold or retired their costs and accumulated depreciation are removed from the consolidated balance sheet and any gain or loss resulting from their disposal is included in the consolidated income statement. Intangible fixed assets Intangible fixed assets are stated at cost less accumulated amortization. The cost of an intangible fixed asset comprises of its purchase price and any directly attributable costs of bringing the intangible fixed asset to working condition for its intended use. Expenditures for improvements and renewals are added to the carrying amount of the assets and other expenditures are charged to the consolidated income statement as incurred. When intangible fixed assets are sold or retired their costs and accumulated amortization are removed from the consolidated balance sheet and any gain or loss resulting from their disposal is included in the consolidated income statement Lease The Bank or its subsidiary as lessee Lease payments of operating leasing contract are recognized into the consolidated income statement on a straight-line basis over the lease term The Bank or its subsidiary as lessor The Bank and its subsidiary record operating lease assets into consolidated financial statements. Income from operating lease is recognized on a straight-line basis over the term of the lease independent from payment method. Operating lease expenses including depreciation expense of leased assets are recorded as expenses when incurred Depreciation and amortization Depreciation and amortization of tangible and intangible fixed assets are calculated on a straight-line basis over the estimated useful lives of the assets as follows: Buildings and structure Machines and equipment Vehicles Office equipment Other tangible fixed assets Computer software years 5-10 years 3-10 years 3-10 years 5-10 years 5-10 years 105

106 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 4. SIGNIFICANT ACCOUNTING POLICIES (continued) 4.12 Receivables Receivables other than receivables from credit activities of the Bank and its subsidiary are initially recognized at cost and continuously presented at cost in subsequent periods. Provision for receivables is set up based on the aging schedule of overdue debts or expected losses which may occur in case where a debt has not been due for payment but an economic organization is bankrupted or liquidated; or individual debtor is missing run away being prosecuted under a trial or serving sentence or dead. Provision expense occurred will be recognized into Other operating expenses for the year. Provision for overdue receivables is made in accordance with Circular No. 228/2009/TT-BTC issued on 7 December 2009 by the Ministry of Finance as follows: Overdue period 4.13 Prepaid expenses From over six months up to one year From one year under two years From two years under three years From three years and above 4.14 Recognition of income and expense 4.15 Foreign currency transactions 4.16 Payables and accruals Provision rate Prepaid expenses are reported as short-term or long-term prepaid expenses on the consolidated balance sheet and amortized over the period for which the amount are prepaid or the period in which economic benefits are generated in relation to these expenses. Interest income and expense are recognized in the consolidated income statement on an accrual basis. The recognition of accrued interest income is suspended when a loan is classified in groups 2 to 5 in accordance with Circular No. 02/2013/TT-NHNN and Circular No.09/2014/TT-NHNN. Suspended interest income is reversed and monitored in the off-balance sheet items and recognized in the consolidated income statement upon actual receipt. Income from securities investment is determined by the difference between the selling price and the cost of securities sold. Fees and commissions are recognized when services are provided. Dividend income on equity investment is recognized in the consolidated income statement when the Bank's and its subsidiary's right to receive the payment is established. For stock dividends and bonus shares no dividend income is recognized. Instead only the number of shares held by the Bank and its subsidiary is updated. The Bank and its subsidiary maintain their accounting system and record all transactions in original currencies. Monetary assets and liabilities denominated in foreign currencies at period-end are translated into VND using exchange rates ruling at the ending date of the financial year (see list of exchange rates of applicable foreign currencies against VND as at 31 December 2014 in Note 42). Income and expenses arising in foreign currencies during the yearare converted into VND at rates ruling at the transaction dates. Unrealized foreign exchange differences arising from the revaluation of monetary assets and liabilities at the date of monthly financial statements are recognized in Foreign currency differences in owners' equity and are transferred into the consolidated income statement at the end of the financial year. Payables and accruals are recognized for amounts to be paid in the future for goods and services received whether or not billed to the Bank and its subsidiary. 106

107 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 4. SIGNIFICANT ACCOUNTING POLICIES (continued) 4.17 Treasury shares Own equity instruments which are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in profit or loss upon purchase sale issue or cancellation of the Bank and its subsidiary's own equity instruments Corporate income tax Current corporate income tax Current corporate income tax assets and liabilities for the current and prior periods are measured at the amount expected to be paid to or recovered from the taxation authorities. The tax rates and tax laws effective at the consolidated balance sheet dateare applied. Current corporate income tax is charged or credited to the consolidated income statement except when it relates to items recognized directly to equity in which case the current corporate income tax is also dealt with in equity. Current corporate income tax assets and liabilities are offset when there is a legally enforceable right for the Bank and its subsidiary to set off current corporate income tax assets against current tax liabilities and when the Bank and its subsidiary intend to settle their current corporate income tax assets and liabilities on a net basis. The Bank and its subsidiary's tax returns are subject to examination by the tax authorities. Due to the application of tax laws and regulations to many types of transactions is susceptible to varying interpretations amounts reported in the consolidated financial statements could be changed at a later date upon final determination by the tax authorities Deferred corporate income tax Deferred corporate income tax is provided for temporary differences between the tax base of assets and liabilities and their carrying amount for financial reporting purpose at the consolidated balance sheet date. Deferred corporate income tax liabilities are recognized for all taxable temporary differences. Deferred corporate income tax assets are recognized for all deductible temporary differences carried forward unused tax credit and unused tax losses to the extent that it is probable that future taxable profit will be available against which deductible temporary differences carried forward unused tax credit and unused tax losses can be utilized. Deferred corporate income tax assets and liabilities are measured at the tax rates that are expected to apply in the financial year when the asset is realized or the liability is settled based on tax rates and tax laws effective at the consolidated balance sheet date. Deferred corporate income tax is charged or credited to the consolidated income statement except when it relates to items recognized directly to equity in which case the deferred corporate income tax is also dealt with in the equity account Fiduciary assets Assets held in a fiduciary capacity are not reported in the consolidated financial statements as they are not owned by the Bank and its subsidiary Provision for off-balance-sheet commitments According to Circular 02/2013/TT-NHNN and Circular 09/2014/TT-NHNN issued by the State Bank of Vietnam credit I nstitutions are required to classify for guarantees acceptances for payment and irrevocable and unconditional loan commitments with specific effective date (generally called Off-balance-sheet commitments ) into groups as stated in Article 10 of Circular No. 02/2013/TT-NHNN. Accordingly off-balance sheet commitments are classified into groups such as Current Special Mention Substandard Doubtful and Loss based on the overdue status and other qualitative factors. According to Circular No. 02/2013/TT-NHNN credit institutions only classify off-balance-sheet commitments for managing and monitoring credit quality not for making provision purpose. 107

108 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN SIGNIFICANT ACCOUNTING POLICIES (continued) Derivatives Forward and swap foreign currency contracts For forward and swap contracts the difference between VND equivalent of a foreign currency which the Bank is committed to buy/sell translated at contractual exchange rate and spot rate at the effective date of the contract is recorded right at the effective date of the contract as an asset item Derivatives and other financial assets if it is positive or as a liability item Derivatives and other financial liabilities if it is negative. This difference will then be allocated to Net gain/(loss) from foreign currencies and gold trading on a straight-line basis over the contract term. At the consolidated balance sheet date commitments under forward contracts are revaluated at the Bank's spot exchange rate as at that date. Gain/loss arising from revaluation is recognized in the consolidated balance sheet and transferred into the consolidated income statement at the end of financial year. Option foreign currency contracts Option foreign currency contracts are monitored in the off-balance-sheet items. The difference between the market price and expected price is recognized at each time of revaluation as an asset item - Interest receivables from option transactions or a liability item - Interest payables from option transactions Offsetting Financial assets and financial liabilities are offset and reported at the net amount in the consolidated balance sheet if and only if the Bank and its subsidiary have an enforceable legal right to offset financial assets against financial liabilities and the Bank and its subsidiary have intention to settle on a net basis or the realization of the assets and settlement of liabilities is made simultaneously Employee benefits Post employment benefits Post employment benefits are paid to retired employees of the Bank and its subsidiary by the Social Insurance Agency which belongs to the Ministry of Labour War Invalids and Social Affairs. The Bank and its subsidiary are required to contribute to these post employment benefits by paying social insurance premium to the Social Insurance Agency at the rate of 18% of an employee's basic salary on a monthly basis. The Bank and its subsidiary have no further obligation to fund the post employment benefits of its employees other than the liability to pay Social Insurance Agency on a monthly basis. The Bank and its subsidiary's employees who reach to their retirement age are entitled to an allowance equivalent to the aggregate amount of three months' current wages (taken from pension fund) Voluntary resignation and retrenchment benefits Voluntary resignation benefits: The Bank and its subsidiary have the obligation under the Vietnam Labour Code to pay allowance arising from voluntarily resignation of employees equal to one-half month's salary plus salary allowances (if any) for each year of employment until 31 December Since 1 January 2009 the salary used in this calculation will be the average monthly salary of the latest six-month period up to the resignation date. Retrenchment benefits: The Bank and its subsidiary have the obligation under the Vietnam Labour Code to pay allowance to employees who are retrenched as a result of the organizational restructuring or technological changes. In such case the Bank and its subsidiary will pay to employees an allowance for loss of work equivalent to the aggregate amount of one month's salary for each year of employment but no less than two months' salary Unemployment insurance According to Circular No. 04/2009/TT-BLDTBXH guiding the detailed implementation of Decree No. 127/2008/ND-CP on unemployment insurance the Bank and its subsidiary are obliged to pay unemployment insurance at 1% of their salary fund used to pay for unemployment insurance and simultaneously deduct 1% of salary of each employee to pay to the Unemployment Insurance Fund from 1 January

109 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 4. SIGNIFICANT ACCOUNTING POLICIES (continued) 4.24 Nil balances Items or balances required by the Decision No.16/2007/QD-NHNN dated 18 April 2007 issued by the State Bank of Vietnam on promulgation of financial statement reporting for credit institutions that are not shown in these financial statements indicated nil balances. 5. CASH GOLD AND PRECIOUS STONES 31 December December 2013 Cash on hand in VND Cash on hand in foreign currencies Gold 6. BALANCES WITH THE STATE BANK OF VIETNAM 31 December December 2013 In VND In foreign currencies Balances with the State Bank of Vietnam (SBV) include settlement and compulsory deposits. During the year compulsory deposits in VND and settlement deposits in foreign currencies earned interest at rates of 1.20% p.a. and 0.05% p.a. respectively. The compulsory deposit rates required by the SBV as at 31 December2014 were as follows: - - Reserves are computed for customer demand deposits and term deposits with maturity of less than 12 months in VND and in foreign currencies at 3.00% and 8.00% respectively. Reserves are computed for term deposits with maturity of 12 months and above in VND and in foreign currencies at 1.00% and 6.00% respectively. In the year the Bank has complied with the SBV's requirements regarding the compulsory deposits with the SBV. 109

110 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 7. DUE FROM AND LOANS TO OTHER BANKS 31 December December 2013 Due from other banks Loans to other banks 7.1 Due from other banks Demand deposits with other banks In VND 31 December December 2013 In foreign currencies Term deposits with other banks In VND In foreign currencies 7.2 Loans to other banks 31 December December 2013 Loans to other banks in VND Loans to other banks in foreign currencies 7.3 Classification of due from other banks and loans to other banks 31 December December 2013 Due from other banks - Current Loans to other banks - Current 110

