DBS SECURES LICENCE TO OPEN BRANCH
IN HO CHI MINH CITY
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Expansion of regional footprint allows DBS to support customers as they expand overseas; meets growing demand for Asia banking expertise by Vietnamese firms
SINGAPORE, VIETNAM, 12 January 2010 - DBS Bank, Southeast Asia’s largest bank, announced today that it will set up its first branch in Ho Chi Minh City, Vietnam, this year, after receiving regulatory approval to do so. DBS was presented with the branch licence in a ceremony held during Singapore Prime Minister Lee Hsien Loong’s visit to Vietnam today, and witnessed by Prime Minister Nguyen Tan Dung of Vietnam.
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 today, 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. In line with DBS’ belief that education is the key to Asia’s future, the bank has been contributing to Vietnam’s banking industry in the area of learning. In the last 18 months, DBS provided scholarships to 120 students at the Hanoi Banking Academy and Ho Chi Minh City Banking College.
DBS is one of the largest financial services groups in Asia, and holds a leading position in corporate, SME and corporate banking, treasury and markets, wealth management, securities brokerage, as well as equity and debt fund raising. With operations in 16 markets, the bank has a regional network spanning more than 200 branches and over 1,000 ATMs across 50 cities.
About DBS
DBS is one of the largest financial services groups in Asia with operations in 16 markets. Headquartered in Singapore, DBS is a well-capitalised bank with "AA-" and "Aa1" credit ratings that are among the highest in the Asia-Pacific region.
As a bank that specialises in Asia, DBS leverages its deep understanding of the region, local culture and insights to serve and build lasting relationships with its clients. DBS provides the full range of services in corporate, SME, consumer and wholesale banking activities across Asia and the Middle East. The bank is committed to expanding its pan-Asia franchise by leveraging its growing presence in mainland China, Hong Kong and Taiwan to intermediate the increasing trade and investment flows between these markets. Likewise, DBS is focused on extending its end-to-end services to facilitate capital within fast-growing countries in Indonesia and India.
DBS acknowledges the passion, commitment and can-do spirit in each of its 14,000 staff, representing over 30 nationalities. For more information, please visit www.dbs.com.