- Elena, Relationship Management
- Greg, Global Market Operations
- Jessica, Global Banking Advisory
- Junes, Relationship Management
- Monica, Global Markets
- Ellis, Global Markets
- Abdulaziz, Global Markets
- Soffia, Global Markets
- Dilshad, Global Banking Advisory
- Giovanni, Global Banking Advisory
- Karl, Global Banking Advisory
- Mauricio, Global Markets
Vietnam case study
Vietnam builds on economic growth
Vietnam began its transition to a market economy in 1986 and joined the World Trade Organization (WTO) in January 2007, after agreeing to open up the country's economy to foreign investors. In recent years it has experienced pronounced economic growth, and is now classed as a middle-income country. The gross domestic product per head increased to more than USD1,100 by 2008 from USD190 in 1993.Investors have remained committed to Vietnam throughout the global financial crisis. In return, the government has taken various fiscal and trade measures to combat inflation and trade deficits that could present potential problems.
HSBC has been in Vietnam since 1870 and is now the largest foreign bank in the country in terms of investment capital, network, product range, and staff and customer base. Our diversified business model has delivered profits despite the challenges of the markets. With strong foreign direct investment (FDI) flowing into the country and going towards more diversified areas and sectors, in addition to the wealth of the nation increasing, the need for more sophisticated wealth management growing, and Vietnamese companies expanding overseas, the opportunities for HSBC in Vietnam are very healthy.
Planning for a strong future
For our customer groups, such as Global Banking and Markets, Commercial, and Retail Banking and Wealth Management, there is high optimism on the prospects ahead. Only around 17 per cent of the population have bank accounts. With a strong client base in our Global Banking and Commercial Banking businesses, and having the largest retail outlet of foreign banks, our ability to unlock the cross-sell opportunities among our client base is our key driver for future growth.
The advantages of investing in Vietnam are numerous. Political stability is a key advantage, as well as the strategic location, which allows links to China to the north, and to the rest of South-East Asia. Just like the transformation of China, Vietnam is embracing market-led policies with all the associated efficiencies to be unlocked and opportunities to be gained. Moreover, joining the WTO and integrating into the global economic system allows another level of connectivity and potential to be realised.
Over the next five years, Vietnam will focus on developing human resources, building infrastructure and implementing administrative reforms towards making a major breakthrough in socio-economic development.
Managing priorities effectively
Disbursed FDI capital of USD4.5 billion in the first five months of 2010 proved that Vietnam is an attractive destination for foreign investors, and we will see priority given to projects on urban development: industrial parks, hospitals, universities, highways and other infrastructure. Besides that, we will gradually see the further development of the Vietnamese equities and debt markets, which will lead to further investment opportunities from overseas. Vietnam should start seeing more of the upside effects of its growing international recognition.