Guests at the conference on 2010 Business Plan Implementation

 

The year 2009 was a tough year of challenges for the economy of Vietnam in the global economic recession context. Bao Viet Holdings and its member companies have timely come up with proper solutions and counterstrategies to overcome the difficulties, ensured stable business operations and development, successfully accomplished the 2009 business plans adopted by the Shareholders’ Meeting.

 

 

 

 

Total consolidated profits before tax reached VND1074 billion or 18.9% exceeding the plan. Consolidated corporate profits after tax reached VND866 billion or 16.25% exceeding the plan. Bao Viet Holdings’ profits after tax reached VND670 billion or 31.84% above the plan, the ratio of profit after tax over charter capital is 11.7% or 131.8% the plan.

 

The above business results proved Bao Viet successful achievements of the business growth targets set by the Shareholders’ Meeting. With such achievements, the proposed dividends at the Shareholders’ Meeting will be 10%.

 

Together the corporate model development, exceeding all 2009 financial targets, Bao Viet Holdings also made other important achievements in coordination with its subsidiaires. It was the management reform in financial, investment, risk, asset management – obligation (ALCO) procedures issuance; strategy building, manpower boosting, and intensifying internal audits; completing 2009 quarterly financial reports in IFRS standards. The corporate also employed international softwares in life insurance (Talisman), non-life insurance (InsureJ), securities (Core Securities), accounting (Sun Account), human resource (Ufida). Bao Viet Holdings also completed the learning map, salary scale, and continues to implement the third phase of the Technical Support and Capability Transfer Project with the strategic partner HSBC, increasing its financial power from the charter capital boost through the separate issuance to HSBC of VND1878 billion beginning 2010. These are the important activities implemented in the past year.

 

Despite the fierce competition in the non-life business and other economic challenges through out the year 2009, Bao Viet Insurance Corporation still maintained its No. 1 position in the non-life marketwith total renvenues reached VND3973 billion in estimation, a 8.5% growth compared with 2008. Profit before income tax reached VND216 billion or 23.75% increase from 2008.

 

In the life business, revenues were estimated as VND3705 billion equivant to 8.12% growth and exceeding the 2008 plan 5%. With extensive efforts to improve professionalism, customer service, the year 2009 marked great renvenue successes of Bao Viet Life from new development reaching VND730 billion, 46% increase compared with 2008, higher than the market average growth. Such achievement is significantly due to the successful deployment of the joint product. Renvenue from this product accounts for 30% the total renvenues from new development in 2009. Bao Viet Life’s profit before income tax was estimated as VND367 billion, a 188% increase from 2008 and exceeding the 2008 plan 12.96%.

 

In the investment business, Bao Viet Fund’s renvenue reached VND54 billion, increasing 12% from 2008, exceeding 20% the plan. Profit before tax was estimated as VND28 billion, increasing 15% from 2008, accomplishing 97% the plan.

 

In banking, Bao Viet Brank has increased its total assets to VND7373 billion, total deposit reached VND3514 billion, outstanding credits reached VND2395 billion, network expanded with 2 branches and 8 transaction offices.

 

In securities and investment consulting, Bao Viet Securities has met its plan early for the year 2009 with renvenue of VND276 billions, 41% exceeding the plan, achieved 28% growth from 2008.

 

In investment and real estate, Bao Viet Invest, newly founded in 2008 as a real estate management service provider, has gradually come into shape and completed a number of business transactions with other member companies. 2009 renvenue was estimated as VND23 billion, 21% above the plan.

 

In 2010, Bao Viet Holdings targets to reach a consolidated renvenue of VND11600 billion corporatewide, 13.46% growth from the 2009 estimate, consolidated profit before tax of VND1235 billion, equivalent to 15% growth. The profit over charter capital ratio of the mother company (VND6267 billion after the increase) reached 12%. With such ratio, Bao Viet Holdings estimates dividends to be at 10%.

 

Besides the main goal of growth – effectiveness set forth, Bao Viet Holdings also focuses on the key 5 tasks in building One Bao Viet on One New Foundation in 2010 including: management and technology change and customer service improvement, completing the corporate management model, investing in human resources, increasing coordination among subsidiaries to meet customer financial demands, brand innovation.

 

Investments to resources and business solutions in each field were also presented at the conference by the Bao Viet Holdings’ CEO.

