Citibank was the first US bank licensed to open a branch with full services in Ha Noi in 1994, followed by a branch in HCM City in 1998. — Photo wsj.com

HA NOI (Biz Hub) — Citibank has received approval from the State Bank of Vietnam to build subsidiaries in the country.

Citi received an official Letter of Acceptance in this regard from State Bank of Vietnam Governor Nguyen Van Binh during a signing ceremony at the US Chamber of Commerce in Washington D.C. yesterday.

The development comes as Viet Nam and the United States mark the 20th anniversary of the normalisation of diplomatic relations. On the occasion, General Secretary Nguyen Phu Trong is visiting the United States.

Commenting on the development, Citi Vietnam's Country Officer Natasha Ansell said the US-based global bank, which operates in more than 100 countries, had informed the State Bank of its intention to seek a licence to operate as a wholly owned subsidiary in the country in light of its economic progress.

"Viet Nam's economy has grown significantly over the past few years, and it is expected to continue its growth in the coming years. Citi wishes to be part of the countrys continued success. We believe that the new structure, which we will apply for, will boost Citi's contribution to Viet Nam's banking industry and consolidate and strengthen our operational platform to further support local and international clients of Citi in Viet Nam."

The bank plans to submit requests for approval to the regulators in due course, including one for approval from regulators in the United States. All transactions will need to be submitted to the Board of Directors of Citibank, N.A.

Citi operated in Viet Nam as First National City Bank from 1972 to 1975. It resumed its business in 1993 with a representative office in Ha Noi. The bank was the first US bank licensed to open a branch with full services in Ha Noi in 1994, followed by a branch in HCM City in 1998. — VNS