Singaporean banks see more opportunities in Việt Nam

Singaporean banks see more opportunities in Việt Nam

Singapore’s banks are expanding their presence in Việt Nam to seize opportunities from the market’s increasing integration into Asian trade and surging corporate financing needs.

Expanding intra-Asia trade and the reconfiguration of global supply chains have helped Việt Nam cement its position as one of Southeast Asia’s fastest-growing economies. — Photo baochinhphu.vn

Chief executive of DBS Vietnam Abdul Raof Latiff told the media that Việt Nam was historically a corridor market for Singapore banks, which supported clients from home as they expanded abroad. 

However, Việt Nam is currently no longer just a destination for inbound capital. It is increasingly a market in its own right – one with a stronger domestic corporate base, deeper supply chain links and a more consequential role in the broader ‘China+N’ strategy.

Việt Nam has been a key beneficiary of the ‘China+N’ strategy, under which companies diversify manufacturing and supply chains beyond China by adding operations in one or more alternative markets, often in Southeast Asia.

Several multinational firms are moving production amid years of US-China trade tensions.

Elaine Lam, head of global corporate banking at OCBC, said that expanding intra-Asia trade and the reconfiguration of global supply chains have helped Việt Nam cement its position as one of Southeast Asia’s fastest-growing economies.

Lam said that OCBC’s Việt Nam strategy centres on supporting customers from its core markets, particularly Singapore and mainland China, as they invest in the country, while also serving Vietnamese State-owned enterprises and large local corporations in their domestic expansion and broader capital needs.

UOB Vietnam chief executive Victor Ngo said that while supporting regional and Singapore-based clients entering Việt Nam remains important, his bank has increasingly built a franchise anchored in the domestic economy.

“This shift is reflected on the ground through the expansion of our corporate and retail capabilities, significant growth in our local talent base and the scaling of our retail business following the Citi consumer banking acquisition, as well as continued long-term investments such as fresh capital injections and our new headquarters in HCM City,” Ngo said.

According to Latiff, demand is rising for sustainable finance and advisory services, particularly as Vietnamese companies engage more with global customers, investors and supply chain partners facing higher environmental, social and governance expectations.

Lam said key sectors drawing customer interest include energy, renewables, manufacturing and real estate. She added that OCBC has substantially deepened its cash management, trade finance, foreign exchange and other banking capabilities to support customers’ cross-border financing and transactional requirements “more seamlessly”.

She also noted that Việt Nam’s push for greater financial inclusion – backed by a young and tech-savvy population as well as rapid digital adoption – is creating opportunities in digital banking and fintech, with continued innovation expected across payments, financial services and digital ecosystems.

Foreign direct investment flows are a key focus for UOB, as Việt Nam continues to attract capital into sectors such as electronics, industrials, consumer goods and real estate. 

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