HSBC also plans to open a new branch in Binh Duong Province soon
UK-based HSBC has announced the establishment of HSBC Bank Vietnam, its wholly foreign-owned bank in Vietnam.
HSBC gained approval from the State Bank of Vietnam (SBV) to set up a wholly foreign-owned bank in Vietnam in September 2008.
HSBC believes that local incorporation will enhance its presence as part of its dual growth strategy for Vietnam, comprising strategic alliances and organic expansion. With a registered capital of approximately $177 million, HSBC Bank Vietnam is 100% owned by The Hongkong and Shanghai Banking Corporation, a wholly owned subsidiary and the founding member of the HSBC group.
HSBC has converted all assets and liabilities of the current operations of HSBC Ho Chi Minh City branch and certain assets and liabilities of HSBC Hanoi branch to HSBC Bank Vietnam. As a result, all contracts, accounts and records of its customers, partner banks, suppliers and other parties were automatically transferred to the new bank.
In addition to converting its existing operations in Ho Chi Minh City and Hanoi, HSBC also plans to open a new branch in Binh Duong Province soon. Subject to appropriate approvals, seven more outlets will be opened in the country in the first quarter of 2009.
Thomas Tobin, president and CEO of HSBC’s current operations in Vietnam, has been appointed CEO of the new locally incorporated entity.
Mr Tobin said: This is a great milestone for HSBC in Vietnam. It demonstrates the group’s continued growth in emerging markets and commitment to the development of Vietnam’s financial and banking sector. Despite the turbulent market conditions in 2008, we continue to see the underlying potential of the Vietnam economy, with its dynamic workforce, stable government and rich natural resources.
Operating as a locally incorporated entity will enable us to increase our participation in the country’s fast growing economy and financial markets, utilising HSBC’s international banking expertise and world-class banking services.