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SINGAPORE: Local banking giant DBS said it's upbeat about its expansion prospects in Vietnam. Chairman Koh Boon Hwee said the lender is looking to grow its franchise organically in that market.
He was speaking on the sidelines of the annual DBS Private Banking and Institutional luncheon on Wednesday.
The emerging Vietnam market is presenting huge opportunities and DBS believes that its growth prospects there are promising.
The bank has already got a head start, having just received regulatory approvals to operate a branch in Ho Chi Minh City.
Mr Koh said: "We are going to focus on how we can get that up and running, and how we can grow our current businesses and establish banking relationship with our existing customers. So it's all going to be organic at least for the first year or so."
He added that the Vietnam branch will focus on providing financial support to Singapore and Asia-based companies with business interests in the country.
Figures from the Vietnam Investment Review showed that as of November 2009, Singapore companies have invested some US$17 billion in over 760 projects in Vietnam.
DBS plans to tap on its existing relationship with some of those companies by offering credit facilities, trade finance, cash management and treasury advisory through its Vietnam branch.
Mr Koh added: "We have a lot of Singapore companies that are currently doing business in Vietnam, that up until this juncture that we are unable to bank. I think once we have our operations going in the second half of the year, I think it's going to be a promising market for us."
DBS also wants to cater to affluent individuals and small- and medium-sized businesses in Vietnam.
When asked if DBS would consider buying an equity stake in a Vietnamese bank, Mr Koh said DBS is always open to it, "but our deal is that it must lead on to something else. The reason is because a small percentage of a bank does not make it DBS."
DBS said it is also well-capitalised to pursue its expansion plans.
When asked for his early assessment on the bank's new CEO, Piyush Gupta, Mr Koh said he is a good fit and is working out very well for the bank.
Mr Gupta joined DBS in November last year and he is expected to present his strategic roadmap for the bank in the next two months. - CNA/vm
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