Vietnam will remain a popular destination for foreign investors

Mr. Michael  Foong  Seong Yew– Country CEO, Maybank Vietnam

The world and Asia concluded a tumultuous year in 2023, and experts believe that there are still many issues that could impact the global economy and financial markets in the upcoming year. So, in your opinion, what are the factors that will shape the context and impact the Vietnamese market in 2024?

We believe that the major trends observed during the Covid-19 years are still relevant. These include the reorganization of the global supply chain, uneven recovery and growth among countries (with a distinction between the US and the rest of the world), geopolitical tensions in Europe, China, East Asia, and the overall structural slowdown of the Chinese economy. These factors, along with the advantage of Vietnam benefiting from the shift of foreign direct investment (FDI) capital flows from China to neighboring countries, have contributed to Vietnam's increased integration with the global economy. However, there are also disadvantages, such as a higher dependence on the monetary policies of major countries like the US and increased vulnerability to sudden economic shocks in China (which remains a crucial link in the global supply chain).

We anticipate that the economy will continue to be impacted by the slowdown of major trading partners such as the US, EU, and China in the first half of 2024. However, we expect economic growth to gain momentum in the second half of the year as central banks in these countries initiate a new cycle of monetary easing, which will support Vietnam's import and export activities.

Could you please share the story of Maybank leading foreign capital flows into the Vietnamese market? Additionally, could you provide information about their plans and destinations for the upcoming year?

Despite being slower than expected in a global economy that still faces many difficulties, Vietnam's economy is on the path to recovery and is performing better than most other countries. This is largely due to the gradual loosening of monetary policies, such as reducing interest rates, cutting taxes, and expanding public investment. We forecast that Vietnam's GDP will grow even stronger, reaching 5.8% in 2024 and 6.2% in 2025, compared to 4.8% in 2023. This positive trajectory is also why Vietnam remains a popular destination for foreign investors.

With the synergies of Maybank Group, we take pride in our capacity, capabilities, and network to support customers in expanding their business scale and network. Our global mindset and deep understanding of the ASEAN market drive us to actively seek opportunities to support our customers worldwide while maintaining a keen understanding of each customer's unique needs.

As part of Maybank Group's M25 strategy, Vietnam is a key market for the Group's continued investment promotion in the coming years. Leveraging the Group's financial strength, resources, and network, we aim to accompany and connect Vietnamese businesses with foreign investors, with a focus on developing E.S.G. We will continue to enhance our systems, human resources, and service innovation to position Maybank as the preferred partner for individual and organizational customers in the Vietnamese market.

Currently, we are leveraging the combined strength of two Maybank brands in Vietnam: Maybank Bank and Maybank Securities Company (Maybank Investment Bank), along with our equity stake in An Binh Bank. Our objective is to leverage the presence of Maybank Group in Vietnam and provide capital support to retail and SME business.

In order to solidify its pioneering position in the institutional customer services market, Maybank Investment Bank Vietnam organized a site visit to Vietnam on September 29. The visit included 12 financial institutions from 7 countries (UK, USA, Sweden, Malaysia, Thailand, Singapore), with a total management portfolio of up to $1,000 billion USD. The goal of this visit was to continue collaborating with the government to promote Vietnam's image and attract foreign investment, thereby contributing to the development of the country's financial system.

Additionally, in early June, Maybank Investment Bank invited 8 large Vietnamese enterprises to the Asian Investment Conference (Invest ASEAN 2023) organized by Maybank Group. These initiatives are part of our ongoing efforts to promote Vietnam's image and investment opportunities to foreign funds.

We are committed to continuing to work closely with authorities and domestic businesses to develop the stock market and make Vietnam's capital market more lively.

Leveraging the Group’s deep investment banking and advisory expertise, we are prioritizing investment in developing resources for consulting and investment banking in Vietnam. This will support a strong increase in capital mobilization activities in the market. In July, we proudly served as the sole financial advisor for Thomson Medical's acquisition of FV hospital in Vietnam. This deal is the largest ever in the healthcare sector in Vietnam and the largest acquisition in Southeast Asia since 2020. It marks TMG's entry into Vietnam, positioning them as one of the leading listed healthcare companies in Southeast Asia with operations in Singapore and Malaysia.

We anticipate that opportunities in the M&A field will continue to grow, and the debt market will become more vibrant in the future. Businesses are seeking partners, affordable sources of capital, and new opportunities, creating attractive investment prospects both domestically and internationally.

Thank you!