Vietnam

Digitalization is spreading throughout Vietnam’s banking industry, with most leading banks offering some mobile and online services. But HDBank, led by chief executive Pham Quoc Thanh, impressed Asiamoney the most with its diverse digital products serving retail clients, and for pioneering moves with blockchain and open banking technologies.

For international banks operating in Vietnam, corporate and investment banking is one of the biggest focus areas, given that the consumer banking industry is dominated by local names. Credit Suisse leads the way among its international rivals, showing the strength of its franchise.

The 31st annual Asiamoney Brokers Poll invited chief investment officers, fund managers and investment analysts to take part. Voters represented fund management houses, hedge fund & private equity firms, insurance companies and wealth management houses in Asia, Europe and North America.

Banks in the country have much more to be optimistic about than their counterparts elsewhere. There are risks on the horizon – but there are also big opportunities.

The year started out well enough for Vietnam Prosperity Joint Stock Commercial Bank, or VPBank. It ended 2019 with a record 12.2% year-on-year jump in pre-tax profit, 109% of what it telegraphed to shareholders. Credit and deposits grew 17.6% and 23.7% respectively, well above target.

US retail firm Amazon, in a break from its conquering drive elsewhere, has entered into something of a supporting role to help the development of small and medium-sized enterprises in Vietnam. The lion’s share of that assistance will flow through Saigon-Hanoi Commercial Joint Stock Bank, or SHB.

The digital banking space is becoming extraordinarily crowded these days. Eight months ago, investing big in technology and disruption was one of a myriad budget items to raise at staff meetings. It is now mission critical as Covid-19 makes physical branches and corporate offices no-go zones.

Credit Suisse completed 14 investment banking deals with a total value of $2.3 billion in Vietnam last year, despite volatility caused by the trade war between China and the US.