How does UOB evaluate the commitment and cohesion among ASEAN countries in supporting each other to attract foreign-invested projects in to the region, especially for the green financial resource?

UOB is strategically positioned to support business operations across Greater China as well as throughout ASEAN. The bank aids businesses expanding into key markets like Singapore, Vietnam, Thailand, and Indonesia. UOB’s strategy is built around connectivity, digitalisation, and sustainability.

Leong Yung Chee, head of Group Corporate Banking at UOB

One area in need of attention is the digital and green economies. Many current cooperation agreements do not adequately address these emerging trends. While the digital economic framework is a positive step towards tackling these issues, there is still substantial work to be done by ASEAN to create a more comprehensive digital and green economy partnership.

When it comes to foreign direct investment into ASEAN, many member countries have developed unique competitive advantages. Vietnam, with a highly integrated workforce of 55 million, has seen rapid growth in high manufacturing sectors, fast-moving consumer goods, textiles, and electronics. Companies like Apple and Samsung have built significant operations in Vietnam, serving global markets and exemplifying the country’s industrial prowess.

With the differences in both political and economic spheres between ASEAN countries, how challenging does UOB face when promoting a connected region?

Different countries within the ASEAN region are governed by distinct regulations, currency controls, cultural values, and business practices, making it a highly challenging environment. This is where UOB finds its unique advantage.

In Malaysia and Indonesia, UOB operates more branches than the foreign banks there combined. Despite their global reach, these international banks cannot match our local presence. Similarly, local banks in our key regional markets cannot equal our expansive regional network.

This places us in a unique position, where UOB does not directly compete with global banks because they cannot reach us, nor with local banks because they cannot replicate our regional scale.

As a regional bank with a significant ASEAN footprint, we have been present in Vietnam for over 30 years, in Malaysia for more than 70 years, in Thailand for over 25 years, and in Indonesia for over 50 years. UOB’s long-standing presence, combined with our developed systems and capabilities, allows us to operate as a unified bank across ASEAN.

This gives us a competitive advantage in funding costs within Southeast Asia, which international banks with regional footprints cannot match.

Are there any sectors in Vietnam that UOB is monitoring more closely than others due to specific concerns or significant growth?

People often discuss commercial real estate in somewhat negative terms, and while this is partially true, it is important to provide context. As real estate prices fall, businesses can now negotiate lower rents, effectively reducing their operating costs.

So, while falling property values are undoubtedly bad for landlords and the banks that finance them, it creates opportunities for businesses to renegotiate rents and lower their business expenses. From our perspective, if investors finance these businesses, they are in a favourable position as well.

In Vietnam, the overall economic outlook is still very good with the country’s projecting GDP growth of 6 - 6.5 per cent, the highest in ASEAN markets. Even with challenges in the real estate sector, Vietnam’s future growth prospects are promising.