Accessing Vietnam’s young and growing population of 95 million-plus – in a country moving towards a market-based economy with rising per capita income and per capita GDP – offers huge potential for financial firms looking to offer wealth management products and services.
The market was also upgraded in early 2017 by Moody’s Investors Service, from stable to positive – good news for the investment environment.
Yet local banks and other institutions don’t seem to be taking the potential for wealth management seriously enough at the moment.
Traditional transaction products such as credit cards, personal loans mortgages are easier to sell and make money from, with insurance also high on the priority list since they tend to give banks a commission of between 5% and 6%. Further, the mind-set of Vietnamese is still very short-term oriented.
By comparison, therefore, wealth management is too difficult, costly and time-consuming. The lack of education, knowledge and regulation hampers the development of the infrastructure required.
With too much talk and too little action at the moment, many practitioners in Vietnam believe that any meaningful wealth management industry is at least 5 years away. The expectation is that only when institutions have exhausted the opportunity in terms of conventional banking, and only when capital markets deepen and regulations are more conducive to the development of a wider set of investment products, will they start to take a serious look at it.
Many players also cannot see any real advantage to being a first-mover. Even some of the universal banks that operate in the local market have failed to make any significant progress in the wealth space to date.
On the plus side, however, there is a real and growing need for wealth management.
With increasing wealth and numbers of affluent in Vietnam is developing an ever-larger crop of individuals who are thinking about participating in the market to get diversification, access to new products and advice from people qualified to manage their wealth.
Against this backdrop, we are hostinG this event forsenior Participants in the local market, as well as for individuals across Asia who are interested in what Vietnam can offer in the coming years and decades.
They will come together to share experiences and insights about the opportunities and challenges ahead.
Key also to the content is providing insights from experts in overseas markets – to understand wealth management, share best practices and review the components of successful businesses.