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Banks across Vietnam are rapidly embracing digital transformation, streamlining lending processes by offering customers the ability to apply for and receive loans entirely through online platforms. This move not only enhances customer convenience but also significantly reduces operational costs for financial institutions.   The cornerstone of this transformation is Vietnam’s integrated national population database, which is now synchronised with databases from 18 ministries and sectors, four state-owned corporations, and the administrative systems of all 63 provinces and cities. This seamless connectivity has enabled richer, cleaner, and more comprehensive datasets, providing a robust foundation for banks to expand their digital service offerings. At a recent conference focused on digital transformation in banking, Nguyen Thi Ngoan, Chief Financial Officer of Misa Joint Stock Company, highlighted the strategic potential of this data. In response, the company launched Misa Lending, a platform designed to connect micro and small enterprises with banks and credit institutions. The service facilitates lending based on real-time enterprise data and has already disbursed loans amounting to 22.5 trillion dong, approximately US$863.3 million. The platform has significantly improved access to finance, with 30% of businesses successfully securing credit—ten times higher than traditional models—while maintaining risk levels within acceptable thresholds. Vu Hong Phu, Executive Board Member of MB Bank, emphasised that enterprises with consistent cash flows, timely payroll disbursements, and full tax compliance are now eligible for credit approval, often without the need for collateral. In 2023, MB Bank issued unsecured loans based on data to over 4,000 businesses, cutting loan processing times by 80%. “A total of 14,500 disbursement orders were executed automatically within minutes,” said Phu. “What used to take two hours now only takes between five and 15 minutes. This level of automation saved the bank 36,000 labour hours last year, equivalent to 4,500 workdays.” VietinBank has also made strides in digital lending through its eFAST platform, which now facilitates online disbursement for corporate clients. According to Deputy Chief Executive Tran Cong Quynh Lan, the bank has processed more than 87,000 online disbursement transactions, valued at over 270 trillion dong. Presently, 36% of the bank’s corporate loans are disbursed online. Meanwhile, MSB, formerly Vietnam Maritime Commercial Joint Stock Bank, has fully digitised its credit approval process by leveraging national data systems, including tax and invoice records alongside the national population database. Thousands of enterprises have secured loans via digital channels, with approvals delivered within minutes. -Vietnam News

Japanese pension funds, which collectively manage more than $400 billion in assets, are embracing a notable shift in strategy by appointing chief investment officers (CIOs) for the first time. The move is part of a broader effort to enhance returns in a market defined by volatility and structural reforms. One prominent example is the Organization for Small & Medium Enterprises and Regional Innovation Japan, or SME Support Japan, a state agency supporting smaller firms. In April, it created a CIO-equivalent position and appointed Takashi Yamashita, a seasoned strategist who previously contributed to the portfolio design of the Government Pension Investment Fund (GPIF), one of the world’s largest retirement funds. Yamashita is now responsible for overseeing ¥12 trillion ($83 billion) in assets aimed at supporting small businesses. In addition to SME Support Japan, two other public-sector pension funds have introduced similar investment leadership roles. Collectively, the three executives now manage over $400 billion in assets. These appointments closely follow the Japanese government’s 2023 declaration of investment principles, a policy initiative to strengthen asset owners’ risk management and improve investment execution. “These CIO appointments signify a growing awareness of the need to enhance investment capabilities,” said Hironari Nozaki, a finance professor at Toyo University. He emphasised the importance of selecting individuals with genuine investment expertise, rather than assigning such responsibilities to traditional administrative executives, and advocated granting them broad decision-making authority. Historically, Japanese pension fund investment decisions have been managed by senior administrators with limited exposure to financial markets. The introduction of CIO roles marks a decisive break from that model, driven by concerns around continued market instability. Uncertainty over future interest rate hikes by the Bank of Japan and global market disruptions linked to former US President Donald Trump’s tariff policies have added to the urgency of reform. While global peers began appointing CIOs as early as the 1990s to improve performance, Japanese funds are only now catching up. GPIF was an early adopter by local standards, having created its CIO role over a decade ago. The fund shifted from its traditional reliance on domestic bonds and achieved cumulative investment returns of over ¥164 trillion as of the fiscal year ending March 2025, with an annualised gain of 4.4%. By contrast, SME Support Japan has reported an average annual return of just 2% over the past decade. Approximately 80% of its portfolio is allocated to domestic bonds under direct management. Under Yamashita’s leadership, the fund is currently reviewing its asset allocation strategy. Meanwhile, two more major funds have taken similar steps. The Federation of National Public Service Personnel Mutual Aid Associations, known as KKR, with assets of around ¥10 trillion, appointed Akihiro Konishi as its CIO. Konishi previously led the organisation’s fund management division and worked at DBJ Asset Management. The Pension Fund Association of Local Government Officials, or Chikyoren, which oversees ¥36 trillion, strengthened its oversight with dual appointments: a CIO-equivalent position and an independent risk officer. Tatsuya Morishita, a former investment team member and ex-employee of what is now Sumitomo Mitsui Trust, was named to the CIO role. Chikyoren and KKR have worked with GPIF to develop model portfolios, each targeting a 25% allocation to both domestic and foreign stocks and bonds. Their CIOs are now tasked with enhancing returns while maintaining tight risk controls. According to Bank of Japan data, public and corporate pension funds in Japan held a combined ¥513 trillion in assets as of December 2024, roughly equivalent to India’s annual economic output. While public entities such as GPIF, KKR and Chikyoren have led the way in adopting the CIO structure, uptake in the private sector remains limited. As of the end of May, 14 public pensions and 140 corporate pension funds had signed on to the government’s investment principles, a foundational step towards more dynamic capital allocation. However, due to the lack of standardised job titles in Japan’s pension industry, the exact number of CIOs remains unclear. Market participants believe it is still a small cohort. Toshiki Umeuchi of NLI Research Institute noted that while CIO-led institutions must operate within broad portfolio guidelines, variations in investment execution will ultimately drive performance differences. -Bloomberg

