HSBC Vietnam CEO: Strategic Alignment and Solid Foundation Will Guide Business Through Challenges

Despite facing numerous challenges, HSBC Vietnam has emerged strong and achieved impressive results in 2023 thanks to its sound strategy and the strength of its people. With a broad vision, HSBC will continue to be a bridge, supporting Vietnam in attracting foreign investments and developing businesses in the future.

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2023 has passed with many challenges for the Vietnamese and global economies, but Vietnam remains strong and continues to move forward. In difficult times, there are opportunities to build and strengthen the foundation and strategy to seize the opportunities that Vietnam consistently brings to its steadfast partners and investors. On the occasion of welcoming a hopeful and opportunistic year 2024, we had a New Year conversation with Mr. Tim Evans – CEO of HSBC Vietnam, one of the banks that had impressive activities in the past year.

In the context of the difficult economy, the mid-year financial report for 2023 showed a bright color in the operation results of HSBC. How do you evaluate HSBC’s business activities in the past year?

HSBC Vietnam’s pre-tax profits for the first half of 2023 reached 3.3 trillion VND, a 140% increase compared to the same period last year. Our full-year business results for 2023 will be announced in March 2024, so I cannot say anything more at the moment. However, the results for the first half of the year are enough to make me extremely proud of my team. One thing to note is that we have a good and right direction strategy, but the strategy itself is not enough, you need a team that can implement that strategy. That’s what makes the difference.

I am fortunate to have such a team. They can not only implement the strategy but also do so in a complex and rapidly changing market and often face challenges. This once again affirms that with the Vietnamese, nothing is impossible.

There is no need to mention the challenges that we all have to face in 2023, political instability, inflation, high-interest rates, hawkish Fed policies, declining global trade, etc. For Vietnam, a country dependent on exports, the weakness in our main export markets has a serious impact on the entire economy. The shortage of orders affects employment and household income. After a sluggish trade activity at the beginning of the year, December 2023 marked the fourth consecutive month Vietnam witnessed export growth compared to the same period, thanks to electronic and related machinery exports. Entering 2024, Vietnam’s exports increased by 42% compared to the same period, demonstrated by the stable trade turnover. However, the HSBC Global Research Department still believes caution is needed in this early stage of trade recovery.

This means that we need to ensure that our business activities can adapt to the external environment and have flexible strategies to seize opportunities while mitigating risks. This becomes easier when you have a hardworking, self-confident, perseverance, and dedicated team. Our achievements are evidence of the collective efforts, tireless commitment, and excellent teamwork spirit.

You mentioned a successful strategy that has brought impressive results for the bank, can you share more about this?

HSBC’s strategy in Vietnam is designed to align with the 5 main factors that drive Vietnam’s economic growth.

First, FDI is the main driver of Vietnam’s growth: Vietnam is a successful FDI story, one of the largest FDI recipients in ASEAN thanks to strong fundamentals, stable politics and currency,… With a broad network covering more than 60 markets and being one of the world’s leading international banks, HSBC has the full capability to facilitate favorable conditions for investment inflows into Vietnam. We will continue our mission to connect Vietnam with the world, attract foreign investment and support Vietnamese businesses to expand internationally.

Second, Vietnamese businesses are growing stronger: along with Vietnam’s fast-growing economy, we have witnessed the strong development of businesses here. As they grow stronger, Vietnamese businesses desire more complex banking products, and we, along with our investment banking teams in both Hong Kong and Singapore, have the ability to provide them with the latest structured products and solutions for the market. We also maintain a strategy to support the mid-market segment, as these businesses are growing rapidly and will soon become major players in the future. For these businesses, lending operations and transaction banking products are crucial to their success, thereby contributing to the development of the Vietnamese economy.

Third, the middle-class segment is growing: Vietnam’s middle-class continues to grow rapidly, and Vietnam will become the world’s 10th largest consumer market by 2030, surpassing Germany and the UK. As the affluent population grows, their financial needs will become bigger and more complex. HSBC will continue to serve this growing market through our wealth management and personal finance activities. With a diverse range of products, we meet the needs of customers throughout their lives, from savings, homeownership, enjoying life to asset management and investment.

Fourth, upgrading from a frontier market to an emerging market: HSBC is closely collaborating with the State Securities Commission of Vietnam and other government agencies on the journey to upgrade Vietnam from a frontier market to an emerging market. This new rank will bring significant investment flows and benefits to the country and the market.

Fifth, aiming for carbon neutrality: Vietnam has made a strong commitment at COP26 to achieve carbon neutrality by 2050. This ambition will require significant investment and cooperation between the public and private sectors. As a leading international bank with a history of over 150 years in Vietnam, we have an important role to play in helping Vietnam achieve this ambition.

Hence, is cooperation with businesses always a profit-based relationship?

For HSBC, banking activities are a long-term relationship. For over 150 years, HSBC has been accompanying economies and countries around the world. Our purpose – Opening up a world of opportunities – is the reason we exist. We are here to use our expertise, resources, and networks to create new opportunities for customers. We connect people, bring ideas and resources to foster development and growth, helping to create a better world – for our customers, people, investors, our community, and the planet we all share.

Our customers can be individuals who come to save and invest or they can be companies, governments, and large international organizations in the world. We have witnessed many of them become wealthy, expand their businesses, and ultimately contribute to the development of Vietnam. Alongside them is HSBC, we grow with our customers. This is our reward.

