HSBC set to become Vietnam's first 100% foreign bank

HSBC announced yesterday that it has obtained official approval from the State Bank of Vietnam to set up a wholly foreign-owned bank in Vietnam, bringing the bank closer to achieving its goal of incorporating locally and strengthening its position as a leading foreign bank in Vietnam.

ôWe continue to increase our participation in VietnamÆs economy and financial markets, and I am very glad to see that our commitment to the development of the financial sector has been recognised and supported by the authorities,ö says Thomas Tobin, CEO of HSBC in Vietnam. "This is a clear sign of the governmentÆs strong commitment to the WTO and their recognition of the importance of a strong financial sector."

ôWe aim to start operating through our new local entity as early as possible and will actively work with authorities to complete the necessary business registration activities in the coming months. We hope to become the first foreign bank to operate a fully-owned local entity in the fast-growing Vietnamese banking sector and look forward to opening a new chapter in HSBCÆs history in Vietnam," he adds.

Upon local incorporation, the new entity, HSBC Bank (Vietnam), will be headquartered in Ho Chi Minh City and will be 100%-owned by The Hongkong and Shanghai Banking Corporation Limited. Tobin will be appointed president and CEO of the locally incorporated entity.