111 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 8. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS Nominal amount (using the exchange rate at the effective date) Carrying value (using the exchange rate at the balance sheet date) Assets Liabilities At 31December2014 Forward Swap Total Net value At 31 December 2013 Forward Swap Total Net value 9. LOANS AND ADVANCES TO CUSTOMERS 31 December December 2013 Loans to local economic entities and individuals Loans for discounted commercial notes and valuable papers Payments made on behalf of customers Debts awaiting resolution 9.1 Analysis of loans by quality 31 December December 2013 Current Special mention Substandard Doubtful Loss 111

112 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN LOANS AND ADVANCES TO CUSTOMERS (continued) Analysis of loans by original term 31 December December 2013 Short-term loans Medium-term loans Long-term loans 9.3 Analysis of loans by type of customer and ownership 31 December December 2013 Corporate loans Private limited companies.. Other joint-stock companies.. State-owned enterprises.. Private companies.. State-owned limited companies.. State-owned joint-stock companies.. Foreign invested enterprises.. Co-operatives.. Joint-venture companies. Others.. Loans to individuals

113 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN LOANS AND ADVANCES TO CUSTOMERS (continued) Analysis of loans by economic sector 31 December December 2013 Individuals and public activities.. Trading.. Manufacturing and processing.. Agriculture forestry and aquaculture.. Construction.. Electricity gas and water supply/distribution.. Financial services.. Hotel and restaurant.. Transportation warehousing and communication.. Education and training.. Operation of international organizations or parties.. Asset trading activities and consultancy services.. Health care and social relief activities.. Mining exploration.. Science and technology.. Sport and cultural activities

114 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 10. PROVISION FOR CREDIT LOSSES The Bank has classified its loans to other banks loans and advances to customers according to Article 10 of Circular No. 02/2013/TT-NHNN dated 21 January 2013 issued by the State Bank of Vietnam effective from 1 June 2014 and Circular No. 09/2014/TT-NHNN issued by the State Bank of Vietnam effective from 20 March 2014 which supersede Decision No. 493/2005/QD-NHNN Decision No. 18/2007/QD-NHNN Decision No. 780/QD-NHNN and internal regulations on loan classification of the Bank. According to Article 8 of Circular No 02/2013/TT-NHNN the Bank calculates and records provision for credit losses within the first 15 days of the month next to the previous quater in the first three quarters and as at 30 November for the last quarter of the year. Accordingly the provision for credit losses at year end was made based on the classification of outstanding loan balances as at 30 November Provision for credit losses at the year-end comprised of: Notes 31 December December 2013 Provision for loans and advances to customers Provision for special bonds issued by VAMC Provision for held-to-maturity securities Provision for off-balance-sheet commitments Credit loss expenses incurred during the current year are summarized bellow: Provisioncharged for loans and advances to customers Provision charged for special bonds issued by VAMC Provision charged for held-to-maturity securities (Reversal)/provision charged for off-balance sheet commitments Total credit loss expenses Notes

115 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN PROVISION FOR CREDIT LOSSES (continued) Provision for loan losses The result of loan classification as at 30 November 2014 and corresponding provision for credit losses on loans and advances to customers as required by Circular No. 02/2013/TT-NHNN are as follows: Balance Specific provision General provision Total provsion Current Special mention Substandard Doubtful Loss Changes in the provision for loans and advances to customers in 2014 are summarized below: Specific provision General provision Total Beginning balance Provision charged in the period Provision used for debts sold to VAMC in the period Provision used to write off loans in the period Balance as at 30November 2014 Provision charged in December Provision used for debts sold to VAMC in December Provision used to write off loans in December Foreign exchange differences Ending balance 115

116 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN PROVISION FOR CREDIT LOSSES (continued) Provision for loan losses (continued) Changes in the provision for loans and advances to customers in 2013 are summarized below: Specific provision General provision Total Beginning balance Provision charged in the period Provision used for debts sold to VAMC in the period Provision used to write off loans in the period Balance as at 30November 2013 Provision charged in December Provision used for debts sold to VAMC in December Provision used to write off loans in December Foreign exchange differences Ending balance During 2014 the Bank has sold bad debts to VAMC amounting to VND million (2013: VND million) used the corresponding balance of provision for credit losses amounting to VND million (2013: VND 8714 million) and received special bonds issued by VAMC amounting to VND million (2013: million). The Bank has also released before maturity date some special bonds issued by VAMC amounting to VND21715 million and held the remaining value of special bonds issued by VAMC as at 31 December 2014 amounting to VND million (Note 11) Provision for special bond issued by VAMC In 2014 the Bank and its subsidiary have made provision for special bonds issued by VAMC amounting to VND million. The provision is made at 20% of par value within one year from the time receiving special bonds issued by VAMC Provision for held-to-maturity securities In 2014 the Bank has made general provision for held-to-maturity securities (corporate bonds) amounting to VND44625 million in accordance with Circular 02/2013/TT-NHNN as presented in Note

117 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 10. PROVISION FOR CREDIT LOSSES (continued) 10.4 Provision for contingent liabilities and off-balance-sheet commitments Changes in the provision for off-balance-sheet in 2014 are summarized below: Specific provision General provision Total Beginning balance Reversal of provision in the period Balance as at 30November 2014 and 31December 2014 Changes in the provision for off-balance-sheet in 2013 are summarized below: Specific provision General provision Total Beginning balance Provision charged in the year Reversal of provision in the year Balance as at 30November 2013 and 31December The Bank has reversed the entire provision for off-balance sheet commitments in the current year in accordance with Circular 02. INVESTMENT SECURITIES Available-for-sale investment securities Debt securities Treasury bills issued by the State Bank of Vietnam (a) Treasury bills issued by the Vietnam State Treasury (b) Debt securities issued by the Government (c) Equity securities Equity securities issued by other local credit institutions Equity securities issued by local economic entities Provision for diminution in value of available-for-sale investment securities Held-to-maturity investment securities Debt securities Debt securities issued by the Government (c) Debt securities issued by other local credit institutions (d) Debt securities issued by local economic entities (e) Special bonds issued by VAMC (f) Provision for diminution in value of held-to-maturity investment securities 31 December December

118 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 11. INVESTMENT SECURITIES (continued) (a) Treasury bill issued by the State Bank of Vietnam has term from 3 to 6 months. Interest is prepaid. (b) Treasury bill issued by the Vietnam State Treasury has term of 1 year. Interest is prepaid. Debt securities issued by the Government include: - Government bonds have term from 3 to 5 years. Interest is paid annually. - Municipal bonds have term of 10 years. Interest is paid annually. - Local government bonds have term from 3 to 5 years. Interest is paid annually. (d) Bonds issued by other local credit institutions have term from 3 to 10 years. Interest is paid annually. (f) Special bonds are issued by VAMC for purchase of bad debts from the Bank during the year (Note 10.1). These bonds have term of 5 years and bear interest at 0% p.a. Except for special bonds issued by VAMC the above debt securities bear interest at rates ranging from 3.35% to 13.00% p.a. Listing status of investment securities is as follows: 31December December 2013 Available-for-sale investment securities Debt securities Government securities Treasury bills issued by the State Bank of Vietnam - Listed Treasury bills issued by the Vietnam State Treasury - Listed Securities issued by the Government - Listed Equity securities Equity securities issued by other local credit institutions - Non-listed Equity securities issued by local economic entities - Non-listed Held-to-maturity investment securities Debt securities Government securities - Listed Debt securities issued by other local credit institutions - Non-listed Debt securities issued by local economic entities - Non-listed 7 118

119 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 11. INVESTMENT SECURITIES (continued) Break down of provision for investment securities at year-end is as follows: 31December December 2013 Held-to-maturity securities Special bonds issued by VAMC 12. LONG-TERM INVESTMENTS Investments in associates Other long-term investments Total Balance at 31 December 2013 Capital contribution in the year Share of net profit of the associates under equity method Disposal of investment in the year Decreasing dividend due to disposal of investment in associate Balance at 31December 2014 Provision for diminution in value of long-term investments Total 12.1 Investments in associates Breakdown of investments in associates as at 31Decemberis as follows: Net carrying Net carrying Cost value Ownership Cost value Ownership Eximland Corporation. Viet Dragon Securities Corporation.. The net carrying value of investments in associates is recognized under the equity method. In 2014 the Bank has disposed its entire investment in Eximland Corporation ( Eximland ) at cost. 119

120 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 12. LONG-TERM INVESTMENTS (continued) 12.2 Other long-term investments Breakdown of other long-term investments as at 31Decemberis as follows: Book value Book value Investments in other local credit institutions - Listed Investments in other local economic entities - Listed - Non-listed Provision for diminution in value of long-term investments 12.3 Provision for long-term investment Movement of provision for diminution in value of long-term investments during the year is as follows: Beginning balance Increase/(decrease) during the period - Provision charged (Note 28) - Reversal of provision(note 28) Ending balance 13. FIXED ASSETS 13.1 Tangible fixed assets Changes in tangible fixed assets in the current yearare as follows: Cost Balance at 31 December 2013 Transferred from completed construction and purchases of fixed assets Reclassification Reverts Disposal Balance at 31 December 2014 Buildings & structure Machines & equipment Vehicles Office equipment Other tangible fixed assets Total 120

121 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN FIXED ASSETS (continued) Tangible fixed assets (continued) Buildings & structure Machines & equipment Vehicles Office equipment Other tangible fixed assets Total Accumulated depreciation Balance at 31 December 2013 Depreciation charge Reclassification Reverts Disposal Balance at 31 December 2014 Net book value Balance at 31 December 2013 Balance at 31 December 2014 Cost of tangible fixed assets which have been fully depreciated but are still in use as at 31December2014 amounted to VND million (31 December 2013: VND80675 million) Intangible fixed assets Changes in intangible fixed assets in the current year are as follows: Indefinite-term land use rights Computer software Total Cost Balance at 31 December 2013 Addition Reverts Disposal Balance at 31 December 2014 Accumulated amortization Balance at 31 December 2013 Amortization charge Balance at 31 December 2014 Net book value Balance at 31 December 2013 Balance at 31 December 2014 Cost of intangible fixed assets which have been fully amortized but are still in use as at 31December2014 amounted to VND40728 million (31 December 2013: VND33712 million). 121

122 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 14. OTHER ASSETS Receivables (Note 14.1) Interest and fee receivables Other assets (Note 14.2) Provision for other assets (Note14.3) 14.1 Receivables Advance for purchase of fixed assets (a) Receivable from investment disposal (b) Constructions in progress Receivables from State Budget (c) Receivables from Vinashin (d) Advances for operating activities Receivables from subsidized-interest lending Card receivables Margin deposit for house renting and other activities Deductible input VAT Dividend receivable Receivable from transferring of land use rights Advance to SBV for gold purchasing Deposit for trading of gold account Other receivables (a) This represents advances for purchase of fixed assets as land use rights and their attached assets acquired by the Bank during the period but their ownerships have not yet been completed and transferred to the Bank. (b) The balance as at 31 December 2014 reflects the remaining receivable related to the investment disposal of the Bank and will be paid within 5 years since disposal date. This represents the advances for corporate income tax amounting to VND million (Note 20) and value added tax amounting to VND31346 million. (d) This is the receivable from resolving debts of Vietnam Shipbuilding Industry Corporation (Vinashin) in accordance with guidance of the State Bank of Vietnam which is being amortized until

123 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 14. OTHER ASSETS (continued) 14.2 Other assets Prepaid expenses Forfeited assets awaiting resolution Materials and tools Prepaid and deferred expenses mainly represent rental prepaid interest and deferred expense of the assets which are not qualified as fixed asset in accordance to Circular No. 45/2013/TT-BTC. These prepaid and deferred expenses are amortized from 1 to 36 months Provision for other assets Movement of risk provision for other assets in current year is as follow: Beginning balance Provision charged in current year (Note 29) Provision used to written off in the period Ending balance 15. BORROWINGS FROM THE GOVERNMENT AND THE STATE BANK OF VIETNAM Borrowings from the State Bank of Vietnam Current loan Loans secured by valuable papers 16. DUE TO AND BORROWINGS FROM OTHER BANKS Due to other banks Borrowings from other banks 123

