Citi hosts Vietnam Day for Hong Kong clients

At the event, Citi Vietnam’s head of markets and country treasurer Minh Ngo, Citi Hong Kong’s head of markets Charles Lam, and Hong Kong head of corporate FX Vivian So outlined how the bank can support clients in this key trade corridor. Client related activity for Citi across the corridor is up over 10 per cent in 2024 versus 2023.

The team also introduced Citi’s digitalised FX execution platforms and processes to support clients with their hedging needs as flows continue to grow in the corridor.

According to CEIC data and Citi Research, Vietnam continues to benefit from substantial foreign direct investment (FDI) inflows from China and Hong Kong, contributing 25-30 per cent of the total FDI into Vietnam in 2023. Of this, Hong Kong accounts for approximately 15 per cent in 2023 and 13 per cent so far this year, reinforcing its strategic role as an investment partner.

This trend is expected to continue increasing over the next three to five years as Vietnam continues to benefit from supply chain relocations, particularly in the electronics sector.

Ngo said, “This event underscores the robust economic ties between Vietnam and Hong Kong, setting the stage for ongoing collaboration and sustained growth. As more Hong Kong companies continue to explore opportunities in Vietnam, Citi's comprehensive services including capital raising, merger and acquisition advisory, trade and supply chain finance, cash management, FX/rates, commodities hedging, and structured funding solutions put us in a unique position to meet the evolving needs of Hong Kong clients in Vietnam.”

“Our advanced digital FX platforms are designed to provide clients access to real-time FX markets and empower them with seamless, secure, and efficient capabilities, enabling them to navigate the complexities of the global market with confidence,” Ngo said.

Lam said, “Hong Kong has long been considered an ideal gateway for businesses to expand into Southeast Asia. As Hong Kong's seventh-largest merchandise trading partner and with Hong Kong being the fifth largest foreign investor, Vietnam is a key trade and investment partner for Hong Kong. We are committed to supporting our clients with their evolving needs.”

Citi has revised Vietnam’s GDP growth forecast after surprisingly strong third-quarter growth.

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The latest Citi Global Perspectives and Solutions (GPS) report has found that Vietnam and India could benefit the most from supply chain shifts thanks to the similarities in industrial structure.