Business
Standard Chartered Bank: 'We are committed to Vietnam’s growth'
Mr. Nirukt Sapru, CEO of Vietnam and ASEAN and South Asia Cluster Markets, Standard Chartered Bank, explains in detail to Hanoitimes’ Ngoc Lam the bank’s decision to divest its entire stakeholding from ACB.
Mr. Nirukt Sapru, CEO of Vietnam and ASEAN and South Asia Cluster Markets, Standard Chartered Bank.
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What are the reasons behind Standard Chartered Bank's exit from ACB after 12 years of investment? What has SCB achieved during this 12-year period?
We can confirm that we have sold a 15 percent minority stake in Asia Commercial Bank (ACB) to a group of investors. This is in line with the Group’s global strategy announced in November 2015, to become leaner and more focused, and divest our non-core businesses. We no longer hold any shares in ACB after completion of the sale of our 15 percent stake. This has no impact on our operations in Vietnam, as we operate from our wholly owned subsidiary Standard Chartered Bank (Vietnam) Limited.
We have been in Vietnam since 1904 and we were one of the first foreign banks to establish a presence in the country. Vietnam is a key part of our unique international network and represents a strategic part of our ASEAN network. We are proud to be the only international bank with a presence in all ten member-countries.
We remain strongly committed to Vietnam and will continue to invest resources to drive trade, investment and the creation of wealth in Vietnam.
What is the upcoming plan for Standard Chartered Bank in Vietnam's financial sector?
We are fully committed to participating and investing in Vietnam’s growth through a robust and sound long-term strategy and offer a full suite of banking products and services for our corporate clients, financial institutions as well as small and medium enterprises and retail clients, to help them grow their business, create jobs, and generate wealth.
We have invested significantly in Vietnam over the last year and desire to continue to invest in the business in Vietnam. This investment has gone towards hiring more staff, expanding our distribution footprint in Vietnam, and bringing new cutting-edge products to Vietnam to make banking safer and more convenient for Vietnamese people and companies.
We recently launched our new office and branch at District 7, Ho Chi Minh City. With the launch of the new branch, we now have a total of four branches in Vietnam, two in Hanoi and two in Ho Chi Minh City.
Could you evaluate the current status of Vietnam’s banking system?
Vietnam’s banking sector has become much healthier today than it was a few years ago and supports the country’s growth. The State Bank of Vietnam (SBV) has achieved significant success in managing monetary and credit policies, stabilizing Interest rates and Foreign-Exchange (FX) rates, Non-Performing Loan (NPL) resolution, and implementation of the new 5-year banking restructuring roadmap.
This has helped minimize market volatility, increase Vietnam’s export competitiveness relative to other ASEAN economies, attract foreign direct investment (FDI), and create public confidence towards SBV’s management capabilities and policies. At the same time, the Government’s determined effort to resolve NPLs and SBV’s effort in improving the communication of developments in the banking sector has also helped to reinforce market confidence, protect the interests of depositors and investors, and facilitate the development of a healthier, safer, and more effective banking system.
While more work still needs to be done, we applaud the progress that has been made in the banking sector and expect that to be further accelerated.
What do you think about the recent growing trend of wholly foreign-owned banks in Vietnam?
I think this is a positive development. On one hand, it shows the attractiveness and the openness of Vietnam toward foreign investors, which should help Vietnam to continue attracting FDI in the banking sector. One the other hand, it increases the competition in the industry, pressuring banks to improve their products and services. So, I think, overall this is good for banks, customers and, more broadly, the development of the banking sector and the economy.