124 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 16. DUE TO AND BORROWINGS FROM OTHER BANKS (continued) 16.1 Due to other banks Demand deposits In VND In foreign currencies Term deposits In VND In foreign currencies 16.2 Borrowings from other banks Borrowings from other banks in VND Borrowings from other banks in foreign currencies 17. CUSTOMER DEPOSITS 17.1 Analysis by products Demand deposits Demand deposits in VND Demand deposits in foreign currencies Demand saving deposits in VND Demand saving deposits in foreign currencies Term deposits Term deposits in VND Term deposits in foreign currencies Term saving deposits in VND Term saving deposits in foreign currencies Margin deposits Margin deposits in VND Margin deposits in foreign currencies Deposits for specific purposes Deposits for specific purposesin VND Deposits for specific purposes in foreign currencies 124

125 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 17. CUSTOMER DEPOSITS (continued) 17.2 Analysis by type of customers and ownership Deposits by economic entities State-owned enterprises Private enterprises and others Foreign invested enterprises Deposits by individuals Deposits by others 18. VALUABLE PAPERS ISSUED Certificates of deposit Under 12 months From 12 months to 5 years 5 years and above Bills Under 12 months 125

126 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 19. OTHER PAYABLES Internal payables Payables to employees Other internal payables Bonus and welfare fund External payables Letter of Credit payables Payable to the SBV on interest subsidy lending Remittance payables Card payables Payables in loan resolution activities Tax payables (Note 20) Deferred income Dividend payables (Note 21.3) Other payables Bonus and welfare fund has been reclassified from Other reserves to Other payables in accordance with Circular No. 10/2014/TT-NHNN issued by the State Bank of Vietnam on 20 March 2014 (Note 21.2). 126

127 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 20. OBLIGATIONS TO THE STATE BUDGET Beginning payable Beginning receivable Movements during the year Payable Paid Ending payable balance Ending receivable balance Value added tax Corporate income tax Personal income tax Foreign contract withholding tax Other taxes Current corporate income tax ( CIT ) The Bank has the obligation to pay CIT at the rate of 22% of taxable profits in accordance with Circular No. 78/2014/TT-BTC (2013: 25%). The subsidiary has the obligation to pay CIT at the rate of 20% of taxable profits in the current year(last year: 20%). The Bank and its subsidiary's tax returns are subject to examination by the tax authorities and are declared and finalized separately. Because the application of tax laws and regulations to many types of transactions is susceptible to varying interpretations amounts reported in the consolidated financial statements could be changed at a later date upon final determination by the tax authorities. The current CIT payables are determined based on taxable income of the current year. Taxable income differs from profit as reported in the consolidated income statement since it excludes taxable income or deductible expenses in prior years due to the differences between the Bank and its subsidiary's accounting policies and the current income tax policies and also excludes non-taxable income or non-deductible expenses. The current CIT payables of the Bank and its subsidiary are calculated based on the statutory tax rates applicable at the consolidated balance sheet date. 127

128 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 20. OBLIGATIONS TO THE STATE BUDGET (continued) Current corporate income tax ( CIT ) (continued) Current CIT expense in the yearis estimated as follows: Profit before tax Adjust: - Tax-exempt dividend income - Reversal of provision for investments in associates for consolidation purpose - Share of profit of the associates under the equity method - Provision for investment in associates for consolidation purpose - Loss due to disposal investment in associates - Expenses not related to taxable income Estimated taxable profit for the year - CIT expense of the Bank - CIT expense of the subsidiary - Additional tax payment for prior year - Tax adjustment (*) Total estimated CIT expense for the year CIT (receivable)/payable at the beginning of the year CIT paid during the year CIT payable at the end of the year (*) This is the tax adjustment due to cancellation of the real estate transfer contract in the current year. Deferred corporate income tax At year end the Bank and subsidiary have not recognized deferred corporate income tax due to there are no significant temporary difference between the carrying value and the tax base of assets and liabilities. 128

129 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN CAPITAL AND RESERVES Statement of changes in owners' equity Changes in owners' equity of the Bank during the year are as follows: Charter capital Investment capital and purchasing assets Treasury shares Share premium Reserves Retained earnings Total Beginning balance Net profit for the year Additional reserves made for prior year Reserves made for current year Purchase of treasury shares in the year Reserves used in the year Reclassification bonus and welfare fund to other payables Dividend paid for prior year (Note 21.3) Ending balance Details of the Bank's shareholders are as below: Number of shares Value Ownership % Number of shares Value Ownership % Sumitomo Mitsui Banking Corporation.. Joint Stock Commercial Bank for Foreign Trade of Vietnam.. VOF Investment Limited.. Other shareholders

130 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 21. CAPITAL AND RESERVES (continued) 21.1 Statement of changes in owners' equity (continued) Details of the Bank's shares are as follows: Unit Unit Number of authorized shares Number of issued shares Ordinary shares Preference shares Number of treasury shares Ordinary shares Preference shares Number of outstanding shares Ordinary shares Preference shares 21.2 Statutory reserves According to Decree No. 57/2012/ND-CP effective from 15 September 2012 and the Bank's Charter the Bank is required to make the following statutory reserves based on the percentage of profit after tax as follows: Basic for calculation Maximum balance Supplementary capital reserve Financial reserve Other reserves 5% of profit after tax 10% of profit after tax Subject to resolution of the Annual General Meeting of Shareholders 100% of charter capital 25% of charter capital Not defined The Bank and its subsidiary only create the above reverses from profit after tax at the end of fiscal year. 130

131 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 21. CAPITAL AND RESERVES (continued) 21.2 Statutory reserves (continued) Changes in reserves of the Bank and its subsidiary during the year are as follows: Beginning balance Additional reserves made for prior year Reserves made for current year Reserves used in the year Transfer to other payables Ending balance Investment and Bonus development Financial Supplementary and welfare reserve reserve capital reserve fund Total 21.3 Dividends Dividends payable at the beginning of the year Dividends declared in the year Dividends on ordinary shares - Dividend payment for 2013: VND400/share - First dividend payment for 2012: VND800/share - Second dividend payment for 2012: VND550/share Dividends paid in the year Dividends payable at the end of the year BASIC EARNINGS PER SHARE Basic earnings per share are calculated by dividing net profit after tax for the year attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during the year. Details of basic earnings per share of the Bank are as follows: Net profit attributable to ordinary shareholders () Weighted average number of outstanding ordinary shares (share) Basic earnings per share (VND/share) 131

132 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 23. INTEREST AND SIMILAR INCOME Interest income from loans and advances to customers Interest income from investments in debt securities Interest income from deposits Other income from credit activities INTEREST AND SIMILAR EXPENSES Interest expenses on deposits Interest expenses on borrowings Interest expenses on valuable papers Other expenses from credit activities 25. NET FEES AND COMMISSION INCOME Fees and commission income Income from settlement services Income from guarantee services Income from treasury services Income from advisory services Other income Fees and commission expenses Expenses from settlement services Expenses from postal and communication Expenses from brokerage services Expenses from transport of cash Other expenses Net fees and commission income

133 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 26. NET GAIN/(LOSS) FROM FOREIGN CURRENCIES AND GOLD TRADING Income from foreign currencies and gold trading Income from spot foreign exchange Income from derivatives Expenses from foreign currencies and gold trading Expenses from spot foreign exchange Expenses from derivatives Net gain from foreign currencies and gold trading 27. NET OTHER (EXPENSE)/ INCOME Other income Bad debt recoveries Proceeds from disposal of land use rights and other fixed assets Other income Other expenses Cost of disposal of land use rights and other fixed assets Other expenses Net other (expense)/income

134 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 28. (LOSS)/GAIN FROM LONG-TERM INVESTMENTS Dividends from investments - From equity investment securities - From long-term investments (Loss)/gain from disposal of other investments Share of profit of the associates under equity method Reversal of provision for diminution in value of long-term investments (Note 12.3) Provision for diminution in value of long-term investments (Note 12.3)

135 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 29. OPERATING EXPENSES Personnel expenses Salary and allowances Social insurance health insurance unemployed insurance and union fee Meal allowances Uniform and safe labour instruments Other allowances to employees Social activities Asset expenditures Rental Depreciation of fixed assets Repair and maintenance Purchase of tools Insurance for assets Other operating expenses Advertisement marketing and promotion Meeting and conference Insurance for customer deposits Provision expense Utilities Materials and printing Business trips Postage and telecommunication Professional services Other taxes and fees Education and trainings Labour union's activities Others Other provision expense includes provision for doubtful receivable from Vietnam Shipbuilding Industry Corporation (Vinashin) amounting to VND43750 million (Note 14.1). 135

136 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 30. CASH AND CASH EQUIVALENTS Cash and cash equivalents presented in the consolidated cash flow statement comprise the following balances in the consolidated balance sheet: Cash gold and precious stones Balances with the State Bank of Vietnam Demand deposits with other banks Deposits with and loans to other banks with term of under three months Securities with maturity of under three months from the purchasing date 31. EMPLOYEES' INCOME I. Total average number of employees (person) II. Employees' income () 1. Total salary 2. Bonuses 3. Other income 4. Total income (1+2+3) 5. Average salary per month (VND/person) 6. Average income per month (VND/person) 32. COLLATERALS AND MORTGAGES The book value of collaterals and mortgages from loans and advances to customers are as follows: Real estate properties Valuable papers Movable assets Other assets 136

137 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 33. CONTINGENT LIABILITIES AND COMMITMENTS In the normal course of business the Bank is a party to financial instruments which are recognized as off-balance sheet items. These financial instruments mainly comprise guarantee commitments and letters of credit. These instruments involve elements of credit risk in excess of the amounts recognized in the consolidated balance sheet. Credit risk for off-balance sheet financial instruments is defined as the possibility of sustaining a loss because any other party to a financial instrument fails to perform in accordance with the terms of the contract. Financial guarantees are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party including guarantee for borrowings settlement performing contracts and bidding. The credit risk involved in issuing guarantees is essentially the same as that involved in extending loans to other customers. Commercial at sight letters of credit represents a financing transaction by the Bank to its customer where the customer is usually the buyer/importer of goods and the beneficiary is typically the seller/exporter. Credit risk from this type of letters of credit is limited as the merchandise shipped serves as collateral for the transaction. Deferred letters of credits represent the amounts at risk should the contract be fully drawn upon but the client defaults in repayment to the beneficiary. Deferred letters of credit that defaulted by clients are recognized by the Bank as granting of a compulsory loan with a corresponding liability representing the financial obligation of the Bank to pay the beneficiaries and to fulfill the guarantor obligation. The Bank requires margin deposits to support credit-related financial instruments when it is deemed necessary. The margin deposit required varies from nil to 100% of the value of a commitment granted depending on the creditworthiness of clients as assessed by the Bank. The outstanding commitments and contingent liabilities as at 31December are as follows: At sight letters of credit Deferred letters of credit Financial guarantees - Settlement guarantee - Performance guarantee - Tender guarantee Loan guarantees Other guarantees Other commitments Less: Margin deposits Contingent liabilities and commitments 137

