Preparing for Investment Banking in Vietnam: A Comprehensive Guide

Living in Vietnam and looking to make a career move into investment banking, private equity (PE), or asset management? This guide will help you understand the key areas to focus on before you make the transition. From understanding the local market to developing essential skills, we'll cover everything you need to know.

1. Understanding the Investment Banking Landscape in Vietnam

Before diving into investment banking in Vietnam, it's crucial to understand the local market. While the country has made strides in financial development, many international firms like Goldman Sachs are still finding their footing. Nonetheless, Vietnam offers a promising environment for banking and finance professionals with the right mindset and preparation. Here are some of the key players in the local market:

1.1 Securities Companies

HSC, SSI, Viet Capital Securities, Thien Viet Securities Description: These companies offer a range of IB services such as securities underwriting, trading, market making, and various financial instruments like stocks, bonds, and derivatives. They also provide research, valuation, due diligence, mergers and acquisitions (MA), and restructuring advisory.

1.2 Fund Management and Financial Advisory Companies

Financial Advisory Companies: middot;KPMG, EY, Deloitte, PwC (advisory services) ii. Fund Management Companies: middot;VinaCapital, Dragon Capital, Mekong Capital, Viet Fund Management, Saigon Asset Management Description: These companies seek out financially and strategically beneficial companies or projects, then invest with investors' money. They also perform extensive research, valuation, due diligence, restructuring, and MA advisory. While the largest exchange, HSX, was only founded in 1996, it's an exciting and growing market.

2. Career Path and Compensation

Within Vietnamese IB, the career path and remuneration vary depending on the company where you work. Here's a breakdown of the typical levels and pay scales:

2.1 Career Progression

Year 1-3: Analyst Year 3-5: Associate Year 5-7: Vice President (VP) Year 7-12: Managing Director (MD)

Specific pay scales:

Year 1-3: 350-1000 dollars (deal-basis bonus) Year 3-5: 1,000-2,500 dollars (deal-basis bonus) Year 5-7: 3,000-7,000 dollars (deal-basis bonus) Year 7-12: 7,000-10,000 dollars (deal-basis bonus)

3. Essential Skills and Knowledge

To succeed in investment banking, you need to build a strong foundation in accounting and finance, as well as develop specific skills like model building and presentation creation. Here are some essential areas to focus on:

3.1 Accounting and Finance

A Bachelor in Finance or Economics with a strong academic background is preferred. Certifications like the CFA are highly valued. Additionally, a good understanding of Vietnamese accounting practices, IFRS, and GAAP is beneficial.

3.2 Model Building and Presentation Skills

In the initial years, you will be required to create numerous models on Excel and presentations on PowerPoint. Fast and accurate model building is crucial. To enhance these skills, consider following blogs like Wall Street Oasis or Merger Acquisitions to learn best practices. You will often be assigned to build a model for Vinamilk, the largest diary company listed on HSX, and prepare a presentation within a short timeframe.

3.3 Communication Skills

Effective communication is vital, as it is one of the most significant challenges for Vietnamese workers in this field. Besides delivering thorough models and well-prepared presentations, you should also be able to narrate your findings in a way that grabs your boss and clients' attention. Always provide clear and compelling stories.

3.4 Market Knowledge

To stay informed about the market's dynamics and trends, you should continually update your knowledge. Building strong networks and maintaining a good flow of information can be a game-changer. Suggested tips include:

Buy your colleagues, friends, and industry professionals nice lunches and dinners at least once a week. Subscriptions to financial news and industry updates like CafeF, CafeBiz, NhipCauDaughtu, and F319. Join relevant private or secret Facebook or Skype groups to stay connected.

4. Conclusion

Entering the investment banking, PE, or asset management sector in Vietnam requires a blend of preparation, knowledge, and a network. By familiarizing yourself with the market landscape, developing your skills, and building strong networks, you can set yourself up for success in Vietnam's growing financial sector.