The global economic slow down has brought about bad impacts on Vietnam’s economic sectors, including the banking and finance sector. However, this challenge will help the sector review its development process. Vietnam Business Forum reporter had an interview with Nguyen Thi Nga, Chairwoman of Southeast Asia Commercial Joint Stock Bank (SeABank) on this issue.
What are the bank’s measures to deal with and mitigate risks and financial difficulties to stand firm the fierce competition with foreign rivals?
In the common difficult context, SeABank has focused on strengthening and maintaining its business activities, stabilising its operations. The bank’s board of directors, managing boards and staffs to minimize difficulties and fulfill set goals.
Last year, SeABank maintained the stable growth rate, affirming its prestige. In the year, it inked contracts with strategic partners and a technical assistance contract with Société Générale bank. This showed the French bank bright opportunities in the cooperation with SeABank. Société Générale and SeABank have quickly carried out the technical assistance programme for SeABank’s operations in 2008.
The Société Générale (France) has named SeABank as its strategic partner in Asia. SeABank becomes Société Générale’s first partner in the retail sector in the Asian market. What will SeABank customers benefit from the partnership?
Through the strategic cooperation, SeABank will be provided with technical assistance by Société Générale in administration, operation and service system, especially retail banking products and risk management. Société Générale will also help SeABank build trademark and international standard transaction system. Thanks to the cooperation, SeABank will also have more opportunities to cooperate with banks worldwide as well as join activities of international card organizations such as Master Card, Visa Card as their membership... Société Générale has its representatives in SeABank’s the board of directors. Société Générale has often sent senior experts to Vietnam to work with SeABank to help the Vietnamese partner in organization mechanism, retraining, strategies to develop retail system and risk management... The partnership aims to improve SeABank’s competitiveness and bring best services and products to SeABank customers in the present as well as in the future.
The cooperation will bring customers more chances to select SeABank’s services. Besides, they will also enjoy international-standard services and benefit from the worldwide retail network which is served by a contingent of professional sellers and consultants. Customers can put their entire confidence in this prestigious bank.
Which factors have helped SeABank become Vietnam’s bright candidate for foreign financial investors? Additionally, how can foreign investors become SeABank’s strategic investors?
In 2008, SeABank increased capital from VND3 trillion to VND4.06 trillion and became of the sixth biggest banks in Vietnam. SeABank reached the total asset of VND22.474 trillion and had nearly 51,000 customers nationwide. In the year, the bank earned pre-tax profit of VND443.92 billion. Besides main income from credit, the bank has gained an on-year increase of international payment services.
SeABank trademark has become popular nationwide. Last year, it opened additional 28 transaction centres in Hanoi, HCM city, Can Tho, Hai Duong, Binh Duong , Khanh Hoa, Ba Ria-Vung Tau, Quang Ninh and Bac Ninh, raising its total number of transaction offices to about 70 across the country.
One of the goals of SeABank is applying modern technology products to optimise the information technology system. SeABank is proud of being the first Vietnamese bank successfully applying the latest version of R08 of the administration software T24 Temenos. It is also the first bank in the country to successfully integrate 24 Temenos and Way4 software to launch multi-function and modern cards. Based on the modern technology, SeABank officially issued domestic S24+ debit cards in the fourth quarter of last year and debut pre-paid cards. As of late December 2008, SeABank issued 15,359 S24+ cards for customers.
These are important results for the bank’s development process and also factors for it to become a top choice for foreign financial investors.
SeABank is very interested in foreign banks with strong retail operations, famous and prestigious trade name in the international market and also experience in international cooperation. In addition, the partners have to conform to Vietnam’s legal regulations of Vietnam on conditions for foreign strategic shareholders, including financial capacity (Total asset required at US$20 billion at least). The most key factor to become the SeABank’s strategic partner is the comprehensive assistance for the bank. Société Générale has met all requirements and has become a foreign strategic partner which holds 20 per cent of SeABank’s stake.
With the achivements and the bank’s efforts, I believe that SeABank will fulfil the set targets to become modern multi-function retail bank in Vietnam.
Reported by Phan Duc
Vietnamese
