Regulatory compliance risk management framework

The Vietnam Prosperity Bank's staff offer clients consultation. (Photo: VNA) Hanoi (VNS/VNA) - Over the past decade, Vietnam has seen a remarkable surge in personal financial assets (PFA) that outpaces many other Asian countries. This robust economic environment has created a significant demand for specialised wealth management service s, tailored to the diverse financial aspirations of retail customers. A recent projection by McKinsey & Company has indicated that by 2027, Vietnam's PFA market will reach approximately 600 billion USD, growing annually at a rate of 11% from its 2022 baseline of around 360 billion USD. This growth encompasses a significant increase in managed wealth assets within the industry, presenting an estimated additional 65 billion USD to 75 billion USD in opportunities for institutions. These opportunities are poised for equal distribution across both affluent and high-net-worth individual (HNWI) segments, making it a tantalising … [Read more...] about Unleashing potential of Vietnam’s wealth management market

Vietnam Prosperity Bank's staff offer clients consultation. — Photo vietnamplus.vn Over the past decade, Việt Nam has seen a remarkable surge in personal financial assets (PFA) that outpaces many other Asian countries. This robust economic environment has created a significant demand for specialised wealth management services, tailored to the diverse financial aspirations of retail customers. A recent projection by McKinsey & Company has indicated that by 2027, Việt Nam's PFA market will reach approximately US$600 billion, growing annually at a rate of 11 per cent from its 2022 baseline of around $360 billion. This growth encompasses a significant increase in managed wealth assets within the industry, presenting an estimated additional $65 billion to $75 billion in opportunities for institutions. These opportunities are poised for equal distribution across both affluent and high-net-worth individual (HNWI) segments, making it a tantalising prospect for wealth management … [Read more...] about Unleashing the potential of Việt Nam’s wealth management market

Given the insufficient public finance for climate ambitions, credit institutions play an increasingly important role in supporting the country's move towards a net zero economy through promoting green financing and capital markets to tap climate investment opportunities. — VNA/VNS Photo Việt Nam needs to develop a proper regulatory framework to pave the way for credit institutions to increase green financing and contribute to accelerating the transition to a low-carbon economy, attendees heard at the Việt Nam Climate Forum organised by the International Finance Corporation (IFC) in collaboration with the State Bank of Việt Nam (SBV) yesterday in Hà Nội. At COP26 in November 2021, Việt Nam announced the target to achieve net-zero emissions by 2050, phase out coal power by 2040, and reduce methane emissions by 30 per cent from 2020 levels by 2030. The Government of Việt Nam has introduced several policies, strategies, and plans to support environmentally sustainable development, … [Read more...] about VN needs to improve regulatory framework to increase green financing

The banking sector assumes a vital role in introducing innovative financial instruments and suitable investment methodologies to enable Vietnam to achieve its net-zero emissions goal by 2050. The banking sector, as a key capital mobilization channel for the economy, is responsible for  “greening” investment capital flows for Vietnam to ensure the goal of sustainable development. Overview of the conference. Source: SBV Vice Governor of the State Bank of Vietnam Pham Thanh Ha made the remarks at a conference themed “Greening the Financial Sector: Accelerating transition to a low-carbon economy in Vietnam” held today [September 21]. According to Ha, Vietnam has historically maintained very low greenhouse gas (GHG) emissions. In absolute terms, Vietnam's GHG emissions reached 364 million tons of carbon dioxide (CO2) in 2018, constituting a mere 0.8% of the world's total emissions. However, over the past two decades, the country has experienced the fastest … [Read more...] about Greening finance accelerates Vietnam’s SDG implementation

How do you assess the current state of the financial sector’s involvement in driving green transformation in Vietnam? Allen Forlemu, the International Finance Corporation’s regional director of Financial Institutions Group for Asia-Pacific Climate finance in Vietnam is still in its infancy, representing only about 5 per cent of the total financing provided by Vietnamese banks today. Domestic financial institutions are in the early stages of their understanding of green bonds and other capital market instruments. The State Bank of Vietnam (SBV) has played a proactive role. Notably, the SBV’s guidelines on managing environmental risks in lending and priority sectors eligible for green finance have significantly advanced the greening of the financial sector. Between 2016 and 2021, green credit has almost quintupled - 2.5 times faster than the average credit growth rate during this period. The forthcoming Vietnam green taxonomy will also aid green finance development … [Read more...] about Banks must be decisive in green financing mission

