The destination of many securities companies

Asset management is a new field, but it is also a "piece of cake" that many parties are looking towards in the future.

Many financial giants in Vietnam are developing their own asset management services. Photo: Duc Thanh

A market full of potential

At the end of March 2024, Edmond de Rothschild revealed its investment in establishing a fund management company in Vietnam through a joint venture with BIDV Securities Joint Stock Company (BSC). A few months earlier, this organization also established a strategic partnership to provide Private Banking services to BIDV's high-end customers. The appearance of Europe's leading financial institution in asset management for long-standing families actually reflects the development potential of this market in Vietnam.

McKinsey's report titled "The Future of Asia - The New Face of Vietnamese Consumers" estimates that there will be about 37 million middle-class consumers by 2030. According to Knight Frank's latest forecast, by 2028, the growth rate of the number of super-rich people in Vietnam is expected to be higher than that of South Korea, Singapore and Hong Kong.

Along with the above increase, the growth rate of personal investment assets in the Vietnamese market is leading in Asia and growing at an average annual rate of 15%. According to Mr. Nguyen Minh Tuan, CEO of AFA Capital, founder of TOPI Personal Finance Investment and Management Platform, this not only reflects the tradition of accumulation, but also shows that the market for personal financial investment assets of the people is following a strong growth trend.

Asset management or more broadly, wealth management is no longer a new concept in Vietnam. Products providing wealth management services usually include 3 components, including building long-term financial plans, managing business portfolios and managing investment portfolios.

The new and quite unfamiliar element in asset management lies in the first component, because Vietnamese people often invest for 3-6 months to 1 year, but are still not familiar with building long-term plans for retirement, preparing for future goals... Asset management is a comprehensive approach that provides solutions to meet the life needs of customers, corresponding to each different stage of life.

The destination of many securities companies

Before joining hands with Edmond de Rothschild to prepare to establish a fund management company, BSC leaders revealed at the 2023 Annual General Meeting of Shareholders about the possibility of finding new business opportunities, including asset management on the basis of cooperation with strategic shareholder Hana Securities.

According to Mr. Darren Buckley, Director of Techcombank Retail Banking, Vietnam's asset management market is in a strong growth area with the strongest growth rate of 31.6%/year expected in the period 2021-2030.

The market will therefore be large enough for financial institutions to be able to provide services to meet this need, including securities firms.

Previously, in 2019, BSC launched the i-Fortune portfolio management service, initially entering the field of personal asset management. The recent investment in the portfolio management company will expand investment products, thereby aiming at effective and optimal investment solutions for customers.

At the 2024 Annual General Meeting of Shareholders held in mid-May, one of the ambitions that the CEO of SHS Securities Joint Stock Company mentioned was to be able to manage more of the client’s assets, not just the securities asset group. The reason why the SHS Board of Directors is aiming for this direction is because there is already a “different and diverse existing ecosystem”.

Taking on the position of Chairman of the Board of Directors of SHS, concurrently Chairman of the Board of Directors of Saigon - Hanoi Insurance and Vice Chairman of SHB, Mr. Do Quang Vinh believes that SHS has not yet taken advantage of its existing strengths as affiliated member companies in the related ecosystem including banks, insurance, and investment funds. The orientation to become a central unit in the leading financial investment group in Vietnam with a specific plan to be presented in the next 1-2 years will be an advantage for SHS if it is determined to participate in the asset management sector.

Techcom Securities Joint Stock Company (TCBS) is a special case. Instead of competing in the stock brokerage market, the Company has quickly carved out a niche by targeting investment products and full asset management for middle-class customers. Since 10 years ago, TCBS has focused on distributing asset management products including bonds, bond funds, and domestic stock funds. The asset management product platform has partly supported the breakthrough of the stock brokerage segment since the second quarter of 2023 and is still rising to higher positions in the top market share.

According to TCBS's Board of Directors, TCInvest is oriented to become a super application, capable of providing "all-in-one" for all investment and asset management needs of a customer. Financial consulting activities are supported through the online tool TCWealth launched in 2020 through the use of TCBS's diverse product portfolio to provide the best and most suitable investment solutions, based on goals and financial capabilities.

Source: https://baodautu.vn/quan-ly-gia-san-dich-den-cua-nhieu-cong-ty-chung-khoan-d215497.html