 

 

 

Mr. Le Quang Binh, Chairman of the Board, Bao Viet Holdings stated that the Board highly appreciated the corporate results in all its business operations targeted by the 2009 Shareholders’ Meeting. These achievements are encouraging and significant as a result of decisive implementations with specific emphasis and roadmaps such as adjusting corporate management to international standards, centralizing the corporate information system, R&D and diversifying financial – insurance services, focusing on human resources training and development, promoting the foreign strategic shareholder’s role, successful listing Bao Viet Holdings at Ho Chi Minh City Stock Exchange, completing the separate issuance for the strategic shareholder HSBC Insurance (Asia – Pacific) Holdings Limited to increase the corporate charter capital from VND5730 billion to VND6267 billion.

 

The year 2010 is specially a meaningful year to Vietnam and Bao Viet Holdings. This is the last year in implementing the 5-year socio-economic plan 2006-2010 according to the 10^th National Party Congress’s Resolution. This is the year of congress for the local party units in heading for the 11^th National Party Congress, the year of Thang Long – Hanoi 1000 years, the year of Bao Viet’s 45-year anniversary. Consequently, the successful implementation of the 2010 plan is not only each staff’s obligation throughout the corporate system but also a reasonable demand from shareholders.

 

The Chairman of the Board also emphasized on Bao Viet’s vision for 2020 “to become a leading financial – insurance group in Vietnam with financial power rested upon three platforms: insurance, banking, and investment. Striving to become one of the top 10 most powerful financial - insurance groups in South East Asia”.

 

 

 

The conference was privileged to receive the important guidance speech by Mr. Nguyen Huu Chi – Vice Minister of Finance in which, the key tasks were specified for the implementation process:

 

1. First of all, it is compulsory to improve staff understanding of the tough challenges for the development goal in 2010 in the unpredictable trends of the financial and monetary business. Negligence and self-sastifaction are unacceptable. Be dynamic – innovative – visionary and stick to foreign and domestic market development to make the right decision in time. Ensure corporate governance in the motto: Growth – Effectiveness – Sustainability.

 

2. Continue administrative reform according to the common guidance of the Government and Ministry of Finance. This should be a breakthrough in the management process. Specifically:

 

First: scanning policies, procedures, regulations to consult and propose to the Ministry and the Government for relevant and timely adjustment and enhancement.

 

Second: screening corporate structure, resource allocations in each subsidiary, avoid overlap, irresponsibility; ensure tight cooperation among units in the process.

 

Third: personnel issues should be improved; the training – development – promotion process should be fair and transparent and conducted properly. Department heads must be dedicated, creative, loyal, and constantly increasing their determination for the corporate common growth.

 

Fourth: Take advantage of information technology to improve management. Deploy and expand the current information system through research and development according to international standards. Further promote the role of information technology as a pivotal factor in the corporate development breakthrough.

 

3. Continue to promote the competitive edge as a financial group over other competitors in the industry. This financial group model gives Bao Viet a distinctive advantage in providing multiple services to customers while at the same time gathering capital sources to implement its development strategy. Such will create tremendous power and efficiency in brand building, functional specializing, economy of scale, and coordination in customer service provision.

 

4. The most important issue in management after equitization is corporate management reform. Consequently, management should be internationally standardized with an emphasis on risk management, investment capital procedures corporatewide as well as middle and long-term planning.

 

5. Intensify internal inspection, audits at corporate subsidiaries; improve cost-saving practices; prevent and fight corruption, bureaucracy in business operations; ensure quality and safety alongside growth.

 

6. In 2010, Ministry of Finance has proposed to the Government two insurance projects in agriculture and export. I request the corporate management to prepare the necessary human resources for implementation once these considerably big projects are ratified.

 

7. In this implementation process, I kindly request the Group to launch a competition campaign to celebrate the 65-year anniversary of the financial industry and 45-year anniversary of Bao Viet. Participants will be graded and the whole process will be concluded to pick out prominent samples for corporate benchmarking.

 

Bao Viet Insurance, Bao Viet Life, Bao Viet Securities, Bao Viet Bank, etc. have internally presented their parts on business results, discussed challenges and opportunities as well as potential inter-unit cooperation in 2010 and the years to come.

 

 

 

 

The conference also witnessed a number of agreements signed: Bao Viet Life and Bao Viet Insurance signed agreement on distribution; Bao Viet Holdings, Bao Viet Bank, Bao Viet Securities, and Bao Viet Fund signed agreement on bond trading.

 

 

Within the conference framework, Bao Viet also concluded its 2009 competition campaign, set targets for 2010 and signed mutual competition campaign agreement among subsidiaries.