The Vietnam - Russia Joint Venture Bank (VRB) was officially established in 2006 as a result of economic coop- eration between Vietnam and Russia and their central banks. How do you view its operations over the last 18 years?

The Vietnam-Russia Joint Venture Bank held an official opening ceremony in November 2006. Its establishment was the result of cooperation between the two governments. The bank has the special mission of being a bridge in the banking and finance sector, resolving payment difficulties and promoting economic, trade, and investment cooperation between the two countries.

After 18 years of operations, VRB has expanded its network to many cities and provinces around Vietnam, including Hanoi, Ho Chi Minh City, Hai Phong,

Khanh Hoa, Da Nang, and Vung Tau. With a mission of “Connecting success for development”, VRB strives to support, connect with, and provide payment and financial services to intergovernmental cooperation projects. It is also a trusted companion of the business community as well as individual customers who conduct bilateral trade and investment activities between Vietnam and Russia.

How has the bank contributed to promoting trade and investment coop- eration between Vietnam and Russia?

Vietnam and the Russian Federation have long been important and promising partners. Understanding our mission, we have been doing our best to boost our role as a financial bridge, contributing to economic development and trade and investment between the two countries

and to the growth of bilateral trade. Through seminars and conferences, VRB has advised on and supported linking businesses in the two countries, opening doors for import-export businesses in the two countries to access and enter into each other’s markets and expanding cooperation between Russian businesses with the Vietnamese market in particular and the ASEAN market in general.

As a joint venture bank between the two countries, VRB is an active member of an intergovernmental bilateral working group on interbank cooperation between our two countries, attempting to eliminate difficulties and obstacles in the trade and investment operations of businesses and proactively proposing solutions to resolve issues of concern for businesses, in order to increase trade volumes between the two countries.

What financial solutions does VRB offer to help the business communities in the two countries develop sustainably?

Being a financial bridge between the two countries, VRB provides convenient and safe payment settlement solutions in local currencies for businesses from both countries, thereby promoting the export and import of advantageous products between Vietnam and the Russian Federation. This is a key point in helping avoid the challenges and uncertainty that can come in international trade.

It also provides foreign exchange services in RUB, such as cash trading and transfer. Businesses are also advised on the most profitable foreign exchange plan, reducing costs and exchange rate risks as well as interest rate risks in the market.

What are the challenges facing the banking sector in general and VRB in particular at this point in time?

The global context and Vietnam’s situation has experienced many changes. Regarding the global situation, geopolitical tensions, interest rates, and debt risks are still high, and energy and food security risks and climate change remain on the agenda.

In Vietnam, in addition to risks and challenges from the international environment, businesses also face many difficulties related to the impact of Covid- 19; falling consumer demand and private investment; pressure from bad debts and exchange rates, despite these being basically brought under control; a gold market that is still volatile; and continued slow economic restructuring.

These pose a range of challenges for the operations of the banking sector in general and for VRB in particular. For VRB, disruptions in transportation and trade due to geopolitical conflicts affecting the operations of import-export businesses indirectly affect its operations.

What strengths does VRB possess compared to other banks in Vietnam? With a focus on retail banking and corporate banking, what main products does it offer?

VRB is a multi-function joint venture bank with a diverse customer base. In addition to products and services for domestic corporate and individual cus- tomers, VRB also develops specific products to serve the activities of individuals and import-export businesses. We can call it a tailor-made individual approach to customers. With many years of experience and a broad understanding of the Russian market, VRB provides advice, products, and services suitable to the needs of customers operating in the market. We are now going to be more active in marketing the non-secured individual loans segment. Special attention is also being paid to VRB’s digital transformation.

In addition to products and services, the human factor is also one of VRB’s strong points. We have a young, dynamic, and enthusiastic team, which will certainly bring our customers the most-satisfying experience.

VRB currently focuses on two main areas of activity: retail, and small and medium-sized enterprises (SMEs). In the retail sector, we provide products to meet the lifestyle and business development needs of individuals and households. These include business loans, housing loans, car loans, and overdrafts. For SMEs, VRB provides timely interest rate support packages for businesses and convenient and safe payment solutions, as well as advice on suitable loan options.

How do you view VRB’s business operations in the opening months of 2024 and what are your expectations for the remainder of the year?

Over recent times, despite facing many difficulties, VRB’s business activities have still yielded many positive results, such as maintaining a stable customer base at time when it has been difficult for the banking system to access and develop customers. VRB’s bad debts are always strictly controlled and within the limits required by the State Bank of Vietnam (SBV). Its capital meets business needs and, in particular, the bank always provides good support to businesses in the two countries in trade and investment activities.

Under the management of the central bank as well as the Vietnamese Government and as the prospects for economic recovery take shape, I expect the second half of 2024 will offer many opportunities for the banking industry in general and for VRB in particular. I hope that 2024 will be a successful year for VRB, helping us successfully reach our business goals and continue to support and accompany businesses in both countries.

With VRB celebrating its 20th anniversary in two years’ time, what are your plans for the bank into the future?

Towards the 20th anniversary of VRB’s establishment, we aim to develop into one of the most reliable banks in Vietnam with high quality and technology based services to all the customers. We will build a fun and happy working environment for all employees. To achieve these goals, VRB is making every effort to build an ecosystem to offer financial and lifestyle services that meet customer needs. We will build a digital banking strategy, expand our customer base, and reposition the bank in accordance with Basel standards.