VIETCOMBANK PROFILE
Trust
our path to success
Sustainable development report
TOTAL SOCIAL SECURITY BUDGET IN 2022
VND 382 billion
Report on social and environmental impacts
At the COP27 Global Climate Change Conference, Vietnam reaffirmed its commitment to achieving net zero emissions by 2050 announced at COP26. Vietnam views the issue of green transition and energy transition as a consistent policy and an economic model that the country chooses.
At the United Nations Framework Convention on Climate Change (COP27) taken place in Sharm El-Sheikh, Egypt. COP27 brought the largest number of participants in history (delegations from nearly 200 countries, 120 heads of state, 40,000 delegates). COP27 aims to realize the ambitious commitments of Heads of State and promote cooperation between parties and push up global efforts to deal with climate and energy crises. At COP27, Vietnam reaffirmed its commitment to achieving net zero emissions by 2050 announced at COP26. Vietnam views the issue of green transition and energy transition as a consistent policy and an economic model that the country chooses.
In the field of banking and finance, in 2022, after a period of formulation and consultation, the State Bank of Vietnam officially issued a Circular guiding the implementation of environmental risk management in credit activities of credit institutions and foreign bank branches effective from June 1st, 2023 (Circular No. 17/2022/TT-NHNN dated December 23rd, 2022).
With a vision to become the number 1 bank in Vietnam, one of the 100 largest banks in Asia, one of the 300 largest financial banking groups in the world, and one of the 1,000 largest listed companies in the world while making contribution to Vietnam’s own development, Vietcombank focuses on improving customer experience, human resource quality, risk management, etc. to ensure Vietcombank meets the criteria of governance, environment and society through the Environmental and Social Management System (ESMS) and the Environmental and Social Risk Management System in line with the Sustainable Development Indicators of Vietnam according to VNSI Standards, step by step towards the Sustainable Development Goals on Environment, Social Governance (ESG) according to international standards GRI, TCFD.
Vietcombank’s Sustainability Report is the overall picture of the Bank’s operations including the Head Office in Hanoi, branches, subsidiaries, representative offices and transaction offices nationwide. Data and Information available for disclosure are updated according to the Bank’s fiscal year starting from January 1st, 2022 and ending on December 31st, 2022.
This sustainable development report is based on references of standards of principles of sustainable development report of Global Reporting Initiative -GRI with 04 main components: Information, economic topis (GRI 200), social topics (GRI 300) and environmental topics (GRI 400). Besides, the report also refers to compliance of Vietcombank with requirements of information transparency on corporate governance policy (GRI 100)
CONTENT OF SUSTAINABLE DEVELOPMENT
ECONOMIC STANDARD
By the end of 2022, total asset value of more than
VND 1.8 quadrillion
Credit scale exceeding
VND 1.15 quadrillion
up 19% as of 2021
Total capital mobilization of
VND 1,26 quadrillion
up 9% as of last year
Adverse developments of international market in 2022 plus changes of local market have caused pressures on the economy. As a major commercial bank in Vietnam, Vietcombank has synchronously implemented many solutions for disease prevention and control, sharing and removing difficulties for customers and supporting economic recovery and growth, stabilizing market sentiment and ensuring safe and highly effective business activities. By the end of 2022, Vietcombank continued to gain outstanding business performance with total asset value of more than VND 1.8 quadrillion, up 28.2% as of 2021; credit scale exceeding VND 1.15 quadrillion, up 19% as of 2021, successfully controlling credit growth ceiling assigned by the State Bank of Vietnam; total capital mobilization of VND 1.26 quadrillion, up 9% as of last year. Vietcombank continues to strictly control credit quality and promote bad debt settlement. The balance of bad debt on the balance sheet is VND 7,820 billion, bad debt ratio being 0.68% while the balance of risk provision fund is at VND 24,779 billion. The loan loss coverage ratio was 317.4% which – the highest level in the banking industry. Vietcombank posted a consolidated profit before tax of VND 37,368 billion, up 36% as of 2021. As of December 30th, 2022, Vietcombank’s market capitalization reach nearly USD 16.5 billion – leading position among the listed banks and top 100 largest listed banks by market capitalization, according to Reuters. With such impressive business performance, Vietcombank continues to be the largest tax paying bank to the State budget with nearly VND 10,798 billion to the State budget in 2022, making it one of the biggest contributors to the State budget.
ENVIRONMENTAL STANDARDS
No violation of environmental regulations was recorded in 2022. Vietcombank always complies with regulations on environmental protection and proactively implement orientations of the Government on environmental protection, encouraging employees to raise awareness and join hands in environmental protection.
