What lies behind enterprise-bank cooperations?

The quickest way for enterprises to enter the financial market is to join hands with banks, while banks find it easiest to attract more clients if they cooperate with enterprises.

Big corporations and bankers nowadays tend to ‘shake hands’ in multifaceted cooperation agreements. Joint stock banks aim to attract more clients when they choose strategic shareholders. Experts have said that this is the quickest way to grab the market share that they had not got before.

Eximbank’s Director General Pham Van Thiet said that bankers and big corporations cooperated with each other in order to take full advantage of the client networks and services of the partners.

For example, Eximbank has signed an agreement with Kinh Do Group, under which, the bank can use the network of the group to offer more services to more clients. A large number of Kinh Do’s clients will use Eximbank’s services.

With the same goal, Eximbank has at the same time signed cooperation agreements with 16 local partners which operate in different fields. The total share value the bank has sold to its strategic shareholders has reached VND500bil ($31.25mil).

As for enterprises, which once found it very hard to access bank loans, they can more easily get loans after joining hands with banks.

Nevertheless, it is quite difficult to find suitable partners. A banker said that it took him many years to find a partner who could meet the requirements on capital, business vision, business network, and most importantly, had suitable development plans.

Under the new agreement signed between the Vietnam Post and Telecommunication Group (VNPT) and the Vietnam Industrial and Commercial Bank (Incombank), the two sides will move ahead with cooperation activities, make capital contributions and support each other in expanding and developing many business fields.

Similarly, 16 partners of Eximbank have promised to use each others’ services and make investment cooperation deals. Moreover, experts have said, enterprises all aim to hold bank shares to enter the financial market, which is very hot nowadays. Bach Viet and PC2, for example, have inked cooperation deals with An Binh Bank.

The financial market is so hot that 20 more applications to set up banks have been submitted to the State Bank of Vietnam, while foreign investors are also seeking to make investment in Vietnamese banks.

Source: VNE