ANZ honcho predicts stable growth of 6.5%

HA NOI — Viet Nam has weathered the global economic crisis well and should be able to achieve a growth rate of 6.5 per cent this year, ANZ Banking Group CEO Mike Smith told reporters during his visit to Ha Noi yesterday.

Smith suggested that the rate could be even higher if Viet Nam's neighbours in the region maintained positive GDP growth rates.

The positive forecast came even as inflationary pressures have been increasing in Viet Nam, foreign investment capital has fallen, credit agencies downgraded the domestic currency, and monetary and foreign exchange policies been in flux.

These were temporary problems that would not impact on investor decisions, Smith said, and Viet Nam remained the investment destination with the highest potential in the region.

Since 2005, ANZ has held a 10-per-cent stake in Sacombank, one of the leading commercial banks in the nation in terms of charter capital and total assets. Rumours circulating last year that ANZ intended to withdraw capital from Sacombank have not yet turned into reality.

"Holding a minority stake has a limited value in a corporation, but, at this time, we continue to remain partnership with Sacom-bank," said Smith.

ANZ also held a stake in Saigon Securities Inc of over 17 per cent.

Smith's visit aimed to outline a new regionally-based strategy in the countries of the Greater Mekong region, including Viet Nam, Cambodia and Laos. ANZ planned to expand retail banking services with a focus on affluent clients in emerging markets, as well as selectively invest in a branch and ATM network enabling it to expand financing, cash management, foreign exchange and corporate banking services. — VNS