Treasury Management Internation Logo

Deutsche Bank Invests to Support Vietnam Cross-Border Trade

Published 

Deutsche Bank today announced it is investing further into Vietnam to support higher trade flows from Europe, which are expected to increase following the recently ratified EU-Vietnam Free Trade Agreement (FTA).

Already Vietnam is a significant trade partner for Germany, with annual trade of around 14 billion Euros, and the second largest trade partner in ASEAN.

Deutsche Bank research shows that foreign direct investment (FDI) into Vietnam has doubled in the past five years.

Deutsche Bank Vietnam Chief Country Officer Hans-Dieter Holtzmann said: “The rise in FDI can be attributed to more foreign companies investing in supply chains in Vietnam to support intra-Asian trade. With supply chains facilitating more trade, we are clearly seeing more demand for both inbound and outbound Vietnamese Dong (VND) currency payments.”

As a result, the bank is investing to enhance the digital capabilities of its award winning FX platforms to cater for the higher demand for local currency settlement. Late last year, Deutsche Bank added the restricted Vietnamese Dong to its FX4Cash platform, which offers more than 130 currency pairs globally.

“More corporate clients are choosing to settle payments in local VND rather than USD to better manage the costs of currency conversion, but this also requires local currency risk management,” he added.

As more clients trade and settle in local currency, there is also a greater demand for hedging currency exposure. The development of Vietnam’s Non-Deliverables Forward (NDF) market is providing clients with an avenue to hedge their Vietnamese Dong exposure.

“This year we are seeing more liquidity in the NDF market, so we are expanding our VND Deliverable & Non Deliverable Forward capabilities on our Autobahn platform. This will allow our onshore and offshore clients to hedge their local currency exposure,” Holtzmann added.

In addition to introducing its enhanced FX platform, the bank is also extending FX API technology to local clients who will be able to connect their own direct sales eCommerce infrastructure to the bank’s platform, while being supported with pre and post-trade activities.

Globally, Deutsche Bank most often sees API used by clients to expand their own B2B and B2C sales offering by introducing a wider range of currencies for online transactions. This solution gives end customers more choice around payment currencies to hedge against currency movements.

Deutsche Bank has operated in Vietnam since 1992, providing banking and financing solutions to multinationals, large local corporates and financial institutions, ranging from cash management, FX, custody and trade finance.

Most recent episodes

HSBC’s Sibos Spotlight: Investing in the Future – from Diversity to Green Deposits

In the final instalment of HSBC’s Sibos Spotlight, Eleanor Hill (TMI) invites Nadine Lagarmitte and Suraj Kalati (HSBC) to consider how corporates’ attitudes to...

25:12

HSBC’s Sibos Spotlight: The ESG Landscape – what every treasurer needs to know

In the third edition of HSBC’s Sibos Spotlight Podcast series, TMI’s Eleanor Hill invites Farnam Bidgoli (HSBC) to provide an in-depth overview of the current ESG...

16:24

The Path to Transformational Global Cash Visibility

Davina Bradley (CEVA Logistics) and Conor Deegan (CashAnalytics) join TMI’s Eleanor Hill to explore how treasurers can transform their cash visibility and forecasting within their business in a matter of weeks using a...

33:16

HSBC’s Sibos Spotlight: Embedding ESG in Trade and Supply Chains

In the second podcast from HSBC’s Sibos Spotlight series, TMI’s Eleanor Hill speaks to Surath Sengupta (HSBC) about embedding ESG into trade and supply chains....

20:58

Lost in Transaction: Overcoming Payments Pitfalls

From simple errors to duplicates, fraud and sanctions violations, there are a number of areas where payments can go wrong – especially in the real-time environment. In this podcast, TMI speaks to Andrew Ferrao...

34:25

HSBC's Sibos Spotlight: Central Bank Digital Currencies

The first edition of HSBC’s Sibos Spotlight series sees TMI’s Eleanor Hill joined by Mark Williamson and James Pomeroy (HSBC) to discuss the hot topic of Central Bank Digital Currencies (CBDCs). Our guests discuss...

25:48

Payments Vision 2025: The Inside Track

Wim Grosemans, Steven Lenaerts (BNP Paribas) and Wim Raymaekers (SWIFT) join TMI’s Eleanor Hill to outline their vision for the payments landscape in 2025. Our guests consider how recent developments such as instant...

28:21

Stepping Out from the Shadows

“Treasurers needs to step out of the shadows and into the sunshine in terms of their strategic contribution.” claims Zitah McMillan, Co-Founder and CEO, Predictive Black. In this podcast, hosted by TMI’s Eleanor Hill, our guest declares that the...

16:54

Why the ‘One Size Fits All’ Approach is Outdated - A Cash Segmentation Treasury Masterclass

With the ongoing low interest-rate environment and increasing regulatory change, it’s more important than ever for treasurers...

23:55

Instant Payments: Instant Rewards

TMI’s Eleanor Hill sits down in the virtual TreasuryCast studio with J.P. Morgan’s Global Head of Real-Time Payments, Cyrus Bhathawalla, to discuss how treasurers can capitalise on the evolving nature of real-time payments. Our guest contemplates the elements...

23:55