1. Nielsen Consumer FinanceSeminar7 September, 2012 1 Copyright
2010 The Nielsen Company. Confidential and proprietary.
2. TODAY Topic Speaker Time (AM) Vaughan RyanIntroduction
Managing Director, Nielsen 9:30 9:40 Vietnam Marc TownsendAre you
prepared for the next market Managing Director, CBRE 9:40
10:10cycle? Vietnam Vaughan Ryan Managing Director, NielsenThe
latest look into Vietnam VietnamConsumer Finance Trends and 10:10
10:40Opportunities for Financial Doan Duy KhoaInstitutions
Financial Industry Practice Leader Q&A Session 10:40 10:55
Closing Remarks 10:55 11:00
3. Introductions Marc Townsend Managing Director, CBRE Vietnam
Doan Duy Khoa Financial Industry Practice Leader, Nielsen 3
Copyright 2010 The Nielsen Company. Confidential and
proprietary.
4. Setting the Scene 4 Copyright 2010 The Nielsen Company.
Confidential and proprietary.
5. The potential has softened, but opportunitiesremain 2011 vs.
YTD vs. 2010 2011GDP Growth YOY +5.9% +4.8% (est.)Lending Rate
22-25% 15%Inflation (Average YOY) 18.6% 10.4%* 21Aug >3,000
online messages discussingUSD/VND (Official Dec 31st) 21,036 20,800
banks/ stock market Sources: Main indicators 2010 and Q1 2011, GSO;
Consumer Confidence, Nielsen Global Online Survey; FMCG Growth,
Nielsen; Vietnam Retail Audit. thanhniennews.com 5 *Jan Aug 2011
comparison to Jan Aug 2012 Copyright 2010 The Nielsen Company.
Confidential and proprietary.
6. Are you preparedfor the next market cycle?!?Presented
by:Marc TownsendManaging DirectorSeptember, 2012CB Richard Ellis
(Vietnam) Co., Ltd.
7. The Fine Line Between Success and Failure Can Still Lead to
Some Big Margins The cyclical nature of real estate (and other)
markets will always create success and failure; Historically, even
very recently, failure or poor performance has been very well
rewarded; Looking forward, the Vietnamese real estate market will
be less likely to reward those who fail;Page 7
8. Q1 2012 Global Office Rental Cycle the real estate market is
a cycle including ups and downs Note: markets do not necessarily
move along the curve in the same direction or at the same speed.
Given where we are in the cycle, we see lots of opportunity out
there to grow Brett White, CEO, CBRE GroupPage 8
9. 2012 Regional Economic Comparison Hong Thailand Singapore
China Malaysia Indonesia Vietnam Kong GDP Growth Rate 4.9% 1.6%
5.0% 9.0% 4.9% 6.3% 5.9%Q1/2012 forecast 2.8% 5.3% 3.0% 7.5% 4.3%
6.2% 5.5%Q2/2012 forecastConsumer Price Index 5.3% 3.9% 5.0% 5.6%
3.2% 5.4% 18.6%Q1/2012 forecast 4.7% 3.5% 4.3% 3.1% 2.7% 4.8%
10.3%Q2/2012 forecast US$53.68 Gold Price 4.8% higher(per gram in
US$ US$51.43 US$50.18 N/A US$51.56 US$51.52 US$51.49 than regional
average equivalent) 2.6 pp higher than Q1Trade Balance -$8.15 bn
-$63.3 bn $12.4 bn $47.9 bn $113.8 bn $45.1 bn $28.3 bn(2012
forecast) (est.) $11 bn $11.1 bn FDI (2011) $8.6 bn - $4.13 bn
$38.86 bn $170.4 bn - $4.4 bn 2011 2010 (Implemented) Source:
Oxford Economics, Vietnamese General Statistics Office, World Bank,
Goldprice.org, goldpricethai.com, pecunix.com Page 9
10. Two Big Gorillas in 2012 Regional stock markets current
VietnamG ld P e o ric 50.0 L as of July 17, 2012: 48.0 u Lc l GldP
