VNDIRECT Securities Joint Stock : Annual Reports 2021

CONTENTS

TABLE OF CONTENTS

ANNUAL REPORT 2021

THE POWER OF THE ORGANIZATION

1.		2.
VNDIRECT		VNDIRECT'S BUSINESS
OVERVIEW		PERFORMANCE IN 2021
1. About VNDIRECT	15	1. Business results	30
2. Development Roadmap	16	2. Human Resource Management	36
3. Core Business Activities	20	3. Operational performance	39
4. Awards and Achievements	23	4. Risk management performance	42
5. Organization structure, business	23	5. Financial highlights	44
organization and the management team	6. Report on Environmental, Social,
6. Development Vision	24	and Governance impacts	47

3.

DEVELOPMENT STRATEGY IN 2022

1. Market analysis and evaluation	54
in 2022
2. Business plan in 2022	64
3. Goal of workforce development	65

4. Goal of technology improvement 65

5.Goal of customer-centric service
value chain improvement	65

4.

CORPORATE

GOVERNANCE

1. Shareholder Structure	70
2. Board of Directors (BOD)	71
3. Board of Supervisors	80

5.

FINANCIAL

STATEMENTS 86

2		3

MESSAGE FROM THE CHAIRWOMAN OF THE BOARD OF DIRECTORS

To the Valued Shareholders,

2021 turned out to be a special year for all mankinds, including the Vietnam's stock market and VNDIRECT in particular. The COVID-19pandemic and its effects have greatly altered the perspectives of multiple organizations on building business organizational competency. Customers have become familiar with the digital approach, which offers the opportunity for business models on the digital platform to develop drastically.

We are fortunate to have chosen Technology as our core competitive advantage from the very beginning of establishment. Digital culture has been built and cultivated in the working mindset of VNDIRECT from new joiners to the senior leadership team. Funding for Technology has always been VNDIRECT's top priority for many years. This policy has presented us with increasing opportunities to attract new investors, to increase our capacity to serve customers and to grow limitlessly.

Throughout 2021 VNDIRECT has continued to scrutinize the value chain under the "customer-centric"model to leverage the strength of the organization and optimize the young and enthusiastic workforce. The organizational transformation and the redesign of the customer-orientedvalue chain have allowed VNDIRECT to multiply its organizational strength and provide a variety of products and services based on the needs of different customer segments, from the individual customers' needs for securities trading to the large customers' needs for investment and treasury management, and financial intermediary services and capital transferring services for corporate customers. VNDIRECT

has enhanced the competency to search for potential businesses with sustainable financial health to provide advisory services on issuing bonds, thus indirectly offered more investment opportunities for the investors with safe bonds in the financial markets. With its strength of the current balance sheet and equity volume, VNDIRECT has gradually positioned itself as a financial institution with the proven capabilities of a reputable Financial - Investment services and Securities Trading ecosystem.

Throughout 15 years of development, VNDIRECT has improved its business model and developed thecompetencyinunderwritingandtransferring capital across businesses and the economy. In 2021, VNDIRECT has successfully completed corporate bond underwritting valued of up to VND 11 trillion with Vietcombank, the largest transaction ever. Total mobilized capital of VNDIRECT in 2021 was over VND 15 trillion and the total assets in the balance sheet was over VND 37 trillion.

Having the advantage of a customer base has been well established in 15 years, together with the business administration and execution competency in compliance with the principle of transparency and international standards, combined with technological integration in business operations, VNDIRECT has gradually grown confidence in its solid foundations and ready for the opportunities to thrive and prosper and performed transactions with increased complexity and a growing number of customers.

Although the company has faced the challenge of insufficient human resources in the context of rapid market growth, the competition for attracting workforce is high while the manpower for securities market is still young

Message from the chairwoman of the board of directors		ANNUAL REPORT 2021

THE POWER OF THE ORGANIZATION

and inexperienced, VNDIRECT has continuously invested in and recruited excellent fresh graduates to train and foster the future resources, develop and train internally young leaders and re-arrangethe senior leadership team in the company. VNDIRECT human resource has gained the momentum and flourished since 2021.

The development goal of VNDIRECT in 2022 is to continue to reinforce the organization's strength from three aspects: the technology capacity, customer-centric value chain operation capacity and capacity to attract resources for development. By doing so, we can improve our business landscape and have more choices as well as seize better opportunities.

