The first foreign bank to enter Vietnam’s financial center

Permanent Deputy Prime Minister Nguyen Hoa Binh is visiting Singapore. At a meeting with Singapore Deputy Prime Minister Gan Kim Yong on January 12, Deputy Prime Minister Nguyen Hoa Binh said that Vietnam has just established an International Financial Center to mobilize high-quality resources for the upcoming development period.

He mentioned that Singapore’s UOB Bank will soon start construction on the UOB Headquarters in the international financial center in Ho Chi Minh City. UOB was the first Singaporean bank to set up a representative office in Vietnam in 1992. They opened a branch (100% foreign capital) in 1995 in Ho Chi Minh City.

Thus, UOB will be the first foreign bank to enter the international financial center in Vietnam.

Previously, on the morning of January 11, Deputy Prime Minister Nguyen Hoa Binh worked with Mr. Wee Ee Cheong, Vice President and General Director and Senior Management of UOB Bank. At the meeting, UOB representative presented that the bank will increase its charter capital to 10,000 billion VND. At the same time, they are in the process of building the UOB Plaza headquarters in Vietnam’s international financial center in Ho Chi Minh City.

UOB leaders said the increase in charter capital aims to increase financial capacity, expand operational scale and increase the ability to provide high quality financial products and services to customers in Vietnam.

Mr. Wee Ee Cheong affirmed that he continues to consider Vietnam a strategic market in Southeast Asia, and is ready to participate more deeply in the process of developing Vietnam’s international financial center.

“UOB participates not only as a capital provider but also as a strategic partner sharing experience in banking management, risk management, capital market development and connecting international capital flows,” he said.

The international financial center in Vietnam was established according to the Resolution of the National Assembly on June 27. On December 18, the Government issued Decree 323 on establishing the International Financial Center in Vietnam. The center operates with the “one center, two destinations” model, located in Ho Chi Minh City and Da Nang.

Previously, Ho Chi Minh City worked and discussed with more than 50 investors and founding partners to select potential investors to participate in the first phase of the international financial center. At the conference at the end of December, the city said that a number of banks and financial institutions would participate in the center, including MB Bank, Vietcombank, and VietinBank. As for the center in Da Nang City, at the conference today, they gave it. Approval of interest to participate for 5 banks, including Vietcombank, Vietinbank.

Outside At this bank, Government leaders proposed that Singapore businesses, banks, and financial funds increase investment and operations in Vietnam’s international financial center. He also hoped that the Singapore side would share its experience in designing organizational models, operating mechanisms, management and supervision experiences with the Vietnamese side.

In response, Deputy Prime Minister Gan Kim Yong said that the establishment of an international financial center is the right decision and the right time for Vietnam. He affirmed that Singapore is ready to support, share operating experience, and promote financial connections between the financial centers of Singapore and Vietnam.

According to Mr. Gan Kim Yong, the process of developing an international financial center needs to ensure the central role of the central bank and domestic banks. At the same time, the operator needs to build a cooperation network with foreign banks and financial institutions. CThe management agency still has to building institutions and legal regulations progress, closely and at the same time attach importance to the development of qualified human resources at home and abroad.

On the same day, Deputy Prime Minister Nguyen Hoa Binh attended the discussion with nearly 20 leading businesses, investment funds, and banks in Singapore. Investors recommend that Vietnam ensure policy stability and soon complete the legal framework on digital assets and technology finance in the near future.

The Deputy Prime Minister asked Singaporean investors to continue expanding investment in the international financial center, especially in areas where Singapore has strengths and Vietnam has great demand such as green finance, sustainable finance, technology finance, digital assets…

Singapore currently holds the position of the largest investor in ASEAN and ranks second among 153 countries and territories investing in Vietnam. This country’s investors have 4,400 valid projects in Vietnam with a total registered capital of more than 90 billion USD. Vietnam – Singapore Industrial Parks (VSIP) currently number up to 21 zones in 14 provinces and cities. The two countries regularly consult, exchange and coordinate at regional and international forums, especially ASEAN.

The two sides are also promoting economic and investment cooperation, especially in new and potential fields such as agriculture, energy, developing new generation VSIP 2.0, carbon credits, digital technology..