HEAD OFFICE
108 Tran Hung Dao Street, Hanoi
Tel : 04.3942 1030
Fax : 04.3942 1032
Website : www.vietinbank.vn
ANNUAL REPORT
2008
VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE

Content
Message from the Chairman of
the Board of Directors
An Overview of Vietnam Economy in 2008
The Board of Directors
The Board of Management
Milestones of Success in 2008
VietinBank’s Performance in 2008
Fund Mobilization•
02
06
08
10
04
13
28
25
19
30
33
Loans to the Economy•

Investment rose to USD 64 billion.
Within the context of these adverse economic times,
Vietnam Joint Stock Commercial Bank for Industry
and Trade (VietinBank) managed to achieve a lot in
2008. We closely managed liquidity throughout the
year while being able to sharply increase fee based
income. Great strides were made in managing risk
and performance ratios improved. The bank was
able to expand our branch network, grow total
assetsby17%andincreaseequitytoVND12,300
billion. These achievements were largely the result
of a conservative and strong management team
remaining focused on prudent banking principles.
The year was also a milestone for the bank in a
number of other aspects. After 20 years the bank
went through a rebranding exercise, launching
a new brand name of VietinBank. Additional
accomplishments included centralization of Trade
Finance processing to reduce risk and improve
efciencies(MainOperationCenterNo.3),
establishment of a Disaster Recovery Data Back-
up Center, inauguration of the Human Resource
Developing and Training School and was awarded
Second-Place Independence Medal presented by
the State. These were all important steps for the
development, modernization and global integration
ofVietinBank.Thenalaccomplishmentforthe
year came about on 25
th
December 2008 when we

of Management and all of the VietinBank Staff would
like to express our thanks to customers, local and
foreign partners for your trust and cooperation which
have contributed to VietinBank successes in 2008. We
hope that VietinBank will continue to receive your
kind support and cooperation.
Pham Huy Hung
Chairman of the Board of Directors
Annual Report 2008 VietinBank 3
In 2008, Vietnam’s economic growth tended to slow down and
remained at only 6.2 percent after high growth of over 8 percent in 3
consecutiveyears.Notwithstandingsuchdifcultsituation,Vietnam
export turnover in 2008 attained nearly USD 63 billion, which was an
encouraging result. Export turnover of all commodities experienced
increase against the previous year with crude oil reaching USD 10.4
billion(increasingby23.1%),textiles:USD9.2billion(increasingby
17.5%), coal:USD1.5billion(increasingby44.4%),rice:USD2.8
billion(increasingby94.6%).
In 2008, the banking system of Vietnam also saw unprecedented
movements. The tightened and exible monetary policy
implemented in early 2008 was gradually shifted to prudently loosen
in the second half of the year. In line with this process was the State
Bank of Vietnam’s unprecedented adjustment of management
instruments, which focused mainly on key interest rates, reserve
requirement and exchange rate control.
The year of 2008 saw 3 times of base interest rate increase and 5
times of base interest rate reduction by the State Bank of Vietnam.
Re-nancinginterestrateandrediscountinterestrateexperienced
thesameadjustmentfrequency.Reserverequirementrateincreased
in February and experienced decline for 4 times in the last 3 months

6
13
11
12
15
14
13
12
11
9.5
8.5
7.5
10
9
11
10
12
11
13
12
14
13
The movements
ofthemajorinterest
ratesin2008(%)
BaseRateRenancingrateDiscountrate
requirement). Interest rates applicable to reserve requirement saw
5timesofadjustments(including3timesofincreaseand2times
of reduction).
Foreign exchange control mechanism experienced exceptional

Mr. TRAN XUAN CHAU
Member
Dr. PHAM XUAN LAP
Member, CEO
Dr. DO THI THUY
Member
Annual Report 2008 VietinBank 7
Ban
ĐiềuHành
Dr. PHAM XUAN LAP
Member of Board of Directors - CEO
8Annual Report 2008 VietinBank 8
Mr. NGUYEN VIET MANH
Deputy General Director
Dr. NGUYEN VAN THANH
Deputy General Director
Mr. VO TAN THANH
Deputy General Director
Mrs. NGUYEN PHUONG LY
Deputy General Director
Mr. NGUYEN VAN DU
Deputy General Director
Mr. PHAM ANH TUAN
Deputy General Director
Mrs. BUI NHU Y
Deputy General Director
Mr. NGUYEN VAN CHUNG
Chief Accountant
Annual Report 2008 VietinBank 9
thegoalsof“Reliability,Efciency,ModernityandGrowth”.


10Annual Report 2008 VietinBank 10
Inauguration of VietinBank’s Disaster Recovery Data Back-up Center
On 15
th
December2008VietinBankDataBack-upCenterwasofciallylaunched
in Hoa Lac High Technology Zone, which was well equipped and constructed
in a good location, meeting all requirements of State Bank of Vietnam as well
as international standards for a back-up site, marking an important progress in
ensuringthecontinuousness,safetyandefciencyofthebank’sbusinessoperation.
Successful IPO
On 25
th
December 2008 VietinBank successfully offered 53,600,000 shares to
investors with the average successful bidding price of VND 20,265 VND per share
compared to the starting price of VND 20,000. In the unfavorable turndown of
securities market, the Bank’s IPO was considered as a typical event of Vietnam
securities market in 2008.
VietinBank’s Reception of Second-Place Independence Medal
and Celebration of the 20
th
Anniversary of Incorporation and
Development
On 5
th
August 2008, it is great honor for VietinBank to receive Second-
Place Independence Medal – a high level award of the State on the
occasion of its 20
th
anniversary.

