Vietnamese banks perform well with brand value growth of 31.3 per cent

February 23, 2023 | 10:32
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Vietnamese banking brands have posted an overall growth of 31.3 per cent in brand value, amounting over $2 billion compared to their 2022 positions. This is according to Brand Finance’s Banking 500 2023 report, which ranks the world’s top 500 most valuable and strongest brands in the banking industry.

Almost all the 12 Vietnamese banking brands listed in the rankings improved their positions, with Vietnam’s second most valuable banking brand Agribank (brand value up 1.7 per cent to $1.4 billion) recording a mere drop of two places and VIB making its first ranking appearance by posting a brand value increase of 14 per cent to $181 million.

Brand Finance’s research indicated that recovered revenue and revenue forecasts were important drivers of the impressive growth. Overall, Vietnamese banking brands recorded improved business performances in 2022, underpinned by the nation’s strong credit growth of nearly 13 per cent, as well as remarkable economic recovery that is reflected by a GDP growth of 8 per cent – its fastest in 25 years.

Alex Haigh, managing director of the Asia Pacific of Brand Finance commented, "Vietnamese banking brands are rapidly adopting digital banking as a primary business and becoming leaders in this space regionally. For instance, Techcombank (brand value up 46.7 per cent to $1.4 billion), the second-fastest growing Vietnamese banking brand in our study, is embracing digital banking, which has resulted in significant growth of its retail banking unit. Combined with Vietnam’s economic miracle, we note that Vietnam’s banks are well poised to be some of the best performing this year."

"We believe that Vietnam's banks are ready for consolidation in the next few years – given that the nation has many brands relative to its scale – to leverage efficiencies and bolster their strength. If this proceeds, it is important that these brands play a central role in the process and that the resulting combined entities identify the individual brands that will deliver maximum value," he added.

Vietnamese banks perform well with brand value growth of 31.3 per cent

In addition, findings outlined in Brand Finance’s Banking 500 2023 report support the global prevalence of digital banks as the value of digital banking brands grew from $795.6 million in 2022 to $1.61 billion in 2023 – an increase of 102.6 per cent or $816.3 million.

Digital banking brands such as Tymebank and Discovery Bank in South Africa, Nubank in Brazil, and Maya Bank in the Philippines are disrupting the industry, having garnered high scores in Brand Finance’s innovation and sustainability metrics – two key drivers of customer choice.

Declan Ahern, director of Brand Finance said, "Banking brands across the globe have continued to recover well post-pandemic. There has been an improvement in digital banking services, government stimulus measures have been relatively successful, and the rise of mobile banking and online platforms have contributed to the sector’s positive performance. Accelerated by the strict global lockdowns, banking and fintech brands have innovated to create user-friendly, application-based banking services that have led to an increase in customer satisfaction and acquisition."

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By Thanh Van

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