138 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 34. RELATED PARTY TRANSACTIONS Related party transactions include all transactions undertaken with other entities to which the Bank and its subsidiary are related. Parties are considered as related parties if one party is able to control over or significantly influence the other party in making decision of financial and operational policies. A party is deemed to be related to the Bank and its subsidiary if: (a) Directly or indirectly through one or more intermediaries the party: (b) The party is a joint venture in which the Bankand its subsidiaryis a venture(owning over 11% of thecharter capital or voting share capital but is not a subsidiary of the Bank); The party whose member is the key management personnel of the Bankand its subsidiary; (d) The party is a close member of the family of any individual referred to in (a) or (c); or (e) controls or is controlled by or is under common control of the Bank and its subsidiary; has an interest (owning 5% or more of the charter capital or voting share capital) in the Bank that gives it significant influence over the Bank and its subsidiary; or has joint control over the Bank and its subsidiary; The party is an entity that is directly or indirectly controlled jointly controlled or significantly influenced by or of which significant voting power in such entity resides with any individual referred to in (c) or (d) Significant transactions with related parties for the year ended 31December2014 were as follows: Relationship Major shareholders Other related parties Transactions Interest income Interest expenses Interest income Interest expenses Amount Receivables and payables with the related parties as at 31December2014 were as follows: Relationship Major shareholders Other related parties Transactions Deposits taken Deposits placed Loans received Deposits taken Interest payables Loans granted Interest receivables Other receivables Receivables/(Payables) Other related parties are associates and other related shareholders of the Bankand its subsidiary. 138

139 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 35. CONCENTRATION OF ASSETS LIABILITIES AND OFF-BALANCE-SHEET ITEMS BY GEOGRAPHICAL REGIONS Domestic Overseas Total Assets at 31December2014 (*) Due from and loans to other banks Loans and advances to customers Derivatives (Nominal amount) Investment securities Long-term investments Liabilities at 31December 2014 Due to and borrowings from other banks Customer deposits Valuable papers issued Off-balance-sheet commitments at 31December 2014 (*) Excluding provision 139

140 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN SEGMENT REPORT Main segment report: by geographical region Information of income expenses assets and liabilities of the divisions by geographical area of the Bank as at and for the year ended 31 December 2014 is as follows: North Central South Total segment reported Elimination Total Interest and similar income Interest and similar expenses Net interest and similar income Other income TOTAL OPERATING INCOME TOTAL OPERATING EXPENSES Profit before credit loss expenses Credit loss expenses PROFIT BEFORE TAX Corporate income tax expense PROFIT AFTER TAX ASSETS Due from and loans to other banks Loans and advances to customers Investments Other assets TOTAL ASSETS LIABILITIES Due to and borrowings from other banks Customer deposits Other liabilities TOTAL LIABILITIES The Head Office which belongs to the South has made some transactions for the whole bank but not made the allocation to other business units of the Bank. 140

141 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN SEGMENT REPORT (continued) Secondary segment report: by business sector For management purposes the Bank and its subsidiary are organized into sectors based on the followings: Individual customers and corporate customers: The products and services provided to individual and corporate clients include: - Customer deposits; - Credits; - Card services and money transfer services. Investments: Interbank activities: Securities investments and other long-term investments Placements from and to; borrowings lending and other interbank activities with other banks. 141

142 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 36. SEGMENT REPORT (continued) 36.2 Secondary segment report: by business sector (continued) Information on assets and liabilities of the business sectors of the Bank as at 31 December 2014 are as follows: Individual and corporate customers Investments Interbank activities Unallocated general activities Total ASSETS Cash gold and precious stones Balances with the State Bank of Vietnam Due from and loans to other banks Derivatives and other financial assets Loans and advances to customers Investment securities Long-term investments Fixed assets Other assets TOTAL ASSETS LIABILITIES Borrowings from the Government and the State Bank of Vietnam Due to and borrowings from other banks Customer deposits Valuable papers issued Other liabilities TOTAL LIABILITIES Segmental information on income and expenses of the Bank is not presented because the Bank has not established management information system to collect this information. 142

143 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 37. FINANCIAL RISK MANAGEMENT POLICIES Risk is inherent in the Bank and its subsidiary's activities and is managed through a process of ongoing identification measurement and monitoring subject to risk limits and other controls. This process of risk management is critical to the Bank and its subsidiary's continuing profitability and each individual within the Bank and its subsidiary is accountable for the risk prevention relating to his or her responsibilities. The Bank and its subsidiary are exposed to such types of risk as credit risk liquidity risk and market risk (then being subdivided into trading and non-trading risks). The Bank and its subsidiary are also subject to various operational risks. The independent risk control process does not include business risks such as changes in the environment technology and industry. The Bank and its subsidiary's policy is to monitor those business risks through the Bank and its subsidiary's strategic planning process Risk management structure The Board of Directors is ultimately responsible for identifying and controlling risks. However each separate member shall be responsible for managing and monitoring risks. Board of Directors The Board of Directors is responsible for monitoring the overall risk management process within the Bank and its subsidiary. Risk management Committee Risk management Committee advises the Board of Management in the promulgation of procedures and policies under their jurisdiction relating to risk management in the Bank and its subsidiaries' activities. Risk management Committee analyses and provides warnings on thepotential risks that may affect the Bank and its subsidiaries' operation and preventive measures in the short term as well as long term. Risk management Committee reviews and evaluates the appropriateness and effectiveness of the risk management of procedures and policies of the Bank and its subsidiaries to make recommendations to the Board of Managementon the improvement of procedures policies and operational strategies. Board of Supervisors The Board of Supervisors has the responsibility to control the overall risk management process within the Bank and its subsidiary. Internal Audit According to the annual internal audit plan business processes throughout the Bank and its subsidiary are audited by the internal audit function which examines both the adequacy of the procedures and the Bank and its subsidiary's compliance with the procedures. Internal Audit discusses the results of all assessments with the Board of Management and reports its findings and recommendations to the Board of Supervisors. 143

144 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 37. FINANCIAL RISK MANAGEMENT POLICIES (continued) Risk measurement and reporting systems The Bank and its subsidiary's risks are measured using a method which reflects both the expected loss likely to arise in normal circumstances and unexpected losses which are an estimate of the ultimate actual loss based on statistical models. Monitoring and controlling risks is primarily performed based on limits established by the Bank and its subsidiary in compliance with the SBV's regulations. These limits reflect the business strategy and market environment of the Bank and its subsidiary as well as the level of risk that the Bank and its subsidiary are willing to accept. Information compiled from all business activities is examined and processed in order to analyze control and early identify risks. This information is presented and explained to the Board of Directors Board of Management and the departments' directors. The report includes aggregate credit exposure credit metric forecasts limit exceptions liquidity ratios and risk profile changes. The Management assesses the appropriateness of the allowance for credit losses on a quarterly basis. The Management receives a comprehensive risk report quarterly which is designed to provide all the necessary information to assess and conclude on the risks of the Bank and its subsidiary. For all levels throughout the Bank and its subsidiary specifically tailored risk reports are prepared and distributed in order to ensure that all business departments have access to extensive necessary and up-to-date information Risk mitigation The Bank and its subsidiary actively use collaterals to reduce its credit risk. Excessive risk concentration Risk concentrations arise when a number of customers of the Bank and its subsidiary are engaged in similar business activities or activities in the same geographic region or have similar economic features that would affect the group of customers' payment obligations or payment receipt rights when due under changes in economic political or other conditions. These above concentrations indicate the level of sensitivity of the Bank and its subsidiary's performance to the developments of a particular industry or geographic allocation. In order to avoid excessive concentrations of risk the Bank and its subsidiary's policies and procedures include specific guidelines to focus on maintaining a diversified portfolio. Identified concentrations of credit risk are controlled and managed accordingly. Selective hedging is used within the Bank and its subsidiary in respect of the industries and other related factors. 144

145 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 37. FINANCIAL RISK MANAGEMENT POLICIES (continued) 37.1 Credit risk (a) (b) Credit risk is the risk that the Bank will incur a loss because its customers fail to discharge their contractual obligations. To manage credit risk the Bank and its subsidiary issued credit policies and instructions to standardize their credit operations. The Bank and its subsidiary manage and control credit risk by setting limits on the amount of risk they are willing to accept for each customers and for geographical and industry concentrations and by monitoring exposures in relation to such limits. The Bank and its subsidiary have established a credit quality review process to provide early identification of possible changes in the creditworthiness of customers including regular collateral review. Credit limits for customers are established by the use of a credit rating system which assigns each customer a risk rating. Risk ratings are subject to regular revision. Financial assets neither past due nor impaired The Bank and its subsidiary's financial assets which are neither past due nor impaired include loans and advances to customers classified as Current loan in accordance with Circular No. 02/2013/TT-NHNN and Circular No 09/2014/TT-NHNN; securities receivables and other financial assets which are not past due and no provision is required in accordance with Circular No. 228/2009/TT-BTC. The Bank believed that it can recover fully and timely these financial assets in the near future. Financial assets past due but not impaired Aging of past due financial assets but not impaired are presented as below: Past due Less than 90 days From 91 to 180 days From 181 to 360 days Over 360 days Total Loan and advances to customers These are past due financial assets but not impaired as they are secured fully by collaterals including reciprocal deposits real estate properties movable assets valuable papers and other assets. 145

146 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 37. FINANCIAL RISK MANAGEMENT POLICIES (continued) 37.2 Market risks (a) Interest rate risk Interest rate risk arises from the possibility that changes in interest rates will affect the fair values of financial instruments. The Bank and its subsidiary are exposed to interest rate risk as a result of mismatches of maturity dates or dates of interest rate re-pricing in respect of assets and liabilities and off-balance sheet instruments over a certain period. The Bank and its subsidiary manage this risk by matching the dates of interest rate re-pricing of assets and liabilities. Analysis of assets and liabilities based on actual interest rate repricing term The actual term of interest rate repricing is the remaining period calculated from the consolidated balance sheet date to the next interest rate repricing term or the maturity term of the items on the consolidated balance sheet whichever is earlier. The following assumptions and conditions have been adopted in the analysis of actual interest rate repricing terms of the assets and liabilities of the Bank and its subsidiary: Cash gold gemstones long-term investments and other assets (including fixed assets investment properties and other assets) and other liabilities are classified as non-interest bearing items. Balances with the State Bank of Vietnam are considered as current and the actual; interest rate repricing term is therefore considered within 1 month. The actual interest rate repricing term of investment securities and trading securities are determined based on the actual maturity term of each kind of securities as at the consolidated balance sheet date. The actual interest rate repricing term of due from and loans to other banks; loans to customers; borrowings from Government and the State Bank of Vietnam; due to and borrowings from other banks and customer deposits and grants entrusted funds and loans exposed to risks are determined as follows: - Items which bear fixed interest rate for the entire contractual term: The actual interest rate repricing term is determined based on the remaining contractual term calculated from the consolidated balance sheet date. - Items which bear floating interest rate: The actual interest rate repricing term is determined based on the next interest rate repricingterm subsequent to the consolidated balance sheet date. The actual interest rate repricing term of valuable papers is determined based on the remaining maturity term of each valuable paper calculated from the consolidated balance sheet date. 146

147 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN (a) FINANCIAL RISK MANAGEMENT POLICIES (continued) Market risks (continued) Interest rate risk (continued) Below table shows the effective interest re-pricing term of assets and liabilities as at 31 December 2014: Assets Cash gold and precious stones Balances with the SBV Due from and loans to other banks gross Derivatives and other financial assets Loans and advances to customers gross Investment securities - gross Long-term investments - gross Fixed assets Other assets - gross Total assets Overdue Non-interest bearing Up to 1 month From 1 to 3 months Interest re-pricing period From 3 to 6 months From 6 to 12 months From1 to 5 years Over 5 years Total Liabilities Borrowings from the Government and the State Bank of Vietnam Due to and borrowings from other banks Customer deposits Valuable papers issued Other liabilities Total liabilities Interest rate sensitivity gap No analysis on interest rate sensitivity was performed at 31December2014 since the Bank and its subsidiary do not have sufficient data and technology. 147

