VietinBank sucessfully conducted 2016 investor update meetings in US...
From the date of 21/10/2016 to 29/10/2016, the delegation headed by Mr. Le Duc Tho – CEO of VietinBank conducted series of meeting with large fixed income fund managers in US.
| CEO of VietinBank (in middle) provides updates of Vietnam macro-economy to US investors |
Sharing of information
The meetings target at providing latest updates on Vietnam macro-economy and development outlook, the result of the banking sector consolidation and VietinBank’s business performance for the first 9 months of 2016 and its development strategy. This is the opportunity for VietinBank to access and engage comprehensively with the wider global community of investors, paving the way for further fund raising activities fromVietinBank in the future.
As part of the investor update trip, the delegation participated in meetings with some of the largest investment funds and asset management companies in the US. Investors are highly interested in Vietnam economic development with the average GDP growth over 6% in the recent years and the growth rate target set by the Government for the next 5 years from 6.5% - 7%. One of the highlights recognized by foreign investors is the trend of FDI flow into Vietnam which will continue to increase in the coming time given the positive efforts from the Government to create stable business and transparent investment environment via the improvement in the legal framework and policies to encourage domestic enterprises and attracting foreign investors.
| In 2012, VietinBank was the first and only bank in Vietnam so far to successfully issue a USD 250 million bond with a 5 year maturity in Reg S and 144A format, listed on Singapore Stock Exchange |
Besides, along with the stable development policy, Vietnam has proven itself to be one of the most stable economies in comparison with other developing countries in the region by strenghthening fiscal and economic policy targets, improving credit growth efficiency and controlling inflation. The investors are also impressed by Vietnam’s international integration by signing free trade agreements with nations and territories, expanding collaboration capacity in terms of economy, trade and investment between Vietnam and other countries
The delegation were open to share Vietnam monetary management policy, with the State Bank of Vietnam efficiently applying series of market tools such as interest rate policy and OMO activities, FX management, credit growth target and reserve requirement.. In addition, VietinBank’s delegation provided an overview on newly promulgated regulations to consolidate asset quality and CAR compliance applicable for commercial banks such as Circular 06/2016/TT-NHNN complementing Circular 36/2014/TT-NHNH, regulations pertaining to VAMC’s operation... As such, investors showed special interests in bad debt settlement in Vietnam, credit quality as well as the restructuring process of Vietnam commercial banks.
| US investors are interested in VietinBank business performance |
Opening new opportunities
Up to now, VietinBank is the only commercial bank in Vietnam to sucessfully tap the international bond markets, marking the development in the country’s integration into the global financial markets and also is the bank having the same ratings with the sovereign ratings in 2016. During the update sessions, Mr. Le Duc Tho was open to provide information about VietinBank’s business performance demonstrated by its high growth and stability over the recent years, its efficient control over asset quality with the lowest NPL ratio recorded in the whole banking system, leading position in business performance and its medium & long-term development plan in expanding operational scale, increasing market shares, diversifying services and enhancing business efficiency.
Investors were also interested in VietinBank’s roadmap in adjusting shareholder structure, attracting foreign investors and fundraising activities. Many questions were raised relating to VietinBank’s business orientation, including strong development in services for small & medium-sized enterprises and retail customers, operational efficiency and potential fund raising plans of VietinBank. These concerns are fairly discussed and justified by Mr. Le Duc Tho and the delegation which continue to create investors’ confidence in VietinBank and develop new collaboration between VietinBank and investors.
The investor update meetings were sucessfully conducted and highly appreciated by US investors. Following the meetings, some investors made plan to carry out researches on Vietnam’ market in November and would collaborate with VietinBank to seek out opportunity in investment in new corporate bond. This is a positive signal, acknowledging VietinBank’s efforts in connecting with global investors to enhance the prestige and reputation of Vietnam in general and VietinBank in particular in the international markets.
Nguyen Van Anh
