Looking back at 1 year of HDBank’s German Desk in Viet Nam

Monday, Sep 05, 2022 10:32

Since its inception in 2021, the German Desk has achieved successes in establishing networks and relationships with German and European businesses and promoting investment and trade ties between German and European businesses and their Vietnamese counterparts.

An HDBank transaction office in HCM City. — Photo courtesy of HDBank

Through it, the German government and DEG, a development financial institution owned by German state-owned development bank KFW, have provided support packages and financial solutions to businesses to serve business expansion, personnel training, technology acquisition, equipment import, improving corporate governance, energy efficiency, and reducing waste in production for the sake of sustainable development in Germany and Việt Nam.

HDBank also provides commercial banking solutions to German businesses in Việt Nam and Vietnamese businesses exporting to Germany and other European countries, delegates told the ‘German Desk Networking Conference’ organised by HDBank and DEG in HCM City on August 30 that looked back on one year of the German Desk.

Speaking at the conference, Kim Byoungho, HDBank's chairman of board of directors, said the relationship between Việt Nam and Germany has grown steadily in all areas over the past 40-odd years, and Germany is now a major trading partner for Việt Nam in Europe.

Tens of thousands of Vietnamese live and do business in Germany and thousands of German companies are doing business or exploring investment opportunities in Việt Nam, he said.

HDBank and DEG organise a ‘German Desk Networking Conference’ to look back on one year of the German Desk’s functioning in HCM City in August. – Photo courtesy of the bank

“With the implementation of the EU-Việt Nam Free Trade Agreement and the relocation of the global supply chain, of which Việt Nam is said to be one of the beneficiaries, we believe that the relationship between Việt Nam and Germany as well as between the businesses of the two countries will be further enhanced in the coming time. This presents a great opportunity for all of us.”

HDBank - DEG partnership

"German quality - Made in Germany" products and technology have for long had the best reputation worldwide for their superior quality and high standards with a lifespan that could last a hundred years.

Germany is the gateway to the European market and considered a market that "tests" and assesses the standard value of financial services before they penetrate a bloc containing hundreds of millions of people.

In order to access the European financial market, Việt Nam's ‘big 4’ lenders, including VietinBank, BIDV, and Vietcombank, either have a presence or a network of commercial agents in Germany.

Commercial banks that are pioneers in integrating into the international financial market like HDBank, obviously did not ignore the European market that accounts for more than 20 per cent of the world’s GDP.

HDBank last November signed an agreement with DEG in the presence of Prime Minister Phạm Minh Chính and other senior leaders of the two countries.

DEG committed US$300 million to HDBank to promote sustainable development.

They will also jointly develop strategies to promote co-operation between German/European and Vietnamese businesses, and foster trade, investment and global supply chains within the framework of the EU-Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement, and enhance ODA capital sources and renewable energy projects to help realise Việt Nam’s commitments at the 26th United Nations Climate Change Conference.

HDBank signs an agreement to issue convertible bonds and enter into a strategic tie-up with DEG in 20220. – Photo courtesy of the bank

In June 2021 HDBank tied up with DEG to open a ‘German Desk’ in Việt Nam, the latter’s seventh service location globally and the former’s third specialised service for foreign companies, to boost economic and trade ties between German/European businesses and their Vietnamese counterparts.

Kim Byoungho said in addition to the German Desk, with the support of partner DEG, HDBank also successfully issued $325 million worth of convertible bonds to international financial institutions such as IFC, DEG, Affinity Equity Partners, and Leapfrog Investments in 2020 and 2021, increased funding for Vietnamese enterprises, especially SMEs and household businesses to expand their business, strengthened governance, and promoted green production practices.

Thus, the HDBank - DEG partnership also opens the door for HDBank to integrate more deeply into the global value chain.

Phạm Quốc Thanh, CEO of HDBank, said “In a constantly evolving world, HDBank actively seeks partnerships with reputed organisations around the world to perfect its business model in all areas, from credit cooperation and product development to technology transfer.

Especially in the case of foreign-invested companies, HDBank provides optimal solutions tailored to the specific needs of each enterprise when operating in Việt Nam,” he said.

The goal of the bank is to work with the Government to create an attractive business environment in Việt Nam, affirm its capacity for cooperation and provide services, further strengthening the trust of foreign investors. – VNS