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Foreign banks take a lot of advantages in Vietnam's market
By Tuan Minh 09:55, 2014/12/31
Despite many barriers, foreign banks have been prospering in Vietnam, dominating many service market segments.

On April 4, 2014, a transaction to transfer 22 million VIC shares worth $70 million was successfully made. This is the biggest-ever deal made by a Vietnamese private company and the biggest transaction in the secondary stock market in 2014. Credit Suisse and Morgan Stanley acted as the consultants in the deal.

In late 2013, Credit Suisse, acting as the global coordinator, together with Deutsche Bank and ING, arranged the Vingroup’s deal of issuing international bonds, which successfully raised funds of $200 million. Since 2001, Credit Suisse has reportedly helped raise over $6 billion worth of funds for the government of Vietnam, Vietnamese and foreign invested enterprises in Vietnam.
 


The institution’s clients include well-known names such as Hoang Anh Gia Lai Group (property, hydropower, farm produce), Ocean Group (banking), Vinacomin (coal miner), PetroVietnam (oil and gas), EVN (electricity), SSI (securities) and LienViet Post Bank.

Credit Suisse, for the third consecutive year, has been recognized as the best international investment bank in Vietnam in 2014. In early 2014, the HSBC, Standard Chartered Bank and Deutsche Bank came forward and arranged the Vietnamese government’s $1 billion bond issuance in the international market.

In early December 2014, Standard Chartered and Societe Generale Corporate and Investment backed Masan Consumer’s deal of issuing VND2.1 trillion worth of 10-year bonds with a guarantee from CGIF, an arm of the Asian Development Bank (ADB).

A series of international bond issue campaigns by Vincomin, Vingroup, BIDV and HAG in recent years were also arranged by big international investment banks which have operations in Vietnam. Analysts noted that Vietnamese banks do not have the opportunities to get involved in such big deals.

All the foreign banks in Vietnam have clear business strategies. They can be classified into some groups, including groups of investment banks, retail banks, banks that fund commercial activities, and banks specializing in providing loans and services to foreign invested enterprises in Vietnam.

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