Societe Generale eyes stake in banking market
HANOI - France’s Societe Generale is looking to branch out into Vietnam’s banking market by either establishing a brand new bank or buying stake in a local bank, said Daniel Bouton, chairman and CEO of the group.
“We’ve been satisfied with our business in Vietnam so far and we don’t want to miss any opportunity when it comes,” Bouton told the Daily during his first visit to Vietnam last week.
“At the moment, Societe Generale doesn’t intend to directly provide retail banking in Vietnam as it currently does in some other markets,” he said. “We will rely on a local bank to offer these services and if we are permitted, Societe Generale will form and operate its own bank here eventually.”
Societe Generale has conducted business in Vietnam since 1989. The group began as a credit arranger and a non-bank credit provider.
The group has arranged funds and provided financial consulting and interest rate swaps for several power plants and cement makers in the country including Phu My 2.2, Sesan, Haiphong 1 & 2, Quang Tri, Binh Phuoc, But Son and Hoang Mai.
Societe Generale also partially provided a syndicated loan for the cabble-stayed Phu My Bridge in HCMC, which links Nguyen Van Linh Boulevard in District 7 with the eastern beltway in District 2.
Last month, the group launched the Societe Generale Viet Finance to provide consumer financing. The subsidiary has VND320 billion (US$20 million) in chartered capital.
Prior to Bouton’s visit to Vietnam, Societe Generale Asset Management established an investment fund worth more than US$200 million to target the Vietnam stock market.
Societe Generale offers a variety of investment banking services and specializes in the provision of equity derivatives. The group expects to market these products in Vietnam as the capital market matures.
By Hong Phuc - The Saigon Times Daily - October 31, 2007.
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