Vietcombank Company Profile

Background

Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), established on April 1, 1963, is a leading financial institution headquartered in Hanoi, Vietnam. Originally founded to facilitate foreign trade, Vietcombank has evolved into a comprehensive commercial bank offering a wide array of financial services. The bank's mission is to be the number one bank in Vietnam, rank among the top 100 largest banks in Asia, and be one of the top 300 largest financial institutions worldwide. Vietcombank aims to contribute significantly to Vietnam's sustainable development.

Key Strategic Focus

Vietcombank's strategic objectives towards 2025 include:

Profitability: Leading in terms of profitability with a diverse income structure, increasing the proportion of non-credit income.

Digital Transformation: Pioneering digital transformation within the banking industry.

Risk Management: Becoming the most effective bank in risk management.

Customer Experience: Leading in customer experience.

Human Resources: Leading in the quality of human resources.

Environmental, Social, and Corporate Governance (ESG): Leading in ESG practices.

International Presence: Striving for stock issuance and international listing on stock exchanges.

Financials and Funding

As of 2022, Vietcombank's financial performance is as follows:

Revenue: $1.69 billion

Net Income: $1.15 billion

Total Assets: $69.13 billion

Market Capitalization: $18.13 billion

In December 2018, Vietcombank increased its charter capital through the sale of shares to foreign investors, including GIC and Mizuho, raising VND 6,168 billion. This capital increase enhanced the bank's financial capacity and contributed VND 3,783 billion to the State budget.

Technological Platform and Innovation

Vietcombank has made significant strides in technological innovation:

Core Banking System: Successfully implemented a modern core banking system in early 2020, enhancing operational efficiency and service delivery.

Digital Banking Services: Offers a range of digital banking services, including VCB Digibank, VCB-iB@nking, VCB CashUp, and VCB DigiBiz, providing customers with convenient, secure, and efficient banking experiences.

SWIFT GPI Certification: In June 2018, Vietcombank became the first bank in Vietnam certified by SWIFT to meet Global Payments Innovation (GPI) standards, enhancing the speed and transparency of international payments.

Leadership Team

Pham Quang Dung: Chairman and Chief Executive Officer. Under his leadership, Vietcombank has focused on digital transformation and expanding its international presence.

Competitor Profile

Market Insights and Dynamics

Vietnam's banking sector is characterized by rapid growth and increasing competition, driven by economic development and digital transformation. The market is witnessing a shift towards digital banking services, with banks investing heavily in technology to enhance customer experience and operational efficiency.

Competitor Analysis

Vietcombank faces competition from several key players in the Vietnamese banking industry:

VietinBank: A major state-owned bank offering a wide range of financial services.

BIDV (Bank for Investment and Development of Vietnam): One of the largest banks in Vietnam, providing comprehensive banking services.

Techcombank: A leading joint-stock bank known for its digital banking initiatives and customer-centric approach.

Agribank: Focuses on agricultural and rural development banking services.

ACB (Asia Commercial Bank): A prominent private bank offering diverse financial products and services.

These competitors are investing in digital transformation and expanding their service offerings to capture a larger market share.

Strategic Collaborations and Partnerships

Mizuho Financial Group: In 2011, Vietcombank signed a strategic shareholder agreement with Mizuho Corporate Bank, enhancing its international collaboration and expertise.

FWD Group: In November 2019, Vietcombank entered into a 15-year exclusive bancassurance partnership with FWD Group, aiming to build a leading bancassurance franchise in the region.

Operational Insights

Vietcombank's extensive network includes over 600 branches and transaction offices across Vietnam, as well as subsidiaries and representative offices in Laos, Singapore, and the United States. This expansive presence enables the bank to effectively serve a diverse customer base and compete with both domestic and international banks operating in Vietnam.

Strategic Opportunities and Future Directions

Vietcombank is poised to leverage its strengths in digital transformation, risk management, and customer service to achieve its strategic objectives by 2025. The bank aims to maintain its leadership position in Vietnam, expand its regional presence, and contribute to the country's sustainable economic development.