Deutsche Bank is investing more money to support trade. — Photo Courtesy Deutsche Bank
Deutsche Bank recently announced it is investing further in Viet Nam to support higher trade flows from Europe, expected following the recently ratified EU-Viet Nam Free Trade Agreement.
The bank said Viet Nam is a significant trade partner for Germany, with annual trade of around 14 billion euros, and the second largest trade partner in ASEAN.
Foreign direct investment in Viet Nam has doubled in the past five years.
Deutsche Bank chief country officer, Hans-Dieter Holtzmann, said: “The rise in FDI can be attributed to more foreign companies investing in supply chains in Viet Nam to support intra-Asian trade. With supply chains facilitating more trade, we are clearly seeing more demand for both inbound and outbound Vietnamese dong currency payments.”
So the bank is investing in enhancing the digital capabilities of its forex platforms to meet the higher demand for local currency settlements, he said.
Late last year, Deutsche Bank added the restricted dong to its FX4Cash platform, which offers more than 130 currency pairs globally.
“More corporate clients are choosing to settle payments in local Vietnamese dong rather than USD to better manage the costs of currency conversion, but this also requires local currency risk management,” Holtzmann said.
The development of Viet Nam’s non-deliverables forward (NDF) market is providing clients with an avenue to hedge their Vietnamese dong exposure, he said.
“This year, we are seeing more liquidity in the NDF market, so we are expanding our Vietnamese dong deliverable & non-deliverable forward capabilities on our Autobahn platform. This will allow our onshore and offshore clients to hedge their local currency exposure.”
In addition to introducing its enhanced FX platform, the bank is also extending its FX API technology to local clients who will be able to connect their own direct sales e-commerce infrastructure to the platform, while being supported with pre- and post-trade activities.
Deutsche Bank has been in Viet Nam since 1992, offering banking and financing solutions like cash management, FX, custody and trade finance. — VNS