HSBC Pledges More Assistance to Vietnam Financial Market

Vietnam’s Ministry of Finance and the Hong Kong and Shanghai Banking Corporation (HSBC) September 22 signed a memorandum of understanding (MoU) to promote cooperation and consultation thereby boosting the country’s financial market.

 

Under the MoU, HSBC will assist and consult the Ministry of Finance in developing government bonds and corporate bonds of Vietnamese companies; consult Vietnam experiences in risk management of the international capital market; help the country study establishment of credit rating companies and others.

 

In addition, the British bank will hold training courses on such issues related to the capital market, risk management, asset management for the finance ministry’s staff.

 

The Ministry of Finance in turn will facilitate HSBC to consult, underwrite for international bond issuance of the government, Vietnamese businesses; consult equitisation, share listing of Vietnamese companies in the foreign market in the near future.

 

According to Alain Cany, HSBC’s general director in Vietnam, the MoU marks a new move for HSBC in one of the most dynamic economies in the region. “We are honored to play an important role in the Vietnamese capital market. HSBC will use our global financial capacity and international financial performance experiences to fulfil the targets planed in the MoU,” added Alain Cany.

 

The Finance Ministry and the bank will review the MoU once a year in order to see the fulfillment of the planned targets to make proper revisions and strengthen cooperation of the two sides.

 

Early this month HSBC gave the rather good rating on Vietnam, for the first time, based on the country’s dynamic economic growth, stable politics and progresses in reform process and believed that it can obtain the annual economic growth rate of 7.5-8 per cent in next five years as targeted by the Government.

 

With two branches in Hanoi and Ho Chi Minh City together with acquisition of 10 per cent stake from the Vietnam Technological and Commercial Bank (Techcombank), HSBC is now known as the largest foreign bank in Vietnam regarding investment capital, operation network, staff and potential clients.