e(M nV D a ) oa o ric illio N /T le n 46.0 a 44.0 r Dva a n e lu
tio Thailand up 18.14% 42.0 40.0 N e o Dn f og 38.0 w Singapore up
12.14% 36.0 34.0 Y e U Db S et C is ris 32.0 a r Laos equities up
11.2% 30.0 4-F b28-F b a e e24-Mr17-Ar11-My4-J n28-J n22-J
l15-Ag8-Sp 2-Ot 26-Ot19-N v e a p a u u u u e c c o 13-D c6-J n30-J
n e18-Mr11-Ar5-My29-My u a 23-F b a p a a22-J n Glds ll p e o e ric
Indonesia equities up 7.1% Surc : SC o e J Vietnam up 19.30% since
January 1 - But down 14.45% from May 8 peak - Lower inflation =
higher stock market 700 25 600 20 CI (%y -y) 500 15 N x P -oV Inde
400 10 300 5 200 0 Mar-09 J un-09 Sp-09 Dc e e-09 Mar-10 J un-10
Sp-10 Dc e e-10 Mar-11 J un-11 Sp-11 Dc e e-11 Mar-12 J un-12 V
Inde N x CI P Note: Vietnam stock market as of July 17; CPI figures
are actual except forecast for July 2012 Page 10
11. The Outlook for Asia in 2012 weakened from August 20112012
GDP Forecast Expectations weakened NE Asia due to US-EU turmoil
last summer SE Asia Australia Signs of stability or slight USA
improvement during Q1 Europe Japan this year Impact is strongest on
Asias most open, global, Singapore trading economies South Korea
Hong Kong China achieving a Taiwan managed slowdown will be key
Page 11
12. But Still the Economic Bright Spot Real GDP % change per
annum Stronger growth than the rest of the world Some countries
better than 2011 (Japan!) and all should increase in 2013 Asia
almost certain to benefit first and most from any global
upturnSource: Oxford Economics Page 12
13. Foreign / Regional Investors Are Risk Averse while domestic
investors are buying on price. Prime property: attractive bond-type
investments Focus on quality of covenant and income stream Good
locations, large liquid markets Not much good stock available, few
sellers Plenty of Asian capital: prime pricing aggressivePage
13
14. What is Driving Regional Occupier Demand? Cost saving and
efficiency replace growth for MNCs Western companies deferring big
decisions Finance and related sectors on the back foot But many
Asian companies are still aggressive Insurance, commodities, retail
still growingPage 14
15. 2012 Vietnam Economic Overview 2008 2009 2010 2011 2012 f
2013 f GDP Growth 6.20% 5.30% 6.80% 5.91% 1 5.5% 5 7.1% 5 Rate
(y-o-y) 12.75% 16%-17.0% 13% - 16% N/A Lending Rate 12% Down from
21% 22% - 25%2 (Late 2010) Current in Q3 9.20% Inflation 22.90%
6.90% 18.58%1 10.3% 5 6.9% 5(Average, y-o-y) (Dec10: 11.8%) Exports
US$62.7 bil US$57.1 bil US$71.6 bil US$96.3 bil 1 US$104.7 5
US$117.8 5 Imports US$80.7 bil US$69.9 bil US$84.0 bil US$105.8 bil
1 US$113 5 US$125.9 5 VND17.8 mil VND26.7 mil VND36.1 mil
VND41.8mil3 VND41.86 mil3 N/A Gold Price (Jul. 17, 2012, (Dec. 31,
2008, (Dec. 31, 2009, (Dec. 31, 2010, (Dec. 30, 2011, (per Tael)
Down 4% since up 7.2% y-o-y) up 50% y-o-y) up 35.2% y-o-y) up 15.8%
y-o-y) Jan. 3, 2012) US$/VND 17,400 18,497 19,500 21,036 2
(Commercial (Dec. 31, 2008) (Dec. 31, 2009) (Dec. 31, 2010)
(Dec.31, 2011) banks) 21,379 5 22,138 5 Devalued by Devalued by
5.4% vs. Dec. 7.9% vs Dec. 2009 2010) US$/VND 17,510 19,470 21,010
21,275 20,860 N/A (Unofficial (Dec. 31, 2008) (Dec. 31, 2009) (Dec.