More than ever, Vietnam's stock market has entered a new sustainable growth, when businesses have accumulated capital, meeting the financial and business requirements to welcome opportunities from the fastest growing economy in the region. Affordable capital is more accessible to Vietnamese businesses. Vietnam's position in the world has entirely changed when the State's political and economic orientations are very favorable for infrastructure improvements, legal frameworks of a market economy and the growth of Vietnamese private enterprises. In addition, the trend of lower saving interest rates propelled financial investment to become an essential need. People have been more familiar with safe financial investment tools instead of saving tools. Technology has also enabled companies to expand the reach of customer service at a much lower cost than in the past.

Yours sincerely!

Besides, the macroeconomic situation which has been affected by the Russia-Ukraine war, the rising cost of raw materials and the risk of adjusting the growth of the global economy may exert some influence on the Vietnam's stock market. VNDIRECT's strategy has been developed with flexibility, continuously observing current business conditions to adjust the business and create optimal conditions for the company, along with continuing to increase its capacity for sustainable development in the medium and long term.

We believe that, under any circumstances, VNDIRECT continue to be steadfast in executing our Mission - Building VNDIRECT as a prestigious financial institution in the domestic and international markets and Receiving recognition as a reputable and transparent financial - investment - securities service portal, with IPAM-oriented human resources, an advanced technology system and an intellectual platform that gathers global intelligence in order to open the capital flow and to create opportunities for all people to join hands with businesses to make a contribution to the Vietnam's Dream - bringing value to all Vietnamese people.

On behalf of the Board of Directors as well as the Company's management and staff, I would like to extend my gratitude for the trust of our shareholders and we are committed to always striving to learn and improve ourselves to altogether deliver the best service and bring the best value to our people.

Chairwoman of the Board of Directors

Pham Minh Huong

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Highlights of VNDIRECT Activities In 2021

HIGHLIGHTS OF VNDIRECT ACTIVITIES IN 2021

ANNUAL REPORT 2021

THE POWER OF THE ORGANIZATION

01..

With total assets increasing by 148%, VNDIRECT became one of the securities companies with the largest capital in the market

02..

The number of newly opened individual accounts accounted for 20% of the whole market, affirming VNDIRECT's position as one of the leading retail securities companies in the market.

In 2021, the company's total assets reached VND 37,095

billion and equity was valued at VND 9,822 billion.

A strong balance sheet laid a solid foundation for

VNDIRECT to strengthen its position as a leading financial intermediary to connect and transfer funds in Vietnam's capital market. VNDIRECT has continuously increased the shareholders' capital as well as mobilized capital from domestic and foreign financial institutions. In particular, 02 international capital raising transactions worth of USD 200 million emboldened the company to establish its position and prestige in the international capital market.

With more than 300,000 individual investors opening new stock trading accounts in 2021 which accounted for 20% of the total new accounts opened by individuals in the market, VNDIRECT is committed to delivering its investment service to every customer in Vietnam. As of December 2021, the total assets of under VNDIRECT's management reached USD 8.4 billion, an increase of 117% compared to that of the end of 2020. Digitizing the account opening process and providing DGO-oriented training for customers helped customers expand their financial investment capacity, build a sustainable asset portfolio and manage assets effectively post investment.

03..	With the mission of building financial health and
creating prosperity for all investors, VNDIRECT continues
to refine its product and service platform including:
Dlink Sale and Service Platform - DGO Advisory Center
	- Dcareby expert services:
Improving the product and	•	DLink Sales and Service platform: acting as a guide
service platform towards		service value system, supporting customers with
		to connect customers with VNDIRECT's product and
DGO path		finding experts and gaining access to the shared
		intelligence of VNDIRECT's professional service-
		focused team
	•	DGO Advisory Compass Investment Center was

established with the mission of providing consulting and orientation services to support investment in accordance with market conditions. With data analytics platforms and a set of portfolio selection principles as well as risk warnings, DGO Compass has been digitized to enable customers to set up

appropriate alerts in order to monitor and take timely actions in response to market fluctuations

• DCareby expert services: VNDIRECT is proud to have a team of brokers with extensive experience and good qualities as trading experts in Vietnam's stock market. The company, with the aim of expanding the service platform for financial investment, added a team of wealth advisors in 2021. This is the first team of experts in the Vietnamese financial market to

concentrate on the idea of a Family Financial Doctor, empowering the Vietnamese to build financial health

and create prosperity.

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