VPBS to enter acceleration stage
VPBS’s big changes in 2014 include increase of charter capital, technology innovation, improvement of personnel quality to make a firm foundation for VPBS to enter acceleration stage, expand markets, broaden vision, and expand new businesses areas, aiming to become a professional investment bank in Vietnam and the region.
Consolidating internal resources
For firms operating in the financial sector, capital, technology and human factors are the foundation critical to the competitiveness in the marketplace. Regarding capital, VPBS is one of the stock companies having the largest charter capital with VND 800 billion.
VPBS’s profit after tax has an average growth of 43% from 2010 to 2013, which shows VPBS’s sustainable development during difficult time of the economy as well as stock market in recent years.
Towards becoming a professional investment bank, VPBS’s General Director - Mr. Nguyen Lam Dung said that VPBS planned to increase its capital to VND 1,000 billion by year-end. This number is expected to be minimum VND 3,000 billion within 2-3 years to enhance its financial strength, preparing for the new development opportunities when the economy and stock market enter the recovery phase.
According to Mr. Dung, the strong financial background and reputation of the parent bank will facilitate VPBS to mobilize capital from domestic and foreign markets to diversify its financial products, services for investors.
Going together with the capital increase is the intensive innovation in technology. Mr. Dung said, in 2014, VPBS would invest to replace the entire hardware and software to create synchronization for information technology infrastructure.
During the transition period, VPBS will maintain both old and new system until the new system is complete and stable. The technological change will help to improve the utilities, service quality, and is a foundation for VPBS to develop more new financial products to customers.
In addition, the new technology system will also help to better standardize procedures and management. At the same time, VPBS also plans to deploy information security policies in accordance with ISO 27001 version 2013 for its information technology system in order to improve competitiveness and reduce risks according to the worldwide-recognized standards.
Among the three key foundation elements, personnel is always the center. Going against the general trend of the market, VPBS continuously recruits new employees, and focuses on training and building a sustainable corporate culture. At the end of 2011, VPBS had 137 employees. Only a year later, this number had increased to 168 and now 240.
In recruitment process, besides “hard skills”, two factors that VPBS highly concerns are occupational ethics and integration ability.
“All candidates are interviewed directly by the General Director no matter what positions they apply for. I want to check whether the candidate is suitable to and able to integrate in the environment and culture here or not,” Mr. Dung shared.
To create cohesion and joy for its employees, VPBS has had a very interesting culture for a long time. On the first Monday of each month, all female staff receive greeting cards and flowers.
Every year, VPBS organizes periodic health examination and purchases comprehensive health insurance for its employees. In addition, VPBS holds periodic collective events to enhance cohesion, communication and cooperation between departments and divisions; thus maintaining and developing corporate culture stronger day by day.
The training activities are also paid attention to. In December, VPBS officially implements internal CFA training programs for its staff, increasing staff capability, to prepare for the strategic moves, market expansion to regional countries.
Besides ensuring the good welfare for its employees, VPBS strictly requires work performance, and highly appreciate occupational ethics. The careful staff selection, dedicated concern and rigorous standards at work have made the difference for people in VPBS.
Opening new development opportunities
Year 2014, according to VPBS’s General Director – Mr. Nguyen Lam Dung, is the pivotal transition year for comprehensive changes in VPBS namely to continue to increase its charter capital, to innovate technology, to improve personnel quality to create a firm foundation, which brings VPBS to enter acceleration stage, expand markets, broaden vision, and expand new businesses areas, aiming to become a professional investment bank in Vietnam and the region.
VPBS is a stock company with diversified and balance revenue structure in various securities services, corporate financial consultancy and bond trading.
In brokerage area, VPBS focuses on attracting personal customer segment by offering numerous great offers, launching superior financial products and investing on distinctive utilities to best support investors, and equally important, building the team of professional brokers with extensive knowledge of the market, thus helping VPBS become one of ten securities firms with largest brokerage market share on HOSE and HNX.
VPBS’s development goal in the next stage is to focus on institutional customers with the mission to become one of the securities company with leading trading market share in Vietnamese stock market in 2014.
In consultation area, VPBS is structuring and developing specialization according to the model of investment banks in the region. The specialization model helps VPBS to bring advanced products to the market and ensure the highest efficiency, professionalism for each case.
With this new structure, recently, VPBS has successfully given consultancy for various cases in bond issuance, stock issuance, large M&A on the market, especially large and complicated case.
VPBS advised Hoang Anh Gia Lai Rubber JSC to successfully issue VND 2,000 billion bonds with warrants in December 2012; advised to transfer 6 hydropower projects of Hoang Anh Gia Lai Group JSC (HAG) in August 2013.
In addition, VPBS, as a co-consultant, advised Vietnam Coal Mineral Industries Group (Vinacomin) to successfully issue bonds with value of VND 5,000 billion, and advised to sell successfully VND 4,500 billion of bonds for the parent bank – VPBank in September 2013.
Most recently, VPBS advised to issue and distributed successfully VND 1,000 billion bonds for Sun Group Corporation (SunGroup). With the efforts of business activity, consultancy area alone has brought VPBS impressive revenue of over VND 60.5 billion in the first nine months of 2013.
Aiming to become an investment bank, Mr. Dung said that, besides the ambition to grow strongly in the domestic market, VPBS is struggling gradually to reach out to the regional markets, namely Indochina countries (Laos, Cambodia) and Myanmar.
Recently, VPBS has successfully advised a group of Korean investors to sell shares in Laos for a European investment fund. VPBS is expected to open its first overseas representative office in Myanmar by year-end. In January 2014, the analysis reports on the economy, markets and investment potential in Myanmar will be officially released.
To support for this ambition, VPBS has built its analysis department to include 25 outstanding and experienced analysts in both cities, Hanoi and HCMC, led by a director with 22 years’ experience in the investment field on the world market and used to work in large organizations such as Bank of America, Deutsche Bank, etc.
With the target of releasing 1,200 reports “made in VPBS” per year, half of which is in English, Mr. Dung expects that the reports will cover most of the areas such as macroeconomic reviews, bond market, capital market, investment strategy, listed firms, etc to will help customers as well as to direct large capital flows. Besides, an analysis department with intensive and high-quality reports will effectively support VPBS’s corporate finance consultancy and risk management, at the same time laying the foundation for providing premium and professional financial services, effectively contributing to VPBS’s overall business performance.
Many people believe that stock companies do not have big chances to develop if they are surrounded by only traditional operations as brokerage and proprietary trading of listed stocks.
These activities depend too heavily on the indices, if the market goes good, then good, but the market goes down, the stock companies will face many difficulties. However, VPBS’s General Director has a different point of view. He said: “If working under the model of investment banks, stock companies have a lot of space for creativity and development. Expand your vision; and you will open opportunities for business development. This is a key point in the strategic thinking of our company.”