31, 2010) (Dec. 31, 2011) (Jul. 17, 2012) market) US$18.6 bil
US$14.7 bil 1Committed FDI US$71.7 bil US$22.6 bil (US$6.8 bil real
(US$845.6 mil US$15 - 16 bil 4 US$15 - 16 bil 4 estate) real
estate) Implemented US$11.7 bil US$10 bil US$11 bil US$11 bil1 N/A
N/A FDI Source: Historical data by GSO, 1GSO , 2SBV, 3SJC,
4Ministry of Investment, 5Oxford Economics Page 15
16. Overview of the First Half of 2012 Movement in policies and
economics Government measures Inflation trending down - Down 5
percentage points in 1H/2012 Interest rates trending down - Reduced
5% in 1H/2012 FDI stable - US$5.4 billion implemented in 6M/2012
Vietnam in good company China GDP slowing India GDP slowing 16 14
12B te s a s )S VIn ret R te (% 10 8 6 4 2 0 Jn u -06 Dc e-06 Jn u
-07 Dc e-07 Jn u -08 Dc e-08 Jn u -09 Dc e-09 Jn u -10 Dc e-10 Jn u
-11 Dc e-11 Jn u -12 B s Rte ae a Rd c u tin Rte e iso n g a Rfin
nin Rte e ac g a Page 16
17. Continuing Government Support VN Government spending is
VND21 trillion per month - Effectively Vietnamese Quantitative
Easing Additional stimulus for SMEs: Deferral of VAT payments -
positive effect on cash flow Projected 30% reduction in corp tax
rate Page 17
18. Effect of Government Policies Seen in the economy, but not
the property market CPI, VN (% y-o-y) CPI, VN (% m-o-m) Refinancing
rate (%) Rediscounting rate (%) 25 3.50 -y) te s te ) 3.00 CI (%y-o
/ In ret ra s(% 20 M n ta c n lsto ke c o e ry o tro o ffe t 2.50
-o ) CI (%m -m 15 2.00 1.50 10 P 1.00 P 0.50 5 0.00 0 -0.50 Ot-10 c
Dc e-10 Fb e -11 Ar-11 p Jn u -11 Ag u -11 Ot-11 c Dc e-11 Fb e -12
Ar-12 p Jn u -12 Governments policies having an effect All the
numbers pointing in the right direction Real estate: Buy or
waiting? But residential buyers still reluctantPage 18
19. Is Capital Available for Real Estate ? Is the sector
productive? Classification of Real Estate Productive or
Non-productive (SBV Resolution 11, March 1, 2011) Effects the wider
economy Real estate industry is one of the biggest employers of
school leavers / high-school graduates Impacts on unemployment
figures BCI Numbers HCMC Da Nang Hanoi Community, educational,
hospital, 732 158 1,375 infrastructure, legal, transport, utility
Residential 632 190 564 Office 453 74 555 Hotel & Serviced Apt.
69 48 54 Retail 168 43 30 Source: BCI June 21,Page 19 2012
20. High Profile Projects Progressing Well but also high
profile projects slowing down The consequences of the economic
situation is that some projects are: Starting Progressing A few
have been slowing down Vingroup choosing to raise money offshore
with a bond offering in Singapore for the second time in 2012. Page
20
21. Obstacles Foreign investors are finding Same, same but same
Asking Vietnam to give up inefficient SOEs is like asking Americans
to give up their cars Americans will not give up their cars, but
they will shift to smaller cars Even marginal efficiency
improvements in SOEs can result in huge productivity gainsPage
21
22. Residential Many changes in H1/2012: interest rates coming
down inflation subsiding but little movement - Is there a lag? - Is
it confidence? Buyersinterests expected to return to real estate Is
it already happening? - Psychology? - Yields? VietinBank launches
its home mortgage support - Funding? program valued at VND5,000 bil
300 F t int. ra c irs te ut: 25% N . o M rtg g A p a ns p ro ls Rd
c untingra /Infla n(%p .) o f o a e p lic tio /A p va .a 14% 13%
250 20% 200 te tio 15% 150 10% 100 50 5% 0 0% e iso Jul11A 11Sp c o
11Dc a e 12M r12A r12M y12J ug e 11Ot11N v e 11J n12F b a p a un12
N . o M rtg g A p a ns o f o a e p lic tio N . o A p v ls o f p ro
a Rd c untingRte e is o a Infla n(y-o tio -y)* D tafro as rve db n
a m u ye a k Page 22
23. Residential C ND M IU O O IN M LUX Y HIG ND UR H-E MID-END
LO -E W ND Prices kept falling in S ondarym ec arket - Averageas
pric S m king e(U $ps ) $2,990 $1,760 $1,320 $960 Q2/2012 Q hange(%
-o-qc ) -6.7% -3.9% -3.7% -2.4% 8,000 30% Fg We are coming into a
6,000 Inflatio Inte s rate 25% fgf Sldunits n, ret 20% new cycle?
