Vietnam’s financial sector has attracted investments to the tune of nearly $20 million from foreign investors in the first two months of the year while World Bank has launched a $102 million project with Vietnam’s trade ministry to support industrial enterprises.
BFSI space turns investor favourite
Vietnam’s finance, banking and insurance sector has attracted $19.77 million from foreign investors in the first two months this year as against $20.2 million in the corresponding period last year, registering a slight decline, according to the latest announcement from Foreign Investment Agency.
This comes in the backdrop of recent deals involving foreign investors entering Vietnam by acquiring local companies.
In February, Mirae Asset Global Investments, the asset management unit of South Korea’s Mirae Asset Financial Group, inked a joint venture agreement with a subsidiary of Vietnam’s sovereign wealth fund State Capital Investment Corporation (SCIC).
In January, Hanoi-based Techcombank was allowed to sell its entire stake in financial arm Techcom Finance to Lotte Card Company under South Korean chaebol Lotte Group.
Shinhan Card Co., Ltd., a subsidiary of the Korean Shinhan Financial Group acquired 100 per cent Vietnam Prudential Vietnam Finance Company Limited (PVFC) from UK-based financial services group Prudential plc for a consideration of $151 million also in January.
The securities market is likely to be the most attractive investment channel for investors in the Vietnamese economy this year, analysts predicted.
This year, Techcombank, Tien Phong Bank (TPBank) and Maritime Commercial Joint Stock Bank (Maritime Bank) plan to list on the stock exchange, which is expected to boost the banking sector, as well as the securities market.
World Bank launches $102m project supporting Vietnam’s industrial enterprises
The World Bank and Vietnam’s trade ministry have jointly launched a $102 million project to support the efforts of industrial enterprises to adopt energy-efficiency technologies and practices.
Under this project, industrial enterprises can access a new line of credit to fund their purchases of energy-efficiency and production-optimization technologies, thus reducing energy consumption and production costs and increasing their overall competitiveness in the domestic and international markets.
Vietnam’s energy sector is facing many challenges due to limited domestic energy resources and the high electricity demand to support economic growth,” said Ousmane Dione, the World Bank’s Country Director for Vietnam.
Funding under this project will be provided to participating financial institutions, which will then lend to industrial enterprises to invest in energy-efficient sub-projects.