For the first time, the 5th AOA Forum 2019 was held by the Vietnam Association of Financial Investors (“VAFI”) and Asia Offshore Association (“AOA”) on 15-16 May 2019 at Melia Hanoi Hotel. About 100 participants, sponsors, speakers and partners attended the conference titled “New Frontiers: Cutting Edge Strategies for Private and Corporate Wealth in Southeast Asia”.

During the conference, 15 speakers discussed four main topics concerning asset management, finance, FDI, digital technology in the financial services industry, and related legal issues.

VCI Legal representatives at the conference

With GDP growth averaging 6% annually over the last 25 years, Vietnam’s economy has taken off signficantly, propelling the nation amongst middle-income countries and helping it to top a list of countries ranked by wealth growth over the last decade. These positive shifts have led to a growing middle class and a fast-growing number of ultra-high-net-worth individuals.

According to Mr. Gauraw Srivastava, Head of Affluent Banking & Wealth Management at VPBank, Vietnam has a market with great potential due to a young, well-trained workforce and hard-working young entrepreneurs; the profitability rate in many businesses in Vietnam is more attractive than some markets in the region. This is the reason why Vietnam is a favorite destination for many large investors from around the world.

In addition to attracting foreign investment, experts also have appreciated domestic investments. According to Mr. Srivastava, the number of rich people in Vietnam had increased rapidly, up 200% in the last decade and these are the potential customers for fund management, which brings the prospect of creating new capital flows in the future.

Mr. Kenneth Camilleri, Director of Tax and Immigration at Chetcuti Cauchi Advocates, shared the same view. From his perspective, similar to many other countries, the number of rich people in Vietnam was rapidly increasing and is expected to be 2-3 times higher in the coming years.  They would be the ones who need to look for investment channels to allocate their assets effectively.

On the other hand, along with the positive economic growth prospects, Vietnam needs to find solutions for some problems that are a barrier for investors.

On behalf of VAFI, Mr. Tuan Phung made his speech at AOA Forum 2019

Mr. Phung Anh Tuan, Vice-President and General Secretary of VAFI cum Managing Partner of VCI Legal highly appreciated the plan to protect investors.  He acknowledged that: “We are trying to promote cooperation with related parties, learning from the U.S, Taiwan, Hong Kong … to protect investors in Vietnam’s stockmarket.

However, the difficulty is that we lack a mechanism to represent investors in negotiating and resolving disputes related to legal issues, so the cooperation of state agencies is needed.

Thereby helping investors not to become victims of unfair information and being treated unfairly in the market.  Once the effectiveness of investor protection on the stock market is significantly improved, it will help protect investors to become professional and attract more capital to enter the market.”

The two-day conference helped participants better understand the Vietnamesebusiness environment and the kinds of decision-making required to achieve success in this exciting market.


DISCLAIMER

This LBN newsletter are NOT legal advice. Readers are advised to retain a qualified lawyer, should they wish to seek legal advice. VCI Legal are certainly among those and happy to be retained, yet VCI Legal is not to be hold responsible should any reader choose to interpret/apply the regulations after reading this LBN without engaging a qualified lawyer.