An executive interview with representatives of KBank HCMC revealed that the resilient growth of Vietnam’s economy will make the country an economic powerhouse in Southeast Asia.
mr. Pattarapong Kanhasuwan – Executive Vice President- KBank: “The world is facing inflation at times, but we see long-term potential in the Vietnamese market.”
at 11e In July 2022, Deputy Prime Minister Le Minh Khai signed the government’s Decree 86/NQ-CP on the safe development of the capital market. And KBank’s perspective?
We greatly appreciate the efforts of the Vietnamese government and welcome the signed decision to make the capital market safer for all stakeholders. As a bank, we always focus on the safety of the capital market and proactively manage the risks. We also believe that it should be a collaboration of the entire banking system and the government to keep the capital market safer.
How does ‘tightening’ the credit space for fear of inflation affect KBank as a newcomer to the market?
We think that all economies in the world have to deal with inflation at some point. Normally the economy is up and down, but we see long-term potential in the Vietnamese market.
Vietnam is the only ASEAN (Association of Southeast Asian Nations) country to experience positive economic growth in 2020 despite the COVID-19 pandemic. The economy has remained resilient, growing 2.9 percent in 2020 — one of the highest growth rates in the world — and is expected to grow at 7 percent by 2022, according to the Ministry of Planning and Investment.
agree with Mr Pattarapong, mr. Chatuporn Boozaya-angool – General Manager of KBank HCMX Branch Says Vietnam’s significant contribution to the region’s economic growth and ability to pursue its long-standing ambitions. Vietnam has strong potential for positive GDP (Gross Domestic Product) growth and its huge tech-savvy working age group, comprising 60 percent of the total population of 100 million, to become an economic powerhouse in Southeast Asia. to be. The total newly registered capital, adjusted and contributed capital to buy shares, contributed capital from foreign investors as of early 2022 reached USD 14.03 billion, a staggering 91.1% over the same period in 2021. The country plays a crucial role in our development strategy in Southeast Asia.
Why HCMC for your first branch in Vietnam?
In 2015 we had 2 representations in Hanoi and HCMC. In the Hanoi office, we understand more regulators and the headquarters of many of our corporate clients, while in HCM City, the team focused on the market, and then we get a better understanding of what we can do when we open the branch. In 2022, with years of experience, Kasikorn believes we understand the market enough to provide customers with what we have.
The emergence of COVID-19 around the world has fostered the rapid development of the digital economy, which is the driving force behind digital transformation: trade is improved, international standards are set for consumers, businesses to participate and consumers have more options. Digital platforms have helped to connect supply and demand, enabling the distribution and circulation of goods in the very special context of the pandemic. Consumer behavior formed in the past two years will shape new consumption habits and new business models in the future, allowing the digital platform model to develop more after the pandemic.
We believe that digital banking and technology-based services will help engage and onboard more individuals and businesses for more sustainable financial services. Vietnam’s digital economy is growing rapidly, we expect similar developments in the financial sector.
With that situation, KBank wants to penetrate the Vietnamese market using an asset-light strategy without focusing on having many branches. Instead, we plan to make KPLUS the primary digital channel to serve customers. The bank will use KPLUS as an easy-to-use digital banking platform to serve customers in Vietnam that meets customer needs anywhere, anytime for all groups of customers. We also started offering KBank Biz Loan with an end-to-end digital process where customers can apply for a loan online and have money debited from their account without having to come to the branch.