4,000 gf 15% o 10% The key is peoples g2,000 5% psychology 0 0% Q Q
Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
4 1 2 3 4 1 2008 2009 2010 2011 2012 2013 Sldunits o H annual
inflatio N n B eInte s R as ret ate Rdiso e c untingRate Rfinanc R
e ing ate Dai Thanh heat: - CT8A, CT8B, CT8C (~500 units each):
reportedly sold out within 1-2 days f - High degree of speculation
- many units were immediately offered at a premium of $10K- 15K per
unit - V small unit size: 42-66sm ery Page 23
24. Office: Substantial supply keeps coming Substantial supply
keeps coming in the West; CBD less affected Office completion
DELAYED but still SupplybyA (s ) rea m large: Forecasts for 2012 /
2013 have been 2,000,000 CD B M n idtow Wt es Other revised down:
Actual??? 1,600,000 2012F 2013F 1,200,000 Previously 330,000 sm
375,000 sm 800,000 (Early 2011) 400,000 NOW 270,000 sm 352,000 sm 0
End of 2012 ??? ??? 08 09 10 11 12f 13f 14f Net absorption tends to
pick up (tripled q-o-q to approx. 37,000 sm in Q2/2012, Grade A
& B) Mainly in the West, along with tenants relocation out of
CBD Question remains whether future demand can catch up with future
supply Page 24
25. Office Rents: New Lows in the West AverageG AA kingR byA (U
$/s /m rade s ents rea S m onth) Rents: For larger tenants in the
West, rents $60 CD B M w idto n Ws et tend to drop to $18 psm $50
Rent-free periods are increasing to $40 $30 keep headline rents as
high as $20 possible $10 Meanwhile at the moment rents in the $0 Q
Q Q Q Q Q Q Q Q Q Q Q Q Q 1 2 3 4 1 2 3 4 1 2 3 4 1 2 CBD seem to
remain stable Where will the cycle be at the 2009 2010 2011 2012
end of 2012? Bottoming out or still declining? In the CBD, rents
might be under pressure towards year-end as CornerStone building
will be completed (26,000 sm NLA) CornerStone Building (Grade A
CBD; 26,000 Page 25 sm NLA)
26. Big Names Entering Industrial Parks On the backdrop of FDI
numbers down FDI inflows down in 1H/12 Nokia building a US$302
million Total committed capital of factory in Bac Ninh US$6.38 bil.
