When Wealth Management service in Vietnam will start

 

Why wealth management service in Vietnam is needed now?

Wealth management service in Vietnam is essential for individuals and families seeking to effectively manage and grow their financial assets. Here are several reasons why such services are needed:

Tailored Financial Planning: Wealth management services provide personalized financial planning that takes into account an individual’s unique financial goals, risk tolerance, and investment preferences. These services help clients create comprehensive wealth management strategies that align with their long-term objectives, whether it’s wealth preservation, retirement planning, estate planning, or funding education for future generations. Wealth managers have the expertise to navigate complex financial landscapes, ensuring that clients make informed decisions and optimize their financial resources.

                       When Wealth Management service in Vietnam will start?

Diverse Investment Opportunities: Vietnam’s economy offers a range of investment opportunities, including the stock market, real estate, bonds, mutual funds, and more. Wealth managers possess in-depth knowledge of these investment avenues and can help clients identify suitable opportunities based on their risk profiles and financial goals. They conduct thorough research, monitor market trends, and provide insights into potential investment options. By leveraging wealth management services, individuals can access a diverse range of investment opportunities that align with their financial objectives.

Risk Management and Asset Protection: Wealth managers play a crucial role in mitigating risks associated with investments. They provide guidance on portfolio diversification, asset allocation, and risk management strategies to minimize potential losses. Wealth managers also stay updated on regulatory changes, economic trends, and geopolitical factors that may impact investments. Through proactive risk management, they aim to protect and preserve the wealth of their clients, ensuring a secure financial future.

Tax Planning and Optimization: Wealth management service in Vietnam encompasses comprehensive tax planning strategies. Wealth managers have a deep understanding of the tax landscape and can identify tax-efficient solutions to optimize clients’ financial positions. They help clients navigate tax regulations, utilize available tax incentives, and minimize tax liabilities. By implementing effective tax planning strategies, individuals can maximize their after-tax returns and preserve their wealth.

Estate and Legacy Planning: Wealth managers assist clients in structuring their estates and developing comprehensive succession plans. They provide guidance on wealth transfer, philanthropy, and establishing trusts to protect assets for future generations. Wealth managers work closely with clients’ legal advisors to ensure that estate planning documents align with their financial goals and comply with applicable laws and regulations. By addressing estate planning early on, individuals can secure their legacies and ensure the smooth transition of wealth.

When Wealth Management service in Vietnam will start?

The private banking market serving the super-rich is relatively new in Vietnam, although the growth rate of the rich in our country ranks third in the world. Private Banking is a specialized banking service model for customers with large assets, including asset management solutions and all financial and non-financial needs of customers such as investment, inheritance plan, residency procedure, health care, insurance.  This could be considered wealth management service in Vietnam for high net-worth individuals in Vietnam.

With the specificity of serving high net-worth individuals (HNWI) (in some Vietnam banks’ definition, those with net assets of over one million USD), the implementation and operation of Private Banking comes with many challenges.

Banks implementing Private Banking in Vietnam need to possess strong financial potential and the ability to connect to a global partner network. Moreover, the bank also has to build a team of highly specialized and experienced advisors in many fields to accompany customers in important financial decisions.

Serving the rich requires strict and thoroughness, hence Private Banking is still a relatively new playground in Vietnam, even though the growth rate of HNWIs in our country is currently 12.7% per year, ranking 3rd in the world, based on data from Wealth Report 2021.

Currently, some banks have initially provided high-end customer service products, but mainly stopped at priority service, premier service.  The motivation for the bank to start deploying Private Banking service comes from the intrinsic strength i.e. history of the brand, client base, service level…together with the global investment ecosystem in many fields and experience.

The development of international standard Private Banking service in Vietnam requires the pool of staff of highly qualified asset management directors and investment consultants, well-trained by the world’s leading consulting company, and accredited by international financial institutions i.e. Fitch accredition.

