DBS secures licence for Vietnam branch

DBS Bank will set up its first branch in Ho Chi Minh City, Vietnam this year after receiving regulatory approval.

The establishment of the branch in Vietnam will strengthen DBS' Asia banking franchise. It will also enable the bank to support Singapore customers as they expand overseas, and to meet a growing demand for Asia banking expertise by Vietnamese firms.

At the start, the Ho Chi Minh City branch will focus on supporting the financial needs of Singapore and Asia-based corporates with business interests in Vietnam. These companies will enjoy access to a comprehensive suite of services, which include credit facilities, trade finance, cash management and treasury advisory. Over time, the branch will extend its product and service offering to cater to affluent individuals and small and medium-sized enterprises.

DBS has a large number of customers with significant foreign direct investments in Vietnam. According to the Vietnam Investment Review, as at late November 2009, it is estimated that Singapore companies have more than 760 projects in Vietnam, with total investment capital amounting to USD 17 billion. Many of these companies are long-standing customers of DBS, and have expressed preference for a seamless banking service that straddles Singapore and Vietnam.

DBS also sees opportunities to support Vietnamese companies in the areas of trade, remittance and capital markets. DBS will leverage its trade expertise and strong regional connectivity to help Vietnam customers in their day-to-day financing needs. Furthermore, as Vietnamese firms regionalise, many are increasingly looking to tap overseas capital markets for financing. As an established capital markets player, DBS is well-positioned to serve the needs of Vietnamese institutions looking to pursue secondary listings in Singapore.

DBS Chief Executive Officer Piyush Gupta, who received the bank branch licence from the State Bank of Vietnam in Hanoi, said: "With its increasing foreign investment and trade, Vietnam is becoming a very important economy in Asia. The new branch will enable DBS to better support our existing corporate customers, many of whom have a presence in Vietnam. We also intend to leverage on our strong Asia network and capabilities to support Vietnamese corporates and institutions as they grow in the region."

DBS currently operates a representative office in Hanoi, which was opened in July 2008 to spearhead the bank's development of the wholesale banking business.