Deutsche Bank doubles down on commitment to Vietnam

Deutsche Bank is nearly doubling the allocated capital for Deutsche Bank Vietnam to over $200 million. What is the significance of the move?

We have a proud 31-year history in Vietnam, and the $100 million increase in capital is reflective of our success in the market, having doubled our revenue over the past two years. It also signifies our strong confidence in Vietnam’s rapid development and long-term growth trajectory. Also, Vietnam is an increasingly strategic market for our clients.

The additional capital will enable us to better support our clients’ expansion plans in the country and likewise, the broader Vietnamese economy. We have made this additional investment with the view of growing our business alongside our clients for the years to come.

How much importance does Deutsche Bank place on Vietnam?

Vietnam is very important to our franchise in the region. I was pleased to visit this market last year to witness the potential and dynamics with my own eyes. Being on the ground is critical to better understanding emerging trends and engaging with clients and our own people. I am already looking forward to my next visit later this year and meetings with clients, regulators and other stakeholders.

Deutsche Bank plays an integral role as a ‘bridge builder’ for our traditional client base, being large multinational companies, who are looking to gradually increase their investments and operations in Vietnam, as it becomes more prominent in global supply chains. Our local knowledge and expertise in this area are what set us apart from our competitors, and we have much value to add here.

Vietnam is part of Southeast Asia. Why are Vietnam and Southeast Asia the areas of focus for your bank globally?

We believe Vietnam and all of ASEAN are key drivers of growth for Deutsche Bank and that there is significant long-term potential here on many fronts. Lower manufacturing costs, a young and educated workforce, and its openness to trade continue to make Vietnam an attractive manufacturing hub for multinationals and a favored destination for foreign direct investment.

With over 150 years’ experience in the Asia Pacific (APAC) region, and more than 50 years of presence in major ASEAN markets, we support our clients in tapping the myriad of opportunities in this region. We have built strong relationships and partnerships with APAC-originated multinational companies in ASEAN from various sectors and industries.

Our experienced teams on the ground are seen as trusted advisors to help clients navigate the intricate local regulatory, social, and economic nuances with our deep local knowledge and experience.

What is Deutsche Bank's overall position in the APAC region?

Our roots in the region are deep, dating back to 1872, when our first two branches outside Germany were established in Shanghai and Yokohama.

Our extensive network of 15 markets and 23,000 employees across Asia Pacific make us the partner of choice for our clients’ growing activity into, out of, and within the region.

We have deep local market expertise and “last mile connectivity” given the transaction banking backbone we have built over decades in-country.

Deutsche Bank’s capabilities and broad business mix across the region are a differentiator for our clients, particularly now as companies work intensively to modify their supply chains and financing models.

How has your business evolved over time in Vietnam?

We first opened our doors in Vietnam in 1992. Now, more than 30 years later we have evolved to provide a broad suite of corporate and investment banking solutions to multinationals, large local corporates and financial institutions in the market. These services range from cash management, forex and custody to trade and corporate finance. Our award-winning FX4Cash (forex for cash) platform offers more than 130 currency pairs for global clients who need to settle trade payments in local currency.

We also offer advisory solutions and have a track record for leading notable capital markets and structured finance transactions. We plan to continue to grow our capabilities even more.

What value do you bring to the market, being a German leading bank?

First and foremost, we are a global bank with a presence in almost 60 markets and offer corporate banking solutions in about 150 locations worldwide. We act as a ‘Global Hausbank’, meaning our value lies in leveraging our global network in combination with strong local expertise. We have continued to grow our talent, solutions and capabilities consistently in Vietnam over the past three decades.

Vietnam continues to play an increasingly prominent role in global trade, as signified by German Chancellor Olaf Scholz’s visit to Hanoi late last year. He called for deeper trade relations with Vietnam and committed to supporting its transition to a greener economy and investing in the country. These factors will help elevate this important trade corridor even more internationally and unlock significant opportunities for our local and multinational clients. As a well-established ‘bridge builder’ and connector of markets, we are strongly positioned to help our clients navigate and maximize prospects in this area and be a strong advocate for Vietnam.

Regarding environmental, social, and corporate governance (ESG) investing, how do you see ESG developing in Vietnam?

We see ESG and sustainable financing needs growing rapidly in Vietnam, as well as more broadly in ASEAN. Companies and markets in the region are highly focused on making their operations sustainable and looking to green financing.

An informed understanding and strategy around ESG impact is no longer a ‘nice to have’, it is now a fundamental element of any business’s license to operate.

For this reason, we have established a bank-wide ESG capability in Asia Pacific, which is unique in the market, through our ESG Center of Excellence in Singapore.

So far this year, we have financed two key green projects in Vietnam. One is a sustainable factory for Pepperl+Fuchs, a Germany-based client, and this green facility is located in Tan Thuan Export Processing Zone in Ho Chi Minh City. The other is a waste-to-energy facility for Ha Noi Thien Y Environmental Energy. This is Vietnam’s biggest waste-to-power plant. It can convert 4,000 tons of dry waste into energy every day, and earlier this year we arranged a $160 million syndicated loan for the facility.

We are determined to be a strong partner to our clients on their ESG transformation journeys, and have valuable, concrete expertise to offer in helping them achieve their sustainability objectives.