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Vietnam’s Wealth Market and Digital Transformation - Getting it Right

What are the key priorities in terms of boosting internal and operational efficiencies and achieving cost savings? What are the key digital solutions that will help deliver greater client centricity, personalisation and client satisfaction? How can digital tools and solutions help incumbents stay ahead of the pack in an increasingly competitive wealth management market? How does technology help the wealth market leaders and competitors curate and then deliver advice more effectively? Vietnam has a young and digitally savvy population, but the older generations hold most of the wealth, so how do banks and others balance digital and human connectivity? These and other key questions we addressed in the second panel discussion of the Hubbis Vietnam Wealth Management Forum on November 8. Moderated with considerable skill by Abhi Saxena, an Associate Partner of Synpulse, the dialogue considered digital transformation to enhance operational efficiencies, to promote more client-centric solutions, and the expert analysed the intricate interplay between technology and personalised service from individual advisors and RMs. The key to the discussion was the backdrop of the rapid expansion of the Vietnam wealth market, which consulting giant McKinsey has predicted will grow rapidly by 2027 to represent assets of more than USD600 billion. This is a brief distillation of the discussion.

The Evolution of Private Client Investment Demand in Vietnam

Vietnam is a young and fast-developing market in terms of wealth management with a relatively limited offering of products, so far only a nascent advisory proposition and as yet only an emerging distribution infrastructure. A group of experts assembled on November 8 to analyse the state of the investment products market locally, the likely developments ahead as liberalisation gradually takes place and as appetite expands amongst HNW/UHNW clients, and amongst the growing ranks of mass affluent clients emerging on the wealth management scene. They also looked across to the growing logic for and avenues to facilitate foreign participation in what will be a long-term growth economy and significant capital market opportunities for many years to come. They pondered whether foreign investors should be tactical or strategic in their allocations and highlighted the challenges around building liquidity in the domestic markets. The overall impression was that progress needs to be oiled by education, awareness, the nurturing of talent, greater industry collaboration with the authorities and regulators, and a fair degree of patience to ensure the building blocks are in place. Events such as the bond market ‘crisis’ in the recent past will naturally set the market back, but awareness of risks will increase and a flight to quality is no bad thing for the evolutions of what is a market in its emerging phases.