Vietnam Wealth Management Forum 2017 - Post Event Report

7 September I The Reverie Saigon I Vietnam

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SummaryIn a country moving quickly towards a market-based economy with rising per capita income and per capita GDP – accessing the young and growing population of 95 million-plus offers huge potential for banks, insurers, asset managers and other financial firms looking to offer wealth management products and services.

While the current size of Vietnam’s wealth management market is meagre, its growth potential suggests that the opportunity could be significant for those institutions which position themselves correctly, and sooner rather than later.

Traditional transaction products for the mass-market client segment – such as credit cards, personal loans mortgages – are easier to sell and make money from, with insurance also a priority since it tends 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 difficult, costly and time-consuming. Not many local banks yet have a clear affluent or HNW strategy.

A lack of education, knowledge and regulation to sufficiently stimulate capital markets activity also hampers the development of the core infrastructure required.

As a result, any meaningful wealth management industry is several years away – plus is dependent on the regulator, in collaboration with industry players, first being able to plug the education gap, for both individual investors as well as people who manage wealth.

More investment choices are also needed, along with better understanding of client risk profiling, to determine a suitable mix of assets.

Yet there is growing recognition in all parts of the market about the real and growing need for wealth management – based on increasing wealth and numbers of affluent and HNW in Vietnam. And some banks are making moves in the right direction.

These were among the main views of the 200 speakers and industry practitioners who came together at Hubbis’ 2nd annual event for the wealth management and financial services community in Vietnam.

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Type of firm

26%

4%

20%

18%

8%

8%

16%

Retail Banks

Independent Firms

Securities Companies

Asset Management

Technology / Fintechs

Insurance

Other

Attendee Profile

Job role

C-Level

Product/Investment

Business Head

Adviser/Wealth Manager

Other

23%

32%

20%

16%

9%

“The wealth management industry in Vietnam, particularly private wealth, is at an infant stage. The Hubbis event provides the insights that we hope will shape the future of wealth management in Vietnam.”Duy Nguyen Manager, Equity Research, Thien Viet Securities

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360F5DesireAbax CapitalABBankACB SecuritiesAetnaAn Binh Fund ManagementANZ BankAPS HoldingsAristo DevelopersASC SecuritiesAsia Frontier CapitalAsia InvestAsia Plantation CapitalBank of SingaporeBether CapitalBIDVBIDV SecuritiesBordier & CieChubbChubb Life Fund ManagementCorecam Family OfficeCovenant CapitalCredit Suisse Private BankingCredit Viet SecuritiesDai-ichi Life Fund ManagementDeutsche BankDeVere GroupDragon CapitalEastspring InvestmentsEquiom GroupEVG GroupFaster CapitalFintekFWDGICC Global

Attendees from these firmsGlobal Precious MetalsGrant ThorntonGuosen SecuritiesHenley & PartnersHo Chi Minh SecuritiesHongkong Aidingke International InvestmentHubbisHVP LawyerIndovina BankInfinity Wealth FuturesJ.O. Hambro Capital ManagementKasikornbankKomTekKornova InvestmentsKusto ManagementLabuan IBFCLiferayLombard OdierManulifeManulife Asset ManagementMaritime BankMaybank Kim EngMBBankMeedNew Era Capital PartnersOdyssey Capital GroupOrbiumPerspectiv VenturesPhatra Asset ManagementPMAXPNG Private OfficePrestige Wealth ManagementPrudential AssurancePVcomBankPXP Vietnam Asset Management

RGFRMIT International UniversityRockwills Trustee RosemontSaigon Commercial BankSaigon Hanoi BankSaigon Value InvestSBI E2 Family AdvisorsSEAFSmartChoice Wealth AdvisorSOGroupSong Ngan Investment ServicesSSI Asset ManagementStandard Chartered BankState StreetTechcombankThien Viet SecuritiesThomson ReutersTien Phong BankTotal Wealth ManagementUniversity of HawaiiUOB BankVCI LegalViet Capital BankViet Thai InternationalViet Youth EntrepreneurVietcombank Fund ManagementVietfund ManagementVietnam Capital AdvisorsVietnam International BankVietnam Investments GroupVinaCapitalVPBankVPBank SecuritiesWealth Management AllianceWestoun Advisors

“Hubbis organised a world-class forum in Vietnam. These events are integral to the growth of wealth management [in this country] and other emerging markets in South-east Asia.”Bao Nguyen, Chief Executive Officer, Vietnam Capital Advisors