The Private banking service and its ecosystem of global partners provide a diverse product portfolio and utility system to meet the needs of financial transactions and specialized investments for HNWI customers.  In addition to specialized financial transactions, intensive investment with advice from experts, the Private Banking also offers exclusive privileges for high-class customers such as healthcare, high-class personal assistant, providing information, consulting support and connecting to use services around the world, enjoy diverse lifestyle privileges, outstanding class such as golf, lounge, quick check-in at the airport, spa, fine-dining, vacation.

Only a limited bank in Vietnam now could really claim themselves providing Private Banking service in Vietnam market, however this playground will soon join players due to its market potential and the growing of the number of HNWI in Vietnam.  It is important to promote this service so as the super rich in Vietnam would be able to access to service that meet their needs in Vietnam instead of going abroad to be served.

How professional consultants in Vietnam could help grow wealth management service in Vietnam?

In summary, wealth management service in Vietnam is crucial for individuals and families looking to navigate complex financial landscapes, optimize their investments, manage risks, minimize taxes, and secure their financial legacies. By partnering with experienced wealth managers, professional consultants in Vietnam with understanding of business and law, individuals can benefit from personalized strategies tailored to their unique circumstances, enabling them to achieve their long-term financial objectives with confidence.

Banking Sector in Vietnam

 

1. Overview

Vietnam’s banking sector has shown significant improvement which results from stable inflation and interested rate, favorable environment for foreign direct investment and a shift from deficit to surplus of the country’s current account. This sector plays a crucial role in Vietnam’s economic development in recent years.

2.Banking system

There are two tiers in banking sector in Vietnam. The first one is State Bank of Vietnam (SBV) which is responsible for monetary policy and supervision/regulation of the banking system in Vietnam. The second one consists of commercial banks, financial companies, credit co-operatives, people’s credit funds, and insurance companies. The main activity driving banking system is commercial bank which includes 5 state-owned commercial banks, 33 joint stock commercial banks, 5 joint venture commercial banks and 5 wholly-owned foreign owned bank.

State owned commercial banks (SOCB) account for more than 40% of market share. The largest bank in terms of total assets, network and still 100% state owned share is Agribank. And four other SOCB areVietcom bank, Viettin Bank, BIDV and MHB.

Joint stock commercial banks (JSCB) have small capital/deposit base and more diversified shareholding structured compared to state owned commercial banks. There are currently 33 JSCB, which the leading ones are SaiGon Joint Stock Commercial Bank (SCB), Military Joint Stock Commercial Bank (MBB), Vietnam Export Import Commercial Joint Stock Bank (EIB), Asia Commercial Bank (ACB) and SaiGonThuong Tin Commercial Joint Stock Bank (STB)

Also SBV had granted 5 licences to permit HSBC, Standard Charter Bank, ANZ Bank, Shinhan Bank and Hong Leong Bank to establish as wholly-owned foreign banks

3.Potential opportunities for foreign investment

There are solid evidences to prove that Vietnam’s banking sector has such a huge potential for foreign investment

- Government effort of reforming banking system

SBV suggested that merge and acquisition of loss making and incompetent bank would be necessary to improve efficiency within the industry. For example, in 2015, SBV forced merge of loss making Vietnam Construction Bank to Vietcom bank with purchasing share price for 0 VND. By forcing merge and acquisition of incompetent banks, SBV has increased exploitation of economies of scale and the reduced burden on regulators

- Trade agreements facilitate foreign ownership and investment

Have taken part in variety of trade agreement such as Trans Pacific Strategic Economic Partnership (TTP),  Association of Southeast Asian Nations (ASEAN) and Free Trade Agreement with different countries, Vietnam has made restructuring move to standardize banking system which will be compatible and accessible to other countries. Vietnam is required to have bilateral arrangement which eliminate the challenges of foreign establishment of banking services.

