Techcombank’s CEO discusses the forces driving Vietnam’s economy, the country’s drive to attract international capital, and how the bank transformed itself into an integrated financial ecosystem, after it was named Best Bank in Vietnam for the third consecutive year.
Vietnam’s economy is proving resilient in the face of external shocks, says Techcombank CEO Jens Lottner. Exports, foreign direct investment and public spending are the main drivers. Exports are up 36% year on year, public disbursements are up 46%, and consumption is growing strongly at 13%. Lottner expects much of this momentum to continue in the years ahead.
The government has big ambitions to raise productivity. Lottner describes a major restructuring under way as Vietnam moves up the value chain, from competing on cheap labour to integrating more deeply into global supply chains.
That requires heavy investment in infrastructure. Techcombank estimates Vietnam needs around $1.1 trillion in capital formation over the next five years, with $200 billion to $300 billion of it coming from overseas. To attract that capital, the government is working to improve the country’s international credit rating, and FTSE has upgraded Vietnam’s capital markets. It is also developing the Vietnam International Financial Center in Ho Chi Minh City and Da Nang, with a distinct regulatory framework designed to draw in international investment.
For Techcombank, winning Best Bank in Vietnam for the third year in a row is a great honour and an inspiration for everyone at the bank. Lottner says this year’s award is especially meaningful because it marks the end of the first five years of the bank’s transformation. Over that time, Techcombank has built a scalable platform and doubled its customer base since 2021, to 18 million. Productivity has risen, with total operating income per employee up 40%, and returns on equity and assets remain high.
The biggest change, Lottner says, is that Techcombank has moved from being a bank to being the core of an integrated financial ecosystem. It now offers life and general insurance and runs one of Vietnam’s leading wealth tech platforms, serving customers holistically rather than only through lending and deposits. Over the next five years, he expects AI to help the bank completely reimagine its business models, operating models and productivity, and to replicate the success of its first transformation.