148 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 37. FINANCIAL RISK MANAGEMENT POLICIES (continued) 37.2 Market risks (continued) (b) Currency risk Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. The Bank and its subsidiary were incorporated and operate in Vietnam so VND is the reporting currency. The major currency in which the Bank and its subsidiary transact is also VND. However some transactions are denominated in gold USD EUR and other foreign currencies. The Bank and its subsidiary have set limits to control the positions of the currencies. Positions are monitored on a daily basis and hedging strategies are used to ensure that the currency positions are maintained within established limits. Classification of assets and liabilities of which currencies are translated into VND as at 31 December 2014 are as follows: Gold equivalent to EUR equivalent to USD equivalent to Other foreign currencies equivalent to Total Assets Cash gold and precious stones Balances with the State Bank of Vietnam Due from and loans to other banks - gross Derivatives and other financial assets Loans and advances to customers - gross Other assets - gross Total assets Liabilities and owners' equity Borrowings from the Government and SBV Due to and borrowings from other banks Customer deposits Derivatives and other financial liabilities Valuable papers issued Other liabilities Total liabilities and owners' equity On-balance sheet foreign exchange position Off-balance-sheet foreign exchange position On and off-balance-sheet foreign exchange position 148

149 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN (b) FINANCIAL RISK MANAGEMENT POLICIES (continued) Market risks (continued) Currency risk (continued) Foreign currency sensitivity No analysis on foreign currency sensitivity was performed at 31 December 2014 since the Bank and its subsidiary do not have sufficient data and technology. Liquidity risk Liquidity risk is the risk which the Bank and its subsidiary have difficulty in meeting its financial obligations. Liquidity risk occurs when the Bank and its subsidiary cannot afford to settle debt obligations at the due dates in the normal or stress conditions. To minimize the liquidity risk exposure the Bank and its subsidiary diversify the mobilization of deposits from various sources apart from their basic capital resources. In addition the Bank and its subsidiary have a flexible policy to control liquidity of assets monitors the future cash flows and daily liquidity. The Bank and its subsidiary also evaluate the estimated cash flows and the availability of current collaterals in case of obtaining more deposits. Liquidity risk is restricted by holding a high proportion of cash and cash equivalents in the form of Nostro accounts term deposits at the State Bank of Vietnam and other credit institutions and valuable papers. The risk-weighted ratios are used to manage liquidity risk. The maturity term of assets and liabilities represents the remaining period of assets and liabilities calculated from the consolidated balance sheet date to the settlement date in accordance with contractual terms and conditions. The following assumptions and conditions are applied in the maturity analysis of the Bank and its subsidiary's assets and liabilities: Balances with the State Bank of Vietnam are classified as demand deposits which include compulsory deposits. The maturity term of investment securities is calculated based on the maturity date of each kind of securities. The maturity term of due from and loans to other banks; and loans to customers is determined based on the maturity date as stipulated in contracts. The actual maturity term may be altered because loan contracts may be extended. The maturity term of long-term investments is considered as more than one year because these investments do not have specific maturity date. The maturity term of deposits and borrowings from other banks and customer deposits is determined based on features of these items or the maturity date as stipulated in contracts. Vostro account and demand deposits are transacted as required by customers and therefore being classified as current accounts. The maturity term of borrowings and term deposits is determined based on the maturity date in contracts. In fact these amounts may be rotated and therefore they last beyond the original maturity date. The maturity term of fixed assets is determined on the remaining useful life of assets. 149

150 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 37. FINANCIAL RISK MANAGEMENT POLICIES (continued) 37.2 Market risks (continued) Liquidity risk (continued) Below table shows the analysis of the remaining maturity term of assets and liabilities as at 31 December 2014: Above 3 months Overdue Up to 3 months Up to 1 month From 1 to 3 months Current From 3 to 12 months From 1 to 5 years Above 5 years Total Cash gold and precious stones Balances with the State Bank of Vietnam Due from and loans to other banks - gross Derivatives and other financial assets Loans and advances to customers - gross Investment securities - gross Long-term investments - gross Other assets - gross Total assets Borrowings from the Government and SBV Due to and borrowings from other banks Customer deposits Valuable papers issued Other liabilities Total liabilities Net liquidity gap VI. Vietnam Export Import Commercial Joint Stock Bank Assets Fixed assets Liabilities 150

151 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN CAPITAL AND OPERATING LEASE COMMITMENTS Capital commitments Capital commitments on building constructions and office equipment acquisition 38.2 Operating lease commitments Irrevocable operating lease commitments In which: - Due within one year - Due from two to five years - Due after five years 39. SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES ACCORDING TO CIRCULAR NO. 210/2009/TT-BTC On 6 November 2009 the Ministry of Finance issued Circular No. 210/2009/TT-BTC ( Circular 210 ) providing guidance for the adoption of the International Financial Reporting Standards on presentation and disclosures of financial instruments which is effective for financial years beginning on or after 1 January Circular 210 only requires for the presentation and disclosures of financial instruments and therefore the Bank and its subsidiary solely apply the concepts of financial assets financial liabilities and related concepts for the supplemental presentation according to Circular 210. Items of assets liabilities and equity of the Bank and its subsidiary have been recognized and accounted for in accordance with the prevailing stipulations of the Vietnamese Accounting Standards and Accounting System for Credit Institutions and the statutory requirements relevant to preparation and presentation of consolidated financial statements. Financial assets Financial assets of the Bank and its subsidiary within the scope of Circular 210 comprise cash gold precious stones balances with the SBV due from and loans to other banks loans and advances to customers trading and investment securities receivables and other assets under monetary derivative contracts. 151

152 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 39. SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES ACCORDING TO CIRCULAR NO. 210/2009/TT-BTC (continued) Financial assets (continued) According to Circular 210 financial assets are classified appropriately for the purpose of disclosure in the consolidated financial statements into one of the following categories: Financial asset at fair value through profit or loss: is a financial asset that meets either of the following conditions: a) It is classified as held for trading. A financial asset is classified as held for trading if: - It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term; - There is evidence of a recent actual pattern of short-term profit-taking; or - It is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument); b) Upon initial recognition it is designated by the Bank and its subsidiary as at fair value through profit or loss. Held-to-maturity investments: are non-derivative financial assets with fixed or determinable payments and fixed maturity that the Bank and its subsidiary have the positive intention and ability to hold to maturity other than: a) Those that the Bank and its subsidiary upon initial recognition designate as at fair value through profit or loss; b) Those that the Bank and its subsidiary designate as available for sale; and c) Those that meet the definitions of loans and receivables. Loans and receivables: are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market other than: a) Those that the Bank and its subsidiary intend to sell immediately or in the near term which shall be classified as held for trading and those that the Bank and its subsidiary upon initial recognition designate as at fair value through profit or loss; b) Those that the Bank and its subsidiary upon initial recognition designate as available for sale; or c) Those for which the holder may not recover substantially all of its initial investment other than because of credit deterioration which shall be classified as available for sale. Available-for-sale assets: are non-derivative financial assets that are designated as available for sale or are not classified as: a) Loans and receivables; b) Held-to-maturity investments; c) Financial assets at fair value through profit or loss. 152

153 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 39. SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES ACCORDING TO CIRCULAR NO. 210/2009/TT-BTC (continued) Financial liabilities Financial liabilities of the Bank and its subsidiary under Circular 210 consist of borrowings from the Government and the State Bank of Vietnam due to and borrowings from other banks customer deposits grants entrusted funds and loans exposed to risks valuable papers issued payables and other liabilities under monetary derivative contracts. According to Circular 210 financial liabilities are classified appropriately for the purpose of disclosure in the consolidated financial statements into one of the following categories: Financial liabilities at fair value through profit or loss are financial liabilities that meet either of the following conditions: a) They are classified as held for trading. A financial liability is classified as held for trading if: - It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term; - There is evidence of a recent actual pattern of short-term profit-taking; or - It is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument). b) Upon initial recognition they are designated by the Bank and its subsidiary as at fair value through profit or loss. Financial liabilities at amortized cost Financial liabilities which are not categorized as at fair value through profit or loss will be classified as financial liabilities at amortized cost. Offsetting financial assets and liabilities Financial assets and financial liabilities are offset and reported at the net amount in the consolidated balance sheet if and only if the Bank and its subsidiary have an enforceable legal right to offset financial assets against financial liabilities and the Bank and its subsidiary have intention to settle on a net basis or the realization of the assets and settlement of liabilities is made simultaneously. Fair value of the financial instruments The Bank and its subsidiary use the following methods and assumptions to estimate the fair value: The fair value of cash on hand and short-term deposits equivalent to the carrying value of these items because they are short-term. 153

154 VI. Vietnam Export Import Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 39. SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES ACCORDING TO CIRCULAR NO. 210/2009/TT-BTC (continued) 39.1 Carrying value and fair value of financial assets and financial liabilities The carrying value and fair value of the Bank and its subsidiary's financial instruments as at 31 December 2014 are presented as below: Held for trading Held-to-maturity securities Carrying value Loans and receivables Availablefor-sale securities Other assets and liabilities at amortized cost Total Fair value FINANCIAL ASSETS Cash gold and precious stones Balances with the SBV Due from and loans to other banks Derivatives and other financial assets Loans and advances to customers Available-for-sale securities Held-to-maturity securities Other long-term investments Other financial assets FINANCIAL LIABILITIES Borrowings from the Government and SBV Due to and borrowings from other banks Customer deposits Valuable papers issued Other financial liabilities (*) The fair value of these financial assets and financial liabilities cannot be determined as there is no specific guidance of Vietnamese Accounting Standards and Accounting System on determination of fair value of financial instruments. 154

155 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the financial year ended 31 December 2014 B05/TCTD-HN 39. SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES ACCORDING TO CIRCULAR NO. 210/2009/TT-BTC (continued) 39.2 Financial assets which have been pledged mortgaged In the year the Bank and its subsidiary did not have any financial assets which have been pledged or mortgaged to secure for loans or have been transferred under the sale and repurchase contracts with the SBV and other credit institutions. 40. HEDGING For assets and liabilities management the Bank and its subsidiary has used derivatives for hedging to mitigate credit risk and market risk. Hedging is applied to specific derivatives a portfolio of financial instruments having fixed interest rate as well as total financial position. The Bank and its subsidiary has used fair value hedging to mitigate the risk from the fluctuation of financial assets and liabilities' fair value caused by the changes in interest rate and foreign exchange rate. For interest rate hedging hedged financial instruments include loans and advances to customers available-for-sale debt securities and issued valuable papers. For currency hedging the Bank has used swap contracts. 41. SUBSEQUENT EVENTS AFTER THE CONSOLIDATED BALANCE SHEET DATE There has been no significant event occurring after the consolidated balance sheet date which would require adjustments or disclosures to be made in the consolidated financial statements. 42. EXCHANGE RATES OF APPLICABLE FOREIGN CURRENCIES AGAINST VIETNAM DONG AT YEAR END VND VND SJC gold (one tenth of a tale) 155

