HSBC in pole position to capitalise on growth

After HSBC Vietnam’s two years successful cooperation with strategic partners Techcombank and Bao Viet Holdings Group, do you have any plans to extend investments in Vietnam in the next few years?

Thomas Tobin

HSBC in Vietnam applies a dual growth strategy focusing on organic development and strategic partnerships. In January, 2009 we became a locally incorporated bank and we have quickly expanded our network to better serve our customers, from the previous two branches to our current 13 outlets including branches in Hanoi, Ho Chi Minh City, Binh Duong, Can Tho and Danang. 

We are very pleased that we could extend our reach to satisfy our existing and new customers with pioneering banking products and more convenient service. 

This has helped us to grow not only in the corporate side of our business, but also in retail and business banking. We aim to bring a new and improved banking experience to our customers in 2011.

The increased investment and contribution to our strategic partnerships with Techcombank and Bao Viet Holdings reflects a growing commitment by HSBC to Vietnam and is in line with our strategy of targeting investment at high growth markets with international connections. We will continue to work and cooperate with our partners on areas defined in our technical services agreements and areas of common business interests.

We are very satisfied with the progress of our strategy and at the moment, we have no intention to take any new partners. But, I am sure we will continue to find more opportunities to invest in our own infrastructure and extend our business in Vietnam given the rapid growth in the banking and financial services industry.

Vietnamese consumers continue to build their wealth and continue to demand more from their banks and insurance providers.  Also, most enterprises in Vietnam may be categorised as small- and medium-sized enterprises, but these are also growing very quickly and will one day assert their positions in the market domestically and internationally.

They need tremendous support to help them grow sustainably and efficiently. HSBC plans to help satisfy this growing demand and therefore we always commit to play an active role in the development of Vietnam.

What is your comment on the finance and banking investment environment?

Vietnam is projected to be one of the fastest growing economies in the world, leading to a surge in demand for project finance and corporate lending. It is also enjoying rapid growth in personal incomes and the resulting demand for savings products, consumer credit and other retail financial services, building on a relatively low base of penetration.

Vietnam’s accession to the World Trade Organization (WTO) at the beginning of 2007 has paved the way for greater market liberalisation and led to a surge in foreign investment. The financial services sector has been at the forefront of the opening up of the markets and policies have been implemented to gradually remove the limitations on foreign banks allowing them to compete on a level playing field with local banks. 

The local banks have risen to the challenge and have been continuously upgrading themselves.  This healthy competition has spurred all the financial services companies to improve their game and provide better and more customer focused services.

In 2011, what should Vietnam’s government do to make the Vietnam’s financial environment work in step with the world’s financial development?

We hope the Vietnamese government will continue to plan and articulate a longer-term strategy to renovate the banking industry, making it more robust, improving efficiency and transparency in banking operations and provide specific regulations for implementation of new laws to help to guide the banks and remove retail banking and finance obstacles.

The banking regulation and legal environment should continue to be progressively reformed in accordance with market principles and international standards on capital adequacy and supervisory requirements.  We have seen tremendous progress so far and we are confident that if we all continue to work together as and industry, we will see Vietnam become one of the best places to do business in the region.