Hong Kong is experiencing a notable resurgence in tourism, with Financial Secretary Paul Chan reporting a significant increase in both mainland Chinese and overseas visitors for the first five months of 2025. The city welcomed an estimated 20 million tourists between January and May, of which approximately 75 per cent originated from mainland China—a 10 per cent year-on-year rise. Overseas arrivals climbed by 18 per cent over the same period. Writing in his official blog on Sunday, Chan attributed the growth to Hong Kong’s dynamic events calendar, featuring a diverse range of high-profile concerts, sporting tournaments and cultural exhibitions. These activities, he noted, have played a critical role in revitalising the city’s tourism sector following years of economic uncertainty fuelled by the COVID-19 pandemic. Events held in the first half of 2025 are projected to draw around 840,000 visitors and generate HK$3.3 billion (approximately US$420 million) in spending, with a corresponding economic contribution of HK$1.5 billion. Chan emphasised the widespread enthusiasm among fans eager to see international and regional stars perform live, describing recent months as a period of exceptional vibrancy for the city. Kai Tak Sports Park has been at the centre of this cultural revival, playing host to an array of globally recognised artists. British rock band Coldplay, Cantopop icon Nicholas Tse, Taiwanese group Mayday, and Singaporean singer JJ Lin have all recently performed to sold-out crowds. The venue is expected to continue drawing significant audiences in the coming months with a packed schedule of concerts and sports matches. Other flagship events, such as the Hong Kong Sevens rugby tournament and a football exhibition match featuring Manchester United, have further enhanced the city’s appeal among local and international sports fans. Beyond entertainment, the city’s cultural calendar has also contributed to this tourism uplift. March saw the return of Art Basel Hong Kong, a key date in the global art world, while April welcomed the launch of the Hong Kong Pop Culture Festival. These events, Chan said, attracted visitors from across the Greater Bay Area, home to over 80 million people, as well as from mainland China and across Asia. Looking ahead, Hong Kong plans to maintain its momentum with a robust line-up of international events scheduled throughout the second half of 2025. Chan expressed confidence that the combination of world-class programming, new attractions, and the city’s unique blend of urban and natural experiences would continue to drive tourism growth. To further support these efforts, the Hong Kong government has earmarked more than HK$1.2 billion in its current budget to strengthen tourism marketing. The initiative is aimed particularly at attracting affluent travellers from Southeast Asia and the Middle East, with an emphasis on religious and cultural inclusivity, including the availability of halal food and access to religious sites. However, the evolving expectations and behaviours of mainland Chinese tourists remain a challenge for local businesses, which continue to adapt in order to capture this key demographic more effectively. In a separate development, Chinese lifestyle platform Xiaohongshu, also known as RedNote, has established its first office outside mainland China, choosing Hong Kong as its inaugural overseas location. The move is seen as a strategic step in expanding cross-border services for brands and users, according to the Hong Kong government. Speaking at the office’s opening ceremony on Saturday, Chan underlined the platform’s strategic value to Hong Kong. Xiaohongshu currently boasts over 300 million monthly active users, including roughly 2 million in Hong Kong. The app’s influence has already been felt locally, with increased traffic to restaurants and retail outlets featured in user-generated content. Chan acknowledged, however, that user complaints about service standards—particularly in the food and transport sectors—have at times damaged the city’s image. He suggested that by leveraging Hong Kong’s status as an international financial hub, Xiaohongshu could both expand its global footprint and support the promotion of Chinese culture and products to a wider audience. Chan concluded by affirming the government’s commitment to deepening collaboration with Xiaohongshu, with a view to enhancing the visitor experience and increasing international visibility for Hong Kong’s tourism, retail, and creative industries. -CNA

HANOI: Vietnamese electric vehicle (EV) manufacturer VinFast announced a net loss of US$712 million for the first quarter of 2025, despite a sharp increase in vehicle deliveries and revenue. The company, which aims to position itself as a serious contender in the global EV market alongside established players such as Tesla, has faced ongoing challenges in penetrating international markets. During the first three months of the year, VinFast delivered 36,330 electric vehicles, marking a substantial year-on-year increase of 296 per cent. Total revenue for the quarter reached US$656.5 million, reflecting a rise of nearly 150 per cent compared to the same period in 2024. VinFast Chairwoman Thuy Le described the uptick in deliveries as “an encouraging start to 2025 amid ongoing global uncertainties.” In 2024, the company reported a net loss exceeding US$3 billion, despite having almost tripled its delivery volume over the year. The continued losses underscore the financial pressures facing emerging EV manufacturers navigating complex global trade dynamics and intense competition. VinFast’s parent company, Vingroup, remains a dominant force in Vietnam’s economy, with diversified interests spanning healthcare, real estate, education and technology. The company’s performance comes against the backdrop of escalating trade tensions, with global commerce disrupted by a wave of tariffs initiated by US President Donald Trump in April. Last week, Vietnamese authorities indicated that discussions with Washington were progressing, as they seek to avoid a proposed 46 per cent levy that could significantly impact the country’s export-driven economy. -AFP