Some foreign banks have assured that they will retain their presence in Vietnam after withdrawing capital from some Vietnamese partners recently (Photo: VNA) Hanoi (VNA) – Some foreign bankshave assured that they will retain their presence in Vietnam after withdrawingcapital from some Vietnamese partners recently, noting that the country isstill an attractive market.
Local media recently reported on the capitalwithdrawal of BNP Paribas of France, HSBC of Hong Kong (China) and Commonwealthof Australia from their Vietnamese partners.
Last January, Standard Chartered of the US soldall of its 8.75-percent stake in the joint venture with the Asia CommercialJoint Stock Bank (ACB) of Vietnam. Meanwhile, Australian-owned ANZ Vietnam alsosold all of its retail banking segment in the Vietnamese market to ShinhanVietnam in December 2017.
The withdrawal of the foreign investors has causedconcern of a mass capital outflow from Vietnam.
However, a representative of ANZ Vietnamconfirmed they will not exit the country, adding that the transfer of theretail segment to Shinhan is part of ANZ’s strategy to increase its capitalefficiency and focus resources on business and financial institution clients,which are the biggest business segments of ANZ in Asia.
The representative said with its long-standingsuccessful operations in Vietnam, the bank pledges to continue its presence inthis market to support businesses and financial institutions.
Commenting on some foreign banks’ capitalwithdrawal, economy-finance expert Bui Quang Tin said investors usually havetheir own plans or strategies after joining a partnership.
“Additionally, business is not always smooth, sowithdrawing or investing capital is just a business strategy of foreigninvestors,” he added.
According to finance-banking expert Nguyen TriHieu, many Asian investors have entered Vietnam over the past years. However,those from Europe are rather reluctant and in fact, some big European bankshave pulled capital out of Vietnam.
He attributed the situation mainly to Asianinvestors’ understanding of the market and business culture in Vietnam. Theyhave also possibly had traditional clients here, and investing in the countryis a way to support the clients from their homelands.
Some foreign banks also highly value theVietnamese market, especially its retail banking segment.
Sabbir Ahmed, head of the Retail Banking andWealth Management at HSBC Vietnam, said retail is still an important businesssegment of HSBC in Vietnam.
The ANZ representative also expressed optimismabout business opportunities in the Southeast Asian nation, citing a stablegovernment, a favourable population, increasing trade integration and foreigndirect investment and the strong growth of the middle class.
Bui Quang Tin said foreign investors are likelyto invest more in local banks like Vietcombank, VietinBank and BIDV when thesebanks expand foreign ownership. Agribank’s coming equitisation has alsoattracted great interest from foreign investors.
Private commercial banks are predicted to earngood profits this year and the following years. While the bad debt rate isexpected to decline, bank stock value has risen significantly recently. Thosefactors will entice investors in the time to come, he added.
Echoing this view, Nguyen Tri Hieu said thanksto the recent signing of the Comprehensive and Progressive Agreement forTrans-Pacific Partnership, Vietnamese banks will be attractive destinations inthe future.-VNA
VNA
