Eximbank's controversial proposal to move headquarters

Eximbank wants to move its head office from its current address (8th floor, Vincom Center building, 72 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City) to Hoan Kiem District, Hanoi. This area is considered the "financial center" of the country, with the presence of the State Bank of Vietnam headquarters and many commercial banks such as Vietcombank, BIDV , SeABank, Techcombank, etc.

Of course, this crucial and landmark decision requires the consensus of 51% of the voting rights, as Eximbank has affirmed. It also needs the approval of the regulatory authority, the State Bank of Vietnam.

From a banking business perspective, Eximbank has a 35-year history of operation, with a stable and long-standing customer base in the South, which has helped the bank grow and accumulate profits.

The fact that banks have not yet had a significant impact on the Northern market stems from several reasons. The main reason cited is the credit limit, as banks have primarily served customers in the Southern provinces and cities.

Recently, the State Bank of Vietnam has changed its management approach on this issue. From the beginning of the year, the State Bank of Vietnam assigned all credit growth targets to credit institutions at approximately 15% in Directive No. 01/CT-NHNN dated January 15th.

Eximbank proposes relocating its head office. Photo: Eximbank

According to the report, Eximbank's credit growth in the first nine months of 2024 was 13.55%, ranking 12th among the 30 commercial banks that have published their Q3 financial reports.

On August 28th, the regulatory agency issued another notice stating that credit institutions with a credit growth rate in 2024 reaching 80% or more of the target announced by the State Bank of Vietnam at the beginning of the year will be allowed to proactively adjust and increase outstanding loans without needing to request permission from the regulatory agency…

In reality, the relocation of the head office is merely a legal formality, as it's driven by a strategy to "conquer" a market with significant potential.

According to Eximbank's 2023 annual report, as of December 31, 2023, the bank had 215 transaction points with 48 branches in 26 provinces and cities nationwide. Of these, only 11 branches were in the North, including 6 branches in Hanoi and 5 branches in the provinces of Quang Ninh, Hai Phong, Nghe An, Bac Giang , and Bac Ninh.

This highlights the imbalance in distribution between regions, while northern provinces, especially Hanoi and neighboring provinces, are strongly attracting FDI enterprises, thereby creating enormous opportunities for Eximbank to access large customers, which is the bank's strength in providing banking services to the import and export sector.

In line with the general development trend, banks have been investing heavily in technology, building many products and services based on new thinking about customers and the market.

Investing in technology is an inevitable trend in the context of the banking industry's increasingly rapid digital transformation.

Technology allows banks to reach a wider customer base without having to build expensive physical infrastructure as they did in the past.

Therefore, Eximbank's expansion to the North at this time is considered ripe for creating a breakthrough turning point. This transformation will also demonstrate strategic vision, market understanding, and insight into the shifting trends of FDI capital flows. This will create alignment with Eximbank's ideals and development direction, building a breakthrough strategy and plan for the bank, aiming for healthy, safe, and efficient development.

If the proposed relocation is approved, it will be a significant and landmark event for Eximbank after 35 years of operation, demonstrating the bank's determination and strong actions in its transformation towards new strategic goals. It will also show that the bank's Board of Directors is determined to overcome difficulties and make positive changes amidst the volatile global and domestic economic landscape.

Source: https://vietnamnet.vn/de-xuat-chuyen-hoi-so-gay-tranh-cai-cua-eximbank-2345335.html