Private credit might be less attractive than it was last year as investors rush into the market, but there are sweet spots to be found.
ING will help develop and promote investment banking in the country, having previously provided technical assistance to Vietcombank.
"This cooperation comes as Vietnam is seeing burgeoning foreign direct investment and as the country takes large steps towards its acceptance into World Trade Organisation membership," says Nguyen Thi Bich Lien, chief executive officer for VCBS. "Although state-owned banks currently control about 70% of the domestic capital market, we recognise that we need to leverage international best practice to meet our clients' increasing financing requirements, which we can do through our partnership with ING."
In addition to this deal, many analysts expect Vietcombank to launch an IPO early next year. Hanoi-based Vietcombank's assets stood at $8.3 billion at the end of 2005 -- and it is considered by locals as one of the better banks.
"We're very excited about the opportunities in Vietnam," says Grenville Thynne, head of corporate finance for ING Wholesale Banking in Asia. "Vietcombank and VCBSÆs understanding of the local market and relationships with Vietnamese corporates, and INGÆs global capabilities in corporate finance will help form the basis for a strong platform for collaboration."
ING originally started banking operations in Vietnam in 1992. With the mandate for Vietcombank in 2003, INGÆs activities focused on providing technical advice in areas including treasury and asset-liability management, risk management, internal audit, management information systems and IT functions, strategy and organisation.
VCBS was originally established in June 2002 and its primary activities include brokerage; investment portfolio management; underwriting and securities investment advisory. In 2003, its licence was expanded to include custodial services.
Regulators keep their eyes open on tightening insurance industry by introducing more detailed risk management requirements, which could bring pressure on smaller players.
China and India are more obvious choices for AustralianSuper to consider in Asia Pacific, but the super fund currently lacks the expertise and prefers to stick to the US and Europe.
CDPQ's Ivanhoe Cambridge hires ex-GIC real estate expert; NZ Super adds board member; Future Fund appoints chief people officer; BlackRock real estate CIO joins Singapore's Capitaland; AMP Capital hires MD for energy; Northern Trust AM names new CIO; T Rowe Price hires AU and NZ institutional head; Nuveen hires Southeast Asia institutional head; Citi names sustainability head in Singapore; and more
Investors are increasingly turning to private companies and private debt in their hunt for ESG alpha, but the age-old problem of transparency and due diligence remains