(down 28% y-o-y) 11th plant worldwide; 17ha in The majority to
manufacturing VSIP Bac Ninh sector (US$4 bil.) Create 10,000 jobs
Shimizu & N&G Group investing Bridgestone to invest US$575
US$1 bil. to build Hanoi South million in Hai Phong (the biggest
Supporting IP (HANSSIP, 650 FDI project in the city) ha) in Phu
Xuyen, Hanoi 50th plant worldwide; 102ha in Dinh Vu IP Page 26
27. Landlords Moving to Build to Suit Workshop and warehouse
trendsAscendas RBF Campus Layout Revising previous programs Ready
built factories - On the wane with inconsistent demand Build to
suit increasingly common - Bring me a tenant, then we will build
the factory Standard Factory Building Page 27
28. The Global Retail Development Index WINDOW-OF-OPPORTUNITY
analysis Vietnams Ranking in A.T CBREs ranking: Kearney Retail
Survey #3 for new market entries, tied with Ukraine #55 Vietnam is
the fifty-fifth most 2008: No. 1 attractive country, up four places
2009: No. 6 from 2011 2010: No. 14 Most attractive cities: 2011:
No. 23 - #146 HCMC up 12 places 2012: Not included on the list -
#175 Hanoi, down 5 placesSource: A.T Kearney Analysis from 2011Page
28
29. The Retail Environment Issues Remain to be Solved Low
consumer spending Regional Ranking Comparison of GRDI (AT Kearney)
2008 2012 Year Unstable economy 2007 2008 2009 2010 2011 2012 2013
ENT remains an unclear 0 270,000 challenge to foreign 5 346,000 AT
Kearney Ranking retailers 10 468,000 The QUANTITY of 15 modern
retail space 20 740,000 increases regularly but 25 not yet the
QUALITY 30 Top 30 Poor distribution/logistics 35 ? Out of Top 30
Indonesia Malaysia Phillipines Vietnam infrastructure, important
for deciding where to Size of the bubble represents the retail
market size locate, build a factory, or Analysed cities: Jakarta,
Kuala Lumpur, Manila, Hanoi/HCMC establish an outlet;Mid to
long-term prospects still promising thanks to: Demographic &
economic development Maturing types of distribution (e.g. franchise
market) More varieties of retail center formats Improving supply
chain Page 29
30. New Retail Centres to Open in H2/2012 No significant
openings in H1 to make up for a quiet H1 but H2 will make up for
it! Popularity between CBD and non-CBD centres is drifting further
apart Shopping centres will be the most dominant form of retail in
Hanoi in terms of space in the near future but when will it be
Hiway Supercenter (12,000 sm GFA; Ha Dong District; Opened accepted
amongst consumers? 12/07/2012) 2007: 51,000 sm Q2 2012: 198,091 sm
V anc R byLoc (%) ac y ate ation End of 2013: 860,000 sm CD B
non-CD B 35% 30% 25% 20% 15% widening 10% 5% gap 0% Trang Tien
Plaza 2008 2009 2010 2011 2012 (14,000 sm GFA; Hoan Kiem District;
Exp. Opening Nov 12) S e CR V tnam ourc : B E ie Page 30
31. Hotels A more challenging market? Thin demand In the short
term, 3-5 supply Visa hassles, High air ticket prices, competition
(CBD, the West ) Lack of tourism promotion, Service - 2012
transparency issues 3-star Hilton Garden Inn (86 rooms) Intl
tourism growth fluctuated 4-star Candeo Hotels (68 rooms) 5-star
InterContinental Hanoi - Profile Landmark (359 rooms) Business
travel , Holiday travel - 2013: 5-star JW Marriott (450 rooms)
Mainly from Australia, China, France Korean & Japanese visitors
- 2014: 5-star Lotte Hotel (300 rooms) - Spending Accom., F&B
& Sightseeing Average spending/visitor ($450/trip) Daily
spending ($160/day/visitor) 1,400,000 35% 6,000 1,200,000 30% 5,000
1,000,000 25% o f is rs a oN o V ito toH n i H te S p ly(ro m) o l
up o s 800,000 20% 4,000 600,000 15% -o ro th Y -YG w 3,000 400,000
10% 200,000 5% 2,000 0 0% -200,000 2001 2002 2003 2004 2005 2006
2007 2008 2009 2010 2011H1/12 (5%) 1,000 -400,000 (10% ) 0 -600,000
