The destination for many securities companies.

Asset management is a relatively new field, but it's also a promising area that many are eyeing for the future.

Many major players in Vietnam's financial industry are developing their own wealth management services. Photo: Duc Thanh

A market segment with great potential.

In late 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 prior, the organization had also established a strategic partnership to provide private banking services to BIDV's high-end client base. The arrival of this leading European financial institution specializing in asset management for long-established families reflects the potential for growth in this market in Vietnam.

A McKinsey report titled "The Future of Asia - The New Face of Vietnamese Consumers" estimates that there will be approximately 37 million middle-class consumers by 2030. Meanwhile, according to the latest forecast from Knight Frank, by 2028, the growth rate of the number of ultra-wealthy individuals in Vietnam is expected to surpass that of South Korea, Singapore, and Hong Kong.

Along with this increase, the growth rate of personal investment assets in the Vietnamese market is leading Asia, with an average annual growth of 15%. According to Mr. Nguyen Minh Tuan, CEO of AFA Capital and founder of the TOPI personal financial investment and management platform, this not only reflects the tradition of accumulation but also shows that the personal financial investment asset market is following a strong growth trend.

Asset management, or more broadly, wealth management, is no longer a new concept in Vietnam. Products offering wealth management services typically consist of three components: long-term financial planning, business portfolio management, and investment portfolio management.

The first component of wealth management is still quite unfamiliar, as Vietnamese people typically invest for 3-6 months to a year, and are not yet accustomed to building long-term plans for retirement or preparing for future goals. Wealth management is a holistic approach that provides solutions to meet the needs of clients at different stages of their lives.

The destination for many securities companies.

Prior to partnering with Edmond de Rothschild to establish a fund management company, BSC's leadership revealed at the 2023 Annual General Meeting of Shareholders the possibility of exploring new business opportunities, including asset management based on cooperation with strategic shareholder Hana Securities.

According to Darren Buckley, Head of Retail Banking at Techcombank , Vietnam's wealth management market is in a strong growth region, with the highest growth rate of 31.6% per year projected for the period 2021-2030.

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

Previously, in 2019, BSC launched i-Fortune, a portfolio management service, initially venturing into the personal asset management sector. The recent investment in a portfolio management company will expand its investment product offerings, thereby aiming to provide effective and optimal investment solutions for clients.

At the 2024 Annual General Meeting of Shareholders, held in mid-May, one of the ambitions mentioned by the CEO of SHS Securities Joint Stock Company was to be able to manage more of its clients' assets, not just securities. This direction is being pursued by the SHS leadership team because they already have a "different and diverse existing ecosystem."

As 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 fully utilized its existing strengths in its affiliated member companies within the related ecosystem of banks, insurance companies, and investment funds. The strategic direction of becoming a central unit within Vietnam's leading financial and investment group, with a specific plan to be presented in the next 1-2 years, will be an advantage for SHS if it is determined to enter the asset management sector.

Techcombank Securities Joint Stock Company (TCBS) is a rather special case. Instead of competing in the stock brokerage market, the company quickly carved out a niche by focusing on comprehensive investment and asset management products for the middle-class clientele. For the past 10 years, TCBS has concentrated on distributing asset management products including bonds, bond funds, and domestic equity funds. This foundation from asset management products has partly supported the breakthrough in its stock brokerage segment since Q2 2023 and continues to climb higher in market share.

According to TCBS's leadership, the TCInvest product is envisioned to become a super app, capable of providing an "all-in-one" solution for all a customer's investment and asset management needs. Financial advisory services are supported through the TCWealth online tool, launched in 2020, utilizing 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