Hanoi (VNS/VNA) - The strong development of the stock market, with risingretail investors and financial investment demand, has prompted many banks tocooperate with securities firms and fund management companies to add morecross-selling products. 

Thisis considered a solution for the parties to optimally exploit allpotentials, and increase competitiveness and value. 

SaigonCommercial Joint Stock Bank (SCB) has just signed a cooperation agreement withTan Viet Fund Management JSC (TVFM) in the field of providing product services,based on the principle of priority commitment to using each other's productsand services, ensuring effective competition in terms of quality and cost.

Accordingly,SCB is TVFM's preferred partner in providing products and services in capitalmobilisation transactions, domestic and foreign financial arrangements,investment transactions and investment cooperation. 

Thebank also considers TVFM to be the preferred partner in performing investment,investment trust and asset management services for SCB and its customers.

Meanwhile,TVFM also signed a cooperation agreement with Ten Viet Securities JSC (TVSI) tocross-sell traditional products. In the next stage, the parties will proceed todevelop specialised products in line with the business orientations of TVSI,SCB, and TVFM.

NguyenCuu Tinh, Deputy General Director of the Personal Finance Services Division ofSCB, said that through the cooperation agreement, the bank will create superiorproduct packages for investors and standardise the investment process ofcustomers. Thereby, it can form accumulation packages with high-interest ratesand outstanding efficiency, promising to provide customers impressivedifferences in products and services with stable profitability.

Previously,HSBC Vietnam also confirmed the strategic cooperation relationship withVinaCapital Fund Management SJC in connecting retail investors withVinaCapital's fund certificates. Initially, the cooperation is aimed atsupporting HSBC Premier customers, opening up many opportunities for HSBC'scustomers to access investment products.

PramothRajendran, Country Head of Wealth Management and Personal Banking, HSBC Vietnam,said that this is a good time for HSBC Vietnam to introduce wealth managementproducts, as customer demands’ standard is higher.

Withstrategic cooperation with long-time partner VinaCapital, the bank wishes tointroduce to customers another investment channel to help increase assets. Thisis in line with HSBC's strategy to open up new opportunities for customers, aswell as support the development of the Vietnamese market.

InFebruary, SSI Securities Corporation (SSI) also announced that it hadsuccessfully signed a loan contract with a limit of 10 trillion VND (437.1million USD) with the Hanoi branch of Vietinbank. 

Thisis the largest credit line contract of SSI to date with a joint-stockcommercial bank in Vietnam, promising to open up a more comprehensivecooperation direction in the future between the two financial institutions.

Anotherdeal attracting attention recently is the return to the securities sector ofVPBank through the acquisition of more than 97 percent of stakes in ASCSecurities Corporation and changed its name to VPBank Securities Company.

Inthe past, VPBank used to be the largest shareholder of VPS Securities JSC, thecompany with the largest stock brokerage market share today, however, in 2016,VPBank divested from the company and is no longer involved in the securitiesbusiness.

Asit is a traditional business of banks for a long time, it is understandablethat many commercial banks expand their cooperation to promote investmentdevelopment. 

Thestructure of stock investment of banks includes valuable papers, which mainlyare debt securities including corporate bonds, government bonds and bonds ofcredit institutions. Currently, these services are mainly carried out bysecurities companies, which are subsidiaries or strategic partners.

Financialstatements for the fourth quarter of 2021 and business results for 2021 oflisted banks showed that investment securities services are bringingsignificant income to many banks, especially those that own securitiescompanies.

Forexample, last year, Techcombank’s fee collection from investment banking (IB),the largest component of income from service activities, recorded at 3.6trillion VND, up 32.8 percent on-year. Its fees from bond distributionincreased by 57.4 percent and fees from other IB services rose by 66.7 percentin 2021, as its Techcom Securities JSC (TCBS) continued to provide many newproducts and services to serve larger customer group which grew 30 percent.

In2021, securities trading, stock investment and long-term capital contributionalso helped MBBank to earn nearly 1.7 trillion VND, up 75.3 percent./.