Vietnam Business Forum reporter interviewed Mr Tomas Tobin, newly appointed CEO of HSBC in Vietnam, about prospects for Vietnamese banking and HSBC’s plans for the future.
You have been appointed the new HSBC general director in Vietnam. Before taking the office, what did you think about Vietnamese economic prospects?
I have worked in the Asia-Pacific region for 15 years and I am very pleased to track the development of Vietnam. Vietnam is one of the fastest-growing economies in the region. It has escaped from the shadow of China and India, to become a place of interest for foreign investors seeking new investment opportunities.
The Vietnamese financial and banking sector is still fledging, this is indeed the attractiveness. There are a lot of business opportunities in such a fast-growing economy, and the most important thing is knowing how to grasp and realise these opportunities. In the first month at my new position in Vietnam, I am indeed very surprised at the fast growth, at HSBC dynamic operations and the many business opportunities here.
Foreign banks have been allowed to set up wholly foreign-owned banks, as stated in Vietnam’s WTO entry commitments. How do you expect this to impact the sector? HSBC plans to establish a wholly foreign-owned subsidiary bank in Vietnam. Would you mind revealing the progress of the plan?
The presence of wholly foreign-owned subsidiary banks enables foreign banks to operate more equally in comparison with domestic banks, and grasp more opportunities in emerging economies like Vietnam at the time of opening.
The State Bank of Vietnam is compiling instructing circulars which will set up a legal framework for foreign banks to set up their affiliate banks. We are now working closely with the State Bank and studying changes in the legal environment of Vietnam very carefully. I confirm that we I indeed will consider any opportunity to set up a wholly-owned subsidiary in Vietnam.
With advantages in technology and capital, how will foreign banks with compete with local ones with wide service network and full understanding of local culture?
Your question seems to prompt cooperation between local and foreign banks. Foreign banks like HSBC are willing to share experience, international skills, technology, product development, risk management and business administration with local partners. The Vietnamese banks, via this cooperation, can make faster growth.
On the other hand, local banks can share their networks with foreign partners. In this way, we can jointly exploit business opportunities for the mutual benefit of the entire banking system. This is what HSBC and Techcombank are doing within the strategic cooperation deal.
Can you talk about HSBC business plans in the future?
HSBC pledges to play a bigger role supporting growth and development in Vietnam, especially relating to the Vietnamese financial system, through the rise in clients, and introduction of new products and services to a wider market.
Quynh Chi
Vietnamese