156 VI.3. Opinions of internal auditors In 2014 based on the approved internal audit plan the Board of Internal Auditors conducted auditing Head Office's divisions centers departments sections subsidiary branches and transaction offices in Eximbank's network by means of sampling and risk orientation prioritizing to focus on auditing the units which are considered having higher risk levels than others. The responsibilities of the Board of Internal Auditors are giving opinions about: - Eximbank's financial statements of Completeness of the internal control system - Compliance by the units Scope of auditing in 2014: - Head Office's divisions departments/sections/centers - Branches - Transaction offices Pursuant to Decision No. 37/2006/QD-NHNN dated August by the State Bank of Vietnam the Board of Internal Auditors of Eximbank was established under Decision No. 99/EIB/HDQT-07 dated May and operated under the Regulations on Internal Audit issued in conjunction with Decision No. 35/EIB/HDQT-07 dated March by the Board of Directors of Eximbank. Pursuant to the Law on Credit Institutions 2010 Circular No. 44/2011/TT-NHNN dated December by the State Bank of Vietnam on August the Board of Directors of Eximbank issued Decision No. 285/2012/EIB/QD-HDQT providing for Regulation on the organization and operations of the Board of Internal Auditors superseding the previous Regulations on Internal Audit (issued under Decision No. 35/EIB/HDQT-07) Therefore the organization and operations of Eximbank's Board of Internal Auditors are performed in accordance with the Regulation on the organization and operations of the Board of Internal Auditors coming into effect from August Besides the Board of Internal Auditors must observe auditing standards and professional ethical norms. The purpose of consulting the opinions of the Board of Internal Auditors is to provide necessary assurance for readers of the financial statements Board of Directors and Board of Supervisors in assessing the efficiency of the internal control system. Also recommendations by the Board of Internal Auditors are raised for the units to perfect their internal control system and remedy the errors. 156

157 Opinions of Internal Auditors Internal auditors had audited the interim and whole-year financial statements of 2014 and monitored risk indicators as required and hereby confirmed that the financial statements of 2014 of Eximbank were prepared in accordance with prevailing regulations and forms enclosed with Decision No. 16/2007/QD NHNN dated April by the State Bank of Vietnam providing for the financial reporting regimes of credit institutions and Circular No. 52/2012/TT BTC dated April by the Ministry of Finance giving guidance on the disclosure in the stock market. In all material aspects the figures reflected in the financial statements of 2014 of Eximbank were sufficiently apparently and reasonably shown and independently audited by Ernst & Young. The financial indicators of Eximbank were within the permitted limits as defined by the State Bank of Vietnam. Internal auditors realized that the internal control system of Eximbank was fully set up for all operations in all divisions departments/sections/centers branches and transaction offices ensuring compliance and risk control during their course of operation. Risks in operations were fully identified and assessed thus proper risk management policies are timely given in line with actual conditions. Especially in 2014 general difficult progresses of Vietnam's economy and unfavorable business environment directly affected the domestic financial-banking sector. Based on the State Bank of Vietnam's regulations Eximbank paid attention to analyze and evaluate such major risks as credit risk (particularly actual status of credit quality) operational risk market risk (particularly liquidity risk) legal risk and risks due to regulatory policies concerning banking activities. Through which Eximbank's leaders issued appropriate decisions and had cautious movements in business policies so as for the Bank to maintain stability and be able to develop in harmony with common growth pace of Vietnamese banking sector. In addition regular supervision was also attached with importance in all operational areas so as to both promote businesses and ensure safety in activities. Controlling procedures including risk management were sufficiently expressed in operational workflows and constantly improved to suit with risk management objectives and development process of Eximbank. From the opinions collected during several audits in 2014 the Board of Internal Auditors assessed that the internal control system of Eximbank was in line with the regulations of the State Bank of Vietnam. Although Eximbank suffered direct impacts from common obstacles of Vietnamese economy as well as 157

158 the consequences accumulated over the years and its business performance in 2014 was at a lower level than that of previous years (due to reversing accrued interest with respect to restructured loans and loans sold to VAMC and setting aside provision as per the general regulations of the State Bank of Vietnam); however Eximbank still ensured prudent ratios in operations especially tightly controlling over actual status of credit quality to serve as premise for sustainable development in the coming years. 158

159 MILESTONES IN 2014

160 AWARDS In March 2014 Vietnam Export Import Commercial Joint Stock Bank-Eximbank was honorably bestowed Excellence in International Payments award by The Bank of New York Mellon. This award is the acknowledgement of a well-established and reputable foreign financial institution for Eximbank's automatic payment message quality. In July 2014 Eximbank was presented Best award by Ho Chi Minh City Stock Exchange and Vietnam Investment Review newspaper. This is the fourth consecutive year Eximbank's Annual Report wins high position in the polls. In August 2014 Eximbank continued to receive the Best Bank in Vietnam 2014 award for the second consecutive year by Euromoney a leading magazine of Euromoney Institutional Investor PLC which is based in London. In August 2014 Eximbank continued to be ranked in Top 1000 World Banks in 2014 by The Banker a leading magazine in the financial industry. Eximbank is honored to be in the list of the world's leading banks for many consecutive years. Such ranking has proved Eximbank's outstanding growth in the period of world economic integration and development. In August 2014 Eximbank was bestowed Top 100 Virtue-Talented Managers and Top 100 Most Outstanding Enterprises awards by Vietnam Enterprise Association. In October 2014 Eximbank was selected as Strong and Sustainable Enterprises 2014 by Businessmen Cultural Center. COMMUNITY-ORIENTED ACTIVITIES Apart from focusing on business development and brand promotion Eximbank also expressed its interests in and sharing towards the community thus enhancing the Bank's image and brand value to all social classes and discriminating its trademark from other peers by means of: - Educational sponsorship for scholarship funds educational promotion associations school construction etc. - Medical aid to poor people in way of offering health insurance cards constructing medical service units and consolidating the healthcare network. - Sponsorship of the construction of houses and bridges gratitude programs prevention of natural disasters and many other programs. - Supporting soldiers at islands through the Heading towards the homeland's islands DK1 160

161 drilling rig program sponsoring scholarships for soldiers' children through the Caring hinterland assuring islands program. - Cooperating with the Youth Union of Ho Chi Minh City to build a Green-Clean-Beautiful environment. After a year of implementing charity and community-oriented programs Eximbank gave a hand to share difficulties and contribute to bring joy to the community and society typically as: - Facilitating poor patients in Ho Chi Minh City to receive health insurance cards for free medical treatment. - Supporting to care for fishermen and sea police force through the For the beloved Spratly islands for the nation's front Fund. - Supporting difficulty-overcoming scholarships of Banking University of Ho Chi Minh City and more than 1000 scholarships for poor pupils and students with great desire for education all over the country such as Da Nang Quang Ngai Ho Chi Minh City etc. - Supporting the Youth Union of Ho Chi Minh City to implement 03 social programs. - Supporting the Elderly Care Fund of Ho Chi Minh City. - Supporting the construction and renovation of schools and kindergartens for children in remote areas. The sponsorship of charity and community-oriented programs has created great resonance for Eximbank's brand name and its image has also become familiar and touched people's hearts. The above contributions have made the Bank's brand name be acknowledged and highly appreciated by the community associations and society. 161

162 OPERATING NETWORK

163 NORTH REGION EXIMBANK'S REPRESENTATIVE OFFICE IN HANOI (Levels 1-5) Building No.91 Nguyen Thai Hoc St. Hanoi Tel: (04) Fax: (04) Hang Bong Transaction Office 189 Hang Bong St. Hoan Kiem Dist. Hanoi. Tel: (04) Fax: (04) EXIMBANK HANOI BRANCH Trung Yen Transaction Office 19 Tran Hung Dao St. Hoan Kiem Dist. Hanoi. No. 143 Trung Kinh St. Cau Giay Dist. Hanoi Tel: (04) Fax: (04) Tel: (04) Fax: (04) Nguyen Du Transaction Office Trung Hoa Transaction Office Levels 1+2 Build No. 76 Mai Hac De St. Hanoi. Lot NV-B30 Nguyen Thi Dinh St. Hanoi. Tel: (04) Fax: (04) Tel: (04) Fax: (04) Bach Mai Transaction Office Cua Dong Transaction Office Levels 2+3 Building No. 134 Bach Mai St. Hanoi. No.1 Duong Thanh St. Hoan Kiem Dist. Hanoi. Tel: (04) Fax: (04) Tel: (04) Fax: (04) Hang Than Transaction Office Thang Long Transaction Office 18 Hang Than St. Ba Dinh Dist. Hanoi. Technological Center Thang Long Industrial Zone Hanoi. Tel: (04) Fax: (04) Tel: (04) Fax: (04) Xuan Dieu Transaction Office 96 Yen Phu St. Yen Phu Ward Tay Ho Dist. Hanoi. Tel: (04) Fax: (04) Tay Ho Transaction Office 509B Lac Long Quan St. Tay Ho Dist. Hanoi. Tel: (04) Fax: (04) Nguyen Chi Thanh Transaction Office No.91A Nguyen Chi Thanh St. Dong Da Dist. Hanoi. Tel: (04) Fax: (04) Ly Thuong Kiet Transaction Office 30 Ly Thuong Kiet St. Hoan Kiem Dist. Hanoi. Tel: (04) Fax: (04) Ba Trieu Transaction Office Levels 1-4 Building No. 2C Thai Phien St. Hanoi. Tel: (04) Fax: (04) EXIMBANK BA DINH BRANCH Levels 1-2 HAREC Building No. 4A Lang Ha St. Hanoi. Tel: (04) Fax: (04) My Dinh Transaction Office 60 Lang Ha St. Lang Ha Wd. Dong Da Dist. Hanoi Tel: (04) Fax: (04) EXIMBANK THU DO BRANCH Levels 1-5 Building No. 257 Giai Phong St. Hanoi Tel: (04) Fax: (04) Tran Khat Chan Transaction Office 439 Tran Khat Chan St. Hai Ba Trung Dist. Hanoi Tel: (04) Fax: (04) Tay Son Transaction Office 108 Tay Son St. Dong Da Dist. Hanoi Tel: (04) Fax: (04) EXIMBANK LONG BIEN BRANCH 558 Nguyen Van Cu St. Long Bien Dist. Hanoi Tel: (04) Fax: (04) Viet Hung Transaction Office Level 1 No. 567 Ngo Gia Tu St. Long Bien Dist. Hanoi. Tel: (04) Fax: (04) Dong Xuan Transaction Office 67 Hang Bo St. Hoan Kiem Dist. Hanoi. Tel: (04) Fax: (04) Nguyen Thai Hoc Transaction Office Levels 1-2 Bld No. 91 Nguyen Thai Hoc St. Hanoi Tel: (04) Fax: (04)

