Billionaires of Malaysia, which is the third largest economy in ASEAN, entered Vietnam very early, and they have been operating efficiently in the country.
The fifth largest bank in Southeast Asia considers Vietnam one of its top priorities in its expansion strategy, with a view to taking full control of local lenders.
Many representatives of Malaysian banks are running business well in Vietnam such as Maybank and Hong Leong. In 2009 Hong Leong became the first foreign bank in Southeast Asia to receive an investment license in Vietnam.
Meanwhile, Maybank purchased a large number of shares from ABBank in 2008 to become the bank’s strategic shareholder. It has already set up two branches in two largest cities - Hanoi and Ho Chi Minh City. By the end of July 2014, ABBank and Maybank launched their ATM network, aiming to reach out to the region and the world.
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Most recently, Malaysia’s Public Bank Berhad (PBB) reached an agreement to buy shares of the Bank for Development and Investment of Vietnam (BIDV) and established VID Public Bank (VPB) under the form of a wholly owned-foreign invested bank.
Apart from broad participation in the banking sector, Malaysian groups successfully seized opportunities to explore the Vietnamese stock market thanks to their long-term investment.
In May 2014, Maybank Kim Eng (MBKE) raised their charter capital from VND300 billion to VND615 billion after six years operating in Vietnam. This is a huge step after the giant set up a 100% foreign invested stock company early this year.
Mid-June 2014, HVS, a big Malaysian firm, purchased shares of Hung Vuong stock company and changed the name of the company into HVS Vietnam Stock Company, with the aim of becoming one of leading investment banks and international brokers.
Like Thai enterprises, Malaysian giants are interested in retail and food markets. Malaysia’s Parkson Group Jupitek opened its 9th centre in Vietnam, based in District 2, Ho Chi Minh City.
Food brands, such as Sailing boat, Fimifie, SugarBun and The Chicken Rice Shop of Malaysia, have strongly penetrating the Vietnamese market.
In addition, aviation and information technology (IT) sectors are capturing due attention of Malaysian businesses. Two months ago, AirAsia resumed direct flights on Kuala Lumpur-Danang air route with a frequency of four flights a week. Japanese-Malaysian Hitachi Sunway firm is also present in Vietnam to get involved in IT infrastructure projects.
Several Malaysian enterprises are no longer keen on energy and real estate projects in Vietnam. In July 2014, Gamuda Land Vietnam announced the suspension of the Yen So park project – the largest of its kind in Hanoi, citing high land acquisition costs as the the main reason.
Genting Berhad Malaysia, a subsidiary of Genting Group, withdrew its investment from a US$4 billion resort project in ancient Hoi An city, the central province of Quang Nam, two years ago.
According to the Ho Chi Minh City Stock Exchange (HSX), Malaysia’s IEV Energy Sdn.Bhd sold more than 1.8 million shares (nearly 6.7% of its total investment) to CNG company to withdraw its capital from an energy project in mid-May 2014.
Another Malaysia firm, Sanjung Merpati Sdn Bhd, last year denied taking part in a project to build a thermal electric power plant in the northern province of Hai Duong at an estimated cost of over US$2 billion.
At present, Malaysia ranks 8th among the largest foreign investors in Vietnam with more than US$10 billion, mostly focusing on banking and securities projects.