(15% ) 2006 2007 2008 2009 2010 2011 YD 2012f 2013f 2014f T 12
-800,000 (20% ) N . o vis rstoH n i o f ito ao Y -Y ro th -o G w
5-s r ta 4-s r ta 3-s r ta Page 31
32. Hotels Reduced Capital Values? Long term ADR + Supply +
little Demand Y-o-Y Change in RevPAR (%) Capital Value 5 ta -s r 4
ta -s r 3 ta -s r Potential to develop international 2% 0 standard
budget hotels 1% 0 Hotel acquisition by Local firms from 0% Foreign
partners -1 % 0 Local Hoteliers: more aggressive in expanding
market share, but not in -2 % 0 refurbishment/ renovation -3 % 0 Q1
Q2 Q3 Q4 Q1 Q2 New International Brands 21 01 21 02Page 32
33. Q1 2012 Regional Prime Yield Comparison Hong Beijing
Shanghai Singapore Bangkok Manila KL Vietnam Kong Prime 9 (HCMC)
4.75 4.25 2.76 4.06 6.25 10.00 6.50 Office 10 (Hanoi)Change on
Quarter 9 (HCMC)Prime Retail 5.00 4.25 3.54 5.00 6.25 N/A 6.50 10
(Hanoi)Change on Quarter 13 14 Prime 6.50 6.80 4.63 5.15 8.75 N/A
N/A (HCMC) Industrial 14 (Hanoi Change on Quarter Source: CBRE
Research Asia; CBRE Asia Pacific Capital Markets Page 33
34. In the New Cycle, Evolution & Talent Will be Rewarded
So what do we need? Practicality and Planning - Build for the
Market Demand Realism - Forecasting is Possible, Use It Less Red
Tape - Global Economies Will One Day Recover (We Hope), Lets Ensure
Vietnam is Still on The Map Investor Transparency: To Attract
Capital No more overnight real estate billionaires THIS WEEK!Page
34
35. CBRE Global Office Locations THANK YOU 2012 CB Richard
Ellis, Inc. This material has been prepared in good faith and with
due care by CB Richard Ellis (Vietnam) Co., Ltd.We obtained some of
the information above from sources we believe to be reliable.
However, we have not verified the accuracy ofthe information which
we obtained from other sources and make no guarantee, warranty or
representation about it. We includeprojections, opinions,
assumptions or estimates which are made with careful consideration
of factors known to us for example only,and they may not represent
current or future performance of the market.Page 35
36. The latest look into VietnamConsumer Finance Trends
andOpportunities for FinancialInstitutions 36 Copyright 2010 The
Nielsen Company. Confidential and proprietary. 2012
37. Agenda Market & consumer sentiment Consumers investment
usage & attitudes Offline vs. Online Food for Thought 37
Copyright 2010 The Nielsen Company. Confidential and
proprietary.
38. Sources of information Personal Finance Monitor Latest data
up to Q212, N=1,800 interviews per quarter in HCM & Hanoi
(PFM)A syndicated study that provides an on-going Male &
Female; 18-50 years old holistic and integrated measurement of SEC:
ABCDconsumers, delivering tangible outputs to help deepen
understanding across the market Decision maker on Personal finance
Nielsen Global Survey on Investment Nielsen Global Consumer
Confidence Attitudes (July 12) Study (Q2 12) Nielsen Shopper Trend
(Q1 12) Nielsen QualiXpress (Aug 12) 38 Others: GSO and other
research Copyright 2010 The Nielsen Company. Confidential and
proprietary.
39. Executive Highlights Concern for the economy is the top
concern since 2011 o Consumers have less cash, less options and
more worries Deposit/savings the safest bet for most Vietnamese
consumers o Interest rates and Trust/ Security are key influencing
factors o Whilst consumers tend to self-rely on making investment
decisions, Peer influence is also criticalBricks and mortar banks
still the main preference for consumers o Customer experience
should remain a higher priority o On-site is the key channel to
drive new initiatives such as online banking
40. Market & consumersentiment 40 Copyright 2010 The
Nielsen Company. Confidential and proprietary.