The government also encourages foreign investors to hold shares for five year period and partnering with the local bank to enhance management, capacity or new development. With the 30% limit of oversea ownership to domestic banks, the strategic foreign investors are allowed to acquire up to 15% of share in a bank, and up to 20% with Prime Ministerial approval. HSBC has also invested in a leading local bank, possessing a 20% stake in the Vietnam Technological and Commercial Joint Stock Bank—Techcombank. It is also the sole foreign strategic partner of the BaoViet Finance-Insurance Group, Vietnam’s largest insurance company. In a vote of confidence in the insurer, HSBC increased its stake to 18% in October 2009.

- Vietnam- a destination of foreign investment in South East Asian market

There is a huge untapped market in Vietnam. According to SBV, only 20% of more than 90 million citizens in Vietnam hold bank accounts and 3% of the population have credit cards. With 87% of the population under the age of 54, there is a great opportunity for retail banking activity development in Vietnam.

Also it is agreed that SME and rural areas have had challenges to access bank investment and loan. The data of Asian Development Bank shows that “lack the capacity to assess the risk of investment into SMEs and find bankable projects” and lack of knowledge about loan and lending systems for rural citizens are the main reasons leading to currentunder-banked circumstances.

The stable economic with GDP growth of around 6% to 7%; low wage costs; a large population with a high savings rate and lack of innovative approach to the market are advantages for foreign investors to accelerate financial and industrial development in Vietnam market.

Digital Transformation in Vietnam: A Remarkable Leap Towards Innovation and Intellectual Property Protection in 2025

 Digital transformation in Vietnam and its journey towards becoming an innovation-driven economy has seen remarkable progress, marked by significant advancements in digital transformation, intellectual property (IP)protection, and e-commerce regulation.

As a developing nation, Vietnam has consistently improved its business environment to attract foreign investors to establish companies in Vietnam. From its rise in the Global Innovation Index 2024 to the implementation of Resolution No. 57 on science and technology development, Vietnam is proving itself as a dynamic and competitive player in the global economy.

With a booming digital economy and a rapidly expanding e-commerce market, the country has also taken bold steps in strengthening copyright laws and curbing the proliferation of counterfeit goods. These initiatives not only enhance business confidence but also position Vietnam as a strategic investment destination for companies seeking a secure and digitally advanced environment.

                                       Digital Transformation in Vietnam: A Remarkable Leap in 2025

This article provides a comprehensive overview of key developments shaping digital transformation in Vietnam and its impact on foreign businesses, technology companies, and e-commerce players.

Vietnam’s Rise in the Global Innovation Index 2024

Vietnam’s commitment to fostering innovation and intellectual property protection is reflected in its steady rise in the Global Innovation Index (GII) 2024, published by the World Intellectual Property Organization (WIPO) in September 2024. The country moved up two places to 46th out of 132 economies, solidifying its position as one of the most innovation-driven developing nations showcasing progress of digital transformation in Vietnam.

Why Vietnam’s GII Ranking Matters for Foreign Investors

The GII evaluates economies based on key indicators such as:

- Research and development (R&D) investment

- University-industry collaboration

- Technology exports

- Intellectual property filings

- Digital transformation and knowledge-based industries

Vietnam has made substantial improvements in these areas, particularly in technology and science-driven sectors. The country’s rising innovation capabilities signal a more favorable business climate for foreign companies looking to invest in digital infrastructure, AI, fintech, and smart manufacturing.

Resolution No. 57: A Game Changer for Vietnam’s Science, Technology, and Digital Transformation

To reinforce its commitment to technology-driven economic growth, Vietnam’s government issued Resolution No. 57-NQ/TW in June 2024. This policy focuses on accelerating digital transformation in Vietnam, enhancing science and technology development, and strengthening intellectual property rights.

Key Objectives of Resolution No. 57:

- Encouraging R&D and innovation by offering tax incentives and grants for technology startups, AI research, and green energy solutions.

- Strengthening the role of science and technology enterprises in economic development.

- Integrating digital transformation into public and private sectors, including blockchain, cloud computing, and IoT (Internet of Things).

