HSBC has taken another step in its bid to set up a wholly-owned foreign bank in Vietnam. The move will make it the first foreign bank to be locally incorporated in the rapidly developing Vietnamese banking sector.
The State Bank of Vietnam (SBV) has granted approval-in-principle to set up a locally-based office. Local incorporation falls into HSBC's growth strategy for Vietnam, based on both forming strategic alliances and organic expansion.
Over the last two years, HSBC created various partnerships through investing in the Vietnam Technological and Commercial Joint-Stock Bank (Techcombank), the third largest joint stock commercial bank in Vietnam by equity, as well as in Bao Viet Holdings, the country's leading insurance and financial services group.
The new entity, HSBC Bank (Vietnam) will be headquartered in Ho Chi Minh City, and will be 100% owned by HSBC. Thomas Tobin, president and CEO of HSBC’s current Vietnamese operations will be appointed president and CEO for the locally incorporated business.
"This is a great milestone in our long history in the country. As Vietnam continues to make great strides in the development of its local market and financial sector, HSBC has also taken steps to expand its presence in this exciting market,” comments Tobin.
“The new licence will allow us to reach our existing and new customers through a broader distribution network in the major economic centres of Vietnam. We aim to start operating through the new entity as soon as possible and will actively work with authorities to complete the necessary business registration activities,” he adds.
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