41. Consumers seem more cautious on market
uncertainties,particularly on the economy Vietnam Consumer
Confidence Index 99 97 96 94 95 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2
2012 Biggest concerns of Vietnamese consumers Q1 12 Q2 12 Job
security 17% The economy 19% The economy 15% Job security 18%
Increasing food Increasing utility bills prices 14% (electricity,
gas ) 12% Vietnam rank: 16th Source: Nielsen Global Survey Consumer
Confidence Section Base: All respondents, n=502
42. Hardship continues, forcing consumers to further
manageexpenses Actions to save on Shopping frequency household
expenses 39% Save on gas & electricity 70% Weekly 64% Cut down
OOH entertainment 63% 59% Spend less on new clothes 63% Every 2
weeks 36% Delay upgrading technology (e.g. PC) 53% 2011 2012 Cut
down telephone bill 51% Source: Nielsen Shopper Trends Study 2012
Base: All Supermarket shoppers (n = 1500) Source: Nielsen Global
Consumer Confidence Survey, Q2 2012 (n=438) 42 Copyright 2010 The
Nielsen Company. Confidential and proprietary.
43. Same savings allocation, but less money. What doesthis
mean? Global discretionary spending & savings % Allocation of
Vietnamese household income 66% (-3) 6 11 Studying Daily expenses
54 Travelling 49 Shopping (clothes) Buying luxurious items 3 4 6 6
7 7 Others 7 7 Savings 16 15 Investment 1 1 Q1 2012 Q2 2012 Source:
Nielsen PFM ; All respondents in each Q1, Q2 (n=1800) Source:
Nielsen Global consumer confidence survey Q212
44. Consumers investmentusage & attitudes 44 Copyright 2010
The Nielsen Company. Confidential and proprietary.
45. Peer recommendation becomes more crucial, alsoimpacting
consumer perception toward bank imagery Source of bank brand
awareness Q4 12 Q1 12 Q2 12 TV 66% 59% 75% Recommendation from
friends/ family. 23% 29% 64% Billboard 47% 52% 61% Print 45% 32%
40% Has a wide range of products & services Is strongly
recommended by everyone Has efficient processes/ procedures Bank
imagery 45 Source: Nielsen PFM; Those aware of banks in each
quarter (n=663, 685, 793) in Q21 & Q107 Copyright 2010 The
Nielsen Company. Confidential and proprietary.
46. and this is a similar factor influencing non-users andtheir
trust towards banks Key triggers for using banking products/
services Quick & simple application o Reputation procedure
(67%) o Financial capability Prestigious bank (50%) o
Recommendation from othersConvenient To show its prestige, banks
should receive some kinds of awards at yearlocation (35%) end. For
example, VCB receives some retail banking awards. When we enter the
bank, we see the certificates. Non-bank customers 46 Source:
Nielsen PFM; Q61 Non-banked respondents in Q212 (n=1007) Copyright
2010 The Nielsen Company. Confidential and proprietary.
47. Deposit/savings depicts usage increase and also
higherintention A more secure way for saving during the ambiguity?
Awareness Current usage N12M intention Q1 12 Q2 12 Q1 12 Q2 12 Q1
12 Q2 12 Transactional account 100 100 31 37 27 28 Deposit/ saving
account at 100 100 6 10 15 23 banks ATM/ Debit card 100 100 30 36
27 25 Credit card 22 27 1 5 7 47 Source: Nielsen PFM; All
respondents in each quarter (n=1800) Copyright 2010 The Nielsen
Company. Confidential and proprietary.
48. Besides Interest rates, Trust/Security is vital
forconnecting with consumers savings; whilst Promotionappeals to
less risk adverse consumers Key reasons for choosing a bank for
deposit/ savings I deposit in this bank, but if I saw other banks
having higher interest rate, I would withdraw and deposit my
Interest rates money into that bank. After some months, I still can
withdraw and deposit in another bank Trust/ Security We put the
same amount of money but we have something else, it bring us more
benefits even when they are just small gifts like frying pan or a
lucky Promotion? draw ticket 48 Source: Nielsen PFM; Nielsen
QualiXpress Groups (Aug12) Copyright 2010 The Nielsen Company.
Confidential and proprietary.
49. Personal recommendations is still a key driver;
thoughself-reliance trumps other information sources Making
decisions on personal finance/ wealth management Self-reliance
& do not trust 42% 49% 41% 52% anyone else Friends, relatives
& 24% 15% 16% 9% colleagues for advice Investment tips from
commentators/ 14% 7% 12% 9% experts on TV, Radio, Internet
Financial planners & advisors 12% 25% 25% 23% 49 Source:
Nielsen Global survey on Investment (Q212) Copyright 2010 The
Nielsen Company. Confidential and proprietary.
