g
Vietnamese banks – half of them listed – among the nearly 40 in the country, according to Thomson Reuters data.
Foreign banks with stakes in Vietnamese ones include HSBC, in Techcombank, CBA in Vietnam International Bank (VIB), and UOB in Phuong Nam. Until February 2014, the maximum stake that a foreign
company could take in a Vietnamese bank was 30 per cent but the government has relaxed this of late for ‘weak’ banks, of which it said there were eleven, albeit with eight of these having been ‘restructured’. This was in part a response by the country’s Communist government to a high level of bad debt, resulting from a stagnant economy for the last five years or so after strong growth. The sector has also been beset by accusations of corruption and arrests. Part- privatisation of state-owned banks is also on the cards. There were also two deals in 2011 for Polaris’ core
system, building on wins in 2008 and 2009 at Mekong Housing Bank and Saigon Hanoi Bank, and one for T24, at Mekong Development Bank. The latter bank was influenced by the arrival of a foreign strategic partner, Singapore- based Fullerton Financial Holdings. ‘This saw a strategic shift towards modernisation and becoming a strong player in Vietnam,’ said the bank’s CEO, Tay Han Chong. The project appeared to be one of the more successful in the country, with the bank live somewhat ahead of a number of its counterparts that had started earlier. One of Polaris’ 2011 wins was Vietnam Bank for Social Policies, with the roll-out nearing completion in late 2014, to support the bank’s 692 branch network and 16 million accounts. 2012 was appreciably quieter, with a fair few banks mid-
project. The selection that looked the broadest in scope was for FIS’s Profile, from Vietinbank. There was a win for 3i Infotech for its Kastle Universal Lending system from
Bank for Investment and Development of Vietnam and for Temenos from specialist domestic player, EVN Finance. The other deals were treasury in nature and went to Misys with Kondor+ (two wins) and Murex (one). One of the less predictable deals (and the only one in a much quieter 2013) came early in the year and saw Russian core banking vendor, Diasoft, gain its first site in South East Asia for its Flextera system. This was at VIB, which started by deploying the payments management module in a project spanning three months, followed by additional modules, including lending. VIB, with over 150 domestic branches, was a long-standing user of Sungard’s Ambit core banking system, but had been transforming its business and technology since the arrival of CBA as a strategic shareholder in 2010.
2014 was busy again and the main winner was Temenos,
taking four core banking deals, including at the country’s central bank, State Bank of Vietnam, and National Citizen
Market Dynamics Report
www.ibsintelligence.com 205
Bank (NCB). State Bank is planning a broad modernisation project
dubbed ‘Financial Sector Modernisation Information Management System Project’, under
and the
auspices of the World Bank. Local integrator, FPT Information System, won the deal to supply, implement and integrate the core banking, accounting and budgeting software. The contract is understood to be worth $8.84 million. Polaris and the incumbent vendor, South Korea-based Hyundai Information Technology were also evaluated at the shortlist stage. Temenos’ deal at NCB also involved FPT. NCB was
previously known as Nam Viet Commercial Joint Stock Bank (Navibank) and had taken Flexcube in 2009 but had given up on the project. NCB is one of the smaller players in the country’s banking market and has been in restructuring mode since 2012, imposed on it by the regulators.
It
recruited a new leadership team and aimed to be included in Vietnam’s top 20 FIs in 2015, and top 15 in 2016. According to NCB’s financial results for 2013, its profit after tax was VND24 billion ($1.1 million), a tenfold increase compared to the previous year. Its total assets stand at VND29.22 trillion ($1.4 billion). Prior to this, in 2009, Oracle FSS had beaten Temenos
two- one, the latter gaining Handico Finance Joint Stock Company (and
Oracle winning the aforementioned
Navibank). The previous year, Oracle FSS had gained three deals to Temenos’ two. In 2010, Thomson Reuters had won deals for K+TP (i.e. Kondor+ back office) at Asia Commercial Bank (ACB) and Maritime Bank (ahead of the Kondor+ business becoming part of Misys). The only two other deals in the year had been for Nucleus with its retail lending system. Aforementioned domestic supplier, FPT International, has a number of customers in the country for its Smartbank core banking system and also offers a range of services and other applications. It has partnered with Oracle FSS and worked on the implementation of Flexcube at Saigon Commercial Bank but has also been
involved in other
projects and with other vendors. The peak for new deals of late was 2011, with nine
selections. Three were for Nucleus’ lending system (Mekong Development Bank, Mirae Asset Finance and VP Bank). There were two deals for Flexcube, one of which was at Ficombank. This has since merged with a couple of other entities
to
create Saigon Commercial Bank, and in January 2013, it went live on a consolidated platform, Flexcube, replacing a number of core systems, with T24 among them. Flexcube won a new deal in 2015 with Lien Viet Post Bank
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