Maybank Kim Eng Aims To Grow Market Share And Distribution Network In Vietnam
- To strengthen both Regional Retail Equities & Investment Banking Franchise
Ho Chi Minh, 27 September 2012 - Maybank Kim Eng, the stockbroking and investment banking arm Maybank, today said that it has set its sights on becoming the top brokerage in Vietnam by 2015.
Maybank Kim Eng, which operates in 11 countries worldwide, views Vietnam as an important market, especially with the increased activity on the Ho Chi Minh Stock Exchange as well as anticipated developments in its capital market.
“At Maybank, we are focused on capturing growth opportunities in emerging markets and strengthening our market presence. Looking at Vietnam, there have been positive signs, such as more controlled inflation rates, slowing from 25% to 5% within the past twelve months, rebounding foreign reserves, near-elimination of the trade deficit and stabilization of the Dong,” says Tengku Dato’ Zafrul, Group Chief Executive, Maybank Kim Eng.
Kim Eng Vietnam Securities Joint Stock Company (KEVS) is now known as Maybank Kim Eng Securities Joint Stock Company. It will embrace the new corporate colour, yellow, and the tiger symbol in alignment with Maybank’s corporate identity. The company also announced changes to its Board of Directors. Mr. Shahrul Nazri Bin Abdul Rahim has replaced Mr. Lam Hoang Loc as Chairman and Mr. Tan Pei-San has joined as a Board Member. Mr. Ronald Anthony Ooi Thean Yat and Mr. Nguyen Thi Thanh Hien will be stepping down from the Board.
The organisation launched its Vietnam operations in 2008 and has since seen increasing transaction volumes. Today, it is Vietnam's fourth-ranked brokerage. It is one of few securities companies in Vietnam that have turned profitable within the first year of its operation. It currently boasts a suite of investment products and services: equities trading, custody services, investment consultancy and corporate finance, supported by a talented research team.
In a bid to woo retail investors and meet market needs, Maybank Kim Eng Vietnam is targeting revenue growth driven by increasing its current 330-strong sales force and expanding its distribution network by opening at least one new branch every year, to 14 by 2015 from 10 branches currently.
“These strategies are in tandem with Vietnam’s tremendous market potential and its expected trading volumes,” said Tengku Dato’ Zafrul, Group Chief Executive of Maybank Kim Eng. “Currently in Vietnam, there are 58 million people aged 35 and below. Of this, there are only 1.2 million trading accounts with 240,000 accounts that are active. Attracting and educating more retail investors help to increase liquidity in the stock market, which in turn draws more investors, perpetuating a flourishing trading cycle.”
Maybank Kim Eng is the first broker in Vietnam to launch a mobile trading application for iPhone and iPad. Called KE Mobile, the application offers investors the option to trade- on-the-move securely, with access to real-time information.
Mr Tam Le Minh, Chief Executive Officer of Maybank Kim Eng Vietnam says: “KE Mobile is a tool for our investors to make faster and more informed trade decisions. Mobile trading has gained popularity in recent times as more traders seek the convenience and flexibility of investing on the go. With KE Mobile as an additional channel for local investors to trade through, we are confident that we will see an increase in our online trades.”
Mr. Doan Hung, Vice Chairman of the State Securities Commission (SSC) is optimistic of Maybank Kim Eng’s initiatives. “We are supportive of Maybank Kim Eng’s drive into Vietnam. We hope to partner with them to continually enhance investor knowledge and confidence, open doors to greater trading flows into ASEAN and realise Vietnam’s nascent potential.”
Maybank Kim Eng Vietnam also plans to gain a foothold in the investment banking arena. Vietnam’s 12-month M&A activity from August 2011 to July 2012 saw 22 deals worth USD2.5 billion – more M&A capital than any calendar year over the past decade. With more government initiatives which are expected to improve licensing, rules and regulations, many analysts believe that the capital market’s current trajectory is set for further growth.
Mr. Tam Le Minh said, “We are benefitting from the synergy with Maybank as it has resulted in improved investment banking and underwriting capabilities and the ability to offer cash management support. We are now much more equipped to compete in the capital markets and we have set high targets to grow our investment banking revenue.”
Tengku Dato’ Zafrul explained, “We are here to make a long-term commitment to Vietnam. We are consolidating our capabilities across the region to support the development of innovative products and services for our different markets. As I speak, we are introducing products and services already successful in certain markets into our other markets. These efforts underscore our commitment to deliver the full value of our regional franchise to each and every one of our customers globally – a cornerstone of our efforts in Vietnam.”