Southeast Asia has emerged as a highly attractive destination for international investors, with promising prospects for the future. This is highlighted in the “Navigating High Winds: Southeast Asia Outlook 2024-34” report, which forecasts faster regional growth in the coming decade compared to the last, outpacing even China in terms of GDP and FDI.
The renowned American business magazine, Fortune, also recognizes the growing significance of Southeast Asia in the global economic landscape. Post the Covid-19 pandemic, many multinational corporations from the Global 500 have strategically relocated parts of their supply chains to this vibrant region.
Fortune attributes this appeal to Southeast Asia’s young and expanding population of 680 million, coupled with low inflation and stable exchange rates, creating an increasingly desirable market for businesses.
To celebrate and acknowledge the dynamic nature of this region, Fortune has introduced the Fortune Southeast Asia 500 list for the first time. This list showcases the 500 largest companies that represent the economic powerhouse that is Southeast Asia, contributing a substantial $4 trillion to the global GDP and showcasing impressive growth trajectories.
Mr. Khoon-Fong Ang, Fortune’s Chief of Operations, Asia, emphasizes the purpose of this new list, stating, “With this new list, we turn the spotlight on the impressive growth story of Southeast Asia and the largest companies driving this diverse region and its economies.”
A notable aspect of the Fortune SEA 500 is the significant contribution of Vietnamese banks to the region’s overall growth. Out of the top 200 companies, 34 are banks, with Vietnam accounting for 12 of them. These banks, including the Saigon-Hanoi Commercial Joint Stock Bank (SHB), are ambitiously expanding their capital, assets, and international networks to become leading financial institutions.
SHB, in particular, has successfully established its brand and reputation beyond Vietnam, extending its reach to Laos, Cambodia, and Myanmar. As of June 30, 2024, SHB ranked among the top 5 largest private joint-stock banks in Vietnam, boasting total assets of VND659.76 trillion ($26.49 billion) and charter capital of VND36.63 trillion ($1.47 billion). The bank reported impressive financial results for the first half of 2024, with pre-tax profits exceeding VND6.86 trillion ($275.5 million), reflecting a 13% year-on-year increase and meeting 61% of its annual target.
SHB is also committed to operational efficiency, consistently maintaining a low Cost-Income Ratio (CIR) and exceeding the State Bank of Vietnam’s regulations for capital safety and risk management. The bank effectively manages liquidity risk in alignment with Basel II and Basel III standards.
Additionally, SHB is at the forefront of digital transformation in the banking sector, leveraging the latest technologies to optimize processes, enhance operational efficiency, and improve the customer experience. This commitment to innovation has been recognized by The Digital Banker, who awarded SHB two accolades at the Digital CX Awards 2024. SHB was acknowledged for its “Outstanding Digital Platform Experience – Cash Management Platform” and “Best Use of Technology for Digital Experience,” with both digital solutions developed in-house.
SHB’s strong financial foundation, coupled with its advanced technology platforms and diverse product/service ecosystem, has earned the trust of leading global financial institutions such as the World Bank, the International Finance Corporation, and the Asian Development Bank. These partnerships provide SHB with valuable resources to support businesses, especially small and medium-sized enterprises (SMEs) and women-owned ventures.
The bank’s dedication to supporting SMEs has been recognized by several international organizations, including Alpha Southeast Asia magazine, FinanceAsia magazine, Euromoney magazine, and ABF magazine, which have bestowed upon SHB various awards in this regard.
Furthermore, SHB is highly regarded for its commitment to ESG (environmental, social, and governance) standards in its business practices. This commitment was acknowledged by FinanceAsia magazine, who named SHB as “Vietnam’s Most Positive ESG Impact Bank” at the FinanceAsia Awards 2024, marking the second consecutive year SHB has received this prestigious award.
Ranking 137th in the Fortune SEA 500 and garnering recognition from esteemed organizations, SHB has solidified its position and reputation in the financial market, contributing significantly to the region’s growth. Moving forward, SHB is focused on implementing a robust transformation strategy to become the top bank in efficiency, the most preferred digital bank, and the best retail bank, while also providing capital and financial services to strategic private and state-owned enterprises.
Dragon Capital Chairman: “Long-term vision is needed, accepting necessary adjustments for a safer, more efficient, and higher quality market”
According to Mr. Dominic Scriven, Chairman of Dragon Capital, the role of the finance industry in the stock market will be significant in 2023 and possibly in 2024. The roles of other industries, such as real estate or consumer goods, will depend on their respective challenges.
January: Neighbor secures $187 million in foreign investment, Vietnam surpasses 10-fold
In the first month of 2024, the neighboring country approved 32 investment projects. Meanwhile, Vietnam granted 190 new projects during the same period.
Petrovietnam and PVcomBank collaborate with Hanoi City to organize an artistic light show featuring 2,024 drones
Welcoming the Year of the Rat 2024, Petrovietnam, PVcomBank, together with Hanoi City People’s Committee and Tay Ho District People’s Committee, are organizing a dazzling light show called “Hanoi Art Light Festival – Thang Long Shining” on the eve of Lunar New Year. This will be the largest drone performance ever seen in Southeast Asia up until now, with a total of 2,024 unmanned aerial vehicles (drones) illuminating the night sky.