50. Unlike their global counterparts, Vietnamese womenmay be a
bigger source of growth for banks % of Population that Invest
Attitude towards investment risk I can accept considerable
investment volatility (+/-15%) Stock 8.4 8.5 7 7 6 Partnership 7.5
7.5 Real estate 6.1 6.6 50 Risk rating on a scale from 1 to 10; 10
being most risky & 1 least risky Source: Nielsen PFM; Q116 Male
(n=596), Female (n=1204); Nielsen Global survey on Investment
(Q212) Copyright 2010 The Nielsen Company. Confidential and
proprietary.
51. Offline customer experience remains a key factor
forbusiness growth Channels used for investment Channels used in
P6Ms (%) transaction in P3Ms % 45 3 37 84 27 6 51 Source: Nielsen
PFM; Q26 - Bank users in Q212 (n=793); Nielsen Global survey on
Investment (Q212); Nielsen HK PFM (Q112) Copyright 2010 The Nielsen
Company. Confidential and proprietary.
52. Offline vs. Online 52 Copyright 2010 The Nielsen Company.
Confidential and proprietary.
53. Banks increasing efforts in getting consumers moreengaged
with modern channels via value added services 53 Copyright 2010 The
Nielsen Company. Confidential and proprietary.
54. Yet, still limited usage and therefore,
consumersinteractive education is key to encouraging more trial
Awareness % Current usage Internet Banking Q1 12 Q2 12 Q1 12 Q2 12
46 36 3 3 37 37 Mobile Banking 50 41 3 5 23 56 I have been told by
the bank staff about online service but she wasnt very persuasive.
I have a loan in Key concerns the bank and Id rather go there to
pay, it makes me Safety feel safer Trustworthiness 54 Source:
Nielsen PFM; Q120 - Bank users in each quarter (n=685; 793);
Nielsen Global survey on Investment (Q212), Nielsen HK PFM Q112
Copyright 2010 The Nielsen Company. Confidential and
proprietary.
55. Safety and Trust are critical to ATM/ Debit cardacquirement
with consumers Key reasons for choosing a bank for ATM/ Debit card
(Q212) Convenient/Safe location of ATMs (67%) Safety of the card
(57%) Issued by a trusted bank (49%) ATM/ Debit card Recommended by
friends, relatives (39%) Attractive card design (19%) Source:
Nielsen PFM; Q40; Q126 ATM/ Debit card users in Q212 (n=673) 55
Copyright 2010 The Nielsen Company. Confidential and
proprietary.
56. Cash is King but payment via credit card remains a
goodopportunity, but need to address Safety and Trust Almost 100%
use Cash for general shopping, dining, travelling Current usage
Usage intention in N12Ms Q1 12 Q2 12 Global APAC 5 7 >50% 59%
Credit card 1. Card safety Key reasons for choosing a 2. Issued by
trustworthy bank bank for Credit card 3. Low interest rate 56
Source: Nielsen PFM; Q10 Those aware of credit card in each quarter
(n=399; 473); Nielsen Global survey on Investment (Q212) Copyright
2010 The Nielsen Company. Confidential and proprietary.
57. Food forThought 57 Copyright 2010 The Nielsen Company.
Confidential and proprietary.
58. Food for Thought Consumers are really concerned about the
economy Trust and security are vital to our banks success How do
consumers really feel about us in this area? And interest rate but
how much control do we have over this? In-store banking is still
critical to our success How do we measure success in this area? How
do we maximize in-store communications? Where to next? Online,
mobile 58 - Copyright 2010 The Nielsen Company. Confidential and
proprietary.
59. Questions? 59 Title of Presentation Copyright 2010 The
Nielsen Company. Confidential and proprietary.
60. Thank you vn.nielsen.com www.twitter.com/nielsenvietnam
www.facebook.com/vietnamnielsen 60 Copyright 2010 The Nielsen
Company. Confidential and proprietary.
61. Nielsen Vietnam 61 Copyright 2010 The Nielsen Company.
Confidential and proprietary.