- Creating an investor-friendly legal framework to attract foreign direct investment (FDI) in high-tech industries.

By aligning with global digital transformation trends, Vietnam aims to become a regional leader in technological innovation. This policy presents immense opportunities for foreign businesses specializing in AI, big data, cyber security, and automation.

Copyright Protection in Vietnam’s Digital Economy

As digital transformation in Vietnam accelerates, concerns about copyright infringement and IP violations have grown, especially in the e-commerce and media industries. To strengthen copyright protection, the Vietnamese government has introduced stricter IP laws and enforcement mechanisms.

Key Measures to Enhance Copyright Protection:

- Amendments to Vietnam’s Intellectual Property Law, effective January 2025, include stricter penalties for online copyright violations.

- New regulations requiring digital platforms to implement stronger anti-piracy measures.

- Increased cooperation with global organizations like WIPO and ASEAN IP authorities to combat IP theft.

- Expansion of Vietnam’s IP enforcement teams to monitor online infringement cases.

For foreign companies in the digital content, entertainment, and software industries, these initiatives offer greater security in protecting copyrighted works, patents, and trademarks.

Counterfeit Goods: A Persistent Challenge in Vietnam’s E-Commerce Market

Vietnam’s e-commerce market, valued at over $26 billion in 2024, has become one of the fastest-growing digital economies in Southeast Asia. However, this growth has also led to an alarming increase in counterfeit goods, particularly on major online platforms like Shopee, Lazada, and TikTok Shop.

1.The Scope of Counterfeit Goods in Vietnam:

Reports indicate that fake luxury goods, pharmaceuticals, cosmetics, and electronics are widely available on social media marketplaces and e-commerce websites. This poses a significant threat to consumer safety and brand reputation, particularly for foreign businesses expanding into Vietnam’s online retail sector.

2.Government Efforts to Curb Counterfeit Products:

To address this issue, Vietnam’s Ministry of Industry and Trade (MoIT) has:

- Implemented stricter regulations requiring e-commerce platforms to verify sellers’ identities.

- Increased fines and criminal charges for selling counterfeit goods online.

- Strengthened cross-border cooperation with international brands to take down counterfeit listings.

- Launched public awareness campaigns to educate consumers about the risks of fake products.

For foreign companies operating in Vietnam, brand protection strategies such as trademark registration, digital monitoring, and legal action are essential to safeguard business interests.

Digital Transformation in Vietnam: A Gateway for Foreign Businesses

The ambitious initiatives of digital transformation in Vietnam have positioned the country as a leading investment destination for global technology firms and startups. The government’s focus on enhancing digital infrastructure, cybersecurity, and artificial intelligence (AI) presents lucrative business opportunities.

Key Investment Sectors Enjoying digital transformation in Vietnam for Foreign Businesses:

1. Fintech and Digital Banking – With cashless transactions growing by 35% annually, Vietnam is a high-potential market for fintech startups, mobile payment providers, and blockchain developers.

2. Artificial Intelligence (AI) and Automation – Resolution No. 57 prioritizes AI development, creating demand for AI-driven solutions in healthcare, logistics, and smart cities.

3. E-commerce and Logistics – Vietnam’s e-commerce boom has increased demand for digital payment solutions, supply chain optimization, and warehouse automation.

4. Cybersecurity and Data Protection – As businesses transition to cloud-based operations, investment in cybersecurity services, fraud detection, and AI-driven risk management is essential.

Why Foreign Investors Should Consider Initiatives of Digital Transformation in Vietnam

1.Strong Economic Growth and FDI-Friendly Policies

Vietnam’s GDP is expected to grow by 6.5% in 2025, making it one of the most resilient economies in Asia. The government’s pro-business reforms include:

- Tax incentives for technology firms

- Favorable regulations for foreign ownership

- Trade agreements such as CPTPP, RCEP, and EU-Vietnam FTA

2.Skilled Workforce and Competitive Labor Costs

Vietnam boasts a young, tech-savvy workforce, with highly skilled engineers in AI, data science, and software development. Compared to neighboring countries, Vietnam offers lower operational costs, making it an attractive location for setting up R&D centers.