Keijo Norvanto, Ambassador of Finland to Vietnam On behalf of the Embassy of Finland to Vietnam and the Finnish business communities in Vietnam, I would like to congratulate Vietnam Investment Review on its 32 nd anniversary. I would like to express our appreciation to the VIR editors and its dedicated and talented reporters for their continuous work, introducing the Vietnam business environment and opportunities to Finnish businesses. Moreover, VIR ’s continuous cooperation with us provides the audience with Finnish experiences and know-how in education, circular economy, and other advanced technologies. The Vietnamese government committed to net-zero by 2050 and recently joined the Just Energy Transition Partnership declaration that aims to contribute to Vietnam’s sustainable development. In that, Finland possesses globally competitive technology and expertise in many areas, which will help Vietnam achieve the country-set targets. Additionally, our proven … [Read more...] about Defining the role of the press in business

At the forum, held also thanks to the Swiss State Secretariat for Economic Affairs and the Australian Department of Foreign Affairs and Trade, speakers emphasised the substantial challenges faced by the climate finance sector in Vietnam in aligning significant investment opportunities with environmental objectives. This sentiment was shared by Allen Forlemu, the IFC's regional industry director for Financial Institutions Group, Asia-Pacific, when he said, “It is evident that climate change is an increasingly disruptive factor for Vietnam's economy, and the costs are already starting to undermine growth. In 2020, Vietnam lost $10 billion, or 3.2 per cent of its GDP, to climate change impacts.” “If nothing is done, costs will only rise. In a business-as-usual scenario with limited global mitigation efforts, climate change could cost Vietnam up to 14.5 per cent of GDP annually in roughly 30 years, with the potential to push a million people into extreme poverty in less than a decade,” … [Read more...] about Forum discusses impact of climate change

Kim Dooyoon, CEO of JB Securities Vietnam What is your assessment of the financial landscape of the country, and how have you seized opportunities? In the last three years living and working in Vietnam, I have found that for Vietnamese business, the main source of financing is mostly from banks, and the capital markets are in the early stage compared to peer countries in Asia. As Vietnam's economy grows fast compared to other countries, I expect that its capital markets will also grow to meet the funding needs from the industries, based on my experience and study in Korea and the US. With this expectation, I have decided to focus on the debt capital market first since I joined JB Securities Vietnam (JBSV) three years ago. In particular, in the last two years, JBSV has advised corporate bond issuances and made commitments to invest more than 1 trillion VND. Thanks to our strong financial analytical skills and advanced risk management scheme on the bonds, JBSV has been … [Read more...] about JB Securities strives to contribute to development of Vietnam’s capital markets

New rating agency approval shores up credit confidence, Photo: Le Toan The Ministry of Finance (MoF) last week certified VIS Rating, enabling its operations as a credit rating agency. Backed by global giant Moody’s and top Vietnamese financial entities, the agency emerged from an initiative by the Vietnam Bond Market Association. Starting from October 4, VIS Rating intends to offer high-quality credit rating services to domestic issuers, aiming to meet the demands of investors, issuers, and market players. CEO Tran Le Minh said it aspires to be recognised for reliability and top-tier credit services in Vietnam. Since its inception in 2021, VIS Rating has harnessed Moody’s expertise to develop methodologies, recruit elite personnel, and produce substantial research on the corporate bond scene. Wendy Cheong, regional head for Asia-Pacific at Moody’s Investor Service said, “VIS Rating extends Moody’s footprint in Asia-Pacific and embodies the premier services we offer in … [Read more...] about New rating agency approval shores up credit confidence

Lam Nguyen Hoang Thao, senior associate at law firm Russin & Vecchi The central provinces of Thanh Hoa and Nghe An are looking for the government’s green light to convert some coal-fired power projects into liquefied natural gas (LNG) -to-power one. How do you think this trend is panning out in Vietnam so far? I believe that the trend of converting coal-fired power to LNG-to-power plants in Vietnam is a very positive development. The Power Development Plan VIII (PDP8) called for a reduction in the use of coal and an increase in the use of cleaner fuels. The nation’s goal is to make the transition to green, renewable energy including solar, wind, biomass, ammonia, hydrogen, and nuclear energy. However, the road to reach these goals is still long and uncertain. Vietnam still has limited ability to supply energy from biomass and green ammonia due to the limitation of technology, expertise, and due to the related high production costs. Similarly, with hydrogen, the … [Read more...] about The key factors to take into account for switch to LNG