Group managing director Michael Joseph Barrett, however, did not indicate the level of percentage it wanted to increase in the retail brokerage security company, saying that this depended on the country's regulations.
"Short-term regulations in Vietnam only allow a maximum of 49 per cent and when the regulations change, we intend to take a higher percentage," he said after the company's annual general meeting in Kuala Lumpur today.
Barrett said RHB Capital would like to make the retail brokerage, which has the capability of undertaking investment banking, corporate finance and expand its initiatives further into initial public offerings, a full licence bank branch as soon as possible.
Currently, it has a representative offices in Hanoi and Ho Chi Minh City.
The plans are in line with reforms taking place in Vietham's banking sector as well as in the Asean region in general in the next two to five years, according to Barrett.
"Malaysia has just announced its new banking reforms and I think it is going to spiral into Indonesia and Thailand, and we will see more in Vietnam. So, it provides a lot of opportunities in Vietnam and Asean as a whole," he said.
RHB Capital in its annual report said the entry into Vietnam will enable the group to lay the foundation that will help it to tap the enormous growth potential of the Indo-China region.
On other developments, Barrett said the group expects a loan growth of five to seven per cent for the year following signs of recovery in consumer demand going forward.
For non-performing loans (NPLs), he said there was an increase to 2.57 per cent in the first quarter but the situation has improved in recent months.
NPLs as at end of financial year December 31, 2008, amounted to 2.24 per cent, an improvement from 2.43 percent, with the group's loan loss coverage also seeing a marked increase to 90 per cent from 71 per cent from a year ago.
"We are (looking at) viable deal to sell the NPLs," Barrett said.
The group also aimed to increase the Islamic banking segment's contribution to operating revenue from 4.7 percent currently to 10 per cent in 12 to 18 months, he said in the annual report.
"We intend to strengthen our presence by opening more branches nationwide with the aim of having one branch in each state," he added.
Currently, the group has seven Islamic bank branches. (Bernama)
