Foreign banks in the money in Vietnam

By the end of the third quarter of 2010, wholly foreign-owned banks raised VND77.444 trillion ($3.87 billion) and reported VND93.511 trillion ($4.67 billion) in total asset value, surging 29.8 per cent against late 2009 and their outstanding loans were valued at VND38.322 trillion ($1.91 billion), up 11.9 per cent against 2009.

General director of Standard Chartered Vietnam, Louis Taylor said the bank led the Vietnamese market in capital arrangements for businesses through bond issuance and syndicated loans.

These activities brought foreign banks big successes. A State Bank report showed that around VND3.5 trillion ($175 million) was reported on foreign banks’ balance sheets in the first 10 months of 2010, while bad debts only represented 0.4 per cent of their total outstanding loans.

In the past year, five wholly foreign-owned banks which were licenced in Vietnam opened 14 branch offices nationwide and continually deployed new products and services with many advantages to benefit the customers.

HSBC Vietnam general director Thomas Tobin said though 2010 was a challenging year, the bank pushed on its internal development strategy and business cooperation.

Accordingly, the bank had opened two full-service branches in Can Tho and Danang cities and launched its superior HSBC Premier service packages in Vietnam. Vietnam is one of 47 markets in which HSBC Group has deployed its HSBC Premier services globally, indicating the nation’s importance in HSBC’s development trajectory.

A vanguard in card services such as debit card ANZ Vietnam emerges as a weighty competitor in the market.

“In Vietnam, our services always ensure convenience, simplicity, credibility ad customers’ satisfaction. Therefore, our every new product is suited to customers’ needs and surely brings their satisfaction,” said ANZ Bank Mekong region general director Dam Bich Thuy.

With impressive growth in 2010, many foreign banks had set further development steps for the next few years. For example, Tobin said in 2011 the bank would further expand its international network and serve as a linkage for foreign clients and companies wanting to do business in Vietnam and for Vietnamese companies wishing to stretch abroad. In the meantime, the bank would like to see further growth in both corporate and individual financing as well as in international financing.

At Citibank Vietnam, a bank representative said Citibank wanted to become a wholly foreign-owned bank in the near future. Citibank Vietnam’s managing director Brett Krause said Vietnam was an important market for Citibank which would enjoy the bank’s investment priorities for long-term development.

“Citibank wishes to become the first option for customers interested in asset management services and help Vietnamese people reap financial rewards,” he said.