164 Lo Duc Transaction Office Nomura Hai Phong Industrial Zone Transaction Office Level 1 No. 73 Lo Duc St. Hai Ba Trung Dist. Hanoi. Side gate of Nomura Industrial Zone Hai Phong City. Tel: (04) Fax: (04) Tel: (0313) Fax: (0313) EXIMBANK DONG DA BRANCH EXIMBANK QUANG NINH BRANCH Levels 1+ 2 Bld No. 292 Ty Son Dong Da Dist. Hanoi Tran Hung Dao St. Ha Long City Quang Ninh. ÑT: (04) Fax: (04) Tel: (033) Fax: (033) Kim Lien Transaction Office Cam Pha Transaction Office 206 Xa Dan St. Dong Da Dist. Hanoi. 114 Tran Phu St. Block 30b Cam Pha Town Quang Ninh. Tel: (04) Fax: (04) Tel: (033) Fax: (033) Tran Dang Ninh Transaction Office Mong Cai Transaction Office 6C Block 24 Nghia Do Wd. Cau Giay Dist. Hanoi 01 Hung Vuong St. Mong Cai City Quang Ninh. Tel: (04) Fax: (04) Tel: (033) Fax: (033) Ha Dong Transaction Office Quang Yen Transaction Office 24 Quang Trung St. Ha Dong Hanoi. 66 Le Loi St. Quang Yen Town Quang Ninh. Tel: (04) Fax: (04) Tel: (033) Fax: (033) Dong Tam Transaction Office Uong Bi Transaction Office 10 B2 Tran Dai Nghia St. Hai Ba Trung Dist. Hanoi 434 Quang Trung St. Uong Bi Town Quang Ninh. Tel: (04) Fax: (04) Tel: (033) Fax: (033) EXIMBANK CAU GIAY BRANCH Ha Long Transaction Office Machinco Building No. 444 Hoang Hoa Tham St. Hanoi. Ground Floor Post Office Building Ha Long Quang Ninh. ÑT: (04) Fax: (04) Tel: (033) Fax: (033) Nguyen Co Thach Savings Fund Level 1 Building No. 136 Hoang Quoc Viet St. Hanoi. EXIMBANK VINH BRANCH 182 Nguyen Van Cu St. Vinh City Nghe An. Tel: (04) Fax: (04) Tel: (038) Fax: (038) EXIMBANK HAI PHONG BRANCH Nam Vinh Transaction Office 32 Tran Phu St. Ngo Quyen Dist. Hai Phong City. 343 Le Duan St. Trung Do Ward Vinh City Nghe An Tel: (031) Fax: (031) Tel: (038) Fax: (038) Tran Nguyen Han Transaction Office Bac Vinh Transaction Office 274 Tran Nguyen Han St. Le Chan Dist. Hai Phong City. 150 Nguyen Trai St. Vinh City Nghe An Tel: (031) Fax: (031) Tel: (038) Fax: (038) Thuy Nguyen Transaction Office Thanh Chuong Transaction Office Front side of TL359 St. Phu Lien Hamlet Hai Phong City. Block 4 Thanh Chuong Town Nghe An Tel: (031) Fax: (031) Tel: (038) Fax: (038) To Hieu Transaction Office Yen Thanh Transaction Office 172 To Hieu St. Le Chan Dist. Hai Phong City. Block 1 Yen Thanh Town Yen Thanh Dist. Nghe An Tel: (031) Fax: (031) Tel: (038) Fax: (038)

165 Dien Chau Transaction Office Cau Kenh Bac Transaction Office Kiosk No.2 Dien Chau Trading Center Nghe An 385 Nguyen Van Cu St. Vinh City Nghe An Tel: (038) Fax: (038) Tel: (038) Fax: (038) Do Luong Transaction Office Block 3 Do Luong Town Do Luong Dist. Nghe An Tel: (038) Fax: (038) CENTRAL AND HIGHLANDS REGION EXIMBANK QUANG NGAI BRANCH Hoa Cuong Transaction Office 35A - 35B Hung Vuong Quang Ngai City Quang Ngai. 205 Phan Chau Trinh St. Hai Chau Dist. Da Nang City. Tel: (055) Fax: (055) Tel: (0511) Fax: (0511) Nguyen Nghiem Transaction Office Thuan Phuoc Transaction Office 268 Nguyen Nghiem St. Quang Ngai City Dong Da St. Hai Chau Dist. Da Nang Tel: (055) Fax: (055) Tel: (0511) Fax: (0511) EXIMBANK DA NANG BRANCH EXIMBANK QUANG NAM BRANCH 48 Tran Phu St. Hai Chau Dist. Da Nang City Phan Chu Trinh St. Tam Ky City Quang Nam Tel: (0511) Fax: (0511) Tel: (0510) Fax: (0510) Hai Chau Transaction Office Hoi An Transaction Office 484 Hoang Dieu St. Hai Chau Dist. Da Nang City. 22 Tran Hung Dao St. Hoi An City Quang Nam Tel: (0511) Fax: (0511) Tel: (0510) Fax: (0510) Thanh Khe Transaction Office Nam Phuoc Transaction Office 203 Ong Ich Khiem St. Hai Chau Dist. Da Nang City. National Highway No. 1A Long Xuyen 1 Str. Quang Nam Tel: (0511) Fax: (0511) Tel: (0510) Fax: (0510) Ham Nghi Transaction Office EXIMBANK HUE BRANCH 44A Ham Nghi St. Thanh Khe Dist. Da Nang City. 205 Tran Hung Dao St. Phu Hoa Ward Hue City Tel: (0511) Fax: (0511) Tel: (054) Fax: (054) Son Tra Transaction Office EXIMBANK NHA TRANG BRANCH Ngo Quyen St. Son Tra Dist. Da Nang City. 63 Yersin St. Phuong Sai Ward Nha Trang City Tel: (0511) Fax: (0511) Tel: (058) Fax: (058) EXIMBANK HUNG VUONG BRANCH Quang Trung Transaction Office Nguyen Van Linh St. Thanh Khe Dist. Da Nang. 61A Quang Trung St. Loc Tho Ward Nha Trang City Tel: (0511) Fax: (0511) Tel: (058) Fax: (058) Dien Bien Phu Transaction Office Dien Khanh Transaction Office 433 Dien Bien Phu St. Thanh Khe Dist. Da Nang City. 246 Lac Long Quan Dien Khanh Town Nha Trang City Tel: (0511) Fax: (0511) Tel: (058) Fax: (058) Cho Con Transaction Office Le Hong Phong Transaction Office Hung Vuong St. Thanh Khe Dist. Da Nang City. 584 Le Hong Phong St. Nha Trang City Tel: (0511) Fax: (0511) Tel: (058) Fax: (058)

166 EXIMBANK BUON MA THUOT BRANCH Nguyen Tat Thanh Transaction Office Phan Boi Chau St. BMT City Dac Lac 316 Nguyen Tat Thanh St. Buon Ma Thuot City Dac Lac Tel: (0500) Fax: (0500) Tel: (0500) Fax: (0500) Buon Ho Transaction Office EXIMBANK DA LAT BRANCH 327 Hung Vuong St. Buon Ho Wd. Dac Lac 2D-2D/1-2E Nguyen Van Troi St. Da Lat City Lam Dong. Tel: (0500) /7/9 Fax: (0500) Tel: (063) Fax: (063) Buon Ma Thuot Market Transaction Office Duc Trong Transaction Office Kiost No.C21 BMT Market Thong Nhat Wd. BMT No. 25 Thong Nhat St. Duc Trong Dist. Lam Dong. Tel: (0500) Fax: (0500) Tel: (063) Fax: (063) Phan Chu Trinh Transaction Office 240 Phan Chu Trinh St. Buon Ma Thuot City Dac Lac Tel: (0500) /8/9 Fax: (0500) Le Duan Transaction Office 420 Le Duan St. Buon Ma Thuot City Dac Lac Tel: (0500) Fax: (0500) Bao Loc Transaction Office 11 De Tham St. Ward 1 Bao Loc Town Lam Dong. Tel: (063) Fax: (063) Chi Lang Transaction Office Block A7 Suong Mai Planning Area Da Lat Lam Dong. Tel: (063) Fax: (063) SOUTH-EASTERN REGION EXIMBANK DONG NAI BRANCH EXIMBANK BINH DUONG BRANCH 223 Ha Huy Giap St. Bien Hoa City Dong Nai. 244 Binh Duong Blvd. Thu Dau Mot Town Binh Duong Tel: (0613) Fax: (0613) Tel: (0650) Fax: (0650) Long Thanh Transaction Office Binh Duong Canary Transaction Office National Road 51A Block 19 Long Thanh Dist. Dong Nai. 231 Yersin St. Thu Dau Mot Town. Binh Duong. Tel: (061) Fax: (061) Tel: (0650) Fax : (0650) Trang Bom Transaction Office Di An Transaction Office 118 An Chu Hamlet Trang Bom Dist. Dong Nai. 3/21 Tran Hung Dao St. Di An Dist. Binh Duong. Tel: (061) Fax: (061) Tel: (0650) Fax : (0650) Long Khanh Transaction Office My Phuoc Transaction Office 245 Hung Vuong St. Quarter 5 Long Khanh Town DN C4-Lot16 - Block I Street No. DA1-1 Rupby Land BD Tel: (061) Fax: (061) Tel: (0650) Fax : (0650) Tan Tien Transaction Office 113 Pham Van Thuan St. Bien Hoa City Dong Nai. Tel: (061) Fax: (061) Gia Kiem Transaction Office 5/E1 National Road No. 20 Thong Nhat Dist. Dong Nai. Tel: (061) Fax: (061) Bien Hoa Transaction Office 881 Pham Van Thuan St. Bien Hoa City Dong Nai. Tel: (0613) Fax: (0613) Tan Phuoc Khanh Transaction Office 08 Block E Tan Phuoc Khanh Trade Center Binh Duong. Tel: (0650) Fax : (0650) Lai Thieu Transaction Office 544A Nguyen Trai St. Lai Thieu Town Binh Duong. Tel: (0650) Fax : (0650) EXIMBANK BA RIA VUNG TAU BRANCH 43 Tran Hung Dao St. Vung Tau City Ba Ria Vung Tau. Tel: (064) Fax: (064)

167 Ba Ria Transaction Office Phuoc Tinh Transaction Office Bach Dang St. Ba Ria Town Ba Ria Vung Tau. 286 (T17) - Block 8 Tan Phuoc Hamlet Ba Ria Vung Tau. Tel: (064) Fax: (064) Tel: (064) Fax : (064) Tan Thanh Transaction Office Ngai Giao Transaction Office No. 27 National Road No. 51 Tan Thanh Dist. BRVT 270 Hung Vuong St. Chau Duc Dist. Ba Ria Vung Tau Tel: (064) Fax : (064) Tel: (064) Fax: (064) Nguyen An Ninh Transaction Office 513 Nguyen An Ninh St. Vung Tau City Ba Ria Vung Tau. EXIMBANK BINH PHUOC BRANCH GF Level 1&2 Dong Xoai ITC 1029 Phu Rieng Do St. BP Tel: (064) Fax : (064) Tel: (0651) Fax: (0651) HO CHI MINH CITY REGION HO CHI MINH CITY BRANCH Hang Xanh Transaction Office Building No. 229 Dong Khoi St. Dist 1 Hochiminh City. 155A-155B Dien Bien Phu St.Binh Thanh Dist. HCM City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Trung Son Transaction Office Van Thanh Transaction Office Street 9A Trung Son Residential Area Binh Chanh 85D2 Street Van Thanh Bac Binh Thanh Dist. HCM City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Tao Dan Transaction Office EXIMBANK SAIGON BRANCH Viet Dragon Tower Building 141 Nguyen Du St. Dist. 1. Building No Le Thi Hong Gam St. Dist. 1 HCM Tel: (08) Fax: (08) Tel: (08) Fax: (08) Le Loi Transaction Office Vo Van Tan Transaction Office 08 Le Loi St. Ben Nghe Ward Dist. 1 Hochiminh City. 365 Vo Van Tan St. Ward 5 Dist. 3 Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Minh Khai Transaction Office Da Kao Transaction Office Ground Fl. 179EF CMT 8 Wd. 14 Dist. 3 HCM City. 23A-B Nguyen Dinh Chieu St. Dist. 1 Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Truong Dinh Transaction Office Nguyen Cong Tru Transaction Office Ground Fl. 24B Truong Dinh Wd. 14 Dist. 3 HCM City. 130 Nguyen Cong Tru St. Dist. 1 Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Ben Thanh Transaction Office Truong Son Transaction Office Ngo Duc Ke St. Ben Nghe Ward Dist 1 HCM City. 39B Truong Son St. Tan Binh Dist. Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Thanh Da Transaction Office Phan Xich Long Transaction Office XVNT St. Wd. 26 Binh Thanh Dist. HCM City. Ha Phan Building 05 Phan Xich Long St. Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Bui Thi Xuan Transaction Office Thao Dien Transaction Office Building No. 122A-B-C Bui Thi Xuan Dist. 1 HCM City. 14R-14S Quoc Huong St. Dist. 2 Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08)

