Maybank Kim Eng To Increase Capital In Vietnam In 2 Years

From Nurul Hanis Izmir HO CHI MINH CITY, May 26 (Bernama) -- Maybank Kim Eng, the investment banking securities arm of Maybank Group, plans to increase its capital in Vietnam to US$50 million (US$1=RM3.61) in the next two years from US$40 million in 2014, says Chief Executive Officer John Chong. He said the extra US$10 million is to expand its business in that country which it believes has great potential for growth. Maybank Kim Eng is upbeat about Vietnam becoming the next "global factory", presenting immense opportunities to investors. "We are very positive on the Vietnamese economy which we are expecting to grow at over six per cent. And we think the development of the ASEAN Economic Community (AEC) as a single marketplace will further solidify Vietnam’s position as the region’s manufacturing hub," he told reporters at Maybank Kim Eng’s Invest ASEAN Vietnam 2015 conference. Themed 'Vietnam: The Next Global Factory', the one-day investor conference aims to focus on opportunities in ASEAN, help market leaders acquire information to navigate the region’s challenges, and devise effective business strategies. Chong said the investment bank aims to grow its franchise in the country while expanding its research team to develop both its retail and institutional equities businesses. He said with Maybank Kim Eng's comprehensive and deep footprint across ASEAN, it will be able to offer Vietnam corporates the bridges to ASEAN opportunities, through easy access across borders and seamless end-to-end relationships. "We can also connect foreign investors to local opportunities in Vietnam, given our strong relationships with institutional investors and deep understanding of the local business landscape," he said. He said a key driver of the economy has been foreign direct investment (FDI), adding currently Vietnam's FDI inflow is over five per cent of its Gross Domestic Product. "With FDI helping stronger exports, particularly in the higher value added technology sector, what was a current account deficit is now a surplus. "Maybank Kim Eng expects this surplus in current account to continue," he said. Meanwhile, State Securities Commission Vice Chairman Nguyen Thanh Long said the Vietnamese government’s ambition is for the country to become an attractive destination not only for foreign direct investment but also for foreign indirect investment. "We will continue to pursue our policies on securities market development to ensure its stability and sustainability. "We expect this market to help raise the capital necessary for growth recovery, and effectively locate capital to economic sectors that have competitive advantages in the context of global economic integration," he said. In the last five years, Vietnam's exports from electronics have jumped five times, overtaking textiles as the largest export, while the manufacturing sector has grown to about US$170 billion as at end-2014, exporting to over 80 major countries. The Invest ASEAN conference series kicked off with the Cap 10: ASEAN CEO Summit in Kuala Lumpur in February, followed by Singapore in March and Monday in Vietnam. There were representatives from 10 countries including 15 corporates (12 from Vietnam, and one each from Malaysia, Singapore and Thailand) with total market capitalisation of close to US$22.2 billion as well as about 100 investors with funds totalling US$5 trillion in assets under management. -- BERNAMA