HSBC Okayed to Discount Export Papers for Nonresidents
The State Bank of Vietnam has recently allowed the Hong Kong and Shanghai Banking Corporation (HSBC) to discount export documents and account receivables for nonresidents on a trial basis.
Accordingly, HSBC’s branches are liable to manage risks and ensure asset safety when running such a service. Also, the bank must abide by prevailing laws on credit provision, forex management and others.
On the other hand, the bank is required to report the operation of this service to the central bank every quarter. At least fifteen days before the trial program ends, HSBC must report results of this banking service. The trial will be carried out within one year, starting August 23.
HSBC, one of the world's largest banking and financial institutions, set a foothold in Vietnam in 1992. It is now running two branches in Hanoi and Ho Chi Minh City and a Can Tho City-based representative office.
SBV, Vietnam Panorama
Vietnamese
