Financial Insights Asia/Pacific Predicts Extensive IT Growth Within Vietnam's Joint Stock Bank Sector

Singapore and Hong Kong - 5 March 2008

Leading independent research and advisory firm Financial Insights, an IDC company, today announces the release of a new report examining the rarely discussed viewpoints among joint stock banks in Vietnam and their technology strategies and concerns at Financial Insights’ Vietnam banking roundtable. The roundtable forum is part of a roundtable series that Financial Insights organizes in the Asia/Pacific (excluding Japan) region. CIOs and IT executives from seven of Vietnam's leading joint stock banks participated.

Vietnam's joint-stock banks are forced to rely on a more frugal and cautious IT investment strategy due to their relatively smaller size and lack of government funding when compared to their state owned counterparts.

“In the recent years, heavy foreign investment and increased upper management awareness have led many of the joint stock banks in Vietnam to initiate the first phases of their technology development. Not surprisingly, many of these initiatives are focused on improving the technology infrastructure,” Abhishek Kumar, senior research analyst of Financial Insight’s Asia/Pacific Banking Advisory Service, notes, "Vietnam's joint stock banks are now looking to optimize the benefits of their technology investments so as to be more competitive in the rapidly growing banking sector. In line with this, Financial Insights expects these banks to have double or even triple digit growth in their IT budgets."

Some of the top investment priorities are in datacenters and Internet banking. Kumar concludes, "Vietnam's joint stock banks have usually been eclipsed by actions and initiatives of state owned commercial banks. This is a scenario that will undoubtedly begin to change over the next few years as these banks begin to effectively leverage technology to increase competitiveness."

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development