HSBC to establish subsidiary bank in Vietnam

The Hong Kong-Shanghai Banking Corporation (HSBC) has got an official approval from the State Bank of Vietnam to set up a wholly foreign owned bank in Vietnam.

The licence is expected to help bring HSBC closer to achieving its goal of incorporating locally and strengthening its position as a leading foreign bank in Vietnam .

The new entity, HSBC Bank (Vietnam) Ltd, will be headquartered in Ho Chi Minh City and will be 100 percent owned by the Hong Kong and Shanghai Banking Corporation Ltd, the founding and a principle member of the HSBC Group.

Thomas Tobin, President and CEO of HSBC’s current operation in Vietnam , will be appointed President and CEO of the locally incorporated entity.

HSBC is one of the largest foreign invested banks in Vietnam which holds 10 percent of Bao Viet Group’s stake. The bank is also in the process of raising its stake at the Vietnam Technological and Commercial Joint Stock Bank (Techcombank) to 20 percent from the current 14.4 percent.

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