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.
âIn 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,â Abhishek Kumar, senior research analyst of Financial Insightâs 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."