The Malayan Banking Berhad (MayBank), Malaysia’s largest bank and financial group, has said it will increase its investment in Vietnam to $50 million in the next two years. The investment, up by $10 million from 2014, will take place through its Vietnam based subsidiary Maybank Kim Eng.
Addressing the recent Invest ASEAN Vietnam, the bank’s chief executive John Chong commented that Vietnam’s young population, stable political and economic scene, and an increasing consumption will help make it the next global factory.
Maybank Kim Eng, which had been in Vietnam for seven years, has eight branches and over 250 staff in the country. Prior to October 2013, it was a joint venture with the Malaysian investor owning 49 per cent.
The Vietnamese government’s open policy for securities companies allowed it to become the country’s first wholly-owned foreign owned stockbroking house.
The securities firm has increased its chartered capital to VND829.1 billion ($38.56 million) from VND615 billion to fund the expansion and improvement of its services.
This is a third capital hike by the Malaysian company for its Vietnam operations.
The brokerage’s CEO, Nguyen Hoang Thien Truc, said the increase in capital is an important move to achieve its vision of becoming a leading securities firm in Vietnam as well as a regional financial powerhouse.
The company was in the top 10 brokerages by market share in 2014, but the ranking has gone down when compared to previous years.
In 2013, it recorded a loss of VND20 billion, reversing the profitable performance since its local inception.
In addition, Maybank as a group is currently the largest shareholder in the Vietnamese lender, An Binh Bank, with a 20 per cent stake.
Meanwhile, Malaysia’s largest lender has strong footholds in other ASEAN countries, including Philippines, Singapore, Indonesia and Thailand, and also in India, Hong Kong and Saudi Arabia.
It foresees a robust flow of transactions in the region, where economic growth is expected to expand faster than the global economy.
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