Go Ahead Given for M Stanley

The green light has been given on a joint venture between Vietnam and US based bank, Morgan Stanley, after a collapse in tie-up plans with a Vietnamese state group.

Morgan Stanley stands to be the first bank from the west to become so closely tied with the still Communist run Vietnam, the bank has stated that the plan is to make profits from the burgeoning privatisations in the securities industry.

At this stage, the bank will be offering all the standard financial services, including brokerage, research and principal investments. This new undertaking comes on the back of Morgan Stanley being forced to back out of a venture

Morgan Stanley said its venture with brokerage Gateway Securities would offer a full range of financial services, including investment banking and advisory services, brokerage services, research and principal investing. The new tie-up follows the collapse of Morgan Stanley’s plan to set up a securities company with the State Investment Corporation of Vietnam, owner of the state-owned companies slated for partial privatisation.

That proposed joint venture had triggered the wrath of rival investment banks, which feared they could be frozen out of lucrative mandates as Vietnam proceeds with its mass privatisation programme. Eventually, SCIC bowed to pressure and pulled out of the deal.

Story link: Go Ahead Given for M Stanley