67,670
2
31/12/200731/12/2008
CUSTOMER DEPOSITS
BY TYPES OF CUSTOMERS
in VND billion
7,123
3
55,082
1
54,591
2
2,752
3
29,08725,714
11
1. Demand deposits
2. Term deposits
3. Deposits for specic purpose
4. Money transfer payables
5. Other amounts due to customers
6. Margin deposits
79,628
92,359
22
31/12/200731/12/2008
CUSTOMER DEPOSITS BY
TYPES OF DEPOSITS
in VND billion
362382

9.54% Electricity, Petroleum and Water
18.74%Wholesale and retail trade; repair of motor vehicles, motor cycles and personal goods
11.23% Construction
7.19% Community, social and personal service activities
28.24% Mining and quarrying
4.24% Agriculture, Forestry and Aquaculture
11.33% Other activities
Loans to the Economy
Given the tightened monetary policy of the State Bank of Vietnam in therst three
quarters of 2008 and the huge demand for credit, VietinBank was prudent in selecting
efcientborrowersandkeyproductionindustriesforloandisbursement.Fromtheend
ofthethirdquarterwhenthemonetarypolicywasloosenedandbecamemoreexible
andsignicantinterestratedecreasewhichenabledenterprisestohaveaccesstofunds
from banks, VietinBank’s credit orientation was enhancement of lending to enterprises in
alleconomicsectors,whileensuringsafety,efciencyincreditactivitiesandmaintaining
market share.
Loans to the economy as at 31st December 2008 were VND 120,752 billion, rose by
VND 18,561 billion representing an increase of 18.2%. Medium and long-term loans
accounted for 41.9%; loans to state owned enterprisesaccounted for 19.9% of total
loans. The proportion of non-collateralized loans have been reduced in recent years,
gettingtothelowestlevelof22.7%oftotalloansin2008,a3%decreaseagainstthat
of the beginning of the year. Thanks to the strict controlling policy from the beginning
of the year, VietinBank has eliminated risks arising from lending for real estate and
securitiesinvestment.Loanstocorporates,SMEsandindividualswere45.4%,36%and
18.6%respectively.
In 2008, VietinBank continued to sign strategic cooperation
agreementswith4majornationalcorporationsincluding
Vietnam National Coal-Mineral Industries Group, Vietnam
National Shipping Lines Corporation, Vietnam National
Petroleum Corporation and Vietnam Expressway Corporation.

are of high liquidity and low risks.
Available for sale investment securities, which include treasury bills,
central bank’s bonds, municipal bonds, bills and bonds issued by
reputablecreditinstitutionsandcorporations,accountedfor88.8%
of total investment in securities and reached VND 37,039 billion,
increasingbynearly14.5%ascomparedtolastyear.
Held to maturity securities, which include government bonds,
educationbonds,transportationandirrigationproject-supporting
bonds, treasury bonds, debt securities issued by other credit
institutions and corporations, were VND 3,920 billion, decreasing
by22.4%ascomparedtothepreviousyear.
Investment in the
interbank market
increased by
42.3%
as compared to 2007
16Annual Report 2008 VietinBank 16
International Banking
In 2008, VietinBank continued to expand the
correspondent banking network and now has more
than 850 banks in more than 80 countries and
territories. Cooperation with foreign banks has been
developed across wide geographies, with many long
standing ‘in depth’ relationships.
Import payment volume in 2008 was USD 7.02 billion,
up by 44.68% against2007,accounting for 8.46%
of import payment volume of the whole country.
Export payment volume amounted to USD 4.25
billion, increasing by 48.8% as compared to 2007
andaccountingfor8%ofexportpaymentvolume

2007. Bilateral payments amounted to VND 311,000
billion, increasing by 32.6% against the previous
year with 1.3 million transactions representing an
increase of 16.2%. Interbank e-payment volume
increased by 27.9% to VND 1,300 billion with 1.1
million transactions.
In 2008, VietinBank deployed many payment –
related products and services such as conversion
of card transactions into INCAS (VietinBank core
banking system), deployment of Home Banking
service to corporate customers. In 2008 VietinBank
also signed a bilateral payment agreement with
Vietnam Development Bank and cooperated with
State Treasury, General Department of Taxation,
General Customs of Vietnam to start up the State
budget collection through VietinBank.
OVERSEAS REMITTANCE VOLUME
(USD million)
108
2003
230
2004
404
2005
450
2006
750
2007
900
2008

economic zones, and developing
municipal and industrial areas. And the
targeted sectors are those of industry,
trading and service.
VietinBank published policies on credit
risk management in late 2004. The
principles of these policies include
investment portfolio diversication,
multi-level process of authorization and
approval, regular monitoring procedures
and credit limit control. Depending
on VietinBank’s targeted markets and
overall credit strategies as well as past
performance of credit operations, markets
uctuations, and projectedcapital needs,
the Department of Credit and Investment
Risk Management proposes levels of credit
growth for VietinBank, and levels of credit
limits for the whole system based on types
of products, currency, sectors, industries,
ownership, clients, client groups, etc.
These proposals are then submitted to the
General Director and then to the Board of
Directors for approvals.
VietinBank’sdailyriskmanagementisjointly
functioned by the Department of Credit
and Investment Policy, the Department of
Credit and Investment Risk Management,
the Department of Non-Performing
Loans Management, and the Department