Emissions
Exhaust gases
With financial services as its core business, VCB causes no direct exhaust gases but indirect exhaust gases during its operation process.
Noise
The equipment serving business activities is maintained and adjusted on a regular basis to provide minimal noise generation, a quiet and polite business environment for customers, and a civilized and comfortable work environment for employees.
Environment
Vietcombank always focuses on protecting the environment, working towards a green banking model and creating a pleasant work environment for its employees. Additionally, Vietcombank is committed to supporting a green corporate culture by focusing on electricity, water, paper, and office supplies conservation; encouraging employees to plant and take care of trees at the workplace as well as consciously maintaining a green-clean-beautiful working environment.
SOCIAL STANDARDS
Employment
In 2022, Vietcombank continued to be recognized as one of the leading units in taking care and protecting laborers through the award “Typical enterprise for employees” co-organized by Ministry of Labor, War Invalids and Social Affairs, Vietnam General Confederation of Labor and Vietnam Chamber of Commerce and Industry (VCCI).
With human centric mindset as it cores value, Vietcombank has made appropriate adjustments on its human resource policy as well its welfare policies in combination of modern management measures align with digital era to promote more effective and thorough management from recruitment, personal record management, training & development to wage, bonus and benefits. Vietcombank has been renewing its comprehensive governance and human resource development policy, building a lean and high-quality management team, creating internal strength to take VCB to the next level.
Regarding human rights
Non-discrimination, no use of child labor, forced or compulsory labor
Vietcombank always ensures transparency without any discrimination of race, religion, gender. Especially, Vietcombank pays a special attention to planning and appointment of female officers. Female officers in Vietcombank account for 60% of total employees in the whole system, of whom 45.7% of female officers are planned to become managers in the period of 2016-2021, equivalent to 854 people.
In 2021-2022, this figure is about 53.8%, equivalent to 1,029 people. This shows that leaders of Vietcombank always pays a special attention to gender equality in recruitment of female employees in the whole system of Vietcombank.
In addition, Vietcombank always says no to child labor and proactively comply with regulations and laws on labor.
Responsibility to the community and society
In 2022, Vietcombank continued to conduct customer satisfaction survey to gradually improve its quality of products and services, bringing the best services to community and society. In addition, by upholding the tradition of “Green Bank for Community”, VCB has committed implementing social security programs worth VND 490 billion in 2022 as follows:
- Social security and charity activities account for 40% of total commitment budget;
- Health, education and community development account for 42% of total commitment budget;
- Covid-19 prevention and control and other activities account for 18% of total commitment budget.
Typical activities include program of supporting “Tet holidays for the poor” 2023 worth VND 20.8 billion; commit to building houses of gratitude for the poor worth VND 106.44 billion, commit to sponsoring education and training activities worth VND 164.83 billion.
Social activities
Social activities
With the goal toward a green bank and sustainable development for the community, Vietcombank’s social activities are increasingly promoted with many practical and meaningful programs, contributing to the general development of the community and society.
For many years, Vetcombank has been implementing a series of social security activities, with active participation from the head office to branches and affiliated companies nationwide, the goal of the activities is not beyond sharing difficulties and improving the quality of life of the poor in low-income areas across the country.
During the period 2018-2022, Vietcombank’s contribution to social security activities exceeded
VND 1,798 billion
Vietcombank spent more than VND 382 billion on social security work in 2022
VND 382 billion
EDUCATION
Not only building new schools, Vietcombank also takes the lead in sponsoring learning and teaching equipment and upgrading facilities for schools nationwide. Seated desks, library, functional classroom or simply clean water tanks, garage, sports field, etc., although simple, these are very practical for schools with many difficulties, contributing to improving and enhancing the quality of teaching and learning for teachers and students.
HEALTHCARE
Not only sponsoring the construction of hospitals, medical stations, and providing essential equipment for medical examination and treatment, etc., Vietcombank has also always cared for their patients by supporting surgery costs or visiting patients, especially poor children in difficult circumstances.
Data on social community activities in 2022 and in 2018-2022 period
Total amount of funding for Vietcombank’s social security activities
2022
VND 382,700 million
Five-year period (2018 - 2022)
VND 1,798,373 million
| No. | Purpose of sponsorship | Value realized in 2022 (Unit: VND million) |
|---|---|---|
| 1 | Education | 134,167 |
| 2 | Healthcare | 14,319 |
| 3 | COVID-19 Support | 11,949 |
| 4 | Sponsoring the poor/Building, Constructing gratitude and solidarity houses, etc. | 178,533 |
| 5 | Overcoming consequences of natural disasters | 342 |
| 6 | Other fields | 43,390 |