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Speakers

Le Thi Le HangSSI Asset Management

Sandeep DeobhaktaVPBank

Benjamin TurnerLiferay

Afonso VieiraTotal Wealth Management

Bill StoopsDragon Capital

Stephan RepkowWealth Management Alliance

Andreas VogelsangerAsia Frontier Capital

Johan NyveneHo Chi Minh Securities

Sylvie MaHenley & Partners

Thuan Thai NguyenVinaCapital

Ken AtkinsonBritish Business Group

Paul NguyenManulife

Bao NguyenVietnam Capital Advisors

Dung Dang TuyetMaritime Bank

Kevin SnowballPXP Vietnam Asset Management

Piotr ZboinskiOrbium

Michael Gerber360F

Lan Anh DoStandard Chartered Bank

Irene LeeEquiom Group

Andrew HendryWestoun Advisors

Evrard BordierBordier & Cie

Fred LimUOB Bank

Hoai Thu NguyenVinaCapital

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“The Hubbis wealth management conference in Ho Chi Minh City is on par with the development of the market itself: 20% growth year-by-year.”Michael Gerber, Chief Executive Officer, 360F

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Key voting poll results Local banks and fund management firms are likely to be more successful than any other type of

organisation in taking advantage of the development of wealth management in Vietnam over the next 10 years, according to a poll of delegates.

The biggest need that the majority of wealthy Vietnamese have, is children’s education, believe 32% of poll respondents. This is followed by succession planning (18%), retirement (14%), protection (14%), savings (11%) and citizenship / residency (11%).

Regulation is the fastest way to drive wealth management forward in Vietnam, according to 44% of poll respondents. Investor education is also key (28), followed by more product choice (17%) and training people to be wealth managers (11%).

This is pertinent, given that just over two-thirds of poll respondents think that people working within wealth management in Vietnam do not conduct themselves in an ethical way.

When focusing on asset management in Vietnam, the majority of poll respondents (58%) say that investor education is the biggest issue holding back the industry at the moment. The other key requirements, believe delegates, are deepening the capital markets, greater transparency, harsher punishments for wrongdoing, and more talent.

The priority for Vietnam’s regulators to develop the capital markets should be to allow a wider range of products, believe 37% of poll respondents.

Ease of access for foreign investors (26%), industry collaboration with the regulator (16%), less regulatory control over market players (11%), and enabling greater digital progress (11%), are other areas where action is needed in terms of developing the capital markets, according to delegates.

There is some optimism, however – although there are only 16 mutual funds today in the local market in Vietnam, 64% of poll respondents predict that this will grow to nearer to 100 funds in 10 years’ time.

“It was a great event with many stalwarts of the Vietnamese wealth management sector in attendance, including asset managers (eg. VinaCapital, Dragon Capital, etc), banks (eg. VP Bank, Maritime Bank, Military Bank, etc.) and brokerages (HSC and SSI). The event again showed the level of activity in the market, with all players positive about the future of the industry and many actively investing into new offerings and new products. The conference was informative as well as a great opportunity to network and reconnect with industry stakeholders.”Piotr Zboinski, Head of Operations & Strategy, Management Consulting, Orbium

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Delegate Feedback - Overview

Most relevant topics

How banks can prepare for the wealth management evolution in Vietnam The challenges facing local banks in promoting legitimate wealth management services –

despite an unclear regulatory environment Developing the insurance offering in Vietnam Creating the framework for funds distribution

Key take-aways

Trends in wealth management in Asia and globally How to be a successful wealth manager in today’s environment Understanding the barriers for wealth management in Vietnam The difficulties as well as advantages in launching a wealth management service in Vietnam The role of digital in mutual funds expansion

Top 5 presenters

Sandeep Deobhakta, Division Head of Retail Banking, VPBank Thuan Thai Nguyen, Managing Director, VinaCapital Bill Stoops, Chief Investment Officer, Dragon Capital Sylvie Ma, Managing Partner, Vietnam, Henley & Partners Andrew Hendry, Managing Director, Asia, Westoun Advisors

Top 5 panel speakers

Lan Anh Do, Head of Wealth Management, Vietnam, Standard Chartered Bank Johan Nyvene, Chief Executive Officer, Ho Chi Minh City Securities Corporation Bao Nguyen, Chief Executive Officer, Vietnam Capital Advisors Hoai Thu Nguyen, Managing Director, VinaCapital Dung Dang Tuyet, Deputy Chief Executive Officer, and Chief Executive Officer of Retail Banking, Maritime Bank

Vietnam Wealth Management Forum 2018

Thursday 13th September