BIDV

The story of the Joint Stock Commercial Bank for Investment and Development of Vietnam, or BIDV, is intertwined with the economic history of modern Vietnam itself. Established on April 26, 1957, by the Prime Minister of Vietnam through Decree 177/TTg, it began as the Bank for Construction of Vietnam. Its mission was state-directed: to provide and manage capital for the nation's post-war reconstruction and key infrastructure projects. As Vietnam’s economy evolved, so did the bank. In 1981, it was renamed the Bank for Investment and Construction of Vietnam. A more significant shift occurred in 1990 when it became the Bank for Investment and Development of Vietnam, marking its first steps into international business and partnerships. This era defined its trajectory toward becoming a more commercial entity. A pivotal chapter began in late 2011 when the government approved its equitization plan, setting the stage for an initial public offering (IPO). Despite challenging market conditions, BIDV successfully held its IPO in December 2011, officially becoming a Joint Stock Commercial Bank in 2012. This transition aimed to improve its capital base and operational transparency. The next major event came in 2019 with a landmark strategic partnership. South Korea's KEB Hana Bank acquired a 15% stake for nearly $875 million, becoming BIDV's first foreign strategic shareholder. This deal, the largest M&A in Vietnam's banking history at the time, not only boosted BIDV’s charter capital to the highest in the system but also provided long-term technical assistance in key areas like risk management and digital banking.