For example, HSBC has been accompanying Thien Long – a famous domestic stationery company that brings childhood memories to many Vietnamese people for 20 years and has supported them in their recent digital transformation journey. Or, PPJ Group has been our partner for 16 years, from a company with 156 billion VND in revenue to the current annual revenue of 10,000 billion VND.

So, as you said, the right strategy is the key to success?

The right strategy is an important factor, but not the only one. In 30 years of working in the banking industry and with HSBC, I realized that the success of a bank is the result of many factors: appropriate strategy, appropriate culture, and especially suitable people.

For a bank like HSBC, having an appropriate risk management culture is very important. A strong risk management culture is crucial in helping bank employees detect instabilities, make sound decisions, and be successful in today’s complex and unpredictable business and economic environment.

At HSBC Vietnam, we always encourage each other to build an environment where every member is encouraged to report potential risks, through which we can effectively limit risks before they escalate into crises. Building this culture helps us protect our reputation, maintain financial stability, and develop sustainable long-term growth.

Risk management culture is not limited to risk management policies and procedures. This culture must permeate every aspect of business operations and provide guidance for accepting risks responsibly. Only when we all build an effective risk management culture can we promote positive risk management, ethical behavior, compliance with regulations, and the ability to operate sustainably, ensuring that we build a sustainable foundation for our long-term success.

The third factor leading to our success is people. Even in the face of significant global economic weakness, declining trade volume, and reduced consumer confidence, HSBC Vietnam has demonstrated dedication, professionalism, and high resilience, as demonstrated by our performance results so far. I am very fortunate to work in a supportive and nurturing environment and collaborate with a team that has unity, a culture, and a ready-to-face spirit that everyone wants to work with.

In terms of people, what is the most important aspect of building human assets at HSBC?

This is the third year that we have been awarded the “Ideal Workplace” award by Great Place to Work®, given by the employees themselves. What I like about this award is that the results come from our own employees’ votes. This can also be seen as the bank being evaluated through the lens of its own employees.

Keeping employees in an organization isn’t just about salary but also about a healthy environment and a corporate culture that upholds the right things. And in this rapidly developing world, we must embrace new trends, new cultures, new generations, and what they think and value. At HSBC, the principle is simply building an environment where employees can unleash their full potential.

The first is diversity and inclusion. Each organization is a collection of diverse individuals with different worldviews. At HSBC Vietnam, our employees come from more than 10 countries and territories. Different ideas and perspectives help us innovate, manage risks, and develop businesses sustainably. That is why the leadership is committed to creating a working environment where everyone feels valued.

A workplace is the top factor that motivates and retains employees with a company, and this is also an aspect that most employees (60.2%) want to see change and improvement in 2023. We listen to employees’ aspirations and recognize that in the post-Covid world, the hybrid model of remote and office work has become a new standard for them. Noticeably, most of Generation Z (69.8%) also support this model. It allows them to have more choices in terms of how, when, and where they work, helping them balance work and life. In 2023, 65% of HSBC Vietnam employees work in this hybrid model, up from 59% in 2022, reflecting the increasing demand for flexible work.

Another aspect that I want to emphasize is the opportunity for development and career growth, although this may not seem new. According to LinkedIn’s research, opportunities for learning, acquiring new skills, and career development are among the top five factors that employees consider when pursuing a new job. In addition, career advancement is one of the top four reasons employees consider when changing jobs. To create effective learning and development conditions, in addition to courses, other solutions are needed such as learning from daily work, coaching, mentoring,… At HSBC, our employees have access to various platforms that help them improve their skills in many different areas, including content related to economic and social transformation, such as ESG and sustainable skills or future skills to prepare for future jobs. Equipped with such skills, employees can develop and be ready for career opportunities in the future, not only advancing in their current jobs but also in new areas.

How do you evaluate the prospects of the Vietnamese economy in 2024?

After a challenging 2023, HSBC believes that the prospects for the Vietnamese economy in 2024 will be brighter. Our Global Research Department expects Vietnam’s GDP growth this year to be 6%, and it may lay a foundation for Vietnam to return to pre-Covid growth in the near future thanks to a strong recovery momentum.

Especially for FDI, I believe that Vietnam is still one of the most attractive investment destinations in the region. Vietnam has free trade agreements with various trading blocs such as CPTPP, RCEP…, making Vietnam an important choice in the China+1 policy. Along with that is the new wave of tech giants investing in Vietnam, especially after the upgrading of Vietnam-US relations, which will attract attention and encourage more foreign investors to invest in Vietnam. With solid fundamentals such as a young and dynamic workforce, stable politics, strategic geographical location, and government support for growth, Vietnam will continue to be an investment destination in the coming years.

What about HSBC Vietnam?

We have the right strategy, a strong brand, a great team, and we have a positive corporate culture that encourages our employees to voice their opinions, collaborate, and strive for a better tomorrow.

The world economy will always have ups and downs, and the team that can rise in these circumstances must be the quickest to adapt. We believe that 2024 will be a better year, inflation pressures in the world will decrease, trade will gradually recover, and tourism will be the main driving force for the economy. In that context, we will continue to invest in business areas where we have a competitive advantage, serve customers, and inspire our employees.

Thank you for the conversation and I wish HSBC more success in 2024!

Huong Xuan