Both foreign and domestic banks are racing to develop retail sales strategies in Viet Nam.

With more than 93 million people and sharply increasing consumption, Viet Nam is considered a hot destination for the retail segment of banks, which is why banks have strategically planned to boost the retail segment in the country.

Among foreign banks, HSBC and Standard Chartered have the strongest expansion plans in Viet Nam. Standard Chartered Bank officials told Vietnam News Agency that the bank plans to recruit more in the retail sales cluster. Meanwhile, with an in-depth understanding of the domestic market, HSBC leads foreign banks in retail sales revenue.

Shinhan Bank, from the Republic of Korea (RoK), also wants a slice of Viet Nam’s retail sector. Recently, the bank purchased the retail business of the Australia and New Zealand Banking Group (ANZ). Last year, the bank outstripped domestic banks by earning more VND1 trillion (US$43.9 million) from retail services.

Woorie, another bank from the RoK, is also making a beeline to branch out its retail products in the country this year.

Among domestic banks, retail is also being considered as a core strategy to increase revenue in the near future as room to develop the wholesale segment shrinks.

Even large banks that previously specialised in wholesale, such as BIDV, VietinBank and Vietcombank, are shifting steadily to retail.

Apart from VIB, which on Monday announced that the State Bank of Viet Nam approved its acquisition of the Commonwealth Bank of Australia’s HCM City branch, many domestic banks are also looking to acquire other banks with strength in retail.

Clearly, retail is currently the target of both domestic and foreign banks in the market; however, this will lead to significant competition. — VNS