168 Ben Chuong Duong Transaction Office Ho Van Hue Transaction Office 327 Ben Chuong Duong Dist. 1 Hochiminh City. 164 Ho Van Hue St. Phu Nhuan Dist. Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) EXIMBANK CHO LON BRANCH Go Vap Transaction Office 141 Nguyen Chi Thanh St. Dist. 5 Hochiminh City 126 Nguyen Oanh St. Go Vap Dist. Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) District 6 Transaction Office Phan Dinh Phung Transaction Office 41 Hau Giang Wd. 2 Dist. 6 Hochiminh City 130 Phan Dinh Phung St. Phu Nhuan Dist. HCM City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Kim Bien Transaction Office 161 Hai Thuong Lan Ong St. Wd. 13 Dist. 5 HCM City. Tel: (08) Fax: (08) Phu Tho Transaction Office 286 Ly Thuong Kiet St. Wd. 14 Dist. 10 Hochiminh City. Tel: (08) Fax: (08) Hong Bang Transaction Office 258 Hong Bang St. Ward 15 Dist. 5 Hochiminh City. Tel: (08) Fax: (08) Hung Dao Transaction Office 466 Tran Hung Dao St. Wd. 2 Dist. 5 Hochiminh City. Tel: (08) Fax: (08) An Dong Transaction Office 265 Tran Phu St. Wd. 8 Dist. 5 Hochiminh City. Tel: (08) Fax: (08) District 8 Transaction Office Pham Hung St. Wd. 5 Dist. 8 Hochiminh City. Tel: (08) Fax: (08) Ly Thai To Transaction Office 291 Ly Thai To St. Wd. 9 Dist. 10 Hochiminh City. Tel: (08) Fax: (08) Nhat Tao Transaction Office 410 Nguyen Tri Phuong St. Wd. 4 Dist. 10 HCM City Tel: (08) Fax: (08) EXIMBANK TAN DINH BRANCH Nguyen Huu Cau St. Dist. 1 Hochiminh City. Tel: (08) Fax: (08) Nguyen Thai Son Transaction Office 250 Nguyen Thai Son St. Go Vap Dist. Hochiminh City. Tel: (08) Fax: (08) Ben Nghe Transaction Office 11A 11B Nguyen Thi Minh Khai St. Dist. 1 HCM City. Tel: (08) Fax: (08) EXIMBANK HOA BINH BRANCH 78 Nguyen Trai St. Wd. 3 Dist. 5 Hochiminh City. Tel: (08) Fax: (08) Ky Hoa Transaction Office 773 Le Hong Phong (extended) Dist.10 Hochiminh City. Tel: (08) Fax: (08) Dong Khanh Transaction Office 81 Bui Huu Nghia Wd. 5 Dist. 5 Hochiminh City. ÑT: (08) Fax: (08) Hoa Hung Transaction Office 138 To Hien Thanh St. Wd. 15 Dist. 10 Hochiminh City. Tel: (08) Fax: (08) EXIMBANK DISTRICT 10 BRANCH 65-65A and 63/6 Ba Thang Hai St. Dist. 10 Hochiminh. Tel: (08) Fax: (08) Ba Thang Hai Transaction Office 530 Ba Thang Hai St. Wd. 14 Dist. 10 Hochiminh City. ÑT: (08) Fax: (08) Van Hanh Transaction Office 373 Su Van Hanh (extended) Wd. 12 Dist. 10 HCM City. Tel: (08) Fax: (08)

169 Ban Co Transaction Office Nguyen Thi Thap Transaction Office 619 Nguyen Dinh Chieu St. Dist. 3 Hochiminh City. 527 Nguyen Thi Thap St. Dist. 7. Hochiminh City Tel: (08) Fax: (08) Tel: (08) Fax: (08) Le Van Sy Transaction Officeõï Phu My Transaction Office 213 Le Van Sy St. Wd. 14 Dist. 3 Hochiminh City. No.07 Lot O Hoang Quoc Viet St. Dist. 7 Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Thanh Thai Transaction Office 61 Thanh Thai St. Wd. 14 Dist. 10 Hochiminh City. EXIMBANK CONG HOA BRANCH 19 Cong Hoa St. Wd. 12 Tan Binh Dist. Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Minh Phung Transaction Office Vo Thanh Trang Transaction Office 90 Minh Phung St. Wd. 5 Dist. 6 Hochiminh City. 509 Truong Chinh St. Tan Binh Dist. Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) EXIMBANK DISTRICT 11 BRANCH An Suong Transaction Office /1 Au Co St. Wd. 14 Dist. 11 Hochiminh City Truong Chinh St. Dist. 12 Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Tan Binh Transaction Office Trung Chanh Transaction Office 1115 Cach Mang Thang 8 St. Tan Binh Dist. HCM City. 150/3 Nguyen Anh Thu St. Hoc Mon Dist. Hochiminh Tel: (08) Fax: (08) Tel: (08) Fax: (08) Bac Hai Transaction Office Pham Van Hai Transaction Office 02 Bis Cuu Long St. Bac Hai Residential Block HCM City. 156 Pham Van Hai St. Tan Binh Dist. Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Au Co Transaction Office Nguyen Son Transaction Office Au Co St. Tan Binh Dist. Hochiminh City Nguyen Son St. Tan Phu Dist. Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Phu Lam Transaction Office 616 Hong Bang St. Wd. 16 Dist. 11 Hochiminh City. EXIMBANK DISTRICT 4 BRANCH H2 Building Hoang Dieu St. Dist. 4 Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Dam Sen Transaction Office 377A Minh Phung St. Wd. 10 Dist. 11 Hochiminh City. Khanh Hoi Transaction Office 42 Vo Van Tan St. Wd. 6 Dist. 3 Hochiminh City Tel: (08) Fax: (08) Tel: (08) Fax: (08) EXIMBANK DISTRICT 7 BRANCH Ly Tu Trong Transaction Office 448A Huynh Tan Phat St. Dist. 7 Hochiminh City. 232 Ly Tu Trong St. Dist. 1 Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) ø Phu Xuan Transaction Office Thi Nghe Transaction Office 6/8 Block 5 Nha Be Town Nha Be Dist. Hochiminh City A XVNT St. Binh Thanh Dist. Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08)

170 EXIMBANK PHU MY HUNG BRANCH EXIMBANK BINH PHU BRANCH Vinamilk Tower 10 Tan Trao St. Dist. 7 Hochiminh City Cho Lon St. Dist. 6 Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Pham The Hien Transaction Office Binh Tri Dong Transaction Office 721 Pham The Hien St. Wd. 4 Dist. 8 Hochiminh City A Str. No. 1 Binh Tri Dong Binh Tan Dist. HCM Tel: (08) Fax: (08) Tel: (08) Fax: (08) Tan Phong Transaction Office Tan Phu Transaction Office 1469 Nguyen Van Linh My Toan Residential Area Dist A Luy Ban Bich St. Tan Phu Dist. HCM City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) EXIMBANK THU DUC BRANCH Binh Chanh Transaction Office 147A Vo Van Ngan St. Thu Duc Dist. Hochiminh City. A29/25 National Road No.50 Binh Chanh Dist. Hochiminh Tel: (08) Fax: (08) Tel: (08) Fax: (08) Phuoc Long Transaction Office Go Dau Transaction Office 479 Do Xuan Hop Phuoc Long B Wd. Dist. 9 HCM City. 54 Go Dau St. Tan Phu Dist. Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) District 9 Transaction Office EXIMBANK TAN SON NHAT BRANCH 35 Le Van Viet St. Hiep Phu Wd. Dist. 9 Hochiminh City. 307 Nguyen Van Troi St. Tan Binh Dist. Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Tam Binh Transaction Office EXIMBANK DISTRICT 3 BRANCH 141 National Road No. 1A Thu Duc Dist. Hochiminh City. Building No. 21 Ky Dong St. Dist. 3 Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Le Van Ninh Transaction Office EXIMBANK BINH TAN BRANCH 12 Le Van Ninh St. Thu Duc Dist. Hochiminh City. 10 Kinh Duong Vuong St. Dist. 6 Hochiminh City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) District 2 Transaction Office An Lac Transaction Office 08 Tran Nao St. Binh Khanh 2 Hamlet Dist. 2 HCM City Kinh Duong Vuong St. Binh Tan Dist. HCM City. Tel: (08) Fax: (08) Tel: (08) Fax: (08) Linh Xuan Transaction Office 76 National Highway No. 1K Block 3 Thu Duc Dist. HCM Tel: (08) Fax: (08) SOUTH-WESTERN REGION EXIMBANK AN GIANG BRANCH Long Xuyen Transaction Office Hai Ba Trung St. Long Xuyen City An Giang. 3/4 Ton Duc Thang St. Long Xuyen City An Giang. Tel: (076) Fax: (076) Tel: (076) Fax: (076) Chau Doc Transaction Office Phu Tan Transaction Office Nguyen Van Thoai St. Chau Doc City An Giang. Trung Hoa Hamlet Tan Trung Commune Phu Tan Dist. Tel: (076) Fax: (076) Tel: (076) Fax: (076)

171 Chau Phu Transaction Office 21 Tran Khanh Du St. Cai Dau Chau Phu An Giang EXIMBANK LONG AN BRANCH 70 Hung Vuong St. Wd. 2 Tan An Town Long An. Tel: (076) Fax: (076) Tel: (072) Fax: (072) Tan Chau Transaction Office 46 Thoaïi Ngoïc Haàu Tx.Taân Chaâu tænh An Giang EXIMBANK CAN THO BRANCH 08 Phan Dinh Phung St. Ninh Kieu Dist. Can Tho City. Tel: (076) Fax: (076) Tel: (0710) Fax: (0710) EXIMBANK MY THO BRANCH Cai Rang Transaction Office Le Loi St. Wd. 1 My Tho City Tien Giang. 171 National Road No. 1A Cai Rang Dist. Can Tho City. Tel: (073) Fax: (073) Tel: (0710) Fax: (0710) Cai Lay Transaction Office Hung Loi Transaction Office 41 30/4 Street Block 2 Cai Lay Dist. Tien Giang. 221A Ba Thang Hai St. Ninh Kieu Dist. Can Tho City Tel: (073) Fax: (073) Tel: (0710) Fax: (0710) Ap Bac Transaction Office An Hoa Transaction Office 366 Ap Bac St. Wd. 5 My Tho City Tien Giang. 177D Nguyen Van Cu St. Ninh Kieu Dist. Can Tho City. Tel: (073) Fax: (073) Tel: (0710) Fax: (0710) EXIMBANK TAY DO BRANCH An Phu Transaction Office Lot P+R Tran Van Kheo St. Ninh Kieu Dist. Can Tho City /4 St. Ninh Kieu Dist. Can Tho City. Tel: (0710) Fax: (0710) Tel: (0710) Fax: (0710) O Mon Transaction Office Binh Thuy Transaction Office National Road No. 91 O Mon Dist. Can Tho City. 308 CMT 8 St. Binh Thuy Dist. Can Tho City. Tel: (0710) Fax: (0710) Tel: (0710) Fax: (0710) Thot Not Transaction Office 568 National Road No.91(Long Thanh A Area) Can Tho EXIMBANK BAC LIEU BRANCH 477 Tran Phu St. Wd. 7 Bac Lieu City Bac Lieu. Tel: (0710) Fax: (0710) Tel: (0781) Fax: (0781) An Nghiep Transaction Office 174 Tran Hung Dao St. Ninh Kieu Dist. Can Tho City. EXIMBANK KIEN GIANG BRANCH Pham Hong Thai Rach Gia City Kien Giang Tel: (0710) Fax: (0710) Tel: (077) Fax: (077) Tra Noc Transaction Office 37 Le Hong Phong St. Binh Thuy Dist. Can Tho City. Tel: (0710) Fax: (0710)

172