VietinBank is attempting to create investment collaboration among US investors and Vietnamese enterprises.
VietinBank is attempting to create investment collaboration among investors and Vietnamese enterprises in the US market
| The delegation of VietinBank (in right) met investors in the US at the end of October, 2016 |
Proactive and Dynamic
In the framework of the Non-deal roadshow in the US at the end of the last October, in addition to the latest update on the current macro economy and the development of Vietnam’s banking sector as well as VietinBank’s business performance, the delegation headed by Mr. Le Duc Tho - CEO of VietinBank was open to provide information about Vietnam’s business environment and current performance of various sectors.
Besides, the delegation was also sharing the orientation and development prospects in some key and attractive industries for investment, opening up business connection that creates an opportunity for Vietnamese enterprises’ co-operation in the US market.
Since joining the WTO in 2007, Vietnam has signed free trade agreements with various nations and territories, not only expanding its opportunity to approach major global markets, but also posing many challenges that require significant innovation, enhancing the competitiveness of domestic enterprises. To survive and thrive in the integration context, many Vietnamese enterprises are attempting to enhance its financial capacity, the quality of products and services, and to improve business efficiency. As such, many mergers and acquisitions or strategic stake offerings have been done successfully, that help enterprises to increase resources, gain experience, improve technology as well as corporate governance, thereby establishing a solid position for running their own business.
However, in term of investment scale, it can be seen that the total amount of foreign investment in Vietnam is modest compared to the actual capital needs of domestic enterprises, particularly in the context of the Government’s promoting policy in privatization process and divestiture from such sectors that the Government does not need to hold a control.
Along with fund raising via domestic market from both banking and financial systems, Vietnamese enterprises need to foresee the possibility of attracting foreign capital via international financial markets. In order to successfully mobilize foreign capital at affordable cost, Vietnamese enterprises need to meet various conditions such as financial capability, credit ratings, providing necessary and transparent information to investors, having plans and appropriate business strategies…
Acting as the leading bank in Vietnam economy, VietinBank always pioneers and actively implements the Government’s policies to either promoting the overall development of the economy or offering loan and banking products and services for diversified needs of enterprises and households. In recent years, VietinBank has collaborated with many foreign investment funds and asset management companies to explore investment needs of international markets and connect these co-operation opportunities for Vietnamese enterprises.
Creating new values
During the update sessions, VietinBank has introduced to investors some key Vietnam’s economic sectors which have highly potential developments such as: Power industry, Oil and gas, Textile and garment, Infrastructure, Telecommunication, Chemical industry, Construction material, food and beverages…These are all key economic industries and the enterprises that are operating in these sectors are strategic clients and having long-term relationship with VietinBank.
With sound and comprehensive understanding of operating characteristics, financial situation, strategic development plan as well as clients’ capital needs, VietinBank desires to design new funding mechanism for Vietnamese enterprises, and as such, strongly believes to select the most professional and suitable partners for its enterprises.
Beside the traditional loan offerings, Vietnamese enterprises can tap in other fund raising means such as new share issuance (ordinary, preference…), bond issuance (senior, convertible…) or other financial instruments including medium-term note (MTN) and credit linked note (CLN)…
In the position of market maker and the first bank in Vietnam successfully issuing international bond, VietinBank desires to create new values for clients via not only traditional products and services, but also business matching events and investment cooperation; therefore, acting as the reliable partner and supporting enterprises to integrate into the global market successfully. In particular, since the Bank of Tokyo-Mitsubishi UFJ (BTMU) officially became a strategic stockholder of VietinBank, both institutions have been actively cooperating in various areas, including investment banking, M&A advisory services, corporate finance advisory services and seeking strategic foreign partners for Vietnamese enterprises. In collaboration with our strategic investors andother reputable foreign banks,
VietinBank is confident in acting as a facilitator, advisor or guarantor to provide Vietnamese enterprises with better and efficient access to international markets. Such support from VietinBank will leverage for the stable development and greater success of Vietnamese enterprises.
With a comprehensive support, VietinBank believes this will be a significant encouragement for more extensive cooperation between VietinBank and domestic enterprises, not only strengthening the relationships with clients, providing diversified products and services to customers but also changing VietinBank’s income structure toward higher proportion of income from services, which contributes to increase VietinBank’s domestic market share while beneficial to the clients, the bank and the economy.
Nguyen Van Anh
