VCI LEGAL’S PARTNER, KENT WONG INTERVIEWED ABOUT VIETNAMESE BANKS’ EXPANDING ABROAD
Vietnamese banks have been expanding their presence in the foreign markets. On April 5th 2023, Kent Wong, Partner and Head of Capital Markets at VCI Legal and Chairman of the Legal Sector Committee at the European Chamber of Commerce in Vietnam (“EuroCham”), shared his opinions with Bao Dau Tu and Vietnam Investment Review on the pros and cons of this trend.
Kent Wong explained that one of the reasons which drives overseas expansion is that banks are following their clients abroad. This comes in light of the Strategy for the Development of Vietnam’s Banking Sector to 2025, with a vision to 2030. In addition, the signing of free trade agreements (“FTAs”), such as CPTPP and EVFTA, also contribute to a significant increase in Vietnam’s outward investment activities, so banks follow this direction.
According to Kent Wong, in recent years, Vietnamese commercial banks gave started to establish their business presence in a few foreign markets, moving beyond the Southeast Asian region. These banks also access foreign markets through the establishment of subsidiaries and financial investment companies. Banking services that support credit such as letters of credit for import and export activities, guarantees, asset financing, capital and international payment activities also increase due to the demand of outward investment.
Kent Wong noted some of the Vietnamese banks’ challenges when going abroad, are that there are still certain limitations when expanding operations in local countries. In addition, Vietnamese banks are still passive and inefficient in their business strategies to access foreign markets.
The full interview article can be found here: https://vir.com.vn/wider-recognition-a-top-reason-for-upping-bank-activity-abroad-100907.html