3.Strategic Location for Regional Expansion

Vietnam serves as a gateway to ASEAN markets, providing seamless access to Singapore, Thailand, Indonesia, and China. For foreign tech firms and e-commerce companies, Vietnam is an ideal hub for regional expansion.

Conclusion: Digital Transformation in Vietnam, The Future is Bright

The progress of digital transformation in Vietnam, intellectual property protection, and e-commerce regulation demonstrates its commitment to creating a world-class business environment. With the implementation of Resolution No. 57, stronger copyright enforcement, and a crackdown on counterfeit goods, Vietnam is evolving into a secure and innovation-driven economy.

For foreign investors and businesses looking to expand in Southeast Asia, Vietnam presents unmatched opportunities in technology, e-commerce, and high-growth digital sectors. By leveraging Vietnam’s pro-innovation policies and initiatives of digital transformation in Vietnam, companies can capitalize on the country’s dynamic growth and investment potential.

Final Thought

As Vietnam continues to enhance its intellectual property framework and digital infrastructure, foreign businesses must stay informed and engage with local experts to navigate the evolving legal landscape effectively. Investing in digital transformation in Vietnam journey today will ensure long-term success in one of the most promising markets in Asia.

Vietnam attracts Korean investment in research and development

 

In recent times, the investment shift out of China is being carried out by many international investors. Vietnam is a country that has enough factors to receive investment shift, especially in the manufacturing sector with low-cost labor and low expenses. However, at present, Vietnam has changed its method of attracting FDI, instead of taking advantage of low expenses and low-cost labor, Vietnam now aims to take advantage of highly skilled workers and many incentives in research and development activities.

Recently, many Korean investors have plans to change production lines, invest in research and development (R&D) company in Vietnam. Previously, Korean businesses mainly invested in industries such as apparel, bags, and footwear, however, recently many Korean investors have made investments in industries such as high electronics, information technology, automotive and construction equipment, distribution and service industries.

Currently, Korea is the leading country in the list of countries investing in Vietnam. Previously, a joint venture between Korean and Vietnamese businesses proposed to the Dong Nai province government to invest and build a Vietnam-Korea Hi-Tech Park with an area of ​​300 hectares, total investment capital of 150 million USD. The project aims to attract high-tech enterprises from Korea as well as other developed countries to set up company in Dong Nai in order to create quality product values ​​in the fields that shape the industrial revolution 4.0. The project is expected to attract 2 to 3 billion USD of investment capital in about 6 – 9 years after it is put into operation.

In addition, Korean investors have also cooperated with Vietnamese partners to build a Science and Technology Industrial Park with an area of ​​900 hectares in Binh Duong. In addition, many Vietnamese investors have actively worked with high-tech manufacturing partners to promote the participation of key partners as well as prepare the first customers.

With the policy of attracting investment in high technology and in particular the Investment law 2020, there are special investment incentives for newly established investment projects (including the expansion of the establishment project), the centers for innovation, research and development centers with total investment capital of 3,000 billion VND (about USD 150 million) or more, disbursing at least 1,000 billion VND within first 03 years from the date of issuance of the Investment Registration Certificate or the approval of the investment policy; a national innovation center established by decision of the Prime Minister; Investment projects in sectors or trades specially given investment incentives with an investment capital of VND 30,000 billion (about USD 1.5 billion) or more, with a minimum disbursement of VND 10,000 billion within 03 years from the date of issuance of the Investment Registration Certificate or the approval of the investment policy” will be given special incentives in accordance with the provisions of corporate income tax and land law.

As the investment attraction and investment shift preparation of Korean R&D enterprises, Vietnam hopes to become an investment destination for Korean high-tech enterprises in the future to establish company.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.