UOB to join Vietnam’s International Financial Center: exec

Singaporean bank UOB said it stands ready to further engage in the development of Vietnam’s International Financial Center (IFC), not only as a capital provider but also as a strategic partner sharing expertise in bank governance, risk management, capital-market development, and international capital connectivity.

At a Monday meeting with visiting Permanent Deputy Prime Minister Nguyen Hoa Binh, UOB deputy chairman and CEO Wee Ee Cheong said the bank continues to view Vietnam as a strategic market in Southeast Asia.

Vietnam has adopted a “one center, two destinations” model for the IFC, with hubs in Ho Chi Minh City and Danang.

At the meeting, the executive said the bank plans to raise UOB Vietnam's charter capital to VND10 trillion ($380.63 million) and is moving ahead with construction of a new headquarters building for the bank at the HCMC IFC.

The capital hike aims to strengthen the bank’s financial capacity, expand its operation scale, and enhance its ability to provide high-quality financial products and services to corporate and individual clients in Vietnam, particularly in trade finance, corporate banking, capital market, and sustainable finance, he said.

In response, Binh suggested UOB continue acting as a bridge between Vietnam’s financial market and Singapore and the wider region, and play an active role in key components of the IFC, including the development of new financial products, green and sustainable finance, banking services for international investors and cross-border businesses, as well as efforts to attract investors.

"The Vietnamese government pledges to establish a stable and transparent legal environment and introduce tailored policy mechanisms for the IFC, creating favorable conditions for reputable global financial institutions such as UOB to expand operations, commit long-term investment, and accompany Vietnam in its new phase of development," he said.

UOB established its presence in Vietnam in 1993 with a representative office. In 2019, UOB Vietnam expanded into the northern market with the opening of a branch in Hanoi.

With the completion of its acquisition of Citigroup’s consumer banking business in Vietnam in 2023, UOB Vietnam now has more than 1,500 employees and five branches across HCMC and Hanoi.

Vietnam on December 21 announced the establishment of its International Financial Cemter, located in both Ho Chi Minh City and Danang city. Under the plan, the HCMC hub, located in the Thu Thiem area, will serve as a large-scale financial gateway, focusing on equities, bonds, banking, fund management, and listing services, and acting as a bridge connecting global capital flows and those from Vietnamese enterprises.

The Danang hub will be developed as a niche financial center, leveraging its living environment and tourism infrastructure to focus on financial technology, wealth management, and green finance, and serving as a testing ground for future financial models.