Credit Suisse anticipates a 25% increase in investment-banking fees in Vietnam this year, thanks to the latest push to privatize Vietnam’s public companies — as investment-banking revenue drops elsewhere in Asia. This follows a 24% increase in investment fees in Vietnam last year — although Indonesia generated ten times the $46 million in Vietnam investment banking fees.
Vietnam says it will sell parts of 254 government-owned businesses this year, and several global investment banks, Goldman Sachs among them, are lining up to capitalize.
Even so, some international bankers are wary of Vietnam because of its history of stalling privatizations — such as the expected 2007 sales of part of Vietnam Airlines and the Bank of Investment & Development (BIDV). Vietnam has work to do to convince the international investment community that it is serious about privatization.
More on Vietnam’s investment momentum