Bankers discuss market strategy (24/3)
06/08/2010 - 172 Lượt xem
Viet Nam’s banks face a challenge to strategically develop in an increasingly competitive market, said Nguyen Duc Vinh, CEO of Techcombank.
Most banks in Viet Nam share the same strategy of working in retail banking, a traditional business strategy. Confusion over selecting alternative strategies has made the banking sector unable to compete in or meet the demands of a changing national economy, Vinh said.
Vinh made the remarks at a workshop, titled ‘Financial Strategies for Vietnamese Banks’ held by the CFVG (Franch-Vietnamese Centre for Mangement Education) and the National Economics University on Tuesday in Ha Noi.
At the workshop, participants from commercial banks and financial companies discussed and exchanged ideas and considered questions of professionals from the financial sector. Jyoti Gupta, finance professor at the ESCP-EAP European School of Management and a consultant at the World Bank, addressed coming challenges for Vietnamese banks, the legal framework for banking, and measuring performance through examples from Europe’s and India’s banking systems.
The opening of Viet Nam’s financial markets to foreign competition as part of the process of gaining entry into the WTO and implementing the US-Viet Nam Bilateral Trade Agreement will require Vietnamese banks to be more competitive and select the right financial strategies to create value for shareholders as well as ensure long-term viability, said Gupta.
HSBC’s recent move to acquire 10 per cent of Techcombank’s capital follows closely behind two similar share acquisitions in the latter half of 2005, when ANZ Bank bought into Sai Gon Thuong Tin Bank (Sacombank), and Standard Chartered Bank took a stake in Asia Commercial Bank (ACB). All this tends to prove that the battle for market share has already started.
Ha Noi-based Techcombank is the country’s third-largest joint stock commercial bank, with total assets at $482 million as of the end of 2004, chartered capital of VND580 billion ($36.7 million) and a network of 45 branchesSource: Vietnamnews
