Review of 1 year of HDBank’s German Desk in Việt Nam

VIETNAM, September 5 –

HCM CITY — Since its establishment in 2021, the German Desk has successfully established networks and relationships with German and European companies and promoted investment and business ties between German and European companies and their Vietnamese counterparts.

Through it, the German government and DEG, a development finance institution owned by the German public development bank KFW, provided business support programs and financial solutions to serve business expansion, staff training , the acquisition of technologies, the importation of equipment, the improvement of corporate governance, energy efficiency and the reduction of production waste in the interests of sustainable development in Germany and Việt Nam.

HDBank also provides commercial banking solutions to German companies in Việt Nam and Vietnamese companies exporting to Germany and other European countries, delegates at the ‘German Office Network Conference’ organized by HDBank and DEG at HCM City on August 30. the German office.

Speaking at the conference, Kim Byoungho, Chairman of the Board of Directors of HDBank, said that relations between Việt Nam and Germany have developed steadily in all areas over the past 40 or so years and that Germany is now a major trading partner of 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.

“With the implementation of the EU-Việt Nam Free Trade Agreement and the relocation of the global supply chain, of which Việt Nam would 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 strengthened in the coming times. This represents a great opportunity for all of us.

HDBank-DEG partnership

“German Quality – Made in Germany” products and technology have long had the best reputation in the world for their superior quality and high standards with a lifespan of up to one hundred years.

Germany is the gateway to the European market and seen as a market that “tests” and assesses the standard value of financial services before they enter a bloc containing hundreds of millions of people.

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

Commercial banks, pioneers in integrating into the international financial market like HDBank, have obviously not ignored the European market which represents more than 20% of global GDP.

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

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

They will also jointly develop strategies to promote cooperation between German/European and Vietnamese companies, 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 to strengthen sources of ODA capital and renewable energy projects to help deliver on Việt Nam’s commitments at the 26th UN Climate Change Conference.

In June 2021, HDBank partnered with DEG to open a ‘German office’ in Việt Nam, the latter’s seventh service location globally and the former’s third specialized service for foreign businesses, to strengthen economic and commercial ties between German / European companies and their Vietnamese counterparts .

Kim Byoungho said that in addition to the German office, with the support of partner DEG, HDBank also successfully issued $325 million in convertible bonds to international financial institutions such as IFC, DEG, Affinity Equity Partners and Leapfrog Investments. in 2020 and 2021, increased financing for Vietnamese enterprises, especially SMEs and family businesses, to expand their businesses, strengthen governance and promote green production practices.

Thus, the HDBank – DEG partnership also opens the door for HDBank to integrate deeper into the global value chain.

Phạm Quốc Thanh, CEO of HDBank, said, “In an ever-changing world, HDBank actively seeks partnerships with reputable organizations 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-funded companies, HDBank provides optimal solutions tailored to the specific needs of each company when operating in Việt Nam,” he said.

The bank’s objective is to work with the government to create an attractive business environment in Việt Nam, affirm its ability to cooperate and provide services, further enhancing the confidence of foreign investors. –VNS

James R. Rhodes